hi, everybody. welcome to "the wall street journal" report. i'm maria bartiromo reporting from the aspen ideas festival this week. we'll talk about a summit surprise, for once, good news out of europe. what it means for the markets and your portfolio. the supreme court speaks, america listens. the health care decision, your money and the next political battle. my discussion with tom daschle, former senate majority leader. and he wrote the book on steve jobs. he runs the aspen ideas festival. we'll talk about what the next big game-changing idea may be with walter isaacson. "the wall street journal" report begins right now. here's what's making news heading into a new week on wall

street. europe once again ruling the day, but this time a summit with low expectations appear to have overdelivered. leaders in brussels came to several important agreements this week, most importantly bailout funds can now be used to directly stabilize struggling european banks without adding to the country's debt, a move that should help spain and italy's skyrocketing borrowing costs. also countries seeking bailout money would not have to follow stringent austerity rules which could allow for more growth. there was also a move towards a joint banking supervisory body. as always, the devil's in the details, many of which have yet to be worked out. still, the move sent stocks sharply higher at the open on friday, closing out a rough quarter on a strong note. more signs of a rebound in the housing market, meanwhile, new home sales hit a one-year high in may rising 7.6%, an annual rate of 369,000, well above economists' can't expectations. don't feel bad if you're driving an old clunker. americans are holding onto their cars longer than ever.

the average age of a car on the road is 11 years old partly due to a slow economy, partly due to more reliable cars. and google getting into the game, introducing a tablet called the nexus 7. it measures 7 inches and will cost $199. it's more likely to challenge the kindle fire rather than take on the ipad. of course this week the supreme court ruled in favor of the affordable care act saying the individual mandate was a tax and is constitutional, not a penalty. what impact will that have on american businesses and the economy? joining me is simon johnson, professor of entrepreneurship at m.i.t. simon, nice to have you on the program. >> nice to be with you. >> let me kick it off with this crucial ruling in from the supreme court upholding the affordable care act. is this a positive? because we have some certainty? or do you think this is going to still be sort of an uncertainty and a new tax for business, keeping them unwilling to add heads to the payroll? >> well, i don't think you know before the november election how this is going to turn out. the november election is going to be more about competing vigs

for health care, the obama vision and the romney vision, and perhaps after that resolution we'll get some certainty. >> so the election, of course, is going to be much about this. already you heard governor romney come out and say, look, you know, if you have to -- if you want to get rid of obama care, get rid of obama, things like that. do you think this is going to be a positive for the republicans or a positive for the democrats? >> i think it's a positive for the democrats because it mean theys didn't waste more than a year of their time in the obama administration. the supreme court has backed them up on the key constitutional issue. so they have something to show that they did in this administration. >> let me switch gears and ask you about this recent petition you brought to the board of the fed, the federal reserve, asking for the removal of jamie die monday from the new york fed, because the new york fed is responsible for veging the losses suffered by jpmorgan chase's disast roust bad trades in london. do you think you'll be successful in this bid to get

jamie dimon off the new york fed? >> it depends on how big the losses are. at the moment, with the expansion, the increase, talking about perhaps $5 billion today, a week or two ago people thought it was just $2 billion, to have the new york fed as the primary leader in that investigation while mr. dimon sits on the board of directors of the new york fed is extremely uncomforble. i don't think there's anyone else in corporate or noncorporate america with that kind of position, relationship, adherence of a potential conflict of interest would be tolerated. >> they will say that the fed has a mandate to have business people on the board and that they want business people on the board to actually weigh in. but you're saying it's because it's specific, jpmorgan trading, and that's whoinvestigating it. >> the federal reserve specifies some bankers should be on the boards of regional feds and that's an interesting question to discuss whether or not going forward that's a good idea. at the moment that's the law. it doesn't say he should remain on the board if various inappropriate or potentially

inappropriate or seemingly inappropriate activities are going on. there's a long history of directors of the new york fed resigning when it questioned or threatened the integrity of the federal reserve system to have him continue in that position. >> it feels like jpmorgan laws or the markets, you know, trading so volatile, more and more investors are feeling like the game is rigged, that they're not getting a fair shake. we're now hearing that a key interest rate may have been fixed by barclays and other banks. is the retail investor featuring too many obstacles in this market? >> not just retail but corporate investors. a lot of corpse cfos think corporate banks are acting in the interest of the customers. what you understand with the details of the barclays rigging, which they've conceded they did, you begin to see they're rigging it even against p their big corporate customers and basically ripping them off. >> unbelievable. what are the ramifications? the retail investor has not been in this market for some time now.

do you think there's a catalyst on the horizon that brings the retail investor back? >> the overall macro situation around the world is going to become more complex. the european situation looks very, very difficult, and it's extremely scary to people who don't spend all their days thinking about what the possible outcomes could be. >> what's your expectation for the u.s. economy the rest of the year into 2013? >> it depends very much on the timing of the european crisis, which is hard to predict. i think there's going to be a slow recovery going into november, obviously a problem for president obama and his re-election. early next year is also going to be really quite difficult. if the europeans don't turn the corner, we could still be talking about this in 2014. >> at the aspens idea festival in aspen, lots of really smart people discussing the issues of the day, the important issues of the day. what's the best idea you're coming away with here so far? >> i heard a prominent republican yesterday suggest tax revenues could be increased as part of a fiscal deal. if revenues are in play, where the republicans are in congress, that's extremely good news.

i don't believe it. i don't think they want to do that deal, but that's huge. >> we have a huge problem on our hands with this fiscal cliff. tax cuts expiring at the same time that spending programs are expiring. do you think we'll get an agreement on that before the election? >> not before the election, no. there will be agreement after election. we're not going to drive off a fiscal cliff. the big issue is the extension of the bush era tax cuts. how is that handled. that's going to xendepend on th outcome of the november election. there are some scenarios that could be good for medium term and some could be disastrous. we'll learn a lot and see a lot the last six weeks of this year. >> good to have you on the program. thank you so much. shy mon johnson joining us. up next on "the wall street journal report," the supreme court upholds health care reform. what the road ahead means for washington and your wallet. former senate majority leader tom daschle will join me next. and later, looking for the next game-changing idea. the biographer of the steve jobs book, einstein and ben franklin. aspen institute's walter

isaacson is my special guest.

the signature piece of the obama administration's domestic policy agenda had a significant victory this week when the supreme court upheld the affordable scare act this week, signed into law more than two years ago. joining me right now is former lawmaker with inside experience in debate over health care reform, former senator tom daschle, onetime democratic majority leader. senator, wonderful to have you here. >> good to be with you. >> thanks for joining us. a dramatic last day in session for the supreme court thursday morning. 5-4 decision in favor of upholding the constitutionality of the mandate that americans

must buy health care insurance or pay a penalty. your reaction. who wins here? >> well, i think everybody wins. obviously, the constitutional question was looming over this whole issue now for the last year. what this does is provide a real green light to go forward on implementation, on innovation, on all the things we have to do. it won't end the debate. there will be policy debates, political debates, a lot of other debates, but clearly this is a huge landmark question. now put to rest, it can go on. >> what happens next with this wave of legislation coming into effect in 2014? who pays more and by how much? >> well, ultimately, everyone has to realize that we're not going to be reducing costs as much as we are bending the cost curve. our whole objective here is to make health care less expensive. that doesn't mean we're going to roll back what we've already had to pay. but it does mean we don't have to pay at the rates we're paying in the future if we're successful. that means more transparency.

it means real payment reform and delivery reform. it means creating a new architecture with far more opportunities and tools to control costs than we've ever had before. >> but the costs are going up for people. i mean, everybody, in fact, the penalty for not having insurance is more than 2% of income. how do you sell that to the american people that this is going to cost you more, this is a tax? >> we all have an opportunity to contribute here. we're being taxed right now. you and i pay for those who don't pay in uncompensated care. your tax last year was about a thousand dollars. it was an invisible tax. you didn't know. but that tax is going to continue. so we're trading one tax for another, something the american people i don't think appreciate right now. >> i know you worked on this and tried to work on this for so long while you served. health care represents nearly 18% of the gdp. is this reform adequately financed? >> it's adequately financed, but our real challenge is to address

all of the ways of which costs are rising today. we first of all lack transparency. health care is probably the only sector in the economy where at the time of purchase you don't know what it's going to cost or who's going to pay. we need more transparency. we have to bring down the strif costs. we're spending 15% on administrative costs. we have a 19th century administrative room and a 20th century operating room. we have to address that. unnecessary care. $800 billion last year. we have to eliminate unnecessary care and we can do that. those kinds of things can make a big difference. >> what do you say to the critics out there who say this health care legislation is not health care, it's health insurance, number one? two, what about the fact that going into this health care legislation we were all told that this was not going to add to the deficit, that this is not going to cost anything, and now we see it's going to cost a trillion dollars. >> well, first of all, i would say this, that i think it's very important that we realize this goes way beyond just insurance reform. we actually have the tools to change the way we pay for health

today. right now we pay on a fee per service basis. we have to end that. right now we're going down in quality. life expectancy is going down. we've got to change that. with regard to costs overall, the cb objection still says over 20-year period of time we'll save a trillion dollars. you can find the authorities and find the projects with regard to costs. i guarantee you if we fully implement the cost provisions in this bill, the cost containment provisions, we're going save money. >> you is say life expectancy is going down. i thought we were living longer. >> we're actually -- miff children have a lower life expectancy than i do, and that's in large measure because the obesity pandemic in this country. people are getting type two diabetes much more frequently. 1 in 3 children who have type two diabetes in their lifetime, that is only one of the many reasons why life expectancy is what it is today. >> but isn't that about health care and prevention and educating people about wellness? that's not what this legislation is about. >> oh, no, quite the contrary. this legislation has a very strong preventive services

provision. for the first time we're actually going to put real emphasis on wellness rather than just on illness, and that has cost savings potential as well. >> what about the cost expenses and increases for business? for months business owners, large and small, have been coming on this program and saying the uncertainty over health care costs and the containment was preventing them from hiring. in fact, more than 1,000 companies have gotten waivers because they've threatened, look, this is too expensive, i'm not going to even offer health care to my employees, i can't afford it. >> right now i don't blame any of them because it is very, very expensive. we're seeing a lot of businesses just drop the insurance completely. but that's what this whole idea is about to create a framework that makes it more conducive for business, that gives them more tools, more power to begin to deal with these cost considerations in a more effective way. and once they begin to realize just what those tools are and how they might use them, i think you're going to hear a different story. >> senator, good to have you on

the program. thanks so much. appreciate your time today. senator tom daschle. up next on "the wall street journal report," innovation, invention, and the legacy of one of corporate america's biggest success stories. down here, folks measure commitment by what's getting done. the twenty billion dollars bp committed has helped fund economic and environmental recovery. long-term, bp's made a five hundred million dollar commitment to support scientists studying the environment.  and the gulf is open for business -

 the beaches are beautiful, the seafood is delicious. last year, many areas even reported record tourism seasons. the progress continues... but that doesn't mean our job is done. we're still committed to seeing this through.

welcome back from the aspen ideas festival where some of the biggest minds in business, politics, and culture are ruminating this week.

my guest, walter isaacson, president and ceo of the aspen institute as well as the best-selling author of "steve jobs." >> good to be with you. >> this is a eighth year of the aspen ideas festival. tell me how the event has evolved, what are you looking to achieve in terms of ideas this year. >> you know, when we started it, aspen had many policy programs, we were a think tank, but we didn't open up that much. it felt important that we should allow other people to be giving input, taking away some of the ideas we were wrestling with at the aspen institute. and then there was a certain hunger for that. people, especially in this digital annal, where you share ideas on facebook or on twitter, to actually get together in a nice space, sit down, have long conversations, so this thing has grown. i think what we try to accomplish is finding really good new ideas and then balancing them with the values so that we don't tear ourselves apart in a partisan fashion. >> that's terrific. let me move on to the steve jobs

book. it was less than a year ago that the co-founder of apple, steve jobs, passed away, and your definitive biography came out a few weeks later. you described jobs' world view as binary. how did that personalityinnovat? >> it gave him sort of the intensity and the sort of drive to make sure he tried to make everything perfect. now, just talking to some people a few minutes ago in charge of the severe weather interface design of some other product, and we were saying how steve jobs would just drive things, that if it wasn't perfect, if the screen, the touch screen, the way you swiped it, the scrolling didn't work exactly the way he wanted he would have a four-letter word to describe it. and so it drove people to make the best possible product. that's one of the thing wes see in business. you cover it every day. how much with do we focus on making products absolutely as great as they can be? that's what steve did.

>> and his products were game changers. you look at a product like itunes, really a game changer in the industry. and you write about him personally convincing musicians to get on board with itunes and get on board with that business model with the technology. how do you think that translated in terms of how he convinced the public to buy the products, the iphone came out, what, a few weeks -- a few years ago this week. >> right. well, you know, he had an emotional connection with the products. i think many consumers did as well. some great leaders that you interview have great vision for a company. right? others really get down in the details and care passionately about that and manage every step of the process. steve did both. he had a vision for things. but he realized it had to be simple to get those songs, and he realized he had to convince sony and others to put their music libraries into an itunes store in the simplest way, 99

cents you get a song. just that simple. and it took an intensity of just convincing musicians, convincing the record companies, and then making the ipod just so simple that it transformed how we listen to music and how we buy music. >> you wrote three biographies of men of genius. steve jobs, albert einstein, ben franklin. do you have a take-away on all three men? what do they have in common? >> they're all very smart, but having been a guest on your show, i know you have a lot of smart people on your show and sometimes smart people don't amount to much. what really makes somebody amount to something is being creative and invatdive, thinking a little bit differently. what they all had in common, they were slightly rebellious, slightly misfits. they always questioned authority. whether it's einstein questioning the first paragraph of newton's time marches along second by second no matter how we observe it or ben franklin

being a runaway from puritan boston to try to, you know, create what he did. so i think that ability to think differently, think out of the box, question authority, those were the things that set apart the smart people i wrote about and made them not just smart but geniuses. >> that's really interesting. what do you think the road ahead looks like at apple with tim cook in charge? will jobs' commitment to beauty, to utility still be a cornerstone of that company, do you think? >> yeah. when steve jobs stepped down as ceo, you know, he fell he had implanned into the dna of apple the real core issue of what apple is, which is connecting creativity to technology, connecting great beauty to great engineering. and he had the best team around and still does. he was a tough boss at times, but he made people loyal to him. anybody can be, you know, a bit of a jerk. he actually was charismatic, made people loyal. he had the best in the business. >> what an amazing study and

knowledge base you have. what are you working on these days? >> i'm trying to do a history of the digital age. i mean, we've been transformed by having computers, the internet, the microprocessor, microchips, transistors and we generally don't know who invented any of these things. i'm looking at it through the really cool, really smart, but also innovative and rebellious hacker who is created the digital age. >> no doubt another must read. great to talk with you. up next on "the wall street journal report," we'll look at the news this upcoming week that will have an impact on your money. then it makes for a balanced diet, but what role did broccoli play in the supreme court's health care ruling? while some fiber ads use super models, metamucil uses super hard working psyllium fiber, which gels to remove unsexy waste and reduce cholesterol. taking psyllium fiber won't make you a model but you should feel a little more super. metamucil. down with cholesterol.

for more on our shows a our guests, check out the website. follow me on twitter and on google plus. look for @mariabartiromo. the stories coming up in the week ahead that may move the marks and impact your money. tuesday, car and truck sales for the month of june will be out. on wednesday, of course, it is july 4th, all u.s. markets are closed in honor of independence day. happy independence day, everybody. friday, we get the latest employment numbers. that will show us how many jobs the economy lost or gained in the last month. and finally today, broccoli, it's what's for dinner. the green vegetable made it onto the menu of the supreme court during the oral arguments over the affordable care act. when debate centered on whether a government that made americans buy health insurance could also mandate vegetables.

that concern was dubbed the broccoli horrible by justice ginsburg, and the high in fiber veggie was cited in this week's health care ruling no less than 12 times. current usda price for broccoli averages $1.17 per pound, making it a relative bargain as both part of a balanced diet and landmark jurisprudence. that's it for the show. thanks for being with me. next week, one of the most powerful women in the world of finance, imf managing director christine lagarde will be with us. keep it right here, where wall street meets main street. see you next weekend. ♪ [ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the 2012 c-class with over 2,000 refinements. it's amazing...inside and out.

see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.