Lew to testify on debt limit increase

{mosads}Lew has told Congress the $16.7 trillion limit must be raised by Oct. 17 to ensure the United States does not for the first time default on any payment obligations,  but so far Congress does not appear to have a path to raise the borrowing limit.

Senate Finance, chaired by Sen. Max Baucus (D-Mont.) will host the 8:30 am hearing.

Democrats are eager to increase Wall Street pressure on House Republicans to pass a “clean” debt ceiling increase. 

Many economists have said a default could spark a catastrophic recession but some House Republicans have downplayed the effects of failing to make payments other than those due to bondholders. 

Even though Baucus has warned that the roll out of ObamaCare could prove to be a “train wreck” he has said a government shutdown or debt default should not be used to change or end the health program he helped create.

Senate Banking later in the day will hear from a panel of high-powered financial sector notables on the need to raise the borrowing limit.

Frank Keating, the president of the American Bankers Association will testify along with Securities Industry and Financial Markets Association’s Kenneth Bentsen, the National Association of Realtors’ Gary Thomas, and Paul Schott Stevens of the Investment Company Institute.