These managed steps begin with curtailing the amount of state and local debt that the federal government will support.
William Alden of the The Huffington Post cautions:
When the "extraordinary measures" begin Friday, the first casualty will be a category of non-marketable bonds known as State and Local Government Series securities, or SLGS (pronounced "slugs"). These securities are tailor-made for state and local governments, designed to help them pay for their debt. (source)
The result is that state and municipalities that are already reeling from reduced tax revenues will be hit first by the kabuki dance in Congress, even though both parties have already assured that the debt limit will be raised. This is dereliction of duty.