Oct. 8 - The stalemate in Washington continues, with President Obama and House Speaker John Boehner in a fiscal standoff over a U.S. government shutdown and raising the debt ceiling. Jillian Kitchener reports.
The stalemate in Washington continues. Eight days into a government shutdown, a bigger storm looms, as an October 17 deadline to raise the country's $16.7 trillion borrowing limit approaches. In an impromptu news conference at the White House. President Obama says he is willing to talk to House Speaker John Boehner, with one exception. (SOUNDBITE)(English) PRESIDENT OBAMA, SAYING: "Having such a conversation, talks, negotiations, shouldn't require hanging the threats of a government shutdown or economic chaos over the heads of the American people." "As soon as Congress votes to reopen the government, it's also got to vote to meet our countries commitments. To meet our bills. Raise the debt ceiling." Shortly after, Boehner offered this rebuttal. (SOUNDBITE)(English) HOUSE SPEAKER JOHN BOEHNER, SAYING: "The long and short of it is, there is going to be a negotiation here. We can't raise the debt ceiling without doing something about what's driving us to borrow more money and to live beyond our means." Meanwhile the economic stakes are high, says Olivier Blanchard, chief economist at the IMF. (SOUNDBITE)(English) IMF CHIEF ECONOMIST OLIVIER BLANCHARD, SAYING: "If there was a problem lifting the debt ceiling, it could well be that what is now a recovery would turn into a recession or even worse." On Wall Street, Stocks slid to their lowest close in a month as investor impatience with Washington grows.