with only seven days before the default deadline divisions are getting worse. congressman john larson of connecticut is the chairman of the democratic caucus and joins us now. congressman only yesterday jay carney at the white house praised senator reid s plan. he said senator reid s plan is a reasonable approach that should receive the support of both parties and we hope the house republicans will agree to this plan so america can avoid defaulting on our obligation for the first time in our history. the ball is in their court. the reid plan does not include taxes. you said a cut only deal is not tenable. what is your position now? are you in disagreement with the president on this? no, we re not in disagreement. of course, we wanted to see a balanced approach. but andrea, unfortunately we re seeing anything but balance. what we ve seen is republicans walk out on the vice president. republicans walk out on mccome and reid. republicans walk out on the gang
future? and mr. money joins us on the couch. good morning to you. good morning. it s interesting over the weekend, they were talking about how, ok, we re going to come together with a plan before the markets open in asia and the united states. no plan. what s happened? ok, no panic selling of stocks. that s the headline. no panic selling. the stock market will open lower this morning. instead, what you got is panic buying of gold! everybody rushes to safety when you got this chaos around the world and everybody is rushing into gold. you got another record high for the price this morning. $1,620 an ounce. now, the various plans that you just outlined there, brian, especially the harry reid plan is utterly meaningless to investors. haven t they told us that already? they have. it s meaningless, long term cuts not touching entitlements. undetailed cuts except we ll take a trillion out of the pentagon. to an investor, that means america is not going to get its financial house i
catastrophic. it s unthinkable. when you do that, what do you think you do to investors or worried about your own political future? and mr. money joins us on the couch. good morning to you. good morning. it s interesting over the weekend, they were talking about how, ok, we re going to come together with a plan before the markets open in asia and the united states. no plan. what s happened? ok, no panic selling of stocks. that s the headline. no panic selling. the stock market will open lower this morning. instead, what you got is panic buying of gold! everybody rushes to safety when you got this chaos around the world and everybody is rushing into gold. you got another record high for the price this morning. $1,620 an ounce. now, the various plans that you just outlined there, brian, especially the harry reid plan is utterly meaningless to investors. haven t they told us that already? they have. it s meaningless, long term cuts not touching entitlements. undetailed cuts ex
pentagon. to an investor, that means america is not going to get its financial house in order. that plan from senator reid opts the idea, the likelihood that we re going to be downgraded fairly soon. that s what s happened. here s the thing. yesterday, everyone was sort of panicked, i guess is the right word because they were saying, look, if we don t have some sort of a deal by tonight, the asian markets which, of course, open hours before the u.s. markets, they ll be affected. what happened? then along came harry reid with this new proposal, with apparently no tax increases but just long dated, vague cuts in spending. that placated investors to some degree. asian markets were down and as i said, the american market, the dow industrials will open maybe 100 points down in a couple of hours time. real quickly, the harry reid plan calls for less than $4 trillion in cuts as does john boehner s. s&p, moody s, unless you cut that much, $4 trillion, you ll probably get downgraded.
have been making record profits, if that s their only answer, then it s going to be pretty difficult for us to figure out where to go. because the fact of the matter is, that s what the american people are looking for. is some compromise. some willingness to put partisanship aside, some willingness to ignore talk radio or ignore activists in our respective bases and do right thing. and to their credit, nancy pelosi, harry reid, the democratic leadership, they did not like the plan we were proposing to boehner. but they were at least willing to engage in a conversation because they understood how important it is for us to actually solve this problem. and so far i have not seen the capacity of the house republicans in particular to make those tough decisions.