SalemNews.com, Salem, MA

Nation/World

October 17, 2013

Senate, House vote to end shutdown

(Continued)

As the Oct. 17 debt-limit deadline approached, there were warnings from European officials as well as Cabinet members and bankers in this country that failure to raise the debt limit invited an economic disaster far worse than the near-meltdown of 2008.

On Tuesday, the Fitch credit rating agency said it was reviewing its AAA rating on U.S. government debt for possible downgrade.

By then, the endgame was underway.

Late last week, Obama met with Boehner and House Republicans at the White House. The session resulted in brief follow-up talks in which GOP aides suggested easing the across-the-board spending cuts in exchange for changes in benefit programs such as making Medicare more expensive for better-off beneficiaries.

After that faltered, Reid and McConnell announced over the weekend they were seeking a deal to solve the crises, and expressed hope they could quickly come to an agreement.

That effort was suspended on Tuesday, a day of suspense in which Boehner made one last stab at a conservatives’ solution. When his rank and file refused to coalesce around any proposal, he gave up and McConnell and Reid returned to their labors.

___

Associated Press writers Donna Cassata, Alan Fram, Andrew Taylor, Henry C. Jackson, Bradley Klapper, Laurie Kellman, Julie Pace and Jim Kuhnhenn contributed to this story.

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