bill: he got out. they think that he will make a full recovery. megyn: look at that tape. bill: a lot of people sending us e-mail about this clunker program. megyn: in the meantime, "happening now" starts now. jane: good morning. jon scott is off today. the police officer is back on the job this morning. there is a new twist. what the woman who first reported what she thought was a break-in at the home is now saying. gregg: the dow jones industrial average on the negative territory, down 44 points. there is breaking news on new home sales. a big jump in the month of june. is this a sign that the housing market is rebounding?

jane: we have live pictures we will be showing you. the final space walk for the space shuttle endeavor astronauts. we start this hour with the race to get health care reform in place in this country. the president is still pushing hard to get a bill before congress' august recess. the plan has hit a roadblock on capitol hill. democrats are in control of congress, but they cannot seem to reach a consensus. it is pitting the most liberal members of the house democratic caucus against a more fiscally conservative blue dog democrats. on the republican side, they're branding the plant as nothing more than a government takeover of health care. let's get to carl cameron who is live on the hill. update us, if you will. >> all lot of tourists are on capitol hill, but not many lawmakers planning on doing much.

lawmakers are stymied and they are not doing much, trying to figure out what it will do later this afternoon to try to craft a strategy. in the house, it is those 52 fiscally conservative democratic congressmen who are giving nancy pelosi a headache. there is a real possibility that they will not be able to bring up a bill and get it passed before the august recess. they are pushing to do that. it is a very big delay. it is principally driven by an inability to agree with their own members. those fiscally conservative blue dog democrats are not going to put up $1 trillion on a bill that they are concerned will not work. jane: let's move over to the senate. one of their hangups was over whether their bill would have a public auction, this government- option. >> it is easiest to remember it this way. there are five bills coming out

of congress. all but one have a public auction. in other words, a government takeover of parts of the health- insurance business. it would also have this government component. only one does not, it is in the senate finance committee. it is also stalled. it is the only committee where republicans are actually participating. they are afraid of this public auction. they're looking for alternatives, particularly a co- op idea. they have not figured out how to pay for it that it was like to pass that committee bill before the august recess. it leaves a very open question. the chairman of the committee says that he wants to. where do you come up with the money to pay for all of this? they have not figured it out

yet. every day they struggle and promised to struggle for the reported so far, no answers. jane: a lot of unanswered questions. if anything breaks, he will bring it straight to us. gregg: sarah palin saying goodbye to her job as governor of alaska. the former governor in fights -- and vice presidential candidate giving a pretty feisty farewell speech and explaining some of the reasons for her decision and her plans to go forward. >> with this decision now, i will be able to fight even harder for you for what is right and fortress. gregg: dan springer is live in fairbanks, alaska. he was there yesterday. any indication where she is today and what she is doing on her first day as a private citizen? >> i have got to hand it to her.

they are guarding her whereabouts and her future plans like it is a national secret. they are giving no indication of where she is going to go, what she is going to do. they are being very mysterious about this. they are not going to go back to alaska and fade away from public life. she does want to be relevant out there. we know that she had a speech yesterday that was very feisty. she went after the media. she went after animal rights advocates. she did not name obama, but she went after big government. at times, it looked like a stump speech. she was taking off her list of accomplishments even though she abandoned -- >> we slowed a the rate of government growth. with lawmakers, we saved billions for the future. >> she also projected $28

million in federal stimulus money -- gregg: i think we have a frozen slabs -- satellite communication there. by the way, we are going to be talking to someone who has written a lengthy article about what he describes as the persecution of sarah palin as to what is your next career move. we want to ask you, what do you think our next career move should be? send us your comments. we will put some on the air for you. jane: let's show you what the dow is doing. it is down almost 40 points. the sale of new single-family homes jumped 11% last month. that is the biggest increase in almost nine years. i am going to ask you what this means. >> i feel like we know each

other. americans often make their biggest investment in their homes. that is where we keep all of our wealth. when we see americans jump in and make a new home purchase, that could be looked at as a positive sign for the economy and the credit markets. these figures do not include distress or foreclosed properties. if it is a new home, it usually means that you need a new loan. banks are lending very prudently, but they might be lending to good candidates who are going out and buying new homes. i just want to put this into some context. new-home prices are down year over year. we're not seeing a complete recovery in the housing market based on these numbers. it is the third consecutive numbers that we have seen new home sales increase. these new home sales are nearly 15% of the total housing market overall. it is one of the biggest investments that americans make.

we want to see more home buyers jumped into the marketplace. it could be a positive sign for the economy. we will keep it in context, but keep it as a positive sign. homebuilder stocks are rallying, despite the fact that the markets are down at this point. jane: thank you, jenna. gregg: the new cash for clunkers program is getting off to a start. the program letting people trade in low-mileage vehicles for more fuel-efficient cars. here is the good part. you have $4,500 in a rebate. jeff, how is it going? i heard that the website crash, it was so overloaded. >> exactly. we have talked to a lot of dealers over the weekend. a lot of activity over the weekend. we thought it would be more fun to see the cars.

you know what must happen to these cars is, you cannot turn them in and resell them somewhere. they have to be totally destroyed. you saw that car being crushed let's continue to watch this process. i do not know what he's going to do with it. i think they stack them up out here and then the wheels come off. they take the wheels off. they take the engines out. they separate out the robber and all of the plastic and all the rest. the metal gets recycled, but the car cannot be reused. maybe he is going to crush another one. i guess it is more fun to watch the crushing. the bottom line on this, a lot of people come into dealerships and say, do i get my $4,500 plus

the trade-in? if your car is worth more than $4,500, it does not make sense for you to do the program. they essentially give you one or the other. you control your car for whenever it is worth or you can get the $4,500, depending on what car you drive. let me show you the full recycling process. these engines have to come out. we're about to be run over here. these are the engines. they have to be disabled. they dump chemicals, essentially into the engine, so that they cannot be reused again. bob cole runs this operation. how many cars do you anticipate to get? >> and my first estimate is 100 cars by friday. >> 100 cars? >> yes. >> to use excess -- do you suspect that this will be

successful? >> i think it will be very successful from every gambit of what it is intended to do. i think the money is going to main street. it will help people to afford to buy new cars. it will help the car dealers that are struggling so terribly. i like it all the way through. >> ok. i appreciate it very much. thank you for the access today. they do this all the time, but they are going to do it a lot more with this program kicking in. >gregg: it is always fun to watch you and your photographer at work. do not get crushed out there. jane: just as jeff was speaking, we have new information coming in and out of cambridge, massachusetts. you thought you knew the story of the black harvard professor. the woman who placed that initial phone call to police says that she thought someone might be breaking into the

house. she is now speaking out when did race actually enter the picture? we are learning that the cambridge police department is set to hold a news conference. we are told it is going to start at the top of the hour. we will let you know as soon as we know more details on that. gregg: we are going to talk to a the lawyer. we will hear what she has to say about all this.

jane: what is next for sarah palin? she has stepped down as alaska gov.. go to our website and you could weigh in with your thoughts. we are looking at live pictures from space. astronauts getting a few chores out of the way. they have already rewired a piece of insulation. they will also be setting up some tv cameras on a portion of the japanese laboratory. over there, you can see that the dow is down. we got some pretty decent housing numbers. we will continue to watch that. gregg: some new details now and the emergent arrest of a black harvard professor at his own home which became a racially- charged case, involving the president of the united states. now the cambridge police commissioner is speaking out. he is backing up a woman's claim

that she never described the men involved as black. joining me now to talk about it is the attorney for the 911 caller. thank you very much. what did your client say when she called 911? >> whatever she told me -- the tapes are going to be released. i will leave the details the facts. i will say this. i will tell you what she did not say. she did not say, i saw two black men. she said, i see two men. she never once uttered the word "black" and here is why. she did not see their race. the vantage point, the distance she was from the men, and the fact that their backs were turned to her, explains what may be a bit irrational. she could not see their rates,

therefore she did not know their race, but somehow she knew what they're doing. that is the most important point at all. she called because of behavior. she has been vilified and attacked both in mainstream and online sources as the racist spark that fueled this mess. nothing could be further from the truth. gregg: your client is not white, correct? >> it depends on how you define wyck. her skin color is olive. she is of portuguese descent. she would check white on a form. if you look at her, you would say that she has tan or olive, dark skin. again, i am going to blame professor gates for this. he was at the scene saying things like, you would believe a white woman over a black man?

to characterize this that what was wrong. two character -- to characterize her as racist is completely wrong because she is not racist. she did not even know their race and she called because she worked in the area. geo -- she was aware that there had been break-in's recently. she was just being a good citizen. gregg: it sounds like professor gates was making a racial assumption about your client. your client has been stung by accusations that it was a racist white woman who thought to black men were breaking in at a fancy house. are you going to sue? >> no. there are absolutely no chances to take legal action. i cannot say whether professor gates or anyone else was racist. i can say that there was a lot racist fuel in the fire. some people may be doing some soul-searching here, but that

would not include my client. gregg: the only reason i ask about a lawsuit is that it refers to your client in during these libelous accusations. libel is a legal action. >> i wrote that on purpose because she contacted me to ask questions about her rights. one of the things she has me was whether it was libelous for people to call her a racist. the answer is, it probably is, but that does not mean that she wants to take legal action. she is glad to clear the air bridge she is glad that the police have roof -- have confirmed her characterization of the story. she does not want any more controversy. she does not want to ram things up. she respects the police and professor gates. she wants to move on. gregg: it is always great to see you. we appreciate it jane: and let our viewers know, we're waiting

for that news conference. that is set to start at top of the hour. we will bring that straight to you and we may get some news out of that. we continue to watch a busy day in our space. the two shuttle astronauts a six and a half hour space walk. [ female announcer ] want color that shines all year long? spend 10 minutes a month with natural instincts. it's the healthier way to blend away gray and give you color that shines on. how? the antioxidant rich ammonia-free formula feels good and looks even better. in fact the more often you use natural instincts, the healthier your hair looks. it's the healthy-looking color that shines in just ten minutes' time. natural instincts, it's all good. look for natural instincts new champagne indulgence collection. from clairol.

gregg: the final full day of activities for the joint crew of the shuttle endeavor and the international space station. thirteen astronauts in total zooming around the planet hundreds of miles above earth. this is the largest gathering ever in outer space. right now, two of them conducting the fifth and final space walk of the mission. what are the shuttle astronauts

up to right now? >> they are spacewalking. you can see in the video, they are hanging onto the space station sideways and upside down as they do their work. they are rearranging power cable hookups, folding down insulation that popped up and the main task is setting up tv cameras on the porch of a new japanese laboratory that was installed last week. they went outside about an hour early. cassidy took his time to keep down the carbon dioxide levels. in the first space walk, it was cut short due to elevated carbon dioxide inside his suit. mission control said that his navy seal background makes it difficult for him to slow down. if you look at these pictures -- if i could ask if these are live. gregg: these are live. >> and the space suit is

supposed to have read barber pole stripes. i am not sure if you will be able to see that with our banner on there. gregg: there is a conversation that is going on with nasa and the astronauts as they undertake this. >> ok. i have been listening back and forth to some of the chatter. they are getting some commands from mission control and some from inside the space station from the commander as well. this is a milestone. only a handful of choppshuttle s have done more than five spacewalks. the largest ever gathering in space. also notable for about one month of delays getting off the ground

there with weather delays and a delay for a hydrogen leak. gregg: it really looks like surgery in an emergency room here on earth. that, i suppose, is the mechanical equivalent in space with the international space station. fascinating stuff. jane: we will continue to watch it. would you like some investment advice from warren buffett? the oracle of omaha in a cartoon? let's get to courtney who has been watching what this is all about. >> warren buffett is heading to the online playground. he will be teaching kids finance lessons in a new cartoon web series called "the secret millionaires' club." the episodes will be aimed toward children aged 6 through 11. they will be taught the value of patient investment and risks

of credit cards. he has already recorded some of the audio of the series. it is scheduled to start this fall. the company behind his project is also working with martha stewart he was going to appear as a 10-year-old who operates an event planning company out of a tree house. supermodel giselle will be a super hero who protect the environment. president obama is hoping that twitter can help you understand his health insurance plan and influence politicians to support real reform. new today from the dnc, the feature, tweet your senator so that you can chat. you can also see the map on the right that pops up real time tweets. jane: thank you, courtney. gregg: citigroup finding itself

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jane: bottom of the hour, it is sarah palin's first day as a private citizen after giving up her job as the governor of alaska. how will she stay in the spotlight if she wants to? you could weigh in on her. look at this high drama during a boat race. that flipped over not once, but several times. the amazing story of what happened to the race or inside the boat. gregg: alarming new statistics on obesity in america.

how could cost you some big bucks. let's kick down to the newsroom. some new information on the news conference coming up in a half- hour. >> i just got off the phone with the commissioner's office. they would not confirm anything for me. they said, they are not telling the media anything about this. they are being very tight-lipped about it. the commissioner's office is expected to be there. whether or not he will take the car -- take the podium -- the person on the phone said that they could not talk about it. also, perhaps the council to the superior officers association. attorneys are showing up. that makes me think, maybe somebody is lawyered up. the superior officers association will be represented by the president of that association and also, the massachusetts municipal police coalition an association of 25

police organizations. you have a lot of people showing up that might have an interest with having some community talks about race relations. that is what i have been hearing. gregg: that is a pretty good hunch, especially since the lawyers are there and there is so much potentially defamatory things. i'm wondering whether they are going to pop out not just the 911 tape, but also the conversation between the police and professor gates. >> i read that police report. she did use the words "black men at the door." we will have to see. gregg: the person who fills out the police report is not the 911 caller. they may have determined that information through the inquiry and not through the 911 call. i think the call, which is heard

by the chief, he has already borne out the fact she has not seen it. jane: we want to get to the battle over health-care reform. right now, the democrats are in disagreement. the house leadership is facing resistance from conservative democrats later on today, the democratic caucus will do it walk through of what is currently on the table. can they reach a sting -- -- consensus? the former chief of staff to senator blanche lincoln joins us. from the other side, the ceo of new media strategy joins us. i want to start with you. the speaker of the house said this when i take this bill to the floor, it will win. what will win? what kind of agreement can they get to? these disagreements within the democratic party -- those are not tiny issues. we're talking about significant

stuff. >> they are very committed to controlling health-care costs, which is what the president decided. the president said, whenever we do with health care costs, we have to make sure it remains budget neutral. it will not add to the deficit by changing parts of the health- care system. controlling health-care costs for those who do have felt insurance at this point. i think they are going to have a lot of discussions before they take this to the floor. i do not think we will take this to the floor before the recess. the president set a deadline the president is fine with taking as much time as needed. jane: if they miss this deadline, will opponents be able to take advantage of this time off, this quiet time, to get their points across and kill this thing? >> i think someone needs to communicate clearly to the american people. watching the democrats try to

[joke] kelly is right. the blue dog democrats are for fiscal responsibility. the last thing they want to do is put that on the backs of small business. that is what the president is looking for, this $1.70 trillion price tag to come from. when you have unemployment nearing 10%, sticking it to small business owners is the last thing that you want to do. >> the president has never said he wanted to put this on the back of small businesses. i think you are making that part of. the president has never said -- jane: just to be clear, people are saying that would be the ultimate affect. >> it is going to cripple small business. >> if you make less than $250,000 a year, he has no plans to raise your health insurance

costs or your taxes in general. he has been very consistent with that. >> where is the money going to come from? we have already socialize the financial industry. we have already tried to take over the automotive industry. now we want to take over the health-care industry. >> nobody is talking about taking over the health insurance industry. only three committees have acted so far. one of the price tags was pegged to one of those committees bills. there will be five committees that will vote on them before they go to the president. >> what is speaker pelosi trying to ram it through? why is she trying to ram it through and really bypass the important committees? they are trying to bypass the energy and commerce committee. why is she trying to take this

tactic to ram it through? >> i do not think they will vote on it this week. i think they will take their time to get this right. i wrote the press release from the blue dogs back in 1995. they have been consistent to try to control our federal deficit. they continue to have a big impact. i think people need to take a deep breath and relax. jane: we will have to leave it there. we will keep you updated. gregg: let's check in on wall street. look at it now. it gained some, down 16 points. citigroup could be heading for a showdown from -- with uncle sam. one creditor wants the company to pay $100 million originally reported from the fox business network. i pay taxes, so don't we taxpayers own 35%?

>> that is true. let's go down both of the story lines. on the one hand, this is the wall street guy that some of us would love to hate. he makes some big bonuses. he operates a very secretive trading operation out of citigroup. he owns a castle in germany, according to some reports. sometimes he takes ballet. he has a world-class art collector out there this is what we know about him. according to reports from "the wall street journal," he is expected to get a lot of bonus money. on the other story line is, this is the wall street guidie one working for you because he continues to make money. this citigroup firm that took $25 billion of taxpayer money has taxpayer assurances. it begs the question, do you want a $100 million guy working for you or against you?

that is when to be a question that the compensations officer will be confronting as we go into bonuses. by august 13, he will be collecting from all the major firms, proposals for bonuses. bank of america will be one of them. we all know these names. we are heavily invested in them. he is going to have to look through these proposals and find out what is fair. what do you think? would you like this guy working for you or for -- or working for somebody else? gregg: as long as he is earning his keep, i did speak for everyone in america. jane: sarah palin heading back into private life officially today. she is not exactly riding off into the sunset. what other doors are opening for the former vice presidential candidate? what is next? what is our next act? you can white in on our blog.

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jane: the boat racers were competing in time trials. this is on the columbia river in washington state. one of these boats flips over not just once, but a whole bunch of times. the crash actually ended up

trapping the racer. believe it or not, he was relatively on harm. -- unharmed. gregg: sarah palin, private citizen, delivering a feisty farewell. more than a year before the end of short-term, stepping down. before she left, she offered some words of advice to her fellow alaskans fritchey lashed out at some of her critics in the news media. >> some straight talk for some in the media. democracy depends on you. that is why our troops are willing to die for you. so, how about in honor of the american soldier, you quit making things up. yaaayyyyy

gregg: joining us is author of "the persecution of sarah palin." good to see you. a lot of people have tried to weigh in on what she is going to do people say that it is clear. you are not even sure that she knows. what do you mean? >> when you look at sarah palin throughout her entire career, she is a very compulsive politician. she sees opportunity and moments when the people are angry at the establishment. i think she's waiting for the opportunity to see that in america at large. gregg: i read your column. it is very involved. it is worth reading. you posed the question in it, why is sarah palin leaving?

you say principally, her enemies concerted effort to tear down. that is only going to feed the of a label that she has already been tagged with. judging by the columns that i have been reading, it still is sticking to her. isn't that a real problem for her? >> is. we have seen some pulling where she really needs to regain the ground that she lost among independent voters. when she first appeared, independent voters loved her. over the course of that grueling campaign, she made some mistakes. there was the unrelentingly harsh media coverage that she received. that drove her negative coverage of. she needs to reestablish that connection. a lot of this is out of her hands as well. if the democrats continue to screw things up here in washington, d.c., they might look for a populace from the north. she will be there waiting. gregg: you write that it is this

role and unrelenting. her favorability rating has dropped about 20 points. it could not have anything to do with people really having a problem with her. given the fact that for better or for worse, the media has a tendency to shape part of public opinion, do you think it was a good idea for her to rip into those members of the media who will perhaps shape the public's view of her? >> it is definitely something that her supporters want to hear. i think it is important for her to say that now. if she progresses forward- looking on her book, getting involved in congressional races, setting up the pact, trying to lead a coalition, she might have to shift for a tax loss to the media and more to the democrats that she is targeting. for her, that is the key. she has to place herself on the

side of the people. now she has to do it going forward. gregg: great column. jane: i want to get to some breaking whether news. janice dean is in the weather center. you have tornado warnings? >> yes. this is a waterspout that has made it onto land. florida residents that live across the coast of florida know that this can be a particularly dangerous situation. let's move to where this tornado warning is. there is the rotation that we're seeing on doppler radar. there is the warning. that is a waterspout that has moved onshore moving north around 8 miles west of tampa at 10 miles per hour. we will watch it very carefully as it continues to move northward. i want to point out where we're seeing showers and thunderstorms across the southern plains states. the potential for severe

weather. one other spot, we have extreme heat across the northwest. look at medford and seattle. the reason this is dangerous is that a lot of people do not have air-conditioning across the northwest. stay cool. also, the fire threat is very high in this region. we have had incredibly warm temperatures across the midwest all summer long. we will keep you up-to-date on those warnings and the heat in the northwest. gregg: arguments over just how to cut costs are weighing down the health-care debate in washington, d.c. what about attacking obesity. a study just released last hour says this. obesity now accounts for more than 9% of all spending on health care. are you receiving a payout from a legal settlement

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gregg: we're about seven minutes away from a live news conference in cambridge, massachusetts. it is over this racially charged controversy. there they are setting up the cameras and microphones. we will hear from the police commissioner. we will hear from a lawyer who represents the police officers and presidents of various agencies. stay tuned for that. we will carry it live. jane: here is a question on health care for you. could cutting the costs of health care be easy as trimming the waistlines of americans? the study released just our says that the cost related to obesity have risen to $147 billion. it now accounts for more than 9% of all medical spending.

medical expenses are $4,000 higher than for those people of normal weight. former president bill clinton was famous for french fries. he was at an event with the cdc and he said preventing childhood obesity is one of the most difficult and costly problems we face right now. >> i do not believe there is a chance that we can solve this problem unless we do it in the homes, schools, the restaurants, doctors' offices, communities. this is a social issue. we are trying to turn the titanic around before it hits the iceberg. jane: let's start at the beginning here when we talk about those enormous costs related to obesity. what are they for? are they for drugs? what are they? >> sum are related to drugs. obesity is soon going to surpass smoking in contributing to high blood pressure, diabetes, heart disease.

some are related to drugs, some are related to surgeries. diabetes people need their legs amputated and their feet. they need to vascularize or fix the blood vessels in their legs. they get clogged. these are surgical procedures and medical procedures. it is a big problem. in the 1980's, only 15% of americans were obese. jane: we heard former president clinton talking about how to address it. nobody has a magic bullet. what is your take on that? >> is a very hard issue. we live in a society today -- in the old days, when you were poor, you could not afford food. today, our poorest citizens are the most obese. they eat high-fat, high sugar foods that are cheap and available. it is hard to find fresh vegetables in the inner cities. some cities are bringing farmer's markets down. they're giving you double the

value of your food stamps. we really have to start at the roots. we have to get kids out to exercise. jane: if it has such an impact, are we hearing enough about the obesity problem in this current health care debate? >> they are talking about wellness. there is one extra thing. you need access, but you also need some personal responsibility, of which nobody seems to be talking about. you need to have access. fresh fruit and vegetables. you need safe environment for them to go out and pay. jane: thank you. gregg: about four minutes from now, we expect a news conference in cambridge, mass. over this whole racially charged controversy involving an arrest of a harvard professor. we will hear from the chief of police commissioner -- the

police commissioner. we will hear from the presidents of two different legal agencies. what in the world is going on? are we going to hear some tapes? jane: we just interviewed a lawyer for the woman who plays that 911 call. she said that she never used the word black. her lawyer says that the woman did not even see their race. that is believable. we expect them to potentially address this 911 call. gregg: we expect achieve to verify that fact. of course, it juxtaposes, who was making racial assumptions here. perhaps it was professor gates.

[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- gregg: we are waiting for a live news conference involving the rest of the black college professor, a superdelegate. the president weighing in, saying that the arrest was an officer acting stupidly and then backtracking with any non- apology and then saying, let's resolve this. we have learned that not only will the police commissioner be talking here at this news

conference, but the mayor of cambridge also speaking here. we do know that the presidents of two different police officer associations will be addressing reporters, as well as legal counsel for one of those police associations. >> i would like to introduce the city manager. >> thank you very much. good afternoon. i am the city manager of cambridge. it is a position i have proudly held since 1981. recently, cambridge became a city that many people around the country are associating with july 16, 2009. a day when a police sergeant and a professor met in an unfortunate set of circumstances that did not have a desirable outcome. i am committed to making sure

that our city is not defined by that day. today is the day to move forward. the mayor, the commissioner, and i are pleased to announce that the city has taken significant steps toward that end. last thursday, the commissioner announced that a group of nationally recognized experts would be organized to help us determine what lessons can be learned from that incident. since then, we have asked truck wexler to convene a committee to develop recommendations that the department can use as guidance in the future. the mission of this committee is larger than the investigation into the events of july 16. while it is important for the committee to understand those

offense, this committee will not be conducting an internal investigation, nor will it make any official judgments on the actions of the officers in the department. rather, the committee will identify lessons to be taken from the circumstances surrounding the incident and how those lessons can be applied to the policies, practices, and training programs of the cambridge police department. it will examine the organization of the cambridge police department, its current policies, and its relationships with all parts of the cambridge community. the scope of the committee's work will include identifying learning points about the interaction between residents and the police by examining departmental policies and training. approaches to conflict resolution and strategies to diffuse difficult situations, gauging the spectrum of views and concerns held by the public, as well as officers through

focus group meetings, and a first segment of the larger cambridge community and officers representing a wide range of ranks and assignments. identifying areas where the department can enhance its operations to handle simple -- similar incidents in the future in the best possible way. assessing how issues of race and perceptions can impact on daily encounters between police and community members. produce findings and best practices to the cambridge police department and the entire law enforcement community of this nation. we worked extensively. on issues of strategy, diversity, and management. i have known bob for some years. he has assisted many government

executives to address complex issues facing police in an urban community. he is a nationally recognized leader on organizational issues and has national respect. i have asked her chuck wexler, the executive director of the police executive research forum to chair this committee. chuck is no stranger to cambridge. i have known him for some 20 years. he has worked with me in the city of cambridge over that time. he earned his passion -- his bachelor's degree at boston university. i expect that he will be with us later in the week for further announcements. pirf has provided honest assessments of police departments for calling it like they see it. for those of you who might not be familiar with his organization, it is a think tank in washington, d.c. that is

dedicated to advancing professionalism anacross the united states. i encourage you to go to the website to check out their work. i have confidence that with their leadership and the leadership assembled here today, this committee will help us emerge as a stronger community. individuals have already been identified to serve in this committee. i look forward to announcing them later this week. i would like at this point to ask the mayor to say a few words. i will return to the podium for questions and answers after the mayor speaks. >> thank you, mr. city manager. good afternoon. what you hear this afternoon is an important occasion. it is one that we shall remember as a turning point for the city.

while this has been a trying time for cambridge, we are confident that we can ultimately come out stronger and more unified. i stand representing our community and as the mayor. we will show a sign of support and unity. our hope is that we're going to have these examinations and discussions that shall continue in the continuing weeks and months. the way that we interact as neighbors and fellow citizens is one that we have to do very consciously. i strongly support our commissioner. i fully endorse this committee and the plans to convene on this matter. i look forward to the facilitated social discourse, conversations. i will continue to focus my energy on helping the community

learn from this experience. it is my hope and expectation that these events will serve as a catalyst for some important discussions and that we shall come all the way with a better understanding -- we will come away with a better understanding of how we can interact as a community and how we can avoid situations like this from reoccurring. i also have a severe which a sincere hope that the people of cambridge will ultimately walk away from this experience healthier and more empathetic as a city. i think you for your time. >> thank you, mayor simmons. before i address questions -- these were very carefully thought out statements. as a result of conferring with the commissioner and the mayor,

it is my belief that there is no way we can continue to go forward if there is any lingering doubt that there is anything being hidden. after this press conference, we will have copies of the disk that will contain the 911 telephone call and the radio dispatches during this event. those copies will be made. i'm not sure exactly the logistics. this gentleman and that gentleman will assist you in obtaining a copy of the disk. it contains a complete 911 telephone call and the communications between the officers on the scene and the emergency communications of the cambridge police department. the only thing that has been redacted is the cell phone number of the caller.

her name has already been published. there is one item redacted. that is tercel phone number. i will take questions. >> what is your sense of what happened? >> as it relates to the incident, i would ask the commissioner to respond to that question. >> it was important for us to make this decision. i would ask that you formed your own opinion with respect to the transmission and the conversation that took place. >> is there anything that should have been done differently? >> we will always reassess what we did. that is always the first question i ask myself. when i have done it differently if i could do it over again? he has not listened to the tapes.

this matter is not resolved prin. we have a long way to go. we recognize that we're going to take advantage of the situation and we are going to move forward. this is a strong and proud community. we will be stronger as a result of this. >> when was the final decision made to release everything? >> i believe that was ultimately going to happen. we have looked through the exemptions of the public records law. we were not trying to hold the tapes back. we wanted to make sure that the information was obtained. i certainly think that the caller's attorney indicated that there is no issue if the tapes are released. my concern is for the privacy of the caller. i suspect that her voice will be

playing on many outlets throughout the wage and -- throughout the nation. i do not know if you have described that in any other fashion. >> i would have to go back to my original station. there is going to be some confusion. we will help you understand what those signs maine. it is plain language for the most part. >> why are you trying to lie to this commission? >> i am grateful for the president's comments and willingness to sit down with professor gates and sgt crowley.

just as prof. gates has said and the president has said and the parties here are saying, it is time to move forward and look at the lessons learned. it is time to go from there. i hope that they will enjoy it at the white house. >> had the meeting been scheduled yet? >> i do not know. i am not involved. gregg: the mayor of cambridge, massachusetts. the president weighing in on it. here is the bottom line before we cut away from the first first question -- they are convening a panel of what can be learned. the mayor said, we want to take advantage of the opportunity and

learn from it. by the way, the 911 call that was placed by an individual worried about a burglary at the house, that will be released in audiotapes to all members of the media that you see right there. we're going to have lots more on this coming up in just a moment. jane: we will be right back. my doctor said the bayer aspirin saved my life. please talk to your doctor about aspirin and your heart. i'm going to be grandma for a long time. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. eight are wearing bathrobes. two... less. - 154 people are tracking shipments on a train. - ( train whistles ) 33 are im'ing on a ferry.

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jane: police in mexico say that they now have a suspect behind bars in the murder of the u.s. border patrol agent. it is the first shooting death of an agent in more than 10 years. police say the guy you are going to see here was carrying a u.s. border patrol issued a pistol. he is one of five suspects now in custody. he was alone when he responded to a call about somebody crossing the border illegally. it has been more than 10 years since we have seen the death of an agent like this. let's get to matt johnson. he is with our fox station in san diego. he has been working on this story. update us on what you know.

>> there is conflicting reports. on one hand, you have authorities out of mexico saying that they have arrested a kill in this case. on the other hand, you have the fbi saying that they will not confirm it. we're live at the border patrol station. this is where this officer had worked. the flags are flying at half staff. the men are accused of killing the border agent. he was killed in the line of duty on thursday. mexican national authorities announced it over the weekend. they also announced the main suspect. mexican authorities say that he was carrying a border patrol issued pistol at the time that he was arrested. he has not ask for a lawyer at this point in time. u.s. officials will not confirm if they believe that the suspects are responsible. the fbi is still offering a

reward of this hour at -- at this hour of $100,000 for information in this case. we're also told that border agents are taking extra steps to stay safe as this investigation continues. he is the first quarter agent to be killed in the line of duty in about a decade. jane: thank you very much. we're still waiting for confirmation from authorities in this country on these arrests. it is thought that these guys are a part of a smuggling ring. gregg: let's all look up words right now. it is a dangerous job up there. these guys have the right stuff to do it. the shuttle astronauts making their final space walk right now. (male announcer) if you've had a heart attack

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jane: you are looking at live pictures from the international states -- the international space station. it is the fifth and final space walk. they are rearranging power cables and installing tv cameras on the space station's new porch there. the space shuttle endeavor will be undocking tomorrow and be on its way home. we will keep watching. gregg: in the meantime, the major health-care bills are now being debated in congress, which would require nearly all americans to have health insurance. it would require it. the reason most people are uninsured is simply because they cannot afford to buy coverage. what needs to be done to ensure low-income families and maybe even modest or middle-income families will not absolute the

hammered financially when they sign on to the plant where they are required to sign up? joining us now is a national campaign manager for health care for america now. good to see you. i have read through these plants. poor people get discounts. they get subsidies. what i'm worried about are those of modest incomes. what happens to them? >> they actually get discounts in subsidies as well. we want to make sure that middle income people do as well. as you said, health insurance is way too expensive now. premiums are rising three times as fast as wages. you want to make sure that you make health care affordable to middle-income people as well as low-income people did you do that with what people pay. gregg: if congress sets the subsidy limit at 300% of the poverty level -- the blue dogs are proposing that -- my goodness does that mean

literally that millions of americans may not be able to afford insurance and they may not get any help. if you do the figures, 3% of the poverty level is not that much. >> you are absolutely right. republicans have been trying to cut the subsidies below that. what is in the house bill that the democratic leadership has proposed is making sure the subsidies go up to middle-class families. the median income is $73,000. we want to make sure that there are subsidies to middle-income families. gregg: let me shift a little bit. the president keeps promising over and over that if you like your health insurance, you are going to get to keep it. a politically neutral very prominent health-care analysis firm has done a thorough analysis of that and they say that is preposterous. they have concluded that the

house bill would cause more than half of those who now have employer-provided insurance to lose it. the figure is roughly 83 million americans would lose their health insurance. is that true? >> it is not what the group has concluded. the house bill, according to the congressional budget office would have 11 more -- 11 million more people in employer-based coverage. in fact, what the president's plan does says that if you will have coverage at work, you can keep it, but it does two very important things in the house bill. it says your employer has to play -- has to pay a reasonable amount for it. gregg: let's say i am an employer and the regulations are going to be so onerous, i'm going to have to hire people to do the regulations.

it is quite to be easier for me to just drop the plan and play very -- and paid 8% payroll tax. >> there are no fines if you provide good coverage. the regulations say that you have a standard that of bana -- standard set of benefits and you have to pay a reasonable amount of employee coverage. gregg: i have to cut it short. we have some breaking news. thank you. >> thank you. jane: we want to get back to cambridge, massachusetts. we just heard that news conference with police, talking about the 911 call that led to this hoopla over the black professor from harvard who was arrested after he was in his own home. a neighbor thought that the home was being broken into. a lot of questions about what she said to police. her lawyer said that she never said that there were black man trying to break into this home. we have the call queued up direct from the news conference.

you will first hear the call from a woman and that we will hear radio traffic between officers who were on the scene. >> control to car one. respond to a possible beating in progress. stand by. [unintelligible] both people are still in the house. one could be a hispanic male. i'm not sure. [unintelligible]

a single family yellow house. [unintelligible] i am sorry. repeat. it is not her house. she does not live there. she is a witness in this. [unintelligible] >> the gentleman says that he resides here. he is not cooperative.

>> we can send in the harvard university police. [unintelligible] jane: what we're listening to -- this is coming directly from that news conference. we are not exactly sure what we are getting. we were hearing the 911 call that was placed -- we thought we were going to hear that. first, as you were hearing there was radio traffic between the dispatcher at the police department and the officers that were heading to the scene. one interesting point we have heard so far is a dispatcher said, "unknown on race.

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gregg: we have some breaking news. the 911 call from the witness -- the initial telephone call of the radio dispatch that a possible burglary in progress at the home of a black professor at harvard who was then arrested. a great controversy. here is the 911 call. >> what is the exact location of your emergency? >> the house number is 17. quote what is the address again? >>the emergency is 7 west stree?

what is the number you are calling from? >> i'm calling you from my cell phone. i just had an elderly woman here and she sought to men trying to get into the house. they broke the screen door. they finally got in. i noticed two suitcases. i do not know if they are to individuals who actually live there. i have no idea. >> did they kick the door and? >> they were pushing the door anin.

i did not see a key. i'm just saying, that is what i saw. i do not even think it was an apartment. it is a yellow house. no. 17. i do not know if they live there and they had a hard time with their key. they used their shoulder to try to barge in. i could not see from my angle. >> are they still in the house? >> they are still at the house, i believe. there were two larger men. the other one entered. i did not see what he looked like at all.

she interrupted me. that is why i had noticed it. otherwise, i would not have noticed it. she was a concerned neighbor, i guess. >> are you standing outside? >>the police are on their way. >> i guess i will wait. gregg: there you heard the 911 caller permit we term -- we talked to her attorney, disputing the fact that has been widely reported that the caller had said two black men were trying to break into the home. she did posed, these guys might live there because there are suitcases. they barged in by pushing through with their shoulder. she was concerned a burglary might be in process.

it sounded as though she finally admitted that one of them was hispanic. jane: she said, one kind of look hispanied hispanic. she also said, they had a hard time finding vetheir key. we also have to get to some developing news. is it possible at yet another cemetery scandal? a family is saying that the cemetery there stacked bodies in single plots to make money. a human bone was found in a storage facility. this comes after authorities discovered nearly 300 bones and remains at another cemetery, one of the nation's most well-known african american cemeteries. employees there are accused of

selling the plots for cash after digging up the bodies. our felli it is live at this latest cemetery. update us from there, if you will. >> the cemetery opened at 8:00 this morning. all morning long, people have been pouring in here searching the cemetery looking for the graves of their loved ones. in some cases, they have found them. in other cases, they are not. some of the stories are pretty heartbreaking. i spoke to one woman whose husband was killed fighting in vietnam. he had a military marker on his grave. she went to the office. a cemetery worker came with her. he said, this is the right spot. another said that the grave expires after 25 years. thi talked to the owner of the

cemetery. and she insists that everything is ok. she is cooperating with the sheriff's investigation. the cemetery has had a history of problems. a lawsuit was filed back in 2000. the judge ordered the cemetery owners to improve the upkeep and clean things up around here. this is raising new questions. the cook county sheriff says that he does not know if there is a valid reason for that human bone that was found here on friday or if it is an indication of a much bigger problem. people here are fearing the worst. this is a well-known african- american cemetery. jane: that is quite a follow-up to the astounding story. i understand today that those poor families who do not know what happens to their loved ones

that they are offering some testimony today. is that right? >> yes. congressman bobby rush is holding hearings on cemetery scrutiny . people are telling their stories. many people believe that the cemetery in chicago was just the tip of the iceberg. this could be a problem at many cemeteries around the country. i'm a lot of people say that more federal regulation is needed in this era piarea. people are trying to get some answers. some people are finding their graves. others are not. i talked to one woman who was here in february. she found the marker is very easily. she said today, they are gone. jane: it is heartbreaking. we will have plenty to follow up on. thank you. gregg: you heard just moments ago the 911 tape that led police

in cambridge, mass. to eventually arrest a harvard professor there. coming coppeup, it is an audiotd in which apparently, someone is complaining -- it appears to be the dispatcher, that the occupant of the home is being unruly. we will play that for you in just a moment.

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gregg: secretary of defense robert gates is stopping in jerusalem today. some israeli settlers are protesting the visit by building a brand new illegal settlement in the west bank. what is going on on the west bank today? >> it is a coordinated effort to

establish a legal settlement from the north to the south of the west bank. this is a group of outlaws known as the hilltop youth that established these in legal settlements. it is in direct defiance of the united states. i have already been run off of this hilltop once. as you are looking at this scene, you might be wondering, how can a bunch of kids piling rocks amount to any significant defiance of the united states? this rock pile is what that trailer park over on the next hilltop used to be. what it hopes to become one day. you can see now it is a trailer park. that is in a legal settlement outposts. it is considered illegal by the israeli government. it has infrastructure. you can see the power lines going in there. the is really the electrical grid is nationalized. it is loosely defined when they

talk about illegal. the trailer park hopes to one day become what you see out there. that is a proper settlement. this is like a subdivision or a little town. all of these outposts are grabbing up land that the palestinians want for a state. when you see the settlements taking place, all of it is contrary to the u.s. effort for a two-state solution. the time, the fact that the settlers are establishing all of these illegal outposts while the u.s. engaged is not a coincidence at all. gregg: the building of new settlements is one thing. what about the expansion of existing settlements? >> that is what they are trying to define right now. primarily, that is what the defense minister has been bringing to the americans. what they want to define right now is, where is the stopping

point as far as construction is underway already? the defense minister has been trying to bring to the american delegation his argument that israel is already legally and financially obligated to finish a lot of these construction projects that are partially complete. what remains to be seen is when the u.s. will arrive at the point where they say to the israelis, not another brick. gregg: thank you very much. jane: across the pond, queen elizabeth has a problem. the h1n1 virus made its way to buckingham palace. how her staff is dealing with the outbreak. what does that mean? are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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jane: the swine flu scare going

all the way to buckingham palace. dequeen is taking extra precautions after some workers tested positive for the h1n1 file -- virus. what is happening at the palace right now? our they dealing with this? >> we spoke to buckingham palace earlier today. they do have a very large staff there. they have around 1000 people working there. they were very keen to stress that only one of these staff members has perhaps contracted swine flu. 100,000 people in the u.k. have been confirmed to have the disease or even suffer symptoms from it. no one is immune from that. many people are vulnerable, including the royal family. nobody in the royal family is reported to be suffering from the swine flu. at this time, there is certainly no panic in buckingham palace. jane: the queen is not even there, right? >> she is in scotland, where she

usually goes at this time of year. we are not aware at this point in time that anyone in the royal family is at risk. as you know, about 31 people have died. doctors and health services are saying that it is a very mild virus. they are telling people to stay calm. everyone is at rest, even the royal family. gregg: we have been playing for you out of cambridge, mass., the 911 tape from the citizen concern that there might be a burglary in process. as it turns out, she never said that she saw two black men trying to break into her home. she did not describe them as black men. of course, this is a case that has involved many questions of race. now we're going to hear from the dispatcher that the gentlemen in

deede resigns there. take a listen. >> the gentleman says that he resides here. >> copy. >> can you also call harvard university police on this one? [unintelligible] gregg: that is the total. the kettleman resigns there, but requesting campus police arrive. apparently elsewhere of the tape, somebody complains of the occupant being unruly. we know what happened after

that. he was arrested jane: sarah palin has no roof -- has now returned to life as a private citizen. what is next for her? what do you think the next chapter should be? we're asking you to email us. interesting stuff we are getting. . round ♪ ♪ it's just the same for everybody, every boy and girl ♪ ♪ the credit roller coaster makes you wanna hurl ♪ ♪ so throw your hands in the air, and wave 'em around ♪ ♪ like a wanna-be frat boy trying to get down ♪ ♪ then bring 'em right back to where your laptop's at... ♪ ♪ log on to free credit report dot com - stat! ♪ vo: free credit score and report with enrollment in triple advantage.

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gregg: in florida, some amazing

pictures to show you of their water spelout. this was spotted off the coast this morning at about 10:00 in a few miles offshore. it did not turn into a tornado over land, although it sometimes does. jane: we should mention, this is taped, not live. janice mention that we could start to see some things in the area. everyone is beginning to speculate what sarah palin's next move will be. what do you think? karen from michigan says --

gregg: peggy says -- jane: sarah says -- ed says -- there are hundreds more. foxnews.com/çhappeningnow. gregg: the world is her oyster now. she does not need to answer to anybody. jane: some have said that she could end up in the media. that is all for us. over to "the live desk." [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- martha: welcome to "the live desk."

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