chrystia made a good point. the government says 14 million unemployed and if you add in the underemployed, people that would like to work full time but can only find a part-time job, so you've got 22.5 million people in the united states who are either unemployed or underemployed and a lot have been unemployed for a very long time. what's the prognosis for them? >> we've got a long haul and it will take a few years to get the unemployment back to what you were suggesting in the 2004, 2005, 4% or 5% unemployment. even then i don't think we get back there because as chrystia pointed out, we have a lot -- a large number of long-term unemployed who will have a great deal of difficulty getting back in the job market, because they've been out of work for so long. >> let me ask each of you in closing and i want to bring up on the screen here the sector changes. the government bled 30,000 more jobs across the country state and local governments don't have money. they're laying people off. here's what grew, manufacturing

ali velshi, chrystia freeland. and david walker, currently heading up the comeback america initiative. ali, there were people who said today's sell-off was a reaction to the debt ceiling deal. you disagree. >> i do disagree. markets don't take four days to respond to a deal. this was about the european central bank trying to prop up the euro by buying bonding back. folks in europe ended up panicking. italy, the eighth-largest economy in the world has a serious debt problem. and europe is too big to fail. they can't let italy go. and europe doesn't have enough money to back it up and spain up. you identified it well. every day, it's a different problem. and everybody gets to own it. tomorrow, it will be back to the united states and unemployment. today, it was about europe. generally, it's a mix of international global concern that's adding to the confusion. it all came together and just built and created this momentum today. very unusual. and a little bit weird. but that's what did it. >> chrystia, what message do

chrystia, thanks for that analysis. christine, i think you should start a campaign for people to get their elected officials to come together on this one and try and fix it up. >>> one of the biggest concerns out there is jobs. there are actually sectors that are hiring. we'll tell you which employers are looking to hire next on "your money." [ male announcer ] do you have questions about medicare? are you wondering about your options? with over 30 years of medicare experience, unitedhealthcare medicare solutions can help. just give us a call. the annual enrollment period to switch your medicare coverage is earlier this year, from october 15th to december 7th, so now is a great time to review your situation. i'm looking for help paying for my prescriptions. [ male announcer ] that's a part d prescription drug plan. choose a stand-alone plan, or combine it with a medicare supplement plan. it's all in our free guide. is there a single plan that combines medicare parts a & b with medical and drug coverage? [ male announcer

chrystia freeland, thank you. david walker, we'll talk about that coming up. >>> more, next, on how the sell-off could affect president obama next year. stunning new job approvals and disapproval numbers for congress. goes to what ali said about gridlock. and lawmakers finally agreed to fund the faa. we talked about this last night. they all went off on vacation while thousands of airport and construction jobs were on hold. while congress bickered. airline safety inspectors were told to use their credit cards to pay for expenses. >>> later, judgment day for the polygamist leader, warren jeffs, on child rape charges. his bizarre defense. gary tuchman and mike watkiss and his last remaining lawyer, joins us, as well. use magnesium, llips' caplets an ingredient that works more naturally with your colon than stimulant laxatives, for effective relief of constipation without cramps. thanks. [ professor ] good morning students. today, we're gonna... new splenda® essentials™ no calorie sweetener with b vitamins, the first

chrystia, thanks for that analysis.istine, i think you should start a campaign for people to get their elected officials to come together on this one and try and fix it up. >>> one of the biggest concerns out there is jobs. there are actually sectors that are hiring. we'll tell you which employers are looking to hire next on "your money." ight above my weight class. but i did. they said i couldn't get elected to congress. but i did. now i'm trying to make it in music. ♪ sometimes when we touch ha ha! millions of hits! [ male announcer ] the new hp touchpad. get it now for $100 off, starting at $399.99. ♪ ♪ [ recorded voice ] onstar. we're looking for city hall. i'm sending directions to your car. [ recorded voice #2 ] turn right on hill street. go north for two miles. ♪ [ man ] this is onstar. i got a signal there's been a crash. do you need help? yes, please. i've got your gps location. i'm sending help. [ female announcer ] introducing onstar fmv. get it installed on your car at best buy or visit onstar.com for more s

this is the phenomenon we call self-insurance and chrystia is absolutely right.s so high and there's so much questioning as to whether washington can get its act together, people prefer to self-insure, it makes a lot of sense for an individual but it doesn't make a lot of sense for a society and that's why the risk of recession has gone up. >> so, then, going forward, is there anything this president can do? and i'll broaden the question because we do know the president can't do anything by himself, because the republicans control the house, the senate has veto power, the republicans do, on the republican side, is there anything washington can do to inspire confidence, the president wants to extend the unemployment tax and the payroll tax, is there anything in there big and bold enough to change the dynamics? >> i don't know if it's big enough or bold enough, but it's something. bob schiller has talked about maybe you should go further than the payroll taxes and create a kitty, he suggested $20 billion, say that businesses that hire new employees should get a $5,

those changes with far outlast this recession itself. >> so before i get chrystia freelened in, what is it to worry about? earnings will be forever lower? is it the fact there's a whole new culture and psychology that may set in? >> i think there are two things worth worrying about. one is the average duration of unemployment is nine months. there are millions of people who have been out of work for a year, two years, more. those people will have an extremely hard time finding their way back into the work force, and so i think there's a real risk that they won't do that, and the economy somewhat shrunken will simply move on without them. the second risk, though, is i think to young people. when i started my reporting for this book, i fully respected young people would bear the lightest scars. they don't have many responsibilities, they're in and out of the work force anyway, but what we know is just the opposite. academic research shows how you start your career is to a large extent how you finish. people who start out behind never catch up. it's not just an economic issue, though, t

. >> what about that to chrystia's point, letting the bush tax era expire?n't think it's up to any agency to tell a sovereign nation how to put its finances in order. what they need to be concerned about is where are we headed with regard to deficits and where are we headed with regard to debt to gdp and it's part of elected officials to decide how to bring those numbers under control. and has already has been said, there's no question we're going to need revenues 18% of gdp, which is historical average over time, in addition to entitlement reform and cutbacks and restraints. but we're dealing with a very economic recovery right now. we have very high unemployment and it's not just a matter of what you do. it's how you do it and when you do it that matters. >> ali, what do you think this means for ordinary -- go ahead, ali. >> i was just going to say to david's point, there's a problem with that analysis. s&p has been very clear, the very public threat of not upgrading the debt ceiling and not paying bills being used as a political tool was part of the decis

chrystia freeland is here, also, richard quest. richard, let's start with you.s have questionable credibility, but now, we're talking about an investigation into possible criminal wrong doing. your thoughts. >> the name of the investigation is whether the actual analysts wanted to give these securities a lower rating. whether the business managers at the firm said no, they have to have the triple-a rating. if it is true, then that is the serious matter and for s&p, which has already been lambasted for the way it hangs on to march backed securities and its times over the u.s. debt downgrade, i suspect if it's true and it ends up going forward, it would be very bad for its reputation. >> now, chrystia, one of the things we say to people, those global ones, the difference is, we don't pay for ours. these guys were making money on the deals they were those deals, which might have influenced their decisions to rate them better than they should have been rated. >> right, exactly. i think what this investigation gets at and i agree with richard, you know, an investigat

chair of the black caucus, and analysis from greg ip, an economic editor of "the economist," and chrystia freeland, editor of thomson reuters digital. i am candy crowley, and this is state of the union. >>> what a difference a year makes, or not so much. last year at this time, president obama was vacationing on martha's vineyard, and that's where he is today. last year he said -- >> a year and a half ago the economy was shrinking rapidly, and the economy is now growing. >> this year he is saying -- >> america is going to come back from this recession stronger than before. that i am convinced of. >> unemployment was above 9% in august of 2010, and a year later it still is. compared to last summer, fewer americans approve of the president's handling of economy, and more say the economy is getting worse. joining me from michigan, senior obama campaign strategist david axelrod. thank you for being here. i want to ask you first -- >> sure, candy. >> the president is going to have the new jobs plan and a stimulus that is coming up in september, he's going to announce it. tell us what you know

qaida is trying to recruit people over here such as they did with the subway bombing in new york chrystia the attempted subway bombing times square bombing these are all people living legally in the united states we have the most popular cable news network saying that all terrorists are muslims and warning of warning americans about victory mosques in new york city in tennessee and hate fueled caliphate springing up to bring shari'a law to america. not all muslims are terrorists but all terrorists are muslim and if you are an eighteen to twenty year old most wanted man you should be strip searched and if we don't do that there's a very high probability we're going to lose an arab building that victory mosque on what's in essence a burial site would be both destructive and cold hearted for the families of nine eleven victims the most dangerous scenario is that radical muslims seize power and put sharia law into the place same thing these are all components of the hate machine killing us all with fear and driving some of us like strawman to lash out in violence but islam is not the real thr

. >> greg ip and chrystia free land, thanks so much for coming. >>> up next the top stories and then us your approval. so we thought, why not give a little back. the chevy model year wrap up. get in on our greatest model year yet. and now, very-well qualified lessees can get a low mileage lease on a chevy cruze ls for around $169 a month. our greatest model year yet is wrapping up. and those people are what i like to call wrong. take metamucil. sure it helps you keep regular, but it doesn't stop there. metamucil is the only leading fiber supplement with psyllium, which gels to help remove waste and reduce cholesterol. it can multi-multitask. it's so 2012. look at it! it's doing over a million different things right now. metamucil. ask more of your fiber. and see katie before she goes home. [ male announcer ] with integrated healthcare solutions from dell, every file is where dr. ling needs it. now she can spend more time with patients and less time on paperwork. dell. the power to do more. sure, but let me get a little information first. for broccoli, say one. for toys, say two. toys