From The Associated Press:
Ending a perilous stalemate, President Barack Obama and congressional leaders announced historic agreement Sunday night on emergency legislation to avert the nation’s first-ever financial default.
The dramatic resolution lifted a cloud that had threatened the still-fragile economic recovery at home–and it instantly powered a rise in financial markets overseas.
The agreement would slice at least $2.4 trillion from federal spending over a decade, a steep price for many Democrats, too little for many Republicans. The Treasury’s authority to borrow would be extended beyond the 2012 elections, a key objective for Obama, though the president had to give up his insistence on raising taxes on wealthy Americans to reduce deficits.
The deal, with scant time remaining before Tuesday’s debt-limit deadline for paying government bills, “will allow us to avoid default and end the crisis that Washington imposed on the rest of America,” the president said in an announcement at the White House.
Default “would have had a devastating effect on our economy,” he said.
House Speaker John Boehner telephoned Obama at mid-evening to say the agreement had been struck, then immediately began pitching the deal to his fractious rank and file.
Read the whole thing here. See, those silly folks in Congress kept fighting amongst themselves, rejecting each other’s plans. Now comes Obama to cut the deal that will save the world. Or, something like that in tomorrow’s news. Well played, GOP.