Make it to the house and what the next step is. Coming at 6 40 eastern time, red hat has been red hot. That company reporting Quarterly Results and we have the ceo. At 7 00 a. M. Eastern time, we will welcome our guest host, roger altman and barry knapp. We have Thorsten Heins joining us, as well. Our big story of the morning, it could be a tense days for the markets as the resolution to the physical cliff appears less likely. We can see the futures opening at least 150 off if things keep up the way they are. House Speaker John Boehner failing to mount enough support for his plan b that would raise taxes only on families earning more than 1 million. The president vowing he will press ahead with congress to get a deal done. He wasnt going to do it, anyway. What does he mean it will press ahead . I dont know. Because it wasnt going to go to the senate. But to me, the demonstration that boehner didnt have the support you thought boehner never had the support for this plan . No. Im saying boehner didnt have support to do it even at a million which suggests to me what kind of rationale because maybe the house wanted some actually spending cuts. After giving in on tax breaks, they didnt go we always wondered if boehner can deliver the right. I wonder if the president can deliver the left. Theyre so much closer than the rest of the parties. Why didnt you believe geithner when he slipped and said were going why wouldnt the president . The president doesnt want to do 400. He was going to agree to that. He was going to do 250. He gets 250 and above on january 1st. Then he comes back and says were going to lower for 98 . You guys have to say no to that or else were really screwed. So. Why wouldnt he do these . And then the democrats introduce the bill, here we go, now lets give the tax break to all the i understand the sort of political and its always been that way. Its a cynical view of how this is supposed to go. He wouldnt accept the surrender. Well, they werent going to surrender. But if you know youre going to get killed, anyway, why wouldnt you surrender . The fact that you have two people, though, negotiate, each other thats basically unclear whether they have the ability to deliver at all means that this whole thing could be a youve heard mark andrews. Lets go cliff diving, baby, im really. And there are people that really do say the cliff is our version of austerity. Sooner or later, we have to do it, anyway. Lets see what happens, lets see what comes. Were lower rates for people, trying to minimize some of the damage, but i dont think the president ever really yeah. The people say Market Reaction will determine this. Its not down like how have we twisted this around as if its the president as opposed to the fact that boehner comes i watched it on cnbc as the rest of the country did. It wasnt going nifr. He said he was going to veto it. It wasnt going to be taken care of by harry reed. Why do you care what happens to it. Because i think its important to understand that does he even have the backing of the the conversation, anyway . Its like sending in a guy who should have coffee because its done. Today is the day for the pins. Well have team to rise above with our xaernt washington correspondents. Good morning, john. Were you up all night . Not all night, but we stayed on, of course, until 9 00 after it was clear that the house alternative had collapsed. But, joe, i was listening to your conversation earlier. This is not about the far left and the far right. This is about the Republican Party not being able to get its act together and figuring out and strategy and pursuing a strategy. I watched the press conference yesterday. All the reporterses, all the Mainstream Media reporters were saying, mr. Boehner, why are you going through this exercise . This is an exercise in futility. Why are you doing this . Why even hold the vote . And then he cant do it and now all of you are going, see, see, you cant even do it. But it does raise questions about what this means for joe, its not about the Mainstream Media. Its about the inability of this Republican Party to face the face political reality. The president was reelected. His positions are much more popular where the country than theirs. They are locked into a caucus in the house which is not capable of being led by the speaker. He tried very hard not led to where the people that elected them didnt want them to go. Yeah. Well, look, the you know, 2010 was a historic election. You hardly lost any of those seats. What happens now . You lost the they lost the house, the senate and the presidency. They gained 70 seats in 2010 and the same guys are still there, elected for the same mandate for what it was back then. If these guys looked, and you heard boehner said the president has never really come to the table on spending. Yeah, but thats not true. Well, thats what you say. But they would say the opposite. Well, no, joe why would these guys surrender to a deal that joe, that argument is empty. Here is why the argument is empty. Your argument is empty, john. . No, no. Youre just like the two sides that say neither side is compromising. Every time you say it, ill say it. No, joe, here is the difference. Youre wrong. So are you. Youre wrong. The president and the congress cut Discretionary Spending by a trillion dollars. Token change. Weve had people in theres a guy that did the auto bailout yesterday, harry wilson said it was a joke, sfending cuts. Did you see steve forbes talk about it . Are they all wrong, john, just because they differ from what you believe . Youre wrong. Youre wrong four times plus one to infinity. No, no, joe, im sorry, joe your words are more inappropriate than mine. No. Youre getting more full of it by the second. Oh, please. Why dont we do it this wie, john. Based on the look, our spending problems hold on a second. Hold on a second. When geithner said on our air we are fully ready to go, you must not have been listening. They are ready to go over the cliff. Theyre ready to go over the cliff. And get 250 above. The alternative is a set of policies that were rejected by the American People in the election and arent consistent with the reality of our governsance. To get 50 to raise taxes on 2 so that they can get 2 that theyre raising . This is not a definitive no. Come on. Does john boehner lose his leadership position . Does eric cantor have to come in . Whats that . Does john boehner lose his leadership position after this . I wouldnt bet on that at this point. Its not clear that anybody can effectively lead this caucus at this moment. The question is going to be does Mitch Mcconnell, who has been standing on the sidelines concerned by the inability of the House Republicans to act, which he steps in and makes or permits a deal again reid and the president and republicans and the senate. John, walk us through the per mutations. The permutations are that the president , Mitch Mcconnell and harry reid negotiate a deal. You get a certain slug of republican senators there is a by partisan majority in the senate. Theres one in the house, as well, if it were allowed to work its will. But in the senate, you have the kind of deal that was negotiating. If they pass that with a large vote on the senate, the pressure with the speaker to allow a bipartisan vote would be very intense. So the question is going to be can they do that on the senate side . If they cant, well be left with a situation where taxes go up on everybody. Then the administration will propose to shield people 250,000 and below. Challenge republicans to oppose it and theyll have to figure out some way to turn off the automatic spending cuts sequester, counting on the fact that republicans dont want the defense cuts to take effect. Im glad youve known all along, jean. But what they will not do earn the sequester is go after the Entitlement Programs which republicans say they want to do. And the reason that the sequester was designed that way is that the Entitlement Program are extremely popular. Right. Everybody is okay. Listen, how do you know all along the president didnt want to go to 250 above and come in, ride in on a horse after january 1st and save everyone at 98 below . Its going to work perfectly. Thats clearly not the strategy that he preferred, but its a strategy that he will accept. Everybody hold your breath. One second, right now its supposed to be the end of the world. Ooh. Ooh. Were still here. Wow. Thats the one benefit from the end of the world right there. Maybe this is the first oh, my. The first zombie might be somewhere waking up right now and walking towards squawk box right now. What movie are we looking at here . Its basically a documentary looking ahead to when your Global Warming finally comes next year or whenever youre predicting. This is squawk apocalypse. Arent all the different time zones maybe its ending somewhere else. Wouldnt it understand al at once . Did the mayans mention gmt . Did they know where greenwich was . I dont even think that you this knew somebody tweeted yesterday, if the mayans were right, thoeld still be along. Do you think we made it through because were on an earlier time zone . Is dave in the control room . Does he know the answer . I dont know. We are not really sure, but well play alone. Would he have survived so far, we think. We knew thats when it was supposed to be. But right now. Unless we dont know its happened. Its happening outside the building . Im just saying, if a Zombie Apocalypse were to happen, it would start slowing and you wouldnt know right away. Have you watched walking dead . Im not a walking dead guy. Im not surprised. I dont know what that means because i dont watch it. Yeah, i know. Breaking news, the end of the world has come and gone. Becky and andrew didnt win the lottery. The end of the world didnt come. All the stuff we were sure was going to happen. And the fiscal cliff. The fiscal cliff, well be all right. On january 2nd, there would be a bill to lower taxes on 98 of the country. The rich will be at 39. 6 . Its going to work perfectly. Its going according to planned. Anyway, according to the mayan calendar, 6 00 a. M. Eastern time was the end of the world. We have some shots. Lets look at hong kong. I dont think thats hong kong, but hong kong looks okay. Its still there. Sydney, australia, is people are probably having some shrimp on the barbie or in fosters. Theres the eiffel tower in paris. Nice day out there. Cafes r still there. Geneva looks to be in pretty good shape, too. Who is the other guy that said it was going to end . Didnt he reset another date . Yeah. And that one came and went, too. And hes mad. He was wrong. That were still here . Yeah. Did you like my kids didnt do their homework. Oh, really . Why would they . Why would they do their homework yesterday . Thats going to be a problem. You read all those stories about people doing the other guy, they got rid of all their requirements funds, took everything because they thought it was not coming. Anyway, were here. Were here. Credit cards. Did you even pay off those . No. I tweeted earlier today. Take a look read now. They have gained a little bit. Dow futures are still about 140 points below fair value. Pooip people are looking to wall street to be some pressure for us to try and get a deal done. But this is not the reaction you saw after t. A. R. P. Those futures would be much worse, i would say, if the world had ended probably. Oh, wait a minute. Anyway, that would have been a much worse outcome. Its continuing, right, for the markets . I mean, we would never see the New York Stock Exchange and the i. C. E. Wouldnt get together. We couldnt get that fine from ubs. How about the big options to live for . There may be some stuff. This may be the christmas week to be here. It may end up back here at some point. You really think so . We made it but im not sure. We mentioned where the fiscal cliff was only slightly below the end of the world in terms of seriousness, havent we . And now that weve made it past that, were going to focus. And then you have the debt ceiling. That would be funny. This whole thing gets pushed up to the debt ceiling. John can talk about this incredible ground swell in the country for everything that the president wanted, even though we know what this coalition was sort of cobbled together. And we know there was a Great Campaign that he ran. I know. But the way we set these things up is you have to have a referendum on these things. But you need both houses. Thats a law. And these guys are willing. Theyll fall on the floor. I dont know that anybody could lead this caucus right now. The idea of boehner stepping down and somebody else stepping in, theyre going to say, okay, well go along with you . Lets say if we extend all the votes, we would have extended the fiscal cliff. It was weird to focus everything on that and not focus on tax entitlements. Thats the leadership. But look, people say we need leadership. I knew this would be the response and i think that would be the response. I think these guys are ready to not even be there two years from now. We will see what happens in two years. In the meantime, lets go across the pond where london is existing at the moment. We dont know yet, do we . I think so. Kelly evans, well see if shes standing by. Hello. Were here. Happy to report that 1111 was not tend of things for us. I want to draw your attention to an interesting story. We look to that country as a barometer for the rest of the west. So much of its debt has been held internally. Overnight, we learned in the Third Quarter japanese debt hit a record. At the same time, japanese investors are buying polish debt, looking for better yields and, again, as we wonder about the vulnerability of this country with the highest debt load in the world, keep these important developments in mind. You can see the nikkei down about 1 here. Partly on some of the recall bragz of japans outlook. But also, of course, on new about the fiscal cliff, sent stocks around the world tumbling. We should mention a lot of trading activity has diminished as people approach the first of the year. We saw after a significant weakening that it is rebounding today, but pretty much everything is. Flows are going into the dollar as the safe haven trade. The euro dollar down about a third of a percent. 1. 32, still the level there. But back over to you guys. Glad to see that were all still standing. We are. And we came in prepared for the end. We came in prepared for the worst. Kelly, you were ready to run or whatever it is to do. You look like youre in clothes where, you know, if you had to she has roller blades on. Yeah. And you have a im with you guys. I wore my heavy my boots are right there. I have canned goods under the desk. You can run in boots . Oh, yes, you can. But kelly looks totally survival ready. I am. Joe, i have stockpiled food under the desk just in case so im fully prepared. I think its a smart strategy fog Going Forward, so maybe a track suit next week. Maybe it wasnt base ten. Theyll have the last laugh . I doubt whether the mayans knew diddley that long ago. But im feeling good. All the plans that weve been making, aim going to continue with. Im with you. Kelly, well be back. Thank you. 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Where i never have to compromise on anything. Where just one touch creates the perfect coffee. Where every cappuccino and latte is only made with fresh milk. And where the staff is exceptionally friendly. Nespresso. What else . Welcome back to squawk box this morning. Winter storm draco dumping winter storms across the midwest. A lot of people getting on planes today. The weather channels reynolds wolf. Hey, guys. Today is the big day and people will be going to the airports gore coocoo for cocoa buffs. Back in detroit, you have the snow to deal with. This is a mid system. And we have another system forming out towards the west we have to keep watch on. One looefg the continent and another one coming on shore. In the northeast, it will be the big issue with the rain, the sleet, the snow and the wind. We will see issues in places like new york city, possibly as far south as raleigh. Pretty easygoing. Well be seeing the heavy rain in places like san francisco. Oakland could have some backupes and perhaps some in portland and seattle. Back to you guys. All right, reynolds wolf. Got it. You know, you dont lose anybody if you go wolf reynolds. We have said that. Reynolds, he also has carl. He wants him to be carl quinn. You do, really . You hear tr people who dont do it on purpose, though, reynolds. Thats the thing. Youre in on it. Were all in on this together. Anyway, congratulations on still being here, reynolds, and maybe well see you next week. Coming up, why share of blackberry birmingham rim popped and dropped after the bell. Im thinking also, becky, they will buy me an iphone here. Now im thinking i go with this new thing, this new the blackberry 10 . Yeah. All i use it for i dont know how to do the stuff youre supposed to do, anyway. Plus, Speaker Boehner you can get your mail on your blackberry and your ipad. Failure to win the support in the house left congressmen from each side of the aisle with a compromise deal is possible before the end of year. S. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. Tdd 18003452550 hours can go by before i realize tdd 18003452550 that i havent even looked away from my s