If true, this is a huge deal.
At least we finally know how the whole thing will end. Either Republicans, about to lose their hostage, will take the Reid deal, or they'll stonewall, Obama will raise the ceiling unilaterally, impeachment proceedings will begin, and the US is likely to get downgraded. Whether that in and of itself triggers a recession or some sort of further economic catastrophe remains to be seen.
Fox Business is reporting that "officials from the Obama Administration" placed calls to "top executives at major U.S. banks" over the weekend assuring them that the administration will act unilaterally to prevent a default if an agreement isn't reached on extending the debt ceiling. According to one "senior banking official," White House officials say that while Obama intervening would take the threat of default "off the table," a downgrade to the U.S. credit rating remains will be "a real possibility for no other reason than S&P and Moody's have to cover (themselves) since they've been speaking out on the debt cap so much."Obama would invoke the 14th amendment to raise the debt ceiling on his own...
The Republican Party is going to have a lot to answer for.