all over the fox news room. behind us is the national desk. you are looking at the foreign desk, covering the globe and every picture that comes into fox news. brand new pictures will always be on the right-hand side of your screen. martha: let us take a look at the top box. we now have more information and a phone call that was placed in the story between professor henry louis gates and officer james crowley. this is the 911 call from a woman who saw something happening at the house. we are pouring through this, as we speak, but this is shedding light on exactly what happened.

we are going to let you listen and then you can decide about what happened. in the middle box,ç robert gats in the middle east with some very tough words for iran over their nuclear program. israel saying it is not taking any option off the table when dealing with the republic of iran. we will tell you about the latest. when i show you the video in the bottom box, you will be shocked. a huge accident. high rate of speed.ped over at a we will talk to the driver who will describe to us what it felt like as he flipped over. we are talking about an issue that is going to affect everyone

of us. harris: think about your relationship with your doctor. that is at the center of a fiery battle on capitol hill. members of the democratic party are apprehensive about the plan. house speaker nancy pelosi promised a vote this week, but harry reid says that there will be no vote before the recess. those two forces coming together. carl cameron is on capitol hill for us. the president may not see this done when he was expecting. >> they have the knowledge that they may not. they have said that they will not be able to pass the full bill before the august recess. for the record,ç that recess ds

not begin until august 7, and takes them into september. this is the only bill currently being contemplated that does not have a public auction. there are some interest -- centrist democrats that are opposed to the ideaç, particularly in the house. today, all of the democrats will be holding a meeting to figure out what to do. they do not know because of those blue dog democrats. they have enough votes to stop the democrats on the house floor, and their principal argument is it is so costly, it amounts to 1/6 of the entire economy and should not be rushed. democrats across capitol hill are dragging their feet and they are part of the problem with the agenda, because some of them

think that it is too much, too fast. republicans have been saying that all along, but now there is bipartisan support. harris: in the house, it seems that they could not get this done without bipartisan support. with the timetable getting moved back, we still do not have a budget from the white house. nowç we have competing things happening in the fall. >> fall will be a real calamity, not only because of the regular spending budgetç negotiations. in the house, republicans could -- democrats could jam it through.

in the senate, the senate finance committee, they have not been able to sort out the plan. republicans continue to participate in the senate, with the hope that something can be contained in terms of cost. if democrats were to pull the trigger, republicans would pot -- probably walk. then you would be faced with highly partisan sides in the house and senate. that is not a good recipe for the obama administration. they have passed stimulus, çprices aversion-type of mechanisms, but everything he promised to do in the campaign, he has not done that yet. harris: thank you. martha: carl has said of the

dynamic a beautifully for us. let me bring in our senior analyst, brit hume. çit is so interesting when you look at the senate finance committee. this group of sexix, he says tht the plan they are working on does not have a public option in it. >> the reason is pretty simple. this would be going through without much difficulty except that there is no money to pay for it. the president realizes that the public is alarmed by the deficit that we are running and the deficits that we are projected to run, going forward. now he had decided not to make

that deficit bigger. this program needs to be paid for. they cannot find a way to pay for itç that is politically acceptable. martha: what do they do now? and this was a large part of his campaign promises. >> my guess is they will see when they can get through the house. probably without any republican votes, maybe with some democratic opposition. then they will see what the senate canç come up with, and then what they have left. what we are likely to see is a considerably diminished conversion of this current proposal. that could mean the reduction of the public option. he might get something. he could call that health reform, he could achieve some

things, and then he would have to pick up the pieces and move on. martha: one reason they wanted to finish this before august was avoiding people going home and getting an earful about this. what is going to happen over this break? >> polling suggests the president's popularity has declined some, but it is still strong. his rating on certain issues is not as strong. on this issue, it isç really nt strong. the more people who see this program, the less they like the plan. that is why they want to push something through before the recess, before more air runs out of the tires.

çmartha: i want to talk to you about something you said yesterday, connecting the stimulus and health care. if health care was so near and dear to him, the stimulus really hurt him. >> the problem is mr. obama did not really care what was in the stimulus bill. i think he had the sense that the bigger the better, then the enactment of the stimulus program with a huge dollar attached to it would have a psychological effect on the economy. that has not happened. some activity is going to come from this spending, it is bound to, but it was so big that people could not see any relationship to stimulus and it

developedç a terrible reputati. the main thing that it did is it broke the bank. the government was already running huge deficits because of the decline in tax receipts. now they have this massive stimulus bill. none of it was paid for. thatç is what is creating this atmosphere in which the president feels like he needs to pay for this health care plan without a way to do it. martha: before you go, what do you think sarah palin does next? >> if she wants to run for president, i would suggest she travels and speaks around the country, maybe to make a bit of money in speaking fees, and if she is wise in terms of her political future, she bones up

on international affairs. if she does that, then she will be better prepared for the candidacy. in my view, she does not need to be governor or an office holder. she is such a spectacular celebrity that she is known everywhere. eq!%9 to attract the media. martha: thank you. harris: here is a story. james crowley back to work today. he is the man at the center of the national firestormç. he arrested professor henry louis gates after a report of a house break-in. crowley says that he arrested

gates for disorderly conduct. now we are starting to hear those 911 tapes. according to the police commissioner, the woman who reported the break and never reported race. take a listen. >> i do not know what is happening. we noticed two down and -- gentlemen trying to get into the home. when i looked closer, after they got into the house, i noticed two suitcases. i do not know if these are individuals who worked or lived there. harris: president obama now trying the east tensions since he got involved last week, saying the police officers acted

stupidly. now he is inviting both crowley and gates to the white house for a beer. martha: have you seen this story? thisç hydroplane boat slips in the air and crashes upside down. what went wrong? how does the driver handle the situation? we will speak to him after this. so many arthritis pain relievers --

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martha: they are almost ready to come home, and today they are doing the fifth and final space walk on the shuttle endeavor. work has just finished. we will continue to update you. in the middle box, tim pawlenty elected vice chairman of the

republican governors association. he has continued to rise on the national scene. in the bottom box, weç are winning the white house briefings which have been of great interest lately. we will keep a close eye on that briefing. harris: keep your eyes on the screen. some high drama on during a boat race in washington state. a hydroplane boat was speeding along when is it wipes out, flipping over several times. çincredibly, the driver got out without any serious problems. mike kelly walked away and scratch. he is with us on the telephone. -- away unscratched. tell me what happened, and what was going through your mind?

>> we were off to a great start, running in third place. going down the straight way, all of a sudden, the boat went up and there was nothing i could do. before i knew it, i was upside down. the safety council that i was in did its job, and so here i am -- capsule did its job, and so dear i m. harris: i hear you are a new father. what was going through your head? >>ç it was so fast. i thought about my little baby. i thought about wanting to come

out of this, being able to want to do this again. it is a scary feeling, but at the same time, we need to trust our safety equipment. çharris: they had to stop the race. many people could not believe that you were able to escape unhurt. martha: a 12-day-old baby. what a piece of video that was. if you get behind on your home loan payments, and the administration says they want you to be able to stay in your home. that is what one family thought. but they will tell us what really happened when they tried to get their mortgage company on board. we will tell you what you need

to do to protect yourself. and the irony. the owner of this home cannot sell in this tough market.

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martha: here is some good news on the housing front. new-home sales increasing 11% last month. now for the bad news. the ongoing mortgage mess. as you know, the white house launched a plan to keep struggling americans in their homes. wait until you hear this. there is a new report by the gao that shows the mortgage companies may not be doing their part to stop the foreclosure crisis.

many of these companies are charging people and advanced the for loan modifications. they are also telling some that they must be in default of ready to become eligible. and starting foreclosure proceedings while still in negotiations. here's what they are supposed to be doing. that does not go along with this charging an upfront fee. with me today is one family who áthey have gone through.f what pedro, let me ask you what happened your family. it got more and more difficult to make the payments?

>> yes, but first of all, god is good, and prayer works. in august 2008, i was noticing that we were starting to have problems with our mortgage çpayment. i called my lender, and gmacgmad they told us that we needed to fall behind on our payments. martha: do you think that maybe a dathey thought you were tryino reduce your payment amount? >> i think maybe they did not want to work with us -- for many reasons -- but they just did not want to help us. we tried so many times.

even when we called, they did not notify us that they would waive our payment before we started paying again. martha: i know that you waited three hours to get some help. we just saw a picture of your beautiful home. what is happening now? >> we are rejoicing, waiting for everything to be finalized. we are so happy. çgmac was finally able to helps and give us a great rate for the life of the loan. it is a blessing. martha: you are an example.

the lesson is, you have to be persistent. if the first phone call does not work, hang in there. the truth is, they do not want more foreclosed homes on their books. thank you for joining us today. çtake care. harris: you heard us talking about that house that they cannot sell. troubles for treasury secretary timothy geithner. after taking his new home in washington, he put up his old home in westchester county. he could not get the asking price. he bought the home five years ago for $1.6 million. he reduced the asking price for

less than he bought it. still no takers, so he is renting it out. breaking news from cambridge, massachusetts. the 911 called that sparked the arrest of henry louis gates. we are going to play it for you next. having the right tools is crucial

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harris: welcome back. we have a brand new information on three big stories. a group of israeli outlaws building illegal settlements in the west bank. >> behind me is a group of these out loslaws. they are a group known as the hilltop youth.

they are starting to build this new settlement, as the u.s. has taught diplomats in the country to stop, among other things, summits like these, to create a two state. police and soldiers ran them off, but as soon as they were çgone, they scrambled back to e hilltop and hope to rebuild in the morning. harris: barack obama says that some are trying to shape politics. >> he says u.s.-china relationships will shape the future. he is callingç for sustained cooperation on confrontation. one chinese official used a campaign slogan and hope for good results, saying yes, we can. harris: she was the governor of

alaska but today sarah palin will come up as a private citizen. >> it was sarah palin and plugged in her speech in alaska. she ripped the news media, blasted those people who believe big government is the way to go and author went after hollywood who went after her and animal rights, saying we eat, therefore we hunt. harris: thank you. martha: as we have been telling you, there are brand new details that we are hearing over the controversial arrest of henry louis gates. cambridge police released that phone call connected to the intended to -- incidents. gates says he was the target of

racial profiling, but the arresting officer sided disorderly conduct. take a listen to this. this is the woman calling in to report what she saw happening. ç>> there were two larger men. one of them look hispanic. i did not see the other one. martha: that is a bit of a different story from what we have heard. molly line is with us in boston. what is happening now that they have played this tape? >> what officials wanted to do was get all the evidence released, so that the public could listen to them. çyou heard the phone call. she is identified as a passerby. she did not mention race, certainly not an african- american person.

in fact, she mentioned a possible hispanic person. of those are the person looking for more information about what she saw. she said possibly one of them may have been hispanic. she also made it pretty clear that she was not clear that she witnessed a break-in. she said that this was the possibility simply of a homeowner tried to get in their home. also, the police radio transmission were released. you can hear the voice of a police officer calling in the additional police, describing an uncooperative homeowner. >> the john mintz says he resigned year, but he is not being cooperative. -- and gentlemen says he resides here, but he is not being cooperative.

>> city officials are still convening a panel to work over the issue. the mayor has said that this is a chance for the city to learn and for everyone to become a broader citizen. if this is something to learn from, it is america's classroom, something that we can all learn something from. çmartha: meanwhile, the police say they hope they can move on from this incident. officer crowley returned to work today. president obama is helping them make amends, by inviting both of them to the white house for some beers. let us talk about the political side of this now. we have the former deputy assistant to george w. bush. we also have a democratic pollster and contributor.

given what isç coming out now,o you think it is wise for the president to sit down with these two? is it enough? most people believe that he did enough on friday. we argued with each other. >> i think there will be more revelations about precisely what happened. the country will benefit, and politically, barack obama should be able to benefit from the show of friendship that emerges from this. ultimately, that will pay political dividends. martha: you say hopefully -- we all know that everyone at in the administration likes to know how things are going to go. what if one side says that they were mischaracterized, and it does not go over well?

>> the president basically took water cooler gossip and made it national news by perpetuating a false story. then he made another mistake by inviting them to the white house. now the police officer is sticking to his story that the professor acted inappropriately. and the professor is sticking to his story that he was racially profiled. this story will keep on going on as long as the president talks about it. çmartha: as far as i know, the door is open on the side of professor gates to pursue legal action. if he has any interest in that, is he a good friend to president obama if he shows up and then goes ahead and sues later? >> he seems to be committed to

moving on. çi think we are set up for an amicable resolution here. what brad is speaking of, that is not very likely to happen. martha: when robert gibbs says hopefully this week, how you characterize that? does that mean tomorrow, will this ever happen? >> it may have been on a slow news day, on the weekend perhaps. martha: thank you. we will see what happens. harris: a warning from the secretary of defense during his trip to the middle east. what robert gates is saying about the u.s. strategy in iran,

and the response from israel. what in the world is this? believe it or not, it is a new crime fighting tool. limb: dude that was sick! i've been hangin' up there for, what, like, forty years? and then - wham - here i am smacking the pretty off that windshield of yours. oh, what you're looking for an apology? well, toss another coin in the wishing well, pal. it's not happenin'. limb: hey, what's up, donnie? how you been? anncr: accidents are bad. anncr:but geico's good ding! with onsite windshield replacement. es... there is a medicare benefit that may qualify you for a new power chair or scooter at little to no cost to you. at the scooter store, we're experts at getting you the scooter or power chair you need. mc: your power chair will be paid in full. woman: i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all.

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call now or go to lifelock.com. ♪ harris: welcome back. the senior republican in the judiciaryç committee jeff sessions saying that he will vote against the nomination of sonia sotomayor. in the middle box, the u.s. government warning against increased pirate attacks. the somali pirates carried out hundreds of attacks, and we covered a few of them. in the bottom box, swine flu hitting buckingham palace. a u.k. news association reported

that two members of the palace crew have contracted the disease. by the way, i understand the queen is traveling with her own tamiflu. robert gates is in the middle east, talking about iran. the u.s. has said that they want to engage in talks over the nuclear program, but secretary gates warned today, if talks fail, the u.s. is prepared to follow up with strong sanctions. israel is opposed to any type of talk and says it will not take any options off the table. what does that mean? joining us is the former ambassador to the u.n. robert bolten.

i am wondering what that timetable might look like and what those sanctions might be. >> i think his message is pretty clear, they do not one israel to useç military force against irn 's nuclear program. the administration wants to find someone in iran to negotiate with to try to talk them out of the program. i think israelis see that as extremely unlikely over six years of failing to do the exact same thing by the europeans. that is where the tension is. is achieved because -- it is an acute problem because officials are worried about iran. the views are different as to what will work. the israelis do not believe iran can be nuclear program. they are not willing to wait

endlessly. the obama administration says that the negotiations will not be infinite, but in the past, that has not been an easy thing to get out of. i think secretary gates is concerned about the potential for us that the israelis are considering. harris: if they did that, when they notify us first? >> i think they would as the attack was under way. i do not think they would ask for permission. even in the bush administration, they received negative the * from the pentagon. if israel decides to proceed, they will just simply proceed on their own. harris: i want to ask you about this timetable because the u.s. and israel are not necessarily on the same page. how much time the secretary gates give them to resolve this

issue? >> the administration has not commented specifically, but they are pointing to the g-20 summit later on. that would be a difficult time table from the israeli point of view, and if they take actual action, it could also come by the end of the year. harris: i have to say, the sticking point is about how differently the two countries view iran. ç>> i do not know if it is a question of being willing to talk, but rather and efficacy of the negotiating them out of their nuclear program. in that sense, he is no different than president bush. harris: thank you very much.

martha: we have all seen police helicopters circling overhead, but times are tough, so look at this new crime fighting vehicle. çit is a powered parachute cra. it uses motorized fans to keep it in the air. it cost about $30 an hour to operate. that is opposed to $15,000 an hour for a helicopter. police say they will use it for search and rescue operations as well as for surveillance. also up in the air are the astronauts are a date -- of the space shuttle endeavor. it looks like the shuttle is just sitting there. but wait until we tell you how fast it is actually moving.

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he french president nicolas sarkozy ordered to take a bit of rest after collapsing after drugging. he was exercising on sunday when this happened. he looks pretty good now. she is kind of scared, but carla bruni is also there. doctors say that it was due to heat and being overworked. he is in great shape as an avid biker and runner.

harris: he must be borne out -- worn out carrying all of her bed. officials have identified one man under arrest in the killing of the border agents. robert rosas was killed. ernesto parra valenzuela was arrested, holding a border agent-issued pistol. >> there needs to be protection in these areas. you do not leave these agents by themselves. harris: çrosas is the first agt shot and killed in the line of duty in 10 years.

martha: the crew of the space shuttle endeavor wrapping up their mission and their fifth and final space walk. you may feel like this is happening every day, and it is. those astronauts have been doing a fantastic job. they are very smart people. çthey did some repair work, fid some things on the shuttle, and only a handful of other flights have had five space walks. it is not easy to pack in as much as they did. they have a limited number of missions left over to complete their work, so good job. did you know the shuttle into orbit has a speed of 17,500 miles per hour? the fastest aircraft in the world was clocked at nearly 7,000 miles per hour. we have more from washington.

>> they started early and they ended early. one astronaut says that spacewalks are fun to him, as he used to train for them under water. another describes mountain climbing as one of his favorite hobbies which helps him. they are doing odd jobs now, including folding down the insulation and reconnecting electrical hookups as well as cameras. çhowever, the shuttle commander says that no one brings their guard down, no matter how small the task. this was the largest joint mission in space. 13 people in total. the shuttle is set to undock from the space station tomorrow

and return by friday. martha: thank you. harris: this was also interesting. the hubble space telescope carrying -- capturingç pictures of jupiter, showing the surface of the planet. an amateur astronomer discovered the impact zone. here is a close-up picture. nasa estimates the object was the size of several football fields. martha: it looks like somebody punched a hole in the side of jupiter. officials say it may have contributed to two accidents.

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captioned by the national captioning institute --www.ncicap.org-- we are watching several breaking stories. take a look at the top box. the cambridge police department is releasing the 911 tapes from the controversial event last week. we also have the radio traffic from that night. we are going to play some of that for you as well. if you have not heard it, the woman who called the incident in. in the middle box, ever public appearance by ben bernanke. he spoke out at a town hall meeting in missouri, so what exactly is he doing with this public campaign? in the bottom box, a virginia man has been sentenced to life in prison for joining al qaeda and plotting to assassinate george bush. he was arrested in 2005 but an

appeals court said that the case over concern thatç the sentence was too lenient. and congressional leaders trying to make up -- progress before the recess. democratic lawmakers say they need republican votes to put the health care reform through. gop members do not see what the russian is. among them is this and gentlegentelmanç senator jim d. thank you for being with us today. you have this group of six in the finance committee who are trying to hammer out a deal. can you update us on any progress? >> what i am most encouraged about is the american people seem to be saying they want health reform but not a government takeover.

if we can agree on that issue, we can arrive at a resolution quickly. so far we do not see our democrat colleagues doing anything to encourage competition of insurance companies or other things that would help individuals. we need to continue to sort this out, but at least we are having a good public debate. martha: i want to talk about some of the specifics. interstate commerce. why can't you shop out of state if you can get a better deal in another state? what are due hearing from your democratic colleagues, what do they not like about that? >> i brought this up as an amendment to a bill when barack obama was in the senate. they spoke out against it because they thought it was a race to the bottom. if i wanted to get a policy in

arizona and it is a high deductible policy, the democrats do not believe that i should be able to do that. the fact is, if we had interstate competition between insurance companies, prices would go downç and quality will go up. they say in order to have competition we need a government plan. that makes no sense. martha: do you think there is any movement on that issue? is that a deal breaker? >> i do not think they want the individual market to work. they voted against individuals getting theç amount deducted fm their taxes. there are several other things they voted against. they voted against a small business health plan. it is clear to me, working with democrats, yes, they want government to take over health care but they do not want the

personal insurance markets to work. martha: what about the public auctiooption? there were rumors before that that could be tabled for now. do you see that happening? >> that is a positive step but it is a wolf in sheep's clothing. then they turn around and say they are going to mandate all these requirements, including abortion and anything else on your insurance policy. that means private insurance companies would, in effect, carry the government plan. i was in small business myself. i also work with hospitals and physicians for years. there are easier answer that do not require a government takeover. martha: you said over a week ago that you thought this might be the president's water live, and if republicans could be tough on the issue, it would break him. in terms of public opinion, what

did you think about that now? >> this is not personal, and i like him very much. çif we can stop this government takeover, then maybe the president will come to the table and work with us on other issues. if not, he will run right through health care and cap and trade and other things on his agenda. we need the president to slow down and listen to the american people. we cannot allow him to socialized health care when there are better options available for people. martha: thank you for your time. and fair and balanced as always. we are getting the other side çfrom the democrat peter welch. henry waxman is pushing for resumption on that bill tomorrow. good to have you here.

you heard senator demand talking about some of those things that many of the blue dogs would be open to, including interstate commerce for these policies. if you make everyone available to sell their insurance, by nature you will get more competition. what is wrong with that idea? >> nothing, as long as they all play by a set of rules. the head of aetna made $24,000,000.10 year. if there is competition, do you want rules to deny you coverage or takes away your insurance? we are talking about a uniform set of rules that but apply in the health exchange so that every company would have to run a product that would give you insurance, and then they would

compete on the price. martha: can we compete across state lines? is that ok? >> as long as we have çcompetition based on price and service, as opposed to ripping you off and taking away your coverage, that is fine. you can do that if you have a uniform set of rules. martha: do you hear other democrats' opening up to the option of interstate competition? you are one of the first i have heard say that this could happen. >> when we are talking about is regulating the insurance market, so this is a uniform set of rules that need to be applied. çmartha: if you have more competition, because i know that both sides want competition and it seemed the democratic side wants to create a public entity

that would compete against insurance companies, but if you open it up across state borders, that may lower the overhead cost because it would increase competition. >> the way insurance companies compete with one another is by having some effort to insure you are healthy and can afford it. even under senator demint's plan, if you have a pre-existing condition, the taxpayer would pick up the difference. insurance companies have made a lot of money by avoiding risk. but we are talking about is having all of us be in that pool, we pick among the insurance products. a public plan would have to play by the same rules, and that means that you can still get coverage even with a pre- existing condition. i think americans are entitled to that, with or without interstate competition. martha: let us hit on another important issue, the cost.

i spoke to brit hume a few moments ago,ç and he says the stimulus package broke the bank. he has said a lot of people believe there is not of not -- not enough money to pay for this. do you believe that this will just put us into a worse situation? >>ç the cost is an issue. of course, we all the knowledge that american need coverage. most of us are of the view that we need to pay for -- change the system. we have a lot of volume. we have a lot of procedures that are unnecessary and are not even helping people.

so the cost issue is urgent, but the way we attack that is by looking at the delivery system. right now we spend too much money and it is not sustainable. martha: thank you very much for being with us today. now that we have heard from both sides, a new fox poll showing how americans feel about congress. 60% disapprove of the job congress is doing right now. 30% believe they think congress is doing a good job. çharris, a swine flu scare hitting buckingham palace. three members of the staff serving the royal household diagnosed with h1n1. we are live in london. what is happening right now? i understand the queen is

traveling with meds, just in case. >> that is right, she has her çphysician and those antiviral with her. they were urging caution with this story, saying they have over 1000 people on their staff, and they are in touch with the public and it is likely that some of them came down with swine flu. they emphasized none of the royal family was affected, but that they are of all normal, just like anyone else. there are 100,000 people who have -- 100 people who have displayed signs so far. harris: now we are hearing warnings from health officials. they are going to start testing and international airports? >> that is right. travel is a big problem with this.

people are contracting the disease at airports, but also train stations and other public places. i think health officials are saying, do not panic. if you have the symptoms, stay at home and seek help through your telephone or internet. many international airports already have temperature screening in place to see if anyone has a bad fever. if they do, airlines are being warned to not let them trouble. -- travel. çthank you very much. we are not even in flu season. thank you. martha: you are on your way to work and the last thing you want to worry about is if your driver is playing -- paying attention. we have all seen this

disastrous situation from someone texting or falling asleep. wait until you hear how widespread this is. @=h

martha: it has been a long summer for robert gibbs. çhe says he does that have specific guidance yet about when that beer is to have been between professor gates and officer crowley, but he hopes it will be this weekend. in the middle box, good news for home sales. home sales went up 11% in june, the largest monthly increase in nine years. remember, previous years were pretty tough. there isñ look at the dow jones. down about 12 points right now as they continue to take a look at new regulations with regard

to financial regulations -- with regard to short sales. harris: we have been hearing stories about bus drivers and train conductors, but they are making news for all the wrong news. they are causing accidents while texting on the job. local governments are already banning them from the local operators, but federal agencies to want to do it say that they are hung up by red tape. this does not make any sense. it cannot be safe to do this. >> definitely. it is not a new phenomenon here actually. this has been going on for some time. the recent crash could have been avoided if recommendation were followed years ago. the ntsb, which investigates

every significant accident recommended in 2006 that the government banned the use of cell phones while they were operating theirç vehicle, this after a driver hit a low overpass and ripped the roof off his boss. the ntsb has no a door tory -- bus. the ntsb has no authoritative responsibilities. the boston driverç admitted to texting his girlfriend before the accident. this is three years after the agency strongly urged banning the use of cell phones by operators. harris: this is common sense. 57 messages? >> that was over the course of

the day. but apparently one of less than 20 seconds before the crash. chuck schumer of new york is not introducing a bill to put a stop to this nationwide. it would ban train conductors and bus drivers from texting on the job. he says that it is irresponsible and extremely dangerous. this bill would limit their ability to do that on the job. as you said, it should have been done years ago. harris: 57 messages, it takes to a couple seconds to even think about what you want to write, so you are really not paying attention. trying to make a difference. let's hope it does not take another three years. >> the people that take pictures with their cell phones, they are great. harris: thank you.

a tragic accident in westchester county. in many been driving the wrong way on a highway causes a head- on collision, killing eight people. çpolice are trying to figure ot why the 38-year-old woman was on the wrong side of the highway. the minivan was full of kids. a five-year old is the only person in the vehicle to survive, but he sufferedç from severe injuries. meanwhile, ben bernanke doing something that no fed chairman has done before, holding a town hall meeting. here is what he had to say about the move to rescue some companies that redeemed too big to fail. >> if you allowed a financial firm to collapse in the middle of a crisis, the consequence for the average person are severe. harris: so why is he on the

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martha: this is raising a lot of questions. it is ben bernanke like you have never seen him before, appearing in public at town hall meetings, defending the government's response to the financial crisis. >> i am not going toç be the federal reserve chairman who resided over the second great depression. i am as discussed at about this as you are, and it is critical, that as we go forward, we put in a system that when a firm does not succeed in the marketplace, that it does not fail. i support that 100%.

martha: why the unusual public appearance? we all sort of grew up on fed chiefs who were pretty quiet. i remember president bush saying the same thing, i did not want to be the president who presided over this depression. i wonder who crafted that phrase? >> it could have been hank paulson. it really scared a lot of people, and it got there policy through pretty quickly. martha: we still do not know. it could have been a huge mistake. >> which one? martha: t.a.r.p., bailing out

the companies. he said that he never wanted to do it, so why did he do it? ç>> they will be playing this meeting over pbs for the next few nights, but you will hear him talking about navigating between two different stories. he may push the ship too far to inflation, and by the way, and that inflationary cycle is even worse than what we are going through now. harris: there has to be some history of doing this. maybe educating the public. >>ç he is up for reappointmentn february. it will either be him or someone else. he said that he had to hold his nose when bailing out these

institutions, but that is not the way that we saw it earlier. martha: he would not be out there without the administration's approval, though. >> by the way, i want to know what went on behind those closed doors meetings with lehman brothers. martha: if you can find out, let us know. >> no one could figure out why bank of america bought merrill lynch. martha: that is a book waiting to be written. thank you. harris: in her first day as a private citizen an, sarah palin says that she is not giving up in what she believes in. >> i will be able to fight harder for you and for what is right. harris: so what is next for

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harris: we are followingç two g stories. the first one is in cambridge, massachusetts. it is the 911 call that the woman made when someone was breaking in -- so she thought -- of that home of professor gates. what was really said in that phone call? we are finding helout. apparently, they will be holding another news conference? >> police and just read rate -- released this information. they released the tape to erase any lingering doubt of what was said. officer crowley has also returned to work. city officials say that today is

the day to move forward. harris: now let us go to jennifer griffin who is falling secretary gates' trip in the middle east -- following secretary gates'trip in the middle east. >> israel's defense minister after meeting with gates in israel said that all options are on the table for israel to deal with the iranian nuclear program. harris, thank you. martha: sarah palin goes out swinging. the former governor left office yesterday, taking some parting shots at some critics in the media -- at some of her critics in the media. we have a report from alaska. >> sarah palin was again quiet

about her future. she did say, however, that it çappears she wants to remain in the public eye. she wants to exercise her free- speech rights, and then she'd ripped and those in the news media, saying that they lied about her and her family. she said the pressing issue of the day is energy independence, and it can be accomplished without destroying the environment. >> we can't resist enslavement to federal government's. be wary of accepting government largess. it does not come free, and often e everything that is free. >> her popularity outside of alaska has really suffered lately. a recent poll shows only 38% of

americans have a favorable opinion about her, even if those jobs are vice-president and homemaker. still, her political action committee has raised over $1 million, and her committee has a presence in 40 states. those who are supporting her are saying, never say never. martha: thank you. for more on this, we have a former campaign manager for mike huckabee. you have been down this road. you managed a great campaign. in terms of going through this process, looking at sarah palin, do you know what she knows what she wants to do next? >> i think so. that was a campaign stump

speech. it was not a good buy to alaska. it is about what she wants to do going forward. that is what she is doing now, putting together a campaign structure. she will be writing a book, she will be making speeches. if you want to put together a presidential campaign this early, you need to decide when your trip to iowa will be. martha: we mentioned some of the poll numbers. maybe we can take a look at them. they are declining on a national level. 54% in september. ç38% in july. >> she has had a huge target on her back ever since the auction. i think she can use this chance to reinvent herself and see if

it is possible to run for president. she really needs to see what she needs to do today. martha, do you think she is going to be successful at that? people said to her after the election, it needs to be more about substance, more about policy. çshe did one energy speech, but nothing much to move herself out of that realm where people could consider her as a president. >> she has the ability to rally our party like no one else. she has made a couple of trips to new york, to washington, and has gotten some good press and bad press, but she needs to worry about what is happening in

the immediate future. she is letting everything else dictate what she is doing. martha: she also hinted that she would help republicans or democrats, whoever is speaking the truth. any chance of an independent campaign here? >> i do not think so. there would be a very small percentage of people who would follow her outside of the party. martha: it is so early on, and we know so much of this has to do with name recognition. pretty strong numbers there. sarah palin comes in at 70% is an encouraging? >> she would rather be there than haveç nothing.

and these are the people that people know because they were on television. martha: i wonder if it is a bad strategy to be too out there. >> when you become the front runner, you may as well have a target on your back. martha: you have the newt gingrich side ofç the party and the sarah palin side. they are very different. some say she is more driven on personality. which side are you more convinced on? >> she knows what her weaknesses are, and that is what she needs to focus on. if she wants to be president, she needs to focus on the substantive issues, focus on

organizational issues. if she can do that, she has a great personality and lots of people love her. martha: thank you for your insight, as someone who has been there. nice to have you with us. harris: so you are laying on the beach having a great day, so imagine seeing this? we will tell you what happened after beachgoers spotted this problem t car insurance company in the nation. but, it's not like we're kicking back, now, havin' a cuppa tea. gecko vo: takes lots of sweat to become that big. gecko vo: 'course, geckos don't literally sweat... it's just not our thing... gecko vo: ...but i do work hard, mind you. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad, 'specially if it's marked "the gecko."

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harris: welcome back. let me tell you what is happening. in the top box, nancy pelosi and democratic leaders set to brief the media on health care. of course, we will let you what is happening there. nancy pelosi said recently

health care is like another stimulus package. in the middle box, defense secretary gates is in the middle east where he tried to reassure israel on the u.s.-iran strategy. the two countries sees the strategy pretty differently. çin the bottom box, the u.s. ny is warning about increased pirate attacks off the coast of somalia. monsoon season is coming to an end, which means that the tax could start to increase. of course, we know that they are currently holding about a dozen ships. there are no car chases happening, so trees calendar is probably not too excited. çmartha: i'm going to start driving. how was your weekend?

>> pretty awesome. i've played a lot of tennis. we are going to have the judge. we are going to look at two things. laws in the state of massachusetts and what could be in question. secondly, he is a constitutional scholar. we are going to talk about the constitution and what it says in the fourth amendment and other places about secure yourself and what you can do in your own home, how far the government can go. martha: there is this whole thing about being in your house and then walking on the porch. according to the police report he says he was walking away and then the press up -- professor followed him out. >> and the lesson for us all -- not that we need itç -- is that

early reports of an incident are often incorrect. i remember reporting exactly what we were told, that in 911a1 caller said that sheç believeda burglary was happening. she did not mention race at all. i hope that someone would make a similar call if thatthis was happening to me. it all comes down to opinion. that is why we are going to stick to the laws. we have some fascinating information for you. martha: thank you. we look forward to it.

harris: we are watching all of the breaking news coming in, including this story. plaxico burress could be going to prison. the new york district attorney wants him to spend two years behind bars. you may remember he accidentally shot himself with an unlicensed gun. his attorney is promising to fight theç d.a.'s recommendation. here is one way to clear the beach out fast. take a look at this waterspout. they can be very dangerous because they form over water and it is difficult to see what direction they are moving.

it was dumping rain off the shore at the time, and water çspouts like this are not uncommon, but can start tornadoes. a few tense moments. no one was hurt, though. wounded iraq veterans are supposed to get medical treatment for their injuries, but what happened when they need more than drugs and surgery? how world war ii veteran is them some new friends. (announcer) before they give you the lowest price, with memberships and fees. but not walmart. they have hundreds of generic prescriptions for just $4 for up to a 30-day supply and no gimmicks. save money. live better. walmart. as we get older, our bodies become... less able to absorb calcium. he recommended citracal.

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harris: welcome back. in the top box, nancy pelosi and democratic leaders said to brief the media on health care. this is something we are watching for. itç is a hot topic that is

causing all sorts of debate. and it is occurring among democrats who are not coming together in any hurry on this issue. in the bottom box, barbara mikulski underwent surgery for her ankle today. doctors anticipate a full recovery. in the bottom box, you saw the video, astronauts breezing through their fifth and final space walk. martha: this is a great story. wounded soldiers returning from iraq may get the medical care they need for serious injuries, but veterans with a vision loss need something the government currently will not pay for, and that is service dogs, like this little guy. a world war ii veteran is trying to change that, one dog at a time. what can the dogs do that can

have such a big impact? >> it is not just the returning soldiers from -- with vision problems, but many of them can no longer walk properly. there is one trooper that had over $30,000 in training, so there are very valuable. on an emotionalç level, they cn really help your attitude. psychologically, they are truly beneficial. also, physically, they can sense certain things, such as a distress. sometimes they can even wake them up from nightmares, in the case of ptsdç victims. martha: tell me about this

veteran. how did he get involved? i imagine it was a pretty big expense. >> this is the first bill that al franken is introducing. it will be allocating some federal dollars to make these dogs available. the veteran was over germany in his last mission, and he was shot down. he survived and was able to come back to the states, and a few years ago, he realized that veterans were not getting enough help. he needed people to help pay for these dogs. martha: you look at all the things the government is spending on, it seems like this is something that they should be doing.

this is sort of required for those people who need to get their lives back on track. it is an inspiring story. çgreat work that he is doing. it is strange to have here in the studio. maybe we need a fan. can we make it look like he is in miami? trying to provide a natural environment. you will be back on the beach tomorrow. çharris: watch out for those waterspouts. martha: wait until you see these monster waves hitting the beach. look at them. look how small the people are. great surfing, very dangerous.

but how a day at the beach turned into an emergency. . ?7 .

martha: one of the things that presidents get to do -- welcoming the w nba champions -- the wnba champions. senator sessions has announced

that he will vote against supreme court nominee sonia sotomayor. in the bottom box, penn state university is now the number one party school, snatching the title away from the university of florida. doe, penn state. -- go, penn state. harris: surfing fanatics call it the wedge, but this weekend, lifeguards were calling it dangerous. waves topping 15 to 30 feet high. it is gorgeous down there, but it got really chippy. the kind that only comes out every five or 10 years. the kind of danger that surfers could not wait to get in. lifeguards had their hands full conducting hundreds of rescues. one body server was even killed

when his body slammed into the rocks. -- one surfer was even killed. martha: i like to ride waves, but those are not ones you want to mess with. thank you, everybody, for watching today. thank you, harris, for being here today. harris: i will be back tomorrow. we will see you next time. right now, though, "studio b." shepard: brand new details in the racial controversy that has taken the nation by storm. the arrest of an african- american harvard professor and explosive aftermath involving the president. the story has taken a new turn as we hear the 911 call that sparked the whole thing. we know the police did say gates was being uncooperative, and there was almost no mention of race whatsoever. first, quick back story -- professor henry louis gates, jr., arrest