Senate Democrats are crafting their own stop gap budget measure but it won't have much of a chance in the GOP House. Meanwhile, with Obama threatening to veto the GOP's own stop gap measure, it looks like we're headed for a train wreck. The New York Times:

President Obama's third attempt in 24 hours to end the budget standoff on Thursday night did not produce a deal to fend off a shutdown of the federal government, but negotiators issued a statement saying they had "narrowed" the issues significantly.

John A. Boehner, the speaker of the House, and Harry Reid, the Senate majority leader, after leaving a meeting with President Obama at the White House on Thursday.

The House speaker, John A. Boehner, and Senator Harry Reid of Nevada, the majority leader, did not appear before reporters after the hourlong meeting in the White House, slipping out quietly instead. In a rare joint statement, Mr. Reid and Mr. Boehner said they would continue to work to reach a deal before the government's authority to spend money runs out at midnight Friday.

"We have narrowed the issues; however, we have not yet reached an agreement," the two men said in the statement. "We will continue to work through the night to attempt to resolve our remaining differences."

Who will blink first? If the Democrats cave, they risk the anger of their base. Same for GOP. Someone, somewhere is eventually going to be very unhappy about this with unknown consequences for 2012.