Ezra Klein helpfully explains what each side is thinking:
The Obama administration, which many people considered cool toward a deficit deal, has been willing to concede much more than anyone expected — including raising the Medicare eligibility age and cutting Social Security. Republicans, who made the deficit their top priority in the last election, have been willing to concede much less. But the difference isn't really that the Obama administration wants a deal and Republicans don't. It's that the Obama administration wants to reach a big deal now, and the Republicans want a series of smaller deals dragged out over as long a period as is politically and economically feasible.
On Friday Obama made the case for a grand bargain to liberals. Chait is unconvinced. I think the case should have been made months ago.
The Dish 