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and this is an ipad for $69. the big mistake that had people thinking they had gotten the bargain of the year. i want to start with another apology today. this from rupert murdoch. responding to the hacking scandal from the u.k. what this shows you, this tape, it is murdock going into a meeting with the family of the murdered british teenager. it was that teenager's hacked voice mails that sparked the outrage into the scandal. listen. >> shame on you. shame on you. shame on you. shame on you. >> mr. murdoch, will you tell us what you said to the family? >> if you just keep silent f...

somewhere chairman mao is smiling. president obama went on record of his account of how last night's turbulent meeting ended. you'll recall house majority leader eric cantor said the president sharply warned him not to call his bluff said "i'll see you tomorrow" and walked out of the cabinet room. >> no. look. at the end of the meeting after we'd already met for a couple of hours, what i said to the group was what i think the american people feel, which is we have a responsibility to do the right thing. we shouldn't be overly partisan. we shouldn't be posturing. we should solve probl...

a democratic source telling it differently, saying the president challenged mr. cantor for what the source called" talk out of both sides of his mouth". they'll be back at the table tomorrow. the stakes could not be higher. moody's today put america's credit rating on review hinting at a possible rating drop. ben bernanke says defaulting on the debt would be catastrophic. jessica yellin is at the white house with what her sources are telling her. what have you heard from these differing accounts? >> reporter: democratic sources say that bottom line is that the president was schooling...

bare bones bargain. if not, payments to critters, bill payments, you name it, there is not enough income to cover all that. every month we come up $125 billion short. if we cannot borrow to bridge the cap, 40% of the monthly obligations could not be paid, and that could include social security checks due to go out on august 3rd. the stakes we just laid out are monumental, so both sides have to give ground and risk their jobs for the good of the country. what is so hard about that, right? joining me with their insights on conflict resolution are cnn contributor, pete dominic, and fami...

hammered with angry questions. egyptians take security into their own hands. even some children are armed with illegal guns. the revolution giving way to a wild west mentality. i'm wolf blitzer. you're in "the situation room." the united states is another day closer to a possible default on its debts. 19 days before the deadline there's no sign that political leaders are any closer to preventen an unprecedented and frightening train wreck. right now members of congress are in the fifth straight day of talks aimed at raising the debt limit. the frustrations and tempers have been l...