the sickening scene of violence and looting. and one party is paying a bigger price over the showdown over the regular debt. stand by on whether members deserve to even be re-elected. i'm wolf blitzer, you're in "the situation room." wall street following big gains after some of its biggest losses of the year. the s&p and nasdaq also rebounded. the dow on a roller coaster all day after the federal reserve's afternoon announcement about interest rates and future economic conditions. lit's bring in poppy harlow. it was wild. >> swings of 600 points. some of them hundreds of points within a minute. the dow industrials in the last hour of trading, ridesing more than 300 points. this is a very good sign. it is the exact opposite of the selloff we saw on monday. it's encouraging that we're seeing investors coming in at the end of the trading day, buying up stocks in droves, saying i'm willing to hold these stocks overnight. that is a very good sign. and just to give you some indication of the amount of money we're talk about here, today overall in u.s., we saw paper gains of $700 billion. what was critical was the fed's decision at 2:15 eastern time. when that came out, we knew that central bankers were going to keep interest rates steady at an exceptionally low level of 0 to a quarter percent. what we didn't know is what they would say. and that is they would keep the low interest rates exceptionally low until 2013, until the middle of 2013. so really for the next 24 months. here's what the fed issues. they said they expect a somewhat slower pace of recovery. they also acknowledge that the unemployment rate in this country is going to decline only gradually. and they also said the down side risks to the economy and the economic outlook have increased. they're saying the situation is worse than when they met a few months ago. something they didn't say, wolf, that we were all looking for is whether or not there would be another stimulus program for the economy. a qe3, if you will. they made no indication of that. many people say politically that's just not viable right now. that is something we didn't see. it was so interesting to watch the market today, wolf. right after the fed made their announcement, stocks fell down 60 points, then fell 200 points then bounced back in this huge late afternoon rally, wolf. >> where are we seeing people, investors put their money, poppy? >> they're putting their money in gold. it's amazing to watch gold and the converse relationship that it has with stocks. gold prices again today rising over $1,700, that record high that we hit yesterday. people believe that this hard commodity is a safety net. they're falling into gold. they're also going into bonds of emerging economies. but we are still interestingly, we didn't know if this would happen after the s&p downgrade, seeing a lot of people continuing to invest in u.s. treasuries. when you see gold, traders tell me it is not a flight to safety as people hear so much. this is a very volatile market for gold. but we'll take this market up 429 points. wolf? >> poppy, a sunny day on wall street, that's why she decided to wear yellow. thanks very much. richard, the decision by the federal deserve to announce low interest rates through mid 2013, i assume that's the major factor in causing this rebound today? >> well, yes and no. i take a slightly different point on this, all today's rally did was return us to the status quo that we were at when we had that very sharp fall on monday and then not some. if you actually look at that statement that poppy was talking about, frankly it's quite depressing. it talks about disappointing growth levels, it talks about unemployment not coming down. the overarching view on the u.s. economy and its medium term trend is not good. so that is the scenario that you've really got to focus on. forget the volatile of yesterday and today. there was no reason for yesterday for the market to fall out of bed. similarly, there's no reason for it to have rallied impact up again. you've got to keep your eye on the fundamentals to that exat the present time, wolf, and on that ground, i'm afraid the fed wasless than optimistic. put it another way. the fed ain't keeping interest rates low until 2013 because things are going well. they're doing it because they're seriously worried because there's a second leg downturn that's about to hit, wolf. >> you mean a double dip recession? >> well, no the that much. you don't have to go all the way down into two quarters of negative growth. you can simply be trudging through the trough of misery, slow growth, high unemployment, poor manufacturing numbers. now the low interest rates are unnecessary, but they may not be sufficient. the fed may have to do more to try to get growth going. and the statement, absolutely knowledged that today when it talked about today. don't let's be too concerned here. let's remain on why the market rallied back to where it was and slightly under. just after 10:00 p.m. in london, 16,000 police officers are on the streets. more than twice as many as the night before. they're trying their best to prevent new clashes. the unrest spreading over the past three days. right over the heart of london and beyond. here's what londoners are saying and seeing. >> it's just a travesty. i had no idea how it flared up so much. a full bottle of whiskey just missed her. it seriously put people's lives at risk. >> i can't believe this is happening. i'm going to give out some extreme views. this has got nothing to do with anything that happened last week. this is just opportunists break into shops and taking what they can. they're doing what they do best and that's stealing. >> obviously people are angry, frustration. everything, complaining about police and everything. >> what went on, i don't like. they're taking away from the people who have nothing. it's not justifiable to do what they've been doing. >> people are saying actually because someone got shot by the police okay, fair enough. someone got shot by the police and that's probably unjust, but that's no reason 20 ruin people's livelihoods, burning down houses and burning down shops. that's not going to stop the police from, you know, being unjust. how much violence, the images, the picture, how much of it is just random looting? how much is related to the austerity measures, the economic distress that the people of england have been going through recently? >> it's both. no doubt the disenfranchised, the poor, the youth who have got no jobs and those who believe that there is no future at the moment, particularly with so many cutbacks, no doubt their grievances are strong. 6 the criminality aspect of it. there are some very serious issues of os perty, -- prosperity, poverty. they have been egged on and the riots you have seen have largely been at the behest of those who would really have a fight over anything. and just to put this in perspective, i'm heading back to the uk tonight, i'm heading to london tonight, wolf, so i'll be able to talk to you more about that and take on that further tomorrow night. >> we'll check back with you tomorrow for sure. richard, one final question. unemployment here in the united states right now nationally at 9.1%. what is it in england? >> it's lower. anywhere between 7 1/2 and 8 1/2, depending on what your definition is for unemployment. the problem is, as the austerity measures are kicking in, so the future for job growth is very low, and there are many who will actually be losing. if if the government says they're adamantly sticking to them, then we will see more job losses and poverty in the uk. >> thanks so much. we'll check in with you in london tomorrow. it's one of the most elite and important units in the united states military. now the navy s.e.a.l.s have lost 22 of their finest. a whopping 10% of that elite unit. we'll look more at the impact of the deadly chopper shootdown in afghanist afghanistan. and a crackdown of brutal random attacks in the streets of philadelphia. stay with us. >> jack scarfty is here with "the cafferty file." more than 560 people arrested in london alone after the last three nights of violence. the city's jails are full. when you look at some of these picture, it's hard to believe this is london. this is one of the great cities in the world, not some third world outback with a ragtag government. civilized. looting, fires, rioting, attacks on police, resident says it's like a war zone and there's a carnival atmosphere surrounding these gangs of hooded youth. this all started after the shootling death of a 29-year-old black man at the hands of police in london last week. the shooting is still under investigation, but it's almost like that was the spark that ignited an explosion of anger and frustration from britain's young and unemployed. reports of kids as young as 7 years old, participating in the violence and the looting. british prime minister david cameron is recalling parliament from their vacation and vowing that tough action will be taken to stop the violence. 16,000 police officers will report for duty on streets of london tonight. critic stas ts say the cops hav missing in action but they'll be around in force this evening. there are a lot of culprits for what's going on here, including ethnic tension, the absence of law enforcement, but make no mistake, it's no coincidence that these riots are happening just as the global economy hangs off the edge of a cliff. income inequality in england, greater than any time since the 1920s, and this rioting began in one of the poorest parts in london, tottenham where unemployment is simply devastating. here's the question, are england's riot assign of things to come here? >> thank you 37 the commander-in-chief on hand today when the remains of 30 american troops were brought back into the united states. president was joined by top pentagon officials at dover air force base in delaware. the shootdown by taliban insurgents is the greatest loss of american lives in one incident since the start of the war in afghanistan nearly a decade ago. most of dead, 262, i believe, were navy s.e.a.l.s. i know you just came back from virginia beach, virginia, where you saw family members, survi r survivor, and that community is devastated. >> it is. these were s.e.a.l.s from the bin laden raid, but none killed over the unit were part of the bin laden raid. still, this is a small and elite group. and the death of 22 s.e.a.l.s from the same unit have a large impact on the s.e.a.l. forces. a devastating loss for families, friends and teammates. the 22 s.e.a.l.s killed in afghanistan were part of a unit that's elite, even among the s.e.a.l.s themselves. it's officially known as the naval special warfare development group at various times it's been called zech eed team 6. >> how hard is it going to be to fill the void? >> welsh it's going to be a challenge no doubt. >> zinke and other former s.e.a.l.s tell us they're taken from the ranks of other existing zechlt a. s.e.a.l. teams. and half washout. they go on kill missions for high-value targets like osama bin laden. >> what do they do on the battlefield that's different. >> you have to identify a threat and often times, it's at a moment's notice, in an instant. you have to determine whether or not that individual is a threat or whether he's not. and if he is, you have to engage. these individuals can shoot exact aim. they make that judgment in an instant. >> according to former s.e.a.l.s, there are about 200 members of s.e.a.l. 6. that means the crash took away about 10% of the unit. i spoke with anthony sheaffer about how the team in afghanistan could be shored up. are they going to have to shuttle guys in from other s.e.a.l. units? >> first off, they may have to degrade the mission in iraq and move more to afghanistan. the problem is things in iraq have not been as stable as people would like them to be. therefore, you're degrading that mission. the more likely scenario is they'll move one of the stand-by units and move them in ahead of schedule. >> but sheaffer and others say that carries significant risks in missions that are as dangerous as these. risks of mistakes and even possibly burnout, wolf. >> there's s.e.a.l. team 6. how many units are there? >> there's 2,500 s.e.a.l.s overa overall. even at full strength, this is a finite group of guys with a rot of stress. if they have to accelerate the deployment of now some who are in the rear coming up to the front, they could get burned out. it's a dangerous situation. >> our heart goes out to the families, the surviving family members of these s.e.a.l.s and the other u.s. troops killed in that crash. meanwhile, new dna evidence just back in the case of a notorious mystery hijacker. after almost 40 yoears have authorities finally bound d.b. cooper? and voters are sending congress an angry message. here's the message to members of congress -- watch your backs. our stunning new poll numbers. a new development in the case of the notorious missing hijacker, d.b. cooper. what do you have? >> the fbi says dna from the missing hijacker does not match that of a new suspect in the case. the testing was done after a woman came forward saying her uncle could be responsible. in 1971, a man calling himself dan cooper hijacked a plane when you he escaped after getting $200,000 in ransom. he was never found and his fate remains unknown. despite the failed link, authorities aren't yet ruling this suspect out. a texas jury has sentenced polygamist leader warren jeffs to life in prison for sexually assaulting children. he considered his spiritual woo wives. judge who heads the fundmentalist church of jesus christ of ladder day saints was charged after a 2008 raise on his ranch. he argued his fate is being persecuted. and philadelphia's mayor is calling the city's stiff curfew on young people a case of tough love. the move follows a string of flash mob attacks where teenagers choose a meeting place online, then they show up and brutally assault local residents. failure to obey the curfew could result in fines up to $500. wa walgreen's says it's looking at new options to sell health insurance. other private companies are looking to do the same. >> under the new federal laws. thanks for that. we watched as congress played a dangerous game of chick opinionopinio en. which party do americans blame the most? and "newsweek" magazine is calling michelle bachmann the, quote, queen of rage. does the cover cross the line? 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[ male announcer ] if you can't afford your medication, astrazeneca may be able to help. so many voters are fuming about the high unemployment in the united states. the jobs crisis is a huge weight on president obama and his campaign for a second term. let's bring in cnn's tom foreman. he has an in depth look at jobs, presidential politics, this is going to be a huge, if not the biggest part of the campaign. >> absolutely. if you put aside the poll weers looking at and say what's behind the polls. i think in a lot of cases, if you look at how presidents have fared when they've looked at re-election, and that's all we're looking at is re-election years, all these president, going back many decades, look at this trend that appears here. in every case where the trend is down in unemployment, re-election happens. not absolutely, but very close. eisenhower, johnson, nixon. all of these in a row. the trend was down they got re-elected. ford was not re-elected, but the rate was much higher and remember, this was the back wash of nixon. it's not quite like any other re-electioned by. carter, unemployment went up, he was not re-elected. reagan, unemployment back down, re-elected. even though the number is high compared to what you saw right here. unemployment up for george bush, not re-elected. down for clinton, re-elected. down for bush, re-elected. so what happens now to president obama as he faces all of this. and look at this trend. you've seen this from all along. this is what happened he came into office. here's the point where he went into office. you know what happened after that, right? up more. and here's the problem. it got up here to the 9%, 10% level and it has stayed there. a little bit up, a little bit down, but by and large, nothing has changed. that might be something that is going to really haunt him. if you look at another president who had big numbers like this, ronald reagan came into office and look what happened with his unemployment, way up. to 11%. but then look what happened. down, down, down, and the trend went a different way. so it's not so much the absolute number as the trend line that seems 20 bother voters when you look at that. can he find a way through? by targeting certain state where is he has some difficulties and taking advantage of them? maybe. but here are key states. florida, ohio, iowa, nevada, all with red arrows going up. it's down in minnesota, but minnesota, which is also a key state wasn't that bad to begin with. but look at michigan. it's down there, down to 10.5%, still above the national average. and down from twha? -- what? >> down from 11.3%. add up all these number, wolf, and this may tell you an awful lot about what's behind the polls and why president obama has to keep looking at the unemployment rate because it's almost a sure preduck tor of whether or not a president can be re-elected. >> issue number one, jobs, jobs, jobs. after a week of bitter fighting over the debt ceiling crisis, americans are making their voices heard and lawmakers might not want to hear what voters have to say. we have some surprising poll numbers. what are you seeing here? >> wolf, a little bit more than one year to go from next november's election, and it's really starting to look like the public is in a foul mood when it comes to the congress. >> incumbents watch your backs. the voters are angry. the most stunning number in our new cnn orc poll is the percentage of people who say their member of congress deserves re-election, only 41%. 49% said their member of congress does not deserve reelection. thgs the worst results in two decades for incumbents. so why are people so angry now? this m