chrystia freeland joining us now. chrystia, between the recent job numbers, the recent gdp numbers and the fact that we are now on the brink of doing something that could cause interest rates to go up, chrystia, are we in a position where we might actually be causing our economy more harm in the effort to do it good? >> yes, absolutely. bob reuben said to me if the debt ceiling is not extended in time, this will be the greatest unforced error in economic history. and i think that's absolutely right. the thing to really remember is this is not an imposed crisis. it's not like lehman where there was an external issue there. this is a manmade, congress-made crisis. and with the weakness of the economy that you rightly pointed out, it is really irresponsible to be playing with this sort of thing. >> it is highly irresponsible. i want to let my control room know that i don't actually have any video of what's on tv. i do have to tell you, there's this issue of the newness of what we're doing. in fact, there's nothing new abo

that for the last segment with bernard-henri levy from france, simon schama, bret stephens and chrystia freeland. bernard, what the the mood in europe with regard to greece. is there a sense this is one more week of crisis and they will somehow muddle along or is there a more fundamental fear to put it blently, that the european project is falling apart? >> i think that is the risk and concern, of course. we had the feeling, us europeans that we could sleep, and during our sleep europe was flourishing and blooming. we're discovering that this is not the case, europe might not be in the sense of history, that europe might destroy itself as much as build itself. we are discovering that it is afraid and fragile project. it does not mean it's in the process of being broken, but it means that if we don't act quickly and strongly probably we will go back 50 years and backwards. it would be very bad for the free world, including, of course, america. >> chrystia, you understand the finances better than most. i understand the politics. the math doesn't add up at some level. greece simply cannot pay back

you have to have that longer-term view on where america is losing it. >> chrystia freeland, bret stevens, simon, bernard-henri le levy, thank you very much. we will be back. introducing the schwab mobile app. it's schwab at your fingertips wherever, whenever you want. one log in lets you monitor all of your balances and transfer between accounts, so your money can move as fast as you do. check out your portfolio, track the market with live updates. and execute trades anywhere and anytime the inspiration hits you. even deposit checks right from your phone. just take a picture, hit deposit and you're done. open an account today and put schwab mobile to work for you. >>> now for our "what in the world" segment. it is the perfect summer blockbuster for audiences around the world. action packed and not too taxing on the brain. the new "transformers" movie broke the record for july 4th tickets sales in the u.s., and it's been smashing records in many of the 110 countries around the world where it's showing. it's already made half a billion dollars worldwide. but there's one country that it's n

chief white house correspondent jessica yellin and kate bald win are live at their posts and chrystia freelandd the meeting with the republicans which is the most important meeting just broke up. what do we know about what's happening behind/c closed door there at the white house? >> reporter: publicly the republicans can't talk about anything else except what they're dealing with, the cap, cut and balance proposal, but the idea is how do they get moved forward, john, and they don't want to openly talk about this fallback option, the reid/mcconnell plan, because there aren't the votes for it in their party. the other proposal, the other notion that's sort of out there is an idea of taking something gang of six-like, building a ga framework that has kind of targets and cuts, caps, and spending principles in it that's pretty -- it's sort of outlined but not detailed in legislation and has a big, big dollar figure around it. so, sort of the big plan. passing that along with a debt ceiling as sort of a big theory option instead of this mcconnell/reid plan, but it's so vague, as you can tell, and

terry savage is still with us and joining the conversation, chrystia freeland. those comments justified or is this just business folks lashing out at a guy they don't like? >> i think the latter. i'm sorry you didn't have some of the wall street ceos on your list of businesspeople lashing how at the president. they've been complaining, too. the complaints are familiar to all of us. i don't really understand what they are whining about. the fact is taxes are still at the levels of george w. bush when you had the big, big tax decrease. the president spent a lot of money on the stimulus. i think that someone like steve wynn should be happy about that. that was an effort to goose the consumer economy. what they don't like is that the president sometimes talk about tax increases but they haven't even happened yet. >> terry, what do you think? >> business hates uncertainty. business in america has a very good ability to deal with current conditions but not with the uncertainty about the future. that's what's been generated out of washington steve wynn is a man who's cr

chrystia freeland thanks for being with us. >> my pleasure. >>> now to cbs news correspondent elaine quijano for the rest of this morning's headlines. good morning. >> good morning to you at home. it's not going to be much of a holiday weekend in minnesota. state parks and museums are closed, the result of a budget standoff between the democratic governor and republican legislative leaders. all highway rest areas are closed and you can't get a fishing license. social services are cut. 22,000 state workers are temporarily out of work. talks to end the deadlock are not expected to resume until tuesday at the earliest. >>> some 12,000 residents who live near the nation's top nuclear weapons lab in los alamos, new mexico, could soon be heading back home. the wildfire is no longer a threat. the lab has been closed for almost a week as a safety precaution. the fire burned more than 162 square miles in the past six days. there were no reported injuries. >>> the new york attorney general reportedly is promising to continue a civil fraud investigation of the bank of america. the investigation

joining us now to shed some light on what august 2nd will look like if a deal is not reached is chrystia freeland and david weiss. what is august 2nd going to be like and does anyone honestly know how it's going to play out? david? >> the sky is not going to turn black and you're not going to go down to the post office and it's going to be closed. basically what's going to happen in washington they have to go to plan "b" and as you point out there's not going to be, the debt option is not there. they can't borrow money and put things on the credit cards. they have to take tax receipts to pay the bills. the problem is that when they need $1, they're only going to get 60 cents and basically that means they have to cover that 40 cents that they can't pay people and have to decide who they're not going to pay, that could be social security people, that could be medicare, could be military pensions, could be contractors, so the treasury hasn't told us how they're going to do it exactly. we know eventually these cuts are going to happen. >> we don't know what plan "b" like. the reality is we're borrowi