economic forecast. let s get to alison kosik. she s monitoring everything today where at one point today, the dow tanked morning 500 points. what s going on? that s right. these worries about a recession were ampfullied today. not just in the u.s., but overseas as well. the federal reserve spooked everybody first. this was yesterday. the fed giving a really bleak assessment of the u.s. economy warning of significant downside risks to the economic outlook. translation there that the economy will get significantly weaker. then overnight, we got weak manufacturing reports out of europe, the u.k, even china, which had been an engine of growth out of the great recession. you have to remember, wolf, we re all interconnected. only been one economist to tell us europe is probably in a recession and the u.s. is teetering on the brink of one. wolf? so, basically, it doesn t look very promising right now. what are they brace you for tomorrow? tomorrow, we re trying to see if we re
i ll ask about red hot democrats. stay here and hear how it plays out. i m wolf blitzer here in the situation room. we ve been expecting the house to vote on raising the debt limit. but it has not happened yet. the debt deadline is looming larger than ever. the deal would raise the debt limit $900 billion in the short term and green light spending cuts of roughly the same amount over ten years. offset dollar for dollar by more spending cuts. there s a lot of huge ifs involved in making all of that happen. let s go to capitol hill. kate baldwin is standing by. what are we toll about when it will take place? of. the timing is very fluid, wolf. the question is, will this compromise bill pass the house? speaker john boehner in a press conference wouldn t answer the question when i asked him if he had enough votes. but the paul ryan seemed pretty confident this afternoon. listen to him. some have various concerns, whether it s going to prevail. i think we have a majority o
to triple in ten years. we re looking at a public debt to gdp ratio that will hit around 100%. that s basically banana republic status. that s junk bond status. the implications of it for our ability to pay that debt off and for the world to support us when we re running those types of deficits and debt is very dramatic. and would mean if we continue on the path that we re on today where we re spending so much more than we re taking in and we re allowing government to grow so much from its historic levels, historically about 20% of gdp, going up to 26% of gdp, if we allow that to continue, we re essentially going to pass on to our kids a country which is significantly less prosperous and where the standard of living will go down. want to talk to you about wall street reform. there has not been a single vote on any amendment. there are dozens of amendments. the democrats say that republicans, you guys are holding it all up. when are we going to see some progress? there s already been