Debt Ceiling

Stocks rose Monday, helped by signs that Washington was moving closer to a deal that would avert a default by the U.S. government.

The House has passed a bill to permit the government to borrow enough money to avoid a first avoid default for at least four months, defusing a crisis looming next month and setting the stage for a springtime debate over taxes, spending and the deficit.

The House has passed a bill to permit the government to borrow enough money to avoid a first avoid default for at least four months, defusing a crisis looming next month and setting the stage for a springtime debate over taxes, spending and the deficit.

Republicans controlling the House are moving quickly to try to defuse a potential debt crisis. They're offering legislation to prevent a first-ever default on U.S. obligations for three months or more.

A Republican official says the GOP-controlled House will vote next week to permit the government to borrow more money to meets its obligations.

President Barack Obama demanded on Monday that lawmakers raise the nation's $16.4 trillion federal debt limit quickly, warning that "Social Security benefits and veterans' checks will be delayed" if they don't and cautioning Republicans not to insist on concessions in exchange.

An anonymous analogy has been circulating the internet.  It's a simple analogy that will help you understand the debt ceiling.