Mohamed A. El-Erian of PIMCO writes that America Needs a Grand Bargain, But All It’s Getting Is a Mini Deal. A grand bargain would, in my view, establish what we as a nation want the role of government to be and how we expect to pay for it. Of course that's a lot to agree to, and it's not likely that Obama will find a perspective that today's politicians will buy.
One reason he will have a hard time is that the Republicans don't want a grand bargain. If Obama were to succeed in building a grand bargain, the Republicans could no long argue that he is a socialist—or whatever they are accusing him of being these days.
So don't get your hopes up for a grand bargain. Republican politics won't let it happen. But wouldn't it be nice if it did.
One thing Obama might try to do is to enunciate what he thinks such a grand bargain might look like and then let the Republicans reject it. At least he would be showing some leadership, which he has failed to do.