The administration is not going to give the Republicans anything in return for either funding the government or paying its debts. I guess some people can be forgiven for thinking that 2011 is a good predictor for 2013, but that was a complete miscalculation.
The president has absolutely no incentive whatsoever to give an inch, and plenty of incentive to force the Republicans to eat their porridge.
Meanwhile, someone just opened fire on the west front of the Capitol Building.