So McConnell is ready to crave in on most things, George, but I don't think he is ready to give in on spending cuts.
STEPHANOPOULOS: And no talks scheduled yet for today.
OK, Jon Karl, thanks very much.
That's where things stand in Washington
Let's get more on the economic fallout from our chief business and economic correspondent Rebecca Jarvis. Rebecca, Wall Street jumped several hundred points Thursday and Friday when they thought a deal was coming. Any sense of how these latest developments are going to go down?
REBECCA JARVIS, ABC NEWS CORRESPONDENT: There's a lot more downside risk this morning, George, than there is upside potential. And really what was saw last week is market cheering on the news that House Republicans had put something on the table as far as the debt limit was concerned. Even though it was short term the markets like that. Now, when you look at the upside ahead of the October 17 deadline, you have about 1 percent potential for upside. 1 percent upside potential in the markets if it looks like a deal is getting done.
But the downside potential is much more dramatic.
Ahead of the October 17 deadline, we could see the markets drop 2 percent, even 3 percent, if it looks like a deal isn't getting done. But again, George, this isn't just a matter of what happens ahead of October 17, October 17 is D-Day.
STEPHANOPOULOS: And after that all bets are off?
JARVIS: After that, all bets are off. Every bank on Wall Street has been gaming this out. There's a war room set up. They're thinking about their exposure to this. And we could see a very disorderly decline in the markets then. We're talking 500, even 600 points of downside as far as the Dow is concerned.
STEPHANOPOULOS: Back to the days of 2007, 2008. Rebecca Jarvis, thanks very much.
Now from the Congress, three very distinct perspectives. Republican Senator Lindsey Graham who has been in the middle of talks to develop a bipartisan solution, Democratic Congressman Keith Ellison co-chair of the House progressive caucus. And Republican congressman Raul Labrador, a leader among House conservatives.
And Senator Graham, let me begin with you. You were working on a deal with Democrats and Republicans in the Senate, it seemed to collapse yesterday, shot down by the Democratic leader Harry Reid. Right now, is there any deal that could get through both houses of congress and signed by the president?
GRAHAM: I don't see one. If you break the spending caps you're not get any Republicans in the Senate.
And here's what I'm worried about a deal coming out of the Senate, that a majority of Republicans can't vote for in the House, that really does compromise Speaker Boehner's leadership. And after all this mess is over, do we really want to compromise John Boehner as leader of the House? I don't think so.
So I'm not going to vote for any plan that I don't think can get a majority of Republicans in the House, understanding that defunding Obamacare and delaying for a year is not a realistic possibility now.
STEPHANOPOULOS: That's a pretty high bar, Senator Graham.
Let me bring that up to Congressman Labrador. Here, you've been insisting that there has to be changes in the Affordable Care Act in order to pass any kind of a CR or any kind of a debt limit extension. But the Democrats have been absolutely clear that's not going to happen. You don't have a majority for that.