the ecb actually buying italian and spanish bonds, we believe. should we be -- what's driving this fear? >> i think that obviously the timing of the downgrade. it's very well to say it was anticipated and priced with the mark. i think it was to a certain degree. but i think the actual event did shock sof participants and they had a weekend to thing about how concerned they were. that's why markets opened up so heavily low. so i think it kols after a very difficult seven- or eight-day trading market. thing this adds to the negative sense. but i have to say the fed meetinging tomorrow night asian time will be more closely watched. i would say it's a bit early to say the fed's going to hint to qe3. but if they start to dissipate even further and the dollar starts to print only the softer side of the equation, i think qe3 is a definite equation and the gold we saw today is clearly pricing it as a real chance. >> so when you say qe3, you're saying trying to bolster the u.s. economy by buying more bonds or whatever. i want to move on. should we really

>>guest: the ecb is like a fed for europe.ut these are all a group of countries that are in the euro monetary union going their own way with spending and taxing so you have countries like greece and portugal that spent too much and now italy and spain, the markets have decided they, too, are in the same position, and what has happened? the nations of the euro have come together with a bailout program and that bailout program is going to buy up some of the debt, it will take the pressure off of the countries and say, you going to lend to us to pay bills until your fiscal house is in order and you put down the spending. but this process is an incredibly political process in europe. you have all the different countries disagreeing, the germans say we don't want to come to the rescue of the spendthrifts in southern europe so this has been going on and on and the ecb says look you have the rescue fund that needs to be ratified and will not be if place for a month or two and we will step in and buy up the debt to take the pressure o

i think we're going to have an interesting time now watching both the ecb and fed in the coming weeks giving the downgrade they are doing to their own expectations for growth. >> a lot of concern as you foe about the health of the european banking system. how concerned are you and how serious a concern is it that a european bank, a major european bank might default. >> i think that concern by itself is rather modest given how ample the liquidity available is from the ecb. but i think the weighing of continued stresses in europe, the lack of a solution by policymakers to the credit concerns could start to build pressures that don't necessarily have to work through a bank crisis but could just simply be a credit constraint and a significant crisis in terms of overall political stress in europe, feeding back over to our side of the atlantic as well. >> let's switch back to the u.s. because we got all of this negative data today on housing, on the job market, on inflation. when you look at all of that plus what you're hearing from companies about their corporate profits, add it all up wha

finance ministers coming out saying they want to support and sustain growth and also the move by the ecb saying they'll move into the bond buying program. but also, this negative reaction, christine that we're seeing in asia, definitely pegged to that u.s. debt downgrade by standard & poor's. >> we'll check in with you exactly in 23 minutes when your markets open there as well. don't go away. let's go to beijing. what we're seeing around the markets, one by one. big selling. then also backing off a little bit. not as dangerous as some people had thought. it is still early though. isn't it? >> it is still early. like you said, these are run-of-the-mill declines. not much to speak about. for the most part here in shanghai, what we're hearing is that the market will open down but at the same time, a lot of the talk about the downgrade was already baked in and priced into the market. because of that, there is some debate as to whether or not there will be a decline or it will be a signal to a longer term bear market. still up in the air as to whether or not, which way that would go. for the

and then the head of the ecb is saying he will be out there trying to prop up the bond market so the air is coming out of the italian and spanish bond and he is trying to piece it back together. it doesn't look as though it is working. >>neil: and in the case of italy given they are the eighth largest economy, it could keep off the problems greece has. if they cannot and spain cannot, it is katie bar the door, right? >>guest: yes, the problem is that big of the money that the european commission does not really have. they are saying, you said you had contained the problem and it would only affect a small number of countries, greece, portugal, ireland, that is where it was supposed to be contained and now it is spreading to italy and spain. and with these two countries that will be affected they know there is not enough money available so what are you going to do? it does not look as if there answers from euro. >>neil: very good, my friend, david, thank you. so this is the latest. gold was rocketing and retreating and old made a dive. all that glitters was not gold. and now, scott on

the ecb is still buying bonds and spanish debt. >> now that the u.s.&p to aa plus are there concerns other countries that you've been following closely in europe could follow a downgrade path. >> there are indeed. jpmorgan has been reported as saying he's expecting france or even the united kingdom to join the united states in the club of countries that have been downgraded from a aaa credit rating status to aa. if that happens that would be significant for the markets. the markets already started pricing those kind of comments in yesterday. what we saw the credit default swap which is effectively the assurance contract on the french sovereign, that insurance contract rose enormously and also the yields on french debt rose as well. what we're seeing at the moment is a relief rally in the bond market. the ecb in its second day buying italian and spanish treasuries brought the yields down to just under 5%. >> thank you. we'll stay with you on this. how bad was monday by the way in the stock market? if it were a dog it would look something like this, tong

berlin has to work in parallel with the ecb. >> jan randolph. thanks for your time there. >>> let's look at this part of the world now. most asia-pacific markets ending friday moderately higher, rounding out a week of, well, what could be described as extreme volatility. better than expected data out of the u.s., including lower jobless numbers and cisco helping to boost investor confidence. let's go to all of the details of friday's action. tgif. >> back to you, andrew. most of the markets did end higher today, except for japan. the nikkei ended down 0.2%, failing to stay above that 9,000 mark, after touching it briefly this morning. automakers were the big pull, with nissan falling nearly 2%. and the yen has been gaining strength all day. it's trading about $76.71 to the dollar. that's hurting exporters in japan. in hong kong, the hang seng is up about 0.1%. we're seeing this is the third week in a row this index will be down overall. there's one major performance to fengs. that's li & fung, it beat first-half net forecasts. they're one of wal

if they don't, it's very difficult for the eu and the ecb because they have very little left. >> okay. we've had a pretty healthy bounce on wall street. asia wasn't bad either. europe not so strong. where do you think the market is going to go from here over the next couple weeks, over the short term? >> over the near term i expect trading to remain fairly choppy when we're seeing these bouncs.s if we start to see the economic factors kick back in again, the negative economic factors, it's unfortunately back down again and we could see another wave of selling coming into the markets. >> all right, manoj, thanks so much for joining us. >>> britain ice prime minister at this hour is chairing his second emergency meeting in two days. tuesday was a quiet night in london, violence ripped through other british cities. in a moment we'll look how rioting is impacting the british economy and british business. stay with us. [ female announcer ] what if your natural beauty could be flawless too? discover aveeno positively radiant tinted moisturizers with scientifically proven soy complex and nat

the eu, ecb and imf have approved the portugal rescue funds. in lisbon, they have been checking up on how the country has been using the 78 billion euro payout. the government will get its hands on that funding by next month. a lot of money and a lot of change, big changes. >> british authorities are using social networking sites to try to capture those responsible for the looting and rioting over the past few days. the streets of london and the other cities that saw riding are quiet now due to more police on the seats. police are turning their attention to tracking down more suspects. or teenagers have been arrested and prosecuted for the violence. >> there were suspected rioters on giant screens outside of the shops that they looted. they hope that they will recognize the suspects. >> if anybody can see that, tell the police about it. i know i would. >> after the rioting this week, a public outcry has broken out between the government and police chief. david cameron it criticized scotland yard's initial response as insufficient. this is the l

economists are also doing the math on this morning and they're saying that if the ecb buys about $2.5 that could amount to massive bill over the course of the year of over $1 trillion. it would effectively exhaust all money the euro zone has put aside to help any struggling countries that may need a bailout. we've had two bailouts for greece, bailout for pore it tu gal, for ireland. it could be too expensive to bailout italy and spain. >> we'll stay in touch with you through the course of the morning as u.s. markets get ready to open. nina dos santos, joining us live in london. >>> treasure secretary tim geithner doesn't have plans to leave his post. he says he is staying on. there were rumors galore in washington he would leave after the debt ceiling was raised. some republicans say the credit downgrade should cost geithner his job. >> geithner and the administration slamming standard & poor's all weekend saying the agency didn't know what it was doing when it demoted the u.s. to aa+. they are planning a conference call to explain its decision. listen to what s&p's managing director

the ecb will do their utmost to eliminate any problem in the banking sector. >> in new york, the positive mood from tuesday disappeared. the fed lost desi t ep interest rates low only listed shares temporarily. >> the a very real sense of fear in the overall market. the trading floor is orang ast always does. there is fear in the market and this is driven by multiple points which ldso a sense that there is a lack of calm in global markets. >>the dow jones was no exception to the bearh mood on wednesday. it also fell sharply. >> nothing to cheer about on weesy. a u.s. bank shares led the charge. i asked if this is what we can expect. >> the market at this point is extremely nervo aalofhe rumors might go on with france and this did put pressure on financial stocks. look at the banking industry. monday, we had bank of america losing almost 20%. we had bank of america gaining almost 20%. baamic lost about 10%. depending on how the news is, maybe that is what we haveo live with. >> let's go to frankfurt where the new round of market free fall highlights how the sentiment is right now. >> trade

the ecb has bought 22 billion euros or about $31 billion in government bonds. it didn't disclose the countries, but it's believed to be predominantly sovereignties of italy and spain. the move came after prices plunged earlier this month to their lowest since the introduction of the single currencies. analysts say the focus is now on whether the central bank can continue such measures given the amount of bonds circulating. >>> google will now enter the handset business. the giant announced its biggest acquisition to date monday. that it will buy mobile phone maker motorola mobility for $12.5 billion. google said it will run motorola mobility as a separate business and continue to offer the android software to other handset manufacturers. motorola mobility was split from the parent company motorola this year. it will allow the company to strengthen its patent portfolio and supercharge the android system for the benefit of consumers and business partners. observers say that the deal will help google compete with apple that has seen an increase of sales from its i

he not only said that the ecb has overstepped its powers, he also said that politicians aren't issuing knee-jerk reactions to media stories and to the decisions of rating agencies. he also criticized the german government for taking on more debt. he said that governments must lead people. people in the public to not understand why banks and now will countries are being bailed out. in part, this is about calling for a restoration of confidence in the political process and that is the german president's role. >> greece's second bailout could be headed for a bit of trouble. the packages with 159 billion euros. before the deal can go ahead, parliament and eurozone member states have to give their approval. some of them did not seem inclined to do so. >> the eurozone leaders approved the bailout for greece in july. finland had gone to the summit insisting they would contribute only if they had extra guarantees. helsinki will get a payment of cash to invest in low-risk securities. the move has drawn sharp criticism from other eurozone countries, and in germany, which will bear the lion's sha

the ecb has bought 22 billion euros or about $31 billion in government bonds. it didn't disclose the countries, but it's believed to be predominantly sovereignties of italy and spain. the move came after prices plunged earlier this month to their lowest since the introduction of the single currencies. analysts say the focus is now on whether the central bank can continue such measures given the amount of bonds circulating. >>> google will now enter the handset business. the giant announced its biggest acquisition to date monday. that it will buy mobile phone maker motorola mobility for $12.5 billion. google said it will run motorola mobility as a separate business and continue to offer the android software to other handset manufacturers. motorola mobility was split from the parent company motorola this year. it will allow the company to strengthen its patent portfolio and supercharge the android system for the benefit of consumers and business partners. observers say that the deal will help google compete with apple that has seen an increase of sales from its i

. >> a couple of weeks ago, markets anticipated that the ecb would find a solution to the problem. it is very clear there is no more money on the table. there is no political will at the moment to sort out the problems. >> italy and spain are sparking investor doubts. spain was paying 44% to borrow from the markets. a few weeks ago in the lead up to the summit, it went up to 6.3%. it is now back up to that level. the higher this at -- the interest rate they pay, the more difficult for these countries to get on top of their debt. that is the fierce on mines in brussels. they are working out a way to respond. the european commission president sent a stern message to governments talking about growing market skepticism about their capacity to deal with the crisis, which, he said, had extended beyond the periphery of the eurozone. he urged a rapid reassessment of what more can be done. the european central bank did take action today, announcing it would step in to support governments under pressure by buying their bonds, something it has not done since march. bank presidents also had so

the ecb publish details on a program that proved to be disappointing. on a daily basis, the dax has lost 4.1%. >> will stay in frankfurt for closer look at monday's numbers -- we will stay in frankfurt for closer looks at monday's numbers. across the land to come in new york, the dow shut down at the top of -- the atlantic, in new york, the dow shut down at the top of the hour. trading is down on the euro to $1.4362. >> we return to our top story right now -- libya, of course. the regime of dictator muammar gaddafi appears to be at the point of collapse. the rebels are in control of most of tripoli and have reportedly seized the state tv building. there are reports that the rebels are encountering some pockets of fierce resistance. some of the heaviest fighting has been reported around a copy -- gaddafi's compound in tripoli. international leaders have repeated calls for gaddafi to step down. his current whereabouts are still unknown. stay with us. we will be right back with more news here on dw-tv. on the internet. >> returning to our top story, most p

and today you had the head of the ecb and another powerful ecb member say completely opposite things about what policy might work. could you imagine if ben bernanke and tim geithner came out and basically said different things about what we need to do? confidence would be crushed. that's what's happening. i'm not saying the u.s. economy doesn't have a lot of problems. we certainly do. but it's a culmination of all this nonsense going on in europe. and some people are saying it's sort of like their 2008. we're just ahead of it. >> mike, at the white house, not many people are very sympathetic towards the president on this issue. brian sullivan is saying the problems originated from europe and it's lapping onto the shores of america and yet the president is not being given a break like that. everyone says it's his fault. >> reporter: as an economic matter, even at the white house, they say they're monitoring the situation in europe very closely. as a political matter, you're absolutely right. the president can't go to the american people and say it's all the europeans' fault. that's a

what really set stuff into motion today was when the head of the ecb, that's kind of the equivalent ofederal reserve, the head of the ecb came out and said, do you know what, we're going to go ahead and pump more money into the euro zone economies to shore them up, remember greece? italy is now worried that it's going to be the next shoe to drop. it's got its own debt problem, so that is really what set stocks into motion. because if we see problems in greece and in italy, they're having debt problems of their own. that could easily certainly filter down to the u.s., because we're all interconnected. and then, of course, besides those issues, you know, we've got our own problems here at home. we have weak economic growth. we got those weak gdp figures from friday, weak manufacturing, weak service sector. it goes on and on, and not to mention housing and jobs as well, john? >> so, alison, what are the markets looking for? what one piece of data or two pieces of data do the markets need to reverse the slide? >> the big jobs report comes out tomorrow, expectations are 50,000 to 75,000 job

host: the ecb is the european central bank. guest: yes.ost: how do other countries measure up as far as s&p ratings? i wanted to look at this in "the wall street journal." they compare the ratings. in our category now, belgium, new zealand. is it so much the rating or is it more the change of a rating that is significant? guest: that's a very good question and it's another thing that the treasury and the administration were pretty upset about over the weekend. france, which has almost the same size as us -- was going on? i think the answer is -- they have a set of very fixed criteria. if you happen to fall on one side of the dividing line, then you get that rating. kind of understand that. they do not really looks so closely. the difference between aaa and aaa plus is very small in their minds. the questions, the potential of a downgrade for france, as well. host: how much of a severe impact would that have? guest: the central thing to understand about economic stories at the moment is is the keenness of impact, hit after hit. by themselve

ecb president trichet, the commissioner for monetary and policy affairs, and the chair of meetings of eurozone finance ministers all appeared before ministers of the european parliament monday in emergency debate to press for swift implementation of the summit agreement, but they face their fair share of criticism. >> the president of the euro group had been called in to answer some tough questions at an emergency hearing of the european parliament. parliamentarians criticized the handling of the ongoing crisis with france and germany singled out in particular. >> the french and germans used to meet at government level to anticipate the problems facing europe, to solve them together, and to make other proposals. now, they meet for sound bites for consumption back home. >> the franco-german proposal for a common economic governance also came under fire. the europe group head even slipped into sarcasm. >> i do not believe a credible economic government in europe can convened twice a year and then by some miracle expect the rest of the planet to fall on its knees out of admiration. >> th

if the ecb, which is like the federal reserve in many senses, steps in and says, we are the buyer of last resort, that should at least back-stop some of the market's concerns about the credibility of some of this government debt around europe. back to you. >> geoff cutmore, live in london, we'll see what happens in the markets in the states today. thank you so much as always. >>> back here in washington, the so-called debt supercommittee charged with cutting more than $1 trillion from the deficit by the end of next year now has almost all of its members in place. house speaker john boehner unveiling his choices, including texas congressman jeb hensarling, along with fellow congressman dave camp and fred upton. pat toomey and ohio's rob portman. pat toomey will join us on "morning joe." all six republicans have signed apty tax advocate grover nor quest's pledge against tax hikes. house minority leader nancy pelosi has yet to choose the democrats she will put on the committee. but earlier this week, senate minority leader chose patty murray of washington, montana's max baucus and massa

and treasury and fed and in europe with the ecb? >> well, let me talk about the united states which i'm must more of an expert on. the president this week when he was on his -- what they are calling the magical misery tour around the midwest basically said this week that, you know, he was a victim of bad luck and that the economy is really rotten because of factors beyond his control, and i -- i do think that there is a loss of confidence in the united states among business leaders and among investors in president obama's ability to lead this economy after 30 months. things haven't gotten much better. we still have, you know, 9% unemployment in the united states, and it's almost every time he opens his mouth the stock market drops. >> all right then, but what about when rick perry opens his mouth? >> right. >> and then decides to say it's treesnous and treacherous. >> right. >> now look, whatever his political opinion, and that's entirely up to him, does it help us in a bad situation? >> well, first of all, i agree with you that the

but alison was talking about ecb buying italy bonds that is what is helping u.s. markets.e minister berlusconi in italy holding the unprecedented press conference on friday evening talking about structural reform, speeding up structural reforms, including possibly a balanced budget amendment for the italian economy, something we have heard people talk about in the u.s. they are trying to make some very swift moves right now to allow the ecb, the european central bank to buy the bonds ofity thely, put it a floor, a back stop, and that might be what the markets want to hear. we won't know how europe reacts, of course, until monday morning. >> yes, we will be on pins and needles all weekend as we wait forbowleden in london, thank you. >>> an outrageous standoff cost 4,000 government workers their paychecks and the government $30 million a day is suddenly over, just like that i'm talking about the faa funding fiasco that congress failed to take care of before members left for their august recess. a few members are still in town and today, they did this. >> mr. president, senat

host: the ecb is the european central bank. guest: yes. host: how do other countries measure up as far as s&p ratings? i wanted to look at this in "the wall street journal." they compare the ratings. in our category now, belgium, new zealand. is it so much the rating or is it more the change of a rating that is significant? guest: that's a very good question and it's another thing that the treasury and the administration were pretty upset about over the weekend. france, which has almost the same size as us -- was going on? i think the answer is -- they have a set of very fixed criteria. if you happen to fall on one side of the dividing line, then you get that rating. kind of understand that. they do not really looks so closely. the difference between aaa and aaa plus is very small in their minds. the question is, the potential of a downgrade for france, as well. host: how much of a severe impact would that have? guest: the central thing to understand about economic stories at the moment is is the keenness of impact, hit after hit. by thems

>> ecb the flying squirrels, until we found out there was rocky and the flying squirrels. we went through several permutations. >> losses in the band? and it was always me and my brother, and our drummer was john, and he passed away unfortunately, from a congenital heart ailment, so we have had a friend of ours from the old days came back and started drumming for us. and people who sit in. >> have you ever written a song? >> yes. none of them are any good. or i would not be doing this. >> how did you meet your wife? >> i met her through her brother. he was a high-school classmate of mine. >> children, how many do you have? >> we have three. george, timothy, and a million -- amelia. >> what did they think about your presidential bid? >> they think it is all right. they have other things to focus on the dead. have to consider what will happen and the eventuality that it did not get it. you have to devote yourself to no distractions. >> how do you do this? how do you win the nomination? >> the strategy is we are treating the first debate and straw poll as an introduction. tha

the ecb, thevened trying to pro up the market.and. two of the countries being bailed out. those two are italy and spain. we did get economic growth figures that to a certain extent injected a little bit of optimism. italy grew by about .33%. spain's economy, the same period of .2%. it's not enough to allay the kind of fears that isn't sorted out. if it is going to sort it out, in this region. >> the eighth largest economy in the world if italy and spain get these problems. it goes back to the too big to fail problem we remember from three years ago. we'll keep you updated on the course of the morning. live from atlanta, 15 states are under heat add vieries right now. what are you looking at? >> some stakes that are enduring for quite sometime. they're suffering oklahoma to texas. there's where the records were sent yesterday. wichita falls, 111, dallas, 108, oklahoma city, 108. highly populated areas seeing temperatures that are dangerously hot. 110, oklahoma city, 108 in dallas. will we see these temperatures starting to wane? we

the ecb is our version of the fed. the ecb?onds that were worries that the debt would not have been bought up. this put wall street in a better mood and end to the upside. this is clearly a market on edge. there is clearly fear on wall street about the state of the economy. >> the big fear is what? there could be a double dip recession. >> with the good jobs report, it pulled people away from the ledge a little bit. it's still on the table and the worries about a possible new global recession is still a worry. you can see the debt problems happening in europe and we have our own debt problems. we got a good jobs number, but it's not enough to really make a dent in the 14 million people who were out of work. it will take years to make up for that. not to mention our weak economic growth. remember it is figure of .4%. >> anemic indeed. president obama seized on the jobs report as a bit of good news for the faltering u.s. economy while urging congress to do more to spur employment, he offered optimism. listen to this from a peach

an then the comments from the european -- the european central bank chief, and he basically, the ecb is still a concern. he said that it's true that we're in a period of high level of uncertainty, not only in the euro area but in the economy, and he outlined that maybe the ecb decided to re-enter the european bond market. what does it mean? around the world central bankers and bankers are working hard to get out of what it is and what continues to be a very weak recovery. watching the latest on that. we have the dow and the nasdaq and s&p, they are all in connection territory, down 10% from their cyclical peak, their july highs, down 10%. in just a couple weeks down 8 to 10%, and that's something you will see in your 401(k) statemt when you g it. the dow is down. serious nervousness in the markets at this point. really, a global story that we are seeing here play out. >> very unsettling. thank you so much christine romans. we appreciate that. >>> in the meantime, no relief today from the heat wave that is scorching much of the south. 15 states are under advisories or warnings, and th

. >> yesterday we were looking for some records of comfort from the ecb, instead what we got was that the european economic uncertainty was particularly high, which, of course, which really rattled the markets. then the token buying of a few of the irish or portuguese bonds and nothing about italy or spain. if we look at what the markets were doing now. you mentioned they were down 3% at the start, they have made back some of those gains. down about 2% in london, dax, about 2%, paris made back some of its losses. milan fell the most, about 5% yesterday. if we look at what's happening there today in spain and italy, the markets, again, nina, in the red as we can expect mass panic selloff across the board. >> the other thing we should mention to viewers is that the yields on the ten-year spanish and italian bond are sky high. currently standing at about 6.5%. 7% is when it becomes too expensive for these countries. they could be facing a bailout. >> we've been seeing this whole bailout concept once again. we saw it with greece, portugal, possibly with spain as well. the concern now, a l

you have the ecb, the european central bank backing it low and spain.home are fearing the fear, the fear index has been moving higher. for right now there is no run on the banks, no certain urgency about that. it's not fun when you see the selling continuing, particularly for the baby boomers who they've made it through the tech bubbl of 2000, the boom and the bust, through the financial crisis down to 6500 on the dow and some of them are pulling their money out and they are not ready to take that risk again. when you're seeing a dow down 306 points and selling day after day. jenna: a really important point there, nicole. as everyone says you have to wait until the last 15 minutes of trading to see which way the day goes. we'll be waiting and watching for sure. >> reporter: it is a roller coaster, jenna. jenna: sounds like it. thank you very much. greg. jon: i filled up two different cars on back-to-back days, dropped 7-cents from saturday to sunday. jenna: not bad. jon: not bad. i'll take it you. how debt can affect your waistline coming up. the presid

the ecb said it's ready to buy up italian and spanish debt.ause there were all these worries that no one would buy these italian bonds, these spanish bonds. and italy cam out and said you know what, we're going to take steps to take care of our huge debt problems. >> you talked about italy and today berlusconi called a meeting and talks of a balanced budget amendment because of that. and sarkozy of france on the phone with angel merkel of germany today. >> just like we have our own debt problems that could spread around the globe, the big worry is that those countries with their big debt problems can spread right here and hurt businesses. and wind up hurting consumers. because we're all interconnected. when europe gets a cold, we start sneezing over here. it catches really fast. we're all interconnected in many, many ways. brooke? >> we've got a trader, we've got an investor standing by later on in the show. i thank you for now, let me move on as we continue to juggle with all this news here. step on over. let's take a look at the massive flas

and it's going to take more than just frankly, a few bits of soothing words from a president and the ecb. to make this right. >> richard, what will it take? what do folks in europe need to see from washington in order for the markets to improve? >> they need to feel that the policy makers are ahead of the curve. remember, it was the debt ceiling crisis that precipitated what took place in the united states. it wasn't a raising of the debt ceiling to $16 trillion. it was the bickering and the inability to get that agreement that caused the uncertainty and the lack of confidence. in europe, it is the inability of them to put to rest this debt problem of countries that have overspent the spanish, the italian, the greek, the portuguese and the irish. and it's that scenario -- look, at the end of the day, markets are you and me. it's our 401(k) plans, our investments, our children's wedding and bar mitts fa funds. that's what makes up what's in that building behind me. it's not some money milking machine. it's real people's money. at the moment, what people are looking for is confidence in th

as ali pointed out, the ecb intervened suddenly.d so any time the market is sort of surprised by something, let alone what it perceives to be as emergency intervention, it's going to, you know, freak out a little bit and that's what's happening. we're already so jittery, i think that our problems here in the u.s. with the debt ceiling negotiation that really was pushed to the brink unnerved markets on a global level because of what it said about, you know, america's credit rating and our perception as the grounding force, so there's a lot of things happening. >> yeah. ali, leigh just mentioned the debt ceiling there. we didn't default. why aren't investors happy about that? >> if you notice, the world markets weren't reacting to the whole debt debate until very close to when it looked like it could actually happen. in other words, most people were betting that the u.s. would pass this bill and increase the debt ceiling and then sort of the friday before we got this very bad reading on gdp. the growth in our economy, and what's happe

at the moment, those phone calls that you talked about are taking place, policy makers from the ecb,, g-20, tim geithner, everybody doing what they can to try to find some oil to pour on those troubled waters. >> what are the realities here? we've had a credit downgrade from one of three companies. the two others keep the highest rating for the united states. is there reason for real volume tillty or just a little bit of panic? >> no there's reason for volati volatility. i have seen one quote from senator mccain, he summed up the market's view, it doesn't matter whether you think s&p made an ir other or got it right or wrong. john mccain said is there anybody that believes s&p was wrong in the fundamental assessment of the u.s. economy? the markets have been saying there is something going on in the u.s. economy that wasn't proper addressed. that's one shoe. but the other shoe waiting to drop is the european debt crisis. spain and particularly italy, they are very firmly now in the firing line of the bond market vigilantes. if the europeans have to bail out italy, it's a different ba

ali, you had the ecb buying italian and spanish bonds.ot central bankers admitting that thing are slower. i'm not saying it's a crisis. i'm not saying that double dip recession. what i'm saying is there is an underlying weakness that this market canary is starting to say might have some validity. >> it can't see because it would have read the u.s. federal reserve's announcement that they are going keep interest rates close to where they are now. >> exactly. >> until 2013. teach the bird to read not just smell and maybe we'll have a more stable market. >> why durng they are keeping it until 2013? they are not doing it out of great love for cheap money. they are doing it because as bernanke says the economy is considerably weaker. he described the housing market as depressing. and he talked about the problems of unemployment. that's why. >> very quickly. >> your refusal -- >> ali, next week can we expect more of this crazy volatility. >> you'll see this for a little while. if richard and i can't agree, people a whole lot smarter can't agree

says that the ecb is going to have to do new stems to make sure that that contagion doesn't bring down countries as well as it has in greece, portugal and ireland. as a result, the stock market down. the dow down 170. nasdaq down 45. s&p down 20. >>> earnings out today, some of them -- most looking fairly positive. pg&e reporting their earnings. their profit came in at $362 million, pretty much in line with expectations. revenue of $3.68 billion up 1% over last year. pg&e also took a $76 million charge in the quarter related to the san bruno pipeline explosion. palo alto-based electric carmaker tesla had profits fall. >> thank you. >>> from movies to cooking to concerts he does it all. a festival weekend on tap here in the bay area. >> liam mayclem host of "eye on the bay" is here with liam's list. good thursday morning to you. >> good morning. here for your entertainment pleasure. shall we talk movies? >> we shall. >> here we go. jason bateman, ryan reynolds star in the change-up. two guys dave and mitch buddies since high school who magically trade lives. now, one is the responsibili

you've got an ecb statement tonight. you have a g-7 telephone conference call.ou have tim geithner saying that he's staying on at the treasury and the president welcoming that. these are unheard officials as of week end. in that scenario, is it surprising that people are saying what do i do? where do i go? how do i protect what wealth i've got? >> yeah. so you put it in the global perspective. i remember you saying to me no one around the world thought that the u.s. -- you said the u.s. was basically at a point before where they raised the debt ceiling, where they had driven the car to the edge of the cliff and people were wondering when they would put the brakes on. is this sort of a domino effect, raising the debt ceiling so late, all this back and forth, is this effecting the markets you think globally? does that all fall into place? does that tie into it? >> in his briefing note yesterday, it was summed up perfectly when it was said the entire global financial system was built around the idea that the u.s. triple-a was a constant. it was always there, always