it is something to wrap your head around. the united states of america is no longer the top credit dog in town. i don't know what happens. but that is weird. >> a financial wake-up call. america has lost the pristeen credit rating for the very first time in history. the credit rating agency standard and poor's down depraided it double a plus. this is why. saying the downgrade reflects our opinion that fiscal consolidation plan that congress and the administration recently agreed to falls short of what, in our view would be necessary to stabilize the government's medium term debt dynamic. that means u.s. treasuries are rated lower and they are riskier invevment than germany, france and canada and the uk.

i am holly henningburg and we begin with a senior correspondant for fox business in the work. it seemed like a shock. but promise it shouldn't have been because the s&p warned in the debt talks this might happen if there were not more spending cuts. >> absolutely. this is the most del greated downgrade. i have covered them not in the u.s.. but it is unprecedented it is telegraphed and one of the most i have ever seen in the corporate deals in a long time. i don't think the markets will be that upset with this. we'll see. i am not encouraging people to buy s&p futures. but it will be an interesting monday morning opening and the people i talked to. when it started filtered out and leaked out by the government preparing everybody that it was happening and people on wall street that the market reaction will not be

that great. it is a huge political stories and hearing rumblings in washington on the congressional committees that the democrats are out for blood and they want investigations of s&p. we'll see if that happens. something unprecedented happened. a president spent money and didn't get a bang for the buck . because of that we have a massive fight over the size of government and s&p is right now, saying it is the worth of the value of our debt is lower han it was when president obama began. it is a huge political story and not going to end any time soon. >> s&p is warning that it may go lower and downgrade it to a double a rating. how does the u.s. get its house in order in two years? >> remember two side toz get your house in order. they can cut stuff with the new budget and deficit bill. i think they are modestly

successful. it is not as bad as people think. but the problem with what the s&p points out. since the stimulus package failed and all of the measures that the president tried has failed you are not getting revenues coming n you have a bigger deficit. economic growth is key to the downgrade. it is not just the debt deal. but sipts said there is no credible plan to make up or sort of the draw down the deficit that we have right now . this is a big problem. this is fiscal policy grid lock. republicans coming up with taxs and reforming the tax code and you have president obama coming out saying that we should do a new infrastructure rank similar to the stimulus plan . no one agreeing on much and sounds like we are stuck in the muck of a slow-growth

economy now at leastt until he is relected or not elected and you have coherency in washington. >> the job's report showed a slight improvement. 117,000 new jobs in july and unemployment rate dropping to 9.1 percent. tying that in with the downgrade of the credit rating, where do investors go now and how do they see the u.s. with the downgrade. do they see the u.s. as a safe haven in >> that is an employment report that was not good and s&p basically said that in other words. listen, if you are going to have job growth like this and meagar and basically barely budged the unemployment rate . people are dropping out of the work force in big numbers and it doesn't reflect the unemployment rate. that is not good and not the

type of job report that you need to deal with long-term budget issues. >> i got to get it in quick. >> yes, look at alternatives. you don't want to put your money in china right mow. >> thank you. charles. and right now president obama is at camp david, but his press secretary jake carny issued this statement in reaction to the news of the credit downgrade. >> we must do better to make clear our nation's. america is riskier than france. how is that for a headline?

investors who buy u.s. bonds will have more risks than if they buy bonds from countries like france . so how many countries have the coveted triple a plus rating. the u.s. shares the double a with belgium and new zealand and slightly lower is abu dabigand kuwait and spain . the u.s. is in the risk of being downgraded in two years. >> lawmakers are weighing in on the credit rating downgrade. republicans are calling for timothy geithner's resignation. >> you are likely to hear a lot about this from capitol hill and we are out of the starting gates and reaction coming in from now. pressure from the republicans

in the wake of the standard and poor's decision. they agreed to a way forward the credit rating agency said it didn't go far enough to stabilize the debt situation. timothy geithner's the treasury secretary is squarely in the cross hairs. republican senator jim dimint. the president should demand secretary geithner resign and replace him with someone who will help washington focus on defensing the budget. - balancing the budget. >> and it will be the plan -- senator harry reid said leaders should appoint members that will approach the committee's worth with an open

mind instead of hard liners . when democrats say that and white house say that they mean for revenues and taxes. >> that will be an interesting battle to see who is on that committee. >> it is going to be key. >> keep it right here on fox news for the latest on the affects of the s&p 500 downgrades. our special on the brink will air at 2:00 p.m. >> america's lower credit rating in washington. new unemployment numbers are signs that lawmakers have their work cut out for them. >> the day after the bad economic news, the president's weekly address is focusod what congress should do when they get back here to washington in september. >> our job has to do whatever

we can to help folks find work and create the climate or business can put up the job listings or next are rising for people. we have to rebuild in the sense of security. >> best way to do that he said to extend tax cuts for the middle class and tax credits to companies . make sure unemployment benefits and cut red tape to make it easier for investors to pump money in the economy x. give loans to companies that want to be the road or bridges or airports. republicans say that the president is way off . more spending will leave trouble. >> we were right to hold the president accountable. he is back proposing more stimulus spend higher taxes and even more regulation. doubling down on the same

failed policy is not the answer. >> congressman grimm added that the republicans, his party want to get rid of the regulation to and make the tax easy yer fair . different ideas of how to get the engines of the economy back up and running. >> hopefully something works. thank you peter doocy. >> 31 u.s. special operation forces and 7 afghan forces are dead after a helicopter crash in sphan stan. the majority of those killed were from navy seal team six. >> conner in molly, this is the single deadliest day for american troops since the start of the war 10 years ago. the military is not officially saying anything other than confirming there was a helicopter crash southwest of

kabul. it is an area where there is a lot of insurgent activity for many, many years now. according to afghan officials, 31 soldiers or troops were killed. we believe they were mostly or not at from the navy seal, including seal team 6 that launched the raid in pakistan that got osama bin laden a few months ago. we don't know exactly how many of them were navy seals. there were afghan commandos on the chopper as well the taliban is taking responsibility for shooting down the chopper. it is something they always do. it sounds as if they were able to bring the chopper down in the night. the group of u.s. soldiers and marines and troops were launching a raid on a taliban compound in the province. the taliban brought down the chopper.

we are not exactly sure who was on the chopper. we believe it was members of the navy seal . in recent months general petraeus talked about regaining the momentum here and that shows that the taliban has a lot of fire power here in afghanistan. >> conner, just heart breaking. thank you, conner. four gop presidential hopefuls turned out in hopes of gaining traction . tim pawlenty and newt gingrich and rick sanatorium all appeared in the eastern iowa picnic and spoke to a standing only crowd . pawlenty stressed the importance of connecting with iowa reporters. >> they want to look at you and see what you are made of.

>> the all-important straw poll will be then . newt gring rich drew the loudest surprise. >> check your local listings for the types and channels. >> it is a day of prayer in houston, texas. rick perry is leading thousands in a prayer rally. perry said it is about praying for the nation which is in crisis. 1,000 churches signed up to contrast and with the prayer comes protest. some groups feel excluded andath yist groups say it is a violation of church and state. one group sued to keep perry from participating. the political fall out from the s&p have started. we'll get reaction from the

vice chair kevin brady and later senator kay bailey hutchinson. >> and no denying america's fascination with sharks. we'll sit down with a producer who is chasing sharks for two decades. we learn some new trics of the trade... then break out our doing clothes and get rolling. let's use some paint that helps us get the job done in record time and makes a statement when we're finished. we're lowering the cost of a new favorite color. more saving. more doing. that's the power of the home depot. take your painting skills to the next level at one of our free paint workshops. your nutritional needs can go up when you're on the road to recovery. proper nutrition can help you get back on your feet. three out of four doctors recommend the ensure brand for extra nutrition. ensure clinical strength has revigor and thirteen grams of protein

to protect, preserve, and promote muscle health. and immune balance to help support your immune system. ensure clinical strength... helping you to bounce back. ensure! nutrition in charge! ensure! naturals from delicious, real ingredients with no artificial flavors or preservatives. naturals from purina cat chow. share a better life. but also a caring touch. you learn to get a feel for the trouble spots. to know its wants... its needs...its dreams. ♪call 1-800-steemer.

>> a nato helicopter was shot down by insurgents. the ap is reporting that the majority of those killed was from navy seal 6. thirty-one u.s. special forces and afghan soldiers were kill making it the second deadliest incident for the war in afghanistan for the u.s. forces. >> there is a risk that the united states could lose the triple a rating.

yes or no. >> no risk of that. >> standard and poor's is wrong. >> absolutely. >> that was treasury secretary geithner back in april. we know that the u.s. did lose the triple a rating. what next for the u.s. and world markets. joining us is kevin gradey . congressman, thank you for being with us. this happened late friday and we'll not have any indication of how it affects the market when the asian markets open up. what is your prediction. >> my guess is, not a lot. market is anticipating it unfortunately . so i don't see a big surprise there. it is embarrassing and could have been prevented and reflects the entitlements and i don't see major impacts come sunday night and monday

morning. >> the u.s. is getting an economic dressing down from communist china over the downgrading. we have a quote from the state run news agency. china, largest creditor has every right to demand the u.s. address the structural debt problems and insure the safety of the china's dollar assets. the united states has to establish the common sense principle that one should live within its means. needling or have a point? >> they have a point. part self interest and self serving. they hold our dollars and they have a fair say in the value in that and they are self-serving because they are pushing in their statement deeper cuts to the u.s. military for obvious reasons and calling for a new global reserve currency which they hope to be a part of.

that is predictable. >> anything congress can do. you are a lawmaker. anything congress can do to get the wheel in motion. >> absolutely. one, i think this is made the case that we need to go much deeper in our entitlements because that is the hong-term structural reform we need . they made the poign s&p is that our government is less stable and predictable . we set out those reforms we can erase that. and our u.s. global competitors are getting a handle on the debt. it is america that is not . so this ought to aid aid real imtus . over all reform of our debt. >> nothing moves that quickly in washington. what are you telling your constitients how they will be

affected by the downgrade? >> it is one rating agency you are on probation. two rating agencies downgraded we have problems and that will spread to anything that anyone borrows in america . so this is again a huge red flag. we have the opportunity to change this round. i am worried that standard and poor's who said they were objective and neutral. if you read the rational. they are making the case of raising revenues than cut spending. we as conservatives and republicans reject that thinking and needs to focus on entitlements and on spending. >> congressman gradey. thank you so much. >> thank you, molly. >> where does prayer fit in the 2012 election? tony perkins will head up a bus tour . we'll catch up with him to see

which candidates join him and get the take on the controversial prayer event in houston. favorite cereal is now honey nut cheerios! yup, america's favorite. so we're celebrating the honey sweetness, crunchy oats and... hey! don't forget me!! honey nut cheerios. make it your favorite too! with new extra-strength bayer advanc aspirin. it has microparticles, enters the bloodstream faster and rushes relief to the site of pain. it's clinically proven to relieve pain ice as fast. new bayer advanced aspirin.

>> s&p is taking a direct look at washington and saying the deal stops short . now finger pointing in the nation's capitol to begin. it is the bottom of the air and peter doocy has the story. boehner said the s&p is a consequence was out of control pend demdeps are at fault. boehner released a statement. democrats who run washington are unwilling to make tough choices and senate majority harry reid it is the hard liners. >> a helicopter crash killed

americans and afghan sold yerse. the majority killed from the team that was credited for taking down osama bin laden. >> 200,000 people are evacuating from china costsal area . it killed four people in the philippines without making landfall. >>on charp in the pro football hall of fame tonight. they join leser . former washington red skin great chris hanburger. back to you. >> thank you, peter. i know you are a jets' fan. there is another red skin member in the hall of fame. >> i know you and he worked harfor this. >> thank you, peter. the u.s. has had a triple a credit rating from standard and poor's until justice.

what does the plus rating do for you. here's lauren. >> hey, molly in an unprecedented move. standard and poor's said america does not deserve a triple a credit rate put it to a double a plus . putting it on parwith counselries like pelgium. s&p writes effectiveness and stability of america essentially washington didn't raise the debt ceiling fast enough or cut deep enough. interest rate will go up for the government and you. that means your mortgage and credit rate will cost you more. gross domestic product that slowed in the quarter could go

down . slow down means fewer workers and finally your investments may get pinched. the dow lost 700 points and that was before the downgrade. your pension plan and ira and 401 k show significant losses as the stock market determines how to react to the first ever downgrade to the united states credit. it might be a good time to talk foyour financial advisor and. consumer staples perform better in uncertain economic times. >> depressing but helpful to find out how it affects us. thank you very much. >> texas republican governor rick perry is speaking in the nondenominational prayer rally. his prayers come along side protest. some argue it is exclusive to christians .

others say perry has blurd the lines . others wonder if it is an attempt to garner support from the religious right ahead of a 2012 presidential run. tony perkens joins me from houston. with america's economic situation in the forefront some think tha a prayer vigil is not a bad idea. what do you say. >> given what took place yesterday and the implications that we just heard. we need to be praying and many more challenges in thassion and thousands are here praying and seeking god. no protest and no speeches or politics. simply prayer. >> there was a lawsuit that the federal judge threw out by five texans who didn't want perry to participate and one of those plaintiffs who said

she will be out there protesting is i wonder if we had a muslim governor if we were called to a muslim prayer. i think the governor needs to keep his religion out of his official duties. >> this has been happening since the first president. every modern president called the nation to prayer. before 1850 there were 1400 calls to pray . other they are saying, someone who is elected to public office in order to enter into the public square you have to check yours in front . so the governor, i have to give him credit, back in december before there was discussion of him being a candidate he said we are having a drought here in texas and financial problems . unemployment and threats

abroad. i am hopeful it is a turning point. i know some are offended. they can be there praying with us. you know. this is what america is. >> step in to politicings. texas freedom network supports religious freedom. they say governor perry is using it as a political tool for a 2012 run. the texas freedom network, sent governor rick perry an open letter who are concerned that the governor's prayer rally is more about promoting his political career than faith. are you correspond about that? >> no. i am not. molly it is legitimate that people can say that. but i saw the first

correspondance and communication about this and the governor was not considered about a candidate. what is giving rise to him being a candidate when he was attack for having the prayer. he didn't do what most did and in louisiana crawfishing and going back wards. yeah, i called for a day of prayer. evangelicals and christians say. this guy might have the qualities that our nation needs right now . that gave rise to the discussion. it was first the prayer and then it is discussion of him potentially being a candidate. >> let me get in quick. we have a couple of second left. your bus tour. what do you want voters to hear from the candidates. >>y woo will have almost all of the presidential candidates joining us in des moines on tuesday . rolling across the state and

ending in the straw poll. it is a value's bus. they will be making sure that the discussions about faith, family and friendom are a part of the broader discussion. that is important. we can't hope to shrink government until we shrink the family. that is the primary unit and we need healthy families. >> voters will be watching. thank you, perkins of the family research council. >> thank you, molly. >> no relief in sight for the south which will spend another day in the dangerous heat. texas residents are expected to hit triple-digit highs for the liveth day in a row. there is severe for the state. it could stick around until october. >> high school and college athletes who are practicing

now are at risk . some states are implementing new preventive measure to help keep them safe. elizabeth has more. >> well, heat troke death is 100 percent preventable and we have had four deaths in the past week. this is why there is a push to keep players safe. university of the tennessee in chattanooga is using a measure that is used in the nfl for years. taking and investing small silicone coated capsules that emit radio waves and transmitting the body temperature in practice. they are comparing those results with those of a head band sensor that is embedded in a helmet. if they conduct the study and they are effective. comparing those and using head bands would be a cheaper and more effective system.

here is a player and researcher. >> we are on the turf and that thing is 120 degrees. >> the goal of the study is to compare this device or transmitter in here with what it is reading for court temperature here to the court temp pill that is ingested five or six hours before practice. >> and they are going to release the findings of the independent study in a conference next year. he wants to make sure health care professionals are using valid means in evaluating the players. there is no response to heat stroke victims. >> it is a timely topic. thank you. and many in washington breathed a sigh of relief when the debt deal was done. that deal is blamed by s&p for

not doing enough. we'll get reaction from senator kay bailey hutchinson after the break. [ male announcer ] this...is the network -- a network of possibilities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more amecans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... f greater access to all the things you want, whenever you want them. it's the at&t network... and what's possible in here is almost impossible to say.

well, we're here to get you custom orthotic inserts. we can't afford that. yes, we can. dr. scholl's custom fit orthotic center. foot-care scientists are behind it. ( man ) you have flat feet... no way... way. orthotic 440 is recommended. it recommends the custom-fit orthotic insert that's best for your feet. you'll get all-day relief. for your tired, achy feet. and you could save a couple hundred bucks. sweet. this is great. dr. scholl's custom fit orthotic center. thank you... who are you talking to ? for locations, see drscholls.com.

many in congress thought raising the debt ceiling would save the country for a bad rate crediting and now s&p is saying they have not done enough for the nation's deb. senator hutchinson, if congress and the president they could default and lose the triple a credit rating. still it was downgraded, were you surprised? >> molly, you can't be surprised. they had begin all of the signals. are you sad, sure you are. it is not a good thing for america to not be in the very

top tier of credit worthiness by one agency. on the other hand other two rating agencies have been clear that they are taking a wait and see attitude and i believe that this is our opportunity to do more on entitlement reform to show that we are going to be serious about more cuts. >> lawmakers are home for the august summer break. is it serious enough to come back to washington and work on the spending cuts? >> i think we are working on spending cuts.rovides for the comttee of both houses of congress to come together to look for 1.2 or more trillion in cuts. they are in the very near time going to appoint those committees and start work before we get back in september. that's where the work needs to be done. >> are you concerned that this

is a beginning for the s&p? >> i think they wanted to send a shock to the system and they have done that. and it is basically saying get going on this. a trillion is not enough. they said that a month or so ago and a trillion was cut. but we have to do more. >> what do you say to democrats in washington where we need to accompany spending cuts with tax increase to improve the economy. >> it is the wrong thing to do in an economy like this. we want businesses to hire. we want the private sector to start growing and get out of the these dolledrums. they are not going to hire with the obama health care out there with a major cost to small business and taxes on top of that? that would be a disastrous call. that's why the republicans

have stood so firm against tax increases and said let's lower the tax burden on people and cut spending to show we are serious and entitlements get in hand and we'll see progress. >> senator kay bailey hutchinson from texas. thank you very much. >> thank you, molly. >> washington spent its way in the credit downgrade and now up to the super committee in congress to come up with ways to create more deficit reduction. fox news chief conknow congressional said what is at stake for the country. top four leaders of congress will select a super committee with a huge job. they have identify 1.25 trillion in 10 years.

>> they will be mature enough and frankly not fail for their own reputations. >> majority reid who will get three democrat senators to serve. >> it is extremely important that i pick people who are willing to make hard choices but are not locked in. >> there will be outside pressure from lobbyist and party elders in the upcoming negotiations as there were in the debt deal. >> they protect the benefits and social security and medicare and medicaid. that is a priority for us. i know who ever is at that table will fight to protect those benefits. >> protecting turf is one reason why orin hatch is concerned. >> it is going to be difficult for six democrats and six republicans to arrive in solutions. that have to. then this trigger happens. >> that trigger makes it

different than the typical washington blue ribbon panel it has to pass congress by december 23rd or across the board cuts come n mr. obama is not at the table. >> we'll talk about the seriousness that the members should approach the task. >> there are risks for conservatives and other strong on national security and slashed by 600 billion dollars. >> god forbid the special committee doesn't make a recommenation. the president will have to make recommendation of cuts and spendings on defense that will decimate our national security. >> and there will be pressure on democrat members and 15 provisions of the health care law will be on the chopping block despite the everies to shield it. >> from bulls and bears to

sharkings . it is a summer tradition that we look forward to. shark week. today marks the last day of the jaw's filled week on the discovery channel. why are we so fascinated by sharks. we'll ask jeff . jeff, thank you for joining us . i want to start with something that i read you said and it made my blood run cold. i don't think most people understand that sharks are coming in shallow water. 14 foot great white sharks are coming in five feet of water and why and where? great white sharks use the in shore for a nursery ground for the pups and feed on fish and rays and happening in southern california off of the beaches of malibu. we found the great whites swim under the santa monica pier in

the la harbor . iconic beaches and happening on the east coast. great whites are coming back. is that a reason to panic? that is a good thing for the oceans and sphard people go. are we seeing more attacks. they are there for other reasons. >> you swim with the sharks with had you are in the water with sharks. you make sure they know you see them. why is that. >> they are ambush predators. that's why they catch seals. a shark has to sneak up on it. if you see the shark and let them know you see it it is less likely to come up and attack you. it might be saying the jig is up. the guy sees me. i can't get the advantage and i will not hunt him. it is important to keep eye

conduct. let it know you see it. >> i hope i can remember that if i hear a shock. >> people do. i was in the water with a shark and thought about this and i learned it from shark week. it circled me but never came close. >> you always hear if you see dolphins that means you are safer from sharks. is that true? >> yeah, they hang out together sometimes actually. >> there goes that idea. i don't know if there is any really truism with shark behavior. when you step in the water in any beach in the east coast or west coast. you are stepping in a shark environment. you can come across the shark any time. is it going to rush or attack you? probably not. they are coming in there for millions of years and something to do when you go in the water.

you are not in the swimming pool. >> jeff. let me ask you one more thing. august is a big month for shark attacks. should we all be scared. >> the risk might be higher in august because more people are in the water it is a mathematical thing. more people in the water and spending more time in the water and spending more time where the sharks are. there is incident that is higher. they are not doing anything differently. it is just more people. i am still going to go to the beach and i know you love them and celebrate them and as long as they stay away. jeff kerr, we appreciate your time today . all your work with sharks .

will author and journal liz trata. also get a free flight. you know that comes with a private island. really? no. it comes with a hat. you see, airline credit cards promise flights for 25,00miles, but... [ man ] there's never any seats for ,000 miles. frustrating, isn't it? but that won't happen with the capital one venture card. you can book any airline anytime. hey, i just said that. after all, isn't traveling hard enough? ow. [ male announcer ] to get the flights you want, sign up for a venture card at capitalone.com. what's in your wallet? uh, it's okay. i've played a pilot before.

thank you, good afternoon. it started monday, in the new york area the widest audience they have hopefully in the united states. al-jazeera has been available on a spotty way in places like washington, d.c. and burlington, vermont and on the pacifica radio network in berkeley, california. what they've tried to do is shed their bad reputation. the bad reputation has been it ran all of the al-qaeda or many of the al-qaeda messages over the past few years. they were really criticized severely by the bush administration and by members of the bush administration as well as the president. now they are said to turn another corner. that they've changed.

now what they really are is a number one resource in mideast with 70 bure reds worldwide, by the way which -- bureaued worldwide, by the way which is enormous. and a special knowledge knowing the language and the terrain. they said they've turned the page and into a new approach. i watched it this week. and i'll give you my view in a second. it came -- i want to mention, it came to new york with the help of very prominent people. let me give you an example. hillary clinton was one of the people that really boosted al-jazeera in the united states. told the senate forum relations committee last march: >> rather pointed reference to

cable. in any case, with her significant influence she was able to bring it about. having watched it this week, it still last an -- it still has an anti-american slant. just about every story i watched this past week -- >> we lost liz trotta there. sorry we didn't get to hear the rest of her commentary. >> over the past 100 years, america has seen its fair share of economic uncertainy. no doubt times are tough here. one woman has seen it all. we get perspective from a woman who lived through the depression, next. [ male announcer ] walls can talk.

but it's our job to make them say something interesting. so how about this weekend we learn some new tricks of the trade... then break out our doing clothes and get rolling. let's use some paint that helps us get the job done in record time and makes a statement when we're finished. we're lowering the cost of a new favorite color. more saving. more doing. that's the power of the home depot. take your painting skills to the next level at one of our free paint workshops.

host: could switching to geico to the next level reon car insurance? or more host: do people use smartphones to do dumb things? man 1: send, that is the weekend. app grapgic: yeah dawg! man 2: allow me to crack...the bubbly! man 1: don't mind if i doozy. man 3: is a gentleman with a brostache invited over to this party? man 1: only if he's ready to rock! ♪ sfx: guitar and trumpet jam vo: geico. 15 minutes could save you 15% or more on car insurance.

bargain shoppers, get this, 67500 miles of deals in the

largest yard sale. the event in its 24th year from michigan to alabama winding along the 127 corridor through ohio and tennessee. you have until sunday to get in on the action. >> no question the economy is mit -- hitting many hard. one ohio woman has witnessed more than most will. at 111 years young, mary has lived through the 1929 stock market crash and the great depression. >> i had plenty to eat and good parents. and good family. >> what a nice reflection. she celebrated her birthday surrounded by family and friends at a local restaurant. mary's other advice, to live good. that's all for me here in washington.