Heading for a Double Dip?

The global markets have been heading steadily south for the last two weeks, but on Thursday, they took a sharp dive. The Dow lost more than four percent of its value, its worst day in three years. As our program went to air on Friday afternoon, the markets continued to sputter downward. There was a bit of good news: unemployment went down and jobs went up in July, but only slightly. The jobs report appears to have prevented another day like Thursday on Wall Street, but is it enough to calm investor fears that we're entering into a double-dip recession? And with the grim economic forecast and a bruising fight over the budget, what are the political implications of all this for President Obama and lawmakers on Capitol Hill? What are their prospects for re-election? (Terrence McNally sits in for Matt Miller. Chrystia Freeland joins us as our special guest panelist.)

Banner image: Traders work on the floor of the New York Stock Exchange before the closing bell on August 4, 2011 in New York City. The Dow plunged 512.76 points and is down more than 1,200 points since July 21. Photo by Mario Tama/Getty Images