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Boehner: Debt Limit is Obama's Problem

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    Former Indiana Senator Evan Bayh on what will push a debt deal to get done.

  • Duration 3:30
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-- with more on all this let's bring Evan Bayh and former democratic senator from Indiana and Fox News contributor with us from DC senator good to see you again.

You know I -- -- you got the feeling good listening to speaker Boehner also watching it for comments from senator McConnell earlier today that the Republicans are getting much more aggressive with all of this.

What do you make of the change in in the rhetoric saying this the president's problem that's -- speaker Boehner just said.

Well both parties are speaking to their -- right now Republicans obviously drawing a firm line against tax increases the Democrats are not wanting to touch entitlement spending.

And that leaves independents and moderates in the middle scratching their heads wondering do any these people know what they're doing yeah so you know from my experience on Capitol Hill though things always.

Go right to the -- they look terrible.

But also -- the markets will react here and forced people to come to some kind of an agreement because we can't default.

SharePoint is a little bit -- them move upward say in interest rates which we have not by the way seen in the United States just yet.

That would be to trigger that gets a deal done.

Some -- taken interest rates possibly pressure on the dollar possibly some correction in the equity markets.

-- called the time of the a banking crisis.

There was an effort by the government to step in to stabilize the banking system nobody wanted to do it but it had to be done to divert -- -- calamity what happened.

The house -- represented -- voted it down.

The stock market dropped 800 points within an hour.

And -- the House of Representatives of well we can't have that they came back and pass the bill so you might see a repetition of that but I think more likely if there's just gridlock sets and and the two parties just can't come to some sort of an accommodation you should you could see a short term extension of a couple of months passed by the house paid for spending cuts.

I doubt of the president's gonna you know -- that forced to fault although he's indicated he would seriously consider that and so you might see a series of those kind of things which.

Frankly would undermine our confidence in the market on our government's ability to get its act -- we heard -- Yesterday him being the president that he did not want to do that that that's necessarily mean as you say that he might not end up doing -- I also thought.

That the president and the speaker had essentially the same problem yesterday and you -- -- Jolie speaking to their bases.

That neither could get the the left wing of the party in the president's case the right wing of the party and speak debaters case to come around to their side but now.

Listening to speaker bitter today it seems if he's kind of adopted the language.

That Eric Cantor was using.

Meaning that maybe he's in line with that side of this party if you're the Democrats and the Republicans won't budge how do you handle that.

I think what happened in the case of the speaker was he was attempting to get a larger agreement to get the deficit down over time the debt down over time.

That was gonna involve some revenue raisers even if it came mostly from greater growth in the economy and he looked around and realized.

He was -- but the troops were following right and so ultimately have to get the votes so.

-- -- you know it is a true dilemma and that's why I think we've seen we're seeing true dysfunction in the political process it's gonna take an outside event.

A market -- a reaction of some kind of force the politicians to give up.

Some of their ideological and partisan infringement and ultimately get a deal done it will get done but it's gonna look very messy in the process and -- your viewers' sake.

There's going to be a fair amount of volatility in the markets as we get closer.

Two to the deadline.

You might be right about that we've we've actually been saying almost the same thing on the show and we haven't seen that yet terms of movement in the market so.

Well we'll see if it comes to that senator Bayh thanks again for coming -- we appreciate it.

Great to be with you.

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