So where is this heading?

by William A. Jacobson of Legal Insurrection blog.

• John Boehner has given up, for now
• Nancy Pelosi is moving towards a deal in which there would be significant cuts without tax increases, but no cuts to entitlements
• Pelosi may be onto something
• dueling press conferences

It looks like political posturing.  We can't get a deal because it is a fundamental difference in governance, which cannot be negotiated.  Previous negotiations in the past seemed to work, but it was only because the Republicans agreed to accept cuts in exchange for higher taxes.  But the cuts never materialized.  Something has to give, but the Republicans have decided, at least for now, that it won't be themselves as the ones who give in.

They'll possibly get cuts, but it won't amount to much and these cuts can be taken back later, if the Democrats can win back the House.  Hence, Pelosi's involvement.  She wants to be savior and get the glow from that.

You may have a deal if you get modest cuts in discretionary spending, entitlement spending, and a short term patch with both sides having to come back for another round later.  Otherwise, somebody will have to climb down real fast, or a deal won't get done.