looking out for you. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- sean: tonight -- independents now turning their backs on the president. his numbers are taking the brunt. wire the stimulus dollars going to blue states? the shocking report. >> to honor our moral responsibility. >> nancy -- sean: nancy pelosi tries to defend cap and tax. is that a $5,000 handbag on your arm? youtube is catching flak for its enormous carbon footprint. -- u2 is catching flak for its enormous carbon footprint. barack obama's honeymoon with the liberal media might be going strong, but america's love affair with the president is coming to an end. that is our headline tonight. brand new data showing that his approval rating is now in a

freefall. this daily gallup poll was updated earlier today and it shows his numbers clearly trending in the wrong direction. his approval rating is now at the lowest point since inauguration day. recent polling in swing states like ohio and virginia indicate americans are fed up with the direction this country is headed in. his approval has dropped almost 20 points. the new rasmussen daily tracking poll now shows that only 30% of those polled strongly approve of the president's performance. that is the lowest since he took office. 30% strongly disapprove, the highest that that has been since january 21. joining me now to help sort this out is scott rasmussen and the former counsel for george w. bush and gillespie. welcome back to the program. thanks for being with us.

scott, let's go through this. 30%, 38%. this is something new. why don't you explain the index and how this is the lowest number he has had? >> we take the number of people who have strong opinions about the president. we have been tracking them every day since election day. what we have found is that in the first few months, there was a honeymoon. americans began with a positive opinion of the president. they strongly approved of how he started. that number slipped during the stimulus debate. it has moved down as republicans became disenchanted. in the last week or two, especially with the jobs report, his numbers have started heading to the south. sean: there was analysis of these independent voters now deserting barack obama. it was said that independents

had become effectively operational democrats in 2006 and 2008. he says they're up for grabs. they are trending republican. >> it all comes back to the economy. people want this president to fix the economy. we had lehman brothers collapse and it became the issue of the campaign last fall. people were optimistic. consumer confidence was rising for a few months. it is now headed in the other direction. sean: your thoughts? you first spotted this trend in the resurgent republic, which you found it as a sort of answer to democracy corps. you saw this earlier than others. >> spotted it in april. we saw republicans and independents on one side and democrats on the other side of the approval of the obama budget. i think it has increased and it

has been accelerating. it is relative to the intensity. the feelings of people who are concerned about president obama are greater than those who are happy with president obama. i think that is telling. that indicates more trouble ahead. sean: what does it mean? i have been following this poll. 2 to 1 margin, they consider themselves conservative. 25% of americans identify themselves as liberal. the democratic party is too liberal. what does this mean now as we head into the 2010 elections? >> when people see themselves more aligned and identify with how they see a party, so if they see themselves as center-right or more conservative-leaning, they see the democratic party

becoming more liberal and moving away from them, that is what was said about the independents. the flip side of that was true in 2006 and 2008. the bulk of them broke against republicans. we are seeing the early signs that that could flip in 2010. 36 governors races are up in 2010. there are many competitive senate races. illinois will be very competitive in 2010 as well as many others. the opening signs have real opportunities for republicans to make gains. >> virginia, connecticut. harry reid is in trouble. we have interesting races. scott, "the wall street journal" said the american people opposed the stimulus and say the country is on the wrong track. you had a poll where more americans are beginning to blame

the president for the bad economy. they are not getting away with this idea that it is george w. bush's fault. >> when the president first took office, people were saying the problems were inherited. as time goes on, that number shifts. 62% of americans used to say it was president bush's fault. as time goes on, it will move more in the direction of barack obama. that is the natural course. above liberals and conservatives, it is true. there are twice as many conservatives in this country. there is a different dynamic. there are more conservative than there are republicans. republicans have to be conscious of those conservatives outside the party. and the oversight, there are more democrats than there are liberals. the liberals have to reach out to the moderate democrats. they're having trouble hanging on to them right now. sean: i agree with your analysis.

ed, let me ask you the same question. nine out of 10 americans are worried about the spending deficit. similar results in another poll. 90% think obama is spending too much money. that does not include a second stimulus. it does not include the health care plan, which will cost an enormous amount of money. >> the spending is breathtaking. i think the american people are starting to see that very clearly. this agenda of taking over the financial s -- financial industry and the auto companies and having an active role in the management and decision making process, it is not as the spending. the government involvement in our economy. this president has created more debt than every president combined before him from george

washington to george w. bush. that is remarkable. when you look at what he is proposing in terms of increasing the cost of energy on cap and tax, health care, federal spending and the stimulus, they said unemployment would not go above 8%. they were wrong about that. they have to stop over-promising and under-performing. sean: you are better doing the opposite. you are making a great point here. the promised that if we passed the stimulus -- they said if we did not come it would be a catastrophe. if we passed it, unemployment would not go above 8%. it is 9.5%. they say we're headed to double digits. the internal of your polls are showing the gop, which traditionally liens on national security, has expanded its margin. for the first time in years, republicans are leading on the

economy. >> that is right. two months in a row they have been leading on the economy. it is a loss of confidence in democrats. the edge has switched to the gop on this issue. stimulus is a key part of it. 31% of all americans believe the stimulus helped the economy. two out of three say it either hurt or had no impact. you would hope it would have a positive impact. a 45% of americans are saying the money that has not been spent yet, we should stop it. sean: last question. back to the issue of independents moving away from barack obama. if you couple that with the battleground states, we look at va. chris dodd is in trouble. harry reid is in trouble. trouble in delaware. could it 2010 become the modern- day version of 1994?

is that overly optimistic on my part? >> it is early to tell. the signs are there for what could be a big year in 2010. we will see some indication in new jersey and virginia. there are governor races this year. a strong independent voters are there. new jersey was the first date with a plurality of registered independents. virginia has been 1/3, 1/3, 1/3. sean: we will have you back. we will be following these fascinating numbers. i predicted all of it. you know, what do i know? good to see you. coming up, michelle obama may not be proud of her country, but she is proud of her wardrobe. we will tell you about her brand new, $6,000 accessory.

. .

sean: michelle obama is becoming known for throwing a lot of money around when it comes to a tire. she was photographed volunteering at a food bank wearing a pair of $600 sneakers.

this week in moscow, she was seen holding a purse that cost $6,000. the white house said it cost only $900. (announcer) this is nine generations of the world's most revered luxury sedan. this is a history of over 50,000 crash-tested cars... this is the world record for longevity and endurance. and one of the most technologically advanced automobiles on the planet. this is the 9th generation e-class. this is mercedes-benz.

sean: $787 billion are being doled out as part of the stimulus. where are they going? "counties that support of obama last year have reached twice as much money per person from the administration's $787 billion economic stimulus package as those that voted for his republican rival senator john mccain." is this a coincidence? is there something more sinister it work? joining me now is kimberly guilfoyle and a conservative columnist. what is this?

color coordination. >> totally unintended. sean: before we get to that -- michelle obama has a $6,000 back. they're trying to refute it and say they only paid $900 for. she wears a $600 sneakers. my sneakers are about $80. >> it shows. we are still friends. sean: do you have a $6,000 back? -- bag? >> i do not have a $6,000 bag. i need a bailout. sean: americans -- she is doing pretty well. she goes to broadway plays, goes out to dinner. they get to go on vacation with the family. >> living the life.

dressing foxy. i am doing something wrong. >> i want to be michelle obama when i grow up. she has a great life and fancy date nights in new york. >> traveling the country, fancy clothes. america has been pretty good to her. sean: america was a mean country until my husband was elected. billions in aid go to these areas that back barack obama. sinister? >> absolutely. definitely expected. we were not born yesterday. it will go to the blue states. you scratch my back, i will scratch yours. it is very simple. sean: only if you are wearing orange. >> this is the unpolitical goes down. >> the stimulus was sold as completely altruistic. less than 1% of it is going to small businesses. $18 million is going to redesign the recoverygov website.

>> it is inappropriate. sean: i am thinking deeper. i think that barack obama -- every person out there, the government does not have money. it comes from everybody working really hard. barack obama, to shore up his reelection campaign, is basically buying votes in the areas where he got votes. >> the message is clear. if you want more of the taxpayer money, voted democratic. if you want to earn your own, vote republican. sean: that is punishing the areas that voted for mccain. >> it is very clear. it does not take the best account and to realize there is fuzzy math going on here. it is not right. what about transparent in government and taking care of the whole country, all of the states, all of the taxpayers? sean: they ran on this platform that it was the worst economy

since the great depression. joe biden is saying, we had no idea. we guessed wrong. here is my question. they were wrong about unemployment not going above 8%. warren buffett and others are saying, another stimulus package on top of health care. warren buffett thinks unemployment could hit 11%. >> that is not that far off. that is a round the corner. sean: is that the answer to everything, spend, spend? >> you do not let a good crisis go to waste. that is how they are looking at the stimulus. the economy is bad. milk this. handing out political favors is disguised as economic stimulus. >> it is government at its worst. i think it is offensive and people should be out rate. a that a couple of them might like to get their vote back. you cannot get a refund. you will just get higher taxes.

sean: we went through the different poll numbers. people are now holding him accountable. people blame him more. his poll numbers are coming down. this approval is going up. he cannot get away with blaming bush anymore. these are his deficits. it is his health care. he is getting everything he wants. >> he has to take ownership of the situation. he is the president. you cannot blame the prior administration. the american people do not want excuses. sean: they want jobs and they want some of their money back. they want the economy rolling again. are there many americans who want something for nothing? >> sure, but something for nothing will not give them what they want. this is not affecting unemployment the way they wanted to. the ohio poll shows that his approval rating is below 50%. sean: same with va.

>> those are key states. people are wishing they could take their vote back. sean: i do not because i did not vote for him. every time you are on, we will color coordinate. is that the idea? i do have an orange tie. >> next time. we will let you know. we can be like the great pumpkin. sean: the white house is revamping its website. wait until you hear how much supports your health in 4 ways. it helps your natural cleansing process. helps lower cholesterol. promotes overall well-being. and provides a good source of natural fiber. try metamucil today, in capsules and powders.

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sean: the latest stimulus out bridge comes to you from pennsylvania. your tax dollars are being used

to rebuild curbs that are hardly ever used by pedestrians. there are no sidewalks along the road. there are newly painted crosswalks, signals, and handicapped-accessible ramps. congratulations to the federal government for defying logic again in ways that not even i thought was possible. house speaker nancy pelosi earlier today discussed the democrats' cap and tax bill at her press conference. you will love this. >> we have the excitement of passing our energy bill. ♪ to reduce our dependence on foreign oil and improve our national security. ♪

a bill to reduce pollution in the air and make america healthier, a bill to invest in innovation and new green technologies and rebuilding america in a green way, making good paying, clean energy jobs here in america. ♪ a bill to honor our moral responsibility to protect gods beautiful creation by preserving the planet. ♪ sean: nothing makes the democrats more excited than sticking a good tax increase to you, the hard-working american people. tonight's "meltdown" is brought to you by chicago.

the president is overseas talking about the great perils of global warming. his old stomping grounds are experiencing record cold temperatures. yesterday in chicago, the thermometer failed to hit the 70 degree mark. guess what? according to "the chicago tribune," that makes it the coolest july 8 in 118 years. al gore. are you listening? the gao report released yesterday confirms the stimulus is simply not working. it also confirmed the obama administration is wasting millions of dollars in the process. abc news reports that $18 million is being set aside in order to redesign recovery.gov. this is the website that was so important that the vice president did not know the address. >> do you know the website?

>> you know, i'm zit -- i am embarrassed. do you know the website number? i do not have it in front of me. i am embarrassed. it is recovery.gov. sean: the white house says this site will help americans track where their money is being spent. i have a better idea. why don't you give us our money back and leave us alone? "hannity's america" continues with details of why the members of one of the world's most famous bands are being called gecko vo: you see, it's not just telling people geico could save 'em hundreds on car insurance. it's actually doing it. gecko vo: businessmen say "hard work equals success." well, you're looking at, arguably, the world's most successful businessgecko. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule:

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for your free brochure. sean: governor palin's resignation drew mixed reaction from the gop. one rasmussen poll shows that 40% of the likely gop voters thought the announcement would hurt her chances. 24% thought it would help. 28% thought the decision would have no impact. cnn had a poll that came out that said she was doing better with the gop. joining me now, frank luntz. how are you? >> i do not hear you. sean: can you hear me now? can you hear me now? >> sorry, i cannot hear you.

sean: we had frank do dial groups. one of the first groups he did, the first one, you are watching -- remember, you have dials. you're looking to see where the line goes. roll the tape. >> i have been accused of all sorts of frivolous ethics violations. holding a fish in a photograph or wearing a jacket with a logo on it, answering reporters' questions. everyone of these come all 15 of the complaints, have been dismissed. it has not been cheap. the state has wasted thousands of hours of your time and shelled out 2 million of your dollars to respond to opposition research. that is money that is not going to find teachers or troopers or safer roads. this political absurdity thof

politics of personal destruction, i am looking at half a million dollars of legal bills to set the record straight. what about the people who offer up these silly accusations? it does not cost them a dime. sean: frank, welcome back. the magic number you are looking for is somewhere around the 60- 70 range. here is the point. she has given out more information. they spent $2 million in the state. she spent over half a million dollars defending herself. it appears that that message is beginning to resonate with people. >> when we tested her speech at the national convention, it was one of the great speeches of political discourse in america. when we tested the speech, people were disappointed. that clip is one of the reasons why. they do not want to hear excuses. the lines are below 50 for a lot of that, even among republicans.

it took until she said "the politics of personal destruction" before the republican line climbed. they do not want to hear excuses from a vice presidential candidate. they thought it was w hining. she does much better in another segment because she talks about standing up and being much tougher. i think we should go to that segment. you will find a better reaction. sean: usually, you are saying that if she gets to 70 -- we are running the different ads, and that is a good number. when she got to that. and she was talking about personal destruction -- since that time, more information has come out. let's roll the second part of this. >> life is too short to compromise time and resources. although it might be tempting and more comfortable to keep your head down and plot along and appease those who are demanding, sit down and shut up

, that is a cop out. that is the quitter's way out. the problem in our country is apathy. it is apathetic to hunker down and go with the flow. sean: why was that when better? >> she is much more aggressive. she is talking about what is wrong with america. she is saying that i am not going to do it the way everyone else has done it. i will not sit -- sit back. that plunge climbed because she is now personalizing not for what is to claim -- to blame, but what she wants to do about it. i am disappointed. here is someone who has the capability to deliver an amazing address to the american people and capture republicans and democrats. why she was not more focused, why she was not more rehearsed -- you might say it is from the heart. the american people expect something better from her, more

crisp and clear. they were disappointed with what they saw. sean: the only thing that i have, and perhaps somebody could have written a better speech, but maybe that is teleprompter reading. many in the end, people get sick of it. barack obama was running and he was getting a paycheck as senator for the entire time he was running for president. rahm emanuel promised the people in his district that he will stay there and he bailed out. napolitano bailed out. we do not discuss it. there always seems to be a double standard as it relates to governor palin, doesn't there? >> there is a double standard. you know what? that his life. you can argue and complain about it come as she did, and she did not score well, or she can talk about standing up, speaking out, fighting, being aggressive, getting in people's faces, and not saying "no." when she is tough and direct and

unscripted, it is a positive reaction. if you will complain about the past, i am sorry. the american people and republicans do not want to look back. 2008 was not a good year. they want to look ahead to 2010. sean: with the republicans in your dial corp., the republicans were favorable to that second statement. the gallup poll came out and said that her popularity grew after the speech she gave with her republican base. >> but republicans tend to reward people who run the second time. john mccain, he was a second time candidate. ronald reagan was the third time candidate. george w. bush was the second time candidate. she should be in the position where she would give a speech with no mediocrity. maybe you can say that i am expecting too much of her. i would have expected her to

score better than what she did. sean: better than 82? that is a high standard. >> that second segment was great. that is because she was talking about what she was going to do. you have to consider that first segment when she talked about why she was doing it. sean: we have one health care ad. we have been following the debate over health care. it is front and center. let's run that and we will see how people react. >> i hear about plans in congress to take control of every american health care. i get worried for my patients. washington controls medicare now and medicare will be bankrupt in eight years. if the government takes over health care, your choices will be taken away. health care will be rationed and quality will decrease. your health care will be reduced to one question, are you worth the cost? bureaucrats might decide the

care patients need is not worth it. look at canada and england. patients wait up to a year for vital surgery's. delays can be deadly. many drugs and treatments can be withheld. washington needs to fix medicare and medicaid, not force americans into health care system that has already failed. government should never come between your family and your doctor. sean: we get to 90% and that is out of the park. >> patients first. they did an ad of perfection. they used a female doctor, not a politician or an actress. she talks of compassion and caring for her patients. she illustrates a very specific example of health care failure in canada. she offers a very specific solution.

patients first hit it out of the park. viewers are seeing pictures of her with her patient. it worked among democrats and it was an awesome home run among republicans. sean: we have been following these ads. those who use medical professionals, when it is a person who seems to know, it seems to work better. thanks for being with us. >> when they talk about consequences, the consequences of the obama plan, they score very well. sean: thank you. time to check in on what is coming up 21 minutes from now. i am guessing greta has a big surprise. greta: i was listening to your segment the second go on governor palin. we will talk about a column that is a vicious about governor palin. it is unbelievable people get this vicious. the former ceo of general motors is about to get the

golden parachute from us, since we own general motors. here is the realties. newt gingrich says something big is a joke. he is here. sean: something big is a joke. greta: it is not funny. this is serious. he says it is a joke. sean: this is like of riddle per night. i have to be better prepared. one day, i will nail this. when i do, you owe me dinner. greta: remember that puzzle? your show first launched. sean: i remember. we will be watching in 20 minutes. the great american panelists straight ahead. -- panel is straight ahead.

sean: tonight on our panel, she

is a former pentagon official during the break in an illustration. kt mcfarland is here. he is a fox news legal analyst, attorney peter johnson jr. is with us. she is a columnist. kirsten powers is back. thank you for being here. let's look at the new lows. los approval rating he has had. more americans blame barack obama for the bad economy. more people say that we are going in the wrong direction as a country. they are losing in key states. they think he is spending too much money. more people call themselves conservatives. more people view of the democratic party as liberals like you. >> most of that changes among conservatives. independents, gallup put up something to the. since january, he lost 3 points

among independents. i think it is overblown. i will not say he does not have a problem. i will not say there should not be concerned. people are concerned about the spending. they are concerned about the deficit and the economy. these are normal concerns. i think people are overstating what is going on. sean: i think you are probably one of the people that was willing to give obama that chance. you were more open-minded than i was. i thought this was destined for failure. i want to say for the record that i was right and i am right. >> there are a lot of independent voters who are disappointed. that is reflected in the polling that we are seeing. there is more than disappointment. there is a real unease. there are promises that we will have more jobs. there are fewer jobs. they are saying that they

miscalculated and misread the situation, or has not taken effect yet. maybe we need a second stimulus package. people are losing confidence. eight months out, they should not be losing confidence. they should be having greater confidence. sean: let me follow up on that. they are even telling us -- they told us unemployment will not go above 8%. they are now predicting it will be double digits by the end of the summer. they do not have confidence. joe biden literally said "we guessed wrong." they ran on the idea that it was the worst economy since the great depression. >> we get these balloons that there will be another stimulus package to do but what was going to become the first time. it was not done. was it misread? did they know the first one would not work? are we being set up for second one? what is the truth? >> the bottom line is the

economy. he cannot blame it on the predecessor anymore. he has had the stimulus. he has unemployment figures. it is his and it is not going well. you're seeing a reflection of people getting really nervous. >> did people think the economy would have turned around completely by now? sean: lawrence summers said -- >> they expected the economy to be turned around in july? sean: is doing its job. those were the words he used. >> they made a mistake. they made a mistake by claiming that unemployment rates were going to be lower than they are. sean: timothy geithner promised the american people that the effect would be "felt almost immediately." they were wrong. it will take almost -- at least -- >> and you made a wrong left turn on the way to the wedding.

they are 10 minutes late. we made a mistake. it is 1.5 points higher than they thought it would be. that is a massive mistake. sean: he was saying " catastrophe," "crisis." he was saying if we did not pass it, unemployment would be at 9%. >> start looking at what happens next. their budget projections are 4% growth next year. whatever the deficit is now, however that it is, it is only getting worse. >> frankly, the greatest critics happen to be the liberal economists who they relied on in the beginning that are pushing them toward additional deficits, additional stimulus plans. >> they really did not rely on that. paul krugman wanted him to spend more money. he was critical when it happened. he is the leading liberal

economist by far. he did not do that. he did not do what was suggested. sean: the people he is listening to, lawrence summers, timothy geithner and the rest of them, they said we would feel the effects. >> he was doing with the liberal economist told him to do. that is not true. >> he was following a pump priming example of the new deal, which was not effective at the beginning of the new deal. the president is trying to say, we made a mistake. we miscalculated. >> he was more moderate and liberal economists. sean: warren buffett says unemployment might be as high as 11%. the gao says the states are misappropriating stimulus bonds. -- stimulus funds. it seems like they are taking our money and paying back the people who voted them into

office. >> several states are already bankrupt. they are sending out iou's instead of paychecks. it will get worse each month. i think the green shoots you're seeing are not the ones they're talking about. sean: their printing money. inflation is not far behind. i think we're headed for lost decade. if they are doing what japan did, we would have the same result. i think it will be inflation. >> then you have a chinese problem. sean: we will continue more with our panel. . . pepto-bismol. nausea, heartburn, indigestion, upset stomach, diarrhea. yeah, my buddy's got all that. do we need to buy a bunch of different medicines? pepto guy: oh, no, pepto alone relieves all five symptoms. plus gas too. dude. we're covered. enjoy the game.

easy. pepto guy: pepto-bismol. yup, you're covered. yeah, so? it stinks in here! have you smelled this chair? or these curtains? you've gotta wash this whole room! are you kidding? wash it?! let's wash it with febreze! whoa! [ sniffs ] hey mrs. weber. [ sniffs ] hey, it smells nice in here.

sean: there i am, i am on the radio today and i click out of the drug repor sean: there i am, i am on the radio today and i click out of the drudge report. do you see this picture? >> oh, no. >> he is looking at something on the ground. sean: if that was you going home, what would the reaction be? when have you ever been at a loss for words. >> i am sure there is a good explanation for that. i think that he was bowing to the saudi prince. for that. i think that he was bowling to

the saudi prince. -- bowing to the saudi prince. >> to it is nicolas sarkozwho iy looking at? sean: he is looking at her backside, can be just say it. >> he is leaning right, for the first time in his career. sean: michelle obama, she said she is potiphar country now. america is pretty good now, not only is her has been president. -- she said that she is proud of her country. she gets to fly to new york for a weekend getaway, a night out

on the town. a $6,000 handbag and $600 shoes. at a time when unemployment is at 10%. >> i don't know. if that is true, and i never know with you, sometimes you make things up. sean: are you calling me a lawyeiar. >> i don't think that this is appropriate, i think this sends a bad message. sean: the people that make those bags get to keep their jobs. >> remember when nancy reagan had the clothes that she was getting for free or at a discount? i would like to know if it is really that much. >> it seems strange because she typically stresses very

extensively. -- dresses very inexpensively. >> i have mixed feelings on this. if they earn the money and they want to buy the handbag, she can do that. is this a great symbol of a president who is reaching out to the american people? no. sean: i did not know $600 pairs of sneakers existed. >> i don't believe that. >> i have never seen you with a $5,000 handbag. sean: we have the sweeping health care legislation. "the boston globe" reports that it will include billions of

dollars for walking pads, street lights, jungle gyms, farmers markets. a 10 kenneda spokesperson for ty says that the street lights are good for health because people will exercise more. what about the debt? >> this is ridiculous. >> do you know how much every taxpayer owes already? $90,000. >> how much was it when george bush was president? sean: in one year barack obama quadrupled the deficit and he spent more money and created more debt and every president from washington through and including bush. >> and he had a huge economic

reagan did it with tax cuts. >> and now our president is conceding that the stimulus does not work. wait until next month, they will talk about a second stimulus. sean: the democratic party has overreached. they will pay a political price.