Michael Block of Phoenix Partners has the super-condensed version of what’s going on in this very slow week:Remember we have some big numbers coming up later in the week – Case Shiller on Wed, New Home Sales Thursday and Chicago PMI on Friday. Other than that didn’t really hear much more than resignation out of DC this weekend. We need a patch at this point and that’s enough.
The idea that the last best hope is a “patch” that just pushes things off a bit into 2013 seems to be where the conventional wisdom is right now.
WSJ has a good rundown of Senators on the Sunday shows this weekend, and that seems to be where their heads are.
The thinking is: The GOP doesn’t want to be on the receiving end of blame for going over the cliff, and the Senate is a little more hospitable to compromise than the house is, so it’s possible that something could get done.
Meanwhile, Anthony Ip of Deutsche Bank describes what’s about to happen, news-wise:
In a statement on Friday, Obama described his plan as an “achievable goal that can get done in 10 days” and conceded that a “grand bargain” for deficit reduction with the GOP is unlikely before year-end. With the House and the Senate only reconvening on Thursday 27th and the President on vacation in Hawaii at the start of the week, it is fair to say that newsflow over the next 72 hours will be fairly thin before we head into a tense final few business days of the year.
Get some rest over the next day or two. It’s possible there will be some late-year drama.