Senate Majority Leader Harry Reid wants nothing to do with a short-term debt ceiling increase,
saying that it would do little to reassure financial markets concerned about the instability of Congress.
“They’re talking about extending the debt ceiling for two months or six weeks — please,” Reid said Friday. “We do not believe a six-week delay of a catastrophic default is enough time to give the economy the confidence it needs.” [...]
Republicans have proposed a short-term debt ceiling extension to allow time to negotiate spending cuts in exchange for a larger debt limit increase. Reid opposes a short-term extension because he said it would cause another crisis at Christmas time. [...]
Reid said that if Congress allows the government to default on its debt the world would go into a deep recession. “This is my opinion, if we allow the United States to default on its debt for the first time in its glorious history it will be a black mark … and will spark a global recession,” Reid said on the Senate floor.
The Senate votes Saturday on a long-term debt ceiling increase, so Reid is putting pressure on Senate Republicans on that vote by rejecting the possible out they're advancing—and
pitching to the president—today. Reid's basically telling them that at least as of now, if they want to avoid economic catastrophe, they vote with Democrats tomorrow. That would put even more pressure on House Republican leaders, giving them little choice on the debt limit other than accepting the Senate bill.