not about the money. although money is always nice. it's not about a corner office. it's about a greater good. there's a school for people like this. an online university where advanced degrees advance the quality of life. walden university. a higher degree. a higher purpose. the time now for what we learned. let's go to our clown, willie geist. >> i learned i will humbly ask you if you are waking up to watch "morning joe," and then wake up a half hour early and

watch my show. >> the president really needs to get tough with congress on health care for the future of the administration, and it may be at stake. >> getting serious here. >> yeah. it's time now for the "morning meeting." >> at the top of the agenda today, a sorry resolution. a michigan congressman looking to introduce a bill in the house today demanding the president apologize to the police sergeant that arrested the black professer at his home. and then we will discuss immigration, and our border patrol north and south. and then senator chuck

schumer wants to stop something. we will talk about it. plus, is the recession really over? unemployment continues to rise. we will talk to the righter of the "newsweek" cover story. pull up a seat. "morning meeting" starts right now. good morning to you. in addition to those stories, secretary of state, and secretary treasury, tim geithner, and president obama all gathered this morning to open talks with china. their job to convince china to keep buying american debt. first let's get offer to contessa out of the gate here with the balance of the day's

headlines, again, in addition to the variables of china relations, race continues to be a meaningful issue, and the immigration debate continues to accelerate, and we are still trying to figure out where in the world this economy will create jobs. and that really -- the $14 trillion question when you go to the garbage bag we were discussing on friday. but contessa, what is going on today? >> today, sarah palin is a private citizen, but not out of the public eye. she took the opportunity to slam the media. >> democracy depends you on, and that is why our troops are willing to die for you. so how about in honor of the american soldiers, you quit making things up? one other thing for the media, our new governor as a very nice

family, too, so leave his kids alone. >> msnbc' chief correspondent, norah o'donnell, is getting the story. >> reporter: that was a fiery farewell speech palin was giving yesterday. she raised over $1 million for her political action committee. and $300,000 of that since stepping down as governor, or announcing she would step down for governor. and she has a lot of political cash that she can donate to other republican candidates and build a larger national profile if she wants. she has a book that may be published next year. she is expected to visit the

ronald reagan presidential library in california in two weeks, and has been invited to iowa. all of that is significant. and it's interesting, being here in fairbanks and listening to sarah palin. she attacked the media and opponents and went after hollywood liberals. >> you will see anti-hunting, and anti-second amendment circuses from hollywood, and here is how they do it. they use the delicate, tiny, celebrity starlets. hollywood needs to know, we eat, the therefore we hunt. >> she said that she plans to protect the interest of the state, like the grizzly guarding her cubs. >> somebody on twitter said it's the evolution of a neocon.

they will introduce the resolution asking for the president to retract his statement, and he says the president needs to apologize to the officer for having unfairly prejudiced his professional conduct in this local police response incident. >> what i would really like to see happen is the president say he retracks his judgment as to how the officer conducted himself, and it should be a matter of the local officials to decide who was at fault. otherwise, i have a house resolution i would like to put in to ask the president to retract his statement and apologize. >> perhaps he missed the

president's quick meeting on friday where he addressed the issue. and meanwhile, professor gates said he would be willing to meet with the officer at the white house. and nancy pelosi said she will not the august break get in the way of getting health care reform done. >> when i take this to the floor, it will win. this will happen. >> americans already said they will not vote on their plan until after labor day. after a week and a half together, the astronauts are taking one last space walk. they will rearrange power cable hookups, and install tv cameras on the porch of the japanese lab. shuttle "endeavour" will end up in the space station.

i want to get to the top story. the president meeting with top chinese leadership in chinese today. it's the treasury secretary and secretary of state that may have the hardest sell. bear in mind, $2 trillion will be borrowed from foreign governments, and that has nothing to do with what was taken from the reserve. this is something we will borrow, trying to help our economy not only hold together but function once again. chuck todd on the beat. we are looking at the meet and greet between the chinese delegation and the u.s. what is going on? >> reporter: this is a big deal. this is the start of what they hope for meetings that happen twice a year between high-level folks on the u.s. side and high-level folks on the chinese side. normally, u.s./chinese relations is tied in the economy. and usually everything else is separate. take what hillary clinton said yesterday about china's role in

north korea. >> we have great cooperation from the world community. china and we are working closely together. we still want north korea to come back to the negotiating table and be part of an international effort that will lead to denuclearization. we will not reward them for what they said they would do. >> reporter: this is now what they are trying to do with secretary geithner, and they both are cheering the meetings, and they are trying to combine what they call strategic, and economics. the two wrote an op-ad, and let me read from this at the end here. the chinese have a wise aphorism.

>> reporter: i have gotten some preview of what secretary geithner will say in his opening statement. he is going to talk about how the u.s. and china together are the ones that have to deal with climate change and the global economy. essentially, we are looking at a g-2 meeting. forget the g-8. these may be the most single two important countries in the world, and this meeting signifies it. >> yeah, no doubt about it. there are two sources of money to get the market stable and get the market functioning again. and bernanke said over the weekend he was disgusted by some of the actions he had to take, but because of the banking system, they had to do this. and the second source is right here, the treasury secretary with china and saudi arabia. the question is what is the pitch. do you have any insight before i

let you go as to what his pitch is, as to saudi arabia or china to get them to buy u.s. debt effectively? >> reporter: the goal is to have a longer-term relationship with china. the instability of the middle east in general and the oil market, i think, it makes saudi arabia not to be the best place to be relying as a source of investment. china, there are so many business interests there. and part of the dialogue is about us learning more about how the chinese deals with their economy and manages their money. there is not a lot of transparency with china's economy. we don't quite understand how all of their -- how they manage their money. and this dialogue, the hope is this will open up things and make it more transparent. >> i want to bring in our panel and bring up statistics.

the united states will try to raise $115 billion borrowed not just from china but the rest of the world in the 10-year loans. and the interest is 2.4%, and we are paying 5%. and almost doubled. the borrowings of the united states government by way of the federal reserve or the u.s. treasury have never seen such levels. with us for the hour, eliot spitzer, and james hogue is here, and you know the former governor, maria theresa kumar.

jim, i will start with you, what is china's thinking? when they come in the room, and they are aware of the yields moving up, and we are borrowing tons of money, and what are they thinking? >> short term and long term, short term what they want to hear from geithner is more evidence the asset value of their huge set up dollar reserves is not going to deappreciate too much. they don't expect they can put their money somewhere else short term. and long term, they want to diversify. and they will have $170 billion overseas assets. and that's the direction they are headed. beyond that, they want to create another reserve currency. they want it for the future. >> we actually prepared a version of what we think the secretary's pitch will be to chinese and others.

>> since 1776, we believe that money can buy happiness. now you can own a piece of it at recession pricing, but don't take my word for it. >> the global economy is going through the most challenging periods in generations. >> we have a deal for you, your country already owned $800 billion of our debt, and we have another $14 trillion up for grabs. >> $2 trillion will come out of the treasury. what do you think when you see that, maria? >> it's frightening. but what you were saying before, it's true the chinese diversified. they are creating trading partners, where we have not chosen to. brazil, and latin america. africa. i think they are taking advantage of that. we all of a sudden have said for the last 20 years, we were negotiating with russia, and now china is on the backdoor. and it's like, you are actually

our next global partner. >> yeah, and i saw that on tv at 2:00 in the morning. >> yeah, that's a new sponsor of the show, actually. >> i hope not. >> strikes me the meeting in washington is like bankers coming to look at the collateral. if you have a big bank they want to come by and say how are you doing? we have the international bankers coming and saying are you going to recover? we are in deep trouble. and the chinese know their growth rate, at some point their economy will surpass ours, and maybe in 10 or 20 years. we are in deep trouble with all of the debt. the difficulty of marketing our debt. >> in addition, jim, to the $2 trillion, which will be a record that we will sell out of treasury, or the $14 trillion we had to put under the fed,

obvious economic risks, but what are some of the risks of putting this self into this debt relative to china? there is a lot of nonsense. what are the real concerns with china, and what are the ones that are madup fantasies? >> they want an arena while they continue to grow domestically. if they wanted to be adventurous, having this much of our money in the banks and in their hands, it could be used as leverage. and i think -- unless we push it, i don't think that it's a likelihood. the second thing i would say, they are also moving on the domestic front to alleviate the situation for them. they are plowing a lot of money back in to create a domestic market, the consumer market which they have not had in the past. >> i have to wrap this, elliott, but where is the solution in the

u.s.? >> it has to be growth. their demand for our products will decline as they have a home-grown auto sector, and there are our capacity to export to them diminishes. their demand for our dollars diminishes, and we sink deeper in the hole unless we bring back the domestic manufacturing and economy. >> and create jobs in the country? >> yeah, absolutely. >> our future is to create jobs, not to resurrect a game of catch money on wall street. we resurrected the game of money catch, but not a lot of other things. >> we need to have a green industry. >> yeah, who knows what it is. >> capitalism functioned because i create value for somebody else and you pay me for it. it does not function when i say capitalism is my ability to suck money out of the system, so screw you. that's not it, that's stealing. >> that's later?

>> yeah. >> they need insurance we have reached the bottom. >> if they can walk out of hearsaying the worhere saying it's over, that's a victory for clinton and geithner. >> the financial failure is evidence of major flaws in our banking and government system, and we have been able to fail on that level. >> we had a housing bubble and a banking bubble that was bigger. >> to ignore the overall problem and pretend the that's the solution, that's portrayal of the american people. >> much more on "morning

meeting." we are going to take this intutive analysis test to find out which one is a racists, once and for all. we will do it here coming up. my name is chef michael. and my dog bailey and i love to hang out in the kitchen... so she can watch me cook. you just love the aromas of beef tenderloin... and, ooh, rotisserie chicken. yes, you do. [ barks ] yeah. you're so special, you deserve a very special dog food.

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welcome back. we are continuing to learn more about exactly what happened in cambridge between professor gates and a sergeant. what is the word? >> reporter: the newest thing today is the 911 tapes have become front and center. the woman that made the call to the police that started the whole incident said that she wanted to clarify things to her

lawyer. she is saying that she did not tell the police there were two black men breaking into the house. she just said there were two men breaking into the house, and they had their backs turned to her and she did not see it. she is concerned about all of this because she feels that she has been portrayed as a racist person who only called the police because she was worried about black men breaking into the house. it's a hypersensitivy that people are feeling. the police commissioner talked about the 911 tapes, and here is what he had to say. >> i think the tapes are hopefully self explan tory. i think some form of the transmissions of the 911 calls will be released, whether transcript form or recordings. >> reporter: they may release the paper transcript or parts of the 911 calls.

the question is if they were released, the radio traffic going on between the police officers that morning. because there is speculation you might here gates and the sergeant in the background of the police chatter back and fourth. >> alex burns, a reporter for politico. he just wrote a piece asking whether obama can take america to a post-racial place. and also here theresa and also governor eliot spitzer. i heard you ran into some fans of the "morning meeting"? >> yeah, they said dylan does not let you get a word in edgewise. >> yeah, and we will work it out. this is in development. but, alex, what is the ultimate

thesis of what you are writing? >> i think what is interesting, what we saw in the last week out of the white house, the president took a stand on a controversial issue, and took a risk getting ahead of the issue in a way we have not seen them do before. the white house felt the backlash strongly. and in the final analysis, the president set up a made-for-tv moment. >> 30% of the population in alabama, accounts for 55% of traffic violations. and on and on and on. >> here is the difference with this situation. like the reverend write situation, when started the racial disaster, not just for just obama, but the whole

country. obama was able to turn it into a moment. if we get the handshake on the white house, and the coming together and shaking of hands -- >> are you feeling it, elliott? >> it's a beautiful moment. >> yeah, a lot of moments like this, black and blue clashing together, and giuliani in particular was not able to be a leader on the issues and made new york bigger, more sort of diverse, and -- >> i think over time, the relationship between the nypd and the minority has gotten better. there is a sensitivity of how you overcome the issues. >> why is the policing culture in america fundamentally one of

intimidation? the policing culture in other parts of the world -- go ahead. >> i disagree. >> you disagree with what part? >> with the policing culture here is different than the rest of the world. they don't carry guns. >> i wish it was something horrible, and it's -- >> right. >> my registration is expired or the front plate fell off, and the point is i am not a bad guy. the cop feels obliged. he can walk-up, and say -- >> let me make a point. for many decades, we had higher bun crime rates. if you are a police officer and walk into a violent situation, you are going to be on edge. crime rates have come down.

new theories of policing. police officers who said we have a new way of thinking about the interaction between the pd and civilians, that has gun to shift. it's happening gradually. >> one thing we are not talking about in the situation, is the police ego. it seems that crowley's ego was bruised. we don't want to allow that brand of brothers, and a crowd is formed. we have to show we are in control. >> yeah, and it's cultural policing. >> i think both egos were bruised. it does provide a unique opportunity to have conversation around race, but also the differences of what shields, and people get nervous when the

police come and knocks on their door. >> yeah. and that's a fact. once we are willing to bring the fact into the room, police and black men statistically have a bad relationship, and police and latinos have a bad relationship statistically. and part of that, there could be 1,000 reasons why that is. let's be honest that that relationship exist, and we would like to see if we can make it better. >> alison, go go ahead. >> it was really only when the issue seemed to spiral out of control, the president made it a larger conversation. and it's interesting, given what governor spitzer was just saying, there have been a number of controversial social issues

that have come up during the president's term, and the gay marriage and killing of a abortion supplier, and the chance that he spoke up on this one is a sign he feels strongly about it? >> well, you want to compare his tone with race compared to a lot of things, you will see the president is tough on cops and easy on a lot of different things. everybody is itching to get in, understandably. it's a two-hour meeting. i have three on my right. it's like the olympics. we will wrap this up, but before we do, we will take a test and they flash you faces, and you have a flash response to it. we are going to statistically determine if i am a racist or not and whether he is a racist or not. what we can do about it.

we will look at what this test is all about. >> i want to see where your heart is? >> we will find out. but before we do any of that, we will come back and talk about goldman sachs and their magic money machine. is that machine coming at america's expense. you can run it through a magic money machine. we will have that conversation after this. i was in the grocery store when i had a heart attack. my daughter was with me. i took a bayer aspirin out of my purse and chewed it. my doctor said the bayer aspirin saved my life. please talk to your doctor about aspirin and your heart. i'm going to be grandma for a long time.

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should he have been alone? how are we patrolling the mexican border? why is so much more dollar value coming in from canada, and then we are on the border of mexico? and sarah palin, hopefully she will join us here on "morning meeting" to talk politics in the days ahead. the question is why aren't we dancing in the streets and why are we still losing jobs? why are we borrowing $2 trillion out of the treasury to make the recession go away. we have got the write er of "newsweek"'s cover story. welcome.

let us begin this conversation, i think, with a check in with contessa and the news before we get rolling on the golden sacks conversation? >> if you watch the dow jones industrials on a regular basis, you think maybe your trades have something to do on whether the market goes up or down. there is something called high frequency trading. on main street, more like outrage. bill wall street firms own lightning fast computer programs so they can buy and sell in a split second. and rel traders don't stand a chance with the software programs. and they are calling on the exchange commission to band the flash orders. he says this kind of unfair act compromises the intiega tea of our market and creates a two-tiered system where a privileged group of insiders receives preferential treatment.

goldman earned $3.4 billion in profits last quarter. not last year, last quarter. and a programmer was charged with stealing the computer codes. federal prosecutors told "the new york times" the software could manipulate the market in unfair ways. is it unfair? does it put the whole financial system at risk because you have a few wall street firms with the high-powered computer program? >> and does it not create rules for capitalism that force capital into the system as opposed to altering rules. this sounds to me, governor spitzer, and eric martin joins us. nice to see you.

what is the biggest risk for this type of a society? >> you lose confidence in the credibility of the capital markets, which already has happened, and for good reason. it's bad enough you go to the kau cena and know the house is going to win. and now we know they are looking at our cards, and you are playing blackjack and they know what you have got, and there is a word for it called front running, and whether it's illegal or fraud, we need to dig to find out. it violates the fundamental principle of equity. the small guy has no shot. >> remember on wall street the game is supposed to be people with money compete with each other. toure, and maria and i will compete with each other. who ever is the best at picking winners makes the most money. that's a hard game to play. it's easier to alter the rules of capitalism so we can create a money spending machine and suck the capital out of the system.

walk us through how the high frequency technique which deprives the economy of the capital works? >> well, whether these traders are acting in best faith when they put bids in the market. they hold the bids out there for a fraction of the second. and there is a question whether they are trying to find somebody to accept the other half of the trade. if the stocks are not actually going to be sold, and they are using the trading to get an indication to push the market to manipulate it or see where it's moving, that's got people worried. >> the larger question is the capital markets are supposed to serve two fundamental purposes. raise money for new services, and allocate money to generate jobs and efficiency. this practice is not neither of those things.

it's a casino, plain and simple. >> you hear politicians, the small businessman, and the american intrapreneur. i don't hear anybody saying the capitalists have turned wall street into a casino. government has to have a responsibility here. >> the headline is banks are still not lending. they are making profits. they are making profits by the trades that contribute nothing to the economy. they are not lending to get the economy moving again. >> why do politicians continue to empower these types of systems? why do they not want to deal with high-frequency trading? why are we not informing the rules of capitalism on the banking system to make this be a capitalist country? >> for over a decade, we bought into it with the wrong-headed notion where they said they will do what is good for the larger economy. it's wrong.

we are now paying the price for that. we have to push for the growing of the economy. >> in new york they are talking about the roots of the crisis are over confident on wall streeters, and he says the elusion of control comes because there is so much over confidence. it brings an increased risk. what do you think about that? is it over confident in wall streeters? >> yes. >> the bigger crime was everybody else bought into it, the regulators and politicians and academics bought into it. everybody agreed with wall street when they said don't worry about it. and there is a book "a short history of financial euphoria," and it shows every time you buy into a notion, yes, this time you solved the problem and the excess leverage will not bring us down. >> remember, i need two people,

a kid with an idea, a dream, and a system that forces those with money to compete by giving kids with dreams money, as opposed to figuring out how to bribe the government. >> yeah, and we are living in a brave, new world. there is a lot of technology that the government has not had a chance to catch up to. and this points this in that notion, we have to create regulation to the new world. how do you do that? >> well, the reality is modern technology can do things for people that are used to getting rich. and now the robots, if you excuse me, can do the same thing, and now you actually have to go back to competing on who has got the best idea, or i have a great idea. we have got to take a break. we will be right back. you cannot get a word in edgewise, and i am sure we will hear about it later. it kill come up in the week in

review. it's surely racial. it's surely racial. we will find out when we take the test in a minute. maria cannot get a word in edgewise. that's also my fault. is the border getting too dangerous? are we ignoring dangers at the border in canada at the same time? that conversation at the "morning meeting" coming up. inut body wash from olay. tone enriching ribbons. two separate ribbons. the white cleanses. the gold moisturizes and has a touch of mineral shimmer to enhance skin's tone. olay tone enriching body wash. for skin that shimmers. and added a little fiber? sweet! sweet! (together) sweet! (announcer) now for the first time, a gram of healthy fiber in every packet. sweet! (announcer) splenda® with fiber. ♪ ♪ which one's me - for a cool convertible or an suv? ♪ sweet!

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good day, everybody. i am contessa brewer. president obama attends a meeting looking to improve u.s. relations with china. the leaders are expected to talk about beijing's uneasiness in the holding of bonds. secretary of state hillary clinton, and secretary treasury tim geithner will lead the side of that dialogue. there was a health scare. he was jogging yesterday, and the 54-year-old spent the night having tests. they ordered sarkozy to rest for a few days. and disease control is holding the conference in the obesity crisis in america.

it brings together a conference that will analyze the costs that obesity presents to america's health care system, and employers, and look at how effective prevention could be in cutting costs. dr. nancy snyderman will have more coming up on her show at noon eastern. and strong thunderstorms will hail and heavy rain poured down on new jersey knocking out power to some residents. funnel clouds were spotted in some parts of the state. but heat is the big problem on the other side of the country. bill karins, how hot is that? >> hot, hot, hot. on the west coach, we are watching temperatures this morning. it's 93 in phoenix when you step outside. that's hotter in the middle of the morning than it has been in chicago or new york all year. the temperatures are going to be hot in the northwest. we have a heat warning in effect for the portland area, down to

eugene and all the way back up to puget sound. it's steamy all the way up i-5. there is even a touch of humidity along with that. and that other spot, 114 in vegas, and all the heat is out west. we continue with the "morning meeting" with dylan ratigan. did the semicontroversial "orphan," went to controversial to semi-controversial, and i am not sure how. we will see is that was a winner at the box office. and what about the guinea pigs. we will talk cartoons and killing orphans after this. relief that lasts all day. take 2 extra strength tylenol every 4 to 6 hours?!?

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lots more to come. we still have immigration at the top of the hour. border far more drugs by dollar value come in from canada yet the violence in our country is the next can border. why is that? is it easier to get drugs in through canada? is it because of the illegal aliens, the conflicts that exist around the southern border? we'll have the border conversation. we are also back with more not only from the president on china, but a conversation on the "newsweek" cover that says, indeed, the recession is over. weir back with the "morning meeting" after this.

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all right. welcome back. we're carrying on about high frequency trading at goldman sachs and capitalism. my goodness, it's terrible. we'll take a break. take a break. >> let's kick back. >> hey, break room time. >> michael jackson news. >> you knew it was going to be michael jackson.

what do you got? >> we said last week that katherine jackson was going to a judge. her lawyers were asking for an allowance to help her take care of michael jackson's kids. turns out jackson was paying his mom an allowance when she was alive. now, you have these administrators for michael jackson affairs going in and say can we continue with the allowance? because of all she has to pay her mortgage and utilities on this insee know encino home. >> michael jackson's mother is wanting an allowance. she has the kids? >> right. on the "today" show, matt lauer was asking katherine jackson's lawyer about reported deal of debbie rowe. let me play the interview. >> the agreement is a custody agreement. whatever the agreement will be will not be based on money. that was not the -- >> but will it involve money? >> the agreement about custody is not a money issue.

>> hhm. not a money issue. but he didn't say no that there is no money involved. hey, speaking of money. when you go to the movies you shell out your 10, 11 bucks, sometimes 12, 13, popcorn. turns out a kids animated movie beat out "harry potter." >> what about the orphan? >> this is the guinea pig animated movie that took the top spot this weekend. >> wasn't the box office down a bunch overall? >> especially "harry potter" was way down and dropped off like 61%. that's a huge drop. >> i think because of capehart's version of a talking penis. if there is a chance of that, i'm not going! >> i don't have anything to say about that. >> i didn't mean to completely -- >> no, that's it. i'm done. >> gavin will be along for the second hour of this morning's program and i guarantee no talking penss but that is in the eye of the beholder, i realize.

immigration in this country, north and south, racism in this country, toure and i will be willing to take this test to find out which one of us is a racist. and dan gross, author of a cover piece in "newsweek," is the recession over? the stats look awfully good. we'll have that conversation next and can we look at the recession without looking at the trillions in debt? that conversation is coming up. good monday morning to you. i'm meteorologist bill karins. your business travel forecast. showers and storms rolling toward the dallas area. could see minor airport delays there. it's going to be warm in the northeast and mid-atlantic down to the southeast, we'll see our typical afternoon storms. minneapolis, a chance of storms and also later today in washington, d.c. have a great day!

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all right. welcome back. good morning to you. nice to see you. i'm dylan ratigan. it is a monday. how are you? welcome back to the second hour of the meeting. let's get rolling. resetting agenda. first off is the border with mexico getting a bit too dangerous? and what about the other border with canada? we'll talk about how we police both of them and it may surprise you that nearly double. in fact, triple the number of drugs by dollar value comes into this country from canada as compared to what comes in out of mexico. president obama on u.s. relations with china as the u.s. continues not only to try to develop that relationship for all of the obvious political reasons but they are the primary bank to the united states so they've come to see what is going on with their collateral at home. moments ago, the president calls on china to uphold human rights and vowed to work with beijing on stopping the spread of nuclear weapons. we'll have that conversation in

just a second's time. sarah palin out. up in alaska. and she goes out shooting all sorts of accusations and what not to the world. specifically to the media and to the hollywood starlets of this world. her parting shots coming up. first, let's get on with the conversation on the subject of immigration. it's 10:00 a.m. let's get back to work. contes contessa, what is the story on immigration? >> a border agent, authorities in mexico identified the man who fatally shot a u.s. border patrol agent. the police say the main suspect is a 36-year-old man. he was detained with three other men and reportedly was carrying a border patrol issued gun when he was arrested. agents robert rosas was killed thursday near the mexican border on the eastern side of san diego county. dylan? >> thank you very much.

mike cutler joins the conversation and former nisa agent and teresa and toure also here. illegal immigrants, 11.6 million. we know a lot of them, we use a lot of them to do jobs a lot of other folks wouldn't want to do. we'll get back to that and a lot of debate to be had there. the drug flow, 8 billion to 24 billion of drugs come from canada into the u.s. big number. if that doesn't impress you, 33 to 56 billion dollars come in from canada. i presume and this is a presumption on my part, that is because it's easier to get drugs in through the canadian border than it is on the mexican border. >> i'm going to presume that's a component. i'm not sure about the numbers but hard to estimate what you're not catching is another part of the problem. >> let's start with the story, though. >> absolutely. >> what is it that we are doing on the mexican border that you suggest that the oath to serve

may be equivalent to a suicide pact for some of these people? >> that's exactly right. >> what is it about the structure that makes you say something so extreme? >> look at the violence that we're seeing in mexico. thousands of people being killed each and every year by the violent drug cartel. this is about intimidation, beheading people and killing law enforcement, killing members of the government. this is a level of violence that i think is unprecedented in our hemisphere and we're putting border patrol agents out in what amounts to be a free fire zone right now. when you look at the level of violence -- >> what would you do about it? >> you need more agents out there. we also have to eliminate the demand on the smuggers to bring the illegal aliens in the united states. by not enforcing the laws from the interior you're giving great incentives to many people -- >> by not enforcing on employers, which is where the rubber meets the road, we do not force on employers the use of illegal aliens? >> not just the employers. across the board. you're not going after the

illegals. look at the strategy of the administration to go after the employees but not the illegal alien. >> i want to get maria in here. >> they have been going after the undocumented orders. what we need, though, is enforcement and we have to go after the employer. we have 12 million undocumented in this country. >> right. >> and we start talking about economic recession. take them out of shadows and let's have a conversation because all of a sudden we can tax their wages and penalize them. right now the people enjoying the most and gaining the money are the business owners, because they don't have to pay equal wages across the board for american workers who can do the exact same job. >> american taxpayer has to pay then. gavin, are you here? >> i'm here. >> gavin -- >> get me in! get me in! >> let's go! i knew he was going to be interested. i forgot he was here for a second. he is going to yell at me later. >> how could you forget about me? >> well he should. you know what the conversation is. what are your thoughts? >> well, i live here in california.

and basically our state is bankrupted by illegal immigration. and the administration is not doing enough. there are several things that can be done. >> let's just stop right there. in other words, if we had enforcement at the border and enforcement with employers who exploit cheap labor, right? if i went to those two places, border enforcement, no one else gets in, and employer enforcement, no one else gets to use undocumented workers, could i not solve for this problem with those two agendas? >> i think you have to do more than that. i think you have to make less attractive place to come. number one, we need to have an identity card that works. i'm an employer. there are people working in my businesses. they show us identification. it looks good but it's easy to replicate. illegally, not much you can do. we need to stop giving social services to illegal aliens other than nonemergency services to make it less attractive for them to come here. we need to build a border fence. >> right. but i think --

>> let me finish! >> go ahead, gavin. >> don't interrupt me here! okay? we need to end birth right citizenship. 25% of the births in california are to illegal aliens. it's too attractive for them to come here and give birth to an american citizen and get welfare checks. we need to stop all of that. >> first of all, he wants to change the constitution and i think that is harder. >> constitution was written a long time ago. >> i think the main issue when we start saying that the undocumenteds come in here and they reap all of the benefits but we reap nothing, that is false, number one. number two, we also have to realize that folks when they are undocumented, they pay billions of dollars every single year into the system through taxes and social security. >> no. >> no, they do! >> wait. hold on one second. let me add to my list. if list one was border enforcement, if list two is employer enforcement and then list three is exactly what you just said, gavin, and what you and maria were just talking

about, which is an addressing of the attractiveness of this country to illegals. what if i was to try to deal with all three of those issues? >> but there is another component. >> okay. go ahead. >> wait a second, gavin. >> immigration fraud is a huge problem. people get married and get green cards. they naturalize 30,000 aliens two years ago without their immigration files. talk about flying blind. one other thing you were talking about the recession. every year, foreign workers legal and illegal send billions of dollars out of the american economy. >> because we employ them to make low cost labor function in the restaurant industry and hotel industry. >> one more point. sorry. >> alan greenspan testified and what he said was that we've got to eliminate the disparity in wages between skilled and unskilled workers in america. is that nuts? if you have a guy working on a road crew should he make the same thing as the guy with a

phd? >> i think you're twisting the words. i'll come back for that. >> i think going back to this whole notion of undocumented workers, it's creating this offensive. i think it's great if we were to start shoveling south of the border problems and creating incentives and trade in fair regulation across the country, across the northern hemisphere then we will have less of a problem but we have to recognize that we're addicted to undocumented worker labor. until we can do that -- >> we as an economy -- i got to wrap this up. >> the couple in jamaica, you never get a word in! it's because i'm a racist. i know it is. we're going to test for it. we're going to test for it. gavin, thank you. it's nice to see you. i'll be back with you in a second. mike, a pleasure. >> thanks for having me on. >> contessa, other than all this, what else is going on in the word today? >> moments ago, president obama opened a summit in washington looking to improve u.s.

relations with china. the u.s. leader wants to ease beijing's worry about holding so much u.s. debt. president obama talked about the important partnership between the two countries. >> the relationship between the united states and china will shape the 21st century. which makes it as important as any bilateral relationship in the world. that really new underpin our partnership. >> the president said the u.s. and china share a mutual interest in a sustained economic recovery and vowed his administration would work with the chinese officials to end north korea's nuclear arms program. he also brought up human rights and he insists americans believe the religion and culture of all people must be respected. sarah palin may now be a private citizen but the former alaska governor has a lot to say. she gave a fiery farewell speech yesterday taking parting shots at her opponents, to the media and even hollywood starlets. the former vice presidential

candidate said very little about her future plans. >> with this decision now, i will be able to fight even harder for you for what is right and for truth. and i have never felt that you need a title to do that. >> we will get a live report from msnbc's norah o'donnell in alaska newspaper in the next half hour of the "morning meeting." the woman who made the 911 call reporting a possible break-in of henry louis gates said she never mentioned race when placed the call. she did not know what race they were when she phoned the police and she was concerned because of recent break-ins in the area. cambridge police commissioner said the calls will soon be released. >> i think that the tapes basically, hopefully are self-explanatory. they are in the hands of the

city solicitor. i know he is working on those actively to make sure we will have no prohibitions and i think absent of that, some form of the transmissions will be released whether they be in transcript form or recordings. >> professor gates who was arrested by sergeant james crowley has agreed to meet with the president and the officer at the white house to talk over a beer. a u.s. congressman is putting a resolution on the floor of the house of u.s. representatives to force the president to apologize to the officer for calling the act stupid. we'll have more on that in a few minutes. breaking news from the real estate harkt market. moments ago the commerce department released new home sales figures for june and in much better shape than expected. sales up 11% from may. the biggest monthly increase in nearly nine years and the supply of new homes fell to 8.8-month supply, the lowest wave seen since 2007 but surely will all of the silver lining, the glass

half full, dylan, you might be able to find a glass half empty. >> you have to understand that in order to create the financial resurrection that ben bernanke has supervised that he had to borrow trillions of dollars against the future of this country and from other places. we traded a financial crisis today. imagine if i was living a life i'm running a credit card bill i move it offline to keep the party going and this is part of keeping that party going. which is probably a good decision. we don't want the collapse. we need to address a system that allows this to happen. >> good news on the housing market is what i care about. >> understood. if you're looking at the housing market and want to feel good about it compare june of this year to june of last year and not june of this year to may of this year. >> but that's numbers since 2007. >> i know. best numbers from may to june is still down 50%. hate to tell you. >> all right. i'm done. >> if you want to create positive news you have to to do it in the context of everything. >> that's why i brought you in.

>> the point of the context of everything, the caller is saying i didn't tell 911 they were black but when sergeant crowley came to her, she said she saw two black men. she is incorrect. the driver was arab, not black. let's tell the whole story. this is saying professor gates addressed race into the situation. judith warner says how we all think what we see and how we reason and react are directly to term by who we are and some of that is conditioned by race. >> exactly. >> it's racial immediately! you two white men are talking! it's racial! >> it's true. no, no. i absolutely true. and we're going to take the test. >> let's do it. >> intuitive analysis test. who is the racist here, my man? >> i love black people. guilty! >> we're going to take the test, for sure, and thank you for the context on those comments. next up on the agenda here, that race conversation.

again, supporters praising the president about his handling of the gates scandal. a congressman putting a resolution on the floor asking him to apologize. with re trying to take issues down like this when opportunities are for improvement in the way we relate to one another. when will politicians stop using the culture of destruction and start using a culture of hope and creation once and for all? haven't seen it in a long time in this country and we're hopeful here we will start to. back after this. it can lift your mood, help rebuild muscle... and improve your concentration. tylenol pm works with your body to ease the aches and pains that keep you awake, and helps you fall asleep in a non-habit forming way. because the better you sleep, the better you feel.

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welcome back. a new resolution heading to our congress demanding the president apologize to the officer who arrested harvard scholar henry louis gates.

why would our politicians deal with these other issues when they can introduce a resolution like this snp ron allen in cambridge, massachusetts, what is going on, ron some. >> this goes back to the president's comments during his press conference where he said the cambridge police acted stupidly and he seemed to be taking sides with his friend, professor gates. the congressman is a republican from michigan o'connor and here is how he explained what he wants to accomplish. >> what i'd really like to see happen is the president say he retracts his judgment as to how the officer conducted himself and to say it should now be a bats matter for the local authorities to determine whether one or both or one of the other parties is involved and at fault. i think that is best resolution of this. otherwise, i have a house resolution i have in asking the president to retract his statement and apologize. >> reporter: unclear how much support there is for that particular resolution or when it might hit the house floor. the president's advisers say he is backed way off of that statement and he even has invited gates and crowley to the

white house as we all know. here is some of what david axelrod had to say on some of the sunday talk shows. >> i think people are talking more constructively now. i think the steam has gone out of this and now, instead of heat being generated, maybe a little light will be generated off of this situation. >> reporter: they certainly hope -- that is certainly the hope that there will be light in this meeting between gates and crowley whenever that happens. the white house says perhaps over the next several days. the police is putting together a panel of experts and community leaders to view what happened. the mayor told us yesterday he is holding a forum sometime this fall, open formum where the community can discuss the issues raised on july 16th. >> we are certainly having that conversation here, ron. thank you. joining our conversation is marjorie valden. you wrote the following. you say in the gates arrest the president shows, he understands life on the dark side of the racial divide. the president said what he felt and what he knew. what do you mean?

>> what do i mean? i mean that, you know, i think that as a black man, he understands how people feel when these things happen. he understands that it's a very common thing. i think that the most interesting thing he said is i think we know separate and apart from this incident there is a long history in this country of african-americans and latinos being stopped by police disproportionately. those were his accident words and the fact that people of color live with every day. the larger question is why is the senator mccotter doing this? is this part of a political stunt? michigan is losing jobs. auto industry is in trouble. if unemployment rate is the state's unemployment rate is sky rotting and yet this is what i finds to do. >> i'd like to add the banks have stolen a few billion dollars from the american people and immigration is a mess and the health insurance companies continue to exploit their advantages and their lobbying power in the government to

protect themselves from much-needed health care reform. >> yes. if it's not appropriate for the president to step in it, why is it appropriate for senator mccotter and i think it's more appropriate for the president because i think he can help shape the national discourse about an important subject. i think he has a cooler head and i think he will bring these two together. i really think this issue is beyond the two of them. i think dichlt. >> for sure. >> i think how we perceive racial slight, how miscommunication leads to that, and, you know, really how -- i think both of them probably could have handled the situation a lot better if they just both decided to act like more mature gentlemen. >> toure, what do you think? >> grandstanding and trying to work with the people on sergeant crowley's side and offended by this. >> maybe they've got money. >> election for the police. >> it's 2010 election for the police money. >> right. >> you're looking to get police endorsement and police money. >> yes.

>> this guy is trying to get police endorsement and police money for the 2010 election -- >> and to be constructive and have a dialogue. i think that is the problem. i think the president was able to do is step back. i apologize. i misused words but let's create a space to have a dialogue. >> the president is trying to to move it forward to create some conciliation in the nation through this situation, rather than keep this fight going which is all this does. look. this is a modern great story. it's messy and complicated! we have a black harvard professor. we have a white cop who teaches racial profiling. there's no simple answers here! this is like phillip roth, the human stain where professor called the student a spoof and turns out he is black as well. >> hold on one second. gavin, what we've accepted as fact for purposes of our conversation because the statistics show is fact is that cops and black people have terrible relations and that the stats as it pertains to the way

blacks are treated by cops is much worse than other it's not much better for latinos. forget why that maybe. these are the facts. this is an opportunity to have that conversation. how do you deal with the reality of the fact that we treat people of different color and different ethnicity differently in this country as a matter of fact? >> well, can i say something? >> hang on. i want to get gavin in and come back for you, marjorie. i haven't heard from gaven yet. >> bias is part of life. people who are fat are biased against. when i used to have longer hair -- >> whoa, whoa! >> it's true. >> are you relating obesity to race, are you doing that right now, gavin? >> absolutely. people who are different one way or another and not part of a majority are biased against. why don't you ask obese people if they are treated the same way as thin people were treated. when i had longer hair my backs were checked almost every time i went through an airport. it's a fact. maybe i looked like a drug

dealer even though i wasn't. i was backroomed and treated badly a couple times. so what. the important part of the story the president got involved and wasted so much time on it. >> i disagree. >> angry professor. >> why is that -- why is that -- why is that the important part of the story not the fact we have bad race relations or room for improvement? why is this an opportunity to beat up on the president when there is an opportunity to talk about race relations in america? >> race relations -- >> than talk about race relations? >> because nothing happened here. we it talk about race relations and it is an important thing and important thing in this country for 200 years. >> so let's talk about it! >> hang on. >> why is the president of the united states getting involved in minor squabble -- >> we had a national discussion about race, about what happened here. you know, was the cop too much? was gates too much? >> i don't care about any of that. >> what about the president's comment? can he comment on this? i think a lot has happened here and i think to relate fatness, baldness and skinniness, having

acne to being black or to being gay or, you know, problems that women have with sexism, it's just a completely different -- and it borders on -- i want to say racial naivety perhaps stupidity to make a link between those two things. >> i think the biggest problem here is that we actually have a prominent african-american professor and we have a cop, a white cop. and it actually says this happens every day in perk america. it just happened to the characters and scenario. >> more powerful people. >> right. but it allows us to have that conversation. i mean, the problem a long time we have actually shied away from it saying we do not have a problem but we do, but it's okay, you know? let's hold each other and talk about it and move on. otherwise, we're not going to. >> exactly. i guess that was my point, gavin. instead of oh, the president is stupid or the cop is stupid or gates is stupid or we're all stupid, forget it. i don't care. it's an opportunity. i look at 9 statistics.

you can see them. cops treat statistically black and latino people differently than white people. that's a fact. that's interesting conversation, if nothing else. and an opportunity to have a conversation. why is there incar radiation as high as it is for black people and latino people in this country? why is the unemployment rate so much higher in this country? it's not that it's white guilt or somebody's fault. but until we observe the actual fact, i don't see how we can move forward. do you see what i'm saying? >> i do, but i don't understand why this nonstory was a catalyst for it. i think it was a catalyst for it because a lot of people are able to get something out of the media because they talk about racial issues. having a black president kind of threatens that because it sort of says maybe we've moved beyond race a little bit because 52% of the people voted for a black man for president. if we're moving beyond racism, it's a fantastic thing. this story is nothing. >> i agree with you it's

nothing. >> the only person who i said that said this story is nothing. this story says so much about where we are in america we have a black president but still have issues that a harvard professor can still be seen this way. >> i actually agree with gavin. i think -- and maria agrees well. this story is nothing. >> how is it foog nothing? >> this story is nothing relative to the bigger story which is this story right here. 14% unemployment in the black population. the treatment of blacks and latinos by the police. that is the conversation. >> temperature-taker for where we are in the country right now. >> yeah. >> it's an important moment to let us know. the first moment let us know where we still are. >> right. >> but the discussion we've had in our country in our own at this table, wherever, with the president is just coming together and talking. we're actually talking about these things. >> yes. >> rather than ignoring them and makes this a teachable moment and makes it an important story. >> i think the only unfortunate is the timing. what we need to do and i think

obama is hitting his head against the wall is we're not talking about health care. that is the important thing we sidelined health care care. >> when gavin says this is stupid why we talk about it is what he is getting at. gavin, you get in here after the commercial and marjorie, last word here and then i have to go. >> fi quickly, fat people don't get arrested every day for driving while they are fat and not discriminated legally in the same sense. also, too. this discussion is extremely important and a great moment for this country because we are talking about it. we are not past racial bias. this whole term of post-racial whatever is nonexistent. the only way to get past these things is to talk about it, with cool heads and, honestly and to step back and say how do we prevent this from happening and move the country forward and the only thing to do that is talk about it. >> until we can be honest and aware it exists, i don't see how we go anywhere from there. marjorie, thank you very much.

gavin, please stay. we will take this implicit association test. this test argues that there is an intuitive, with the baby doll test you were talking about had a similar result. >> in the '50s they showed black and white children, black and white dolls. even the black children found the white doll more preferable, more attractive. they are taking the standard of beauty deep into them. that's a problem for this country. >> they also untutive analysis test they argue also show that black, white, latino, whatever have a preference for lighter faces to darker faces. you and i are going to take the test. we're going to find out if i'm a racist once and for all and whether you are a racist, my man. >> i love black people. >> we are back talking recession. are we out of it? did we get out of it by bankrupting the future of this country or was it brilliance or both? we'll have that conversation coming up. we call the bunches in honey bunches of oats the prize in the box.

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is the recession over? >> probably in a very limited sense. it looks like we're probably going to be seeing positive economic growth this current quarter and probably going to be seeing some rise in industrial production. >> welcome back. ringing endorsement in a sense. paul krugman is probably saying the recession is over in a limited sense. the latest issue of "newsweek" probably claims the recession is over with indeed an asterisk and i suppose that has to do with a few trillion dollars on the other side of all the ledger. if wall street is your barometer and stock market is your barometer the dow is 39% higher from 12-year low set back in march and housing market showing some signs of stability. i'll let the author of the article continue with what we're looking at here. dan gross, author of a cover piece on "newsweek." nice to see you.

how are you? gavin and toure and maria are also with us. what is the thesis of your piece? >> the people i trust the most say it's over. that is a technical thing that economists talk about. it means output is no longer contracting. when imports plummet that is positive for gdp. you remember how this stuff goes down. >> it hasn't been that long. >> you have these technical factors alone saying, okay we will have positive growth in perhaps this quarter. >> which is the intention of the bailout by the way. ben bernanke and the people that were the architects of that bailout deserve some credit for doing what they did, which is they did unfreeze a frozen financial system to resurrect economic activity and for -- as critical as i and others will be and i will continue to be for the failure to deal with the systemic issues that created it to make a decision to try to unfreeze the system by absorbing the bank's bad debts on to the federal reserve and raising the 2 trillion we're borrowing in china and others in order to

protect the little egg that is the american can do machine. >> i give them even more credit, because we had an economy in free-fall. negative 6% growth in a highly leveraged economy like ours is disastrous. has is the end of the world stuff. >> yes. >> immense amount of resources the government and fed poured into this it took this battleship or whatever it was sinking rapidly and stabilized approximate. the we is how do we get it moving forward? >> i disagree with you. i think the question is how did we build the battleship such that it was vulnerable to this massive free-fall and require the american taxpayer to absorb all of the risks of the american banking community while the american banking community paid themselves billions of dollars by assuming risks thexed not handle? why is does the united states taxpayer get stuck with a hot potato when wall street built the hot potato, paid themselves to build the hot potato and when

it got too hot to handle they stuck it with the taxpayer and claimed a recession? >> a battle of the hot potatoes here. >> battle of the knicks. >> right! >> but that really is the question here. gavin, are you there? >> i'm here. >> how do you reconcile desire for economic functionality? you want people in your restaurant and see movies all of the things we need to have happen in this economy with a system that still allows folks to do the things that were being done that got us into this situation last fall in the first place? >> well, you know, it seems to me what really happened here is a bubble exploded, the housing bubble. a lot of people involved, including the homeowners, who have to take responsibility for that. don't forget fannie mae and freddie mac created a lot of this and pressure on them created a lot of us. >> the people who set the rules for banking and borrowing and capitalism is the government. greedy bankers don't set those rules unless they are lobbying government to set them and

people don't set the rules on which they borrow from. the reason i've been so hard on the government on this is they are the only ones i can find who has the power to set the rules that create the bubble, whether it's the federal reserve, the s.e.c., the congress, whatever. so, yeah. i agree with you lots of blame to go around but i pay my taxes to my government for the people by the people of the people. so enforce rules to prevent people from exploiting the system to their benefit and ervel everybody else's expense which feels like what just happened. >> it makes sense and we need more rules, especially having to do with lending. but also culturally, we have to get out of this kind of overly consumerist kind of society and the idea we don't have to pay off debts. when you have a government inflating our debt exponentially every year the government has to start to figure out a way to reduce the deficit in the year future. >> the other issue we are not seeing job creation and not seeing lending.

again, we've taken the money from the taxpayer to relictive the banks and created economic activity again, thank goons. we're not creating jobs and haven't dealt with the fact we have a system vulnerable to lobbying money that creates these crazy activities. >> here is the issue. we are argue in the cover story which toure has right there. >> please. let me have it. the old tool we use to kick-start growth, fed cutting interest rates and broad-based tax cuts and and global trade those are in the blunt instrument shed. they are are the hot potato and on the battleship sinking. the question is we've exhausted those tools. interest rates can't go any longer and we can't cut taxes massively and not let wall street finance everybody. the question is going forward. >> for jobs. >> given all that, in '01 after the recession ended we had a year and a half of payroll job

decline even with the old tools we used to use. in the absence of those old tools knowing we have jobless recovery these days, the question is how do we get job growth going forward? >> when will regular people feel the difference if the recession is, indeed, over? >> remember what eliot spitzer said on friday? the federal reserve -- he was talking about financial regulation which he has a good track record at being good at -- the federal reserve has done an atrocious job at managing the u.s. economy because it's created a bubble after bubble and no jobs and, yet, we create these systems that allow goldman sachs to do high frequently trading and suck money out of the system and, yet, the will politicians talk about the small business man and enforce capitalism to -- >> when will the regular people feel the difference? >> what is going on the consumer is flat on his or her back. deleveraging. businesses are not investing a whole lot and industrial capacity utilization at a low

level. the only game in town is the government. >> the government is the taxpayer by the way, future of america. >> when you look at what obama is staking his first term on, we call it the sort of smart economy. the notion don't do all of these sort of broad-based things and invest in infrastructure, broadband, green energy and health care. these make our economy more competitive in the long term and create jobs in the short term. the reality is i think, the history shows when government invests in these nnks infrastructures good things tend to happen but if we're counting on that job -- >> not to mention the jobs lose in banking as health care and banking get reformed we will lose health care jobs. >> with all of these new technologies we are replacing workers as well. >> right. >> focus on the efficiency and productivity often leads to -- >> there should be productivity -- >> but, yeah, my question when

will real people feel the difference? >> i would say probably next year but -- >> a year from now? >> that's a guess on your part. >> that's a guess. >> some people guess five years and some guess six months and some guess ten years. the real answer is no one knows. there are lots of forecasts and a lot of forecasts that are wrong. all we've done at this point as we've pulled the emergency chute which is evidence it has worked. we have some economic functionality again, thank goodness. now we have to have an honest conversation just as we are with black people and cops, about government systems and how we run our banks and the banks' relationship with our gst. >> responsibility, right? >> for sure. >> but, remember -- >> another government to enforce rules to make sure companies cannot extract capital for themselves at the expense of society. >> nobody told americans to go top off their credit cards, right? >> no question. >> the focus on finance, the thing that gets you in is never going to get you out. we pay obsessive attention to housing prices.

that will not get us out. >> i have to wrap it up. >> you have to look for the big things. the steam engine, electricity, the transistor, the computer chip that ignite -- >> i acknowledge that. >> we don't know by definition -- >> no question but unless there's money available for children of this country to try to explore those things as opposed to being sucked like a vam kum cleaner into the inefficient warehouses of the health insurance industry and goldman sachs shop and other places where money is removed from america by virtue of political leverage to the money is not made available to the children and scientists of this country that would use that money for the innovation to create jobs, our government has failed us. >> they would be hanging you in -- >> i know. >> remember, it takes two to play capitalism. somebody needs an idea and i need somebody taking the money out. that's a problem for america.

contessa, what else is going on? president obama opened a two-day session of high-level talks with chinese delegates and stressing importance of our relationship to that country. the president hopes to make progress with the chinese on economic and environmental issues. also washington would like to reduce china's reliance on exports to the united states. >> the united states and china share mutual interests. if we advance those interests through cooperation, our people will benefit and the world will be better off. because our ability to partner with each other is a prerequisite for progress on many of the most pressing global challenges. >> secretary of state and treasury secretary will lead the american side of those talks. the u.s. navy is warning of an increased pirate activity off coast of somalia. high seas are being credited for fewer pirate attacks. but in six weeks activity could pick up once again. pirates have carried out hundreds of attacks this year.

after a week and a half together the astronauts aboard the international space station taking one last space walk. live pictures right now of the morning's mission. they will rearrange power cable hookups and fold down a piece of popped up installation on robotic arm and install tv cameras on the porch of the japanese lab. shuttle "endeavour" will undock from the international space station tomorrow. who knew they had a porch? snakes in a drain! trapper caught a 14-foot burmese python in western florida. a storm drain over the weekend. residents say the snake has been roaming that neighborhood in bradenton several months. officials say it's been living off ducks from a nearby pond. they aren't sure where it came from. delicious! >> i like duck. >> did she say delicious? >> yeah, she did. who doesn't like duck? >> i can hear you. when you say "she" i can hear you. i'm right here. >> you like duck? >> i do like duck, yes. >> do you like duck, dan?

>> not particularly. coming up next here at the "morning meeting," we will do a little plugging in away from this talk. pelosi talking to politico saying i don't care if i'm not popular. just how unpopular is she? we'll talk pelosi plugging in right after this. i never thought i would have a heart attack, but i did. you need to talk to your doctor about aspirin. you need to be your own advocate. be sure to talk to your doctor before you begin an aspirin regimen. you take care of your kids, now it's time to take care of yourself.

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plugging into politics. nancy pelosi does not care how popular she is. a new gallup poll just came out and her unfavorable ratizing 48% and faverability index 32%. how unpopular is she some that's pretty bad. she says she doesn't particularly care and why should she? she only has two constituent groups to answer to, the folks at northern california who elected her and, two, the lawmakers she serves in the house of representatives. so she says she doesn't care. as long as she is trusted and gets the job done, that's what matters. a quick break here. "morning meeting" is back after this. if we don't act, medical bills will wipe out their savings. if we don't act, she'll be denied coverage because of a pre-existing condition. and he won't get the chemotherapy he needs. if we don't act, health care costs will rise 70%. and he'll have to cut benefits for his employees. but we can act. the president and congress have a plan to lower your costs

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all right. time for the take-way. we talked about race and the president and all of the rest of this.

is it a stupid conversation or is it not? we do not think it is. ultimately especially if cops and latinos have a bad relationship statistic callely. they just do. >> we feel we know that and hear that. >> so toure and i are concerned both of us may be racist. at least that i am, right? >> as i said, i love black people. don't dislike you. nothing against you. you seem like a nice person. do you have black friends? >> oh, yeah. >> besides me? >> no. i consider you a friend. >> i'm the only one? >> no. that's not actually true. that is not true. talk is cheap. talk is cheap. >> a test for fat people and thin people and bald people and gavin people? >> we're going to start with black people. and yellow people and white people and green people. >> green people? >> yeah. we're going to see who likes who and the most least. we will take the test and talk about the results on tomorrow's program. who is a racist? we'll find out and tell you tomorrow morning.

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