and there's a conflict there and the imf is exposing that in this report. >> absolutely. and perhaps anywhere more than the uk. you have schemes like funding for lending which basically are saying to companies -- saying to banks if you're involved in this, you don't have the hold capital. >> that's a countercyclical policy where as you remember, when the boom started, what we got was leveraging recognizing and regulators allowing that to happen and now we're trying to recover from a deep recession, we've had regulators trying to increase capital. this policy, which it's been announced, suggests a little opposite policy suggesting that perhaps banks can lend without having to raise more capital. the global stability report from the imf says that in order to get leverage ratios down to where regulators want them, banks are going to have to treat their balance sheets by anything up to three trilliwo trillion e. >> that is a huge sum. and reminds us a lot of what is happening not quick enough is deleveraging. but the problem with deleveraging is as you sell assets, you put dow

they definitely need to do something on the fiscal front. imf has pushed the notion that greece needs debt restructuring. they're talking about whether there should be a delay. the imf has put on on the table informally that there needs to be a debt restructuring. i think you're overreading what they're putting into the uk story. when they did their review, they said if the economy slows down, you might have to change policy. well, what else would you do? sit on your hands and wait? in general they have been pretty consistent in favor of the tight fiscal loose monetary policy strategy. >> do you expect, does rbc, expect another restructuring? >> greece will definitely have on to do restructuring. the question is do they get one as part of a deal or do they take one. >> worth pointing out george will be joining us later on set. meanwhile, the ecc president draghi has been vowing to back the eurozone. he's announced proposals be put ford to deal with bank risk in the first half of next year. >> protests are take being operati taking place in athen

he's also attending the imf/world bank meetings. geithner says u.s. politicians are trying to break a stalemate in congress before the end of the year to avoid the combined economic impact of tax increases and deep spending cuts. >> i don't think the strategy of deferring and delaying is really a responsible strategy. you know, it might feel like the easy path at the moment, but it will still leave a set of big questions hanging over the country. >> geithner and other economists say not addressing the situation will be detrimental to the economy and investor confidence. delegates of the imf/world bank conference are holding various side meetings. representatives of neighs that support myanmar's economy sat down to hash out a strategy. japanese officials plan to support loans to the country to promote its growing democracy and development. finance minister koriki fuj. jojima says the japanese government will forgive all the country's outstanding debts to japan totaling 500 billion yen or $6.4 billion. that takes effect in january next year. he adds gove

the imf sister organization, the world bank citing the same two factors, cut its growth forecast for asia this week as well. now, that's for the next couple of years. where are we going to be in 2016, four years from now, when

they like to say the imf is an enemy of surprise. in terms of the world bank, that's primarily an institution focused on development. poor country's efforts to pursue economic growth. one example, japan received world bank loans right after the war for reconstruction. we've had infrastructure projects like the shinkansen bullet train to propel this country into a period of high growth. >> all right, ron, now that we are up to speed, tell us what's happening there today. >> reporter: imf economists wasting little time today, yuko. they laid out their world economic outlook straightaway and the outlook not that bright. they've actually lowered their growth forecast slightly to 3 % 3.3%. >> the world economic recovery continues but it has weakened further. in advanced economies, growth is now too low to make a substantial dent in unemployment. >> reporter: now, blanchard said budget restructuring and a weak banking system are all pulling down growth in many advanced nations. he said eurozone countries were susceptible to strong shocks. h

a lot going on including the imf warning of a dip back into another global recession. we'll have a live report from london. plus, the obama campaign is getting a lot of mileage out of big bird. we'll show you their video from sesame street. first, let's get to the news live at 5:30 a.m. here at 30 rock. we begin with the race for the white house. new post debate polling shows the race tightening now with four weeks to go. a new pugh research center survey showing mitt romney leading president obama 49-45 in a national head-to-head matchup. that's among likely voters, people who are most committed to participating in the november 6 election. but gallup has a different result in the daily tracking report. according to the seven-day rolling average, the president leads mitt romney 50 to 45. that is among registered voters. good news for the romney campaign in the state of michigan meanwhile. president obama was leading by ten points last month. according to the detroit free press, after the debate, same poll has the president's lead down to three points. that is within the

international monetary fund has cut its global growth forecast for the year from 3.5% to 3.3%. >> the imf is warning policymakers that they only prolong the slump if they fail to fix their problems. >> the t-shirts and jackets made in this beijing factory are destined for shops in europe, but chinese textile companies are seeing a drop in orders from germany, france, and spain. the double digit growth in china and india appears to be over for now -- the double-digit growth in china and india. the international monetary fund has cut its growth forecast for the global economy to just 3.3% for the current year. it believes economic activity will pick up slightly in 2013, expanding to 3.6%. germany's economy is set to grow less than 1%, both this year and next, but that still better than the prognosis for europe as a whole, which the imf believes will shrink before growing and in 2013. the imf says the recovery will continue in the eurozone, but not fast enough to counteract growing unemployment. >> reaching a balance between cutting spending and promoting growth is one of the key challenges

the head of the imf told the gathering in tokyo that the your zone is being severely tested. christine lagarde said the road ahead will be long and will have its share of roadblocks. >> the global recovery is still too weak. job prospects for untold millions are still too scarce. and the gap between the rich and the poor is still too big. >> lagarde laid out three milestones in navigating this road ahead. she said financial leaders need to put the crisis behind them. they need to complete the reform of their sector. and they need to address inequality. world bank president jim yong kim says any policy limits the long-term prospects for growth, he wants his staff to work more closely with partner, and he wants the institution he runs to become what he calls a solutions bank. >> i've learned that the best solutions to economic and social problems often lie with the individuals and communities, coping with these challenges in their daily life. >> kim said he hoped his staff could, in his words, bend the arc of history to eliminate extreme poverty. european leaders have spent cou

i'm just wondering, the imf seems to be having a crisis of confidence. they've realized the fiscal multipliers in spain didn't work, but it seems they can't bring themselves to blame it's not on the failed policies, but on the fact that with the euro currency, you can't devalue something for spain. and you can't print money in the way that you can in the uk. they can't seem to say the problem is the euro. >> i think the imf is saying you shouldn't add to the recession the additional contraction that comes from the fact that you're trying to hit the target at the same time your economy is going down. and i think that's a sensible advice. the fiscal consolidation is not something you can achieve in one year or two years. it's a medium term plan. you need to gain the confidence of markets. i think we in europe have put together a new treatly that presents a commitment device. shouldn't rush to hit whatever nominal target next year. but i think it's sensible advice. >> we seem to be putting together a lot of agreements, but then when is an agreement not an ag

the imf released its semiannual report on the stability of the global financial system. it said the risks to stability are on the rise. nhk world's ron madison is covering the imf world bank meetings here in tokyo. >> european leaders find themselves in a sense of debt deja vu. they've wrestled together and separately to solve budget problems. once again, they find themselves listening to some advice. >> the choice today is between making the necessary, but tough, policy and political decisions or delaying them once more in the false hope that time is on our side. it is not. >> he and his colleagues handed in the imf's checkup on the world's financial health. they pointed to no one's surprise, to the malaise in europe. although significant new efforts by european policy makers have allayed investors' biggest fears, they wrote, the euro area crisis remains the principle source of concern. he said member nations need to do their part toward stability. he said weak banks need to restructure their finances. policy makers need to build stronger fire walls and need to establis

we'll take you to the imf world gathering a little later in the day. we'll have live updates. >>> now let's get a check on the markets to see how stocks are trading this tuesday. we cross over to ramin who is at the tokyo stock exchange. we had the improved u.s. jobs data on friday. with the imf meetings this week a lot of focus on global growth. how are stocks kicking off? >> playing a bit of catchup today. tokyo markets were closed on monday for a public holiday. we did have the u.s. jobs data for september coming out on friday dipping below that key 8% level for the first time in four years. that will be resonating in the financial markets. we'll see how that affects the markets here. we're going to be focusing on the imf and world bank meetings as they convene in tokyo. we'll have full coverage of that as you mention. let's have a look at the opening levels for this tuesday and both indexes trading in the negative there. 8,811 for the nikkei and 733 for the topix. concerns over slow growth in china as well as cent tensions between japan and china h

the imf urged japan to raise taxes and cut spending. he said government leaders need to take into account how that might affect the cost of social security and whether it might hinder economic growth. italy's central bank governor ignacio visco said european leaders face budget struggles of their own and they, too, worry about slower growth. now, the panelists said government and commercial banks have become closer in recent years. they said they need to prevent the risks faced by countries from spreading to the banking sector. christian from the central bank said a european banking union could break the link between governments and financial institutions and provide some protection. >>> well, indonesia's minister of finance navigated through the risks and she helped steer that country through the transition to democracy and now she's helping other countries implement their reforms as managing director of the world bank. some regions that are developing the fastest are actually seeing some of the worst cases of poverty, significant porti

they snapped up japanese bonds, causing the yen to spike to record levels. imf economists note japan and the united states are facing huge deficits and the countries need to implement fiscal reforms to maintain investor confidence. it also acknowledges a decision by eurozone countries to launch a permanent fund designed to bail out struggling members. they say worries about the health of the region's financial system have increased since the spring with the need to use capital to help troubled banks in spain. >>> greece is one of the struggling eurozone members counting on bailout funds to keep it functioning. international lenders are demanding the country's politicians implement deep spending cuts in return for that aid. angela merkel traveled to athens to urge greek leaders to push ahead with austerity measures. merkel met with greek prime minister samas and this is her first visit since the debt crisis began three years ago. she hopes the country will stay with the eurozone. she has been demanding tough deficit cutting measures. greece's politicians are wran

the imf says our fiscal cliff is adding to this economic mess. we'll sort through all the rubble. plus it is dirty, filthy gas to the rescue. california will pollute the environment to bring down crippling gas prices. no bicycles and car pools for them. we'll break it all down. >>> how far would you go to earn a buck? not even a host passing out on air can stop qvc from making a sale. we've got the video and the details. even when they say it's not, it is always about money melissa: first let's look at the today's market headlines a grim imf forecast for the global economy sent stocks sliding down 110 points. nasdaq was the day's biggest loser posting its largest loss since june 25th. earnings season starts off on a good foot. alcoa beat estimates on top and bottom line. shares are getting a nice pop after-hours. >>> government is filing a civil suit against wells fargo. they are accused of reckless behavior issuing federally backed loans. shares of wells fargo fell nearly 2%. >>> all right, our top story today, german chancellor angela merkel arrived in greece today and was met w

we heard from the leaders of the imf and world bank. one political leader we spoke to says the world lacks leaders right now. ian bremer wrote the book entitled "every nation for itself." he says countries leaders are turning inward and that's creating a power vacuum. we sat down with bremer to talk about leadership or a lack of it. >> nice meeting you. >> you say we live in a world without a leader. the g-0 world. we have the g-7 meeting taking place on thursday. are we going to see any concerted action, any results? >> when you start talking about g-7 governments, really they're overwhelmingly focused on domestic issues. s europeans are dealing with nothing but crisis in europe for the last three years. that's going to continue. that's occupying everything. the americans have an election coming up in four weeks. and there's much less interest in the united states in being the world's policemen or lender of last resort. japanese, you have prime minister every week. i mean, the level of consistency in governments here is just not feasibl

they released an economic outlook after opening up the imf world bank meetings in tokyo, and they cut their forecasts yet again. nhk world's ron madison followed the talks for us at the tokyo international forum. >> reporter: we have spoken with a number of influential economists, and the general sense we're getting here is one of uncertainty. finance ministers, central bank governors and their colleagues from 188 member nations have all read and many have even written about the trouble spots, trouble spots that we've all been hearing about so much lately -- greece, italy, and spain. but they also see question marks elsewhere in europe and in the united states too if politicians there fail to agree on policies that promote growth. let me read one line from the report. it says the recovery has suffered new setbacks and uncertainty weighs heavily on the outlook. >> ron, that looks like a weighty forecast. what jumped out at you from those pages? >>. >> reporter: actually quite a weighty book, as well, i'm guessing about 230 pages here. the folks at the international monetary fund releas

in its latest economic forecast, the imf says in advanced economies like the united states the growth is too slow to make a serious dent in unemployment. for emerging economies like china, the imf predicts growth will begin to slow down. >>> keeping up with the dollars and cents, stock markets will be running again today at full speed after a sluggish holiday. for that and the rest of the news before the bell, let's turn things over to courtney reagan. he's live at cnbc world headquarters. good morning, courtney. >> reporter: good morning to you, jon. futures are lower this morning as investors react to the imf cutting its forecast for global economic growth this year and next. stocks did fall monday on very light volume. there was no economic data to trade on due to the columbus day holiday. earnings system kicks off this afternoon when alcoa reports third quarter results. today is also the fifth anniversary of the dow hitting its all-time high of 14,164. the dow is just 580 points off that mark at this point. we slipped 26 points monday to 13,583. the nasdaq fell 23 to 3112. >>> fac

checking futures now as we got that news from the imf that growth may slow with 3.3%. ke it would open down 13 points, s&p 500 and the nasdaq would also be off. >> we're 28 days away from the presidential election. ken langone is home depot co-founder and chairman and president of invemed associates. he joins us now his view on a lot of different things. wow, nothing like getting -- ken, welcome. nothing like getting all the panties in a bunch by mentioning just the idea that some numbers might be skewed a little bit on the jobs, which jack did. ken, it's okay to say bush lied and people died, but if you just point out, you know, that the birth/death model, usually you need 200,000 or 250,000 jobs per month to make a dent in the unemployment number. >> right. >> we know it's come down over 10% to 7.8% and we know that on that day, we were supposed to get 140,000. it was disappointing from 114,000. now i'm not saying the bls, you can't say that because if you say that you're impugning the idea that any government number could be wrong at that point, but remember the cbo

. >>> well, the imf work in the asia pacific region, no trouble, managing trouble spots. led missions to thailand, indonesia and malaysia during the asian currency crisis. i met with him to talk about challenges we fast now and some of those in the future. i want to start talking asian countries, they have really been a bright spot for the global economy. but we are seeing, economies of europe and the u.s. starting to really stagnate. we are seeing a slowdown in china. and india. wondering how much can asia continue to support growth? >> as we see,isha^ kra asia re leader. we expect asia to grow 5.5% this year, rising to 6 poe% this yea above global growth. i would say, you will see demand pick up in asia and keep growing -- growth active and robust. >> speaking of domestic demand, how much will that be able to really shield asian countries, do you think from the global slowdown we are seeing. what do policy makers need to do to ensure that domestic demand continues? >> this is a very important issue. they're dealing with this, two ways to handle this. there is ram oom to

look, the imf is saying the obvious. the world bank is saying the obvious. if you continue to call for austerity you can't get growth. it's like, look, you want growth or want austerity. lyndon johnson, guns and butter equals inflation. if you just -- they are not doing guns or butter. if they are not doing margarine, they aren't doing machine guns. >> then you start again but they can't do that. >> we are devalued better than they are devalued. >> you would think we would be but the dollar is much stronger given anticipation of where rates are. >> true enough. stock specific stuff this morning is the netflix run over? shares of the online video service down in the market after b of a undergrades it to underperform from a bay. from the beginning of the month netflix has jumped 30%. b of a goes a couple times out of radio shack and netflix a double upgrade or downgrade skipping the neutral range. >> radio shack took that up with a $2 price target. >> reporte >> 2.50. >> someone must have gone and bought a couple 16-foot connectors. i think that, by the way, h

. >> ron madison will join us later in the day from the imf world bank meetings. we'll have live updates from the tokyo international forum at 1:00 p.m. and 8:00 p.m. japan time. that's midnight and 7:00 a.m. in new york, 5:00 a.m. and 12:00 p.m. in london. >>> now let's check on the markets. u.s. markets ended lower on concerns that slowing growth in china and the eurozone are hampering u.s. earnings. the dow jones average fell more than 150 points, or 0.95%, to 13,344. to see how that's affecting stocks here in japan, we go to the tokyo stock exchange. u.s. earnings reports dragging down stocks on wall street. are tokyo stocks following suit? >> yes, indeed, catherine. we are seeing that. i'll come to the opening levels in a second. the real fear that is upcoming earnings may reflect the reality that a lot of companies have to scale back production and also cost-cutting measures have to be taking place, as well as lowering their growth forecasts. so that's really playing into a lot of sentiment and we're seeing that reflects in the opening levels. let's have a lo

now the imf report suggests banks need a further boost to their balance sheets. and it said the japanese government should take tougher measures to deal with its budget problems. >> i did have a chance to speak with economists who wrote much of the report. we saw one man, and spoke abut threats to stability. he offered up solutions. >> okay, you spoke this morning about -- japan remaining a concern you. are saying, the sovereign debt could become fully a third of bank assets in five years. holding that many assets obviously puts the banks at risk, if bond prices plummet. how would you say is the best way out of this, the least disruptive to the economy? >> i think the best way when you have banks with a significant portion of government bonds is to keep the government bonds safe. that is something you do through medium term, fiscal consolidation. the most priority. >> okay. you are warning that while we are seeing gains from, assets like u.s. and japanese government bond, we shouldn't be lulled into a false sense of security. what do you see as the biggest danger

the imf chief also urged greece to take more concrete and urgent action to cut its spending. >> let's turn to the markets now and take a quick peek at some numbers. the dax ended the day almost 0.5% down. euro stoxx 50 closed 2% down. the dow jones currently going down 1%. the euro is trading at $1.2897. >> in germany after months of intense public debate, the government has unveiled new legislation aimed at regulating circumcision of young boys. >> it is to overturn a regional court ruling in may that circumcision amounted to grievously bodily harm -- it seems to overturn a regional court ruling -- it aims to overturn a regional court ruling. >> the current law will end months of legal uncertainty for parents, doctors, and religious officials who carry out the procedure. the justice ministry says it will safeguard religious rites while guaranteeing children's safety. >> i think with this bill, we are making it clear that jews and muslims will be able to continue their religious practices in germany. as long as they are compatible with certain regulations. >> the bill introduces new c

they downgraded their forecast for global growth in their latest report released at the opening of the imf and world bank meetings in tokyo. they say nations must take action to safeguard stability and restore confidence. juan madison reports. >> reporter: some of the world's leading economic minds gathered at the tokyo international forum. they opened their meetings with little fanfare and little optimism. >> the world economy recovery continues, but it has weakened further. in advanced economies, growth is now too little to make a substantial dent in unemployment. >> reporter: colleagues cut their forecasts for growth worldwide to 3.3% this year. the recovery has suffered new setbacks, they wrote. and uncertainty weighs heavily on the outlook. >> you can call it a general feeling of uncertainty about the future. worries about the ability of european policy makers that control the euro crisis. there are worries about the failure of u.s. policy makers to agree so far on a fiscal plan. >> reporter: he ran through a list of challenges in developed countries. government spending cuts, a weak

it's pretty tight, there are very difficult negotiations going on with the creditors, the eu and the imf. that's really, aside from the protests, the most important problem that needs to be solved right now." without another bailout, greece says it will run out of money by the end of next month. gas prices in california edge up another penny or more around the state. tuesday's average for a gallon of unleaded reached $4.67. that's a state record, and the highest in the nation. analysts blame the spike on refinery disruptions and corrison in critical pipelines. senator barbara boxer is asking the justice department to look into whether refinery maintenance issues are being used as an excuse to drive up the price. honda is seizing the opportunity by offering $3,000 fuel debit cars with the purchase of its 2012 honda civic. the car runs on natural gas. the trick is finding pumps that offer natural gas. a political feud between china and japan is weighing on automakers. a drop in demand from china has affected production at toyota, honda and mazda in japan. all three automakers reported dema

. >> meanwhile over in tokyo, the imf is not letting up on its grim outlook on its growth in asia. it's lowering to below 4%. but asia still has what it takes to power the world's economy and it money is on china avoiding a hard landing and on a japanese recovery helped by further easing. kadri has been there all week and joins us once again. how have these imf comments gone down? >> well, i think the manufacturing today theity that we have says no global economy has been immune to the dead crisis of the eurozone, but generally the people that i speak to recognize the slow down in asia and in china. but there was some criticism saying the situation is more critical than it was a couple months back. here's what the head of the esm hd to say. >> i think the imf in general has not given us enough credit for all the program we're making in europe, the emf stability report for example says risks in europe now are higher than six months ago. i think the imf is a bit behind the curve here and talking to investors in tokyo, which is the main reason i'm here which is to familiarize them with

>> the imf is playing catch up. everybody -- [talking over each other] >> that shouldn't be a surprise. we are bullish on stocks the next few months and strong headwinds in the way of declining policy and the fiscal side that we should see. in the next two to three months but we are trading in a narrow trading range. given the run we had, a pullback is what you expect looking at data. liz: is a boring question because we're not there yet. is like chinese water torture but facing a recession or going away, for all intents and purposes let's use a driving analogy. if the u.s. investor is driving a car, driving away from a recession or thwart its and investing accordingly would be to do what? >> great question. the drivers of recession have typically recessions led by crashes or declines and those are on the bottom for the last year or so and coming out. that is one of the reasons i don't expect a recession. those drivers in consumer goods have already crashed. we are seeing 1% to 2% gdp growth consistent with the numbe

the imf worried that the u.s. and japan could lose their safe haven status.t is not supposed to be a good season. you have guys dressed up in nazi uniforms and that is horrible. ge german chancellor said greece was going to stay in the european union. i recogard her statements as bullish. >> i think we have the tools in place. had we've seen these things in place a year ago, germany is going to get these things sorted. >> that is a great point. >> stephanie, you think there is something out there that ip v t investors missed that would be bull issish bullish. they continue to stimulate their economy. they announced the liquidity program and this comes weeks after the largest in history. it began in june. so, i think this coupled with the rrr cuts with the interest rate cuts that we have seen this year, i think you are going to see a stableation in china and the 7.8% growth in china, maybe it is actually pretty accurate. >> larry, following up on that. we had young brands and they had very strong numbers. so, there is another support point that china seems to

at the same time a new cut will kick in. >> that is a new report from the imf. 75 percent of the work force folks say they are looking for a new job or open to a new job. >> recruiter jobs like 75 percent of employed americans or regular americans are looking for jobs right now. a third of job seekers are feeling less optimistic about find ago job now than they did a year ago. 61 percent say finding a job got harder in the past year. we are all on the job hunt. >> if you want to save a little money wal-mart is doing the prepaid cards. a lot of folks are frustrated with all of the minimum balances that banks require. >> so far this new prepaid card has few fees. wal-mart and american express offering blue bird that offers shoppers a free paid card like you said no minimum balance no annual fees no activation fees. they want to attract this growing number of american households that turn to non-traditional baipging because they are fed up wi. >> you are spending your money at wal-mart and you have to kick in your money heyed of time. >> you have to load the card ahead of time. >> they a

it will take some pressure off the spanish government. we continue with imf and world bank meetings here in tokyo. for now the nikkei and the topix in the positive for this friday. back to you. >> always great to hear from you. >>> hello i'm ron madison. bankers and leaders from more than 180 countries gather here in tokyo now. we'll speak to some of the world's leading financial minds this week on newsline. people around the world are congratulating the nobel winner in literature. he got the news while eating a meal and was surprised. he adds his novels tell stories from the viewpoint of ordinary people. something that transcends nationality and race. he says as long as authors have an interest in theufferingf regur people their works with include hints of social criticism. people across china are congratulating mo. he's the first chinese the earn the chinese prize in literature. the reaction differs from past response. they criticize the nobel committee from honoring a chinese born novelist with french nationality and an imprisoned democracy activist. they

. >> experts frothe european commission, the european central bank, and the imf, the troik are still in athens, preparing the report. they will decide soon whether greece has made enough progress on fixing its economy to qualify for the next installment of the international rescue funding. one of the truck up's proposals would call for public-sector bondholders, -- the troika's proposals would call for public- sector bondholders to write off some of the face value of those bonds. in return for relief, greece uld have to carry out additional reforms. wolfgang schaeuble has rejected the idea of public-sector bondholders writing off any of their debt. he also says that a debt buyback proposal that has been floated by the troika might be possible. it greece would borrow money from the esm permanent bailout fund. they would buy back its own debt because greek bonds are cheap right now. greece could buy 15 billion euros worth of debt for just 10 billion. the truck that is due to issue its next report on the current state -- the troika is due to issue its next report on the current state of

also mentioned by the pboc governor during imf and the world bank meeting over the weekend. and i think the governor was emphasizing on the medium term inflation risk and the controlling inflation renewed the top priority for the pboc which from what i see suggests that the pboc or the chinese government will continue its cautious easing policy stance in the coming months. as we know that the lack of policy, big policy moves in august and september, probably suggests that the interest rate cut is constrained by a rebound in the property price and also the pboc is preferring to inject liquidity instead of the rrr cuts. so therefore, i think probably we're not expecting those kind of big bang monetary measures, but in the meantime we can see that the credit growth and corporate bond issuance have actually exceeded expectations which show support growth in the coming months. >> and stefan has joined us. looking at the figures, if this is further evidence that we've failed to see this kind of emerging strength of the chinese consumer which is really the rebalancing that everyone

are you a fan of the imf for the research or history of their calls? >> never.we wanted to weigh in on that, let's talk about something they said. they basically said if you don't figure this out, you're going to have to sell assets, the banking system, the financial system, to the tune of only $4.5 trillion. what are your thoughts on that? >> that would ultimately be a fire sale. we know they're not going to sell bonds because they're too difficult to value at this time. what is it they want to rid themselves of? and it's a dangerous time to do this because of where we're at in the economic cycle over in europe, which is why we're seeing private equity funds over the united states load up on cash and anticipation there's going to be great assets to be had. >> the great going out of business sale. let's dig down even a bit deeper. also mentioned in the story it's written about the context of $4.5 trillion. they talked about the burn factor. in the last five months, that number is close to 20% larger. i somewhat agree with that. there is a big deterioration going

goldman sacss, freddie mac, the imf, the american bankers association, u.s. department of justice just to name a few. for people who work at those places and who work in the k street area, you know what you're going to be dealing with. these are the same kinds of demonstrations you saw one year ago. it was exactly one year ago today that occupy d.c. protesters first started camping out in mcpherson square. remember, they lived there for almost four months before finally getting kicked out by u.s. park police in february. now expect to see them back for what they're calling a full week of resistance starting with all these protests on k street this morning. and occupy k street's twitter feed retweeted a picture last night from a user called occupy eye. here's the picture, the caption reading "the finishing touches are being put on the one-year anniversary. join us tomorrow 7:00 a.m. when it all kicks off. you can expect to see all the signs and posters. nobody out here just yet. no police just yet but of course d.c. police, u.s. park police well aware that the

the banks are warning, the imf is warning, the cbs is warning. i know in the personal business, i talk to businessman all over the country, they pull their hornin 2013, why not make that a year of growth rather than a year of stagnation? why not grow the economy versus trying to divide a stagnant economy up. he's not making sense. he shouldn't have promised a veto on this deal, never. neil: you're on on that wagon. thank you very much. good to see y you again. >> thank you. neil: insisting it's the president bringin us to the cliff, and in the end, it's not the rich getting hit, but the whole country will. explain. >> well, of course we're here in washington, d.c. again waitin until the lastsecond toddress the fiscal cliff a long time ming; right? no surprise there. going back to what the guest said, this all comes down to president oma's political eology of ting the rich and giving to people who he thinks benefit from that money but the fact isthat if the cuts are not extended to everyone, middle class families who president obama has been out o

>> these are studies, mandy, from the imf and the cb. >> the congressional budget office and the bis,ou know, these are all in unison, says, this isn't pimco's opinion, but their opinion, that basically says fiscal gap of 8, 9, 10%, actually an 11% average which is $1.5 tral year, these are their numbers, basically say unless we start to reduce these numbers that, yes, we can be downgraded, that yes, you know, ultimately, inflation and a lower dollar and ultimately, as i mentioned, you know, bonds being burned to a crips and stocks being singed all as a result, you know, basically of too much debt relative to gdp, inn ability or unwillingness to alleviate a condition. >> the road which the can can be kicked down, bill surks long, we are finding out. debt going up and the appetite for u.s. treasuries seems to be growing as well, a lot of that from our own fed to, of course. i ask you, when does come to roost? is there a breaking bad point, we can say november 12, 2022? a lack of funding date for the u.s. debt markets? >> not yes. they don't look at this as an armageddon for the united

the imf is clearly trying to send that message. political statement. >> absolutely. these political statements have been unheeded by authorities in europe and in the u.s. so far. >> thanks, christine. >> you're welcome. >>> two words you don't want to hear when talking about a rocket. engine failure. coming up, how that could affect the spacex capsule's mission to the international space station. watch this anytime, take us with you on your desktop or mobile phone. >> take your desktop with you, did i just say that? go to cnn.com/tv. up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. c'mon, michael! get in the game! [ male announcer ] don't have the hops for hoops with your buddies? lost your appetite for romance? and your mo

it has been told by the imf and the eu. you had this increasing disconnect between the streets and the government's with a growing anger between the two. that is pretty dangerous. it is translating into a massive loss of confidence in the government. >> european leaders are meeting to try to haggle over whether or not to centralize control of the banks. would that make any difference to the greece situation? >> they do not care about what is happening to the banks. banks are the focus of the rage very much. a lot people say the money is coming and to recapitalize the banks, but not to make life easier. this is a country singer record unemployment. -- this is a country seeing record unemployment. a third of this country has been pushed below the poverty line. that is what people care about and they are absolutely furious with the banks and with their own government. well we are seeing with this anger and loss of faith in the state is the greeks are being pushed to political extremes. neo-nazi party is capitalizing on that an

all three major indices lower following a weak economic growth forecast from the imf. the fund saying it's going to be worse than they expected but still seeing three plus percent growth there. the dow crossed the unchanged line 20 times in the first hour of trading. but slipped into the red for the rest of the session. technology and consumer discretionary today's worst performers, and as we said, energy the only sector to end in the green. palladium, this is the metal that helps catalytic converters convert. it was the sole gainer among the metals today to rise to $658.20 an ounce. a stronger dollar weighed on gold though as the precious metal ended in the red for the third straight session, falling more than $10. and u.s. small business sentiment weakened in september for the fourth time in five months. the national federation of independent businesses said its optimism index fell to 92.8 last month as fewer small business other thans expected to hire and to make capital investments. david: we have all of this covered with todd horowitz in the pits of the cme, david