The Debt Ceiling: Geithner Prepares To Drain Retirement Accounts, And Banks Step Up Lobbying

tim geithner small hands pinch AP

If Eric Cantor’s appearance on Squawk Box this morning is any indication, the debt ceiling isn’t going to get raised. He insists that there won’t be a hike unless there’s a massive change to entitlement spending, and there’s no way The White House agrees to that.

Now in reality, in private, the GOP stance is certainly a lot softer, but there behind the scenes battle is intense.

According to WaPo, Tim Geithner has already begun preparing for the extraordinary measures he will be taking once the Treasury hits its limit. This includes a preparation to raid various government retirement accounts to pay off the debt.

Meanwhile, POLITICO’s Morning Money has more on Wall Street’s behind-the-scenes lobbying effort to get the debt ceiling raised in a “clean” manner. The key thing they all realise is that publicly shouting about raising the ceiling doesn’t do much good, since the reputation of bankers is so bad. So far the reception to their overtures sounds fairly chilly.