hi, everybody. welcome to "the wall street journal report." i'm maria bartiromo. reporting from the aspen idea festiv festival. we'll talk about a summit surprise. for once, good news out of europe. what it means for the markets and your portfolio. the supreme court speaks, your money and the next political battle. my discussion with tom dashle, former senate majority leader. and he wrote the book on steve jobs. he runs the aspen ideas festival. we'll talk about what the next big game changing idea may be with walter isaacson. "the wall street journal report" begins right now. this is america's number one financial news program. "the wall street journal report." now maria bartiromo. here's a look at what's making news as we head into a new week on wall street.

europe ruling the day, but this time a summit with low expectations appear to have overdelivered. leaders in brussels came to several important agreements this week, most importantly bailout funds can now be used to directly stabilize struggling european banks without adding to the country's debt. a move that should help spain and italy skyrocketing borrowing costs. also, countries seeking bailout money would not have to follow stringent austerity rules which could allow for more growth. there was also a move towards a joint banking supervisory body. but as always, the devil is in the details. many of which have yet to be worked out. still, the move sent stocks sharply higher at the open on friday closing out a rough quarter on a strong note. more signs of a rebound in the housing market, meanwhile. new home sales hit a high rising 7.6%. 369,000, well above economist's expectations. don't feel bad if you're driving an old klunker. americans are holding on to their cars longer. the average age is now 11 jeers

old. partly due to a slow economy, partly due to more reliable cars. google getting into the game, introducing a tablet called the nexus 7. it measures 7 inches and will cost $199. the nexus is more likely to challenge the kindle fire rather than take on the ipad. of course, this week the supreme court ruled in favor of the affordable care act saying that the individual mandate was a tax and is constitutional. not a penalty. what impact will that have on american businesses and the economy? joining me right now is simon johnson, professor of entrepreneurship at m.i.t. simon, very nice to have you on the program. >> nice to meet you. >> thank you for joining us. let's talk about this crucial ruling from the supreme court upholding the affordable care act. is this a positive because we have some certainty or do you think this will still be sort of an uncertainty and a new tax for business keeping them unwilling to add heads to the payroll? >> i don't think you know before the november election how this will turn out. november election will be more about competing visions, obama

vision and romney vision, and perhaps after that resolution we'll get greater certainty. >> and so the election, of course, is going to be much about this. already you heard governor romney come out and say, look, you know, if you want to get rid of obamacare, get rid of obama, things like that. so do you think that this is going to be a positive for the republicans or a positive for the democrats? >> i think it's a bit of a positive for the democrats because it means they didn't waste more than a year of their time in the obama administration. the supreme court has backed them up on the key constitutional issue so they have something to show that they did in this first administration. >> let me switch gears and ask you about this recent petition that you brought to the board of the fed, the federal reserve, asking for the removal of jamie dimon from the new york fed because the new york fed is responsible for investigating the losses suffered by j.p. morgan chase's dissaskatchewan strus bad trades in london. do you think you'll be successful in this bid to get jamie dimon off of the fed?

>> i think it depends how large the losses are. people are talking about perhaps 5 billion today before a week interest ou ago they thought it was $2 billion. to have the new york fed as a primary leader in that investigation while mr. dimon sits on the board of directors of the new york fed is extremely uncomfortable. i don't think there's anywhere else in corporate america or non-corporate america with that kind of position relationship, appearance of a potential conflict of interest will be tolerated. >> they will say that the fed has a mandate to have business people on the board and that they want business people on the board to actually weigh in, but you're saying it's because of specific jpmorgan trading laws and that's who's investigating it? >> that's correct. it does specify some bankers should be on the board. that's an interesting question. we should discuss whether or not going forward that's a good idea. at the moment it doesn't say you should remain on the board if various inappropriate or

seemingly inappropriate activities are going on. there's a long history of the directors of the new york fed resigning when it questioned or threatened the integrity of the federal reserve position to continue in those positions. >> it seems like whether it's the jpmorgan laws, the market, more and more investors are feeling like the game is rigged, that they're not getting a fair shake. we're now hearing that a key interest rate may have been fixed by bar gla's and other banks. is the retail investor facing too many obstacles in this market? >> it's also corporate investors. i know corporate cfos think they're acting in the benefits of the customers. the details of bar clay's rigging, they've now conceded they did, you begin to see that they're rigging it against their big corporate customers and basically ripping them off. >> unbelievable. what are the ramifications? i mean, the retail investor has not been in this market for some time now. do you think there's a catalyst on the horizon that brings the

retail investor back? >> no. i think the overall macro situation around the world will become more complex. the european situation looks very, very difficult. it's extremely scary for people who don't think about what the possible outcomes could be. >> what's your expectation for the u.s. economy into 2013? >> it depends very much on the timing of the european crisis. timing is hard to predict. i think there's going to be a slow recovery going into november. this is obviously going to be a problem for president obama and his re-election. early next year is also going to be really quite difficult. if the europeans don't turn the corner, we could still be talking about this in 2014. >> here we are at the aspen ideas festival, people discussing the issues of the day, what's the best idea you're coming away from here so far? >> i heard a prominent republican yesterday suggest that tax revenues could be increased as part of a fiscal deal. if that's where the republicans are in congress, that's extremely good news. i don't, by the way, believe it. i don't think they want to do

that deal yet, but that's huge. >> we really have a huge problem on our hands, don't we, with this fiscal cliff. tax cuts expiring at the same time spending programs are expiring. do you think we'll get an agreement on that before the election? >> not before the election, no. we're not going to drive off a fiscal cliff. the big issue is the extension of the bush era tax cuts. how is that handled? that's going to depend on exactly the outcome of the november election and there's some scenarios that could be quite good and some that could be absolutely disastrous. so we'll lrn a lot. we'll see a lot in the last six weeks of this year. >> simon, we'll leave it there. good to have you on the program. simon johnson joining us. up next on "the wall street journal report," the supreme court upholds health care reform. what the road ahead means. former senate majority leader tom dashle will join us. later, looking for the next game changing idea. einstein and ben franklin. walter isaacson is my next

guess. take a look at how the stock market ended the week. back in a moment. so, you actually reward people for staying with you? yep. the longer you stay with us, the more you save. and when you switch from another company to us, we even reward you for the time you spent there. genius. yeah, genius. you guys must have your own loyalty program, right? well, we have something. show her, tom. huh? you should see november! oh, yeah? giving you more. now that's progressive. call or click today. how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards.

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the signature piece of the obama administration's domestic policy agenda had a significant victory this week when the supreme court upheld the affordable care act this week signed into law more than two years ago. joining me right now is a former lawmaker with inside experience in the debate over health care reform. former senator, tom dashle, one time leader. >> thank you for joining us. a dramatic last day in session for the supreme court thursday morning. 5-4 decision in favor of upholding the constitutionality of the mandate that americans must buy health care insurance or pay a penalty.

your reaction? who wins here? >> well, i think everybody wins. obviously the constitutional question was looming over this whole issue now for the last year. what this does is provide a real green light to go forward on implementation, on innovation, on all the things we have to do. it won't end the debate. there will be policy debate, there will be political debate, but clearly this is a huge landmark question now put to rest. we can go on. >> but what happens next with this wave of legislation coming into effect in 2014, who pays more and by how much? >> well, ultimately everyone has to realize that we're not going to be reducing costs as much as we are bending the cost curve. our whole objective here is to make health care less expensive. that doesn't mean we're going to roll back what we've already had to pay, but it does mean we don't have to pay at the rates we're paying in the future if we're successful. that means more transparency. it means real payment reform and

delivery reform. it means creating a newark texture with far more opportunities and tools to control costs than we've ever had before. >> but the costs are going up for people. i mean, everybody, in fact. the penalty for not having insurance is more than 2% of income, so how do you sell that to the american people that this is going to cost you more, this is a tax? >> we all have an opportunity to contribute here. we're being taxed right now. yound a i pay for those who don't pay in uncompensated care. your tax last year was about $1,000. it was an invisible tax. you didn't know you were taxed. that's going to continue. we're trading one tax for another and that's one thing i don't think the american people fully appreciate right now. >> let me get your take on really how we're going to get costs down. and i know that you've worked on this and tried to work on this for so long while you served. health care represents nearly 18% of the gdp. is this reform adequately financed? >> it's adequately financed, but our real challenge i think is to address all of the ways with which costs are rising today.

we, first of all, lack transparency. health care is probably the only sector in the economy where at the time of purchase you don't know what it's going to cost or who's going to pay. we need more transparency. we need to bring down the administrative costs. we're spending 15% on administrative costs. those costs are all ones we have to address. unnecessary care. $800 billion last year. we ought to eliminate unnecessary care and we can do that. those kinds of things, maria, can make a big difference. >> what do you say to the critics out there who say this health care administration is not health care, it's health insurance, number one? number two, what about the fact that going into this health care legislation we were all told that this is not going to add to the deficit, that this is not going to cost anything, and now we see it's going tow cost a trillion dollars. >> well, first of all, i would say this, that i think it's very important that we realize this goes way beyond just insurance reform. we actually have the tools to change the way we pay for health today. right now we pay on a fee for

service basis. we've got to end that. right now we're actually going down in quality. life expectancy is going down. we've got to change that. with regard to costs overall, the cvo still says over a 20-year period of time we'll save a trillion dollars. can you find the authorities and find the projections with regard to costs. i guarantee you if we fully implement the cost provisions in this bill, the cost containment provisions, we'll save money. >> you say life expectancy is going down. i thought we were living longer. >> my children have more of a chance of dieing younger than i do. one in three children will have type 2 diabetes in their lifetime. that is only one of the many reasons why life expectancy is what it is today. >> but isn't that about health care and prevention and educating beam wellness? that's not what this legislation is about? >> no, quite the contrary. this legislation has a very strong preventive services provision. for the first time we're

actually going to put real emphasis on wellness rather than on just illness. that has cost savings potential as well. >> what about the cost expenses and the cost increases for business? for months business owners, large and small, have been coming on this program and they have been saying, the uncerta uncertainty over health care costs and the containment which is preventing them from hiring. in fact, more than 1,000 companies have gotten wavers because they've threatened, look, this is too expensive. i'm not going to offer health care to my employees. i can't afford it. >> right now i don't blame many of them because it is very, very expensive. we're seeing a lot of businesses drop the insurance completely. that's what this whole idea is about. to create a framework that makes it more conducive for business, gives them more tools, more power to begin to deal with these cost considerations in a more effective way. and once they begin to realize just what those tools are and how they might use them, i think you're going to hear a different story. >> senator, good to have you on the program. >> my pleasure. >> senator tom dashle.

up next on "the wall street journal report," i'll talk innovation, invention, and the legacy of one of corporate america's biggest stories. you ♪

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president and ceo. best selling author of "steve jobs." >> good to be back with you. >> so good to be at the festival as well. this is the eighth year of the aspen ideas festival. tell me how it's evolved. what are you looking to achieve in terms of ideas this year. >> when we started, aspen had many policy programs. we were a think tank but we didn't open up that much. it felt important that we should allow other people to be giving input, taking away some of the ideas we were wrestling with at the aspen institute, and then there was a certain hunger for that. people, especially in this digital age where you share ideas on facebook, on twitter, to actually get together in a nice space, sit down, have long conversations. so this thing has grown. i think what we try to accomplish is finding really good, new ideas and then balancing them with the values so that we don't tear ourselves apart in a partisan fashion. >> that's terrific. let me move onto the "steve jobs" book.

it was less than a year ago that the co-founder of apple, steve jobs, passed away. your definitive biography came out. you describe his world view as binary. how did that help him as a technology innovator? >> it gave him sort of the intensity and the sort of drive to make sure he tried to make everything perfect. i was just talking to some people a few minutes ago who were in charge of the interface design of some other product, and we were just saying how steve jobs would just drive things that if it wasn't perfect, if the screen, the touchscreen, the way you swiped it, the inertial skroelg didn't work the way he wanted it, he would have a four letter word to describe it. it drove people to make the best possible product. you cover it every day, how much do we focus on making products absolutely as great as they can be. that's what steve did. >> and his products were really game changers.

you look at a product like itunes, a game changer. you write about him personally convincing musicians to get on board with itunes and get on board with that business model with the technology. how do you think that translated in terms of how he convinced the public to buy the products, the iphone came out, what, just a few weeks -- a few years ago this week. >> right. you know, he had an emotional connection with the products. i think that meant consumers did as well. some great leaders that you interview have a great vision for a company, right? others really get down in the details and care passionately about that and manage every step of the process. steve did both. he had a vision for a thousand songs in your pocket, but then he realized it had to be simple to get those songs and he realized he had to convince sony, warner music, others to put their music libraries into an itunes store in the simplest way. 99 cents you get a song.

just that simple. and it took an intensity of just convincing musicians, convincing the record companies, and then making the ipod just so simple that it transformed how we listen to music and how we buy music. >> you wrote three biographies of men of genius, steve jobs, albert einstein, ben franklin. do you have a take away on all three men? what do these three men have in common? >> they're all very smart, but having been on, you know, a guest on your show i know you have a lot of smart people on your show and sometimes smart people don't amount to much. what really makes somebody amount to something is being creative and innovative. thinking a little bit differently. so what they all had in common, they were slightly rebellious, they were slightly misfits. they always questioned authority whether it's einstein questioning newton's thoughts or ben franklin being a run away from puritan boston to try to,

you know, create what he did, so i think that ability to think differently, think out of the box, question authority, those were the things that set apart the smart people i wrote about and made them not just smart but geniuses. >> that's really interesting. what do you think the road ahead looks like at apple with tim cook in charge. will jobs' commitment to beauty, to utility still be a corner stone of that company, do you think? >> yeah. when steve jobs stepped down as ceo he felt he had implanted into the dna of apple the real core issue of what apple is, which is connecting creativity to technology. connecting great beauty to great engineering. and he had the best team around, and still does. people -- you know, he was a tough boss at times, but he made people loyal to him. anybody can be, you know, a bit of a jerk. he actually was charismatic, made people loyal. so you have the best people in business. >> what an amazing study and knowledge base you have. walter, what are you working on

these days? >> i'm trying to do a history of the digital age. i mean, we've, you know, been transformed by having computers, the internet, microprocessor, micro chips, transistor and we don't know anybody who invented these. i'm looking at it through the really cool, really smart but also innovative and rebellious hackers who created the digital age. >> no doubt another must read. great to talk to you as always. up next on the "the wall street journal report," we'll take a look at the news the upcoming week. makes for a balanced diet, but what role did broccoli play in the supreme court's health care ruling. the green stuff and the justices when we come back. stay with us. stiffness from psoriatic arthritis hit, even the smallest things became difficult. i finally understood what serious joint pain is like. i talked to my rheumatologist and he prescribed enbrel. enbrel can help relieve pain, stiffness, and stop joint damage. because enbrel, etanercept, suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events

including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness. [ phil ] get back to the things that matter most. ask your rheumatologist if enbrel is right for you. [ doctor ] enbrel, the number one biologic medicine prescribed by rheumatologists. the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful.

he would never give up on any of us.

check out the website wsjrcnbc.com. look for @maria bartiromo. look at the stories coming up a week ahead. on tuesday, car and truck sales for the month of june will be out. on wednesday, of course it is july 4th. all u.s. markets are closed in honor of independence day. happy independence day, everybody. on friday we get the latest employment numbers. that will show us how many jobs the economy lost or gained in the last month. finally today, broccoli. it's what's for dinner. the green vegetable made it onto the menu of the supreme court during the oral arguments of the affordable care act when debate centered on whether a government that made americans buy health insurance could also mandate vegetables. that concern be was dubbed the broccoli horrible by justice

ginsburg and the high in fiber veggie was cited in the health care ruling no less than 12 times. current usda price averages $12 a pound. part of a balanced diet and landmark juris prudence. that will do it for the show today. thank you so much for being with me. my guests next week, one of the most powerful women in finance, christine lagarde will be with us. keep it here with wall street meets main street. have a great weekend everybody. have a great weekend everybody. i'll see you next weekend. [ male announcer ] olympic tennis players bob and mike bryan do a lot of sending... and receiving. sending...and receiving. sending...and receiving. sending...and receiving. sending...and receiving. [ bob ] i got the tickets. [ male announcer ] and with citibank popmoney, it's even easier to keep sending...and receiving. let me get you back. no, it's on me. i insist. no way. yes way. well let me chip in. [ male announcer ] send money from one bank account to another, with citibank popmoney. easier banking. every step of the way.