issue one, bipolar streak! >> we are getting closer to second recession because we're in the grips of a negative feedback loop. >> on monday, the dow plunged 634 points, the steepest one- day drop in three years, since

november 2008, the apex of the global economic meltdown. on tuesday, the market rebounded, gaining back 423 points. on wednesday, the dow plummeted again, losing 519 points. on thursday, the dow rebounded again, up 423. this market roller coaster was tied to standard & poors, s&p, and the downgrading of u.s. credit by the credit rating agency. s&p stripped the u.s. of its perforating, triple-a, giving it a lower grades of what s&p calls a double a+. this s&p downgrade to a double a+ was the u.s.'s first downgrade in its triple-a history. s&p's chairman john chambers says it may take more than a decade before the u.s. gets its triple-a status back. >> we've had five governments that lost their triple-a that got it back. the amount of time it took for

those fivene years to 18 years. >> president obama's response. >> no matter what some agency may say, we've always been and always will be a triple-a country. >> the president initiated the blame game in his address monday morning. he blamed the s&p downgrade, then blamed the world, blamed the global economic slowdown, blamed the european dead crisis, blamed the japanese earthquake, blamed the arab spring, blamed washington, and then blamed washington's debated over the debt ceiling. but the markets were not swayed. before the president spoke on monday, the dow was down 385. after he spoke on monday, the question, was obama's response politically smart for president obama to do! to address the nation on monday

afternoon when the markets were open. pat peake. >> no you it was foolish when had had nothing to same people listen and the market went down through it. but look, the downgrade and the collapse in the market order aerobatics of the market came after the debt ceiling battle. it was done. the s&p and all this gyrations, these are reflections of the tea party is right, when the tea party said this thing is grossly inadequate for solving the problem. the united states of america frankly isn't going to default as alan greenspan said. we can print all the money we need in order to present a default, but what we're going to do is destroy the value of the dollar slowly through the federal reserve, and that is how you'll get rid of this thing. but worldwide collapse, john, this is coming about because of two big things -- the united states it looks like is headed into a double-dip recession, and this horrendous crisis in europe from greece to portugal to ireland went to spain and

italy and now france. >> eleanor? >> pat has a unique way of grading, saying the tea party is right. they helped bring about the catastrophe of the dote deal we ended up with because it wouldn't go along with the compromises. and it's plummeting in the polls and general reaction to the tea appear is evidence of that. but the president was correct in his in statements to instincts to say something. but look at where the money and the world is going, they're buying u.s. treasuries. the u.s. credit is still good, and that would have deflected from this notion that somehow s&p is the word of god. in fact, s&p is one of three rating agencies, and you have moody's, the chief stockholder warren buffet, and he said if there were a quad up. a rating he would give it to the u.s. so the s&p judgment is really flawed. but all the other things that you listed there, i think the

president calls them headwinds? there are lots of headwinds, and this president does need to get a better grip on what is happening, too reactive. >> we're hearing from you, but let's hear from an imminent public servant and revered democrat, ed rendell, the chairman the democratic national committee some years ago, two-term governor of pennsylvania, governor rendell, what did you think obama's addr monday? >> i thought he just gave us words. he's got to give us specifics and details and he's got to lead. >> that's absolutely right this. is the problem. he's a president of the united states, president of a country with a real debt problem, just suffered this national humiliations of having our debt gown graded and he has no plan to deal with. it he maintains, has a secret three to four trillion dollar plan but won't dare write it down or advocate for if there a

entitlement savings in such a plan, he'll suffer a serious revolt from his own party, so he plays his cute little partisan game where he claims to have a plan, but he won't tell us what it is. >> there's serious problem. we're facing a huge get going forward. forget what our national debts are going backwards. going forward we're looking at $8 trillion added to the current debt levels and no political system we have or political ready we have that will address those issues. so in my judgment, s&p was perfectly within their rights and purr views to do that. but the real problem is we have a huge debt in this country that is the most predictable crisis in american history. it's going to break our financial system if we don't do something about it, and we're not doing anything about it at this stage of the game. that's why the president when he comes -- should have spoken about the of markets opened, or after the markets opened. he had nothing to say and it just -- because --

>> who are his advisors? why -- >> i don't know who let him go out there. whoever and it was a mistake. the market dropped 300 points after he spoke. if this is a pep talk, i don't want to hear those pep talks! >> on, nobody believers -- >> to everybody. >> rendell said. >> yes, of course. rendell -- >> no meaning. >> i happen to have met with rendell last week, and he's trying to develop a national infrastructure bank program to get economy moving again. they're all so frustrated because we have no effective way of dealing -- the crisis. >> can't lead. he's not leading. >> that's right. a lot of people are saying. >> the united states of america is not going to pay back its debts, its $14 trillion or 22 trillion by 2020 in dollars of the same value we're borrow now. we look at gold it was at 1800. but with the rendell they want to pivot and go to jobs. he's got a $2 trillion program of something like $200 billion. where we will buy the money

with this horrendous debt. >> the president has a proposal, has to package them, punch through, make the american people understand they has serious proposals and not have this defeatist attitude that because the republicans don't want to spend any money, therefore you can't -- >> even if his idea -- >> push it through. and this they want to obstruct, the american people will see. >> even these ideas -- nights it out next year. >> nor the sake of argument, if you stipulate these are worthy ideas, patent reform, infrastructure, bank, the trade deals, no one can seriously believe that these are proposals equal to the vastness of our economic problem, and the job crisis. [everyone talking at once] president obama schott shot with a stimulate program that was misapplied, misspent, and that was wasted. and now he's intellectually bankrupt. that's what we saw on monday.

>> didn't keep us -- >> no, did at any time. >> he's got a -- >> but your folks don't want to do anymore. [everyone talking at once] >> there's a reason why they can't do anymore. we've got this horrendous debt, it's killing everybody all over the world, and everybody time you come up with a jobs program, it's we want to borrow another 500 billion dollars. >> that's not telling people -- >> the debt is what the problem is going all over the world, what is taking us down! >> they're rioting in london because of the deficit? >> is austerity and the -- because of the debt! >> the cuts. >> exit question -- does president obama's intervening speech on monday help, hurt or have no impact on his re- election? pat buchanan. >> i think it hurts badly because nobody thinks barack obama has the answers, and nobody thinks the guy is a leader. i think a lot of people who are

democrats, democrats behind him, they're starting to give up on him that he cannot lead in a crisis. >> also he gave reputation and gravity under the s&p statement, and they were already fined, what, a couple trillion dollars. found a $2 trillion -- why did he dignify them the way he >> the speech bombed, the election is more than a year away. this is a smart guy. he's going to retool, he's going to raise the level of his game come september. he's not going to let everybody just languish. >> the speech doesn't hurt in the long-term. what hurts in the long-term is he will be known forever more after the downgrade president. >> i mean, i think the speech did hurt. i think it showed there was such a trivial toy it. >> yes! >> that's a high school cheer. we're facing the biggest crisis

we've had since the great depression and that's the best we get in the middle of the day? so i don't think it helped his reputation as a leader, nor somebody who had a real program to deal with the problem. >> he was straining at a gnat. >> why should a rating system -- require his going out to address that? he dignified a rating system that was a already hit which the treasury department as i love this country deeply. indeed, the only thing that you love more is the living christ! >> texas republican governor rick perry at a prayer a semblance last week in houston's reliant stadium rallied a crowd of 30,000 evangelical christians it was planned a year ago with governor perry helping organize it and serve as the public face of the rally. the evangelical christians and

the born-again christians together constitute, get this, 26% of the national electorate. the evangelical christian share alone of the national vote in 2010's midterm was 30%. so rick perry is now in, and his star is rising. he's only 3 points behind the front-runner, former massachusetts governor mitt romney. ram knee is polling at 21%. perry 18%. perry's strength, get this, texas is booming and perry has been governor of texas for lever years. he assumed the governorship when it was vacated by george w. bush when w became president. as governor, perry balanced the state budget and has been reelected governor three times. in the 2010 governor's race last year, perry garnered, get this, 55% of the vote, a big win! today, texas's economy is the second largest in the nation.

second only to california, ahead of new york state. the federal reserve bank of dallas found that since june 2009, texas added 265,000 net jobs out of 722,000 nationwide. that's 37% of all new u.s. jobs in the last 25 months. >> there is still a place where opportunity looms large, in this country, and that place is called texas! [cheering] texas! texas! >> this weekend, governor perry travels to three states with critical early primary contests -- slina, new hampshire, iowa. question, who has a stronger political base, mitt romney or rick perry? mort? >> we don't know whether perly will pass the normal reviews of a national press corps, butly say this -- he has done the

best job and that state has done the best job in creating an environment attractive to business and jobs in the economic development. i think he's -- it's not just a last couple years where -- he created something like 40% of all the jobs in america for the last five years, in texas. so that is going to be appealing at a time when we have a huge unpromise in the country and in that sense in terms of the country being interested in economic development, they see this as another alternative to -- >> do you agree with mort, richard? >> that will be his narrative, strongest point. he'll be able to steal from the establishment support from romney, tea party and evangelical support from bachmann, and step on pawlenty's message of being the governor with results. problem is, and it's not a problem in the republican primaries is can you elect another texas governor? in george w. bush was a texas evangelical who went out of has way to really soften his appeal in every way in 2000. perry feels no need to da that. >> what do you think of the turnout he got at the stadium? >> impressive.

>> evangelicals -- like -- [everyone talking at once] what perry has is the romney doesn't is intensity. he request bring those people out. had le do extremely well in the sunbelt. his problem is if he does get the nomination, can the guy with these credentials and in kind of persona do well in pennsylvania? >> bush come back as elmer gantry? >> how far back? >> not as far back at -- >> my favorite! >> burt lancaster. >> who was the author of the book? >> oh, i don't remember. >> that's enough on that. exit question, will rick perry go the distance? will he be in contention for the nomination? >> he'll number the contention from the very day he announces. >> and maybe win it? >> maybe. >> he's in contention, i can see him in the number two spot. i don't see him as the nominee. >> really? >> certainly in contention, but unlikely is the nominee. >> really?

>> one of top two contenders, is the way i put it. >> who is the other? >> romney. >> michele bachmann is competitive with perry. i wouldn't write her off. >> oh, please. really? >> i don't think she has a chance. >> he will be in the lineup, contention. issue three, london falling? >> this is criminality, pure and simple. bristol, liverpool.

the riots have undertones of race and class. they have happened here in the u.s., notably the race riots of the 1960s, especially in los angeles in the 1992 riots. hundreds of u.s. cities, from mobile, alabama to chicago have had curfews on the books largely ignored. last monday, philadelphia mayor nutter announced his city will be enforcing the curfew laws after mobs of juveniles appearing outs of nowhere attacked random strangers and vans lied stores. his message to the jive newell delinquents was very point and very frank. >> you damage yourself, you

damage another person, you question, are the riots in london the bewould hop not. i think -- you could argue that this is the rise of the dispossessed. but i think more specifically, the riots in london are occur against the backdrop of economic austerity, ethnic tension and bad police work. and as for all the troubles which have with immigration and with disparity and income, we have nowhere near the tensions they have in london. that's why we're not seeing a summer like this and i'm grateful for that. and cameron has invited the former new york city police economieser there to consult to figure it's what to do. so they're looking to be us for leadership. >> john, we have a phenomenon in america called flash mobs. the iowa state fair last year, it was beat whitey night.

young men who come together, minority folks, beating up people, robbing, it's happened six times here in washington, d.c. but what is happening in europe, you're seeing there, first it's lack of assimilation of the third world people brought in in the millions over there, austerity has something to do with it. the paris six years ago went up in flames. they burned up something like 10,000 cars. welcome to the future. >> i'm not hearing what i want to hear here. why these things are taking off. social networking. removable platforms. it's the same thing happened here. >> i reject the idea austerity has anything to go do with it. people talking about closing libraries early is absurd. the foremost cause was poor policing. because when it started to break out finish the police had felt the moral permission from society to crack down as harshly as they should have, you could have snufd it out the thing is th esinpe has a

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>> if you want there to be a massacre, that's what will happenhewee going to this will countrdoesn't support it, and >>priconpa >> sarkozy and cameron have all in europe. there's going to be dramatic rereassessment. >> senate banking committee lldiscover manipulation, political manipulation, behind p adofthu.s. debt. >> rich? >> we'll see qe3 from the d ia couple months. ers >> another rounds every quantitive easing. >> what? aerthfirst primaries tim pollenately will pull out of the race. >> karl rovcod se three democratic , ben nelson lae ba

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