Joe Scarborough started off rightfully excoriating Republicans in the House for allowing the fiscal cliff solution to fall heavily in favor of spending and taxing with no cuts that amount to much. The taxes actually don't amount to much in terms of deficit reduction, but they hurt the private sector by taking that much more money out of the economy. It was all symbolism, and most people are blaming Republicans because Republicans caved on the deal so they wouldn't be blamed.
Dan Senor tried to defend Republicans and spin the situation so that later on the GOP has leverage with the debt ceiling, but this doesn't work. Sam Stein said that Republicans had time to do something before the deadline, and they did but the senate wouldn't take it up -- Stein also said that Republicans have to send over legislation that will be accepted by both sides, whatever this is. Right now what is accepted by both sides is what favors the Democrats' political image.
Nothing of significance is being done by Congress or the President. We're stuck in political theater because the consequences of statism have become so dire and complex that political actors are frozen and reduced to piddling around the edges jockeying for political position. When we allowed our government to place politics above economics and slowly remove limits on government power decades ago it was only a matter of time before we reached the point of breakdown -- it's happened before to empires that could never fail.