i'm heidi collins. "cnn newsroom" continues now with tony harris. everyon. it is thursday, the 30th of july. here are the top stories. health care reform goes from a stand still to a crawl. congress resums work today after a critical compromise shaves billions off the bottom line. beer summit at the white house. the first president mediates a racial dispute between a professor and a police officer. hundreds die in a little noticed showdown with islamist extremists live to nigeria where the army is struggling against the taliban-style insurgency. good morning, everyone, i'm tony harris and you are in the "cnn newsroom." let's see here. agñqh

today and educate the nation about race relations and senior correspondent ed henry is here.ñ ed, good to see you this morning. what is president obama's goal in hosting professor gates and sergeant crowley today? >> top aides here say the president's goal is very simple, to foster a dialogue. to try to get the nation talking about race in a positive way. try to build something upbeat out of what was, obviously, a very difficult situation. the president himself acknowledging his own words at that news conference just over a week ago. not helping the situation initially when he called, i said that the cambridge police had acted stupidly. to be clear, white house official os are cautioning not to expect any grand policy pronouncements or anything like that from the president coming out of this so-called beer summit and just really getting the parties together and trying to tamp everything down here among the parties and then also around the country. you mention the boston police officer situation right now and this sort of building back up with some more racial words being thrown around.

but they're being very clear here that the president is not going to do what robert gibbs called an after-action report. he is not going to sit down with the police officer and professor gates and try to figure out who did what, what happened on that night. instead, they want it to be very positive and forward-looking, tony.y >> our senior correspondent ed henry for us. thank you. another police officer has chimed in on the gates' arrest. it amounts to throwing gas on a fire. he sent a mass e-mail calling professor gates "a banana-eating jungle monkey." here's how our colleagues at cnn's "american morning" handled the story. >> this is the officer,ñ 36-year-old officer justin barrett and he sent the mass e-mail to some other members of the guard and=cí to the "boston globe" venting on a column over professor gates. he uses the phrase jungle monkey not once, twice, three times but four times three referring to

gates and once calling the write ofs of abraham lincoln jungle monkey gibberish. gates, if he had been the officer he verbally assaulted like a banana-eating junkal monkey, i would have sprayed him in the face with pep oc, oc is pepper spray. officer barrett and his attorney launched a defense, of sorts. >> i am sorry that i wrote that. i'm sorry that my family has to deal with thisgt&jh selfish motivation and feelings that i had. i regret that i used such words. i have so many friends of every type of culture and race you can name and i'm not a racist. >> justin barrett didn't callo0 henry gates a jungle monkey to malign him racially. he stated his behavior was like that one of and it was a characterization of the actions

of that man. >> i am sorry for the content of the e-mail. i'm sorry for how people are reacting to it, especially my fellow police officers. i am not a racist. i never have been, never will be. i treat people with dignity and respect, every time. >> maybe at some point during that whole run of sound you did what we did this morning and said, what? let's play, again, for you the explanation that attorney peter moreno gives for what the officer wrote. >> justin barrett didn't call henry gates a jungle monkey to malign him racially. he stated his behavior was like that of one. and it was a characterization of the actions of that man. >> he didn't call him a jungle monkey, he only said he acted like one. >> a fine line. >> the boston police commission has stripped officer barrett of

his gun and badge ahead of a termination hearing. in the next hour of "cnn newsroom" we will look closer at today's meeting and the broader issue of today's profiling and talk with two professors who focus their work on race relations. what you're thinkingh6(mon this issue and this meeting today is this just about three guys and will it make a difference? voice your opinion on our newsroom blog. could this meeting actually improve race relations in this country? will it at least start a dialogue. cnn.com/tony. health care reform deals and delays a house panel got back to work last hour after democrats reached a compromise with party conservatives on the senate side. republican negotiations say they're close to a bipartisan deal, but they may not reach an agreement before the august recess. congressional correspondent brianna keilar is following this story and we will get to brianna in just a couple of minutes with the latest on this developing story. president obama's former

doctor is weighing in now on the health care reform debate and his position may surprise you. the story now from cnn's jim acosta. >> reporter: chicago doctor david shiner has take an hard look at president obama's prescription for health care reform. and sees bad medicine. >> this isn't the kind of health care program that i think is going to work. >> reporter: what makes dr. shiner so special? he was barack obama's personal physician for 22 years. he voted for mr. obama, but the doctor thinks the president's plan doesn't go far enough. >> if i had to say the single one thing, which is the worst part of it, is that private insurance companies continue to be a part of the health scheme. everybody keeps saying we don't want the government getting involved in health care. the government is involved in health care and medicare and it works. >> reporter: shiner would rather see the nation adopt a single payer system like the ones in

canada and europe. something an up and coming state senator obama talked about six years ago. >> i happen to be a proponent of a single payer in health care coverage. but as all of you know, we may not get there immediately because, first, we have to take back the white house and we got to take back the senate. >> reporter: but during the campaign, that position evolved. >> if i were designing a system from scratch, then i'd probably set up a single payer system, but the problem is, we're not starting from scratch. >> reporter: now, the president favors giving americans the option of joining a government-run plan that would compete with private insurers. >> nobody is talking about some government takeover of health care. i'm tired of hearing that. >> reporter: dr. shiner points out that nobody has seen the details of that option, making it a hard sell for the president. >> we don't know fully what the public option is going to be.

if the public option is too good, the patients who are sick will flock to it and i'm not sure it will be able to support itself. >> reporter: shiner almost had a chance to confront the president with his concerns. obama, but he says he was dropped from the program.ap y#ñ >> i just hope congress, and the american public and the president will hear some of my words. >> reporter: dr. shiner will finally get his chance to have his say here in washington. he and other doctors who support a single payer system are gathering at the capital to meet with lawmakers and rally with supporters. he may not be the president's doctor any more, but dr. shiner said he's trying to save the patient before it's too late. ecnn, washington. protest over oa?'s presidential election results are heating up, once again. today's trouble started that cemetery where a symbol of these protests is buried. let's get right to it.

reza sayah is at the iran desk. fill us in on these demonstrations. >> another dramatic day. clashes between opposition supporters and security forces, once again, this time at a cemetery in downtown, south of tehran check that. let's go ahead and set the scene here. this is downtown tehran. the cemetery here. that's where thousands of mourners gathered to remember neda, the first piece of video coming into the iran desk about a couple hours ago. there you see the main cemetery in tehran what appears to be hundreds of people in this particular piece of video. but sources on estimating that about 3,000 people showed up to remember neda and several others killed during the protests on june 12th. about eight days after the disputed vote. who could forget the 26-year-old who was shot and killed. her death, her final moments videotaped. the world saw it. she became an icon sort of a rallying cry for opposition

supporters. iran's leadership had asked permission from the government to mourn neda and the several others killed. the government denied permission, but opposition leaders and their supporters defied that ban. they came out also showing up himself, opposition leader mousavi and there you see video coming in from press tv. now, it's very unusual that state-run, state-funded state tv is showing coverage of an event as it happens. they even had a live reporter on the scene doing reports by phone. keep in mind, this is a government-run state-funded television station and they are reporting an event that certainly doesn't bode well for iran's leadership. about four hours ago, this happened at the cemetery using gunshots in the air and tear gas at some clashes. the crowds disperse and now we're getting reports from sources that they're moving north to a place called the

prayer site where the opposition leaders had asked permission to mourn neda. that was denied. but they're still91o6ç heading there. so, the faceoff continuing at this hour between opposition supporters and security forces. >> hey, reza, correct me if i'm wrong here, but in islam, in the muslim faith tradition. 40 days after a death is a traditional day of mourning? >> you're absolutely right. shia islam and in iran it's tradition. 40 days after someone dies to commemorate that person with a ceremony. of course several people killed on june 20th and a lot of buzz that the people were going to come out in the streets and iran's opposition leaders took the steps to ask permission from iran's government. theydn3 denied it, but this is significant sign, the opposition leaders are, once again, defying the supreme leader and defying iran'su this opposition leadership with plenty of momentum continuing to

thank you. there is an agreement in the house on health care reform, but that doesn't mean everyone is onboard.

what do you do if you live in a part of the country that is so cool that you typically don't have air conditioning and it reaches over 100 degrees? western washington, they're lining up at sears to get the air conditioners, fans, you name it. all-time records broke in seattle yesterday. 103. the old record was 100 and portland topped out at 106 and their all time is 107 and they continue to sweat it out today. good luck, my friend. you'll see cooler weather tonight and tomorrow as that cool ocean breeze kicks in. welcome back to the "cnn newsroom." vancouver, washington, all-time record at 108 and portland and seattle, that is just toasty,

toasty stuff. hot again today across the northwest and, again, the cooler breezes will filtner to the area tonight and tomorrow. not that cool, cool down to the 80s. strong line of thunderstorms heading through eastern texas today. damage in through texas and the ft. worth area with some tornado warnings that were posted earlier today and strong, gusty winds heading towards houston at the moment. your heat warnings are still in effect for parts of the gçrthwest today. seattle, that will be your record and likely not an all-time record. 70 in denver, where unusually cool air is filtering in and 86 degrees in new york city. that was your tower cam in new york city. you're doing travel out of atlanta, groundstop until 11:30 local time. couple showers and thunderstorms around here. dallas and ft. worth dealing with hour delays there. san francisco, temperatures in the upper 50s, cool and cloudy. we want to cool off, head there. dallas or teterboro seeing

30-minute delays.

i'm tony harris. health care reform. deals and delays. a house panel got back to work last hour after democrats  party conservatives on the senate side.

republican negotiations say they're close to a bipartisan deal, but they may not reach an agreement before the august recess. congressional correspondent ìy all right, brianna, let's start with the senate. just like in the house, the senate will not vote on health care before the august recess, but how difficult would it be, really, to reach some kind of ongreement before the break? >> it certainly if it happens will be very difficult but the question is, will it happen at all and is there even a possibility? that is the hope of congressional democrats. they want these three republicans and three democrats from the senate finance committee who spent hours and hours to work out a bipartisan deal to come to one ahead of the break and what we heard last night from two of the republicans in this gang of six, if we can call it that, mike envy from wyoming and chuck grassley from iowa, they basically threw cold water on the idea of coming to some kind of idea before them before the

senate breaks for august recess. that said, senator grassley was on cnn's "american morning" this morning and he wasn't so blunt about it. he certainly said no chance of a deal by tomorrow, but when it comes to next week, well, he left the door open. here's what he said. >> well, there's no way we can get all the compromising that needs to be done by an artificial deadline of friday of this week. so, we're going to continue to work together this week and next week, but we're getting close. >> now, senator grassley laid out the sticking points, generally speaking, that remain. of course, one of the big ones, how to pay for this, tony. obviously, tax revenue is going to be needed and how exactly do you structure that tax and then what exactly does this proposal look like? we know, tony, it will include this nonprofit health cooperative. you think of maybe rural electricity and maybe even a co-op apartment in8nklq new yory

or other big cities and based loosely on that model instead of the government-run option. >> the so-called public option. we'll drillqtdown on this whole idea of a health care cooperative with our seniordmñp medical correspondent elizabeth cohen next hour. but let's get back to this deal between the blue dog conservative democrats and democratic leaders. there are still many democrats who are not exactly onboard, right? >> there are. and we're talking about democrats from the right and democrats from left. because this was a deal worked out, tony, between some of the blue dog democrats that were on this key committee that health care reform had kind% in. remember, there were seven blue dog democrats who are in these negotiations and only four of them signed on. there were three who would not get on board and then what you have from the left side of the democratic party, liberal democrats, they're concerned about the kind of concessions that these conservative democrats @@@@@@@@@@@@@@@@@@@@@@

what's happening with the government's efforts? and even this week the treasury department summoned 25, 26 of the ceos or the head of the loan servicing companies that say, all right, let's figure out five months into this, why can't we get this right? part of the problem, tony, is that when you look at the calculation, however you look at it, a certain number of people after they modify their loans, they're still going to lose the house anyway. they're going to fall behind again. the banks, the banks are leery in some cases, trying to figure out who they can save and who they can't. >> christine romans for us. christine, appreciate it, thank you. a company that set multiple

records with its quarterly profits is finally feeling the effects of the recession, but exxon mobil's numbers still big. susan lisovicz is on the floor of the new york stock exchange to crunch those numbers for us. good morning, susan. >> good morning, tony. no company ever made more money than exxon mobil did last year. it cleared $45 billion, but exxon mobil's prosperity is tied to the volatility of oil prices and what a difference a year makes. its quarterly earnings plunged nearly 70%. still, the company cleared near ly, but that is just a third of what it did a year ago. you really see the difference and its earnings missed the street by a long shot. also its revenue fell by nearly 50%. exxon mobil shares are down about 1.5%. but the market is rallying big time. the dow is above 9,200 for the first time since november.

the nasdaq is above 2,000 for the first time since october and the s&p 500 is getting close to 1,000. what does that tell you? it means that the bulls are finding little resistance and there may be more life in this summer rally, tony. >> back to the exon story for just a moment. is that story all about the drop in oil prices? >> largely. and oil prices, by the way, are up right now $366 a barrel. compare that to a year ago. in the second quarter oil prices averaged less than half of what it did a year ago. why are oil prices so much lower? not only a recession here in the u.s., the biggest consumer, but weak demand, turning exxon mobil and turned a whole bunch of oil companies and conoco fphillips and bp. but exxon mobil still made a lot of money in three months-ti' ti tony. muslims against christians.

the fight killing hundreds in nigeria. we'll take you there next in the "cnn newsroom."

very quickly new video of the demonstrations in iran coming into the "cnn newsroom." let's get you to reza sayah at

the news desk. >> again, clashing with security forces and new video into the iran desk. let's go ahead and show it to you. about 3,000 people, according to sources, showing up at the cemetery in tehran. to mourn the death and several others killed during the june 20th protest, eight days after the disputed vote and there you see security forces meeting them, according to witnesses and sources. security forces shot fire into the air and used tear gas to disperse the crowds. the crowds moving to the north of tehran, according to sources, we are still seeing clashes. what does this all mean? this means after a ferocious crackdown that lasted seven weeks, the opposition movement remains defiant and they still have momentum and continuing to come out to the street and we saw it again today in the streets of tehran, tony. >> boy, reza, keep us posted when you get this new video into the iran desk.

reza, appreciate it. thank you. intensifying on several fronts around the world. we're following the new developments. with us from nigeria, where there are reports of hundreds of people being killed in batbles between the military and a fundamentalist sec. ivan watson live in afghanistan acetal been attacks get more brazen and deadly and stan grant gets his hands on a taliban code of conduct booklet. he is bringing us that story live from pakistan. let's begin with you, christian. if you would, christen, tell us who is fighting whom at this point? >> all right, tony, well, as you mentioned, we have a fundamentalist extremist group in northern nigeria who are targeting government institutions. they want the removal on western education which local governments have been trying to enter and strict islamic laws introduced in nigeria, niyearia,

remember, has mrit in two. a christian south and muslim north. all these attacks concentrated in the north against muslims. tones ton tony? >> you mentioned a fundamentalist sect? who is that group's leader? >> the leader is a man called mohammad usef. we don't know much about him. reports have come in that he is quite a wealthy man and has a western education and based up in northern nigeria and then quite quiet over the years and we never heard much of this particular group until now. as you mentioned earlier, we have seen five days of heavy fighting since sunday where his group have attacked governments and 400 people dead and thousands displaced. >> christian, is this group taliban or al qaeda backed or influenced?

>> we don't have any reports of any foreign backing for this group and it's highly unlikely. we don't really have al qaeda or taliban ties in nigeria, but the concern is, this is where the nigerian government has cracked down heavily and brought up reinforcements to bring this down. if they don't deal with this problem right now, then maybe al qaeda or someone else could move in. >> another quick one here, what is it that we saw the pictures just a moment ago of either the dead or seriously wounded or both, what's the death toll according to official reports and how does that square with what you were hearing from human rights groups? >> they're both beginning to tally. now, human rights groups say 400 people dead. the military are carrying out operations and we can expect

that tally to rise and also hundreds of casualties and also thousands of people displaced. people have been fleeing the violence towards military barracks to find somewhere safe to get away from this violence, which is still carrying on, tony. >> appreciate it, stand by, if you would, please. we want to get the big picture here and a look at how this violence in nigeria affects the united states. our josh levs has that side of the story for us. josh? >> hi, tony. it really does. the u.s. has a stake on what goes on in nigeria. i would like to start off with the united states and then zoom over to the area. let's go into nigeria right now and two major places i want to locate for you, you have the capital abuja and then down here cagos, but check this out, tony. i want you to see these figures. first of all, the population 150 million and we are talking about the ninth biggest population of any in the world.

half the population there is muslim and look at the poverty line. this population, 70% below the poverty line. let's just think about that for a second. how many times have we heard from president bush and president obama and others about how poverty can spread terrorism. this is certainly a clear issue for the united states and huge population, including a large muslim population. let me go back to the map because i want you to see more about what is going on here. zoom into one more location here. this is a small town in the north and the reason i want to go there is that americans actually have memories of this area controlled by law and the reason is this piece of video that might be familiar to you. this was a woman we were hearing a lot about back in 2004, tony. this was a woman who was originally sentenced to stoning death because she had allegedly committed adultery and pregnant outside of wedlock. they determined that the reason

was that it was not in her area and the point she had become pregnant but i wanted to point this out. was a moment a lot of people around the world and in the united states started to realize that she was taking over a large part of nigeria. before we go, a whole other problem nigeria is facing, that's what's going on down here in the nigeria delta. you have the oil installations and we are hearing about a good deal and down there violence from the oil installations, as well. another kind of violence that is happening sometimes. a little video of one of the groups that are carrying out attacks on oil installations in that area. but all that together and what do you have, tony? one other great concern for the u.s. because niyearia is the fifth biggest foreign oil supplier to our country. yet another reason why we care about what goes on in that country, tony. >> josh, thank you. let's get back to the other international hot spots.

afghanistan, ivan watson is in kabul, the capital. you just returned from being embedded with marines in southern afghanistan and it's been a really hard hit in that area and it's been a very difficult month for the marines and other international forces. >> absolutely. what you had on the ground there, tony. a major u.s. military offensive to try to push the taliban out of some of its safe havens in southern afghanistan. summer is the fighting season here in afghanistan, traditionally, tony. the deadliest month yet for u.s. and nato forces in afghanistan, tony. some 40 american forces killed this month, more than 30 nato forces in addition to that killed. the bloodiest, deadliest month for nato and u.s. forces since this war began some eight years ago. and the taliban tactics have evolved over these years. what we have seen over the past couple weeks, taliban insurgents strapped with suicide bomb vests

attacking a number of eastern cities armed that same time. and they run in and they blow up the bombs and they shoot at the same time. it's a terrifying attack going against afghan government buildings, but the deadliest weapon that they had so far, tony, is the roadside bomb called the improvised explosive device and that's what killed seven out of the eight marines in the first two weeks of this offensive in southern afghanistan, tony. >> and, ivan, what affect is this insurgency having on afghan's presidential elections? >> well, just this week, tony, the taliban issued a statement calling for a boycott of the august 20th election and calling on afghan to block all the roads the day before the election accusing this, reclaiming that this is an american process, not an afghan process. now, there have been some reaction from the afghan government saying the taliban is a threat to peace and security and they are because i just

spoke with election officials today here in afghanistan and kabul and they say 700 of the 7,000 polling stations around the country are still too unstable, still too dangerous for voters to be able to go to the polls there and most of those polling stations are in areas to the south and east of afghanistan along the pakistani border. this is a cross border phenomenon and, tony, let's bring in stan grant, my colleague in islamabad to explain some of the pakistani perspective for this. >> ivan has just discussed the front on the afghan side, which we've seen heavy fighting between nato and the u.s. forces and very heavy fighting here, as well. the pakistan military has been trying to force out the taliban from the northern regions here. that fighting has been going on for several months now. heavy casualties and almost 3 million people fleeing the fighting from that region and the taliban came out with a new tactic now, issuing a code of

conduct. this has been printed and it lays down rules for fighters in the field. the dos and don'ts. they are not to steal from civilians and not to take arms from civilians and not to sell hostages for money. any soldiers who are captured must be executed only on the face of mula omar who was the supreme taliban leader. an attempt to try to win over the hearts and mind of the people. this insurge ans needs the support of the population. they fear they are losing it. tony? >> stan, how closely will all this be followed by taliban foot soldiers? >> that's the big question. we're already hearing of risks within the taliban ranks themselves. we know that the taliban have employed very severe tactics to try to drive a wedge between people in the areas that they try to occupy. just here in the swat valley, for instance, a rain of terror by the taliban where the bodies

of beheaded victims were paraded through the streets to try to scare people away. women were forced indoors. this would not adhere to this code of conduct and the report that the hardliners in the field want to maintain that presence and also an attempt to shore up their position. the united states is interested in reaching out to what they call the good taliban, the moderates and the taliban they can negotiate with. that's what the leadership do not want. they do not want their own movement fractured trying to reassert that and, ivan, what is the reaction in afghanistan from u.s. officials there? >> stan, they're calling this empty propaganda and they're using examples. an afghan defense ministry calling they beheaded an afghan national army soldier and that doesn't fit any rule of war and a u.s. military spokeswoman here saying that the majority of the victims from these roadside bombs and the suicide attacks

are actually afghan civilians. they have already come out and said that this is basically propaganda, stan. >> terrific, comprehensive reporting, gentlemen, thank you so much. a lot going on in the international hot spots. christian is in nigeria, ivan watson in kabul, afghanistan and stan granlt is watching events from islamabad, pakistan. gentlemen, thank you. terrific. the arrest of a black harvard professor by a white officer generated racial profiling. we will take a look at a few of we will take a look at a few of the i-reports you sent us. introducing the all new chevy equinox.

three guys lansh hanging out in the back yard throwing back a year or two gets national attention, oh, yeah, when the president of the united states is the host. mr. obama will meet with harvard professor henry louis gates and james crowley. gates accused crowley of racial profiling when he arrested him at his home july 16 frth disorderly misconduct. and president obama had to back track when he said police acted stupidly and his comment led to today's meeting. it sparked a national conversation on whether race remains a factor in american society. we have received a number of i-reports detailing individual experiences of racial profiling. >> we have fit the description of four black males in a green vehicle when there were six of us in a red vehicle and we knew

right away it had nuthing to do with that. just knew that we were being profiled and once they saw we weren't high school kids, he let us go. it was very upsetting to all of us. >> i actually was getting stopped because i drove a porsche and that was in my 20s. wasn't because i was selling drugs or anything but because i was young and had the wrong type of car. >> what's your thinking on this issue, this meeting today? is it just about these three guys? will it make a difference? voice your opinion at our newsroom blog. could this meeting improve race relations in this country and will it get the conversation started. logon now, just let us know what you're thinking on pis. the

new developments on who gets

michael jackson's children. a lawyer for the jackson family says debbie rowe, jackson's ex-wife and the mother of his two oldest children, has agreed not to challenge the singer's mother for custody of the children. we are told the deal is not about money. we're also getting a firsthand account of the frantic moments as jackson lay dying, as well as the focus of a death investigation. cnn's randi kaye reports. 4 >> reporter: a federal law enforcement official telling us now that, quote, dr. murray is the only one they're looking at. now, we know that other doctors' records have been subpoenaed, but clearly now with three search warrants now served on dr. conrad murray's property, he has become the central focus. remember his lawyer told us that they were searching those properties looking for evidence in the offense of manslaughter. dr. murray's lawyer's office told me they don't think an arrest is imminent because they haven't seen a proof or even a final autopsy report. also murray's loan from the bank

for his country club home was $1.6 million. he failed to make his payment of just over $15,000 last january and has been racking up debt ever since. i called his attorney about this. his spokeswoman confirmed he is facing the threat of foreclosure and told me, quote, he was to be paid $150,000 a month by michael jackson. he was not paid by aeg, that's the tour promoter, or jackson, for the two months he worked for them, so he is low on money. meanwhile, if dr. murray fails to pay up boy mid-january, he could lose his house. we have some insights to report about the final morning at his home. kai chase told cnn that dr. murray usually came down to get michael jackson his breakfast around 10:00 a.m., to get him something to eat or drink. but on june 25th, the doctor did not come downstairs until noon. the chef says at that point dr. murray came running halfway down the stairs that actually lead to the kitchen in the house, screaming, hurry, get prince,

get security. she said the house became chaotic, security guards were rushing around. the housekeepers were screaming and that michael jackson's daughter paris was screaming, daddy, daddy. the chef said that everyone gathered in a circle and prayed. we've learned the jackson case is not the first time dr. murray has had a brush with the law. he was charged in a domestic abuse case back in arizona back back in 1994. deputies apparently responded to a police call. dr. murray was arrested for, quote, domestic violence, disorderly conduct. we're told by tucson police that his girlfriend accused him of having an affair and threw something at him. then dr. murray allegedly pushed her down. he was acquitted about five months later. randi kaye, cnn, los angeles. top stories in the "cnn newsroom," the professor, the police officer and the president. details on beer as a political tool, and the upcoming white house suds summit. and whether you're for it or

against it, you can't escape. the flurry of television ads trying to sway your opinion on health care reform and they've only just begun. all that in the next hour. into revolutionary performance. one word makes the difference between defining the mission and accomplishing the mission. one word makes the difference in defending our nation and the cause of freedom. how... is the word that makes all the difference. most people try to get rid of algae, and we're trying to grow it. the algae are very beautiful. they come in blue or red, golden, green. algae could be converted into biofuels... that we could someday run our cars on. in using algae to form biofuels, we're not competing with the food supply. and they absorb co2, so they help solve the greenhouse problem, as well.

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you know, it was quite a quiet sunday in plain city, utah, until the cops were called on a reckless driver, a really short driver. take a look at that. there he is. on the move, baby! he's 7 years old. police tailed him for seven blocks as he was weaving in and out of traffic and blew through stop signs. the cop wasn't going to catch him. the parents had no idea the car or the kid was missing. he was supposed to be in church. the boy told deputies it was just too hot to go to church!

we're close, but we're not there yet. that's the word on health care reform from a senate republican involved in the negotiations. senator charles grassley says it's important for both parties to have a say in what happens. >> we're working on a partisan approach here in the senate. it will probably be the only partisan approach that's before the congress. and probably it takes bipartisanship to get anything done, and it ought to be bipartisan when you're restructuring one-sixth of the economy. and also when you're affecting a life-or-death situation of every citizen in our country. and so i expect that this progress we've made is pretty good indication that we'll get a bill to the president this fall. >> senior congressional correspondent, dana bash, live from capitol hill. dana, okay, so, what is the latest on the work of the senate finance committee panel? >> reporter: well, what you just

heard from senator grassley is good news for the president. >> yeah. >> reporter: saying that he is continuing to work on a bipartisan basis, and he does expect a bill by the fall, but there is also some bad news for the president, big time. and that is, because both that republican, chuck grassley, and republican mike ensign, in fact, i want to put their pictures on the screen. because those are two of the three republicans working on a bipartisan basis to get a deal, a health care deal, well, those two republicans told our intrepid congressional producer, ted barrett, last night that they do not see it possible to have a deal done by the time congress leaves for august recess. that is a big blow, tony, to the president. because he -- after he understood that there wouldn't be full senate and house votes, he at least wanted to get a deal announced in the next couple of weeks. he has made that abundantly clear to the negotiators. but that is apparently not going to happen now. and, in fact, we caught up with mike enzi, that republican, just a few minutes ago in the hallway. we want to play for you what he

said about that. >> the bill is not ready for prime time, so i don't know any way that it can be completed today or next week, and then we're at the august break. and it is important to get it right for america. >> reporter: so, again, all eyes are on those negotiators, hoping to get some momentum for the president's top priority. and these republicans were critical to getting the momentum are saying it's not going to happen in the next couple of weeks. won't happen until the fall. >> well, dana, let's drill down on this just a bit here. now, what happened? i'm listening to the radio, again, driving in to work, and senator grassley indicated that we're essentially 95% home. which only leaves, by my math, 5% to work out. so, what has happened here? is this a situation where senator grassley, senator enzi went back to brief members -- other senate republicans, members of the caucus, and they received a bit of an earful here?

what's happened? >> reporter: they did. in fact, there was a meeting late yesterday that those two republicans had. they do it weekly. they brief their fellow republican senators on the progress and the process going on in those bipartisan talks. and it was coming out of that meeting that those two republican senators told our ted barrett, we don't think it's going to happen. you cannot underestimate the kind of pressure that is on these republicans, especially somebody like mike enzi who is a conservative who is not, you know, generally involved in these bipartisan talks. the pressure on them to basically bail from these talks, and if nothing else, to not give in too much. and, you know, mike enzi was very clear yesterday, you know, with the reports that there was progress, and maybe even a deal this week. >> yes. >> reporter: he said he was very angry about that. he said if he's going to be part of a deal, that's not going to happen. you can't underestimate the republican pressure, tony. >> dana, stand where you are. on the house side, democrat leaders have reached a deal with fiscal conservatives in the

party. it trims the cost of the house plan by $100 billion. it exempts small businesses with payrolls under $500,000 from having to provide or pay for coverage. and it would change the public plan structure, so payments to doctors and hospitals are tied to lower medicare rates. dana's back with us. so, dana, how close is the overall house to signing off on this deal? >> reporter: i want to show you another picture. i think we have a live picture of something that's going on that wasn't going on for two weeks. it was delayed. and that is work in the energy and commerce committee. >> right. >> reporter: it was delayed because of a revolt among the conservative democrats. that work is going on right now. you see the chairman, henry waxman. they do expect to have a bill out of the committee by tomorrow. by the end of the week. there won't be a full house vote until the fall. we know that was part of the deal that was announced until yesterday. that's work that is able to continue now, because of that deal. however, it has not ended the ugliness and the bloodiness within the democratic party.

because there are many liberals who are looking at this and saying, wait a minute, we think the changes that you just talked about, tony, that were made to the government-run public option -- >> yes. >> reporter: -- shaving some of the costs off of this, they think that has hurt the overall product and the idea of reform. so, they're not happy bit. we're talking to some liberals who say ultimately they probably won't vote for this because they say it doesn't go far enough now. >> it's tough! health care reform was always going to be tough, and now we know why. all right, our senior congressional correspondent, dana bash, for us. good stuff. thanks. >> reporter: thank you. the debate over health care reform is playing out on your television set. interest groups have flooded the airways with ads for and against the various proposals. that from us from our senior political correspondent, candy crowley. >> reporter: have microphone, will travel. >> if you like your doctor, you keep him. if you like your health care plan, you keep it. >> reporter: there are other

ways to push the issue, you may have noticed. >> you could end up with government bureaucrats taking over your choices. getting in between you and your doctor. >> now, the republican republicans say congress should slow down? that's because when something goes slow enough, it's easy to kill it. >> reporter: so far, just about $50 million has been spent on tv ads related to health care reform. aired by 50 different groups. insurance and pharmaceutical associations, unions, nurses, the soft drink industry, republicans and democrats. all with two things in common, a vested interest and deep pockets. about half the buys are aired nationally. >> it's really trying to reach the most engaged, sort of party activists, legislative, lawmakers, you know, reporters, bloggers, you know, the people that are sort of plugged in all the time. most americans right now at the peek. >> barack obama's massive spends experiment -- >> reporter: the ads fall into four basic categories, nor and against an obama- style package, pro-health care reform in

general. >> we may finally get health care reform. >> it's about time. >> reporter: and ads from stakeholders. autism speaks. >> speaker pelosi and reid, tell them that reform that fails to curb discrimination is impossible. >> reporter: the soft drink industry. >> this is no time for congress to add taxes to the simple pleshlures we all enjoy like juice drinks and soda. >> reporter: but in general the ads are soft edged. but as summer moves into fall and the kids go back to school and congress begins to debate the health care bill, katie bar the door or turn off the tv. >> you'll see distinct lines and they'll get much more emotional in their lines of attack and it will get politicized. >> reporter: it's already begun. here's what eric cantor will see if he hits the remote at home. >> i see that eric cantor voted against health care reform that would deny coverage for pre-existing conditions like cancer.

he wants me to fight cancer and the insurance companies? >> reporter: it's not about getting congressman can'ter to vote for the house bill. this is a warning shot. count on health care reform for an issue for 2010. hardball to come. candy crowley, cnn, washington. you know, we've been hearing a lot about the health insurance cooperatives as part of the health care reform plans. how are they and how would they work? senior medical correspondent, elizabeth cohen, is hard at work now, she'll be here in just a couple of minutes with some answers to all of our questions. race relations are taking center stage at the white house late today. it's beer around a picnic table for the president, the professor, and a police officer. senior white house correspondent, ed henry, is here. ed, what does president obama hope to accomplish in this meeting with professor gates and sergeant crowley later today? >> reporter: well, good morning, tony. what's interesting is that white house spokesman, robert gibbs, is really trying to downplay expectations about this. obviously a lot of people around the country talking about this, really an extraordinary meeting.

having the president bring together the two figures involved in a very difficult dispute a couple weeks ago that's really resonated across the country. robert gibbs saying do not expect the president today to announce any new initiatives to battle racial profiling, anything specific. maybe don't even expect the president to talk, when the media's allowed in very briefly for this summit, the cameras. it's probably going to be a photo-op where nobody will actually speak out, including the president, professor gates or sergeant crowley. instead, robert gibbs saying, look, don't even expect, you know, a lot of talk about what happened that night when the cameras are away. this is not going to be an after-action police report about what happened on that night. instead, robert gibbs saying, look, this is going to be about the president trying to start a dialogue in this country, to move beyond some of the tension we've seen over the last couple of weeks. maybe project something positive of what has largely been kind of a negative episode, tony. >> so, wait a minute, ed, we may

not get statements even from the gentlemen? >> reporter: that's right. that's the latest from the white house. just in the last little while. now saying that when the cameras are let in, be let in very briefly out on the south lawn, we're expecting this to happen on the picnic table over by the swing set that the president purchased for his daughters. we're also told, for example, that the families of both sergeant crowley as well as professor gates, will be here for this so-called summit. but, you know, that obviously suggests that they're looking for more of a personal touch. >> yes. >> reporter: they're not trying to get into policy discussions, et cetera, with the families involved. and robert gibbs adding don't expect to hear from the president or to even hear, as he put it, from a glass of beer. maybe a little bit of humor there to say, look, we're probably not going to even here from the president of the united states. >> boy. >> reporter: instead he just wants the photo of everybody together, tony. >> you mentioned the glass of beer. i understand -- this is a bit of breaking news here -- there's a

bit of a controversy brewing. ha ha, sorry. >> reporter: brewing, oh! >> about what beer is going to be served. can you clear up this breaking news for us? >> reporter: i can clear it up. i think "the wall street journal" put it best saying that some of the beer companies are hopping mad about it. sam adams in particular. richard meel from massachusetts wrote the president the last 24 hours and said, mr. president, you need to serve sam adams because not only are the key players from massachusetts, beer brewed in boston, but also sam adams is the largest u.s. brewing company. >> wow. >> reporter: that the president saying he's going to have bud light. it's now owned as you know, inbev, the belgium company. it's not an american company anymore. i think what this tells us more than anything, around the white house, politics can be interjected in anything, even if you have the president trying to turn a negative episode into something positive, people are going to complain about things, no matter, tony. >> i guess the sam adams argument fell a little flat for this white house. ed, we really need to go.

ed henry for us, ed, appreciate it. thank you. >> reporter: thanks, tony. and what is your thinking on this issue and this meeting today? is this just about three guys? will it make a difference? voice your opinion on our "newsroom" blog. could this meeting improve race relations in the country? will it even start a dialogue? maybe it will help if the parties involved had something. i don't know. just thinking out loud. logon, sound off, cnn.com/tony. the beer summit is set for 6:00 eastern this afternoon and you can see live coverage on cnn. be in "the situation room" with our wolf blitzer. that is 6:00 eastern. that's 3:00 on the west coast. a lot of first-time home buyers are scrambling to take advantage of the government's tax credit before time runs out. as always, whenever there is money involved, there is the possibility for fraud. we've got some tips to help you avoid getting scammed. tion of as to connect the world.

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a rare instance in iran today. something we've not seen before in these postelection protests. a journalist from government-backed television network reporting from the cemetery were one of the symbols of these protests is buried. reza sayah is at cnn's iran desk. how significant is this, reza? what does it mean? >> i'm not quite sure what it means at this point. but this is very, very rare.

if my memory serves me correctly, this isn't something we've seen before. remember, all television stations in iran are funded and run by the government. so, they usually don't cover events that are not favorable to the government. but today they did. press tv, the english-language, state-funded television station in iran, at this demonstration at tehran's main cemetery, according to sources, about 3,000 people showed up there to remember 26-year-old neda agha-soltan, the young woman, who along with several other people were killed during the june 20th protests eight days after the disputes vote. and they're covering the event, showing pictures of security forces charging the protesters was press tv. in fact, they had a reporter there who was doing live telephone reports. very, very unusual. again, not sure exactly what this means. >> right. >> but press tv was there. we also want to show you, tony,

some dramatic video coming in today after the appearance at the grave site of neda agha-soltan this morning. the crowds were dispersed and they headed up north to neighborhoods in central tehran. there you just see video that just came in to the iran desk moments ago. there you see a security officer with a baton. look at this face-off here. this is the defiance that we've been seeing. >> whoa! >> homes not going away. >> exactly. >> he is not going away. and there you see the defiance that has really marked this opposition movement. so, what started five hours ago, at the cemetery commemorating neda, has now, according to our sources, poured into pockets and neighborhoods in downtown tehran where witnesses are telling us these face-offs, these clashes are continuing to happen. based on what we're seeing today, tony, this opposition movement. >> absolutely. >> with plenty of momentum despite a crackdown by the government, they're not going

away. >> this is really something, all right, reza sayah at our iran desk. eight appreciate it, thank you. >> you're welcome. well, we don't want you to be a victim of first-time home buyer, tax credit fraud. in the first case, nationwide, the irs has just indicted a tax preparer for fraud involving this particular credit. cnn's personal finance editor, gerri willis, is with us now with more details. good to see you, gerri. what's going on here? >> well, hi there, tony. look, the irs as you said just prosecuted a tax preparer in jacksonville, florida, for falsely claiming the $8,000, first-time home buyer credit on a client's return. now, his clients either didn't buy the home or they didn't qualify for the credit. and there are more of these cases. 24 more criminal investigations pending. the agency said it has screening tools in place that can detect fraud. so, if you're caught, the penalties are steep, three years in jail, up to $250,000 in

fines. even if you use a tax preparer, you are responsible for the accuracy of your tax returns. you may have to pay back taxes and penalties and interest. >> how can consumers protect themselves from fraud in this case? >> well, in this particular case, the tax preparer allegedly claimed the tax credit so he would get bigger refunds and more clients and fees. here's what you do, you've got to use a reputable tax preparer here. the sad truth is anybody can put out a shingle and claim to be a tax preparer. to be safe, you want to pick a certified tax preparer or an enrolled agent. you can find out fur cpa has had problems or disciplinarian axes against him or her by going to the aspca website and they show you how to pick a professional. don't go with a tax preparer that promises you a big refund. that's a real red flag. make sure the refund, too, is coming directly to you. >> one more point.

maybe it would be helpful to take a big step back here. remind us how this tax credit actually works. >> well, it's a tax credit, right? it provides up to $8,000 for first-time home buyers who qualify. it's a credit ask not a tax deduction. to qualify you have to be a first-time home buyer and you cannot owned a home in the past three years. and you have to close before december 1st of this year. go to federaltaxcredit.com to find out more. >> thank you. >> my pleasure. co-ops are the new health care option getting a lot of attention on capitol hill. what does it mean for you.

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polls show support for president obama's approach to health care reform slipping. among the latest, "the new york times"/cbs poll, 66% of respondents were concerned that they might eventually lose their

insurance. senior medical correspondent, elizabeth cohen, joins us now. what else are we seeing in this particular poll here, elizabeth? >> this poll is really interesting. because what it shows is that people are concerned that health care reform may limit their quality of care. in other words, decrease their quality of care. and also limit someone's ability to choose their doctor and to get the tests and the treatments that they want. and people are concerned about this, even though the president has addressed this over and over again. >> if you like your health care plan, you'll be able to keep your health care plan. those that oppose reform will also tell you under our plan that you won't get to choose your doctor, that some bureaucrat will choose for you. i have been as clear as i can be, under the reform i've proposed, if you like your doctor, you keep your doctor. if you like your health care plan, you keep your health care plan. >> well, okay, over and over again, but, elizabeth, it seems that the people just don't believe the president on this point. >> right. i mean, we just showed imsaying

it three times. >> yeah. >> we had many choices, there were many times he said that. so either people don't believe him -- >> right. >> -- or what may be going on is people are sort of wary about uncertainty. so, they may be thinking in their head, well, sure, the president says my health care isn't going to change if i'm happy with my health care, but does he really know what's going to happen down the road? when you start messing with something as big and complicated as health care, does he really know? can he really make that promise? either they don't believe him or they are really wondering whether he can make the promise. >> yeah, a good distinction there. there's something else the president has emphasized over and over again. tell us about that. >> right. he has emphasized over and over again that this is not socialized medicine. >> yes. >> so, let's take a listen to times where he's talked about that. >> okay. >> opponents of health reform warn that this is all some big plot for socialized medicine or government-run health care with long lines and rationed care. that's not true either.

the reason this has been controversial is, you know, a lot of people have heard this phrase socialized medicine, and they say, we don't want government-run health care. we don't want a canadian-style plan. nobody's talking about that. i've received letters that say i don't want a government-run program. i don't want socialized medicine. and, by the way, don't touch my medicare. >> i don't want socialized medicine, but don't touch my medicare. will you explain to us, please, what medicare is? >> some would say that medicare has some aspects of socialized medicine. >> right. right. >> it's something that you get just by turning 65. >> right. >> you don't have to do anything to get it. it is a single-payer system. the government pays for it. the government runs it. and so people see sort of a disconnect. >> there's a disconnect. people don't associate medicare with the idea of -- of a government-run insurance program. >> i think what's been going on

is that medicare's been around with us for 40 years, so people think of it sort of like an entitlement. it's just sort of there. people don't think of its a government-run health care, and that's what it is. people like their medicare. they want their medicare when they turn 65. >> if you're going to pass this, you better get the language right. the semantics are real important, it seems? >> right. because if you use certain language, people think socialized medicine. and somehow medicare they don't put into that category, but the term, people just freak out over socialized medicine. they freak out over it. you can say it as much as you want, it's not socialized medicine, but people are still freaked about it. >> elizabeth, thank you. >> sure. following this story with elizabeth every single day, we can certainly tell you that this fight for health care reform is going to be a long one, particularly to get a bill. and a long way to changing the way we view health care reform and health care in this country, so how can you keep track of how the bills are changing and how

they might impact you? josh levs is here with the latest from cnn.com. walk us through this, josh. >> it's such a moving target, tony. >> it is. >> and you know me, i like to show up with the hard facts, right? i like to be able to satisfy it solidly, this is what the deal is. the reason i'm here right now, i really want people to check something out, had is really cool. cnnmoney.com, zoom in, it has a whole spread of health care. go to the main page of cnnmoney.com and click on where you see "fixing health care." check this out, tony, every time you see a new blue line, it's an updated story taking through a lot of different stuff. one of my favorite features is this which takes you through the three major bills being considered. if you want to be a wonk and dig in how it might affect the individual mandate and how it might be structured, they compare all three of the bills that have been floating around in congress. but check out the headline here, "what health reform means for you." i have a couple of graphics because i want to show you you what the team did. show you a couple of examples.

if you get coverage at work, you'll be unlikely to see a change and you might potentially see a new tax. let's go to the next one. if you buy the coverage yourself, it might be different. you might have lower costs and you also might get some help from your employer in paying for the insurance you get outside of work. the third possibility there is that you don't have insurance. as we've talked about, tens of millions don't, you might get some help from the government. you might also, as you've heard, the possible mandate, you might be required to get it. so, all that. but i'm also going to tell you, even as you look at that. it's a moving target and there are some people that will say, wait a second, the latest version of the bill changes that a little bit. and we're hearing different arguments. take a look at this from "fortune" magazine and cnnmoney, three freedoms you'd lose. this is writer from "fortune" that said there are things that you would lose. i'll make it a tease. cnnmoney.com, click on "fixing health care." a one-stop shop. >> our money team is all over

this. >> i'm amazed. >> they really do a terrific job and cnnmoney.com is the page. that's the site for the latest on what's in these bills and how they're changing from moment to moment. josh, appreciate it. the beer summit at the white house, what can the president learn from the racially charged issue. i'll stalk to two different people with different takes. when i was told i had diabetes, i felt amazingly boxed in. (announcer) joe uses the contour meter from bayer. (joe) my meter absolutely adapts to me and my lifestyle. i'm joe james, and being outside of the box is my simple win. (announcer) now available in five vibrant colors. people notice my devotion to family. people notice my love for animals. my smile. my passion for teaching. my cool car.

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i think i'll go with the basic package. good choice. only meineke lets you choose the brake service that's right for you. and save 50% on pads and shoes. meineke. all right. cnnmoney.com, that is the site to visit if you want the latest financial news and analysis. the lead story, stocks at eight-month highs. your 201(k) may be a 301(k). once again, cnnmoney.com is the place to go for the latest financial news and analysis. our money team does a good job. let's look at the big board. three hours into the trading day, the dow is up 150 points. what a nice little bull charge here. the nasdaq, the tech-heavy nasdaq, up 23 points. we are following the numbers throughout the day with susan

lisovicz from the floor of the new york stock exchange right here in the "cnn newsroom." you know, at a time when companies are laying off workers, just to survive, we found a couple in north carolina who have managed to increase their revenue and expand their small businesses. here's cnn's reynolds wolf with today's "money & main street" segment. . >> reporter: scott and julie hamilton took their life savings and borrowed money from their family and their bank to invest in a dream. these parents of three boys opened a kid-friendly franchise, bounce you, in charlotte, north carolina, last year. an entrepreneurial strong city, and then the economy took a nosedive. >> we knew we were going to have to get creative and proactive. >> reporter: that meant coming up with a marketing strategy to get customers into the door. they focused on children's birthdays and smaller, less expensive parties and even some weeknight activities >> we have party packs that start at just $150. and we have all different kinds

of sizes, all different budgets, and that seems to have really helped a lot. >> it's not just the weekend business which was originally we bought into it for, now we have parties on the weeknights, we have summer camp during the day. we'll have open bounce as well. >> reporter: they're seeing it pay off. the business has increased by 20% with zero layoffs. it's a common story in charlotte. according to the chamber of commerce, more than 7,300 jobs have been created by new business so far this year. mostly small business. the hamiltons say tv and direct mail ads, online marketing, and fund-raising partnerships have all helped. >> we have called every school and every church and every youth group and every scouting group, and we're talking to them about our different programs. >> reporter: all part of the plan to get people through their doors and keep them coming back. >> it's real easy to get on the inflatables and play with the kids and see them laugh, but at the end of the day it's mom and dad that you want to go home feeling that they've gotten a

good value for what they've paid for. >> reporter: building their business with every bounce. reynolds wolf, cnn, charlotte, north carolina. and if you need advice on how to cope through this tough economy, watch more of our series "money & main street." cnn tonight, at 8:00. eastern. we want to make sure that we provide responsible lending, and we want to make sure that we enable our customers to be successful homeowners. bank of america is lending. whether it's a purchase, a refinance, line of credit... we're here to assist our customers. so we try to make it as simple as possible especially for that first time home buyer. there's a lot of opportunity right now with what's happening in our economy to really get out and educate. this is responsible lending. it's a lot more conservative than it once was. but in reality, it's a lot smarter. we, at bank of america, have simplified the process

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racial healing on tap at the white house today. the president, the black harvard professor, and the white police officer who arrested him, getting together over beer. our carol costello looks at beer as a political tool. >> reporter: it's a strategy that spawned more than a few clever headlines like this one in the huffington post. obama named thursday, drink a beer with someone who arrested you day. or this one in "politics daily" beer and loathing at the white house. it's tough to say if mr. obama's beer diplomacy will heal the wounds, but some say at the very least his choice of bevenlg will level the playing field between

president, professor, and police officers. it's a tried-and-true political tactic. >> let's commit ourselves, just everyday american people, joe six pac. >> reporter: who can forget that. supporters say sarah palin is a master at appealing to the commonsense, average joe, and she used a six pac k to do it. during the democratic primary hillary clinton tried something harder, but mostly stuck with beer, and barack obama played to the beer-drinking crowd, too, enjoying a few brews on the campaign trail. perhaps the only misstep in the president's latest beer diplomacy strategy is not inv e inviting all parties to his white house shindig, as in the woman who called 911 to report there was someone breaking in to professor gates' house. this is her lawyer. >> so, the three highly trained guys who reacted badly are getting together tomorrow for a beer at the white house. and that's a good thing. but the one person whose actions have been exemplary will be at work tomorrow here in cambridge.

i don't know, maybe it's a guy thing. she doesn't like beer anyway. >> okay. so, when the beer bottles are empty, will the nation take away anything from this racially charged episode? boyce watkins is a professor at syracuse university and author of the book "what if george bush were a black man," good to see you. >> good to be here. >> and michael eric dyson teaches african-american studies at georgetown. good to have you as well. let's have it here, we've heard from so many that the gates' arrest is a learning moment, a teaching moment. we've heard that most prominently from the president. what do you hope, michael, is taken away from this episode? >> well, i think a teachable moment depends upon who is teaching. who is running the curriculum and whose classroom it is. i think it's fair to say in this case it's important for us to take away a few lessons. first of all, despite the battle

of the elites, the president, the professor and the policeman, there are everyday black and latino men who are victimized by and subject to arbitrary forms of power, especially from the state and especially from police. the police also, the second lesson, have an extremely difficult job. they're trying to do good work in the midst of back circumstances. and so we have to have some leeway and empathy for them. but finally, i think, what's important here, if we speak about race, the truth to be told here is that, look, there's not a -- there's not equal power here. professor gates may have a harvard degree, but when a policeman confronts him in his own house with a badge and a gun, there is no discourse that will be able to combat the brutality and the sheer rawness of that power. >> yeah. >> so, i think we have to acknowledge here that the president was right the first time. it was, i think, a not wise thing to arrest a man in his own home when you went over there for breaking an entering and found out he was in his own home. so, i think the lesson here is not let's just focus on professor gates and sergeant crowley, let's focus on all

those other people who suffer tremendously and violent at the hands of the unjust exercise of power. if we can just get to that point, it would be an incredible lesson. >> michael, you're asking for that in the form of an admission at the center of this discussion. do you expect that to come out of -- you don't expect that to come out of today's suds summit, do you? >> no, not at all. >> that's a different discussion. >> there's another policeman -- there's another policeman who called professor gates a jungle monkey. >> yeah, yeah. >> case closed. the point it doesn't have to be sergeant crowley himself. we know that police have said herible things. listen to the police tapes around rodney king's arrest and the like, and you'll discover that there are deeply entrenched biases, of course, on all sides, but in this case, on the part of some people, some policemen, who profile african-american and latino men, and beyond that, it doesn't have to be the case that he felt that he was going to see a black man. it's just that professor gates may have shattered an unspoken code here, don't speak, you

know, in an uppity fashion to a white policeman and while that may be irritating, it doesn't rise to the level of being against the law. >> same question to you. what do you maybe home the takeaway is from this episode? >> well, you know, let's be clear. you know, this event is not as serious, you know, for the politicians, i think, as it is for the people. you know, a lot of people, you know, beer can make a lot of problems go away, but the race problem is too big. and no matter how much beer you drink, it's still going to be there. >> right. >> i think what has to happen, though, is after this is done, we have to take this back to the people and the people have to bring it to themselves. that means that we have to have what i call the arc, a-r-c, the american racial conversation. we need to talk about race and be honest and cloak it in forgiveness and emthy and the ability to love and listen. what would dr. king want us to do? struggle for power or achieve

understanding? everything that mike said is absolutely correct. i've been a black man for a real long time now, and it's not easy. you know, i deal with racism on a regular basis, on my own campus, across the country, et cete cetera. but at the same time we have to know that we all have a story. if we don't communicate, just like in a marriage, in a marriage if you do not communicate, your love will eventually die. if we don't communicate as a people, our country will eventually die. communicating, taking this back to the people. michael, can you truly clear the air without a clear explanation of what happened on that day? if you want a national debate, would this episode as sort of a jumping-off point, don't we have to know, don't we have to get some statement from the princip principles involved here, as to what happened, at least an understanding between the men of what happened? >> well, i mean boyce brought up the analogy of a marriage. let's talk about a relationship.

yeah, you're seeking closure. but i don't think we necessarily will get any closure. it would be good to have that kind of a closure. but here's the point, even if we don't hear what they each individually have to say, the point is, at the end of the day, they may never agree anyway. professor gates has his story. sergeant crowley has his story. president obama has his story. what is the bigger story here? >> yeah. >> the bigger story is, there are a bunch of narratives out there and truths that say shawn bell goes down, abner nowimi is plundered. the reality is that disproportionate numbers of black and latino men are treated horriblebly who get out of control and embrace the vicious stereotypes that racial profiling delivers to the collective unconscience to america. here's my point. beyond what they say, the brouhaha or if we don't get to what ails to throw in two more puns, they can have a coke and a smile and a drink of beer, but at the end of the day, we must wrestle with the meaning of race

in our own communities and understand this is a vicious reality that the president must use his bully pulpit to more intelligently speak about it, as he has done so far. >> and, boyce, can we address all the things that michael has mentioned while at the same time addressing the very difficult work that police officers do on a daily basis for all of us? >> well, i think that mike makes a perfect point, in the sense that we have to address this issue intelligently. the one officer who referred to professor gates as a jungle monkey -- >> yeah. >> -- he should be fired because what he did, he engaged in an unintelligent way of expressing his frustration, you know, as a white police officer. now, i can identify with his frustration, but i can't identify with you calling me a name that dehumanizes me. >> right, right. >> but what we have to do also is remove him from the fold and realize that there are a lot of cops out here who do a good job, who work hard and don't want to be called a racist. i think when you are trying to cure the cancer of racism in our society, you have to do delicate

and precise surgery. if you do a precise jo been with a sledgehammer, you will end up killing vital organs, so if our country needs to grow and prosper, we've got to communicate. if we do it over a glass of beer, president obama, i don't drink, but i'll drink a glass of beer if it will help. >> that's a good place to end this discussion. michael eric dyson and boyce watkins, good to talk to you. we've asked for your opinions on this story. time to share. here are a few of your comments from our "cnn newsroom" blog.

>> voice your opinion on our "newsroom" blog, could this meeting actually improve race relations in this country, cnn.com/tony. the beer summit is set for 6:00 eastern this afternoon. and you can see live coverage on cnn in "the situation room," with our wolf blitzer. that is 6:00 eastern, 3:00 on the west coast. what does it mean to be a ford man when your company is fighting for its very survival?

you know, for some americans working in the auto industry is a family affair. but the story has taken a sour turn as thousands of autoworkers have lost their jobs. for others, the transition continues. cnnmoney.com's poppy harlow met with one family trying to ensure that ford's future is as bright as its past. >> reporter: lena widman worked as an engineer at ford from 1960 until the early '90s. following his father's work at the automaker during the great depression.

>> for me it's provided a great living. it's provided an opportunity to send all my kids to college. it's provided a satisfactory income in my retirement. >> reporter: it was his first and only job out of college. three decades later, his son karl followed in his footsteps. >> probably the first thing that interested me about it is ford, we have, like, a family day. i always remember that as a kid, the sheer breadth of what was there. and even then as a kid, the engineering or the intuition of all the interesting parts and stuff like that. >> reporter: karl has been an engineer at ford since 1991, in fact, all three of lino's sons have worked at ford, something you see a lot of here. >> i think it's the most defining element of this company, is the family company. i can't tell you the number of places i can go in our company where people come up to me and say, you know, i'm fourth generation also or, you know, my aunt and uncle knew your father

and your grandfather. >> reporter: but times have changed, and layoffs have mounted. when lino worked at ford in the late 1960s, the automaker had more than 29% of u.s. market share. today, that number has fallen to 15%. >> what has happened to the industry? well, people have found a greater -- a great desire to buy foreign cars, i guess. we want to become a country that assembles parts, that's one thing. if you want to be a country that not only assembles but also designs and innovates the parts, that's another story. >> yeah, another story. poppy joining us now from new york. poppy, let's talk about that other story. how is the widmann family feeling about the future of ford and the u.s. auto industry? >> you know, tony, as his son puts it, i'm bullish. this is a great opportunity for us. they're optimistic, but, again, the son still has his job and the father still has his pension from the company. it's not the same story when you look at many people at gm and

chrysler. but what the son is doing, he's part of the team developing the 2010 taurus. and this is ford's effort to totally revamp its image, make itself cool, market itself more to american buyers and buyers around the world, really, tony, because they've got to increase that market share to compete against the foreign automakers. but at the same time, ford hasn't gone through bankruptcy. but it still has had to lay off a lot of workers. and, you know, on top of that, tony, we got news today, look at the numbers, in michigan, along the other two big three, 17% unemployment in detroit proper, 15.2% unemployment across the state. the highest statewide unemployment rate in the country, tony. so, some bright spots for some autoworkers, but for others, you know, they're losing their job, tony. but you can see the full story, and a lot of our other detroit coverage, because it's so important to look at this city. it's all on the site, tony. >> 17.1% in the metro. what are folks doing there in

detroit, it's just -- >> right. and a host of underemployed. we can't forget that. people that aren't making enough. >> poppy, appreciate it. thank you. >> sure. one of the keys for paying any health care plan is cracking down on fraud, and that is just what's happening across the country. i was in the grocery store when i had a heart attack. my daughter was with me.

i took a bayer aspirin out of my purse and chewed it. my doctor said the bayer aspirin saved my life. please talk to your doctor about aspirin and your heart. i'm going to be grandma for a long time.

medicare fraud costs the united states billions of dollars each year. this wake, a nationwide investigation resulted in 32 arrests in 4 states, including

texas. that's where our cnn affiliate khou picks up the story from houston. >> reporter: it wasn't the type of delivery that medical supply store executives and doctors were expecting. in fact, boxes were being hauled out. not in. at memorial medical supply. as federal, state, and local investigators raided this store. at the same time, the same scenario was playing out at 11 other locations across the greater houston area. investigators were gathering evidence of medicare fraud at several local businesses. that cost us taxpayers nearly $16 million. it was all part of a four-state crackdown that extended from houston to louisiana, from boston to new york. indictments that came down last week also led to the arrests of 26 of the 32 doctors and health care professionals who were charged with medicare offenses, including billing for medical supplies patients didn't need, and in some cases didn' e