live from studio 7, i'm fredericka whitfield. let's get you up to speed for this thursday, the 18th of august. breaking news, stock stock market investors jumped back on that roller coaster today. and it has been a steep downhill ride all morning long on wall street. you see the dow down more than 400 points right now. cnn's alison kosik and cnn money.com paul is joining me. alison, you first. how big are these losses and what brought on this huge sell-off, anyway?

>> hey, fredericka. the losses are holding steady. the dow down about 436 points. they're off their lows of this session where we saw the dow down as much as 500 points. this is coming after morgan stanley kind of set off an alarm bell saying that the u.s. and europe are looking like they're getting close to going into a recession. morgan stanley also downgrading its growth forecast globally for this year and next. also not helping we got a bunch of economic reports here in the u.s. one on jobless claims showing a rise in jobless claims, the jobs area something that this economy really wants and needs at this point and not seeing. we also got a very weak regional manufacturing report showing contraction and a weak housing report showing sales declined about 3.5%. see what you do when you olympic all that together you get a big sell-off and that is what we're seeing right now. frederic fredericka? >> that as it looks for the dow. let's check out what the nasdaq issing looking out right now. paul, assistant managinged or

for cnnmoney.com. is this consistent across the board? >> yeah, the entire market is down. there really aren't any stocks that are bucking this bearish trend today. as alison mentioned, the fears about europe combined with more weak economic data in the u.s. and that's the recipe for a big plunge, especially after the volatility last week. >> the fear gauge is up, 40% last hour. how much is fear dictating these markets really completely? >> it's hard to say if it's really fear. you know, this still seems maybe being naive, i hope not, but still seems a little bit different from 2008 when everyone was worried about the i'm mebt collapse of major financial institutions. i don't think we're dl yet. i hope we don't get there. i think right now it's really more a case of a lot of people wondering when these problems -- some of them can be solved. we're just wait for actual solutions. europe, the leaders, have not done much to inspire confidence

in, you know, the european economy. it's pretty similar to what's happened with the debt ceiling debate a few weeks ago in the u.s. i think a lot of this is politically driven more than economically driven. >> we're going check in with carter evans now at the nasdaq. carter, it was you earlier reporting on this fear level being particularly high. how does the nasdaq look right now, as well? >> okay. well, the nasdaq, let me show you, the nasdaq composite, intraday chart. it's falling significantly right at the opening bell. currently down 4 1/2%. the nasdaq has lost the most of all the major indices right now. i think the main page of cnnmoney.com says it all together. walloped. look at that drop. look at what we're seeing right now. come back out here and i can show you this is the vix. it's volatility index. commonly known around wall street as the fear gauge. it is up almost 30% today. and if you take a look, fredericka, at the ten most

active spots by volume on the nasdaq 100 right now you see a lot of them are tech companies here. these are companies that rely on people like us and businesses to buy stuff. and all of that, especially with the numbers that came in today, is in question. so the question for investors is, how do you price these companies now if it looks like consumers and businesses could pull back on their buying even further? >> carter, thanks so much. we're going to go overseas. richard quest joining us from london. richard, as you get -- fix it right there. i'm wondering, is it the case where people are kind of blaming it on morgan stanley for its dismal economic outlook for the global economy? >> well, obviously since we are five hours in london ahead of you on the eastern coast, the morgan stanley report certainly gave the kick to the day. the jobless claims numbers in the u.s., the philly survey, that all added to the negative

feedback loop of the market that you have been seeing for the past few hours. and what we are seeing at the moment through those german numbers, the german market up 5%, similar number for paris, london, slightly less. i think what you have to bear in mind is that it is -- this hasn't happened overnight. this has been obviously we've had the volatility for the last two weeks. we come into this week with people feeling that things are not going well. you get these bad pieces of economic news, not dramatic, not drastic, but they re-enforce the view, they destroy consumer confidence, and ultimately that's what we are seeing now. so each time we have days like this, and kyra, this is really the problem. each time we have days like this, it actually increases the chance of that double dip recession because, basically, you and i and everybody else, we simply stopped spending because

we're too frightened. >> you're underscoring it right now, this ripple effect. but you have to wonder, you know, when you try to get to the beginning of that ripple is that the u.s. economy, is it the european markets, what is at the core of this ripple effect? >> it's both, absolutely both. this comes on first. this comes on second. and they go backwards and forwards like a tennis game, throwing the ball from one side to the other. constantly re-enforcing the bad news. now, when does it come to an end? it comes to an end on two occasions. when stocks are so cheap that people buy anyway, like fruit and venlg in the market that you buy to make soup. someone will always buy when it gets keep enough. or when policymakers actually start doing something. we know that works because it happened with the european central bank. it happened with the fed, if you remember, just a couple of weeks ago. it does work, but at the moment the options are few and far between and policymakers seem to

be -- seem to be -- somewhat paralyzed as to what to do next. >> richard quest, thanks so much. we'll check back with you and other members of our money team throughout the morning as we continue to watch the markets. other stories. the u.s. justice department won't comment on a report that credit ratings agency standard & poor's is under federal investigation. t"the new york times" says they are we viewing s&p's aaa rating for those bungled mortgage securities that fueled the 2008 financial melt down. the "times" says the investigation began well before s&p cut the government's credit rating. militants launched multiple attacks in israel today near the border with egypt. at least six israelis were killed when attackers hit a commuter bus, a car, and israeli soldiers on patrol in the area. the attacks wounded dozens of people. israel says its soldiers killed seven militants. prime minister spokesman said it came from gaza. defense officials pledged israel

would strike back. the united states broke with syria's leader today when president obama calling on bashb bashar al-assad to stand aside. the regime has been carrying out a brutal city-by-city crack down on government opponents. hillary clinton announced new sanctions. >> we will stand up for their universal rights and dignity by pressuring the regime and assad personally to get out of the way of this transition. >> by most accounts more than 2500 syrians have been killed since the uprising began in march. >> libyan rebels are digging in outside tripoli. they claim to hold most of half hour's drive from the capital, but government snipers and tanks are still taking potshots once their grip is certain rebels may move on to tripoli which is essentially surrounded.

back in this country, democratic congresswoman maxine waters is knocking president obama on jobs. unemployment among african-americans is near 16% double that of white meshes. waters called on african-american voters to, quote, unleash the congressional black caucus on the president. >> the congressional black caucus likes the president, too. we're supportive of the president. we're getting tired, though. we're getting tired. we want to give them every opportunity, but our people are hurting. the unemployment is unconscionable. we don't know what the strategy is. we don't know why on this trip that he's in the united states now he's not in any black community. we don't know that. >> i'll be talking live with congresswoman waters next hour right here in the newsroom. the university of miami promises to cooperate with an ncaa investigation into hurricane's football former

booster shapiro claims he gave improper gifts to 72 players, including cash, nightclub outings, and even prostitutes. shapiro is now in prison running a multimillion dollar ponzi scheme. a hacker breaks into a website used by san francisco transit system. police posts the home and e-mail addresses of all 2 officers. protesters are angry over recent shootings by b.a.r.t. police. officials blocked cell phone service at some stations to prevent communication between protesters that only aggravated their anger. the fbi says it's taking a threat against david letterman seriously. a jihadist website said letterman should be killed and his tongue cut out. the late show funny man joked about an al qaeda leader killed in pakistan. >> so anyway, they picked a successor to osama bin laden and his name was ilias kashmiri. guess what, he was blown up by an american drone.

yeah. >> and we're also continuing to watch the markets for you, as well. take another look at the dow down 460 points. much of it being driven by fears, say a lot of our analysts. we'll have much more on the markets after this. the eagle flies at dawn. the monkey eats custard. price-line ne-go-ti-a-tor. so, you've been double crossed by other travel sites and now you want to try the real deal. yes, is it true that name your own price... ...got even easier? affirmative. we'll show you other people's winning hotel bids. so i'll know how much to bid... ...and save up to 60% i'm in i know the lady in leather travels on three wheels. wait, is that code? that's my secret weapon... ...naomi pryce see winning hotel bids now at priceline.

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try capzasin-hp. it penetrates deep to block pain signals for hours of relief. capzasin-hp. take the pain out of arthritis. welcome back to the "newsroom." we're watching the markets. cnnmoney.com. we're calling it walloped, global economic fears sending stocks spiraling. it's a war zone, says one trader. the dow down 142 points.

let's find out why, if we can, why the markets are in such turmoil today. alison kosik is watching the numbers at the new york stock exchange. is it the fear factor that's driving stocks down like this? >> the fear factor, fredericka, definitely playing a big role in today's trading. the down is down 445 points. more talk of a recession, this time coming from morgan stanley saying the u.s. and europe are dangerously close to another recession, possibly within the next year. that definitely set markets off. of course, we got a litany of bad economic data on jobless claims showing a jump there on regional manufacturing, showing a contraction. and on home sales show that home sales fell another 3 1/2%. when you lump all of that together, those are the reasons why today at least we are seeing a big sell-off. fredericka? >> let's shift gears for a moment. there's a report today that the justice department is investigating standard & poor's over those mortgage securities that led to the financial melt down. what more can you tell us about that?

>> yeah, when we were in the thick of the financial meltdown, in the recession, a lot of people were wondering, geez, where were the credit agencies? all of these mortgage backed securities were rated, a aa. "the new york times" is reporting they are looking into it. it wants to know if standard & poor's improperly rated these mortgage-backed securities, maybe rating them higher than they should have been. the justice department is not commenting. standard & poor's has not returned our calls. there are some allegations showing there was some dissent in standard & poor's, that some people wanted to see a lower rating on these securities, but managers stopped them. keep in mind that s&p does get paid for its ratings. so then there are also questions about a possible conflict of interest there. >> so is this investigation and retaliati retaliation? i'm sure the question is being asked for it downgrading the s&p downgrading the u.s. credit rating. >> yeah, the timing -- the timing definitely is curious when you sit and think about it

but this investigation that the justice department has under way actually began before the downgrade happened. in fact, the government also sued deutsche bank over similar reasons for their investments in mortgage-backed securities. and we've been hearing about this problem about mortga mortgage-backed securities for a long time and we know the government sometimes acts slowly. what you're seeing is maybe a catch-up here, not necessarily a witch hunt. >> alison kosik, thank you. we will be checking back with you throughout the morning on the markets. appreciate that. here's a chance to talk back now on one of the big stories of the day. the question this morning, are rick perry's treason accusations against the fed out of line? carol costello joins us now from new york. >> it's a good question. isn't it, fredericka? the question today, are rick perry's treason accusations against the fed out of line? i know. the this whole treason thing has been dragging on for days now and it won't tie because his critics won't let it and neither will he. he ain't backing down. he said it would be treasoness

to continue printing money. yesterday he upped to ante. >> they should open their books up. until they do that, i think there will continue to be questions about thart aeir acti and what their true goal is for the united states. >> critics are appalled. that includes some republicans. tony fratto tweeted perry's remarks are unappropriate and unpresidential. although perry has his supporters, too. >> the fundamental points he makes is totally true actually. we are devaluing the currency. it's happening because of the fed's policies and it is benefiting in a short-term way, i think, the white house. >> still, treason? as defined in article iii of the constitution? if you don't have your pocket-size constitution handy. this is what it says. levying war against them, or in adhering to their enemy, giving them aid and comfort, as in

benedict arnold who betrayed america during the revolutionary war. fed chair ben bernanke, the man running the federal reserve, which is basically the central bank for the country, is he conspireing against the united states? so the talk back question today, are rick perry's treason accusations against the fed out of line? facebook.com/carolkr facebook.com/carolcnn. >> thanks so much, carol. we're also keeping a close watch on the markets. you know the dow taking a big beating right now, down 478 points. this not too far after that morgan stanley report offering a dismal report on the global economy. we'll have much more on the markets after this. no, it's just for new people. hey ! chocolate, vanilla or strawberry ? chocolate ! chocolate it is ! yeah, but i'm new, too. umm... he's new... er... than you.

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the markets take a real beating. look at the dow down 472 points, down more than 4%. our carter evans is at the nasdaq. carter, give us an idea on how it looks right there from your vantage point. >> it's really not looking good for the nasdaq. especially look right now, train day chart down 4.7%. a loss of 118 points. the dow currently down 4.2%. so we're kind of holding at the low levels we've been seeing for the last 10 or 15 minutes or so. as far as the most active decliners here on the nasdaq, you're seeing nearly 4% or 5% across the board for some of the biggest tech names in the business. why are these getting hammered so hard? they make a lot of products you and i buy. they make a lot of products that companies buy. if you and i i don't have jobs, if we're afraid to spend our money, if we can't afford them, if companies aren't expanding buying the product, their production future is uncertain.

that's the reason for the decline there. i also wanted to show you the vix. we call it the vix. it's the fear index. it's really the volatility index here. and it's up almost 31% today. that gives you an idea of how much fear is pushing this market today. finally i wanted to show you the ftse 100 in london still trading down almost 5%. this is the dax in germany, down 5.6% right now. so european losses leading the way down today. lots of concerns about banking troubles over there. >> big concerns. carter evans, thanks so much. we're going the continue to watch the markets. meantime other news. new outbreak of deadly violence in the middle east. attackers took aim today in targets in southern israel firing shots at a bus assaulting sold chufrs and firing mortars and an anti-tank missile. israel says the attacks originated in gaza. cnn is live in london. how did these attacks stir things up potentially in the region? >> well, i think the fear is,

fred, that it's going to have an escalating violence. it's been relatively calm in the region. there haven't been a lot of terrorist attacks. i think one of the main concerns not just in israel but in the united states is that as we head towards the end of september, where the palestinians are expected to seek independence of the u.n. that this could mess things up. what you're going to see is an escalation of violence between israelis and palestinians. that dim hope of peace talks is going to be even further than it is right now. fred? >> it's believed that those who opened up fire, the attackers were considered terrorist cells from sinai. what would be the impact if that is indeed the case? >> well, i think there's going to be a lot of questions as to whether there are palestinians cooperating with them. i think you've had this fragile peace between israel and egypt all these years. now that president mubarak which was considered an ally is gone, the military and israelis are

really feeling their way. i think this really makes that fragile peace between israel and egypt even more tenuous. i think that the egyptian military is going to be seeing what israel is going to be doing on that sinai or are they going to be violating egyptian sovereignty? i think there are a lot of concerns about that right now. >> and then what, if anything, can the u.s. say or do as the u.n. gets prepared for a vote next month that could potentially recognize palestinians as a new member? >> well, what they've been trying to do is trying to get the israelis to accept come kind of formula that will get the palestinians back to the table, such as if the palestinians were to accept a jewish state of israel the palestinians would abandon those efforts to seek independence of the u.n., thut pem off. but really it's been difficult for the u.s. to get these israelis and the palestinians to agree to sit at the table. as they move towards the united nations in september, there's a lot of concern that any kind of

hair trigger that this region is on right now could erupt and the palestinians will seek independence. obviously that's not going to give them a state the next day. the concern is there's doing to be a lot of violence in the region. >> secretary of state hillary clinton today earlier talking about syria and now saying the obama administration wants the syrian president to step down. what risks, you know, are u.s. officials even considering at this point by asking him to resign, by being so outspoken on this? >> well, i think in the beginning, in march, when these protests started the real concern was that if assad stepped down there would be a vacuum, there would be chaos in the region and islamic extremism. i think they've calculated that the risk of him staying is even greater than the risk of him leaving. and the more people that are being killed, the u.s. has come to the idea that the devil that you know isn't so much the devil that you don't know. and these brave syrian protesters that are being killed on the streets of syria really

need to be supported and it's not just the united states, you have to remember. you saw these calls today from all european capitals, from the european union, and especially britain, france, germany, canadians. this is being very closely coordinated, fred. the turks are meeting today, their national security council. they've been really growing frustrated with syria. they've considered them an ally and now they're starting to lose patience. and the arabs, as well. so i think this move today by the united states and europe is really going to be followed by a lot more tough diplomatic action around the rest of the world. and i think the united states now feels that the risks of him staying are much more dangerous than the risk of him leaving. >> thank you so much from joining us from london. all right, looking for work and hope for help? the congressional black caucus holds a job fair in atlanta. we'll talk live with one of the job seekers about what she wants congress and the president to do.

we continue to watch the markets take a tumble. the dow down 457 points there. let's check in with our allisis kosik in new york. richard quest will be joining

us, as well, from london. actually let's begin with you, richard. while the markets opened just a short time ago here in the states and they started out strong by going down strong, you're five hours ahead, how are the european markets doing all day long there? >> they seem to have hit something of a plateau, down, of course. 5 1/2, 5 and change percent from the dax. paris market. and the british market, the london market just off slightly less than that. all the markets -- i'm just looking at numbers. we've just been working at. what are the falls from if you like the highest point seen in 2011? it's interesting, the ftse in london is off some 16%. the dow in new york from its highest point this year back in may is off 14%. but it's the german market, how about this for bad territory? it's down 21% since the high point of this year. and traditionally as alison will

remind us, 10% one way or the other is a correction. 20% is a bear market. >> you brought in alison, let's bring her in from new york. what sparked this slide at the onset? as soon as the markets opened it was down. >> you know, this is the kind of market, fredericka, that kind of shoots first and then asks questions later. so when they hear headlines out of morgan stanley that we're getting close to a recession both here and the u.s. -- both here and in europe, that really sparks fear. also with morgan stanley downgrading the growth forecast, not just here in the u.s. but the europe as well, showing we could be getting closer to a global recession. that sparks that knee-jerk reaction as well. the good thus is that we're leveling off the lows of the session. we were down for the dow. the dow was down as much as 500 points. now down 427. you know, this isn't the kind of panic selling that some people may, you know, describe it as.

it's kind of this sort of orderly selling that's going on. we're also seeing a flight to safety, gold is up 1 3/4%. but that fear index, the fear in the market is very prevalent. that fear index is up 30%. one other thing that really, really set the markets off today, was this regional manufacturing survey. it showed a contraction. one analyst who we talked with said this is really a reliable indicator that showed this really stunning movement in this manufacturing index was really just a plunge and it's a good indicator as to what else is going on in the broader manufacturing sector. that really spooked the markets, as well. and this index, by the way, is for the month of august, so it is very recent. that is really also what spooked investors today, fredericka. >> alison, thanks so much. paul la monica is here from cnnmoney.com. worried about the college savings plans, worried about the

jobs outlooks, et cetera. help piece it all together for us. >> yeah, i think longer term, don't do anything with your 401(k). that would really be the absolute wrong thing to do. panic is not something that makes any sense whatsoever. you know, what alison just mentioned about the short term health of the u.s. economy that hits the nail on the head right now. that manufacturing report was not good. and keep in mind it was om a months ago that a lot of people were saying that we had a little bit of weakness in the economy but it would be temporary. a lot of it's was due maybe not japan ate quake in march. with each new number that we get that is not good, it makes it harder to just say, yeah, it was all about the japan earthquake and we're going to shrug this off and second half of the year is going to be great. it's not looking that way anymore. >> if fear is in large part sort of dictating these numbers, what can be said and by whom can say it to try and encourage or kind

offal lay tho al llay the fears? that's going to be difficult. the biggest problem right now that a lot of people i talk to that are invested in the markets is that there is no faith whatsoever in political leaders, in the u.s. or europe regardless of whether or not we are democrat or republican, left-leaning or right-leaning. it's just a real bad kind of circus right now in the u.s. people bickering and not coming up with solutions for the job market. over in europe, it seems that, you know, no one is really taking the debt problems there seriously enough. everyone i speak to says they want a united front from europe instead of all these fractured type of responses. and that, i think, is really the big problem right now. in many respects, companies are sitting on the sidelines and they're saying that they're not going to invest until they see a more certain environment politically and that's both in washington and in europe. >> wow. interesting. paul la monica. we'll call upon you again soon. we'll continue to watch the markets. looking for work and hoping

for help. the congressional black caucus holds a job fair in atlanta. we'll talk live with one of the job seekers about what she wants congress and the president to do. [ male announcer ] they'll see you...before you see them. cops are cracking down on drinking and riding. drive sober, or get pulled over. with less chronic low back pain. imagine living your life with less chronic osteoarthritis pain. imagine you, with less pain. cymbalta can help. cymbalta is a non-narcotic treatment that's fda-approved to manage chronic musculoskeletal pain. one pill a day, every day, can help reduce this pain. tell your doctor right away if your mood worsens, you have unusual changes in mood or behavior or thoughts of suicide. antidepressants can increase these in children, teens, and young adults. cymbalta is not approved for children under 18. people taking maois or thioridazine or with uncontrolled glaucoma should not take cymbalta. taking it with nsaid pain relievers,

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the u.s. markets getting walloped, say traders. the dow down 418 points. we continue to watch. of course, the dismal unemployment crisis does not help matters at all. for many african-americans the numbers paint an even bleaker picture as it pertains to unemployment. according to the u.s. labor department the jobless rates for blacks in the u.s. is almost 16% compared to the overall rate of 9.1%. joh johanna hill has been out of work for a year and a half now. she's at a job fair right here in atlanta, sponsored by the congressional black caucus. thank you for taking the time. i know you would rather be going to all the booths there to try and find a job. so tell us a little bit at your situation. why have you been out of work

for a year and a half? >> well, actually i was asked to leave employment from fulton county, department of family and children services. to date i have yet to receive a reason. that's one of the things, i think, the president, our government, especially maybe at the federal grant or state level should look into. people are being terminated unfairly, with no reason, no explanation, or anything. what they're quoting to us is a right to work state and stating that they can fire you or terminate you or end your employment for whatever reason, and they don't have to give you a reason. so i think that -- that right to work law, what they claim, really should be investigated. i think it's unfair. you don't have a reason to terminate but because you can do so, you can do so. that's why a lot of us are out here, especially in the state of

georgia. >> so while you still don't know why you were terminated, certainly you could have never known that trying to find a job would be this difficult. it's been a year and a half. give me an idea what that job search has been like. what's been happening when you've been reaching out to companies or trying to find employment? >> well, it's been horrendous. it's unbelievable. you -- i have gone all over georgia, at least within the atlanta metro area, looking for employment, any job fairs. it's -- it's incredible. even as we stand here today, i was out here at 6:00 this morning. i basically just got in the building. there's thousands, thousands of people that are unemployed. it's very difficult to find employment. the employers say that they're hiring, but when you show up, they will, you know, explain to you to gone online and complete the application.

you complete the application. i've even literally completed it and took it personally back to the employers and haven't heard anything. no, i don't have a doctorate degree, but i do have enough skills to secure a job. so i don't understand. i think another thing is, there's a lot of -- the unemployment rate that they're quoting, a lot of it is incorrect because they're not quoting the people -- they only are looking at the people receiving unemployment. those people that the unemployment has been exhausted and they're not receiving anything. they're still unemployed but they're not being counted. the true numbers of this unemployment rate is sort of a as far farce to me because it's not true. >> with all the confusion and this frustration, do you feel like there is something that congress can do? do you feel like there's something more that the president can do to help you and so many other millions of americans who are in the same

predicament? >> well, the biggest thing they can do is stop fighting. i mean, at this point, this job thing is affecting all of us. it doesn't matter, white, black, republican, democrat, tea party. i mean, come on, guys. i mean, we're all adults here. i don't understand where all the bickering -- if we can't sit at a table and make a decision. i mean, there's a lot of things that can be done. you can help the employers out. maybe help the employers by funding certain programs to get the people back to work. but all the fighting, no, we're not -- i can't see anything being done. we're going to have to continue to get out here like we do, go to the job fairs, follow up on interviews. that's the only way. unless they're willing, all parties are willing to sit down and talk to try to get some type of decision made. i mean, all the fighting, this is just crazy. >> johanna hill, thank you for your time. all the best to you. wish you the best of luck.

hopefully you're able to nail something down there. any kind of hopeful leads at that job fair being held by the congressional black caucus today here in atlanta for you? >> i'm sorry? >> there r. theare there any po? are you feeling confident about any leads there at the job fair? >> so far, as i said, i waited over four hours to get in here so i just got in. cnn grabbed me. i do have an interview today with the city of east point, so hopefully that will go well. >> all right. we hope so. fingers are crossed for you. joh johanna hill, thanks so much. next hour we're going to talkmaxine waters and about her comment about the president to do more to help out the unemployment situation, particularly as it pertains to the african-american community.o l and some antacids. we're having mexican tonight, so another pill then? unless we eat later, then pill later?

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today's stock market plunge is just another remind ter economy is the number one issue in the presidential campaign. mark preston, part of the best political team on television live from portsmith, new hampshire. what are the candidates saying about economy and the late e. plunge? >> fred, as you said, all eyes are on wall street now trying to figure out what is going on with the markets. it's here on streets such as congress street, ironically enough, here in downtown, where people are talkinging a issue number one, that's the economy. they're talking about jobs. just a few hours ago rick perry the texas governor who just got into the presidential race was here at a cafe talking to voters. he turned to the owner at one point and said, look, this is going to be the issue we're going to be talking about all of

the way through the election. i am going to be president. i have to say that mitt romney was up at a steel plant yesterday. he was doing the same thing. now, mitt romney and the texas governor rick perry, they seem to differ on who would be the best well suited to take care of the economy. but what they do both agree on is that they don't think president obama is the one to do it, fred. >> so what at this point then? what kind of suggestions are any of these candidates giving as it pertains to these dismal reports on the global economy? it's not just the u.s. but the european markets all being effected as well? >> we're not hearing anything, not reacting to anything that's happening in the markets today because it happened so quickly. mitt romney is down for the day. and rick perry is jumping around the state. what he's trying to do is trying to do retail politicking. they're not talking about the macro sense of what is happening in the now. but what they are both saying is that they are both more equipped

to create jobs here in the united states. mitt romney has been very critical since day one since he announced he was running for president of the president's policies. and of course in the past week we've seen the same thing from rick perry. he's been very, very harsh regarding president obama's policies. so we will continue to hear this over the days and weeks to come. and certainly this will be the number one issue heading into november of 2012, fred. >> all right. no doubt. mark preston, thanks so much. for the latest political news you know where to go, cnnpolitics.com. a lot of folks would agree family is important. straight ahead we'll tell you why family is really important when it comes to your heart. [ male announcer ] it's a fact:

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we're keeping a close watch on the markets. the dow still plunging. the markets are getting wall upped, and it's not just the u.s. but the global economy taking a hit as well. carol costello joins us with your responses to the "talk back" question. >> the "talk back" question today are rick perry's treason accusations out of line against the fed? this from tom, i think people who don't fully understand it should hold their tongue. and then one says this, this is from sergio, they are definitely out of line regardless of his disagreement with how things are done in washington or the fed. mr. piry needs to think before he speaks. he is not impressing anybody by

acting this way. and this from scott, yes, not only are they out of line but inaccurate. this is not only unpresidential behavior but plain ignorance of what treason is, making him a noncandidate. keep the conversation going. i will be back with another "talk back" in another 15 minutes or so. >> we look forward to that. before you go, here is proof that there's a lot of love out there, carol. this is showing the power of honesty. in japan, voluntaries and search crews going through the rubble found personal safes from people's homes, and they turned them into the police. that's not the most surprising part. how much money might have been in them? do you want to guess? you don't have to, because there is the full screen. police search for the safe's owners, and all 5700 of them located.

they went to the evacuation centers and looked up the names on the change of address forms at the post offices and eventually they were able to return all of that money -- >> i know what you are going to ask next. would that happen in the united stat states? >> need i ask? >> i think it would. if a horrible event -- >> really? >> yes, i still have faith in america, fredricka? >> yes, i have faith in america, too, and i also know america and i feel like we don't have that same level of honesty. >> you are so cynical. >> no, i am a realist. thank you. do you know the signs for a heart attack? straight ahead, what you should and should not ignore. dr. sanjay gupta is on the case. that lasts for months. hi. hi. [ female announcer ] two hour whitestrips from crest. life opens up when you do.

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with advice from local business experts and extending $18 billion in credit last year. that's how we're helping set opportunity in motion. this upcoming documentary "the last heart attack," and dr. sanjay gupta has been covering this for a year. >> there are plenty of misconceptions about heart disease. one of them that i think is really important to note is the idea that you can have a warning sign before you have a heart attack. in fact, for the majority of people that's not true. the heart problem comes out of the blue. no warning sign whatsoever.

the first time they have chest pain is while they are having the heart attack. for a lot of people the symptoms could be more vague. they feel more fatigued and feel like something is just not quite right, and that could be signs that in fact they are starting to have a heart attack. if you are worried about heart disease and having something unusual happening you should get that checked out. another myth has to do with your kcholesterol number. 1/5 of the people that had heart attacks had low cholesterol numbers. there's a point of looking at your numbers. and are they becoming laideclog

with block. and it has to do with the size of the particles. smaller particles could get into the wall and cause damage, and you could have a high celeska k level. and family history doesn't mean you are doomed. you can change the way your genes are expressed through lifestyle changes. and once you have plaque, it's there forever is also not true. diet alone can reverse heart disease. so these are some good news of the people out there who are worried about heart disease. and some of the latest news on what we're doing to try and get to the point where we can have the last heart attack. my doctors tell me after this journey, i am heart attack

proof. i bet you want to learn that as well, and we'll have that for you. >> more on your heart health, make sure and watch dr. sanjay's dupe tau's report, "the last heart attack," and he talks to doctors including a former surgeon that developed a radical diet that can make anybody heart attack proof in a month. at the top of the hour, i am fredricka whitfield. the dow blue chips are down. 388 points. a point of a growing risk of a new recession. alison kosik is at the new york stock exchange. what is the grooming news driving this selloff? you have a trader as well and maybe he has an insight. >> i do, and this is teddy

wiseman of newport securities. we have heard of economists already been upping their forecast for the possibility of a recession. what makes what morgan stanley said so different? >> you said it would lower it -- >> they have been upping their odds. >> upping the odds of the recession, but lowering the growing forecast, and i think morgan stanley this morning lowering the growth forecast for europe just reinforces the negative. it just reinforces what we already know, and clearly that's not priced into the market. as a result, you know, we see the not so bad at the moment, but we were down over 500 points soon after the opening this morning. >> is this panic selling that you are seeing? >> well, i don't know if it's panic selling because, you know, we have the whole issue of high frequency trading and computer driven trading, which is not based on fundamentals, but based

on some mathematical formula, and it can represent as much as 60 or 70% of the daily volume. but there's no question that we have a confidence problem. and when there's a confidence problem when it comes to investing, people move to the sidelines or agency. there's an abundance of high frequency trading. a loss of 500 points is clearly not a good day. >> the economic reports on how this country is doing, and the manufacturing report shows contraction. what does wall street want to see at this point? >> i think we all want to see the same thing. we need to see something change, and unfortunately to a large degree, the stock market is now hostage and has been hostage to a dysfunctional politicians,

both here in the u.s. and in europe. but in particular in the u.s., we have an administration that has been married to what clearly appeared to be flawed economic policies, and we had a jobs number worse than expected, and -- >> so we're going to see physical changes, and more than monetary changes? >> well, yeah. i mean, yet the white house continues to stick to the flawed economic plan. until something changes, whether it's 2012 or whether it's before then and we see some change in direction, either from the white house or from the fed or treasury, until something changes i think we will be walking in the soft sand. >> fredricka, i will throw it back to you. let's check in with carter evans at the nasdaq with more

from there. >> the silver lining is that we're off our lows for the day, but as teddy said there, it's bad when you see a 300 or 400 or 500 drop. we were down 528 at our lowest point. the nasdaq composite down the 4.3. overall, the front page on cnn money.com says it all today. all stocks across the board getting nailed today. and up above me, for example, apple, down 3.3% today. no news coming from apple saying it lost 3% of the value. this is fear driving the markets. can you see it with the tech companies getting hammered broadly today on the nasdaq. these are the most active by volume. dell, all on this list. why? because they need you to buy stuff. they need you to buy stuff and they need people having jobs so

businesses can expand and buy large servers. it's the uncertainty in the market right now causing people to run from these types of companies. no fundamental changes whatsoever. there's a big concern when the market is falling like it is and that can cause a problem in itself when everybody tries to pull their money out. maxine waters says president obama is not paying enough attention to jobless african-americans. she told a audience in detroit that they would call him on it if constituents would give them the go ahead. >> we don't put pressure on the president because you all love the president, and just -- just a minute. you are very proud to have a black man. when you tell us it's all right and you unleash us, and you tell

us you are ready for us to have the conversation -- >> so that conversation congresswoman waters wants to have with the president might include the statistics, the jobless rate for african-americans is almost 16% to the national average of 9.1%. the black caucus is here today. you say the market numbers don't help. are you telling the president that he is not doing enough, that it is up to him to fix this problem? >> first of all, we are here in atlanta with the jobs fair that was initiated by the congressional black caucus. we're in five cities, and we're seeing thousands of people come to the job fairs just looking for a chance, looking for an opportunity. we decided to get out of washington, d.c. and get away from the rhetoric.

yes, we're public policymakers, but it was time to hit the ground and come and let people know that we feel their pain. we understand how devastating it is in our communities, and not only are we losing jobs, and the unemployment rate is high, but we have been faced with home foreclosures, and we have lost most of the wealth in our families, and so all of us have a responsibility. the president of the united states is, of course, the president of the nation and we support him and want to work with him and use that bully pulpit to get the banks in there, and create jobs and those jobs will put money bk into the economy, and that's how you revitalize the economy. yes, we're working with him but are sounding the alarm. if you look at what is here

today with thousands of people lined up in the hot sun, we're putting a face on the misery and unemployment. the black caucus is determined to do everything that we can do not only as public pull solicym but also as representatives. >> your message went further yesterday and you were talking specifically about the duty or the allegiance that perhaps this president, because he's a black president, should be paying to the black community, particularly because of the disproportionately high number of unemployed african-americans. is that right? >> well, no. what i have said is this. we love the president, and the people love the president. they are ready to confront the president or do anything that would make it appear that they

don't support him. so you have seen african-americans be extremely patient as they tried to find jobs and to deal with the misery, and so what i was saying to them is, we have got to put a face on it. we have got to not only talk about what we're doing in the congressional black caucus, but we have to let the president know we're behind him. don't back up from the tea party. stand up and fight them. don't give in to them. don't make deals with them because you are trying to get along. we want the president to know that he's got a lot of people behind him and we want him to be strong and fight, and they are saying increasingly, yes, we're hurting and we're even getting angry, and let the president know that we want him to be tough. >> just a moment ago we spoke with a job seeker that was there at the job fair, johanna hill, and she said what frustrates her most is this. >> this job thing has affected

all of us, and it doesn't matter, white, black, republican, democrat, tea party, and come on, guys, we're all adults and i can't understand why we're all bickering. there's a lot of things that can be done. >> and she elaborated further. she is among those that are saying that there are a lot of people here who are standing in the way of some progress, and she points to congressional members as well. >> well, first of all, let me say this, a lot of people are hurting, and we want everybody to be helped. it just so happens the african-american community has the highest unemployment in the nation. it's the worst since the great depression. 16%. 35 to 40% in some communities where the unemployment has been banned for a long time. so we are unique in terms of the

pain that we are feeling in our community. yes, we want the president to help everybody just as he's helping the rural community. when he rolled down in the past few days he went to the small towns in rural communities and he went with the plan, and that plan was to invest money in the rural communities in order to develop jobs, and we like that. we want the rural poor to be attended to, and we also want the urban poor to be attended to, and that's all we're saying. >> so when the president is to unveil more extensively his plan for the economy in mid september, and in that plan there may be tax incentives to employers who would hire, how does the congressional black congress or you personally, congresswoman, want to help the president craft a plan that would include everybody at the table? >> well, we absolutely are going to have our input and to try and

give the president some advice based on our experiences about what he can do for unemployment in this country. again, as i told you, just as the president focuses on the rural unemployment or any other kind of special efforts that are made or whether it is with efforts such as dealing with gay and lesbian communities, and efforts such as dealing with the latino community, we want in addition to the overall plan to direct some efforts toward the worst off communities. if you have communities such as a black community where you have 16% unemployment, translating into 35% and 40%, i think it's already to ask that some special attention be given in addition to what you are doing in the rule of communities. and the roads and the bridges

and water systems, we support stimulating the economy with another stimulus plan. we support using the bully bull pit to call the banks in and tell them we bailed them out and now they have to put money back out to small businesses so they can create jobs. we're comprehensive in our approach, and we're speaking for all of the people that we represent, and we're bringing attention to the people who are hardest hit. >> congresswoman maxine waters, we appreciate that from atlanta job fair sponsored by the congressional black caucus. we will be right back as we continue to watch the markets. the dow taking a significant beating. the eagle flies at dawn. the monkey eats custard. price-line ne-go-ti-a-tor. so, you've been double crossed by other travel sites

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flies free, plus save up to 65%. call 1-800-sandals. conditions apply. we are continuing to watch the markets. the dow taking quite the beating today. down 366 points there. we have our team coverage on this with ali velshi joining us from new york and richard quest from london. it's the global economy not just the u.s. being impacted here. what is at the root with this? is it indeed fear? >> these are weird days when i look at a dow down more than 365 points, and say it's better than it was two hours ago when the markets opened, 2 1/2 hours ago. morgan stanley came out with a report that said earnings and growth will be lower.

we suspected that, but we always wanted somebody to do the math. and you will see in the next few days or weeks you will see other investment houses and economists coming out with the reports. they are saying there is a global growth slowdown. and there's an increasing chance of a recession. they did not say it's the base case. they just think the chances of a recession have increased and the couple reasons for that is they don't think the policy-making behavior in united states and europe has been corrupt, and they will need more intervention from the european central bank, even though rick perry made that a bad word earlier this week. there's a bunch of things we already knew, and then add that to the report that inflation is high or higher, and then you put it into the mix and you have a

market where people are saying i don't want to be involved in stocks. >> we had a trader talking about the stock market being held hostage to dysfunctional politicians, and that much of what is or isn't happening in washington is making a significant impact on the markets, and short term and long term. >> and that's a valid point. richard will speak to this. the fact is many of the economic issues that we're debating here in the united states, we have all the data points and we can solve them, but this intractable, you know, ideological debate on everything is starting to cripple markets. the stock market is the value of the companies in the stock market and it's based on how much the companies will earn. that doesn't change or fluctuate on a daily basis, but the sentiment about what is going to happen is definitely contributing to this a great deal. richard is standing there. he has a harsher take on this

than i do. >> richard? >> morgan stanley is not forecasting a global recession. so as ali rightly points out, there's growth in the asian markets and it's slowing down. but the totality of what we are looking at now is far more serious, and the lack of policymakers' ability to deal with this on either side of the atlantic, there is talk, talk, talk. why is this significant? imagine you get up and smell smoke in your house, and you can see smoke, and you are now having a debate with everybody in the house about how you are going to find the smoke, and if you do what you might do about it, and whether it's really smoke, but never mind, because the neighbor's house isn't smoke, but the -- >> richard. and then you are having a fight about why the 3-year-old who lit

the curtain on fire had the matches, and everybody is doing everything but solve the problem to continue with your anal see. >> there is no reason why they fell out of bed. and they did fallout of bed. the reason is people are unhappy. >> in hearing this, it makes it seem like it's never ending. if we are saying it's a consistent problem, no matter which side of the pond you are on, where is the hope if there's so much mistrust and so much, quote, unquote, dysfunction, richard? and fear? >> it's not often i am at a loss for words. >> that's amazing. >> you used the word hope, and i don't see a great deal of that in the actions being taken. until now we have been moving on

fear. but the numbers we're talking about today on jobless, on european growth and german growth and the inability to solve the debt crisis, these are all facts, and ali you might have a rare moment of agreement with me, and it's that the facts are starting to drive the sentiment rather than fear. >> that's true, but no amount of fact should be driving a 5% swings in market. yes, we had bad housing numbers and not fantastic job numbers, but the jobless numbers were 4,000, and so i think you are right about the underlying points but the fear and exaggerating the reaction and that's why we're seeing the massive swings. >> the computers are moving much faster. but you are forgetting, perhaps, that we have had numbers.

the gdp in the u.s., and gdp in germany, and britain's unemployment rate has gone up sharply to the number of people claiming benefits. those are the facts, and this is the straw on the camel. >> well, thanks, i guess. we're having no hope now because you laid it all out for us, richard and ali. >> i have hope we will be talking to you later this afternoon. >> we know that will happen. yes, indeed. thank you, gentlemen. we will continue to watch the markets throughout the afternoon as the dow continues to drop. gas and bloating. with three strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health. you had me at "probiotic." -woohoo! -yes! ♪ it was the best day ♪ it was the best day yeah! ♪ it was the best day

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here is your chance to talk

back on one of the big stories of the day. are rick perry's treason accusations out of line. >> this is an intriguing question. are rick perry's treason comments against the fed out of line? i know it has been the news for day. he said it would be treesen for ben bernanke to print money to continue playing politics. yesterday he upped the anti-. >> they should open their books up and until they do that there will be continued questions about their activity and what their true goal is for the united states. >> a former bush white house spokesman tweeted his remarks

are unpresidential, and perry has his supporters, too. >> we are devaluing the currency and it's happening because of the fed's policies and it's benefitting in a short-term way, i think, the white house. >> still, treason? if you don't have your pocket sized constitution handy, this is what it says. levying war against them or in adhering to their enemies, and giving aid and comfort as in benedict arnold. fed chair, ben bernanke, the man running the central bank for the country, is he conspiring against the united states? so the "talk back" question today, are rick perry's treason accusations against the fed out of line? facebook.com/carolcnn. i will read your comments later this hour. as you know, we are watching the markets where the dow is taking a big beating today.

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let's jump into the race for the republican president shum nominations for a minute. michele bachmann trying to build on her win in iowa's presidential straw poll win last weekend. she will find the campaign trail more crowded tomorrow because that's when rick perry returns to south carolina. rick perry says he wants to do for the country what he has done for texas. create jobs. is that retality or political rhetoric. >> reporter: rick perry loves to talk about jobs. >> my actions as governor was helping to create jobs in the country. it's time to get america working again. >> is rick perry and the

restoration of american jobs and the american dreams begins now. >> the ads are clear, but does the hype withstand the scrutiny. some call it the texas miracle. perry says his push for tort reform and lower taxes and business-friendly regulation make texas a model state. critics say take a closer look. >> you would not think your model state would be number one in low wages and it would be number one in a lack of health insurance, and you wouldn't think your model state would be smack dab in the middle in terms of unemployment. that doesn't sound like the model. >> we have people crammed in like this. >> this is the newly open corporation. >> san francisco, bay area, boston area, and looked at the chicago area.

>> vice president tim page said they picked the suburb because of a program created by perry. it offered $2.5 million to hire almost 400 texas workers at high wages. >> did texas come after you guys? >> they did not approach us proactivity. they found out we were looking and they embraced us heavy and did not let go. >> in march governor perry announced a health care company would move its headquarters from ft. smith, arkansas, to this dallas suburb. the governor said it would create 100 new jobs in texas, but the reality is more of a mixed bag. the company is relocating 50 of those employees here to texas and they will hire the other 50 here locally. that kind of job creation is nothing more than job snatching. >> job attraction and creation are two different things. if all you are doing is moving

jobs from utah to texas, the nation is not any better off competitively. >> critics say governor perry is claiming credit for things out of his control. one-fourth created are government jobs, teachers hired to keep up with the state's population boom. and rick perry is convinced voters will give him credit for making texas a better place to do business. >> and ed, let's talk about how governor perry handled the state's shortfall and what that could mean for the jobs in texas. >> this will be interesting. there are a lot of people in texas that believe perry went into the legislation last summer fully intending on running for president. there's a $25 billion short fall

in texas, and the governor said we're not raising taxes but cutting spending and that comes with a great deal of cuts done across social services and education as well. it will be interesting to see how the numbers and unemployment figures play out in texas when the layoffs start to take place. the unemployment rate 8.2%, but in the middle of the pack nationwide. it will be interesting to see how the unemployment figures move in the months ahead. >> ed, thank you so much from dallas. of course, the right hand lower section of your screen, you are looking at the numbers right there. the dow down 380 points. many of you are probably cringing and thinking about your 401(k)s, and college savings, etc. ♪

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we have been watching the dow plunge today. many are cringing.

the dow down over 400 points, and so what kind of affect will that have on your investments? valerie, what should people do when they see the market going up and down, especially down? >> i know. the first thing they need to do is just breathe. get still and settled. realize that what goes up goes up. i know it's really hard at a time like this, but i think what we want to do is talk to the people out there saying i know this will have a trickle effect on me, and how will it affect my wallet? i have kids to sends to school and all of this. the thing you need to remember, you make investments and you should look at it almost like a savings. you have your retirement account for your future. how soon are you going to need that money? the market ups and downs, and washington's conversations or lack there of should not detour

your own personal plans. remember why you invested and understand there will be a positive side to this. >> so many people are so nervous, because recently it seems like the dow has taken such big plunges and so much money is taken off 401(k), and long-term planning, and should i make modifications as i look at the long term. >> that's a reaction. so rather than being reactive, people need to be proactive. there is little they can do right now. don't try to call your broker or shift your money. moves you make under pressure with your money will be poor moves. you cannot make one decisions in your life without impacting others. so with your money you had plans and goals and you had ideas that were set specifically for that money, so don't panic. don't try and move your money

around right now. make sure that you use this as a buying opportunity, if in fact you have money on the side, buy some companies that are good companies that are low value. you know the world's greatest investors -- take warren buffett, for example, you steadily sell when the market is going down, and you steadily buy into a market going down. let's see this glass as half full rather than half empty. don't shoot yourself in the foot. don't panic. it's your money and you need to take it personally. >> always good to see you. thank you so much. >> good to see you, too. a rare brain infection that you can actually get by swimming. what you need to know straight ahead. my mother made the best toffee in the world.

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a mother in virginia is grieving the loss of her 9-year-old boy to an extremely infection. a microscopic bug that enters the body through the nose and attacks the brain. >> i felt like he made me a better person, you know. and i am sad that he is gone. i miss him more and more every day. i feel like i am losing it. >> amber strickland is talking about her husband. >> it's an amaeba. >> the boy died of a deadly infection from an amaeba, a microscopic bugs found in fresh

water that swim up the nose and into the brain. he was spending time in a fishing camp where he was often in the water. a week later he complained of a headache and the next morning he became worse. >> the next morning he doesn't want to get out of bed and falling asleep in an instant, and then looks at me like he doesn't know who i am and or what words are coming out of my mouth. i got scared and called his pediatrician. >> he was immediately hospitalized and in three days was brain dead. an infection from an amaeba is rare, and they 35 in shallow, sag nunt water when it gets warm. >> should people be concerned about this? >> our goal is to make people aware that this exists and make people aware it's an exsep shaw null y low risk.

>> and there are three cases of this. elizabeth cohen is here to explain how alarmed should we be. we talk about it being rare, but when you hear about three this summer alone. >> we're talking 32 deaths in the past ten years. yes, it does happen, and it's not like drownings that are 36,000. yeah, what is scary about this is there is nothing you can do about it, and you go into the water and play in the water, and a week later they have a headache and complain of a stiff neck, and it could be a virus, and what happened is the amaeba has got up their nose and into their brain, and by the time you get them to medical care, there is nothing you can do. the less scary part is that there's a particular kind of water that this exists in. it's very warm water. these deaths have been in places

like louisiana and virginia, and southern states. it's like 80 degrees or warmer. if this is something that freaks you out and you want to avoid it altogether, and a pool is fine. >> that's one measure of prevention, stay away from the warm, stagnant water. >> anything else? >> most people that get into the water is fine, and this amaeba may go up their nose but it doesn't do anything to them. there is the amoeba, by the way. you can plug your nose if you are going to go under water. if you stir up the sentiment, it makes it more likely that amoeba will get up your nose. >> only the nose and not the ears? >> well, that's how they think

it's getting up there, the nose. >> thank you. we continue to watch the markets. you see the numbers there at the bottom of the screen. the dow is taking a significant hit. we will be back with much more in the news room. that one day on the red hills of georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. i have a dream today! [ male announcer ] chevrolet is honored to celebrate the unveiling of the washington, d.c., martin luther king jr. memorial. take your seat at the table on august 28th.

the markets still taking a beating. the dow down 414 points. alison kosik has a quick look at the markets from the new york stock exchange.

>> we're still looking at a market shooting first and asking questions later. the dow down 412 points. what sent the markets into a sell mode? well, there was comments about being close to a recession. and speaking of europe, the selloff not just happening here. the european markets hit hard. asian markets also hit hard. it's one more indication that we're inner connected. you know the saying, when europe gets a cold the u.s. starts sneezing. the worries are about europe, and their debt problems are on the minds of investors as well.

>> morgan stanley saying anything more perhaps about the likelihood of a recession? >> well, here is what is interesting. the headline is a scary one. when you see it saying the u.s. and europe are dangerously close to a recession, but the reality is when you look further into the report, morgan stanley doesn't think it will happen. it says we're close. it names three things working in our favor. look at corporate america. we are doing well. we have strong earnings and the companies are sitting on a lot of cash. and oil prices are falling, quite a bit, almost 5% lower, and it means consumers have a little more disposable income to spend. but what morgan stanley says is that the u.s. and european central banks, they could also be there to support the economy as well. so basically morgan stanley coming out and giving other reasons why it necessarily won't happen, but really driving this

fear that we're seeing really grow in the market today. fredricka? >> alison kosik, thank you so much. time to head across country for stories cnn affiliates are covering. new york, a sanitation driver lost control and smashed through the wall of a garage in queens. the truck dangled over the edge for hours. the driver has been treated for head and back injuries. in massachusetts, a 15-year-old boy reeled in the largest shark on record off the coast of rock port. he says he used cod as bait, and it took him half an hour to get that 12-foot long, 458-pound blue shark on the boat. wow. >> and joplin high school football players are getting ready for the season to start next friday. many of these players lost their

homes in the tornado. the coach says football practice gives the players a sense of normalcy. and rick perry accusing the fed of treasonious acts. and today's "talk back" question, your responses are next. right now some freem money advice. >> and we're at the help desk. joining me this hour our personal finance expert, and the president of consumer education. thank you for coming in. got some interesting viewer questions. the first comes from patricia in texafe phoenix arizona. i am a grad student with about 13 k in debt.

>> there are hidden gems of gold within that question. you are converting revolving debt to installment debt, better for your credit score. not tax deductible debt to taxable debt, and you are converting dischargeable debt to nondischargeable debt. you are borrowing from peter to pay paul, and it's less expensive and more beneficial debt, so if she is disciplined and will attack the debt, not a bad move. >> and a question from david in chicago. my wife and i both have our 401(k)'s set up through the same kay. should we keep things simple or have a different strategy for each? >> one of the things i like to point out is that people forget that women and men have different life spans, and

oftentimes an age different. for instance, i am 41 and my huz sbund 59. if we were at the same place we should not have portfolios that look the same, not in a strategic standpoint but in an allocations standpoint. look at the target date retirement fund through plans that are age appropriate, and that will adjust for any differences they may have. thank you, dpiz. if you have a question you want answered by our experts send an e-mail at anytime to cnn.com. hey can i play with the toys ?

sure, but let me get a little information first. for broccoli, say one. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time. he's in control. goodbye. even kids know it's wrong to give someone the run around. at ally bank you never have to deal with an endless automated system. you can talk to a real person 24/7. it's just the right thing to do.

you have been sounding off on the "talk back" question. carol costello joins us with your responses, carol. >> boy have you been sounding off. the "talk back" question today, are rick perry's treason accusations against the fed out of line? this from colleen, good lord, yes, he's out of line. he is playing off the arational fears of the under educated who think he knows everything because of who he is. and this from g.i., no, they are not. this administration is printing

and spending money that has no goal to back it up. and this from judy, they are beyond out of line. it's curious perry could say this and then expect bernanke to set policy, and this is not a john wayne movie. i hear too many words from both sides, not enough action. keep the conversation going. facebook.com/carolcnn. thanks as always for your comments. >> folks not holding back at all. nor are the comedians, carol. the presidential contenders are giving the late-night comics a lot to make fun of these days. >> michele bachmann said when she is president gas prices will come down to less than $2 a gallon. yeah. when asked how she will make

that happen, bachmann said she will hunt down the ceo of exxon and stare at him. >> cold-blooded, that conan. >> she handled the "newsweek" cover very gracefully. >> yep. randi kaye is up next. you can see it, down 403. a lot of factors at play here, and with that let's go to two of the best market watchers, ali velshi. and what is causing today's selloff? >> well, it's the lack of direction ask leadership, and this idea that we have economic growth slowing down worldwide, and nobody quite seems to have the solution as to how to fix