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central bank and the fed would have to get further involved in this economy. now, you know all week we've been talking about rick perry saying it would be treasonous for the fed to get involved. while his comments may have been misinformed it represents a view in america that fed should do no more work in stimulating this economy. so now we have investors saying we need more investment. you got the morgan stanley saying we do. and you've got a lot of people in america saying don't do it. so we're at an impasse. investors said let's get our money out of there. they put it into bonds a...

talking about. this was actual fact. we started this morning with slow bad markets out of europe. then before the markets opened we got this report from morgan stanley which talked about slow growth around the world, telling us things we already knew. but they said we're on the pr s precipice of a recession. they also cited errors in policy making here in the united states and in europe, and they said it's likely that european central bank and the fed would have to get further involved in this economy. now, you know all week we've been talking about rick perry saying it would be trea...

"aftershock," which is now out in paperback. ali, what happened today? >> a lot of things happened here. we had a situation where it's not just fear we've been talking about. this was actual fact. we had -- we started this morning with -- with slow bad markets out of europe, then before the markets opened, we got this report from morgan stanley which talked about slow growth around the world telling us things we already knew. but they said we're on the precipice. they didn't say we were there, they didn't say it's the base case, but they said we're dangerously close. also cited error...

europeans and the americans might have to have more central bank intervention into the markets and also said that there have been policy decisions in europe and the united states that have been poor, and then on top of that, that was enough. that was already bad, brooke. then we got some economic reports right here in the united states. slowdown in housing, slowdown in manufacturing, and, you know, not a great report about new jobless claims. basically it all piled on. people ran out of stocks and back into -- into, you know, safer investments, but, really, it all started in europe. ...

Long-term economic recovery if you start taxing wealthier americans? >> no, the risk is if we don't. we have a $14 trillion economy that has only $13 trillion a year in aggregate demand because we put lots of money into the hands of the rich and they don't spend it. how many yachts can you buy? we have a chronic deficit just to keep the economy going because we've given tax cuts to the rich. when the top tax rate was 40% under president clinton we were seven year as way from paying down the entire federal debt. and since these tax cuts for the rich have gone into effect we've had endless and g...