Anothe reason the markets may be happy today: It sounds as though Obama is going to cave on taxes.

Robert Gibbs was on Good Morning America today, and confirmed that the only thing Barack Obama won't do is grant a permanent extension of the tax cuts for the rich. A temporary -- probably 3-year extension -- is something Obama is willing to deal on.

Now it's not guaranteed that the GOP will take this, and in fact it might benefit them politically to blow up the whole deal over this, because voters always blame Democrats for any time taxes go up on anybody for whatever reason. And the GOP knows that if in 3 years, a reversion of the cuts is on the table -- and they're not tethered to middle class taxes -- then it will be hard to keep the cuts permanent. So it's not over yet.

But folks over at FireDogLake, probably the most principled big liberal news/blog, are already furious with Obama for the sellout, and for reneging on promises to hike taxes on the rich.