Who will blink first?

I think Harper will back down.

Personal opinion: I think a short term coalition is doable.

Her Excellency, the Right Honourable Governor-General Michaelle-Jean is out of the country on state visits, due back December 7th. She can come back, and if the vote of none confidence goes through, the opposition (a Liberal/NDP coalition with Bloq support) persuades her to let them form the government. It’s been done before. She can also grant a request by Prime Minister Harper for another election. CP:

Opposition leaders, incensed by the government’s fall economic update, ignored the prime minister’s appeal and were to spend the weekend negotiating the details of a parallel government that could wrest power from the Tories less than two months after the Oct. 14 general election.

Harper ended an extraordinary 36 hours in the national capital by announcing the cancellation of Monday’s scheduled opposition day and the delay of a confidence vote on his government’s fall economic update.

But his measures only buy the government a reprieve to Dec. 8, when the Liberals, New Democrats and Bloc Quebecois can use their combined majority to vote non-confidence.

The arguments, pro and con are flying fast and furious online, on the Hill and in media.

Dr. Dawg.
The Prairie Wrangler
My Blahg

Canada has had two federal coalition governments. The 40th Parliament:
Conservatives (143)
Liberals (77)
New Democrats (37)
Bloc Québécois (49)
Independent (2)

Adam Radwanski -Small men of confederation
Chantel Hebert - Tory partisanship creates foul mood