what could be the largest municipal bankruptcy in u.s. history. good morning to you all. thank you for spending part of your weekend with us. i'm t.j. holmes. we do need to start with a debate that was supposed to be over already. we are less than three days from a possible u.s. default. this clock is still ticking and a deal is not done. we are expecting a lot of action on capitol hill today. both houses in session, but whether there's going to be any real progress, that's anybody's guess. this is what we've got going on today. the house starts debate at noon with the likely vote on a democratic proposal expected some time after 1:00 p.m. not expected to pass, however. then over on the senate side, they kick off debate on the democratic proposal around 1:00 eastern time. they could be debating that for up to 12 hours before they even vote on whether to vote. kind of a procedural vote would take place, possibly around 1:00 a.m. we did hear from president obama this morning in his weekend white house message. listen. >> the power to solve this is in our hands. all that's needed is a simple vote that democrats and republicans have taken for decades, including all of the leaders in congress today. it was done 18 times under president reagan, 7 times under george w. bush, and it must be done again now. it's not a vote that allows congress to spend more money. raising the debt ceiling simply gives our country the ability to pay the bills that congress has already racked up. >> well, let us give you the republican response. that was delivered by arizona senator jon kyl this morning. >> president obama is simply too committed to the european style of big government, that his policies have set in motion. to democrats in washington, the answer isn't to cut spending, but to raise taxes and keep on spending. republicans believe we must solve our debt crisis. and we believe we can solve it if democrats will work with us. >> all right. we do have our correspondents up early this morning. athena jones at the white house for us this morning, also our joe johns, keeping an eye on capitol hill. joe, let me start with you, forget all the symbolic votes, the one we saw yesterday could see another one today this early afternoon. forget that stuff. what is a real possibility of happening right now? how are they going to get this done? >> okay. first, you got to say, this is a poisonous environment on capitol hill and in washington in general, but the way the democrats have been able to do this before is they've reached out to a group of potentially persuadable senators in the middle. these would be people who can sort of move in, take a look at this thing, try to fashion some kind of language that you might call a compromise, and those people become the power brokers and then they have to sort of pass it and hope for a deal over in the house of representatives. of course, the big question is, even if they're able to do all of that, what's the house of representatives going to do, t.j.? >> athena, let me bring you in there. he talked about brokers on capitol hill. is the president still a broker today? >> well, certainly, t.j. of course the action is taking place on capitol hill. the action we can see in front of cameras. but there's a lot going on behind the scenes. the white house isn't just sitting idly by. we know there a lot of conversations going on between members of all levels here, staff at all levels here at the white house and people on the hill. democratic officials told cnn that both the president and the vice president have been in touch with members of congress these past several days, and so we can expect that to continue. we've heard also that vice president biden has been in touch particularly with republican senator mitch mcconnell who has said that the white house has got to be involved in any negotiations leading toward this final compromising. we can expect that kind of talk to continue these conversations to continue as we go forward the next few days. >> joe, we've been hearing about this deadline for months, august 2nd, that's coming up on tuesday. that's when the treasury department says we won't have enough money to cover all of our bills so we'll have to start deciding. that's tuesday. but there's another important deadline if you will coming up on sunday night, because they do not want the markets it to open after the week they just had, the markets just had their worst week in a year, and to open on monday with no deal in place, nobody wants that. so they need to get something done this weekend, don't they? >> yeah, they certainly do. that means the senate comes in at 1:00 in the morning, if necessary. unless there's some deal worked out today or even tomorrow some time, the senate would have to come in around 1:00 in the morning and just sort of go through debate with an eye toward getting a vote some time on tuesday. it would be better for them to try to shift that timeline, shorten it, compress it if you will, and send something over to the house a little bit earlier because they're, obviously, going to need more time in the house to try to get the sort of conservative caucus together to decide what they can do with anything the senate sends them. >> and athena, one more to you here. are there -- i mean i don't know how much the white house may be letting you and other reporters up there know about contingency plans. there was talk that president could maybe try to use some constitutional power some think he may have to raise the debt ceiling if a deal isn't made or talk the treasury secretary could stretch things out for another week or two. is there a backup plan? >> well, this is really going to be unchartered territory if we get to that point. it's going to be the treasury department in the end that's going to have to prioritize what bill gets paid, who gets their checks. we've been told as we get closer to that date we may get some idea more of what the treasury department's plans are. the white house maintains we're not going to get to that point. we heard the president say in his weekly address today and yesterday in the comments he made, that they don't believe the two parties are really all that far apart. there's still room, many different ways to resolve this problem and to come together on compromise. they still maintain that we're not going to have to worry about what happens on august 2nd because there's going to be a deal by august 2nd. i'll tell you, t.j., i wouldn't put any bets on when exactly that deal will be struck. >> we have learned, haven't we? athena, john, good to have you here on a cnn saturday morning. we'll be checking in with you two plenty throughout the morning. coming up next hour we're still looking deeper into this debate with a couple favorites on cnn saturday morning, strategists along to break this down for us. tomorrow night a cnn special report on the debt crisis, join wolf blitzer and don lemon for a breakdown on the hurdles, options, obstacles, "get it done, countdown to debt crisis" right here on cnn. let's get out of d.c., shall we, and go a few hundred miles south. in another government is dealing with its own debt problems. we're talking about jefferson county, alabama. officials there were ready to file chapter 9 bankruptcy. that would allow them to restructure more than $4 billion in debt. a lot of that debt is from a court-ordered improvement to the county's sewer system. but the bankruptcy deal is now on hold for at least a week as the county tries to work out a settlement with its creditors. >> we will take a look at whatever they propose, if they propose something. they may not propose anything. fine. then it's our move. >> it would have to be close and it cannot involve a double digit rate increase. so we're open for a bankruptcies have always been my last option and we're down to the end of our rope. we have to have a settlement. >> let me explain what this means now. jefferson county, if they end up filing chapter 9, it's believed this would be the largest municipal bankruptcy case in u.s. history. at eight minutes past the hour now, let us say good morning to our reynolds wolf. we have been looking at this storm, it was -- we thought it was going to be something. people were hoping it was going to be something. nothing. >> what's funny when we think about storms hitting texas in the past, we've had some that have been really strong ones, thought about with fear in terms of recent ones, ike, we've got rita, even have dolly. in this situation this is one they were hoping would come onshore and provide rainfall. rob marciano happens to be in padre island and rob, this was definitely a bit of a disappointment, wouldn't you say? >> huge disappointment, not only for forecasters but obviously for the folks who are wanting the rain. this thing really fell apart. we've seen tropical storms that weren't very organized kind of fall apart gradually when they hit the coast, but this thing just completely died, completely faded once it came onshore. that was certainly disappointing for the folks that want that rain. i've never been involved in a tropical cyclone where so many were cheer leading for this to come onshore with some amount of strength and moisture. just to give people an idea of what it was like to -- when the storm came onshore, a lot of times we like to do a tick tock in the business do taped pieces throughout the storm because it came in overnight -- this what is we came up with. >> it's about 8:00 local time. tropical storm don is only about 40 miles south of here. right now making landfall on the padre island national seashore. we have felt little more than a few sprinkles here but the winds have picked up. some rain has fallen down to the south but the widespread rainfall that this state so desperately needs has so far been elusive. don's made landfall about 20 miles to our south. getting a lot of wind, sand in our face, but no rain. check out the pocket radar here. this storm is dead. radar empty. rain nonexistent. that has at love folks disappoint -- has a lot of folks disappointed. it was unreal to watch this thing make its way here. there was dry air ahead of it, but maybe the ground here and resulting air has been so dry, that that's one of the reasons. regardless, this storm just soiled the sheets when it hit the shoreline. but there's some good news here. because a lot of farmers have planted cotton this year because cotton is drought resistant. the harvest is coming in now and they don't want rain when the harvest -- when trying to harvest the cotton. diminishing the quality and yield. ironically enough, the cotton farmers who have something to harvest, are happy that it didn't rain. so there you go. there's a nice end to this story. the drought continues as you've been saying. deficits well up and over a foot and they didn't get much to put a dent in that at all with don. >> do bring a ray of sunshine perspective in terms of the cotton growers. we'll be chatting with you later this morning. folks, another system possibly another system out in the atlantic. we're talking about the potential of emily. more on that in your national forecast in just a few moments. >> we appreciate. we'll talk to you again in just a second. 11 minutes past the hour now. we're going to take you to a story that maybe the world is not talking enough about. we're talking about somalia where the u.n. says the world's worst humanitarian disaster is taking place right now. a report coming up. also coming up next, the chances are that this debt crisis is going to hit your personal finances in some way, form or fashion. you need to know how to get ready for that. that is next. this debt ceiling debate as it goes on, as tough as it is to come to an agreement, you would think maybe they don't do this often, you would be wrong. they do this all the time, raise the debt ceiling. do you know how many times it's been raised since 1962? would you think 34 times, 74 times, or 110 times in 60 seconds i have your answer. stay with me on this cnn saturday morning. yoo-hoo. hello. it's water from the drinking fountain at the mall. 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[ female announcer ] we all age differently. roc® multi-correxion 4 zone moisturizer with roc®retinol and antioxidants. lines, wrinkles, and sun damage will fade. roc multi-correxion. correct what ages you. 13 minutes past the hour. before the break we asked you, how many times do you think the debt ceiling has been raised since 1962? it's actually been done, at least according to the congressional research service, 74 times, including ten increases since 2001. 74 times. boy, getting to 75 has been a doozy, has it not? this debt crisis? washington may be beyond your control but ways you can protect yourself from some of the fallout, if the u.s., that's if the u.s. defaults on its debt next week. cnn explains. >> reporter: the gridlock is here, but the impact will be felt here and in the final days before a deadline to raise the nation's debt ceiling, many americans wonder if there's any way to prepare for a possible default. >> you can't control what's going on in washington, but you can control your own purse strings. >> reporter: interest rates are likely to rise if the nation can't pay its debt. that would impact everything from mortgages to car loans and credit cards. you may not be able to pay down balances before next tuesday but you can help yourself by not adding it to the load. >> we can address the credit card by simply putting less on the card. again, using more cash. your interest might go up, but the amount outstanding will go down. >> reporter: take stock of all student loans, check in with lenders to see what might happen and how they might help. >> it's certainly a wise idea to contact your lender, always have a good relationship with your lender, keep the communication lines open and see if there's anything that can be done. >> reporter: a monthly budget helpful in any financial climate but especially when things are uncertain. it you're looking for more wiggle room, try making calls about recurring bills like cable and mobile phones and insurance. >> if you can prove yourself to be a less risky consumer in those regards with car insurance and home insurance, you might be able to get 10 or 20% knocked off your bill. >> reporter: and make sure you're ready to weather any future crisis, even the smallest amount of money saved is a start. in washington, i'm karen kaifa. coming up next hour as well, you don't want to miss the friends of our show on cnn saturday and sunday morning, maria and lenny. they will be along coming your way at the top of the hour. also coming up, a lot of people might be looking for a nice car that's going to set them apart from everybody else. how about a vintage 1940 pontiac? that's see-through. it's made out of plexiglass. i am going to show it to you after the break. also coming up -- it's unfortunate, but we are looking for someone to replace reynolds wolf. our first applicant, you are seeing him there. fabio trying to give reynolds a run for his money. reynolds' job is safe and you'll see why after the break. it does something to your heart. i think what people like most about the grilled food is the taste. the flavor comes from that oak wood. the shrimp, the fresh fish, the steaks. it locks in the flavor, it seals in the juices so that when you put the fork in it, it just goes through it like butter. it's beautiful. [ laughs ] i'm proud to be a grill master. i love food. my name is charles himple. i'm a red lobster grill master, and i sea food differently. my name is charles himple. any questions? no. you know... ♪ we're not magicians ♪ we can't read your mind ♪ ♪ read your mind ♪ we need your questions ♪ each and every kind ♪ every kind ♪ will this react with my other medicine? ♪ ♪ hey, what are all these tests even for? ♪ ♪ questions are the answer ♪ yeah ♪ oh 18 minutes past the hour on this cnn saturday morning. give you a look at some of the stories our affiliates are keeping an eye on. check out this statute, this is being unveiled at the "uss hornet" museum in california. a reproduction of the 25-foot statute in new york's times square. the times square kiss statute based on the photograph taken in times square august 14th, 1945, when americans were celebrating the end of world war ii. also this is the ride i was telling you about. you see this? this is a plexiglass pontiac that was built for the 1939 new york world's fair. at the time, it was built for a cost of around $25,000. it's being auctioned off this morning in the detroit suburb of plymouth. it's expected to sell for up to a half million dollars. reynolds you have a look on your face. not feeling the car? >> i thought it would be more. >> more than half million. >> pretty much. we have cars less and impressive than that sell for a lot more. >> good point you make. one other to show you, does have to do with reynolds. we're having tryouts. he does not have to worry about this guy. >> this is a live look at portland, oregon. it's very sunny today and it feels so nice on fabio's skin. thank you, sun. >> that's funny. i thought it was funny. >> i think it's great. >> good sport. >> you know, it's not only just giving the five-day forecast, ten-day forecast, you need to express how the sun feels on your skin. >> you don't do that enough. >> maybe more of that. >> fewer clothes is probably the route to go. >> more hair, fewer clothes. >> this was fabio out at -- the station in portland. koin doing the weather, having fun. he's trying to make a comeback with some of these commercials you've seen. >> pastel nice on him. ravishing, i think. good-looking guy. unbelievable. >> i'm going to head back and not tell you how the sun feels on my exposed skin. we're going to talk about something different. we're going from fabio to don. what a disappointment. this was a storm we had a lot of hope for, thought was going to bring great rainfall to south texas. why great rain? much of texas is mired in a horrible drought, desperate for any rainfall they could get. it did look promising over the last couple days. as the storm began to get closer to the shoreline, it interacted with a lot of dry air aloft and that basically pulled the air out of the balloon so to speak and it is moving into parts of the big bend area. maybe some stray showers, but not the rain producer we had originally anticipated. what we will be seeing, though, is possibly some development farther back into the atlantic. we're watching this one area where there's about a 70% chance from the national hurricane center this might become a named storm, possibly emily in days to come. more about that coming up. t.j., send it back to you. >> i appreciate you, talk to you shortly. congress in session on this saturday. probably goes into sunday as well because they are running out of time. we will hear from leaders of both houses coming up in this whole debt debate. when i say walmart is trying to expand, you might be thinking what else could they possibly take over and expand to? well, they could be about to change the way you watch movies at home. it's 21 minutes past the hour. stay with me. it moves effortlessly, breathes easily. it flows with clean water. it makes its skyline greener and its population healthier. all to become the kind of city people want to live and work in. somewhere in america, we've already answered some of the nation's toughest questions. and the over sixty thousand people of siemens are ready to do it again. siemens. answers. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a