-- captions by vitac -- www.vitac.com good morning. it is friday, july 2nd. this is your "wake-up call." joining you live. about the vote i told you about 24 hours ago, it didn't half. sorry. congress made a liar out of me. honestly i have no idea what's going to happen in washington tonight. there could be a vote unless there isn't a voechlt and the house might pass a bill that meets a quick demise in the senate. i do know that the tuesday deadline to raise the debt ceiling remains in place. it's right around the corner.

here is the current u.s. debt ceiling. it 14i$14.3 trillion. we hit it in may. if they don't comeup with a dee. they have a scheduled meeting in about five hours. listen to how far republicans, other republicans and democrats are. this is from "anderson cooper 360" late last night. first majority whip steny hoyer. >> even within their own party, it is deeply divided party, divided against their leadership, angry at their leadership, and a party that has divided itself, has difficulty working with the president and with us and that's unfortunate and the country is the poorer for it. >> i don't buy this notion of e default.

to me that's a false choice. default means you can't service your debt, you can't pay off your debt, anderson, and there's plenty of government revenues to do that. one of the things that's been harmful in this debate is there's been this obsession with august 2nd, august 2nd. we need to get this right. we need a balanced budget amendment. if it takes us a few days more to make sure we get it right, let's do it. >> so congressman walsh doesn't sound too wired. maybe he hasn't read the new reports, say, from credit suisse which says if the u.s. eventually defaults on its payments stocks could fall 30% in the next year and the economy could contract 5% over the same period and every month that there's a stalemate, 1% comes off the u.s. gross domestic product, the gdp. happy friday. on the upside third quarter say there's less than a 1% chance that the default scenario actually happens. but what if it does happen? the president has suggested that the august social security checks might not go out.

not everyone agrees that those checks are hangs in the balance however. cnn money points out that social security has an enormous trust fund and that the social security act requires the fund and payroll tacks be used to pay those benefits. medicare and medicaid represent another bill. they have to pay out several billion dollars for those programs next week and they represent some of the biggest payments. and a debt default doomsday could mean students who took out or will take out private loans to cover their education will pay higher interest rates. executives from some 20 major banks are meeting with treasury officials today and it's a fair bet to say the debt issue will be a major topic on their agenda. the nikkei and hang seng closed down. let's go to kristie lu stout. what's the big headline this morning, kristie it's all a ar w

rows down. the yen soon as a safe haven continues to rise. meanwhile stocks in europe are also dae cleaning. europe is battling its own debt crisis. moody's has placed spain's government bonds on a downgrachltd government pressures and weak growth were behind that decision. ali, back to you in new york. >> kristie, we always worry when we get into a weekend and we have a deadline and we don't have a deal here that that's going to start touching asian markets more quickly than it's going to touch u.s. markets on monday. what's the reaction to the u.s. not having a deal so far? >> let's look a at the political reaction out of china, the largest foreign holder. chinese leaders, the they're not just worried. they're angry. stephen roach, of morgan stanley, he's been telling cnn

that chinese leaders are appalled and that they think that america's behavior could create havoc in the global economy. meanwhile the news agency shing wa released a statement says, quote, the well being of many other countries is also in the impact zone. that's referring to other foreign holders of u.s. debt including japan. so, ali, there's a lot of fear, there's a lot of anger here in asia. >> kristie, we'll keep in touch with you on this. just how bad off are we, the united states, when it comes to the nation's debt? team co-has some ideas. >> our government is days away from being broke. congress's latest plan is to see how much cash they can get for john mccain on antique road show. >> they excellently crossed the border into mirk? did you hear about that? think about it.

things have got son bad in this country that people are only crossing the border now by accident. according to a recent survey, this year kids are receiving an average of 40 cents less under their pillows from the tooth fairy. the economy is so bad even make-bee believe people are feeling the pinch. >> all right. let's go to meteorologist lex draw steel live from atlanta. alexandra is watching tropical storm don. >> good morning. it's the fourth named storm of the season. so let's show you where it is. getting better organize. right now winds at 50 miles per hour. you can see we are seeing gusts to 65 miles per hour. it is moving west-northwest moving at 13 miles per hour. here's what we're going to seem again, you heard ali say expectation is landfall late tonight or early tomorrow morning, should not come ashore

as a hurricane. shouldn't make hurricane status at all. the wind should stay in the 50s to low 50 mirp rage. late tonight, early tomorrow, slight strengthening is expected. it's gotten better organized. what we're going to see is tropical storm force winds extend out about 100 miles from the center of the core of circulation. on the average, rain, three to five inches all the way to south central texas. isolated seven inches. but, ali, this area is in such a desperate drought they need 15 inches of rain. it certainly will be beneficial. it's a small type circulation. expectation is it will stay small, but what they need as a state is a big expansive system that moves pretty quickly so it brings the beneficial rain but the flooding is really kept at bay. >> alexandra are what are we looking at?

>> chicago, detroit, areas that have seen these thunderstorms day after day, again today and tonight. we will see delays in chicago, also in detroit. the san francisco, morning fog, but a big story also we could talk about later in the morning. the heat. mid-atlantic, 100-degree heat, richmond, virginia, washington, d.c., intense heat, record heat, we're flirting with 100, 101 degre degrees, breaking temperatures from 100 years ago. the quote of the day about the debt ceiling, quote, washington may be broken, but it will not break me." find out which newsmaker said this about the debt ceiling debate. before you go, your voice needs to be heard, so throughout the hour we're going to hear from you, our viewers. here is vernon hill. >> the u.s. of america is about to go broke. we're about to lose our credit ratings. the people of the world are looking at us and wondering what the hell is going on with the greatest nation in the world.

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11 minutes after the hour. back to the quote of the derek "washington may be broken, but it will not break me." joe manchin. now for your morning punch line comedian jay leno gets very candid about the players in washington. >> i understand that they cut, cap, and balance. of course the democrats have their plan, duck and cover. that doesn't work either. and house speaker john boehner urging republicans to support his bill by telling them to get their asses in line. this is typical. if it's not wall street it's -- they're a bunch of asses. that's the trouble. time now for your political ticker with tim farley, host on

serioirius xm live from washing. tim, i woke up this morning and tweeted it's like groundhog day. >> i know exactly what you're saying. my favorite quote, ali, is jennifer who blogs and writes "the washington post." the house just emailed me buckets of crazy. the vote was postponed yesterday. there's a meeting this morning. there will be a vote at some point today, we anticipate, although maybe not. here we are just a few days away from what will be a default and as you made the point so well this week is default and downgrade. and downgrade looks even more likely the way that things are playing out. i talked to a senator on the air, he was one of the gang of six. he said the senate can move pretty quickly on this. they can do unanimous consent. the question is what will they move quickly on. we wait to see what happens in the house and the senate because both the house and the senate will be in session all weekend

so they can move quickly and -- i know, hard to believe -- they can do this to get something done. >> this is the key point. this is the boehner plan. boehner's working to get his votes behind him to get the votes passed in the house. that may not be the plan the senate is interested in. there's a plan that the house doesn't seem to like. they're going to be working through the weekend. but we're actually -- the one advantage we've got is solid plans on the table. but we don't have agreement on those plans. >> number and we could have a simple one-page agreement that. is something that's been done in the past and whatever gets to the president's desk, i have maintained all along and i maintain in this, he will sign because it may not be the most optimum outkombu it is preferable to have a debt ceiling raised as to what might happen as a result of not signing it. >> he may have to sign it like this, closing his nose. >> use the auto pen. >> the auto pen. that's it.

that might happen. tim vrks a good show this morning. tim farley, host of morning radio on sirius xm. authorities say private first-class na sir abdul was arrested with nufl materials to make two bombs. found gun powder, gun shells and islamic literature in his hotel room. you'll remember ft. hood, by the way, is where the shooting spree left 13 people dead nearly two years ago. a close call for a pilot of an f-16 fighter jet attempting to land in wisconsin. take a look at this. as you can see, the pilot is making what appears to be a routine landing when something goes wrong. the jet ended up crash landing off the runway and stopped in some grass. the mishap sunday investigation. a former astronaut who made headlines for going cross

country wearing diapers is forced to resipe. they accuse lisa nowak of drien ing driving 900 miles to confront a coleague who was dating her foreign love interest. she wore diapers to cut down on the number of stops. they said captain nowak's conduct fell well short of that expected of senior officers. talk of the debt in the elevator today or at least talk to yourself because july 29th is national talk in an elevator day. don't be shy. you know you ride up the elevator with the same person every day. ask them where they're from, what they do, what floor they work on. we want to make sure your voice is heard in the debt debate. this comment was posted. quote, when i was a small boy, i used to think we had the greatest country in the world. at this time in our history, we are a mockery of global economic economy and politics. we can't seem to work together any more. why does it take something catastrophic like 9/11 to make

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20 minutes after the hour. tropical storm don could reach the texas coast by tonight. it could bring heavy rain falls in the state. president obama is set to announce new fuel economy standards for cars and trucks today because he doesn't have anything else to do. we're expecting the proposal to

call for all vehicles sold in 2025 to call for 50 miles a gallon. >> and we're watching the latest from capitol hill as boehner tries to muster enough votes to pass his debt plan. cnn will bring you extensive coverage throughout the day. the debt ending is days away. if august 2nd comes and goes without a deal, who gets paid, who won't? that's the $14.3 trillion question. here is our chief national correspondent john king. there's a funny date on the calendar called august 2nd at which something bad is goichk to happen. are they exaggerating how bad? who knows. we've never done that before. something bad is going to happen and it cost somebody, a family, son, daughter, husband or wife in affect, might cost them their check if we get three or four or five days past august 2nd. as john says, we don't really know what's going to half. consequences could hit your home, your neighborhood, your city, your country, your world.

it's like dominos. that is likely to trickle down and everybody would pay higher interest rates, higher mortgage rates for those with a fixed rate, a bigger credit card bill. it could spook companies leading to job losses and the stock market could take a big hit. other than that, probably no problems. right now these are all ifs. the world is watching. we've got to get our stuff together lchlt's go around the world with zain verjee. a libya commander has been found dead along with two officials. what's his name. >> he was assassinated in benghazi, which is the rebel stronghold in the center in the eastern part of libya. this is a really significant development and could be a major blow to the rebels. but it's really unclear who killed him. was it moammar gadhafi's forces, or was it the rebels, many of which who don't like him are

responsible for his death? the circumstances are really not clear. one version that we're hearing that we understand is that eunice, the zwren real, was on his way to meet with a panel of judges because they wanted to question him about military strategy and concerns. they have been making strategic advances. they've seized some important town bus there were ke questions about how younis was conducted matters. this guy was pretty crucial to the rebels. ali. >> he's krubl, but, you know, these rebels were not a standing force before all these problems came up. what was his standing? did the guys in his group trust him? >> well, you know, there was a lot of internal rivalry and is with the rebels, particularly in the top echelons. younis was one. the rebels have been divided.

because he was gadhafi's interior minister for a long time and helped him come to power back in 1969 he was also responsible for cracking down on a lot of dissidents in libya. so they just didn't trust him. so it's unclear whether the rebels themselves may have taken him auto. the faction that didn't want him and didn't like him. ali. >> all right. continues to be complicated. what's the latest, zain? i know you're following amy winehouse. her "back in black" is selling out everywhere. it's become the number one in a lot of places. >> yeah. it is sky rocketing. it's just make its way back up to number one. what a lot of people are saying, too, is she laid down some kind of bear bohns tracks as well for a third album she had been working on for a long time, and they may be releasing that too. but back to black, i mean i've been listening to it a lot. a lot of people i know have as well. the words have stuck in my head. yeah, it could be number one.

>> a lot of people saying she was one of the most creative musicians to come auto of great britain in a long time. all right, zain, we'll continue to follow that and other stories. i'll take to you later on. pay one price, jet set all you like. jetblue is rolling out all new travel packages but they're a little more targeted than the older version. they're tailored to businesspeople flying auto of boston and long beach. there are three version ares depending on where you're copping from and where you want to go. it costs 1,300 bucks. if you travel lot to the west coast, check it out. don't steal the hotel towel, by the way. it might be tagged with a small microchip. they're sewing their chips in the linens for you people who steal the hotel linens. up to 20% of hotel lis linens seem to be go missing. you sticky-fingered guests. apparently you're not the biggest concern, by the way

snit's outside laundry services that are responsible for that. so you're off the hook. tequila and driving, not a good combo but we could soon be topping off our gas tanks with a tequila by product. behold the agave plant. they say its environmental impact is way lower than ethanol crops like corn. that's worth a toast or shot. if you're suffering from a migraine, check out our businessman's special. we've got new business guidelines for tylenol that can help save your liver. here is cnn ireporter zet harris. >> american people out there, do not hold this as the top 2%. they pay for the campaigns, they pay for lobbies to push their agenda, and because of that, our

voices aren't heard.

29 minutes after the hour. good morning. it's friday, july 29th. this is your a.m. "wake-up call." i'm ali velshi joining you live from new york. no vote but plenty of white knuckles as time ticks down. august 2nd now just a few days away and house speaker john baner is trying to coax gop holdouts, calling them into his auvgs ordering pizza. some just won't budge. >> i simply cannot raise the debt ceiling if we another going to fundamentally change the way we do business. i just -- i just kept vote for it the way it is.

>> our republican colleagues in the house are playing a game here. speaker boehner has to keep throwing piece after piece after piece of red meat to the hard right lion that seems to be dominating his caucus. it's time he contained the lion, not connell to throw red meat to him, which isn't going to accomplish anything. >> now, speaker boehner must have ordered meatlovers pizza if all of the available house speakers are present and voting. boehner has got to get 216 votes. white house correspondent dan lothian is on the phone right now. dan, what is going on at the white house? they kept saying the vote was going to be last night. then late last night, they pulled the plug. >> well, you know, first of all, i think there is still this level of frustration at the white house because they see yesterday as another lost opportunity because yet another day that passed without there being any progress. having said that, what the white house has been saying now is

that they believe there's still some compromise possible, that the boehner bill and the rebill are not that far apart. bill daley said that he believes there's some ground farce deal for compromise. somewhere in between those two deals. and so i think that's what you're going to be hearing more about today. now that this appears to be having so much trouble, let ee take a look at where their agreement is. the thing that continues to span out is the fact that the white house doesn't support, you know, the two-step process because, you know, they're saying you'll end up negotiating this all over again during the christmas season, a time that's, you know, tough -- would be tough on the overall economy. i think that's what we'll be hearing more of today. let's look between those two bills, find these areas of similarity, and get a deal done. >> all right. dan, we'll continue to follow it with you.

dan lothian. it's going to be a business day and weekend for him. joe johns is also joining us on the line from washington. he's been covering this very closely. let's just look at -- pick up where dan left off. how does boehner get to that magic number of 216 votes, and when are we -- are we likely to see this vote tonight? >> it's everybody's guess, ali. your guess is as good as mine. what we do know is that he's going to meet with the house republicans again and try to drag this thing over the finish line sometime today. from what i've been able to discern, he threw in some sweeteners to try to get the votes close, and one of those was to have more votes on the balanced budget amendment and send them over to the senate in the hopes that that would get some of the people off the fence that he needed actually to vote on his side.

so it may be that they're looking for a few more tweeks just to get the very few votes they apparently need to try to finish this up. the thing that is a little strange obviously to anybody just sitting there watching this is that the senate democrats have said it's dead on arrival, they're going to shoot it down. nonetheless, the way things have always worked up there on the hill is that you have a bill like this, and it sort of serves as a template for something else. and that something else would be an arrangement worked out between reid and mcconnell, and then they take bits and pieces of whatever they can stand from boehner and hopefully do it quickly over the weekend so everybody can go home. but we're a long way from the finish line right now. >> it's going to be a long weekend. we'll all be working together

this weekend. joe, thanks very much. we'll catching you layer on on ""american morning."" stephen colbert goes to the middle of the earth to find out what's up in washington. >> it will ensue and the public will turn en masse against barack obama, and the pea party hobbits could return to middle earth having defeated more bills. >> gandalf is the tea party here. i get comparing the debt crisis to the lord of the ring. they've both got elaborate plots, more characters you than you can keep track of and talking about both of them repels girls. >> let's go to christine romans live. good morning, christine. you know what's weird about the markets this week.

they're not just paying attention to the debt ceiling. i think if investors were only paying attention to the debt ceiling, we'd have had worse markets than we've seen so far. think you're right. we've got futures lower this morning because of what's happening in the house, the failure to vote on the deal late yesterday. we've had five days in a row of stocks down. it does tell you the overriding concern continues to be what in god's name is going on in washington. but we're also watching bonds, currencies and the other managements. again, futures are lower this morning and i wanted to quickly tell you about a report from credit suisse that says, ali, that u.s. stocks could fall 30%. 30% over six months to a year if the u.s. were to default. so worst case scenario, according to credit suisse, a 30% decline if the stock market. that means anybody in congress who's holding onto their ideology to try to make a point will be making a point, of

course, with your 401(k). >> it is ridiculous. it is exactly, exactly right. make your point where it doesn't cost you money but it's going cost america a deal. let's say there isn't a deal. how much money does the treasury department actually have heading into august? >> treasury gets billions of dollar from tax receipts. money is coming in all the time. of course, more money is going out all the time and trying to assess how much cash is on hand, the bipartisan party says there's probably enough cash on hand coming into this period, and there's a lot of checks that go out, of course, in the first week of august, that you could stretch it until august 10th to pay off all of our obligations but there is money coming in -- don't forget, ali, we are the biggest economy in the world. the u.s. economy accounts for 26% of all the global output. we have a lot of money coming in. we have a lot going out. all of this is a day-by-day kind of thing but according to the bipartisan center, we have

enough money in theory probably to pay bills in fug until august 10th. and, of course, as you know, the treasury department continues to say, no, august 2nd is our hard deadline here. we know there's enough for august 2nd. that's the only certainty. >> we shouldn't be talking about this. this should have been settled a long time ago. >> this doesn't repel me. whatever colbert says, this kind of talk doesn't repel me. >> christina romance on "america today" shortly. >> they recommend you only take a maximum of six pill as day instead of eight. you can do major live damage if you take too much a day. the drug inside it is in more than 600 over the counter prescription drugs. be sure to double-check and triple check before taking it. if there is no debt ceiling deal, who gets paid first, a,

social security beneficiaries, b, investors, c, defense vendors. we're going to ask you after this quick break. it is 30 minutes after the hour. all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure high protein. ensure! nutrition in charge! man on tv: two outs with a runner on first base. now the big guy comes up to bat, hitting .342 with 92 rbis and 36 homers. [fans whirring] [ding] announcer: chill raw and prepared foods promptly. one in 6 americans will get sick from food poisoning this year. keep your family safer. check your steps at foodsafety.gov.

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41 minutes after the hour. if there's no debt ceiling, who gets paid first. social security beneficiaries, investors, or defense vendors. the answer is sort of b. it's a tricky question. if those investors aren't paid, that would constitute a default, and, of course, we don't want that. all right. it's 41 minutes after the hour. three things to put on your radar. tropical storm don could reach the texas coast by tonight. suffered from its third worst drought in recorded history. president obama is set to announce new fuel economy standards for cars and trucks today. we're expecting for all vehicles sold in the united states by 2025 to have average 54.5 miles per gallon. >> and we're watching the latest from capitol hill as house

speaker boehner tries to muster enough republican votes to pass his debt ceiling plachblt cnn will bring you extensive coverage later today. let's go around the country with zain verjee from cnn london. right and left can't come together. japan has seen a similar scenario play out. >> yes. japan in the 1990s was going through the exact same situation. it was really awful. the deficit was so high, the real estate bubble burst, and the private sector situation was a total mess. the balance sheets were under water. listen to how a senior economist in japan today watching the situation in the u.s., listen to how he puts it. >> itch's an exact replay of what we went through in japan 10 15r or 15 years ago. >> that's richard coo, the chief

economist speaking this is the exact situation they were facing. they dealt with it very differently, ali. look at some of the video of parliament. people were fight each other. they broke out into fist fights. they even blocked the door of parliament so people could not go in and debate any of the bills on the table. i don't thunk yo you're going to see any of these kinds of pictures either in the house or the senate. it was a difficult situation. what happened in 1997 that they decided to reduce government borrowing, to increase taxes. what happened was japan ended up in six quarters of negative growth during a recession. the whole banking system went into a total meltdown and it's still dealing with the effects of the snag nation. so they're warning the u.s., be careful. >> that is a big deal, pushing us into recession is a big problem. zain, thank you very much. we'll chat with you later. on this day in history back in 1981 i thing you remember this.

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good morning. it's july 29th. this is your a.m. "wake-up call." i'm ali velshi. it's 46 minutes after the hour now. about that vote on thursday, it

didn't happen. congress made a liar out of me. there could be a vote today unless there isn't a vote today. here's the current u.s. debt ceiling. $14.3 trillion. i know that. i also know tuesday's deadline to raise the debt ceiling is right around the corner. if lawmakers don't get a deal deal done, you may be awarded with higher interest rates, tanking dollar or a hit on your 401(k). i'll believe it if i see it. listen to how far republicans, other republicans and democrats are. republican joe walsh and steny hoyer talked to anderson cooper last night. >> even in their own party it's deeply factionalized. angry at their leadership and a party that has divide itself has difficulty working with the president or working with us, and that's unfortunate, and the country is the poorer for it and

the image of america is poorer for it. . don't buy this notion of default. to me that's a false choice. default means you can't service your debt. you can't pay off your debt, anderson. and there's plenty of government revenues to do that. one of the things that's been harmless in this debate is there's been this obsession with august 2nd, august 2nd. we need to get this right. we need a balanced budget amendment. if it takes us a few days more to make sure we get it right, let's do it. >>ing so congressman walsh doesn't sound too worried about this. maybe he hasn't read the latest report about what could happen. this is from credit suisse. it says if the u.s. eventually defaults on its payments stock could fall 30% and the economy could shrink 5%. shrink 5%. every month there's a stalemate 1rks% comes off the u.s. gross domestic product. happy friday. on the upside, credit suisse

says there's a 1% that a default actually plays out. there was a letter sent to the white house and congress says get it done or face, quote, grave consequences. medicare and medicaid pays another huge bill the treasury has to pay out several billion dollars for these programs next week and they represent some of the biggest payments. but what was dus happen if this doesn't happen? the president suggested that august social security checks may not go out. 90% of the seniors depend on it for their income. cnn money points out that social security has an enormous trust fund and that the fund requires the fund and the payroll taxes to be used to pay for those taxes. students who took out or will take out school loans will pay higher interests. they're meeting with federal officials today. it's going to be a major debt

item for them. it's time for our political ticker. let's brick in our washington bure bureau cheevgs sam. we're bringing in big guns today, sam. it's friday. the debt ceiling issue o is on tuesday. what's happening? >> it's absolutely amazing that the last day of july, last weekday in july congress has not acted. we're less than four days away from the united states government completely running outet of money. i mean republicans and democrats in congress should be completely ashamed of themselves. there seems to be no adult left here in washington. in the past, bob dole or howard baker or george mitchell or ronald reagan or tip o'neill found a way to put aside their differences and solve the nation's problems and come to a compromise. that's not happening here in washington and it's frankly humiliating when the rest of the world sees how our politicians are behaving. it's unbelievable.

>> and investors in the rest of the world. explain the politics to me, sam. the white house actually wanted john boehner, republican house leader's plan to pass last night. >> that's exactly right. they need a bill to go to the senate to begin the conversation. they also need a partner at the end of the day and they need john baner to have enough strength, support to be a -- have a seat at the table as the conversation begins between what the senate passes ultimately, which will be the rebill or modification of john boehner's bill. and they need -- the white house needs john boehner to be part of the conversation. they need it to go back to the house and they need to drive it through and they're going to need john boehner to be a part of it. ali, there are going to be big winners this weekend. you know why that are, right? >> the winners? >> yeah. this weekend. >> who are the winners this weekend? >> the pizza delivery guys on capitol hill. it's going to be a long weekend. these guys are going to be

hunkered down, and, of course, we'll be there watching. >> we'll be ordering some of that pizza too. we'll speak with you over the weekend a lot. sam fiest is our washington bureau chief. let's go to alexandra steel. it. >> could be more a blessing than a kufrt. tropical storm don, the first to make u.s. landfall. it will do so overnight tonight. you can see it's picking up speed, moving west-northwest at 13 miles per hour. a lot better organized than it was yesterday. you see the purple area, core of convection, getting quicker and moving swiftly toward texas. it will make landfall tonight into tomorrow morning wlechl see on average about 3 to 5 inches of rain. need about 15 inches of rain. the worst drought they have sign in about a century. 15b inches of rain. we'll see that localized. maybe about 7 inches. quickly moves onshore and dissipates. coastal flooding a possibility.

ali, back to you. >> all right. alexandra, thanks very much. let's take a look at the word of the day. it's default. you need to know exactly what this means to you and your money. that's coming up right after this short break. [ male announcer ] get ready for the left lane. the volkswagen autobahn for all event is back. right now, get a great deal on new volkswagen models, including the cc. and every volkswagen includes scheduled carefree maintenance. that's the power of german engineering. right now lease the volkswagen cc sport for just $289 a month. ♪ visit vwdealer.com today. fiber one. uh, forgot jack's cereal. [ jack ] what's for breakfast? um... try the number one! [ jack ] yeah, this is pretty good. [ male announcer ] half a day's worth of fiber. fiber one. [ jack ] yeah, this is pretty good.

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56 minutes after the hour. now back to the word of the day. default. it's from miriam webster. default is fail your to pay back financial debt. i'm so choked up i can't get over it. if it's not raised and america is not able to pay its bill, they default. ben bernanke and the s&p

consider any failure to mean ety financial on guy ligation a defauchlt gault. you'll be hearing about that in the course of the next three days. here are the things to put on your radar. tropical storm don could reach the texas coast by tonight. expected to bring heavy rainfall to date. president obama is expected to nay nouns new fuel economy standards for cars and trucks today. calls for all vehicles sold in 2025 to average 54.5 miles per gallon. >> and we're watching as house speaker john boehner tries to get enough votes to pass his plachblt. john mccain called tea party lawmakers hobbits and told them go back to middle earth. stephen colbert takes it to a new level. >> four days and these clouns in washington are using the "lord

of the rings" to say john mccain is soren? that is ridiculous. is clearly saurman. there he is. he's in league. he's in league with soran back here. okay. he's actually obama, okay? and the hobbits -- the hobbits aren't the tea party. the hobbits are canter and boehner, okay? and let's say lieberman just on appearances. and gandolph is the tea party right here. you shall not pass legislation raising the debt ceiling! all right. let's go to carter evans for a look at your money this morn. he's not going to use dolls and, you know, representations. you're going to tell us what's really happening in the nasdaq

site. good morning, carter. >> i tell you that makes a lot more sense than what's going on in washington right now, sadly enough. our futures this morning on debt ceiling concerns are lower. we do have a big report to focus on today other than the debt ceiling. our first estimate on second quarter gross domestic product, economists are expecting to soo only 1.7% growth. we're also going to get a report on consumer sentiment. as you know, ali, we need to see at least 3% growth to see significant gang gains in the economy. earnings, just a handful of them today. as for what's on cnnmoney.com today, i want you to take a look at this. debt debate day shah schu. i think you said that earlier, ali. one concerning thing, though, a lot of companies right now are quietly withdrawing cash. the debt markets roiled with banks and others with $37 million from investment funds it