It is probably already too late for a grand bargain that includes Social Security reform, but a smaller compromise perhaps trading some tax cutsfor higher social spending and expansion of Medicare to include prescription drugs might prove attractive to a lame-duck president.
According to rating agencies, heading over the fiscal cliff might have a similar impact for the U.S. government as a so-called Grand Bargain, which could capture the revenue increases Democrats are pining for and the spending cuts Republicans continue to hold out on.