In debt default US could face tough choices market panic

Political Deadlock Persists as Debt Ceiling Deadline Approaches

Debt Impasse - How Americans Want to See It Solved

Despite holding his second news conference in a week, it doesn't look like President Obama will get the "grand bargain" to raise the country's debt ceiling and avoid default.
"We are obviously running out of time," President Obama said. "And so what I've said to the members of Congress is that, 'You need, over the next 24 to 36 hours, to give me some sense of what your plan is to get the debt ceiling raised, through whatever mechanisms they can think about, and show me a plan in terms of what you're doing for deficit and debt reduction.'"
While President Obama criticized Republicans for not being willing to compromise on tax revenues, Congressional Republican leaders shot back by saying the president hasn't presented any serious proposals to solve the debt crisis.
"We asked the president to lead. We asked him to put forward a plan -- not a speech, a real plan -- and he hasn't," Speaker of the House John Boehner said. "We will."
Republican leadership announced Friday that the House of Representative will consider alternative legislation to solving the debt ceiling next week.
The legislation—called Cut, Cap and Balance—would raise the debt ceiling while cutting discretionary spending by $111 billion in the 2012 fiscal year, capping spending over the next ten years, and amend the Constitution to require a balanced budget.More...