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Failure triggers a 1.$2 trillion cut in spending on everything from military to medicare to seniors by 2013. the u.s. credit rating also on the line for the second time this year. another down grade could punch holes in our economy by sending interest rates higher on home loans and credit cards and other items. we are live in washington with the news. molly, the question is is the supercommittee about to make the super decision to quit? >> hi. it appears so. they are discussing how to bring their efforts to an end without a deal and that likely will come sometime tomorrow. earlier today one de...

Concerned in the '70 hes. i thought it would lead to ending spending and debt and that's where we are. i think we have to take this very seriously. >> do you think you can knock a trillion dollars off the top? do you think you can do it within year one or two years? how long do you think it would take you to say, wait a minute? because right now we borrow 40 cents of every dollar. we stay in 2.2 and pend 3.7. it's unsustainable. how quickly do you think you can knock off $1 trillion in spending? >> my program says in one year but you have to be willing do it obviously and you have to think tha...

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Liesed the possibility of a down grade. at the end of the day, there is nothing that hasn't happened that creates new information about the quality of u.s. treasuries. it is a blow to confidence, but it is not really telling the market anything we don't already know. >> as far as the things we are hearing about the interest rates going up, mortgage rates going up, what can you tell us about that? is that a legitimate worry right now? >> i think in the medium term, it is definitely a concern. we are trending toward higher borrowing costs, not only for the average consumer, but also for the u.s....

Remained fairly low. that is what we have seen over the last week. >> as far as the other two rating agencies, do you think they will also go ahead and down grade, or is it possible they will not do that? >> it seems unlikely at this point. there are a couple things going on here. there isn't really an issue about u.s. governments being able to generate the revenue to make the debt payment. it is fairly clear we can do that. what this reflects, the down grade from s&p is they are concerned about the level of political dysfunction and that is create something problems. but there is variation in...