Photo: AP Photo/Charles Dharapak
The markets — and the American people — always assumed Congress and President Barack Obama would reach a deal. But as late as Sunday, the White House considered economic collapse an increasingly likely outcome to months of failed talks.According to POLITICO, negotiations reached a stalemate on Sunday afternoon over cuts to defence spending, with Republicans demanding less and Vice President Joe Biden telling Speaker of the House John Boehner that “We just can’t give there.”
“With that, a grim Obama contemplated the unthinkable: pulling the plug on a deal and precipitating a global economic crisis. Huddled in the Oval Office, the president and his top aides proceeded to discuss how Treasury Secretary Tim Geithner might step out later that night and prepare the country for the inevitable market crash.”
The deal ultimately came together when Senate Minority Leader Mitch McConnell decided to broadened “defence” to include the Department of Homeland Security, veterans affairs and foreign aid, which would lessen the impact on the Department of defence.
It wasn’t until 8:15 p.m. Sunday, 15 minutes before McConnell and Majority Leader Harry Reid announced a “historic, bipartisan compromise” on the Senate floor, that the deal was finalised.
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