given all the credit to voters based on the polls acknowledge our political reporter for the business insider in our new york studio thank you having me. well when we look at the heart of the economy we look to american cities and states from wisconsin to now minnesota like we just talked about it since states are suffering from the same symptoms plaguing the federal budget are you correspondent moralists or gives us another look at the toll it's taking on americans all across the country. actually it's the reality america cannot escape with the city's roughly two hundred eighty million dollars that more and more people are talking about bankruptcy and news of debt like that hitting cash strapped cities and states all over the country all together it could amount to two trillion dollars and a bill many may not be able to pay the problem of the state and local dept is more serious than the real estate bubble serious because with millions of americans still unemployed and losing their homes there isn't enough taxpayer money to pay creditors local governments which aren't allowed to operate in t

worried about how the shoddy track record to begin with joe weisenthal from the business of business insiders going to be here to talk about that and don't forget at the same time folks we are still out war a few of them actually at a price we cannot separate from our fiscal crisis any longer yet it is all being overshadowed by money talk we will tell you all the details you need to know about afghanistan pakistan and other places where the u.s. is dropping bombs still plus senators may be sneakily in talks to renew a law that lets by agencies track your location at any time with no oversight we'll have all of that and more on tonight's show but first what did the mainstream media . all right as the fall continues to threaten the country the mainstream media took a break from their coverage of that to report on the horrible fate that has bee fallen a popular game show host take a look. game show host alex alex through back found himself in serious jeopardy when police say an intruder broke into his san francisco hotel room to state evening jeopardy game show host alex are back toward his achi

catastrophic to economic recovery i'm wondering just your take i know you cover this for the business insider kind of different aspects of this why do you think republicans are so i'm willing to budge on taxes even when you know the large majority of their constituencies wouldn't be unhappy that whatsoever. i mean i think that's a question you often hear democrats asking of republicans but really what we're seeing is two different visions of minnesota or visions for the different it's the united states of america presented in these talks the question is should government be larger and take care of take care of all that citizens and should their government better or smaller government better self-reliance more important as republicans will offer and this is an age old problem that comes up every time the state budget negotiators but it's times like this when you see large deficits minnesota has a five billion dollars deficit to close this year that these really come to a head and that's what we're seeing here it's you it's two different visions for for the state and for the country i think tha

business insider is report that china wants to get in on facebook. they want to buy part of facebook which is ironic because facebook doesn't really have friends in china. >> that's right. it's quite a headline, isn't it? china looking to buy a huge chunk of facebook, according to publication that quotes a facebook insider saying the china investment corp., china's sovereign welfare fund, is looking for this. facebook, as we all know, is blocked in china. beijing has lock blocked facebook as well as twitter but all the while allowing local social networking rivals who thrive and continue operating inside the mainland which is of course the world's largest internet market. just under 500 million internet users. back to the story from business insider, nothing confirmed yet. there's lot of buzz about it. no one is talking about it but it's getting us talking about it. >> i want to ask you something else. notice a lot of things aren't trading today because of the holiday but currencies are the tiebot is getting a lot of talk because the first female pri

discuss the situation and are joined live from new york by zeke miller he's from the web site business insider thanks very much indeed for being with us here on our t.v. so if lawmakers do fail to strike a deal what would that actually mean for the u.s. economy and indeed the world economy. a lot of that faith thank you for having me i mean this really comes down to what the credit agencies do you know if the government you know reaches obviously if the august second deadline does does come and pass without a debt ceiling increase you know the government will shut down but it won't necessarily default right away if it happened money to last themselves a few weeks but the impact the impact on the u.s. economy the world economy and the global economy really depends on what the credit agencies do and you know we heard from moody's on wednesday and then from s. and p. yesterday both warning severe consequences if the government doesn't raise the debt ceiling in time including a possible downgrade from the government's aaa rating and the bad increase of borrowing costs not just for the federal gove

that well here to help us understand all of this is joe weisenthal he's deputy editor of the business insider and it's so nice to see you. thanks for having me so first of all as i just pointed out minute ago and as you pointed out and you're writing the track record of these ratings agencies isn't exactly stellar do you think that means that if the u.s. gets downgraded it won't be armageddon. well no i don't think it will be armageddon that's not to say there won't be issues there are the key thing is that there are investors who are compelled by regulations or rules that require them to hold aaa credit and that could become an issue in the u.s. lost that status and how they would never give that. becomes a problem as you said earlier one thing going in the u.s. is favors that there isn't that much other aaa rated. credit out there of any volume so it's not like people can just switch to something else it's pretty scarce so popular a line of thinking is that if the u.s. were to lose its aaa rating that all those rules would be suspended or ignored but you know you don't really know how thing

musto is one of millions falling for the bait after catchy headlines even though he knows the business inside out in america we don't break the law per se but they do have sleazy tactics i mean they will slam a story they probably make up sources i mean when you read them a source. a source said well who is it many times they can just make up the quote themselves. from queen said blah blah blah a lot of times i feel they're just inventing these quotes to back up the thesis of the story fascination with scandal is almost really just we observed in the u.s. and great britain we are both countries and both media environments gossip sells and there's a tremendous interest in celebrity both countries are of was after rupert murdoch's news of the world newspaper phone hacking shocker broke. his empire stretches wired why across the u.s. as well let's not forget he owns the new york post the wall street journal and the daily protest outside murdoch's big apple protesters demanded an investigation into his publications that we know. because he was and we want congress to investigate what he's doing h

could fail to resolve the deadlock quickly or effectively by seek mellor from the business insider website says both democrats and republicans understand the danger is further borrowing the dangers of whether. the impact on the u.s. economy the world economy in the global economy really depends on what the credit agencies do. you know we heard from moody's on wednesday and then from s. and p. both warning severe consequences if the government doesn't raise the debt ceiling in time including a possible downgrade from the government's aaa rating and that increases the cost not just for the federal government but for seven thousand across the country the united states i don't think anybody thinks united states is getting away with this any longer there. sort of reached the point where every everybody in both parties agrees that the debt is just too high and they're just they can't borrow any more you can't be borrowing for you know the sort of annual expenditures it's not a sustainable model for any country if this debt ceiling goes up or if the u.s. credit rating is downgraded then that woul

michael musto is one of millions falling for the bait of catchy headlines even though he knows the business inside out. they do have. a story they probably make up sources i mean when you. said well who is it. just make a call themselves. a lot of times i feel they're just inventing these quotes to back up the thesis of the story fascination with scandal is almost religiously observed in the u.s. and great britain we are both countries and both media environments and gossip sells and there's a tremendous interest in celebrity both countries are of was after rupert murdoch's news of the world newspaper phone hacking shocker broke in london his empire stretches far and wide across the u.s. as well let's not forget he owns a new york closed the wall street journal and the daily at a protest outside rupert murdoch's big apple pad protesters demanded an investigation into this publications at home we know what murdoch does in england because he was caught and we want congress to investigate what he's doing here in the united states we don't know if newspapers or other people in this country yet but i s