Potential Pathway to End Government Shutdown

Jon Karl and George Stephanopoulos report the latest news on the battle over the debt ceiling.
3:00 | 10/13/13

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Transcript for Potential Pathway to End Government Shutdown
Jon, what is the up to the minute state of play in these negotiations to finally end this thing. Reporter: Dan, it's up to the SENATE LEADERS, mitch McConnell and harry reid, two men who have been barely been on speaking terms to find a resolution to this, they talked yesterday, they talked for some time yesterday, they are trying to come an agreement on a deal that would keep the government running and postpone default UNTIL JANUARY 31st, THAT WOULD Be a government spending bill and an increase to the nation's borrowing authority. Republicans have given up almost everything they originally demanded. But, dan the bottom line right now is, talks have broken down over this -- democrats want to see some spending increases as part of it. In other words, democrats are pushing to undo some of the cuts that were put in place under the so-called sequester as part of the government funding for this temporary reopening, dan, it doesn't look very good right now. They're at least talking. Another potential snag, if hypothetically this deal gets cut on the senate side, when they send it to the house, what are the odds it will pass there? Reporter: Oh, yeah, the house. This is a situation, speaker john boehner, as we were talking about friday, talking with the president, trying to negotiate something with the president, he's been cut out of this, it's up to house to take or leave any agreement comes out of the senate, there's no guarantee it will pass there. Although my sense, dan is, that the speaker of the house boehner will allow a vote that will allow a vote of whatever comes out of that. Many people watching the slow-motion disaster in d.C. Don't know whether to laugh or cry. Snl took a run at the various serious story hoping to get us to see the lighter side. The hubble telescope. Mission control, please advise. Mission control is not here right now, can I take a message? What do you mean, they're not here? This is awkward ux the government has shut down. The hit movie "gravity." For more let's bring in george stephanopoulos, hosting "this week" later this morning. What happened over the weekend, we hearing words like "pros greszive," constructive". Deja vu all over again. The president started to work something out with the house and john boehner couldn't sell it. If senator reid and senator McCONNELL ARE ABLE TO COME TO A Deal, only viable path to solve this, is to jam it through. The speaker would have to allow a vote on something that's almost certain not to get a majority of his caucus behind it. It's something that he's been unwilling to do in the past. That's what he would have to do now, assuming there's a deal in is the senate. Stepping away from washington, let aes assume that don't lift the debt ceiling by friday. It could be huge, the truth is, though, we don't know, we have never seen it before, it's never happened in american history. The business community have warned three levels of effects. Number one, credit markets could freeze. Number two at the end of this month, direct payments from government have to be made in medicaid, social security, veterans, military pay, they could be put at risk in the month of november. Consumer confidence, if this prolonged for any period of time there would be a huge drop in economic growth. The impact could be absolute ly catastrophic. The 17th may not be the day we hit the debt ceiling. All right, george, thank you. George will have the latest on efforts to end the government shutdown coming up later on abc's "this week."

This transcript has been automatically generated and may not be 100% accurate.

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