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RE :"At this stage, Republicans would do best to cut their losses and find a way to extend the payroll holiday quickly. Then go home and return in January with a united House-Senate strategy that forces Democrats to make specific policy choices that highlight the differences between the parties on spending, taxes and regulation. Wisconsin freshman Senator Ron Johnson has been floating a useful agenda for such a strategy. The alternative is more chaotic retreat and the return of all-Democratic rule. The Journal's criticism of Boehner will only strengthen the Democratic position, and is sure to be trotted out by Democrats and even some Republicans to pressure the Speaker to pass the bill — and put an end to the legislative nightmare. That said, Boehner hasn't caved to Democrats yet, and is likely to take these negotiations up to the brink."

I am not sure how having this lapse for a week or two in January would bring the world to an end politically, however it all depends on how Boehner and house members can play this up on TV calling Obama and the Senate back versus Obama who is accusing them of tanking the economy on purpose.

Boehner made the mistake of agreeing to the Senate bill, or at least looking like he did only to come back to a rebellion making him look weak and playing into Democrat talking points. That is what makes me think he will still cave in the end.

Rove says Boehner should wait until Obama flies to Hawaii (but before Jan. 1) and then pass the 2 month extension, while complaining that it's stupid and expensive. When he got back to the teleprompter, Obama would reply that Boehner and McConnell should have communicated better, or should have read the bill before agreeing to it, something like that.

Meanwhile, spending goes up, up, up, and the GOP is afraid that if they block the spending voters will throw them out.