House's debt bill now dead in Senate; Crisis continues - WSFA.com Montgomery Alabama news.

House's debt bill now dead in Senate; Crisis continues

Democrats promised the House's bill to avoid a debt crisis was not going to survive, and they held true to their word.

The bill, passed by Republicans in the U.S. House Friday afternoon, traveled across the hall to the Senate where it was immediately voted down.

A motion to table the bill, basically setting it aside and effectively killing it, was presented and when the votes were tallied, the bill was dead.

The measure, narrowly passed by the GOP in the House - 218 to 210, failed to pass the Senate by a wider margin - 59 to 41. Some Republicans crossed the isle and joined Democrats in voting the measure down.

Alabama's two Republican senators, Richard Shelby and Jeff Sessions, were not among those crossing the isle. Both voted against the table measure, essentially voting in support of the bill.

The standoff continues and time is running out on the August 2 deadline to keep the United States from defaulting on its obligations to fund its debt.

The debt ceiling is currently at $14 trillion and without Congressional approval to raise it, the U.S. Treasury says it will be unable to pay all of its bills.

A credit default, which would be a first in U.S. History, would certainly mean the nation's perfect, triple-A rated credit score would be downgraded.

That would, in turn, force higher interest rates on US debt and would bleed over into the average American's wallet with higher interest rates on things like home loans, car loans and more.

More information on WSFA.COM.

Copyright 2011 WSFA 12 News. All rights reserved.

Powered by Frankly