joining us to discuss today's report is mark zandi, chief economist at moody's analytics. it is a about the state of the job market that instead of just merely slowing job growth stopped? >> yeah, well, it indicates that the economy is perilously close to recession. you know, an economy that is not creating jobs can't sustain that for very long. consumers are going to start pulling back and that's going to force businesses to start laying off workers. and that's a town turn, so we need to see businesses start hiring again otherwise we will have that dreaded double dip. >> suarez: in addition to that flat number out today, the last two months had to be revised down yard-- downward as we mentioned. does that mean things are even worse than we realized? >> yeah, i think it's very clear that this summer we've pretty much stalled out. no job growth at all. it's really quite a significant change. if you go back to the begins of the year, we were creating a couple hundred thousand jobs per month. the surge in energy prices, the japanese quake effects on the manufacturing base real

joining us now all in the studio mark zandi who is the chief economist for moody's analytics, white houserespondent norah o'donnell and our political analyst john dickerson who was our man on the scene at the big republican debate in florida. mr. zandi, i want to start with you. there was another big drop 700 points i think it was in the stock market last week. the news was pretty grim. about the financial situation of the european governments. do you think we're in recession? >> no. we're still growing. but the recession risks are very high. given what happened in the stock market last week, given what's going on in europe i'd put the odds of recession in the next six, nine months at almost even. you can see the risks from the job market. we're barely creating any jobs at all. at this rate of job growth unemployment will rise. that will undermine confidence. people will pull back. we'll be in recession. so this is not a sustainable situation. we have to turn this around. >> schieffer: s&p, of course, downgraded the u.s. financial securities the last time around in part because their anal

i think confidence is already on the edge. >> mark zandi, i know you're a busy man this morning. thanks for making time for us. >> thank you. >>> joining me is nbc's deputy political director mark murray. we've heard the economic point of view. let's talk about the politics. zero jobs added. when i heard it, i thought holy cow this is not going to be a good day for the president on what's already been that bad month. how do they sell this? >> they have to take their lumps and move on. when i saw these numbers, i said ouch. >> a collective ouch is what most people said. >> we've seen all the republicans pile on. mitt romney put out a statement saying it's time to change presidents. >> it came out at 8:30. by 8:35 every presidential candidate sounded off. >> as mark zandi talked about, this is a debt ceiling fight. in a way everyone has some blame here. republicans talked about the need for economic sternity. one of the reasons august was so bad, there was so much uncertainty whether the debt ceiling was going to be raised. >> uncertainty in everything. these numbers, i keep coming

president in his various appearances around the country pushing for the jobs act has been quoting mark zandi from moody's analytics about how many jobs this would create. mark certainly a guy that a lot of people quaut. i want to put up something for our audience that zandi said to the associated press on saturday. when he says he sticks by his numbers for 2012, but he said beginning in 2013, and certainly in 2014, the plan is a drag on the economy, because the stimulus starts fading away. so by 2015, the economy is in the same place as now, as if there was no jobs package. >> well, that statement points out how weak the economy is right now. and i think that if you don't act right now, the economy's going to be in a deeper hole. so we have to do some things right now to immediately jump-start the economy, but that will help lead to more consistent positive economic growth. investments in small business, investments in roads and bridges and ports, our schools. in many states teachers are being laid off. we don't have students learning. listen, they're competing against kids -- >> i guess his

with us now, mark zandi from moody's analytics.nd reuters global editor at large, christa freeland. thank you both for being here. what a lousy august this has been for the markets. i realize we're into september, but now they have the jobs report on top of it. how are the markets doing? >> well, august has been a rotten month for the markets. just as it has been for most americans in terms of the economy. i think there had been a hope that the recovery had started and i think august really, you know, solidified the fear that a lot of people had that actually the economy was very weak even if not going into a double dip recession, the recovery was extremely weak. and that made people worry about the value of their companies and, therefore, the value of holding shares. >> and mark, it does surprise me, because often times i think we get bad news and the market goes up. now the market seems to be acting like a normal human being. >> i think the markets are discounting weak economic growth but i don't think they're discounting a reces

mark zandi and others have looked at the american jobs act pc , of the 2 million jobs -- >> has he signed on to what he thinks will happen in the out years? >> we think these things can have a profound impact not in the next year or year-and-a-half but provide foundation for longer term growth as we go through the decade. >> economists i talk to say there can't be any recovery until the housing industry recovers. do you have any debt restructuring for homeowners under water or those about to lose their homes? is there something else you can do? >> the best thing we can do for the housing market is to have the economy recover. if you were able to drop the unemployment rate by a point -- >> you all say it will be around 9% this time next year. >> well, the fundamental recovery of the housing market is going to be twin to a recovery in the economy but there are some things we can and have done. we announced additional forbearance so people who have been unemployed have more time in terms of their home loans. the president announced in his jobs speech and plan two significant eye nems. one a

. >> reporter: so economist mark zandy says close attention will be paid to the president when he unveils his economic plan on thursday. >> i think the president's speech is critical. he has to reestablish confidence. >> reporter: confidence has eroded badly. 57% in the politico poll said they're worried the u.s. will suffer another economic downturn that would negatively affect their families. the president's plan is expected to include a mix of tax cuts and increase spending to rebuild roads, bridges and other infrastructure. >> job stimulus measures if they're done correctly can bring about more job growth. >> reporter: economist ellen zentner. >> of course we know from the new deal coming out of the great depression these huge infrastructure projects can put a lot of people to work but they don't typically go into place very quickly. >> those jobs are also only temporary but the big question, whether washington can agree on anything. there is no quick fix for the job market. the economy still has nearly 7 million fewer jobs than we did at the beginning of the recession. unless washing

banking system would also feel the tremors says economist mark zandi. >> our own banks are very well capitalized, they're very profitable, they're doing quite well but they can't withstand a big problem out of a european banking system. our banking system is tethered at the hip with europe's. >> reporter: here's just how tightly tethered. american banks have nearly $700 billion in direct exposure to european banks. they also have nearly $200 billion in exposure to the debt of greece, portugal, and ireland. >> pelley: anthony, is the problem a matter of uncertainty that the banks don't know who owns what? >> reporter: that's precisely the concern here, scott, that no one's really sure who's exposed where and just how much. if you'll recall back in 2008, that was very problem that led to a freezing of the whole credit markets. banks wouldn't even lend to each other they became so scared. >> pelley: anthony, thank you. the president wants to spend nearly $450 billion to create jobs and here's how he would pay for that. the president said today under his american jobs act he would cut ta

mark zandy, who was an adviser to senat mccain in his presidential campaign against president obama, estimates that that will add between 1.3% and 2% to our gdp, between 1 million and 2 million jobs. that's pretty much where the economists are. >> and the payroll cuts that you mentioned have been talked about as much as m millionaire taxes have been talked about, the buffett rule. cut the deficit, cut spending, ultimatetely kill jobs -- >> don't confuse the two things. these payrolll tax cuts a and te incentives now, these what are we should focus on the next couple of years. what the president did, as i understand it, is to say, if you want to start in 2013, for example, and see where my $3 trillion in deficit reduction are, this is where i would do it. because you remember they were saying before, when we were talking about raising the debt ceiling, he saidid, well, i tald about $3 trillion, and then the republicans said, but where is itwhere are the details, we want to see what yo plan is. so i think he's just offering them what he would do in a comprehensivive attempt to brin dow

mark zandi says he expects it to add 2 percentage points to gdp and 1.9 million payroll jobs and reduce unemploymymt by a percentage point. but diane swank says the problem is on the consumer end. >> employers have a lot of cash on their sheets. they have money to hire. they just don't have the incentive. >> reporter: george, the president said the plan would be 100% pay for but did not detail how. that will come later t ts month when he gives a speech and presents plans for deficit reduction, george. >> and jake, i know the white house is hoping this is going to put a lot of pressure on congress, especially on that payroll tax cut. any indications, early indications whether they might? >> reporter: some very conciliatory remarks, friendly remarks from republican leaders in congress and very harsh remarks from republican presidential candidates indicating that there is going to be a lot of politics at play here. >> no question about that. jake tapper, thank you. >>> but now to one american businessman who is not waiting for the president or congress to act. howard schultz revolutionized

. >> reporter: so economist mark zandi said close attention will be paid to the president when he unveils a new economic plan on thursday. >> i think the president's speech is critical. he has to reestablish confidence. >> reporter: confidence has eroded badly. 57% in the politico poll said they're worried the u.s. will suffer another economic downturn that would negatively affect their families. the president's plan is expected to include a mix of tax cuts and increased spending to rebuild roads, bridges, and other infrastructure. >> job stimulus measures, if they're done correctly, can bring about more job growth. >> reporter: economist ellen zentner. >> of course, we know from the new deal coming out of the great depression that these huge infrastructure projects can put a lot of people to work, but they don't typically go into place very quickly. >> reporter: those jobs are also only temporary. but the big question will be whether washington can agree on anything. there is no quick fix for this job market. the economy still has nearly seven million fewer jobs than we did at the beginn

. >> reporter: mark zandi warned today on face the nation continued washington gridlock will only damage america's recovery. >> the key to turning this around in the next few months is policy-- policymakers need to get it together and they need to act. >> reporter: even if the senate passes a new bill, the house is on break this week. further complicating negotiations. still, most in both parties claim there won't be a government shutdown, russ. >> mitchell: whit johnson on capitol hill, thanks a lot. one place with a very strong interest in what happens in d.c. this week is the town of wallington, new jersey which was hit hard by hurricane iran and is part of an area of the state that suffered more than $60 million in storm damage. manual gallegus takes us there. >> reporter: the mayor is still hauling away degree-- debris a pont after hurricane irene flooded the town. >> the watermark came right up to here. >> reporter: his town was hit with a double punch from irene and tropical storm lee. the mayor is asking the government for $650,000 but he has no idea when or if that money will co

mark zandi says it would create, if passed in full, about 1.9 million jobs. >>> u.s.eet. dow futures and s&p 500 and nasdaq trading lower right now. >>> scrubbed again! nasa delaying the launch of two space labs that will eventually study the moon. it's now expected to lift off from cape canaveral florida tomorrow. packers made a final goal line stand on the final play to beat the states 42-34 in the first game of the nfl season. "american morning" will be back after the break. >>> september 11th was a very tough time for the fire department. friends, guys i went to academy with. afterwards, people came from everywhere to help us out. it was incredible. you knew you weren't alone. a new yorker, point of kindness and generosity was more powerful than the terror that happened. that really changed me. >> i'm jeff parnese and i want to show the world what people did for us following 9/11. every year on the 9/11 anniversary, we take volunteers from new york and send them to some part of the country where they had a disaster and helped folks rebuild. nice to meet you. >> yo

that stimulus produced three million jobs this one according to moody's analytics according to mark zandi the chief economist of moody's analytics to produce one nine one point nine million that's one of the lower numbers and you know it was one of the guys at s. and p's that was going to two point four million so the republicans are saying wait a minute you you've created three million you created really two million you're going to get you below eight percent you get reelected we can't have that doug elmendorf the head of the c.b.o.t. specifically said that he's not dorsey any policy this is these are decisions that lawmakers will have to make and of course lawmakers are have to answer to their constituents what not true again and why here's alex couple the. book again with twelve is just making a recommendation that will be voted up or down by its side of god just a recommendation it they're going to they're going to lay out a committee they're going to lay out a piece of legislation of the as you say resolution a relegation zone spill agusta rubel. that's very different than any any bu

moody's mark zandi says he expects it to add two percentage points to product growth and 1.9 million payroll jobs and reduce unemployment by a percentage point. but others disagree. economist diane swonk says it's on the consumer end. >> employer have a lot of money on the balance sweets. they have the money to hire but just don't have the incentive. >> reporter: republican presidential candidates opposed the plan, even before the president said a word. >> mr. president, we cannot spend our way to prosperity. it does not work. >> reporter: and, george, president obama said the $447 billion plan would be paid for 100%. but he did not describe in detail how that would be done. that will come later this month when the president outlines a bigger plan to reduce the deficit. >> thanks, jake. >>> and for more, let's turn right to vice president biden. he joins us from washington. thank you for joining us. i want to get to the president's jobs plan. first, this new terror threat against new york and d.c. i know the president was briefed yesterday afternoon. how serious is this threat? and a

steven, the white house is steering us told analysis from well known economist mark zandi who says this plan if enacted could create almost 2 million jobs. let me guess, you're skeptical? >> i'm friends with mark for a long time but he's been wrong. he's the one who said we would create 3.5 million jobs. an amazing statistic. i just looked up the numbers. we have 1 million fewer jobs today than we did in february of 2009 when we created the $800 billion stimulus plan. let me use a football analogy if i may. if you run the ball up the middle three times and you don't get any yards, on fourth down you don't run the ball up the middle and that's what the president is proposing. a lot of proposals you just mentioned were things in the original stimulus plan or payroll tax credit. we did that in january of this year. none of it has worked to create the kinds of jobs. >> ken rogoff, in order to find a solution let's make sure we understand the problem. simplest terms you can think of. why can't we create more jobs right now? >> there are two basic problems. we're in the worst recession, whate

mark zandi calls it a creative way to take the payroll cut to businesses. a tax credit for companies that high unemployed veterans. you know that employed veterans the unemployment rate is rising to dangerous levels and something needed there and both parties agree on that. improvement for about 35,000 public schools. this is part of the infrastructure component of this. we have unemployment rate for construction people anywhere from 13% to 16%. this would be modernizing 35,000 public schools and getting people back to work in that arena. also a tax credit for firms that hire the long-term unemployed. we know that a record number of people have been out of work for six months or longer. it's a real problem for families getting the long-term unemployed some kind of help so a tax credit there. also it would let more americans refinance their mortgages at these near 4% interest rates that are available now. you've heard complaints from me and many others the low interest rates and so many people under water on their loans and don't qualify to refinance on thes

. >> on the flip side as we listen to mark zandi, the chief moody's economist.ll add $2 million to gdp and cut unemployment by 1%. those are fairly significant estimates if this plan goes through. what is the reaction in the markets right now? >> those are fairly significant estimates. mr. zandi is someone the markets listen to. that is on the side of hopefulness out of the president's number. many of the other market watchers and government officials we had on air today said it was a hopeful speech but i would like to know exactly how many jobs and when. the president himself didn't outline that. it is fairly uncertain. maybe mr. sandy will turn out to be correct, maybe he won't. >> a lot of people hope either way he is correct. more details coming from the president on his plan monday. courtney reagan, you filled us in till then. thank you. >>> you're looking at live pictures from richmond, virginia, where the president will take the podium. he'll have to sell his proposal to congress. with the heated climate on capitol hill we've seen crafting it into legisla

mark zandi says this plan, if it was enacted in its entirety could create almost 2 million jobs. let me guess, you're skeptical? >> i am. i'm friends with mark and have known him for a long time. but he's been wrong on his projections on jobs. an amazing statistic, i just looked up these numbers. we have 1 million fewer jobs today than we did in february of y when we created the $800 billion stimulus plan. so a lot of this hasn't worked. let me use a football analogy, if i may. if you run the ball up the middle three times and you don't gain any yards, on fourth down, you don't run the ball up the middle again. that's essentially what the president is proposing here. a lot of these proposals you just mentioned are things that were in the original stimulus plan or the payroll tax credit, we did that in january of this year, none of it has really worked to create the kinds of jobs. i'm very skeptical. >> harvard professor ken rogoff is with us. simplest terms you can think of, why can't we create more jobs in this country right now? >> there are two basic problems. one is we're in t

i think a very intelligently designed plan that even mark zandy, one of senator mccain's advisors inis now a professional economic analyst says if the obama plan passed, it would reduce unemployment by producing a 1.3% to 2% growth in gdp by producing another one to two million jobs. this is a well-conceived deal. putting out $50 billion in already existing infrastructure channels, that's not a bad thing to do. we have plenty of work to do. it's okay. they can do this without any tax increases. this is for right now. >> did the president miss an opportunity in entitlement reform this week? he didn't touch social security at all. the cuts in medicare and medicaid while significant still in a big picture relatively modest not raising the eligibility age from 65 to 67, for example for medicare. was there an opportunity he should have gone and really come up with a grandiose plan? >> first of all, my view of what a grandiose plan and yours are might be different. i think what he wanted to do this week was to fill in the blanks on the $3 trillion he was talking about with the congress. if

with us now, mark zandi from moodies analytics. christian, thank you both for being here.usy august this has been for the markets. i realize we're into september, but now they have the jobs report on top of it. how are the markets doing? >> well, august has been a rot ton month for the markets. just as it has been for most americans.rotton month for the . just as it has been for most americans.ern month for the mar. just as it has been for most americans.n month for the marke. just as it has been for most americans. i think there had been a hope that the recovery had started and i think august really, you know, solidified the fear that a lot of people had that actually the economy was very weak even if not going into a double dip recession, the recovery was extremely weak. and that made people worry about the value of their companies and, therefore, the value of holding shares. >> on which times we get bad news and the market goes up. now the market seems to be apgting like aand the market go. now the market seems to be apgting like a normal human being. >> i don't thinkdc

mark zandy thinks it will create 1.8 million jobs.s not too shabby. >> if it could, everybody would applaud that. it is clear what the president did, he was getting two kinds of advice. one was, look, you're president of the united states for the next year and a half. get something that the republicans can go for so you can work with so we can work on this problem and get it partly solved in any event. others were urging him, go up high, hammer the republicans as obstructionists, you know, we're going to take those s.o.b.s out, the barbarians at the gate, do that sort of thing and running a campaign. the president did the right thing for the country. i think the right thing for himself and for the unemployed, because in the last analysis, good policy is good politics. if he gets this through and as peter says, i doubt -- i think peter is optimistic but unemployment starts turning around, then it's good for the president as well as for the country. >> right. it's good for the country. that's what people need to be focused on right now,

i think you've seen what the american jobs act a program even republican economists like mark zandi.said this could reduce unemployment by 1%. that's got to be the first focus to grow this economy. the deficit and issue of taxes in the outer years, that's got to be addressed at a later time after the economy is moving forward. >> we have to do it all. the only problem is, it has to be done all together. we're not in a position -- we've given up an awful lot of time, pushed this forward years and years. they have to do it the right way. i think we look at washington and not sure they can do its right way. >> to answer the question whether or not stimulus is an effective way to stimulate the economy, this is a serious economic argument and debate to be had there. one thing people seem to agree on, whether or not it's the obama reduction or deficit reduction panel, they have this idea of tax simplification. my point is whether it's conservative economists or president obama this is an idea people have rallied. there's a reason they haven't enacted it. the tax code is a way to use social

we are told so by mark zandy.f i give it to the city of philadelphia, it only increases the economy by $1.36. increasing and the structure -- infrastructure -- increases gdp by $1.50. the original effort was a promise of four. they were going to have more government spending. that was a multiplier of 4 for the first $800 billion project. the governor was kind enough to say, grover, and you and the pledge have tremendous power. no. the taxpayers in the united wield tremendous power. we have made a commitment to the taxpayers, not to me, i promise to the voters of my district and a nation that i will not raise their taxes. we put this together to help enact the tax reform act of 1986. it is very clear that revenue- neutral tax changes -- you want to raise the gas tax to build more roads. you could have more wars and -- you could have more roads and stops caring people. 9.9% corporate income tax in pennsylvania. the pledge says, no net tax increases. as long as it is revenue neutral, overtime, then it is not a proble

mark zandi, an economist at moody's, has an estimation at 2.2% growth, with the blue chip is. it the american jobs act was passed, growth would be 4.2% in 2012. a 2% growth differential. job growth would be 1.9 million jobs higher. that is 158,000 jobs a month before rental. 158,000. -- that is a 158,000 jobs a month differential. it would not surprise you to know that i favor zandi's analysis. what is 110,000 additional jobs per month or 158,000 jobs per month, whether it would make growth go to 0.3% or 2.2%, there is simply no haste or not try to pass the american jobs at, for not trying to find a significant effort that we can take to gather -- together to protect against the risk of further unforeseen events and to offer the hope of greater momentum, greater job growth, greater economic confidence and more customers in stores by taking this type of action. yesterday, we put forward our legislation, which said how we would pay for every penny. as you saw, it called for limiting deductions at 28% for hiring some americans, those making over $250,000. it also called for reduc

republican economist mark zandi declared the president's plan would keep the u.s. from sliding back into the recession, add two points to the g.d.p. and add 1.9 million jobs. this plan is based on bipartisan proposals and it won't add a dime to the deficit. after nine months of taking over the house, republicans have not presented a single jobs bill. it's well past time for them to put politics aside and come together with democrats to put the country back to work. with so many people suffering, we must act and we must act now. . the speaker pro tempore: for what purpose does the gentleman from mississippi rise? >> to address the house for one minute. the speaker pro tempore: without objection, the gentleman from mississippi is recognized for one minute. >> mr. speaker, mississippi is a great place to live, work, and raise a family, and i want to keep it that way. mississippi is a proud right to work state. my state has attracted and continues to attract high-tech economic development projects and advanced manufacturing facilities. at a time when more than 14 milli

mark zandi come along, long with dr. allen blinder the chairman of the federal reserve, completed a study last year that measure the impact of federal actions to shore up the economy. including both the fed's monetary policy actions in the fiscal actions taken by the congress and the administration. here is a quote from their report. we find that its effects, it being the federal response, on real gdp, jobs and inflation are huge. and probably averted what could have been called the great depression 2.0. when all is said and done the financial and fiscal policies will have cost taxpayers a substantial sum, but not nearly as much as most of fear do not nearly as much as if policymakers had not acted at all. the comprehensive policy response save the economy from another's depression. as we estimate they were well worth their cost. this chart, the next chart, shows dr. zandi and dr. blinder's testament of the number of shows we would have had without the federal response. it shows we would have stayed million fewer jobs in

mark zandi come along, long with dr. allen blinder the chairman of the federal reserve, completed a study last year that measure the impact of federal actions to shore up the economy. including both the fed's monetary policy actions in the fiscal actions taken by the congress and the administration. here is a quote from their report. we find that its effects, it being the federal response, on real gdp, jobs and inflation are huge. and probably averted what could have been called the great depression 2.0. when all is said and done the financial and fiscal policies will have cost taxpayers a substantial sum, but not nearly as much as most of fear do not nearly as much as if policymakers had not acted at all. the comprehensive policy response save the economy from another's depression. as we estimate they were well worth their cost. this chart, the next chart, shows dr. zandi and dr. blinder's testament of the number of shows we would have had without the federal response. it shows we would have stayed million fewer jobs in

mark zandi, the chief economist at moody's analytics.bankruptcy, as well as appropriate policy responses. has been quoted widely by major media outlets and has appeared before many of the senate committees as well as this one. we are thankful to have his expertise with us again. dr. anthony sanders is a professor of finance of the school of management at george mason university. previously taught at the university of chicago, university of texas, ohio state. although he is from ronson, new jersey, we wish you would come back and teach somewhere like princeton or rafters. so his research and teaching focuses on financial institutions, capital markets, real-estate, finance, and investment. welcome them. and professor christopher sanders is a professor of real estate and co-director of the richard paul richmond center for business, law, and public policy at columbia business school. i would like to see your business card. must be a lot of room on your card. as research exposed many topics in real-estate and financial markets including real-

moody's mark zandi expects it to, quote, add 2 percentage points to real domestic product growth andd the $447 billion plan would be paid for 100% but he did not detail how it would be paid for. those details will come later in the month when he presents plans for deficit reduduion. jake tapper, abc news, the white house. >> the f ft that it will be paid for, that's got to appease the republicans right there. >> that plan jake referred to the president said he'll reveal next monday. >> right, right. you know, it's interesting. he did come out -- the president did d me out and defend collective bargaining, which is essentially a plug for the unions. >> got a big round of applause from the democrats on that issue. now that he made the pitch, now comes the sell to the american people. he hits the road today to sell it across the country, including today in virginia. we'll see how the people buy it. >>> another big story this friday morning, a widespread blackout that has plunged san diego and large areas on both sides of the u.s./mexico border into darkness right now. up to 5 million pe

we agree with mark zandi. but we also agree with economist zandi in saying we have to be very careful in how we cut now because of the difficult times we're going through. we cut significantly on programs that create jobs, but we did it. we have to get this debt under control. mr. president, as my friend said, his number-one goal is to defeat president obama; my friend, the republican leader. with that as the number-one goal, it makes it very difficult to get things done around here. but the august employment report released last week should be a wakeup call to every member of congress, democrats and republicans. we cannot waste any more time as has been wasted over the last eight months. the private sector added less than 20,000 jobs last month, and that was offset by the further unemployment that came in the ranks of the government. so the net job increase was basically zero. although august marked the 18th straeult month of -- straight month of private job sector growth, stagnant unemployment is not good eno

mark zandi, moody's, all this have was tied to it. nt will drop a point. gdp, 2%, but now he's, maybe like governor scott, he's tack tracking. >> alisyn: and june 2013, certainly 2014, the plan is a drag on the economy because the stimulus starts fading away. so by 2015. the economy is it in the same place as now as if there were no jobs package. in other words, it's a temporary fix. >> dave: hardly a ringing endorsement of these new 447 billion dollars jobs bill. now, what will the president use out there. it may be a tougher sell now. >> alisyn: let's get to your headlines and tell you what else is it happening at this hour. we have breaking news for you, two americans are among the dead after a tourist plane slams into the ground in nepal. all 19 people on board were killed and two americans are identified as andrew wade and natalie milen, the plane was trying to land in heavy fog, went down in a village near kathmandu, returning from a sightseeing tour of mt. everest. and it's homeward bound for the three american hikers, once held

mark zandi come along, long with dr. allen blinder the chairman of the federal reserve, completed a study last year that measure the impact of federal actions to shore up the economy. including both the fed's monetary policy actions in the fiscal actions taken by the congress and the administration. here is a quote from their report. we find that its effects, it being the federal response, on real gdp, jobs and inflation are huge. and probably averted what could have been called the great depression 2.0. when all is said and done the financial and fiscal policies will have cost taxpayers a substantial sum, but not nearly as much as most of fear do not nearly as much as if policymakers had not acted at all. the comprehensive policy response save the economy from another's depression. as we estimate they were well worth their cost. this chart, the next chart, shows dr. zandi and dr. blinder's testament of the number of shows we would have had without the federal response. it shows we would have stayed million fewer jobs in

. >> just talked to couple of minutes ago to mark zandi and just a little bit of light at the end ofher they're going to get there in time. >> i think the big story in washington next year. will the republicans hurt to economy to sell themselves politically. i think yes. here's why. mcconnell says his top political priority is defeating the president. not jobs. john boehner, when told his policies might cause layoffs, he said, so be it. congresswoman bachmann said i hope high employment helps my campaign. >> well, listen. it is not likely that michele bachmann will be the candidate our party settles on. it looks like right now romney is polling high and he is someone running on a message of turning around the economy. i think he's someone that will give president obama a run for his money. >> thanks so much. >> i'm psyched about this book. >> the reason i write fiction. >> democrat wills love this. a behind the scenes tale. >> a good publicist. that's right. >> it's classified. >> thanks so much, guys. >> thank you. >>> another republican presidential debate to your calendar. cnn jus

now he's trying to lower payroll taxes, and i think a very intelligently designed plan that even mark zandiyst says if the obama plan passed, it would reduce unemployment by producing a 1.3% to 2% growth in gdp, producing another 1 million 2 million jobs. i think putting out alreadyist examining infrastructure channels, it's not a bad thing to do. this is okay, and they can do this without any tax increase. this is for right now. >> did the president miss an opportunity on entitlement reform this week? because he really didn't touch social security at all and the changes, the cuts in medicare and medicaid, while significant, still in the big picture relatively modest, not raising the eligibility age from 65 to 67, for example, for medicare, was there an opportunity he should have gone and really come up with a grandiose plan? >> well, first of all, my view of what a grandiose plan and yours are might be different. i think what he wanted to do this week was to fill in the blanks on the $3 trillion he was talking about with the congress, because if you remember, the republicans in congress we

there are a number of outside analysts, mark zandi has put out estimates, macroeconomic advisers haveand they show a million to 2 million jobs being created, they show substantially more rapid growth in gdp if the american jobs act is passed. unlocking the spending power of -- power of americans through the payroll tax cuts, creating incentive to hire people through payroll tax cuts, and having -- spending on things like highways and bridges and keeping teachers and firemen and policemen on the roll all contribute to job creation. but today's plan builds on that as a base and goes beyond it to also put in place a balanced, fair approach than doing the $4 trillion in decifit reduction we need to get to a point where the decifit as a percentage the economy is at a sustainable level, below 3 percent and below the 2 percent range at the end of the 10-year period and that's what we really need to do to be fiscally responsible while we're investing in jobs. jenna: i ask the questions about the estimates because it seems to me, and we've had several conversations over the last year or so, we

mark zandi, along with dr. allen binder, former chairman of the federal se serve -- reserve, completed a stud cri of ethe impact of federal actions to shore up the economy, including the fed's monetary action and fiscal actions taken by the congress and administration. here's a quote from their report. we find that its effects, it being the federal response, on real g.d.p., jobs, and inflation are huge and probably averted what could have been called the great depression 2.0. 2.0. when all is said and dope, financial and fiscal policies will have cost taxpayers a substantial sum but not nearly as much as most had feared and not nearly as much as if policymakers had not acted at all. if the comprehensive policy response to save the economy from another depression as we estimate, they were well worth their cost. this chart, the next chart, shows dr. zandi and dr. blinder's estimate of the number of jobs we would have had without the federal response. it shows we would have eight million fewer jobs in the second q

mark zandi's numbers are on target?ust referred to two numbers that came out in different places. there was a range. i think he said 1.9? macroeconomic advisers was a bit lower. in each case, they demonstrate there are significant impacts on gdp growth, significant impact on job growth, and to begin reduction in unemployment, which is why the president's message to congress is to pass this bill now. >> [inaudible] this job will still create 2 million jobs, 1.5 million. does that not make it an easier sell? >> it is always a challenge with these projections. they are subject to a lot of things other than just what you are proposing in the package. we are very comfortable looking at the estimates that outside experts have done, which have very much supports the importance of this package as an engine of economic growth, in terms of faster gdp growth, job growth, bringing down unemployment. the american people do not want us to be standing here arguing over estimates but getting the job done to create jobs bit of a questio

we are thrilled with that, that our bill has been introduced by mark zandi, the chief economist by william gross, managing your encode cio of them cohousing and then thomas lawler has been endorsed by the national association law center, the national association of mortgage brokers and many others. so it's a win-win for fannie and freddie. but they can do this without her legislation. senator isakson and i are saying today, please come if they are listening somewhere are out there somewhere, please do this. this will save you money. you know, this will save fannie and freddie $100 million. this will help, by the way cbo says after 2 million homeowners. when they made that estimate, that's an interest rate or higher and we believe you're looking at perhaps three to 4 million homeowners, 5 million actually close to 5 million eligible for this. that's their story and we're sticking to it. we are strong in this. the fha say we hope will follow through on some of the many statements they've been making recently, but this is going to help our economy. it's going to keep people in their homes and

earlier we had a couple of references to the economist mark zandi who testified before this committee at our last hearing and i just want to say, first of all, i think it's important to know his background. he was advisor to the mccain campaign in the last election and i think he made clear at the last hearing his forecast was off, as were many economists because we've had a series of events which he described in some detail last week which i think in fairness we ought to remind people of. first of all, the disturbances in the middle east that had a dramatic effect on oil prices. oil prices went up, that meant gasoline prices went up, all heating fuels went up, that operated like putting a tax on the american economy. and the global economy. so that had an effect on slowing things down. second we had the tsunami and the resulting nuclear disaster in japan. that had an effect on global demand. that had an effect on manufacturing. then on top of that we had the european debt crisis. we read about that every day. greece, ireland, spain, portugal, increasingly italy, that has had an impac

we saw mark zandi from moody's saying it could cut 1% from unploem from nine in change to eight in changeat's what we're hearing the plan is temporary. looks like it could be a negative day here on wall street. back to you, willie. >> melissa francis, cnbc headquarters. the political reaction. from the president's speech. >>> when we come back on "morning joe" a look back at the last day of the pre-9/11 war. we'll look at what was making news on september the 10th, 2001. be right back. [ agent ] so your policy looks good, is there anything else? why did you buy my husband a falcon? thanks for the falcon. i didn't buy anyone a falcon. sure, you did. you saved us a lot of money on auto insurance. i used that money to buy a falcon. ergo, you bought me a falcon. i should've got a falcon. most people who switch to state farm save on average about $480. what they do with it, well, that's their business. oh, that explains a lot, actually. [ chuckles ] [ male announcer ] another reason people switch to state farm. aw, i could've gotten a falcon. [ male announcer ] get to a better state. [ falcon

mark zandi, the chief economist at moody's, estimated 2.2% growth, right where the blue chip is. they predicted it the american jobs act was passed, growth would be 4.2% in 2012. a 2% growth differential. job growth would be 1.9 million jobs higher. that is 158,000 jobs per month differential. 158,000. it is clear that others such as macroeconomic advisers, were not quite as high. the route 1.3% growth. it would not surprise you to know that i favor his analysis, but whether it is 110,000 additional jobs per month or 158,000 jobs per month, whether it would make projections of growth go from 2.0 to 3.3% or 2.2, there is simply no case for not trying to pass the american jobs that were not trying to find a significant effort that we could take to the other to give this economy meant to cover protect against the risk of further unforeseen event or downside coming in to offer the hope of greater momentum, greater job growth, a greater economic confidence and more customers by taking this type of action. yesterday we put forward legislation that said how we would pay for every penny.