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RE :”When Democrats decided to pass on raising the nation’s $14.29 trillion debt limit during the 111th Congress’ lame duck session this December, the game plan for the 112th Congress was simple: scare “responsible” Republicans into voting to raise the debt limit, just as they were scared into voting for TARP. This would both negate charges that Democrats were the only party raising the country’s debt, and drive a wedge between Republican leaders in Congress and their tea party base. At first, everything seemed to go according to plan. Geithner sent a scary letter to Congress warning of a financial crisis worse than 2008 if the debt limit was not raised before March 31. Republican congressional leaders even acknowledged that the debt limit had to be raised. But the White House then made two mistakes: It believed its own news releases and underestimated the lessons of TARP....The other big mistake the Obama administration made was to forget how much skepticism TARP created in Congress about claims that the sky is falling. A number of incumbent senators (such as Utah Republican Bob Bennett) were forcibly retired by voters because they acted unquestioningly on such fears. ...Obama’s resulting bargaining position is quite weak. If he wants to raise the debt ceiling, he has only two alternatives — sign off on severe Republican spending cuts or on severe spending cuts by Geithner. “

Yep, over at MSNBC the progressives kept repeating how the crossing the debt limit would bring on a great depression and that Republicans would get the blame for it, much like the 1994 shutdown. A number were predicting the the liberals(progressives) in congress could themselves hold out for concessions, that Boehner would have to look for Democrats to vote to pass the extension so he wouldnt get the blame for it.

This is all starting to become very interesting. As I watched some of those House of Rep. Committee meetings a few months back Geithner appeared to have even won over most of the Republicans sitting on the Finance Committee, as to his good intentions. Lots of smiles among everyone. No one seemed to challenge his proposals at that time as how to get spending under control.
Then bingo. The issue that they all knew, or should have known, for crying out loud one only has to look at the CBO, and other reports last year, made it clear things where going to hit the fan.
I maintain they already had hit the fan just from the perspective of the total Federal Taxes projected to be collected verse the spending budget. And we had the already huge spiraling GND, so close as equaling the GNP alone with other key indicators, not looking anywhere safe.
These people knew for the past few years just how serious things where going to get. Especially with a failing economy, getting even worse.
Now the truth is hard to hide. And The Fed Chairmen and his crony Secretary of Treasury are going to be on the hot seat. Which they rightfully deserve.

Yep, over at MSNBC the progressives kept repeating how the crossing the debt limit would bring on a great depression and that Republicans would get the blame for it, much like the 1994 shutdown. A number were predicting the the liberals(progressives) in congress could themselves hold out for concessions, that Boehner would have to look for Democrats to vote to pass the extension so he wouldnt get the blame for it.

I think many are missing a key point of this, the Dems still fear the label "tax and spend". I believe that part of this was intended to force the Republicans to raise taxes. While the Dems could have forced through Tax increases in the Lame Duck session, they would have owned the tax increases, look at what happened with the extension of the "Bush Tax Cuts".

Thanks sickoflibs.

[Zero] has only two alternatives -- sign off on severe Republican spending cuts or on severe spending cuts by Geithner.