While a lot of rhetorical barbs are still being tossed around Washington, D.C., suddenly the way seems clear for a modified plan from the Republican Leader of the Senate, which may lead to an increase in the the debt ceiling and lay the groundwork for sizeable budget cuts.
While the proposal from Sen. Mitch McConnell (R-KY) was roundly rejected by many Republicans earlier this week, it is gaining more traction in both parties, as Senate Majority Leader Harry Reid is working with McConnell on the matter.
"What may look like less than optimal today, if we're unable to get to an agreement, might look pretty good a couple of weeks from now," said Speaker John Boehner, when asked about the McConnell plan at a Thursday news conference.
"I think it's worth keeping on the table," the Speaker added.
That in itself sent a pretty big public signal, which was only amplified later in the day as more details of an emerging deal started to leak out in the halls of Congress.
Not only did Boehner open the door on that plan - despite opposition within his own ranks - but House Democratic Leader Nancy Pelosi also signaled she could accept it at her own Thursday news conference.
"Bravo for Sen. McConnell," Pelosi said.
The plan would give President Obama the authority to raise the debt ceiling in three parts, by $2.5 billion overall.
The Congress would not vote directly on those increases, but could reject them with a resolution of disapproval - an unlikely outcome.
To gain the support of Tea Party Republicans and other more conservative lawmakers, the plan would include the creation of a special commission comprised of a dozen members of Congress, and modeled on one that dealt with military base closures - which would come up with recommendations for spending cuts and revenue reforms.
Those plans would later be sent to the House and Senate for a straight up-or-down vote, with no amendments allowed.
The panel reportedly would be filled with an even number of lawmakers from both parties, to insure that they come up with a bipartisan agreement.
Along with that mechanism to force action on budget changes, there was talk that the House could also add some additional budget savings immediately, as already agreed to in earlier talks led by Vice President Biden.
Those reportedly totaled $1.5 trillion over 10 years.
That move would give many Republicans something tangible to show that they voted for budget cuts this year.
All of this was obviously subject to change, but it matched up with a growing feeling in the halls of the Capitol that "the fix was in" on some type of exit strategy which incorporated the McConnell plan.
There will be no negotiations at the White House on Friday, as House Democrats and Republicans will meet behind closed doors in separate meetings to gauge where things stand in the debt limit negotiations.
Those developments came as the Secretary of Treasury met with Senate Democrats and made clear that no additional time would be granted for negotiations on a debt limit agreement.
"We've looked at all available options, and we have no way to give Congress more time to solve this problem," said Secretary Timothy Geithner.
But that extra time may not be needed, with McConnell and Reid working together on an alternative plan.
We'll see what President Obama has to say about this option in his Friday news conference at 11am.
