sequester and avoids a shutdown. we would like to see congress take the long overdue step of reauthorizing the xm bank and we certainly believe, as we have for quite some time, that a longer term increased investment in transportation infrastructure would be beneficial to the economy, not just in the short term, but in terms of creating economic growth and laying a foundation for the long-term strength of the u.s. economy. so there certain will i is -- while we continue to be confident about the longer term trends when it comes to the u.s. economy, we would like to see congress take the kind of common sense steps that would build on that momentum that the u.s. economy continues to enjoy. jeff? >> reporter: josh, following up on that, china's president xi is coming to the white house in september does this topic of the chinese economy and weakness

there become a top agenda item for that meeting? >> well, jeff, the economic relationship between the united states and china has long been a priority for our two countries. that's certainly been true while president obama has been in office. i think previous u.s. presidents would say the same thing. that relationship has become more important as we've seen china's economy grow. and the importance of that relationship manifests itself in a variety of ways. it includes intensive discussions we have with with the chinese about protecting property rights. there will be discussions about moving towards a market determined exchange rate for their currency. it raises questions concerns about expressions we've raised

in the past about china's examples in cyberspace, cyber espionage that have had consequences for our relationship. so these are the things that have remained high on the agenda wherever president obama has sat down with his chinese counterpart and i'm confident that that will be true when president obama has the opportunity to welcome president xi to the white house next month. >> reporter: has he been briefed on the market volatility and is he having discussions either now with his counterparts in china or other officials? >> i'm not aware of any -- the president hasn't made any chinese officials. but the president as a matter of course is updated on developments in the economy and he has been while he's been on vacation. >>. >> reporter: does the white house expect the volatility will have any effect on the fed's decisions about interest rates this fall? >> i wouldn't want to speculate on a decision that is the responsibility of the independent federal reserve. but i'm sure the federal reserve

will tell you they are paying close attention to this volatility and broader economic movements but any sorts of conclusions they reach will be theirs. >> reporter: one last topic. do you have a reaction to the north korea/south korea agreement today to reduce tensions on the border? >> jeff, i was -- i heard they had resolved or at least completed their talks shortly before i walked out here and it's pending a longer term or a more formal announcement from the two sides in terms of what they've agreed upon. so we'll withhold any reaction until they have an opportunity to make their announcement and then we can follow up with you on that. paul? >> there are a lot of market analysts who think chinese estimates of its economic growth have fallen from 10% to 7%, the world bank and imf say china will l slow to about 4% over the next couple of years despite that, there are a lot of

analysts who say the chinese figures of growth can't be trusted, they're cooking the books. is that a view that the administration in any way -- how trustworthy do you think these chinese growth figures are? >> well my colleagues at the treasury department can probably give you a more sophisticated assessment of that. this is an issue that's been raised in a variety of ways. there's significant consequences for how reliable the data issued by the chinese government turns out to be. one of the cases we have made to the chinese government is that a more transparent economy is one that will benefit not just the chinese economy but the global economy and we certainly hear from business leaders in the united states that are interested in doing business in china that a more transparent business environment would make them more likely to do business

there. we welcome and want to advocate for u.s. businesses looking to grow overseas because ultimately that creates a good economic opportunity here in the united states but ultimately these are the kinds of decisions that chinese officials have to make and the message they hear consistently from the obama administration is one that is focused -- a lot of which is focused on the need for china to continue to pursue financial reform and to move rapidly to a more market-determined exchange rate system. but certainly improvining transparency into their economy is something we believe would be good for the global economy and good for the economy in china as well. >> there's a quick report that china internally, talking about transparency, they have an internal force, army, whatever you want to call it, of about two million government workers who do nothing but monitor their

own people's online activity. as you know, social media is hard to access and such. does that tell you or the administration that china is a confident government when it monitors their own people to that degree? is it a confident government or fearful one? >> paul, we've long made the case that human rights is at the top of the agenda whatever the president is meeting with his chinese counterpart and in a variety of settings including when the president himself travelled to china raised significant concerns about the chinese government's respect for basic universal human rights to its people, including access to information and freedom of expression. that's a concern that the -- that president obama will continue to raise with his counterpart. john? >> can you draw conclusions from one what's going on in china about the possibility that the u.s. government could run into a

recession any time in the next year or so? >> well, as i mentioned earlier i'm not in the business of prognosticating on election force economy but i think taking a look at these longer term trends in the u.s. economy are an indication of the strength of the u.s. economy right now and whether you evaluate job creation or the unemployment rate or just broader measures of economic growth people can feel confident. at the same time there's more that congress can and should do to build on some of this momentum the u.s. economy has built up and the resilience that this economy has demonstrated. and we're hopeful that when congress returns for from their recess they will be focused on passing a budget on time that reverses the sequester that will reauthorize the xm bank in a timely fashion, already a couple months overdue and that we'll -- we can hopefully get congress to finally overtake action on an

increasing long-term investment structure. >> reporter: would you say the fundamentals of the economy are strong? >> well, that's been a phrase that has been used by others in different settings. i think there's no doubt that the u.s. economy is far stronger now than it was in 2008 and there are a variety of ways to measure that. one way i would measure is to look at the impact of wall street reform legislation. now we know u.s. banks have reduced their leverage and have added more than $600 billion in capital since 2009. some of that as it related to new requirements under wall street reform. that means banks are better able to withstand short term volatility within the financial markets. one of the thing that has been part of wall street reform are

annual stress tests. that's another reason we can have more strength and resilience. >> reporter: so picking up on your answer to john's question, you mentioned what congress can and what they might not do. is there a danger that if congress fails to act on a budget on the debt ceiling, which is coming up as well, on infrastructure, that congress's action or inaction on those fronts could put us into a recession? >> well, there's no doubt that congress failing to act in a responsible way to pass a budget and reverse sequester is going to have negative consequences for the u.s. economy. and particularly at this time when we're seeing so much volatility in economies all around the globe. it seems like a bad time for an unforced error. now i would acknowledge that we've seen a lot of unforced errors from congress over the last several years and in spite of those unforced errors we have been able to build up some momentum behind the economy.

i think what we would like to see is congress take the kind of action that would build on that momentum as opposed to take steps or not take steps as the case may be to undermine that momentum. >> and a couple quick questions on the other topic that you like. a quick readout on the president's lunch with vice president biden? >> when i walk eed out it was o going. i've not gotten an early read on their lunch. >> reporter: we had the development that the vice president met with elizabeth warren how would the president deal with this if biden decides to run? you have his current vice president against his former secretary of state? >> there's not an insignificant "if" in that question and i think that's what serve interested to find out is what decision the vice president is going to make. the president has indicated his view that the decision that he

made i guess seven years ago now to add biden to the ticket as his running mate was the smartest decision he ever made in politics and i think that should give you some sense of the president's view of vice president biden's aptitude for the top job. >> reporter: i assume that means the president would support vice president biden if he were to run? this is obviously a better decision than the secretary of state he chose so -- [ laughter ] you said it was the best decision he'd made. >> it was e. and i think what the is -- the president spoke at quite some length about the appreciation, respect, and admiration he has for the service of secretary clinton, particularly in her four years as secretary of state. >> just not his best decision. >> well, i think all of you and your coverage about the president's comments about secretary clinton have noted how warm those comments were. i'll just say the vice president

is somebody who has already run for president twice. he's been on a national ticket for two election cycles now, both in 2008 and in the reelection of 2012 so i think you could make the case that there's probably no one in american politics today who has a better understanding of exactly what is required to mount a successful national presidential campaign. that means he'll collect the information he needs to make a decision. he's indicate head would make a decision and announce a decision before the end of the summer so those of us who enjoy the summertime i think would assume that that means he's got another month or here to think about this and announce a decision. >> the last thing, will the president remain neutral or -- will you say right now that the president will or will not endorse somebody before the primary is over? >> i've been asked this once before and i've indicated the

president does plan to vote in the illinois primary and ultima t l -- ultimately it's democratic voters who will choose the nominee but i wouldn't speculate about whether or not the president would offer an endorsement. >> reporter: so there's no possibility he could, say, endorse joe biden or endorse hillary clinton? >> i wouldn't rule out -- >> >> reporter: or bernie sanders. >> or bernie sanders. i wouldn't rule out the possibility of an endorsement in the democratic primary. i am confident the president will support the democratic nominee in the general election. major? >> reporter: s the president torn by this conversation of his vice president possibly running against hillary clinton, two people he think highsly of? >> well, i haven't had an extended conversation with the president about this and i certainly am not privy to the conversations that take place just between the president and vice president in private like the one that presumably is ongoing right now.

but no i would not describe the president as torn principally because this is an intensely personal decision someone has to make, to decide if-to-rto run f president and the president has spoken about the -- about his own decision to run for president and how that was -- that required a lot of consultation and consideration, particularly when it came to the impact on his family and i know that those conversations weigh heavily on vice president biden at this time as well. obviously these are decisions these individuals have to make for themselves and, look, as i mentioned to john, i this i the president's view about vice president biden's performance as the vice president of the united states should give you a sense of the president's belief in his aptitude for the top job. >> >> reporter: you said nobody has a better understanding of what it takes to mount a national campaign. what do you think that should

inform the vice president of? is it too late? >> no, i think it means he is somebody who understand what is he needs to know. so it's not as if he needs to ask himself a bunch of questions with which he's unto mill war. so i think he needs to have those conversations in order to make the best decision. >> does the president believe town healthier for the democratic party to have the vice president in the race? >> well, i -- i haven't asked the president that question. presumably you'll have the opportunity do that. i think what the president say is individual candidates have to make up their own mind about whether or not they want to run. that's the first decision. >> reporter: last one on this topic -- at least for me. part of this derives from a sense expressed by some democrats privately, some pundits publicly and some donors

not so prosecutely that hillary clinton is in trouble. the e-mail situation has caused her campaign to stall and it's a serious ongoing issue as far as her trust and possible legal consequences. what do you and this white house think about the e-mail controversy itself to be the source of this consternation? >> well, i think what i would observe is that it is august of 2015 and the election is not until november of 2016. and certainly somebody who worked on president obama's campaign in 2007 and 2008 will recall pretty vividly august of 2007. i think it's fair to say that there was not a ton of confidence in the likelihood that president -- that then senator barack obama would be

elected president of the united states. so i think what i would do is warn people against drawing conclusions at such an early stage. >> reporter: so democrats are unduly overwrought? >> well, again, there are plenty of observers to this process and they can reach whatever conclusions they can reach. whatever conclusions they would like. i think i would just observe that it's rather early in the process and certainly if you want to consider president obama's presidential campaign there are dangers associated with the assuming the outcome of the race 15 months in advance. >> so there's josh earnest, the white house press secretary, making news today basically suggesting on several fronts that the president of the united states believe that joe biden, the vice president of the united states, would be a great candidate. he said the best decision he made as president was to ask joe biden to be his vice president, the man who would be president of the united states in case of an emergency and certainly sending a strong signal that

that the president would, in fact, welcome joe biden as a potential democratic presidential candidate challenging hillary clinton. bernie sanders and the others if he makes that decision. the president having lunch with the vice president. those words are not necessarily easily thrown out by the press secretary at the white house when he goes out of his way to say the best decision the president made was to ask joe biden to be his vice president. there was a lot of discussion on the volatile stock market here in the united states at 9:30 a.m. eastern when it opened the dow jones dropped a thousand points, it's come back, down only 149 points. full coverage of that coming up. also, major breaking news out of the korean peninsula after marathon negotiations, north korea and south korea have reached a deal to reduce tensions. we'll have details. we'll go live to seoul, south korea. lots of news happening right here on cnn.

thankshow may i help you?s list. i heard i could call angie's list if i needed work done around my house at a fair price. you heard right, just tell us what you need done and we'll find a top rated provider to take care of it. so i could get a faulty light switch fixed? yup! or have a guy refinish my floors? absolutely! or send someone out to groom my pookie? pookie's what you call your? my dog. yes, we can do that. real help from real people. come see what the new angie's list can do for you.

they trained and suppliedn is. insurgents who killed my... brothers and sisters in iraq. we cannot let them get a nuclear weapon. the tough deal on congress' desk blocks iran's path to the bomb. it keeps america safe. and if they cheat... we will catch them. and if we have to stop them the hard way, we will. but we should learn from the past. congress--support the deal. we stop arthritis pain, so you don't have to stop. because you believe in go. onward. today's the day. carpe diem. tylenol® 8hr arthritis pain has two layers of pain relief.

the first is fast. the second lasts all day. we give you your day back. what you do with it is up to you. tylenol®.

let's get to the breaking news out of the korean peninsula. after three days of intense talks, the south korean national security advisor has just announced that north and south korea have struck a deal to end tensions between the two countries. we have team coverage of this. cnn's kathy novak is joining us on the phone from seoul, south korea. barbara starr is over at the pentagon. kathy, tell us what has just been announced in korea right now. >> what we're told, wolf, is that part of the agreement was that north korea has expressed regret over the injury caused to the south korean soldiers from those land mine attacks. we know it was a major sticking point here and in return south korea has agreed to stop its loudspeaker broadcast. those broadcasts, they will stop them in just under 10 hours from now.

12:00 p.m. tuesday on the condition that there is no more of this irregular activity they call it, or these provocations and negotiation that they have agreement to another meeting in sole or pyongyang to discuss other issues that have been on the table in these marathon talks, wolf. >> this is obviously a major breakthrou breakthrough. do we have any idea which side blinked first? was it the north koreans expressing regret? was it south korea that agreed to stop the propaganda radio broadca broadcast? >> i guess it comes down to who you're asking, wolf, and how you spin this. because expressing regt is a good way to get around this impasse that they had because the problem was that all along north korea was not even admitting that they were at fault for these land mine attacks even though both south korea and the united nations agreed there was enough evidence to show that north korea planted these land mines. so by just expressing regret,

they are not necessarily taking responsibility for actually planting them, they're just expressing regret that these soldiers got injured and in return south korea was able to back down on its sticking point which was these propaganda speakers. we heard from the president, park geun-hye, saying that was her bottom line, that she was demanding an apology from north korea. it seems that this expression of regret was enough to get south korea to shut down this campaign, wolf. >> cooler heads prevailing, at least for. now stand by, kathy, barbara starr is at the pentagon. barbara, the u.s. and south korea have been conducting their annual joint military exercise which is the north koreans, of course, hate, those exercises i assume are continuing is but the tensions leading to this breakthrough agreement right now, the tensions on the korean pen nans la, the u.s. taking contingency steps were enormous, right? >> it it was. we are now learning a very difficult weekend for the u.s.

military in south korea, wolf. because they began to see evidence indeed that the north korean military began a partial mobilization over the last few days. there was intelligence is, satellite imagery indicating several things were happening on the north side of the dmz. that pyongyang was deploying artillery. that's always a concern because that kind of long range artillery can readily hit seoul, south korea. that they were activating their air defense radar which is could, theoretically, if they were working properly in the north, detect incoming aircraft that they were getting ready for scud missile launch possibly and evidence that dozens of north korean warships and submarines had put out to sea. so as the u.s. was watching all of this all weekend, we are now learning the top u.s. military commanders also ordered a review of the u.s. war plan to defend south korea. they took a look at it, made

sure everything was in order. it's an indication of how concerning it was over the week end that this was spiraling out of control. it may well be one of the big motivators to get these two sides to the table and come to some sort of an agreement to deescalate this. wolf? >> very tense situation. i assume the exercises, the war games involving u.s. and south korean troops are continuing. there's been no halt to that, right? >> at this point, no. there is no halt. they go on for a couple of more days. people will be watching very carefully one of the things people are watching for is to see if the united states conducts b-52 flights over the region. these are the big high profile heavy u.s. bombers, if you will. they have flown before. it's a bit of a statement by the u.s. we're here, we can defend the south. it's something north korea is not too thrilled about. we're waiting to see if there will be a b-52 flight.

it will be a very visual signal that the u.s. is not pulling back but right now questions about whether that flight will happen, wolf. >> let's hope this deal calms tensions and we shouldn't forget nearly a million south korean troops, south of the dmz, a million north korean troops north of the dmz. 30,000 american troops or so along the demilitarized zone so lots is at stake. we'll watch the breaking news. barbara starr, thanks to you, kathy novak in seoul, that, to her as well. up next, new information about a possible presidential bid by the vice president joe biden. stand by. uthis isn't the mostne efficient way for people -or air to travel. awww! ducts produce uneven temperatures and energy loss. mitsubishi electric systems offer a better way with no new ductwork.... and lower energy bills.

so everyone gets exactly what they want! mitsubishi electric cooling and heating. make comfort personal. no sixth grader's ever sat with but your jansport backpack is permission to park it wherever you please. hey. that's that new gear feeling. this week, these folders just one cent. office depot officemax. gear up for school. gear up for great.

let's go to politics and the seemingly increasing real possibility of a presidential run by vice president joe biden. he's having wlunch tlunch with

president at the white house. also, white house press secretary josh earnest made it clear that president obama is a huge biden fap. let's go to joe johns at the white house. joe, what's the latest. all signs are pointing for a run by the vice president. >> wolf, democratic source telling cnn political director david clalian that the vice president is leaning more towards running, getting into the race, than against it. and that source telling cnn that in the event he decides to put his hat in the ring, one plan would be for the vice president to make his intentions known around the first week of october and then ride that out into the democratic debate. quite frankly, there has been a few other signs here that the white house and elsewhere that the vice president is considering this very seriously, including the fact that he just hired a new message manager,

kate -- her name is kate bedingfield. this is a woman who has experience in washington, right here at the white house: she also worked for the motion picture association of america and in the 2008 run of john edwards. we also have reported over the weekend that the vice president did have somewhat of a surprise meeting with elizabeth warren, the progressive darling who so many people want to hear from a as we move forward in this presidential campaign. not likely to get into the race, nonetheless, her endorsement could mean a lot for whoever is seeking the white house, wolf. >> and we also just heard from the white house press secretary, joe, as you know, josh earnest, you're over at there at the white house. these words don't come easily. the first thing he said after he was asked about a joe biden run for the democratic presidential nomination he said very pointedly that the president believes the best decision he

made as president was to ask joe biden to be his vice presidential running mate. as they say, a heart beat away from the presidency. very strong words, a strong indication, if you will, at least in my mind harks the president would, in fact, be happy if joe biden made that decision. how is that playing in the white house? >> it's interesting. not only did he say that he also said no one in american politics knows better what it takes to mount a national campaign than joe biden. it's clear the white house would welcome a run but who would the president endorse? he'd be in the position of having his sitting vice president running against his former secretary of state that

means split allegiances. >> well, we know in 2008 he didn't pick hillary clinton to be a heart beat away from the presidency, he picked joe biden to be vice president of the united states and he says to this very day that was the best decision he's made. very significant political development, joe. thank you. up next, we're digging deeper into the biden decision. our political experts are standing by. would the biden run for the presidency be strong or weak? we're taking a closer look. plus this, jeb bush is at the u.s./mexico border today. how will this play with voters? our political panel assesses that as well. brain food, hmmm. ensure has b vitamins that help support brain health - now that's smart nutrition. ensure's complete balanced nutrition has 26 vitamins and minerals and 9 grams of protein. ensure. take life in.

that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans,

they pick up some of what medicare doesn't pay and could save you in out-of-pocket medical costs. call today to request a free decision guide to help you better understand what medicare is all about and which aarp medicare supplement plan works best for you. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. there's a range of plans to choose from, too, and they all travel with you anywhere in the country. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. ♪ call today. remember, medicare supplement insurance helps cover some of what medicare doesn't pay.

expenses that could really add up. these kinds of plans could save you in out-of-pocket medical costs. you'll be able to choose any doctor who accepts medicare patients. and there are virtually no referrals needed. so don't wait. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. this easy-to-understand guide will answer some of your questions and help you find the aarp medicare supplement plan that's right for you.

vice president joe biden seems to be inching closer and closer to a decision on running for president of the united states. only moments ago the white house press secretary josh earnest said that the vice president knows better than anyone what it would take to run a successful presidential campaign. he also said this when asked about a presidential endorsement. >> the president does plan to vote in the illinois primary and that ultimately it will be democratic voters who are responsible for choosing the democratic nominee. but i wouldn't speculate at this point about whether or not the president would offer an endorsement. >> so you don't know if there's a possibility he could say endorse joe biden or endorse hillary clinton? >> i wouldn't rule out an endorsement. >> or bernie sanders? >> or bernie sanders. i wouldn't rule out the possibility of an endorsement in the democratic primary. i'm confident the president will support the nominee in the

general election. joining us, cnn political commentator s.e cup, alex castellanos, founder of newrepublican.org and donna brazile, democratic strategist. donna, it looks like increasingly evidence pointing that the vice president is very serious about this decision and also significantly josh earnest just said the president believes to this very day the best decision he made was to pick joe biden -- not necessarily hillary clinton -- as his running mate. >> well, as you know, the water is still warm and there's no question that vice president biden is making a serious attempt to talk to democrats across the board. many of us received a notice from the "draft biden" committee that they will be in minneapolis to talk to us. they told us hold on, don't make a decision until they have an opportunity to talk to us. 12k34r because the other democratic candidates are going to the dnc meeting in mp but the

vice president as far as we know has decided not to go. >> that's the latest i heard howard dean in 2003 was leading in the polls and in 2007, of course, hillary clinton so they said don't make a decision, don't do anything stupid, wait for joe biden. >> what's your analysis, alex? >> as they say in wrestling, let's get ready to rumble. hillary clinton has created a vacuum in the democratic party that bernie sanders can't fill. politics and nature abhor a vacuum so somebody will come in off the sidelines to fill it. it looks like it will be joe biden and the old trope that, well, oh, he doesn't have the organization and bernie sanders and hillary clinton have been out there, we here in the age of the internet. you can build an organization in social media and this things move quickly. you can have a company one day and be out of business the next. i think joe biden will be a serious contender for the

democratic nomination. >> a lot of analysts believe if he decides to run, at least in part, it's because the there's a fear among democrats that maybe this e-mail involving hillary clinton, there may be something there that could undermine her favorability ratings going into a general election. >> the only we're talking about bringing in a guy who will be 74 when he is sworn in who is still dealing with the grief of losing a son, who has no campaign infrastructure, who has no campaign money. the only we're talking about that is because hillary clinton is not doing well. dangerously so. i think some people are reading too much in into the elizabeth warren meeting. i don't think he's meeting with her to run for progressive votes. i think if he gets in at all it will be because he wants to capture the democratic vote that that party has been missing. the blue-collar older male vote that will be leaving and,

frankly, if you're a disenfranchised democratic blue-collar voter, you're skeptical of hillary, you definitely don't like bernie sanders. you might be looking at a republican this year unless someone like joe biden gets in. >> a lot of this is fantasy talk because the truth is if joe biden decides to run in the democratic primary he has to capture the democratic vote. he has to earn it the same way hillary clinton is trying to do right now. but i have to tell you i don't think joe biden is running because hillary has a problem. i think if joe biden runs he wants to continue to advance the agenda that he wanted to be with president o'biden -- president o'biden? >> that's what voters can think. i can see the bumper sticker now, "o'biden." >> well, he's a natural politician, a good politician. if he decides to run he'll get support within the party. >> given the signals it looks like he will run.

we'll give him time to make a formal announcement one way or the other. what do you make of jeb bush going to the u.s./mexico border today? the other day we saw the republican presidential front-runner donald trump make an appearance at the u.s./mexico border. >> every republican candidate does it. it's the issue republicans are most concerned about and frankly jeb bush has a majority republican position on immigration, on securitying the border, on not deporting four and a half million children who are u.s. citizens. remembers don't believe you ought to run out 11 million people and ship them out the door like we did in world war ii with the japanese and so jeb bush is going down there as most republican candidates other than trump have done. >> s.e, what's your analysis? >> i think all of the candidates before trump in a position position on immigration, now it looks like they're playing

catchup. that's the way the campaign has unfolded. trump made a big sblash on this. now it's no matter what jeb's positions are -- and i think they're good -- it's like he's trying to catch up with trump. it will be interesting to see when they can stand on this issue on their own not with trump as the backdrop. >> the republicans had a good position, that was the position the senate took and marco rubio was in the leadership, lindsey graham there, two presidential candidates -- >> on immigration reform. >> this so-called position that donald trump is pushing to the border to say we're going toss out the so-called anchor babies. that's a bad position that will hurt the republican party but more importantly it's immoral, unjust and wrong. >> we'll leave it there but that subject is not going away. presidential politics very hot right now. for the latest on politics, head over to cnnpolitics.com. excellent information for all of you. the dow jones industrials, right now, let's see how we're doing. down 287 points.

when it opened at 9:30, it was immediately down a thousand points then it recovered down to 150 points. down now back up to 286 approaching 300. in a minute we'll talk about what's happening, this roller coaster at the stock market in new york, wall street, much more coming up.

heart health's important... ...so you may... take an omega-3 supplement... ...but it's the ingredients inside that really matter for heart health. new bayer pro ultra omega-3 has two times the concentration of epa and dha as the leading omega-3 supplement. new bayer pro ultra omega-3.

you premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call

to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. my psoriatic arthritis i'm caused joint pain.o golfer. just like my moderate to severe rheumatoid arthritis. and i was worried about joint damage. my doctor said joint pain from ra can be a sign of existing joint damage that could only get worse. he prescribed enbrel to help relieve pain and help stop further damage. enbrel may lower your ability to fight infections. serious, sometimes fatal, events including infections, tuberculosis,

lymphoma, other cancers, nervous system and blood disorders and allergic reactions have occurred. tell your doctor if you've been someplace where fungal infections are common, or if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if you have persistent fever, bruising, bleeding, or paleness. don't start enbrel if you have an infection like the flu. joint pain and damage... can go side by side. ask how enbrel can help relieve joint pain and help stop joint damage. enbrel, the number one rheumatologist-prescribed biologic. . stock markets here in the united states on wall street, in fact, around the world, they are plummeting today. at one point, the dow jones after the street opened, down 1,000 points. right now, however, there seems

to be a comeback of sorts. down right now about close to 300 points. joining us is a political economist, chief strategist for the potomac research group. it's been a roller coaster at one point. down 1,000 points, then 150 and now closer to 350. what's going on here? >> not for the fainthearted? a long overdue correction. it's mainly because of the chinese and other emerging economies that have faltered. that's caused a big drop in commodity prices like oil and there's also anxiety over the federal reserve sending confusing signals about when they will raise rates. >> because investors are nervous if they raise rates, that's not a good scene for investors, right? >> it's probably the sign of many. some investors would worry about that. >> that's a sign that the federal reserve has greater confidence in the strength of the u.s. economy? >> good point. i'd say in the last week or two, the fed has been confusing and if there's one thing that the markets don't like, it's

uncertainty. >> there's a silver lining in what is going on right now. explain that to our viewers. >> number one, bargain hunters have come back. that's one of the reasons that the market is recovering. it's still going to be shaky for a while. number two, the price of oil has dropped dramatically. by thanksgiving, we may be paying under $2 a gallon for gasoline. number three is interest rates. they haven't fallen too much today but in the last week they are way down. if you're thinking about buying a house or refinancing a mortgage, this is not a bad time. >> if you're thinking about your 401(k), 1,000 points, even in 2008 during the real, real -- the great recession as it was then called, there were drops of 600, 700, 1,000. i don't remember that. that's unusual, right? >> it's a lot. you need dramamine for something like this. for ordinary investors, this is not a time to panic, sell or to buy. i think the markets will stay real choppy until we get the

next fed meeting which is september 16th, 17th. i think between now and then this is not a time for amateur investors to make a move. >> so you shouldn't even look at what your 401(k) is doing right now? >> it's tempting to look but by the end of the year there will be a move up. it's going to be rocky for a while longer. >> your bottom line recommendation to viewers out there, whether here in the united states or around the world, is -- >> is to not pan neck, sit tight and not worry about a recession in the u.s. there's no sign whatsoever that a recession here is imminent. >> economic growth will continue, unemployment will remain relatively sort of stable? >> yeah. modest growth. continued improvement in the labor market. not blockbuster but the economy is not in any danger of a significant slow down. >> remember that phrase, the fundamentals of the u.s. economy are strong. >> yes, indeed. >> not necessarily strong for

2008 but more true now? >> absolutely. thanks very much for watching. i'll be back at 5:00 p.m. eastern in "the situation room." for our viewers in north america, "newsroom" with brooke baldwin will start right after this. but your jansport backpack is permission to park it wherever you please. hey. that's that new gear feeling. this week, these folders just one cent. office depot officemax. gear up for school. gear up for great. 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.

go to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com.

. all right. here we go. top of the hour, you're watching cnn. i'm brooke baldwin. thank you for being with me. it's already proven to be quite an active monday here. we have to talk about what's been happening here on wall street. we are two hours away now from the closing bell. about to get into a tricky territory. richard quest is here to explain. it's been a stomach-turning day for the markets. the dow plunging. it's a p