[…] talking to my contacts inside the D.C. Beltway suggests that better cooperation may be just around the corner. Indeed, the President got beat-up pretty well on the Libya scandal, Obamacare, no budget, etc., potentially making him more malleable. Additionally, I am told he wants to secure his place in history and does not want to spin the economy back into a recession. Speaking to the Republicans, they got absolutely crushed in the Electoral College vote, potentially making them more pliable as well. In fact, John Boehner’s speech was the most conciliatory address I have ever heard him give

Amid negotiations in late 2010 to extend the Bush-era tax cuts, the White House agreed to go along with the extension in return for favorable consideration when it came time to raise the debt ceiling in mid-2011. That did not work out so well for the president. This time around, Obama doesn’t have to worry about getting re-elected. He is in a much better bargaining position. Moreover, the Republican Party remains split. The ones who have been around for a while realize the importance of compromise, but the Tea Party Republicans don’t want to yield and some even believe that shutting down the government would be a good thing. A deal is possible, but I’m not hopeful.