• White House believes a compromise on debt ceiling possible
  • Office of Management and Budget told agencies to prepare for possibility of sequestration but still confident of reaching a deal
  • White House/Congress talks put on hold for 24 hours, no reason why
  • Separately, a number of House members from both sides have signed some kind of pledge promising to compromise

It’s all smoke and mirrors but it’s the ebb and flow of the fiscal cliff saga.