This is just getting better and better. First, the good news and then the funny news.

Democratic sources tell me that Reid – after a series of meetings with Democratic moderates – has concluded he can pass a bill with a public option.

And the funny news:

“Baucus went to DEFCON 1,” said a source familiar with the negotiations, referring to the alert level the military uses for an imminent attack on the homeland.

I don't know if it's accurate, but just the idea of Baucus flipping his shit is good enough for me.

Plus, I heard on the Ed Show that the House has enough votes to pass their bill with the public option. Though it's unclear which version of the public option that would be. There are currently three public options floating around the House, with the Medicare Part E plan being the strongest, according to CBO scoring.