The Clinton Herald, Clinton, Iowa

National News

October 16, 2013

Senators seek deal, House effort flops

WASHINGTON (AP) — Senate leaders are optimistic about forging an eleventh-hour bipartisan deal preventing a possible federal default and ending the partial government shutdown after Republican divisions forced GOP leaders to drop efforts to ram their own version through the House.

Pressured by the calendar, financial markets and public opinion polls, Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., were hoping to shake hands on an agreement today and, if possible, hold votes later in the day.

Driving their urgency were oft-repeated Obama administration warnings that the government would exhaust its borrowing authority Thursday and risk a federal default that could unhinge the world economy. Lawmakers feared that spooked financial markets would plunge unless a deal was at hand and that voters would take it out on incumbents in next year’s congressional elections.

“People are so tired of this,” President Barack Obama said Tuesday in an interview with Los Angeles TV station KMEX.

Feeding concerns were a warning Tuesday from the Fitch credit rating agency that due to the budget impasse it was reviewing its AAA rating on U.S. government debt for possible downgrade. Stock markets gave negative reviews as well, with the Dow Jones industrial average and Standard & Poor’s 500 index both dropping Tuesday by nearly 1 percent.

John Chambers, chairman of Standard & Poor’s Sovereign Debt Committee, told “CBS This Morning” today that a U.S. government default on its debts would be “much worse than Lehman Brothers,” the investment firm whose 2008 collapse led to the global financial crisis.

Billionaire investor Warren Buffett told CNBC he doesn’t think the federal government will fail to pay its bills, but “if it does happen, it’s a pure act of idiocy.”

Rep. Steve King, R-Iowa, a tea party favorite, said he was not worried about the prospect of a U.S. default.

Text Only
National News
  • Starved Pennsylvania 7-year-old weighed only 25 pounds

    A 7-year-old Pennsylvania boy authorities described as being so underweight he looked like a human skeleton has been released from the hospital.

    July 21, 2014

  • Hopkins to pay $190M after doc taped pelvic exams

    Johns Hopkins Health System will pay $190 million to more than 8,000 women whose bodies may have been videotaped or photographed by a gynecologist using a pen-like camera during pelvic exams.

    July 21, 2014

  • Lawmaker: Texas to send 1,000 guardsmen to border

    Gov. Rick Perry, a vocal critic of the White House's response to the surge of children and families entering the U.S. illegally, plans to deploy as many as 1,000 National Guard troops to the Texas-Mexico border, a local lawmaker confirmed Monday.

    July 21, 2014

  • Sparring justices find little disagreement at the opera

    Justice Ruth Bader Ginsburg revealed a different view of U.S. Supreme Court on Saturday when she described about her passion for opera, one she shares with Justice Antonin Scalia.

    July 21, 2014

  • Second chance? Perry in Iowa again courting voters

    Texas Gov. Rick Perry is visiting Iowa for the fourth time in eight months, hoping for a second chance to win over Republican voters who delivered him a stinging caucus loss when he ran for president two years ago.

    July 21, 2014

  • 10 things to know for today

    Your daily look at late-breaking news, upcoming events and the stories that will be talked about today:

     

    July 21, 2014

  • Unemployment rates fell in 22 US states in June WASHINGTON, D.C. — Unemployment rates dropped in 22 U.S. states last month and stayed the same in 14, as the nation at large posted a fifth straight month of solid hiring.The Labor Department said Friday that unemployment rates rose in 14 states. Mea

    July 19, 2014

  • Obama opens East Coast to oil search

    Opening the Eastern Seaboard to offshore oil exploration for the first time in decades, the Obama administration on Friday approved the use of sonic cannons to discover deposits under the ocean floor by shooting sound waves 100 times louder than a jet engine through waters shared by endangered whales and turtles.

    July 18, 2014

  • A quarter of the world's most educated people live in the 100 largest cities

    College graduates are increasingly sorting themselves into high-cost, high-amenity cities such as Washington, New York, Boston and San Francisco, a phenomenon that threatens to segregate us across the country by education.

    July 18, 2014

  • US appeals court tosses Oklahoma gay marriage ban

    A federal appeals court ruled Friday that Oklahoma must allow gay couples to wed, prompting a fast, angry response from leaders of a state that has vehemently fought policy changes brought on from outside its borders.

    July 18, 2014

AP Video
Facebook