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06/20/2011

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Hermes

Even if a deal to raise the debt limit emerges ahead of an August 2 deadline -- just six days away -- Obama faces a risk of being perceived as weak if he appears too willing to make concessions.

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The political fallout for Obama could be far greater if there is no agreement. A default and government-debt downgrade could send the U.S. economy into another recession, potentially dooming Obama's prospects for re-election in 2012.

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