Jared Bernstein (with emphasis added):

From what I’m picking up in the ether (and from Ez Klein’s tweets and from here) it sounds like a deal is forming to avoid the cliff…

[details of the deal]

…So, here’s my first blush response to this deal.  The thing that worried me most in the endgame is that the WH would be so intent on a deal that they’d lock in too few revenues with no path back to the revenue well, and that they’d leave the debt ceiling hanging out there.  Remember, the ultimate goal of Repubicans here is still to “starve the beast”–to shrink government by hacking away at both sides of its ledger–receipts and outlays.

Those fears will be realized unless the President really and truly refuses to negotiate on the debt ceiling and is willing to blow past those who would stage a strategic default.  If he is not, and if this cliff deal passes, then I fear the WH may have squandered its hard won leverage.

So, for the 729th time, if the deal stinks then walk away.  Go over the Cliff and start negotiating – from a position of strength – in January.  No deal is better than a shitty deal.  Any questions?