Dan Drezner figures that a grand bargain on the deficit is possible:
If GOP legislative leaders calculate that they can't win back the White House in 2012, their preference flips over to cutting a deal with the Obama administration. Bipartisan deals help incumbents and hurt challengers, which means that in cutting a deal, the House Republicans would help Obama while helping themselves. That's not their first option, but in a political climate when Donald Trump can poll second in New Hampshire by embracing the birthers, it's not the worst calculation either.
The Dish 