Common sense suggests that that spending be cut and taxes be increased. But so mired in their dislike for the other party are they that Congress cannot come to an agreement. From here, it looks as if it's the Republicans who are being more recalcitrant, refusing point blank to raise taxes.
If the debt ceiling isn't raised, the Federal Government won't default on the debt. What it will do is stop paying salaries of government departments. Maybe, to concentrate their minds, they could start with salaries and expenses for Congressmen and Senators.
Disclaimer. After nearly 40 years managing money for some of the largest life offices and investment managers in the world, I think I have something to offer. These days I'm retired, and I can't by law give you advice. I do make mistakes, but I try hard to do my analysis thoroughly, and to make sure my data are correct. Remember: the unexpected sometimes happens. The expected does too, but all too often it takes longer than you thought it would.
The Goddess of Markets punishes (eventually) greed, folly, laziness and arrogance. No matter how many years you've served Her. Take care. Be humble. And don't blame me.
BTW, clicking on most charts will produce the original-sized, i.e., bigger version.