i think there's still a lot that the market has to digest. >> brown: mohamed el-erian, you mentioned the government situation. is there still, do you think, the possibility of a credit downgrade, even after the debt deal? where are we on that and what impact... how does that impact markets? >> the possibility is there, and it's really s&p. one of the two rating agencies. the other one, moody's came out last night and said, we're going to keep the u.s. at triple-a, but we're putting the outlook on negative, which means we're worried that it's deteriorating over time. s&p has been much stronger. back on july 14th it put the u.s. outlook on negative watch, which means a presumption that you will downgrade unless you get policy reaction. it's a question mark as to whether there's been enough out of washington, whether this debt ceiling is going to satisfy s&p or not, and we're going to have to wait. if we do get a downgrade, i suspect that the markets will not take it well. >> brown: liz anne sonders, what would you add to that, and also, you mentioned europe a little earlier. those prob

we're going to be listening to mohamed el-erian from pimco later on, they're very involved in bonds.ystia, thanks for that analysis. christine, i think you should start a campaign for people to get their elected officials to come together on this one and try and fix it up. >>> one of the biggest concerns out there is jobs. there are actually sectors that are hiring. we'll tell you which employers are looking to hire next on "your money." ight above my weight class. but i did. they said i couldn't get elected to congress. but i did. now i'm trying to make it in music. ♪ sometimes when we touch ha ha! millions of hits! [ male announcer ] the new hp touchpad. get it now for $100 off, starting at $399.99. ♪ ♪ [ recorded voice ] onstar. we're looking for city hall. i'm sending directions to your car. [ recorded voice #2 ] turn right on hill street. go north for two miles. ♪ [ man ] this is onstar. i got a signal there's been a crash. do you need help? yes, please. i've got your gps location. i'm sending help. [ female announcer ] introducing onstar fmv. get it installed on your car at bes

we're going to be listening to mohamed el-erian from pimco later on, they're very involved in bonds. chrystia, thanks for that analysis. christine, i think you should start a campaign for people to get their elected officials to come together on this one and try and fix it up. >>> one of the biggest concerns out there is jobs. there are actually sectors that are hiring. we'll tell you which employers are looking to hire next on "your money." [ male announcer ] do you have questions about medicare? are you wondering about your options? with over 30 years of medicare experience, unitedhealthcare medicare solutions can help. just give us a call. the annual enrollment period to switch your medicare coverage is earlier this year, from october 15th to december 7th, so now is a great time to review your situation. i'm looking for help paying for my prescriptions. [ male announcer ] that's a part d prescription drug plan. choose a stand-alone plan, or combine it with a medicare supplement plan. it's all in our free guide. is there a single plan that combines medicare parts a & b with medical

i want to bring in mohamed el erian of pimco, who knows about this more than anyone. thank you for being here. and i suppose i'll ask the question right off the top here. are we staring at another recession? >> it's a worrisome risk. and it's a risk that's going up with three reasons. first, as we heard, the economy is weakening across the board, david. second, quite a few people have lost trust in washington. and third, let's not forget that europe is having a major debt crisis. >> we are watching europe very closely. and we heard bianna report on the jobs numbers that come out tomorrow. this will determine where the market heads on friday. >> it will, david, and, you know, those monthly numbers go all over the place. but unfortunately, i feel that two things are going to happen in the next three to six months. one, an already excessive unemployment rate is going to go higher. and two, to make things worse, the time that someone's unemployed is probably going to go up. >> all right, some dire predictions tonight. mohamed el erian, we thank you nonetheless. >>> and we

he's mohamed el-erian, c.e.o. and co-c.i.o. of pimco, the world's largest bond fund. >> hi susie. >> still picking up with jared left off, talking about confidence. do you think that the fed today laid the foundation to restore confidence? >> the fed did three important things in a wild day and a wild week. it's hard to believe it's only tuesday. but importantly, the fed first recognized an unusually blunt language that the economy is in trouble. second, it did something unpress denied. it showed it could think out of the box. not only would it keep rates at zero but do so at least until june 2013. and third, it told us that its its -- it's willing to do more. so the fed is showing a willingness to react. the question mark is will it be effective. at best susie, the fed is a bridge, a bridge to other agencies getting their act together in washington. >> susie: all right. do you think that the fed's description of the economy is an accurate portrait, and how bad really are things going to get? >> i think it's getting more accura

mohamed el-erian from pimco has written about this. to see how the connections change or all terrify over the next weeks and months to see how it will pan out. we'll be watching out municipalities and what it means for them. borrowing money in your own home town. we'll be watching that. >> give me 30 seconds on this. a little quiz for you. what stock on the dow, one of the dow 30 lost 20% yesterday? >> bank of america. this stock got hammered. it lost something like dallas 33 billion in short order. on paper. the stock has been hit so hard. remember countrywide? there's real concerns about a slowing economy what that means for its business, what its exposure to these loans. the lawsuits of countrywide during the boom and subsequently the bust. so this is a company. watch it carefully. will this thing bounce back? this is a stock that's been hammered so severely. but it does have, the analysts say significant problems with that countrywide and exposure and also just a slowing economy what that means for its business. we'll watch this on

as mohammed el erian ceo of the investment management firm, pimco, big bond dealers, told our piers morganoothe economic jitters. >> both the deal and after the deal we are worse off than we were before. everybody knows at the end of the day we haven't improved things but made them worse. >> so depressing. >> i know. like, oh, my gosh. i know what you're wondering now. what will be cut by this so-called super committee and the answer is -- we don't know yet. likely one of the first places they're going to look is the government's pay rolle. we could see thousands of federal workers cut, as it is they are operating under a two-year pay freeze. the defense department not safe. bracing for its budget potentially to be slashed by $350 billion over the next ten years. >> people have to remember that while we talk about smaller government and some people like the concept of smaller government, it ultimately means fewer government employees. so in an economy where 15 mill reason out of work, going to be more people out of work. >> fewer government services and the part of the budget they're cutti