glancing blows. 2012 rivalry already unfolding over health care between them. jane: carl cameron, thank you. rick: that does it for us this hour. thank you for having me. jane: "the live desk" is up next. martha: welcome to "the live desk." gregg: it is good to see you, martha. martha: check those boxes on the right-hand side of the screen. we are seeing all those stories coming around into these 3 boxes. in the top box, here is what you have. we're waiting for a briefing from nasa. it is the final day of the space shuttle endeavor mission. we're going to see how they are doing and if we will see landing tomorrow. in the middle box, tensions once again simmering today in iran.

there are reports that the police are firing tear gas at anti-government protesters. these clashes coming during a memorial. you probably remember, she was the young woman who was killed during last month's post- election violence. frightening new assessment just coming in from attorney general eric holder about the threat of homegrown terror. we will tell you what the government is now doing about this. gregg: our top story this hour, lawmakers in both houses on capitol hill are working out the details of the health-care overhaul right now. this is conservative blue dog democrats breaking a week long stalemate. speaker nancy pelosi oncwants a vote on the bill. some are saying that the plan is not ready for prime time. james rosen is live at the

capitol. let's cover the house side of things. an important meeting got under way. it is expected to go late into the evening? >> that is right. the meeting we are talking about is the markup session for the house energy and commerce committee on this program. we were reporting about this breakthrough between the chairman of this committee, the very liberal henry waxman of california, and four of the seven fiscally conservative democrats on his panel. they were able to get to a marked session where they are finalizing their version of health-care reform. it would be the third that the house has produced among three different committees. it is not always an amicable affair. >> if you just look at the congressional budget office's own testimony, maybe some radical blog is telling you that you will not pay taxes, but the congressional budget office will say that you will pay $800 billion. >> i do not even understand the

message. it is what we call gimmicky. it says it is doing something. >> there was another interesting moment in this session where charles rangel, the chairman of the house ways and means committee, which has already put forward its version of the health care reform bill, showed up at this markup session. why did he show up? one of the republicans on the committee put forward a proposed amendment that was rejected that would have affected the taxation plan that charlie rangel put forward in his committee to pay for health care. gregg: somebody stepped on his turf. over on the senate side, the health care train seems to have come to a stop. what is up there? >> we were expecting more meetings on the senate side of things among the gang of six.

that is the committee that is taking up health care legislation. what we have heard is that one of those members of the gang of six, mike enzi was meeting with charles grassley and one of their colleagues on the house side. they said that the senate version that is being debated is, in the words of mike enzi, a train wreck. the senate side will not likely put forward its version of health care reform before the senators leave for the august recess on august 7. gregg: that is a good quote. finally, what do you think is in store for medicare when all of the dust settles on capitol hill? >> we are paying such close attention to the operation of these various committees.

once they are all done with their markups, they will have to reconcile their various bills on each side. the two chambers will get together for a conference. eventually, they will come up with something they will send to president obama to sign or veto. when the dust settles, everyone imagines that there will be some need to reform medicare. it is spiraling out of control in terms of cost. it covers about 50 million americans. whether or not a real meaningful reform comes to medicare will depend on whether there is profiles in courage among the lawmakers. elderly people vote more reliable -- more reliably than any other kind of american citizens. 71% of people 59 or older voted. gregg: in deed. thank you very much.

martha: the white house is dealing with poll numbers that are going in the wrong direction. there is a series of these polls. this one says that 45% of the people who responded, they think that after this is said and done, their health care costs are going to rise as a result. 30% expect them good -- to go lower. 14% think that the costs will not change at all. let's bring in steve forbes. >> good to be with you. martha: what is your take on this? we have about six different versions working their way around congress. >> i think it is a good thing that so many versions are round that they cannot get full agreement. what they have been proposing will worsen health care in america, not better it. government cannot control costs except by rationing. they will eventually do away with private insurance plans.

it will mean higher taxes. also, it is going to hurt outcomes. in america, if you get prostate cancer, you have a 92% chance of recovery. this is a real life or death issue. it is a good thing that we're slowing that train down. martha: in the beginning of this, we heard a lot about a public auction. that idea seems to be moving to the wayside. what seems to be replacing it is this idea of co-ops, around the country, nonprofit organizations that would pool their resources to help people that were not part of the plan get in on a plan. is that a good idea? do you think it is a max for the public option, as some say? >> there is where the details are going to matter. that is where they slip in a lot of junk and things that can end up being backdoor nationalization.

it was a provision allowing bounty hunters in medicare where you get in a car accident, they can sue the person who causes the accident. that kind of thing -- these bills are riddled with that kind of stuff. that is why a free market solution, since it is allowing people to purchase health care around the country, is a good step in the right direction. martha: are you in favor of these co-op plans? >> it sounds nice. it has a nice ring to it. when the government is running too -- is running it, you have to make sure you still see your own dollar. martha: he would prop -- president obama would probably say that you are scaring the american people. he says that nobody is going to lose their health care insurance if they do not like the plan. >> at the cbo has blasted away the illusion that this is going to be revenue-neutral.

in terms of scaring people, what is scary is what he was proposing, a back toward nationalization of health care, not telling the truth to the american people. he says you can keep your own health insurance. that is not true. in five years, the government will regulate what kind of insurance you can and cannot have. if you leave your job between now and then, you will have to get a government-approved plan. he is not telling us the truth. martha: just switching gears slightly about whether president obama is pro-business or anti- business. he sat down with another business magazine recently. here's a quote from that interview. "a number of those who think we are anti-business seem to forget that it was just 3 or four months ago when at great political expense, we yank them out of the fire. and they still, at least if

there in the financial sector, are enjoying a whole bunch of government guarantees that are propping up their business models." what do you think about that? >> i think he is all over the map on that one. he is anti-business in terms of raising taxes on small businesses and millionaires like myself. yes, he inherited a bad hand. george bush made terrible mistakes in the past year. this administration has not done much to correct those mistakes. the stimulus bill has not done much stimulation. martha: he said, want people who say that to look at my record. so far, my only tax policy has been to cut taxes for 95% of working people. i have not signed a bill that raises taxes yet. to the extent of the half put in place policies, they have been directed at helping businesses.

>> that so-called tax cut is it one time rebate, which as we know with george bush's tax rebate, they do not put the economy on a sustained passport growth. he wants to raise upper income tax levels to help finance health-care reform. the bills coming to the house and the senate are all pro- taxpaye increases. in terms of helping out a business, the best help for business would be having a policy of a strong, stable dollar, reducing regulatory burdens on people. he has advocated for cap-and- trade, which is a massive tax increase on energy and would be very harmful to the future generations who do not want to be underwater -- martha: let's take a look at this recent piece of sound.

>> the letters cover of newsweek says "the recession is over." i bet you found this news a little startling. i know that i did. obviously, people are going through a tough time. what is true is that the economy has stopped going through the free fall that we saw at the beginning of the year. the market is up. the financial system is no longer on the verge of collapse. we got news yesterday that for the first time in three years, housing prices have actually gone up. when i took office, we losing jobs at nearly double the rate that we're losing them now. so, we may be seeing the beginning of the end of the recession. martha: we only have a cute -- all have a few quick se conds left. >> it was very different

rhetoric. we are now in a recovery phase. given the magnitude of the fall, it should be 6%. small businesses are still suffering a credit crunch. consumers are still not able to credit -- get credit the way that they should. the prospect of tax increases is going to hurt the pace of recovery next year. if congress took a one-year vacation, we would probably see a vigorous recovery. martha: thank you very much for being with me. gregg: can i take that one your vacation? this shuttle endeavor about to wrap up a two-week mission. we will have a live update on the landing perhaps under way and why the government may be wasting billions of your tax dollars on nasa's new rocket. a tornado ripping through an area that does not usually see

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gregg: the associated press is reporting that brazilian police are ruling that the death of a boxer arturo gatti is a suicide. police have ordered the arrest -- the release of his wife who was suspected of killing him. she has been behind bars ever since. she will be released. it is being ruled officially a suicide. martha: that is an interesting twist. from romantic mountain getaway to tragedy. take a look at this. dramatic video that has just come into fox. it is the left of -- it is what is left of a farming community.

it was a rare and powerful tornado. take a look at the damage done here. impact 135 mile per hour winds. it ripped off the roof. it took down some of the buildings there. three people were injured during this tornado. hundreds of people are still suffering with no power in the area. it came right through new york city, the band of really powerful storms. rick: we are awaiting word on nasa. we are waiting to find out if all systems are go for the space shuttle endeavor landing tomorrow. nasa has spent years and billions of dollars in designing the rocket that is supposed to take astronauts back to the move. a white house panel wants engineers to come up with some brand new ideas. you are so lucky to be there.

give us an update of what is happening. >> it is nice. the commission created by the obama administration to assess the future plans in space is meeting here today behind me. kennedy space center is not too far away from here. it has surprised many, 1st telling engineers after millions of dollars to come up with some new options. this week, panel members say that there is absolutely no way that nasa is going to get humans back to the international space station by 2015 or the moon by 2020, as is the current plan. the constellation program is what replaces the shuttle fleet, set to retire next year. the rocket will carry the orion capsule into space. the first test flight has now been delayed from next month until halloween. engineers say that computer

models show that -- the rocket will be a violently as it goes up. the rocket will be the largest ever for nasa. it will take heavy cargo to the space station. with all of these issues, the obama commission is now saying that maybe we should extend the life of the space shuttle fleet. currently set to retire in 2010. maybe one additional flight in 2011. currently, seven remaining shuttle flights on the agenda. one astronaut is saying that maybe we should continue the shuttle missions until 2015. as soon as they are retired, americans are going to have to rely on the russians to get to the space station. gregg: thank you so much. martha: it is happening.

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martha: this is a great story of survival in the wilderness. if you have ever wondered if you would be able to tough out a situation out there, listen to this one. boy scouts were on a trip in colorado when their diabetic scout leader became very ill. the boy's wound up whipping together a stretcher that they wait -- that they made out of their sleeping bags and they've written it all together. -- as they rigged it

altogether. joining us is the leader and two of the scouts who brought him to safety. congratulations. >> thank you. martha: let me talk to you first. what happened to you? >> as the trip went on, i became more and more dehydrated. after four or five days of not holding water or food down, everything went bad along with the blood sugar. i became weaker and weaker. the last day, we needed help to get out. these guys stepped up to the plate and they did it. martha: what was going through your mind? were you scared? >> we were not really scared when it was happening. we did not know how bad it was.

we were just doing whatever we could to get him off of the mountain. there is no question that we would do whatever we could. martha: the doctors said that he was very close to death at one point. what do you think about the fact that you guys contributed to saving his life? >> in that sort of situation, you do not have time to think about emotions and things. we both have a first aid merit badge. it is the type of thing that you always learn to recover scouts and boy scouts. when they learned that we got off the trail, personally, it hit me then that it could have been very bad. we got him out in time. martha: what does all this mean to you as a boy scout? you were tested in this way. >> it is what we have always

trained for. we were prepared and we stepped up and we did what we had to do. martha: is there a special badge for this? >> they do have a special heroism award that these boys might be eligible for. martha: thank you for the work that you do with these young men. you have done a fantastic job. i know that you have been a true leader for them for many years. keep up the good work. great job. >> thank you. gregg: they were gathering to remember the woman who has become a symbol of opposition. iran's hard-line government answered with violence today.

martha: we are all over the news

room. jennifer griffin is walking -- watching a story about the defense bill. what is that about? >> the house defense spending bill has $6.9 billion of planes, helicopters, and weapons systems the pentagon said that it never requested and does not want. the president is threatening to veto the bill if those unwanted systems are not stripped out. among those is a marine helicopter that would cost $500 million. martha: let's go to molly henneberg who is covering the department of transportation. they use all of our tax dollars to fix bridges and all of the infrastructure. what are you finding out? >> $2 billion for bike paths and pedestrian walkways. even $28 million for transportation museums. two republican senators say that is not the way the highway trust

fund should be spent, especially in an economic downturn. the department of transportation spent a total of $78 billion from that fund over five years. senators say that it is time to prioritize where the money goes. martha: let's go to the white house where mike emanuel is standing by. what is going on, mike? >> the white house beer summit is expected to last less than an hour. they are expected to sit down and talk things out. the president is not here to mediate any apologies. he clearly hopes that this will diffuse a tense situation. martha: we will be watching that one at a picnic table today. back to you. gregg: attorney general eric holder is speaking about the government's bust of what is called a ring of aspiring homegrown terrorists in north

carolina. accused of traveling to pakistan training with a militant group, plotting violent jihad. the attorney general offering his assessment. "that is one of the things that is particularly troubling. this whole notion of radicalization of americans. he goes on to say, leaving this country and going to different parts of the world and coming back in aim of doing harm to the american people is a great concern." president obama spent a good deal of time on the campaign trail speaking out against the bush administration policies. when it comes to security, the current president is extending several policies of the previous administration. let's bring in a terrorism expert. the current president, when he was a candidate excoriated president bush for many of the

anti-terrorism policies as if to suggest that the threat was not real. we're hearing, the american people would be surprised by the depth of the threat. is this yet another case of a candidate becoming president and then getting the truth? >> i think so. in the interview, he said that the homegrown terrorists threat is looming larger now than it was a few months ago, which is indicative of someone who is just learning about these issues. having followed this for quite some time, there is nothing new that has happened in the past few months that changes my assessment of from where it was in 2008. it is not as though homegrown terrorism is something that was not there before. gregg: we could bring up the sound bite of candidate obama ripping into president bush for his anti-terrorism policies. i have made a list here of the anti-terrorist policies that

this administration has now adopted from the bush administration. is it fair to say that this is a current president who has adopted the good practices of the previous president? >> no. that is another aspect of the interview that is completely in -- that is interesting. he said that the bush and administration left them with a very good answers -- infrastructure for carrying out counter-terrorism policies. one is that this is a president was very focused on his domestic agenda. i do not think he wants national security to derail it. he is keenly aware that if he on does a lot of bush administration policies on

counterterrorism and there is another terrorist attack, he understands that is the end of his presidency. gregg: are you concerned that he is so focused on his domestic agenda that national security and anti-terror campaign efforts might be compromised? >> he is maintaining a lot of what the bush administration is doing. he is staying the coaarseourse r the most part. there is much more of an effort at engagement. i'm concerned they might be taking their foot off the gas a little bit, going after terrorists in certain parts of the world. it is too early to make that judgment. i am, however, if a little bit worried about that. gregg: candidate obama criticized president bush for taking his eye off the ball, to use the current president's terminology in iraq and not

focusing on catching osama bin laden in afghanistan or the mountainous areas on the border with pakistan. is this a president who does not put his eye on that ball yet? >> i did not agree with the criticism in that regard. president obama's policies have been focused on the pakistan/afghanistan reason. that is a really difficult region to formulate a good policy to. he has continued the bush administration program of carrying out air strikes against high-value targets. that is a really difficult theater. right now, he is listening to his generals and i hope he continues to do so. gregg: thank you so much for being with us. martha: here we go again. iranian police beating and using tear gas on about 1000

demonstrators. police also arrested more people out of those crowds today. this is an amateur video that just got into the newsroom, reportedly showing this violence. the opposition angrily setting fire to trash cans after trying to hold a memorial rally at a cemetery in tehran. it was held at the grave of neda, a huge symbol of the opposition. she was shot and killed during last month's street rallies. what happened there today in iran? >> neda has become a huge symbol. it marks 40 days since she was shot dead. today, supporters of the opposition movement trying to go to her grave site. police did try to disperse the crowd. they used tear grass -- be used teargas and batons.

it is interesting that six weeks after the dispute developed, the anti-government movement is still going strong. martha: tell me about the political situation and what we should expect next out of tehran. >> we're expecting an inauguration ceremony next week. president ahmadinejad will get four more years in office inf. it is not a smooth ride. already, we are seeing splits in the powers that be in iran. we're seeing president ahmadinejad's chosen vice- president -- he might not last the full four years. martha: it will be interesting to see if the ayatollah continues to support him. thank you very much. gregg: north korea now has its

very first fast-food restaurant. it may look like this sort of fast food places we have here, but the north korean regime does not want its people ordering american icons. they call it minced meat and bread. martha: what do you think is in most hamburgers at fast food places here in america? it looks very much like it. gregg: most north koreans will not be able to eat that. the other thing is, kim jong il, who apparently loves gourmet food, just ordered the opening of the very first north korean and italian restaurant. you have never had italian food, thai food, all the others.

martha: those people do not even have the basics. gregg: they probably have never heard of pizza. martha: it costs $1.70 to get one, which is twice the daily in, of your average person in north korea. gregg: i am going to stick with my burger at the in and out. martha: after a day of record temperatures, there is more dangerous heat. there is the needle in seattle. the northwest is having a huge heat wave. there are reports of tornadoes in the northeast. some people said that they saw one in new jersey yesterday. janice dean is going to be here with the very latest. you can get all of the latest breaking news if you keep your computer at foxnews.com. you will get all the information

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martha: here are some of the brand new items coming into the newsroom. in the top box, the no. 3 republican now breaking with the rest of his party's leaders to support supreme court nominee sonia sotomayor. in the middle box, they're getting ready for the daily briefing. we're keeping an eye on that for you. in the bottom box, the police are keeping up a search and recovery effort for survivors from that horrible shipwreck of a haitian migrant best -- haitian migrant vessel. 118 were rescued. 70 others are still missing. this weather question for you, how hot is it? it is so hot in parts of arizona

that the pavement is literally tearing into a tarry goo. a private contractor has been pouring onto the asphalt trying to get the sludge to solidify. neighbors say that it has been making it worse. it makes it harder when the weather cools. gregg: i bet that you could hard -- you could fry an egg on the sidewalk. has anyone ever tried that? martha: tell us about seattle. gregg: we always think of seattle as cool and breezy. the mercury is hitting 100. it is the highest reading since they started keeping cords back in 1891. checking on the homebound elderly and doing everything they can do to cool down. today's temperatures will be relatively balmy just under 100

degrees. martha: we have not had any of that here. gregg: it has rained almost every day. any relief for the people in the northwest? >> you are not blaming me for the weather. in one part of the country, it is hot. it is a balancing act across the midwest. this is dangerous heat for a lot of people. they do not typically see 100- degree heat. they do not have your conditioners. the elderly, checking on kids, heading to cooling stations -- all a good idea. the all-time record in washington from any day of the year. they have never hit 108 degrees since records started. portland is at 106 degrees.

here are your watches and warnings. all the way down interstate 5. dangerous he is going to continue today. through the weekend, we're going to get a bit of relief from an onshore flow. temperatures are still going to remain above average. it is 75 degrees in seattle. it is 84 degrees. 96 degrees in seattle. this is about 25 degrees above what they are at normally this time of year. tomorrow, a little bit of relief, but 93 degrees is not much. 97 degrees in reno, nevada. we are covering the severe weather that we saw. we saw tornadoes in pennsylvania and reports of tornadoes in new jersey. we are seeing the potential for severe weather across the deep south today. a lot of whether to cover martha: why is it always cold in

san francisco in july? gregg: i lived there for eight years. the bay water, which is in land is cooler. it sucks in -- martha: fantastic city. gregg: it is really amazing. it is cold. you have to have a parka. when we come back, the man who led the u.s. response to swine flu giving a sobering warning as parents get ready to send kids back to school. what he says to expect and how to keep your family healthy. also, some breaking news out of the baseball world. a big slugger apparently testing positive for performance enhancing drugs. we all suspected who it was. .

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gregg: two big names, according to "the new york times" were on the list of 100 players that tested positive for performance enhancing drugs in 2003. back then, major league baseball agreed to test anonymously with no penalties. 100 players tested positive. we never knew who they were. the names have been slowly leaking out. now you can add two big names to that, david ortiz and manny ramirez. manny ramirez is now back

playing for the dodgers after a 50-game suspension. he is now failing the drug test in 2003. martha: as we head into the fall, you will hear a lot more about swine flu. we have a grim warning from health officials. they say the old price of swine flu this summer at the summer camps is just a preview of what is to come when the kids get back into the classrooms in the fall. the situation could be worse than when the virus started in the spring. dr garner was here yesterday. he said they think it may be mutating. a couple of cases have been completely resistant. marianne silber is tracking the h1n1 virus. >> according to dr. richard dbesser, hundreds of cases

of swine flu work identified in kids and summer camps. it appears to be spreading much faster among children. there's an urgency to get the board out because kids will be going back to school in the fall to the doctor who oversees the flu vaccine program out at the cdc says the cases could far surpass what we saw in the spring. >> we are expecting increases in the disease took her. -- to occur. >martha: what about these vaccines? we hear there are five different companies working on it. does it look like it will be enough? when can people start getting them? >> there's a sense of urgency. they say that they are hoping to

have as many as 40 million doses available by september. it is not enough to cover some of the high risk groups that we have talked about, health care workers, young adults, but they do not expect people to rush out and get the vaccine. martha: we will stay. thank you very much. gregg: this is something you do not see every day. check out the newest employees at the sherwood forest golf club in north carolina. instead of a golf cart, you can rent a llama. martha: i love this story. this is in sherwood forest. gregg: it cost $40 for nine holes. it is a great price, but they do not help you take out a golf club. they probably do not have any advice for your swing.

maybe that is a good thing. martha: i love the story. it is funny. it is really too. a much more serious story to tell you about. again update on the story we have been falling on the black panthers. they were accused of intimidating pennsylvania voters during the election on the day that president obama was elected. the charges have been dropped for some reason to get everyone is trying to figure out who made that decision for this case. they have nightsticks. gregg: and they were caught on tape. to stay in tune with life after 50, i switched to a complete multivitamin with more. only one a day women's 50+ advantage... has gingko for memory and concentration...

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call now for your free information kit... and medicare guide and find out... how you could start saving. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- martha: you are at the "live desk." i am martha maccallum. gregg: i am gregg jarrett. in the top box, it is a good day for investors. stocks are up on wall street now withstand the new unemployment numbers that show the jobless claims on the rise. martha: in the middle box, michael vick says he is close to signing with a nfl team. he was reinstated this week after he did time for being involved in a dogfight in grain. -- dogfighting ring. gregg: in bottom box, "the new

york times" reporting that david ortiz and manny ramirez tested positive for performance enhancing drugs in 2003. one year later, they led the red sox to the first world series win in 80 years. martha: the story of the three black panthers accused of intimidating voters on election day. the justice department's unexpectedly dropped the civil complaint. remember the story? they were standing outside the voting area. one of them had a night stick. people said they were intimidating the voters. despite the video that shows them harassing people, these charges have been dropped. there is a report in "the washington times" that says the

decision to drop the case was approved at the highest levels of the justice department. all of this as the president tries to smooth over tensions between black professor and a white police officer this evening. mike emanuel has the latest on all of these stories. what should we expect from the beer summit? >> we are being told that we should not expect any brokered apologies or any mediation by the white house. this is a chance for these three men to sit down and talk this out and perhaps be a positive role model for the rest of america. perhaps the best way to work it out is to sit down and talk about it. try to lower the temperature and try to ease tensions around the country by showing a positive message at a photo opportunity about four hours from now martha:. martha: why did they move it to

the rose garden? >> is not clear. like he may be an issue -- lighting may be an issue. they just decided it would be a better locale in the rose cardigarden. martha: sometimes i have to change where i have my beer if the lighting is not right. before i let you go, is there any reaction from the white house on this "washington times" story? >> not so much from the white house, but the justice department has pushed back. they say the story is off base. the decision was made by career employees in the justice department in the civil complaints decision who made the call not to do this.

they are insisting is career employees who looked over the facts. martha: thank you very much. gregg: john sullivan, the executive editor of "washington times" joins us. who put the hold on this prosecution? >> that is a question that we are all still asking, but i think we answered a lot of questions yesterday. we went over the story with the justice department last night. they had no factual callqualms t it to the no. 3 officer was involved in the media treated at that point, the case with streaming along. it was moving to the penalty phase. he suggested to stop the case

because there was some dispute on how to proceed. the rear supervisors -- the career supervisors battled over this. they decided to make a recommendation to end the case and drop the charges. gregg: i looked up the voting rights act. let's put up on the screen. section 11b. according to the u.s. commission on civil rights, and these guys were brandishing two-foot long nightsticks. this guys were caught on tape blocking access to voting polls, physically threatening, and

verbally harassing voters on election day. they did not even contest this. they did not even show up because they knew they were on tape broken the law. -- on tape breaking the law. >> the civil rights commission letter says if you let these guys off, you will send the message that people who do not show up, they can simply get off. i think that is an important thing here. there are lots of people upset. on the career side, i know the justice department says the carrier supervisor made this decision. she was in the acting attorney general's position. she was temporarily placed there by the obama administration. the man who brought this case new the most about the evidence. they argued strenuously to go forward with this case. there's a great question on how you can do a 360 degree turn

about five months after you have already won the case. martha: is there any way to do another 360 turn? is this the end of the road for this story? >> i do not think you hear from the justice department. they feel confident in the decision. a judge has dismissed it. the bigger issue here is, if you remember back to the bush years and the democrats in congress strongly raised questions about the political edition of the justice department. career people answering to political people. this fits that debate right now and the justice department. congress, the republicans, and some democrats are asking questions about whether career people had their say here. gregg: the other message may be that this is a department of justice who thinks it is ok to intimidate white people and not

ok to intimidate black people at the polls. john sullivan, executive editor of "washington times." martha: a new report out of washington d telling government waste. it is the highway trust fund. it is running on empty. the department of transportation spends billions of dollars on some things you may be surprised to hear. molly henneberg, what did they find? >> are you shocked to find out there's waste in washington? gao rapport says that over the past five years, $78 billion that comes from the highway trust fund, a fund set up to create and maintain the nation's highways and bridges, has paid for other projects. for example, $2 billion for

bypasike paths. and all this is from the highway trust fund. that is your money and my money that is collected when we buy gasoline. it is a fund that went bankrupt last summer and is set to go bankrupt this summer. martha: i like bike pathways, i wonder about the city beautification. >> they want to make it look nice. they want to make it ridable for bikes. this is not illegal. in some cases, these things are legally required for safety. the two republican senators, tom

coburn and john mccain, say these should be periodically reviewed to see if there are any unnecessary luxuries. they want this money to go toward highways and bridges that really need repairs. martha: it would be great to see all of these departments follow the order to cut all of the waste that they possibly can from these programs. thank you very much. gregg: president obama is making a big push to reform health care. could this ambitious plan be hurting his own party? we will take a look at some key races in 2010 where republicans might be poised to pull off an upset. 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

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gregg: in the top box, the white house daily press briefing. we are monitoring that. the press secretary has been talking a lot about the so- called beer summit.

mr. president, there's still time to switch to sierra nevada pale ale. in the middle box, the space shuttle endeavour astronauts are ready to head home. in bottom box, the battle for health care reform. martha has more on that. martha: the president's full court press for health care reform may be causing problems for other democrats across the country. in some cases, the ones who are up for reelection. most of these races are way off, but not the new jersey's governor's race. jon corzine is now is inevitably behind republican challenger cris christie, even after a

special visit from president obama. will the health-care issue and the stimulus package and a lot of other issues have the impact on these democrats? let's bring in our panel. monica and peter. peter, good to have you with us today. it is interesting because if you look at the virginia race, the candidate is not really open arms with president obama apparently. it is early on to see this kind of reaction. martha: the virginia race and the new jersey race will be very tight. in both those states, the economy has just hit the whole country very hard. both corzine and deeds will have a tough race.

i do not count corzine out. virginia is a much different story. martha: what would you advise right now? would you say, yes, you should definitely have the president in your ads and publicize the connection to him? >> the president remains enormously popular. it will be key if this health care bill does get through -- it looks like there's a deal structured with blue dog democrats and moderate republicans in the senate. if this gets through after labor day, that will give it a push. martha: if it does get through, it will be seen as a victory for the democrats, even though it does not kick in for several years. it will not -- you will not feel any pain from it.

>> if the democrats ran three health care plan that most of the american people now oppose, then those poll numbers will continue to come down. the american people will hold it against the democrats, especially if they push it through without republican support. you mentioned new jersey. this is an unbelievable situation, peter. you have a quintessentially blue state with a very high democratic demographic, and still, 15 points behind. virginia is a little bit more of a purple state. for corzine, and the huge corruption sweep -- does not look good for the democrats. >> on the health care thing, the democrats did cut a deal with them the wrong party, but also with and moderate republicans in the senate.

there was concern that the democrats would fracture on this. they have come together. it is the republican leadership in the senate that will have a choice to make. martha: i do not want to get into health care debate, but if you look at the blue dog version, it is very different. bring those pictures back up. this is also very interesting to watch, the race in pennsylvania. arlen specter is running on a primary race against rep joseph e sestak. he will run against pat toomey. that could be problematic for him. if you look at his history of having to switch party, what do you make of it? >> the same thing said about new jersey. the registration numbers overwhelmingly favor democrats. this is a younger population.

that will help democrats in the northeast. martha: are you surprised? if anyone told you six months ago that the impact on some of these races from what we have seen so far in washington would already be hurting democrats? >> not really. martha: you are not surprised? >> not with the economy the way it is. all incumbents are going to have a problem no matter who this. >> when you look at the polls, the democrats are running very steep decline. i think it is because there hoisting themselves on their own petard. they have spent so much money. all of their advantages have evaporated. martha: thank you.

gregg: riot police fired tear gas on protesters filling the streets of tehran today. new videotape is coming up next. @=h

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gregg: welcome back to the "live desk." news today that you probably do not want to hear. the government says more americans filed for jobless claims than expected last week. the number is 584,000. seven companies are overwhelmed with applications. -- staffing companies are overwhelmed with applications. one of them is called the temporaries on standby. it prescreens all of its

applicants. it takes care of all payroll cost. the owner tells fox news that he got so many applications that he is having to turn away folks. >> we are here behind the desk at temporaries on standby. they will give them work boots and sell them gloves and safety glasses. this company has been in denver for 28 years. i'm with one of the co-owners. tom, we have than talking about how it has been going. on an average year, how many folks have you been provided employment, and how about now? >> before, it would be about 120 people per day. now it is about 60 people to 90 people per day.

>> how closely do you follow economic news? when you hear that things are getting a little bit better and when you hear about these troublous times, what are you feeling? >> we really do not feel it on this anend. we hear from clients every day how bad it is. >> we hope things improve soon. thank you very much. the company used to employ 10 people. now they are down to seven. now he is doing some of the dispatching. things are really tough. back to you. gregg: thank you very much. if you happen to sell big-ticket items like televisions and washers, you know the business is not very good. we got the proof of it

yesterday. new data shows the durable goods items fell 2.5% last month, the largest percentage drop since a jan.. one company that is part of that industry is abt electronics, the nation's largest stand-alone electronics stores. sales topping more than $300 million annually. it began in 1936. since then, it has grown to more than 1100 employees. >> that 2.5% #is obviously not good, but it includes transportation related items. we're talking about cars, car parts, and aircraft. if you exclude transportation, demand for durable goods last month was up by 1%. we see a lot of those items

here. the cooktops, refrigerators, washers, and drivers. we are joined by john abt. how have you been doing in the last six months? >> in the winter, it started off soft. things have begun to pick up in the spring and summer. >> any changes that you have seen? >> we have seen a change marshal over the last three months than during the last couple of months -- we have seen a change over the last three months. >> what is flying off the shelves? what is selling well? >> we are in high of plants mode. a lot of people are fixing up their homes. in the last few months, a television -- television sales have really helped. >> you have seen similar stores have to shut its doors. use a drug, not better in the

end -- using to have come back better in the end. >> we have seen different aspects of our business really take off. >> what will happen in the next six months for you? >> we feel it will be a positive and we will still be on the upswing in the next six months. >> thank you very much. i have been talking to a lot of different customers. this place is pretty full. i have been asking them if they're just looking or planning to buy. many have said that they plan to walk away with something today. gregg: looks like a great place. thank you very much. martha: obama's plan to overhaul health care has sparked a hot debate across the country. one of the most compelling takes on all this is coming from who? america's future doctors. what these people have to tell you, you must hear. it.

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gregg: will come back to the "live desk." i am gregg jarrett. new street protests in tehran. kitty logan is following it for us. >> more protests in tehran, 40 days after the death of this young woman who has become a symbol of the opposition movement. police moved in fast with teargas. they dispersed the protesters. amongst the crowd today was opposition leader mir hossein mousavi. it is interesting to note that this anti-government movement is still going on six weeks after the disputed election. next wednesday, we will see ahmadinejad sworn in for a second term. gregg: health care on capitol hill is the big topic today. that is where we find our own james rosen. >> bombs along the track for the

health care strain on both sides. a very contentious mark up session for the energy and commerce committee. the liberal chairman, henry waxman, is getting an earful from the republican members, and from liberals who fear that the chairman has given over to much to appease the fiscally conservative blue dog democrats. on the senate side, a complete dead stop between mike enzi, who said it is a train wreck that is not ready for prime time. back to gregg jarrett. gregg: speaking of health care, martha has more on that subject. martha: the health-care debate is not a theoretical exercise. if the bill gets passed, it will have real consequences for the next generation of doctors. what do they think about what they're hearing in washington and how it might affect their careers?

jonathan is checking in with some medical students at emory university. >> this is one of the top medical schools. we have assembled this panel of future doctors and some future physician assistants. fast-forward 10 years, what will health care look like with reform? >> i will like to see a collaborative effort with a focus on preventive strategies and affordable access. it would be nice if pharmaceutical companies, insurance companies, and doctors come together with one goal in mind, the patient. >> what needs to be done? >> we are excited to help. it is a team effort, everyone from the front desk to the to amateur that keeps it clean. we want to be part of the team. >> what is your advice?

>> i hope there will be more transparent to between clinics and doctors, and also between showing outcomes so that patients can then choose based on what they see and quality. >> a loss of people worry about rationing? -- a lot of people worry about rationing. >> i have heard a lot about that in the news. the rationing goes on today. it is insurance companies that are making the decisions about people's health. any sensible health care legislation will have to do a better job of making sure that experts are making that decision. another big concern is the wait times. >> when times are a big concern for everyone. i and urban safety net hospitals, as well as rural areas, patients are ready to get

the care that they need. by making more health care professionals more accessible to more patients, we will be able to provide the best care, which is what we all want. >> thank you very much and best of luck in your continued studies. back to you. martha: thank you. good luck to all those bright, young individuals. gregg: another big group that will be affected by any change in the health-care system will be the elderly. how will the plans on capitol hill affect senior citizens? i'm joined by the director of health policy studies at the cato institute. thank you for being with us. will these current plans negatively impact seniors and the elderly in america? >> they absolutely will. if you look at how they are paying for this, they say it is $1 trillion, but it will be a

lot more than that. about half of the money will be cuts to payments for doctors and hospitals. this is the government's strategy for containing costs. it's called price controls. it is a failed strategy. thousands of years of human history have told us that price controls do not work. government cannot do innovation. they cannot make things better, cheaper, and safer all the time. they can just say, we are going to pay you less. that means less choice and less access for seniors. gregg: it is not just the cost. it is the personal. you will be adding 50 million more americans. there are not enough doctors and nurses to cover all of that. the answer to do it is obviously to ration health care with the government deciding who will get the hip replacement and who will get the bypass surgery and so

forth. here is how dick morris put it in a recent article. we will put it on the screen. is he right? >> that is definitely the intent of president obama and others on the left, to have the government making the rationing decision. rationing is unavoidable. it is as ubiquitous as gravity. the question is, who will be making depression in decisions? will you be able to make those decisions by choosing your own health care plan? -- the question is, who will be making those decisions for you? is the government going to be making a one-size-fits-all set of rules for all patients? gregg: what i do not get is the

conduct of anarcharp. they have endorsed the president's plan to cut medicare to help pay for the health care reform. would that not further reduce the ability of senior citizens and the elderly to obtain specialty care, the things they really need and buy on to live -- and rely on to live? >> that is one of the great on examined questions of the health-care debate. why is the aarp signing on to health care cuts? sometimes you get a group in washington that instead of representing the member interest will cozy up to the politicians in the hope of getting something else. and they will go along with something that harms their members. that might be what is happening here. we do not know what all the particular are. aarp, which represents seniors, has signed on to the medicare cuts.

gregg: many older americans have spent their entire working lives pay medicare taxes for their future. now that they needed, they will not get the benefits of its. michael cannon, thank you. martha: the minnesota governor is an up-and-coming gop star. he is the keynote speaker of a big summer meeting among top republicans. is this indeed a signal that the governor has his eye on the big white house on pennsylvania ave? only one a day men's 50+ advantage... has gingko for memory and concentration. plus support for heart health. that's a great call. one a day men's. beauty editors and research institutes are seeing results. [ male announcer ] best cleanser, essence magazine. hydrates better than the $350 cream. [ female announcer ] most importantly, women are seeing results. and still no drastic measures.

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martha: it is hot in seattle. the northwest remains in the grips of a huge summer heat wave. in the middle box, associated press is reporting and interesting twist. brazilian police have ruled that the boxer, gatti's death was a

suicide. in bottom box, president obama will award the presidential medal of freedom to 16 people, including political ally senator edward m. kennedy, a tennis legend billie jean king. the white house announcing the list today. gregg: republican leaders are gathering in san diego. today's keynote speaker is minnesota gov. tim pawlenty, the fiscal and social conservative is a man on the move these days. the son of a truck driver, he has decades of government experience, and he may have political ambitions for higher office. the topic today is health care. carl cameron is in san diego. i was there last week vacationing. what is the gop during there when the debate is in washington? >> this is the grass-roots

organization of the republican party nationwide and they're here with the leaders of all 50 states. they are putting together their strategy for blocking what they call obamacare. there will be a vote on a resolution tomorrow. it refers to obamacare and socialism. they plan to attack this for the radio ads and television ads. it will be a nationwide gop blitz arguing that the so-called public option and forcing companies to insure everyone would be a disaster. this resolution essentially argues it is a step toward socialism. gregg: tim pawlenty is the keynote speaker. any idea what he will be talking about? >> yes, he will give remarks in 20 minutes and he will be talking about health care. he said he may be interested in running in 2012. he is going to. he would like to be president.

he is doing the things he needs to do to get national attention. speaking to this committee is one of those things. opposing health-care and making sure he is viewed as in favor of reform but against the government takeover is the goal. he is worried that the republican negotiators in the senate may give too much to the liberals. >> i think it is ok for republicans to have discussions, but they have to be careful not to agree to things that will be counterproductive, not just from the party standpoint, but from the standpoint of what is going to work and what is not going to work. we do not talk to have a system where we have a public auction. >> tim pawlenty has been the governor for two terms. he is not seeking a third term. he will go to pr for a fund- raiser and try to expand the party's appeal to latinos. he is clearly concerned that chuck grassley, mike enzi, and

olympia snowe may be too eager to cut a deal and in the process may give away too much of taxpayer money. gregg: carl cameron in san diego, calif. martha: shepard smith with a purple tie. shepard: have you noticed the president's approval ratings are slipping? a professor and public opinion is the expert will tell us what he is doing wrong. he will explain what he is doing right and what he is doing poorly. martha: some people say he is talking too much in all these town hall meetings. shepard: that is one of his points. he is talking too much. and what else are we doing? yes, have you heard about this prostitution ring? a sports reporter was busted for

running a prostitution ring. and you have one of the new ipods? martha: no. gregg: the new -- shepard: the new iphone can be hacked. there is a text message. these can be hacked now. it is the simplest thing. it is a message they send you and you open it and you have been hacked. it can happen on any kind of message. they will explain how to stop this from happening to you. martha: everybody has those now. everybody but me. good stuff. see you there at the top of the hour. back to you.

gregg: reports of a suspicious package at charlotte international airport. we will have the very latest for you, coming up next. . .

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- gregg: a suspicious package at the airport in charlotte. >> federal agents have just moved in from the federal transportation administration. they have had to close a couple of concourses there. this is that the charlotte international airport. they had reports of a suspicious package, perhaps a device. they could not get anyone to tell me definitively what they found. they believe it held some kind of device in it. they have started the evacuation process. this began about 45 minutes ago.

this is something that is happening now. it is very early in this process. they hardly ever find anything. they did find something. we just do not know what it is. martha: hopefully, it is nothing. thank you very much. we also have breaking news right now that just came across the wires on the funding for the f- 22 raptor. house is going along with what president obama wants, but balking as head -- at his demand to remove several other big ticket items. i know that john mccain was behind this as well, killing this. what have we got? >> what we have got is -- it is definitely a win for the white house on the f-22. the house is going along with the white house. what they did not go along with -- thie president has

threatened to veto the bill over this, the presidential helicopter. congress in the spending bill has provided $400 million for the helicopter. also, the f-35 alternative engine. this could also lead to a presidential veto. i also have 6 sender $74 million for three more cargo jets. they were not requested by the pentagon. all of it is adding up to billions of dollars of equipment and weaponry, as well as planes and helicopters that pentagon never wanted. martha: he cannot line item veto these things. what will happen next? >> it will move forward. certainly, it is going to be a showdown with the white house. we will have to see how it plays

out. martha: thank you for the follow-up, jennifer griffin. gregg: we're just hours away from the most scrutinized and beer in that history of america. before they raise their glasses, jonathan hunt, who has been known to spend a bit of time in a pub goes out for a beer. that is next. wn advocate. be sure to talk to your doctor before you begin an aspirin regimen. you take care of your kids, now it's time to take care of yourself.

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martha: this is a fox news

alert. this is big news from capitol hill. the house is going along with president obama's plan to kill what has been seen as an over- budget fighter jet, but balking at his demand to eliminate other big-ticket items. jennifer griffin has been following this throughout the day. one of the big issues is a new helicopter. the president has said, my helicopter is just fine. we may see the first presidential veto on this defense bill. gregg: the vote was 400 to 30. defense secretary robert gates opposed the f-22. it is a big-ticket item that was supposed to be the ultimate weapon, at one juncture. it has now gone down in defeat. martha: thank you for being here at "the live desk."

thank you for watching. we will see you here tomorrow. gregg: "studio b" begins now. shepard: look at this. the dow is up 150 points. do not let anyone tell you everything is horrible. it is not. if you have money in the market and you were sitting there today, you probably made some money. we will kitt peak -- we will keep you updated as the stock market heads to the hope -- to the closing bell. the controversy started as a racial dispute. after a harvard professor was arrested in his own home. the president, police officer, and the professor at smoothing it over with a couple of cold ones. first, the three boxes are full. serious unrest in iran. thousands