this -- threatening a debt default, the white house has just begun a series of meetings with lawmakers. house democrats are the first group to sit down with the president. republican leaders are next in line. let's go live to our chief congressional correspondent, dana bash, who is following all of this. the full gop conference won't be going to the white house. all 233 members. what's going on over here? all the democrats, the entire democratic caucus was invited. >> reporter: that's right. house gop leaders believe it would not be best for all the republicans to go to the white house, because it wouldn't be productive. the whole house republican message is they want a chance to sit down with the president, with the white house and talk. so they are taking advantage of this invitation, which is for tomorrow for republicans, saying just the gop leaders, and the key committee chairmen will be attending. they are the only ones who will attend. let's just face it, having a discussion with 233 people generally isn't that productive, but more importantly, nobody has said this or on the reporter oeven close, know the makeup of the caucus, i think leaders feel maybe it would be best for some of their more conservative, and maybe more importantly the more outspoken members to not be there. what are you hearing about any possible movement especially when it comes to the debt ceiling. >> there's still no official talks, particularly between the republicans here on capitol hill and the white house, but there are certainly unofficial bipartisan discussions going on all over, particularly in the united states senate. that is something that senator dick durbin, the number two in the signal sort of spilled the beans on to jake tapper on "the lead quest. listen to what he said. >> i think you probably would guess, and it would be true, there are conversations under way to what we will discuss, what we will negotiate over, what things will be on the table. now, house republicans say they are not having any discussions, as i said, with the white house, and no official discussions, but that, of course, is going to be the toughest nut to crack when it comes to any deal, particularly on the debt ceiling. i'm told today, wolf, that they are beginning to realize that they are likely going to have to pass a debt ceiling increase with the help of democrats, something they have not been willing to do when it comes to the funding bill, which ended up with a government shutdown. i'm also told they're sort of prepares, at least, some people to pass a clean debt ceiling increase, but -- and this is a big but -- along with it the promise with specifics for negotiations to deal somehow with the debt and deficit. this is something they're realizing -- that they are getting at least negotiations in the short term. there aren't any active discussion going on one the republican caucus, because they were told by senior republican source that they can't do that, because they don't know what to talk about, so we're still in this kind of odd situation, almost parallel university going on. >> still in a mess out there. thanks very much. maybe they'll get movement going. >> one of the most disturbing consequences, the death benefits paid to families of fallen service men and women have been cut off, to even pay for funerals expenses. now there may be a temporary fix? let 'bring in barbara starr. what are you learning? >> there may be a fix, but tonight it may well be worth remembering what president lincoln said when he said it was the solemn responsibility of government, and i quote, to care for him who have aabove the battle and for his widow and orphan. tonight many in washington will tell you the government is failing to do that. 24 years old army ranger cody patterson came home to his fame at dover. as defense secretary chuck hagel paid his respects. killed on his second deployment for afghanistan, his colonel called him a courageous soldier. unbearable grief made much more because the government shutdown left them without benefits. condemnation from all political leaders. >> lord, when our federal shutdown delays payments of death benefits to the families of children dying on faraway battlefields, it's time for our lawmakers to say enough is enough. >> reporter: publicly the white house was promising the president wanted to fix the tragedy for the families that had become a pr disaster. > he was not please the to learn of this problem. >> reporter: as hagel stood on the tarmac, top aides were urgently working on a solution. the pentagon signed a contract with fisher house foundation, a private organization that helps war wounded. fisher house will pay the families' bills and a $100,000 death benefit. the government will pay it back when the shutdown ends. this-year-old army special agency joseph peters also killed in afghanistan a few days ago. his friends upset about the payments being frozen. >> it's absolutely ridiculous that his family was lose ugh their son, husband. they shouldn't have to worry about that right now. >> reporter: now, a senior official here at the defense department, wolf, says that hagel warned without officials and congress several days ago when the shutdown was imminent that the death benefits would not be paid. there was even a news briefing for reporters on that very fact. >> barbara, there's other potential serious new represented to the shutdown for those who have served in the military. >> well, the next disaster looming is for veterans who will likely not get their november 1st benefits check. the secretary today said november 1st, it is possible more than 5 million veterans, their surviving spouses and therapy children will not get the checks that they are owed, because the government will run out of the money unless something is done. wolf? >> they've got to fix this and fix it quickly. barbara starr at the pentagon, thanks very much. even as the country faces a looming financial crisis, president obama just a little while ago named janet yellin to be the next secretary of the federal reserve. she'll succeed ben bernanke, if confirmed, and become the first woman to chair the bank. jim? >> reporter: wolf, president obama introduced her as the next change, noted she would be the first woman to lead the federal reserve in the 100-year history, and paid a lot of compliments, noting the fact that she is tough but fair and not only because she's from brooklyn, talked about her bona fides as an economic policymaker, saling shy warned of the housing meltdown before it happened in 2007 and 2008, but at one point, wolf, he didn't make any direct reference to the debt ceiling deadline that is looming, but he did make sort of an implicit message, when he said talking about the progress that's been made since the recession said we shouldn't do anything to threaten that progress. wolf, this was the one optic, perhaps the only one of the day, that the president could control. >> so, jim, is there anything else going on as far as the meeting that the president is now having with house democrats, all 200 house democrats who were invited over? what is the white house saying about that? and also the fact that only some republicans will show up at the meeting, even though all house republicans were invited. >> reporter: right. the president invited all members of congress for these meetings this week, and you're right, house republicans did respond to that, by saying no are they're just going to send the leadership and their committee chairmen. dana was mentioning a few moments ago, that that meeting is under way, starting at about 4:40 this afternoon. we didn't see all of them go in. many slipped through side entrances to white house, but white house press secretary jay carney after receiving word from speaker boehner as office that only house republican leadership and key committee chairmen would be coming over fired off a pretty tough statement. here it is. it mentions that the president is disappointed that the speaker is preventing all of the member, but quote, the president will talk to anyone at any time and looks forward to their visit at the white house, but will not pay the republicans' ransom for doing their job. if they want a real discussion, they should take the threat of default off the table. so, wolf, not is that pretty tough talk, it's an indication that both sides can't even agree about. thanks very much, jim acosta. rejecting the idea that it could be liming. using the hash stash #sitroom. at least potentially suspected, sir rich and brandon, he is here, today, in "the situation room." how much protein does your dog food have? 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>> that's when we move into completely speculative ground here, wolf. whether or not that happens this months on the 17th or so, or if it comes later on, some time later, we don't really know. there's a lot the disagreement about how to even dwid default, but the dahl we are undeniably in default, almost everything changes, and probably for the worse. if the government can't pay its bills, americans who get some kind of assistance, they -- and millions of older folks, who absolutely rely on social security to stay alive and have their homes. in that environment, loans for new or growing businesses, the stock market, housing values, jobs, even the gross domestic product, could all start falling and fast. here's one of the most ominous possibilities. go back to the idea of the government selling treasury bills. there's the real fear that in a default situation, no one will buy them, or not enough people will buy them. these investors who routinely roll over their investments might suddenly say no, it's too risky, i want to catch in. wolf? >> very dire situation, potentially out there. good explanation. tom, thanks very much. so we're seeing other dire warnings about what could happen if congress doesn't extend the debt ceiling and the united states were to go into default. but there are some debt ceiling deniers as they're called, rejecting the forecast of economic catastrophe if the debt ceiling isn't raise the by october 17th. who is right? the former clinton labor secretary robert now with california berkeley, and steven moore who writes for "wall street journal." guys, thanks very much for coming in. i'll start with you, steve. go ahead and tell us, if the dead ceiling is not raise by october 17th, would there be a catastrophe? >> well, wolf, great to be with us. i hope you're not going to call me a debt ceiling denier. >> no. i don't want to see this happen. i think it's crazy that we're in this situation, it is hurting the economy, but some of these really dire forecasts, like a bankruptcy for the united states, or i would even make the case to you, wolf. that the chance of actually a default on our debt -- and this is a case the president has making. your analyst just made, i think that's irresponsible, because the chance of a default on the debt is very close to zero. the reason for that is even if we hit that debt ceiling, which i hope we don't do. even if we do, there is still monday to pay off the in fact i make the kay they make the first claim. let's not scare people who own bonds that they're not going to get paid. >> robert, get. >> i think that art, steve, with due respect is irresponsible. even though there might be theoretically be money to pay the interests to the bondholders for a few days, it is only a few days. jack lew has, what, about 30 billion on hand on the 17th, could be the 18th, but we're talking about only a few days. in the meantime there would not be any money to pay social security payments or medicare payments or anything that the government is doing. this would be a calamity for americans, for millions of americans, and for a huge number of people in the global economy. we should not even get close to this kind of a situation. i'm worried not only about october 17th. i'm worried about the days leading up to october 17th, as more and more people who are lending the united states money, or who have lent the united states money get nervous about the ability of the united states to deliver on its full faith and credit, and interest rates start rising. >> bob, let as say you're right. i don't agree with everything you said, but i agree, we don't want to get to that point of no return. the question i would ask you. you worked for bill clinton. i was working for the republican congressional leadership then back in 1995, 1996, when we had a similar situation. bill clinton got on the telephone with newt gingrich, made a deal, clinton gave a little bit. gingrich gave a little bit, and we got out of this. wolf, the problem i have with this crisis, everything is blaming republicans, but it takes two to tango, and you can't negotiate with a president who has said repeatedly for the last three weeks he will not budge, he will not move an inch. that is not negotiation, that is not compromise, and that is not getting us out of this crisis. >> steve, let me distinguishes 1995-1996. i was there. that was not an a