aaa rating on a negative watch list. this is a serious development that presumably will put enormous new pressure on members of congress. >> reporter: it certainly could, wolf. there's no question about it. now, what house republicans are planning to do is hold a vote tonight, maybe as soon as the next few hours, on a new proposal, something that they spent all day revising after their initial proposal clearly didn't get enough support within their own republican caucus that they presented this morning. let me tell you what it is that they're going to be voting on. number one, reopening the government immediately and funding it until december 15th. so that would be a month earlier than what the senate had planned. also, lifting the debt ceiling and extending that until february 7th, and then with regard to obama care, there are so many discussions about provisions, little things that they could tweak around the edges. what conservatives convinced the house speaker to do is to eliminate all of that and just focus on one t

find out that it was not aaa was triple c. or worthless entirely and this is what we've been saying we've been advocating for this for years i beg to china to do this i beg russia to do this so not only is russia taken my advice and bought lots of gold but now russia is taking my advice. participating in this new global credit rating agency head by none other than dominic do view pan well the important thing here is that you mentioned it would read directing wealth which is misallocating capital of course what happened over the course of the past decade or so is that with this collusion between the rating agencies the banks and the accounting firms the audit firms that they they were mis allocated all of our global capital so we have all these unsustainable bubbles backed by a dilapidating economy we don't have the economy because the capital is not flowing to places where it should be and instead is flowing to places like the u.s. where there are perhaps like one of these c.d.o. sold by goldman sachs they're going to be sudde

it is problematic because we are the aaa and a lot of people hold instruments because of the aaa and also treasuries are used as collateral so it would mess up the plumbing of the system. so we need to avoid not just for the good of the u.s. but for the good of the global system, we need to avoid more downgrades. >> richard you're i know a calm guy. you always make me feel a little more secure when i listen to you and i sense youfolioportfolio. what would you say for a typical investor would be a good asset allocation as we move into the last quarter of this we're and into 2014? >> i think separating views and vantage point from long-term money, tyler and short-term money. long-term money we stay invested in and the theme i hit with the team is if we don't believe there is a flat left-tail event coming and we didn't around this, we put a low probability of an all default around this, you stick the course and to me, i think the most important for upside from here is recognizing how high we've risen. we have markets up 20%. it's an out standing year. most investors feel really granddau

it is problematic because we are the aaa and a lot of people hold instruments because of the aaa and also treasuries are used as collateral so it would mess up the plumbing of the system. so we need to avoid not just for the good of the u.s. but for the good of the global system, we need to avoid more downgrades. >> richard you're i know a calm guy. you always make me feel a little more secure when i listen to you and i sense youfolioportfolio. what would you say for a typical investor would be a good asset allocation as we move into the last quarter of this we're and into 2014? >> i think separating views and vantage point from long-term money, tyler and short-term money. long-term money we stay invested in and the theme i hit with the team is if we don't believe there is a flat left-tail event coming and we didn't around this, we put a low probability of an all default around this, you stick the course and to me, i think the most important for upside from here is recognizing how high we've risen. we have markets up 20%. it's an out standing year. most investors feel really granddau

find out that it was not aaa was triple c. or worthless entirely and this is what we've been saying we've been advocating for this for years i beg to china to do this i beg russia to do this so not only is russia taken. my advice and bought lots of gold but now russia is taking my advice and participating in this new global credit rating agency head by none other than dominic do you view pan well the important thing here is that you mentioned it would read directing wealth which is misallocating capital of course what happened over the course of the past decade or so is that with this collusion between the rating agencies the banks and the accounting firms the audit firms that they they were mis allocated all of our global capital so we have all of these unsustainable bubbles backed by a dilapidating economy we don't have the economy because the capital is not flowing to places where it should be and instead is flowing to places like the u.s. where they're perhaps like one of the c.d.o. sold by goldman sachs they're going to b

. >> aaa said multiple factors are coming into play. the one they are seeing more in this past week, supply and demand, especially from furloughed federal workers. >> less motorists on the road, particularly in the washington and maryland areas. that could be having an impact as well. >> add in the end of the summer driving season and the switch over to cheaper winter blend and it's the drivers saving big. >> absolutely. i work in bowie and that's a distance from here. i have to watch my gas price s. at $3.23 i said it ain't going to stick around forever, i better get it now. >> reporter: aaa thinks the gas prices will continue through the rest of the year. >> thank you. this morning maryland drivers ay ing an average of $3.32 a gallon for regular. that's down 22 cents from a month ago. >>> a portion of frat street -- pratt street will be closing at night. this evening it will close traffic from 10:00 p.m. through 5:00 a.m. this thursday. >>> in anne arundel county a firefighter is recovering after being hurt in a house fire in pasadena

aaa rating because of the fiscal impasse in washington d.c. ali joins us in the studio, and it's becoming a regular gig. and it's probably the most disturbing night of this so far. >> it's a problem. >> give us what it means for them to come out with this. >> it's pretty serious to suggest that it's putting the u.s. on what it calls the negative rates watch. which means that they're going to keep looking at it and evaluating. they said the same thing that it said in 2011 when it did downgrade. fitch is still keeping the u.s. at a aaa, but it's the constant thing, the crisis it crisis and threat of defaulting. it's not that nobody knew any of this stuff. but there are funds around the world that invest in u.s. treasuries that cannot invest in things if the consensus rates go down. right now, one of the rates is already lower, and if it goes down, people will have to buy something else, like swiss bonds or canadian bonds that are rated higher, and that puts pressure on interest rates. that's the concern. we're all worried that if this goes bad,

rated those were the highest rated and some were not so highly rated even the aaa is fell in the end because they were essentially backed by something that was not worth very much money but the very top rated bonds in those funds would get paid the first income streams out of the cash flows so what we're seeing now instead of being backed by subprime bonds they are being backed by income flows from these rental properties so the very highest rated bonds and some of these it looks like they're going to get aaa rated again and again i think investors would know better but why are these so coveted by investors while it's like the game of musical chairs or hot potato it's the person who gets the investment less that loses and there's a lot of money to be made in the meantime so everybody thinks they're smart enough to get out at the very end that's what this looks like so the person who gets it last loses well and for in this case the person who's holding on to the security the security at the very end they will lose because by that time the income has dried up for these properties so le

rated you could borrow ninety percent against a aaa rated government security that uses leverage they sold them off people borrowed against it if street was such a terrible place that if they were you know if wall street was the problem people would be going to jail because i assure you that obama and the attorney general would be going after him so the point is you say this stuff and it's nonsense the reality is we do have a debt ceiling problem and the reason we have a debt ceiling problem is we have to print money devalue our currency and we're going to become like japan where they have two hundred fifty percent of their g.d.p. is their debt that's the problem that we're going to have it is a problem less and you've got to learn you don't know where all street but you write books about it all right a little bit of a fella pair philip dewey does the u.s. have an economy does the u.s. have an economy to record towards the rich. well let me let me answer something that before i get to that so i think you know worrying about getting to levels of debt to g.d.p. that japan has right now

rebajarÍa la xlas fui ocasiÓn de estados unidos, que en este momento es aaa.ha vuelto a estancarse. >>> se suspendieron las negociaciones, del senado para terminar con el cierre del gobierno, y evitar un im impago de la deuda nacional y a su salida la lÍder demÓcrata si los republicanos quieren un acuerdo con cambios, a la ley de reforma al cuidado de la salud. tendrÁn que aprobarlo solamente con sus votos. y el portavoz de la casa blanca, anticipÓ, que el presiono aceptara un plan con mÁs medidas sobre obama ca re. >>> hemos dicho que no pagarÍamos un rescate, cambios la ley del cuidado mÉdica accesible para los republicanos del t partÍ que han cerrado el gobierno por su oposiciÓn a la ley este senador se siente disgustado con lo que llamÓ la traiciÓn de los republicanos de la cÁmara. >>> esta traiciÓn, ha hecho:porque el no aceptar el acuerdo bipartidista del senado con el reloj andando, nos queda casi 48 horas antes de llegar a un momento... >>> su lÍder en el pleno del senado. dio seÑales de alarma. y dijo que el crÉdito de la naciÓn, podrÍa afectarse hoy

hours to go before the default deadline, the senate is back at the noon, with the aaa credit rating happening in the balance. >>> it might be right versus left, but 51% of the public is right down the middle. fascinating new details about where we stand. >>> extreme bullying. two teens charged with felony aggravated stalking after another girl jumped to her death. >>> plus, an american hero recognized. >>> oreos as addictive as cocaine? >>> and train trouble for a woman trying to avoid police. >>> good morning. i'm richard lui. we are now less than 20 hours away from a key treasury deadline. if an agreement is not reached, the nation could default on its bills. >> my expectation is it does get solved. but we don't have a lot of time and so what i'm suggesting to the congressional leaders is let's not do any posturing, let's not try to save face. let's not worry about politics. do what's right. open the government and make sure we're paying our bills. >> all right. now, the house, tuesday, abandoned a last-ditch effort to pass its own legislation. >> there have been no decisions about what exa

according to aaa, the national average for a gallon of regular unleaded is $3.35, down 21 cents from a month ago and the d.c. metro area is lower with an average of $3.31 a gallon. aaa says it doesn't see any signs of prices heading back up any time soon. >>> if you think human trafficking doesn't happen in your neighborhood, think again. i'm peggy fox in fairfax. coming up what police are doing to combat this growing trend. >> reporter: millions of americans visited the website for obamacare, but how many are signing up? we'll explain why insurance companies are worried "i'm terry mcauliffe, candidate for governor, and i sponsored this ad." these are birth control pills. more than half of american women use them at some point in their lives but ken cuccinelli sponsored a bill that could have made common forms of birth control illegal, including the pill. cuccinelli was one of only five senators to support this "potentially radical intrusion into domestic, family and individual decision-making" why is ken cuccinelli interfering in our private lives? he's focused on his own agenda. no

standard & poor's at the threat result downgraded our aaa ratings. have a quote from forbes about what is going on and that the current impasse creates an atmosphere of uncertainty that could affect confidence, investment, and hiring in the u.s. and that this sort of political brinkmanship is the dominant reason why it is no longer a aaa. obviously they have no more authority to upgrade that ratings score. what are we doing here? are we driving this into a recession? >> it is amazing, the failure in leadership on both sides of the aisle, abdication of responsibility, we have not had a budget under regular order since 2007, neither party is getting it done. the president right now is not helping the situation, making speeches, taking shots at everyone instead of pulling people into a room and telling everyone to get the job done. the residual effect, as you had acts -- ask, the shutdown is devastating to the micro business, people opening cafeterias, food trucks, concession stands, those are the real people getting hurt. on top of that, government emp

on warning for a downgrade of its aaa rating because of threat of default. susan mcginnis, cbs news, washington. >> because of senate rules it takes days to pass bills even with bipartisan support. the process can be sped up but it requires the approval of all 100 senators. >>> happening today, another 7,000 workers in the bay area could be furloughed as part of the goverment shutdown. as sharon chin reports, shutdown procedures are already under way at lawrence livermore and sandia laboratories. >> reporter: employees leaving lawrence livermore and sandia national labs wonder if they will return the rest of the week. this engineer is worried. >> we live paycheck to paycheck. >> reporter: employees will get paid early for new year's eve and president's day holidays to cover lost time. they can also cash in vacation pay or go without pay. >> we'll have to come to an agreement. why wait until the last minute? >> reporter: a union rep says life is already tough. >> many of our employees are going through foreclosures and short sales and some are even in bad sha

in fact, s&p took down its aaa rating on the united states a couple of years back here. so what does it mean if fitch now moves from this negative rating that they've imposed to a knockdown on the aaa? the question really is we don't know. i mean the answer is we don't know. in reality, it meant nothing when we saw s&p do it. in fact, if anything, it reinforced the view that the u.s. was still the best house in a bad neighborhood when you looked at the situation in europe and in emerging markets. but now we have the debt ceiling issue there and the prospect or the potential for a default may be that changing the situation anticipate tests the holders of treasury's nerves. we watch this carefully but no immediate reaction really in the fixed income markets. i want to move you on. there is another story that, again, people are watching closely in these markets and that's whether the treasury is able to prioritize its payments and just make sure bond holders get their coupons paid. perhaps ahead of social security payments or to government workers. there is an argument goin

billion dollars to buy a company if they're willing to say that this steaming pile of dog poo is a aaa rated security that i'm going to borrow against then so be it that's the new papacy in the post-capitalist world the vatican pope of goldman sachs and j.p. morgan says i deem this crap to be to replace it there was collateral review security. months ago here just a couple of hours time coming up right after this next break though staying with the u.s. to a closer look at gun control on a small counting kentucky with firearms a part of everyday life for them. switzerland will soon vote if they should start giving out thousands of dollars in cash to every adult citizen in the country you heard me right there's a grassroots campaign that is trying to get the government to give to every adult says a two thousand five hundred swiss francs. proximately two thousand eight hundred dollars per month the motivation for the project is that many in switzerland fear that the financial crisis has caused wealth inequality to skyrocket you know i'm not an expert at swiss culture so maybe people there

billion dollars to buy a company is if they're willing to say that this steaming pile of dog poo is aaa rated security that i'm going to borrow against then so be it that's the new papacy in the post code. because world the vatican pope of goldman sachs and j.p. morgan says they deem this crap to be to replace the collateral with the security. that's coming out and a closer look at gun control in the us and a small county in kentucky where a firearms are part of everyday life. you know as i look more and more into it i find that there were a lot of myths and exaggerations about what happened in russia during the soviet era however one really bad rumor seems to be true if you were an outspoken advocate against the soviet status quo then you could be considered insane and be locked away until the psychiatrist convinced you that khrushchev was brilliant scary stuff but sadly famous grammy award winning singer lauryn hill might be living the life of a soviet does that right now she was convicted of failing to pay five hundred thousand dollars in taxes but strangely according to the internat

. >> reporter: trip pal aaa of the -- triple aaa of the mid- atlantic agrees. >> of the 511 fatalitiesst year on maryland roads, approximately 50% of those were a result of a distracted driver. >> reporter: maryland state police estimate or at least by the study says looking at your mobile phone is equivalent to having a blindfold on for five seconds behind the wheel. another law that goes into effect tomorrow, october 1st, the courses that everyone inside a vehicle must be wearing a safety belt, that includes people in the back of a vehicle. that's a change from before. back to you. >> all right, thank you, kai. some lawmakers have questioned whether police will be able to determine if a driver is using a mobile phone if the phone isn't clearly visible. >>> a major bust at thur ged marshal airport. they discovered dozens of fake i.d.'s and fraudulent credit cards in the checked baggage of two passengers. police took the two off the plane to question them. they were cited before being released. the investigation continues into what the credit cards were intended for. >>> the ravens hav

aaa says another option is missouri where the state average is down to $2.94 a gallon. road trip, my friends. let's go. >> before we go, what do you have for us in the next half- hour? >> maybe you've heard about this. mystery barges popping up around the country. >> no, i hadn't. >> we'll talk about what that's all about coming up. >> that's called a tease. thanks, jess. >>> a top intelligence official opens up to congress about u.s. spying on world leaders. interesting sound bite coming up. >> plus, a dust storm causes deadly crashes that shut down a major interstate. >> and ahead in sports today, n.f.l. officials are going to meet with the oneida indian nation over the redskin name change or >>> 10 after 5:00 on this wednesday morning. some of you are seeing showers right now. that's going to be the case on and off for the next several hours but a better afternoon in store. here's your forecast. just take a little rain gear, maybe an umbrella for you this morning. got cloudy skies in d.c. but just off to the west into fairfax even and prince william and western charl

aaa says it will make the roads safer. >> you cannot legislate common sense. you cannot legislate good behavior. these are things that are put into place to make you safer and to make other drivers safe as well. we think it's a step in the right direction. >> police are ready and willing to enforce these laws starting today. kim dacey, wbal-tv 11 news. >> thank you. maryland sweeping new gun control law is also effective today. salee new measure bans the of 45 types of assault style weapons and requires fingerprinting and a license to buy a handgun. a group of advocates filed a lawsuit trying to stop the new law from going into effect. doug gansler filed a counter argument on monday. 57 degrees at the airport. >> bank fees continue to go up. where baltimore ranks for atm fees. >> some airlines might be offering things you might want to pay for. >> ava marie live at the inner harbor hard rock cafe getting ready to show off their brand- new space. let's talk >> now weather and traffic on the 1's. bitt has gotten a little busier in the last few minutes. in odento

treasuries again even if they were in default i think they would still be a aaa but you know you have to look beyond that nonsense i mean president obama said that we have to raise the debt ceiling because america always pays its bills she that's a lie we never pay our bills that's why we have seventeen trillion dollars of debt that's unpaid bills what the president wanted to do was raise the debt ceiling so we can go on not paying our bills because the truth is we can't afford to pay our bills that's why we have to borrow more money and if we save this theater of the absurd matter for. i think the title for this play was obamacare and while i understand that it has very little to do with the actual problem i think many for in theirs are extremely surprised why and merican get so worked up about how to care something that i understand is very expensive but at the same time something that is crucial for survival but at the same time we never get similar debates on let's say military spending which is exorbitant and most americans would probably be able to do without it why are america'

treasuries again even if they were in default i think they would still be a aaa but you know you have to look beyond that nonsense i mean president obama said that we had to raise the debt ceiling because america always pays its bills so that's a lie we never pay our bills that's why we have seventeen trillion dollars of debt that's unpaid bills what the president wanted to do was raise the debt ceiling so we can go on not paying our bills because the truth is we can't afford to pay our bills that's why we have to borrow more money and if we save a big theater of the observed matter for i think the title for this play was obamacare and while i understand that it has very little to do with the actual problem i think many for in there is an extremely surprised why and mary can get sore worked up about how to care something that i understand is very expensive but at the same time something that is crucial for survival but at the same time we never get similar debates on let's say military spending which is exorbitant and most americans would probably be able to do without it why are amer

government aaa rating for a possible downgrade.takeo joins us live in the newsroom now and ryan, the shutdown could furlough thousands for bay area workers as soon as today, right? >> frank, that's right. >> reporter: 7,000 workers at lawrence livermore and sandia would be furloughed. some may leave for the private sector. imagine your frustration if you didn't get paid. >> reporter: for worried workers like jerry lin, it's upsetting. >> we know eventually they will have to come to agreement. why wait until the last minute? >> reporter: lin is one of 7,000 workers who wonder if they will work the rest of the week. for some life is already tough. >> employees are having trouble buying groceries. >> reporter: you think these federally funded projects aren't complex? think again. researchers would leave all that behind. >> you're not allowed to work at home. >> reporter: frustrating? >> yeah. >> reporter: some say it will jump-start a brain drain meaning highly qualified scientists would leave for the private sector. >> going to lose

aaa says it will make the roads safer. >> you cannot legislate common sense or good behavior. these are things that are put into place to make you safer and to make other drivers safe as well. we think a step in the right direction. >> police are ready and willing to enforce these laws starting today. kim dacey, wbal-tv 11 news. >> the sweeping new gun restrictions are also firing up for the first time today. magazines are limited to 10 rounds. a group of activists trying to get a temporary restraining order to stop the new law. police saw an unprecedented number of applicants. >> 5:07. 53 degrees at the airport. >> five hikers killed on a trail. we will tell you where when we cover the nation. >> this is 695 at greenspring avenue. everything is moving smoothly. >> officials in colorado say a rescue operation is turning into a recovery mission after a deadly rockslide. five people were killed on monday. they were caught in a rockslide. one hiker was pulled from the debris. the rest are presumed dead. south korea is displaying weapons capable of hitting north korea. more than 1

fitch rating service has maintained its aaa rating for the united states, but places it on negative watchciting the prolonged congressional negotiations over a hike to the borrowing limit. this is getting very serious. this is exactly what harry reid was talking about earlier today. will that news -- is there any news that will shake the tea party to reality? >> well, unfortunately, ed, we have been hearing from those tea party republicans over the last weeks, and they have been very open about it. they actually think going into default is a good idea, and they have this theory, as you know, that somehow it will be okay, because the united states will be able to pay our debts to the chinese government and to all the bond holders. of course, that would be at the expense of all the folks on social security. all the folks who rely on medicare. our troops in the field. so republicans continue to push this notion that somehow it would be okay, even though it would be terrible not only for all those americans, but it would immediately undermine the credit rating of the united states. as you're

and in truth, there are, in my opinion, five consistent buyers, large buyers of the aaa peace.cent, you're wrong, there's 10. okay, i give a. there's 10. it just to be hundreds. so whether it is five or 10 for the aaa, you don't have much of a market and some recent this and the spread is widened by hundreds of basis points at a time. so what are we going to do? we're going to keep taking these loans that are now agency, and were going to go put them where? we're going to have a nonagency market, i think we need to pay a lot of attention to bringing back those institutional investors who made up the nonagency market. it's true, i recognize there are a lot of reasons for the lack of investor confidence. except when the government puts its money at risk. rating agencies are still developing new rules, and frequently the rules a develop make no sense. i mean, if you take the problems of the bubble period, bald and loans, and to take the experience of that period and to put it in your rating model, it's almost impossible to make the elevations work. by the way, all of that stuff is

was downgraded from its aaa was not just because the debt ceiling became very close, the deadline, butl paralysis. if you look back at what the rating agency said, it was the inability to reach compromise that took it to the edge that was one of the principal reasons. indeed, in hindsight that was justified because the great committee that was put together failed to reach an agreement, and if you listen to what they're talking about now, the idea of coming to some long-term budget or fiscal agreement, the rating agencies would say, well you didn't do it last time. why should we have any doubt or belief you'll do it this time. i've been looking at numbers which makes the point very clear. if you look at the u.s. treasury's website and some numbers aren't updated because of the shutdown but you do see on the daily cash management list that the treasure treasury is now running $20 billion, $30 billion a day it has. it closes the account at the end of the day. compare that to last year, wolf, the treasury was closing the day with $60 billion, $70 billion a day. what's happened is they have

no more authority to to upgrade that than that that aaa rating score so what are we doing here are we really driving the economy back into a recession well it's amazing since that point of failure in leadership on both sides of the aisle abdication of responsibility again even after the downgrade we still haven't had a budget under regular order since two thousand and seven neither party is getting the job done nobody's governing and the president right now as well is not helping the situation he's out there making speeches taking shots at everybody instead of pulling people into a room using the pope but he has been telling everyone let's get the job done but the residual effect is you had asked is this shutdown is devastating to the micro business people opening cafeterias food trucks concession stands and as this continues on those are the real people that are getting hurt on top of that go. women employees trying to pay a mortgage everybody is getting hurt really again for except for lawmakers because their paychecks keep coming but i do before i let you guys go i do have to show