Now with more to understand fitch putting the u.s. government on negative credit watch.
The aaa rating being reviewed by fitch.
Here to oppose understand what to make of all of this is thier ry wiseman.
And we have bill hoagland from the bipartisan policy center.
Let's start with you, bill hoagland.
What do people in des moines, iowa make of what is going on in washington?
They think this is a ridiculous exercise of politics, something they cannot get their head around in terms of what is going on.
They feel very disappointed in the government tonight.
And the blame is being laid pretty across the board.
This is a republican worry and it is stated out here, but they are pretty angry at what is going on in washington tonight.
Angry, disappointed, is that the language we will be using to describe politicians?
I do not think wall street is that upset, nor concerned about what is happening in washington.
They see it as run-of-the-mill.
If they were really concerned, you would probably see bond yields down on the day.
I do not want to see -- to exaggerate the issue.
I think something is going to happen someday soon, maybe within the next five days in washington to resolve this.
Do you think it could be wrong?
We have seen many instances in the past where you have these kind of games of chicken.
October 17 is not necessarily the last minute.
Although it has been spoken of as a deadline day, it is a pseudo-deadline.
There are plenty of things the government or the treasury can do to delay payment and effectively avoid default in the formal sense.
Having said that, congress is well aware it needs to solve this issue.
Mind you, it just in the last few weeks, there is not much progress.
Two weeks ago, house republicans , the tea party, they wanted to see obamacare funding delayed or effectively abandoned.
We are not seeing that anymore.
What is it they are negotiating about?
There are a few things, and keep in mind, this is a -- an issue in flux.
An hour ago might be different from what they were debating six hours ago.
But just up until an hour or two hours ago my house republicans were still wanting a deferment of a medical device tax.
They had given -- have given that up.
They will not make this a part of the house republican bill.
There is less and less daylight.
With regard to the issues, what is important is that as you get to the end game, even though there is less daylight between the parties, they still feel they need to extract confessions.
Even still, you will see resolutions within a few days.
Bill hoagland, do you agree, resolution within a few days?
I think there is no question they will not default, but i also agree that the 17th is somewhat of a date.
We had estimated somewhere between the 18th and the 22nd.
Let me just respond, though.
The people out here in the heartland, there -- their disappointment, i don't think they are looking specifically at how wall street feels about it.
They are looking at this and saying, if our disagreement comes over opening our government and paying our debts, what are we supposed to be doing?
This is not a major accomplishment on dealing with the long-term fiscal issues of this country.
Somehow, we've got to open up government.
And we have to honor our obligations.
Those are the things we need to be doing anyway.
I don't think any agreement reached in the next 24 to 48 hours is in great shape.
We think we need to keep government open and we should be honoring our obligations.
What are you telling them when they ask you what the fight is over, substantively?
Substantively, of course, it started out with the wrong box canyon analogy.
It started as something that would never be accomplished, and that is, the funding or delay of obamacare.
What this fight is over now simply just seems to be politics.
I agree there is an issue here, long-term deficit reduction, debt reduction.
And that is what i think is still on the table.
But it is clearly not coming to pass in this agreement that is talked about the next 24 to 48 hours.
Is it possible, though, that there are things that both the democrats and the republicans cannot control?
A talk about this as a bill they come to as a last minute agreement.
But sometimes those are beyond anybody's understanding and they cannot even predict them.
What is at risk is the possibility of a default and credit rating dropped.
I don't think that worst-case verio is actually going to happen, however.
With regards to the long-term deficit reduction and debt reduction, it is not really congress that is to blame on the lack of availability to define a long-term resolution.
It is that there is no agreement
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