Stocks Fall On Debt Ceiling Fears; Shutdown Standoff: DC Still Deadlocked
ERIN BURNETT, CNN HOST: OUTFRONT next, the markets tank again. Is the shutdown debt ceiling fight about to be as catastrophic as Obama administration officials are saying? A reality check. And then two terror raids with two very different results. What caused a Navy SEAL team, the most elite in this country, to abort its mission? Has it changed the way the United States is fighting terror? And a nine- year-old sneaks onto a plane headed for Vegas without a ticket. Where was he going and why? And with all the TSA security that we all go through, how in the world did he get away with that? Let's go OUTFRONT. And good evening, everyone. I'm Erin Burnett. OUTFRONT on this Monday night, we begin with breaking news. Stocks fall as the debt ceiling deadline looms. The government shutdown continues. No there is no end in sight. The Dow Jones Industrial average hit a one-month low today, yes, still significantly after the year, an important caveat. But it fell nearly 1 percent. Some say that could get a lot worse as this deadline approaches. So what happens if Congress fails to meet the October 17th debt ceiling deadline?</s>BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: Economic catastrophe.</s>UNIDENTIFIED MALE: Calamitous.</s>UNIDENTIFIED MALE: Very dangerous.</s>UNIDENTIFIED MALE: A nuclear bomb.</s>UNIDENTIFIED MALE: Cataclysmic.</s>BURNETT: Nuclear bomb, cataclysmic, Armageddon, you've all heard those words again and again and again. Brent Wilsey is president of Wilsey Asset Management. Brent, I mean, obviously, this is a bad thing. Nobody wants it to happen. Downgrades could happen for this country. I mean, there's a lot of negative, but cataclysm, Armageddon, all of these words, are they accurate?</s>BRENT WILSEY, PRESIDENT, WILSEY ASSET MANAGEMENT: You know, I'm sitting here listening to that. I'm thinking, my gosh. That's so farfetched. That makes no sense to me at all. There could be some problems, but not to that magnitude. Gosh, we're the strongest country in the world. Yes, if there's some chance we do default, there could be some problems, but no nuclear war, no Armageddon. That sounds terrible. That's not going to happen.</s>BURNETT: What do you think is the most likely scenario? I mean, part of it is, as you say, everyone knows the United States will figure it out. Where else are people going to put money? The interest rate has actually gone down.</s>WILSEY: Right. And Wall Street's doing very well. We've got to look at businesses doing very well, strongest balance sheets ever. Washington is, you know, having some problems. We will come up with a solution. And the market even now is more forgiving than it has been in the past. Wall Street's feeling pretty good about a solution. It's going to happen maybe, just a slight chance of passing the October 17th deadline. If it happens, the world's not going to come to an end, but what happens to negotiations. I'm going to wait till the very end to make a deal with you. That's what's happening. I think Wall Street's feeling pretty good that we will have a solution by October 17th.</s>BURNETT: All right, well, Brent Wilsey, thank you very much, sort of a dose of reality there which just seems very much needed because yes, this is important. It's a crisis. It shouldn't happen, but Armageddon, cataclysm, these perhaps are words which are not accurate. Well, our second story OUTFRONT, a lot of people are saying John Boehner should just call a vote. It's just here's the money. There's no Obamacare attached. There is no what, we hate the alligators attached. Boehner says no way. Not only does he not want to, but he says he does not have the votes to put this in front of the House. Today President Obama says prove it, John. So who's right? By CNN's calculations at least right now John Boehner is the winner, ding ding. Obama at least three vote short tonight, but that could change. It could change very fast. Dana Bash is on Capitol Hill. Dana, is either side about to budge?</s>DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Erin, it tells you everything you need to know that when the White House signals even the slightest wiggle room, even if it's not on anything Republicans are demanding, it's taken as potential news and parsed. But that's what happens when two sides are so entrenched on twin economic crises.</s>BASH (voice-over): The government has been shut down since last week. The country could default next week and the president and the House speaker spent the day talking past each other.</s>BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: The reason that Speaker Boehner hasn't called a vote on it is because he doesn't apparently want to see the government shutdown end at the moment.</s>REPRESENTATIVE JOHN BOEHNER (R), HOUSE SPEAKER: The president had us all down at the White House last week only to remind me that he was not going to negotiate over keeping the government open or over the looming need to increase the debt limit.</s>BASH: Let's start with the debt ceiling deadline just ten days away. The White House signalled some flexibility on timing. The president's spokesman said they prefer to raise the dead ceiling for a year but could accept shorter.</s>JAY CARNEY, WHITE HOUSE PRESS SECRETARY: We're not saying that that can be any particular length of time.</s>BASH: But timing isn't that relevant if the president insists he won't negotiate anything as a condition to raising the debt ceiling.</s>PRESIDENT OBAMA: We're not going to negotiate under the threat of further harm to our families.</s>BASH: And the House speaker says any hike in the debt ceiling must include talks on issues directly related to the nation's debt like entitlement reform. In an attempt to make the president look unreasonable, some 20 times Sunday John Boehner said all he wants is a conversation.</s>BOEHNER: We are interested in having a conversation about how we open the government and how we'd begin to pay our bills. It begins with a simple conversation.</s>BASH: On the government shutdown, seven days in, still no end in sight. The president taunted the speaker for refusing to have a vote to reopen the federal government.</s>PRESIDENT OBAMA: If Republicans` and Speaker Boehner are saying there are not enough votes then they should prove it.</s>BASH: That in response to Boehner insisting the votes are not there.</s>BOEHNER: There are not votes in house to pass a clean</s>CR. BASH: But some of Boehner's rank and file Republicans disagree. (on camera): Do you agree with that?</s>REPRESENTATIVE CHARLIE DENT (R), PENNSYLVANIA: With respect to the speaker, I do not agree with that. I believe that if a clean C.R. were put on the House floor that it would likely pass more than 218 votes. I believe it would pass.</s>BASH (voice-over): Two hundred Democrats trying to call Boehner's bluff signed a letter demanding a vote on a no strings attach bill to fund the government. That would mean 17 Republicans would have to defy their leadership.</s>BASH: CNN has done our own count on whether a clean bill funding the government would pass. Our team identified 200 Democrats and 14 Republicans who have publicly stated they would vote on a clean bill. But as you heard from House Republican Charlie dent, there are likely more Republicans who would vote yes if given the opportunity, but they are not going to take the political risk of saying so. Multiple sources say the John Boehner has no intention to bring that clean bill to fund the government. One told me that the conservative backlash would be God awful. Another said that would be the end of his speakership -- Erin.</s>BURNETT: All right, Dana, thank you very much. The end of his speakership or God awful, former adviser to Bill Clinton, Paul Begala, executive editor of "The Daily Beast," John Avlon and the former spokesman for House Speaker John Boehner, Terry Holt. So Terry, let me start with you because you heard Dana talking about John Boehner, whether he's going to bring this to the floor. You know john boehner. What do you think is in his head? Would he bring it to the floor three votes short? Would he bring it if he had all the votes or would he not?</s>TERRY HOLT, FORMER SPOKESMAN FOR REPRESENTATIVE JOHN BOEHNER: Almost every media outlet over the past 24 hours has tried to count noises in the House of Representatives, and I think there are probably two guys in the house laughing at this, one is the majority whip, and the minority whip, and both of those guys know that nobody's got a perfect count, not even them. I think this is the president doing more brinksmanship and the House is going to work its will. Boehner's saying something pretty simple here. We've got to pay our bills. We've talked about entitlement rye form. More spends cuts. The president doesn't want to do anything and the House want to try and control spending. It's pretty simple.</s>BURNETT: The way I see it is nobody wants to compromise on anybody. Compromise is a word that's no longer used in Washington. It's become principle.</s>JOHN AVLON, EXECUTIVE EDITOR, "THE DAILY BEAST": Compromise is the new third rail of politics in Washington. It's a sick situation. I mean, this isn't a game as the speaker said earlier today, but if you could pass a clean resolution and end this tomorrow, if you're only three votes short, why not put it forward? They could whip those votes if they wanted to. The reality is everyone has invested in the brinksmanship right now because the real deadline is now the debt ceiling. You're seeing a lot of conservative voices do their whole debt ceiling denial dance saying it's not a big deal if we go over the cliff. Watch out, folks, this is getting more serious.</s>HOLT: The left is saying it's a cataclysm saying the world is going to end. This presidency has become the Chicken Little presidency where if we don't do it his way we're going to go straight to h-e double toothpicks. Give me a break --</s>BURNETT: Paul, let me ask you though because it's interesting, you know, we just a market expert. Obviously, there are experts who think that using words like cataclysmic are not appropriate. That investor just said no. That those words are hyperbolic and not fair, it raises the question, that's on the debt ceiling, but what about the shutdown? There are serious problems with the shutdown and serious injuries happening to a lot of people. But you know, the media notices the Amber Alert web site isn't working, it goes back up. Ninety percent of the civilian Department of Defense employees are now back working. If the government was really shut down, there wouldn't be money to do all of this, so it does create this atmosphere of maybe they oversold this. It was supposed to be the end of the world, and it's not. So maybe the debt ceiling won't be the end of the world.</s>PAUL BEGALA, CNN POLITICAL CONTRIBUTOR: I have to defer to experts on this. I saw Warren Buffett saying it would be a nuclear bomb. I've never heard the guy you interviewed --</s>BURNETT: The thing is, if you're not going to put it in Treasuries, you've got to find someplace else and right now on this planet, there really isn't anywhere else.</s>BEGALA: Well, pass the debt ceiling. Let your kids play baseball in the middle of a crowded street. Maybe they won't get hit by a car. It's preposterous, crazy, walking into a risk that we don't need to have. In both worlds, there is a four-year phrase bond is your bond. John Boehner promised, if Reid would do that, he would put that bill with those Republican spending cuts on the floor. John Boehner has reneged. He's gone back on his word. That's a terrible thing to say about him, but it's true.</s>BURNETT: This whole Obamacare issue, we actually caught up with Kathleen Sebelius, Health and Human Services secretary, asked whether the health care law should be delayed because there have been some glitches. There's been some coverage but not a lot because the whole coverage has been about the shutdown.</s>KATHLEEN SEBELIUS, HEALTH AND HUMAN SERVICES SECRETARY: Actually, it shouldn't be delayed at all. We have a 26-week open enrolment period. We're thrilled with the interest, the call center is up and running. The web site is getting better by the day. Wait times are way down. So we are thrilled with the interest that people are showing.</s>BURNETT: Our producers called today, John, to register on the national line. We got through in a couple minutes so there wasn't any problem. I mean, what if voters start seeing Obamacare working? I mean, it only needs to work a little bit to be perceived as better than Republicans have portrayed it.</s>AVLON: Yes, that's one of the dangers of apocalyptic rhetoric in general, right? If something isn't the end of civilization people think maybe this isn't so bad. The debt ceiling is an objective, you know, cliff. And, you don't need the horsemen of apocalypse galloping down the Main Street. It is a self-inflected wound that would absolutely kill our credibility as a country. So it's nothing to play chicken with. You've heard the chorus saying it's nothing but kabuki. That is dangerous stuff.</s>BURNETT: I wish those who take it seriously would talk like you do though instead of using those hyperbolic words because as you point out, if it's not a nuclear bomb, people say, it's not that bad. And that would be unfair. All right, thanks very much to all three of you. Appreciate it. Still OUTFRONT, we have more details about why a Navy SEAL team aborted a mission to capture a terror suspect? Does it change the way the United States fights terror. We have a special report in exactly what happened there this weekend. Plus the latest from the joyride that resulted in a confrontation between bikers and a driver of a SUV. There were cops there, multiple cops in the group, but they didn't do anything? And then a monster truck lost control with deadly consequences. We'll show you the video of exactly what happened here. You've seen this on TV and wondered could it happen, it did? And then the "Breaking Bad" ending you did not see.