if you want to follow my tweets, here's what you do. go to twitter.com/wo twitter.com/wolfblitzercnn. all one word. i'll take you inside the "situation room." up next, "lou dobbs tonight." >> thank you, president obama playing to his base declaring he has plenty of fight in him with his health care plan in jeopardy. this could be the president's final opportunity to change any minds. joe wilson rebuked in the house of representatives because he called po fo a liar. but wilson stayed defiant. he refused to offer up any more apologies. and another school bus beating caught on tape. teams cheering as a kid is pummel pummeled. >> and a.c.o.r.n. is under fire, calling for investigations and demands tonight that president

obama cut off all, all government ties to the organization. we'll have the latest report on a.c.o.r.n., a report you'll see only here. good evening, everybody. preaching to the choir, that's what president obama hopes he was doing today. in three campaign style speeches, president obama went to union country trying to shore up big labor support of his health care plans. plans that by most measures are in big trouble. it was the beginning of a planned health care media blitz. a blitz that will have the president appear on five sunday talk shows and david letterman. any legitimate efforts to recruit republicans seemed to have been abandoned by the administration, even the gang of six, the bipartisan group of

senators, has collapsed. dan lothian reports from the white house. it seems certain that the president and the democrats will be going it alone. >> reporter: well, it really does seem that way, but the white house is still insisting that the president very much want to get a bipartisan effort on health care reform even though for weeks democrats have been signaling they're willing to go along. and among the gang of six, the three republican senators and three democrats who have been working for quite some time to come up with a bipartisan proposal, and my colleague on capitol hill, dana bash, sources telling her, the chairman, max baucus, will be unveiling a bill tomorrow without the support of the senators because they have a lot of concerns. those republicans are saying they're not walking away from the table yet, they're still talking, and a white house official saying he's very, very pleased with that. meanwhile, the pretsident has

been doing a full-court press on marketing health care reform making stops in ohio and pennsylvania. at one point, he sounded a bit like rocky. >> as long as you've still got an ounce left of fight in you, i've got a ton of fight left in me. i've said it before. i'm skinny, but i'm tough. and as long as i have the privilege of being your president, i'm going to keep fighting for a future that is brighter for this community and brighter for ohio and brighter for the united states of america. >> and the president pointing out again today that health care reform cannot wait and that this is much more than just about the people who don't have health care insurance but also about those who do have it but are concerned about what will happen if they lose their jobs or if they get ill with a preexisting condition. >> dan, the white house, are

they a little concerned it's getting thin to call participation by three senators whose participation tonight they don't have, to call that bipartisan? what's the feeling there? >> reporter: well, i was talking to one administration official who told me, listen, the game isn't over yet. they're still talking. republicans are still at the table. until they walk away from the table, they're going to be very optimistic about this. and they believe that the president getting out there and stumping the way he has been in a sense for health care reform will help. not only up on capitol hill but they believe the president getting out, talking to the american people as well will help to get more support for health care reform. >> thank you very much, dan. dan lothian from the white house. well, the president's am media blitz so far has failed to sell the health care reform message. it's a message that has failed as measured by a new usa

today/gallup poll, a poll that finds 60% of americans find that the plan to overhaul health care wouldn't do what it claims it does, and only 43% approve of how he's handling the entire health care issue. first it was the right. now the president is being ripped off by the left over health care for illegal immigrants. luizgutierrez, who happens to be the first lutono congressman to indorse barack obama for president is angry they're trying to ban them from private insurance. >> reporter: luis gutierrez has been a loyal supporter of president obama, but this week, he's criticizing the president, this after saying they would bar insurance in the exchange. the exchange is sakey part of the health reform proposal. a one-stop shop where consumers

could get the lowest insurance rates. >> on the one hand, they say they're for comprehensive health care reform. they call gatherings to search for a solution to comprehensive immigration reform. on the other hand, they drive the very immigrants they say they want to be helpful to, they drive them further and further underground. >> reporter: he's accusing the white house to giving in to joe wilson. wilson became a household name after he yelled out "you lied" to the president over whether illegal immigrants would get benefits. the white house insists the position hasn't changed, that the president has opposed extended coverage to those in the country illegally. but gutierrez says unless they're included, they'll continue to get care at the emergency rooms, the most expensive place to get coverage. but it's a most unpopular idea

with conservative talk show hosts and with citizens who participated in a march in d.c. over the weekend. concerned about rising government debt. >> the bottom line, we can't afford these things anymore. the government should be concentrating on cutting spendings on all the programs. not thinking of new wonderful ways of spending more. exponentially more than they're spending more. >> representative gutierrez said the congressional caucus may want to use their votes as leverage to get concessions. but when i asked representative gutierrez point blank if he would vote against the health care bill if it includes enfo e enforcements and banned illegal immigrants from the health care exchange, he said he wouldn't go that far. >> you have to give congressman gutierrez credit. he's not running from the issue. he's saying point blank he wants health care insurance.

he wants health care coverage for illegal immigrants in this country whether that be 12 million or 20 million or whatever the number may be. >> he's making the case, and so many democrats are saying, no, but they don't want the enforcement there. at least he's saying this is my position. this is where i stand on it. >> and that's a matter of principle, i have a great amount of respect for the gresman for saying it that way. it may not be good politics as practiced in this town, but it's straightforward candor that we need a lot more of. thank you very much. a breach of decorum is how one democrat sponsored resolution describes congressman joe wilson's out burst. he shouted "you lie" at president obama at the joint congressional session last week. that resolution passed 240-179. as you might expect, along party lines. but americans don't seem to be

so offended or supportive of such a resolution. a usa today/gallup poll shows only 23% of americans are outraged by what he did. 45% were not. is congressman wilson under any real pressure frum his own party to apologize further? >> not today, lou. he took to the floor, actually, as the first republican to speak in the debate portion once this resolution was introduced. and he did not apologize, saying apologizing to the predwas enough. >> he graciously accepted my apology, and it's over. however, this will have done nothing for the taxpayers to rein in the growing cost and size of the federal government. it will not help more americans secure more jobs, promote better education, insure retirement or

reform health insurance. >> republican leaders blasted democrats for bringing up this resolution for a vote, but the one democratic leader who spoke, jim clyburn, also of south carolina, said it was necessary. >> nothing more than a partisan stunt aimed at trying to divert people's attention from the real issue that the american people are talking about, that's talking about health care. >> this is not a partisan stunt. i do not participate in partisan stunts. if the rules are not honored, if the rules of this house are not there to maintain order, we can never get to these discussions. >> so while we heard from every republican house leader as well as congressman wilson and other rank and file republicans, we only actually heard from two democrats. steny hoyer, the number two in

the house who introduced and spoke about this bill. and then jim clyburn, who you just saw there, the number three, who covered the debate portion. this was to focus the debate on the conduct, lou, instead of allowing some of the rank and file democrats who we have heard being incredibly angry in the halls here, suggesting not responding or the comments of congress wilson incurrence racism. we didn't hear them speak today, and that was no accident. >> well, it seems that that is no accident, but it looks as though they're running from their own resolution when they wouldn't appear to support it. isn't that also a fair conclusion to any analysis of what is going on there? >> you mean a few of the democrats who decided not to vote for this? >> what i really am referring to is only two democrats were prepared to speak on behalf of this resolution. the fact that speaker pelosi was absent all together.

where was she? >> she did vote yes on this resolution, but she was noticeably absent. she did not speak in this debate. and when we asked her questions about the debate in the hall, on one occasion, she brushed it aside, making it clear she's focused on health care. she wants to move on from a distracting controversy when they're trying to talk about health care. >> and the house led by the democrats, the democrats who sponsored the resolution that they say is a distraction. that becomes confusing and complicated, doesn't it? >> well, lou, i think it is certainly interesting to see how they focus this debate and where some meme did speak and some people didn't speak. what i found particularly interesting is some of those really upset democrats were not obviously on the floor today to talk about really why they were really, really angry about what

congressman wilson said. >> thank you very much. >> it's becoming a difficult sell for the president, the president now struggling to convince americans that his health care proposals make sense and kcould wurblg. is it safe to say the public option is now gone forever? we'll have the analysis. plus, a.c.o.r.n., the left wing organization hammered again. republicans want president obama to cut all ties to the leftist activist group. and look at these kids, if you will. it is not a pretty sight. screaming and cheering as one of their fellow riders on that school bus is caught on tape beating another. this in st. louis. we'll show you what happened. and as best we can understand it, why. i'm ed whitacre, the new chairman of general motors. before i started this job, i admit, i had some doubts. probably a lot like you.

but i like what i found. i think you will too. car for car, when compared to the competition, we win. simple as that. i just know if you get into one of our cars, you're gonna like what you see. so we're putting our money where our mouth is. buy a new chevy, buick, gmc or cadillac and if you are not 100% happy, return it. we'll take it back. that's our new 60-day satisfaction guarantee. and as always you'll get our 100,000-mile, 5-year powertrain warranty on every vehicle. that's how strongly we feel about our cars. and how committed we are to you. so put us to the test-- put us up against anyone and may the best car win.

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it's how business gets into the rhythm of saving. regions - it's time to expect more. the swine flu vaccine will apparently be available earlier than had been expected. possibly now within the next three weeks. the centers for disease control announcing the new delivery dates today a week after determining a single injection could be effective against the virus. given that 11 states are already reporting flu, the timing could save lives. >> we continue our coverage of health care systems we have examined all around the developed world and how those health care systems compare with health care in the united states. tonight, we take a look at mexico. just four years ago, mexico passed universal health care for all of its citizens. but the quality of care is inconsistent across regions of

the country. life expectancy in mexico is 76 years. kitty pilgrim has our report. >> reporter: less than a decade ago, half of mexico's population, 50 million people, were uninsured and it was getting steadily worse, the poor getting poor. a social crisis according tattoo a world bank official. >> this is unbefitting of a nation that has one of the biggest economies in the world. >> reporter: julio frank led health care reform from 2000 to 2006. sk >> we were able to estimate that there were about 3 million and 4 million families every year that were thrown into poverty because they had to pay for health care. >> reporter: now 35 million of the 50 million people who were previously uninsured are now covered under mexico's new people's insurance plan.

frenk said the country is back on track to provide universal health care by 2010. he's now the dean of harvard university's school of health. >> lots of disagreements on the details, but at least there was concensus that the status quo was not an option, that we couldn't continue to live in a society where you systematically exclude half of the system. >> reporter: mexico still has a long ways to go. mexico only spends 6.2% of gdp on health care compared to 16% of gdp spent in the united states. that works out to $527 per each person a year compared to $7,290 in the united states. there is one doctor to every 500 people in mexico. compared to 1 to 416 in the united states. life expectancy is 76 years. two years lower than in the u.s. there are four main options for health care insurance.

just under half are expected to be covered by the people's insurance plan. an employer based system serves 40% of the population. gump wurxers have their own plans. less than 5% pay for private health care. a fifth of mexicans, the poorest, are exempt from paying for insurance. after that, state incomes contribute. health care quality and access vary dramatically depending on the state. >> poorer states have more problems, longer lines, more complaints. things have been progressively getting better, but this remains a big challenge for the system. >> despite the reform, inefficiencies remain. it's estimated that mexico loses $1 billion a year because of a lack of coordination. up next, demands that the feds investigate the leftist activist group a.c.o.r.n. also new developments in the

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on capitol hill, republicans moving to block all taxpayer funding for the left-wing activist group a.c.o.r.n. the republicans demanding that president obama cut that funding, and if he doesn't, they say they'll introduce legislation to try to do it themselves. also today, senator richard shelby wrote chris dodd calling for a congressional investigation of a.c.o.r.n. senator dodd's office said senator dodd now supports an appropriate investigation, as they put it, of a.c.o.r.n. they passed an amendment that pars them to getting federal funds, and the census bureau has dropped it's roll in the 2010 census. we have been reporting for some time about a.c.o.r.n. and its employees who have been convicted of voter registration fraud all over the country.

now this broadcast has uncovered a tie-in between a.c.o.r.n. and a candidate for high office in new york. the case shows just how entwined a.c.o.r.n. and political campaigns, finances, and candidates have become. bill tucker has our report. >> reporter: a.c.o.r.n. has links with dozens of affiliated organizations across the united states, sharing office space, staff, and goals. last year, workers for the organization were investigated for alleged involvement in voter legislation fraud. the national policy center said it has other concerns. >> a.c.o.r.n. is under investigation in a number of states for allegations of voter registration fraud, but i think there's an even deeper scandal when it comes to their finances. >> reporter: earlier this month, the finance board said seven candidates might be in violation of the laws because they're not

playing full value. that works out of the same building of a.c.o.r.n. the board says its concern is data and field services might be offering discounts to counsel members for services to dodge limits. this man paid $110,000 for campaign services, including $5,000 for a list of voters. other campaigns complained that was too little. deblauzio is a supporter of a.c.o.r.n., and in 2008, he and thirty-two other council members directed $78,000 to provide income tax preparation help. he declined our requests for an interview. two month ago, republican darryl i

icic described it as a shell game designed to hide the funds in different parts of the organization and its affiliates. >> there are more corporations than there are states in the union and probably than there are counties is most state. they have made it impossible for you to see the back and forth, and often, they're located in the same physical building. >> reporter: a.c.o.r.n. has received more than $53 million in taxpayer dollars since 1994. lou, a.c.o.r.n. was already in hot water here in new york city over the release of hidden videotapes showing employees posed as a pimp and prostitute on how to hide the money. they said they're opening an investigation into a.c.o.r.n.'s actions. a.c.o.r.n. has been critical of the tape saying it was doctored. >> and the cessiquestions are building about why now the u.s.

justice department has not launched an investigation of its own. thank you very much. up next, our faceoff debate. what are the biggest hurdles to overcome in the health care debate? well, we'll have the answers. and this disturbing video from a suburb of st. louis. a young man brutally beaten on his way to school as his fellow students stand by and cheer on his assailant. this is humiliating. stand still so we can get an accurate reading. okay...um...eighteen pounds and a smidge. a smidge? y'know, there's really no need to weigh packages under 70 pounds. with priority mail flat rate boxes from the postal service, if it fits, it ships anywhere in the country for a low flat rate. cool. you know this scale is off by a good 7, 8 pounds. maybe five. priority mail flat rate boxes only from the postal service. a simpler way to ship. what's on the minds of independent investors? let's ask. when i trade, i want a straightforward price.

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well, major huddles still ahead for health care legislation. in tonight's faceoff debate, that's our subject. frank pallone jr. joins us who says the biggest hurdle is clearing up what he calls the misconceptions about the plan. good to have you with us. and congressman marsha blackburn from tennessee who says the biggest concern is the public option. max baucus, senator baucus, is expected to move ahead without support of the so-called gang of six bipartisan.

congressman pallone, how will that affect your democrat colleagues in the house? >> the fact he's moving is significant. obviously, we would like to see movement in the house and senate. we have a bill in the committee in the house but not in the senate. i think it shows that we're going to move forward and that i think it has a positive impact on the house because now i think they'll be willing to take the bill to the floor. >> what do you think of your colleagues? they say they have not walked away in the senate. senatore senatore enzi, senator grassley. do they really make bipartisan legislation, those three? >> the way the senate operates, they feel they do, but i feel the thing to watch is what is happening with the american people. the poll you showed earlier, 60% of the american people think this health care is on the wrong track. if senator baucus brings a bill forward, most american people

are going to say, he's bringing something out, but it's the wrong thing on the wrong track and it's not done in a bipartisan manner. >> congressman pallone, what is the right manner. the president has been out for six weeks pushing his so-called health care plan. the numbers are worsens for him, almost week to week. this is a congress hat is dominated by democrats, led by democrats in a democratic white house. what is going on here? >> the problem is misconceptions. you still have people who think it's euthanasia, the public option is going to be mandated. there's choice and competition. the whole purpose of this legislation is to provide more choice and competition and make health insurance more affordable, but a lot of those misconceptions continue. i think that's indicated in some of your polling. >> you may well be right, but the congressional budget office, the congressional research

bureau, they have contradicted in principle the president of the united states for his statements on efficiency, for his statements on cost, the savings that would be generated by a initiative of care. he's been contradicted three times by a democratic-led nonpartisan congressional budget office. >> you talk about the cost. one of the points i continue to make is the cost to this system as a whole will go down, but the government, because they're covering more people under medicaid. providing subsidies to people in the health exchange so insurance is more fordable. it's an additional cost to the government, but it's paid for through savings and new revenues. i think there is again a misconception that somehow the government is going to be paying less. that's not true. this cost a trillion dollars or maybe a little less than that, but it's paid for. it doesn't create debt. it's paid for by a combination

of savings and new sources of revenue. that's part of the misconception. >> the problem is the american people don't buy into the concept of the public option. they don't want government-run health care. there is no example where a public option has brought down cost and has increased access. when you have a public option like we did in tennessee, what you see is you move toward rationing and restricted access, and your cost goes up. always does. then they'll say, well, medicare is our public option. you talk about savings. they're saying they're going to get a half trillion of savings out of medicare. medicare is not an option. it's a mandate. and vegs have had that money coming out of their paycheck. that's an obligation that government has. if you have savings in that program, if goes back to those in that program, not to another program. >> but i disagree with marsha on the savings from the public option. the bottom line is the public

option because it's essentially nonprofit, in other words, they're not making money on it because it's a public option, if you have the competition, you will bring down insurance costs. >> but it doesn't work. you can look at the care in tennessee. it doesn't work. >> it's a little different because they cut back significantly on the program. >> to get the costs down because they had to remove people from the role. you can look at the example we had in tennessee. there's not an example where it has. it always drives up the cost. you can look at massachusetts. where you can look at tennessee. you can look at maine. you can look at all these different proposals that have been tried. >> there's not one to bring down cost. >> thank you. i wish we had more time. and as the saying goes, the debate continues. thank you very much, congressman pallone and congresswoman blackburn. still ahead, who is the president calling a jackass? also, a.c.o.r.n. under fire.

why should that be? new allegations spell even more trouble for the left-wing activist group and potentially the democrat party. disturbing video as well of a vicious attack on a suburban st. louis school bus. ♪ anyone can prove they're strong once. the real question is can they prove it again and again. ♪ at northwestern mutual, we've answered that question compellingly... for over 150 years. northwestern mutual. consistency counts. put our strength to work for you. learn how at northwesternmutual.com.

a 17-year-old florida high school student today was killed

when he was stabbed in a school yard fight. two boys at coral gables high school reportedly arguing. one stabbed the other in the chest. police have not yet released the identity of the attacker. he is in custody. also today, a brutal beating on a school bus leaving two teens in jail and a community asking why it occurred? the 17-year-old victim was punched, kicked, and choked. other riders on the school bus cheered as the attackered raged on. even more disturbing, that assault captured on the bus surveillance camera, was completely unprovoked. >> reporter: watch this surveillance video closely as this 17-year-old boy attempts to sit down on a school bus seat. he's told he can't sit there, but he does anyway. he's then taunted by some of his peers and violently beaten, not once but twice. many of the kids around the

fight are cheering it on. one student snaps a cell phone picture. a police captain initially said he thought based on the video, race was a factor in the beating. the two suspects are black. the victim is white. today, he backtracked on the comment saying he'll let detectives examine the evidence. it's thought the first time v video has shown some kids stand around or encourage a fight. this video was taken in june by a bystander watching the beating of a south chicago heights girl. her attackers cutting her hair and burning her. she was surrounded by five or six bystanders. the mother was appalled. >> i think it's sickening. where is the humanity in the world? how could you just stand there and watch somebody go through that and not do anything? >> a survey by the cdc shows that in 2007, almost 36% of 9th to 12th graders reported being

in a fight the past year. . it's a sign of the failure of the system which we should be trying to do something about. >> we need to teach empathy and we need to do a better job of teaching moral importance. that is more important, quite frankly, than academic success. >> and as for the bus fight, the school district had no comsxnt the bus company said the driver who had been telling the kids to sit down was a few minutes away from the school when he noticed the fight. he dispatched for help to meet him at the school. two suspects, 14 and 15-year-olds were suspended and may face charges as juveniles. thank you very much. up next, the president unfiltered. and a comment about a rapper that he wanted to take back. we'll have that. and the president on a media blitz. but he's not talking to everybody. and pimps, prostitutes, and videotape. and now more trouble for the left-wing activist group

a.c.o.r.n. who in this town really cares? before i started this job, i admit, i had some doubts. probably a lot like you. but i like what i found. i think you will too. car for car, when compared to the competition, we win. simple as that. i just know if you get into one of our cars, you're gonna like what you see. so we're putting our money where our mouth is. buy a new chevy, buick, gmc or cadillac and if you are not 100% happy, return it. we'll take it back. that's our new 60-day satisfaction guarantee. and as always you'll get our 100,000-mile, 5-year powertrain warranty on every vehicle. that's how strongly we feel about our cars. and how committed we are to you. so put us to the test-- put us up against anyone and may the best car win.

former border patrol agent ignosio ramos was denied permission to travel. ramos and his partner jose co compian were convicted for the 2005 shooting of a fleeing illegal alien drug smuggler. the men were convicted in the testimony of the drug smugglingsmugglin smugglinger and whose involvement in drug smuggling

was denied in the trial. they were granted permission to trial. joini joining me now to talk about politics, white house reporter for politico and chris, washington examiner, good to have you with us, and steve mcmahon, democratic strategists, thanks for being with us. let's start with the house of represents passing a resolution rebuking congressman joe wilson for his outburst in the joint session speech by president obama. what do you make of it? >> the house has rules. if he had done that to a member of congress, he would have been reprimanded. he did that to the president in the joint session of congress, the most inappropriate place to do it. president obama was right to accept his apology. he was right to apologize. and decorum is important. >> decorum is important. was it so offended in the house?

it seemed to me to be more of an insult of the president? >> does this communicate the right message to the american voter. does this do the right thing for the democratically led house that is struggling in the polls right now, having trouble with their initiatives? and i think you saw by the speaker not participating in a very robust way and limiting debate was clearly seen as a negative that it was a distraction. >> they clearly wanted to move on. they have gotten some political mileage out of this. by having joe wilson kind of be a stand-in for the rowdy republican party in some ways and reducing their argument to his outburst. they got some mileage out of it, but pelosi has signaled it's time to move on. >> interestingly, speaker pelosi was not visible today. steny hoyer standing up and taking the brunt of it. it seemed almost a reluctant

process, plmoving this ahead. and joe wilson is bringing in over a million dollars in new funding and by a 2-1 margin those are the most recent pollings supporting congressman wilson, not the house that seeks to rebuke it. >> i thing the house would have -- everybody would have preferred if congressman wilson would have apologized instead of making a phone call to rahm emanuel saying my leader said i should make a phone call so i'm making the call. it's important for the senate to have the respect for the president of the united states. >> i'm asking, just curious, are you suggesting we have a requ e requirementcerity on the part of the house members? >> i don't know how you would ever enforce that, but when the president comes and gives a joint address to the congress, when he's invited there, people shouldn't stand up and say you lie. if they do, they should apologize and take it like a

man. this guy made a call to rahm emanuel and said i was told to make this call. >> it was accepted by the president. >> because the president is a bigger man than joe wilson, apparently. the house has rules. if he had done the very same thing to a member of congress, he would have been reprimanded by the house. he did it to the president of the united states. >> i don't think anybody would argue it wasn't bad form whatsoever. pete stark, speaking of bad form. where are we going here? let's take a look at an exchange between one of pete stark's constituents and the good congressman. >> mr. congressman, don't pee on my leg and tell me it's raining. >> thank you, i wouldn't think of dignifying you by p erkeking on your leg. it wouldn't be worth wasting the urine.

>> well, there's certainly a lofty standard being pursued by the house. what's your reaction to that one? >> it's different because it's in a town hall, but it's also a point that pete stark is one of the democratic members of congress who are going to cause a lot of trouble as the cram-down on a compromise bill on health care comes soon. he's not afraid to be tough and he isn't afraid to say unpleasant things. >> in august, bernie frank had frank exchanges with the folks in town hall. >> which was one of my favorite exchanges in the town hall meetings. >> the rhetoric is heating up. as the debate heats up, you'll see a bill out of the senate next week and voting next month. >> we have played a number of exchanges of parliaments around the world, south korea, the philippines, and the home of the original parliament in london. we look like milquetoast

compares to those countries. do you think we have something to learn from them? >> we look like milquetoast, but that's for a reason. congress can change the rules don't permit the outbursts. i am going to agree with you on pete stark. members of congress should set a standard both when there is a joint session and they are not yelling at the president and constituents. >> that's terrific. always great to reach an agreement on the broadcast. whether they are left, right, democrat or republican. health care. is it live or is it dying or is it dead? >> what we saw today that david axle rod went up to capitol hill to rewrangle democrats and j rockefeller doing what pete stark did earlier.

we are testing this new coalition on health care and the new numbers showed the disapproval is creeping up and the bounce is wearing off. the sales job continues. >> any major disagreement there? we have to conclude with the president's remark about kanye west. we set such a high standard. >> health care reform is on the upswing. you may not see everything in the house bill, but something like what max bacchus is bringing forward. >> this is the president reflecting on his motion surrounding kanye west. >> the young lady seems like a perfectly nice person and she's getting her award. what's he doing up there? he's a jackass. >> what happened to decor um. >> i think they wanted the president to get tougher on joe wilson and saving that for kanye west. a lot of people agree that kanye west stepped out of line and

stepped on this young lady's moment. beyonce was kind enough to rescue. >> truth is the ultimate defense to liable. >> how many times have we heard that in a town that doesn't always embrace that defense. >> i embrace everything i just heard. >> thank you. coming up at the top of the brown, campbell brown. tell us about it. >> hey there, lou. we are at the fortune magazine most powerful women summit near san diego. i will sit down with news makers from politics, finance and the media to get their take over the battle on health care and what the president needs to do to get back momentum. we will hear from warren buffett on the state of the economy and the most powerful woman in america and no, it's not hillary clinton. you will meet her. >> what is the deal? i had to come to the nation's capital and you get to go to san

diego. we have to talk. >> it's not too bad out here. see you soon. >> looks good on you. why the end of the recession may not mean the return of growth or more jobs. what's recovery about? we'll be right back. lotion makes my skin feel. and apparently he does too. with unbeatable prices on nivea smooth sensation lotion, beauty costs less at walmart. save money. live better. walmart. radar to help watch for the unforeseeable.

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retail sales we can tell you surged in the month of august, promising an end to recession, but experts fear a jobs recovery may remain out of reach for months to come. joining me is ross perot's former running mate and director of the manufacturing policy project and author of the new book, saving capitalism. you couldn't have a more timely book. capitalism in deep need of

salvation. congratulations on the book and secondly, we are hearing from people like chairman bernanke that we have the recession over and we are not going to get jobs and growth. i have to ask what good is recovery if that is the case? >> what happened is the financial community recovered. after all we put out $10 trillion to them. the rest of the economy is worse off than where we went in. it's worse off in many ways and basically we have structural problems. that's what i deal about in this book. we have six or seven big structural thing that is the country needs to take on. this crisis should be viewed as a person who has a major heart attack. you make changes. you get right. that's what we need to do as a country. >> let's talk about the things like saving capitalism. you talk well oversight and the president talked about the same thing on wall street. do you agree? >> i agree with him, but i don't think he will get it.

he waited too long. he should have done this -- >> it's hard that nothing is happening. >> what happened is the programs that the bush and obama administration put into place kept the things the way they were before the crash and you even wind up with the same people in charge. >> and you have a president, george w. bush crazy enough to say things like he is suspending the principals of free markets to save free markets. how does that work? >> it doesn't work. we had nine bailouts since 1982. each is more extensive. if we don't get real regulation, we will have a tent and the next one may take the economy and the world down. >> the president told auto workers in ohio he couldn't allow their industry to fail. you said the government should have been involved in a lot of industries besides automobiles. >> let's take the automobile industry. the japanese bring six million cars a year and produce three

million in the use. we could only sell 16,000 cars in japan. korea brought 900,000 cars into the u.s. and we could only sell 7,000. we need trade reform and the president of the united states and the congress to go out and open up markets and stop predatory activity. industry can't do this. the government has to stand behind their companies. >> what are other country has leaders dumb enough to support free trade and will not notice over the course of 20 years that japan and south korea will not permit our cars in. >> no other country. it's because of this that the american economy is collapsing. unless we deal with these issues and deal with them now as i'm prescribing, we will have a million and a half fewer manufacturing workers when the first obama administration is over. >> let's hope that's not the case. >> it will be the case unless we do something.

the same medicine is going to get us the same result. >> that are seems to be something that alludes policy makers whether it's foreign policy or economic policy. saving capitalism. time for a one-word answer. will capitalism be saved? >> yes. >> all right. the book is saving capitalism and dr. pat choate is one of the smartest economic thinkers i know of. join us for the lou dobbs show to get the local listings in your area on the radio. it will be coming to you from new york tomorrow. out of the capital. visit us at loudobbs.com and sign up for the daily podcast. today we broadcast live from the fire conference held by fair and 50 other broadcasters. it was a lot of fun. sign up for the free broadcast. follow me on lou d