death just as we continue to be fascinated with her life. and that does it for us tonight, as always, thank you for being with us, and have a great weekend, and we'll see you back here monday night, 9:00 eastern. . >> i want to make clear that in my choice of your its i gave the impression that i was maligning the cambridge police department were sgt crowley specifically. i could have calibrated those words differently.

greta: did the president do enough to put that fire storm out? first, rush limbaugh. we went to his studio for an interview. tonight, he goes on the record about sarah palin's resignation. first, rush limbaugh on the health-care battle. do you have any problem with members of congress voting on a bill like this and not reading it page by page? >> do i have a problem with it? greta: how do you vote without knowing what you are voting on? >> if you are democrat, you vote for because rahm emanuel and nancy pelosi are threatening you. henry waxman was being asked some questions by republicans on the panel.

he said, you cannot expect me to know everything in this. yes, we can expect you to. you are the ones putting it together. there are people reading it and we are finding out what is in it and people are being told. we have reached a point here where washington has become this massive magnet, the center of the tension in government and just the presence of people there makes them better, smarter, the details don't count. they are smart, we are its, we are incapable of taking care of ourselves or making a proper decision to do the right thing in life. the details, obama's followers don't know the details. it is not about health care, this is an attempt to control freedom. people to not want to accept that we would ever elect someone that has that agenda. greta: has theris anything that

president obama has done that haskins impressed you? >> no, i a-- that has impressed? >> no, he is a wiener. he blames bush. there was a piece in "the new york times," they supposedly fact checked him. none of this is personal. he's my president, too. i hope td very publicly that you hope that he would fail. greta: the dnc ran an advertisement that has shown you saying this.

>> he already has. has he done anything that you can see is working? greta: i am hoping. i thought that the better idea, when we need to put money into the system, was to get rid of some of the taxes on people's weekly in comes. -- incomes. i thought that was a faster infusion of cash into the system. they should have more take-home pay. >> they have less. greta: they voted on a stimulus packge instead. i did not think it was fast or in need but i hope it is successful. >> it won't, it cannot possibly succeed. this is my point earlier. greta: i will confess that it has not given -- >> they are now predicting that

unemployment will go double digit. greta: it is worse in michigan. >> in these blue states, we are going straight down in the wrong direction. this is not by accident. these people are not competent, their ideas did not work. we don't need to turn this country into a banana republic. greta: that 10% number does not include those who have not given up. more than anything else, i want the stimulus program to work because i want those people employed but i don't see it there right now. it is not convincing me. >> this is interesting. i know it will not work. i don't have time for hope.

hope is an excuse for doing nothing. greta: it is already in effect. >> 2010 is coming up and most of the money has not been spent. greta:@@ only 10% has. i wish that they had rented ad . >> you give them away too much benefit of the doubt. this was done to stimulate the democratic party. this was done to stimulate state governments. this was done to stimulate the washington power. it was a sold a bill of goods, c untruth,ap and trade is, health care. -- it was a sold a bill of goods, anuntrue, cap and

trade is. he has already failed. he has failed but not to the way i hoped. he has failed the american people. he has done nothing for them that they thought was going to happen. they don't have jobs, they don't have rising incomes. we don't have anything positive happening. i wanted him to fail in implementing this stimulus because i knew this would happen. greta: you are rooting for failure, i want success but i don't think we will get it because the numbers. >> i am rottinoting for american success. it is now six months later, look at what obama is doing.

this is a disaster. this is a disaster for individual americans. i did not want this to happen. i want everyone to succeed. i want everyone to be prosperous. greta: me, too. >> this is not how you do it. how did we come out of the '82 recession? we cut tax rates. we cut capital gains. we got out of people possib's w. obama has contempt for the american people, he wants the government to be the focus. he has a deep resentment for the rich. he has failed.

the sooner people admit this, the sooner we do something about it. only 10% of the stimulus is spent. let's assume that the republican party wins back the house. if this happens, we can cancel the rest of his idea. he might veto any bill that would cancel the rest of the spendial on the stimulus and say turn it into a tax-cut. elections have consequences. we got what we voted for or what the majority voted for. greta: what does it mean if the health care does not pass? if he cannot even get enough democrats? what does it mean to him in the big picture? >> well, i would have to

probably side with jim demint, this is the centerpiece. if he does not get this this time, you try for next year or later in this term. they are going to keep trying for this. i think it is wrong for people on our side to start getting giddy about polls showing most people opposing this and so forth because these people never give up, they never go away, they will not stop until they get this done. that is why they have to constantly be politically defeated. that is what future elections are all about. i think obama has a problem with criticism. i think he has led a charmed life. he thinks that he is above criticism. if this happens, it will just fire them up even more.

rahm emanuel is going to send more dead fish to more democrats. this is a constant battle with these people who want to take over the country for themselves. greta: up next, rush says that there is a battle raging inside the republican party. could a third party becoming? the future of sarah palin and much more. did president obama apologize? he changes his tune after he said that to the cambridge police acted stupidly for arresting a harvard professor. is the firestorm still growing? [ female announcer ] introducing a revolution in stain removal. new tide stain release. it's an advanced in-wash booster that works with your detergent to help remove the toughest stains the first time. new tide stain release. available in duo pack, liquid or powder.

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accu-chek® aviva. born in the u.s.a. greta: more with rush limbaugh about the future of the republican party.

why don't they like you? >> there is a battle going on in the republican party for who will lead it and where its identity will go. penn the friction in the republican party is about social issues or abortion. the country club, blue blood rockefeller types, and the inside the beltway conservative media are just embarrassed as they can be to be in the same party with a bunch of billy bob's, so forth from what they consider to be the stakeicks. i have been encountered by the parties. i have been poked in the chest and they asked me about this. they are embarrassed to go to a convention with the christians. their 24 million votes and if you want to let the democrats

have them, they will not win a thing. they don't like conservatives. the new york, washington, boston quarter of the washington party don't like conservatives. they didn't really like reagan, they tolerated him. they like bill wholthe whole dca leadin-- the elitism and power. i am not an elite, i am not a rockefeller type. i am considered unsophisticated and sort of, we don't wanna be associated with rush limbaugh. the republican party is going

through these battles right now andx palin is out there excitig people and people are talking about a third party. i will tell you how bad the republican party is, when republicans, when our opinion leaders say that colin powell is the model republican, is when i say you should leave the party and formed the colin powell party. i don't know how you have a man who campaigned for the democratic candidate, endorsed the democratic candidate, did so at a time to destroy john mccain. how can a man who went all the way in the bank for the democratic candidate is the ideal republican? how can it be said that that is where we build our base? show me the book in the library of great moderates in american history. moderates don't have an opinion until where they decide where

the consensus is. if that is the future of the republican party, that is where there's been talk of a third- party. let colin powell and whoever else, let them lead the republican party -- leave the republican party. i don't know with what he agrees or disagrees with on a bomb as policies. -- on obama's policies. greta: next, russia says that someone is terrified of sarah palin and is trying to -- rush says that someone is terrified of sarah palin and is trying to destroy her. there is a firestorm after president obama said that the cambridge police acted stupidly

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greta: continuing with rush limbaugh, sarah palin and much more. who is your candidate? >> too ear and unrealistic for people to think we should have won.

in 2001, six months after bush was inaugurated, did the democrats have a new leader? they were in disarray thinking an election had been stolen from them. who was the leader, who was riling the democrats? howard dean was out there doing things. it was assumed that hillary was the next. greta: from an ideology point of view, who do you think is the smartest or best candidate in your mind now? >> well, i don't want to answer that. i am looking right now at who can win and i can look at who excited crowds. the state-run media and the democratic party will go a long way of telling us who they are most afraid of. i don't think they are afraid of mike huckabee because they

never talk about them, they are not afraid of mitt romney, low ilalthough if he runs again they will go after his religion. they are trying to destroy a sarah palin. if they are not worried about sarah palin, why do this? -- they are not afraid of mitt romney, although if he runs again they will go after his religion. it is not hard to understand why, sarah palin had the largest crowds, the most enthusiasm, people were fired up. in some cases, even more than obama rallies. the obama rally is, they were just showing of to be part of the story. sarah palin was excited people on substance. greta: she quit. >> that is a matter. -- that does not matter.

regardless of the plans, whether she wants money, whatever, her opponents are down here in the lower 48. they are making speeches every day. she is up in alaska and she cannot compete. also, i think she told the truth that the ethics stuff was getting in the way of for governinher governing -- of for governiher governing. i don't know what her aspirations are. i have never matter. -- met her. i care about the united states of america. i care about our country.

i want our exception was in to be celebrated. i don't care if they are democrats or republicans, if they are conservative and can do the job, i support them. we are a great country at risk in a very dangerous world. we are now also under daily assault. the economy is under daily assault by its own government. this is threatening. i never thought i would see this in my lifetime. i would never expect to see purposeful policies that would harm people. that is what we have. no sane person would ever continue a program like this stimulus plan. this will destroy jobs.

this is so nonsensical, it is so in violation of the economic science. greta: your show is growing, it gains more listeners all the time. longevity is so amazing, what is the secret? what do you think is the recipe? >> when i started in 1988, i was it. when i started my national radio show, there was only cnn and "the washington post," "the n.y. times." i got a head start on everyone. i made a deepir connection with the audience. there was a whole bunch of americans who were conservatives and never saw their viewpoint reflected in mainstream media news coverage. here comes to me.

i am not creating, i am simply validating what people already believe. i have a deep amount of loyalty with this audience. it has been 21 years on august 1st but when i sit down at the microphone, my expectations of myself -- i do everything for the audience. everything i do is for the show. i will never fall again. what happened yesterday doesn't count for 10 years ago doesn't count. if he would ask me when i talked yesterday, i would give you a broad paintbrush, specifics, i do not know. it is a respect for the audience, respect for their

intelligence, a deeper appropriatioappreciation. my parents came out of the great depression and they did not think that i would be successful. i did not go to college. the audience has stuck with me for all of these years. why do they do this? it is a good show, it is positive. people don't want to hear every day that things are going to fall apart. they want to be motivated. they want their positive thoughts validated. they don't want to hear every day where everything is going to hell. that is what its ratings on television. i've shown to get ratings on radio being positive and respect in the audience and being inspiring and motivational. i just try to share as much of my life with everyone because i get turned on.

greta: president obama said police acted stupidly when they arrested a harvard professor. could a meeting becoming between the professor, the president, and the police officer? dick morris goes on the record, could the news be making the white house sweating bullets -- sweat bullets? a lot goes through your mind after an accident. but with liberty mutual, insurance issues won't, because we offer unlimited rental coverage, new car replacement, and accident forgiveness to help ease your mind. and that's our policy. liberty mutual insurance.

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his neighbor called police. the police confronted him and the case accused them of racial profiling. the cambridge police in union announced -- to cambridge police union announced that it is standing firmly behind the arresting officer. >> we expressed our support for sergeant crowley, clearing him of any wrongdoing. on behalf of the unions and the members, let me assure everyone that the officers of the cambridge police department are committed to the professional and non discriminatory enforcement of the law. they make hundreds of decisions each week and thousands of decisions each year in the preservation of the peace. race does not play a role of any kind in that decision making and played no role in the decision making in this case. >> president obama said that the actions of the cpd were stupid.

the fact of this case suggest that the president used the right adjective but directed it to the wrong body. >> i think that the president should make an apology to all law enforcement personnel. >> our opinion is that we want all of the facts to be presented. the present and not have all of them. -- the president did not have all of them. greta: president obama tried to put out the fire. >> i just had a conversation with sergeant jim crowley, the officer involved. i have to tell you that as i said yesterday, my impression of him was that he was an outstanding police officer and a good man and that was confirmed in a phone conversation. i told him that.

the closbecause this has been rg up, i want to make clear that in my choice of words, unfortunately i gave an impression that i was maligning the cambridge police department or sgt crowley specifically. i could have caliber those words differently and i told this to the sergeant. -- i could have calibrated those words differently. there was a overreaction in pulling professor gates out of his home to the station. i continue to believe based on what i heard that professor gates probably overreacted. the fact that this has become

such a big issue is indicative of the fact that race is still a troubling aspect of our society, whether i were a black or a white. i think that the comments on this and hopefully contributing to constructive as opposed to - understandings about the issue -- negative understandings of the issue is part of my portfolio. at the end of the conversation, there was discussion about he and i and professor gates having a beer in the white house. i don't know if this is scheduled yet. [laughter] greta: joining us live is a man that you know very well, ted

williams, he is a former homicide detective. he has actually made arrests. >> as i look at this, there were three wrongs. if you look at professor gates, he comes home. first of all, let me say this, i know what racism is, i know it racial profiling and it is not in this case. sgt crowley comes to the scene because he has been called there because of someone acting suspicious. what does he do? he asks the individual to come out. the individual says, know i'm not coming out. so, they enter into a back and forth. professor gates goes and gets his identification. sergeant crawlcrowley enters into the home.

what is wrong with that? in this instance, this officer did not know who professor gates was. he had every right to follow him in. there was reasonable suspicion that something had happened. then we get to the part where there is back and forth which leads to where sergeant crowley arrests professor dates. that was wrong. i don't believe there was enough justification for an arrest. the second wrong was that the president got involved. i don't believe this was a case and a scenario where the president should have gotten involved. greta: i think what is troubling is that to be president got involved. >> president obama can walk this

back. he would not say anything. greta: i would like to hear the 911 call and i would like to hear the transmission calls among the police and i would like to know what the police officers on the scene said and what the person who made a phone call has to say. i would like to know who said what, especially in such an important issue. racism is a terrible thing and being falsely accused of racism is equally terrible. >> i can tell you what was said, prof. gates said that at one stage or another, the officer said, trying to identify who he was. he was not responding to professor gates. this is what professor gates said, "why are you not responding to me?

is this because you are a white officer and i am a black man?" professor davis brought racism into this matter. -- professor in ca gates brought racism into this matter. this was not a case of racism. greta: it will be interesting to see as we get more facts. hopefully that will give us more information. this has caused quite a firestorm. ted, nice to see. greta: up next, dick morris goes on the record. it looks like john stewart is cronkite. ? he will find out.

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greta: let's go to our new york newsroom for the headlines. >> for the white house says that president obama intends to plug away at his health care plan even as congress goes on vacation. his plan faces stiff opposition, some from his own party. democratic leaders have design

-- have devised a way to cut the cost. it is not likely that congress can deliver a bill before the august break. the number of failed u.s. banks are continuing to grow. regulators revealed they have shut down six banks in georgia and one in upstate new york. so far, 64 federally-insured banks have failed. the latest to make the list have assets totaling more than $5 billion, most of which will be assumed by other banks. greta: something just happened to president obama for the very first time and he is not wild about it. president obama's job approval ratings dropped below 50% for the first time. 49% of likely voters approved of him, 51% disapprove put the 83% democrats support him. what do these numbers mean for

the president? dick morris joins us. first of all, i guess the thing that strikes me is how does this compare to other presidents at this point in their ministrations? -- of their administration-- in? >> this is kind of low. clinton was lower at this point. that is ok because he got elected with 42% of the vote. it did not matter that he was losing approval before this because most of the people were mccain supporters. he got 52% of the vote and if his job approval rating fell, those for all mccain voters. now that it has dropped below

52, he is pleading votes. those are supporters who are deciding that they don't approve of the job he's doing. that is very serious. greta: 83% of the democrats approve of him. is that a number that he is happy with? >> that is low. to have almost one in four voters in your own party say you disapprove of those job your doing. these polls have an option of "somewhat approve." obama has always been more popular than the programs he proposes. people like him more than they like his policies. now, he's taking his own reputation and putting it behind this health care proposal. essentially, what he's doing, he is really lowering his approval

rating because he is saying this is what he is about. the irony is that the more he pushes for health care, the more he brings his ratings down, the more harm he does health care. the only thing that the senators and congressmen early care about is what is the job approval of the president who they are sacrificing to support? if they have a president in the low 40's with a high 30's of job approval, they are out by themselves. if the president is at 65% for job approval, we can wrap ourselves in obama. greta: it is interesting that the job approval ratings are more important to the members of congress and the senate and then as a president. the president is three years out from running. it is almost that congress hangs on is more. >> it is. one of the points that we make

in a "catastrophe," is that you need a clear majority of the voters to stay in power, to be functionally in office. it is almost as if we have a parliamentary system like in britain. when you fall below 50%, it is like getting a vote of no- confidence. you cannot get a whole lot pas sed. greta: how do you think that these numbers reverberated around the white house? >> when bill clinton would lose one point, i would have a fit. i would go crazy trying to build it back up. the white house builds and dies by those numbers. this is not just that the senators are saying in 2010 that they have to run, they are not

going to vote for the programs that he is going to support if these programs are costing him support. if the health care programs are the leading his popularity, what am i going to do by supporting this program? if his job approval was over 60, he would have made the august deadline had passed deadline by then. greta: these numbers are watched very carefully. dick, nice to see. up next, the best of the rest. is johjon stewart taking over "of the o'reilly --

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greta: walter cronkite was known as the most trusted man in america. he died last week, "time" magazine ran a poll to see who the most trusted person in news

was and guess who won. none other than jon stewart of "the daily show." a good samaritan in california is a hero after pulling a 3- year-old from an suv. he was driving to work when he saw a car that was a flip over and on fire. he stopped and he pulled a young girl to safety. he said that anyone would have done the same thing. we say he is a hero. still ahead, "last call." on the phone today, the arresting officer asks a very

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greta: it is time "last call." president obama went calling both sides in the gates-gate controversy. >> he wanted to find out if there is a way to get the press off of his lawn. i informed him that i cannot get the press off of my lawn. [laughter] he pointed out that my lawn is bigger than his lawn but if anyone has any connections to the boston press as well as national press, sgt crowley would be happy for you to stop trampling his grass. greta: thank you for being with us. we will see you all again monday. don't forget to go