. >>> plus, liz ann sonders, schwab's chief investment strategist is with us. she's fired up about the fiscal cliff. she says congress has to rise above -- she's wearing one of our pins, ty and simon. we'll talk to her about what the implications are if congress does not rise above. all of that straight ahead. >>> but first, i'll throw it down to simon hobbs down at the nyse. >> hi, sue. one of the immediate implications of course is the way in which the market is behaving. the dow is at a five-month low, the s&p 500 at a four-month low. we have just begun to cut some of our earlier losses within the last few seconds. we've regained 1.350 quite cover the comfortably. kenny, you are worried here now for the afternoon. why? >> i am worried. we were struggling to hold on to 1,350. you can feel it's testy. if the news coming out of the mideast gets any worse as we proceed through the day, i think you'll see investors taking money off the table as the situation develops. >> it goes on day after day. >> it does, except the situation now in the mideast is all of a sud

let's bring in matthew dowd, martha raddatz, and liz ann sonders.e the chances, president obama, with this divided congress, and divided country, really. we talked about 48% in the red column, and 48% in the blue column. what are the chances a deal will be reached? >> that's the situation that followed. there's an even bigger issue that divides the division and you say in the country. it's not only politically. but it's demographically divides in this country. we can't solve those problems until the divisions are bridged. the president has to work on the means of governing first. how does he fix the means of governing? it's broken now and dysfunctional. we have to fix the divisions first. >> liz ann, when we talk about tax cuts of this size all expiring in less than two months, what kind of impact can this have, regardless of the -- president obama wants to keep tax cuts on lower-earning americans. but no matter what, we're looking at a major change in income taxes. >> both sides have put markers out before the election. and speaker boehner yesterda