aftershock, which is now out in paperback. ali, what happened today? a lot of things happened here. we had a situation where it s not just fear we ve been talking about. this was actual fact. we had we started this morning with with slow bad markets out of europe, then before the markets opened, we got this report from morgan stanley which talked about slow growth around the world telling us things we already knew. but they said we re on the precipice. they didn t say we were there, they didn t say it s the base case, but they said we re dangerously close. also cited errors in policymaking here in the united states and in europe. and they said it s likely that the european central bank and the fed would have to get further involved in this economy. now, you know all week we ve been talking about rick perry saying it would beo treasonous for the fed to get involved. it represents a view in america that the fed should do no more work in stimulating this economy. so now
jessica, what do you know about the president s plans for next month? after labor day he ll reveal a jobs proposal that will have specifics in the way his critics have been calling for. according to my sources it will be actual legislation. that s real detail. i m told the package will be new initiatives and not a rehash of the policies we ve been hearing him promoting recently like patent reform or infrastructure bank. my sources say there will be proposals in three main categories. targeted tax cuts. another big one for the white house is new infrastructure investment and then long-term help for the unemployed. i should point out this is all being worked out right now. it will continue to be hashed out over the president s vacation. the president is meeting with his top economic advisers tomorrow. i m told it will come up there. republican leaders issued warning shots saying this package should not include any new spending. the president says it will. sounds like we shoul
four hours or so. morgan stanley come out with a global note cutting its global growth forecast and saying the u.s., the world is dangerously close to recession quite frankly and naming a couple of different reasons why they think that global growth will not be as strong as they thought. among them, europe s debt problems and also mentioning what they call policy mistakes in the u.s. and also the drama about the debt ceiling. they say, overall, consumer confidence, business confidence, almost this negative feedback loop we are on the verge of people being so worried and not able to break out of that. lowering their global growth forecasts and enough to shake a shaky market which bank stocks in europe are down and real concerns about the debt crisis in europe. still even after france s aaa rating was reaffirmed. an icky situation here this morning. the dax and ftse is down and cac is down also. bracing for a big sell-off this morning. saw new data from the united states. joble
anderson. he was giggle. that s the first time i have ever seen him completely lose it. it was funny. a lot to talk about this morning. we have breaking news. a suicide truck bomber targeting the u.s. military base in afghanistan. it happened in the city of gardez a few hours ago. officials say the truck ripped through the main security gate. killed two afghan guards. nine others were hurt. and the taliban is taking credit for the attack. less than two weeks after downgrading america s aaa credit rating standard and poor s is the target of a justice department investigation. that s according to the new york times. the feds want to know how the credit rating agency somehow missed the mortgage crisis. you will remember s&p along with the other major credit agencies gave those mortgage backed securities very high ratings. even though would now know they weren t worth the paper they were printed on. the times is reporting the justice department is looking into claims
we ll begin with the breaking news, all of us with money in the stock market, we re just catching our breath and now this, another big selloff on wall street. all three major indices way down at the closing bell. the dow losing a hefty 419 points. it s the fourth biggest slide for the dow in a month of big losses. the dow has plunged 1152 points so far this august. that s a drop 9.5%. and the month isn t even over yet. let s turn to cnn s richard quest. he s following what s going on. a lot of traders on wall street, richard, they re blaming what s happening where you are in europe for a lot of the problems here in the united states. do they have a point? way too simplistic to put it like that, wolf. there are problems on both sides of the atlantic. what prefaced today s fall was the morgan stanley s report that warned of a dangerous risk of recession in the united states and in the euro zone because of what it called policy errors and sluggish growth. it s not you cannot