money because i'm coming after you. >> american businesses want demand from consumers. they want people out there buying products. i tell you, if a company had more demand for their product, which means more people have jobs, people are using the income from those jobs to go out and buy thing, they wouldn't be worried as much about taxes and these other issues. if they have demand, they will sell. >> the president said he wanted another one-year extension of the tax cut, a payroll tax cut for middle class families. that's not a tax increase. that's another extension of a tax cut. >> he's still talking about millionaires and billionaires. he's still talking about taking the most successful people in the economy and pretending they're the enemy. >> how are they participating? >> they're paying the best part of taxes. ronald reagan cut taxes on the rich. the share of federal taxes they were paying went up. john f. kennedy cut taxes on the rich. the share of taxes they paid went up. that's the way -- george bush by the way cut taxes on the rich.

and after the bush tax cut, we had 52 straight months of economic growth. government revenues increased and the share the rich paid -- >> then everything collapsed under the lower tax rates. >> we had eight years of growth. >> and we bailed out the banks and they gave themselves bonuses. we bailed out the auto industry and they're making money again. in the economic recovery. that's what the american people want. i think the republicans are in a bad spot trying to defend. >> the issues will be jobs, jobs, jobs. >> how to create the jobs. >> it was remarkable to see gabrielle giffords looking so good about seven months after taking a bullet to the head. can she return as an active member of the united states congress. she voted last night. stand by. the unrest in syria takes an awful turn for the worse as the holy month begins.

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handle more than 165 billion letters and packages a year. that's about 34 million pounds of mail every day. ever wonder what this costs you as a taxpayer? millions? tens of millions? hundreds of millions? not a single cent. the united states postal service doesn't run on your tax dollars. it's funded solely by stamps and postage. brought to you by the men and women of the american postal worker's union. 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.

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what will stop the madness. we keep thinking al qaeda is the enemy and now they slipped into the number two spot. the real enemy is washington and the terrorists are the ones we elected to mind the best interest of the country and only pay attention to their political aspirations. our trust is broken. brian in san diego said the only thing that stops the madness is the voters. the only way to move past the era of partisan deadlock is to elect more moderate representatives who are willing to work. there now cowboys left in congress. tony in kansas said i'm wondering if the madness hasn't been around since the first time. it's just that we have more access to it now thanks to you guy and it is social media available. ron in nebraska writes term limits are a good start. i think three terms are more than enough. term in office and two terms in

prison for all the wrong done in the first term. that should be retro active and should start now. dennis in florida writes thomas jefferson said we should have a revolution and start over with a new government. we are about 10 revolutions behind schedule. brian in colorado springs, the madness will never stop. please, sir, may i have some more? go to my blog to read more. you will find a lot of madness there. until the beginning of 2013, the fear of default, at least that has gone away. at least we don't have to worry about that. >> well, let's wait and see what the commission comes up with. we don't know what's going to come out of their bag of tricks. >> no idea who will be on that committee and no idea what they will do. they may not be able to do

anything given the different stance that republican condition servatives had that liberal democrats have. they may not be able to do anything. there will be across the board almost cuts in defense spending and nondefense spending which will be painful, but necessary. we will get back to you and i want to move on right now. an important story we are following. united nations said the world is watching. what's happening in syria is the regime brutally suppresses unrest. the images you are about to see are extremely graphic. this day brought dozens of deaths in the syrian city of hama. we are following developments in syria from beirut, lebanon. >> reporter: disturbing video on you tube could be signalling yet another dangerous turn of events in the up rising in syria. they continue to bear the brunt

of the military track down in hama. >> luck you. you have gone to join the father over her deadson'sed about. her husband killed according it a voice on the clip. >> they are firing at homes and helps and mosques. part of a crack down that began on sunday. a warning that the regime will not hesitate to spill blood. even during ramadan in the bid to rest. forcing residents to set up makeshift barricades and defend themselves however they can. they offer a different narrative. the anchorwoman presents a clip that the armed are responsible for the destruction.

they show men whose faces are concealed, firing weapons and the target is unclear. cnn is currently not being allowed back into syria. we cannot independently verify the videos or either account of what is happening inside, but what is undisputable is that the situation in syria is growing more brutal and complex. it illustrates that brutality. it claims the video shows thugs, kurgs as they throw dead bodies off the bridge. syrian aired the same clip, butt banner states it was armed gangs, tossing the bodies of murdered security personnel. one activist questioned the video's authenticity. >> it has been right for a while. it hasn't been running for a while.

who is behind it and who is really the people who are dumping the people in various places. >> another activist said he was 100% confident that the video is authentic. this was the river and that the dead are syrian intelligence killed by a local syrian fundamentalist group that fought in iraq and takes pride in showing such images. he adds, they are not at all representative of the demonstrators. despite the different narratives, an indication perhaps that the situation in syria could be spiraling dangerously out of everyone's control. the activists we spoke to said if in fact it does turn out that it was the small element responsible for the atrocious images, the responsibility would lie with the demonstrators to create a general awareness about

the existence of these types of groups. then he said they should take out to the streets and even greater number, not just a call for the downfall, but also with a unified voice to condemn the violence and make it clear that this is not the type of syria that they are looking for. wolf? >> thank you. to our viewers, you are in "the situation room" happening now. president obama signs the last minute compromise deal that lets the united states pay bills and avoid a devastating default. lawmakers approved the measure after weeks of bitter fighting. more battles lie ahead. the night the navy s.e.a.l.s got osama bin laden, a riveting new report has second by second details on the operation to kill the al qaeda leader. seven months after she was shot in the head, gabrielle giffords makes a dramatic return to the

house floor. we want to welcome viewers in the united states and around the world. breaking news. headlines and jeannie moos all straight ahead. you are in "the situation room." >> this is cnn breaking news. >> we have major breaking news right now. moody's investor services just came out with an outlook on the united states government even though moody's said it will retain the aaa credit ready rating for the united states, there is a negative outlook long-term. wall street worries about all of this. the weak economy took stocks on another breathtaking plunge. the major indeces were down more than 2%. let's go to new york right now. she is watching what's going on. moody's came out with this report only minutes ago. explain exactly what they are saying. it's really significant. >> they are confirming the u.s.'s aaa credit rating.

it is placing the u.s. credit rating and the outlook on negative. think of it as probation. they want to see what the committee does later in the year and gives stipulations as to what would make it decide whether it would put the rating under review again. this is pretty much buyy ing time. that's good news. we got good news from fitch earlier today. they made a decision holding the u.s. credit rating at aaa as well and saying it still has issues to work out, but saying this as well. we have our eye on what standard and poor's is saying. they have been the most vocal and this would be a big deal if one of the agencies downgrades the u.s. credit rating from aaa to a notch lower. you would be worrying about the government borrowing costs and business borrowing costs and consumers as well. you want to keep an eye on this and really keep an eye on the discussions going on in washington. that's what the ratings agencies are going to be looking at,

wolf. >> do we have an idea when standard and poor's will issue their report. two out of three saying the us will maintain their rating. they have concerns down the road, but at least the united states for now maintains the aaa rating. what about s&p? >> it's anyone's guess. they can only help things along. it's a question of whether the cuts are of what s&p was looking for. obviously that didn't make it. so it is questionable as to what s&p will do. >> what will happen on wall street and the stock markets going on an eighth straight day of significant loss. even though the president signed this agreement into law. >> that's because wall street has moved beyond this debt ceiling stalemate already and refocussed on the slow growth of this recovery. really the focus was in the past few sessions and the past three

sessions, we got three bleak reports. the final that sent stocks into a stale spin was spending. it fell for the first time in two years and this report showed that americans are saving more. what this shows is that they are saving more because americans really don't know where the economy is headed. you add this report to yesterday's manufacturing report which showed almost no movement in manufacturing last month and then you add to it the gdp report that shows anemic growth in the first quarter and second quarter. >> we will wait for the jobs report 8:30 a.m. here eastern. we'll see what that report said. thanks very much. the united states narrowly averted a disaster with president obama signed into law a compromise bill raising the nation's debt ceiling. the senate approved a deal seven hours before a deadline that would have thrown the government

into an unprecedented default. after weeks of bitter feuding, the deal let them pay bills in exchange for more than $2 trillion in spending cuts over the next decade. this is just the beginning. the president compromised an important first step for ensuring that the nation lives within its means. jessica is here watching the story for us. the president came into the area. he came in and spoke. he was frustrated. >> he did sound frustrated. it's done, but he sounded frustrated that government is so gridlocked that it took weeks of battle to do something as routine as paying the nation's bills. it poses the question of how will the nation move forward and move on to something that is paramount in his mound and for washington which is move on to this jobs agenda. for the president, his priority is investing in things like infrastructure. republicans want to cut spending

further. cut entitlement programs. the priorities do not lineup. how do you move forward when they have different priorities and when there is so much acrimony that compromise is this hard. listen to the president. >> we have seen that washington has the ability to focus when there is a timer ticking down and when there is a looming disaster. it shouldn't take the risk of default, the risk of economic catastrophe to get folks in the town to work and do their jobs. there is a quiet crisis in the lives of a lot of families and communities all across the country. they are looking for work and they have been for a while. they are making do with fewer hours or fewer customers. or they are trying to make ends meet. that ought to compel washington to cooperate. that ought to compel washington to compromise and ought to compel washington to act.

>> keep in mind the jobs report is coming out friday. plenty of concern it won't be a pretty picture. >> i am worried like so many other people. who is taking the heat for what just occurred? >> so most -- we have done this poll and most americans do not approve of the debt ceiling agreement. the numbers show 44% of americans approve and 52% disapprove. not shocking, spending more money is never popular by the government especially in a time when people want smaller government, but who owns it the most? republicans take most of the blame by 43%. the minority is 43% for republicans. the president and democrats 34% and both so all to blame about 20% of americans say they blame both sides. no one comes out smelling like roses. everybody has a lot of naming to do after this. >> what are about the president?

>> he comes out the least worst. who do you approve of handling of the debt ceiling negotiations, president obama 46% approve of his handling, congressional democrats 35% and republicans 30%. pretty bad numbers for everybody. all pears are going to be happy to put this in the rear view mirror. >> i want gloria to walk in. i want to bring you into this conversation. it sounds to me based on what we are hearing this so-called super committee, we will be back here in november. you ready to set the table for thanksgiving dinner here in you have a deadline of right before thanksgiving, the 23rd. this is a committee that not everyone is sure is actually going to come to some resolution. why would this committee be able to do what no other committee before has been able to do? i'm going to answer my own

question. the white house believes and senator reid believes with a sledge hammer hanging over them, they might be able to get the job done. then we have to see of course what congress does. >> this committee will have important work to do. >> that are will be christmas. >> mitch mcconnell will name the three republican senators who will be on this committee. harry reid will name the three and boehner and pelosi will name the three with the republicans. mcconnell spoke to john king a little while ago. we want to play a clip. listen to this. >> my view is, my party controls one house of congress. the senate is the lesser senate and the president is a liberal big spender. we wanted to get as much as we could out of this congress and this president without raising taxes. we did that. it's just the first step. we set a new template.

getting cleaned up is over. the next president, whatever that is in early 2013 is likely to be asking us to raise the debt ceiling again. it will generate the same discussion and we will go after additional reduction when that request is made. >> he is looking ahead to 2013. it's a win for the president in the sense that boehner wanted this to be replayed next february or march. >> right and the white house said we got that. they believe if this debate is mid out again, they will have the better side of the argument. they believe that the public wants balance. they can take that case to the american people. if you are cutting entitlements, why not raise taxes on the wealthy. the republicans think they got the better side. >> the president will celebrate and go to chicago for his 50th birthday party. >> he not had 50 on his mind, but he does get to think about it and he has two fund-raisers

and get to put this behind. >> your birthday becomes an opportunity to raise money. >> i will be one of the first to say happy birthday, mr. president. >> not sing it? >> no. jack cafferty is here. >> the saying is when america sneezes, the rest of the world catches a coal. that's why the ripple effect reached far beyond our borders. the world has been watching and worrying as congress carried on like children the past few weeks, threatening to send the u.s. into default. a piece suggested the debate was "the most disturbing sign to date that a global economic system that hinges on the united states is a system waiting to crash." the number of experts, a growing number suggested a time to come up with an alternative to the dollar and frsh treasuries in the market place. one of the first signs that the

leadership was unraveling came with the melt down of 2008. since then the situation has only become more dire. russia's prime minister, vladimir putin accusing the u.s. of living beyond its means like a parasite on the global economy. he said if there is a systemic malfunction here in the united states, it will affect everyone is he is right about that. it's no surprise everyone from saudi arabia to china and canada questioned the antics in washington surrounding the debt ceiling and well they should. president obama has now signed the debt bill into law, raising the borrowing limit, there jitters in international markets that theus rating could be downgraded. you heard one of the rating agencies putting us on the negative watch so that was reported a few minutes ago. for countries that hold billions or trillions in treasuries, the news is troubling to say the least. is u.s. economic leadership that

has been unquestioned for more than a century at an end? post a comment on our blog. if it's not, it's getting very close. >> we are being seen around the world. we have reaction from people not only here, but around the world. thank you. bipartisan surprise and emotion as the wounded american congresswoman gabrielle giffords returns to the house of representatives. >> it's -- any time you see her is a beautiful thing, but on the floor of the house surrounded by republicans and democrats and bringing people as she does here at home and nationally. we are so proud of her. >> what is her appearance reveal about her recovery? i will ask our chief medical correspondent sanjay gupta. details of the raid that killed osama bin laden. what happened in the final seconds when navy s.e.a.l.s burst into his room? a lawmaker usually loyal to

president obama votes no on the debt ceiling deal. bernie sanders is here and voicing his deep frustration and anger. >> i do believe that the president should be held accountable. when you say something in a campaign and you don't do what you say you would do, it's fair to raise those issues.

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>>. >> the debt ceiling compromise was too bitter to follow. among the critics on the left, there was a sense president obama caved in when it came to hammering out a deal. joining us now -- why did you died sdooid to do what most didn't do? you voted against the legislation. what was wrong? >> it's an extremely unfair piece of legislation. the wealthiest people are becoming much richer and in many cases paying a very low effective tax rate. corporations are making billions

and not paying in some cases a nickel in taxes and what this legislation does is deficit reduction on the backs of the elderly and the sick and the children and some of the most vulnerable people in our country. it is extremely unfair. >> the white house makes the point that those issues that you raised will be subject to negotiation in this super committee that will be created and there will be recommendations down the road. the president did not have a choice to avoid default. he had to accept this deal? >> no one has to accept anything and a better program should be negotiated. what we are looking at is massive cuts in education, head start, child care, environmental protection, affordable housing and police protection and fire protection. you name the issue, they are going to be massive cuts that impact on working people and the fact is we will also lose about several hundred thousa