TPM Reader GR doesn’t like the feel of this …
While I don’t agree with Gergen’s reasoning, I think that he is on to something. Krugman’s blog post today is closer to what I think is going to happen – nothing but a tantrum.
The House of Reps has no incentive to cave or bargain in good faith. The vast majority of them are in very safe districts and I dare say that at least a critical mass of them are true believers who see compromise as a violation of one of the Commandments. I doubt that many of them see any positive to themselves or, in the deluded minds of the TeaFolk, the country, in settling. These folk honestly believe that capping the debt crippling governemnt is an inherently good thing and they are probably willing to pay the price of a few percentage points in tax hikes to which they can feign outrage on the stump.
Yes, rates will go up, but the removal of a few percent of GDP from the economy will also be triggered and the few chess players of the GOP who are left probably believe that the potential recession will be blamed on Obama.
I don’t see this as a clear path to a policy triumph for Obama. Instead I see it as the beginning of a minimum two year turmoil.
