we're joined by moody's capital chief economist ron lonski. former democratic congressman don't idennis kucinich, this dot sound like good news for republican leadership or perhaps republican party. your assessment? >> well, i think, we said all along we want to get the government back open. we want to do that we don't want to default on the debt. i think we're still working the process, moving forward, we still got to get 217 votes to agree on something to send forward, i think you will see the speaker, i heard him, agree with what he said, they will work through on the the night find some solution to this. lou: dennis, you have been there, your thoughts about the way that this president, and the republican leadership are conducting themselves here? >> well, one thing we don't need to do is further polarize the situation, i will avoid, that i would suggest is, something that members of congress may not be thinking about, but they ought to, if country goes into default, it would be horrible. a betrayal of trust of the american people. but i wi

joining us from moody's debt rating. marty, the president isn't there. keenly felt is his absence? >> well, ross, that's exactly the thing that everybody is talking about here. the reaction, as you might expect, understandably is disappointment. some leaders think it is a little embarrassing for this to happen to the u.s. we talked to the president of the philippines. he said, look, he understands the situation that obama is in. he's a little bit more sanguine. the last-minute decision to stop his asia trip because of the crisis in d.c., that is really the big story right now. overnight, ross, we had the house speaker, john boehner, warning that the u.s. is on the path to a default, but here you're right, we talked to folks over in moody's. the ceo, ray mcdaniel, in fact we put that question to him. he said, no, that is still very unlikely. take a listen. >> we have a aaa stable rating on u.s. treasury securities. that reflects our thinking, that it is extremely unlikely that a government treasury is not going to continue to pay on the treasury securitie

moody's has warned us. we met with moody's last week.are you willing to step down from your positions and allow someone else in the job to get the job done? the american people want all you guys fired, right? >> i can get the job done. >> really? then how come you're not? >> i'm not going to escape out the back door. i'm trying. i'm working hard every day. let's put what mike said in context. '96, the deficit, we didn't pay for either war. we have come to a situation where we had a meltdown of our economy in 2008. let's put things in context. nobody was spending money. no capital to be invested in 2008 or 2009. the government has to step forward as they've done in every recession, in the 20th century. put it in context and let's be really fair about it. >> before we go, we're running out of time. congressman kelly, give us a timetable. what are you voting on tonight and do you expect the house to have something to show to the senate by tonight? >> absolutely, i expect it to be there. i was in conference this morning, when we get there th

kate moody explains. >> world leaders, foreign citizens, and internet giants, the latest victims of the national security agency's surveillance programs according to intelligence linked by edward snowden. the nsa has admitted to the program to access internet user accounts but described new reports that infiltrated yahoo! and google databases as factually incorrect. breakings not an essay into any databases. it would be illegal for us to do that. -- does collect information on terrorists and our national intelligence priorities, but we are not authorized to go into a u.s. company's servers and take data. we have to go to a court process for doing that. >> but the "washington post" says there is more to the story, reporting details of a separate over program-- nsa dubbed muscular. fiber-optic cables that connect the databases on four continents, collecting information including text, audio, and video. u.s. law forbids the government from explicitly spying on u.s. citizens on american soil without a court order. the cables crisscross under international waters, allowing the nsa to bypass

joining us now, to breakdown the decision, moody's chief economist. great to have you year. did not see so much in the fed notes to suggest this kind of reaction. >> if you look very, very closely with that notice that this time around the fed made no mention of a tightening of financial conditions as they did before the september fomc policy statement. as a result the market took this to mean that, perhaps, the fed thinks the economy is moving better. in turn the market is showing a higher probability to a first quarter 2014 paper than it did previously. lou: one was street journal noting that leaves open the possibility of a december tapering. >> no way in the world. that will not happen because the data will be so very messed up because of the government shut down. we will not give clarity and toes january. lou: it is one of those things. all i can think of is you are you going to believe, the fed or your lying eyes? we can see what is going on. >> the problem is, why is the fed so important. this is telling me that investors really don't have a great deal of confidence i

we asked marisa di natale, an economist at moody's analytics, about the impact the government shutdown is having on the nation's economy, and risks of the nation defaulting on its debt. >> the impact of the government shutdown on the u.s. economy really depends on how long it lasts. so if it only lasts maybe a couple more days, and it's resolved next week, we expect the economic impact to be pretty minimal. so we're talking about fourth-quarter gdp growth that's maybe about 0.2 of a percentage point lower than it would have been. if, however, the shutdown lasts longer, if it lasts two or three weeks, even four weeks, like it did back in 1995-1996, we could actually see a decline in fourth-quarter gdp, and the economic impact would be much, much more severe. we also have to remember there's about 800,000 federal workers that are laid off right now without pay. when that happened in '95-'96, they were paid retroactively when the government opened up again. so that's good, but in the meantime, we're missing a lot of consumer spending, discretionary spending in the economy. we think that t

mayor ed lee met in august with the bond rating agencies moodies, fitch rate ins and standard & poor's, standard upgraded the city's general obligation bonds to double a minus to double a plus. moodies and fitch also affirmed their double a credit rating, citing a strong local economy and budget flexibility. >> well, 4:52 is the time edid you hear about the 9-year-old boy who stowed away on a flight to las vegas? well, we are now hearing from his father, talks to reporter. >> samsung's newest cell phone, how much it costs and why it has a curved screen. >>> welcome back, and this certainly was not a fun ride, thrill seekers got much more than they bargained for there. yeah, it broke down, trapping riders for two hours, they were stuck in the ride 170 feet up in the air at an angle of 90 degrees, they think it was malfunction. >>> the boy from snuck through squirt and flew there on his own without a ticket is expected to be returned tomorrow. the boy's father spoke to reporters yesterday with a hoodie pulled tight to hide his face, he said his son is a troublemaker who does not listen t

what moodies is saying. if we are push to the brink we procedure advertise what bills we pay, our mortgage our rent first. we might let the master card or visa slide. rent, rand paul says makes sense. it's not ideal way to conduct business it is a back stop and a way for the government to not necessarily immediately go into default. senator, very good to have you. nevertheless, they have been equating, that is the administration, a lot of other prominent democrats that hitting this deadline is, in fact, defaulting and they are scaring folks. >> yeah. i think its inappropriate for the president to be doing that. and it's irresponsible. the thing is we won't default. if the president were any kind of leader, he would be saying this is america. we have never defaulted. and we never plan on defaulting. and i will do everything in my power not to default. we bring in $250 billion a month. our interest payment is 20 billion. there is no reason why tax revenue shouldn't be plenty to pay the interest on the debt. >>

you mentioned moody's. moody's said that even if we prioritize the debt,, november 1 when we have a payment due they will not be enough receipts in the federal treasury to pay both the bondholders and social security recipients, much less veterans health care and military salaries and all of the other things you have exempted from the shutdown. would this be even worse than the shutdown? >> the full faith and credit act, in accordance with the constitution, explicitly exempts social security. it would not be a part of the calculation. at some point we have to deal with this debt crisis. there are those who always want to put it off to the next day. i am sure there were voices in greece, in detroit, saying put it off for another day. but no, we have to do this today. i am saying this not just as a congressman, but as the father of a 10-year-old son and 11- year-old daughter. on the verge of being the first generation in america's history to leave the next generation with less freedom, fewer opportunities, an

fitch and moody's where they overvalue u.s. debt and undervalue the rest of the world and begin to understand the nature of this collective scam of this racket because it includes the accounting firms the fund managers the hedge funds government and of course the rating agencies which we've said before are part of the corrupt part of this whole nightmare and in the case of moody's you give them money and they give you a rating and typically they downgrade foreign debt in france of u.s. debt and this is how during these periods of extreme financial terrorism the u.s. has had this extraordinary privilege of having money flowing to its aaa debt only later did we do we find out that it was not aaa was triple c. or worthless entirely and this is what we've been saying we've been advocating for this for years i beg to china to do this i beg russia to do this so not only is russia taken my advice and bought lots of gold but now russia is taking my advice. participating in this new global credit rating agency head by none other than do

who do you believe, moody's or the president? >> moody's, s&p. they're the ones raising credit.appens whennunited states stops paying its debt. all sides said that won't happen. there are mechanisms in place where we take revenue that comes in every single day and pay back the debt. ultimately we have to raise the debt ceiling this whole 14th amendment question is a real question because you can not question it. there are some constitutional scholars who say if it comes to the point where congress refuses to do it than the president can constitutionally raise it. i don't know, i'm not a constitutional scholar. i think pass business person and business community looking at this, saying there is lot of ways we can get around this. liz: treasury secretary jack lew told fox business last thursday, no way the president will not invoke the 14th amendment. david: that's right. liz: he said there is no change in sofa cushions he is hiding from anybody. he is tapped out october 17th. we will watch it. david: steve, tough questioning you answered well. i appreciate it. liz: thank you. >>

moody's has not yet acted. serious warning signs that could have enormous ramifications on the u.s. economy, richard. >> reporter: absolutely. one level, just because this is a crack in the dam, if you like, when you go on a negative ratings watch, this is how fitch themselves describe it. a rating watch indicates there's a heightened probability of a ratings change, and fitch says that the u.s. will be on this negative watch until probably the end of the first quarter of 2014. that takes us to the end of march of next year. wolf, it is the reasons why fitch has put the u.s. on this watch that are so telling. the sort of things you and i have been talking about every day. warning the u.s. could be forced into default, could be forced into delaying payments, calling into question the full faith and credit of the united states lending ability, borrowing ability, calling into question the u.s. dollar, and finally, they're the high risks. finally, on the medium risks, they talk about, and this goes right to the hea

fitch and moody's where they overvalue u.s. debt and undervalue the rest of the world well i'm beginning to understand the nature of this collective scam of this racket because it includes the accounting firms the fund managers the hedge funds government and of course the rating agencies which we've said before are part of the corrupt part of this whole nightmare and in the case of moody's you give them money and they give you a rating and typically they downgrade foreign debt in france of u.s. debt and this is how during these periods of extreme financial terrorism the u.s. has had this extraordinary privilege of having money flowing to its aaa debt only later did we do we find out that it was not aaa was triple c. or worthless entirely and this is what we've been saying we've been advocating for this for years i beg to china to do this i beg russia to do this so not only is russia taken. my advice and bought lots of gold but now russia is taking my advice and they're participating in this new global credit rating agency head

when moody's today put out saying it is impossible the matt is implausible.: that comes just after a friend of the president and the icon for the movies was trying to scare people the is to shed comes out and slaps him down as well as the administration as they should have. we give them credit spigot but take a step back. realize how shrill the political theater has become with the president will lay to scare the world equity and debt markets for political gain i am sorry. that crosses the line to be unpatriotic. the basic math is very simple. we will take and a little over 3 trillion of revenue to the fiscal year 2014 and spent 3.six. we have a $600 billion shortfall that is 60 percent of our budget we have a massive cash flow to cover the bond payment and the vast majority of government. you'd think someone in the white house would be honest to hold the cat can cater to tell the truth. lou: even in gdp terms it is even more simple. 3 trillion of revenue we talk about $30 billion per month of interest it is an absurdity as people sit around the briefing room

he got spanked when moody put out its letter saying it's i am plausible.he math is i am plausible. >> that warning after ed zandi, friend of the president, and icon avatar for moody's, was trying to scare folks. the constitution comes out within days and slaps him down as well as the administration a they should have and we give them credit. >> but, lou, w almost have to take a step back here and realize how shrill the political theater has become. when you have a president, a democrat party, willing to scare the world equity an then the world debt markets on u.s. sovereign debt for political gain. i'm sorry, i don't know at what point that cross the line of being unpatriotic. the math is simple. we're going to take in $3 trillion, a little over $3 trillion in revenue in fiscal year 2014. we'll spend about 3.6. we have a $600 billion shortfall. that's about 16% of our budge we have massive cash to blow to cover our bond payments and the vastajority of government. you would think someone in the white house would be honest, look into the camera and hold a ca

moody's talks about that. we have enough money to service our debt to raise the debt this time is -- we're here because they have not addressed the problems in past congresses over last 20 years issue we have raised debt ceiling 14 times since 2001, if raising the debt ceiling is the answer we would not be talking about this we have to look at the spending side, growing the revenue side. charles: what about the idea someone would have to pick and choose what gets paid. your pointt we have enough money to pay interest on the debt we owe . in the world but after that who decides what gets paid, who gets cut. >> secretary of treasury, mr mr. lew . charles: let's say, that time they say we have enough money for a 10% hair cut on social security or something else. do you think that the american public would stand for that. >> number one, i am going to social security, no. but we need to look at social programs, to make cuts right now, not cuts we need to do reforms in them, so the programs are there for the safety

he met with moodies, standard & poors and fitch ratings.d & poors upgraded the general obligation bonds from double a minus to double a plus. moody's and fitch affirmed the double a credit rating citing a strong local economy and budget flexibility. >>> a quick note here tomorrow's game the crucial game between the as and tigers we misspoke that match up is actually set to begin at 5:07 p.m. tomorrow night. >>> her story inspired a movie. how this shark attack survivor is now inspiring bay area teens tonight. >> from cool to mild, hour by hour look as the temperature swings in store >>> he is now facing felony weapons charges on top of his arrest for allegedly driving under the influence. prosecutors filed new charges today. a search of his home last year turned up weapons similar to these, two busch master rifles and an arma light ar-10 t police were called to a party at smith's home. >> people were shot and smith himself was stabbed the party was out of control. >> prosecutors say he bought the weapons in arizona and could face federal ch

do you think that moody's and fitch, this time around are watching what happened to s&p.aybe they may threaten with a negative watch but they wouldn't actually do it? >> well, that is the point. you can threaten with a watch. it doesn't automatically suggest they're going to downgrade. yes, but not only, was it the legalrangling that s&p had to deal with, but al remember, all the armageddon scenarios what would happen if any of of the ratings agencies downgraded debt there would be massive selling of treasurys because ownership would be questioned. it would go against investment policy statements because of the need to own aaa. ne of those things came to fruition. i think from a mket impact perspective we've been down this road before. whether it is just bluster on their part, i don't think we're like to hearnything from them until w get past the deadline and look at potential default. you ma a good point. melissa: so do you think thoh, that downgrade would not b armageddon this time around? there are still, i mean you have so many people out there saying the opposite. ma

he met with moodies, standard & poors and fitch ratings.ard & poors upgraded the general obligation bonds from double a minus to double a plus. moody's and fitch affirmed the double a credit rating citing a strong local economy and budget flexibility. >>> a quick note here tomorrow's game the crucial game between the as and tigers we misspoke that match up is actually set to begin at 5:07 p.m. tomorrow night. >>> her story inspired a movie. how this shark attack survivor is now inspiring bay area teens tonight. >> from cool to mild, hour by hour look as the temperature swings in store for your neighbourhood. >> dogs getting high. >> you all right. >> the troubling trend veterinarians say can be deadly ♪ music life insurance from new york life can help your family keep good going. when ouwe got a subaru.s born, it's where she said her first word. (little girl) no! saw her first day of school. (little girl) bye bye! made a best friend forever. the back seat of my subaru is where she grew up. what? (announcer) the two-thousand-fourteen subaru

german approval we have a pool from greece to be sent to the oddities of come over selling a product moody's we have people from australia so that it is a system where all regulatory authorities don't take chances they all come and make sure the proposition because there's in place would lead then the ilo. thank. outside of mumbai's counts are hospitals the patients relatives come for months on end. i have been here for three months. but my son has cancer here on the side. he had surgery we're staying here. but there was a lump in my chest. i went to get tested and they told me it was cancer and let me go. again sad. what should i do all the money i have saved was spent on the trip to come here it is gone. but what will i do know. that where will i go where will i stay. mr kumar is a professor of oncology and works for one of the country's largest cancer hospitals . india to be have almost one million new cases at the. beach of which anything printed by him would be quote it would miss the number of pieces to be close to ten million. only a small percentage who can get to the helpful man to

have german approval we have a pool from greece to be sent to the other two so selling a product moody's we have people from australia so that it is a system where all regulatory authorities don't take chances they all come and make sure the proposition because those in place would lead then the ilo. thank. outside of mumbai's counts are hospitals the patients relatives come for months on end. and i have been here for three months. but my son has cancer here on the side. he had surgery we're staying here. but there was a lump in my chest. i went to get tested and they told me it was cancer and let me go. again saturday. what should i do all the money i have saved was spent on the trip to come here it is gone yeah. i love it but what will i do know. that where will i go where will i stay. mr kumar is a professor of oncology and works for one of the country's largest counter hospitals . india to be have almost one million new cases at the. beach of which i mean reprinted by what we call it would miss the total number of cases you'd be close to ten million. only a small percentage who can g

i thought it was interesting, moody's discussion. much of moody is saying, does anybody want to be targeted by the u.s. government? >> do you there there has been a chilling effect? >> s&p has claimed it was a target on sub-prime securities and that lawsuit that followed. they say that. i have no idea what they have to prove that is the case. one might wonder whether you are ever going to do it again if you are a rating agency. they are always backward-looking, not forward looking and they are of little help. >> look, if i were the s&p, i would say, listen, i have to put it on watch. it has to be fathomable by somebody. right now, if president obama said, look, i'm not going to negotiate from the debt limit. i do want to negotiate on some issues the republicans bring up all the time about entitlements. i think people fear the market could be up 5% on that one line. in other words, let's take that off the table but i am worried about entitlements. that's what i think, people are afraid of shorting or selling this market. >> what about

that is moody's. moody's said in a memo dated out hobart seven, here's a story from "national review" online. we will talk more about that in a few minutes with our next guest. lindsay is next from dover plains, new york on our line for democrats. lindsay, good morning. was proud to serve in the united states navy from 1969 to 1973 and i served in vietnam. i am proud to be a veteran. this finger-pointing situation that blame game thing we are past that issue. we have to resolve the problems in this country and be united. are working for the united states of america they have to act like they're united themselves. anyone that thinks they are not exonerated from the repercussions from whatever decisions they make, and that includes their families, their grandparents, their children. no more of this politics. i've never seen so many different energies as far as greenpeace, tea party, republican, democrat him all this different kind of entities right now. we have to stand united in this country. we fought

we asked marisa di natale, an economist at moody's analytics, about the impact the government shutdown is having on the nation's economy, and risks of the nation defaulting on its debt. >> the impact of the government shutdown on the u.s. economy really depends on how long it lasts. so if it only lasts maybe a couple more days, and it's resolved next week, we expect the economic impact to be pretty minimal. so we're talking about fourth-quarter gdp growth that's maybe about 0.2 of a percentage point lower than it would have been. if, however, the shutdown lasts longer, if it lasts two or three weeks, even four weeks, like it did back in 1995-1996, we could actually see a decline in fourth-quarter gdp, and the economic impact would be much, much more severe. we also have to remember there's about 800,000 federal workers that are laid off right now without pay. when that happened in '95-'96, they were paid retroactively when the government opened up again. so that's good, but in the meantime, we're missing a lot of consumer spending, discretionary spending in the economy. we think that t

. >>> some tech companies are doing better than others these days, moodies the credit rating company said apple's stockpile of $150 billion in cash accounts for about 10% of all cash holdings by american companies and not including cash by the banks. >> wells fargo is not doing enough to help struggling borrows navigate to mortgage servicing abuses. the new york state attorney general said that the nation's fourth largest bank and by the way, biggest mortgage lender is not compiling with last year's 25 billion-dollar multi million dollar bank settlement with 49 states to end those abusive practices. in a statement, wells fargo said the bank had taken voluntary steps to put in place the customer service changes agreed to in that multibank statement. >>> well, three companies making their wall street debuts and that's where we begin the market focus. remax shares fell higher after pricing at $22 a piece above the range that it had been seeking. the ipo comes at a time when mortgage rates are inching higher but that's not a concern for the company's ceo. >> they could go lower, but i th

moody's investors says apple has $147 billion hoarded away.hat represents 10% of all cash held by u.s. corporations. microsoft has the second largest cash holding but it's less than half of the size of apple's stash. >>> three of microsoft's top 20 investors are pushing for co- founder bill gates to step down as chairman. gates has been under pressure to improve the company's performance. gates who is still the shareholder is not commenting. >>> san francisco's oldest footrace has a new owner. he's working on keeping the beta breakers fun and clean. casey wasserman plans to meet with long-time race participants, neighbors and city officials to hear their hout thoughts. he says there needs to be security, cleanup and post race improvements to keep people safe. >>> a parking spot in san francisco became a hotter commodity. the new rules and learned when we crunched the numbers. that story at 5:00. >>> thank you for making ktvu your choice for news. we'll see you the next time news breaks. >> coming next, helping various abandoned animals. plus,

so we're going to bring in mark zandi, the chief economist of moody's analytics. mark you just heard what john boehner said today. how does wall street take that comment? >> i think it's a big problem. the president says he's to the going to negotiate on the debt limit. the speaker says he is not going to raise the debt limit until the president negotiates. it is a game of chicken, with each passing day it will get more anxious for stock investor, bond investors. and if lawmakers don't get it together by october 17th it's going to be a collision, an economic collision that is going to wreck our economy. so this is a problem. >> jeff: if that collision 457s, what happens if the debt ceiling doesn't get raised? >> well, what it means is that the treasury can't pay all its bills and can't make payments on the nation's debt. that means that at some point social security recipients won't get a check, medicare, medicaid providers aren't going pedestrian paid, military personnel may not get their money on time and investors will wonder if the treasury is going to make pa

moody's, the rating agency says the following, that the u.s. treasury department is likely to continue paying interest on the government debt even if congress fails to lift the limit on borrowing next week, thereby preserving the nation's sterling aaa credit. what they're saying is something i say every night. we get $240 billion a month of income. we only have to pay out $35 billion of interest expense. there is no chance, there is simply no chance that we will default on our u.s. treasury obligations. and why the president continues to go down that road, i do not get it. he should be optimistic instead of trying to scare the bejesus out of everybody. >> the president is optimistic about the country's economy. we talks about the private sector creating jobs and the deficit shrinking under his leadership. but this is just bad policy. i heard senator johnson -- what i heard him say is that the debt ceiling is a piece of leverage that republicans have. that just grosses me out, frankly. the fact that they are going to take the solvency -- our cre

moody says the government shutdown and the risk of default have cost the u.s. economy $22 billion just these last two weeks. the illusive budget deal sent stocks into a free fall today. the dow plunged 133 points dragging the nasdaq and s and p with it. >> forcing workers off the job as sharon chin reports, the lawrence livermore lab has to send its workers walking. >> employees leaving lawrence, livermore tonight wonder if they will return the rest of the week. the engineer is worried. >> we live paycheck to paycheck. >> cover thursday and friday, if the government shutdown lasts longer that, ky catch in vacation days or go without pay. >> it's upsetting. we know they have to come to some kind of an agreement as to why we wait until last minute. >> many of our employees are going through foreclosures and having trouble buying groceries. >> researchers would leave behind important scientific work. >> you aren't allowed to work at home. >> frustrate something. >> yes. >> some fear the government shutdown will accelerate a brain drain, highly qualified scientists

news, chris moody. ben, isle start with you.eard congressman roskam, who knows obama from illinois, saying he thinks ultimately president obama, if it is a big deal about opening up the government and raising the debt ceiling and a whole bunch of other things, that there might be room for negotiating, he doesn't believe president obama wouldn't. >> look, the president's not going to participate in government by ransom. i expect him to have one demand today when he sits down with republican leadership, which is to say put a funding bill on the floor. a clean funding bill to fund the government for the next two months. once you pass that bill, let's return to regular order. we can have budget negotiations. house republicans have refused to appoint members to a conference committee 18 times that would have that negotiation. the president has been willing all along to have that negotiation but he's got going to overturn the results of the presidential election and participate in government by rans ransom. >> karla. >> you know, if p

we'll get analysis from mark zandi of moody's analytic. stuart rothenberg of the "rothenberg political report." gerald seib of the "wall street journal," and michael gerson of the "washington post." the government is back in business, and compg it all is our business because this is "face the nation." captioning sponsored by cbs from cbs news in washington, "face the nation" with bob schieffer. >> schieffer: and good morning again. we welcome to the broadcast the senate republican leader mitch mcconnell. senator mcconnell, jim baker, the former secretary of state who led five republican presidential campaigns, described this recent brawl over trying to tie the defunding of obamaed care to shutting down the u.s. government, he described it by recalling the words of a long-ago candidate who lost a senate race in texas who said, "we shot ourselves in the foot, and then reloaded." will you ever let something like this happen again jew know, one of my favorite old kentucky sayings is there's no education in the second kick of the mule. the firs

finally with $147 billion, let me repeat that, $147 billion on its books, moody's says apple holds 10%orate cash. apple and many other companies are stashing more money overseas so we're wondering, john forth, whether beneficial to lower the corporate tax rate to bring the money back. what do you think? that's a lot of in un. >> a lot of people think so and carl icahn wants to put that cash to work either way. >> he wants $150 billion buyback. >> yeah. all of it. >> what do you think, seema? they could do a lot of shopping with that. >> many say they could and i think many say that the corporate tax structure here in the u.s. is outdated. maybe this is apple's way of playing it smart. that's what i think they're trying to do. >> all right. john and seema, thanks. >> seema is a champ. she does the rundown from the streets of new york city. all right. the government shuts down, the rich apparently are partying very hard these days. what's going on? >> they are. during the recession the wealthy turned down the noise on their parties but now, they've turned it back up and they're celebrati

moody's analytic sess advising that we keep the champagne on ice. the latest eurozone outlook warnings that the debt crisis continues to hit levels. bank loans are still underperforming and another u.s. debt crisis could keep the euro at elevated levels. still with us, the director of economics at moody's analytics. and peta. we've heard from santander yesterday, bbva today. how concerned are you still by the ratio of nonperforming loans in peripheral, particularly in spain? >> well, the ratio is still high and the banking sector in spain has received the money from the mechanism over $40 billion. however, there's still a big portion of nonperforming loanes and those are related to the boom from early 2000. and this can still kraed create a lot of problems. >> is the ecb stress test going to get it right? are they going to result in banks having to move to capital? >> well, the european central bank is going to conduct the stress test for 130 banks, but this is some time for now. they will provide some kind of rate -- and a review of assets. this wi

this is around big moody curve. sound likes there are rocks in lanes. that happens from time to time. no lanes are closed but there is activity and slowing so we'll track that as well. looking at speed through the tri-valley. typical drive for 580 and 680. slowing for 84 that might be the first person traffic as some hit that signal there. we'll watch that. a look at the peninsula we see an easy flow for 101 as traveling north of the headlights through palo alto no. delays, similar to this on 280 up the peninsula. might be tough tear the coast but i'll let you talk about why that might be. back to you. >> are they vegetables or pumpkins? they could be mistaken for boulders. >> halloween decorations. >> pumpkins weighing almost a ton are rolling into half moon bay. the 2013 safeway world pumpkin weigh-off at 7:00 this morning. the week-long art and pumpkin festival. how big, last year's winning pumpkin weighed 1700 pounds. the winner get as cash prize of more than $10,000. >> look at that thing. it's huge. have to put it in the back of a truck. >> some t

recently they downgraded, recently moodies downgraded sales tax bonds in puerto rico and we seen the yields for those bonds jumped up quite significantly. certainly, i think that the market activity that we see now would be further exacerbated. >> this is helpful. the bottom line is even if you own a mutual fund, it's a collection of individual securities and you better know what is in your fund, right, candice? >> absolutely. we reiterate that due diligence is important. we seen there are a lot of single state muni funds from rodchester, single funds that have a significant exposure to puerto rico, suspects 20, 30% and suffered significant losses year to date because of that exposure. >> thank you very much. associate municipal credit analyst at morning star. >>> coming up, technology e education and business, what startups are doing to make learning more effective and more accessible. first, though, how commodities, treasuries and currencies performed today. >>> there under score, may be a deal in the works to make federal charges against the hedge fund and the billionaire funder g