that would leave thousands out of work and result in $1.2 billion of last revenue. and this at a time when they're talking about trying to save money in washington. >> did you say billion? $1.2 billion. >> yep. . >> much more on this story and much more in washington coming up. eight years after one of the saddest days for the u.s. space shuttle program, a sobering reminder of the space shuttle columbia disaster. we're going to show you where the debris from the doomed space shuttle has been found. and millions of somalia's children could face starvation from a punishing drought. we'll tell you ho the united states is trying to make sure terrorists don't keep them from food. also get a free flight.

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>> another united states is trying to make sure food reaches people in somalia even though an al qaeda-linked group is standing in the way. lisa what's going on? >> well, as a disaster and famine grips parts of somalia, the u.s. is reassuring aid groups that i will not be prosecuted for distributing relief if it falls into the hands of al qaeda-linked milita militants. it is believed that the militant group al shabaab has been diverting supplies and demanding money before it will allow the aid to reach those who need it most. u.s. officials say right now their number one goal is to save lives. and the white house wants to limit the sale of ammonium nitrate. the explosive substance was used in the bomb that gutted the murray federal building in oklahoma city back in 1995. and reportedly also in the deadly bomb that tore through central oslo norway a few weeks ago. proposed rules would require anyone who buys at least 25 pounds of the material to register with the federal government.

right now, no watches or warnings towards new england. the tropical storm is expected to gain strength and speed for the next few days. haiti's government is on alert for possible dangerous flooding and mud slides. wolf? >> thank very much. we'll check back with you. let's hope for the best on that front. the budget ax is falling and americans are about to pay the price. education, highway construction, food inspections, a lot more. they are all targeted in the newly signed debt deal. and if the debt deal didn't calm the financial markets, what will. i'll talk about today's plunge and what will happen for tomorrow. cnn's richard quest is standing by live. [ male announcer ] 95% of all americans

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will the president and congress pay the price with voters for the lengthny debt ceiling battle? we'll have the first national poll on where americans are, what they are saying. stand by. and congresswoman gabrielle giffords received a stand ovation when she cast her vote on the debt deal. what cease she planning for the future? new details on the daring raid to capture and kill osama bin laden. stay with us. you're in "the situation room." stock prices are tanking for the eighth straight day. even though the danger of the united states defaulting on its debt has now been lifted at least until the beginning part of 2013. richard quest came here all the way from london to join us. a lot of people are shocked.

they thought for a few days the removal of the threat to the u.s. economy would give wall street a badly needed boost. >> i told you the relief rally was an inch thick and a mile wide. and today it went down the plug hole. and the reasons were not just about u.s. debt, u.s. economic growth, manufacturing numbers, the terrible consumer confidence numbers. the consumer numbers here and at home in the u.s. italy and spain, bond yields, both rose dangerously over 6%. those countries are now under attack in the bond markets. we saw gold at record prices again. the swiss franc is at record. you're seeing a flight to quality. and in that environment, what you've seen is the dow also -- or the u.s. markets also get clobbered. >> eight straight days in a row. i thought there would be a little bump as a result of thf deal. didn't happen. so is this just the beginning. >> volatility. i'm not going to say -- the dow is still up for the year.

we've lost about 5%, 4.5% since july 21. still up for the year, but the hallmark, particularly here in the u.s., as you've got the super committee getting under way with all those implications, the hallmark is going to be a volatile autumn. september and october will be very rocky. >> even as we're paying, at least on this side of the atlantic so much attention to what's happening to the american economy, we should also be paying some attention to what's happening in europe, not just in greece, but in italy and spain, because the spillover effect here could be enormous. >> what happened today in europe was dangerous. we thought it was contained with the last euro deal by the commission to bail out greece for the second time. we thought portugal was to one side and ireland was to one side. but now it looks as if spain and italy are in the market's guns. now, those two economies, they can't be bailed out as easily as ireland or portugal. keep a look on the southern

european countries and watch what happens there. >> i've been getting some e-mails. some investors, people who really know what's going on. and they say exactly what you just said. spain and italy. >> as important as greece might be, ireland, spain and italy, that's a whole different ball game. . >> and italy's debt is over 120% of gdp. if it stays over 6%, that i ear going to have to refinance and -- i mean, they need a bailout. then we're in a very different game. >> appreciate you janing us. thank you very much. meanwhile, new photos of the behind the scenes talks that prevented the united states at least for now from an historic default on its debt. we're learning more about who with will feel the pinch from the bill to raise the debt limit and cut spending. the bill signed into law by the president today over at the white house. lisa sylvester is joining us now with more on this part of the story. lisa? >> $2.1 trillion in cuts, and the first wave of that actually

starts in fiscal year 2012. congressional approach aye tors are going to have to take out their red pens and decide how to cut billions from the budget. the debt ceiling deal swings a big ax up front that grows even bigger over time. starting next year, $25 billion will be cut from discretionary spendinging. the government's day to day operating budget. the cuts grow larger until 2021, reducing the deficit by $917 billion. so who will likely be impacted? at the top of the list, federal workers who are already operating under a two-year pay freeze. john gauge, the president of the american federation of government employees is anticipating layoffs. >> this is pretty drastic stuff. and i don't think the agency can simply, you know, these cuts for them to be enacted have had a huge implications for the agencies. and they can't be -- they can't be met by freezing travel or

training. you know, this is really to the bone stuff in getting rid of thousands of federal emt ployees. >> government services will likely be scaled back. everything from food inspections to hurricane tracking, highway construction, education programs for children, air krafk contrtr control, border security, law enforcement and health research will all be on the table for slashing. >> there's a bunch of program that fall into this category of nondefense discretionary sfending which fall under this first installment of the deal. >> the bill, only about 70 pages long does not spell out many specific cuts. that's largely being left up to congressional approach aye tors. -- approapriate tors. >> congress needs to decide which programs get how much. so it's completely unknown who gets how much. we're kind of in a situation where anything is possible.

>> but there are programs that are safe. social security and medicare will not see any cuts in the first go-round. and the pell grant program will actually see a $17 billion increase over the next two years. but to pay for that increase in pell grants, the government is eliminating subsidized loans for graduate students. that takes effect in july of next year. >> and this is only the first wave of cuts that we're going to see. a bipartisan supercommittee of republicans and democrats have been tasked with finding even more places to cut another $1.5 trillion. wolf? >> there's going to be real pain in all these cuts. no doubt about that, lisa. thank you. the republican presidential front-runner at least for now stands accused of being johnn johnny-come-lately in the whole debt debate. and what's next for gabrielle giffords after her surprise appearance on the house floor last night.

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the ugly price over the fight to raise the nation's debt limit is costing the republican presidential front-runner right now within his own party right now. >> that's right. his critics are starting to milk the issue, you might say. with a few exception, the gop presidential candidates haven't said much about each other during this campaign, but what is starting to change is the debt ceiling debate. just ask mitt romney. it was just hours before the voting began. republican presidential vote runner mitt romney finally put out a statement saying i personally cannot support this deal. he was one of the last gop contenders to do so. the conservative daily collar pounced, posting this milk carton on its website, showing mitt romney on a milk carton saying missing leadership.

>> to dodge the debate or to wait until the debate is over and then to take a side, i don't consider that to be leadership. >> the answer for the country is for the president to agree to cut federal spending to cap federal spending and to put in place a balanced budget amendment. and that is the answer for the debt limit. >> the romney camp has said his position has always been clear. cut, cap and balance. >> we need to cut, cap and balance the deficit. >> i will not vote to increase the debt ceiling. >> but contrast that with another gop contender, michele bachmann. politico quipped, the front-runner might as well be in the witness protection program. note the latest poll in pennsylvania, a democratic firewall state where romney is

beating president obama. >> washington, d.c. right now is like political quick sand to 2012 presidential candidates. if you get involved it's going to be hard to get outside of it. >> what this president has done as slowed the economy. he didn't create the recession, but he made it worse and longer. >> only to contradict himself a few days later. >> i didn't say the economy was worse. i said it hasn't turned around. >> we disagree on a lot of issues, but i agree, you are the candidate of change. >> gop named robert bourque to a judicial review panel for his campaign and the gop contender is ramping up his campaign in the months ahead with a slew of events in new hampshire and iowa where voters will have plenty of

chances to pin him down, wolf? >> we repeatedly invited him in the situation room. president obama says he's to can youing now on jobs. is it too late for mills of americans with no paycheck in sight? we're also learning about a crucial moment in the raid to capture and kill osama bin laden. we're going to tell you about the split second decision that changed the course of history. [ male announcer ] this...is the network -- a network of possibilities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more americans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites...

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>> joining us the republican strategist alex costionos. there you see the white house, the president and john boehner,

the speaker of the house. i think they developed sort of a good relationship during the course of these tough negotiations. boehner yesterday announced this in explaining why he thought it was a good deal when all was said and done. let me play it for you guys. >> you look at the deal, i got 98% of what i wanted. i'm pretty happy. >> all right, 98%. not much of a compromise. if the president only got 2%. >> well, you talk to a lot of progressives and liberals out there, they would probably agree with john boehner that he got 98%. progressi ivives really wanted see revenues. >> tax increases? >> or loophole closings. the president protected medicare, medicaid and social security. >> at least for now. >> which is a big deal. i think he's going to hang his head on that.

>> why do so many conservative republicans hate this deal if the speaker of the house of representatives said he got 98% of what he wanted? >> because a lot of republicans are concerned that the debt ceiling was a problem but the actual debt was a real crisis and they wanted to make a bigger impact on that. >> why didn't they realize if you let the debt ceiling collapse and if there's a default, then you're going to have a bigger debt problem. the interest rate will go up, value of the dollar will go down, unemployment will go up. there's going to be a lot more spending, if you will. >> they did realize that. but why would you say drive a car 100 miles shutdown the highway endangering yourself. only if there's a bigger problem. your child is sick in the car. you have to get them into the hospital. the republicans think the long-term debt structure is going to devastate us all. this is a way to put pressure on obama and the democrats to cut

spending. guess what? >> they did secure the agenda, if you will. they got the president of the united states to walk away. even as recently as a week ago monday, he was saying there had to be some, quote, revenue, meaning tax reform. >> the republicans are good adding more conditions to the deal. >> they played their hand well. >> i've got to admit pip. >> do you think they're better negotiators? >> the figured out a spot to get the president into the corner. the problem is the american people haven't come out very well. 53% of americans think the economy and jobs are the number one issue. and we have yet to see a jobs bill out of the republican house. we have yet to see economic stimulus package, some kind of economic package that would boost the economy out of the republican house and a lot of people are waiting to see that. >> the president spoke about that. he immediately pivoted at the white house when he went out in the rose garden to speak right after the bill passed the united states senate.

he immediately focused attention on what everyone could do to create some job ps .. >> we've got to do everything in our power to grew this economy and put america back to work. that's what i intend to do and i'm looking to working with congress to make it happen. >> and he outlined seven or eight specific steps that he thought could be taken relatively quickly to put people back to work. . >> nice for the president to show up on that. >> ten minutes after the last war was over, he started a new one. a war on upper earners, corporate america. americans are sitting on piles of cash. why? they don't know how much he's going to raise taxes or how much his health plan is going to cost. and what does barack obama do today? he looks them in the eye and says buddy, you b