by Calculated Risk on 12/15/2011 07:43:00 PM

Just more brinkmanship, but I'm pretty sure there will no significant government shutdown and the payroll tax cut will be extended.

From the WSJ: Congress Blinks on Shutdown

Congressional leaders—fearful of voters' wrath over Washington's bickering and brinkmanship—stepped back Thursday from a possible government shutdown, clearing the way for extending a payroll tax cut that is set to expire at year's end.
...
The spending bill compromise was expected to come to a final vote Friday, in time to avert a shutdown. ... A deal on the payroll tax compromise is expected to follow, although negotiators were still struggling to decide how to offset the cost ...

Earlier:
• Weekly Initial Unemployment Claims decline to 366,000
• Industrial Production decreased 0.2% in November, Capacity Utilization decreased
• Empire State and Philly Fed Manufacturing Indexes show improvement in December