Originally Posted by FD
Failing to raise the debt ceiling wouldn't cause a government shutdown, at least not how we traditionally use that term. It would cause a catastrophic default and massive recession. While most Republicans in the House do seem to find this option acceptable, there is no way Boehner does. In the end, I think he will blink.
I think Obama and Boehner will blink simultaneously, coming to a small-ball deal so they can say they came to a deal, a la fiscal cliff.
I don't think, however, that they come to this deal prior to hitting the ceiling.
This is going to sound crazy, but the GOP's base is so pissed at them, they basically have to default the country for a day or so to protect their right flanks, to prove they are fighting with Obama, not compromising with him.