Incensed opposition parties are threatening to topple Stephen Harper's Conservative minority and have begun informally exploring the idea of cobbling together a governing coalition.
The Liberals are taking the prospect so seriously that some MPs are privately discussing ways to dump Leader Stéphane Dion without waiting for their party's scheduled May 2 leadership vote.
Sources say NDP Leader Jack Layton has cancelled a trip Friday to Vancouver to take part in the opposition talks, which went on through much of Thursday.
The machinations followed the release of the fall fiscal update.
The question will be the Liberals - with the leadership conference not until May 2nd, and the party in debt, will Dion resign to allow a coalition under Ignatiaff? Would a coalition survive?
My feeling is Harper has misjudged this, cutting off public funding for political parties 'should' backfire. It might be that looking at poll numbers, and a record low turnout - the Conservatives are saying to Canada 'you don't care - so you might as well live with us'.
Long live democracy!