bill: for sure. heather: i'll give you a call. [laughter] bill: heather, good to be back with you. we've got to run, everybody, the president should be out momentarily, see you again at 1:00 on hq. heather: bye. jon: and we begin this edition of "happening now" with a fox news alert, awaiting president obama. he is in the state dining room there at the white house surrounded mostly by white house staff, we understand, they're all back if business today. -- in business today. good morning, i'm jon scott. jenna lee, how you doing in new york? jenna: i'm going well, jon. nice of you to get a closer look to washington, d.c., waking up a day after the shutdown and now seemingly back to business. but how long that will last is a big question. and, jon, as we've been talking about timeline wise, we only really get through the holidays, and then negotiations have to start all over again. so we'll see what the next few days, weeks bring us. jon: the white house staff is

standing up. here is the president. let's listen. >> well, last night i signed legislation to reopen our government and pay america's bills. because democrats and responsible republicans came together, the first government shutdown in 17 years is now over. the first default in more than 200 years will not happen. these twin threats to our economy have now been lifted, and i want to thank those democrats and republicans for getting together and, ultimately, getting this job done. now, there's been a lot of discussion lately of the politics of this shutdown. but let's be clear, there are no winners here. these last few weeks have inflicted completely unnecessary damage on our economy. we don't know yet the full scope of the damage, but every analyst out there believes it slowed our growth. we know that families have gone without paychecks or services

they depend on, we know that potential home buyers have gotten fewer mortgages and small business loans have been put on hold, we know that consumers have cut back on spending and that half of all ceos say that the shutdown and the threat of shutdown set back their plans to hire over the next six months. we know that just the threat of default, of america not paying all the bills that we owe on time, increased our borrowing costs which adds to our deficit. and, of course, we know that the american people's frustration with what goes on in this town has never been higher. that's not a surprise. that the american people are completely fed up with washington. at a moment when our economic recovery demands more jobs, more

momentum, we've got yet another self-inflicted crisis that set our economy back. and for what? there was no economic rationale for all of this. over the past four years, our economy's been growing, our businesses have been creating jobs, and our deficits have been cut in half. we hear some members who pushed for the shutdown say they were doing it to save the american economy. but nothing has done more to undermine our economy these past three years than the kind of tactics that create these manufactured crises. and you don't have to take my word for it. the agency that put america's credit rating on watch the other day explicitly cited all of

this, saying that our economy remains more dynamic and resilient than other advanced economies and that the only thing putting us at risk is, and i'm quoting here, repeated brinksmanship. that's what the credit rating agency said. that wasn't a political statement. that was an analysis of what's hurting our economy. by people whose job it is to analyze these things. that also happens to be the view of our diplomats who have been hearing from their counterparts internationally. some of the same folks who pushed for the shutdown and threatened default claimed their actions were needed to get america back on the right track. to make sure we're strong. but probably nothing has done more damage to america's credibility in the world, our standing with other countries, than the spectacle that we've seen these past several weeks.

it's encouraged our enemies, it's emboldened our competitors, and it's depressed our friends who look to us for steady leadership. now, the good news is we'll bounce back from this. we always do. america is the bedrock of the global economy for a reason. we are the indispensable nation that the rest of the world looks to as the safest and most reliable place to invest. something that's made it easier for generations of americans to investigation in their -- invest in their own futures. we have earned that responsibility over more than two centuries because of the dynamism of our economy and our entrepreneurs, the productivity of our workers but also because we keep our word, and we meet our obligations. that's what full faith and credit means.

you can count on us. and today i want our people and our businesses and the rest of the world to know that the full faith and credit of the united states remains unquestioned. but all my friends in congress, understand that how business is done in this town has to change. because we've all got a lot of work to do on behalf of the american people, and that includes the hard work of regaining their trust. our system of self-government doesn't function without it. and now that the government is reopened and this threat to our economy is removed, all of us need to stop focusing on the lobbyists and the bloggers and the talking heads on radio and the professional activists who profit from conflict and focus on what the majority of americans sent us here to do. and that's grow this economy,

create good jobs, strengthen the middle class, educate our kids, lay the foundation for broad-based prosperity and get our fiscal house in order for the long haul. that's why we're here. that should be our focus. now, that won't be easy. we all know that we have divided government right now. there's a lot of noise out there. and the pressure from the extremes affect how a lot of members of congress see, you know, the day-to-day work that's supposed to be done here. and let's face it, the american people don't see every issue the same way. but that doesn't mean we can't make progress. and when we disagree, we don't have to suggest that the other side doesn't love this country or believe in free enterprise or all the other rhetoric that seems to get worse every single

year. if we disagree on something, we can move on and focus on the things we agree on. and get some stuff done. let me be specific about three places where i believe we can make progress right now. first, in the coming days and weeks we should sit down and pursue a balanced approach to a responsible budget. a budget that grows our economy faster and shrinks our long-term deficits further. at the beginning of this year, that's what both democrats and republicans committed to doing. the senate passed a budget, house passed a budget, they're supposed to come together and negotiate. and had one side not decided to pursue a strategy of

brinksmanship, each side could have gotten together and figured out how do we shape a budget that provides certainty to businesses and people who rely on government, provides certainty to investors in our economy, and we'd be growing faster right now. now, the good news is that the legislation i signed yesterday now requires congress to do exactly that. what it could have been doing all along. and we shouldn't approach this process of creating a budget as an ideological exercise. just cutting for the sake of cutting. the issue's not growth versus fiscal responsibility, we need both. we need a budget that deals with the issues that most americans are focused on; creating more good jobs that pay better wages. and remember, the deficit is getting smaller, not bigger.

it's going down faster than it has in the last 50 years. the challenge we have right now are not short-term deficits, it's the long-term obligations that we have around things like medicare and social security. we want to make sure those are there for future generations. so the key now is a budget that cuts out the things that we don't need, closes corporate tax loopholes that don't help create jobs and frees up resources for the things that do help us grow like education and infrastructure and research. and these things historically have not been partisan. and this shouldn't be as difficult as it's been in past years because we already spend less than we did a few years ago. our deficits are half of what they were a few years ago.

the debt problems we have now are long term, and we can address them without shortchanging our kids or shortchanging our grandkids or weakening the security that current generations have earned from their hard work. so that's number one. number two, we should finish fixing the job of our -- let me say that again. number two, we should finish the job of fixing our broken immigration system. there's already a broad coalition across america that's behind this effort of comprehensive immigration reform from business leaders to faith leaders to law enforcement. in fact, the senate has already passed a bill with strong bipartisan support that would make the biggest commitment to border security in our history, would modernize our legal

immigration system, make sure everyone plays by the same rules, makes sure that folks who came here illegally have to pay a fine, pay back taxes, meet their responsibilities. that bill's are passed the senate. already passed the senate. and economists estimate that if that bill becomes law, our economy would be 5% larger two decades from now. that's $1.4 trillion in new economic growth. the majority of americans think this is the right thing to do. and it's sitting there waiting for the house to pass it. now, if the house has ideas on how to improve the senate bill, let's hear 'em. let's start the negotiations. but let's not leave this problem to keep festering for another year or two years or three years. this can and should get done by the end of this year.

number three, we should pass a farm bill, one that american farmers and ranchers can depend on, one that protects vulnerable children and adults in times of need. one that gives rural communities opportunities to grow and the long-term certainty that they deserve. again, the senate's already passed a solid bipartisan bill. it's got support from democrats and republicans. it's sitting in the house waiting for passage. if house republicans have ideas that they think would improve the farm bill, let's see 'em. let's negotiate. what are we waiting for? let's get this done. so passing a budget, immigration reform, farm bill, those are three specific things that would make a huge difference in our

economy right now. and we could get 'em done by the end of the year. if our focus is on what's good for the american people. and that's just the big stuff. there are all kinds of other things that we could be doing that don't get as much attention. i understand we will not suddenly agree on everything now that the cloud of crisis has passed. democrats and republicans are far apart on a lot of issues. and i recognize there are folks on the other side who think that my policies are misguided. that's putting it mildly. that's okay. that's democracy. that's how it works. we can debate those differences vigorously, passionately, in good faith through the normal democratic process.

and sometimes we'll be just too far apart to forge an agreement. but that should not hold back our efforts in areas where we do agree. we shouldn't fail to act on areas that we do agree or could agree just because we don't think it's good politics. just because the extremes in our party don't like the word "compromise." i will look for willing partners wherever i can to get important work done. and there's no good reason why we can't govern responsibly. despite our differences. without lurching from manufactured crisis to manufactured crisis. in fact, one of the things that

i hope all of us have learned these past few weeks is that it turns out smart, effective government is important. it matters. i think the american people during this shutdown had a chance to get some idea of all the things large and small that government does that make a difference in. and we hear all the time about how government is the problem. well, it turns out we rely on it in a whole lot of ways. not only does it keep us strong through our military and our law enforcement, it plays a vital role in caring for our seniors and our veterans, educating our kids, being sure our workers are trained for the jobs that are being created, arming our businesses with the best science and technology so they can compete with companies from

other countries. it plays a key role in keeping our food and our toys and our workplaces safe. it helps folks rebuild after a storm. it conserves our natural resources. it finances start-ups. it helps to sell our products overseas. it provides security to our dip to mats abroad. diplomats abroad. so let's work together to make government work better. instead of treating it like an enemy or purposely making it work worse. tsa not what the founders -- that's not what the founders of this nation envisioned when they gave us the gift of self-government. you don't like a particular policy or a particular president? then argue for your position. go out there and win an election. push to change it.

but don't break it. don't break what our predecessors spent over two centuries building. that's not being faithful to what this country's about. that brings me to one last point. i've got a simple message for all the dedicated and patriotic federal workers who have either worked without pay or have been forced off the job without pay these past few weeks including most of by own staff. thank you. thanks for your service. welcome back. what you do is important. it matters. you defend our country overseas, you deliver benefits to our troops who have earned them when they come home, you guard our

borders, you protect our civil rights, you help businesses grow and gain footholds in overseas markets, you protect the air we breathe and the water our children drink, and you push the boundaries of science and space, and you guide hundreds of thousands of people each day through the glories of this country. thank you. what you do is important. don't let anybody else tell you different. especially the young people who come to this city to serve. believe that it matters. well, you know what? you're right, it does. and those of us who have the privilege to serve this country have an obligation to do our job as best we can. we come from different parties, but we are americans first. and that's why disagreement cannot mean dysfunction.

it can't degenerate into hatred. the american people's hopes and dreams are what matters, not ours. our obligations are to them. our regard for them compels us all, democrats and republicans, to cooperate and compromise and act in the best interests of our nation. one nation, under god, indivisible with liberty and justice for all. thanks very much. jon: president obama there speaking inside the white house to a group of primarily white house employees, and no questions, obviously, taken there at the white house. the president spoke for about 15 minutes about his awe parent

victory in this debt ceiling and government shutdown fight. so let's talk about it with senator marco rubio from florida. he joins me now. the president, obviously, got the debt limit raised. we're bumping up against $17 trillion, and he suggested that lifting that debt limit is just sort of an ordinary function of government like, you know, keeping airports open or building highways. >> well, that's the fundamental problem. i think that people are all focused on this washington-manufactured shutdown and washington-manufactured drama of the month that we've just overcome last night, but i think we can't forget the real crisis is still there. the real crisis, by the way, is that the american dream is eroding. you have millions of people who feel like they're running in place, this is no longer a country where through hard work everyone can get ahead, and one of the causes is the $17 trillion national debt that continues to grow. i've now been here three years, nothing has been done to seriously address that. and nothing was done last night to seriously address that. so once again we've put off this

major issue that only continues to grow and gets harder to solve -- jon: you voted, no, is that why? >> i did. that's why. acame here to make a difference, and i think if you look back at this era in american history if, in fact, we continue on the path we're on, we're going to lose the american dream, we're going to lose what makes america special, and we're going to have to answer for that. all of us, republicans and democrats, will be condemned for sitting around and doing nothing about this issue, and last was another opportunity to seriously address this problem that we face. jon: here's how "the washington post" put it, it said: president obama fresh off a trouncing of congressional republicans over the government shutdown, plans to renew his push for immigration legislation in the house. was it a trouncing, first of all? >> well, again, it depends on what you think we're paying for. if, in fact, this is about scoring political points and imprettiesing journalists and columnists, i'm sure the white house feels pretty good this

morning. but this is about making sure that america is moving in the right direction and, in fact, we save the american dream, what makes our country different. last night was another loss and one step towards losing even more. again, here's what we need to remember, with all the drama over the last three weeks, that's -- all that could be solved by one vote. there will come a day when we're going to have a real debt crisis not because congress can pass a bill, but because no one will lend us money. that day is coming if we do nothing. jon: here is what the president had to say about deficits and the size of them. i want to play this and get your reaction. >> the deficit is getting smaller, not bigger. it's going down faster than it has in the last 50 years. the challenge we have right now are not short-term deficits, it's the long-term obligations that we have around things like medicare and social security. jon: so the deficit is shrinking in large part because of the

sequester which the president opposed. >> yeah. and two things to point out. imagine if you lived off your credit card, $1,000 a month, and this year you're only living on $800 a month, would that make you feel better? you still have an unsustainable problem in place. the second thing is the president correctly points out the drivers of the long-term debt are medicare and social security, but he's virtually against any idea to fix those things because his own party refuses to consider any structural reforms no -- to those programs, and they accuse anyone who wants to of being anti-senior. the president spoke about the divisive language, he's one of the leading causes of it. they have outright demonized anyone who disagrees with their position using a level of visit roll and descriptive terms, negative descriptive terms against their political opponents. in the president has used the politics of division for the better part of five years to further his agenda, to get reelected and on this conflict we faced now.

jon: you you have been one of te leading proponents of immigration reform in the senate. has the white house contacted you, and will you work -- >> well, look, immigration remains a big deal in this country that needs to be addressed. now, the house has passed a bill -- the senate will consider it, and we need to give them time and space to figure out what they can support. i do hi we need to be realistic. i think there are areas where a vast majority of americans agree with on, the -- agree on, the need to enforce our existing immigration laws. there are other areas that are going to be more difficult to find consensus on, quite frankly more difficult now given the lack of trust in the government and the way this white house and the democrats have behaved over the last three weeks. we cannot ignore that is going to be a factor in the all of this. but let's give the house an opportunity to sea what, be anything, they can support, and then there can be a further consideration about it. i certainly think the president's behavior has made it harder, not easier. jon: one final question. you have raised great concerns

about iran and the charm offensive that seems to be to going on with that country. what do you say to our state department about dealing with the iranians? >> i think we should talk to anyone who wants to talk. i think we need to be realistic about who we're talking to. this is a government that is trying to build a nuclear weapon. i don't care what they say, why else would they informs so much time -- invest so much time and money on developing long-range missiles? they want to put a rocket, a nuclear warhead on a rocket that can one day threaten the united states. that's why we cannot allow iran to have any capability to enrich. they don't have a right, and they shouldn't have one. they have a right to a civilian nuclear program, but not a right to enrichment, and we should not lift any sanctions unless they agree to get rid of their enrichment capability and, in fact, we should increase sanctions in the face of what's happening there now. jon: senator marco rubio, republican from florida, thank you. >> thank you. jenna: well, jon, iran certainly is a big topic, and although we've been focusing mainly on

the government shutdown this week, there's been two rounds of new negotiations that the united states has been a part of in geneva with iran, and just want to give you one headline from this. the associated press, this is their headline: white house, iran's nuclear proposal very useful. the headlines coming out of this meeting very positive. john bolton is a fox news contributor and joins us now. that's a little background, interesting to hear senator rubio talk a little bit about what iran can and not do. what are your thoughts about the negotiations so far and what we may allow them? >> look, i don't think you can trust the regime in tehran with any aspect of a nuclear program, and i think it was a key cob session by president obama -- concession by president obama to say that they were entitled to a peaceful nuclear program. they've lied about what they've been doing for 20 years. there's no reason to believe their commitment that their program is peaceful will mean other than the other commitments they've made before. i think until you have a different regime there, the idea of allowing them to have any

kind of nuclear program is inherently dangerous, and i think the obama administration and our european friends are about to make a critical concession to allow iran to continue its enrichment program which will legitimize and validate that program and lead the way to iran being able to break out and weapon weaponize at a time entirely of their own choosing. jenna: talk to us about a peaceful nuclear program, because our viewers are going to hear that from the administration, republicans are onboard with some of them as well saying, okay, you can't enrich past 20%, but if you want a peaceful program that will give you energy, that's where we can negotiate. >> yeah. a big mistake. and, you know, this -- the short lesson in nuclear fizz bics is this: if you enrich to reactor grade 3-5% of the u235 isotope, you've gone 70% of the way toward enriching to weapons-grade levels. it's a matter of a few weeks, just depends on the number of centrifuges you have.

that's why for ten years the europeans have insisted that as a prerequisite of any deal iran give up all enrichment-related activity. that's what the resolutions of the u.n. security council have consistently said. to give that up is to give iran something it has resisted for ten years. it legitimizes their program, it's a huge win for iran, and they're going to get relief from the economic sanctions. what could go wrong? jenna: what would real progress look like then in these talks? >> i don't think you're going to have real progress in these talks. i think iran knows exactly what its objective is. it wants relief from the economic sanctions, it's going to make superficial concessions about its nuclear program. i think the line they're going to take in particular is we will allow enhanced inspects by the international atomic inspection agency of the facilities we already know about, and we really know what there is to know about those facilities now, so saying that is not a real concession.

jenna: let's bridge in these -- bring in these big stories we're watching, what do you think is the biggest threat to our national security, the brinksmanship in washington, d.c. or a nuclear iran? >> i think, clearly, a nuclear iran. what's happening in washington is an argument about parliamentary tactics, and it doesn't change the reality. for republicans to get what they want, what they all want -- repeal of obamacare -- they need to win control of the senate and of the presidency. until that happens, we're not going to repeal obamacare. jenna: ambassador bolton, thank you. >> thank you. jenna: jon? jon: right now the federal government is back open for business, but the president just said americans are now fed up with washington. so who faces the fallout from a 16-day shutdown and all of this arguing over the debt ceiling? we'll talk about the political winners and losers in all of this, coming up. and new information on the terrifying flights we first told you about yesterday. passengers describe smoke filling the cabin, fearing for their lives, maybe even the

plane going down after an engine blows up into a fireball. what the ntsb is now learning. ♪ ho ho ho [ female announuncer ] at 100 calories, not all food choices add up. some are giant. some not so giant. when managing your weight, bigger is always better. ♪ ho ho ho ♪ green giant

jenna: some new stories to come this hour. we'll take a look at wall street. the big board. you can see the stock market reacting in part to the federal government reopening. a lot of this has to do with earnings reports as welcoming

out. of we'll break it down in a few moments. the latest on a five-alarm fire. emergency crews rushing to save lives and stop flames from spreading in a northern california apartment complex. we'll take you there. new information on a terrifying flight. an engine exploding in midair and a cabin filling with smoke. now the ntsb weighs in. jon? jon: well, today, jenna, as the government reopens after 16 days, some conservatives are expressing outrage. they wanted republicans in congress to stand firm and use the shut down and force changes to obamacare but this latest budget crisis also divided traditional allies. the business community, usually sides with the gop. both looking for lower taxes and less government regulation. but with the economy taking a hit in this shutdown some business leaders are voicing frustration with tea party republicans especially. so, who are the political winners and losers in all of this? joining us now, a.b. stoddard, associate editor and columnist for "the hill", and jonah

goldberg, editor-at-large for nationalreview.online and a fox news contributor. i have taken their poll and found out who they think the winners and losers are but let's play for you what the president's thoughts on all of this are. >> let's be clear, there are no winners here. these last few weeks inflicted completely unnecessary damage on our economy. we don't know yet the full scope of the damage but every analyst out there believes it slowed our growth. >> all right. so the president says there are no winners here. ab, to you first, does he come out of this, did the president come out of this damaged? >> i think because the president did not lose, he won, i think that losing this would have been a very tough moment for him. it has been a very rocky year where he lost that first year out of re-election which is critical before you become a lame duck president. he lost it to a whole bunch of

scandals with the irs around benghazi. jon: which are still going on. >> debate over syria. things bottom in the way of him trying to move his agenda. he has been in the fiscal battle that will put it off another three months. the fact he stood his ground and didn't lose this debate helps him if he does the right thing going forward and tries to work genuinely across the aisle for some kind of a fiscal deal, then it becomes a win for him. i think he clearly did not lose as much as the republicans. jon: when the president is able, to, you know, stand up in the white house dining room and make this 20 minute speech, say, ah-ha, i told you so, doesn't he sort of win? >> he certainly enjoys it. that is one of his favorite things to do. i basically agree with ab, certainly in the sense by beltway scoring he lost the least among everybody. but at the same time he is president of the united states. as ab was saying he had a string of things seems like politics was out of his control, from

syria to scandals and all the rest and i think lingering, there is a lingering sense this is a president who can not get control on washington as he campaigned as a guy who could. i don't think necessarily that this is good. i think obama is right. there are no true winners. jon: you two are unusual in this agreement that john boehner comes out as a winner. >> he won because he didn't lose. he never had a more strength in his conference than he does now since he became speaker. he actually led everyone to the brink. told them, showed them this wasn't possible and instead of telling them it wasn't possible. he never said no. he let it go as far as he could and he said we wouldn't default on the debt. everyone knew they had until the 17th of october to wage the fight. in the end it lost. he tried and tried to help conservatives in his rank-and-file win what they wanted to win and it wasn't possible. they truly respect him now where they didn't before.

they're not ousting him to be another speaker. he lives to see another day. i don't think he can let the government shut down again. for now i don't think he a loser. jon: jonah? >> i think that is basically right. he gave the tea party caucus what they wanted and that was something that was not a lot of them what they expected to get from him. look it, my wife's from alaska, as they say up there, if three you of us are chased by a grizzly bear i don't need to be faster than the bear, i need to be faster than you guys. john boehner in a lot of ways was faster than mitch mcconnell and a lot of other people. he stayed away from the blame in all of this in a way a lot of other people didn't. jon: what about this rift among businesses who are unhappy with some in the gop over all of this. >> this is actually quite serious. the chamber of the commerce and business roundtable and wholesalers and retailers and manufacture you ares get together and put some serious grassroots, energy and real resources toward fighting these outside groups on the far right,

and trying to create primary challenges for people who keep saying, no, that is actually going to be, not only a bigger, deeper division in the republican party, but a real change i think in the makeup of the congress if they succeed. jon: very quickly, jonah, does the tea party come out stronger or weaker? >> comes out more galvanized but more radioactive outside of its own universe. jon: jonah goldberg,. a.b. stoddard. good to be you with you in real life. come back together. jenna. jenna: an inferno rips through an apartment complex, sending flames through the roof. crews are fighting fires for several hours with several people treated for injuries. we'll keep you updated what is going on outside in california. stocks are falling as investors look for a process and good news. of course the government shutdown is over. so why aren't we seeing a rally and what is the general effect on the economy overall, these last 16 days. mike santoli is here. what it means for your bottom line, next.

jon: an early morning fire rages through an apartment complex in redwood city, california. look at those flames. they're shooting through the upper floors, sending a plume of thick black smoke across the sky. four people were taken to the hospital with injuries. one is in serious condition. fortunately smoke detectors did sound the alarm alerting many of the residents to get out in time. jenna: the lights are back on, the doors are open after a 16-day shutdown, kind of like it never happened, right? consumer confidence took a nosedive during the shutdown with the biggest plunge since the collapse of lehman brothers back in 2008. analysts suggest economic ripples are being felt around the world which may surprise you that we're all back to business as usual.

mike santoli, senior columnist for yahoo! finance can help us sort through this. 16 days the government was shutdown. how much economic impact was that? >> it is obviously unwelcome and a drag we didn't need but i don't think it is the crippling for the recovery. 10 of billions of dollars in lost output or income. boeing unnoticed retailers have not been able to get all the goods or do seasonal hiring because of federal inspectors and thinks like that. so i think we'll feel it for a few months but i don't think it derails the economy. jenna: how long does it take to catch up? double the time you're shut down to recover? >> i think when it comes to the supply chain stuff i think it will be a lot of indigestion for a while, for weeks. i don't think in terms of lost income it will be that big of a deal. i would expect consumer confidence to rebound. usually when you get the news-driven plunges in confidence that kind of recovers but doesn't really tell us much what it means for spending

intentions. jenna: i like the indigestion description. we all can relate to that the last 16 days. you hear a lot of different things when the government shuts down. gridlock is good for wall street. great things, stocks are doing fine. or you get the opposite, uncertainty is horrible for investors. so which is it? >> it is kind of both and i think the market kind of saw there was less ultimate uncertainty than it seemed. the market did not really panic in advance of this. from the day speaker boehner said we won't default. i'm willing to put that to a vote on the floor, i think that kind of got the cataclysm risk out of people's heads. we got our relief rally on wall street for the deal, even before the deal happened. so i don't think it really is up and away from here. we have to figure out how business is doing. jenna: looking at s&p's note back from 2011 when, they downgraded the united states. >> yes. jenna: you continued to think, oh, it has to do with the economy. it is really interesting what they wrote. they wrote it was part of

dysfunction in washington they were reacting to. >> exactly. jenna: regardless of a deal now, some could argue dysfunction remains. how much of a threat is that to our creditworthiness? >> it is abiding risk. fitch when they put us on outlook downgrade risk at this point, it's a political evaluation. it is not about the financial wherewithal to the country, the ability to cover the debts and that is something still here. blackrock, the big investment firm, has a sovereign risk rating where they have a category called, willingness to pay. we actually got dinged on willingness to pay recently. look we have a framework to try to come up with a deal. i don't think we've proven we're ready for that. jenna: got dinged with lack of willingness to pay our credit score would fall. >> that's right. jenna: seeing something like that is there an indication there are more downgrades potentially to come? >> it is an indication. what is fascinating, it has not manifested itself in the way of higher borrowing costs for government. >> the president just said that, we're seeing higher borrowing

costs. >> it hasn't really. they have reverse effect people look for safety. that often means treasury bonds. if we're not going to defought, if the debt ceiling was lifted, that means it is a safe place to be. interestingly, rates are down. it will drag mortgage rates down a loyal bit and give support to sort of stalling housing recovery. jenna: real quick final question. broadly speaking from your reporting, what is the general consensus on the economy? forget everything happening in washington, d.c. but for remaining months of this year. what does it look like? >> still slow. we did not have the acceleration point people had in the second half that keeps getting pushed out. >> mike, great to see you. could cover ad lot of ground as always. appreciate it. jon? jon: we have more video of a terrifying flight, smoke filling a cabin thousands of feet in the air as pieces of the engine blowout. now the national transportation safety board is taking a look. they have never information on what went wrong.

the government shutdown is officially over but the fallout is not. house speaker john boehner fielding a lots of criticism over the 16-day shutdown. we'll talk about whether he could come out ahead in the end.

jon: we told you about a high-profile murder trial getting underway right now. a utah doctor accused of killing his wife with a cocktail of prescription drugs. harris faulkner is live at the breaking newsdesk with an update. harris. >> reporter: they're in court right now, jon. let's take a live look inside the courtroom in utah county. dr. mckneel is in glasses and seated. they toggle the and forth. moments ago prosecutors began talking about what the medical examiner found in michelle mckneel's body, a powerful mix

of drugs, valium, ambien. prosecutors say martin mcneill used medical knowledge to take advantage of her recent weakness while recuperating from surgery. he acquired the drugs and dispensed them to his wife in a lethal dose. we heard in the courtroom moments ago the doctor went right back to work right away after her death. prosecutors say he told coworkers he was doing fine and things happen for a reason. they noticed he was wearing a different wedding band. he told him it was an older ring. those are some early details starting to come out for potential jurors in early part of this trial right now. at the heart of the accusations against the doctor the prosecution says after his wife's body was found inside the family's home, martin mcneill tried to hinder the investigation to deceive a 911 operator, and staged the scene as an accident. michelle macneil, beautiful

mother of eight children, former beauty again was found slumped over the bathtub. prosecutors say her death happened because her husband wanted to continue an extramarital affair. he said it is not true. he pleaded not guilty to all the charges. some of the couple's children are expected to testify against their dad. he is found guilty, he faces life in prison. jon? jon: what a courtroom drama. thank you, harris. >> like a movie, it is, thanks. >> shortly after the big explosion went off lit the side of the airplane it poured in. all the events on the side of the aircraft was just pouring smoke. full, white smoke. before you knew it you couldn't really see. that is when every one got really scared. jenna: a passenger describing the terrifying scene on board a spirit airlines flight on tuesday. now the national transportation safety board is investigating and confirms a serious engine failure on the plane. casey stiegel with details from dallas where the flight

originated. casey? >> reporter: jenna, can you imagine? flight 165 just left dfw airport headed to atlanta. it was a eight 319 packed with 150 people. something went terribly wrong. a passenger on the plane using his smartphone as you see here to record the hazy, smoke-filled cabin. passengers on board the jet, people were texting their loved ones trying to make calls because they were sure they were not going to make it back to the ground safely. after you hear what they experienced. listen. >> and then probably, maybe, three or four minutes later, this huge explosion goes, bam. we saw the flames come up the side of the plane which lit up the whole inside of the plane. it looked like the inside of the plane was on fire. of course it was on the outside engine. the plane started shaking violently. after that the plane started filling up with smoke.

>> reporter: fireballs blowing past their windows. that plane circled and landed back at dfw safely, no injuries. the ntsb says that the aircraft suffered what is known as an uncontained engine failure. that is especially dangerous because it is when pieces of the engine fly out of the engine housing itself and that can easily damage the fuselage because you have flying debris. a spokesperson for the discount carrier saying in a statement to fox news, and i'm quoting here, one engine was shut down which is normal procedure under these circumstances. however, all of our aircraft are designed to safely operate effectively on one engine if necessary. we should mention that spirit airlines has a very clean safety record. no real major incidents to report. those people certainly grateful, jenna. jenna: absolutely. casey, thank you. >> reporter: yeah. jon: well, as the focus shifts from the shutdown standoff, the white house now facing some serious questions about the

disasterous obamacare rollout. some are calling for health and human services secretary kathleen sebelius to resign. joe trippi weighs in, just ahead. scientists reveal dramatic new alzheimer's research today. could there be a treatment i love bold flavors! i'd love it if you'd open the chute! [ male announcer ] progresso. surprisingly bold flavor for a heart healthy soup.

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jon: big developments on our top stories and breaking news this hour. jenna: few reaction from the white house and capitol hill after a budget deal ends the government shutdown, but what's being done to stop another crisis just a few months from now? plus, what effect will the shutdown have on speaker of the house john john boehner? is he coming out a winner or loser? and growing calls for kathleen sebelius to step down as health and human services secretary over the troubled rollout of obamacare. should she stay or should she go? we'll go in depth. ♪ ♪ jenna: just a few hours old, new fallout from the budget battle

amid fears it could happen again and soon. hi, everybody, i'm jenna lee. i'm not sure, jon, if we can handle it soon again. jon i think they did kick the can down the road but maybe not far enough down the road. i'm jon scott in our washington newsroom today. welcome to the second hour of "happening now." we are live on capitol hill one day after the deal that ended our government shutdown and brought the country back from the brink of default at least for a few months. president obama is now calling for a balanced approach, he says, for responsible budget talks in the coming weeks because the latest standoff damaged both sides and hurt america, he says. >> there's been a lot of discussion lately of the politics of this shutdown. but let's be clear, there are no winners here. these last few weeks have inflicted completely unnecessary damage on our economy. jon: republican senator marco rubio weighed in a little bit ago on "happening now." >> all the drama around here

other the last three weeks, all that could be solved by one vote. there will come a day when we are going to have a real debt crisis not because congress can't pass a bill, but because no one will lend us money. that day is coming if we do nothing. jon: chief white house correspondent ed henry is live with more on all of this. ed, the president took a tougher tone this morning. what did he say about the path forward? >> reporter: he did, jon, because it's interesting, last night when he came out to the briefing room, he's suggesting let's turn the page, let's come together, and he said that again today. but he also did have some tough words for republicans starting his remarks by saying the whole reason the government got reopened was because of democrats and, in his words, responsible republicans, a little blast at the ted cruzs and mike lees and others who are battling him on all of this. they've said thai not going to celebrate about a deal that many believe the president got the better share of, but vice president was out today greeting workers at the environmental protection agency, maybe not

celebrating, but hugs and kisses. they're clearly happy here that this whole drama is over at least for now. the can kicked down the road for a few months, the president saying in his remarks here at the white house that there's three areas he hopes to work with republicans on not just a broader budget deal, but also broader immigration reform as well as the farm bill. take a listen to the president. >> the american people are completely fed up with washington. and the moment when our economic recovery demands more jobs, more momentum, we've got yet another self-inflicted crisis that's set our economy back. and for what? there was no economic rationale for all of this. >> reporter: now, where the president was balanced was in saying that all sides took a hit here and that everybody, democrats, republicans, have to earn back the trust of the american people because of that anger towards washington.

the key, of course, in the weeks ahead will be not just words from the presidentover the republican leaders, but actual actions on both sides that are going to kind of bridge this divide or not, jon. jon: what the president didn't really say is that much of this fight was over obamacare, and republicans are saying the fight against obamacare is not over. >> reporter: you're right. and it's interesting, because in his news conference last week the president suggested he'd be open to what he thinks are reasonable changes to the health care law like perhaps delaying that medical device tax. but that was not one of the three areas that he said he'd be willing to work with republicans on in the days ahead. that wasn't an all-inclusive list, maybe he'll add health care to it later. but republicans like mike lee are not necessarily in a compromising mood right now. take a listen. >> this is really just the end of the beginning. this is a fight that's going to continue. you know, when a publication like "the chicago tribune", the president's hometown newspaper, has come out and said that, like us, they believe that we should

have a one-year timeout on obamacare, this law's not ready to be implemented, you know something's wrong. >> reporter: now, interesting because if you go back to the 2012 campaign, the president said many times if he won re-election, he thought he'd break what he called the republican fever of opposition to him. there are some suggestions now that folks like mike lee were only enflamed more by this battle and are insisting thai going to continue to fight the health care law in the days ahead, both of these budget negotiations are going to be going up leading into mid december and beyond, jon. jon: well, the sun is out over the white house, things are looking a bit brighter, i guess, with the government open again -- >> reporter: slightly. jon: -- and the ability to spend money. we'll see what happens in the months ahead. thank you. >> reporter: good to have you here. jenna: and a big question about whether things are brighter for house speaker john boehner taking hits from all sides as he tried to hold the republican party together with a short-term deal now in place, mr. boehner says the gop did everything it

could to negotiate but conceding it just wasn't enough. >> well, listen, we've been locked in a fight over here trying to bring government down to size, trying to do our best to obamacare. we fought the good fight, we just didn't win. jenna: speaker boehner there in a radio interview. carl cameron's live in washington with more on this. carl? >> reporter: hi, jenna. well, now the question is whether or not any republicans could face a little backlash from the tea party for not having fought hard enough. some tea party groups are actually threatening to recruit primary challengers against the house and senate who voted for last night's deal. that would include both and house and gop leaders. mitch mcconnell is facing a challenge from a businessman in kentucky who's been hammering mcconnell for working with harry reid to avert a debt default. a lot of republicans don't actually see that way, but his primary challenger's certainly taking advantage of it. house speaker john boehner ultimately let the senate

measure pass the house. tea partiers are saying they're not really an with boehner because he gave them more than 45 votes to defund or repeal obamacare, and he pushed the shutdown showdown to the absolute brink. he could face a challenge in ohio next year, but there really are no tea party plans to challenge him as speak or, and that's even according to texas republican congressman who tries to topple mr. boehner as speaker at the beginning of this year and came up a few votes short. listen. >> i've heard so many people say that if speaker boehner does this, that or the other he's over, he's out, and if you remember, i was the only one that nominated somebody else last november and was by myself in january. we had 13. i'd be surprised to see enough stand up. >> reporter: 13 out of a house conference of 218 republicans. and so now forward they go, and mr. boehner and mr. mcconnell and tea party members of the house and senate have all said

the fight continues on obamacare, but the timetable is not conducive. the idea that the supercommittee is going to come up with a fix in december and pass something in january on another deadline for another goth shutdown is wishful thinking. jenna: wow. some good context there. carl, thank you. >> reporter: you bet. jon: so the shutdown standoff and fears of a default overshadowing another big political story really, the rollout of obamacare and massive problems with the insurances exchange web site. millions of folks have visited the site or tried to, but a fraction of them able to start enrollment, and an even smaller number able to finish the process. all of this has been sparking calls for the resignation of kathleen sebelius, the secretary of health and human services. some are saying she needs to take the responsibility for all of this trouble and simply step down. the white house stands behind her at this point. and "the new york times" reports

her family says she is not going anywhere. let's talk about it with joe trippi, former campaign manager for howard dean, also a fox news contributor. "the washington post" says that traffic to the obamacare web site dropped 88% in the first two weeks of october and less than half of 1% of the site's visitors successfully enrolled, joe. that is not a rounding -- a rousing success. >> no, it's not. and it's not glitches, it's a real problem and a real embarrassment, and i think that, you know, if they haven't fired the people who designed the web site, that's where a lot of -- well, there's plenty of things that need to be fixed, but that's where i'd start. i don't think, jon, that kathleen sebelius is going anywhere, though, for a lot of reasons. primarily, even if the president wanted her to leave -- and i don't believe he does -- but even if he wanted her to leave, here's the problem: you'd have to, he'd have to appoint a new

secretary. the new secretary would have to be confirmed by the u.s. senate giving ted cruz and senate lee lee -- senator mike lee and others the ability to hold that back or filibuster or hearings on obamacare and all -- i mean, it would just be a mess even if she, even if the president wanted her to leave, he doesn't want her to leave. it would create more problems than it would solve for him politically, i believe. jon: we just got an update on the situation in alaska. hard to believe, but alaska -- not a huge state in terms of population, but two people in alaska have signed up for obamacare. now, whether that's because they're the only two who want it or because they're the only two who have been able to manage the maze that that web site asks you to manage, but two people in an entire state, joe? >> well, no, but this is one of the points i've been making for

quite a while. if the problems that, you know, th gop used a lot of political capital to try to -- you know, on the government shutdown crisis on an issue that they say, look, there's so many problems with it, that everybody's going to be against this. and if they're right about that, you know, my view would be and, obviously, two people in alaska if that report's true is that kind of a problem, then by november 2014 this will be wrapped around the democratic party's neck and obama's neck, and they'll have those wins in the senate and in the house that they need to actually be able to do something to stop the law. jon: so if you were, if you were -- >> i'm sorry. jon: if you were a gop political adviser instead of a democratic political adviser, you would have suggested that they ignore the shutdown, you know, lift the debt ceiling and just let obamacare be an albatross for

the president? >> yeah. i mean, if you believe that these problems are going to continue like this, that's the natural -- i mean, that's the more logical way, i think, to get the american people on the side of wanting to change this. and i think you run the risk of going after kathleen sebelius and those looking, again, like obsessive -- you want her to resign. it's legitimate. they have the right to do that, these senators and others in congress do, but i think they continue to push where they don't need to. if this is as bad as they say it is. it's going to hurt democrats in november of 2014. today it's hurting republicans because of the strategy they imposed to try to defeat it -- jon: and it also seems like accepting her resignation would be tantamount on the part of the president to admitting that his program is not a good one, and he does -- is not going to say anything like that. >> and the hearings, the hearings to replace her, again,

what republicans could do with those hearings, i wouldn't do it if i was the president. jon: all right, joe trippi, good to talk to you. jenna: a question that surfaces today, jon, is will we be right back in the same situation a few short months from now? a bipartisan budget committee already trying to hammer out a long-term plan to make sure we're not. what lawmakers are saying after their first meeting and the way forward as well. during the shutdown, a ton of economic data went unreported and unanalyzed meaning we could end up with a massive data dump in a single day. what that could mean for the markets and your bottom line, coming up. ♪ ♪ had ooh, homemade soup! yeah...

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jon: so with a temporary spending fix in place, lawmakers from both parties are working now on a

long-term solution. they say a key element in the deal to reopen the government and raise the debt ceiling is that the senate and house form a bipartisan budget conference to iron out their differences. the committee's already talking, wrapping up its first meeting just a short time ago. >> the house passes a budget, the senate passes a budget, you come together to try to reconcile the differences. that's the way we're supposed to do things. >> our job is to find out what we can agree on, and we have agreed that we are going to look at everything in front of us and know that it's going to be a challenge, but we believe we can find common ground. >> [inaudible] what assurances can you give senator murray that you can get to yes if you keep negotiating? and we want to grow the economy, we think the budget process is the way to do that. i put a statement out last night that explains exactly my concerns. that speaks for itself. jon: well, as that committee gets to work and the government resumes operations, the markets are preparing for an avalanche

of new economic data, and for some reason the dow is down about 51 points right now. the past 17 days we have missed reports on retail sales, housing starts, industrial production, job openings and labor turnover. so far no word on when this onslaught of information is going to hit or even if it's going to be accurate. let's talk about it with jon hilsenrath, the chief economic correspondent for "the wall street journal." so government's been shut down, nobody's been pumping out these numbers -- >> right. jon: -- are they going to get them back? >> we're going to get the data over -- there's going to be a slew of it over the next few weeks, but as you and i were just talking about off camera, it's going to be an asterisk economy for the next couple of months, because they're doing surveys that they normally would have done earlier, and they're doing them now under unusual circumstances. it's going to be hard to read these things like employment reports and retail sales without being a little suspicious about how they might have been skewed by not having surveyors out there the way they normally do.

jon: well, the president's been complaining the government shutdown hurt the economy. is that going to be reflected in some of these numbers? >> well, it might be, but one of the things i think everybody has to keep in mind, it might have dented growth, say, in october to, but what we've seen after past shutdowns was bounceback. early in 1996 after the late 1995 shutdown, it might look like we were hit when this first batch of data comes through, but we could be looking back on it in three or four months and saying, oh, we're not in as bad a shape as we thought we were. jon: i was talking with dave asman from the fox business network. he suggested some of these government reports maybe weren't all that necessary, and you might be able to get them from private industry, you know, private business might be able to, you know, pick up the ball and do some of the same things the government is now paying to do. >> well, you know, i don't think the markets see it that way, you know? some of these reports like the unemployment rate, payroll

employment, i mean, markets hang on these things, and there's a lot of people out there pulling this data together on a regular basis. i think we would have a bit of a blind spot if we didn't at least have some of them. interestingly, the bureau of labor statistics suspended some of these reports in the face of the sequester, not the shut down, because they don't have the budget to do it. so the ones that aren't necessarily have already been thrown out window. jon: jon hillsen hilsenrath, thanks for your expertise. jenna: the man who says he believed he was acting in self-defense kills a suspected child rapist. now he's behind bars, so was he just protecting his neighbors and his family, or is he a dangerous vigilante? our legal panel weighs in on a very fascinating case coming up. plus, federal workers are going back to work after an epic budget battle, but not everything is quite business as usual. we'll show you why.

>> i never thought i would be excited to come back to work, but i am. and i realized i'm not ready for retirement. [laughter] >> so how has the shutdown affected you personally? >> well, money wise, definitely. i'm like a lot of other americans living paycheck to paycheck, and it really put a hurting on me. okay ladies, whenever you're ready. thank you. thank you. i got this. no, i'll get it! no, let me get this. seriously. hey, let me get it. ah, uh. i don't want you to pay for this. it's not happening, honey. let her get it. she got her safe driving bonus check from allstate last week. and it's her treat. what about a tip? oh, here's one... get an allstate agent. nice! [ female announcer ] switch today and get two safe driving bonus checks a year for driving safely. only from allstate. call an allstate agent and get a quote now. just another way allstate is changing car insurance for good. ♪ you have to let me know

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quick note, gentlemen, this town, this area does not have 24-hour police protection. it does not have a 24-hour response, so i just want to present that as maybe part of this. dan, what do you think? is this vigilante justice? >> there's a lot of facts that we don't know yet. acosta sanchez was 35, and he was indicted for having sex with a girl under the age of 15, and the murder defendant here did everything he could, it seemed. he notified the police, notified neighbors, he's on a security

camera from a neighbor going with the deceased sanchez to try to go to another person's home and call police. the question is at the time of the shooting, was there a reasonable belief of an imminent threat of harm from acosta sanchez that would justify his use of deadly force? he's using a self-defense claim, and the grand jury's considering that right now. jenna: there is a witness to the alleged murder, brian, and this witness says -- and this is a quote -- they're not commenting other than this to the press, the quote is: i didn't see a murder happen. that's as far as i'm going to go. >> listen, you know, it's not uncommon for police to get these things completely wrong. it happens every single day. they paint, you know, a picture about a case that is just simply not supported by the evidence. and let's talk about the evidence in this case. this guy, carlson, did not track down acosta sanchez. he's not a bounty hunter. he's not even a good samaritan who interjected during the commission of a felony. he's a guy that lived next to

this guy who is an admitted fugitive, and what did this finaltive do when he was reported to the police? he jumped in a river and tried to swim away. it wasn't until the next day when he came back that this incident occurred. so i don't know anything in this case supports a carjack of murder. jenna: going back to what actually happened at the, quote-unquote, murder, dan, you get an idea what the community was feeling. apparently, there's a lot of children in the community. one of the women in the community said we were really frightened because the guy's on the loose, and there's conflicting reports that maybe the police had lost him up to two times, they'd been trying to track this guy down and couldn't find him, so how does that figure into the case as well? >> you referred earlier to how there wasn't 24-hour police protection there, and that's common where the state police will cover certain areas where there's not enough population to pay for and sustain a 24-hour police department. here we have to look at the specific facts. there were four shots

reportedly, two struck acosta sanchez and killed him. how close in proximity was carlson when he fired his shotgun, and where were the injuries, what was the trajectory and what did other people hear. these are fact that is the grand jury has to consider. jenna: brian, just a quick final thought from you, could the police department in any way be liable for this situation because this man had eluded arrest and because they're not on 24/7? >> well, look, you know, you can't expect the police to be everywhere simultaneously, and the reality is we have money problems in this country, surprise. you know? we don't have resources to have law enforcement like we need them. but this is where the liability will be. if the only eyewitness says he didn't see a murder, this might be a case of false arrest, and that's where they maybe liable. jenna: that would be interesting to see if that, indeed, happens. dan and brian, great to have you both. thank you so much. >> thank you. jon: well, the shutdown is over, but the tea party might soon feel some heat over its tactics during the budget ball battle.

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♪ ♪ jenna: well, a whole lot happened on capitol hill since we last saw you yesterday.

here's just some of the back and forth among the major players. >> this has been a long, challenging few weeks for congress and for the country. it's my hope that today we can put some of those most urgent issues behind us. of after yesterday's events, the majority leader and i began a series of conversations about a way to get the government reopened and to prevent default. >> i'm proud to have worked with the members from the other side and on my side of the aisle, and this isn't the last crisis that we are going to go through, but i think we have the framework for the kind of bipartisanship that the american people need and want. >> getting caught up with whether it's the senate that should make the happen or the house that makes this happen, whether it's leader reid or the minority member mcconnell, that's not what the public really cares about. the news is that's coming out

today is that there's a deal. there's a deal. and that deal should give america hope. >> i want to make sure that all of my colleagues who worked so hard on it receive the kudos that they deserve for being willing to do what this body does too rarely, and that is for both sides to get together, come out of our partisan corners, stop fighting and start legislating. >> concluding this crisis is historic. let's be honest, this is pain inflicted on our nation for no good reason and not make, we cannot, cannot make the same mistake again. >> i want to thank the leadership for coming together and getting this done. hopefully next time it won't be in the 11th hour.

one of the things that i said throughout this process is we've got to get out of the habit of governing during crisis. >> the unnecessary shutdown america has been enduring for 16 days comes to an end. thank you, speaker boehner, for finally allowing a majority of house members to reopen the government and avoid a default that we have -- [inaudible] >> i remain inspired because the people all over this country who rose up and made d.c. listen, the house of representatives listened, and i'm confident in time the united states senate will as well. jenna: well, with the next round of budget talks already beginning, this conversation is far from over, and now it's back to work for hundreds of thousands of federal workers as employees in in d.c. and arounde country -- including those who work in our national parks --

are returning to their jobs. getting things up and running again might not be quite as simple or as easy as it seems, like flipping a light switch. molly henneberg is live from washington with more on all of this. molly? >> reporter: hi, jenna. there are logistical challenges like removing barricades, reopening offices, getting through two weeks of backlog work and e-mails and phone calls, and some of that can be done wright away. some of it will take a while, also it'll take time to restart government training programs, government contracts with outside private organizations, scientific trials and research, that kind of thing. and it's not cheap. >> it costs money to close government, and it costs money to open government, and these are costs that are additional expenses. so we'll see over the course of the next couple of days. >> reporter: money that likely will come from taxpayer dollars given to fund each department and/or agency. many federal employees were alerted overnight that they were

supposed to come to work today. some say the 16 days off wasn't so bad, but others are feeling the financial pinch. >> i got an e-mail at 1:30 this morning. >> so were you ready? >> um, yeah, i was. i mean, i have two little children, so it was hard. [laughter] >> i'm an american who lives paycheck to paycheck, and it put a hurting on me. >> i know i would not like it all the time, but i kind of took the time and got to do some things i've always wanted to do in the city. >> reporter: the deal last night says that all government workers whether they were furloughed or had to stay on the job without pay will get paid for the last two weeks, but it's unclear when they'll get paid. jenna: i bet they're certainly waiting for that, molly, thank you. jon: so the budget battle that pushed the country to the brink of default is now creating new troubles for the gop. the longtime political ally of

american business now at odds with in the party. the chamber of commerce directing most of its anger at tea party conservatives. here's a quote. bruce joston, the chamber's top lobbyists, says flirting with default is just plain stupid. to republicans who tried to use the budget battle to unravel the health care law, they have accomplished nothing. but other business leaders approve of the tactics. the chairman and see i don't have of titan international says he's concerned congressional republicans are not focused enough on controlling the federal bureaucracy. saying, quote: it's like a cancer, it just keeps growing, he said. the house is doing a pretty good job. the tea party in 2014 is going to be stronger than they've ever been. so which is it? joining me now, angela mcglowan, a fox news political analyst. did this whole shutdown drama and the battle over the debt ceiling, did it help or hurt the

tea party? >> it helped the tea party, it helped the base, it's galvanized the base, it's more energetic than ever, and the tea partiers that were elected by tea party advocates might be reelected. however, when i say might, it hurt the party as a whole. i've talked to people inside the beltway that say this government shutdown has hurt fundraising efforts for the party as a whole -- jon: for the republican party. >> the republican party, the gop. but for the tea partiers, listen, it energized the base. you had add advocates. however, it's one thing, jon, to stand on principle, but then you have to know when to compromise, and some of the tea partiers in the caucus did not want to compromise. jon: well, speaking of not wanting to compromise, president obama said he wasn't going to negotiate over all of this. >> but president obama has the bully pulpit, the mainstream media. when the republican party -- we're the republican party, we need advocacy and to coalesce. but having the u.s. chamber of

commerce, the realtors, the manufacturers, i mean, the political action committees right here inside washington, d.c. say that they might have other candidates run against the tea partiers that are now elec7$uu0b[ members of congress, it's bad for the party. and the bottom line is this, four tea party members of congress if in 20. 14 certain people lose, then we lose the majority in the house. therefore, the president will have two more years where he might have a democratic house and senate, and where are we then? jon: he has suggested or political observers have suggested that he'll use these next two years to sort of demonize republicans in general and tea party republicans in particular to try to win back the house in 2014. >> and when you have joe the plumber blogging -- now in 2008 with, remember, joe the plumber was the mascot for the mccain campaign -- joe the plumber blogged that americans want a white republican in the white house. when you have certain protests

in washington, d.c. when you have people standing in front of the white house with a confederate flag, those are the things that we see in the mainstream media. so as a strategist, what i suggest that the party that i'm a member of, we need to deal with those american issues that will help create a better america. the reason why they were so energizeed, they want smaller government, but you have to be able to work within the government. you can't be seen as an obstructionist. jon: so john boehner seemed to say that, you know, they fought as hard as they could, they tried to get everything they could, they didn't, they didn't succeed in their goals, but -- >> we don't have, we don't have cuts in obamacare. of we did not defund obamacare. we did not repeal obamacare. and the government shutdown, and many strategists on the right warned let's not utilize obamacare. let's not hold it hostage and shut down the government. we will be blamed. so in 2014 the republican party

has a lot of work to do. i'm saddened at the fact that the u.s. chamber and the manufacturers and the realtors might recruit other candidates to run against already-established candidates within the party. jon: because of their anger over what's going on here. >> dealing with their businesses and the bottom line is this, those lobbyists and others warned that this would happen. don't shut us down. and we shut down the government. jon: politics always an interesting business. >> it is, it is. jon: part of the reason you're in it. angela mcglowan, thank you. >> thanks, jon. jenna: new research could bring a big breakthrough in alzheimer's disease. the new diagnostic test it could lead to and what it means for treating alzheimer's now. plus, the bell tower of a church from the 16th century crumbles to the ground, and it is all caught on tape. we'll tell you where and what happened.

test. test. test. test. test. rrn

>> so we are just getting ready over here, you know, talking in the bullpen with patti ann and bill coming up on hq, i mean, we're going to follow everything out of washington, certainly, but bill ayers said something the other night that had people shaking their head. >> for sure. parents are interested in this story, facebook loosening up its privacy standards for teenagers. >> we'll check in on that too. and if it moves in washington, we will be there, guys. see you at the top of the hour right here. bye-bye. jon: very sad video to show you here, the bell tower of an ancient church comes tumbling down, and it's all caught on tape. that's new video emerging of a part of the old church in the philippines collapsing after a

powerful earthquake struck on tuesday. the church dates back to the 16th century. it's a remnant of the spanish colonial era. finish more than 150 filipinos died in that quake. jenna: well, a potential breakthrough in the fight against alzheimer's. new research showing doctors could soon detect the disease before symptoms set in. john roberts with more from atlanta. >> reporter: this really could be a remarkable tool in diagnosing people at risk of researchers at johns hopkins school of medicine followed 265 people, average age in their mid 50s, for more than a decade. initially, none of these people showed any symptoms. specifically, they looked at levels of proteins in cerebral spinal fluid and most importantly how those levels changed over time. they found they were able to predict an average of six years out who would go on to develop alzheimer's. that opens a very large window

in which people at risk could get preventive treatment. >> in the future that's what we're aiming for, that you would be able to have a test done and then take a drug that would reduce your risk from developing symptoms and keep you normal for as long as possible. >> reporter: and it really could help a lot of people in the united states. take a look at these statistics. 5.2 million people currently are afflicted with alzheimer's, that number's expected to triple by the year 2050, and it costs us an awful lot of money to care for those people, $283 billion estimated for this year, $107 billion coming from medicare. if you were able to push back the onset of alzheimer's disease or prevent ital altogether, it could have a remarkable effect. >> if we can delay onset by about five years, we can really reduce the prevalence of alzheimer's disease to about half, and that's going to be half the people who have alzheimer's disease now essential liqueured.

>> reporter: one problem in all of this, our diagnostic capabilities right now are outpacing our therapies. currently, there are no drugs available to stop disease progression, though there are a couple of good ones in the pipeline. and while drugs do not work well on people who already show signs of the degenerative process of alzheimer's disease in the brain, it is thought that if the disease process could be caught early, those same drugs might be more effective. jenna: fascinating look for us, john. thankthank you. jon: well, guess what? a big house in the suburbs might not be the american dream anymore. downsizing bigtime. it's the new trend. adam houseley live in venice, california. adam? >> reporter: yeah, jon, and what better place to look at trends than in venice, california? from big houses to little houses on one lot, we'll tell you about the new trend here in california, and we're not talking about little pink houses. that story coming up on fox. muck. ♪ when you have diabetes like i do,

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jenna: well, the latest housing trend t west, and while tiny homes built on smaller lots provide a big boost to the economy, not everyone is a fan. adam houseley is live in venice, california, with more on this. >> reporter: welcome to sunny venice, california, known for its trends and in the past trends like skinny ties and skinny jeans you would find on some of the stores, but now here locally it's all about skinny homes. on this lot behind me, you'd normally have one house, now you've got three, and they're not connected by any walls. >> it has been the house you grew up in, it's not your parents' house. >> reporter: it's a tiny friend that started in -- trend that started in los angeles. >> we think it appeals mostly to young professionals, a lot of

college-educated, right out of college who probably don't have kids yet. >> reporter: the narrow homes are usually stacked two to three stories high and range in size from 1 to 2,000 square feet, and while you don't share walls, you do share lot space with several to dozens of these hybrid homes. >> there's no, per se, kind of traditional yard in the front. you end up with a smaller lot, but there's all these kinds of creative things that happen with the space because you can go vertical with it. >> reporter: while some oppose small lot houses saying they hurt the character of older, traditional neighborhoods, supporters say the small homes can have a big impact on the local economy. >> went you're taking one lot that would typically house one family and providing a place for three families, that's three buyers in the community that can go down to the local coffee shop, the local restaurant, the local mom and pop retail store. >> reporter: now, these small homes have become quite popular

in southern california, other urban areas looking at the possibility as well. today plan on building 250 more of these homes at a price tag, jenna, between $500 and $800,000 for one of these small homes that used to have one house, the lot now has three of them. jenna: so a small home but not a small price tag really. >> reporter: not in california. jenna: i guess that's true. that and the skinny jeans and the skinny ties and everything else. of adam, thank you. very interesting. i don'ti don't know, jon, what u think? skinny home? >> jon: works for me, i'm all about keeping it compact these days, jenna. jenna: i like it, jon. jon: here is the really, really big news, jenna, now that the dark days are other. the national zoo's panda cam is back online. we'll look in on what those cute bears are up to. ♪ ♪

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all right so this is what has all of dc and the nation rejoicing, gena, now that the government is fully opened and funded. the national zoo panda cam is live once again. yes, it went dark in the 16 day shut down and stand off. it is now back on. people can check up on the furry little fur ball friends. but they can't so them in person because the zoo will not reopen until tomorrow. >> i for one am relieved for the panda ands everybody else. >> i am happy to see they are all alive. you wont know it from the picture. >> there were no hysterics in the panda cam on the government

shutdown. glad all is right with the world. >> they were well cared for in the 16 days. >> don't want to start rumors. we'll so you back in new york and looking forward to it america and america's news headquarters starts right now. that there panda may not get used to this. it is coming back around. fox news alert. full speed in dc to another headline. welcome to hq. i am bill hemmer. >> and i am in for a liston camerota. and in a hundred days we could face another government shutdown. chief correspondent mike emmanuel is on the hill with the details. joishgs yes, after a bipartisan deal was struck congress can get back to taking a little recess and after house speaker john