date. >> 22 and first date. rl restaurant, where we did our show, might be a bit pricey. send us the tab, we'll pick it upbrzezins i slipped up and said it is a tank. it is an armored personnel carrier. that's the lithuania mayor sending a message, if you park illegally i'll crush your car. "morning joe" starts right now. our economy didn't need washington to come along with a manufactured crisis to make things worse. that was in our hands. pretty likely that the uncertainty surrounding the raising of the debt ceiling for both businesses and consumers has been unsettling and just one more impediment to the full recovery we need and something we could have avoid entirely.

voters may have chosen divided government but they sure didn't vote for dysfunctional government. they want us to solve problems. they want us to get this economy growing and adding jobs. and while debt reduction is part of that agenda, it is not the whole agenda. when congress gets back from recess i'll urge them to immediately take some steps, bipartisan, common sense steps that will make a difference. it will create a climate where businesses can hire, where folks have more money in their pockets to spend, where people who are out of work can find good jobs. >> good morning. it's wednesday, august 3rd. look at that beautiful shot of new york city. what a morning it is. with us on set this morning, we have mike barnacle, mike halperin and in washington, pat

buchanan. willie and joe. >> can i say something this morning? >> you're going to make fun of my tablecloth? i love a good family italian restaurant. bottle of red, bottle of wine. >> and someone come in and shoot two of us at a table. >> depends on your appetite. >> mike, just to get the attention of what i'm wearing this morning, can somebody get me a blue jacket, please -- >> i get a mike so i can't take this off. >> i think it looks nice. >> what? >> go with it. go with it. >> this from a woman who is wearing "i dream of jeanne"

wear. >> i love it. >> i love it. i love it. can we get that "i dream of jeannie" sound. the president has turned a corner. the first two years, we were bashing democrats for talking about health care instead of jobs. the republicans get in and we're bashing republicans for talk about debt relief instead of jobs. the alarms went off at the white house. the president said i'm going focus on jobs. >> the alarms went off a long time ago. >> across america but not in washington, d.c. >> the problem and you just articulated part of it. the democrats focus on this, the republicans focus on that. something has happened in this country within the past ten to 20 years especially with regard to employment and people working and it struck me

it's on individual, party ideology and it separates the good from what ought to be done from the reality of our politics. jobs is critical. >> jobs are critical. the thing is you go to china. you immediately see china today is where we were when we were building these projects. they are preparing for the 21st century, for dominance in the 21st century. go to singapore. the infrastructure there is absolutely remarkable. listen, investing in

infrastructure that's not going to damage us as far as the debt goes. drug over the next 30 or 40 years that's not the challenge. the challenge comes in a lot of other areas. you're right we have to reinvest in roads, in bridges, our trains, our power grid and all of these things because there are arteries of commerce -- >> the president rides once again to put the focus on jobs yesterday after months of negotiations and political rhetoric and hours before the midnight deadline congress passed legislation to raise the nation's $14.3 trillion debt ceiling. the senate voted to approve the deal 74-26 guaranteeing the united states will not default on its obligations. president obama signed the bill into law in the early afternoon. seen here without observe errs or fan fare.

the president immediately shifted his focus to fixing the economy and creating jobs. >> it shouldn't take the risk of default, the risk of economic catastrophe to get folks in this town to work together and do their jobs. because there's already a quiet crisis going on in the lives of a lot of families in a lot of communities all across the country. they are looking for work and they have been for a while. or they are making do with fewer hours or fewer customers. we have to do everything we can to grow this economy and put america back to work. that's what i intend to do and i'm looking forward to work with congress to make it happen. >> yesterday sergeant with "the washington post" put out a post saying the left's biggest problem if you look at the polls, the internals of the polls, the tea partiers won the debate. he's a progressive blogger but he went to the cnn poll says

regardless of what you thought of this bill, 65% of americans, i think 35% supported the cuts. and his argument and the argument of a lot of people on the left, that somehow these people on the right who they consider crazy are now dominating the debate on debt. have they won? that argument for now in america and what does the president do to push his agenda forward? >> i don't think they won the argument but the counter argument is yet to be made. the president now looks for more cuts. two arguments he needs to win both of which he has a good chance. one is that the federal government has a legitimate role in investing in things. in investing in bridges and rail and other infrastructure. money even in tough times should be allocated for that. the other thing is on taxes, it

should be revenue as part of next round of debt reduction. in the polls, there's public support for both those things but he's not won that argument and he has a chance now in the context of the next five months to do it. >> i'm sure pat buchanan would like to weigh in. >> good morning. let me clarify something that happened last night on the al sharpton show, a very spirited discussion. i was asked who was the big losers and big winners. i said one of the biggest losers was your boy and i meant the president of the united states, reverend sharpton then said my boy is the president of the united states. and he's doing a rope a dope in the alley fashion and will finish off your crowd. some folks took what i said as some kind of a slur, none was meant, none was intended, none was delivered for the record. let me talk to mark and joe's point. everybody want as tremendous

jobs program. what were the two greatest we had? you mentioned the new deal which required an explosion in national government spending. and the second was reagan tax cuts, 25% across the board. folks have created millions of jobs. problem is most of them added immediately enormously to the deficit and to the debt. how do you do that, joe, after what we've just been through? >> well, i actually, again, the two things that are going on right now, short term deficits and long term structural debt. i would argue over the next two years, even the next five years we can make those investments in infrastructure without threatening america's long term stability. again, it's going to be defense spending. it's the endless wars that are the great challenges. it's medicare, medicaid, it's social security and guess what? the most liberal member of congress, willie understands that, the most conservative

member of congress understands that, when ever mika and i go up to the hill we talk to the most progressive democrats. they understand. immediate taxpayer, medicaid, social security, pentagon spending, endless wars on the left and right, they under we have got to draw down in those areas to take care of the structural debt in the long run. how you do it and what the priorities are. >> i won given the conversation we just had over the last month if that's possible. we had to fight and scrap and claw just to get what we had right now. i thought yesterday it was extraordinarily sobering to look at the financial markets. we were told if we got this debt deal the market would stabilize. the market goes down. economic fears hit global markets. the message here essentially is congratulations, washington, on your debt deal your economy still stings. get moving. >> you look at what the fears regarding europe, regarding italy, regarding spain,

regarding portugal. there is pat buchanan, a real chance that europe takes a nose dive over the next month. >> joe, i think greece is de facto. technically in default already. if italy or spain goes i don't know how these countries are bailed out. i think that enormous fear plus the belief what the americans got after all this battling was not all that significant in terms of immediate cuts, doubts about the americans in the long term delivering, the doubts about the american economy from what we saw last week. you know, annual growth the first six months was less than 1%. what that means is next year which begins in october we're not going to get the revenue we thought. i think all of these things hitting at once is what's killing the market and trove it down. i guess it's down almost 10%

almost in 10 days. >> perfect storm. debt crisis and slowing economy. >> another factor with regard to the headline that willie held up, economic fears hit global markets. it's what people in business, people who run this economy, people on wall street, people all over the country, small business, they are seeing what occurs and what has occurred over the past two months in washington, d.c. and they see that, you know, these people can't get anything done. they cannot get along together. they can't get anything done unless somebody put as gun to their head with the clock ticking the. so i ask you mike halperin, the idea that this congress has been so dysfunctional, we talked about the new deal and those programs that occurred, people actually got along in the '30s in the congresses. tip o'neill actually got along with ronald reagan on social security and things like that. >> if jobs come back, when jobs come back it will happen because

the private-sector and governors and states not washington. washington needs to be more out of the way except in cases where washington can help. i calculated a fair amount what would happen with the debt talks. i thought there would be a big signing ceremony. i thought the president would stand with the republicans and say we solved the problem. that didn't happen. so, i don't think -- part of the challenge for the president and the congress now is everything we need to do that can help the economy, energy, infrastructure, tax reform, immigration, that's going to require bipartisan compromise and i don't see any momentum for more compromise after this deal than there was before. maybe less. >> what about joe biden's role? it was huge. >> joe biden and mitch mcconnell were the two people that made this happen. no doubt. they did the deal. i want to give a hat to harry reid who hated the deal, hated being cut out. was really seen from just his

public statements seemed to be embittered yet stepped back at the critical time to yield his support. you know, we've been tough on harry. that's what a grown up does when your 24 hours away from a possible meltdown. but, yeah. biden and mitch mcconnell, pat buchanan they were the two guys that made this work at the end of the day. >> they did. they are the guys that did it, joe. look at what's been done. let's go down the road to this bipartisan commission. mark, it looks to me the bipartisan commission, let's say they come up and get senators 7-5 vote for tax increases, the house will reject it. if they don't vote for some kind of tax revenue the senate rejects it. then what you got is the dead lock and you go into the automatic cuts, 600 billion comes out of defense which, joe, means a war between the fiscal hawks in the republican party, the ron pauls and those folks

and the security hawks, the lindsey grahams and john mccain. we have a real war ahead. >> inside the republican party. >> exactly. >> you'll have defense contractors and the president of the united states saying those cuts to national security, the national security cuts is just too much. i don't think there's anyone in the world to tell you which is more likely, the automatic cuts or the deal. both are impossible the imagine. >> except we do have, mika, a blueprint or at least a framework for getting a deal done and that is joe biden and mitch mcconnell. this is the biggest crisis this white house has really been through economically, and when push came to shove, they figured out a way to make it happen, and representing the white house, joe biden representing congress, mitch mcconnell. >> isn't it up to a super committee now? >> they will have a super committee at the end of the day, though, there will be realities.

you'll have joe biden talking to three democrats. he'll say here's what the white house can accept. you'll have mitch mcconnell and john boehner saying listen, guys, ladies, this is what is possible in our caucus. >> the problem is that back of the envelope rough terms what's left to do in dollar amounts is the part of the grand bargain that they couldn't do the first time. so they suddenly will have to make the trade offs they weren't willing to make before. >> what concerns me is in washington, d.c. right now, we talk about the things that have to be cut, we talk about closing tax loopholes, corporations pay zero and billionaires pay less tax rate than their secretaries. what concerns me these cuts will come from domestic discretionary spending. 10% of the budget constitutes exactly what we talk about. schools. roads. bridges.

infrastructure. power grids. the very things that determine how a country runs day in and day out. >> i don't want to make this out to be the dark ages that we're living through because it's not. >> it's not. these are the best of times. >> but there is an element -- i think there's an element missing here in our culture, our politics that used to be more present and it is what's good for the country. answering that question at the end of the day, what's good for the country. i was reading "the new yorker" magazine yesterday. there's a lengthy, very well reported piece on the raid that good osama bin laden. it's staggering. >> thanks for watching the show. >> so the point in the piece where the navy seal with two other navy seals enter osama bin

laden's room. the two women are there. one seal grabs the two women thinking that they are wearing suicide vests. takes them, rushes to a wall, away from the two seals who are partners, in case they explode the suicide vest. one navy seal i would argue making $60,000 government money a year. risks his life for -- >> a chance he could die. >> for his two teammates and we've been through two months where people in washington wring their hands and argue about how they are going to vote. >> the whole perspective for you. >> there is. still, the thing that galls me at this point. i understand, mika, as pat buchanan said before when it comes to actual debt savings a real nothing burger. >> right. >> nothing at all at the end of

the day. that said, if you were a republican, and you were in the house of representatives, and you were responsible for governing, i find it very hard to justify a no vote. i don't care -- you know what? let them stay in congress for as long as they want, i challenge them to put their fiscal hawk credentials up to mine any time. but 24 hours away from a collapse, why is it that republicans are voting no and as many democrats vote yes as no and the democrats, everybody knows they got rolled. the president got rolled. this was a republican package. they still voted no. i just got to say as they move forward they have to one, they staying the majority they are going -- they are going to have to act more responsibly than that. >> coming up this morning we'll bring in a senator from delaware

and chairman of the congressional black caucus, emanuel cleaver. >> and chuck todd will join us this morning with the developing headlines out of the white house and andrea mitchell takes us inside day one of the historic trial of hosni mubarak happening right now. after the break, "politico's" top stories of the morning, including newt gingrich losing another key member of his presidential campaign. are there any left? i didn't know that. first the latest on that tropical storm. here's bill karins. >> this one will be an interesting storm. the reason i say that is because it may totally dissipate by this time tomorrow or regenerate and get a lot stronger. let me show you. this is the forecast. the storm takes a path towards florida or southeast coast this upcoming weekend.

the key is tonight over dominican republic, haiti. emily could dissipate. if it survives then it will scare if not be on the southeast coastline this upcoming weekend. anyone with beach plans could be affected. this could be a strong tropical storm or a hurricane this weekend. we also have a change in the forecast. a lot of areas of clouds and showers coming down from the ohio valley. finally an enjoyably cool day around washington, d.c. carry the umbrella in many areas of the mid-atlantic. chance of showers. talk about hot. 112 in tulsa. today in dallas right around 110 degrees. beautiful shot there. empire state building, lady liberty right behind. you're watching "morning joe" brewed by starbucks. i love that my daughter's part fish.

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bashin

a former staffer claims presidential hopeful newt gingrich paid an agency to artificially pump up his twitter numbers to show a million followers. >> newt insists his twitter followers are legit and i have no doubt on a man who cheated on two wives. let's say he did hire a firm to create his twitter followers. fine. making up people could be the key to keep newt's campaign alive. maybe he should create fake staffers and donors. make him look real rich. give him a 0 top hat. while he's at it he should create a fake newt gingrich. because the current one is not doing too good. >> okay. 26 the hour.

time now to take a look at the morning papers. the "new york times" breaking with the party. new york senator kirsten gillibrand voted against the debt deal. she was disappointed it didn't include new taxes on the wealthiest of americans. >> what is that about? >> people want to focus on the political things. she has principled objections to it. if they needed her vote she would have voted yes. >> "the washington post", mitt romney's top advisors said he's beginning his second phase of his presidential campaign. the governor will focus exclusively on the president's breathest vulnerability, the economy and job creation. romney also plans to avoid any engagement with his republican opponents. >> "new york daily news", next time you get a park being ticket, just be glad you don't live in lithuania. in the capital city the mayor is

cracking down on illegally parked vehicles by running them over with his tank. what? >> watch this. a merecedes. >> wow. >> in this case this car was illegally parked in a bicycle lane. someone asked if michael bloomberg would consider doing something similar. the deputy mayor offered firing up the tank. >> willie geist -- "politico". mr. mike allen. hello. >> we just heard steven colberg's take. another aide is leaving? >> there's less. a little tough to top colberg. yesterday tim cameron who was head of operations at gingrich's think tank said he was leaving

to go into the private-sector, to go over to another republican firm. he's been out there having to defend that twitter feed that as was mentioned has been charged with being fleeted. the twitter feed may be okay. it's over a million people. the reason for that is that newt gingrich along with john mccain were two of the few republicans who originally were on the twitter list of recommended feeds. >> mike, we've been tough on newt at times. he deserved it. but this seems to be a nonstory only because newt gingrich -- you go on to any conservative site in the past five, six, seven years newt is all over the place. say what you will about other people. i think newt would be one of the few people that would need to build a following. newt has a huge following outside of washington, forget

what the polls say. you know, if he goes and delivers his speech, he's going to have thousands of conservatives in certain cities coming out to listen to him. >> that's right. he personally engages on twitter which is what builds it up. what's interesting, i didn't know about these follow agencies and what they say. >> didn't either. i need them. >> you can look for suspicious, either a profile with an odd name or a profile with no photos. tons of, like private ones looks suspicious. but even if it's pumped up for the reasons you're pointing out, former speaker gingrich has been big on the twitters from day one. >> we were asking how we can get our followers pumped. we want in on the action. >> thank you, mike allen, so much. >> a small percentage just write nasty things to me.

>> don't look. >> i felt bad for the president because my fwosh they come out. they are angry. >> they are following you for at that reason not just on twitter but outside. >> they are following you. >> especially if you don't like pick a side and stick with it. >> but you can always tell who is winning and losing, the overall debate. one day it will be the right. everybody is a little defensive. >> a little defensive. >> coming up, tiger woods, back on the golf course for the first time in months. >> we'll tell you what he had to say about the long time caddie he just canned. plus a walkoff ending. red sox-indians last night. we'll show you what happened last night when we come back. ♪ [ p.a. announcer ] announcing america's favorite cereal

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♪ live shot of capitol hill. welcome back to "morning joe". 34 the hour. former egyptian president hosni mubarak wheeled into court on a hospital gurney for the beginning of his corruption trial. the 83-year-old was placed in a

defendant's cage made of iron and mesh bar as he waited for the hearing to begin. mubarak, his former interior minister and six police officer are charged with the attempted murder in connection with 800 protesters killed during february's violent 18 day revolution. all eight men face the death penalty. >> keep this shot of mubarak up. mike, what i'll say here is unpopular, i'm sure and mubarak, i'm sure was a beast to his people at times. and my concern is this. in this quote arab spring, what do these images say to let's say assad in syria? and to gadhafi in tripoli as they watch what happened after you lose power and you stop killing people. >> there's no reason for them to

leave voluntarily. >> kill the last person in the street. it is immoral, it is horrific, these are barbarians, but it seems to me this sends the wrong message to the people we are trying to peacefully get. this is what we do. not what we do, but this is our ally of 30 years. >> why hasn't the president talk about syria and assad and said he has to go. he said that about mubarak. >> he didn't say that about assad in syria or mahmoud ahmadinejad in iran back in '09. i don't understand. >> i'll make a counter argument. that justice to message says ju. nobody is above the law. >> good luck to state department officials trying to get assad or gadhafi peacefully out. >> we'll never get them out by

force or by demanding they get out. they will only go when their people demand they go. >> listen -- >> a little trickier than that, i would think. you deal with the turks to get assad out of there. with regard to mubarak, it does say justice, you're right. those pictures do say justice. but if we're going to have justice i want our money back, the money he has stolen from us over the years. >> i agree with that. >> pat buchanan. >> this also says look, this is what happens to leaders who support the united states of america for 30 years as he did and whatever you say about mubarak, he was an air force officer, he kept the peace with israel for 30 years, he kept that border peaceful, and he did what the americans asked him to do and now he's being wheeled in on a gurney and i don't doubt this guy is a ruthless dictator, but, again, if you're assad in

damascus and looking at this, they are saying this is what americans got in store for us? no thanks. >> not because he was an american ally. he's there because he allegedly did things involving stealing money. >> he's out of power because we told him to go. >> yeah. >> we wouldn't support him any more. i want to be clear. i understand the justice. and i understand this is great on many levels. i also understand, though, this, there are people in the state department who are looking at that picture and wincing, going oh, god the next time we try to tell somebody to go out of party, they will say -- >> what about the saudi royal family. >> the saudi royal family. what if that happens. they will say, well look what happens to america's allies. they are telling us to leave. no. we'll shoot the last person in the street. >> that's a really good debate. >> a transition to democracies

in the middle east, more difficult. that's the reality. >> maybe it means they should leave their country when they leave power. mubarak stayed. >> they put him under arrest almost immediately. >> he could have negotiated. >> that's the key. >> we'll be following that story. right now for sports in willie. >> tiger woods, returns to the golf course yesterday getting ready for this weekend's tournament in akron, ohio. tiger hasn't finished a golf tournament since four months ago at the masters. he talked about his health and the dumping of his caddie. >> i feel solid. i feel stable. no pain. stevie and i had an amazing run. he's helped my career. i think i've helped his as well. we've had a great partnership for 12 years. maybe more than that.

i felt it was time to change things up a little bit. >> change thing up after williams hung in there with him throughout the stripper scandal. >> class. >> you never really know. >> let's go to baseball. red sox-indians at fenway, great game last night. popped into the seats. tied the game at 2-2. bottom of the ninth 2-2. delivers one to center-field. they try to score the winning run. great slide. oh, my lord. safe at home. that's your winning run. red sox win in a walkoff. the yankees also run. still a game behind the sox. >> a couple of things. mike ellsbury is out for several months. poor guy. this guy i don't think i've ever seen a guy the way he's taken off. >> come back player the year.

>> you could make the argument 100 games in, mvp. you could. >> no doubt about it. gonzalez is amazing. willie we sit here and talk about the red sox every day. the yankees get kicked around because they are in new york. this is a great team. >> wakes have won five games in a row. cc sabathia is as good as he's ever been. they could win the division. a great august and september with these teams. >> mike says possibly great october because you say the team everybody needs to look out for -- >> the texas rangers. >> the texas rangers have found their groove. >> cardinals and brewers. they up a lead. albert pujols drilled in the hand. check it out again. right off the hand. he shook it off, though and stayed in the game.

kanls cardinals retaliate. next pitch he's a bit more accurate, throws one into his back. back-to-back pitches. top of the 11th inning, berkman singles. milwaukee still 2 1/2 games up. >> why don't umps after the pitch is thrown inside and missed why don't they go out and talk to the pitcher because you know they will throw right at them. >> they warn both benches. >> a warning. >> if he issues the warning -- >> you got to give a warning first. coming up next, mika's must read opinion pages. plus some news you can't use. vladimir putin gets more strange by the day. he's trying to bend a frying pan

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now i'm here for her. [ female announcer ] ask the doctor about your loved one trying the exelon patch. visit exelonpatch.com to learn more. >> the two sides came together. that's how our system works. neither side got what they wanted. each side laments some of the things we had to give up but that's the way it is. >> welcome back. 46 the hour. time for the must read opinion pages. we'll start with george will, a record obama -- >> that's tough. >> seriously. i'm is going to read it. then we have one by tim geithner. >> everybody doesn't have to agree with you. >> interesting. obama's presidency may last 17 or 65 more months but it has

been irreversibly neutered by two historic blunders. it defined itself by health care reform that most americans didn't desire rather than economic recovery and encouraged self-indulgent liberal majorities in congress to have an undisciplined of parochial appetite. the stimulus as a policy, america may be one-third of through a lost decade or towards a lost national identity. the republicans have their 2012 theme. is this the best we can do? >> who could argue with that? >> i like your theme better. things don't work. stuff doesn't work. >> so who can argue with that. >> i'm not sure it's irreversible. >> i don't think it's

irreversible. the point he raises are legitimate. the initial stimulus package. some of the stuff in there, mike halperin, bogus stuff. predictable. didn't create one shovel ready job. >> i think the biggest problem for the president is it wasn't his stimulus plan. it was congress's. it was gunk that didn't do a whole lot. i would actually say, mike halperin, he has two other mistakes that i focus on even more. we can't prove the impact of this. i'm just saying, i hate to sound like a broken record, if bill clinton were president and he would have never extended the bush tax cuts. certainly not more millionaires and billionaires. he would have used that to crush the republicans. he would say i would give you tax cuts up to the million. republicans would have fought for the millionaires and billionaires. but we said on this show for

political reasons the president should have done that. he would have had middle america with him. he didn't do that. the same thing this past week. i'll say it again. the president three weeks ago, we started saying it three weeks ago, he should have stared down the republicans. so we have 9.2% unemployment. if you want to take it up to 11% unemployment for not giving me what ronald reagan got and george bush got, go ahead. i'm not going to sign your debt ceiling deal. the president would have won that battle with independent voters and with middle america. but this is a guy who doesn't like the tough fight. >> well, he's won a lot of tough fights in his career and betting against him has not been a good thing to do. he's clearly now got to dispel the notion he's not a tough negotiator. he's got to dispel that. he has a lot of chances to do it. >> you know, pat, though we knew

around the table three weeks ago republicans would get their way, liberals are complaining about it now but we knew because politicians passed this prolog. he's not like bill clinton taking his opponents to the wall. >> joe, you know what ronald reagan would have done? >> what's that? >> he would have sents to tea party guys u-keep it up. he said you send it down here, i'll tell you what i'll do, you won't force this thing on me, i'm going to invoke the 14th amendment, i'll send those chx out to thes is sfoblgs. the checks are going out to the guys in afghanistan. you're not going to shut this country down. i'm taking, impeach and be damned. if he did that i think he would be -- it would be like reagan with the air traffic controllers. you'll never forget it. i was in a cab and the cab driver said did you see what he did to the air traffic controllers. if i knew this guy was this tough i would have voted for him. >> that's an unbelievable -- you're exactly right.

if the president said consequences be damned, i will not let the tea party stop seniors from getting their social security, keep them from getting their health care, men and women fighting our wars in afghanistan and iraq, i won't let a small group of republicans stop these checks from going out, i'm invoking the 14th amendment and if you want to impeach me for it, bring it on. >> the president would be up to 60%, independents would be for him and the tea party's back would have been broken but this president does not have that in him. >> today is the anniversary of that air traffic controller speech. >> i remember watching that, mike halperin. at the end of the day americans want strength in leadership. and i remember, i was with my two democratic grandparents who had the same reaction as the cab driver. and my grand mom said, she voted

for him. >> the president doesn't have very much. i think he would have been creamed by 45% of the country if he did that. >> the liberals -- his base would have supported him and independents would have flocked to him and he would have broken the tea party. >> still ahead we'll bring andrea mitchell and wes moore. and willie's news you can't use next. >> i must tell those who failed to report for duty this morning, they are in violation of the law, and if they do not report for work within 48 hours, they have forfeited their jobs and will be terminated. hi, umm this other store has these for 20 cents less. what?! -match it! -match it! -match it! -match it! -match it! -match it! -match it! -match it! -match it! -match it! -[ horn honks ] -match it! thank you, got it. i'll match that price right here. cool. [ male announcer ] get low prices every day on everything. backed by our ad match guarantee.

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>> news you can't use. vladimir putin helicoptered into a russian camp for kids. lakeside camp -- >> look he's rock climbing. >> did some rock climbing. >> have you ever seen him in the buff. >> he's judging some arm wrestling. then he wanted in on the action. here's the picture you really want to focus on. we don't know why and i think the campers were confused he tried to bend a frying pan with his bare hands? did he? he did not succeed.

>> why? >> because they gave him the wrong frying pan. >> someone was terminated. >> someone was terminated, yeah. >> here's some other great moments in vladimir putin history. doing a little indycar racing driving 150 miles per hour in a formula one vehicle. >> i want to do that. >> funny you should ask. there he is. >> oh, yeah. >> riding through siberia, topless on a horse. swimming. fishing, boating. here's another of my favorite. 2008, beating the crap out of a little kid with some martial arts. take down. >> actually the one thing you don't have him doing here, i'm surprised, remember when he sang? >> oh, yeah. yeah. we'll get that for you the next hour. >> a renaissance man. >> tiger hunting incy siberia.

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with exceptional values on the lexus is. but only until september 6th. see your lexus dealer. we don't believe and the american people don't believe raising taxes, job killing tax increases in the middle of this serious recession is a direction we ought to take. and the bill we just passed avoided doing that, even though the administration desperately wanted to raise taxes.

>> okay. top of the hour. welcome back to "morning joe". mike halperin and mike barnicle are still with us along with pat buchanan in washington. joining the table right now, though, finacier, steve. >> we've been hearing a lot over the past couple of days, a lot of democratic senators, commentators, some op-ed people telling us so much in slashing spending children will be kicked out of schools, parents will have to be feeding their children pine cones and wild berries. you got a chart. this is serious. it's unbelievable. they cut so much. i guess all of our long term debt problems are taken care of. let's take a look at what actually happened. so they did cut or were going to cut $2.1 trillion often years, back loaded and so on.

this is a chart we looked at a couple of weeks ago. if you remember back in 2000 we had a surplus because tax revenues were 20.5% roughly. spending took off. you can see in the middle of that chart. spending at 28.1%. if we had done nothing -- >> for people at home the red line is the spending. the blue line is the revenues and they are going in the wrong direction. >> they are going in the wrong direction. let's look at the two top red lines. two top red lines would be what would have happened if congress did nothing. gdp would have been up to 29.5%. it would continue to rise. >> now from 25% it's now at 19%? it's devastating all of america. >> this deal that's devastating all of america cut 1.5 percentage points. out in 2021 spending will be 1.5

percentage points lower. spending of gdp will be about the same as it is today. it hasn't gone down. with some assumptions about extending the bush tax cuts and some other modest revenue assumptions we'll still have a deficit of 2021 of a trillion and a half dollars. those are not today's -- >> unbelievable, steve. if you look at it historically, the fact that they were fighting over whether we get a trillion or 2 trillion or 4 trillion, you go back to a chart you brought us a couple of weeks ago that shows us our obligations over the next generation, $54 trillion. this is just a drop in the bucket even if we get in the grand bargain we've gone from 54 trillion in obligations to 50 trillion in obligations. that we can't pay. >> that's correct. actually those obligations would have gone up even under this compromise, debt of percentage

of gdp goes from 70% to 80%. we talked a lot on this show, even with this, it goes up. yes. this is a drop in the bucket. what it illustrates is we'll face some very tough social moral policy choice. how much health care do you want to provide to people. should senior citizens pay 25% of their medicare as they do today or should they pay 6% as the ryan plan would have them play. should the bush tax cuts stay in place as the republicans want them to or should we have something more like the clinton tax use. none of this will solve this rob. but they would bring us closer to the middle. >> let's drain this argument of all ideology. if you're a liberal assume we'll get it by taxing the rich. if you're a conservative we'll get it to guy cutting government functions. one of the most shocking things is when i heard how savage the

ryan was. everybody said the ryan plan will do all these things to seniors. even under the ryan plan, which is not possible by washington standards today, the debt ceiling goes up $4, $5 trillion. >> $7.5 trillion. >> that's even more depressing. even under the plan that we hear is savage, that cannot be passed, we go up $7.5 trillion in debt. this is a day of reckoning is coming soon. >> when you think about it and i don't choose to think about it a whole lot depressing. because what you just said, you know, the way washington is today. the way washington is today, you'll never deal -- they are incapable of ever dealing with the true triggers to this situation. social security. medicare. incredibly truly reforming the

tax code. >> tax cuts. >> as we know, and as you pointed out the way they got this deal was punting on the two critical issues which are taxes and entitlement programs. that's the way they got this deal. it will cut out discretionary spending. >> pat buchanan, the one thing we can't afford to cut right now in our race against china and emerging economic powers we can't slash infrastructure. that's 10% of discretionary spending. 10% of the budget. >> joe, what's going to happen looking at these numbers is what's been happening this year, the dollar fell 30% against the swiss franc. i think it fell 10% against other currencies. we're borrowing dollars of more value than the ones we pay them back. the value of the dollar will go

down lower and lower and america is coming home. the intervention abroad, the war, the foreign aid, the whole trillion dollar warfare state with nuclear weapons, that is inevitably coming down. you can't sustain with a currency which is losing its values in the world markets. >> i think pat is exactly right. i think the decade of war is going to be followed by a very skeptical american public in the coming decade. >> i think the first chart that steve just showed us showed us really a problem with how our political storm can function in an effective way. love it or hate it i would have liked to have something that moved us forward on one of these issues. and we're nowhere. >> crisis averted. now we need to switch to jobs. as i said before jobs won't be created in washington, they will be created by the private sector and in the states. steve's numbers he said are rough.

part of the biggest variable in the debt reduction is economic growth. yes it has to be entitlements and revenue but there has to be economic growth. no one can look at what happened in washington even though a deal was reached and say well now -- now they will figure it out. we still have republican controlled house. we still have a democratic controlled senate and a democratic president. if they are not working together this scale will be too small to address the problem. >> no doubt economic growth has to increase. no doubt about that. jobs, jobs, jobs. i've been saying that for two years. it won't happen unless small business owners and big business people are going to look at what happens in washington with some confidence that they know what they are doing. over the past two or three months it looks to them they don't know what they are doing. >> you look at the debt deal. we hear we got to get a debt deal, steve, to avert an economic crisis. we get a debt deal and the markets fall. you got a chart for that.

>> it's interesting what's happening in the market. the market was doing quite well until late july and then it started to swoon. it first started to swoon over the debt ceiling, over fears of a default. then we got a debt deal. we got a debt deal on a sunday. tokyo went up. the futures in the u.s. went up. i was on that show that morning. i said the markets would open up. the next thing the commerce department issued another bad number this one having to do with manufacturing which was way below expectations. and lo and behold the market fell out of bed. what you've had in the course of the last month a series of numbers that's below expectations and what they need be to keep this economy growing. consumer spending dropping in june for the first time since 2009. personal income barely going up. manufacturing i mentioned. of course you have the gdp as pat mentioned earlier is growing less than 1% for the first half the year. the market is scared.

the market is down 6.5% over the last several weeks. it's the biggest drop since 2009. and, you know, look, government has not been in the job creating business. government has been in the job destroying business. this kind of a decline in the market which is partly due to a loss of confidence is loss of jobs. what's going on at faa destroys jobs. how can businessmen -- in this particular moment when businessmen say how can i plan my business, how can i decide whether to buy a piece of equipment or open a plant when you have no where what's going on in washington, i do understand that argument. >> pat buchanan, you look at the last number that steve brought us and that's consumer confidence whether you're talk consumer confidence or confidence small business owners have corporate owners have, the bottom line in the past three or four years, since september 15th there has not been confidence among small business owners, among consumers, among

corporations to say hey let's go out, let's expand, let's grow this economy and a lot of that has been driven by fear of washington and not just the obama administration but the republicans as well. >> i agree 100%. steve, you know, you mentioned the first six months of this year we've been growing at under 1% and of course fiscal year 2012 begins in two months. if we're growing at just under 1%, .9 or .8 doesn't that indicate that the revenues anticipated in fiscal year 2012 are not going to be there? and secondly, we're going to be running a deficit maybe of 10% of gdp again and isn't that supposed to be a tremendous stimulus? that's an enormous stimulus, is it not? almost at new deal levels and we're not getting any growth. >> first of all, as mark pointed out before the fact that the gdp numbers are getting softer. so those numbers i showed you

before will get worse. >> make the national debt higher. >> everything higher. >> a percentage of -- >> tax revenues will be worse. everything gets worse if we don't grow. pat is also correct. we have a massive amount of stimulus in the system both in the budget deficit as well from the fed which is holding interest rates at zero at the moment and still not enough to get this economy growing and that's hat the debate need to be and should be. >> let's talk about stimulus for a second. there's always an argument for republicans, democrats, supply side economics. i think because everybody looks at this so ideologically, my team versus your team, i think a lot of liberals have overlooked the fact and a lot of conservatives have overlooked the fact that george w. bush, his eight years i would argue, because tax cuts are -- i would argue nobody says fdr or maybe

lbj has been as pro kansian as george bush. massive tax cuts. massive spending. $7 trillion medicare drug benefit plan. this is not supply side economics. george w. bush was the most reckless spender at least since lbj, i would argue, go back, take reckless out since fdr. we have a decade of kansian economics and it's led us here. ? if you look at our trillion and have deficit, 4 trillion is bush tax cuts. and and we're not getting growth. even if you hate those tax cuts. even if you hate those wars. even if you hate the explosive domestic spending it should still stimulate the economy.

if it's not stimulating the economy, i'm talking how sick our economy is structurally. we've had a decade of kans ampb n economics. we have nothing to show for it. >> you have a great society, george w. bush who had the biggest build up of the federal government running two wars which everyone says in the 30s the war saved us there and all that enormous deficit spending and obama comes in and the economy tanks even more and his deficits are two, three, four times what bush's are and the fed is tripling the money supply and nothing is going. >> steve, look what the fed is doing. they are making alan greenspan look like a tight wad. >> everything is compared to what. if we didn't have the obama stimulus what would have happened. >> i understand that. >> would have been a lot worse. >> no doubt it would have been

worse. i don't want ideologs to confuse the message. >> we're on a precipice. >> a decade despite -- it's like getting what do you call those things when you put it on the heart, a defibrillator. >> the stock market will open up a little bit today but it's frightening. >> republicans in washington think the biggest drag in washington is obamacare. they have little incentive to work with the president to make the economy better. >> that's one. stupidest arguments. i opposed obamacare but to make the argument that the economy stalled because of obamacare, steve that's stupid. >> that's stupid. the other fwumt is to suggest these cuts will make jobs

increase. that's stupid. >> and people on the left say these cuts will make the situation worse. are stupid. so small. this is all ideologica ideological jibberrish. can you imagine if somebody ran for president, can we talk about an independent candidate. if somebody with money ran next year -- i'm going to get us out of the wars. i'll cut spending. and i'm going to reform the tax code to make sure that billionaires and millionaires at least pay as high a tax rate as their secretary. that person would win. >> going forward. >> a fourth thing make it the first thing. i don't care what the democrats think, i don't care what the

republicans think i'm going to do something for the country. then you do it. >> country first. >> okay. it is over. seriously. you know what? that's where america is. washington is so divided. >> coming up, nbc chief foreign affairs correspondent database. >> he extended the bush tax cuts. he passed on tax reform. >> andrea mitchell will join the conversation. also the man who called the debt deal a sandwich, congress man emanuel cleaver and wes moore. first bill karins with the forecast. >> what is emily going to do? tropical storm will affect the dominican republic and haiti later on today then it has its eyes on the southeast coastline. it's south of puerto rico approaching the dominican republic. the forecast takes it over dominican republic tonight then through the bahamas off the

florida coast and off the southeast coast possibly as a hurricane. it could hook here or brush the entire coastline. weekend along the southeast coast is in jeopardy. we're watching showers from ohio through pennsylvania. that will keep you much cooler in areas like philadelphia and d.c. as far as the middle of the country no, relief for you. 110 in dallas. today we're right there again with a forecast hive 109. you're watching "morning joe" brewed by starbucks.

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program signed the debt ceiling compromise and america narrowly avoid a catastrophe. giving the democrats anything they want. just look how this defeat has broken harry reid. >> all my trees, i'm told are

blossoming and i have fig trees and roses. [ laughter ] >> oh, my god. how is obama going to tell harry reid he also gave the republicans his pomegranate trees. >> very interesting. confused by that. it must be out of context. a look at the white house. chief correspondent and host of the daily rundown, chuck todd. chuck, i'm losing hope here after steve rattner showed us some charts that showed us just how much nothing is moving forward in terms of the deal except averting a crisis. tell me about the super committee. it must have some super abilities to move our country forward, make the proper cuts and create jobs and create a great platform for the future. yes? >> they have capes and uniforms

except they have their version of cryptonite. jon cornyn said mitch mcconnell assured, none of the three republicans that are going to get appointed by mitch mcconnell are going to be open to tax increases. translation, tom coburn won't be on there, crapo won't be on there. the three of gang of sixers. democrats are going to put somebody on there that isn't going to listen at all. and even have the conversation about medicare or social security. so you can just feel the stalemate brewing. or democrats do put some folks that compromise. so, you see where this is headed. and it's not going to be a pretty sight. and yesterday was interesting, mika, paul ryan and gene

sperling, the president's chief economic advisor here basically had a debate back and forth whether even the super committee could touch the tax code. paul ryan makes the case they can't. >> great. >> so there you go. they are not super at all. >> no. how do we -- how are they going to choose whose on the super committee if nobody can be on it that honestly could really create a good like sort of team of rivals that would come up with something constructive? >> i don't envision how that happens. you know you can just see that it's too close to the election, going less than a year out, nobody is going to want to vote for something, neither side will want to vote for something that will upset the base of their party. so i just can't imagine how this -- that's why the trigger fight was so real at the end because i think all of these folks in the back of their mind -- >> the trigger. >> i don't think the trigger will get pulled.

>> the enforcement mechanism. tell me how that puts the kabosh on people holding off and doing something. the trigger mechanism, right? tell me about that. >> it's supposed to. but when you look at what it is, democrats are like we're only hitting medicare providers. and while republicans aren't totally comfortable with all the pentagon cuts they negotiated so that it's security so they can say we got foreign aid in there or we got -- there's going to be a lot of people unhappy about the trigger in congress but i don't know if it will make them unhappy enough that they will encourage these guys to put a couple of their ideological sacred cows on the table. >> chuck, what do you think the sense is within the house and the senate, the members of both groups, senators and congressmen, do they have any idea of the wind, the strength

that they have given to term limits moments in each and every state in the union to just get these people out of there? >> you know, mike, actually i talked to a lot of nonleadership senators in the last couple of weeks in particular. number one, they are frustrated. number two, they were bored. i don't mean as if they had -- because they western in the room. and they were frustrated because here they were not in the room, trying to come up with an idea. they didn't feel their ideas were being listened to because at the end of the day it was leadership and the white house negotiating this. then they couldn't even get other stuff on the agenda. the reason all this faa thing didn't get worked out, there was just no band width for leaders in congress to deal with this at the end. three free trade agreements that everybody agrees to, the white house and labor have signed off on a couple of them but enough -- that's sitting on the

table. a couple of easy things like patent reform, again, that everybody is for. just wasn't enough band width. so there's a bunch of frustrated senators that behind-the-scenes and this is both parties, not happy with leadership, not happy with how this whole thing went about. they are sympathetic with what leadership had to deal with but are you wondering are they going to speak up. will they say we have to change this. this was ugly. this was a these. now we're about to hand off this debate again to a super committee which will then -- it's 12 people and we own it but we don't get to influence it. there's so -- >> chuck, we agree that nothing was done with the law that was signed yesterday, nothing will be done with the super committee. let's put that to the side. the president yesterday in the rose garden says he wants to turn the page to swrobs and the economy. that's a perilous turning of the

page for him. george will puts out the question that he thinks all republican presidential candidates should be asking on trail this morning, he says is this really the best we can. we have bad gdp numbers. we'll have a july numbers on friday that probably won't being a great. how does president obama answer that question, is this the best we can do over the next year? >> that's the struggle he'll have because he's obviously got to give a positive answer. look this sharrod. we have to dig out of this. this will take a long time. but you've heard from steve, i've heard from other economists that say this economy has to contract for a little bit before it can expand again. it was bubbled every where. we only talk about the tech bubble or the real estate bubble. it was bubbled up every where. whether it was people making too much money on wall street because salaries got out of whack and that messed things up -- just the whole country just needs to contract a little bit and the only thing that can

soften the blow is if somehow global demand goes up. that's a problem. i don't think there's any plan that any president or member of congress could actually put into place that actually helps that could just do plans that don't hurt. >> steve, the debt deal didn't mean much for the markets as we saw yesterday. >> no, because it was overwhelmed by the economic numbers. my last question for chuck is there an appetite in the white house to try to do sorry to put something on the table so for political reasons if no other reason it looks like they are doing something. >> up see the little thing. the president said i have to sign all these laws. those free trade agreements at this point, exports -- best thing can you hope for maybe that helps. business is happy. that's one of the things that could create jobs. patent reform, infrastructure. but they are little things. what they would like to do they can't. you know what you would argue,

what a lot of democrats would argue this is the time you got to throw some money into the economy and boy there's no political appetite for that. although, you know, funny things happen in the next couple of years. one poll number we include every quarter is dealing with the problems now, do you want government to do more or less and the economic numbers have dropped, the percentage of people wanting government to do more has gone up. we'll see. >> interesting. >> willie, you're a smart young guy, graduate of vanderbilt. contractions that steve was referring, to who among us do you think we'll get hurt by contractions. rich people or middle income people? >> that's an easy one. right in the middle. >> chuck. >> that was uplifting. hey good news. >> the florida marlins should be contracted. i'll throw that out too.

>> you're right. they should become the miami marlins. finally we left the fog of wayne's decision to name the florida marlins. i blame him. my garbage will never get picked up again. >> what uplifting guests do you have at 9:00. >> i'm going to talk to anita dunn to talk about how do you run for president now, buddy. >> chuck todd, thanks. coming up, congress breaks for a month long recess leaving thousands of workers without paychecks. we'll explain why next.

welcome back to "morning joe" with the debt negotiation now officially over congress on recess until after labor day but one issue is quietly slipped through the cracks. the battle over the federal aviation administration's budget. the senate tried and failed yesterday to end the stalemate now leaving tens of thousands of workers out of work and without paychecks. nbc's lisa myers has the story. >> reporter: in the last ten days, 241 airport modernization projects around the country have been shut down, laying off

70,000 construction workers. also sent home without paychecks, 4,000 faa employees. >> we feel we're pawns in a political game. >> reporter: this faa engineer in pittsburgh says the loss of pay hurts everyone. >> i'm concerned with whether or not i'm going be table pay my mortgage. >> reporter: now the house has left town for the rest of the summer without ending the stalemate meaning these workers could be laid off for five more weeks. >> this is not the way to treat people. the money is there for these construction projects to go on. all congress has to do is pass a bill. >> reporter: the bickering centers on house republicans that any bill to keep the faa operating also curbed costly subsidies from 13 rural airports some of the states with powerful democrats. >> all we're trying to do is end these wasteful subsidies. >> reporter: democrats accused republicans of a stunning

display of politics over people. >> because they pass ad bill and said to the united states senate, either you take it our way or there will be no runway and no highway and no way. >> reporter: the federal government is losing $200 million a week in airline ticket taxes. in most cases that savings is not being passed on to the public but instead being pocketed by the airlines. >> that was lisa myers reporting. congress is gone until after labor day. it's estimated the standoff could cost the federal government up to a billion dollars in lost revenue. some of those safety inspectors at airports being asked to work out pay and to charge government travel on their personal credit cards. coming up next, nbc chief foreign affairs correspondent andrea mitchell joins us from washington. and our friend wes moore standing by in the green room. keep it here on "morning joe". [ male announcer ] looking for a complete picture of your money?

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[ female announcer ] introducing onstar fmv. get it installed on your car at best buy or visit onstar.com for more stores. welcome back. 42 past. new video out of syria where government tanks are rolling into the flash point city of hama. they are renewing their assault on the city as the obama administration is receiving increased calls on syria. more than 100 people have been killed in hama. >> if you would say about assad and the syrian government what he said about mubarak, i think that would be a good start. >> on that note joining us now, nbc chief foreign correspondent and host of "andrea mitchell reports", mitch much. here at the table we have best selling author and combat

veteran of the u.s. army wes moore. good to have you back as well. we were seeing the video, andrea, earlier on the show of hosni mubarak in court in sort of a jail cell in court on a gurney. and first of all, just bring us up to date on what's happening with that. we had a little bit of a debate earlier which we may revise. >> reporter: the fact is this is obviously a political trial. the idea is to show him you had my lie at itted to a show a transition. we frankly have here in the u.s. with all of our focus on the debt crisis and everything else have really not end as actively engaged and certainly the american public has not in what's happening in egypt. you mentioned syria. we can talk about somalia and what's happening in libya as well. foreign policy will take a huge hit in these budget cuts. if the trigger kicks in then the foreign policy, national security and defense are completely whacked.

so that's one of the big deals out there. we got a new ambassador, ann patterson that justified arrived in cairo a week or so ago. she's the most senior and decorated of our diplomats and most recently she was in pakistan. she knows what a tough assignment is. this one is very tough. they got to be worried about not only the muslim brotherhood but other islamic groups. there's a huge conflict there. tropic has not taken hold that many had hoped during the so-called arab spring. and egypt is the largest and most important country in the entire region. then you look at what's happening in syria. >> we have some conflicting interests here. we certainly as we look towards egypt, we want justice to be done in egypt. mubarak, not just what he did during the demonstrations, you

can go back to 1981 after sadat was assassinated, al qaeda was formed in the torture cells, mubarak's torture cells in thor aye '80s. he came out of those cells and the torture he endured, a hardened man and it really was the beginning of his quest to destroy egypt and america. so we understand all that. but is the state department concerned? is the american government concerned about the rest of the world seeing mubarak in a hospital bed locked behind bars that might make it more difficult to get other government leaders out of power as they try to move aside for a more democratic government. >> sure. this is a process that has to unfold. the fact is that mubarak was our ally, and was israel's ally for

all of those years for good or ill. nothing was going to work in middle east peace without mubarak and he was the guarantor of security regarding gaza and the access to gaza. >> does this send a message to the rest of the world of what happens when you stand by america? >> that's one of the messages that came out. one of the reason why the saudi leaders are furious with the obama white house for not standing by mubarak. the reason we've not been able to be tougher on syria is no one else in the arab world is joining us. all those leaders are standing with assad for better or worse because they don't want what happened to mubarak. that's your point. >> very difficult situation. we want justice at the same time we want to give incentives to people like gadhafi and assad. if it ever gets to that point where we can tell them leave, take your family, go in peace.

just get out of the way and let a democratic government take over. >> these images, obviously, get in the way of the state department telling other tyrants to do that. the debate you were all having is an extremely important. your right. the image of mubarak and his sons and his interior ministry in this cage is jarring. and assad and dad ifgadhafi is watching this carefully. the egyptian people are watching closing. >> wes, if he walks, and if people think he walks because of american pressure, it strengthens the muslim brotherhood. all i'm bringing up, as we see him behind bars let's just not cheer and say justice wins out. this is very difficult. because if he is allowed to walk that strengthens our enemies.

>> there's a large movement, there's a large belief inside of egypt that cause of his health issues that he's actually stalled this process out. so for a lot of people in egypt they want to see this. they want to see thrill. the reason why it's being nationally televised is for that exact reason. this is complicated. all those interests have to be factored in. >> joe, let me point out also that the state department and the white house have been criticized for not doing anything about hama, what mika showed what's happening in syria today, yesterday, the couple of days. yesterday for the first time hillary clinton met with u.s. based dissidents and they want to increase pressure on assad. it's not clear the u.s. is able to move because the rest of the arab world won't. >> why did delay? i understand the rest of the arab world won't. if you look at the middle east over the past decade, our only

two and put it in quote marks, our only two enemies really left to pull out anti-american leaders are in iran and syria. i think a lot of people have found it curry obvious the president hesitated in 2009 speaking out against 20 oat. we understand that what he said in 2008 about having an open dialogue with the iranian people. but syria? i find that curious. >> what else could we do? >> that's the answer to joe's question. they felt, i think because of the pressure from the rest of the arab world that they did not have any allies and could not take on syria without arab allies. many will argue, joe, that they took on the wrong fight that they shouldn't be worried about libya, which is not strategic and should be worried about syria, which is not only accused of being a state sponsor of

terrorism which is a base for hezbollah and has been dominating lebanon to the point of certainly being involved in the assassination of lebanon's prime minister. >> by the way, the rest of the arab world is not speaking out against syria, is it because a weaker syria strengthens israel? is that because that is so intertwined, obviously, the israelis and the syrians have been fighting for some time with lebanon in the middle? is that why there's a hesitancy. >> i think it's also complicated by the sunni/shia divide. assad is an ally of many of those other arab regimes. >> from your quickly from your foreign to domestic expertise, what are your plans with nancy pelosi today. >> i should ask your advice. with the wreckage of what's happened on the hill and the way the democratic and -- i mean

95-95, the split in the democratic party. the clear distance between the democratic leadership on the hill and this white house. what next? what's going to happen with this committee? is this committee going to be completely deadlocked as you were discussing with mitch mcconnell appointing hardliners and the democrats appointing -- pelosi is appointing people who will not cut medicare. then we're back to where we started. >> how to create a group that will get something done. >> not going to happen. >> andrea mitchell, good luck with that. we'll be watching at 1:00 eastern time. thank you very much. we'll be right back. woman: day care can be expensive. so to save some money, i found one that uses robots instead of real people.

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welcome back to "morning joe." we live in a red sox centric television world right here. >> we sort of do. i'm sorry. >> we're going to show the red sox highlights again. >> are you sure? >> let's do it. it was guy game. >> doesn't matter when wl they win or lose. >> kevin youkilis, one up above the green monster to tie the game at two. this one in the ninth to decide the game. ellsbury knocks one to center. look at this one. >> what a great slide to the outside of the plate.

that is your winning run. the yankees also won. >> yankees are so hot, man, five in a row. this is a good, good team. >> they're playing without a-rod, jeter has been done this year and they're still right there at game time. >> who are the key players? >> cc sabathia, your workhorse, your key player. they have great pitching from guys they didn't expect it from. nick swisher is hitting the ball. it will be a fun, fun summer. >> totally unrelated. mika, the lithuanian mayer who crushes illegally parked cars with an armored personnel carrier. he's an advocate for cycling. this obviously staged to make a point. did he crush a mercedes in the process. if you live in this lithuanian city don't park your mercedes in the bike lane. >> follow the rules.

>> one way of getting the point across. >> bloomberg going to do that? >> he might. he can do whatever he wants in this city. there it is. >> i want to talk about a satan sandwich. >> you have to sugar coat it. >> dip it in sugar first? >> dip it in sugar. you can deep fry it, i'm told. coming up, we'll talk to the man who coined the phrase sugar coated satan sandwich. n't have . unless you want it to. new splenda® essentials™ no calorie sweetener with b vitamins, the first and only one to help support a healthy metabolism. three smart new ways to sweeten. same great taste. new splenda® essentials™. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice...

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our economy didn't need washington to come along with a manufactured crisis to make things worse. that was in our hands. it's pretty likely that the uncertainty surrounding the raising of the debt ceiling for both businesses and consumers has been unsettling and just one more impediment to the full recovery that we need. and it was something that we could have avoided entirely. voters may have chosen divided government but they sure didn't vote for dysfunctional government. they want us to solve problems. they want to us get this economy growing and adding jobs. and while deficit reduction is part of that agenda, it is not the whole agenda. when congress gets back from recess, i will urge them to immediately take some steps

bipartisan, common sense steps that will make a difference. that will create a climate where businesses can hire, where folks have more money in their pockets to spend, where people who are out of work can find good jobs. >> good morning. it's 8:00 on the east coast. if you take a live look at new york city, welcome back to "morning joe." back with us on set, mike barnicle and mark halperin along with pat buchanan in washington. >> the president turned the corner. he's got to turn a corner. we always said it's ironic, the first two years we were bashing democrats for talking about health care instead of jobs. now the republicans get in and we're all bashing republicans for talking about debt relief instead of jobs. i think the president, the alarms went off at the white house and the president's now saying, i'm just going to focus on jobs. >> i think the alarms went off a long time ago. >> across america but not in washington, d.c. >> but the problem, you just

articulated part of it, the democrats' focus is on this, the republicans' focus was on that. something has happened over this country in the past 10 or 20 years, especially with regards to employment and people working, and it struck me yesterday, over the weekend i came across the sagimore bridge, completed in 1935, 1936, wapa project, put people to work. yesterday coming into manhattan, you come across the bridge, completed with wpa workers, funds. something has happened in this country that the focus is no longer on the collective american good. it's on individual, party ideology and it separates the good from what ought to be done from the reality of our politics today. jobs is critical. >> listen, jobs are critical. and the thing is, you go to china, you immediately see china

today is where we were when we were building these projects. they're preparing for the 21st century, predominance in the 21st century. you go to singapore. mika's father came back from singapore. the infrastructure there is absolutely remarkable. investing in infrastructure, that's not going to damage us as far as the debt goes. structurally over the next 30, 40 years, that's not the challenge. the challenge comes in a lot of other areas. you're right, we have got to re-invest in roads and bridges and our trains and our power grid. all of these things. there are arteries of commerce -- >> the president tried to put the focus on jobs yesterday after months of negotiations and political rhetoric and just hours before the midnight deadline congress passed legislation to raise the nation's $14.3 trillion debt ceiling. the senate voted to approve the deal, 74-26, guaranteeing that the united states will not default on its obligations.

and allowing it to begin borrowing more money. president obama signed the bill into law in the early afternoon, seen here without observers or fan fa fanfare. speaking in the rose garden, the president praised congress for finally passing the deal but immediately shifted focus to fixing the economy and creating jobs. >> it shouldn't take the risk of default, the risk of economic catastrophe to get folks in this town to work together and do their jobs. because there's already a quiet crisis going on in the lives of a lot of families and a lot of communities all across the country. they're looking for work and they have been for a while. or they're making do with fewer hours or fewer customers. we have to do everything in our power to grow this economy and put america back to work. that's what i intend to do and i'm looking forward to working with congress to make it happen. >> mark halperin, yesterday greg sergeant with the "washington

post" put out a post, saying the left's biggest problem if you look at the polls, the internals of the polls, is the fact that the tea partiers have won the debate when it comes to big government. he's a progressive blogger. he went to the internals of a cnn poll and said regardless of what you think of this deal, 35% supported the cuts. his argument, the argument of a lot of people on the left, there's a lot of weeping of teeth, these people on the right that they consider crazy are dominating the debate on debt. have they won that argument for know in america and what does a president to do push his agenda forward? >> i don't think they've won the argument but the counterargument is yet to be made. the president now over the next five months as a super committee in congress looks for more cuts, has two arguments. both of which he needs to win.

one is, the federal government has a legitimate role in investing in things, investing in bridges and rail and other infrastructure, that that's a legitimate for washington to do and money even in tough times should be allocated for that. the other thing is on taxes, there should be revenue as part of the next round of defendant sit reduction. there's -- in the polls, depends on how you read them, there's public support for both those things. he's not won that argument yet. he has a chance in the context of the next five months to do it. >> let me talk to mark's point and joe's point briefly. everybody wants a tremendous jobs program. what were the two greatest we've had in you mentioned the new deal which required an explosion in national government spending. and the second was the reagan tax cuts 25% across the board. both of them created millions of jobs. problem is, both of them added immediately enormously to the deficit and to the debt. how do you do that, joe, after what we've just been through? >> well, i actually, again, the

two things going on right now, short term deficits and long-term structural debt. i would argue over the next two years, even over the next five years we can make those investments in infrastructure without threatening america's long-term stability. again, it's going to be defense spending. it's the endless wars that are the great challenges. it's medicare. it's medicaid, it's social security. and guess what, the most liberal member of congress understands that. the most conservative member of congress understands that. whenever mika and i go up to the hill, we talk to the most progressive democrats. they understand. that medicare, medicaid, social security, pentagon spending, endless wars on the left and the right, they understand we have got to draw down in those areas to take care of the structural debt in the long run. it's how you do it and what the priorities are.

>> i wonder given the conversations we've had over the last month are possible. >> not right now. >> i thought yesterday it was extraordinarily sobering to look at the financial markets. because we were told if we got this debt deal, the markets would stabilize. the dow goes down 266 points, a banner headline in the "wall street journal," economic fears hit global markets. the message here is essentially, congratulations, washington, on your debt deal, your economy still stinks. get moving. >> you look at what the fears regarding europe, regarding italy, regarding spain, regarding portugal. there is, pat buchanan, a real chance that europe takes a nose dive over the next month. >> joe, i think greece is de facto, technically in default already. if italy or spain goes, i don't know how these countries are bailed out. i think that enormous fear plus the belief that what the

americans got after all this battling was really not all that significant in terms of media cuts, the doubts about the americans in the long term delivering, the doubts about the american economy from what we saw last week, annual growth the first six months was less than 1%. what that means is next year which begins in october, we're not going to get the revenue we thought. i think all of these things hitting at once are what's killing the market and drove it down. i guess it's almost down 10% in ten days. >> it's a perfect storm, isn't it? >> yes. >> a debt crisis and a slowing economy. >> i think there's also another factor with regard to the headline that willie just hold up, "economic fears hit global markets," it is people who run this economy, people on wall street, people all over the country, the small business, they're seeing what occurs and what has occurred over the past two months in washington, d.c. they see these people can't get

anything done. they cannot get along together. they can't get anything done until someone literally puts a gun to their head with the clock running. i ask you, mark halperin, because you're the washington expert guy, the idea that this congress has been so dysfunctional, the idea that we were talking about the new deal, those programs that occurred, people actually got along in the '30s in the congresss. tip o'neill got along with ronald reagan on social security and issues like that. where are we going here? >> make no mistake. when jobs come back, it's going to happen because the private sector and governors and states, not washington. washington needs to be more out of the way, except in cases where washington can help. i miscalculated a fair amount about what would happen with the debt talks. i thought for instance there would be a big signing ceremony. i thought he'd stand with the raerns leaders and announce together we solved a problem, even if they didn't do everything everybody wanted. that didn't happen. i don't think -- part of the challenge for the president and

the congress now, everything we need to do to help the economy, and energy infrastructure, tax reform, immigration, that's going to require bipartisan compromise. i don't see any momentum for more compromise after this deal than there was before. maybe less. >> well, joe -- >> excuse me, pat. what about joe biden's role? >> joe biden and mitch mcconnell were the two people that made this happen. no doubt, they did the deal. i want to give a hat tip to harry reid who hated the deal, hated being cut out. was really seen from just his public statements seemed to be bitter and yet stepped back at the critical time to yield his support. you know, we've been tough on harry. that's what a grown-up does when you're 24 hours away from a possible meltdown. >> yes, biden and mitch mcconnell, pat buchanan, they were the two guys that made this work at the end of the day. >> they really did. i think they are the guys that

did it, joe. but look at what's been done now. let's go down the road to this bipartisan commission. let me ask mark, mark, it looks to me, the bipartisan commission, they come up and get 7-5 vote for tax increases, the house will reject it. if they don't vote for a tax revenue, the senate rejects it. then what you've got is the deadlock and you go into the automatic cuts. 600 billion of which come out of defense, which, joe, means a war between the fiscal hawks ever the republican party, the ron pauls and those folks, and the security hawks, the lindsey grahams and john mccain. we have a real war ahead. >> inside the republican party. >> exactly. >> you'll have defense contractors and by the way the president of the united states saying those cuts to national security -- the national security is just too much. i don't think there's anyone in the world that can tell you which is more likely.

>> we have a blue print or at least a framework for getting a deal done, that is joe biden and mitch mcconnell. they've been through -- this is the biggest crisis this white house has really been through economically. and when push came to shove, they figured out a way to make it happen. and representing the white house joe biden, representing congress mitch mcconnell and they bridged the gap. >> isn't it up to a super committee now, this so-called super committee? >> they'll have a super committee. at the end of the day there will be realities. you'll have joe biden talking to three democrats saying, listen, guys, this is what the white house can accept. you'll have on the other side, mitch mcconnell and john boehner saying listen to the three republicans, listen, guys, ladies, this is what is possible. >> the problem is, the back of the envelope rough terms, what's left to do in dollar amounts is the part of the grand bargain that they couldn't do the first time. they are suddenly going to have to make the tradeoffs they

weren't willing to make before. >> and also, what concerns me is, in washington, d.c. right now, we talk about the things that have to be cut. we talk about closing tax loopholes that allow corporations to pay zero and billionaires to pay less of a tax rate than their secretaries. what concerns me is, these cuts are going to come from domestic discretionary spending. 10% of the budget, that constitutes exactly what we're talking about. schools, roads, bridges. >> yes. >> infrastructure. power grids. the very things that determine how a country runs day in, day out. >> i don't want to make this out to be the dark ages we're living through, because it's not. >> it's not. >> but these are the best of times. there is an element -- >> for our children. >> there's an element missing here in our culture, our politics that used to be more

present. and it is what's good for the country? answering that question at the end of the day. what's good for the country? i was reading in the "new yorker" magazine yesterday, there's a well reported piece on the raid that got osama bin laden. >> great. >> staggering. >> thanks for watching the show. go ahead. okay. >> we did three hours on it. >> so the point in piece, where the navy s.e.a.l. with two other nave s.e.a.l.s enter osama bin laden's room. >> right. >> the two women are there. one s.e.a.l. grabs the two women. >> thinking they're wearing suicide vests, takes them, rushes them to a wall away from the two s.e.a.l.s who came into the room with them in case they explode the suicide vests. one navy s.e.a.l. making, i would argue, probably $60,000,

government money a year, risks his life -- >> believes there's a good chance he's going to die. >> to save his two teammates. we've been through two months where people in washington wring their hands and argue about how they're going to vote. coming up, what can washington do to boost jobs? we bring in chris coons of tyler mathisen. also, emanuel cleaver will join us next. first, a check of the weather with bill karins. tropical storm emily is a weak storm, relatively disorganized. the hope is that it will get tore apart by the mountains over haiti and the dominican republic later on tonight. unfortunately for them they'll get a lot of heavy rain. puerto rico is getting drenched this morning, too. here's the forecast path of the

storm. it still looks like it has a chance to survive the mountains. if it does, there's warm waters and favorable conditions off the southeast coast. that's not where we want to see it. if it does survive it could become a hurricane somewhere off the southeast coast this upcoming weekend. we'll have to monitor this closely. forecast, finally a cooler day, down to the 80s for the first time in a long time. chance of showers from new york city southward. also the heat, incredible numbers yesterday in the middle of the country. today 109 in dallas, yesterday 112 in tulsa. you'll do it again. there is beautiful weather, the west coast is perfect. from chicago northward to minneapolis, enjoy just a great day. leaving you with top of the rock over central park. you're watching "morning joe," brewed by starbucks. ♪ birds flying high

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you have been quoted coming out of your caucus as calling this agreement a sugar coated satan sandwich. was that indeed your quote? is that how you feel about this deal? >> very accurate quote. what i'm saying if you lift the bun, what you see is -- to everything the great religions teach, take care of the poor, take care of the aged. if you look at the phone calls i've gotten they're 7-1 in favor of a balanced deal and also preserving medicare, medicaid and social security. and i'm concerned about this

because we don't know the details. and until we see the details, we're going to be extremely noncommitted but on the surface it looks like a satan sandwich. >> oh, lordy. joining us now from washington, democratic -- >> is that -- >> yes. >> what kind of flavor is that? >> i'm getting hungry. >> let's ask. >> congressman emanuel cleaver. >> what's a satan sandwich? >> i hope it's healthy. >> what are the ingredients? >> well, you know, you've got a little bit of sour dough on one side of the sandwich for poor people. >> right. >> and then you have some onions for people who are on unemployment benefits and realize that's not going to be in the deal. it's got a lot of stuff in it. very few things that are good.

you serve it, of course, with a demon drink. one of the things we have to do here in washington and you are talking about it but you're missing one ingredient. one of the things we have to do is, if we brewed over this deal, this package and it is not good for a lot of reasons, you talked about some, it's not going to make that much of an impact, if we brood over it, they're taking place post satan sandwich passage is the fact that we don't have a level of civility, not bipartisanship, civility, in congress, to do anything. when you have a situation where somebody can shout out a name at the president and then get over a million dollars in contributions, something is wrong. and the public can criticize congress but the public actually

bodies to send people to washington after having heard them campaign in some of the most nasty ways possible. >> and let's talk about that for a second. mike barnicle. joe wilson, michele bachmann says pretty outrageous things, raised $14 million on the other side. guess what? it pays off. americans can blame congress all they want. but if you have extremists on both sides saying outrageous things and they're lifted up by cable news channels or by blogs and money starts pouring in, come on, how much do we look at washington? how much do we start looking at the extremists in america that is feeding this hate machine? >> how long have we been talking about civility in politics now, two, three years, longer maybe? >> a couple hundred years f. you look at twitter feeds, half the

blogs -- i don't want to say half the blogs but a certain percentage of blogs, it's filled with venom, vitriol, filled with instant judgments. you think back to a time, congressman you'd remember this, when a democratic speaker of the house tippe o'neill could meet with ronald reagan, address things civilly, get things done, that seems to have disappeared from our politics t. has. >> and our lives. >> congressman? >> it has. it's going to get worse because i think the payout for people who are nasty is very high. a republican from west virginia, a wonderful human being, we started the civility caucus. and although we have a small number, we've done things, for example, we had a special order, joe, you know what that is, and

debated for an hour on tort reform. we both have different views. we were trying to demonstrate that you can have strong views and still get along. but what happens, we're ignored when we do that and all somebody has to do, grayson, is a good example, i'm dealing with both sides, and he celebrated. when i was elected to congress, i thought, boy, i'm going to get a chance to go down in the well of the house and engage in verbal combat, because manufacture the great leaders of our nation did just that. well, i get here and realize that we're having fact-free debates. and nobody gets punished if they are nasty. you call the president a tar baby as a member of congress did, nobody get is punished. newspapers shouldn't even endorse candidates who run

thermonuclear campaigns. >> right. >> that's an indication of how he or she will be when they get to washington. >> it does. unfortunately, a lot of times bad behavior is rewarded and the media, campaign donors, it's a real problem. it generates the cycle. >> the challenge is it benefits both sides. the people who benefited most from joe wilson's coming by you live from the president, who were running for joe wilson. >> both sides. he gets a million bucks, his opponent gets a million bucks quickly. >> people feel the only way you can get noticed is by being outrageous. >> right. >> by putting something out there to where you're not just being someone who is about fact or someone who is about solutions. >> speaking of joe wilson, he's a calm, quiet guy. he gets upset, blurts something

out and nobody was giving him millions of dollars when he was joe wilson. the joe wilson he's always been. the second he blurts something out and apologized about it immediately, millions of dollars came in. >> this is beneath our country. this is beneath the issues. we've got very real, you know, debt issues, spending issues, housing issues. >> right. >> twhae have to have an honest conversation about. as long as we are having these silly antics going on -- >> having said that, watching the british parliament, it's kind of refreshing and it does sometimes seem like an honest conversation. this doesn't seem like an honest conversation. >> this does not. pat buchanan, you said something interesting, you and tom brokaw in the middle of the health care debate said things were rough during watergate, it was an ugly time but it was nothing compared to now, where you could go out,

pat, and knock somebody verbally, engage as the congressman said, in combat, political combat, and that night you guys could go out to dinner, your families would go out to dinner together, have drinks, you know, go golfing, do whatever. you always somehow kept the country first, even when the president was being impeached you could still talk to the other side. you and brokaw said we've lost something over the past 30 years. >> right. that was with some of the guys in the press corps, exactly right. let me ask the congressman. i spend a lot of time in missouri, which is a good swing state. they have african-americans down in the city of st. louis. you have tea party hobbits out there. all those folks. what do you think has happened in recent years or decades to make it so that there is such hostility and does it exist, if you will, congressional delegation from missouri?

>> well, most of us in missouri, the missouri delegation, get along fine. skelton was the dean of our delegation and everybody respected him enormously. joanne emerson is one of the most darling human beings god has ever made. i think that we get along in the delegatio delegation. we are very good friends. i had democrats who threaten not to support me for my house seat the first time i ran because of my relationship with kit bohn, which is ridiculous. what i think we can use colorful language but i mean, i will talk about a satan sandwich but will not call another member satan. >> that's important. >> that's right.

>> you can talk about bills that way, let's just not make it personal. >> that's right. professor goodwin can probably confirm this. andrew jackson was able to stop the british cannonballs in the battle of new orleans with cotton. and i think that's kind of an illustration of what we need in washington. but we're going to need the media and we're going to need the public to participate. if politicians didn't think there would be a reward, they wouldn't go out in a nasty way but they know that nasty pays off. >> no doubt about it. mark halperin? >> do you think president obama is a good negotiator? >> well, look, i don't know. i've never been in those rooms. i think that the president got the best deal he could have gotten. under the circumstances.

and even though i voted no, the leadership knew and i actually said on this network before the vote, if my vote was needed or votes were needed, i would not only change but i would work to get others to change. i think the president, under the circumstances, i think this was a terrible deal and we didn't get a lot out of it. but you know, did he the best he could. this is say tough time for the president. things could have been done differently. but they weren't. this is what we're going to do to live with. remember, this is not over. we have a continuing resolution for september. i think that will be chaotic. the darkest day for this nation is when you start piling up members of congress who are here, not willing to compromise. >> in the spirit of compromise would you urge your leaders, leader pelosi and leader reid to appoint democrats to the super

committee who are open to entitlement reform? >> absolutely. but i mean, you know, it's got to be bilateral disarmament. it would be ridiculous for them to do that having heard republican leadership say, you know, no tax increases, no revenue enhancements, the new words we have to use. i mean, that's such a terrible way to go into something so important. >> all right. congressman cleaver, thank you very much. >> thank you, congressman. >> good to be with you. >> we'll check with doris on that andrew jackson story or meacham will be able to answer that. >> where is meacham? >> i miss meacham. >> he's hiding. >> be in one fan of the man from -- >> you always say i am. >> he's not in the south of

france, he's in tennessee. up next, is another recession looming and what will the debt deal mean for jobs? business before the bell with tyler mathisen is next. hi, umm this other store has these for 20 cents less.

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stuart kuttner is the 11th person arrested in the investigation. he was charged with conspiracy to intercept communications and corruption when did he not show up for questioning at a london police station. it comes as a judge sentences the british comedienne known as johnny marbles to six weeks in jail for throwing a shaving cream pie at rupert murdoch during his testimony before parliament. news corps is the parent company of news of the world. moody's investment service weighing in on the debt limit increase. the agency assigned it a negative outlook warning of possible future downgrades if u.s. lawmakers fail to reduce

the debt and if the economy continues to weaken. mark vandy spoke about the deal with lawrence o'donnell last night. >> we're part of the way there. i think that's very helpful. it's not going to help the job market in the near term. we have to do other things to support the job market over the next 12 to 18 months. i think this is a good thing for the economy in the job market in the long run. we need tax revenue. we need to address that. but this is a good first step. >> the dow fell 265 points yesterday. the dow closed below 12,000 for the first time since june 24th. back from his world tour, his successful tour in washington, d.c., tyler mathisen. a lot of people surprised to find out after the debt deal is signed the dow collapses.

what's going on? >> well, the attention span is very short on wall street, as you surely know. at tension span shifted back very quickly to the underlying concerns, not just about the u.s. economy but about the global economy. there is a slowdown in china. they're still growing 8%. that's not as high as it was. that's probably a 25% growth in china. india is slowing. we all know about the troubles in europe and the challenges being faced by japan. and the u.s. economy has hit a really slow patch, 1.3% growth in the second quarter of the year, reported on friday. 0.4% in the first quarter of the year. revision last week and on friday, a big jobs number that nobody can get particularly excited about. so the attention has gone back now to fundamentals. data has trumped debt. >> tyler, it's willie. we know we'll get more data on friday with the jobs number from

july that could be ugly. the markets not impressed by the debt deal. what would wall street like to see from a policy point of view out of washington? >> that's a great question. i think they would like to see some certainly over what is going to happen with respect to entitlement reform and potentially tax reform under which certain loopholes would be closed and marginal rates would be lowered. they seem to be holding back on that. i think they would also like to see probably some programs out of washington, generally speaking to address infrastructure. the idea of an infrastructure bank has relatively broad support. i wouldn't say broad. maybe that's too far. it has some bipartisan support behind it. those kinds of things could help, could help the construction sector. the other concern is the real estate sector and that isn't going to improve until we get underlying job growth and income growth. and income is absolutely stagnant right now.

>> tyler, you talked about the sectors that are stagnant and not doing well. if there's a glimmer of hope, which sectors could lead recovery in the next few months? >> technology is certainly one. they practically have more cash on hand than the u.s. government does. businesses are not out there buying a ton of technology right now. technology is pretty good, aerospace, aviation, boeing is doing very nicely. even the auto business is coming back. the july sales numbers were not discouraging really. i believe it was 700,000 units. that's not terrible at all. so there is some encouragement there. but the broad manufacturing economy is basically stuck in the mud. i would highlight technology, commercial aviation is another area that seems to be doing pretty well. >>tyler, as always, we love having you on. we appreciate it. >> thank you, tyler. >> let me ask you, obviously the

white house very concerned with the economy for a lost different reasons. politically they are captive to this economy, aren't they? >> they're absolutely captive. what's interesting is yesterday we saw the president make a quick pivot from debt to jobs. the other thing that needs to be talked about because you cannot have a recovery without this is housing. housing is -- housing still remains that elephant in the room that until we can bottom out on the housing market and come up with a strategies is to how we can come up with housing footing, it's difficult to see how we get past that. >> isn't that something that real estate people will tell you has gotten no better. >> it's actually gotten a little bit worse. we've seen a little tick up and then a fall off again. real recovery has to start there. >> wes, thank you. >> thank you, wes, for being here. >> we'll be right back.

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welcome back to "morning joe." time to look inside the cooler. >> oh, my. what's in there. >> stuff that happened last night. >> the mets lost to the marlins last night but we don't care about that. >> we love the mets. >> no, no. we want to talk about one young mets fan, 11-year-old jacob resnick. he won a contest to announce a small part of the game on live television on the mets television network. here he was during the third inning at a big moment. >> the first pitch in hand and reyes rips it, back it goes. it's gone! a home run for jose reyes and the mets tie the game! jose reyes with a solo shot on the first pitch. he takes it into the left field

seats. >> not a bad call for an 11-year-old. >> is he better than half of e the -- >> even the mets kids are better announcers than some of the yankees. >> he has good energy. >> nice. >> jacob resnick, great future. >> he was great. >> he was great. >> got to love the mets. come on. >> no. why do i have to love the mets? >> great ballpark out there. >> great fans. >> wilpon. >> they have great concessions. >> close to the airport. >> great burger joint. >> if you like tennis, the arthur ashe stadium is just a walk away. >> good, good ballpark. >> good logo. >> you can get there from connecticut. >> they'll be okay. they are going to be okay. >> i want to see vladimir.

>> someday they'll be okay. >> vladimir putin dropped into a kids summer camp yesterday. a lakeside summer camp, did a lot rock climbing, wall climbing there. >> cute. >> he officiated arm wrestling among the counselors. he's a very athletic guy. he dove into the competition at one point. >> yes. >> there he is. >> he won. >> exactly. >> i assume he won. >> here's the picture everybody is talking about this morning. the guy picked up a frying pan and tried to bend it with his bare hands. >> really? >> we don't have a great explanation. he didn't quite bend it the way he hoped he would have. >> maybe we have a picture of him shirtless. >> no way. >> there he is. >> wow. >> biceps like that can bend metal. >> singing blueberry hill.

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♪ they're making fun of my table cloth. >> why? >> thanks a lot. what a jerk. >> i like the jacket. you remind me of my dad. >> what did we learn today. >> we learned the best we can do is the bumper sticker of 2012. >> is this the best we can do? what did you learn? >> we have great news. our good friend peter alexander engaged to be married. >> whoo! >> did he it! >> they were engaged on saturday night under the eiffel tower. >> peter alexander, congratulations. >> what did you learn, mark halperin? >> barnicle looks good in linen. >> nice. >> and if you're sliding home and