the tea party flexes its muscles and leaving a mark on the debt deal in dc. would they right. syria on the brink and assad rule time running out . panic on wall street. all of the dow's gain this year disappear in hours. are we headed for a double dip recession in welcome to the journal editorial report. i am in this week for paul gigot. i am stuart vern varny.

the tea party dire warnings about the need to reign in the nation's spending carried weight and this week on wall street it suggests that may be right about our unsustainable spending. are they prophetic about the cost of living beyond our means in joining us this week dan henninger and games freeman . mary ogradey and james taranto. dan to you first. is the tea party at the heart of the market turmoil. >> in the center of it. it is the cainary in the mine shaft and testimonies you when the toxic gases seem in the mine. federal spending, u.s. spending was out of control. look the europeans and we have known our public spending is

out of the control for 25 years. the tea party identified that conclusively and rolled over to the fight over the 14 trillion dollar debt ceiling and jim diment seemed willing to push the united states in default. if that had happened in leist what happened in the market. destruction in the market would have been worse had they not gotten the debt deal. >> is the tea party's influence a positive or negative. >> absolutely. >> i am sorry. >> absolutely positive. >> bang that table. >> sorry, you look at basically making the case and it is not just public pressure and they were loud and had the activist out in 2010. they made the case and won the intellectual argument to say spending is out of control and the debt limit is too big.

>> and the dow attacked by the administration. mary, does the tea party exact a price on the republican party is this >> i don't think so. the tea party did not break free and create a third party. it is a movement but stayed in the republican party. it is an important component. it strengthens the republican party. there is a rockefeller republican and that's basically what the tea party is responding to. republicans who want smaller government and go to washington and cave in. this is the first time when they say we are going to change it from within by saying we are elected on a smaller government platform and we'll demonstrate that in washington. >> what we saw this week. they managed to force the first, i would say socialist. european social and committed.

and accept spending cuts. this would not have happened without the tea party or would not have happened with leadershh mcconnel and john boehner managed this negotiation well >> now the tea party is being attacked. the president, democrats and administration said they will not let mow spend and invest in education and invest in an infrastructure. >> of course they are being attacked. they are breaking the rice bowl of the democrat party. >> politically, is it a viable attack? will that attack work? >> that is an attack we'll see before the beginning of 2012. you will have a big fight when the committee gets together and decides the next cuts, that will be the next round. vors will be able to decide.

do we want more of what obama is selling? >> i think the challenge for the tea party is really a large one. they have established a platform of lowering spending and that is discretionary spending. the big challenge is medicaid and social security and medicaid and now obama care. getting control of that is going to take education on the american people and challenge the commitment of the tea partiers if their medicare benefits will be eroded. >> will they be established or say free radecals on the outside raring to go. something has to be done about entitlements. they are going to swallow the economy in a matter of decayeds. either we deal with the problem now or later when it becomes a crisis. >> europe is a good of what we

are saying. >> we don't have both branches of the government trying to go there. >> as a european myself i would appreciate the stoppage of going that way. >> eric cantor said if the economy deteriorates, the costs on government are going to create deficits bigger than we realize. the way you do that is making a tax system and cutting rates that alows for growth. >> what is the tea party's position on growth? >> i think there is a opportunity for tax reform and the tea party will be supportive if the president wants to reduction. >> and the democrats solution is grow the government. that is not working right now. the tea party's position to

grow the economy. >> this president to seize the opportunity for tax reform and lower the rates would be a defeat for him ideog logically. >> we like the tea party and a positive influence on americans and the republicans. >> no, they are an important force in the november 2010 election was a historic event for us. >> another middle eastern country on the verge of collapse. assad orders crack downs. are they outnumbered. what does this mean for the middle east and the u.s.?

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>> syrian strong man bashar al-assad may be enjoying his last day in power. but the syrian army stormed

the city in an attempt to crush the rebelian. that could have implications. he is the number one backer of the iranian regime. on this issue and many others. president obama is issuing a statement here and there and taking no action. the u.s. ambassador's visit to last month powerfully demonstrates america's ability to affect the region. ambassador was greeted with elation by anti-regime who threw roses and waved branches. >> is bashar al-assad lived on bordered time and does the u.s. have a strategy for dealing with his demise. we have the panel here. bret, to you first, with all of the economic turmoil in the world, why is syria important to us? >> it is important for a

variety of the remions. one of which it is iran's principle ally and bridge between iran and lebanon where it sponsors hezbollah and provoked confrontation and wars with israel to the extent of the security of the middle east matters because of economic and political security. we have a interest in a better regime in damascus. >> can syria be saved from civil war in >> absolutely. syria is a mature nation and has a middle class and not yemen. but to get there, we have to move, meaning the u.s. and europeans faster to put pressure on the regime of bashar al-assad. there are more things to do and we haven't been willing to do them start economic sanctions and visa bands and

say he should go. >> will that get him out. these bands and the statement he should go? >> we'll get him out. look, he runs a minoritiy regime. most of the chief officers are allowights . they are suppressing a population that is overwhelming sunni . how do you get those in the syrian army to realize their interest is not in the continuation of the assaud family rule. you have to say either you turn against the regime or a war criminal six months a year down the road. you are saying that kind of thing. we are not saying that and we are not sending an important symbolic message to the syrian people themselves, too. it would matter if president obama says the time has come

for president assad to leave. they will transession to a future. >> it occurs to me that the arab world is not looking real good. they are in real disarray there. the syrian situation makes the whole thing worse could be another country to fall. >> i don't know if it is another country to fall. but rolling us back to january. nobody would have bet this many countries are in insurrection against the authority regimes. but the thing that they are suggesting, i suspect if bashar al-assad were watching the program he would say fat chance president obama will do that and i will simply shoot these people until i put down the insurrection. nato is bogged down. the idea that we could not

have taken down qaddafi by now is remarkable . the leaders are gening to understand we are not going to do the thing that is are necessary to make them fall. >> in this arab spring there are regimes that are pro american that are threaten over turned by popular revolution and antiamerican. qaddafi and syria that are threatened. our interest is to make sure the anti-american regimes are the ones that are fall pro american are reforming. it is interesting that president obama jumped on mubarak and insist he step down and now four or five months in the syrian insurrection and the obama administration hasn't put that kind of moral pressure to say nothing of pragmatic pressure on an enemy of the united states. if bashar al-assad goes, is that a plus for america and a minus for iran?

>> absolutely . syria is iran's only friend and a sponsor of terrorism and controls lebanon and it is trying to develop nuclear weapons. changing regime change is a plus for the u.s.. >> you say it is not likely to happen. >> i think the regime is on the last legs and we ought to applaud the syrians who cam out time and again evenas assad sends tanks in one city after the other. it shows the depth of tyranny that lasted for 40 years. >> all right. panic on wall street over the prospects of another massive economic slow down. is it a double dip recession on the horizon? we'll have the answers for you. clinical gum protection toothpaste. helps eliminate plaque at the gumline, helping prevent gingivitis. it's even clinically proven to help reverse it

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>> the bad economic news piled up in the president's tenure and investors took noyce. the dow plummeted and that amid fires of another slow down. thursday by the way was the dow's worst one-day drop since the grim days of the melt down. are we headed for a double digit precession. >> dan to you first. does the president have a plan for growth that would get past congress? >> no. >> oh, what are you talking about. the president of the united states, barack and his team since he came in to office has been dealing out exclusively construct .

that is to say you try to create a demand to raise the economy. you do that by stimulating the injections of 831 billion and raising spending and the federal reserve doing quantitative easing. here we are after all of that time 9.1 percent unemployment and 9.2 percent unemployment there ever no more to shoot. the president will not reduce the corporate tax rate. he is simply riding the river of the american economy to the election in 2012 he stays with a plan and doesn't fail. >> let's not give up hope. our colleague in the paper on friday. this is a way to save his

presidency and revive the economy. lower therias on the corporate taxation and get rid of all of the deductions. he is claim the win and get a lower rate and it is win-win if he seizes the opportunity. that is one area he could move. >> vice-president biden would counsel that am. but whether he can make the leap is a question. >> it is not just a idealogical problem but a level of inexperience that the president doesn't have. he doesn't have any experience in managing anything or in the business sector and doesn't understand supply and demand and prices and fundmental things that would basically change the way the markets are looking at the economy the

economy, six weeks ago were going to forecast strong and weak job report and the market is digesting the fact that the second half is not going to be strong that is a unless you look at him and try to understand how he thinks about the economy. he doesn't have it within him to think about the market the power of a positive system is malified by healthy companies with a lot of cash. if he gives a reason to invest andadad jobs, you might be amazed. interest rates are at near record lows and you have a new stimulus plan it would be

cheep. it is not going to get through to the house of representatives and no way they will sign on to trillion more spending. >> i would say so. as we said about the tea party the problem is structural. they don't have enough money to pay for the commitments they made for the entotalments. what happened this week is that the market finally got involved and said we will simply not any longer finance those commitments unless you do something about them . so it reached the point where it has to be addressed. it is not going to get the job done. the market also started to think about the weakness

globally. corporate america has been doing well and it is lowering the cost and doing well in the exporty sector. they are starting to realize if the global economy is slowing down. that source is off of the table that is driving the jitters. there is a period of low gloth. i don't see where it will come from. >> i don't see double dig but that measure of fear is striking. they are now going to charge large depositors for the privilege of holding their money and no interest rate and charge the customer for holding cash. they may charge more for the privilege it is a large statement and a lot of the big

instructions are looking for safety . the president there is a large pipe line that want to build. to the texas gulf what is in the way? the environmental protection agency. it crosses the u.s. border and has the power to override that problem. he will not do it. it is emblematic of what the market is afraud of here. we have to take a look at hits and misses of the week. .. with olay challenge that. new regenerist wrinkle revolution... relaxes the look of wrinkles instantly, and the look of deep wrinkles in 14 days. ready, set, smooth... regenerist. from olay.

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ever popular hit and misses. >> hit for the voters of nassau county, long island who last week defeated a 400 million bond issue that was supposed to finance a new ice aren a. voters were threatened that the team would move. they did not cave in and said their taxes are already high enough and if the owner want to move the team that is okay with them. >> got it. >> stuart, a miss to the new york times. three times columnist likened the tea party to islamic terrorist. they were call would hezbollah faction of the republicans and

warren said the wing . the tea party republicans have waged jihad after the new york times lectured us about the evils of inflammatory rhetoric and anti-islamic bigotry. >> i told you that. >> correct. >> stewart it is 40 years since dan cooper hijacked the flight seattle and got a $200,000 ran som. the nba never found him. this week a woman came forward claiming to be db cooper's niece and her uncle died. db cooper was a gentleman robber and never harmed any of his hostages and created a mystery that lasted for decades. the statute of limitation has run out. >> we have run