Obviously the president believes they have all the leverage, so they can offer something ridiculous and the Republicans will start making all sorts of concessions. I think he overplayed his hand as unserious. The best next move by Republicans should be to shut the door on Obama/Geitner. They don't need to negotiate with him. They need to negotiate with Harry Reid. Obama is going to sign anything as he always does. He is completely unserious. He is NOT even in the room. The Republicans are conceding ground by even humoring dealing with his lacky Geitner who is an errand-boy for the president.
I believe they will do this because they have done it before. They should laugh at/ignore the president's offer and begin actual discussions w/Reid.