I'm with Krugman:
This is no time for a Grand Bargain, because the Republican Party, as now constituted, is just not an entity with which the president can make a serious deal. If we’re going to get a grip on our nation’s problems — of which the budget deficit is a minor part — the power of the G.O.P.’s extremists, and their willingness to hold the economy hostage if they don’t get their way, needs to be broken.
And I'd go even farther. This is no time for a bargain--period--whether grand or petite. GOP extremism has become tantamount to political gangsterism, and one should never bargain with gangsters. There's no honor among them, they'll double-cross you at the smallest drop of self-advantage, and, in sum, only an unspeakable fool would place any trust in them. At all.
If we don't break their strangling power, then we can kiss this potential city on a hill goodbye, and one of the globe's still-leading hopes will descend into permanent dysfunction and chronic impuissance.