Deal?

Looks like there's an emerging debt ceiling deal that will likely pass both houses. Here's the gist:

- Debt ceiling increase of up to $2.8 trillion

- Spending cuts of roughly $1 trillion

- Vote on the Balanced Budget Amendment

- Special committee to recommend cuts of $1.8 trillion (or whatever it takes to add up to the total of the debt ceiling increase)

- Committee must make recommendations before Thanksgiving recess

- If Congress does not approve those cuts by late December, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare.

No new revenues, and the usual "not done deal yet" caveats apply. But assuming it passes this is a huge victory for Republicans. For everyone wondering why they were acting so crazy up until now... this is why they were acting so crazy up until now.

I hope the Fed responds with QE3.