As noted earlier, John Boehner is in town today to pitch the GOP debt limit strategy to Wall Streeters.
According to POLITICO, the House Speaker is set to take a hard right turn and demand trillions of dollars worth of cuts in order to get a debt ceiling hike, saying failure to link the two would be “irresponsible”.
Granted, the cuts won’t be right away, but to get to trillions worth of long-term cuts would require Obama to agree to massive structural changes to entitlements, which is something that’s never going to happen.
There’s no doubt that Wall Street is deeply concerned about the debt ceiling issue, and the (remote) possibility of a technical default by the US in the event that it weren’t raised.
Tomorrow, Eric Cantor comes to New York and will probably deliver a similar message.