let's say you need a car loan.terest rate is going to jump by half a point, up to about 4.5%. your monthly payment will therefore go up we calculate by about $2 a month. doesn't sound bad, but that projection is based on the median car loan in the united states, which is $10,000. lots of people borrow than that for their car and consequently pay more month. what about your home loan? the median debt on a home in this country is $165,000. remember, it's higher in the nation's capital and other bigger cities. if your interest rate spikes up by five points, then your monthly goes up by $50 a month, costing you $500 more per year. >> that would push down the number of buyers for particular types of houses, and put the real estate market into even more of a slump it is today. >> keep in mind, there are some interest rate hikes we didn't even talk about, like credit card rates. these are some of the real-life consequences of this extraordinary political drama that's been grinding on between the president, the white house

if you don't have a car loan and you are going to save up and pay cash for your car, suddenly you're not as concerned about that. if you're not buying a home in this current market, you're kind of missing out because real estate's on sale and interest rates are the best since 1959. oh, my gosh, the real estate market did fine with 7% and 9% interest rates. i wouldn't want it to snap back there instantly while we're trying to recover but over a period of time, we're at unusually low rates. so we're going to be fine in the long term. i think that ali and i have talked about this many times on the air that when these kinds of things happen, jumping in and out of your 401(k) on a panic basis is a good way to lose your shirt. 401(k)s are supposed to be long-term investments. the only people that get hurt on roller coasters are those that jump off. >> i think you would agree that sticking to your allocation makes sense here. you should be allocated, your 401(k) should have to do with your risk tolerance, which is very easy to find out anywhere on the internet. that's what you should be sti

on things like home loans, car loans and student loans. watch for a verdict to brack today in the kasey anthony trial today. the jury reconvenes to decide if the young woman murdered her daughter. >> whose life was better? that's the only question you need to answer. in considering why caylee marie anthony was left on the side of the road, dead. there's your answer. >> the little girl drowned in the anthony's pool. if jury convicts casey anthony of first degree murder she could get the death penalty. >>> the coast guard tells us eight people are still missing after rough weather sank a tour boat, expert can officials are thinking about switching focus now and searching for bodies rather than survivors. about 35 people were rescued. >> we got awakened about 2:30. they had to jump off the boat. they had life jackets on. >> one person is confirmed dead. that one person is an american. >>> and this happened late last night on the west coast. a bus taking firefighters to battle a fire in the a national forest outside of l.a. crashed in palmdale

it would also mean higher rates for people who have home loans, car loans, and student loans, as economist bob brusca explains. >> if you have anything that has an interest charge attached to it, chances are it's a variable interest charge. it will be going up. >> reporter: consumers and businesses could also have a harder time getting credit, the lifeblood of the economy. if the u.s. government can't be completely trusted to pay its debt on time, bankrate's greg mcbride says lenders will become more worried about you. >> if uncle sam can default, lenders are going to be reluctant to lend to anybody out of the fear of risk of default, and then you could get a freeze in the entire credit system. and that's really what puts the economy and all of us at peril. >> reporter: but what if you are one of the few americans that does not rely on credit in your everyday life? well, you're still affected. many states and local governments would experience their own ratings downgrades, pushing up their interest rates. as a result, some states would be forced to cut services, others would opt to hike ta

uncertainty over the debt deal is tough for americans with mortgages, car loans or credit car cards, even money in the stock market. now two of the largest global credit rating agencies, they may downgrade the u.s. triple-a rating. standard & poor's announcing there may be a 50-50 hans. here is elizabeth mcdonald from the fox business network. what does it mean for the average joe. >> what it means, the borrowing rates could go up. more on the bonds to get investors in. lons tied to the ten year notes, their rates would go up. rates on mortgages, rates on credit cards and rates on car loans, nobody is-- the bond market has been reacting nonchalantly. not seeing a lot of action in the yields going up. it could be a short-term problem for the average joe in terms of their interest rates going up. because s & p and moody's is saying that the u.s. government will fix the problem and they'll start paying out, once again and an immediate 45% cut in cash outlays, if the debt ceiling is loan passed, but you know, the bond markets essentially saying, they expect the government to meet its obl

to go back to our car loan you glitchee little board there.erest on your car loan jumps half a percentage point. your monthly payment will go up by about 2 thrarz a month. not so bad, this projection is based on the median car loan in the united states which is $10,000. lots of people borrow more than that for their car, they will pay more per month. how about your home loan? the median debt on a home in this country is $165,000. it's much higher here in the nation's capitol and in other big, expensive cities. based on that figure if your interest rate spikes up by half a percentage point to about 5% then your monthly payment goes up by $50 per month, that we estimate is going to cost you over $500 more per year. >> and that would cut the size of the house that they could buy and the kind of house they could buy. that would push down the number of buyers for particular types of houses, and put the real estate market into even more of a slump than it is today. >> reporter: so those are some of the peel life consequences of this extraordinary po

. >> it would push up rates for mortgages, car loans, and other debt. >>> happening now, a fundraiser is underway in san francisco for the two hikers being held in iran. shane bauer and josh fattal had been imprisoned for two years. the campaign features bauer's photography and their trial will begin july 21st. >>> san jose state is telling some students they may have to live in hotels. they say that off-campus housing will be within walking distance or on the light rail line and they will learn their final housing assignments by the end of the month. >>> there are a few surprises now in stores some of your favorite restaurants. >> coming up, we'll introduce you to the little dog at the heart of controversy. >> it was cool today and speed -- and drizzle as well. it's really delicious, mom. it's not too well done? nope. but it is a job well done. what are you reading, sweetie? her diary. when you're done, i'd love some feedback. sure. your mom and i read that thing cover-to-cover. loved it. thanks. would you mind if i cut the lawn this weekend? only if you let me talk to your mother on

it would also push up rates for mortgages, car loans and other debts. >> area here is the look of theetail bridge. hough >> a sinkhole in san jose on the guadalupe parkway. craig skalar is live out there with more. >> below is as if someone took a knife and cut a piece of cake. it is a serious matter. they have had a problem with this since tuesday night. caltran engineers will be out here any minute trying to get this fixed by midday. fortunately traffic is going the other way in the morning, it is not that big a deal in terms of that but structurally it is a problem. the concrete is about a foot thick. it is about 4-10 ft. long and about 3-4 ft. wide. it is mostly of to the side of that plane is not safe to drive in. that is the off ramp onto,. >> george is our traffic forensic analyst. looking at the size, you say that it appears that this has been prepared before? >> exactly right. you can see the lines in the concrete right there. it had been cut and patched with asphalt. we do not know if this was done on tuesday or if it predates that but it is not surprising that they are cont

that could lead to higher interest rates and fewer car loans. >> our pace is off. so we need tomake sure we catch up. >> reporter: los angeles auto salesman ron wheeler is closely following the political fight, knowing an impasse would serious lay fect his bottom line. what would you say to lawmakers in washington who are duking it out, standing their ground, not coming together on a deal. what would you say to them? >> i'm saying to washington, let's get it together, let's realize the impact it is having on the american people, get out of your vacuum, get off your butt, make a decision, make the tough decision, make the hard decision. because it is affecting everything we do and the american people at the ground level. >> reporter: you describe this fight as what type of feud? >> as of -- as a civil war, a financial civil war. it is a battle over who gets what, you know, for their team. and supposedly we're supposed to all be one team. we have a lot of sacrificial lambs out here. >> reporter: like car shoppers who will have to make hard decisions if rates do go up

what happens to the private guys looking for a car loan, home loan, education loan? those prices go up as well and tied to indexes that why go up as well. this could be a terrible problem for the united states. we're two, three days away from seeing what really is going to happen. >> do you have a sense how it would affect local governments? cities borrow as well. would it affect the rating of san francisco county, alameda county? >> depends on how well prepared they are. a lot of money they get from the feds might be compromised. what's easier to do than say to people, keep taking money away from -- we're just not going to pay you, you have to get along with that. which means public employees get laid off which exacerbates california's problems, much worse than the others, much worse than tany other states. that's a problem. the other thing that can happen, a lot of programs that need this money simply don't exist or have to try to borrow money at some premium. it's a whorrendous problem we'r in. >> what's interesting, this procedural thing. ronald reagan raised the

we balance our budgets at home but i say, wait, i balance my budget at home butcy a mortgage and car loann't that proper analogy to be using? >> it sounds great if you think after country budget like a household budget. but nations are not like households. they aren't. they are sovereign, number one, number two, they print money. they -- and control the money supply in ways that are -- that should be the simulator calm down the economy. it is called economics. it is simply not a good analogy to say, if we have to balance our budget at home every month, the country should have to could do that and be locked in by a balanced budget and amendment. it is true there are dangerous levels of accumulative debt for nations to run and we are getting there. we feed to get a handle on the stat and deficits we have been running. can't be run indefinitely. but you can't make that comparison. it just doesn't work. wrirktsds a. >> it would seen sooem that regardless of what comes out of the house and to the president's desk, to simpson bowls and i come back to the point and say if simpson bowles couldn't

our credit cards, car loans, adjustable rate mortgages will all be paying more. >> all these rates are. >> pretty much, yeah. so basically, if the government has to pay more on its debt, we have to pay more on our debt. >> reporter: and farnoosh has got some advice if that happens. >> if you have an adjustable rate mortgage, maybe right now between now and august 2nd you want to shop around for a fixed rate because essentially a fixix rate is security. but if you're for example a student right now shopping for a student loan, i would opt for the federal loans first. they have lower interest rates. they're fixed. >> reporter: most important, she says, pay down your credit card debt. and save more. in the end, we are all at the mercy of political events here, and of what those guys at the credit rating agencies do. it just doesn't seem fair that what's happening in washington, which is primarily a political fight, a partisan political fight, could have such a significant impact on the lives of so many people who don't care about that. >> talk about caring. you're absolutely right. i alwa

interest rates could go up, mortgages, car loan, student loans could become more expensive. meanwhile, the country could lose its prized aaa credit rating for the first time in recent history, a move many analysts think could plunge the u.s. into global economic distaster. our congressional skorz kate baldwin is up on capitol hill. the political battle there is brewing not only between democrats and republicans, but among republicans, kate, themselves. >> fascinating day, wolf. house speaker john boehner is still working to rewrite his bill right now after cost estimates showed he was falling short. at the same time, he is still working to build support for his plan ahead of tomorrow's expected vote. working hard to secure the votes for their debt plan, house republican leaders met with their rank and file behind closed doors again tuesday. and speaker john boehner was blunt. according to republican sources, h etold conservatives unhappy with his plan to quote, get your ass in line. as members left, there were signs boehner's tough message was getting through. >> shifted to

. >> reporter: a market slide could affect what you pay for mortgages, car loans, financing college. right now, washington is stuck on the timing. democrats and republicans want to tighten this up now. >> i don't think they have they choice. >> reporter: republicans want a short-term deal. cut $1 trillion now. and then, more cuts through the elections. >> and not some short-term gimmick. >> i know the president's worried about this next election. my god. shouldn't we be worried about the country? >> reporter: speaker boehner told conservatives to be ready to make compromises. >> if you break it, you own it. >> reporter: has the world been looking at all of this? one english official says right-wing nutters, as he calls them, in congress, are causing more of a problem for the economic economy than the crisis in europe. >>> the man accused in the massacre and bomb attack in norway, is asking for an open-court hearing so he can explain himself, due to his lawyer. this is a shaken nation that mourns the victims who died. >> reporter: in a country struggling to comprehend the events of th

if that happens, rates would jump from mortgages, car loans, and other debts. drag on through the weekend. >>> headlines now, a nasty collision sent a car plowing into a house. the crash involved three cars and a motorcycle. at clayton street and twin peeks boulevard in san francisco. one of the cars landed upside down on top of another car. there is at least one critical injury. building inspectors are on the way to check the integrity of the house. >> a hunger strike is entering its third week. people supporting the prisoners held a vigil tonight in downtown oakland. prisoners are protesting what they call deplorable conditions. at least 600 prisoners are still refusing prison food. >>> and police say they found another stolen picasso of the new jersey apartment of the man accused of stealing a drawing in san francisco. the chronicle reports a police raid met at a half million dollars in stolen art. the newly found picasso was in a hotel. also accused of stealing expensive bottles of wine back in april. he is expected in court in san francisco tomorrow. >>> ri

plus, what would default mean for you from car loans to mortgages, we'll break it all down next with ron on "andrea mitchell reports." ...was it something big? ...or something small? ...something old? ...or something new? ...or maybe, just maybe... it's something you haven't seen yet. the 2nd generation of intel core processors. stunning visuals, intelligent performance. this is visibly smart. this is my band from the 80's, looker. hair and mascara, a lethal combo. i'm jon haber of alto music. my business is all about getting music into people's hands. and the plum card from american express open helps me do that. you name it, i can buy it. and the savings that we get from the early pay discount has given us money to reinvest back into our business and help quadruple our floor space. how can the plum card's trade terms get your business booming? booming is putting more music in more people's hands. you could save a bundle with geico's multi-policy discount. geico, saving people money on more than just car insurance. ♪ geico, saving people money on more than just car insurance. >>> wi

if that happens rates would jump for mortgages, car loans and other debts.talks could drag on through the weekend. >>> yup. i'm the crazy old lady with the signs. okay. >> but she doesn't care. coming up, one woman's crusade to keep her neighborhood safe. >>> they are doing it every where, gyms, yoga studios, even church basements. but the zumba craze could come at a price for those leaping off the couch onto the dance floor. >> some have been camped out for days. the long lines of bay area wizard fans waiting for the final harry potter battle. >>> from the cbs 5 weather center in san francisco, good evening, everyone. i have been taking a look at the observations in the bay area. one thing is certain. it's cool outside. and now the wind. what you need to know about as eyewitness news continues right here on cbs 5. ,, denny's new tour of america menu. 50 star cuisine. the new tour of america menu. starting at $4.99. only at denny's. america's diner is always open. morning. pg&e says a car hit a gas meter on saint john street about 9:15, causing the leak. no

car loan rates go up. student loans, credit card loans, pretty much everything.very interest rate we see will be increasing. >> the credit ratings agencies likely going to do it or trying to nudge washington to do a bigger, better deal. >> the credit agencies are on the defensive. they screwed up badly before the crisis. they mispriced and misrated subprime mortgages. the pendulum has swung the other way. one of the credit agencies standard standard & poor's said they will not be satisfied with raising the debt ceiling they will downgrade unless the leadership comes forward with a grand bargain deficit reduction plan that is not forthcoming, so it's a good bet that the s&p will downgrade the u.s. >> this is largely some washington argument where they speak in funny languages, they can't get along like grown-ups. i want you to listen to the ceo of walmart, he goes into the stores and he talks to people who work for him and his customers and he says this is part of a growing confidence crisis. >> when i'm out talking to our consumers and with the situation in the e

. >> everybody's interest rates would go way up, car loan, home mortgages, credit cards, business loans, all of that. and it would likely throw the whole economy into another recession. >> some democrats are urging president barack obama to raise the debt limit through an executive order citing the 14th amendment, but the white house says that's off the table and congress needs to send him a bill. >>> a san jose man is being called a hero this morning after rescuing two people who nearly drowned. it happened in a housing complex on miller avenue. a 44-year-old man and his 6- year-old daughter were swimming last night when they began to drown. a good samaritan noticed them and dove in to save them. he pulled them out of the water and performed cpr. both are expected to be okay. >>> skate bordering regulations will be reviewed today after the death of an elderly woman. the 83-year-old died earlier this month after a teenager on a skate board accidentally hit her. now her grand daughter is now asking the city council for improved enforcement and education about skate boarding. the city cou

their mortgage will go sky high and students loans and car loans.sume you are also not only with harry reid, but with the president who was even willing to make cuts in entitlement spending like social security, medicare, and medicaid if necessary to get a deal with the republicans? >> the president was working for a deal that also included not only reform and entitlements, but revenue. that is now off the table. what harry reid is suggesting is not only cuts in spending, but we will cut defense. we will cut by $1 trillion with the drawdown with the war in iraq and afghanistan. this is something the republicans have already agreed to. it was in the budget and will not negatively affect our troops or veterans and the military health care. i'm for that. would i like to get rid of the sacred cows like tax subsidies for ethanol, oil and gas subsidies and the private jets used to take kids to summer camps? you bet. but we are not there. we have to be with the american people. >> would you be willing to go as far as so many republicans would like in the h

here is another practical example, car loans. if you're in the market for a new car, car loan would most definitely cost you more. another example, credit cards. you're going to pay more to keep a balance on credit cards. one more here. one more example for you. you have one of these? stock and bond market could drop. retirement savings and mutual fund investments would take a hit. we've been talking to a lot of you. a lot concerned how a failure to raise the debt ceiling would affect your wallet. take a look. >> concerned, for sure. >> makes up quite a bit of my income, my basic income. i think it's really important, however, that our country, the people that represent us actually do represent us and really want the best for us. >> if credit card interest rates went up, that would be a real problem for me. if it makes borrowing more difficult, you know, i want to buy a new car next year and that might be more difficult. you know, just things like that, you know, basic day to day things that i deal with. my credit cards, trying t

that could push interest rates up on just about everything from mortgages to car loans to student loans. major agencies like s&p and moody's warned that they would still cut the u.s. rating if they deem the deficit deal isn't enough. so they will cut if it they do reach a deal, and essentially if they dochblt that's the biggest rigsing. asian markets were down, there is a lot of red arrows across european trade. a bumpy day on wall street. dream works is reportedly in talks to give netflix the streaming rights to its movies which include "shrek." the deal could be announced this week. it would replace dream works deal with hbo set to expire in 2014. a quick update on the fake apple stores in china i told you about last week. reports say the chinese government found five fake stores in southwest china where an american blogger stumbled upon them and posted about them last week. well, they have shut down two of them pending an investigation but they can't do anything about the others, this is weird and weirder, they weren't selling fake apple products. >> so you can't shut down a fake sto

>> interest rates would skyrocket on credit cards, on mortgages, and on car loans, which amounts to a huge tax hike on the american people. >> the president has often said we need a balanced approach which in washington means we spend more and you pay more. >> the house speaker will fall of the president's prime time tv address with one of his own -- he has been traveling -- having trouble with his own people, so much so that he was forced to postpone a vote on his debt reduction plan. charles, you write that trying to force this issue, turning a blocking minority into a government authority is not just unconstitutional in spirit but self-destructive practice. what is your message to that blocking minority? >> you have gotten as much as you can. it is quite remarkable. the boehner plan achieves a lot of the republican goals. it has no taxes, all cuts, and it establishes a principle of cutting spending if you want to raise the debt ceiling. you have achieved that. there is no way you can achieve more, holding only one house of the congress. take it because otherwise the republican chan

that could mean higher interest rates on credit cards, mortgages and car loans. women's groups continue to voice their concerns over a deal that slashes social security, medicare and medicaid. and if that wasn't enough americans are growing exceedingly unhappy with their lawmakers. a cnn/opinion research poll found 54 percent of people disapproved of the way obama is handling his job and 55 percent had an unfavorable opinion of the republican party. >> eleanor, what is going on in your house? >> when the dust settles on this so-called debate, the response from the american people is likely to be a lot worse than anything we do with the debt ceiling. >> it is likely to be worse but the deal does have the righto elements to it, you'll see businesses start hiring again. right now they are holding on to more cash than ever. i think this will restore confidence in the economy. >> i think that the question will be, where the focus will be as it relates to job and job creation and that focus will be on small business to drive this economy and also as it relates to gover

credit rating is lower, ordinary americans will take a hard hit in the form of higher interest rates, car loans. and credit cards as well. >>> in norway the man arrested in friday's mass murder is being arraigned in the killing of at least 93 people, most of them evelopment that we'r >> a development that we're following now, police have apparently raided the home of the confessed killer's father. in france. abc's richard cantu has more. >> r rorter: police in norway revealed that anders behring breivik still had plenty of ammunition. \when they arrested him friday. this photo shows the shooter taking aimed at a person, an hour r fore thehewin attacks, he posted a political manifesto online. he didn't practice what he preached. >> translator: and he immediately surrendered when asked to do so. >> reporter: survivors of the shooting are still dazed by their brush with death. >> i could feel the warmth of the barrel when he pulled the trigger. >> reporter: breivik has confessed to both attacks. >> he has admitted that he was responsible for the bomb attack and for those killing of those people on

. >> we're fwatalking about mortg, credit card, car loans.ng such close attention. we watched the dow industrials go down, down, down. and the numbers aren't doing any better at this moment. right now dow industrials down 107 points. >> and you remember because we were covering it at the same time, back in 2008, october 2008, just before they passed t.a.r.p., it failed in the congress. the emergency economic recovery funding that was needed at that time. it failed and the market collapsed 700 points in a day. some are saying, you know what, they're going to need to see that kind of action, that kind of drop on wall street, might even see is it today. i hope we don't, but if we see it today, that would spur the house and senate. this will be a tumultuous weekend. they're going to be urged to do something to come up with some sort of compromise and get this job done. i suspect by tuesday morning they will have some sort of if not a band-aid, some sort of temporary solution to move on. even if it's only for a week or two or three just to get ove

that average families would pay more than $1,000 in interest increases on their mortgage, on their car loan, on their credit card rates. so for people to come here and say it's okay to default, it sort of defies imagination. i think that the group of the hard right, which i have to say is not a majority of the republican party, has added an element here that in my 37 years as a legislator i have never seen because it just seems when there are facts that everyone else agrees on, they say no. >> schieffer: you would admit that there are some on the left, who are just as hard and fast. >> there are. and that is true. but what i would say is that democrats have shown throughout this debate a willingness to compromise. i mean, the mirror image of what they do, no revenue, we should say no cuts. and we don't do that. so there are people on the left who would probably say no cuts, but they haven't been able to have their way within our caucus, whereas this hard right group seems to get its way all the time. you sort of get the feeling speaker boehner wishes he didn't have to go along with them but

or good idea to refinance my car loan to pay off my credit card debt.g at this point with her car loan. it has a pretty low remaining balance and only four or five months left until this november when the loan goes away. i don't know any banks that would work with her at this point even if she can get a re-fi. i wouldn't do it. here's why. she needs to discipline to pay off this debt herself. she has four months left. stay the course. pay that $400 every month, in november you will be debt free of that car loan but then transfer that debt over to the credit card. $400 a month on that credit card. $8,000 balance, she will be debt free in under two years. if she can convince the bank to lower the interest rate on the credit card, even better. it will not only get her out of debt quickly but give her the discipline to be out of debt and be debt free for life. >> take the money and pay the debt down. >> pretend that car loan still exists, right, and just put that money towards the credit card. >> probably the first step in psyching yourself rich, right? >>

might be a danger interest rates may go up people beyond the president say that that would mean that car loans then house loans would cost more credit card interest rates would go up your debt would be kind of more expensive global market may go reeling the dollar could be hit the american people would without a doubt suffer or could suffer more than they already are but trun think it's all worth it if obama isn't reelected now trying to live in luxury that will give the just fine probably of the u.s. defaults not the american worker though who would continue to suffer disproportionately and it is sad that we've reach such a place in the national discourse were donald trump who is a millionaire several times over who has bankrupted several companies would feel totally comfortable making such a statement on t.v. . but he's perfectly willing to push the economy off a ledge and risk the health of the u.s. economy as long as obama is gone i guess the birth certificate thing didn't work so this is his second go and that is why we're getting donald trump tonight still time award. all right i made it

interest rates would skyrocket on credit cards, on mortgages, and on car loans, which amounts to a huge hike on the american people. we would risk sparking a deep economic crisis. this one caused almost entirely by washington. so defaulting on our obligations is a reckless and irresponsible outcome to this debate. and republican leaders say they agree we must avoid default. but the new approach that speaker boehner unveiled today which would temporarily extend the debt creeling in exchange for spending cuts would force us again to face the threat of default just six months from now. in other words, it doesn't solve the problem. first of all, a six-month extension of the debt ceiling might not be enough to avoid a credit downgrade and the higher interest rates that all americans would have to pay as a result. we know what we have to do to reduce our deficits. there's no point in putting the economy at risk by kicking the can further down the road. but there's an even greater danger to this approach. based on what we've seen the past few weeks, we know what to expect six months from now.

from your credit card debt to your home and car loans your child's education and your retirement, how close are you to reaching your financial limit? we tell you what you can do now to avoid defaulting on your bills. the latest rage on twitter is the rage against washington. can we still trust our politicians to do what's right for the country? and this one i love, meet america's future leaders. they are girls aged 13 through 17, and they have just schooled the boys at the first google science fair. wait until you hear what inventions got them to the top. we begin with the debt ceiling. while washington continues to try to figure out how to pay its bills, you might be as well. john is with smartcredit.com and car men wong ullrich the author of "the real cost of living." carmen, a fantastic opportunity while everybody is talking about the debt limit and people keep using analogies to the american family and credit card limits, a good time to take stock of your life and how it compares to what's going on in washington. what's your view on this? >> i think there's a big difference betwee

shows the i love you that's a great way to go to the grand imperial trillion dollars was the bush car loan deal you can a was a child the closeness you heard joe said don't need to go and park lawyers read this in the kennel was her job as used to retrieve. welcome back you're watching our t.v. and these are the top stories one hundred people are now officially confirmed dead after a russian preserve sank in a vulgar river in the country's worst boating as astra divers have been slowly pulling the bodies of victims from the wrath of the gary of. washington's missile shield over your of chips away at relations with moscow as the u.s. stands accused of the taking advantage of an say saudi and sentiment to secure future bases in europe the. world's most famous whistleblower julian sounds continues his bit at the high court in london defying extradition to sweden he's one of there for questioning over sexual assault allegations but his supporters fears sweden will be only a staging post to the u.s. . public still on our t's crossed peter lavelle and his guest take a look at the political turmo

if that happens it could raise rates for mortgages, car loans and other debt. on track to exceed $1 trillion for the third year in a row. so what to do? abc news asked a dozen prominent analysts and all said watch your portfolio, yes, but it is too early to make any moves. >> it is a better time to make sure are you not overexposed to any one particular area that is hit. >> if there is no agreement as crunch time approaches experts say you can watch the 10-year treasury yield. that's the price of government debt. it starts going up and it is a sign that the confidence that this budget crisis can be averted and is not that strong. >>> some returning students are getting a surprising e-mail this week. it says their dorm room won't be available and they will have to live in a hotel instead. the housing shortage is caused by too many incoming freshmen, and as don sanchez reports, students and parents are upset. >> i want my student to live on campus because i paid for it. >> gary can from concord is not happy. there is not room for his son sebastian, to return to t

information about how a debt downgrade or a debt default in the united states could act your, your car loant loan. >>> the all-new electric leaf won the top crash safety rating. that puts the leaf on par with its main competitor the chevy volt, which is a plug-in with a gas backup. both cars have been named top safety picks. >>> two out of every three new york city roof tops are thought to be suitable for solar panels. city hall say there is a slew of nirnt ti initiatives on the table. building to building. financial incentives on top of existing state and federal subsidies. if you're looking for that exlewisive facebook ipad app, it's closer than you might think, tell you about iphone. >>> but first, it's national day of all or nothing. so, go big or go home. 20 minutes after the hour. really? 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... f

everyone fears that they might, everyone with a 401(k), everyone trying to get a house loan or a car loan is going to feel this in a hurry. it's going to take the politics around this into another realm and really rachet up the pressure to reach some kind of a deal. >> and rick, from your reporting on this, do the leaders who are holding the meetings at the white house, the dueling press conferences, know how angry americans are already? >> reporter: they do. but they think that all of the anger is directed at the other side. same goes for both parties. both are convinced they have the will of the people at their backs. the problem for them is, there is enough blame to go around. in our latest abc news/"washington post" poll, last week, 80% of people said they were dissatisfied, even angry at washington. that's up 11 points in just the last month. and david, if there is no deal, we're only going to see that move in one direction. >> angry with them all, as you point out. rick klein, thank you. >>> now, to norway tonight. the death toll now up to 93 after the two terror attacks, one after

, it's uncertain as to whether or not interest rates will spike up and affect credit card loans, car loans, mortgages, student loans and the like. if the bond market is more worried about slowing economic growth, rates might fall even if the ratings agencies downgrade our debt, because recession would be a bigger worry than default, because ultimately i don't think the united states, however crazy this moment might seem, will default on its obligations. and it's a mixed picture right now. today we got some very good news on the employment front. jobless claims fell below 400,000 for the first time in many, many weeks and that's good news which may be one reason why the stock market's holding up reasonably well. but there is going to be this balancing act about worries about slower growth and the debt rating that could lead to higher interest rates. in event, if you get a rise in interest rates, you get smaller bond growth. higher rates or a recession that causes lower rates, i know that sounds complicated, but it's pretty crazy. >> ron, just the tone on wall street in general right now is

so it's harder to get home loans, harder to get car loans, harder to get business loans and until you have banks loosening up those requirements and they have been doing that. going into the crisis, they were quite loose in the depths defendant financial creases in '08 and '09. credit became extremely tight. it's starting to come off. but after a depression like this, we have seen this all over the world throughout history, credit is just very hard to come by, and it is something that only heals with time. >> there is a headline in the washington post that reflects on the topic, says key indicate orders show confidence in u.s. credit. would you agree with that assessment? >> some indicators now that are actually showing that the disney is maybe moving toward a better path. we have seen over the last three months a lot more fear about the economy's trajectory in the aftermath of the japanese tsunami and what that did to the apply chains around the world and the sharp jump in gasoline prices to about $4 a gallon. weak consumer confidence and business confidence and slowed down the path

car loan rts exempted from this. this is an example of a failure to understand what we're talking about. secondly, he does have wall street support for this bill. i think he mentioned the american bankers association and the notion that the community banks aren't involved is nonsense. the community banks are favored here because the consumer bureau is given the right to examine banks of $10 million in assets or more but can't examine the credit unions and community banks. that was a recognition that -- of that. i yield two minutes to the gentleman from north carolina. the chair: the gentleman is recognized. >> the reason that they want to discuss whether it should be five members on the commission or not or one director, that's the only thing you can debate in this bill. i also disagree with the argument that everybody wants to protect consumers. no they do not. we saw what happened in the last decade. we know who was doing it. it was the most powerful industry in america and they were making a ton of money by cleati

that would impact everything from mortgages to car loans and credit cards.ou may not be able to pay down balances before next tuesday but you can help yourself by not adding it to the load. >> we can address the credit card by simply putting less on the card. again, using more cash. your interest might go up, but the amount outstanding will go down. >> reporter: take stock of all student loans, check in with lenders to see what might happen and how they might help. >> it's certainly a wise idea to contact your lender, always have a good relationship with your lender, keep the communication lines open and see if there's anything that can be done. >> reporter: a monthly budget helpful in any financial climate but especially when things are uncertain. it you're looking for more wiggle room, try making calls about recurring bills like cable and mobile phones and insurance. >> if you can prove yourself to be a less risky consumer in those regards with car insurance and home insurance, you might be able to get 10 or 20% knocked off your bill. >> reporter: and make

residents on an average of $336,000 in credit card payments, home and car loans.a, and it's also one of the top states in reducing personal debt over the past year. they have to work all that out, i guess. >>> the heads of a media news corp here. piers morgan was mentioned in the hearing. he was editor in chief of the news of the world. he went on to edit the rival paper. well during the hearing, a british member of the parliament accused piers of something. those allegations are in incorrect. there is no such admission of guilt. she is now retracting her statement and releasing an apology. in a letter released today she writes i wrongly stated that piers morgan, formerly editor of the daily mirror had been open about personally hacking phones in a book he wrote. this was based on my misreading of a an article in the daily telegraph. well, rumors on twitter that morgan was suspended from cnn are also incorrect. >>> tropical storm don has texas now in its sights. right now folks along the coast are making last-minute plans for the storm's arrival. where they don't

you take a direct hit on your mortgage, credit card bills, car loan, student loan, home equity loan. on any loan you got. this will have a personal affect on you. as tough as it gets to you for an individual human, it gets tough in all the same ways for they are going to schedule some votes for maybe -- i don't know, you business on the 16th of never at a quarter past yeah right? joining us now, john stanton, washington reporter, roll call reporter, thanks for joining us. >> good to be here. >> what's going on right now among republicans that there does not seem to be a sense of urgency there. do you think it's negotiating tactics? >> yeah, i think it's a negotiating tactic sort of within their own conference frankly, i think the leadership has a sense of urgency privately right now. seemed like they had it out there in public a week ago and they backed away from that. they are now supporting this cut, cap, and balance bill the conservatives want, this is more really a negotiating tactic with their own conservatives, trying to convince them they are serious about trying to pass these

interest rates are going up significantly and everybody is paying higher interest rates on their car loans on their mortgages on their credit cards and that's sucking up a whole bunch of additional money out of the pockets and murdered people i promise you they won't like that so another recession interest rates going higher crossed the board for americans are these consequences that you see being the consequences of default at the united states doesn't reach an agreement to raise the debt ceiling that we're we're going to the recession regardless you know we're good we're on it we're still in a depression but. the default is not an automatic consequence of not raising the debt ceiling the governess collecting over two trillion dollars a year in taxes i think the interest payments on the national debt are actually three hundred billion a year much are the exact number but we have roughly ten times the money we need so the only way we will default on our obligations right now we might do it eventually but the only way we're default in august is if congress and the president choose to do tha