red state, blue state. leaders in the house and senate choose sides for the so-called debt super committee, and surprise, surprise. boehner's boys are as right as they come. is any hope of a compromise dead on arrival? and seeing red, yet another volatile day on wall street. nine days since the debt deal was struck. >> i got 98% of what i wanted. i'm pretty happy. >> wonder what 100% would look like. we begin this afternoon with the congressional super committee taking shape tasked with taking the nation's runaway debt. today we learned the republicans picks to serve on the powerful bipartisan panel. house speaker john boehner chose jeb hensarling and two representatives from michigan,

senator jon kyl and pat toomey and senator hartman from the senate. all six have signed a pledge against any tax hikes. that's already red flags for democrats that they have a balanced approach. senator harry reid picked max baucus, john kerry of massachusetts and patty murray of washington with senator murray at the co-chair. murray already drawing fire from republicans as her role in a lead democratic congressional fund-raiser, and if the political grumbling is already proving ominous, take a look at markets today enter nosedive territory just as these announcements rolled out. economic anxiety gripping both wall street and main street. with a new poll out today showing 73% of americans think the country is on the wrong track. and nearly half saying the worst is yet to come for our economy. the whole scenario just about

sending msnbc's dylan ratigan over the edge. take a look. >> democrats aren't doing it. republicans are not doing it, and entire integrated system, financial system, trading system, taxing system that was created by both parties over a period of two decades is at work on our entire country right now, and we're sitting here arguing about whether we should do the $4 trillion plan that kicks the can down the road for the president for 2017 or burns the place to the ground. both of which are reckless, irresponsible and stupid! >> well, so, with the markets crumbling, americans trembling and dylan just about losing his mind, what's a super committee going to do about it and where's the president in all this? nbc's kristen welker is at the white house for us, and luke russert is on capitol hill. let's start with you, luke. the griping is already starting. what strikes you about the picks so far, and what are the signals each side is trying to send? >> reporter: well, let's go to

the republican side, jonathan. a few things that i find of interest. number one, we've heard so much during this entire congress about the power of the freshman class and the republican side. speaker john boehner opting not to select a freshman to go on this super committee. his pocks are as final, dave camp, ways and means, fred upton and jeb hensarling. the first thing about these guys all trusted by conservatives. jeb hensarling is very close to eric cantor and good relationships with the freshman and speaker boehner. camp is interesting. ways and means chairman, means he's very much somebody who has been in the past open to tax reform. however, like you mentioned, these guys have all signed a pledge not to raise revenue. upton is someone more of a moderate guy. however, he went to the right in order to secure his chairmanship on the energy and commerce committee and gone out aggressively against the epa. somebody on there who is willing to do business. that being said, a lot of this will go then to what the senate appointees are that mitch mcconnell said. jon kyl, someone a lame duck and very much the leadership, the

number two over there. then here's where the freshman come about. two of them, pat toomey. of the republicans here, definitely the tea party backed guy. very popular with the club for growth, offered a deficit reduction plan of $9 trillion over the last budget negotiations and last but not least, rob portman, someone been here before, the budget director under george w. bush and if you look at all the republicans, most open to a widespread idea. inkling with some support of the gang of six support earlier this year. all those guys willing to do business, but all sure fire conservatives for the most part. on the democratic side, from what we know so far, nancy pelosi has not release who had there will be from the house but concretely who we know, john kerry, max baucus and patty murray. john kerry is an interesting selection here. someone very likely could be the next secretary of state if president obama is re-elected, someone who has shown a willingness to do bipartisan deals over the last few years, the '04 nominee for the

democrats so loved and respected by them. max baucus, very much talked about during all the health care debate as someone in the middle of the road swing guy and patty murray, more of the politician here as being head of the dccc, how far will she be willing to go on entitlements? >> let me get kristen in here. what kind of role is the white house playing here, an advisory role in democrat picks, for example, or trying to steer clear and let congress take this on. >> reporter: jonathan, the white house has been in constant contact with the folks on the hill. having said that, those picks were spearheaded by congressional leaders. here's what we'll see from the president. he will be putting the pressure on we expect publicly and behind the scenes to get some sort of a balanced approach. he'll be presenting his own plan for deficit reductions, one that includes tax reform as well as entitlement reform, but as you mentioned all of the republicans who were chosen did sign that pledge that was written by grover norquist not to increase taxes, so a lot of question

marks about whether that's going to be possible. we haven't gotten a timetable though about when the president will be presented his own plan. we've been asking the white house when can we expect to see it. haven't gotten a whole lot of answers. certainly right now democrats very tuned into that trying to see what the president will do in terms of presenting his own plan. jonathan? >> the white house taking questions today about whether he's planning to go to martha's vineyard with his family for vacation. press secretary jay carney said no one would begrudge the president time away from his family. but i frankly think some would. what are you hearing? >> reporter: a lot of members of the president's own party the democrats are criticizing the president saying he hasn't shown enough leadership given the volatile markets, the downgrade. even had maureen dowd come out today and saying some of his constituents are disillusioned with him. certainly some democrats won't be satisfied by that answer. having said that, the white house is pushing back this afternoon saying, look, the

presidency travels with mr. obama wherever he goes so he can be in martha's vineyard and working on this issue. they also point to the fact that he's focusing on the economy, jobs right now 24/7. we learned that a little later on this afternoon he'll be meeting with fed chair ben bernanke, timothy geithner, treasury secretary, as well as his chief of staff bill daley and economic advisor gene sperling. we didn't get a whole lot of details about what they are going to talk about, but certainly jobs, the economy, the stock market will be on tap when they sit down this afternoon. jonathan? >> thanks, kristen. would you hope that that's what they would be talking b.kristen welker at the white house and luke russert on capitol hill, thank you. with the super committee coming together, can they overcome the partisan wrangling that's been exhausting lawmakers and the american public to take on our nation's debt for generations to come? let's bring in our political panel now. karen finney is an msnbc political analyst with us from washington, and melissa harris perry is an msnbc contributor with us from new orleans. karen, nice to see you surviving

yesterday's theatrics. let me start with you. we know this committee has the built-in triggers, cuts to the pentagon and entitlements if nothing gets done. as you look at this committee taking shape, is it going to be able to break gridlock and make real progress on the debt? >> well, you know, here's the thing, regardless of who is on the committee you would hope given the message that we've clearly gotten from the american public, all the polls say people want to see compromise and from the markets, saying look we're losing confidence in this government's ability to get something done you would certainly hope that the pressure is on. it's unfortunate that instead what we've sort of heard is more of the same rhetoric, and as kristen pointed out this, you know, allegiance to grover norquist, as you know i've written about, this makes a lot of people very uncomfortable because you shouldn't be pledging to some random unelected person when you've taken an oath to the nation. >> right, melissa, $1.5 trillion, not an easy number to

come up with. we're awaiting nancy pelosi's picks for the panel. what is she likely going to want to bring to the table with her choices? >> i've got to say, this is -- this super committee is super distressing because when you look at it, it should be precisely the sort of group that would be able to make progress. i mean, one particularly when you look at the senators, right, the whole idea of the american political system, senators, because they have a six-year time horizon instead of the two-year that the u.s. house has or the four years that the president has should have a little bit longer time horizon, ought to be able to think more broadly about what is good for the broader public rather than just worry about an immediate re-election and when you look at where these individuals are from, they are from, you know, ohio, pennsylvania, michigan, places that have typically been part of the american labor efforts, right, and so they ought to be exactly the sort of senators who would be interested in raising revenue, in infrastructure projects. i mean, typically that's exactly the kind of representation you get from those places. >> right.

>> but because of the ideological nature of our current gridlock, the longtime horizon and even being from the labor-intensive states doesn't feel like it's going to create the balance so i think, unfortunately, what nancy pelosi has to do is find for herself out of the house democrats an ideological balance, and it really is distressing because instead of it being about sort of what makes most sense for the country, it really is going to have to be who can fight ideologically in this committee? >> you know, there's one other thing, i'm sorry, that i would put on the table. it's also very disturbing the lack of diversity. if you consider what's happening to the african-american and latino communities in the country, black and brown people, the lack of representation, i have every confidence in nancy pelosi will, you know, do something to address that, but the lack of diversity is really distressing. >> what's also distressing, karen, has been the week that the president has had, no doubt about it, but take a look at some interesting poll numbers. in july the generic republican

was beating president obama by a whopping 47% to 39% in the gallup poll, a month later the numbers are reversed with obama winning 45-35. why given the drum beat of criticism from the left and the right against the president, do you think? >> one thing i would say, remember, we've seen this time and time again, the one thing that's remained consistent is likability. people like the president. that is actually a very important number, and second, people don't blame him for the crisis that we're now in. they may not like what he's doing to get us out of it, but if you still like somebody and you -- and you feel like they are trying their hardest, you're generally going to go with him. let's be honest, people have not been inspired by what they have seen on the right. >> melissa, real fast, last question. do you think congress should come back to washington? >> yes. >> as some have suggested. >> i think only college professors should have the summer off. i think everybody else should have to work, particularly when our country is in the circumstances that it is. look, even if it's just for pure

symbolism, you know. i wish the president could take a vacation, but i don't think he should, and i -- i absolutely do not think congress should in recess. this is not time for them to be campaigning. they need to be at work. >> on that note, melissa harris-perry and karen finney, thanks so much for being here. next, republicans object to harry reid's picks for a super committee. i suppose he should have picked republicans. stay with us.

republicans are already ripping harry reid because they object to the senator's picks to be on the super committee. the gop's reaction to whomever reid suggests makes me wonder. where have we seen this before? >> your honor, i objection. >> objection, your honor. >> objection, your honor.

>> i object. >> i object. >> i object. >> i object. >> i object, your honor. >> now that we know who the republicans have selected to serve on the super committee, is there any reason to believe they can all play well in the same political sandbox? republicans are already upset with the choice of senator patty murray of washington because she is the chair of the democratic senatorial campaign committee where she is making the republicans focus on changing medicare a big part of the 2012 elections. so far the democratic objection to the republican picks has been muted but after the sophomoric behavior we witnessed during the debt ceiling fight, should anyone expect a different result with this super committee? ryan mcconaughey is deputy director of the economic program for third way. thanks for being here. >> thanks for having me. >> is the coup committee the best remedy for the never-ending gridlock in congress when every single republican chosen has taken a pledge to not raise taxes? >> when you look at the picks for the super committee, you

have to ask one question, were they put there to kill the committee or cut a deal? look at the picks today, they are not thoroughly encouraging. on the one hand senator reid picked people who, you know, from across the aisle, from the right committees. they are open to compromise. the republicans, several of them were no votes on bowles-simpson and senator kyl left the biden talks and all signed the norquist pledge. not an encouraging slate. >> if they can't agree on something as basic who will serve on the committee should we have any confidence in their ability to get something serious done? >> well, you know, it's going to be tough. these issues are tough. that's why we've gone from commissions to the debt ceiling fight and now to the super committee. you know, i think -- i wouldn't say the door is slammed shut, but it's just barely ajar. when you look at this, you have to look -- you can't look at getting six votes from one side and picking off one from the other. got to see if you can build out from the middle so, for instance, you know, someone who is a little more moderate like

senator portman and senator kerry might build a nucleus they can build out. can they get to seven before they fall apart. >> do you expect anything in the way of a proposal from the white house, or will the president stay out of this? >> the president said he's going to come forward with prepare sals and he'll do that when we have the other three appointments when he has a slate ready to go on the cut and revenue side. been consistent on a balanced approach and sees that the super committee needs to deliver something here with public frustration at really an all-time high so i think he'll be an active leader in this. >> let me ask you a final question. since nancy pelosi hasn't made her picks, who are the three people you'd like to see or who you think should be her picks for the final three of the 12? >> well, you know, it's far for me to give direction to the speaker. >> just suggestions. >> names you've heard, say that, chairman van hollen of the budget committee makes sense. people have talked about, you know, javier bucera possibly.

you certainly have the ranking member on ways and means, you know, possibly clyburn in the biden talks so there's a list to pick, from but i think she will follow the reid model of picking people who have credibility on the left but who have the ability to reach to the right and hopefully keep the door open for a compromise. >> let me ask you a question i asked in the last block. do you think congress should come back, you know, come out of recess and come back to washington and get a handle on the economic mess that we're in? >> my instinct is yes. they have to show people they are working on this because the economic pain is not subsiding and the stock market is unsettling, but i'll put one caveat on it, that they should come back if they can work together. honestly there's so much rancor, maybe they need a weekend away, maybe not a full month but maybe some time and space. >> right. i agree with you on that. ryan mcconaughey, thanks very much. >> thanks. next, why some people think bert and ernie want to plan a weekend getaway to new york. stay with us. [ male announcer ] where'd you get that idea?

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come on. you know the thoughts crossed your mind. it's one of the longest standing pop culture conspiracy theories that muppets bert and ernie are more than just pals living together on "sesame street." for decades, viewers of the iconic children's show have pointed to what they say is subtle and not so subtle evidence of a love affair. you be the judge. ♪ i like you i like you ♪ ♪ though i'm not too crazy about your ruby ducky ♪ ♪ though i don't love pigeons we're awfully lucky ♪ ♪ because i like you

>> now with same-sex marriage newly legal in new york and thereby on sesame street, an online petition calling for tasteful nuptials between the two together since 1969, longer than i've been alive, is gaining traction, and while some may fine the idea humorous, it pivots off a very serious matter, a spate of recent sewer side of members of the lbgt community. "sesame street" producers insisted all along that the speculation is not true. a statement from sesame workship cited in today's "new york daily news" addresses the latest controversy, quote, bert and ernie are best friends. they were created to teach pre-schoolers that people can be good friends with those who are very different from themselves. even though the "sesame street" puppets possess many human characteristics and traits, they have no sexual orientation.

the petition keeps racking up new supporters so while bert and ernie may be able to get married on wall street or park avenue or madison avenue, apparently "sesame street" will just have to wait. what do you think about bert and earny? just friends? let us know. follow martin and the show on twitt twitter@twitter.com/bashir live. i invite you to follow me on twitter @capehartinjury. and coming up next, one magazine may benefit from michele bachmann's publicity stunt. stay with us. p your engine p your engine run more smoothly by helping remove deposits and cleaning up intake valves. so when you fill up at an exxon or mobil station,

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republican party in the 2012 election, and with texas governor rick perry set to jump in the race officially on saturday, the same day as the straw poll, he's sure to make a lot of noise. the latest "usa today" and gallup survey shows rick perry running second to mitt romney undercutting michele bachmann's support and pushing her to fourth and candidate jon huntsman got a bit of a boost when he received a high-profile nod of support from one of the members of the bush clan, jeb bush jr., yes. that is the son of former florida governor jeb bush. and michele bachmann who has been busy in iowa has been the topic of conversation lately thanks to that "newsweek" cover which she actually has some unlikely allies rushing to her defense. >> this week's "newsweek" cover seems to have captured minnesota congresswoman michele bachmann at the exact moment she sees the ama amazing person turn a hat into a

dove. that's amazing, when do we start the photo shoot? that's a [ bleep ] picture of michele bachmann. here's what you can't say about michele bachmann, that she is not photogenic, i mean, look at her. here she is inside. here she is outside. that could be a shampoo ad. you've got to go pretty far out of your way to find a crappy photo of michele bachmann, and you did. >> seems she's getting support from the most unlikely of places these days. for more on the straw poll and an overall look at the gop candidates i'm joined now by a republican strategist and president of capital strategies. michelle, thanks for being here. >> sherry. >> sherry, been quite a day. >> speaking of michele bachmann, busy in iowa lately throwing all sorts of events and making a lot of noise before saturday, and while her "newsweek" cover is generating some controversy, some are actually coming to her defense. is it possible she could benefit

from this? >> well, i think all women in politics and professional women can benefit from this and the electorate can. we've got candidates, women in office. we have women running for president. she's not the first one, and hopefully she won't be the last, and i think people are getting a little bit sick of this. it came off as a little bit sexist. y can you see them do this to a man? this was the type of photo you might see in a parody, you can see jon stewart doing something like that,on "the daily show" making fun of somebody but you don't take a serious news magazine and put -- and put a major presidential candidate on there like that, especially with that headline. it was insulting and makes people question whether or not this was sexist or not. if nothing else, it was inappropriate and in poor taste and unfair. >> let's look ahead. three days away from the iowa straw poll. mitt romney say head of the pack right now, but with governor rick perry looking to steal some thunder on saturday, is it safe to say that we're close to seeing mitt versus rick on the

marquee soon? >> perry obviously comes in the top tier. i think what iowa is, truly a fight for the third spot in that top tier. i think this is between bachmann and pawlenty to get in the top -- put three in the top tier, and, you know, they both have something there but pawlenty has put all his eggs in this basket so he has the most to lose. this isn't going to pick our nominee. the iowa straw poll doesn't do that. what it does do is sort of weed the others out who aren't going to be able to get in and stay in there for the long haul, and it gives people a chance to have a barbecue pork on stick and fried twinkies and that sort of thing and just to have a little bit of fun before things get really serious. >> let's move on to candidate jon huntsman moving into saturday after being endorsed by jeb bush, but perhaps not the jeb bush that he would like. >> well, yeah, i think there was some news stories this morning that made it sound like it was the former governor of florida. in fact, it's his son, so it was

much ado about nothing. it was something obviously the huntsman campaign wanted to highlight. they thought it was a positive, but because there might have been some mistaken identity it might have -- end up being a bit of a disappointment. more power to them. you have the former presidents and governors that often support their own candidates and go different directions. that's nothing new. the impact is minimal. >> what do you think of jon huntsman's chances in the straw poll? is this something where he could surprise people, take this thing or do better than expected? >> i really don't know what the expectations are for him on some key issues for conservatives, for the base that tend to come out for these things he might be a little bit off though he's a very solid individual and has a pretty solid record. i think it's hard to see him in the top tier. i think we are -- we keep talking about the same three and four names in the top tier, and we know who they are, and i don't see that changing too much, but anything can happen. it's still pretty early.

>> and that leads me to a great person we haven't talked about, newt gingrich. where is he? has he gone into the witness protection program? we haven't seen him in a while? >> you know, i don't think he ever quite recovered when he lost all the campaign staff. that was a little bit of an ugly and unfortunate period in his campaign, but, you know, i like to see the former speaker in the game. i think he has a lot to offer. he's not going to be the nominee, but i think that he has real value. he's very smart. he's a historian so i love seeing him in the mix, hope he stays around for a long time and stay s active politically becaue he has so much to offer. >> thank you. >> watch msnbc for special coverage of the ames iowa straw poll this saturday. now to a high-profile republican not yet in the presidential race. for bert or worse, sarah palin remains a part of this country's political landscape, and as she toys with a potential run for president, she does so while hammering away at president

obama, attacking his approach to fixing the economy and a message this week, where else, but facebook. while the reality star may be talking policy, it's another scandal -- another scandalous sideshow that has everyone else buzzing. the spine of an article in "playboy" magazine about the darker side of life in wasilla is a question and answer with mercedes johnston, self-proclaimed enemy to bristol and nude model in the september "playboy" spread. fear and loathing in wasilla, hunting the naked true in palin country. george curling made the trek to alaska for the interview and there are some pretty serious allegations made in your article, and i'll started with the most serious accusations, about drug use, levi and bristol's pregnancy, appears nude in the magazine and was presumably paid. how believable is mercedes johnston? >> i spent seven hours

interviewing her and i met friends of hers, her mother and i interviewed a bunch of random wasilans. no one called her a liar. people might say she was angry at the palins. i can't imagine sarah and her kids being the lightning rod for so much hate and discontent but she's an insider. lived there her whole life. there's 10,000 residents there. ten years ago it was 3,000, you know. she knows the town. she's very social there. >> but her account of bristol's pregnancy is in complete contradiction to bristol's memory of the occasion. bristol recently said that it was an accident, telling barbara walters, quote, i was on birth control when i got pregnant, yeah, but it was obviously not used effectively. again. why should we believe the sister's version of events? >> well, i just think with about anything, it's a different interpretation of the same set of facts. those two need to get on a reality show together and work it out. i kept saying to sadie that the two of them should spend a month

in a cabin way up north in the brooks range and just, you know, try to bury the hatchet and work things out. maybe both the pailins and the johnstons could, you know, have a show together. >> hopefully not bury the hatchet in either's back. >> good point. >> you spent nine days in wasilla. >> yeah. >> can you give us a sense of the place and the palins, you know, how are they in the firmament in that community? >> can i just say i missed that place so much, terrified to go. first i was afraid of bears and moose. lived in new york for 30 years and i don't get out much, but i was afraid of wolves and then i read sadie's blog, and there's something on there about the secret service hacking into her computer and wiping it clean, and this is back in october of 2008, and that's -- that's her belief, and i -- i called her up, like should i bring my laptop? terrified to go. the flight was harrowing. the drive from anchorage to wasilla was treacherous, and it was, you know, it's february,

like 30 below windchill. once i got there, i extended my stay. i miss it right now. i wish i was there. the -- you know, there's 17 hours of daylight. people are having so much fun there. did i answer your question? >> okay. i'm just mesmerized by the fact that here's this new yorker who was afraid to go -- actually to leave the island of manhattan and go to the wilds of alaska and now you miss it so much. aside from the 17 hours of daylight. >> yeah. >> what -- really, what is it? >> the people, i did -- i almost went ice fishing one day there, but i met people. i have more friends in wasilla than i do in brooklyn, seriously, and i've been in brooklyn for two years, yeah. it's just -- it's a real community, and i didn't have one unpleasant experience, one bad vibe, maybe when i got teased about wearing ugg boots. >> yeah, would i tease you about that. >> and chapstick. >> george gurling from "playboy" mag scene. thanks very much.

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welcome back. a look now at stories developing right now. >> reporter: hi, jonathan. major developments out of afghanistan at this hour. a precision air strike led by coalition forces has killed a taliban militants believed responsible for shooting down a u.s. helicopter last weekend. that crash marked the single deadliest incident in the ten-year afghan war. 30 americans died, including 22 navy s.e.a.l.s, and a nationwide search for three sibling fugitives accused of a multi-state crime spree has come to a dramatic end. officials in colorado say all three dougherty suspects are now in custody after a high-speed chase and shootout with police near pueblo. one of the suspects was hit, but the injuries are not life-threatening. fbi agents had been on high

alert after reports that the siblings were spotted yesterday in the colorado springs area. and really an amazing story of survival from washington state. 12-year-old dale ostrander is alive after being swept up by the pacific ocean during a youth group trip. ostrander's friends prayed on the beach as rescuers evidence is for 20 minutes before they found him after 20 minute under water. >> we were trying to get him to cough. come on, cough, he coughed one. do it again. do it more. i don't need to is what he said. everybody, oh, he spoke, a full sentence. it was amazing. >> doctors say dale has a ways to go, but everyone agrees the fact that he's alive and talking is a miracle. now, jonathan, back to you. >> thanks, vinita. next, give and take on another wild day on wall street. stay with us. ♪

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i'm amanda drury with a look at stocks. steepening losses as we head towards the close. apple took a small bite out of oil giant exxon mobil yesterday for a brief time during trade. apple toppled exxon for the top spot as the nation's most valuable company. exxon rallied back finishing the day $1 billion ahead of apple and 54% of americans would rather keep their old cars than face monthly payments for a new one, but if you're one of those trying to make it last, experts stress regular maintenance since a neglected car could cost you more in the long run and that's it from cnbc on a steeply in the red market day. first in business worldwide, jonathan. back over to you. >> thanks, amanda. we are counting down. just about 15 minutes away from the closing bell on wall street, and it's been a doozy of a day.

stocks down sharply this afternoon, eroding tuesday's gains and making for one heck of a roller coaster for investors this week. let's bring in msnbc contributor jared bernstein, former chief economist and advisor to vice president biden with us from washington. what's behind the fall today, and how much longer is this whiplash going to last? >> well, i think if you think about the economy as kind of a sick patient right now and dr. ben bernanke as the doctor, the big question yesterday was will the doctor prescribe the medicine -- will the doctor prescribe the medicine we need in the long term, and yesterday the feds said they would. they said they would keep interest rates low for another couple of years. and the market was elated. then, you wake up the next day, and the patient says oh, my god, i'm going to need medicine for another two years, so it -- yesterday you had a 400-plus point gain and today folks are reflecting back again at the

underlying economic weakness, of course, both here and particularly in the banks of europe where there's worries about contagion to larger countries. >> we saw a new poll today showing almost half of americans think the worst is yet to come for this economy. how much is consumer confidence or the lack of it fueling this cycle? >> it's definitely part of the problem, but it itself is, of course, a function of what matters most to consumers or basically people which is their jobs, their incomes, their paychecks, their living standards. what really doesn't matter a lot to people is a debt ceiling debate. in fact, the budget deficit is a far second or third or fourth to people's major concerns versus the jobs deficit, so as long as washington was kind of in this -- in this dysfunctional self-inflicted wound mode for a couple of months, that hurt consumer confidence because policy-makers weren't working on jobs. that's what matters most to people right now. >> jared, is there anything to

be done immediately to stop the perilous swings? how would you advise the administration right now? >> i would say the best -- first of all, i don't think there's any immediate band-aid. could you have the fed come out and say we're going to do something more than we said, but that's so unlikely. i don't think the administration can do anything except the following, which i think will help -- get out there with a single message to the american people. i know we've been talking past you for the past few months with all the debt ceiling, self-inflicted wound extremism on the conservative side, i know that, but i know what matters to you, it's your jobs, your income, and the opportunities in the market, we're going to turn back to that with a laser-like focus. here are the ideas. congress may block those ideas, in fact i even say it's likely, but i think to see the president fighting for those ideas would

help. >> jared bernstein, thank you. >> my pleasure. for more on the market let's bring in congressman peter welch, a democrat from vermont, and joining mess live from burlington. thank you for joining us. we realize there's bad weather in the area, so we really appreciate you being there. could you work with the republicans? >> i want to. in fact, we have to. we're getting smacked by a 2 by 4. that's the market reaction to the brinksmanship and the budget plan that basically was all cuts, no revenues. if we're going to restore confidence, we have to have a balanced plan that requirements democrats to make some concessions, and for republicans to make some concessions. you know, you saw the beginning of that with a gang of six. we have to work together. it's the only way people get the sense we may be moving in the right direction. >> let me show you some stunning

numbers. 82% of americans now disapproved of the way congress is doing its job. the highest numbers since the times started polls way back in the '70s. are they right? >> they are right. >> as opposed to a practical problem to be solved, people see us as being totally disconnected in their own lives. they know at work, when they work with people of different points of view, they have to come together to get the job done. they see congress as a debating society. we have to have in the super committee, for instance, folks who don't have handcuffs on from their leadership, saying that they can't make compromises. they have to be empowered to do what we know is always required

to make progress, which is work together. >> if we continue to see gyrations in the market, do you think that 82% disapproved rating could actually go higher? >> yes, i do. people are concerned about jobs. that's really what they are focused on. there's work to be done, and they know it. we're letting the infrastructure fall further behind. we have economic issues to address. we have water and sewer projects that need to be addressed. in red states and in blue at a time. folks who are out of work hanging on to their jobs see us arguing and not taking practical steps, they rightly can be pretty upset with what they're doing. >> congressman peter welch, thank you very much. we'll be right back. >> thank you. pa forry !

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it's been another volatile day on wall street as investors continue to express concerns. at this hour, now hovering near just over 507 points down for the day, joining us now, cnbc's simon hobbs. simon, what's happening today? >> jonathan, i'm having difficulty actually hearing what you're saying, but let me talk you through what happened today. we just lost 519 points on the session down here overall. that means in 14 trading sessions, the dow has lost, give or take, 2,000 points, in excess of 14%, around $2.6 trillion, the equivalent, just to give you an order of magnitude of 17% of the annual output of the u.s. economy. it's very much about slow growth, very much about reassessing where we are on the second half of the year. on that fed statement yesterday when they said we'll guarantee to give you interest rates near zero right for the next two

years has made a lot of people wake up about what is happening, particularly with the american economy, but also with the world economy t at people adjust -- if you were holding on to a stock because you thought it would be earning x in 18 months' time therefore valued so high on the stock market, if you're not going to get any growth in the u.s. economy, you might have completely changed your view, it won't be earning what you thought, and as a result people are selling. there's a lot of trauma in the system at the moment. one of the added problems we have is over in france, it looks like some of the french banks are looking a bit weak. the last thing you said over here is to have a major french bank with funding problems. we don't know that that's what's happening, but it's the rumor. you saw big names fall quite heavily today. that's coming from left field, just making the situation really more nervous for everybody in the market. people are reacting to that. you're not even getting a decent

bid. people aren't coming into the market with some force. yesterday we a rally, a huge swing from the depps, but today it was a very different story, a different mind-set, because they're so worried they'll be hit from left field, so i'm afraid we remain unresolved, and we head into the market into negative territory. back to you. >> simon hobbs, from cnbc, thank you. thanks for watching. matt miller is in for dylan ratigan. he picks things up from here. hey there, jonathan. we're going to try to make sense of this scary stock market plunge and what it all means. dylan himself is coming back for some follow-up on the amazing rant he gave yesterday, which really struck a nerve in the blag osphere. we have a comedian coming by, because at this point we could all use a laugh, and there's more of jonathan on the dill evan ratigan panel. the show starts right now.