In some parallel universe, Congress and President Obama would respond to the stock market tumble, the S&P ratings downgrade, and growing public disgust at their toxic inaction on fiscal policy in a simple way: They’d agree on the broad deficit reduction plan they could not settle on last month. The plan would include some short-term [...]

Let me see if I have this right: Senate Republican Leader Mitch McConnell (R-KY) has effectively embraced the debt limit plan first offered months ago by President Obama. Under the McConnell/Obama scenario, Congress would extend the government’s borrowing authority through next year without agreeing to a dime’s worth of spending reductions or tax increases. As [...]