Debtpocalypse Avoided

Obama and congressional leaders reached a deal late Sunday night.

The White House and congressional leaders have finally reached a deal to raise the federal debt limit narrowly avoiding default just a day before the U.S. Treasury was set to run out of cash. The debt limit will be raised up to $2.4 trillion in two stages, with over $2 trillion planned in gradual spending cuts. Tax breaks for the rich will continue, but somehow, so will Social Security and Medicaire. A new congressional committee will also be set up later to seek more reforms. Congress is expected to vote on the deal shortly. Presidential hopeful Michele Bachmann has already pledged not to support the deal, urging that any bill that raises the debt limit is "an admission that we can't deal with the problem.''