I'm in AGNC with 4,914 Call Options...let's Rock n Roll : )
I believe that one side, either Obama or the GOP will offer to delay the fiscal cliff by extending the date, say for 6 months or the like, if they cannot come up to a compromise in time. If the offer to extend the date gets turned down by one of the two sides then the perception will be that the side who turned it down is completely unwilling to compromise and they will be perceived as the bad guys and I will agree with them whether it is Obama or the GOP. Refusing a date extension would be an excessive tactic and uncalled for, and indicates a reckless disregard for the economy in my opinion.
We need to move out of this situation gradually to keep from creating economic ripples, I think everyone realizes that. And anyone who is willing to tank the economy out of stubbornness is going too far.