Neither side is completely happy with it. But given the reality of a divided Washington, its the best that could be done at this time. Getting the budget cut won’t be easy, but we’ll do it. And unlike in Europe, Americans won’t riot over reduced government spending.
Having no agreement would have forced a balanced budget without the need for an Amendment. The feds bring in $150-$170 billion per month most of the time, more in January and April when tax payments are due. That pays the debt (about $30 billion) and a whole lot more - but not all of the crap. No compromise would have meant that cuts would have been mandatory...and the Republicans just signed off on the opposite. Yes, the markets wouldn't have liked it, but I don't think that the markets will like anything except continued stimulus. As it is, we've got a huge tax increase baked in to the budget pie starting 1/1/2013 (the Bush tax cuts which are going to expire unless the Congress agrees to extend them and Obama signs it again...in the middle of an election campaign - which ain't happening). Unemployment will be higher, along with the deficit (not the least because a ratings downgrade will be priced into the bond market, even if S&P or Moody's doesn't do it officially). IOW, the markets will shortly be headed south, no matter what is done in DC.
Money bills start in the House, controlled by Republicans. They fell down on the jobs with this compromise.