Why are the old-guard Republican leftovers in the House fooling around with this mickey-mouse stuff? You know who wins? The Tea Party types. As long as they sit there and hold their breath until they turn blue, the Tea Partiers get exactly what they want: no debt limit increase. Why WOULD they go for a deal? They understand why they were sent there to do.
I guess they haven't been there long enough to know how to play the game. Good for them. Here's hoping we don't get much "power corrupts" action before the elections in 2014.
If you think we have to Do Something to Avert Default!!! then you are getting your news from the wrong source. You should be reading Michael Shedlock because he knows what he's talking about when it comes to economics and he has good sources. Quoting something he quoted here:
The Treasury is not going to default in August, nor in subsequent months for that matter. An estimated $172.4 billion of tax revenue next month is more than enough to cover the $29 billion of August interest payments. For fiscal 2011, which ends Sept. 30, the Treasury is expected to take in revenue of $2.2 trillion, while only $214 billion is needed to service the debt.