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Default looming as shutdown continues

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WASHINGTON (KNOE 8 News/AP) - The United States is moving perilously closer to an economy-rattling default and a partial government shutdown entered its third week with no resolution in sight.

Senate Democratic and Republican leaders remained at odds over spending in their last-ditch negotiations to end the crises gripping the nation.

Majority Leader Harry Reid and Minority Leader Mitch McConnell spoke Sunday but failed to agree on a deal to raise the nation's borrowing authority above the $16.7 trillion debt limit or reopen the government.

Congress is racing the clock with Treasury Secretary Jack Lew warning that the U.S. will quickly exhaust its ability to pay the bills on Thursday.

The reaction of world markets and the Dow Jones on Monday could provide a jolt to Senate leaders, who represent the last chance for a solution.

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