The Ball Is Again In Obama's Court

And here comes the cave yet again. There is still room for a grand deal between the Dems and a minority of the GOP. So, if anything, the danger is even greater than before. Who else will Obama sacrifice for the New Year?:

Boehner has two problems: one with President Obama and another with his conference. And to the extent that he meliorates one he exacerbates the other. He can return to fiscal cliff negotiations with an empowered Obama, and try to eke out the sort of deal he just rejected, then pass it through the House next week, on a bipartisan basis at but a huge risk to his Speakership.

That’s the course he told members he’d pursue in the conference meeting Thursday night.

And the White House is open to it. “The President’s main priority is to ensure that taxes don’t go up on 98 percent of Americans and 97 percent of small businesses in just a few short days,” said Press Secretary Jay Carney. “The President will work with Congress to get this done and we are hopeful that we will be able to find a bipartisan solution quickly that protects the middle class and our economy.”

It sets up a scenario where Boehner’s old nemesis Nancy Pelosi is suddenly back in the driver’s seat, controlling the votes necessary to pass a deal.