American Morning
The race is on to save Europe – Ken Rogoff explains the global consequences if debt problems aren't fixed
This morning, world banks are now taking steps to support the global financial system as leaders work to come up with a big and bold plan to fix Europe's growing debt problems.
The whole world needs European leaders to get this right, because if the Eurozone fails, there could be dire global consequences.
According to some analysts, if the Eurozone fails: bank lending around the world could freeze; companies won't be able to borrow, pay bills, or hire; stock markets could crash; U.S. exports could collapse.
Many of those analysts also say this could be much worse than the financial crisis in 2008.
Today on American Morning, Harvard University economics professor Kenneth Rogoff explains what has to happen to fix Europe's debt problems, and whether a global economic crisis can be avoided.
100 lawmakers write letter in support of Super Committee as debt reduction deadline looms
As the deadline quickly approaches for the debt Super Committee to enact $4 trillion in deficit in tax cuts, 100 bipartisan members of Congress have signed on to a letter in support of the committee's substantial proposals.
The idea behind the letter is that 100 lawmakers from both parties will give the debt committee members support (a "fall guy") and protections from extremists on each side of the political aisle who may attacks the committee's actions. The members who signed the letter are also offering support to the Super Committee if they choose this path.
Two representatives who signed the bipartisan letter, Rep. Jim Cooper (D-TN) and Rep. Reid Ribble (R-WI), talk to American Morning.
Standard & Poor's Beers: 'We stand by our decisions' to downgrade U.S. debt
WASHINGTON (CNNMoney) - Standard & Poor's, the credit rating agency that lowered the grade on the federal government's credit worthiness, continued its defense of its move Monday, calling Washington criticism a "smoke screen."
"This idea that we made a $2 trillion error is simply a smoke screen for the unhappiness, in our view, about our decision," said David Beers, S&P's global head of sovereign ratings, in an interview with Ali Velshi and Christine Romans on CNN's "America Morning."
In talking to CNN, Beers took particular issue with criticisms made by Treasury Secretary Tim Geithner on Sunday, when he told NBC that the agency they "drew exactly the wrong conclusion."
Beers pointed out that even Geithner acknowledged the harm done to the U.S. reputation, when leaders took until the last possible minute to come to a deal, and that the U.S. remains on an unsustainable path.
"So it seems that the Treasury isn't challenging the analysis both on the political side and on the fiscal side. They're just unhappy with the downgrade, but we stand by our decision," Beers said.
Beers talked to CNN about further downgrade possibilities, saying there is a 1-in-3 chance the United States could be downgraded again in the next six to 24 months.
Debt bill enacted yesterday – what's next?
President Obama signed the emergency debt ceiling legislation into law yesterday just hours before a midnight deadline to get a deal done.
The measure provides an immediate $400 billion increase in the $14.3 trillion U.S. borrowing limit, with $500 billion more assured this fall. Later this year, a special bipartisan 'supercommittee' will come together to draft legislation to find up to $1.5 trillion more in deficit cuts.
Today on American Morning, Kiki McLean, Democratic strategist, and Margaret Hoover, author of "American Individualism: How a New Generation of Conservatives Can Save the Republican Party," join Christine Romans to discuss how the American public reacted to negotiations and where lawmakers will go from here.
Rep. Walsh and Rep. Kucinich explain why they voted no on debt deal
The House of Representatives passed a bill to raise the nation's debt-ceiling while imposing sweeping spending cuts yesterday on a 269-161 vote, overcoming opposition from liberal Democrats and tea party conservatives for ideologically different reasons.
Representative Joe Walsh (R-Ill.) and Representative Dennis Kucinich (D-Ohio) are two lawmakers who voted against the bill.
They join Carol Costello on American Morning today to discuss their decision and to weigh in on the political compromise.
Rep. Wasserman Schultz details Rep. Gabby Giffords return to House
Yesterday Arizona Representative Gabrielle Giffords made a triumphant return to the House after recovering from a gunshot wound to the head. She went to Washington to vote in favor of the debt bill.
Rep. Debbie Wasserman Schultz, a close friend of Giffords, was there for her vote. She has been at Giffords' side through her recovery.
Wasserman Schultz talks to American Morning about the welcome Giffords received from the House, as well as a potential timeline for Giffords' full-time return to Washington.
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