aey! roa a making news on this thursday, august 12th. repossessed. numbers released overnight show a surge in foreclosures, troubling news coming just hours after the stock market's biggest dip in weeks. water world. millions stranded by flooding in pakistan. the latest global crisis. how will the world respond? and amazing offense. three special americans on one courageous climb. good morning. and thanks for being with us. we begin this morning with plenty of angst and uncertainty about the economy and its effects on the market. >> stocks sold off this morning across most of the asia, even

though averages in europe opened higher, it's probably not near enough to lift the gloom on wall street. >> mark mariusz is here in new york and joins us for new reasons for possible economic good morning, mike. >> good morning, vinita and rob. well, if the stock market totals weren't bad enough, the new foreclosure numbers just came out and they're not good. from wall street to main street, new evidence the economy's still sick. in atlanta, a near riot, as thousands fought to apply for limited housing, many here affected by foreclosures, just a shot of the assistance that they need. >> it's a lot. >> reporter: new numbers released overnight reveal foreclosures rose 4% in july from the month before. the states hardest hit, nevada, arizona and florida. nowing 1 in every 397 homes in the country has received a

foreclosure notice. the report follows a down day o. yesterday, the dow dropped 265 points. >> we saw a broad stock market sellout in part because of what the feds told us on tuesday. >> reporter: the fed's message, the recovery is likely to be more modest than anticipated. >> i think people are worried there's not much they can do and it's really up to the private sector. >> reporter: more than 14 million americans are still looking for work in this country. president obama urges resolve, signing a bill he says will create jobs by bolstering manufacturer overseas. the latest prescription to try and heal an ailing economy. >> while we have fought back from the worst of this recession, we still got a lot of work to do. we've still got a long way to go. >> well, the fed says because it is concerned that the economy may be slowing, it will hold the interest rates which are now at record lows, it will hold them

at what is, quote, an extended period. >> mike mariusz here in new york. thank you. president obama is said to be satisfied that the u.s. combat role in iraq can end this month. the president's spokesman says mr. obama believes the deadline for removing all u.s. troops from iraq by the end of next year will be met. in a briefing yesterday the top u.s. general in iraq, told the president that iraq's security is improving and that iraqi forces are fully prepared to take over. misery is spreading through pakistan this morning after cou country's worst ever flooding and now there's a call for more th to heion in aid to head off an human tear yang crisis. nick schifrin join us from around karachi. >> reporter: for 14 million people the victims of the worst disaster in pakistan's history help cannot come soon enough. a two-week deluge of swollen rivers and eme villa villages h virtually wiped out instructure.

the navy here has rescued there ds of phere are still thousands just like them who are stranded. and this is one of hundreds of lakes that these floods have created. and to give you a sense of the scale of the disaster, just this lake alone is bigger than delaware. those trapped on the ground now rely on aid packages dropped from helicopter. others escape the rising waters by any means necessary. and the fallout from this catastrophe will only grow. many of the displaced have nowhere to go. and because the flooding happened so quickly, there was no time to put shelters up or get relief workers in place. the united nations has appealed for $500 million in aid. the u.s. has pledged $71 million. >> additional lots of human lives and further suffer will go occur. >> reporter: the pakistani government has been criticized heavily for not being able to deliver more effectively and

more widely. but they say any government would be overwhelmed by this. and the u.n. says the number of people affected by this flood is greater than the number affected by the kashmir earthquake, the asian tsunami and the earthquake combined. >> our thanks to nick schifrin. we've put a list of eight organizations on our website, abcnews.com. in chicago, jurors in the rod blagojevich corruption trial appear to be deadlocked on at least some of the charges. they passed a note to the judge saying they cannot agree unanimously on all counts. the judge says he will try to clarify the situation later today. blagojevich has pleaded not guilty to all the charges, including trying to sell president obama's former seat in the u.s. senate. federal investigators will be back at the site of the fatal airplane crash in alaska. they say no distress calls were made before going down.

neal karlinsky has more from anchorage, alaska. >> reporter: rescuers found a survivor who made it out of the plane. one of the young boys on board. everyone else was still trapped inside the plane. survivors, volunteers at first, spent the night with them, comforting them. comforting the boy who made it out, trying to keep him warm and dry under one of the wings. the survivors who were inside eventually were cut out of the plane by national guardsmen who dropped in by helicopter. they said it was a treacherous slope. the plane was sitting in its own fuel. it was slippery, it was dark. >> they estimated the airplane impacted the hillside about 800 to 850 feet up the hillside and then slid up the hill. >> reporter: the survivors were in shock, and sitting right alongside good friends and loved rash.ied in the crash. it seemed to be a lottery who lived and who died. the pilot sitting up front,

while right alongside him, just a few inches away, another man in the front seat actually survived. the survivors are all being treated in a hospital in anchor ramp. the most serious is sean o'keefe. investigators from the ntsb hope to speak with them soon to determine exactly what went wrong. neal karlinsky, abc news, anchorage. a family is back together after being on a glacier in alaska. the family's sight seeing plane went down in severe weather sunday. several members of the air national guard had to be rescued as well. their helicopter rolled over on the glacier, killing a rescue attempt tuesday. severe storms in the dakotas and minnesota with damaging winds, hail and flash flooding. scattered showers from washington, d.c. to new england. thunderstorms in arizona, new

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markets overseas this morning are reacting to that double dose of bad news from the u.s. wednesday's wall street stumble and the surge of july foreclosures. tokyo's nikkei average lost 80 points today. hong kong's hang seng is down sharply in late trading. in london, the ftse is up in early trading. wall street starts the dow with 10,378, after dropping 2 sky points yesterday and landing in negative territory for the year. nasdaq lost 68 points. general motors is expected to report a $1 billion quarterly profit this morning. it would be the auto giant's first profit in three years. gm is now wildly expected to file upon a initial public stock offering tomorrow. that would let the federal government sell its majority

ownership of gm which of course it acquired during the bailout. a federal judge ordered wells farc go to pay $303 million in overdraft fees back to customers. it accused the bank to change what he called unfair and deceptive practices. motorola's droid 2 phone hits the market today. it has a better processor. it also retains the sliding keyboard and touch screen. the droid sells for $200 after a $100 rebate. the popular comic strip cathy comes to an end. during its run, kathy kronlinged the life and frustrations of swimsuit drama mass of its creator. she's quitting the strip to spend more time with her family and to spend more time with other creative endeavors. coming up, more transportation trouble involving

the vice president. plus, rallying for rangel. who showed up at the lawmaker's 80th birthday bash? and survivors who lost limbs climb one of the world's tallest

parts of central iowa remain swamped by their worst flooding on record. up to 8 inches of rain fell over the last few days, leaving homes and businesses understand water. a 16-year-old girl was swept away to her death. hundreds of residents were evacuated. and others had to be rescued by boat. well, that flash flooding drenches i-35 and 80 making for a rough morning commute around des moines.

and there will be flooded roads from fargo to minneapolis. wet on i-95 from new york to richmond. flooding on i-10 along the gulf coast and slick in the forecorners region. expect delays in minneapolis, charlotte, houston, new orleans and miami. and now a medical warning about what's being called a new superbug. it's the result of the discovery of a gene. >> that gene can turn any bacteria into the so-called superbug. and as dr. richard besser reports it is hard toe kill, even with antibiotics. >> reporter: a new study in "lancet" infectious diseases studies a new gene that can turn any bacteria into a powerful superbug. it's spread by genetic material that can hop from organism to organism. originally found in india and pakistan, the gene has now been

seen in the united, the united kingdom, netherlands and canada. it's believed the worldwide spread is led to tourists who receive medical care in india and pakistan. >> three cases were all traceable toe people who had been in india. >> reporter: tackling this problem will require not only to prevent the infections but also creating new antibiotics. the problem is new antibiotics are being produced. >> we are not developing new drugs and the few drugs in development are not going to handle our problem. >> recently, legislation was introduced to create incentives for develops antibiotics. wash your hands, don't ask for an antibiotic. becae moou do, you're more likely to get one, and if you can, stay out of the hospital. dr. richard besser, abc news, new york. vice president joe biden has been involved in a runway mishap in a long island new york airport.

air force 2 was taking off from the hamptons when the jet sent a small private plane into the air. no one was injured. just last week, two new york city officers got into an accident while escorting bide ton jfk airport. hundreds of influential democrats rallied around embattled charles rangel here in new york last night. the occasion, an 80th birthday party for rangel who was also seen in light of the ethic charges. among those, two new york senators facing re-election in the fall. another longtime congressman who battled ethics charges has died. democrat dan rostenkowski represented the chicago area. dan rostenkowski died yesterday of lung cancer. he was 82 years old. and now the amazing ascent of africa's highest peak. three u.s. veterans with only

one real human leg among them the top of tanzania mount kilimanjaro. they reached it last saturday after six days of climbing. the men said the message is you can be active no matter disability. one said reaching the top was totally exhausting but totally exhilarating. well, golf's final tournament of the year of the pga championship gets underway in wisconsin. tiger woods tees off at 9:20. good morning, i'm steve weissman with your espn news update. a day after the being brawl, st. louis on the verge of bleeping cincinnati. and philips to yadier molina. instead, hits a tapper back to the mound. adam wainwright takes care of it. top of the five, colby rasmus with the bases loaded.

that's his first career grand slam. comes on his birthday. cards go on to win 6-1 first three-game sweep of cincy since '05. moving to the american league, fell lease has converted his last 20 opportunities. yankees/rangers top nine. yanchs down one. derek jeter. curtis granderson scores. yankees tied at 6-6. marcus times. through the left side. gardner coming over, we bring in the closer. bottom nine, mariano rivera. gave up a triple. runner on third. grounds out to third. yanks went on to win. second time this year they've overcome a deficit of five runs or more. how absent tral. twins in sole position for the first time in more than a month. bottom second, no score. carlos quinton. two-run homer to center, second homer in as many days. white sox up 2-0.

and twins down 6-1. strike out jason kubel. >> i'm steve weissman, back to you in new york. coming up next, the senate akeaction to protect the

now, a look ahead to the stories we'll be watching on this thursday. stocks could be in for another slide, while wall street has a chance to react from a disappointing earnings report from tech giant cisco systems. asian markets sold off but most

europe markets opened slightly higher. a real estate group says there were 4% more foreclosures in july than june. yesterday, the obama administration announced it will spend an additional $300 billion in aid for those facing foreclosures. the u.n. is asking for $500,000 for aid in pakistan. 14 million are affected by the worst disaster in the nation's history. senators here with summer recess to pass a bill on border security. they're holding a special session today to make sure it will be before president obama for his signatures. and a federal judge has struck down california's same-sex marriage ban will announce today if marriages shoulded me lie resume. he could also call for a delay in those marriages while supporters appeal the decision. >> for some of you, your local news is coming up next. >> for everyone else, "america this morning" continues after this. healthy beauty is a journey.

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and finally this morning, so new questions now about that now famous jetblue flight attendant. >> some passengers tell "the

wall street journal" that steven slater is actually the one to blame with the confrontation with the passenger. but slater's cult following is still growing fast. here andrea canning. >> reporter: he's the man everyone seems to be rooting for. >> some really great people out there, i'm getting a glimpse of that. it's a surprise because obviously i've been away for a little while. >> reporter: steven slater headed here to this manhattan apartment building directly from jail where he spent the past couple days. when he finally was let out, it was a whole new life for the flight attendant. and clearly, everyone has wanted a piece of him. >> it seems like something here has resonated with a few people. that's kind of nice. >> reporter: more than just a few, people from around the world have come to his defense after his tar black tirade. the flight attendant lost it after a rude passenger bumped him on the head. he started swearing on the intercom. and even activated the emergency absolute while travelers were getting off the plane. >> i thought about it. for 20 years i thought about it.

you never think you're going to do it. >> reporter: it's not the first time he's taken issue with overhead baggage. he reportedly posted "i hate to be a bad nazi when i work a flight but i feel if i'm not i'm letting down all of those who cooperate." >> delta used that as an example? >> you august to be respectful of what they do. >> reporter: flight attendants are forced to deal with everything from carry-ones to chaos. not exactly how steven slater handled the situation. in a jetblue internal memo, his bosses reportedlied scolded slater and the media for turning into a humorous situation of walking off the job. company has told abc news, he's been removed from duty pending investigation. so good thing, when one door closes -- >> are you going to lose your job? >> more than likely. >> reporter: -- another always opens. andrea can, abc news, new york. waiting for the reality show.