govt shutdown looms

[Danzig]

Following talks, President Barack Obama rejected a Republican plan that would postpone a possible U.S. default, because it would not also reopen the federal government.

WASHINGTON — On a day crammed with rising and falling hopes, President Barack Obama and congressional Republicans groped inconclusively Thursday for common ground that could avert an economy-tanking default and possibly end the 10-day-old partial government shutdown.

"We expect further conversations tonight," Majority Leader Eric Cantor, R-Va., said cryptically at nightfall, after he, Speaker John Boehner and a delegation of House Republicans had met for more than an hour with Obama at the White House.

The White House issued a statement describing the session as a good one, but adding, that "no specific determination was made."

The up-and-down day also featured a dour warning from Treasury Secretary Jack Lew, who told lawmakers that the prospect of default had already caused interest rates to rise — and that worse lay ahead.


http://news.msn.com/us/obama-house-g...utdown-impasse