POLITICO.COM : Business groups ranging from the U.S. Chamber of Commerce to financial services industry associations are putting pressure on traditional Republican allies to vote for an increase of the Debt Ceiling. Those groups are influential not just because they often side with the GOP on matters of public policy but also because many of them are big campaign donors

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"Rep. Jim Himes (D-Conn.), a former Goldman Sachs executive, said that right now “markets are clearly expecting that the debt ceiling will be raised,” but that “hell hath no fury like expectations unmet.”"

POLITICO.COM
Debt ceiling deal: Five uneasy pieces to the puzzle
By JONATHAN ALLEN & CARRIE BUDOFF BROWN
July 8, 2011


Debt ceiling deal: Five uneasy pieces to the puzzle


Some excerpts :

It’s easy enough to find lawmakers who believe the world won’t end if they refuse to hike the debt limit.

But the real test for most of them will come when the U.S. and world markets begin reacting to the impasse.

Rising interest rates, a credit freeze or a dip back into recession could be politically disastrous for lawmakers who refuse to lift the cap.

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Stan Collender, a former longtime Hill budget aide, said it may well take a replay of the 2008 vote on the bank bailout bill — the first package failed and the markets tanked before Congress approved a later version — to pull the debt-limit vote across the finish line.

“Members of Congress will need some reason to go back to constituents and say, ‘I was there with you, I wanted to vote against it, but look at what happened to the markets, I had to vote for this,’” Collender said.

Recess time.

Never underestimate the power of a congressional break in forcing lawmakers to get their work done.

The Aug. 2 deadline for lifting the debt ceiling falls just a few short days before Senate and House members are scheduled to go home, Aug. 5.

If Congress doesn’t finish its work on the debt limit, it’s safe to say they won’t be leaving town — and that’s as much of an incentive as anything else in Washington for breaking an impasse.

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