abc7's lilian kim is in the newsroom with more on that. lilian?> the deadline to lift the nation's debt ceiling is august 2nd, but lawmakers wanted to cut a deal today before the asian markets opened. those efforts failed and the standoff continues. markets in asia are showing no major swings despite washington's inability to reach a deal on the nation's debt ceiling. >> frankly i think people still believe that the u.s. will come to some sort of an agreement so people aren't panicking yet. >> lawmakers hope to reach a deal by 1:00 p.m., but that deadline came and went. the congressional leaders have come up with separate back up plans. the senate majority leader harry reid is working on a proposal to cut spending by $2.7 trillion and increase the debt limit by $2.4 trillion. the house speaker is putting together a two-step process. the first stage would cut a trillion dollars and raise the debt ceiling by the same amount. a plan that would last only through the end of 2011. a legislation commission would come up with a long-term plan in 2012, an

abc7's lilian kim is live in the newsroom. lilian? >> the suspect is identified as kenneth harding, a parolee from washington state. we learned he is a person of interest in a murder case in seattle. this is video of the crime scene that happened on wednesday. four people were shot including a pregnant woman who died from her injuries. as for harding's role in the bay view, a witness says he believes he was in fact armed despite residents who say otherwise. >> we were there because we heard commotion. >> he doesn't want to be identified, but his video because of the aftermath answers a key question. did the suspect who police shot and killed have a gun? police say he did. in fact, they say the suspect fired at them first when he was running away from them for not paying their fare on muni. the man was said to have a gun. the man who shot this video, however, says he and his friends spotted a gun on the ground about 25 feet from the suspect moments after the shooting. he says it was a small silver handgun. his friend then saw a man in

lilian kim is live with reaction there. lilian? >> alan, many people here in antioch made sure they watched the interview. we are in front of cheers, a bar not far from the garrido's former home. customers watched the interview from start to finish, and they say it was difficult to hear the details of what she went through. on several occasion occasions we heard them gasp and shake their heads. the home was boarded up and will be put on the auction block. it is a horrible reminder of what happened in their small town, and many are eager to put this behind them. many found comfort watching dugard appear adjusted after everything she went to. people we talk to say dugard is an inspiration. >> i think she is amazing. she gives hope to anyone and everyone because she has given strength to the people who may have been in a similar situation, and she is able to come and do it and strive to make it past what she has been through. >> i was surprised she went through it as long as she has. she is very, very brave. i just think it is a bad,

lilian kim has more. >> they got the crowd going but things escalated when a protestor climbed on one of the trains. the tension however continued to mount. half the group boarded the train to get their message out. >> the protest was in honor of charles hill the knife-wielding man that was shot and killed. >> bart's conduct is outrageous, these people have no business going around in public with guns and killing people. >> in all, three bart stations report the shutdown. civic street powell street and 15th street. reaction was mixed. >> are you angry at the protestors? >> oh, yeah. >> it comes with the territory just being in san francisco. >> later on a splinter group marched on mission and marketing street. on the way we saw one protestor place a poster on one street. protestors came face to face with police in riot gear. >> there was a lot of yelling on the part of the protestors. >> there is only one arrest. they said they arrested someone for public intoxication. lilian kim, "abc 7 news." >> bart is also unveiling plans for greater oversight of its police force. yesterday it out

lilian kim is in the newsroom with more on that. >>> lawmakers were hoping to reach a deal today but it came and went. soon after president obama met with harry reid and house minority leader nancy pelosi. senator read's proposal would raise the debt limit by $2.4 trillion through the 2012 election and spending cuts of about $2.5 trillion. john boehner is working on a two step plan with a short term increase by a trillion dollars with a trillion dollars in cuts. a legislation commission would consider a long term plan after 2011. >> there is going to be a two stage process. it's not physically possible to do all this in one step. having said that, chris, i know the president is worried about his next election. my god, shouldn't we be worried about the country. >> the economy through 2013 and not short term gimmick where we're back in the fix in six and eight months and world looks at us once again in presidential plioh, these people can't get their act together. >> the president has said he will veto any if it's not financed through 2013. final deadline is august 2nd, if no action is

lilian kim has more. >>> markets in asia are showing no major swings, despite washington's inability to reach a deal on the nation's debt ceiling. >> frankly i think people still believe that the u.s. will come to some sort of agreement so people are not panicking yet. >> they hope to reach a deal by 1:00 p.m. but that came and went. congressional leaders came up with second plans. harry reid is working on a proposal to cut spending by $2.7 trillion and increase the debt limit by $2.4 trillion. house speaker boehner is putting a two step process. first stage would cut a trillion dollars and raise the debt ceiling by the same amount. the plan that would last through 2011. a commission would come up with a long term plan in 2012. >> it's not physically possible to do all this some n one step. having said that, chris, i know the president is worried about the next election but shouldn't we be worried about the country? >> white house chief of staff says a short term fix would send a message to the world that the u.s. can get their acted together. >> it must be extended through 2013 and

lilian kim reports. >> reporter: grief greg huhr played video that shows a gun on the ground that they say belongs to the suspect. >> they released you'd that picks up ten shots. it bolsters their claims that the suspect shot first. [ gun shots ] >> there is a time of 1.9 seconds between the first shot and the 2nd shot. it is that time period we believe that the first shot was fired by the suspect and the officers were that position to identify and respond accordingly to being freird upon. >> reporter: the suspect 19-year-old kenneth harding was parolee from washington state. the whole thing started when he ran away from them at a routine inspection. but many remain unconvinced that police acted unappropriate canly. >> if he had the gun on him that is fine but it almost looks like mass murder to people out on the streets. >> there are three separated investigations to the shooting and the police marble is asking for calm. >> i don't like people jump to go conclusions. that is what we're trying to bring light. >> the police chief and other officials will hosted a townhall meeting to dis

here is lilian kim. >> reporter: many lots in machines that have signs pay here or pay in back. but nevertheless people are being ripped off by parking lot imposters. art agnos came face to face with one. a man motioned him to stop. >> he said $10 and he gave me a receipt. put this on the bend she would and drive on right down there is a spot right there. >> agnos realized it was a scam when he got a ticket later in the night. >> one of the most prolific imposters was caught on a surveillance camera. authorities identified him as mbemba. despite repeated arrests he will likely reoffend. >> because it's considered a misdemeanor, it has cumulative effect. >> they will introduce a resolution on tuesday. he is calling for the d.a., muni and the port authority to come up with a plan that will put an end to the parking lot scam. one idea is ask owners to have gates and require tickets to enter and exit the lots. >> they are introducing on tuesday is non-binding resolution, he hopes it willvovl in into a city ordinance. >>> governor jerry brown has signed a landmark bill to inning gay,

lilian kim has the latest. >> don lee's family sat down for a conference call with officials. it was the chance to get the latest information on the missing people. >> it's good for us because they tell us what has been going on down there, the areas they've been searching and what they are looking for. but for us we want to get divers down there. >> a u.s. coastguard c-130 crew completed a search grid but neither they nor mexican search teams found anything. 16 of the survives made their way across the border. bruce from walnut creek is among them. this photo was taken before their trip. while some of the survivors wanted to stay in mexico to help any way they could, the conditions left them no choice. >> the plane will be in the air today, as for the dive team, one is scheduled to arrive on sunday to search for the sunken boat. >> for the first time jaycee dugard is speaking out about the time she spent in prison after being kidnapped. she talked about her kidnapping at the age of 11 by philip and nancy garrido. she spent some nights chained to a bed. she gave birth to two d

lilian kim reports. >>> we believe that fatal wound on mr. harding's body was self-inflicted. >> reporter: they delivered the stunning news. 19-year-old kenneth harding was not killed by officers as originally thought. investigators say he shot and killed himself. >> the investigation is still ongoing as to whether or not this is accidental or intentional. >> police say they fired at harding after he shot at them first. one bullet lodged in his head. it was that bullet that was fired by hargtd and the one that killed him. they provided a photo of the bullet that was recovered from his head and another one found in his jacket pocket. both are .380-caliber bullets but the police department use .40 caliber ammunition. >> right here in the neck. this is unbelievable. it's almost laughable. >> other community leaders believe police are making it up. they want an independent investigation. >> everybody out here, no one out here says that he shot himself. no one. >> many residents doubt that he had a firearm despite video shows what appears to be a

lilian kim has the latest. >> reporter: markets in asia are showing no major swings despite the inability reach a deal to the debt ceiling. >> frankly i think people believe that u.s. will come to some sort of agreement so people aren't panicking yet. >> they hope to reach a deal by 1:00 p.m. but that deadline came and went. congressional leaders have since come up with separate plans. harry reid is working on a proposal to cut spending by $2.7 trillion an increase the debt limit by $2.4 trillion. john boehner is putting together a two-step process. the first stage would cut a trillion dollars and raise the debt ceiling by the same amount. plan that would go through 2011. legislation commission would then come up with a long term plan in 2012, election year. >> it's not physically possible to do this all in one step. having said that, chris, i know the president is worried about the next election. my god, shouldn't he be worried about the country? >> president obama said he would reject a two step process. bill daily says a short term fix would extend a message to the world that the u.s.