about and how all the various players in this debate are reacting. we are keeping an eye on where traders are reacting to news of a deal. we need to get to jessica yellen our chief white house concerned correspondent the president came out a short time ago and said it appears a deal is in the works. not the perfect deal but one that will keep america from going into default. >> that's right, don. i have more information about how it came together. i came from a briefing with senior white house officials who say it happened between 8:10 and 8:20 when the vice president and the president, i should say and the vice president called the congressional leaders and individually affirmed with them that they do, in fact, have a deal. this all started, we are told, after the boehner bill was voted on on friday. and once that went through, once they had the vote in the house of representatives they say things started rolling. they began negotiations here. as we have been reporting, vice president biden was actively engaged, as was the president, in talking back and forth with the leaders throughout the past few days. the white house has a slightly different figure they are putting forward. they say it is a $2.1 trillion deal to raise the debt limit. many of the same numbers we have been reporting throughout the night, the sort of emphasis we are getting is the takeaway -- one, we will not have to go through this wrenching debate, which is so important to the president. one of his top line priorities and key to the economy. and also, that american people have learned a great deal about the importance of deficit reduction, and the importance of taking the balance considerations into account. we pressed the white house officials whether they were given assurances by congressional leaders that they definitely have the votes to pass this measure. they did say we need to ask members of congress. they would assume they wouldn't support this if they didn't have the votes. that's not a yes don. >> jessica, wolf is standing by in washington. >> did you get an understanding from the white house officials on what a balanced budget amendment to the constitution, what role it plays in this agreement as far as a vote is concerned at some point? >> i asked that question, wolf. i was told it's part of this second phase of these talks. so there is the first phase of spending cuts and you go to the second phase. that would happen as a vote. but the spending cuts and allowance of the debt ceiling increase would not be tied to the outcome of the vote. so it would happen. it would be allowed to happen. but the outcome of the debt ceiling itself is not tied to the result of the vote. that's my understanding from here. >> it's a little bit complicated. it's an important point especially for a lot of republicans. jessica, thank you very much. don't go too far away. i want viewers in the united states and around the world to hear precisely what president obama said earlier in the evening. >> there are still some very important votes to be taken by members of congress, but i want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default, a default that would have had a devastating effect on our economy. the first part of this agreement will cut about $1 trillion in spending over the next ten years, cuts that both parties had agreed to early on in this process. the result would be the lowest level of annual domestic spending since dwight eisenhower was president, but at a level that still allows us to make job creating investments in things like education and research. we also made sure these cuts wouldn't happen so abruptly that they would be a drag on a fragile economy. i said from the beginning that the ultimate solution to the deficit problem must be balanced. despite what some republicans have argued, i believe we have to ask the wealthiest americans and biggest corporations to give up tax breaks and special deductions. despite what some in my own party argued, i believe we need to make adjustments to programs like medicare to ensure they are around for future generations. that's why the second part of the agreement is so important. it establishes a bipartisan committee of congress to report back by november with a proposal to further reduce the deficit which will then be put before the entire congress for an up or down vote. in this stage, everything will be on the table. to hold us all accountable for making these reforms, tough cuts that both parties find objectionable would go into effect if we don't act. over the next few months, i will continue to make a detailed case to the lawmakers about why i believe a balanced approach is necessary to finish the job. now, is this the deal i would have preferred? no. i believe that we could have made the tough choices required on entitlement reform and tax reform right now, rather than through a special congressional committee process. but this compromise does make a serious down payment on the deficit reduction we need and gives each party a strong incentive to get a balanced plan done before the end of the year. most importantly, it will allow us to avoid default and end the crisis that washington imposed on the rest of america. it ensures also that we will not face the same kind of crisis again in six or eight months or 12 months. it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy. now, this process has been messy. it's taken far too long. i have been concerned about the impact that it has had on business confidence and consumer confidence and the economy as a whole over the last month. nevertheless, ultimately the leaders of both parties found their way toward compromise. i want to thank them for that. most of all i want to thank the american people. it was your voices, your letters, e-mails, tweets, phone calls that compelled washington to act in the final days. the american people's voice is a powerful thing. we are not done yet. i want to urge members of both parties to do the right thing and support the deal with votes over the next few days. it will allow us to avoid default, pay our bills, start reducing the deficit in a responsible way and turn to the important business of doing everything we can to create jobs, boost wages and grow this economy faster than it's currently growing. that's what the american people sent us here to do. that's what we should be devoting all of our time to accomplishing in the months ahead. thank you very much, everybody. >> that was the president speaking out from the white house not long ago, wolf. the big question now is who's going to vote for this deal? >> that's not a done deal until the senate votes, the house votes and they pass the legislation. let's bring in one republican congressman michael grim joining us, republican of new york. are you going to vote in favor of the agreement, congressman? >> yes, i am. >> tell us why you like it. we heard tea party activists and i know you are sympathetic to the tea party movement. they are concerned. a lot of them are suggesting this is something they can't live with. >> i think part of it is the frustration that the new class in the tea party movement wants bold changes to washington immediately. the reality is washington is systemically broken. much more than i imagined until you see it. to have bold changes takes time. i understand their frustration. it's not perfect. i would have liked to have more cuts. this is definitely a step in the right direction. we offer the first time in america's history we are going to cut spending more than we raise the debt ceiling. that's never been done before. that's a historic change. we have to realize that. is it all we wanted? no. it's not perfect. but it is a good step forward. >> do you believe that the speaker -- and don lemon will have a question as well, congressman. do you believe the speaker will have a majority of the republican caucus on board when the roll call comes forward as early as tomorrow on the house floor? >> yes, i do. i base it on the fact that we just passed boehner's bill. this is very similar. i think my conference will be there to support the speaker and the plan and move past the debt ceiling crisis. i want to make a point here. nobody should be celebrating tonight. our country still has an unbearable debt crisis. just because we have started to put the right foot forward we still have a debt crisis we have to deal with. we still have to worry that the rating agencies will downgrade our aaa rating. let's hope the plan coming forward is enough to discourage the s&p or moody's from downgrading our aaa rating. >> representative, you were against raising the debt ceiling originally. what changed your mind about that in the final hours? >> from the beginning i said the same thing. i would not rate the debt ceiling unless there were cuts and reforms. the plan has cuts and the caps, and bring up the balanced budget amendment which i think is extremely important to this debate. the american people have earned the right. the simple truth is they should vote on whether we have a balanced budget amendment. the only way for them to vote is for us to send it to the states. that means the house and senate has to pass it so the states can ratify it. this brings that debate to the forefront and allows the american people to let their voices be heard more. i have been listening but i fear my colleagues, especially on the other side of the aisle have not been listening to the american people. they deserve that. >> representative, thank you. >> thank you for joining us. let's bring back gloria borjer to assess the big picture. it's not a done deal but assume the president gets his way. the senate and house pass it. the political fallout as we enter a heavy duty political season, as you know. >> richard quest and i were talking about it. i think we'll be back here at thanksgiving. get your ticket. >> that's when the supercommittee is supposed to have a recommendation. >> it's interesting. if you look at the big picture on all of this, what congress is saying is we don't trust ourselves to do the job you hired us to do which is to balance -- to keep our books in order. so as a result, because we have been unable to do that over the past decade or so we are telling you we are going to put ourselves in a straight jacket and threaten ourselves with cuts we do not want to make. they will be hanging over our heads. cuts in pentagon spending, entitlement programs which we know we will never make. only that can force us to actually do our job. so when you have this committee, this committee cannot have a stalemate. let's see if it does or doesn't. if it does have a stalemate then congress has to pass these cuts. so they are essentially saying, okay, we are forcing ourselves to work. >> it will be interesting when we see the makeup of the supercommittee. there will be an equal number of democrats and republicans. but the question -- say they put moderate democrats and moderate republicans. they could come up with a deal. what if they put much more radical republicans, much more radical democrats on that committee. they will never be able to come up with a deal. >> and then you're in your straitjacket. as the president said, tough cuts both parties find objectionable. we used to have an old saying, that's no way to run a railroad. they have boxed themselves in with one route out. if they don't take it, there will be nasty cuts for everybody. that's what's on the table. what the markets are going to be looking for over the next six months is exactly how the supercommittee is doing its work. and the first whiff of trouble then you're going to be back to square one. >> it's interesting. you did have a supercommittee. you had the erskine bowles commission. senators and house members will say, they not elected officials. they behave differently, but not necessarily better. you have a committee. there was no unanimous agreement and, in fact, there were republicans who did agree to the plan but paul ryan, for example, did not. >> interesting. >> what makes you think it would be better? >> they deny it, but some are second guessing the president's decision not to embrace that bowles simpson commission. we probably wouldn't be having this debate. we have more to discuss. don't go far away. don lemon is looking at this as well. don, a fascinating, important and dare i say historic night in washington, d.c. >> oh, absolutely. just listening to the words and phrasing there. straitjackets, boxing ourselves into a corner here, that's tough talk. i want donna and alex to weigh in on this. donna is getting information from her sources. think about the question and we'll talk about it on the other side of the break. would deliver our next generation mobile broadband experience to 55 million more americans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... for greater access to all the things you want, whenever you want them. it's the at&t network... and what's possible in here is almost impossible to say. it's the cleanest, clearest water. we find the best, sweetest crab for red lobster we can find. yeah! 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[ male announcer ] if it's true that sharks can sense even a drop of blood from a quarter of a mile away, which razor would you use? ♪ ♪ ♪ all right. we've got breaking news. we finally received a statement from the democratic leader in the house of representatives, the minority leader nancy pelosi. let's bring our congressional correspondent. kate, read the statement to us. >> i will, wolf. it's interesting. she uses artful wording. i will read it so you have the full statement. nancy pelosi says, we all agree our nation cannot default on our obligations and we must honor our nation's commitments to seniors and men and women in the military. she says the following. i look forward to reviewing the legislation with my caucus to see what level of support we can provide. very telling statement, wolf. clearly the top democrat in the house of representatives is not signing on to this deal, is not getting behind it quite yet. reiterating what we heard from her in the hallways. she needs to review the legislation and talk with her caucus before making any further moves. >> so a little wishy-washy, that statement. she didn't say like the democratic leader in the senate, harry reid said, or the republican leader in the senate mitch mcconnell or speaker of the house john boehner said they are going to support this deal that the president has announced tonight. she's saying, you know, i'm going to review it with my caucus and we'll make a decision. that's not exactly a ringing endorsement. and the democrats are going to have to be on board, as you know in order to get 216 votes in the house of representatives tomorrow. there will be plenty of republicans, tea party supporters and others who don't like the deal. it will have to be bipartisan. nancy pelosi will have to bring democrats on board. i suspect. i don't know if she will sloet in favor of it. maybe she doesn't know if she'll vote in favor of it at this point. but you want to add another point, kate? >> no. that would be very interesting. something that's not unheard of. we have seen it in the past. we know steny hoyer, the number two democrat in the house is often integral in pulling together the caucus, pulling together support around very controversial votes. you said it, wolf. there is no question that this bill, to make it through the house, this compromise will need republican support and democratic support to get through. the question tomorrow will be just how many republicans john boehner can bring along and how many democrats the other side can bring along. >> i suspect they will get the 216 they need. kate, thank you very much. don, kate makes an excellent point. the number two democrat in the house of representatives, steny hoyer almost always does what the president wants. nancy pelosi, not so much when it came to extending the operation in afghanistan it was steny hoyer who led the fight for the white house and the democrats in the house of representatives. pelosi wasn't that enthusiastic about keeping the war going in afghanistan. that's one example. we might see something similar happen this time around. i will be anxious. i know you will talk to donna brazile for her take on what's going on in the house. >> nancy pelosi does her own thing. if she wants something she'll stick to her guns about it. she sides with the president when she sees fit. but she's her own person. as kate was reading the statement, you took the words out of my mouth. this isn't a ringing endorsement from pelosi. i want to bring in cnn contributors, donna brazile and alex castelanos. i understand you got information from your democratic sources. do you have more information? >> the minority leader leads by consensus. she enjoys listening to her caucus. i have just received a copy of some of the broad outlines of the proposal. i believe tomorrow when she has an opportunity to really get into the details she will be able to explain the framework of this. look, we knew from day one that the democrats could not swallow cuts, cuts, cuts. it appears that the cuts in the discretionary part of this so-called framework will come from what we call the safety net. the social safety net as well as defense. that should at least on the issue of fairness, that should give some democrats reason to take another look at this deal. there is also an exemptions of medicaid and programs for low income americans. after all, we are still coming out of the recession. for many americans they are still in the recession. in fact, some americans are in a big depression. i think they are going to look at the social safety net and the trigger mechanisms that will produce another round of cuts. what democrats are looking for is they want to avoid default, a balanced approach and shared sacrifice. if the speaker -- i keep calling her the speaker. she'll always be my speaker. if ms. pelosi is able to at least explain this framework so democrats understand what's at stake, remember, this is a republican framework. the president, i believe, has been able to carve out good items in this framework including preserving pell grants for needy students there. is good stuff in this. i hope we don't throw it overboard simply because the tea party inspired it, the republicans pushed it. but there may be good items in here for democrats to take a look at as well. >> i want to let alex get in a response here. also, ali is standing by. appropriate for him to weigh in because he knows the economics here. we'll listen to alex first. do you hear what donna is saying here? do you agree with what some people on the panel said? gloria borger said it was a straitjacket. we are backing ourselves into a corner. do you agree with that? >> yes, i think it's that old national lampoon cover. buy this magazine or we'll shoot this dog. we basically put us in a position to force ourselves to do something about a growing problem. the deficit. it's so funny. you see movies about people switching bodies and john boehner has just become nancy pelosi and vice versa. the statement could have been put out by boehner a week ago. republicans may have the tax pledge but democrats have theirs, too. it's tough for democrats to cut spending. that's what they believe. we may not agree with it, but you have to expect those are their principles. for them to cut spending at all will be very tough. >> so listen, you hear donna talk about social programs, entitlements and the jury is out on whether or not this particular deal will create jobs. don't answer that question, ali. we'll be back after the break. we will get your response. let's bring in ali, alex and donna brazile back into the conversation. the jury is out on whether this deal on the table now creates jobs. you're not sure and economists aren't either. >> no. it's 10:27 on the east coast. i'm concerned. alex knows i'm a fan but if we don't check this fact by 5:00 a.m. when i come back it will be a gop talking point. we have all known if we didn't increase the debt ceiling it could have increased interest rates. that takes money you are going to spend on things and puts them to interest. that could have been something to kill jobs. but to suggest, as alex did, that this was about creating jobs is like me saying i saved a life because i didn't kill somebody tonight. that doesn't make sense. i need to connect this to how you think this creates a single job. what one employer was waiting for this to happen to hire somebody and why? >> good questions. >> alex, go ahead. >> we are all for paying our bills. we are for raising the debt ceiling. we spent the money to pay our bills. that's not the question. having to raise the debt ceiling is constantly a symptom of a problem we are spending more than we take in. my contention is that does affect job growth and raising taxes is not the way to do it. you asked for evidence. happy to have some. michael boskin noted in the wall street journal and other places that micro economics has improved since the days of keynes and the newer models take longer time horizontals. they looked at obama stimulus in 2009, gave it a multiplier of nearly nothing. christina romer, other new keynesians look at tax cuts and find multipliers of three to five. leaving people's money is a more efficient way of growing the economy than taking the money to washington and giving it back to them. >> we have to wrap it up really soon. we have to get to other folks here. >> there is no evidence. >> without getting too in the weeds about the economic talks and wall street talk and what have you, the jury's still out. no one knows what this deal will do. the one that is on the table. i think is it is fair to say, we are in uncharted territory. >> i think you are right. we don't entirely know. we do know that the boat wasn't sinking. we have now plugged the hole. we shot in the bottom of the boat. i totally accept that this is necessary. i have been saying it's been necessary. i don't understand how anybody can argue that this creates a single job. i don't understand this deal other than that the debt ceiling needed to be increased. >> you're taking my time, alex. >> if you can do it in five to ten seconds, donna, go ahead. >> there is no evidence that trickle down economics work. what we need is investment in job growth and job creation. these cuts will have serious effect on state and local governments when they make more severe cuts at that level. more people will be laid off. more needs for government services. we need a balanced approach, revenues on the table as well as spending cuts. >> to be fair, alex, go ahead. >> without fiscal discipline, without being a country that doesn't spend more than it takes in we won't have the stability and respect of the world to create jobs. >> the debt ceiling is the symptom of a bigger problem. >> alex, donna and also ali. wolf blitzer, you have to talk to these folks every day on "the situation room." how do you keep them wrangled in when they are this passionate? >> i love the passion. i know you do, too, don. we have a passionate member of the house of representatives. barbara lee of california is here. we'll talk to her in a moment on the other side. she's got very strong views on what's happening now. my conversation with congresswoman barbara lee when congresswoman barbara lee when we come back. it moves effortlessly, breathes easily. it flows with clean water. it makes its skyline greener and its population healthier. all to become the kind of city people want to live and work in. somewhere in america, we've already answered some of the nation's toughest questions. and the over sixty thousand people of siemens are ready to do it again. siemens. answers. welcome back, everyone, to our continuing coverage here. the clock is still ticking toward default. if the u.s. doesn't raise its debt ceiling but the details appear to be falling into place to finally get it done. you see the clock there. we have heard from the president, leaders in congress. they say they have struck a deal to raise the nation's debt limit and cut the nation's spending. >> there are still some very important votes to be taken by members of congress but i want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default. a default that would have had a devastating effect on our economy. the first part of this agreement will cut about $1 trillion in spending over the next ten years, cuts that both parties had agreed to early on in this process. the result would be the lowest level of annual domestic spending since dwight eisenhower was president. but at a level that still allows us to make job creating investments and things like education and research. we also made sure that these cuts wouldn't happen so abruptly that they'd be a drag on a fragile economy. both the senate and house have to approve the plan. it would initially raise the plan by more than $900 billion which would get us to about february. raising it again after that is a multi step process of a joint committee that will be created to create more debt reduction measures. the plan calls for more than $2.4 trillion in deficit reduction. wolf, we just heard from the minority leader. she's not quite signed on yet. also the congressional black caucus as well. >> some liberal democrats see the deal as nothing less than a betrayal by the white house. democrat barbara lee joins us with thoughts on what's going on. thanks for joining us. >> very happy to be with you this evening, wolf. >> are you with the president on this deal? >> well, first of all, i have to say that too often we are asked to vote on legislation where we haven't even had an opportunity to read it. so i definitely want to read exactly what is in this deal. secondly, i listened to speaker boehner and his comments. this appears to be a deal which he introduced and i voted against. thirdly, i'm not sure how medicare, medicaid and social security would not be up for grabs. i have to see that and be assured of that. fourthly, i don't know where the cuts will take place. who will get hurt? obviously if you are talking about discretionary spending it's the poor, low income individuals, working poor and middle income people. i would suggest if the facts are accurate we will see more people falling into poverty and we'll see this create more job loss. we should see a bill to help us keep from going off the brink in terms of economic disaster looming. we have to have a bill. however, i want to remind you the debt ceiling has been raised many times under democratic and republican presidents. we should have raised the debt ceiling. i think it was a fundamental mistake to engage in negotiations around lifting the debt ceiling. we have to create jobs. >> with only a day left you can look back and say the president should have done this, invoked the 14th amendment to the constitution, should have done a lot of things. at this point, if you don't raise the debt ceiling by tuesday, you know what's going to happen to constituents all over the country. interest rates will go up. there will be a strain on the economy. america's aaa credit rating could go down. that will put pressure on you to vote in favor of this though it's by no means perfect. >> we have been working day and night to make sure we don't have the catastrophe we realize could happen. what i'm saying to you, wolf, is we have to look at this and make sure the republicans -- this is their deal, first of all. secondly, we have to make sure within the deal and we haven't had a chance to read this. that medicare, medicaid, social security and the most vulnerable are protected. we can't say any deal is a good deal if we have millions of people out of work the next day. suffering. of this is a deal that we need to look at, understand and know exactly what's taken place. from what i hear and what i have read and learned, it is a deal that's very similar to the one speaker boehner presented. he has to make sure republicans vote for his deal. senator mcconnell and speaker boehner worked it out. they have the numbers, the votes. and i would suggest if medicare is touched and medicaid is touched and if social security and discretionary spending is so deep that's what they want. that's what they asked for and got. >> in this first round before the so-called super congressional committee comes up with its recommendations in the first round there is no impact on social security, medicare, medicaid. that's all left for the committee to decide down the road how there will be what's called entitlement reform, tax reform. that's all punted, if you will, to the committee down the road. that's going to be -- >> this opens. >> there is no impact on social security, medicare or medicaid, at least in the first round. >> first round, this opens the door to the second round. i have to tell you i'm on the appropriations committee and i know exactly how these cuts are being made and what those negotiations are. so i worry about the triggers. if there is no revenue, if there is no tax increases. millionaires and billionaires and oil companies and all of those who have been benefitting from this economy, if those tax cuts and measures, revenue-enhancement measures aren't on the table what would happen? more discretionary cuts across the board. more senior citizens, more people who are poor, more low income people will get hurt. i cannot accept that. this does open the door for that type of cut to take place and that's unacceptable. we have to read this, know what if at stake. people need to understand that there is a possible that this leads to a cut in medicare and medicaid. we have to be careful how we approach this. speaker boehner and senator mcconnell have the votes. they can pass this. we need to get back to looking at the how we start creating jobs. this deal is definitely going to end up with a net job loss. people will lose their jobs and it will be a dire situation for millions of americans. we appreciate you joining us. thank you very much. >> wolf -- >> i was just going to say we heard a little skepticism there from barbara lee. a lot of skepticism. she wants to read the legislation. nancy pelosi wants to read it, too. there will be a lot of republicans who will vote no for very different reasons. >> i wonder as i listen to her do we actually have a deal here? and you were talking about how important it is to her constituents and the american people. so far on cnn politics.com which you and i both contribute to. one million page views which is remarkable just tonight, on a sunday night. that shows you how much people are interested in this, wolf. they know it's going to affect them. has the tea party gained respect. or lost it during the debt showdown. we will ask contributors in two minutes. we find the best, sweetest crab for red lobster we can find. yeah! 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[ male announcer ] we are insurance. ♪ we are farmers ♪ bum, ba-da-bum, bum, bum, bum ♪ it's been messy to be sure. it's taken way too long but ultimately the leaders of both parties found a way to compromise with the president of the united states. those were the words we heard from president obama earlier in the evening at the white house. >> exactly right. he said it's been a messy process, wolf. he hailed a nearly 11th hour agreement by congressional leaders to raise the federal debt limit here. but he warned there is a lot more work to do. you have been hearing it as well. i want to bring in cnn contributor errol louis. and also joining us and the editor of redstate.com mr. eric erickson joining me in atlanta. to you, eric. before the break i asked if this really where the tea party gained respect in washington? do you think because of the process many democrats feel they got nothing. republicans got what they wanted and the tea party had a big influence to push people further into their corners where they won't negotiate with each other? >> it's interesting you say there is a feeling that the tea party got most of what they wanted. people on the right disagree with you. it's a talking point. >> why would they disagree? >> when you look at this i think that's the myth of the democrats and republicans are pushing. for example, the way it's structured. the bush tax cuts are planned to go out of phase they could decouple the middle class tax cuts and fix the alternative minimum tax which they do every year to free them up for tax increases and be revenue neutral. interesting to see how they do bush tax cuts, with the language. a lot of tea party people want to see that. as for respect, it's funny. the same conversations we are having now. the same polling, the same arguments we are seeing are exactly what the arguments were in 2010 before the democrats were out of power. >> exactly what the arguments have been for decades now. we look at the last 40 years over raising the debt ceiling and some players you can see doing the same thing. this is the question on most americans' minds. why did you attach the debt ceiling to the deficit talks because some people say you manufactured this entire crisis by doing so. >> i don't think it was the tea party who were manufacturing the crisis. a lot of tea party people have been saying it's a false deadline. in fact if republicans got to august 3 and the world didn't end they would push for more. that probably won't happen now. but you are raising the debt ceiling and dealing with the deficit. it's pretty much the same argument. no one in washington, democrat or republican wants to deal with the issue. >> i want to go to errol louis. my question is similar. eric says republicans didn't get everything they want. that's what democrats are saying. and there was compromise here. do you buy into it? >> that's true. they didn't get what they wanted. they wanted a fairly radical agenda which couldn't be enacted. so it wasn't going to happen any way you look at it. the reality, of course, is that while a small minority can help set the agenda and that's no small achievement in our system, you can set the agenda, push things pretty far. we have seen it happen over the last couple of weeks but you don't necessarily win if you don't control a majority of the congress, you don't get to dictate your will to the american people. what we have seen here and the polls underscore this is a lot of swing voters, people who wanted to give the tea party a chance, independent voters appear turned off. their numbers have been dwindling since they took power. i'm pretty sure that trend will continue. >> eric, you think that the tea party caucus in the house of representatives, most of those who believe in the tea party will vote with the speaker in favor of the legislation or will vote against it? >> the democrats don't bring enough votes then, yes, they will. some of them will not. they can say they stood up to it. no one remembers the continuing resolution which was the fight at the time and in six months no one will be talking about this. >> what do you think errol? >> the leadership had a hard time coraling members. i don't think they would put themselves out publically in a national forum if they really didn't think they had the votes. i wouldn't be surprised. on the other hand, they may have moved the battle to the new commission. look, this is not new. you remember wolf blitzer, the rudiman holings fight in the '80s. then there was deficit legislation in the 1990s. it goes on all the time. they are creating a new commission, trying to move the fight there. the fight will continue. there are those who say spending should never go above a certain level. it's usually a percentage of gdp or something. then on the other side you will have keynesians saying we need to repair what's wrong, do something about unemployment in this country. and the fight will continue. >> thank you very much. good discussion. don, you know what? i think around the end of november, thanksgiving, we'll do this again. >> i think we'll do it after that because this conversation continues to come up. as i said, 40 years we looked back on the exact same talking points when it comes to this issue. financial markets around the world are reacting to the news that a deal was reached in the debt limit crisis, wolf. after the break. ♪ and when you dance with me ♪ you always make me smile [ male announcer ] we believe you're at your best when you can relax and be yourself. and at thousands of newly refreshed holiday inn hotels, you always can. holiday inn. stay you. and now stay rewarded with vacation pay. stay two weekend nights and get a $75 prepaid card. all right. let's move the story ahead, don, as we go forward. what happens next? gloria, where do we go from here? >> to the house of representatives. the senate will probably vote and then all eyes will be on the house to see how they will cobble this together. i'm sure the speaker is going to lose a lot of his republicans. but the democrats are going to have to pull it out for the president. >> a done deal as far as you can tell? >> the markets take a sigh of relief. it won't last. the first whiff of trouble, we are back to square one. >> i love richard quest, he tells us what he thinks. let's bring in ali. what a do you think? >> colorful language there, always. >> the markets are up so much. richard is right. there is not a lot of leeway for this. my friends at cnn money are saying it's the cbo scoring of the deal. when it comes out it feels like less of a done deal because you you will see opposition. from the left and right. a lot of the cuts that come to entitlement programs come later in the episode and by then hopefully we'll have seen economic growth. i think you will see a muted deposit of economic response when markets in the united states open up in the morning. >> i want to ask gloria, ali brings up a pertinent point. you hear representative lee, and you hear that napsy pelosi hasn't signed on. is it a done deal? do they have enough to get this passed even with the opposition? >> nothing's done until it's done. i think we have to wait for the house. i think what nancy pelosi will do tomorrow in caucus is figure out how many votes she has. she may say to john boehner this is how many votes i can deliver. how many votes can you deliver? then they would try to work it out from there to see if they needed more votes where will they get them? i presume nancy pelosi wants to get it done. >> we are expecting the markets tomorrow to respond positively. we don't know for sure. that's not for sure, but do we know? >> yeah. it generally follows the pattern. asian markets are followed by european markets. comes into play i don't think there is a story close to this big. for the moment we are seeing asian markets firmed up. japan is up under 2%. we'll track it overnight, see how it follows into europe. there will be a lot of analysis tonight to see what the support level is for this and what the cost is from the congressional budget office. we'll have a clear view before the sun rises in the east. probably going to be positive. >> richard, i want to make this point. the markets would go down if the house of representatives defeats this which i don't expect will happen. it would also go down if the credit rating agencies say, you know, we are not that happy with the deal. and america's aaa rating will go down. >> i'm not saying this is greece. i am saying every time there was an agreement with greece the markets rallied only to unwind a few weeks later. >> the united states, i can assure you, is not greece. >> all the doom! >> and as the president of the another bite of the apple on the deficit commission. we are going to protect you. >> what a story, don. we have been covering it for a while. the president came out, announced an agreement was reached. until the senate and house formalize it, we'll know tomorrow presumably. it's not a done deal yet. it's been a pleasure working with you. >> you as well. >> i'm wolf blitzer. good night from washington. >> it's not done, wolf, until it's done. we'll see what happens tomorrow. we'll watch ali tomorrow at 5:00 a.m. on cnn. of course you in "the situation room" as well. i enjoyed working with you. the whole cast of characters. you guys are always welcome. i'm don lemon in atlanta. see you next weekend. see you next weekend. good night. -- captions by vitac -- www.vitac.com robot 1:good morning... robot 1:...female child. sfx: modem dial-up noise woman: flaws? 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