Obama Meeting Fails to End Budget Dispute

Government shutdown enters its third day.

The first face-to-face talks between President Barack Obama and congressional leaders failed to break the budget logjam as a partial U.S. government shutdown entered its third day.

The Oval Office meeting yesterday evening ended with both sides reiterating their positions and the points they’ve been making for days, raising the prospect of a prolonged standoff over the government shutdown and raising the U.S. debt limit.

‘In Trouble’

“This time’s different,” Obama said. “When you have a situation in which a faction is willing potentially to default on U.S. government obligations then we are in trouble.”

Political Leverage

As the stalemate wears on, both sides are grasping for political leverage.

Spending Trajectory

“What’s going to hurt our economy is our failure to deal with our spending trajectory, which is going to bankrupt us,” the Texas Republican said in an interview. “Anything that has ever passed for fiscal responsibility in Washington, D.C., has almost exclusively been attached to a debt ceiling.”

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