Down To The Wire

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Tuesday, July 26, 2011 - 3:00pm

Debt showdown continues on Capitol Hill.

A deal to hike the debt limit and avoid default on government bonds by next Tuesday looks less likely, and Americans are angry.

In a new Reuters-Ipsos poll, 55% said President Obama and Republicans should compromise, cut spending, raise taxes and raise the debt limit, but it's not happening.

Stocks dived at the opening bell, showing Wall Street is more worried after Monday's dueling speeches from President Obama and House Speaker John Boehner.

As thousands called Capitol Hill Tuesday the conservative group Heritage Action warned Tea Party lawmakers to vote "no" on the latest six-month Republican plan that would to raise the debt limit and cut spending by $1.2 billion.

Can Speaker Boehner get his own plan passed?

"It's reasonable. It's responsible. It can pass the House, and it can pass the Senate," Boehner says.

The White House says it won't.

"The Speaker's proposal cannot pass the Senate, will not pass the Senate, will not reach the President's desk," warns White House Press Secretary Jay Carney.

There's little sign of compromise.

The House could vote on the Boehner plan on Wednesday, while the Senate could take up the Democrats' alternative.

Neither looks like a solution.
 

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