what does larry summers think is the red line in which this administration, because it has made compromis it did not expect to make on the revenue side, has it not? >> three bottom lines. one, default must be avoided. and default must be pushed out of reach as a possibility until after the election. second, demand has to be supported through continuation of the payroll tax cuts and other measures. >> rose: that's immediate. >> that's the immediate stimulus to demand. and third, there has to be a balance between core interests of the two parties. if the core ierests the democrats have in protecting medicare are to be sacrificed in the me of deficit reduction, there has to be a willingness on the republican side to look to revenues. >> rose: if they're not prepared to look at revenues, then what then? >> then medicare has to be protected. the debt limit has to be extended. the economy has to be suorted. and we need to have an election campaign that debates the merits of these two philosophical things. >> rose: can the country wait for that? can the economy wait? >> the economy can wait for

. >> where are you willing to compromi compromise?lanced budget, on revenue, willing to compromise on the left of spending cuts? where are you willing to compromise? tell me where? >> i would say yes in all of those thing. yes in the sense we're willing to consider different balance budget amendment proposals and open to different negotiatings positions as far as the amount of immediate cuts and statutory spending caps we have to have in addition to the fact this so far was in and of itself a massive compromise. difficult to convince this many republicans in both houses to get on board with the idea to raise it's obama debt limit. >> and this -- what you just said -- >> guess it when bush was requesting a -- >> you know what you just said, a, willing to compromise, insist a balanced budget cuts and no new revenues. that's not compromise. no. with those parameter, then you're not negotiating. >> i am, these are the -- >> democrats don't agree. so can you reach a compromise? >> nonsense. we have 23 democrats in the senate who have said

. >> well, there is a difference of meaning of that word compromi compromise. >> are they stretchingey were compromising for the raising of the debt ceiling, and now it is to which mr. reade hid had litt input in, and off to the side of the house floor as we speak right now, speaker boehner is still twisting arms. this is an intense effort, and it is a squeaker. a lot of folks and the popular thing is that it will pass, but it is by no means a slam dunk right now. >> so, speaker boehner is still having to do the arm twisting and persuade people even though we expect to vote within an hour? >> well, within probably two hours is safe, but it is still a lot to go this the way of persuading folks to come on over. look, the idea that the loss of leverage has not resonate nod the folks very much to the right of speaker boehner on this issue. if you look at a it from the macro level, martin, what happens to the republican cause on the debt limit if this is not out of the house? some folks are willing to sacrifice that on the republican side staying true to the purity of the let's cut spendi

is some anger, isn't there, from democrats about the extent to which the president is prepared to compromi compromise, but isn't he right the do so given the perilous state of the debt ceiling discussions and the impending deadline? >> well, first of all, there is no agreement. there are a lot of rumors flying around about what may or may not be in an agreement. for example yesterday there was a story that the white house agreed to $3 trillion in cuts and no revenues and that is what understandably got a lot of people worked up. the white house has been clear today and from the beginning that any balanced plan is going to require real revenue. so i think that it is important for us to, you know, focus on what the president says actually will be in the plan and not what some of the rumors suggest. again, to go back to your point here, democrats in the congress are prepared to do a balanced plan, and that does not mean that we will agree with every element that the president may propose, but again, we think that the balanced approach is the right way and we have said that we will accept agai

i can confirm that today there is still no progress toward a compromi compromise. whatever hour it is east coast time and no further along toward a deal than they were this morning, piers. >> that's quite extraordinary. i'm going to turn to jason chafitz, one of the 22 republicans who voted no to the boehner bill. he joins me now. let me ask you directly, do you really have your country's interest at heart? you are rejecting anything to do with a bill by your own guy, and even that bill has been rejected by democrats. you are so way out of step with public opinion, aren't you? >> well, it's nice no chat with you, piers. i would hope our first conversation would be a little more pleasant. of course i put my country first. >> let me -- let me respond to that the reason i'm animated about this, is because i think the american public are absolutely sick and tired of this situation, and every minute goes by with political posturing, the american economy is getting worse and worse and by the time you guys all stop squabbling it might be too late anyway. >> i think the fa

the president has urged a compromi compromise. he did it on twitter. he had a plea for his followers to tweet their members of congress and it led to a lot of people to stop following the president. we are talking about over 30,000 people in the midst of all of this. the president's campaign twitter handle sent out a flurry of tweets saying tweet your congress member. the president lost over 30,000 followers after making those pleas. make that what you will. >>> also the debt crisis may be hitting the stock market hard. this is a big fear. stocks ended their worst weekly showing in more than a year. according to the financial data company wilshire, $700 billion of market value just gone. the dow fell 2.4% for the week. the nasdaq was down 3.6%. although we are told the deadline to get a deal done is on august 2nd, that would be next tuesday, they need to try to get something done by this weekend and give the markets confidence before they open on monday. >>> also, listen to this, if the government wants to do something about the deficit, here is an ide

. >> hard line purity will ultimately hurt them in the nation founded on political compromi compromiseprocess has been based on negotiation and compromise. the tea parties have gridlocked governing and threatened to drive the economy off a cliff. disabled veterans and poor children and the elderly will be hurt if the tea party gets its way. jim said it will hurt them and hopefully it causes the extremists to be voted out in 2012. every time i hear on the news, it makes me wonder what they are putting in the tea they are drinking. go to my blog. wolf? >> life and death in a wealthy southern california community. a family's bloody nightmare creating shock and suspicion. sandra is in coronado, california. >> it's a puzzling mystery in this ocean-front community. this historic mansion behind me, a possible crime scene. it started on machine when police say 6-year-old max fell down the stairs of this 27-room mansion near san diego and was rushed to the hospital. two days later, 32-year-old rebecca was found naked, hanging for a second story balcony in the home. her hands and feet were tied

democrats willing tout compromi, but compromise is not mean allowing republican colleagues to put the wants of a few millionaires and billionairesp, added the need for this nation nation and the world. our repeat the words t.s. eliot. hurry up, please. it's time. speakeron the >> mr. president. >> the republican leader. >> in morning business i asked if speakers on the republican side be p limited to 210 minutes each. o >> mr. president, washington is engaged in a debate right now nl over the kind of country want to be. the specific issueon these days at some point of the next several weeks, the federal government will no longer be needs to cover the cost oft promises authority made. so the president wants congress to raise the statutory debt limit that the congress.is thate he wants us to raise the limits wi now what republicans have said is the only way weua'll do it ig if democrats agreed to changeank sheir ways we don't end up with the kind of situation were witnessing over in greece.do and make no mistake, that'st exactly where we are headed if we don't do something significant a