Tuesday, May 17, 2011

Skepticism grows on Geithner's debt limit deadline

Link
Since January, Geithner has changed his forecast of when the U.S. would hit its borrowing cap, and the final deadline for raising the debt limit, at least four times -- fueling a belief among rank-and-file Republicans that his latest August 2 deadline is artificial and can be ignored.

Some Democrats are increasingly worried that the changing calendar has been counter-productive, complicating efforts to get the $14.3 trillion borrowing cap raised because many conservative Republicans do not believe the country will start to default for many months.

"You can only cry wolf so many times," a former economic official in the Bill Clinton White House told Reuters. "If you are jumping from May to July to August, you can see people thinking that maybe you can jump from August to October.