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or account fees that aren't clear? like inactivity fees? or maintenance fees? it's not right. and you know it. and the thing is, the other investment firms know it. but they do it anyway. and that's just not fair or straight-forward. td ameritrade. independence is the spirit that drives america's most successful investors. >> bob pisani on the floor of the exchange. seconds away from the closing bell. maria talking about the fact that merrill lynch, one of the commentators saying the recession is now over. goldman sachs looks to be

closing at the highest level since september. there's the closing bell. you know who's next, maria bartiromo. >> and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the inform stock exchange. we're following at the close tonight, it was a seesaw session for the markets. down beat news on the economy outweighing strong earnings from some of corporate america's heavyweights. we're waiting on a handful of other earnings. leading the charge today, earnings from goldman sachs easily beating expectations. that was a bit of an anti-climactic event as investors set the shares on a tear yesterday ahead of the numbers. we'll check out all of the financi financials. a second quarter result from the world's largest chipmaker intel may very well set the tone for tomorrow. we'll take you to the nerve

center for earnings central, give you all the data you need to know. instant analysis coming up. here's a look how we finished the day, dow jones industrial average on the upside. money moving into the market. up 27 points. 8359.. s&p 500, higher by 4.75 points at 905. the nasdaq just below 1800. all the action, bob pisani on the floor of the nyse. >> the recession is over, rather bold call by merrill. >> they're saying people are going to put the money into stocks. this is an important point that this analyst is making. we're going to have him on later. >> let's hope that happens. we need energy here. volumes on the light side. a lot of mixed messages today. the star of the day here is goldman sachs. earnings report. we'll give you all the details in a moment. it's simple right now. goldman sachs closing at the

highest levels since september. record fixed income was the key there. record top line overall for them. there's goldman sachs. had to get above 148.36 and they did. highest since.september. jpmorg jpmorgan, bank of america citigroup all reporting later this week. on the earnings front, we see companies beating in the last few days but big cost cutting helping them out. sales and volumes have been anemic. csx is my poster child. most of the big names trading close to the top end of the  trading range. don't kid yours. csx came out and said their volumes were down 21% in the second quarter. the stock is up because the company came out and said that will improve in the third quarter. it will still be down volumes for them still will be down in the double digit area here. mixed messages number two, the retail sales numbers, up. x autos. comps have been very tough

because of the rebate checks last year. the bulls arguing inventories are low and these companies are very lean now. back to school is what's going to be lean. i don't know anybody who's bullish on back to school now. most of the big names in retail were on the upside here today. finally the stimulus package is not coming in the way some people anticipated. martin marietta do all the stone paving for all the highways and construction companies had weak revenues here. they said their earnings would be on the weak side for the rest of the year because state revenues are weak. they're not getting the kind of money from the state and stimulus money is not arriving in time. they're expecting a large amount of the stimulus to have arrived. apparently a good part of that will be delayed into the second part of the year. if you look at some of the other big names in the building material area like martin marietta, materials to the sound side only fractionally. the reason they're not down even more is because martin marietta said wait till 2010 when we hope

the full impact of the stimulus. always holding out a little bit of hope for individuals. >> thanks so much. meanwhile, back to washington we go. house democrats introducinging their full health care reform bill today. that's where we find john harwood in washington now with the story. >> maria, part of the delay in getting the details of democrats' approach to health care in the house instant is that the parties trying to figure out what is the least politically objectionable way to pay for it. about an hour ago is, house democrats said they'll take their chances with the class warfare charge from republicans. they're proposing a is your tax to pay for health care reform. 1% on health care between 350,000 to half a million, 1.5% from 500,000 to a million and 5.4% on incomes over a million dollars. in 2013, in the government decides that the health system needs more money, there would be

additional tax increases. it goes to 2% for people from 350 to 500,000, 3% to 500,000 to a million and stay at 5.4 for incomes over a million dollars. here's how they're going to sell it. the democrats said they're determined not to increase the deficit. >> we're going to be paid for. i don't know if we'll be under budget. we'll be on budget. we're going to pay for this bill. we're not going to add additional debt to the american people. we will produce a product that will give to the american people a sense of security and well-being. >> so again, steny hoyer saying they're going to pay for it with tax increases on affluent americans.s. you can bet the senate is going to disagree with this approach. the goal right now in both chambers is to get bills passed on the floor by the august recess so they can reconcile them this fall. it's going to be a very interesting journey to watch over the next couple of months. >> we're talking about when you

add up all the tax increases something like 60, 65% of some people's income going to the government beginning in 2010 if all of this goes through. >> well, i'm not sure, how do you get to 635%? it's 5.4% onto the top rate for incomes above a million dollars. if you assume that in the next year, the top rate is going to be 35% it, you add 5.4% to that when the bush tax cuts expire, you'll add a few more percentage points on top of that. >> it goes to 39 percent and capital gains is going up, correct? >> yes, that's right. >> so you add it all up, most people believe 60 to 65%. thanks so much. john harwood is in washington tonight. we'll talk more with congressman mike pence, congresswoman from indiana it, allison squarts, democrat from pennsylvania. now let's take a look at other stories we're following on the ticker tonight. the ceo of ubs says is the bank

is on the right path to emerge from the financial crisis. oswald grabon noted encouraging signs. separately a swiss judge saying it is possible that the bank could transfer client data to the u.s. without breaking swiss bank secrecy loss. the government says it opposes mass disclosure of client information. if ubs acquires the data, it could end damaging litigation against the bank. finishing the day higher, as you can see, about 1% higher. shares of cit getting a boost after reportedly entering advance discussions for fund from the federal government. the lender took a hit yesterday. a cut from moody's sent the company's credit rating into junk territory. the stock today was higher in very heavy volume. cit group was higher in heavy volume and many people believe on that we need to see aid for

cit. otherwise, a huge portion of business will get impacted. cit is a leading lender to small and mid cap companies. rating on goldman sachs will not change despite the very strong second quarter performance. s&p says as a result, the company is going to see stable performance. let's take a look at goldman sachs' shares tonight. it was up a fraction at 149.62. we're moments away from the latest quarterly results from intel. we'll have the numbers and analysis for you. stay with us. later on, is an economic rebound just around the corner or are we looking at a turnaround in the next year or beyond in the story next on "closing bell."

welcome back to positive earnings report from goldman sachs failed to out weigh a weak set of economic data. for more on the markets and how

to invest in such an environment, neil hennessey joins us. david kudlow is chief investment strategist with mainstay capital management. welcome back to the program. neil, how are you investing in this environment? did earnings dictate how you allocated dollars over the last several weeks in terms of anticipating what the second quarter looks like? >> no, maria. we've been fully invested through this whole time. i look at we're going into a ten to 15-year bull market.. people understand leverage is no longer a good tool to use in going forward. i look back at the early '80s where the market really did well from 19 0 through '94 where it really started to take off. but people weren't use leverage then because interest rates were at 21.5%. they used leverage twice in the late '90s and 2007. companies will now grow because earnings return on capital and equity. people will look at a smoother market going forward.

>> do you agree with that, david? >> yes, i do. after our defensive allocations last year in the first quarter, we increased our al lobeses to equities and other risk assets had a tremendous rally in the second quarter. we've had a pullback here recently but some encouraging market activity over the last couple of days here. >> david, how do you want to invest out of that environment? what areas do you favor in the face of earnings that are certainly down from a year ago? >> well, as' look forward through the second half of the year, we want to be invested sectors in the u.s. and technology, industrials, materials, we want to avoid utilities, defensive health care, and also we think that investors should have an allocation increasing their allocation overseas, particularly in emerging markets as this recovery global recovery comes underway. those sectors we think will do very well. >> there has been a bit i've debate about the eamericaning markets.

neil, do you also want to have a toe in emerging markets? do you think that's going to be as we all expected sort of the jewel in terms of growth? >> we just made an acquisition in japan. what's interesting about the japan market is it's still 40% off its highs of ten years ago. if you think about asia and going through asia, where is the technology going to come from? from japan. i think if you look at the two markets that are most stable, japan and the united states, you can see a lot of money moving in those markets. i just learned the other day when i was in tokyo they have 14 trillion dollars for for eight million people sitting in savings accounts. maria, at some point in time, although the japanese are living longer, it is going to change hands and go in the younger people's hands that's going to go into equity. >> that could be a 20-year stretch, right? you've got a mentality in that country of saving. >> a bull market for the next ten to 15 years.

>> and china as well i guess. >> exactly. >> that's where where i think the bull market will be is in china with the growth that we're seeing there, the continued growth. china will be an economy that performs among the best in the world over the next ten years. >> how do i participate that as an investor in the united states. do i want to do that through etfs, be buying companies out and out in china?a? how do i participate in the growth happening in emerging markets. >> for most individual investors it's very easy to participate in atfs or mutual funds. a lot of our clients are invested in their 401(k) accounts and retirement accounts and there are open and mutual funds that it's easy to get diversified exposure to emerging markets and etfs in that region. >> we've got a profit out of intel of 18 cents a share. the estimate was eight cents a share. the stock is halted right now as news is pending. $7.28 billion was the stimtd on revenue. again, profit estimate of eight

cents a share and the earnings just coming out at 18 cents a share.e. just from the looks of it, this looks better than expected. we don't want to rush to judgment here because the revenue number was $7.28 billion in terms of estimates. we're waiting on more information and again, the stock is halted as we receive this information that is just coming across. let me get you a quote. $16.83 a share is where the stock closed. you had some trades but it is apparently lalted in new york in the extended hours. jim goldman is watching the numbers. we're going to get to him momentarily. dan morgan is portfolio manager at sin know vis securities. nor the second quarter, intel coming out with 1 cents a share. what's your knee jerk reaction as you hear these numbers? >> well, obviously, maria, it looks like a good number. we don't have the revenues or gross margin. >> the revenue is actually $8.0

billion. the estimate obviously was $7.28 billion. >> right. that's fantastic. we know that on the last quarter, when they came out on their conference call and said that they thought that intel had pretty much bottomed in terms of revenues and that things were going to improve going forward it, looks like that quote is going to hold true. i know that was met with a lot of skepticism. in the first quarter they did about 7.1 billion dollars in total revenue. anything billion plus would be showing they are starting to come out of it. that kind of counters some of the negative news we heard last night on dell computer where they said they were going to come out a miss. this is good they're coming ahead of earnings and revenues. >> it looks like the margins are beating here. this is a very strong report. jim goldman is in san jose with this breaking news. what can you tell news. >> when you're looking at this report, this is very unusual for intel to release both a gap and nongaap earnings report. this is a gaap company all the

way through its history. the company has taken the unusual step of releasing essentially two reports because of that $1.45 billion european union charge the fine connected with the anti-trust case that the company was facing. nonetheless, the 18 cents a share resoundingly beats the eight cents a share wall street was looking for on a gaap basis which is essentially the apples to apples when you're looking at this company, including that eu charge. intel reports 7 cents. again, even with that eu charge, intel would only have missed its numbers by a single penny. nonetheless, that 18 cent versus eight centcom pair son is the apples to apples. you mention that had $8 billion revenue, substantially beating the estimate. and 51% on the gross margin, wow, the street was looking for 45%. the good news continues into intel's third quarter. a 53% gross margin. so we're going to see gross

margins tick up by a couple of points at least compared to what the company enjoyed in its second quarter. the company is now anticipating $8.5 billion in revenue for that third quarter. plus or minus 400 million. kind of a big swing there but well ahead of the $7.8 billion wall street was anticipating. shares are rallying into this news. that will continue a rally we have seen recently. it's going to come down to more guidance as far as what this company has seen for the balance of this year, but all of those concerns that net books, which is such a huge trend in the laptop and personal computer industry right now because they are so low priced, the concern was a company like intel would be facing some kind of pressure on its gross margins but clearly it is able to take advantage of that big-time moment numt industry without having to sacrifice margins along the way. maria, back to you. >> thank you very much. jim, we're also getting pretty

good expectations from the company, dan in, terms of margins going forward in terms of it revenue going forward. would you commit new money to intel stock tonight? >> well, the stock trades right now at about 2 times fiscal year estimate for '09, about 5 cents a share. that's going to move up, definitely at the high end of the range we've seen the last three years. the stock seems a little bit high from a valuation perspective. i will say the stock is on our buy list right now. whether someone should buy the stock is up to their own risk tolerance, but it is a stock we're actively involved with at sin know vis. >> thanks very much, dan morgan. appreciate your time. aside from intel, we have a host of other numbers. after the bell, matt nesto is at the nerve center right new at headquarters with more on yum brands. >> this is an interesting story i was just checking out here. profit coming in well ahead of estimates, 50 cents per share for yum brands for their second

quarter. as i said, 43 was forecast. that was going to represent a 4% decrease. so the company coming in actually with a 10% increase, as well. if you take a look at some of the other issues that they're pointing out here, their worldwide system sales growth prior to foreign currency translations, just talked about the strong dollar situation that, included 8% in mainland china and 3% globally. that is a 1% decline. if you back out foreign currency translation, worldwide system sales were actually down 4%, which is a little bit better than expected. they were forecast to fall about 6%. if you take a look at stock here today, it had been strong up about 1, 1.5% of regular trade and you can see a bit of a giveback there, as well.l. as far as the forecast, the company is looking to continue its growth performance, if you will, and continuing to add stores. we're going to continue to take a look at the press release on

yum brands. the company is giving back some of its recent gains. it's up about 20% since their last quarterly report three months ago. >> thanks very much, matt. i'm getting more headlines on intel because the second quarter asia-pacific revenue came in at $4.1 billion. that's asia-pacific. europe revenue 1.53 billion. we're watching intel trade pretty aggressively in the extended hours. it is higher.r. higher than expected numbers on the earnings per share. house democrats introducing their health care reform bill today. does it make sense? indiana republican congressman mike pence, allison schwartz, democratic representative from pennsylvania checking in. stay with us. [ engine powers down ] gentlemen, you booked your hotels on orbitz. well, the price went down, so you're all getting a check thanks. for the difference. except for you -- you didn't book with orbitz,

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welcome back. house democratsen veiled what they consider a historic health care bill just under two hours ago. joiping me now on a first cnbc interview congresswoman allyson schwartz, democrat from pennsylvania. good to have you on the program. thanks for joining us. >> good to be with you. >> give me your sense of the debate right now in terms of this health care bill. imposing antis on employer who's fail to provide health insurance for workers and individual who's refuse to buy it, taxing the

upper earns in terms of paying for it. how do you come out on this? >> we've been working on this for months if not years to address the major problems for businesses and for families and yes, for government in terms of the high costs increasing high inflationary costs for health care in this corrupt.t. it's affecting our economic competitiveness and our budget in government. what we want to do is make sure we create a way that everyone shares in the responsibility. and that means we want to build on the employer base system so that employers continue to buy paper health insurance for their employees and that we create a mechanism for those who are uninsured or under insured or moving even between jobs to be able to access on going stable meaningful health coverage. >> is everybody really sharing in it? you've got the highest earners paying for it. >> the fact is we're all paying for it. the higher earners are going to

be picking up some of the cost. more than half of the cost coming from savings within medicare and medicaid and government programs. we expect even those you talk about who may be paying a little something more should see benefits in the reduction of health care costs to themselves and their businesses and families. everyone will benefit in seeing on going insurance that's meaningful and affordable and available to them and their families. >> as far as business is concerned, the legislation is also requiring employers to insure that employees, insure employees or pay a penalty. this is an area that's obviously expected to draw some debate in the senate. what's the compromise? >> here's what we said is that employers provide health benefits. particularly for small businesses small employers some will be exempt. some will be able to get help. tax credits for up to 50% of the cost of health insurance. they'll be able to provide the health benefits. for the other business owner who

have graduated so no one gets too steep a penalty and businesses will be able to decide do they want to have a step percentage or do they want to continue to provide holt benefits. we believe most will want to continue to provide health benefits. we'll see if it works right. they will see reduction in their cost of health benefits for their business and employees. >> how far out? >> some of the incentives in the ways we're initiating health services and some of the innovative delivery systems will start right away. we're talking about 2013 is when we will begin the process of working with businesses and creating other alternatives. and i'll tell -- it will take about five years. >> representative, i know you have to vote. you are on a tight time frame here. let me ask you this final question. the cornerstone of the plan, government funded health insurance option that would compete with private surers. are you concerned this is going to put some private insurers out of business? >> the cost of this legislation

is actually to build on the private system we have now. private insurers will continue to provide options for people. we're looking for greater choice and we are hoping private insurers step up and offer options to the 50 million americans who don't currently have insurance. the huge new market place for them. yes, they will be a private option as one of the choices on a level playing field for americans to be able to choose so we know in fact, there will be affordable health coverage for americans when they need it. >> you're not concerned that some insurers will go out of business then. >> i think they can compete. we hope they'll be able to compete, that they'll continue to provide private insurance options in this exchange and again, the exchange is going to be available for those uninsured and very small businesses. the rest of the system will stay much of the same except for being more affordable. >> thanks so much for talking with us tonight. congressman schwartz joining us in washington.

allyson schwartz needed to run there. coming up, we'll hear from indiana congressman mike pence with a republican view on the issue. he will join us shortly with his take. back in a moment with that. shears a look at some of today's winners and losers. you have questions. who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions. morgan stanley smith barney. a new wealth management firm with over 130 years of experience.

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they use hotwire to fill them, so you get them at prices lower than any other travel site, guaranteed. h-o-t-w-i-r-e, hotwire.com welcome back. let's take a look at the business headlines of the day. retailers posting better than expected sales in the month of june helped partly by a big month in autos. june retail sales better than expected on higher auto sales. when you strip out autos and gas, sales where is down. pointing to continued weakness from malls and shoppinging centers. prices spibed in june. ppi was up by 1.8%. twice as high as wall street was

looking for, marks the largest gain since november of 2007. core prices coming in higher than anticipated up by .5%. due to car and truck sales. coming up, we will hear from indiana congressman mike pence and get the republican view on health care reform next. then, is an economic rebound likely this year? we'll break down that with the former economic advisor to john mccain. douglas holtz-eakin. d#: 1-800-30 "i'm rethinking everything... tdd#: 1-800-345-2550 including who i trust to look after my money." tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "the dust might be settling... tdd#: 1-800-345-2550 that's great, but i'm not." tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "i guess i'm just done with doing nothing, you know?" tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "oh, i'm not thinking about moving my money. tdd#: 1-800-345-2550 i am moving it."

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welcome back. we want to show you intel. stocks on fire in the extended hours. company reported a profit of 1 cents a share versus an estimate of 8 cents a share. revenue better than expected. margins better than expected. stock is up 9%. it went out in new york, it closed the day at $16.83 a share. it is now as you can see up to $18 a share with a 9% rally on the heels of the better than expected earnings and also the forecast talking about better than expected margins as well later on in the year. stock is looking at a bid on the upside. pretty substantially on intel. we'll see if this really sets

the tone for technology tomorrow. certainly tech has been the winner of the market in 2009. we've got the nasdaq showing a double digit increase on the year. intel certainly leading that resuming trading after the earnings release and we are looking at strengths up 9.5% on intel. well, president obama pushes health care reform, the health of the economy is being questioned as unemployment continues to rise. we get the thoughts of douglas holtz-eakin from dhe consult. former economic policy advisor to mccain's 2008 presidential run. good to see you. first let me get your take on where we are in this economic slowdown. an analyst from merrill lynch telling clients the recession is over. how do you see it. >> not quite. it's nice to hear someone thinks that. i think we're still in for a very chlo 2009. i see the real growth in 2010 and even then, there's no guarantee it's going to be a

really robust recovery. >> where is the recovery going to take hold though? yesterday we had christina romer on from the white house who talked about where the jobs will be. i asked her straight out, how do you measure how many jobs have been been saved or created so far. sley said it's not measurable. where will the jobs be? >> what we know is households are going to need to rebuild their wealth. the dominant feature of this particular down touch. i'm not looking for things coming out of household spending, those kind of things.. i'm looking for recovery that's sustainable in business spending in and in net expores, good places to see the economy firm up. >> business spending and exports, you hit on two very important elements too an economic recovery. are you optimistic that you're going to see business increased spending? businesses have been under pressure. what is it going to take for businesses to increase their investment, increase spending? >> three greens. number one, you want to have a

little bit of a stabilizing of the household sector.r. you're not going to invest in something unless there is some market out there. number two, some easing of the credit. the ability to finance any business spending we're going to see. number three, the exports and business spending go hand in hand. if we can see the rest of the world start to come out, there's a recipe for better performance. >> we're seeing policies coming out of washington that are not necessarily encouraging spending because you've got higher taxes for business. >> policy mix is all wrong, quite frankly. we've got very counterproductive tax policies on international corporations. they really hurt competitiveness and go the wrong way. today we saw the ways and means committee put out their version of health care reform. % payroll tax if you don't provide health insurance, higher taxes on individuals which means small businesses. this is not the mix you look for to lead a recovery. >> let me ask you about the health care. you've said health care expense is the biggest for companies, right? is it the biggest?

it's the biggest expense. >> payroll is it and health care is the fastest growing part of payroll costs. >> what do you do then? they're charging the highest earners to pay for the health care reform which we know is expensive. where does the money come from then? >> let's be clear. this isn't health care reform. we're seeing an exercise in writing checks to cover people largely through medicaid expansio expansionses. health care reform means the production, distribution and use of health care gets cheaper. that's been the problem. we need to see real changes in the delivery system before we undertake this kind of expansion of health insurance coverage. >> when you add together the tax as a result of health care, when you add that to state increases in taxes, federal increases, you're talking about the highest earners paying 60 to 65% of their income to the government. >> the states are in bad shape. almost universally. we may see more increases out there below the federal level, as well.

>> let me bring in congressman mike pence, republican from indiana. he's with us here and we want to talk with him about health care and i want to bring you into the conversation from the economic standpoint. we've got the republican view on health care right now. interview with mike pence, republican from indiana. congressman, thank you very much for joining us. we've got doug holtz-eakin here with me in the studio. let me get your reaction to the health care bill that the house democrats unveiled early this afternoon. >> it seems like once again, house democrats are out of touch with the economic woes of millions of americans. look, this economy is struggling. american families are hurting. it's clear now nearly six months on that the stimulus bill passed this february is not working. and now immediately in the wake of having passed a massive national energy tax in the form of cap and trade, we have

unveiled a laundry list of new tax increases, taxes on jobs, on individuals who can't afford health insurance, taxes on small business owners. you know, they talk about just a surcharge on people making over a certain amount of money. well, most sticks show that most americans that file that the upper income level at least half of american who's file that the level are small business owners filing as individuals. the last thing we should do in the worst recession in the last 25 years is raise taxes on small business owners in this country. we could do health care reform without raising taxes and fund a government takeover of health care. >> what's the alternative, congressman? give us your ideas? because obviously, this is an expensive package. the money's got to come from somewhere. >> yeah. >> what's your idea? >> i think the first idea is to let's reject the idea of a government-run insurance option as a means of having the government compete with the private sector.

you know, the federal government competes with private businesses the way an alligator competes with a duck. it consumes it. and most people know that. you have a government option tens of millions of americans would lose their health insurance, and millions of american would very likely lose their jobs as businesses faced additional costs. move away from that idea, move toward and i think i heard a glimmer of this in do you's comment, move toward real reform. republicans have long supported ideas like medical savings accounts on an expanneded basis, association health plans that would allow people to create nationwide risk pools for certain types of employees and for heavens's sake, let's also recognize the extra naefr cost of medical malpractice liability in our current health care economy. i met with doctors in indiana this weekend who talked to me about essentially the defensive medicine actually being an extraordinary increase in cost. we should do health care reform.

we should take more than two weeks to do it, which the administration and the democrats in congress want to do, but first and foremost, for heaven's sake, maria, let's not raise taxes on working americans in the worst recession in 25 years to fund a government takeover of health care. >> maria, there are two important points here. the first is the is your tax they want to use to finance this. it will most assuredly be more expensive. we're going to have big tax increases. a better way to go at this is go out and do the tort reform, do the kind of delivery reforms and payment reforms so there's a business model for health h information technologies, there's a reason to create value in the form of preventive medicine, all the kinds of things that will stop costs from growing so fast and shift the focus to the states. we've seen real attempts at reform in massachusetts, very blue state, utah, very red state, across the united states,

we could let the states take the lead. as the costs come down, expand coverage through their efforts. that would be a sensible reform. >> congressman, you heard what doug aiken is saying. you hit on a very interesting point as far as this two-web period rushing this through. you know, house speaker nancy pelosi expects to vote on the bill before august recess begins. president obama said it in no uncertain terms. we are going to get this done. is it realistic to get this done by the time congress goes and vacation in august? >> the heavy handed tactics of the democratic leadership and president are unprecedented in my nine years of service in washington. can they get it done? can they twist enough arms to get it done? i'll leave that to the pundits on your show. but should we get it done? should we take all of two weeks to bring about a massive transformation of the role of the federal government in our health care economy nearly one-fifth of our economy?

i think most americans would say no. also, maria, i got to tell you, i was back in indiana this weekend. people are concerned about the economy, jobs, the deficit. they want to see health care reform. they want to see us have a strategy for energy independence but want us to take time to get those things right. job one right now ought to be creating jobs in this country and all we're hearing from the white house, the president said recently is the stimulus bill had "done its job." and we're hearing the same thing from leaders in congress. >> on the stimulus bill, do you think we need a second stimulus package, doug? >> no, the first stimulus was badly flawed and given the budget outlook, the last thing we need is another stimulus bill. we could cancel some of the first stimulus bill and effectively cut tams. >> republicans know what we really need for real he recovery is fiscal discipline in washington, d.c. that will give markets more confidence that there's some restraint in the nation's capital, then combine

that with immediate tax relief for small business owners, family farmers and working families. we can do that by rescinding the current stimulus bill. for heavens's sake, don't roll out this long new laundry list of tax increases on individuals and small businesses. you talk about going from the frying pan into the fire. we pass this had health carre reform and we might see our economy tab a nosedive. >> congressman, you've got to vote. we're going to let you go. one final question before you step away from the camera. what is so expensive as far as health care is concerned? can you educate us on exactly why it is that health care costs keep soaring every year? >> well, i'll tell you, i really do believe it's the lack of a competitive business model for particularly small business owners. i've literal lili will small business owners in tears with me in the past seeing 30, 40, 50% increases in premiums simply

because you don't have the ability to pool employees on a national basis. insurance is governed on a state by state basis. that kind of reform doug is talking about is called association health plans. your viewers can check all of this out at gop.gov. there is reform we can do. we don't need a government takeover, more taxes. there are better options. >> congressman, thanks very much. >> thank you. >> we appreciate it. we'll see you soon. congressman mike pence, republican from indiana back with douglas holt aiken on the broad economy. the vice president recently said we underestimated the severity of this upset. things are as bad as some people thought. hypothetically you're advisinging the president today, what do you tell president obama is most important to get this economy moving again? >> first and foremost, you explain you don't run the every from washington. the notion could you know the economy was going to have a 9%

unemployment rate and we know exactly the policy to do that, that's mistaken.. two decades mistaken. two decades proved it, we got away from that. we started using tax and spending policy to promote long-term growth those are the policies that really proved to be successful, and then you leave that short-term stuff for the federal reserve, which quite frankly has a lot of tools left to do that. so i would tell the president, stop thinking in the next quarter or next two years you're running the economy. >> so we know that small business has been typically and for as long as we can remember, the creators of jobs. >> absolutely. >> how do you incent them to create more jobs? >> number one, you have a real health care reform that makes their payroll problems get better. number two, you take care of our young, maybe sure they have the

skills, and number three, you impose no unness costs on them, a smaller government imposes fewer costs, you make is small enough to do the -- >> speaking of smaller government or of bigger government, as what we're seeing, a senate committee today heard testimony from supporters and opponents. is this going to be helpful? what do you think? >> i think the obama financial regulation plan as a whole is a mixed bag. there are ingredients i think would be useful. it's got in ingredients i don't agree with. the nothing that somehow we need a systemic rfk regulator, there's no real evidence we had systemic problems. >> they said aig would have been systemic had they allowed it to go down. >> but that doesn't mean we need to create a whole regulatory apparatus. they're telling it that it gets to pick products that are safe for people, instead of simply

informing people. it's a mistaken view of their job, so i'm hone the bill against changed a lot as it goes through congress. >> let me ask you what the problem is from your standpoint of the stimulus.. you said, no, we don't need a second stimulus. we can butt it to work differently. what's your problem -- why do you feel it hasn't worked? >> this was the beginning of the stimulus plan all in one bill. it didn't pay for them, big budget problems came with it. number two, it's doomed to be inefficient. we had two be right back programs in the government. we now have a single $8 billion program. it won't work. so we're going to waste a lot of money.

all right. we will leave it there. thanks for your time we appreciate it. and former economy policy. up next we'll take a look at what would move the markets. certainly intel will be a highlight. we'll check stock and be back with you with an agenda for tomorrow's trading session. finally, good news for people with type 2 diabetes or at risk for diabetes. introducing new nutrisystem d, the clinically tested program for losing weight and reducing blood sugar. hi i'm mike, and i lost 100 pounds on nutrisystem d

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