Debt Ceiling Debate: Will Cooler Heads Prevail?

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Oct. 7 (Bloomberg) –- QGA Public Affairs’ John Feehery and Bloomberg’s Peter Cook discuss the latest on the government shutdown and the possibility of the debt ceiling being breached. They speak with Erik Schatzker and Stephanie Ruhle on Bloomberg Television's "Market Makers." (Source: Bloomberg)

In the president pro course.

My goal is not to have united states default on their debt.

My goal is to have a serious conversation about those things driving the deficit and driving the debt up.

The president's refusal to sit down and have a conversation about this is -- there you have it.

House speaker john boehner.

Joining us now, we have the press secretary for dennis hastert.

Peter cook is back with us on capitol hill.

John, does the speaker mean what he says, that we are going to default unless the president agrees?

Cooler heads are going to prevail.

My sense is in the house and the senate, there is already a process to get the government reopened and a short-term extension on the debt ceiling.

I do not think we will default.

I think we will reopen.

Right now you' on both sides were the president says that refuses to negotiate and he knows he has to negotiate.

And the speaker says he does not have the votes, which he does not have, but he will get them eventually.

What does he mean by "he doesn't have the votes?" a lot of people say if you put it to an up or down vote, you would have enough moderate republicans to get the clean resolution to pass.

What is the speaker talking about?

He says he does not have the votes to pass a clean debt limit.

I think we would have the votes to have the government reopened.

That does not solve the bigger problem, which is really dealing with this debt limit extension.

You need to get away, get a process to get a vote, both sides coming together to talk about the bigger budget package.

In the last hour -- we spoke to you and our ago -- you are saying nothing is happening.

Give us a shred of positivity here, please.

Even in the last hour, stephanie, we have had separate statements from the boehner and harry reid camps, dueling banjos.

They are playing the blame game.

It has gotten worse in the last hour than when i spoke to you last.

How do you get to that process that he is talking about without having one side blink first?

I think everyone agrees that is where it will end up, but how do you get them in the -- have you get there in the interim?

Someone has to be willing to walk back on the edge?

Peter, you do what you did with the supercommittee process a few years ago.

You come up with a process, developed a process to kick the can down the road, and have your extensions for reopening the government and a debt limit.

You know how this goes.

Congress does not act until it has to act.

It is kind of what you learn in grade school and high school about doing a term paper.

Putting it off until the very last minute.

That is kind of what congress is doing right here.

You also have to have pressure from both caucuses, the more centrist sides.

There are discussions in the senate, the more moderate forces, same thing in the south.

Couldn't one make an argument that they are under an immense amount of pressure already?

We hear from you and others, well, they are not going to let us breached the debt ceiling.

We heard the same thing in 2008. there is no way a company like lehman brothers will file.

And guess what, they did.

All sides understand you have to do something with extending the debt limit.

I think ultimately, the president will come to the table and negotiate a settlement to get out of this mess.

I understand what you probably do not trust the process, but it will work eventually.

John -- go-ahead, peter.

I just want to ask john if he thinks democrats will get that done, and if john boehner does this, will his speakership be in peril?

As you know, it requires finesse.

Extending the debt ceiling that's the debt limit, i think it requires a bigger package.

Ultimately harry reid will have to come to the table, some way to get the extension, to get this extended.

I have faith it is going to happen.

I do not know how it is going to happen.

There are people talking about a bigger budget deal as part of this.

It is going to take a while to get together.

Ultimately i think they will extend the limit.

John, let's talk about that point you're making about the need to talk to moderates on both sides of the aisle.

If moderates in the republican party are the linchpin right now, how does the hastert rule work?

Your former boss real idea that you have to get -- your former boss's idea that you have to get a majority of your caucus to vote on something to bring it to the flow.

It used to work the other way around.

You used to have to ring the extremist to your camp.

It is kind of like the analogy about the foxes in the house -- in the hen house in reverse.

I think that boehner says to his guys on the right, listen, if we do not come together on this and come up with a process, we are all going to collapse and divide.

I think for john let's talk about that point you're making about the need to talk to moderates on both sides of the aisle.

Boehner, he is try to keep his caucus together and when he keeps his conference and talk as together he has enough negotiating power with the senate.

It is all at dance, but at the end of the day they're trying to find the best way to work together in the republican conference to come up with a solution.

It is going to take a while to get there.

As far as the government shutdown, yes, it is annoying for the 25% of those folks in government who are for load, but 75% of the government is fully functioning.

-- it is annoying for the 25% of those folks in government who are for load -- furloughed.

For most americans, the government shutdown is not that big a deal.

Government shutdown not that

This text has been automatically generated. It may not be 100% accurate.

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