Media Coverage

Party Leaders Dismiss Rival Debt Plans as Debate Hits Home Stretch

07/25/2011 - Transcript:

GWEN IFILL: With little more than a week until the debt-ceiling deadline, lawmakers on both sides of Capitol Hill offered competing plans today on how to avert a crisis. And, late today, the White House announced that President Obama will weigh in as well, with a prime-time address to the nation tonight.

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GWEN IFILL: Let's talk about the state, because a lot of this trickles down in lots of interesting ways, beyond what is happening in Washington and beyond what's happening in Wall Street. Are there states who are bracing for any kind of impact?

KIL HUH, Pew Center on the States: They are.

What you have to remember is, if the federal government defaults, the safest government asset worldwide would get downgraded by the major credit agencies. And that is going to have a downstream affect. It could become much more difficult for states and localities to borrow. They might have a lack of access to the market or they might pay more in order to borrow in the long-term if a federal default takes place.

Read the transcript or watch the video at pbs.org.

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