all right. weird. the s&p downgrade, and then the investigation, and back in 2011, we questioned the timing. i just find the timing curious, i ll leave it at that. well, you know, they say, if they bring a knife, you bring a gun. that s the chicago way. so it does make you wonder about the timing, even though they had said just as investigators apparently tell me, the new york times, oh, no, this has been in the works for months. charlie, i know you and i chatted about this previously, and i find the timing weird. the timing of the leak is weird. is the government using the heavy-handed thug power to strike back at critics, and the answer is yes. this is retribution. by the way the white house had control of that particular tape. [ laughter ] i m kidding. i m kidding. anyway, there is a new court filing stating that tim geithner
saw the s&p downgrade that took out and me markets took a hit. they think at the white house they did a better john when they didn t negotiate with john boehner, but that helped lead to the government shutdown and breakdown a few weeks back. so you re right, there s a pause. he s going to hawaii, the president, for two weeks, going to take a breather. when he comes become there s a mountain of trouble. you should go with him. you two need a beer submit. he said something to john carl of abc, he beats up on himself more than john or i do. maybe we do need a beer. i ll go tohos. if he doesn t want to have a beer submit he wants private time. we ll gate beer if we end inin the same city. good to see you. chris wall los angeles chris wallace, what did you think? it was tough news conference. novelty that the questions were harsh but the reality is harsh. the president is under a lot of fire. polls at a low point.
up, zane, the interesting thing, it will cost more for the united states to service the debt we already have. the ratings agencies talking about a warning of a downgrade. we had an actual downgrade in 2011. but americans, i feel like, americans, are they paying attention to downgrades and warnings? that s the fundamental question. i think the fact is they didn t downgrade us. if they did, it would ab different discussion. it was a warning. everybody and their grandmother knew we wouldn t default. the effects of the s&p downgrade, they did tank immediately afterward, but have come back with a vengeance. treasures have rallied. rates are lower. it s had no impact on the cost of borrowing. and i ve been talking to richard about this. in terms of public perception of ratings agencies, they took a hit in 2008. they took the most toxic mortgage-backed securities and [ overlapping speakers ] ya, you started with
basically we re going to be running on fumes. there s just going to be maybe something in the neighborhood of $40 billion and then you have to start making choices about what you pay. do social security payments go out, et cetera. the other thing they re watching is the fact that fitch, this ratings agency today, said we re on watch. they didn t say they were going to downgrade u.s. debt, but we re on a watch. and that s important because you ll remember in 2011 there was that s&p downgrade. and that really hit the economy. and i think the point from jay carney all the way up to the president is why test this out. let s get a deal now. and in fact the president just did an interview with wabc tv in new york and he said he s still confident there will be a deal. but he noted time is running out. i think that is something everybody agrees on. yeah, fitch with a watch negative considering a downgrade but not official. mike, ed, we ll head back for any breaking news. thank you. stocks we
unthinkable what we are facing here. there is a parlor sport in washington. when is the last minute? you can t do that. when you have done that with the debt limit it is reckless. is this something that investors are going to have to get used to? i think so. look back in history over the last couple of years. we had the fiscal cliff coming in 2012. we had the s&p downgrade. so we have seen this in the past. every crisis that we have had within a few weeks to a month we have had a rally with that. the fed is the only one operating here. i think the fed affected that chart but i believe that people