>> reporter: it's been fascinating. this conferee's thing, i'm excited to see the articles that come out about this. because this really shocked a lot of people. >> luke, i know we are going to be sticking with you in the next hour as we continue to watch what good tuesday morning. right now, 800,000 furloughed. another million working without pay. your world may be different when you leave the house. investors run for cover as the stock market hates uncertainty. and if that wasn't enough, the next battle over the $16 trillion debt ceiling is right around the corner. good morning, i'm betty nguyen. no deal. the government is shut down for the first time in 17 years. it's being called an unnecessary blow to the american people. we'll tell you what it means for you. first the clock hit midnight

with democrats and republicans still pitted against each other. and the firestorm, well, it is hotter than ever. nbc's tracie potts has the latest overnight. >> reporter: starting this morning national parks are closed. political trials on hold. social security payments possibly delayed. food inspections scaled back. and many head start preschools shut down. lawmakers left capitol hill early this morning thoroughly frustrated. >> this is ridiculous. >> we are back to square one. >> john boehner named eight people to negotiate a plan to re-open the government. >> i would hope that the senate would accept our offer to discuss this so we can resolve this with the american people.

>> reporter: president obama had a midnight message for u.s. troops. they'll get paid, but civilians face furloughs. >> you and your families deserve better than the dysfunction we're seeing in congress. >> reporter: democrats and republicans are at odds whether to put the brakes on the affordable care act. sign-ups start today. as 800,000 federal workers show up to close their offices. tracie potts, nbc news, washington. >> thank you, tracie. now we turn to nbc news political reporter casey hunt. we got to talk about this. who really are the winners and the losers in this besides those 800,000 being furloughed. >> reporter: those who won't see their paychecks are the biggest losers. the democrats and the president are counting on republicans losing out.

that's something senate republicans and other sort of moderates in the republican party are fearful of and worried about. at this point it's not clear how this gets resolved unless one side really starts to feel enough pain that they're will tock give to give in. >> reporter: they're worried how this looks. congress' approval ratings are low and everyone who i've spoken to up there is aware they're not doing any favors. overall american trust in government is down. the brinksmanship has gotten so difficult and gridlock so difficult to work through that at this point, members really don't see the end game. >> yeah, let's talk about the gridlock. what is so interesting to me in all of this. at the core of the shutdown

centered on obama care not being affected by it, in fact, it is open for enrollment as we speak, correct? >> obama care or the president's new health care law has rolled out officially today. the website healthcare.gov is open and taking applications. those health care plans won't start obviously until the start of the new year, but for democrats on the hill they've argued the two are disconnected and republicans are making an arab the arbitrary decision. one republican, senator tom coburn, commissioned a report that a government shutdown wouldn't do anything. >> kasie, thank you. the government shutdown is having a ripple effect at stock exchanges all around the world and your 401(k) and other

investments, they could take a beating. for that angle of the story we're joined from london by the host of "worldwide exchange" ross westgate. right to this. the markets have been down several days in a row, monday was no exception, the dow is down 128 points. how is this shutdown affecting futures? >> well, now that we've got the fact of the shutdown our markets feel fairly comfortable with it. european market have gotten higher and futures indicating are the well and be the same as u.s. opemarkets open around 2:3. markets like to build in the price of something happening and buy it when it happens. the key, though, from here, betty, what happens. how long is this shutdown going to be? how rancorous are they going to be and when they're supposed to

be raising the debt ceiling, that will be something that worry investors, if there looks to be problems with that we look to get a sell-off. >> goldman sachs says a shutdown could cost the u.s. economy 8 billion a week. what are investors zeroing in on? >> reporter: i think it's what you're talking about. it's how big are the divisions. how do we close them. we had a 21-day shutdown as you know back in 1995. the interesting thing is when you look at all the shutdowns, the last 17 shutdowns we've had since 1976 in market terms haven't been significant and have always raglied back. no big market melt many down -- meltdown. so what is interesting how that dictates discussions around the debt ceiling.

maybe if they get too much anger from the public it may mean they'll be less willing to have a conflict over the debt ceiling. that's the real key. >> that debt ceiling is really key. hard to think about in the middle of this. we'll take it one by one. now for a look at the weather here's bill karins, all right, bill, we need sunshine and the shutdown storm. >> one of those beautiful days in washington, d.c. that we've ever had on october 1st. it's going to be absolutely gorgeous. it's just this weather pattern just shaping up to be a very interesting october if we keep the temperatures like this. i mean, these high temperatures this afternoon, i mean if i showed think weather map you'd probably tell me it was maybe the beginning of september, you know, even late august. look at that, 80 degrees, as far north as new york city, minneapolis at 77 degrees. i mean it doesn't get much warmer than this for october. one thing of interest we are watching the tropics, there's a 50% chance that little circle

over cuba or south of there does develop. if it does it will head to florida or the northern gulf states. none of our computer models and conditions do not look favorable for a big storm like a big powerful dangerous storm that could do a lot of destruction but could be a tropical storm so that's what we'll have to watch and could add moisture ahead of the cold front into the beginning of next week but for today, i mean, as advertised there's not many travel concerns out there today, betty. this is 75 degrees. >> you couldn't have created this better, right? >> not for october. it snows in october in the northern half of the country. >> it is october 1st, isn't it? welcome to it, bill. le some representatives may have been having cocktails too. those details next. [ lane ] do you ever feel like you're growing old

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now here's a special edition of this morning's dish of scrambled politics as congress worked late into the morning a spokesman for speaker john boehner released a photograph of the speaker on the phone with president obama. the brazen boehner even did his best obama imitation on the house floor. >> i talked to the president earlier tonight. i'm not going to negotiate. i'm not going to negotiate. we're not going to do this. >> 87% disapprove of the job congress is doing as cnn poll found that only 10% of those survey add prove of the job congress is doing. now there's no information on who that 10% is or what they approve of. and that same poll found that 31% see the tea party in a favorable light while 54% had an unfavorable view. just hours before the funding deadline huffing tone post reporter jennifer bender

said "just about every other house lawmaker i just talked to smells like booze". officials says the panda cam requires federal resources to staff and run them and have not been deemed essential. stephen colbert had a field day talking about the federal government as if it were history. >> yes, tonight the united states government ends. what a dramatic arc. started out as a highly sympathetic character in the 1770s. but in just 237 seasons it has transformed into an egotistical self-destructive maniac. >> and that, my friend, is your morning dish of scrambled

politics. okay, it's time now to dig deeper into the politics of this government shutdown. boris epstein is back from us and kasie hunt. good morning to you both. >> good morning. >> all right, boris, let me start with you and what is the point of this? what's being accomplished here? it doesn't seem like anyone is winning. >> nothing is being accomplished. it's a really big mayes take of the rand pauls of my party. no positive for them. specifically for someone like ted cruz and rand paul who wants to run for president in 2016 this is a losing formula. newt gingrich has tried to run for president and has failed several times. the only people winning, chris christie on the outside saying i wasn't a part of it. >> ksaie, what happens this morning as the stat reconvenes at 9:30?

>> reporter: the senate will come back and senate majority leader harry reid says they will reject this latest gambit by the house to set up a conference committee and that sets the stage for the house republicans to argue that, hey, we actually want to be talking more about this and it's the senate that's rejecting our attempts to negotiate. but from the democrats and the senate's perspective that's a no w -win situation. so from what we can see we're in for more no brinksmanship. >> as that deadline loomed it was a strategy but a bad one, right? >> kwai, it seemed like there was definitely going to be a shutdown and no two ways about it and now they have to come out of this somehow no longer last, the worst it is for my party. >> any idea how long it will last? they were talking maybe four days. >> four days to a week but if it

lasts longer than that we have to worry about the markets. right now the panic camps are cued and concerned about some of the national parks but when the market gets affected that's really the negative tensions coming out. >> a lot are being affected. 800,000 are furloughed. kasie, while we're in the throes of this, important to point out if the u.s. breaches its debt ceiling that might even be far worse than this, correct? >> reporter: that's -- you've seen that being play the out throughout this government shutdown fight and republicans have always felt that on the one hand, they have potentially a better opportunity to get their fiscal priorities through on a debt ceiling fight. but as you say it does risk the country's credit rating and one thing we haven't seen so far in the debate is a major market crash or fluctuation or problem and that's something that many of these freshmen house republicans who are leading this charge haven't really experienced before and they're probably going to be under an

intense amount of pressure as we head toward a potential default. >> what are you hearing, boris? there's not much time between now and october 17th. a government shutdown we are in the floes of right now then the other deadline looming that could cause financial crisis, globally perhaps. folks in washington, are they getting this? >> no. they're not. they didn't get it last year. they didn't et two years ago and not getting it now. they're getting paid while the government is shut down. to me that is absurd. if you shut down the government your one job to do to fund the united states government you cannot be paid until it starts working. it sends a message they cannot get their act together. right now talking about the congress, the president does need to step in and find a way out like bill clinton did in 19 -- >> something has to be done. kasie, are you hearing anything from the obama administration? >> reporter: there was definitely some sort of

simmering tension on capitol hill late last night as we were heading towards this shutdown that the president is going to have to get more involved. obviously we saw him speak to the american people yesterday on this issue. but from what we can tell, this is still a back and forth between senate majority leader harry reid and house speaker john boehner and at this point all we can see one of those two people is going to have to give and the president is sort of staying out of the day-to-day negotiation. >> almost sounds like politics as usual. okay, thank you both for being with us today. we do appreciate it. just ahead, caroline kennedy is one step closer to becoming ambassador to japan and all the day's headlines, those are next. ? tickets? hmm, sure. how many? well, there's hannah, maddie, jen, sara m., sara b., sa -- whoa, whoa. hold on. (under his breath) here it comes... we can't forget about your older sister! thank you, thank you, thank you! seriously? what? i get 2x the thankyou points on each ticket. can i come? yep.

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a senate committee found time to approve caroline kennedy to be ambassador to japan. the foreign relations committee cleared her nomination by a voice vote. in colorado, five hikers killed by a massive rock slide in the sut central part of the state. boulders weighing more than 100 tons came hurling down into a popular viewing area. new jersey is appealing a judge's ruling that paved the way for same-sex marriage. governor chris christie wants the state supreme court to decide it and his administration wants a delay of when they can start currently set for october 21st. as expected, the justice department filed suit monday against north carolina. now, at issue is the state's new

restrictive voting laws including a mandate to show photo i.d. at the polls. celebrities, well, they have taken to twitter to share their feelings about the government shutdown. jim gaffigan tweeted given that they are shutting down the government i guess i'm not working out in protest or solidarity or, well, i wasn't going to anyway. b.j. novak tweeted "i hope everyone is 100% clear on the difference between a government shutdown and "the purge." well, in monday night football, it was the battle of the unbeatens, the saints' offense scored early in the first and defense had a good handle on miami's quarterback, ryan tannehill and drew brees, 413-yard game complete with four touchdown passes and the saints remain undefeated. 38-17. well, the jaguars' mascot is seen owning up to a bet here.

unfortunately he lost to the colts a's mascot after the loss 37-3. he took 40 shots from a paintball gun to the chest. ouch. i felt those before. they leave bruises and welts. poor guy. coming up, bill karins and page hopkins will be here for "first buzz" and what caught our eyes today. our clothes look like a million bucks oo, maybe we could sell our clothes. [ female announcer ] whirlpool recommends using tide, bounce and downy to keep clothes looking newer 50% longer. great on their own. even better together. he was a matted messiley in a small cage. ng day. to keep clothes looking newer 50% longer. so that was our first task, was getting him to wellness. without angie's list, i don't know if we could have found all the services we needed for our riley.

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welcome back to our first buzz talking about obviously the government shutdown and how this is going to affect so many people. breaking it down, you're really looking at how it affects the health care. >> who knew about the parks but the fda is suspending most routine safety inspections. so think about this for food,

the most routine safety inspections being suspended right now. >> how do you know -- >> they'll handle high-risk recalls and the centers for disease control and prevention reducing their capacity to fight the outbreak of disease. so they're only dealing with high-risk outbreaks. all the other things going on -- >> we are heading into the peak of the flu season and, you know, this is when we find out there is a new strain we have to get. >> yeah, exactly. >> it's frightening when you break it down. it's not only, you know, our health but also research and other things like nasa, right? >> nasa has taken a big hit, you know, we do have five astronauts on the national space station supported by 600 workers at mission control but the other 16,000 nasa workers will be furloughed. one of the things i do forecasting the weather i can't do my job without my government. we have thousands of national weather service employees employed by n ochoaa and they w

be employed and stay staffed. they're considered essential employees. >> here's what's frightening to me. for anyone who is about to take a flight somewhere, the faa is going to furlough about 3,000 safety airline safety inspectors so these are the people that check the airplanes and check the pilots, as well. so, you know, i don't know how you feel about getting on a plane while the government is closed down. >> the u.s. department of agriculture is going to continue with all the inspections for the meat, the poultry and egg. >> and you still have to pay your taxes. don't think that's not going to happen. the good news the audit office is closed. >> yay. silver linings. >> but that 1-800-help-line. no one is answered. i know you're probably saying no one answered anyway. >> the biggest thing all central employees can get their money

but is congress an essential employee at this point? do they deserve their money? >> they should be -- >> if you're going to deem these places should be shut down, you should be shut down as well. who needs the government to be running at some point? i'm betty nguyen. this is "first look." stay tuned because "way too early" starts right now. >> as president and as your commander in chief, i've worked to make sure you have the strategy, the resources and the support you need to complete the missions our nation asks of you. and every time you've met your responsibilities and performed with extraordinary professionalism, skill and coura courage. unfortunately congress hasn't fulfilled its responsibility >> that's president obama speaking to members of the armed forces, not lawmakers as the federal government began to shut down shortly after midnight.