Raising The Federal Borrowing Limit

Treasury Secretary Tim Geither is warning lawmakers that they may have only until mid-February to raise the federal borrowing limit. In a letter to House Speaker John Boehner (R-Ohio), Geithner says by next month or early March at the latest Treasury will have exhausted the "extraordinary measures" that it's been using to avoid a default. Meanwhile, President Barack Obama yesterday said failure to raise the debt ceiling could delay veterans' benefits, military paychecks and federal contracts. While that could happen, the administration would have some discretion in which bills to pay.