Wednesday October 9, 2013 Happening Now - Shutdown Showdown Day 9; Investors Getting Spooked?

It's day 9 of the shutdown with no end in sight.. and the nation is quickly approaching our borrowing limit.

In a surprise news conference yesterday, President Obama warned that default would be "insane, catastrophic, chaos," and demanded that Boehner take back of that threat. Boehner said a little later yesterday that Republicans will not back off the threat until Obama comes to the bargaining table.

Meantime, some Republicans are openly saying that a U.S. default might not be all that bad. They include Senators Richard Burr and Tom Coburn. That's spooking some on Wall Street.

Markets are beginning to take notice. The Dow is down nearly six percent since hitting a fresh high in mid-September.

President Obama to nominate Janet Yellen to be the next Fed Chief today. She would replace Ben Bernanke if confirmed by the U.S. Senate. She would also become the first woman to head the Federal Reserve which sets financial policy for the U.S. (and much of the world.)

Ed Henry, Wendell Goler, Doug McKelway, Will Carr, and Mike Emanuel reporting.

There's been a sixth arrest in the attack on an SUV driver by a gang of motorcyclists. David Lee Miller reporting, and we'll ask our legal panel to weigh in.

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- Clint Henderson