Question of the Week: Deal or No Deal on Debt Ceiling Compromise?

A compromise to raise the debt ceiling is starting to look unlikely as we stare down the Aug. 2 deadline. Democrats and Republicans continue to spar like angry children.

Lack of a compromise could produce dire consequences. Without a deal, the U.S. could be downgraded and a default could send the country into another recession (and possibly doom Obama’s chances for reelection.)

Right now, there are two separate deals on the table. One is from House Speaker John Boehner (R-Ohio) and the other from Senate Majority Leader Harry Reid, (D-Nev.). The bills are quite similar, but neither looks like it will pass.

Boehner today was retooling his plan after the Congressional Budget Office said the proposal cuts less then he’d estimated — not $1.2 trillion over 10 years, but roughly $850 billion. Republicans are expected to vote on the deal Thursday. (Tea Party activists are apparently upset with Boehner and have stopped short of calling for him to resign as speaker.)

Earlier this week, President Obama went on television to urge Americans to rally round Reid’s plan to raise the debt ceiling. Obama’s been criticized for giving a political speech.