{"id":571444,"date":"2023-04-23T13:03:07","date_gmt":"2023-04-23T10:03:07","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/key-democrat-fears-only-a-market-crash-will-resolve-debt-limit-impasse\/"},"modified":"2023-04-23T13:03:07","modified_gmt":"2023-04-23T10:03:07","slug":"key-democrat-fears-only-a-market-crash-will-resolve-debt-limit-impasse","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/key-democrat-fears-only-a-market-crash-will-resolve-debt-limit-impasse\/","title":{"rendered":"#Key Democrat fears only a market crash will resolve debt limit impasse"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/himesjim_121322gn_w.jpg?w=900\" \/><\/p>\n<div>\n<p>A key Democrat is warning this week that only a stock market collapse will break the partisan stalemate over raising the debt ceiling and preventing a government default over the summer.\u00a0<\/p>\n<p>Rep. Jim Himes (D-Conn.), a former Goldman Sachs executive and senior member of the Financial Services Committee, said the Republicans\u2019 opposition to a debt limit hike without steep spending cuts is so entrenched that only an economy-rattling market tumble \u2014 like the crash that accompanied the financial crisis of 2008 \u2014\u00a0will shake GOP leaders to accept a bipartisan compromise.<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>\u201cI fear that this ends the way the famous TARP, the Troubled Assets Relief Program, got passed in 2008. And that is when the markets finally say, \u2018You guys have got to stop screwing around,\u2019\u201d Himes said Thursday during a wide-ranging interview in his Capitol Hill office.<\/p>\n<p>TARP was Congress\u2019s controversial response to the global financial crisis 15 years ago, providing $700 billion to stabilize teetering banks and restore faith in reeling credit markets. Championed by then-President George W. Bush and his treasury secretary \u2014 former Goldman CEO Hank Paulson, who warned of a global economic collapse if the funding was denied \u2014\u00a0the bill was killed in the House the first time it hit the floor in late September 2008.\u00a0<\/p>\n<p>The surprise vote sent the stock market into a freefall, pulling the Dow down 7 percent \u2014 the steepest decline since the attacks of 9\/11 \u2014 and the Nasdaq down more than 9 percent. All told, the U.S. equity market lost $1.2 trillion in a day. Four days later, after making minor changes, spooked House lawmakers passed the bill and sent it to Bush\u2019s desk.\u00a0<\/p>\n<p>Himes, who was first elected to Congress a month later, predicted it will require a similar scare to convince the Republicans who control the House to pass a debt ceiling increase that can also win President Biden\u2019s signature.\u00a0\u00a0<\/p>\n<p>\u201cSadly, I think it\u2019s going to take that kind of market signal to wake my ideologically frenzied friends up and just say, \u2018Let\u2019s move on and do some real stuff,&#8217;\u201d Himes said.<\/p>\n<p>The debate surrounding the debt limit is growing more urgent as the government inches closer to the important moment when it exhausts the \u201cextraordinary measures\u201d it\u2019s currently using to pay its debts \u2014 a mystery date Treasury officials say could come as early as June. Unless Congress raises that cap, the government would be unable to pay all of its existing obligations, marking the first default in U.S. history. Economists of all s<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>es have warned the effect on the global economy could be catastrophic.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>Biden, from the start, has demanded a \u201cclean\u201d debt ceiling bill absent any other provisions \u2014 a stipulation Speaker Kevin McCarthy (R-Calif.), who\u2019s leading the Republican negotiations, has refused.\u00a0<\/p>\n<p>Pressured by conservatives in his conference, McCarthy is insisting on steep spending cuts to accompany the borrowing hike. As an opening bid, he introduced legislation on Wednesday to cut federal spending by $4.5 trillion over the next decade, according to GOP estimates, while raising the debt limit by $1.5 trillion or through March 2024, whichever comes first.<\/p>\n<p>Republican leaders are racing to secure the support to pass the bill early next week, but they have some work to do to overcome the reservations from some GOP lawmakers \u2014 conservatives and moderates alike \u2014 who are fighting for favored changes.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>Leaders are voicing confidence heading into the vote \u2014 \u201cThe cup is half full, we can get there,\u201d McCarthy said \u2014 and even some of the most conservative GOP lawmakers are signaling their intent to support the package.\u00a0<\/p>\n<p>\u201c[Democrats] certainly have been floating the notion that they didn\u2019t think we can get to 218,\u201d said Rep. Dan Bishop (R-N.C.), who was among the conservatives who forced McCarthy to adopt a host of concessions \u2014 including a tougher line on deficit spending \u2014 in support for his Speakership bid in January. \u201cI think they underestimate both where we\u2019ve begun and what we accomplished in January to get ourselves better organized around clear ideas.\u201d<\/p>\n<p>Still, GOP leaders\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-04-21\/mccarthy-coming-up-short-in-support-for-house-debt-limit-bill\">are reportedly short\u00a0<\/a>of 218 Republican votes, and Democratic leaders are warning McCarthy that he should expect no help from across the aisle.<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>\u201cWe\u2019re at a point now where House Republicans are going to have to produce the votes for their extreme legislative proposal,\u201d House Minority Leader Hakeem Jeffries (D-N.Y.) told reporters Thursday.<\/p>\n<p>Even if the bill passes the House, it\u2019s dead on arrival in the Democratic-controlled Senate, putting the sides closer to default without a resolution. The dilemma facing McCarthy is finding some compromise that can win bipartisan support, for the sake of avoiding a default, without angering conservatives to the extent that they attempt to topple him from power \u2014 a process he agreed to make easier as part of his deal with them in January.\u00a0<\/p>\n<p>Himes said the challenges facing McCarthy are much tougher than those that confronted former Speaker John Boehner (R-Ohio), who had a much larger majority to work with during the debt ceiling battle of 2011, when the U.S. credit rating was downgraded for the first time in history.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>\u201cIt\u2019s unquestionably much worse,\u201d he said. \u201cOne hundred days of experience as Speaker, and he\u2019s got a tiny majority. And that majority includes people who \u2014 let me be diplomatic and say are unpredictable.\u201d<\/p>\n<p>Himes, echoing a chorus of others in his party, was quick to point out that Democrats voted to raise the debt limit three times under former President Trump \u2014 and even Republican deficit hawks were largely silent when those votes occurred under a GOP president.\u00a0<\/p>\n<p>\u201cRemember, three times during Donald Trump the debt ceiling got raised, and you didn\u2019t even notice because Kevin McCarthy and all the Republicans were like, \u2018Let\u2019s not screw around here now, we\u2019ve got a [Republican] president,\u2019\u201d he said. \u201cNow all of a sudden they need to take the grenade out, pull the pin and put it on the table.\u201d<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>Democrats, he added, are h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>y to debate the merits of federal programs and the funding provided to them. But that conversation should happen in the normal process of passing appropriations bills, he said, not with a federal default hanging in the balance.\u00a0<\/p>\n<p>\u201cGod bless you, if you want to cut food stamps to hungry children, if you want to make it harder to go to college, put that idea forward. But do it as part of the regular legislative process where we can debate it,\u201d Himes said. \u201cYou don\u2019t get to say, \u2018We\u2019re going to cut food stamps, and if you don\u2019t do it, we\u2019re blowing up the economy.\u2019 Which is what the debt ceiling conversation is all about.\u201d<\/p>\n<p>Amid the debate, some moderate Democrats are quietly voicing frustrations that Biden has refused to negotiate with McCarthy. But a vast majority of the caucus is sticking with their ally in the White House, warning opening that door would set a dangerous precedent for debt ceiling debates in the future. Himes said his advice to Biden would be to hold his ground.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr7_ab\"><\/aside>\n<p>\u201cI would tell the president, \u2018You can negotiate. [But] there\u2019s a reason we don\u2019t negotiate with hostage-takers,\u2019\u201d Himes said. \u201cBecause you\u2019ll be doing it again real soon.\u201d<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/homenews\/house\/3963642-key-democrat-fears-only-a-market-crash-will-resolve-debt-limit-impasse\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A key Democrat is warning this week that only a stock market collapse will break the partisan stalemate over raising the debt ceiling and preventing a government default over the summer.\u00a0 Rep. Jim Himes (D-Conn.), a former Goldman Sachs executive and senior member of the Financial Services Committee, said the Republicans\u2019 opposition to a debt&#8230;<\/p>\n","protected":false},"author":1,"featured_media":571445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/himesjim_121322gn_w.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134343,73798,134661,90482,133498,40445],"class_list":["post-571444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-campaign","tag-defense","tag-energy-environment","tag-house","tag-in-the-know","tag-media"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/571444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=571444"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/571444\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/571445"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=571444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=571444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=571444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}