Fiscal Cliff Negotiations Appear To Have Stalled

By Larry Kane

PHILADELPHIA (CBS) - The President and the House speaker had what was called a "frank" meeting Thursday night with no visible progress on the financial negotiations.

Democratic and Republican lawmakers from the Delaware Valley and just outside the region have given a composite view of the strategy.

The Republicans, many of them moderate, now feel that the Obama white house is willing to let the deadline pass for the so-called "fiscal cliff" of tax increases and budget cuts on January 1st, knowing that the changes can be delayed. They know that last-minute strategy could hurt their party.

The Democrats believe that the Republicans are reckless because they have not once included in their proposal a tax increase for higher income earners, and the Democrats hope the deadline pressure will force the Republicans to compromise.

The problem with both strategies is what if neither side blinks?

Sources on both sides seem disturbed with their leadership's lack of progress, although individual members of Congress are keeping unusually quiet.

Individual lawmakers are disturbed that more than half of Americans recently surveyed blame both sides for the deadlock and they worry about the consequences.