all nominees release their first single or album at least 25 years ago. hard to believe, a fact that's causing me to have a full-on existential crisis right now. time flies. make sure to follow me on twitter @jaketapper. i'll be back at 8:00 p.m. special, for a live cnn special, shutdown. now over to wolf blitzer in "the situation room". >> thank you, jake. breaking news, hours left until a debt disaster, lawmakers reach a deal to reopen the federal government, stave off default, but only for the time being. we may as well start counting deal is only good for a few s months. americans are paying a price, an extraordinary amount of economic damage has already been done and a cloud of uncertainty still hangs over the future. so will it all happen again? i'll ask a key member of the house republican leadership. i'm wolf blitzer. you're in "the situation room."

there's some important breaking news coming into "the situation room" right now. even with lawmakers apparently poised to temporarily reopen the government, extend the debt ceiling, americans have already paid a huge price for this government shutdown. standard & poor's now says, it estimates that the shutdown has already taken, get this, $24 billion out of the u.s. economy and warns that a default will roll back all the gains made in the recovery, put the economy right back in recession. doesn't look like there's going to be a default right now, but once again, in february, that whole issue could be decided. once again, this whole issue could be revived. this standard & poor's estimate, by the way, it already says, based on what has happened and the uncertainty of what will happen in january, when there could be another government shutdown, or february, when the debt ceiling once again has to be raised, based on that uncertainty, they now estimate,

they now estimate that the u.s. economy in the fourth quarter will no longer grow at 3%, which is what they earlier predicted. it will now have a fourth quarter growth estimate of closer to 2%. that is a significant potential setback, if this estimate from standard & poor's ratings services turns out to be true. pretty ominous assessment from s&p right now. let's bring in our chief congressional correspondent, dana bash. dana, let's scene the right now. house republicans, they resisted a deal. a clean bill for 16 days. now speaker john boehner says he won't block, effectively, what has emerged as a clean bill. so, what's going on? what's the latest? walk us through what we can expect the next few hours? >> well, the next few hours, we expect the senate to actually hold a vote, and then the house to follow suit, some time before the end of the night. but what is so fascinating is to watch the way this is playing out, within the republican

caucus specifically led by john boehner. the way a meeting that went on this afternoon was described to me, it was almost as if it was a general going in to talk to troops who knew they were defeated, trying to buck them up, even though they knew that this has, that they have lost a war. and that is really actually how john boehner described it. not just in private, but in public, on a radio show earlier today. >> we've been locked in a fight over here, trying to bring government down to size, trying to do our best to stop obama care. we fought the good fight. we just didn't win. >> and what is so interesting, also, wolf, is that i'm told that he and other republican leaders sat this a room, was a pretty short meeting, only about 20, 25 minutes, and urged all of the rank and file republicans to vote yes on this deal. and it seems, just talking to some even the more conservative members, it sounds like some might be taking him up on that

plea. now, why is this important? because with regard to the perception of john boehner's leadership, if he can get a majority of the majority of republicans to vote yes, which he doesn't need, democrats are going to help him out here, but if he can do it, it will certainly be a different kind of narrative with regard to how john boehner is seen inside the republican party, particularly among his troops. >> it would be almost a vote of confidence if a majority of the republicans in the house of representatives voted in favor of what the senate is expected to do in the next few hours. what about ted cruz, the republican senator from texas? he's not going to stand in the way, no more procedural obstacles to prevent a vote on the senate floor. what are folks, republicans, specifically, in the house, others saying about ted cruz? >> well, certainly, he has his big supporters, and enough supporters in the house to have driven the house along with his strategy for 2 1/2 weeks, to try to attach defunding obama care to the spending bill.

but in his own senate, he has so many people who, within his own party, who are just surprisingly, openly hostile towards him. in public and in private, in a meeting that senate republicans had earlier today, once again, as they do in so many private meetings with him, they stood up and really gave it to him, saying, what you've done has really hurt us, will hurt our chances in some of our elections. listen to an exchange that i had with him about this sentiment. >> as you well know, you have a lot of fellow republicans really downright angry at you. here we are, already three weeks later. the strategy that you started out on, to defund obama care as part of funding the government, they never thought was going to work, because the votes aren't there. and here we are, reopening the government after a lot of bruising, political warfare internally, and you've got nothing for it. >> well, dana, respectfully, i disagree with the premise of that. i think we have seen a

remarkable thing happen. months ago, when the effort to defund obama care began, official washingtons scoffed. they scoffed that the american people would rise up, they scoffed that the house of representatives would do anything, and they scoffed that the senate would do anything. we saw, first of all, millions upon millions of americans rise up all over this country, over 2 million people signing a national petition to defund obama care. unfortunately, the senate chose not to follow the house. and in particular, we saw real division among senate republicans. that was unfortunate. i would point out that had senate republicans united and supported house republicans, the outcome of this, i believe, would have been very, very different. i wish that had happened, but it did not. but it does give a path going forward. >> dana, strong words from ted cruz. he's not backing down at all, although he's not going to filibuster or do any other procedural moves to try to block this upcoming vote on the senate

floor. let's not forget, still has to be a senate vote. got to pass in the senate and then in the house of representatives before it goes to the president for his signature. let's see how long all of that takes. dana, thank you. president obama certainly did dig in his heel over this fight, involving spend and the debt. he's praising congress for finally reaching this compromise. let's bring in our senior white house correspondent, brianna keilar. what is the white house saying? have they declared victory? >> wolf, they're being careful not to. i think that white house officials feel, i would say, happy that they feel like the tea party contingent of house republicans may have been weakened in this fight, but they're very careful not to be seen as sort of spiking the football. here's what jay carney said this afternoon. >> there are no winners here. we said that from the beginning. and we're going to say it right up to the end, because it's true. >> now, more than anything, i think the president feels like this whole thing has really been a waste of time, wolf. i'm told that between syria

really taking up a lot of time and a lot of oxygen and then moving into this debt ceiling battle, that he's been very frustrated. he hasn't been able to push some of this has domestic agenda items, for instance, immigration reform, which you've heard him talk about yesterday, so it's been frustrating for him, for sure. >> what about the white house -- what are they saying about the possibility, and it's a very real possibility, in january and in february, it's only a few months away, we're going to go through this process one more time? >> that's why the white house, you asked them about that, here they are, in just another moment, and they say that's what this strategy was all about. really trying to enforce two of these tea party republicans that they weren't going to get anything out of president obama. closer to the election, white house officials tell us they think republicans would be even less inclined to pick this fight. because here, clearly, the white house was trying to send a message. even though in the end, wolf, they capitulateded in a minor way on in income verification

for obama care, it was something that was negotiated in the senate. so in is a way, it was president obama and the white house saying, we may, through senate democrats, negotiate something with you. senate republicans, more moderate republicans, when it comes to tea party republicans, and even house gop, who maybe don't really identify with the tea party, but are swayed by them, we are not going to negotiate with you. so really to kind of push that agenda is to do so at your own peril. their message to those republicans, in the end, all you're going to get is a lot more blame than us. >> brianna keilar over at the white house, thanks very much. i assume at some point, we'll also hear from the president, but first the senate's got to pass the legislation, the house has got to pass the legislation, it's got to go to the president's desk, but i assume we'll hear from the president sooner rather than later. and let's not forget the breaking news at the top of the hour, the standard & poor's rating services estimates that during the 16 days of this government shutdown, the u.s. economy has already lost $24

billi billion, for this government shutdown so far. americans already have seen major economic damage from this shutdown, but does this deal just put a temporary bandage on all the bleeding? how much damage have republicans inflicted on themselves? can the gop make a comeback? plus, president obama calls the glitches, the problems plaguing the obama care websites unacceptable. will an end to the standoff in washington improve things? stay with us. customer erin swenson ordered shoes from us online but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics.

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nthat's why they deserve... aer anbrake dance. get 50% off new brake pads and shoes. we're waiting for a senate vote. should be fairly soon, we're told. we're not exactly sure when, but there will be a vote in the united states senate. you're looking on the left part of your screen, the floor of the u.s. senate on this compromise worked out by the two leaders of the senate, mitch mcconnell, the republican leader, harry reid, the democratic leader, the majority leader. as soon as that vote starts, of course, you'll see it live here in "the situation room." and then the legislation will go over to the house of representatives. house of representatives will have to pass exactly word for word what the senate passes without any changes. and then it will go to the president for his signature. we anticipate all of that will happen in the next few hours or so, but we'll wait, we'll see.

there always, potentially, could be some sort of setback. you'll see what happens, you'll see it here first right here on cnn. wall street, though, already celebrating today. the dow jumped 205 points. the nasdaq and s&p 500 were also up by more than 1%. but by shutting the government for weeks, pushing the debt crisis to the brink of default, lawmakers have already inflicted some serious damage to the u.s. economy, to the country as a whole, even if this fix is passed later tonight, it's also, remember, only temporary. it goes to january or february. so could the bleeding start all over again? let's discuss with our chief business correspondent, christine romans, cnn's richard quest, who's joining us from new york, and diane swan, chief economist for mesereau financial. she's joining us from chicago. guys, thanks very much. let me get you on the breaking news, christine. first of all, s&p saying 15, 16 days of this government shutdown has already cost the u.s.

economy $24 billion, for, what, $24 billion, and they've now downgraded the estimate of the economic growth in the fourth quarter of this year. they earlier thought it was going to be 3% economic growth. they now think, because of the uncertainty of what's about to happen in january and february, and people are going to be reluctant to hire, big business or whatever, they now think it could be closer to 2%. that means jobs. that means a lot of money. >> it does. and when you're talking about jobs, 2% economic growth is not going to be churning out a whole lot of new jobs. and when you talk to business leaders, they are really worried about these budget battles, one after another, wolf. even though we've gotten past this countdown clock, there will be others ahead. when you look at $24 billion, for example, think of that has a natural disaster, hurricane shutdown, i've been calling it, right? self-inflicted, self-inflicted. washington made this mess. you can get over that kind of economic damage from a natural disaster, so to speak, if the economy, on the other end, is

strong and vibrant and you have some clarity. we don't have that yet. so washington, don't pat yourself on the back quite yet for getting through this crisis that you made, because you have to show the world that you're going to govern and run a business a little bit better. >> kicking the can down the road, not the greatest financial policy right now. richard quest, yesterday, 24 hours ago, exactly, fitch, they put a negative rating watch on the u.s. they didn't downgrade the u.s.'s aaa rating, but it was a rating watch negative, as they called it. now s&p saying what i just reported, $24 billion already wasted, in effect, by this government shutdown, economic growth, they think, going from 3% in this quarter to 2%. these are ominous signs out there, despite all the happiness, that at least there's not going to be a default right now. >> oh, no question that there's happiness there's not going to be a default. but that's merely basically saying, delight and extraordinary happiness that the house didn't burn down. but you've still got singed

timbers all around you and the whole thing is rather creeky and shaky. because you are going to be back here in january and in february. now, as for this $24 billion that they say it cost, well, some of it may come back as pent-up demand in the next quarter. but the real worry and risk here, and dan will know this and be able to talk about it, most of it is gone, it's lost, it's not coming back. economic growth, this is not the hurricane bounceback that you sometimes get. this is not pent-up demand that will come back. it's gone forever in many cases. and what's worrying is that if you have this again in the fourth quarter and you have worry about it into the first quarter, you're now starting to not only have much slower growth in the u.s., well below trend, but you're transmitting that slow, low, miserable growth to the rest of the world. and that's what the u.s. is going to do. >> let me get diana to this conversation. explain in understandable terms,

you're an economist, what it means if there's only going to be 2% growth in the fourth quarter, the last three months of this year, as opposed to 3% growth. what does that mean for jobs, what does that mean for incomes, what does that mean? >> actually, i have it even weaker than that, i have it at 1.7%. and i think the important issue is, we're talking about an economy that's no longer bringing down the unemployment rate for the right reasons, which we've already seen. it's not fallen for the right reasons, was an unemployment rate that might rise over the course of the quarter. and i think that's very important. you're also further marginalizing people who have lost jobs. they're being delayed even further. we know that from the beige book today, from the federal reserve, that hiring was delayed because of both the affordable care act and uncertainty about that, and also uncertainty about the shutdowns. there was delays because of that. also some retailers i talked about today, the motor vehicle traffic, the traffic in showrooms has fall ten to a dribble. we've seen mortgage applications

for new purchases are down 1% from a year ago. and as richard pointed out, without that self-feeding momentum, and also christine, we don't have the shock absorbers we once did to absorb this. and that manes we can't recoup or catch up on many of the losses we've had. >> i guess it's fair to say, too bad they didn't get a deal for a year or two as opposed to just a few months. on the other hand, it's better they got a deal for a few months than nothing, because it would have been a real disaster as of thursday, friday, saturday, certainly within the next week or so if they wouldn't have done this deal. let's see what happens on the senate floor. guys, thanks very much. christine romans, congratulations to you as well. christine romans is our new chief business correspondent for cnn. excellent work. we're waiting for this senate vote on this compromise debt and spending deal. there you see barbara boxer, she's speaking on the senate floor. once that vote begins, you'll see it live here in "the situation room." and sobering words from one of the most powerful member of

the senate, john mccain calling this whole ordeal, and i'm quoting him now, one of the more shameful chapters he's seen. plus, my interview with a key house republican. is he prepared to vote for the senate's proposed deal to end the government shutdown, to raise the nation's debt ceiling? that's next. stay with us. you're in "the situation room." hing, helicopters buzzing, and truck engine humming. sfx: birds chirping sfx: birds chirping just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away.

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i think it's obvious that we are now seeing the end of this agonizing odyssey that this body has been put through, but far more importantly, the american people have been put through. it's one of the more shameful chapters that i have seen in the years that i have spent here in the senate. >> sobering words from the longtime senator, john mccain, calling this whole ordeal, you just heard him say it, a shameful chapter. as we're waiting for a senate vote on the compromise debt and spending deal, let's bring in our republican congressman from oklahoma, representative james langford. he's the chairman of the house republican committee. congressman, thanks very much for joining us. >> thanks. >> so you just came from this meeting in the republican caucus. you heard the speaker tell everybody he hopes they'll vote

for whatever emerges from the senate. how will you vote? >> i'm still waiting to actually read the bill itself. the bill tax has not been available yet. we have a few outlines of it and some notes of what's in it, what's out of it, but no one has seen the actual text yet. so i'm looking forward to get a chance to actually read that. i understand it's not very long. 30 or 40 pages or so, but i'm looking forward to actually going through. >> if it's the general outlines, as all of us have been reporting and members have been discussing, basically kicking the can down the road until january or february, getting house senate conferrees to discuss at least the budget over the next few months by mid-december, hopefully coming up with some sort of agreement, is that good enough? >> i'm going to have to take a look at it, wolf. i can tell you, there's a lot of support for it in the house, to be able to say a couple things. one is to get this resolved. the other is we've got to get a budget conference, we've got to resolve our differences. there's been a push from the beginning to say, we've got to actually sit down and negotiate things together. if we don't sit down and negotiate things together, we're never going to get this

resolved. this standoff for the last 2 1/2 weeks has been about the president saying, we won't meal with you until some other time, and us saying, all we need to do is negotiate this. we still have a rising debt, still have significant issues with the affordable care act, not just what we're saying, but what our constituents are saying about hospitals, insurance companies. there are real problems that are out there and i know everyone wants to wash over that and say it's just partisan bickering. and two, you talk with people who are affected and we have a real problem. >> you see a similar fight erupting in january or february? >> i certainly hope not, obviously. this was never the intent. this has all been the challenge, to be able to walk through this and say, how do we deal with these issues? the budget conference is to end by the middle of december. we actually have the cr that extends until the middle of january to give us some buffer time to be able to get this resolved. the interesting thing about this, i actually have a bill that i've had for the last three years that prevents government

shutdowns, that does an automatic cr with across-the-board cuts to incentivize appropriations, so we never have this issue. so i've never been supportive of shutdowns. i think it's the wrong way to be able to run government. hopefully we'll be able to fix this in the days ahead. >> looking back, was it a blunder to link the government shutdown to the issueov of obam care? >> that's a tough one, wolf, in practical terms. as we approach the october 1, the beginning of the fiscal year, obviously the beginning of the exchanges for the affordable care act, we spent all of august and september with constituents, just bombarding us, saying, they say there are major problems, they want us to be able to address those. it all came to a head in that time period. what's interesting is, our office is flooded with calls saying, they want the shutdown to end, but it's just as flooded with calls saying, oh, i've never seen esigned up until now and i just found out my insurance is $200 more a month. there are all kinds of issues

that are flooding to our office, the farther this is gone, the more people don't like the shutdown, but the farther it's gone, they're finding out that practical effects on their life and livelihood. >> if you vote, excuse me for interrupting, congressman. but if you vote in favor of whatever emerges the from the senate, you fearful that you could be primaried next time you seek re-election? >> i think the people in my district want us to be able to resolve this. they also want to see the long-term debt resolved and start to make progress in the affordable care act. it's a combination of all those things. tive got to be able to look and see, are we making progress on long-term debt. you mentioned fitch earlier. fitch in 2011 did not downgrade us, specifically because in our last debt ceiling fight, we actually came to an agreement that has reduced spending and has started to balance out some of that. that didn't happen in this one. so while fitch didn't like the partisan bickering and neither do we, they also want to see some resolution. that's not occurring this time period. we're just as concerned about a

downgrade from fitch when we don't resolve problems as when we just have problems. >> congressman, thanks very much for coming in. >> you bet. >> we're waiting for this senate vote to come up. barbara boxer, the senator from california, she's speaking on the senate floor now. once the voting begins, you'll see it live here in "the situation room." after it passes the senate, we assume it will pass in the senate, it will go to the house of representatives. we'll see what happens there. the house speaker, john boehner, by the way, at least right now he's surrendering this current fight, but can he stop tea party supporters in his own republican caucus from waging a similar fight in january or february? all that coming up. first, this "impact your world." >> hey, there. i'm kellie pickler. i come from a military family, i've always had a great deal of respect for our servicemen and women. work a lot with the uso. i love working with them and we've been able to go and do so many tours overseas. >> where are my girls at?

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standing by for a critical

vote on the floor of the united states senate. a vote that could end the government shutdown, raise the nation's debt ceiling. we expect that vote fair soon. we'll have live coverage, coming up right here in "the situation room." ♪ ♪ [ male announcer ] eeny, meeny, miny, go. ♪ ♪ more adventures await in the new seven-passenger lexus gx. lease the 2014 gx 460 for $499 a month for 27 months. see your lexus dealer. so she could take her dream to the next level. so we talked about her options. her valuable assets were staying. and selling her car wouldn't fly. we helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today... and tomorrow.

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all right. so we're standing by on a senate vote for the spending is and debt deal. the house expected to vote on it shortly after the senate does. we'll have live coverage here in "the situation room." it's a breakthrough, no doubt about that, but this would be just a temporary fix, at the same time, reopening the government until mid-january, extending the nation's debt ceiling until early february. let's discuss the political fallout from what's going on. joining us, ryan lizza, the washington correspondent for the "new yorker" magazine, the former bush speechwriter, david frum, and our cnn chief political analyst, gloria borger. should the president be gracious right now? >> of course. >> because he clearly got the better end of this, even though he didn't get everything he wanted. >> you know, wolf, first of all,

this is not a president who's sort of prone to gloating. i think that's not in his nature. he should be magnanimous. he won, and don't forget, he's going to be back at this again. he's got a lot of budget negotiations he's got to get through. he's got an immigration bill, an agenda, remember that? there was an agenda that he wants to deal with. so i think, of course, he should be magnanimous and come out and say, look, you fought the good fight, obama care is law of the land. i don't know if he mentions obama care, actually. i just think he moves on. >> do the republicans do this once again in january or february, and assume they don't have a grand bargain on long-term entitlement reform or tax reform or any of those major budget issues. let's say they don't achieve that. if they do, that would be excellent. but let's say they don't. do we go through this again in january? >> you can't do it too often. it's fun for everybody, good for cable news. we're now in a pattern of financial crisis every six

weeks. because why should italy be the only country to give the rest of the world heart attacks. republicans, i don't know that they've done themselves a favor by setting this so early, because if it goes -- is there any hope in january they'll be able to get this passed in 2014? but the party does need a bit of time to do an after-action report, a self-inquiry as to how it walked itself into this. and not for the first time, since 2009, there have been a series of these tactical blunders, strategic mistakes based on misreading -- >> don't you think a lot of them have done that publicly already? >> no -- >> john mccain's been out there? >> the original passage of obama care, back in 2010, came about in the same way, by not thinking hard about where are the votes, and what kind of deal do we cut, if we go for everything, we can end up with nothing. >> boehner himself didn't want to do this. he was sort of forced into it. there are a whole bunch of republicans who from day one thought it was a major mistake to link obama care, which passed to the government shutdown. so this was all pretty

predictable. >> it's kind of amazing. the pundits and the political elite, for once, were completely correct. i mean, the way this has played out is the way that everyone predicted it would play out. what's going to happen tonight is exactly the end game that everyone predicted. the entire strategic elite of the republican party, its leadership in the house and the senate, all predicted this would happen. and yet, boehner was forced to do it anyway. >> playing a washington game. ted cruz knew it was going to lose. he's a smart guy. he wasn't playing a washington game. he was playing a game for his own personal recognition and for the tea party in the long-term. although i would argue that backfired. >> let me say one thing. i think this question on, is this a win for obama or not? there's probably no one that's actually won, considering what's gone on here. but the only sense it might be a win for the white house is if republicans don't do this again. if obama really has broken the back of that faction in the house of representatives and really has taught them that they can't extract policy concessions

by threaten a default, that will be a sort of victory. >> the president clearly did not want only a temporary -- he wanted it to go on until the end of 2014 -- >> but they believe they've convinced the republicans that this is a losing strategy. >> let me read to you this excerpt from the editorial in the "wall street journal" today, usually fairly conservative, they love the editorial page of the "wall street journal." "house republicans picked a goal they couldn't achieve in trying to defund obama care from one house of congress, and then they picked a means they couldn't sustain politically by pursuing a long government shutdown and threatening to blow through the debt limit. republicans can best help their cause now by getting this over with and moving on to fight more intelligently another day." >> even there, that is not truth telling. because so-called defunding obama care is not actually defunding obama care. the taxes in obama care that fall on higher income taxpayers, they're the law of the land.

those taxes are going to be collected no matter what congress does. the regulations under obama care, those get issued, no matter what. many of them have been issued and there will be more. so even "the wall street journal," in trying to cool people down, is giving people a fantasy. the time to have done business on obama care was in 2010. and at this point, some of us warned back then, that if you don't do business on this, you will be spending the next decade fighting for things that could have been had for the asking in 2010, and that is going to be true, because in 2017, the next clear opportunity, this thing is going to be embedded in the american body of politics. >> the only way they can get rid of obama care is if they become the majority in the house and senate and the white house in 2016. then they may have a shot. >> this is the danger that senator pat moynihan always used to talk about, which is, you shouldn't pass landmark pieces of legislation with strict party line votes, because it will come back and hurt you in the end. and that is exactly -- now, the democrats say they may not have

any choice, but that is what's happened. and that's part of the problem. >> all right. always good to quote pat moynihan. >> always. >> a great senator from new york. guys, thanks very much. we're waiting for that senate vote on the compromised debt and spending bill. the crisis certainly generatorigenerator ing a lot of shock and disbelief around the world. has it done any serious damage to the u.s. standing on the world stage, plus, it's been the centerpiece of the entire ordeal. the gop effort to defund, get rid of obama care. so what impact will a possible deal have on the president's health care law? stay with us. ♪

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we're waiting for that senate vote on the compromised

debt and spending deal. we're now told it will definitely take place. well, if anything the definite in the senate, before 7:00 p.m. eastern. we'll, of course, have live coverage here on cnn. this government shutdown, by the way, is already the third longest on record. the longest ran 21 days, during the clinton administration, back in the weren't of '95/'96. in the jimmy carter era, there was an 18-day shutdown in october of 1978. the current shutdown is now in its 16th day. that tops another carter administration shutdown, which lasted 12 days in 1977. we'll be right back. you make a great team.

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and a 30-tablet free trial. dick durbin, the number two senator on the democratic side, says there has been a little is that snafu drafting the language in the senate. it's not serious, they're going to work it out. not all that unusual. the vote probably going to happen before 7:00 p.m. eastern. let's see if they figure out, he says it's certainly not insurmountable, always a little

bit of legal language that they've got to work into this legislation. this crisis certainly is having a serious impact on the u.s. image, the u.s. role on the world stage. ana corrine is joining us on this part of the story. folks are watching us all over the world right now and what are they saying? >> i think there is shock and disbelief, wolf, that the world's superpower could become so dysfunctional and lawmakers would allow it to get to this point. one of the world's most vocal critics has been china and china has every reason to be angry. they a bit earlier in the week called for the de-americanization of the world. they have a lot invested in this. $1.3 trillion in u.s. treasury bonds. they're the largest holder of u.s. debt, so they expect the u.s. to act responsibly and not default, which would obviously have global repurr cautionercur.

>> just a year ago, everyone was thinking about what was going on in europe, greece, spain. now in europe, in asia, in latin america, they're worried about the united states. >> yeah, america is being compared to greece in some parts of the world. i think this has really hurt america's reputation and its credibility. you know, i've come from the opec summit in bali and end n indonesia, which president obama had to cancel because he was stuck here dealing with the government shutdown. and there were real questions raised about america's commitment to the asia pacific. it wants to rebalance its foreign policy and but obviously obama as absence really gave it to china. they just stole the show. so i think there's a real feeling that if america cannot deal with its own affairs in its own backyard, what business does it have in a place like the asia

pacific. >> let's hope we don't go through it again in january or february. anna, good to have you here in washington. thanks very much. at the center of this ord l ordeal, the republican efforts to try to defund or delay obama care. will the health care law be impacted by this interim deal, and let's bring in our senior medical correspondent elizabeth cohen. what is going on as far as obama care is concerned right now, elizabeth. >> i want to be clear i don't have the senate deal in our hands, we haven't read it, about you from what a senior white house officials has told cnn, it distill doesn't change obama care hardly at all. it doesn't make substantial changes. let me describe the change that it does make. the way obama care works is if you want a subsidy in order to buy insurance, you have to el it the government what your incan um is. you have to report your income, then obama care go goes and

verifies that income with various databases. what the senate deal does is tells the inspector general, hey, can you later do retrospective analysis to make sure that verification process was done properly, and experts who we talked to said this is a technical change, it doesn't affect obeya care in a substantial way, certainly doesn't expect users experience, you still get the same benefits, subsidies, insurance policies. wolf? >> elizabeth. the way people sign up for obama care right now, you go to healthcare.gov, last night the president spoke about it in an interview in iowa on kcci. let me play that little clip. irges i am first to acknowledge the website that was supposed to do this in a seamless way has had way more givening than i think are acceptable, and we've got people working around the

clock to do that. we've seen some significant process, but until it's 100%, i'm not going to be satisfied. >> elizabeth, as you know, they had two or three years to get that website ready, spend hundreds of millions to do is. the president himself is clearly frustrated and ringry that it's not yet ready i want it's interested. on october 1st he came out and said, you know what? new programs, new web sites have glitches. he used as an example the apple ios7. it had a glitch and it got fixed quickly, and it wasn't a big deal. people were saying this is not a minor glitch. this is a big deal. so it's interesting to hear him say two weeks into the process, you know, that yes, this is a, you know, a substantial problem that needs to be fixed. that isn't the tone of what he said in the beginning. all right. thanks very much, eleads bicohen reporting for us. culling up, once again we're

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i save time, money,st, and i avoid frustration. you'll find reviews on home repair to healthcare, written by people just like you. find out why more than two million members count on angie's list. angie's list -- reviews you can trust. senator ted cruz, let the press pack, as he headed for -- basement. the microphone's back there. about-face, not much saving face, as uncle sam turned around the boat before it went over the falls. say good-bye to all those shutdown jokes. >> our congress today, in case

you haven't heard, continued to play the least favorite game "no deal or no deal." >> there is a deal in the works. >> there is a done deal. >> there's not a deal until there's a deal. >> like stevie wonder ones said, signed, sealed and delivered. >> reporter: or as the chaplain put it. >> lord, we see a faron light at the end of a long, dark tunnel. >> reporter: amen. with the shutdown and possible default you are behind us, in the rear-view mirror, so to speak, some are some of those special moments. i will show you who is responsible. right here, here you are. >> what are we going to do without the weird metaphors. he was compared to a rabbit. >> he's having bunny sex, the snowshoe hair every ten years

mountains pilled sixfold. >> are you high? >> just hours before a deal with us struck, a fox news psychiatrist used president obama's tough talk -- >> you do not hold people hostage uismgts so psychoanalyze the president. >> there's a victim mentality here. i think the president going back to when thinks dad abandoned him, when his mother left him with his grandparents, the president sees himself as the victim in chief. >> it's enough to make your head explode. artunis turned "gravity" into insanity with a spaceship labeled "shutdown" exploding and voters untethered in space. a tweed by pee-wee herman -- no government default. 15 days until halloween. >> it's a trip to puerto rico. >> reporter: make it one way.

why stop at finger pointing jeanne moos, cnn, new york. glue happening now a "the situation room" special report. breaking news, we're awaiting dramatic 11th hour voids that are expected to end the fiscal crisis, just hours of a possible debt default. >> we fought the good fight. we just didn't win. >> field the fallout. payments to thousands of low-income families because of the shut down. we want to welcome our viewers. i'm wolf blitzer. you're in "the situation room." is we're following the breaking news, where the senate is

expected to vote soon on a bipartisan plan to avert what many see as a fiscal catastrophe, a u.s. debt default. the bill would lift the borrowing limit and reopen the federal government, which has been shut for 16 days, already costing the u.s. economy $24 billion, according to a report just released by standard & poor poor's. the house speaker john boehner has conceded defeat. hi's encouraging republicans support it when the house votes later tonight. when can we expect the senate voice? >> this just was posted on the senate website. it's 35 pages. we just got it, we haven't had a chance to go through it to make

sure there was nothing in here unexpected. assuming everything goes as plan, the senate is expected to vote, maybe within the hour, by 7:00 p.m., that's the latest word from harry reid. then it is expected to go over to the house, which is expected to vote to approve this. when whole deal, making sure the debt ceiling is raised, is expected to go to the president's desk tonight. >> a lot of language in this 35-pages i haven't you go through it myself, either, but a lot of stuff in there. house republicans have to pass it as well. are there any road blocks ahead that could derail this deal before it gets to the president's desk? >> this has been such a whirlwind. i am not going to say

definitively no, but it certainly doesn't look that way at this time what's been most fascinating to watch. even those -- are rallies around him, at least in his leadership. let's lynn to ma mull vainie said to our own jake tapper today. >> speaker boehner, stronger now? >> 100% stronger. no one blames him for this. we didn't have the votes. i supported the compromise that the speaker offered yesterday, so did really good conservatives. we could not get him the votes. that was our fate europe. >> pretty remarkable, saying he and his fellow conservatives who pushed this strategy on the speaker, a speaker who didn't want this, let him down because

they couldn't deliver. maybe the last bit of political drama we'll be watching for is what happens in the house, whether or not a majority of the republicans do in fact vote for it. the house speaker behind closed doors urged his rank-and-file to vote yesterday. he said even though we lost, we'll fight another day, i'm told he said it's better if we are united. >> dana, thank you. the breathrough comes with just a few hours. the u.s. hits the debt ceiling, it only kins it down the road, funding to keep the government open runs through january 15th. it's lifted only through february 7th el what's the mood

there? >> i think the mood in gen, wolf, is they're glad it's over. we're wading to see if president obama will come out to speak. it's unlikely he will do that before the senate vote. white house officials are hopeful this process, while certainly bruising may have deterred house republicans from sort of following their tea party contingent. of course we're not going to know until mid january, because this is a short-term funding measure, but you get the sense that not only is this over. an aide close to president obama said he's been frustrated, it's eaten up a lot of teem. he would have rathering pressing some of the domestic agenda items. ?

>> he, according to officials and according to the public schedule for president obama, he had lunch with the vice president, he met with treasury secretary jack lew, as well as secretary of state john kerry, and something he did -- which i wonder if he would have done -- he actually welcomed miss america toed ared oval office. she was here for an event, so he had a little moment with her that she tweeted about. >> so the president's got stuff to do while waiting. let, none of us should be surprised, but no word yet. we're also standing by for the senate to vote on the bill funding the government. just hours before a potential government default. up next here in "the situation room", some of the sharpist criticism is aimed at coming

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as we're standing by for the senate to vote, it's clear that many december own strategy during the government shutdown, now in day 16. they're not afraid to say so publicly. cnn's brian todd has been working this part of the story. tell our viewers what you're finding out. >> a lot of hand wringing, a lot of finger-pointing, as we emerge from this mess, some of the party's real heavyweights are its toughest critics. >> on the senate floor, john mccain slammed the partisanship on both sides. it's one of the most shameful chapters that i have seen. >> reporter: but in print he was

much tougher on his own caucus, it is "new york times" republicans have to understand we have lost this battle as i predicted weeks ago. mccain's republican ally lindsey graham says the gop really did go too far. we screwed up. former republican congressman mickey edwards says while he believes that president obama was too inflexible in this stando standoff, it's the republicans who overreached. >> the public is not going to believe that the president is responsible, especially when they're trying to undo a law that's already been enacted. and when you tie it in with also the threats about the debt ceiling and possible reneging on the money that the american people already spend and owe, i don't think it's a message that republicans can win. >> reporter: senator ted cruz has been squurd by his own hometown newspaper, the houston chronicle's editorial page says cruz has been part of the

problem in specific situations, where hutchison would have been part of the solution. another conservative group whose tactics are under fire, heritage action for america. it pressured wavering republicans to keep fighting, keeping tabs on those who didn't. their leader dismissed mccain's criticism that this was a losing battle. >> i think the senate republicans should focus on obama care and the way it's ruining many people's lives. >> reporter: but analysts -- >> as that line of argument, that political strategy been discredited by this defeat? there's no other word for it, and does that then allow other voices in the caucus to argue for a different direction? >> reporter: another big question out of this, does john boehner keep his speakership? gop strategists say he likely with, and who would want the job

in i were? >> how do you republicans turn this around. >> this is a big self-inflected wound, but the party insiders we are talked to say a couple basic things. first they have to do unity and that they can lead, govern and not push for an ideological agenda. can they do that in a year's time? maybe not. maybe for 2016 it's a possibility. they have a long way to do. >> we'll see what they do in january or february. we might going through this ordeal again. thank you, brian todd reporting for us. while the political fallout from the government shutdown may not be felt until the next election. serious economic impact is all right being felt rik know. cnn's renay marsh is looking at some families potential suffering severely. >> wolf, a deal may be in the works, but for thousands of people who live in north carolina, this has been a tense nail-biting wait. north carolina, it turns out, is the only state in the nation

that is cutting some welfare benefits because of the shutdown. in north carolina, more than 20,000 needy families received their last welfare check this month. governor pat mckrory, a republican, temporarily halted the state's work first program. concern from people who call the program a lifeline, like james murp murphy's sister. >> she don't know how she'll be able to take care of her baby, the third one. >> reporter: the checks are about $215 each month for each family. other states are using their own money to plug the gap, when this letter was sent. but north carolina doesn't trust that the government will repay them. >> why issic in increase the only one of all these states that is victimizing it's most vulnerable citizens in this way?

it is not acceptable. >> reporter: david price says it could be politics. >> the state has found 75, 80,000 to keep the blue ridge parkway open. that's a good thing, but it does raise the question, why would we be the only state out of 50 that can't find the money for these families with these acute needs. >> reporter: the north carolina budget and tax center, an advocacy group for low-income families agrees. >> we have a rainy-day fund that has more than $600 milt onin it. this is certainly a rainy day for families in north carolina. there's no reason that state policymakers can't tap into those dollars to provide stop-gap support for families today. >> reporter: we reached out to the governor of north carolina to explain why he deemed it necessary. 1 we haven't heard back yet. so the question is, what happens

when the government reopening. the state's department of health and human services says they should resume processing new applications, emphasis on the should, because they're not quite sure when that federal money will be freed up units relate ene, marsh, thanks for the report. we're standing by for the senate vote on the bill that would reopen the federal government, raise the nation's dead ceiling. stand by. i'll also speak with one lawmaker who sell his at all that worried about a default. we'll have that next. something you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪

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the battle over the roll-out of the national health care law. more news is straight ahead.

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this is washington at its worst. it's exactly the kind of thing the american people are fed up with. nor mike lee, a bitter opponent of this deal that heart ri leigh and leaders in the senate have worked on. it should be coming up pretty soon, this this hour we're told. and we'll see what happens in the house of representatives. let's talk about that with republican congressman tim huelskamp of kansas, a tea party favorite. he also says this debt ceiling is not necessarily the crisis it's made out to be. congressman, thanks very much

for joining us the. >> you bet, wolf. my pleasure. >> we anticipate it will get the republican leaders and other republicans on board. when it comes to the house, speaker boehner says it would be a yeah or nay vote. he hopes as many republicans as possible vote for it. how will you vote? i want i will be voting against the deal. washington, d.c. didn't listen to the american people and we didn't do a single thing about obama care, and it continues to hurt kansasens in particular. >> don't you think votes in kansas, indeed all over the country, would be much more severely hurt if the u.s. were to default on its obligations, or unable to make payments to veterans and others? >> fearmongering out of the white house doesn't make it true. at the end of the close of

business there were significant of cash on hand from the treasury. lew said by the way, we didn't mean the 17th, we meant the 18th. there's not going to be a default. the reality is we are ignoring the basic problem. people don't like obama care and don't like massive deficits. >> i don't if you saw this latest report just released by standard & poor's. they say the 16-day government shutdown has already cost the u.s. economy, in their estimate, $24 billion. that's a lot of money. >> they have no idea, wolf. those are made-up numbers. >> this is a respected economic forecasting firm. >> the department of labor hasn't put out any figures for 2 1/2 weeks. the treasury isn't even full strength. it's not good -- >> they can't put out those numb bers, because those parts of the

treasury has been shut down. >> because herry reid and the president -- >> you don't believe economists on the outside and what they're saying? >> no. what i disagree with the idea that washington can exempt themselves if obama care. that's the sure here, and america is stuck with it. i had an e-mail from a constituent named nicole. her premiums are going up $446 a month. washington couldn't care less about nicole. that's who i'm fighting for. i'm worried about average americans not being listened to. >> if you don't have the votes, and you clearly didn't have the votes in the senate, even if you did, the president would veto it, you use need a two-third override. so many republicans say why drag this into a non-win situation. grover norquist, you probably know him, president of the americans for tax reform. he said this -- i think if you

make a mistake as big as what they did, you owe your fellow senators and colleaguessh nothing they did advanced the cause of repealing or dismantling obama care. what do you say to grover norquist. >> grover's inside the beltway. he needs to go out, as with all these or senators, particularly folks like john mccain who -- at the end of the day, obama care is bad for america, washington exempted themselves, u.s. senators still do not have to be on obama care. 1 that's a real issue here. i wouldn't want to be mark pry yor and say, i still get to keep my goldplated health care plan to his voighters, that will be a real issue. >> do you still have confidence in the speaker of the house? >> i think he actually did a pretty darn good job.

the problem is there's 20 or 30 or 40 moderates. they're just like every other republican. they went home and said they're going to phyto'bama care and then whine about the debate and battle. washington is a big town. people can disagree, but don't tell the constituents europosed to obama care and then be like john mccain and attack those who are actually working against it. whether washington, d.c. -- i was disappointed that the washington, d.c. establishment won this round, but at the end of the day i believe conservatives will win this war. >> the war could go on for years as far as ointo mania care is concerned. the only way you'll get it repeal or rejected is if you have decisive majorities in the house and senate, and you win the white house in 2016. you're not going to get the president to go along with any major changes while he's in office. >> the president has already agreed to major changes. he's exempted big businesses.

>> but made those changes on his own, not as a result of what you asked for. >> i think there's a possibility when this thing clears, the united states is going to delay the individual mandate. he's delayed it for big businesses, labor unions. if you're a special interest, you get a delay. the rest of the americans are saying, how about us? that's why i thinkty end of the day we're going to win this war. through public pressure, people like nicole, who says, you know what? i can't afford another $446 a month for this reckless plan that was put together by liberal democrat did maniesivities congressman, thanks for coming in. >> thank you, wolf. we'll see what time this vote happens on the house floor following the senate vote. you can always following what's going on at twitter. that's all time i have right now. "crossfire" starts right now.

welcome to "crossfire." i'm newt gingrich, and i'm van jones on the left. we're waiting for the senate to finally vote on the deal. this is a total vindication of president obama and his strategy by refusing to negotiate with the crazy wing of the republican party. it is a total humiliating, crushing defeat for ted cruz and his wing of the republicans. listen to how house speaker boehner conceded defeat on his hometown radio station. >> we've been marching the fight, trying to bring government down to size, trying to do our best to stop obama care. we fought the good fight. we just didn't win. >> from my point of view, he didn't, but the rest of us did win the