moody's previously had as one notch higher than s&p, so now, with the movies in adjustment -- the moody's adjustment, what that means is we are still very much on a roll with the debt. a strong aa. we noticed in the electronic markets, as we're required to do with our material disclosure, and all of our bond documents, for our build america bond revenues. president vietor: commissioner moran. vice president moran: did they state a reason for the downgrade? >> this is on a current basis as well as a projected basis. what movies does is just take them all and line them up in a row, and based on our current level of water sailors and the cumulative fund balance reserves, that made us go into the third notch of aa. vice president moran: and was the size of the balancing accounts an issue there? >> they factor in all of the cash we have available. and also noticed a long term strength of the economics. we cannot fall out of sync. the willingness of the commission to adopt the rate increases that were needed and the cost management, the efficiencies. they did give us a lot of credit strength, w

senate a zach is -- nasdaq is up 8 and s&p is flat. the moody'sating agency announced its downgrade of eight great banks. it says the downgrade is due to the worsening economic climate in grace and the bank's exposure to government bonds. it comes as greece tries to meet the materials of its international bailout. greece appears to increasingly likely to default on its debts. the fears once again have shaken up international markets. >>> democrats in the senate say they will vote down a bill passed by the house to replenish disaster aid funds and prevent a government shutdown. early this morning the republican controlled house passed this bill. democrats object to cuts in clean energy programs. the senate will vote on the bill today but time is running out. the disaster aid account could run out of money early next week and without action, a government shutdown is possible a week from today. >>> the two top executives from fremont based solar company solyndra took a lot of heat on capitol hill this morning. we explain why it was a very short heari

s&p 500, moodies he is -- mood yes, sir -- moody's, they're all going to downgrade us at the end of thetlement systems are in grave danger right now. week of got to really talk about more than just our discretionary programs which are, you know, 1/3 of the budget right now. they've got to go bigger than anything that's expected of them and this will be a real, i think a real statement about whether this congress has america's back at the end of the day, are we going to make it worse or better for businesses in this country to invest in america? given the mess in europe right now, if we step up in novak and do the right thing and go big, solve our problems, put everything on the table including process reforms, i think that's a huge confidence message, you just heard mike talking about a moment ago, that gets businesses off the sideline, making the investments and really creating the jobs that this president's talking about. with that, the most experienced member of the blue dogs, is jim cooper. >> thank you. i appreciate the opportunity to be here. i'm jim cooper from tennessee's fifth

join standard and poor's in downgrading the united states sovereign debt -- fitch and moody's -- we have been told that. s&p told us in april. we were shocked. they said very bluntly that we're not kidding. "you are on watch with negative implications." ratingeing told by agencies that, "we're watching you." if you think it is just going back to ohio or taxes and getting reelected, you're wrong ohio or texas.-tex host: does that include the bush tax cuts? guest: that is a dispute that is going on right now. they are going to have their work score by the congressional budget office of of what is called the current law -- if they don't do anything, a sequester will be carried out by the office of management and budget. 50% from the defense. that will be done on the current law baseline. they can play a lot of games inside the committee. they cannot ignore the law. that is the safeguard that most americans can pretty much depend on. host: next call is from new york, gus. caller: i want to follow-up on a previous caller. how does the government functions when trust among each other is by primary decision- mak

the s & p500 also down. >> you have moodies downgrading three banks how big an impact is that. >> reporterstor confidence. bank of america with mort gauges and possible litigation from the countrywide acquisition a couple years ago. city group of and wells fargo in there also. so again just chipping away at investor confidence with the bank. it's the financials in europe and here that everyone is concerned about. perhaps some silver lining, gasoline prices and the grocery store bill will be lighter. >> thank you for joining us. we'll be back in three minutes and hopefully our cameras in florida will be working. using cameras to track down suspects. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. ♪ hush, little baby ♪ don't you cry ♪ soon the sun ♪ is going to shine ♪ [ male announcer ] toyota presents the prius family. ♪ walk if i want, talk if i want ♪ [ male announcer ] there's the original one... the bigger one... the smaller one... and the one that plugs in. they're all a

moody's. if that happens it's a safe bet stocks at home will suffer aftershocks. look for retail sales, inflation and manufacturing data to keep investors on edge this week. yahoo!'s bartz resigned from the company's board days after saying she would stay on in that role. it probably didn't help that after being fired as ceo, bartz told a magazine yahoo!'s board were, quote, dufuses. >>> cargill recalled 100,000 pounds of turkey after a portion tested positive for salmonella. >>> the price of gas is up to an average of $3.67 a gallon. >>> finally, precious pieces of aviation history fetched a high price at auction this weekend. photographs of amelia earhart and her flight goggles brought in more than $50,000. >>> coming up, one of the greatest games ever by an nfl rookie. husband, serene ya williams let's her temper get the better of her at the u.s. open. your "first look" at sports is straight ahead. e believe honor t exclusive to the military. and commitment is not limited to one's military oath. the same set of values that drive our nation's military are the ones we used to build usaa bank. from free checking to credit cards to loans, our commitment to the mili

to mark zandi the chief economist of moody's analytics will produce one nine one point nine million that's one of the lower numbers you know it was one of the guys at s. and p. said it is going to be two point four million so the republicans are saying wait a minute you created three million you couldn't believe two million you're going to get to below eight percent you get reelected we can't have that doug elmendorf the head of the c b o specifically said 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 not true again and why they are hers alex couple the. book again twelve is just making a recommendation that will be voted up or down by it's 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 that i as you say resolution recommendations and spell of ostrava. that's very different than any any but it's only just before it's awful that anything that than any piece of well that and legislature can let legislate or can you find my point is this at some point the la

s&p, of course, downgraded the u.s. financial securities the last time around in part because their analysts said politics was tarnishing our financial credibility in this country. i point out that moody'sur company did not. you're not one of the raters. you're the economist there. but do you see this new gridlock because now we have congress in yet another gridlock. the government is on a precipice again of having to be shut down because they can't agree on a financial plan. the worst part of all is that unless they reach some agreement this week it's my understanding that the aid to disaster victims from the recent weather disasters could find themselves cut off from disaster relief. do you think that increases the risk that we may see another downgrade? >> yeah, sure. absolutely. i mean, i think the political vitriol, the spectacle that occurred here in washington this spring and summer did tremendous damage. i mean, i think the economy at the beginning of the year had a lot of potential. we are creating a couple hundred thousand jobs per month. unemployment was coming down. then we went through this mess. it just eviscerated confidence. people were already nervous because of what we

s&ps&ps&p. i would assume for a couple of reasons. they don't want another downgrade. and number two, maybe they're sending a message to moody'seconomic plan. you know, do we just sum it up and say it's the chicago way? does the white house get#doy away with this? do people really -- if you're not involved do you concern yourself with the abuse of power? >> the context is very important. i have an entire2y z ;r this that go back to day one. the thing that's most obnoxious about#xñ?ñ this administration, the commander in chief waving around his brass knuckles, he always plays the victim when he's been the clothing from day one, and the media is so willing to whitewash is when they'jahr>[zwv this. the preston weekly the "san francisco chronicle," the "boston herald," all of these newspapers have in some way been punished or admonished for doing things that the obama administration didn't like and yet they'll a lot other way and say stories have been to rest, because it doesn't fit obamb÷u2 j í+3éç.! !0d(0™gt>vm1?d narrative that he's the white knight and the rest of us are the thugs. >> sean: let me get you an update on you on t

moody's analytics. what can you tell us about these numbers? >> well, the economy is stalling out. i think the debt ceiling spectacle in washington, the s&p downgrade really damaged what was already pretty vag ill confidence and businesses just froze. they haven't started increasing their lay-offs yet. that would be a recession. they stopped hiring. so we're right on the edge. we're very, very close to double dipping. >> mark, the obama administration often says -- points to private sector growth, the private sector is still hiring. but it only added 17,000 jobs offset by government jobs being cut. is that enough pry spratt sector growth that the obama administration can take a silver lining out of what certainly looks like a dark economic cloud? >> no. that certainly -- even that is incredibly disappointing. just one other technical note. verizon workers were on strike and that cost the economy 45,000 jobs. so you add that in, private sector job creation was probably closer to 50k. that's very disconcerting. we need to create somewhere between 10 and 150k per month just to maintain a stable rate of unemployment. something closer to 200

moody >> sharon moore >> krishna moorthy >> abner morales >> carlos manuel morales >> luis morales >> paula e. morales john moran >> john chrisopher moran >> kathleen moran >> lindsay stapleton morehouse >> george morell >> steven p. morello >> vincent s. morello >> yvette nicole moreno >> dorothy morgan >> and to my grandfather. your grandkids miss you very much. >> and my brother, if tears could build a stairway, we would walk right up to heaven and bring you home again. god bless all. keep your loved ones in your heart. amen. >> richard morgan >> nancy morgenstern >> sanae mori >> blanca robertina morocho >> leonel geronimo morocho >> dennis gerard moroney >> lynne irene morris >> seth allan morris >> stephen philip morris >> christopher martel morrison >> jorge luis morron garcia >> ferdinand v. morrone >> william david moskal >> marco motroni >> cynthia motus-wilson >> iouri a. mouchinski >> jude joseph moussa >> and my brother in law. we miss you and love you very much. >> and my father, we love you and miss you. i wish i could have known better. >> peter moutos >> damion o'neil mowatt >> christopher mozzillo >> stephen vincent mulderry >> richard muldowney jr >> michael d. mullan >> dennis michael mulligan >> peter james mullig

right now futures for the dow, nasdaq and s&p 500 are all trading lower ahead of the opening bell. >>> part of the reason moody'sng service just announced this morning it is downgrading two of the largest europe banks, tempering markets this morning. ant later tim geithner will speak on a panel in new york city and make a push for the president's american jobs act, expected to put pressure on congress to pass the jobs package. and wall street is watching the u.s. economy and any events happening in europe. and reportedly extending contract talks indefinitely. the detroit free press this morning said the uaw continues labor talks with gm and chrysler today. midnight is the deadline before the current contract runs out in those two countries. >>> the latest report from the kren is says the middle class is still struggling. median household income is down for a third year in a row. it's where it was in 1996 when you adjust for inflation. this is "american morning." be right back after this break. sun life financialrating should be famous.d bad, we're working on it. so you're seriously proposing we change our name t