NEW YORK ( Real Money) --
- High theatre lies ahead.
- The continuing-resolution and budget issues have merged into one.
- A twelfth-hour compromise on Oct. 16-Oct. 17 seems likely.
- Given data-release issues, a taper is not probable until March 2014.
2. Boehner blinks. (A small possibility.)
3. A partial solution is offered if the debt ceiling is breached in which either Treasury payments would be prioritized or the president issues an executive order to lift the debt ceiling. (A low probability.)
4. A late-hour compromise on Oct. 16. (The highest probability and likely outcome.) The consequences of breaching the debt limit would result in a dire outcome. It seems likely that debate will go down to the wire, but a compromise will be made at the last minute.