Obama could have let the Bush tax cuts on the rich expire last December without Congressional action and he might have more bargaining power now. Time will tell if the deals he makes are worth the big compromises. Elizabeth Warren is now considering a run for Ted Kennedy's old Senate seat against Scott Brown. If she does run will he really get behind her as he runs for reelection?
Mother Jones magazine has a good explanation of the background and political chess game surrounding the debt ceiling. Republicans in the House seem to be intransigent to McConnell's plan. The government is scheduled to run out of money on August 2.