Debt Deal: Is $2.4T Over 10 Years Enough?

You're probably not gonna believe this, but the members of Congress actually did it.

They came through and agreed on a debt ceiling plan, and just in the nick of time. Like one of those old movie serials where the hero is teetering on the precipice of death one week and walks away without a scratch the next, their game of financial chicken looks like it will have a happy ending (at press time a vote was still pending).

According to The Hill, even as Senate Majority Democrat Leader Harry Reid signed off on the deal -- which would cut the deficit by about $2.4 trillion and raise the debt ceiling by a similar amount, while cutting spending by $1.2 trillion up front (a select committee will get together "later" to find the other $1.6 trillion in cuts) -- Republican House Speaker John Boehner could still scuttle it over fears that it cuts too much from Pentagon budgets.

Reid and House Minority Leader Nancy Pelosi agreed to support the measure, but they, too, may have to twist the arms of some of their caucus, who may balk at the fact that it doesn't raise any additional tax revenue.

Even though it kicks the can down the road on the extra $1.6 trillion in cuts, the deal has an automatic trigger that will implement $1.2 trillion in spending cuts if the select committee gets deadlocked.

The apparent deal maker was an agreement between President Obama and Senate Republican Leader Mitch McConnell to divide the automatic cuts evenly between defense and non-defense programs. Also, though Medicare cuts made the final deal (and would be triggered as a penalty if the committee fails to produce a package), beneficiaries would not feel the impact, but instead those trims would hit health care providers and insurance companies via lower payments.