NEW YORK (WCBS 880 / AP) - The clock is running out on the U.S. debt ceiling.
Republican Rep. Peter King of Long Island says if President Barack Obama and House Speaker John Boehner don't come back together to get a deal to raise the debt ceiling, then, in his words the House will reach its own agreement with the Senate.
WCBS 880's Rich Lamb With Rep. Peter King
"I can tell, having been at the Republican meetings for the last three or four weeks when this issue has really hit a crescendo, Boehner has made it clear that we cannot allow a default and we do have some people who think, 'Let this play out. See what happens. We can still pay the interest on the debt, Social Security, and Medicare.' No, we cannot allow the good faith and credit of the United States to collapse, and that's what will happen," King said.
King points out the four major players - Boehner, Senate Majority Leader Harry Reid, and Senate Minority Leader Mitch McConnell and the President - are all opposed to a default, so in his words, "there should be a way to work it through."
Meanwhile, the third ranking Democrat in the Senate says a deficit-reduction proposal put forward by Reid has the best chance of ending the political stalemate and avoiding a government default.
New York Sen. Chuck Schumer says in a television interview that he expects the Nevada Democrat to release details of his plan later Monday. Schumer says the deal would last through 2012, cut spending by the same amount as borrowing is increased and contain no new taxes.
Schumer also says he believes no accord can be reached without the approval of President Obama, Reid, McConnell, Boehner, and House Minority Leader Nancy Pelosi.
Schumer says he believes the Reid proposal is "the kind of thing Speaker Boehner can rally his tea party troops'' to support.
WCBS 880's John Metaxas With Advice For Investors
Financial planner Doug Flynn says he's getting calls from clients asking if they should sell their stocks and bonds in case the markets tumble because of a government default.
"The risk if you panic and sell right now is primarily the fact that you have to have a clear plan on when you're gonna get back in, says Flynn.
He says most investors are not equipped to make that fast kind of trade, and it's very difficult to be right twice - when you sell and when you buy.
"I also don't think it makes sense to make major shifts to your portfolio, for what may or may not happen in the next couple of days," Flynn tells WCBS 880's John Metaxas.
Flynn does admit that it might be a good idea to keep a little cash on the sidelines just to see what happens.
(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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