scenario happening. >> she would have to fall flat. and she hasn't. >> exactly. >> see what happens. we will get final word from biden by august. thanks very much. that's it for me. thanks very much for watching. i'm wolf blitzer in "the situation room." erin burnett "out front" starts right now. convicted killer david sweat speaking for the first time since he is captured revealing stunning new details about his three weeks on the run. what was the killer's true escape plan? more breaking news. the fbi launching a major investigation. were they part of a heroin ring inside the prison? nbc dumps trump cutting all ties to the presidential candidate. wait until you hear how trump fires back. let's go "out front." good evening. i'm erin burnett. we begin with the breaking news.

the fbi launching an investigation into whether convicted killers richard matt and david sweat were part of a drug trafficking ring. possibly a heroin ring. we will have more in a moment. david sweat shot and captured by police yesterday. tonight is in serious condition. speaking though for the first time about his escape. here is what he is telling investigators. he is talking about life on the run with richard matt. he is telling them how they planned their getaway. here is a picture of sweat badly wounded. this is shortly after he was caught. this location here on the ground he had been shot in the torso less than two miles from the canadian border. as you can see, he is wearing camouflage clothing, not prison garb. he had a backpack. jay cook is the trooper who spotted sweat near a barn chaz chasing him and shooting him twice. sweat telling authorities that he and matt were together but

not the whole time. they split up five days ago. sweat says it was he who made the choice to split up. he said matt could have been sick from eating spoiled food. the bottom line is he was sick. sweat felt he was slowing him down. it was sweat who broke off. miguel marquez is out front where sweat is hospitalized. he was in critical condition. he is in serious. how much is he able to talk and communicate right now? >> reporter: not a ton. but enough to tell investigators exactly what it was like out there with richard matt and why he broke up with him, because he was just slowing him down too much. keep in mind they only got 32 miles in 22 days. it's over a mile and a half a day. not exactly a record-breaking pace if you are trying to get away from a large contingent of law enforcement after breaking out of a federal prison or a maximum security prs onison. he was able to tell them they were planning to go to mexico.

they hoped to taste margaritas in mexico. when joyce did not show up to pick them up that now was their plan. she left them scrambling for a plan b. >> which is incredible. people have given them credit. they had another plan and it turns out, she was the best idea that they had. what is next for sweat? obviously, he is in the hospital under lock and key. what happens to him next? >> reporter: well he will get better. it sounds like the hospital believes he is improving and stabilizing here. then he will be charged. he will be able to get an attorney amazingly enough. he will be charged with breaking out of the clinton correctional facility. he will be charged with other things whether it's burglary or theft along the way, because he clearly got other clothes and other belongings as they moved along. and then he will face charges for that. and then he will eventually be moved to another facility probably not clinton though it

sounds like. it would be hard to believe he would be moved back to the same facility. >> thank you very much. the fbi investigating that facility now and david sweat and richard matt in terms of a drug ring. we have new details about their final days. here is what we know. the new york coroner who inspected richard malttt's body is telling cnn his face was splattered with blood. he is dressed to blend in with the woods. dark brown pants and a green jacket. clothing similar to what sweat was seen wearing at the time of his arrest. alexandra field is "out front" with new details on sweat's capture. >> reporter: david sweat captured close to clean shaven and in good shape before taking two bullets. did he have any fight in him when he was taken down? >> doesn't appear that way. i can tell you, when they unloaded him from the ambulance, he was semi-conscious.

>> reporter: 22 days after escaping from the clinton county prison the manhunt ends within striking distance of the canadian border. >> come across a dirt run that runs along the border. once he gets there, he is within a couple hundred yards of the canadian border. >> reporter: five days earlier, the duo parted ways. sweat tells investigators. richard matt may have been slowing him down. matt reeked of alcohol when he was shot dead by a tactical team friday according to sources who also tell cnn there's evidence he was sick possibly from contaminated food or water. that evidence part of a trail scattered throughout the adirondack forest leading to two convicted killers. the first big break, day 17. 23 miles east of danamora confirmation that evidence ties them to a cabin.

one of the owner's reports a shotgun is missing. >> we have believed they are armed. they are dangerous. >> reporter: another break in the case comes days later. a break-in in a cabin prompts a massive search of the area. by friday day 21 more evidence is found as police reveal new information. >> the suspects may be led towards canada. >> >>. >> reporter: matt blows his cover shooting at an rv. what could have motivated that? >> no idea. obviously, it appears that matt consumed alcohol. if it was the alcohol or the fatigue or the starvation, he made a tremendous error. >> reporter: search teams head to the same area where someone called 911. what was moved around? what had you noticed? >> just the bottle of gin moved from one counter to another. >> reporter: it was matt's final mistake. >> the trooper walking along the side of the road and here is a

cop. those -- that's what broke the case on friday. >> reporter: richard matt refuses to drop his weapon when a border patrol team surrounds him in the woods. he is shot dead three times in the head. two days later, two miles south of canada police close the case. >> all of a sudden, the streets were just full of law enforcement, cars all the way down. >> reporter: a sergeant on a patrol spots sweat coming down this road. he captured the convicted killer. >> you got him? cool. >> reporter: investigators are now retracing both men's steps. here on the ground, they tell us in his last few days richard matt was moving slow maybe a mile or two a day. david sweat had advanced ahead of him covering a number of miles a day to end up here in this field where he was shot and captured just south of the

canadian border. we know that investigators have tied one or both men to at least three different cabins. they expect over the course of this investigation that they could find a number of cabins where these men sought shelter or additional resources. >> thank you very much. i want to go now to harry hocca, a law enforcement analyst. he is saying that joyce mitchell was plan a, that was their plan she was going to show up with the car. they were going to be in mexico. that's longer than a seven-hour drive, which is the lead time they had. that's what he is saying. they're not able to get everything out of him yet because he's in serious condition. should investigators believe his version of events? >> it depends. first of all when you go out, you have to go in a completely different way than would you somebody else you arrested here is a guy who doesn't care what time he will get added. >> he is everybodying ingserving a life sentence.

>> you can't play good cop, bad cop. you can't lie because he is smart. they don't talk to the police. they lawyer up right away. he has started talking. which tells me they brought in an experienced intear gator. you bring two guys in. you have to stroke his ego. he is talking about -- >> how incredible you are that you pulled this off. >> right. david, i got to give it to you. that was a great escape. you guys are historic. if it wasn't morefor matt you would be in canada. so now what happens is the doctors say you can talk for 20 minutes today. that's it. you have the same guy going back day after day. you get on a personal level. you keep on stroking him and stroking him. he is thinking he is a hero. he is a big hero because he killed aid copkill ed a cop in jail. he is going to be a bigger hero.

he knows it. he knows it. he wants people to know what he did. he might be a little short -- >> he wants his 15 minutes of fame. he wants them to know the plan. >> he might be playing the cops a little bit, i'm not going to say nothing. if you stroke his ego enough and you blame matt for him not getting away you will be able to get information over a period of time. >> what's the senincentive to talk? this seems like the only way to make this guy's life worse in jail is to put him in solitary for the rest of his life. >> you escaped for a reason didn't you? you escaped because you were tired of -- here you know he was a trusted inmate. now he is looking at 23 hours in a cell for ten years. one hour walking out every day. that might be incentive. we will give you three hours a day or maybe you will go to solitary confinement for five years instead of ten. i don't think he cares. i think that all -- the only

thing he cares about is his ego. >> i could imagine they have a suicide watch on him. maybe he doesn't care about that. thanks very much to you. one crucial piece of information investigators trying to get from david sweat is how they were able to find the first cabin where investigators discovered their dna. bill fairington hiked to the cab weren't they stayed. you saw this cabin. it was a 40-minute hike from the nearest dirt road. when you got there, what made you realize people had been there recently? >> i could see some shoe tracks atv tracks. that was probably what led me to walk that far up the path is that other people had been there before me. >> so you saw the tracks. we're looking at your photos. these pictures it's basically a

shanty. cabin might imply something more substantial than what we are looking at. when you went inside what did you see? what would they have been able to get in terms of supplies? >> well i didn't go inside. what i saw was -- it looked like a good place to spend some time if you were on the run. there was cooking gear. there was barbecue. there was beds. it looked well equipped for a place that far out in the woods. it wasn't like just some shack. >> the other thing we're hearing, david sweat is saying their plan was to go to mexico if joyce showed up. she didn't. then they went hiking in the woods. the cabin you found is a 40-minute hike from the nearest dirt road. you don't -- it would seem you don't stumble upon something like this if you are them. do you think they could have found it if they didn't already know about where it was from somebody?

>> i guess they could have stumbled upon it. i really wouldn't be surprised if they had some information about where to go. it was so far from the track that they must have used to get away from the prison that that was the power lines. there was no direct line from the power lines to the cabin. you know maybe they overheard something while they were in prison. that's what i was thinking. i think some of the local people in the area were also saying some theories like that. it would have been a long way to go. >> i appreciate your time. thank you very much. we should emphasize that authorities are looking into whether other people could have been involved. there could be more people who end up getting charged in this situation. more on the breaking news from the fbi investigating whether malttt and sweat were part of a heroin ring.

nbc cutting all ties with donald trump. trump's response coming up. hundreds evacuated as wildfires rage across washington. triple digit temperatures giving the fire fuel to keep burning. a live report coming up.

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big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. we live in a pick and choose world. choose choose choose. but at bedtime? ...why settle for this? enter sleep number... don't miss the lowest prices of the season, going

on now. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store. right now, find the lowest prices of the season with the c4 queen mattress set only $1499.98. know better sleep with sleep number. breaking news. the fbi is investigating whether the two escaped murderers were part of a drug trafficking ring in prison. investigators are focusing on whether sweat and matt received special privileges from guards because of their involvement in the ring. this as the second prison worker charged with helping the inmates escape appeared in court today. he admits he gave the prisoners tools. gene casarez is "out front." >> reporter: gene palmer walked

into a court today hounded by the media. >> do you have something to say? >> reporter: palmer, a prison guard for more than 27 years, is facing up to seven years behind bars for bringing tools into the clinton county correctional facility on four different occasions, giving them to matt and sweat in the months before their escape. >> you want to schedule a hearing? >> we will waive. >> reporter: with matt shot dead friday and sweat shot and captured alive on sunday local residents cheered that the three-weeknight marry was finally over. what answers would you like to know about? >> i want to know who else happened them? >> reporter: so far, just two people have been charged in connection with the escape. now the fbi has launched an investigation into possible broader corruption at the clinton county correctional facility looking into possible

drug trafficking and other criminal behavior among prison employees and inmates. palmer is facing three felonyies. he smuggled a screw driver and pliers into the prison. palmer is accused of destroying paintings he received from richard matt who is believed to have traded them for favors bl he escaped. john mully began, a former inmate knew matt and sweat and says he believes palmer is being treated unfairly. >> pretty common practice for a lot of correctional staff to do stuff like that. >> reporter: his attorney tells cnn palmer will plead not guilty to all charges. palmer was first identified as the prison guard who took frozen meat stuffed with hacksaw blades from prison employee joyce mitchell and gave it to the convicted killers. mitchell is facing one felony

and one misdemeanor. last thursday clinton county district attorney said no other charges for other prison employees were on the horizon. >> at this point in time as i stand here i'm not aware of any other individuals being under investigation relative to the matt and sweat escape. >> reporter: that all changed today. >> we are working in a continued collaborative effort with the department of corrections, with the governor's office to conduct further investigations as to if any other individuals were involved in the escape process. >> reporter: when palmer gave his original statement to the new york state police on june 20th he said that he never intentionally helped an escape plan at all. today after court, the d.a. said that today sweat, in talking with authorities, talked about palmer. he said he was not involved in the escape plan. it was only himself, richard matt and joyce mitchell.

but nonetheless, these are very serious felony charges. >> thank you very much jean. i want to go to eric jenson who knew both escapees. and arthur rodderick. eric let me start with you. the fbi investigating corruption at this facility. you served time there and you know both inmates. haur owe a drug ring. did you see that thing? would it surprise you? >> it wouldn't be surprise me at all. they are doing a large amount of time. a heavy bid. i don't think david had a visit the whole time i was there. i don't know if rich did. if you don't have visitors you don't have family you do what you can to make money. >> this is how they could have gotten money? >> it's a possibility. they could sell artwork, trade for drugs and trade for money.

>> when you hear that that would mean -- the money could have been on them or to the point that the attorneys are looking at there could be other people involved. >> absolutely. i think this is going to open up a lot of different issues going on in that particular facility. for somebody to say that bringing in a screw driver or a pair of plyiers is done on a regular basis, this has to be looked at. i think they will find a lot more issues involved. maybe not with this particular escape. but with other things that are going on in the jail that are completely illegal. >> paul you say this is the tip of iceberg? >> i think it is the tip of the iceberg. my law firm has been handling a large number of these cases involving wrongfully convicted convicts. i have to tell you, every time i speak to one who has been incarcerated in one of the maximum security prisons, i hear about drugs, weapons. i hear about violence. it seems to be a culture of the institutions.

eric and i were exchanging stories back in the green room about attica. prison guards cover up when they're in the prison facility but the prisoners know about it. i heard the story. every prison has its own culture going on. there's a lot of corruption. whether you can cure it is different. >> will they find out if there were other involves? we understand it's almost for certain sweat will not go back to this facility. he will serve his time somewhere else. in which case, he has nothing to lose by ratting out others who helped him, right? >> right. i mean they're not going to take his word for everything he says. obviously, they will try to corroborate the information he comes up with. but i think people -- you have two people already looking at some heavy duty felony charges. i think that's enough to have other people come forward and start talking to avoid any type

of prison time. i think this will fall in line with a regular investigation. you will have people coming forward, whether it be inmates or guards to try to avoid doing any more time in jail. >> eric they're on the run for 22 days. they split up a few days ago. they spend time at a couple of cabins at least. we know there were a couple of them. one of these cabins we found it. what we don't know is could they have gotten that tip from someone else? >> they could. >> it was a 40-minute walk from the nearest dirt road. >> they can get information like that from anybody. for instance -- >> it may not have been leaked on purpose. >> over the course of a year just having little conversations about their hunting trips, fishing trips, things of that nature. anything is possible. you could find out not the exact location but probably in the area of which it is in. >> paul how deep do you think this goes? >> i think there's substantial corruption. i don't think that with respect to this escape i suspect that

palmer it's true, he didn't realize he was helping them. he formed a friendship with them. they're charming. they charmed him. he got information. i think the corruption in any major prison system in the country. i think it's the nature of the beast. these prisons are in isolated communities in upstate new york. company towns. i think it's hard to solve the problem. >> paul, eric, thanks. you're fired. nbc showing donald trump the door. he is not going quietly. you will not believe who he is dragging into this. look at this video. this is a wildfire burning at this moment across thousands of acres out west. this is incredible pictures. it's moving so quickly. we will go there live.

trump dumped again.

nbc announcing it is cutting business ties. donald trump, the reason trump standing by his comments that illegal immigrants from mexico are drug dealers and rapists. >> my stance is correct. >> donald stood up for that doubled down on the program a few days ago. nbc says it's no longer going to air the miss usa pageant and miss universe. trump's response they will stand behind lying brian williams but won't stand behind people who tell it like it is as unpleasant as that may be. athena jones is "out front" where trump spoke today. >> somebody has to tell it like it is. >> reporter: in chicago, trump stood by his comments about mexican immigrants describing them as rapist ss, drug dealers.

>> they think it's mother theresa coming across the border. this one says 80% of central american women and girls are raped crossing into the united states. well i said drug dealers. i said killers. i said rapists. >> reporter: the billionaire businessman has been doubling down on his rhetoric even telling "out front" -- >> people run through mexico. they go through our border like nothing. they don't want these people. so they send them to the united states because the united states is run by stupid people. we are like a dumping ground. >> reporter: asked if he would apologize he said -- >> there's no apology. what i said is right. >> reporter: nbc will no longer air the miss usa or miss universe pageants partly owned by trump, following a similar step by another station which dumped the event. trump is threatening to sue. >> i will sue univision.

maybe i will sue nbc. >> reporter: nbc was facing pressure to respond. they called on the company to dump trump. angry protesters denouncing him outside the chicago event. the reality star and presidential candidate had planned to give up "the apprentice." he has been surging in the republican polls, up to second place in the first primary state of new hampshire. oozing confidence in classic trump style, he touted the latest cnn poll. >> just came out. they have interesting categories. who is the best on terrorism? that's an important subject. trump right at the top. who is the best on handling international trade like -- not even close. trump is almost double anything else. right? that's incredible.

>> reporter: trump was defiant today. he sees himself as a truth teller someone who will tell it like it is because he is beholdened to no one. one correction that poll that he talked about himself in the cnn poll he said he the best able to handle terrorism. he comes in second on that category as well, second to jeb bush. >> athena thank you very much. two republicans, tara and ben. ben, you know you can have this whole brouhaha going on. it is going on. let me give you this statistic. the room where donald trump spoke to 2,000 people were on the list to hear him. there are people who like donald trump a lot. >> well there's two things. he is filling a void. there's no one out there really

in the republican side being this bold and blunlt.t. there's the second side this is a reality tv show on a tour. that's what donald trump is. you want to go see this reality show because you don't know what's going to happen. you don't know what he's going to say. i think if there's any takeaway for other candidates pay attention. voters are wanting someone that is bold and blunt. i don't think it's trump at the end of the day. i think his unfavorability is high. >> here is why trump may resonate with people. you can't take it away from him. he is number two in new hampshire. listen to him today. >> somebody has to come out and tell it like it is. politicians are all talk and no action. we have to be less politically correct. we have to be strong. you take beatings. you take beatings when you tell the truth. >> a lot of people respond to that. that's a straight shooter. sometimes ugly things need to be

said. people are responding to it. >> i don't necessarily equate telling the truth with being ugly all the time. yes, people are refreshed by some of the more candid things that donald trump says. but you can't be -- you can cross the line and be obnoxious. i think donald trump has become inartful. it's borderline obnoxious. ben is right, this is a reality show. it's the cult of personality that is thrusting trump to the forefront. he has name recognition. everybody knows him. donald trump is a household name and has been for 25 years. polls are a snapshot in time. he is popular now because he is getting attention because he is saying things. it's garnering attention. when it comes time to have serious conversations, i think you are going to see people distance themselves from -- other gop candidates distance themselves from the ways of donald trump. >> certainly, the candidates will distance themselves. will the voters? donald trump went through the

poll in new hampshire, and he -- as athena points out, he was two on terror but one on several things which, of course he has no problem pointing out himself like did he today. >> look -- >> best on economy, best on trade -- a lot of important things. who is a nice person? trump is last. i'm last. i said to myself you know it's like that's really unfair. who is the strongest leader? let's see. trump is the strongest leader. i look at this. i say if i have all these things why don't we call off the election today? put the country back in shape. >> god help us no. >> ben, you know, yes, you have to laugh and smile at the way he presents it. voters did go through all these categories and give him number one on a few of the key ones. >> this is a long -- it's a long

time until you actually have to back that up with going in and actually thinking do i really want to vote for donald trump? that's the gut check moment i think for a lot of voters. do i really want this guy in charge of nuclear weapons? do i want him in charge of international trade, dealing with terrorism? those are issues that they will say, i don't trust him. >> that's right. in theory. yeah this guy will get them. he will get the bad guys. when push comes to shove, then is he really the best person that we want representing the united states as president of the united states? i don't think the voters will do that. the problem here though is that the way the debates are set up. it's the top ten, fox debate cnn debate top ten candidates. he is in eighth place. he could push out rick perry, john kasich, people that have executive experience that have more serious policies going on that are straight shooters.

if anybody listened to john kasich, he is a straight shooter, but without the reality show antics. >> they will be interesting to watch, those debates. i can say that for sure. if donald trump is part of them. firefighters battling wildfires. strong winds are fuelling the pictures you are seeing. people are evacuating. live in washington state as these move so quickly. greece on the brink of disaster. americans now also dealing with the panic. there's long lines in greece even at the supermarket. people can't get their money out of the atm. we're on the streets of athens. listen up team i brought in some protein to help rearrange the fridge and get us energized! i'm new ensure active high protein. i help you recharge with nutritious energy and strength to keep you active. come on pear it's only a half gallon. i'll take that. yeeeeeah! new ensure active high protein.

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breaking news, hundreds of residents forced to evacuate their homes. a wildfire raging in washington state. it burned through 3,000 acres in the past 24 hours. the county's fire chief describing a firestorm ripping through homes. >> it was intense. large embers blowing everywhere. roofs catching on fire.

vegetation around the house just spreading from house to house. >> joining me on the foinphone, a resident. the fire started near his home. randy, it went through your backyard. what did you see? >> caller: basically what i saw was is the fire start down by -- down the road from us about 200 yards and race up the hill just immediately up the hill and right up behind our house. >> i know you took pictures which we're going to show our viewers. when you talk about it racing up the hill my understanding is this is some of the fastest moving fires that people have seen in quite some time. you must have been frightened. >> caller: well we're prepared here. we have a green belt around our house. we have lines that we put out, sprinklers. we were in no danger at all. >> which is good for you, obviously. hundreds of others have been forced to evacuate. how much more have you seen once

it went through your backyard? >> caller: we took a drive into town. we saw the shed that caught on fire last night from the embers from this fire. we saw homes that were burning as we drove through town. >> i appreciate your time. thank you. i want to go to the mayor. thank you for being with us. in the midst of this a very frightening for you, you think this is spreading? >> caller: it's up to 4,000 acres. we have 28 structures that have been lost probably eight of them are out buildings. the saddest part is there 20 that are single-family residents that have been completely destroyed. it has been a tough 24 hours for our city. >> i can only imagine. you have been evacuating people. we understand that there have been concern about ammonia leaking. incredible flammable. >> caller: the fire as the previous gentleman talked about, the embers jumped into our

commercial area and burnt two or three fruit packing facilities. in the facilities there's certain chemicals that are used that are very flammable. very dangerous situation around noon today where we evacuated most of the downtown worried of an ammonia leak. but it dissipated into the sky. we got lucky. it was scary for a while. >> i can only imagine. do you know how these fires started? >> caller: they don't know for sure. they're working on trying to protect structures at this point. they haven't got a cause of origin yet. started near a road and something flammable started something near a road. that's all we know at this point. >> i understand not only do you think this is going to spread but part of the reason is there's no relief in sight in terms of temperatures. you are talking about air temperatures separate from the fire in triple digits? >> caller: it's 100 degrees right now. i see thunder clouds in the area which means if there's lightning, there will be more

fires. it's not even july yet. we have a lot ways to go. >> do you anticipate overnight tonight, are you going to fight through the night? how many people do you have on the job? >> caller: hundreds of firefighters. there's two teams from the state. they are working hard. our firefighters are exhausted. they will keep plugging away until we get this put out. we're worried about what's going to happen next. >> thank you very much for your time tonight. good luck. we hope you are able to get that out. over 100 degrees right now in the air temperature. breaking news the worst day of the year for stocks in the united states. single worst day. stocks truly plunging. the reason is what's happening on the streets of greece. it's terrifying. we have a special report from the ground. the world's ugliest dog, which actually is kind of cute. leave early go roam

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breaking news stocks plunging. posting the worst loss this year. the reason fear and panic in greece. the dow plunging 350 points. 2% in a day. greece is hours from default. the situation is dire.

just imagine this picture in america. banks are closed for a week. people can't get their savings out of the atm. people are panicking. frantically rushing to grocery stores to stock up on food and gas and some stations have run out of fuel. richard qwest in athens tonight. richard, you have been on the streets. you have seen all this. what are people telling you? what have you seen? >> what people are telling me they've had enough. they are anything rechltgry, resentful. feeling very badly done to by the europeans who they feel want to humiliate and drive greece further down. right or wrong, i don't know. the europeans say it is not true anyway. but the reality is -- it was beautifully summed up erin by one newspaper seller who said to me, do we want do we want a sudden death or do we want death by 1,000 cuts?

that's the position that greece is now facing. the europeans have said until now, yep, we will lend you more money. but it is going to cost you. there will be more austerity. the greek people will have a vote sunday whether they want it or not. >> richard this is reverberating around the world. pictures in greece are horrible to see. on ape human people you have to feel empathy, people can't get their money, gas, desperate. they can't get their food. biggest one day drop this year for the dow. how concerned should americans be? >> i think they should be concerned. because what happens in greece will happen in europe. what happens in europe will happen in the united states will affect it in the united states. greece may be a small economy, but remember erin greece is a small economy within the euro zone within the european union. and everybody is terrified about what might happen. yes, since 2008 and 2010 more

measures put in place, so you don't get the domino effect as badly as you once were. make no bones about it. we are in unchartered territory. greece is looking at whether or not it is going to stay in the euro. this was an arrangement, it was never meant to be. now the possibility in a very short time. greece decide it wants to go. and europe put once more into turmoil. as the regard to the united states all bets are off. and that's why, president obama has spoken to angela merckle, the u.s. treasury secretary is very worried and remind europe deal with this problem. >> richard qwest, heavy word. thank you. we'll be watching that as the the hours count down. out front next jeanne moos with a cosmetically challenged canine that proves it is on the inside what counts.

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the winner of this year's ugliest dog contest in california is on a nationwide press tour. her name its quasi modo, you will see why, and jeanne moos has her far from ugly story.

>> reporter: she is the belle of the big apple, with the winner of the ugliest dog contest can still be called belle. >> what? that its not the ugliest dog. >> reporter: oh yes she has the blue ribbon from the sonoma marin fair. one of the judges referred to her as "half a dog." named after the hunch back of notre dame quasi modo the 10-year-old has short spine syndrome. but she is not in pain. >> no, no, very healthy. runs jumps, plays. no problems. >> reporter: owner virginia sayer is a vet who adopted quasi modo from a shelter. >> precious. awesome. >> good log. >> reporter: quasi modo spent the day looking bored at tv appearances and posing for photos on the street. she took the marble hotel lobby in stride. not to mention adoring public acting like puparazzi, pedaling backwards into other

pedestrians. these two stopped to pet her on the way to city hall to get married. >> she can be my maid of honor. >> reporter: her owner shrugged off critics who think there is something mean about all this. >> you have to have a sense of humor. >> reporter: now joins the immortals. give me winston churchill. all quasi modo is missing is the cigar. she is even scheduled to appear on jimmy kimmel. >> do a makeover. try to make an ugly dog into a beautiful dog. >> reporter: styled by carson kresley who styled many a straight guy with similar issues. >> very, very hairy. >> looking at herself? >> even the world's ugliest dog couldn't resist her reflection on 57th street. mirror mirror on the wall who is the ugliest dog of them all? >> quasi modo. >> well i think she is adorable. just imagine if that had been a

person how totally inappropriate this conversation would be. thank you for joining us. be sure to set your dvr to record "out front" so you can watch anytime. appreciate you watching us always. see you back here tomorrow night. ac 360 starts now. >> good evening. thank you for joining us. they were going to mexico but not before first taking a man's life. that is what surviving fugitive and cop killer david sweat is reportedly telling authorities. and that tonight is our breaking news. he is spilling details from his hospital bed about his now dead partner richard matt their escape from a new york prison. when why they split up who they planned to kill before heading south. on top of that prison guard gene palmer in court answer charges connected to favors he admits in a sworn statement to doing for them inside the clinton correctional facility in dan dannemora. the fbi investigating possible drug corruption there. a lot to bring on the threads and more. late word on the coroner on richard matt and huh he looked