what ben bernanke said yesterday was exactly what the market expected him to say, we know things are weak, we know europe is a severe issue. him saying it even though they knew he was going to say it makes people more worried looking for something to hold on to and a little bit of hope. most people say this is a dramatic sell-off and you might see stabilization. that isn't the same thing as saying we aren't in a real economic problem, we know we are. >> it seems the markets are underwhelmed by the feds latest move to kick start the economy. is there anything they can do? >> certainly not the fed. the fed has been deluging the economy with money the last three years. this idea of more purchases and government bonds ben bernanke announced yesterday i'm not so sure they had a very calming effect. erin is right. and the president's speech wasn't very helpful. monday, the president announced a trillion and a half-dollar tax increase in 2013, 14, 15 months away. that was a very bearish drury message in an economy hobbled. >> david, do all roads lead back to the president? >> not all roads. there is great fear what's going on in the eurozone and some fear u.s. banks are shaky and three had credit downgraded the last 48 hours. concern about china and manufacturing. the chinese stock market down 20% year-to-date. other concerns. part of this, we have been the number one economy and the driving force. we're supposed to be the locomotive this help other nations get out of this and we're exactly the opposite, the caboose in many ways. yes, it does involve politics. typically economics change our political scene. in this case, the deterioration of the politics dampening the economy. to stoll low up on steve's point, there is a growing sense in the industrial and financial community, i've been talking to both, both a jobs bill and deficit bill, prospect for doing anything seem to be slipping. >> do you agree with that, the political gridlock is playing a role? >> i think it's a huge role. fed chief bb a pratefry oatriot whether you agree with everything he's been doing. the problem is washington and capitol hill are not doing anything. gridlock is a big issue. you look at the root of the whole problem and what really could fix this, a little bit of oversimplification, u.s. houses prices 30% off the highs and still dropping yesterday. as long as that's the case, our economy won't get better and the world economy won't get better. the fed can't fix that and mortgage rates can't fix that. people can't buy homes and there's nothing they can't do. >> i agree, anderson. i don't think the problem is gridlock right now. the problem is at the top, a leadership problem when you have this zits phrenic message from the president. remember, 10, 12 days ago, the president said he would do a tax cut to help businesses grow and then said we will have a trillion and a half-dollar tax increase on top of that. right now, the parties are so polarized, the president has not put anything on the table congress can buy into. they need stimulus, the right kind of stimulus not another $800 billion spending program. >> he is clearly putting the blame on the president. >> everybody's fingerprints are all over this. we wouldn't have had the debt fight we did had republicans not pushed that to the limit. we have the biggest drop in consumer confidence as a result of the debt fight in years. republicans bear some responsibility. >> the sense, anderson, in the job creation economy, to help us get out of this, in washington, we don't see any help coming and looks like everybody has gotten in campaign mode all thinking about 2012, i do think the president's plans, for good reason in one sense, they were political documents, not governing document, a real sense in the country, can't you guys spend three to six months helping to fix the economy in serious way, like tax reform and get off the trail for a while? >> do you think we're already in a recession or heading back that way? >> interesting, most people would say, yes, right, the experience people have 25 million unemployed americans and more underemployed would be a lot of people would say it's shocking we're a couple years out of a recession, they disagree with that. technically speaking a lot of data have not shown we are falling into another recession. a lot of very influential people -- >> george soros thought we were back in one. >> and mohamed, one of the most influential bond managers in the country own a lot of u.s. debt at pimco and thinks we are in a financial crisis and one thing that could turn the tide and gridlock issues would be resolution of the european problem. if you had real resolution there, that would be significant and turn around people's sentiment and sentiment really and trust and confidence is what this is all about. that could prevent a recession. >> australian markets are down. >> the problem, erin, if we hit a double dip recession, i pray that would happen because american finances are just clawing out of the last financial meltdown with the housing crisis. if we had a double dip recession right now, we could see this budget deficit go from 1.3 to 1.4 to 1.8, 2 trillion dollars and put is in an even bigger hole. the problem we borrowed so much money in the last three years, we're not in any position now to deal with the double dip. it's a very scary situation, especially after the census numbers came out last week that showed declining family income, rising poverty levels and 9% employment. >> anderson. there's a parallel between europe and the united states. in both, we're suffering from weak political leadership. >> right. >> depressing note but we have to end it there. appreciate it. thank you. we have something at the end of the program to make you smile and laugh. stick around for that. remind you erin's new show here at cnn, "erin burnett out front." very excited for that. >> that's right. please watch so we can give you a good lead, anderson. >> let us know what you think on facebook and on twitter. i'll be tweeting tonight as well. breaking news on a shut down showdown on capitol hill. that's right. we're back here talking about a shut down waiting for a new vote in the house to keep the government running after september 30th. the measure failed yesterday when republican lawmakers wanted more spending cuts to pay for disaster relief aid. what's going on? "keeping them honest." ungodly discipline, new allegations of child abuse at a fundamentally can't school in indiana and some students saying they were hit to the point some students considered suicide. >> we constantly lived in fear of looking the wrong way and doing the wrong thing. >> we were brainwashed and our parents were brainwash and you followed what roger said. >> more on that later. dramatic testimony today at a federal hearing looking into whether sea world should be charged in the death of an animal trainer who worked with killer whales. that and much more when "360" continues. 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[ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. talk to your doctor, and take care of what you have to take care of. the two trains and a bus rider. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be. ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu. restorilrestoril. more breaking news tonight, "keeping them honest." here we go again on the brink of a possible government shutdown. all that talk of compromise. the do-nothing congress. we're waiting to pass the bill to fund the government to november 30th and then only for seven more weeks. it failed in the house last night. 230 to 1 niv95. 48 republicans defected and only it was way to there was a 12% approval rating conducted in the "new york times." they said there weren't enough spending cuts 0 offset the $3.6 billion in disaster relief money. you can decide for yourself if you think funds for disaster relief for agencies like fema should only be available if they're offset by spending cuts elsewhere. this is the first time ever funding for people affected by tornadoes, hurricanes, floods, fires, you name it have been used as a political edge. right now, that aid is in limbo until this bill gets passed. majority leader eric cantor said he wouldn't hold up disaster relief. on think progress.org. >> no one is holding any money hostage. >> he said no one is holding any money hostage. they are tonight even though cantor pointed out his district needs the aid. his district was hit by hurricane irene and hurricane last month. house speaker boehner seemed caught off guard and desperately tried to get his party on board and failed and at a news conference dismissed there was chaos and that they would fail. >> the founders gave us a committee now 535 individuals. trying to get 535 people to come to agreement on anything around here is difficult. we've known that going in. we'll work our way through this. i have always been confident we'll be able to come to an agreement and we will. >> speaker boehner earlier today. at this hour, we're waiting for a new vote on the measure expected at any moment and we will see if republicans came to an agreement as mr. speaker said they would. house gop leaders have unveiled a new proposal to offset the cash wanted for disaster relief by cutting $100 million from a government loan program that granted a $535 million loan guarantee to highly controversial solyndra solar company. joining us is david gergen and glor gloriaberger. when you hear them say they're not playing politics with disaster relief funding, especially as the possibility of a government shutdown looms, do you buy that? >> anderson, both sides will try to make points. democrats will do that in the senate and gloria has been reporting on that, to make points off the fema thing. i do think they will get something passed. i don't think there is a government shutdown. the amount of money at issue here is actually modest. what this has done, it was one of the things a backdrop to the markets going down so much today. investors looking, saying, my god, those people in washington haven't made peace and can't agree on this tiny bit of business. it is fueling the sense that they're not going to be able to get a big bargain on deficits and maybe not live up to the agreement on the debt ceiling in august. >> that's the whole problem. when they cut this deal on the debt ceiling, when we pass a bill to keep the government rung, a continuing resolution, it will be clean. then we had these disasters as the republicans in the house say we need to pay for those disasters. i just got off the phone with the senate democratic leadership aide who said to me if the house bill passes tonight, with more offsets, spending cuts for disaster leaf, the senate will reject it. that senate democrats will reject it. what they eventually will do is pass a clean continuing resolution to fund the government with fema funding separately and deal with that -- don't forget the fema money for disaster relief expires early next week. so we will move from one crisis to another crisis. >> is this the way business is just going to be done now, david? especially between now and the election. can anything major get done between now and this presidential election? >> anderson, one held out hope for that, i think, a few months ago, they could actually make real progress and get breakthroughs before the election. i think that hope has diminished sharply in the last few weeks. everybody here has now gotten into campaign mode. this is something president obama foresaw some months ago. this is the reason he wanted a bigger deal in august because he thought as we got closer in, it was going to be hard. now the white house has gotten into politics, too. everybody is playing the game. there is a growing feeling big breakthroughs have to wait the next administration, whoever it is, and the next congress. >> here's what complicates all this. what really complicates it, you have a republican primary going on. don't forget those republican presidential candidates were all out there, most of them, saying, you cannot pass an extension of the debt ceiling. you have congressional leaders w who -- republicans who feel they want to get something done as i think john boehner felt early on in this process. but they have to try and be on the same page with their presidential candidates. the presidential candidates are appealing to a republican primary electorate, very very conservative. i think gridlock is in the offing because republicans' hands are tied by this primary. >> what's so frustrating about that, we're seeing today the markets reacting in part to this gridlock. >> of course. >> this is costing people their fouks, this is costing people their money. >> it could cost people their disaster relief, if that doesn't go through. >> exactly right. a lot of people's 401(k)s you can measure from the s&p 500, down 7% over the last two days. some people are losing not only their housing value but now their 401(k), again taking hits. that's what's so frustrating about this. i have to say, it's not just that the republican candidates are tying their people up and asking for loyalty. look at norm dicks, a democrat who was going to vote for this continuing resolution, very independent, fine congressman, came under pressure from his caucus on the democratic side to vote against this continuing resolution, to stop things because they're playing their political game, too. >> absolutely. they're playing it on both sides. guy you think the democrats want to separate out the money for fema? because then they can say that the republicans don't want to fund disaster relief. >> it's just games. back and forth. >> terrible. >> just games. >> david gergen and gloria borger. and the trial of the doctor of michael jackson, will they get a jury and start trial tomorrow? stunning allegations of child abuse and we will hear from the pastor who runs the school. with us, in spirit, was every great car that we'd ever competed with. the bmw m5. and the mercedes-benz e63. for it was their amazing abilities that pushed us to refine, improve and, ultimately, develop the world's fastest production sedan. the cts-v, from cadillac. we don't just make luxury cars. we make cadillacs. helps defends against occasional justconstipation, diarrhea,alth probiotic cap a day gas and bloating. with three strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health. from centrum. omega-3s go beyond heart health. probiotics go beyond digestive balance. and fruit & veggie has antioxidant properties. new pronutrients from centrum. help make nutrition possible. dramatic testimony in a federal hearing looking who whether sea world or orlando should be charged in the death of one of its animal trainers. her name was dawn branshaw. it wasn't the first time he had shown sign offers aggression. david kirby was at the hearing. he joins us in orlando. joining us today. dawn's spotter testified he saw him pull her into the water before ultimately killing her. what did he say? >> his story was a little different today than what he told the orange county sheriff's office and keeps evolving over time. initially fell in and drowned and then pulled in by her ponytail. today, it changed a little bit saying dawn was lying on her back in the water doing what's called a lay-out with him and he gets on his back and they were laying together and then said dawn got up on her knees and the next thing he saw was dawn pulling at her ponytail. while undcross-examination from john black the osha attorney, she was lying in the other direction and couldn't see her hair and assumed it went into his mouth and his testimony completely contradicts what other people saw earlier this week a former nypd officer said she was pulled in by her arm, looked as she was giving a left-hand turn signal as she went in and jan works for the fbi a credible witness as well. >> what is the significance of all of this? why do the details matter so much? >> the initial belief was sea world would try to blame this on dawn and say she never should have been in that position and never let her ponytail flow into till the whale's mouth and we had four witnesses say what she was doing was completely approved by sea world. if sea world wants to stick with what's called the ponytail defense. osha will counter that because there was another woman pulled in in her clothing and they needed to desensitize the whales with clothing and hair and other objects and sea world never desensitized he whale to hair so i don't think they get off the hook. >> there was another trainer who tried to rescue dawn from the attack and talked about 2006 where a killer whale showed aggressive behavior. >> she was at the slide-out area when a young quhwhale named ike grabbed her leg and wounded her and she gave him a signal to open his mouth and fortunately he did. she got out of the pool. a medic was called. treated orn site. the injuries were fairly minor and she sat down with her supervisor and they listed the incident on the incident report. today in court, it was presented that that incident report never made it into the incident log. >> that's interesting. >> when sea world says they only have 99 incidents, we have now heard of five, six, seven, 10 more incidents that happened that never got put into the log. >> the question underlying all of this, should these whales even be in captivity like this and is there something about being in small pens in the wild and go for miles in straight lines and swimming round and round their entire lines stuck in these pen, does that make them more aggressive? that's the underlying question? >> i have spoken to scientists who say they do believe it does and signs these animals are stressed out. today, the government's witness, dr. david from british columbia had a different take. said aggression is part of being a predator. these are top predators and evolve successfully because they are aggressive and he also said it wasn't necessarily the stress of captivity, the sheer proximity to these whales so unpredictable. in the wild we don't get up close with killer whales, it only happens at sea world. thank you very much. coming up, ungodly discipline, beating kids in the name of god. we started looking more than a month ago at a boarding school that resulted in a tragic death of a 7-year-old girl not at the boarding school but in a family and now uncovering abuse at another religious school in indiana. first, other stories in the "360" bulletin. >> a disturbing discovery in southern libya. a cnn crew was taken to a warehouse containing bags of yellow powder marked "radioactive." it's not confirmed it is radioactive but authorities do say moammar was stockpiling yellow cake that can be used for nuclear purposes. in a speech at the united nati