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House bid rejected, Senate Democrats and Republicans now negotiating

After President Obama rejected a bid from House Republicans for a short-term debt limit increase, all eyes are on the Senate as negotiations there are underway. Senate Democratic Majority Leader Harry Reid met with his Republican counterpart, Mitch McConnell, telling reporters after that he wanted to cut a deal, although nothing had been decided. (SOUNDBITE) DEMOCRATIC SENATE MAJORITY LEADER HARRY REID SAYING: "I hope that our talking gives some solace to the American people and to the world. This hasn't happened until now. Senator McConnell asked to meet with me, I was happy to do that." The Treasury Department has warned that -- for the first time in history -- the United States could default on its debt, if the nation's borrowing limit isn't raised before Thursday. Lawmakers continue to scramble to try and put hundreds of thousand of federal workers back on the job, after their failure to pass a budget before October 1 led to a partial shutdown. A

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