cost of freedom block. have a great weekend. we will see you next week. >> this is a fox news alert. two big stories we're following this hour. first, the passing of an american icon, walter cronkite died last night in his home in new york. and at the same time, another story, astronauts in space shuttle endeavour a six hour space walk to install a new component aboard the international space station. hello everyone, i'm brian wilson live from washington for the next hour, we begin with the outpouring of reaction over the death of news man walter cronkite. laura ingle is standing by in new york to begin our coverage, hello, laura. >> walter cronkite has sparked many loving memories from those who knew him so well and from those who called him the most trusted man in america.

he died last night of cerebral vascular disease at age 92 with his family by his side. many watched him deliver the news reporting from the front lines of world events like the vietnam war and the voice of authority and the first to report president kennedy's death in 1963. well, cronkite was in on some of the darkest hours in our nation's history, he took us for a magnificent ride, the news, including the apollo 11 moon landing. >> 22, thanks a lot. >> oh, boy. . >> reporter: and that tangible joy was felt around the world and you see that smile. cronkite passed away three days before the 40th anniversary of the moon landing, among been considered an authority on the space program. and president obama had this reaction. >> walter cronkite was more than a name. someone we could trust to

guide us through the most important issues of the day. a voice of certainty in an uncertain world. he was family. in moments of tragedy, walter looked us in the eye and shared it, in moments of triumph he rejoiced with us. >> reporter: and we have a statement from cronkite's long time colleague dan rather who called his friend a giant of the journalistic craft. a brave and distinguished career as a newspaper correspondent in world war ii, one of those to pioneer television journalism. of he had an understanding of the big story of his time. i just got off the phone, brian, with his daughter-in-law, debra, who told me he was a wonderful grandfather to their children and an amazing man. walter cronkite will be remembered, she tells me, in a private service here in new york at st. bartholomew's church and we understand there will be a large service by cbs

news in about two weeks. >> thank you so much. chris wallace, host of fox news sunday, as the son of mike wallace, chris knew the family as well and as a young man served as cronkite go-for. good to have you, chris. i heard you talk earlier what it was like, your thoughts about the man, but what was he like in private? >> he was a very sweet man and he wore his same and he was the most trusted men in american and most famous men in america and worked lightly. he was a warm father, he was a dear friend to his colleagues. i can't say i was a colleague of his, i was a son of a colleague. colleague. but i worked as a go-for as you say, go for coffee, go for pencils in the convention in 1964 and in one of the shots in 65.

he was a nice man and a true american. actually, i can remember walter by the end of his life was pretty-- in martha's vineyard we were invited over to his house and he put up the american flag and then he fired off this just god awful cannon, so loud, one of the other guests turned him in and now you wonder why walter is deaf, he apparently fired this off every night. he was a true american. he bled red, white and blue. >> many people who grew up in the 60's, i was a young man and watched walter cronkite in my home tv. he was the final authority on what was going on in the world. and led us through some rather tumultuous times. >> oh, gosh, first of all, he he waded ashore during the invasion of normandy. he went on bombing runs with u.s. bombers flying over germany in world war ii. you can't overstate the fact that he was a wire service

reporter. and you know, they have no flourishes, they have no opinions, they were back in the 40's it was who, what, when, where, why, and i think he approached journalism, always that way, tell me the story, what's the news of the story. of conscious, kennedy's assassination, the landing on the moon and for walter, we felt as a nation we could get whatever the world presented us through the tumultuous times if we had uncle walter tell us the news. >> chris wallace, thank you for spending time with us, coming up later we'll talk to 32 year cbs news veteran phil jones on the a-list bench of correspondents during the cronkite era. >> on this day we remember walter cronkite from mercury to apollo and we have a space youk underway. astronauts from space shuttle endeavour install a key components of the international space station,

we'll continue to monitor the space walk throughout the hour and the afternoon and bring you all the incredible pictures as they come to us from out in outer space there at the international space station as we speak. and we're getting a picture of. developing news from washington, president obama spoke to internecia's president today to express u.s. solidarity with the indonesian people after a bomber. rita, what is the latest? >> brian, police here wrapped up a press conference this evening and investigators say that they found a handwritten note, a cell phone and a bomb encased laptop inside of room 1808 in the marriott hotel. fox news has learned that among the suicide bombers, one of them was likely a woman. so far, we're hearing eight people were killed and more than 50 people were injured and including americans, and

most of those americans were medivaced to singapore, brian. >> what happens next? what do they think is the next step in this investigation and who is responsible? >> well, they're still trying to identify the remains of the suicide bomberses. right now, brian, the lead suspect is a mahle shun man, a break away group, his name is norman, and we interviewed the vice-president of security of marriott hotels this afternoon and he was inside the ritz carlton when the bombs went off and says that security officials there say they saw a suspicious man get off the elevator, asked him what he was doing, he was wearing a back tack and he said he had a meeting. they said what was the name. meeting, he couldn't identify the name of the meeting and that's when they grew suspicious, and that's when the bomb went off, brian. >> thank you so much, we appreciate your reporting. a developing news from afghanistan now where a u.s. fighter jet has apparently

crashed, killing both crew members of that plane. the crash is believed to have been caused biomechanical problems, and not hostile fire. they say the f-14 jet was conducting operations when it crashed, july has been the deadliest month for the western troops in the nearly eight year long conflict in afghanistan. a member of an iranian backed militia has been arrested in connection with an attack in the southern iraqi city of bazra thursday night, prior to the attack, basra considered one of the-- u.s. believes some shiite militia members received funds and training from iran, something that the iranian government has denied. president obama wants health care reform, he wants it soon and he wants it all to stay within the budget. that's a pretty tall order. molly henneberg is live with the the latest on that story, hello. >> hi, brian, republicans say there's no reason to rush something as important as health care reform, but president obama says he wants

to know if congress is going to keep, quote, talking and tinkering or get a bill passed this year. mr. obama, who left for camp david this morning, said in his weekly radio and internet address that his plan would cut billions of dollars in spending in quote, unwanted give aways to insurance companies in medicare and medicaid and the reports by the budget office says this reform would add 239 billion dollars to the national deficit over ten years. >> when we first had the first proposal, for a standing commission of doctors and medical experts to oversee cost savings measures. i want to be very clear, i will not sign on to any health plan to adds to our deficit over the next decade and by helping improve quality and efficiency, the reforms we make will help bring our deficits under control in the long-term. >> but republicans say the way to help reform health care is

medicare and medicaid fraud. stop frivolous lawsuits, frenthen programs and enable small businesses to get together and buy health insurance like large corporations do and they say the democrat's plan will quote, create mountains of new debt. >> this week, the director of the congressional budget office told the senate budget committee that the health care reform measures drafted by democrats would worsen our economic outlook, by increasing deficits and driving our nation more deeply into debt. so there's good reason to be skeptical when the president tells us we need to pass the democrats bill to help the economy. >> and the senator says more and more americans find out about the president's plan, quote, the more they oppose it. the president obama says doing nothing will lead to increasing costs for families. brian. >> molly henneberg, thank you very much. passage of the health care plan is far from a done deal as president obama encounters some resistance, even from democrats. congressman of louisiana is a

member of the house ways and means committee, himself a doctor, he joins us now, congressman, thank you for joining us. >> brian, good to be here. >> health care is broken, we all know it's broken and i mean, we hear the stories how difficult it is for elderly people to find doctors, and we need to fix it, but this plan seemed to have its own set of problems in that it's very expensive. >> well, it is very expensive and we're just starting to see how real expensive the plan is going to be. the congressional budget office has not looked at what the costs are going to be in terms of deficits. just today, they released the preliminary figures showing a deficit of over 230 billion dollars and this is an estimate and we think it's actually going to be much higher. >> what's going to happen here? the president says we will do this, we will do it this year and we are going to do it and keep it in the budget and not going to run up the deficit of this plan. how do you do all that have? >> well, certainly, what he said was counter to what the

house republican plan or house democrat plan looks like. and this passes the ways and means committee in the wee hours friday morning, we have to start proposing very good ideas how we can target solutions and ensure how we can keep the costs down and enhance quality many in the process. >> congressman, you're a republican, the democrats take control of this. are they listening to the republicans? it doesn't seem to me there's a lot of that going on. >> an interesting development behind the scenes right now, whereby some of those modern democrats, so-called blue dog democrats and business friendly new democrats are actually starting to have conversations with us to build a coalition for the center. and actually really come up with wellness on the health care reform and that's the only way to do this. >> yes, but your speaker of the house is not a blue dog democrat. >> i know and that's the

problem, but we think if we can build enough public opinion on this that it will force the issue because the american public, the republicans agree that it has to be done carefully and in a prudent way. >> congressman, thank you for joining us. >> i think that somebody wants to see some success, we're just not sure how we'll get there. the controversy surrounding the murder of bird and melanie billings continues with pensacola sheriff's deputies arresting eight people so far in connection with the the deaths. the florida couple were laid to rest yesterday after an hour long service at a local church in pensacola. billings were murdered last week during a robbery at their homes and still a mystery for the deputies, was there somebody else involved supposed to have turned off the security system? we'll be back and cover the story, one of the most interesting murder cases i've covered in my career. the jobs promised, since it

didn't, should we talk of additional stimulus spending with your tax money. we'll explore that when we come back. stay with us, everyone. if we don't act, medical bills will wipe out their savings. if we don't act, she'll be denied coverage because of a pre-existing condition.

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>> topping the snus right now. walter cronkite, the news man many americans considered to be the most trusted man in america died at age 92. he was the anchor of cbs meaning news 1962 to 1981 and the face on many of the biggest stories of the 20th century. high above the earth astronauts right now conducting a space walk at the international space station. they're working to attach a platform to japan's huge billion dollar lab and today

is the first of five space walks planned for the current mission. trains in seattle are set to leave the station for the opening of the new light rail today. free rides are offered this weekend on the line. transit officials are expecting as many as 50,000 riders today. political, personal, and economic pricing have most u.s. governors staying home this week, for the weekend's national governor's conference. jonathan serrie is live in biloxi with more on those who are attending are doing. hello jonathan. >> hi, brian, those who are attending are just now beginning to arrive and the first set is set to begin ten minutes from now. among the issues taking center stage, the current economic crisis, in particular, federal stimulus dollars. some governors have been complaining that the process is too slow, with only 10% of the stimulus funds currently in the pipeline. unexpected cuts in consumer spending have put many states in a mind because of heavy reliance on sales taxes and some states bound by balanced

budget amendments are using stimulus funds to shore up deficits rather than spending on shovel ready projects. in addition to scheduling conflicts, these state budget crisis have prompted about half the nation's governors to stay at home. among the prominent no-shows, republican governors including sarah palin of alaska, tim pawlenty of minnesota, south carolina's mark sanford who opted to take his family on a trip to make ameans for his publicized affair and california governor arnold schwarzenegger. with g.o.p. in both houses of congress i asked mississippi governor haley barber who is leading his party. this time presents opportunities for many republican voices to be heard. >> we'll see the bush administration the last eight years and now they're starting to see different republicans, and that's useful. >> reporter: barber, who's

hosting this year's national governor's association conference in biloxi was originally to do so in 2006, that was just a year from when hurricane katrina devastated the mississippi coast. they were still repairing all of the damage. so, it has to be postponed. finally, in 2009, governor barber got to host this conference and sees it as a way of showcasing just how far his state has come. brian. >> brian: jonathan serrie in good lucksy, mississippi. thanks, i want to tell you something we call live shots, a new feature at fox news and allows reporters, producers, camera crews, to file breaking news information and updates directly to their own blog on foxnews.com and if you can't catch them on the air, i want to know more about their story, check them out at foxnews.com/live shots. president obama's recent talk about a second stimulus plan has some people wondering what happens in the first one.

where are all the jobs that were promised? >> an economic journalist and author and managing director of formula capital. >> right. >> he's with us here this morning this afternoon to talk about what's going on with the stimulus plan. now, the president and his administration made it very clear that if we got this first stimulus package running, that unemployment would not rise above 8%. that was sort of the redix that was thrown around capitol hill when capitol hill signed off on all the money for stimulating the economy. well, as we know, we're at nine. probably going to go to ten. what happened? >> well, i think there was a miscalculation in terms of how quickly shovel, so-called shovel ready projects to get going. even if we have a consumption project to go and all planned out, you still have to get the appropriate permission, you have to hire people and it takes time, it takes a good, 6 to 12 months to get a project from start to go, going. you know, once the bill, once the dollar has hit.

right now we've only had about 10% of the stimulus hit. it's way too early for anybody, including the president to say one way or the other, where the jobs are. it's too early. i mean, we really haven't spent most the money that's already been approved. >> we've spent nothing. >> yeah, i mean, just a small part of it. what's taken so long. why can't they get that money out there? >> well, it's really not-- it was really not intended to get out as quickly as people think. i mean, for 2009, only about 25% of the entire stimulus package will have been spent. even by the end of 2010, it will be about 75%. so, this is a several year stimulus package. the main worry is that if the economy is already starting to improve and we're starting to see the commodity prices go up and yields go up and so on, we're going to worry about inflation because we have an extra 500 billion dollars still ready to hit the economy and we will be on overdrive mid 2010. >> brian: i'm wondering, does it make sense perhaps if the economy is slowly start to go make a recovery and many believe that's the case, sort of be out of the worst of this

by the end of the year. why not just not spend that money and put it back in our bank account? >> well, we could do that, but i'm happy for the government to spend money because i think we want more than just a u-shaped recovery, a v-shaped recovery and from all the dollars flying down, but i don't think we need a second stimulus package. that would be overkill and would send us into an inflationary death spiral. >> brian: james, thank you very much. good to have you with us today. >> thanks, brian. >> brian: he was known as the most trusted man in america, we take a look at walter cronkite's remarkable career right after the break. stay with us everyone. i never thought i would have a heart attack,

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>> bottom of the hour. time for the top of the news. legendary news man walter cronkite has died. cronkite's evening news reached as many as 8 million viewers a night, during the 60's and 70's, known as the most trusted man in america and brought the news of john

f. kennedy's assassination, turbulent times of the civil rights era and man's first steps on the moon. speaking of space, the astronauts started the first of five space walks for the current mission. today, the job calls for attaching a platform on japan's huge billion dollar lab and the space station brought together the biggest gathering in orbit today, 13 earthlings report at the international space station. keep watching fox news for live coverage of the endeavor mission. these are live pictures from outer space. an arrest has been made in the murder case of former nfl quarterback steve mcnail. 33-year-old adrian, jr. guilty of attempted rob i in 1983, has been charged with selling the girlfriend the gun that killed mcnair. his release from prison seven years ago, gillian faces town ten years in prison and $250,000 fine. the hearing to set bond has

been delayed until wednesday. and those are your top stories of the news right now. well, as we've been telling you, legendary news man walter cronkite has died. for many americans, cronkite brau the first news of john f. kennedy's assassination, the watergate scandal and man's first steps on the moon. as we prepare to celebrate the 40th anniversary of the apollo mission, we remember correspond cite's enthusiasm. >> he was the most trusted man in america, certainly in television news. president nixon reportedly will announce his resignation tonight. >> in the nation some of the most important events of the 20th century. for 30 years, americans let walter cronkite into their homes for nightly newscast. cronkite was born on november 4th 1916 in joseph, missouri, later his family moved to houston. in high school, the journalism

bug bit. he started by reading tales of foreign correspondents and his reporting career began when he joined the newspaper and yearbook staff. during college university of texas at austin, took a part-time job with the houston post and that eventually led to a full-time position. cronkite was given his first broadcasting job at radio station know in austin. as a sports caster he faced a daunting challenge. they had no sports wire, but a nearby shop did. he ran there, memorized the scores and ran back to broadcast them and once the baseball season ended. cronkite tried to stay on and the station manager let him go, telling him quote, he would never make a radio announcer. from there, a job the at the nation's capital at this led to a full-time job at the houston paper. his parents didn't seem disappointed he didn't graduate. in the midst of the great depression, a job was

considered more valuable than had an education. during world war ii he worked as a where correspondent for upi, a company to troops on d-day and once fighting ended he stayed on as the chief correspondent during the nuremberg war crimes trials. and in 1950 lured to cbs and covered politics and historical documentaries. in 1962 helped found the cbs evening news and he anchored the next 19 years. he was seen as impartial news man, more americans got news from cronkite than the huntley brinkley report. >> the united states information agency-- >> he also broke some of the centuries biggest stories. >> president kennedy died at 1 p.m. central standard time, two o'clock eastern standard time. some 38 minutes ago. >> when president kennedy was sass nated the stoic anchor showed emotion for the first time. >> i'm not very cold-blooded,

i can cry over wounded animals as well as people, but that was the only time i think i really broke on the air. >> when he finally had a public opinion, american listened. >> the communist intention was to take the-- they came closer here than anywhere else, now, three weeks after the it began the firing goes on. >> when he opposed the war in vietnam, president lyndon johnson remarked, if i've lost cronkite, i've lost middle america. >> i don't believe he said that was a deciding matter at all. i think it was just another drop of water in a great torrent that was overwhelming lyndon johnson at that point. >> cronkite's focus on the watergate scandal during the nixon administration, helped propel that story to the nation's headlines. cronkite retired from the evening news in 1981. >> this is walter cronkite, good night. the last few months of his

tenure he was given 11 awards including the presidential medal of freedom. afterwards he continued to host specials on cbs news and remained on the division's board of directors for ten more years. in 1985 the first news man aside from edward r muhro to be inducted in the hall of fame. even in retirement active in television. during the 1996 presidential campaign, cronkite led the fight for free air time for presidential candidates on television. he was a sought off public speaker, the host of many documentaries and an avid sailor on his yacht and television news grew out of its infancy, walter cronkite helped it mature. in short, walter cronkite was television news. >> that's the way it is. >> i'm eric shaw, fox news. >> brian: you know when i arrived in washington, i had the honor of getting to know one of cronkite's a-list correspondents. bill jones worked for cbs news for 32 years, did a reporting stint in vietnam and i met him

when he was the dean of capitol hill correspondents. he's a man who has broken more stories in washington than you can shake a proverbial stick at and he joins us now on the phone. phil, it's good to have you here. your thoughts on the passing of walter cronkite? >> well, it's good to be with you, brian. thanks for having me. this is sort of a bittersweet time. on the one hand, it's sad to lose walter, but it is a time to celebrate his contribution to television news. you're there where you are and i was there at cbs for 32 years because of walter cronkite. he paves the way for us. of the first, there were the of muhro boys at cbs news when edward r muhro came in and that was followed later by what i called the cronkite kids and we, you know, we were all following him. i think america viewed him as

their uncle and we even had the pleasure of working with him and for him as our dad, as our father. >> brian: now, phil, he was the manager of cbs news not just the anchorman. that means he had a lot of say over the final scripts. how many times did you have to do a rewrite for walter cronkite. >> well, i can't count. walter looked over every script that went to him, i mean, i started out at cbs news working out of the southern bureau that was based in atlanta and we would send in our scripts in the afternoon right late afternoon to new york and producers would look at them, but the guy with the detail power, that was walter cronkite and he would not hesitate to use it. he looked at the scripts very closely and if it meant at the

very last minute that three or four minutes before air time that he spotted something that should have been in there or something that shouldn't be in, it came out. >> brian: well, phil jones, i can't tell you how much i appreciate you being on the phone here with us. let me say that phil was a guy that helped this young reporter when he was trying it figure his way around capitol hill and i owe you a debt of gratitude for that. phil, thank you for joining us. >> thanks for having me. >> see you soon. >> brian: hillary clinton is back on the world stage making her first trip overseas since breaking her arm. james rosen is travelling with the secretary and joins us from india where global warming is on the agenda. hello, you're on skype today. tell us what's going on. >> well, good evening from mumbai, brian, where secretary of state clinton became the first senior obama administration official to visit india, a country emerged as a key player in the economy and also a key u.s. ally on a broad range of issues. the secretary began her visit here on a somber note, signing

a book of condolences in the taj hotel and palace here in mumbai, the same hotel where terrorists attacked last november 26th and where she said as a symbolic gesture, quote, unquote, to the terrorists she herself is spending two nights. americans share a solidarity with this city and nation, she wrote in the condolence book, both our people have experienced the sense ls effects of violence and both countries can be grateful and proud of the heroism of brave men and women and prevented greater harm on 2611. indian reporters for their part, answered questions about whether the united states has played some kind of hidden role in talks between india and pakistan and the secretary denied that, saying the two sovereign countries are solving their own disputes amongst themselves. instead, it emphasized the ever expanding ties between washington and new delhi.

>> the dialog that we are going to be embarking on with india would be extremely important. it will have five pillars, it is-- it's comprehensive, it goes across the areas of strategic cooperation, agriculture, education, health care, science and technology. >> now, despite having recently broken her elbow, brian, the secretary kept up her break neck space that she maintains on the foreign trips and meeting one day with business leaders, women entrepreneurs, education analysts and she's also going to be touring a factory here in india that remains a contentious issue between the united states and new delhi, how much india will be willing to cut carbon he emissions has been one of the major talks in a short period of time. >> brian: james rosen, thank you very much. a 15-member commission unanimously recommended that congressman-- that congress, rather, abandon

the federal gas tax. and replace it with a vehicle mileage tax. have you heard about this? it's a long way off, but the idea is that drivers would essentially pay a fee based on the number of miles they drive. how would that affect where you live? greg lich was one of the-- the former ceo of greyhound bus company and he joins me today from dallas. this is sort after very different idea, do other countries do it this way? >> yes, brian, a couple of other countries are in the process of implementing a vehicle miles tax and the netherlands is going to do it for the entire country. >> so the idea is you would pay more if you drive more. if you drive less you would pay less? >> how does that impact-- >> exactly. >> how does this impact businesses like you used to be the ceo of greyhound. you guys would drive a lot of miles. >> we did drive a lot of miles. but we also used up a lot of road. and so, the idea is really

quite simple. the people that use the roads should pay for the roads. i think actually, the trucking industry and the bus industry would find this an acceptable approach in the long run. now, our commission is recommending that congress do the necessary studies and analysis for the next four to six years before actually making a decision to go to the mile tax and subsequent highway reauthorization bill and i think during that period of time you could get significant public and corporate support for this approach. >> now, the idea, i understand, was tested in oregon. what did you find when you looked at the situation there in oregon? >> well, the oregon test was he very interesting. first of all, we think it is a basic concept. it was fairly easy for people to pay the vehicle miles tax and not pay the gas tax. it was a trade off of one for the other, you can't pay both. and the collection mechanism worked pretty effectively, but

very interestingly, simply because people knew that travels and miles cost money they reduced their travel about 9 to 10%. they really didn't have a change in their fundamental mobility, but chose to consolidate trips and modify their trip planning to the point that they reduced travel pie about 9%. >> craig lynch, thank you for joining us, interesting concept. i think we'll hear more about it in the days ahead. thank you for joining us. president obama's list of czars is long and seems to get longer each and every day. he so, what is the czar, really? who do they answer to? white house correspondent windell goler will clear that up for us and we continue to remember the life and career of walter cronkite. >> the flash apparently official, president kennedy died at 1 p.m. central standard time, two o'clock eastern standard time. some 38 minutes ago.

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>> on this day we remember walter cronkite, took us from mercury to apollo and we have a space walk underway right now. astronauts from the space shuttle endeavour install a key component at the international space station and you're looking at live pictures, a total of walks will be interesting and we'll monitor the space walk throughout the hour and afternoon and bring the incredible pictures as they occur. topping other news as we said a moment ago. legendary news man, walter cronkite passed away age 92. he was seen in some 18 million american homes during the 60's and 70's and he passed away in his home in new york. secretary of state hillary clinton is in mumbai today on

the first leg of a trip through india. and southeast asia and urging the nation know the to repeat the u.s. mistakes in the area of global pollution. the first trip since breaking his arm in mid june. police are focusing on a fugitive terrorist and master mind of two explosions in a hotel in jakarta, indonesia. eight people were killed in the blasts the questions were raised over the obama administration's slew of czar, officials who do not have to be confirmed by and may not be accountable to the u.s. congress. white house correspondent wendell goler has more. >> though giambi and chrysler are both now out of bankruptcy, task force lives on. the former steel workers union worker, and he joins close to some account close to three

dozen czars, managing everything from the closure of the guantanamo bay facility and ending genocide in darfur and the white house fends off contentions he's named too many. >> as a marketing czar, i failed to give or get her member heo. >> what is a savrjts they would have accountability for something, they are charged with delivering something specific. >> george washingtons university professor says a czar needs to do something else. like the energy czar his or her authority should cross cabinet boundaries, in this case the environmental protection agency and energy department which folds back to energy steve forbes says is a testament to government inefficiency. >> we call it the inefficiency of government and handing that to people and hoping that maybe they'll get something done with the massive bureaucracy cannot. >> by some definitions, a czar reports directly to the president and does not require

confirmation. which he says is like building a parallel government. >> outside the constitution and authority of congress. >> there are less than a dozen czars, but mr. obama and vice-president biden are responsible for more than half of them. in addition to browner in the department, executive orders created affairs czar and chief technology officer this year. and when he was in the senate. vice-president biden sponsored legislation, a drug czar, a science czar, a domestic violence czar, of course, none were officially called czars, but that's what the president called them. >> as well as our new director of our office of-- i always forget the full name of the thing, i call it the drug czar, but-- >> that's director of the office of national drug control policy and some of the czars have even longer titles than that, but do the czars work from a management sense? we'll take a look at that in our next report. in washington, wendell goler, fox news. >> brian: and then you've got to have a czar to look over all the other czars, a

czar-czar. is your state facing tough economic times? no state is going through worst times than the great state of california and as california goes, so goes much of the countries. we'll talk to san diego's mayor how bad the crunch is. it's brian wilson in washington, there's much more and at the end of the broadcast your personal thoughts on walter cronkite and what he meant to a young broadcaster on the way up. [ indistinct conversations ] ♪ ♪ [ female announcer ] for underarms that are sexy smooth, get secret flawless touch with olay. it even reduces irritation caused by shaving.

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>> topping the news right now. walter cronkite the cbs news man considered to be the most trusted man in america died at the age of 92. he was the managing editor of the cbs evening news from 1962 to 1981.

many viewers will remember his closing lines in the evening newscast, "and that's the way it is." love that. eight people have been arrested for the murder of the billings, murdered last week during a robbery at their home. they had been the parents to 16 children, some who were adopted, many had disabilities. a deal to remedy california's 26.3 billion dollar budget deficit could come as early as this weekend after legislators and governor schwarzenegger are said to have made huge progress during hours of closed door negotiations. they say a budget agreement could come as soon as tomorrow night. despite that optimistic outlook, california is still under a mountain of red ink. what is california's budget crisis doing to its city. well, we've asked the mayor of san diego, jerry sanders, to join us and talk about that. mayor, it's good to have you with us, look, we look at california as one of those

bellwether states. and within that bellwether state, or bellwether cities we're going through tough times. when sacramento has problems, how does it resonate in san diego. >> well, what happens with sacramento has problems, they refuse to address the tough issues, and make cut backs themselves they spread the name to cities and counties and san diego stands to lose well over 60 million dollars and to put it in perspective, we have already cut in the last year, 176 million dollars out of our budget to balance. now in the state, which is horribly mismanaged instead, we want more from you. in effect, our taxpayers are paying twice for the state of california. >> brian: and tell me about the budget negotiations and how they're going? >> they're going to take our gas tax money, we believe is constitutionally illegal, and they're going to take redevelopment money which they've already lost in cart and they're going to take property tax which they have a right to do once every ten years. >> brian: that doesn't sound

too good. that eliminates a lot of the money you're he counting on. >> well, it does and that's money that taxpayers in san diego pay for police and fire, parks and rec and libraries and we have no choice, but to cut parks and rec. >> brian: bottom line it for me, if you can't close the gap. what kind of things go away in san diego. >> 16 billion dollars means we'll cut between 6 and 700 employees, some will have to be police and fire and some library closures so the state is terribly impacted because the state and county can't control their spending. >> brian: there's talk of sending national guards troops down to the border, any thought on that. we haven't used national guard troops in san diego, we have a safe border and we have relied and talk toed administration about more fbi, d.e.a., more a.t.f. for the task forces that we have and i think that's probably the best way to handle that and we'd be

pleased to work with them on that plan. >> brian: mayor jerry sanders in san diego, thank you so much for joining us here in america's news room. >> thank you, brian. >> brian: when we come back, some closing thoughts about wallet walter cronkite.

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until i switched to verizon. you've got 3g all over. get america's largest 3g network and run the apps you want, where you want. now get $50 off any blackberry like the blackberry storm. >> you can't be involved in tv journalism without having an appreciation of those who came before and i vividly

remember watching walter cronkite as a young boy in west texas on our little black and white tv. he provided our window on the world during the tumultuous 60's, the moon landing the political assassinations of john f. kennedy, bobby kennedy, and martin luther king. watergate, uncle walter would tell us how it was. i was thrilled to meet him in washington. he was there with his wife betsy and i schemed with a still photographer to get the picture, something i rarely do. i told him, mr. cronkite, you know, i can die a happy man if i have a picture of you to hang on my wall. he stopped and smiled and said, well, you don't have to die for that. and we took that picture. i am told that in sweden, they called tv anchormen correspo correspond--

cronkites. i'm sure after all the years, a little of walter slipped into what i do and other anchors do and i am on this day honored to be considered a cronkite. that's all for me, but america's news role on. jamie colby in just a moment. and check out in depth coverage tomorrow of the 40th anniversary of man's walk on the moon, among other things, i'll be at the air and space museum here in washington. we want to thank you for watching the fox news channel, real journalism, fair and balanced and we leave you now with the last 30 seconds, you're seeing live pictures from outer space as the astronauts from endeavor go out to do some very complicated work and important mission, we're told, some sort of a back porch on the international space station, a back porch, they'll put a lot of special experiments to be interchanged in and out and i know that if walter cronkite were alive today. he would enjoy watching these pictures.

>> i'll see you soon, join me at the air and space museum on at the air and space museum on monday, bye-bye captioned by closed captioning services, inc. >> hi everyone, i'm jamie colby. >> i'm kelly wright. welcome to a brand new hour of america's news headquarters. and a search underway right now for the master mind of friday's deadly hotel bombings in indonesia. anti-terror officials saying a fugitive terrorist may be responsible for planning the blast that killed at least eight people and wounded more than 50 others. we'll tell you where investigators think he's hiding. and his alleged link to al-qaeda. >> plus, a shocking confession, police say a los angeles school teacher admits he killed his wife with his bare hands while on a cruise. why it's raising a red flag on cruise safety and security laws. >> rights now, the nation saying goodbye to icon of american

journalism, walter cronkite known as the most trusted man in america dead at the age 92. his long and distinguished career weaved through decades of history from world war ii to watergate to the iran hostage crisis, cronkite helped set the standard tore broadcast news as we know it today. laura ingle live in our news room with more details about this american icon. >> reporter: hey, kelly, you know, many considered cronkite uncle walter because of his reassuring tone and authority delivering news to the nation. to family members and friends he was a wonderful father, grandfather be an amazing man who gave incredible insight year after year. cronkite died last night of cerebral vascular disease with his family by his side and three days before the moon landing, he anchored 24 hours live over on television, oh, boy, when neil armstrong set the first foot on the moon. he's considered a leading

authority on the american space program and an asteroid named after him. and he was the first to break the devastating news to the nation. >> from dallas, texas the flash apparently official, president kennedy died at 1 p.m. central standard time. two o'clock eastern standard time. some 38 minutes ago. >> past presidents are remembering cronkite today, former president george h.w. bush called cronkite a pioneer in television journalism, a towering respected figure and president obama offered these words. for decades walter cronkite was the most trusted voice in america. his rich baritone reached millions of living rooms every night and in an industry of icons, walter set the standard by which all others have been judged. he was there through wars and riots, marches and milestones calmly telling us what we needed

to know and through it all he never lost the integrity he gained growing up in the heart lands. >> former of cbs colleagues have been expressing could be dole lenses to the family. interesting tidbits including the fact i love this one, that he loved music. specifically the grateful dead. cbs news, shaun mcmanus says he was a total fan and collected drums. and his daughter-in-law tell me that they will be holding private services in new york and also cbs expected to hold a large service for the veteran news man to about two weeks, kelly. >> he leaves us with so many great memories. i remember the day he announced the death of jfk and the moonwalk as well, what an incredible, incredible icon for american journalism, laura ingle bringing us up-to-date. >> thank you. >> connie chung will be joining

us. now to an of issue that. affects all of us, the health care, revamping health care and moving it through several committees in the past week and president obama is pushing both the house and senate to pass landmark legislation before they take off for their summer recess in august. despite the deadline though, the plan is facing hurdles and it turns out that is from both sides of the aisle. molly henneberg live in washington, tracking all the movements on all of the different proposals. molly, great to see ut. let me ask you first of all, what the president has to say today because there are a lot of critics who have said that the health care reform that he wants or it's perceived he wants is just too much big government. what does he have to say? >> hi, jamie, he says these are the same old arguments, the same old, quote, scare tactics that stopped health care reform in the past. take a listen to this. >> finally, opponents of health

reform with a warn it's a plat for socialized medicine with long lines of rationed care. that's not true. i don't believe that government can or should run health care. but i also don't think insurance companies should have free rein to do as they please. >> the president says any legislation must include the creation of an insurance exchange where people compare the benefits of a number of health care plans, including the government run public option. jamie. >> molly, let me ask you about what republicans are saying about the proposals that are formulating within these committees so far, are they objecting to anything specific? >> jamie, they say it is big government and the republican response to that, arizona senator john kyle said that the democrat's plan will lead to rationed care, quote, mountains of new debt and higher taxes. here is what he says. >> the president and some democrats insist we must rush this plan through, why? because the more americans know about it, the more they oppose

it. something this important needs to be done right, rather than done quickly. >> kyle says the way to reform health care is to stop medicare and medicaid fraud. stop frivolous lawsuits and enable small businesses to band together and buy health insurance like large corporations do, jamie. >> molly henneberg live in washington, it should be another busy week on this one, thanks, molly. >> what will it take for the president to get his own party and the republicans on board in health care reform. is it even possible? brad blakeman the assistant to president george w. bush and jason schechter, former spokesperson for former president bill clinton. will we see both of you? there they are. hi, guys. >> thanks so much for joining us, this is such a huge and really deeply important issue to a lot of americans who want to have the coverage and brad, i happen to notice today that 15

different states have 10% unemployment, which is a huge number. something i remember that president obama said eight, maybe nine, we're not ten in all of the states and so my question is the stimulus plan to provide jobs, will the health care plan provide jobs or is it possible that with the taxes that some of of the committees are talking about, that they will direct themselves as small business owners and we could end up seeing more unemployment? what do you think? >> well, look, this health care bill is not only going to balloon the deficit, but it's also going to create more taxes on every american. let's face it, the government controlled health care we've had over 40 years is broken. medicare and medicaid is rife with fraud, mismanagement and abuse and now they want to bring the same type of mismanagement and competence to every american. and they're saying no and the republicans aren't the problem here, it's the democrats, democrats are going to prevent

this president from getting a health care bill because they cannot with good conscience vote on something that they know is going to hurt every american in their district and in every district. >> jason, i've heard from some critics of the way things are going that it isn't a done deal yet. we really need to come up with a plan and then you have the congressional budget office that's been asked by a number of participants to estimate what it will actually cost. first, they came out and said that it will create a very significant deficit. then there was a cvo report that it's actually going to end up being a surplus, now, we know that certain elements of this condition be scored as it's called, like the health co-ops and such, how would the expedited schedule to get it passed so quickly, how will we know in the end, what it costs and whether we can afford it? >> and first, the momentum to pass health care reform is there, the five congressional committees working on health care legislation, three in deliberate bills to congress

this week and now, the american medical association, and the arp came out and enforced the house version of legislation. but what i would go back to really the long-term unsustainable economic costs versus the cost to the system. look at the cbo study. what they're talking about is costs incurred by the federal government. they're not looking at the overall savings, if we bring in more modernized health care system and everybody agrees that's necessary. look, health care costs are right now 16% of our gdp and expected to rise. health care premiums are rising three times faster than wages and we know that's unsustainable and we all need we need to find a solution to address those challenges. >> brad, the question is not only how much it costs, but where will the money go specifically and one of the concerns might end up being that some of the money from the federal government could end up going to states who use it for family planning as part that

have family planning could be abortion. how do you come to a bipartisan solution on this when you have of at least the conservatives who would say, no way? >> you don't. because you can't put a gun to our heads like they did with the stimulus bill and tell us things that we know are untrue. when they passed the stimulus, remember, that's the bill. 700 billion dollars that not one person read before they voted on it. the president promised unemployment would not raise over 8.9% and we know the national figure is past 10 and urban areas 14 or better unemployment in that state. and that's unacceptable. look, this president is not going to get the health care system he wants. the first thing that he should do is he wants support across the board, is reform medicare and medicaid. that's what should be done. cap costs, that's what should be done, but not a universal, socialized medicine system like they have in canada where you have substandard care or no care

at all. >> jason, can i ask you what kind of pressure there is on our elected representatives that have to figure this out when they go home. if they don't come to a decision, 2010 is a big year and they have to face their constituents and hear what they think about this and we know they heard a lot about the stimulus plan and what happens and how much pressure is there on them to maintain this democratic majority and vote for something, get it through and hopefully for them, get back into position? >> yeah, i think you're exactly right and actually i would say politically, i think it's more of a risk for conservative democrats to move away from health care reform this year. because, look it, there's a failure to pass health care reform, that's going to come down on the party at large and that's going to certainly come back to, to congressional democrats and that's exactly what happened in 1994 during the republican revolution, following the failure of health care reform in 1993. so, i think that you know, all democrats should take a very close look at this and realized implications if he we don't pass comprehensive health care reform

this year. >> jason and brad, thanks so much for being with us today. >> thank you. >> kelly. >> well, you can be sure that governors are watching as well the health care debate, but the national annual governors association meeting kicking off in biloxi, mississippi. the first time since 1935 the event has been held in that state and this year, there are some notable absences on the guest list. our jonathan serrie joins us live from the mississippi coast, the convention center in biloxi. jonathan, who is and who isn't showing up at the conference? >> hi, kelly, half the nation's governors are attending at last count. 16 democrats and nine republicans. among the notable g.o.p. no shows, south carolina mark sanford should come as no surprise after his high profile and highly publicized extramarital affair. he decided instead to take a trip with his family, but other noteables absences, include sarah palin of alaska, arnold

schwarzenegger of california, tim pawlenty of minnesota. the governors not attending this conference site a combination of scheduling conflicts or the need to focus on bugetary problems back in their home states. kelly. >> and what are the governors who are attending going to be focusing on? >> most likely state budget problems. you know, and particularly, at the state level, they're affected by a significant drop in sales tax and states are heavily dependent on sales taxes, consumer spending, way down. more so than many economists had predicted because of the recession and so, they're going to be trying to figure out ways to make ends meet with limited funding. >> and you know, you talk about the fact that this has not happened in that state since 1935, why biloxi, particularly, this time of year, when it's hotter than july most of the times there in the south? >> it is indeed. they have the opportunity to host it back in 2006, but of

course, that was just the year from hurricane katrina. the coastal region of mississippi was still devastated. they were in no shape to host a conference and so now, in 2009. they had the opportunity to showcase for the rest of the nation how far they've come, but then, what happens, you have the recession, and so an added reason why some governors may be staying home is the fear of the photo op. they don't want to be seen having fun in a sea side casino while their constituents are struggling at home. >> yeah, fun might be on the agenda, but there's a whole lot of work to do. thanks so much, jonathan serrie. >> indeed, my pleasure. >> all right. >> investigators are beginning to eyidea the victims of the bombing and four people killed in jakarta, the luxury hotel were foreigners, police are saying two from australia and others from new zealand and singapore. 15 people were wounded in the twin blasts, including eight americans and investigators say

a fugitive terrorist with ties to al-qaeda linked islamia may be responsible for the attacks. >> the u.s. military confirming an f-15 fighter jet crashed over central afghanistan, according to military spokesmen and killed two crew members earlier today. and government officials are not releasing the specific location of that crash, but the site just west of the capital kabul. a second aircraft flying next to the fighters did not report any enemy fire whatsoever. the military suspected mechanical problems caused the crash. this is the first american plane to go down in afghanistan in years. >> and the vatican is saying that pope benedict xvi is learning to cope with wearing a cast. doctors say the pope will have to stay in the cast for a month after undergoing surgery after breaking his right wrist. he fell in a chalet while on vacation in the italian alps.

that didn't happen yesterday, but the pontiff will stick to appearances and the vatican says the toughest part for the pope, giving up writing by hand which he intended to do during his vacation. vacation. >> all right. it is summertime and sweltering heat is blanketing the southwest this weekend. excessive heat warnings are in effect for parts of arizona, nevada, nevada and california. and in phoenix, finding some relief in the shade is crucial for these firefighters trying to cool off. just imagine if you were wearing all the heavy gear when the temperature hits triple digits and they set up the relief center you're looking at. letting the fire crews recuperate from the heat. how long will the heatwave hang around? domenica davis is live to explain. >> hi, kelly, he's going to stick around today and tomorrow and then just up a little bit by monday, but these are the temperatures we're going to be looking at in the meantime. almost the hundred degree mark,

the southwest, expected high today, 113 in vegas, phoenix, 114 and 107 in tucson where you have the purples, looking at heat warnings that will stay into effect until eight o'clock locale time and pick up again through sunday and i think we'll continue to see some sort of heat advisory through much of the week. now, we don't have much going on on the radar, you can see the temperatures are much cooler along the coast and scattered showers coming from the gulf, but what we're looking at this afternoon is the chance of some dry thunderstorms to pop up. that means no rain, but plenty of lightning and the problem with that is it could fuel some of the fires because they have a lot of dry vegetation around here and that will be an increasing problem not only the heat, but a chance to see some of those fires spread as well. so, we will keep checking it out throughout the day. kelly. >> well, the rain can be a blessing and a curse, all right, thank you. >> astronauts on the shuttle endeavour are stepping out for their first space walk today.

it's no unusual saturday though. we'll take a look at the mission, what they're trying to accomplish and the walk and also look back to a man who had a huge impact on our space program, the passing of walter cronkite has a special meaning this weekend. we'll explain next. so what do you think? 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.

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olay professional pro-x. potent. proven. professional. >> just moments ago. the astronauts on the shuttle endeavour ventured out for the first space walk of their mission, they're preparing to install a porch used for science experiments in a huge lab on the international space station. now, the timing of today's space walk has very special meaning. 40 years ago this weekend, a man landed on the moon for the very first time and bringing it to the nation's living rooms was

walter cronkite, he kept everyone on the edge of their seats with his coverage of apollo 11. so joining me now is tom jones, a former astronaut and the author of "planetology", a fox news contributor. always good to see you as always and i always get excited when i talk to you because we talked about your experiences in space. but today we're speaking about friends of yours, i understand, astronaut david wolfe and timothy of of cog land. what they're doing with today's space walk. >> sure, dave and tim are outside for the big job of the mission, which is to attach the japanese exposed facility, the front experiment porch for the japanese lab. so they're preparing that porch to be lifted out of the shuttle's cargo bay and it will be swung over on the shuttle's station's robot arm and unhitching it from the shuttle and getting ready for the

connection to be made to the space station and a maintenance task to prepare for future experiments to be mounted along with a lot of spare equipment brought up on this mission and dave, is my astronaut classmate and tim is a long time friend from the astronaut corps. >> kelly: there's been concern expressed by an unusually large amount of foam breaking often did he ever's fuel tank during lift-off. some of the pieces dinged the shuttle. how is the endeavor looking for returning home when it's done with its mission. >> that was a concern during lift-off and ascent. but the inspection down by space station astronauts show there are scuff marks on the tile and no concerns and looks like the heat shield is in good shape for return. that's a relief. nasa has to get to the bottom why more foam came off with this tank in particular. maybe it was the fact that it

was filled up six times before the shuttle lifted off thanks to the weather and technical problems they had in the last month. >> what can you tell me about the future of nasa quickly before we get thoo the 40th anniversary of of the moonwalk, the future, how did it look in terms of capturing that magic of the moonwalk, the first moon landing? >> grabbing national attention, and national focus on exploration is the big issue this summer, with the obama administration appointing a special panel led by norm augustine to decide on the future direction of human space flight and then the white house will endorse one of the options that that panel offers up in september. and so that's going to be the future direction, the future guidance and the future momentum behind where we go in the next ten years. 40 years out. we should be far, far in advance of where we are today. and marking time in some respects. >> kelly: not to cut you off. but in retrospect let's listen to what walter cronkite had to say on that eventful day during apollo 11's first landing on the

moon. >> well, armstrong is on the moon. neil armstrong. 38-year-old american standing on the surface of the moon. >> oh, boy, oh, boy, he was giddy as you can see. i remember watching that and you remember watching that as people were glued to the sets. how does that effect you, seeing the man we're celebrating today. the american icon of journalism, walter cronkite on the 40th anniversary weekend of the first landing on the moon? >> i'll certainly miss walter cronkite. he was my hero, my mentor, if you will, giving me the latest information on the space program as a kid as i was growing up and how he brought the americans together to follow the space program. i think i got the sense of the weightiness and experience of the endeavor and part of what caused me to pursue a career. if walter thought that was

important, it might be an important job i might dream of doing that day and i watched that first walk with him 40 years ago this mo monday. walter often wanted to go into space, and expressed that often and i wish he had a chance to go on space shuttle and would have liked to have been with him to see the wonder in his eyes. >> kelly: thank you for your comments about walter cronkite as well as what's going on in space. tom jones, thank you, sir. >> jamie: president obama's list of czars is a long one already. when you add up the people reporting to the president, it is a big number, but is obama's platoon of advisors normal for a modern day president. our wendell goler has this report from washington. >> the president gave the czars responsibility that might have been delivered among cabinet secretaries in past administrations. >> she handled budget matters for federal health care programs. >> not to get bogged down by bureaucracy. >> to cut through the red tape. >> and he promised it.

>> you have my full support. but when you add 15 cabinet members to policy and political advisors and chief of staff and throw in military advisors and a couple dozen selected other officials you get a lot of people who have oval office walk in rights. >> i think the number is probably getting closer to a hundred. >> not what you'd see in most fortune 500 companies according to james bailey at george washington university. >> most ceo's have about seven to maybe ten people who are reporting to them. we're looking at somebody maybe the number is pushing a hundred and can they reasonably and responsibly stay up with all of the elements that are required to execute their job responsibly? >> yet, all modern presidents had more than a handful of people reporting to them. jimmy carter personally controlled access to the white house's tennis court. the first president bush big on delegating responsibility by most had the fewest number of czars and his son called the decider, the second highest number. and president obama's nearly

three dozen czars don't have oval office of walk in rights. >> the question is how many people report to him? and my guess far fewer, he does have a chief of staff. >> in fact, a vast majority of president obama's czars technically report to one of his cabinet secretaries or to vice-president biden which raises another question, according to thompson university presidential scholar. >> who's minding all the czars? is there a template for how they produce information and how they then provide it to the white house? >> even if the president is able to manage all of his czars efficiently, some of his critics are frustrated because the czars don't have to answer to congress. it's not surprising that some of the critics are in conference as we'll see in the next report. in washington, wendell goler, fox news. >> kelly: we're keening your attention on something else, twin blasts ripping through luxury hotels in indonesia and police say they were eerily similar to bombings in bali in

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>> it's the bottom of the hour and time now for the top of the news. the death of news icon walter cronkite is inspiring a tribute from president obama, the certain voice in an uncertain world. walter cronkite was 92 years old. >> they're conducting a space walk outside the international space station and there they are aattaching a new platform for science experience and the u.s. military reporting one of the f-15 fighters jets crashed in afghanistan and the aircraft going down outside of kabul, killing two crew members. >> indonesia investigators are saying now that an al-qaeda linked terrorist group may have been behind the bombings at two luxury hotels. yesterday's blast killing at least eight people, considering

about 50 others, eight of the injured were americans. investigators say the attacks were eerily similar to bombings that killed more than 200 people in bali back in 2002. rita ninen is live in jakarta, rina, do police who who was behind the attack. >> reporter: they're saying that all fingers are pointing to a malaysian manes, linked to islamiyah, he was part of the break away group and the indication is that he could likely be behind it. fox news has learned that among the suicide bombers involved in these attacks was possibly a female suicide bomber also implicated and police aren't oval confirming that be, excuse me, he was behind it, and they believe he is the likely suspect. we spoke to the head of marriott international, this man is in charge of security for all of the hotels across the world, and

he said there were still two big questions the day after the attack that people are trying to grapple with. number one, how was the attack carried out. someone from the inside involved and exactly who was behind it. those are the details. the questions they're trying to piece together right now. investigators are still in the process of identifying some remains of the bodies that were so badly blown apart during these attacks, jamie. >> jamie: all right, rina ninen on the latest in the investigation in jakarta, thank you very much. >> kelly: well, construction shooting up in june. it's the most positive housing report in a long time. seven months to go exact. is the news raising homes, a recovery in the housing market? what is behind the numbers and are we really, really recovering from the housing collapse. joining us now is the ceo of d.c. nelson asset management. thank you for joining us this day, david. look, you know, let's appreciate good news from wherever and whfr we get it, particularly the

housing market. is it enough to signal a trend of encouraging news on the housing market front? >> you know, it's a feel-good number and it makes us feel better, but the rise in home construction is a result of lower prices and 10% tax benefit that's part of the stimulus package. but it's not going to do anything to halt foreign home prices. and to have a real recovery in the housing market. we've got to see home prices stabilize and in fact rise and i don't think we'll see that anytime soon. >> kelly: you know, because there are still foreclosures out there and the jobless rate is going to continue. as that continues there may be more foreclosures likely to hit the market and what will that do to this growing trend and building trend that we're now seeing. >> aur hitting the nail on the head. as a matter of fact, home sales have stabilized and we're seeing in the market, increasing number of homes sold are classified as distressed sales by motivated sellers and like you said,

unemployment is still rising in this country and we've got deteriorating consumer credit trends, just ask any of your viewers who have recently had the credit limits cut by the credit card company and in fact, had their credit interest rates hiked for doing nothing wrong, so there are still problems out there. >> kelly: yeah, neil, let me go to the core of what's happening. we're getting a quote that i'm reading here from rebecca blank, undersecretary of commerce for economic affairs and she basically, i think, would agree with you, she's saying, quote, there's still a long way to go before one wants to declare anything that begins to look like a strong recovery or success. well, having said that, why all the news about the growing spurt or the building spurt that we're now seeing in the housing market. should we be more cautiously optimistic. >> i guess cautiously optimistic is the right terminology. look, a year ago, we were talking about, you know, possible collapse of the financial system. now, armageddon trade may be off, but we still have a very,

very vicious recession in this countries and while at some point in time the housing market will in fact get better, i could certainly tell you, it's not going this year. >> you know, david, i hate that term cautiously optimistic. >> so do i. >> kelly: bottom line, people want to be hopeful what is going to happen with their money and to avoid foreclosure. what's the bottom line here? when do we see a trend in housing? when will the prices come back so that people can feel secure about investing in one of the largest investments they'll ever make? >> it's really simple. when supply comes sufficiently down. and until that happens, as a matter of fact, the rise in home construction if any increases the supply, that's not going to help pricing. it's going to be some time. i can't tell you when. it's not immediate, perhaps a year, certainly, certainly at least a year out. that would be the best i could hope for. >> kelly: david, a the lot of people-- >> i've said this before we have

a mentality in america, a lot of people want it right now. it took a while to get into this mess, it will take a while to get out. david, thank you for joining us. >> thank you. >> kelly: jamie. >> jamie: kelly, truly a horrible crime on the high seas. take a look at a picture of school teacher led from a luxury cruiseship, the fbi claiming he later admitted to him he killed his wife inside their cabin with his bare hands, he did plead not guilty. shirley mcgill's death could have a dramatic affect on the cruise line industry. the industry's chief lobbying negotiation is backing legislation now that would tighten security and safety standards for all the ships you might go on operating in u.s. ports. will these new regulations really change anything? former prosecutor joanna greenwald and defense attorney david schwartz joining me now, good to see both of you. >> thank you. >> david, you first, i was very

surprised initially. i hadn't thought about it that the cruise industry is not regulated. how many accidents do you think did unreported and do you think it's time that we clamp down? >> of course, it's time that we clamp down. i think we've had hundreds of unreported incidents. it's so great that the industry is backing this bill. how dare they? they have unreported crimes going back years, this is, they should have been charged with crimes, tampering with evidence, obstruction of justice, accessory after the fact. this is ridiculous. they have an agenda. they spends millions of dollars in lobbying a year and the catch is that they can't be sued for punitive damages, even their conduct is so outrageous and that's the piece of the bill we're not talking about. >> jamie: let's tell our audience about the mcgill case, really, this was pushed by a dad from phoenix. >> right. >> jamie: whose daughter vanished in 2004 and his name is kendell carver. >> right. >> jamie: his daughter marion vanished on a ship and it wasn't reported for about five weeks

till a private detective came and asked questions. they packed up her stuff, they said nothing. the industry may be supporting this bill, joanna, but do you think it's out of the goodness of their heart? what's in it for them? >> i don't think anything is out of the goodness of their heart. let's all remember, this is about money, this is about being sued and i actually think that david hit the nail on the head, actually, when he talked about the piece of legislation we're not talking about, they'll back legislation to go after people whose commits crimes on their boat, but you cannot sue them for punitive damages. so what is that? there's no change. and they also have a major problem, to get straight to the point of jurisdictional issues which have been brought up again and again regarding crews lines when they're out in international waters and crimes that they committed. >> jamie: and that would would not cover, this ship must come in or out of a u.s. port. explain to the viewers the punitive damages are that, because i think it's interesting, senator carey is

proposing the cruise vessel safety act and on board they will have to have an onboard investigators, keep logs of incidents, maybe we'll have more than are reported, but for the cruise industry they wouldn't have to pay the punitive damages, they've made that a condition of their lobbying support. what are punitive damages? >> the only damages that they would be paying are the actual damages, the damages where they estimate how much this person is worth, how much their life is worth working-wise. punitive damages, when the conduct is so outrageous, when the conduct is of such a nature that the company must be punished, the litigant is entitled to three times-- >> you want that. >> you want that. you want that. the litigant is entitled to three times the damages and-- >> and if-- >> joanna if you're faulting the cruise industry for something something in it for them they wouldn't have to pay the damages they consider exorbitant. certainly, any family can't put a price on a loved one.

do you not think though it's time for more legislation with respect to ships that come in and out of u.s. ports and what in international waters? will we ever be able to do anything where they're concerned? >> on two fronts, you have two questions. first, as far as federal legislation and watching boats coming in and out of u.s. ports, i think it's going to be very, very difficult as far as regulation and where they'll be gotten, if you will, is through the civil-- through civil suits and having punitive damages are extremely important because you do want them to feel punished and trouble which david is talking about, three times the amount of damages so they don't do this. when you have international crimes, just like internet crimes, jurisdiction is very, very hard to establish and you'll have a rough time gaining any jurisdiction on people who commit crimes on their boats and the civil realm is where they're going to get them. and hit them where it hurts, where money is at and get a sea side person on board, and also trained in sexual harassment, sex crimes, that's all going to

cost money, are they going to do that. >> jamie: all of the crimes will be tracked. david, i'm out of time. >> okay. >> jamie: i thank you both for being with us in this mcgill case of this school teacher that fbi investigators say he killed his wife with his own hands. and is it time for more rules and regulation, thanks to both of you. >> thank you. >> kelly: indeed, he was an american icon in journalism and also known as a gentleman, a man who was pioneer and a trail blazer, i'm talking about walter cronkite, dead at age 92, and we are going to talk to one of his colleagues, connie chung, coming up next. you're in the right place. only progressive gives you the option to name your price. here. a price gun? mm-hmm. so, i tell you what i want to pay. and we build a policy to fit your budget. that's cool. uh... [ gun beeps ] [ laughs ] i feel so empowered.

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u-turn. the driver hit the gas though instead of the break and sent the oversized hot dog crashing through the garage of one family's home. >> called the 911 i thought it was a drunk driver. the foundation cracks right here and it's all messed up right here. and you see, part of this. this is part of tthe bun right . >> and no one was injured at the home and the weiner mobile will need some repairs and it will be fixed. >> all right, a group of aid workers in california stand accused of stealing from the very people they were supposed to be helping. money and supplies meant better for lives for people ravaged by civil war. a shocking example of greed and perhaps one of the last places would you expect it to happen. casey stegall live in los angeles with details. what's up with the story? >> well, kelly, this is a very

disturbing story. world vision international, headquartered in southern california and provides humanitarian relief to more than 100 countries across the globe and liberia has been a priority for the christian organization, an african nation in unrest more than 15 years, the area was rocked by a civil war that killed more than 250,000 people and displaced millions and wiped out much of the of the country's infrastructure. world vision want today help get that country tri back on track and pumped in roughly 1.4 million u.s. taxpayer dollars to help rebuild the region and bring in much needed supplies. >> average 92 cents on each doll makes it overseas into programs and that's a tremendous average and these are organizations who have signed off and certified that they have systems in place to ensure that their resources are going to the right place.

>> here is where it gets troubling. a recent audit by world bishops investigators discovered a fraction of the cash was only making it to the right people. the other 91% allegedly stolen. three former employees have been accused of selling the relief supplies for their own profits and also, using the construction materials to renovate their own lavish homes in liberia instead of rebuilding more torn villages. all three were arrested and now face a long list of federal charges, world vision in fact, changing its policies to make sure it doesn't happen again. >> we go back out to the field and check to ensure that the food was delivered to the people that the documents say it was delivered to. we've enhanced our background checks. we ensure now that everybody working on the united states government grant has been through a purpose built training course. >> now, world vision tells us

it's an isolated incident and that it won't happen again. kelly back to you in new york. >> kelly: casey, i hope they can put it behind them and move forward with their worthy endeavors, thank you, sir. >> jamie: a former cbs anchor joining us next with her insight into a fellow alum. walter cronkite. the world renowned journalist walked americans through so many difficult and historic times. connie chung, moments away with her take on the legendary news man. ñ?k

. >> kelly: foirm former colleagues of walter cronkite paying tribute to the news man today. >> jamie: he died at age 92. his long and prestigious career paved the way for fellow journallingists, maury saper calling him the father of

television news and former news anchor connie chung, worked for cbs evening news and walter cronkite in the early '70s, on the phone with us, what are your thoughts to understand? >> thank you, jamie, i can't tell you how sad i am because he really was my role model, my idol and albeit there were no women at the time to be a role model for me, he was the epitome of the news person anyway, so, i mean, it didn't matter to me that he was male. he was the-- he was the one that we watched just like all other families every single night, we gathered together and have dinner and then sit down and watched walter cronkite deliver us the news. i have to tell you that he was-- he was such a nice man. now, you would think that a man who was a legendary, icon, would

be self-important, but he was not. he was never that way. he was filled with humility and self-deprecating humor. i can tell you that anytime he came down to washington, i was working for the washington bureau, a correspondent in early and mid 70's and he would come down to anchor from washington sometimes, so everybody would bring in their families to say hell he low and watch him and he would walk around, shake everyone's hand and be so nice to everyone and i watched him carefully because later on when i became-- i sat in his chair, became a co-anchor albeit half of his chair, he called me up because i always asked him for advice so he called me up and congratulated me and gave me one bit of advice and that was to be yourself and you know, i

needed-- a that's what he did, he wasn't a manufactured personality. walter cronkite was uncle walter and himself and that's why i followed his lead. i tried honestly to be just like walter. >> kelly: connie, that says a lot about your admiration and love for walter cronkite, a man, a scholar, a gentleman and a trail blazer. >> you know, but one of the things, jamie, he wasn't just a, you know, a figure head. he was a very, very good journalist. he was the only, first and only in the beginning to be named managing editor in addition to anchorman and he took that job very seriously. if i had a report as a correspondent, he looked over my report, questioned it. >> jamie: what a benefit to a young journalist, having the ability to walk alongside

someone like walter cronkite. connie, we thank you for calling in today and letting us talk to you about someone we oohed meyer so much. there will never be another walter cronkite. >> thank you so much. >> jamie: thank you. >> jamie: take care connie. >> thank you, kelly and jamie. >> kelly: you're welcome and encouraging comments about walter cronkite and of course we all remember him and i remember watching him as a kid and he is one of the reasons i'm a journalist today. >> jamie: absolutely, so many viewers writing in how much they loved him. and thanks for being with us today. we appreciate it. keep it on coverage on fox throughout the day. many stories we're following for many stories we're following for you. captioned by closed captioning services, inc. 2 for $20. it's real food at the right price, and it's only at applebee's. it's a whole new neighborhood. a woohoo!

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