HotAir is reporting this is done.

I’ve been following the debt limit debate pretty closely at Megan McArdle’s and Tyler Cowen’s, but haven’t said much here. A couple quick thoughts:

First, the MSM coverage has been atrocious. Straight news pieces have consistently conflated reaching the debt ceiling with default, even after it was explained in various places this was untrue as revenues are several times interest payments — in fact, by most estimates there is enough revenue to cover interest, Social Security, Medicare, and essential military spending with a few tens of billions left over.  This is yet another example of the MSM putting a Dem spin on the news.

Second, it looks like the GOP is getting more or less the deal it wanted, with no new taxes and only the minor concession of probably pushing the debt ceiling past the next election (and even that is diminished by the fact the hike is in two parts). As I’ve been predicting, the Democrats really have little stomach for this fight. Megan has been making the case that the GOP was crazy to not bend more and could end up blamed for any shutdown, but as much as she’s been right about so much else in this case I think she fell victim to D.C.-centric thinking. The Democrats would endure far more pain in a shutdown — they are the party of government spending, government workers, government unions — and all they have to do to avoid that pain is agree to the GOP’s terms. Yes, GOP constituencies would have suffered some the same general pain, and those dependent on discretionary spending government like defense contractors would suffer more, but contractors can endure delayed payments of days, weeks, or months in ways that employees cannot (here in Obama’s home state, contractors are being paid as much a year late by some reports — guess who’s still getting paid on time?). A shutdown would have been painful for the GOP, but they only have to outlast the Dems, for whom it would be excruciating — and politically divisive as Obama was forced to pick and choose between funding the pet agencies of different interest groups.