Debt Ceiling Deja Vu; Wall Street Better Watch Out, Says Task

The debt ceiling cloud is looming over Congress once again.

The U.S. is nearing the roof of its spending limit - some economists estimate that it will be reached as early as mid-October. Congress will then have to decide whether to increase the limit or to default on the nation’s debts.

Congress last increased the debt limit in 2011 to $16.7 trillion after a harrowing debate that ultimately led to the downgrade of U.S. credit by Standard and Poor’s.

It looks as though a hearty debate is once again imminent -- House Speaker John Boehner (R-Ohio) has said that President Obama will have to negotiate spending cuts if he wants the ceiling raised. "For decades, the White House and Congress have used the debt limit to find bipartisan solutions on the deficit and the debt," he said in a news conference last week. (more)

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