As I posted here at the time, it was a brilliant strategic tactic. The talks had been held hostage by Pelosi for months and were never going to yield an acceptable deal before the election. By calling them off, President Trump had nothing to lose, despite the usual critics who always blame him for everything. Either, nothing happens and a deal is passed after the election favoring whichever side won the vote, OR the Dems come running back to the table and it looks like a compromise deal with both sides giving up something to gain something gets done. It still might not happen before the election but don’t be surprised if a deal gets done next week.  John Rubino agrees with me.               ” With a little hindsight, it’s clear that this was one of his “Art of the Deal” tactics, albeit in compressed form.

You walk away from stalled talks, get in your car and drive off, leaving the other side stunned and, hopefully, softened up for compromise. Then you restart negotiations with each side a little more flexible, and — in this case the crucial second part of the strategy — the deal broken up into bite-sized, and thus more easily doable, parts.

Huh. It appears to be working. Mnuchin and Pelosi are making hopeful sounds and the stock market – addicted as it is to ever-easier money – is now happily anticipating an extended high.

But the politics of this strategy are even more interesting than the finance. The big conflict here is the Democrats’ burning desire to bail out their party’s governors and mayors colliding with Trump’s aversion to rewarding those officials’ horrendous mismanagement (and refusal to vote Republican). Remember, California, Illinois, New Jersey, and their peers were looking at pension crises (i.e., functional bankruptcy) before the pandemic hit.

The strategy of breaking the stimulus bill up into pieces puts the Dems in a tough spot, having to oppose saving big, crucial industries and giving money directly to voters in order to protect bail-outs for Dem-run states. This is not a good place to be going into the election, but it’s where Trump has put them.

So, well-played, Mr. President. Whatever else you’ve done, you have indeed taught the rest of us some lessons in hard-ball negotiating. We’ll be better for it no matter where you end up next year.”