where are we? >> willie -- i'm confused by that. bloggo monday, i'm just a little embarrassed. >> what are you -- >> my contacts broke. i'm wearing my glasses. >> the first time in three months. >> here's what we're supposed to tell you, "morning joe" starts right now, but instead say, the morning show starts right now.

♪ drink to me, drink to my health ♪ >> i know this has been called the beer summit. it's a clever term, but this is not a summit, guys. this is three folks having a drink at the end of the day, and hopefully it's giving people an opportunity to listen to each other, and that's really all it is. >> all right. welcome to "morning joe." >> did they work it all out? >> they worked it all out, i think. did they work it all out? i. think they worked it all out. sergeant crowley came out, had his press conference. the spokesman for the whole event. i know, joe, where this is going to wind up. an ad saying, you know, after a long day of breaking news, i kick back with a blue moon. and my boys here, they kick back, too, and they'll sip it up and one came up to be, why don't

you call a professor and come on over? he's going to be -- i'm telling you. >> i don't know what that mean, but, willie, bringing people together, just like we do every morning. >> yeah. >> that's me! >> so, willie -- yeah. >> yeah. >> good morning, willie. bloggo on monday? >> blago's calling in on monday, 4:30 a.m. central time on "way too early." just had bill maher on a little while ago. going to play some of that. >> can you hear the bubbling in the hot tub? >> he said thurt nights i'm very busy preparing for my show. >> yeah. he's busy every night. whatever. >> he was in the hot tub. >> he's great. >> if you had a beer, what beer would you drink? >> if i had a beer summit? >> yes. >> probably rolling rock or just a straight budweiser, not a bud light. >> yeah. >> nothing with a lime or an orange in it i would submit. yeah. not a lime or an arrange.

>> i'm kind of surprised that crowley got the blue moon. >> blue moon hail. >> blue moon, that's the beer of the elite. >> it is. >> in amsterdam. a bit surprised. >> all right. the topic, news. >> you wouldn't drink that. you would drink wine i. would drink wine. >> okay. now there's -- now it's time -- for some of the top stories. >> really. >> here is -- >> there's a reason i do this, joe. >> here is mika brzezinski. >> all right. >> go to video. >> stop! it's not that bad, mr. glasses, mr. four eyes every day. >> no. everybody likes your glasses. >> today a recent controversy -- >> look at biden. he looks like woodrow wilson. all white. and you know, i am curious. did anybody actually invite joe to the beer summit, or did he just walk out, oh -- what are you guys -- >> he just showed up. right there. and race relations cooled off after a meeting with beers at the white house.

joined by henry louis gates whose arrest by massachusetts sergeant james crowley triggered the debate. vice president joe biden also cracked a cold one. while there were no apologies there was a sense of moving forward. >> we had a cordial and productive discussion with the president, vice president and professor gates. i think what you had today was two gentlemen who agreed to disagree on a particular issue. we spent not a lot of time discussing the past. we spent a lot of time discussing the future. >> mr. gates added, i am hopeful we can all move on and this experience will prove an occasion for education, not recrimination. i know that sergeant crowley shares this goal. a government program that trades money for gas guzzling cards is apparently so popular, it's run out of funding. >> no, no. really, seriously, though, i think there are certain things i remember. the '69 moon shot, of course.

a lot of big events. i think our kids are going to look back to this. my god, it was just a part of our life for such a long time. >> you're going to miss it. >> no. seriously. this is like one of those milestones. how long's this program last? >> the problem is, you gave them too many of your -- >> talk about a stimulus package. >> four days. >> people went ound, used that thing, bought those vehicles. put $100 billion in there, joe. >> there you go. so-called -- >> kaboom. >> just don't -- >> cash for clunkers program exhausted its $1 billion budget in a week, sources tell nbc news that officials are working to keep the rebate plan up and running. officials invest gating the dith of michael jackson are labeling the pop star as an addict. >> oh, no. >> again, these are like -- >> can we get the breaking news banner up on this one. >> stop it. as they build a potential manslaughter case against the pop star's physician, this is actually quite sad and a

terrible case of enabling. >> yeah. >> which was going on here. >> get to the story. >> showed dr. conrad murray may have broken several state codes by giving jackson a powerful sedative. it comes amid reports of a custody agreement that allows jackson's children to live with their grandmother katherine. debbie rowe -- >> maybe we vo have a twitter thing. 140 character it's, plikal jackson story. i won't give names. there's a certain network executive that goes around, we're the real news. everybody else is doing opinion. we're real news. i'm not going to name any names, because this won't be hard for people to figure out, but i was last night at martin's in georgetown have be a burger and i look up, and this certain to this network, cnn, as far as i'm going to go, it's primetime. breaking news banner, pow, pow, pow, michael jackson's father, shocking revelation.

they are the michael jackson network, and i just think it's fascinating that people run around talking, we're real news. i don't -- i don't get it. and now with christine amanpour. how iran is responding to michael jackson's death. seriously, that's fine. escalated. i get tapes i don't want released. at the same time i didn't run around going, i'm real news. >> i want to see some of those tapes. >> no, you don't. >> i want to watch that show. >> can we burn those? >> i want to see them. >> we're real tabloid, as we would say. we don't run around saying we were something we weren't. police clash with protesters. the clashes erupted as demonstrators gathered at a grave site of a woman whose death was circulated on the internet making her a symbol for the oppositions. a senior military adviser in

baghdad says it's time for the u.s. to "declare victory and go home." the colonel says the iraqi military is prepared to handle potential threats to the government and suggests any further american presence will only fuel resentment i. want to talk about this. >> absolutely. >> let's get this next story, because i don't think anybody wants to hear this next story. >> are you sure? >> no. besides, willie will rub it in our noses afterwards. that's the news. thank you so much. >> we should talk about afghanistan as it relates -- >> pat beaux can, this is way off course, but i do believe it's about time for us to declare victory and come home. we've been there -- >> colonel reese said, declare victory, come home. the iraqi military government is not up to speed and everything is corruption and things like that, they can handle it and use the old line, after three days, guests and fish both begin to stink, and he said, we're beginning to stink over here, and forkes don't like us and we better get out. and the commander over there, of

course harks to run the show. he said, not so fast. but i think most americans agree with colonel reese. >> pat, our men and women have done and extraordinary job, while washington politicians and people on tv shows have been yelling at each other, but they have done a remarkable job. it is now -- they've dub their job. it is time for them to return loam to their family, and it is time for the iraqi people to decide whether they want a functioning democracy or not. >> at some point they've got to be on their own. what better point that right now? petraeus' strategy has worked. yes, they have problems. most americans say they have done the job, done a terrific job and we ought to come home. i will say this. they are talking about re-upping in afghanistan. >> exactly. where it's going to end up going. >> with our economy in the tank, too. >> yes. >> and if we have a chance to get out of iraq, if we have given them a fighting chance, and we have, then we ought to come home, and that allows to us do a few more things in

afghanistan, if, in fact, all the generals and admirals and the president believes we need to stay there for mother four, five years. >> we can talk about this with our guest after a quick look at news. now let's go to bill karins. >> the most inappropriate weatherman's in all of news. >> he looks so appropriate. seems so appropriate, but then he opens his mouth and, wow. >> i think, a guy in an airport terminal yesterday in boston come up to me and say to me, joe, how do you deal with your weatherman saying so many inappropriate things about your wife? >> i know. poor susan. >> it's not easy. my wife, seriously. >> she's pretty, but -- >> she does not watch this show. >> if you're in boston, of all places. so -- you know, boston. >> you can say whatever you want about my wife? >> i think it means -- he'll go visit her. i don't know. >> how inappropriate. >> no, joe. the weather. >> just give uses weather. geez. >> i don't ever bring up your wife. you bring up your wife.

it's about me and your wife. that's where everything gets a little dicey. >> that is -- >> what is -- >> he's doing it again. >> give us the weather. >> weather. >> let's talk about the forecast out there. i never bring it up. all right. we're watching showers and storms from new england southward today. it going to be just an ugly friday afternoon. we've already got some rain moving over five boroughs of new york city, and as we go throughout the afternoon, it's going to continue. there's the picture of new york. it's going to be an ugly friday. we're going to trade an ugly friday for a nice saturday. if you have saturday plans you'll be just fine. pittsburgh to cleveland down through columbus and lexington, rain and also heavy rain down around the gulf. from mobile to pensacola, strong storms rolling your way also there around birmingham. the forecast for the country today, the heat wave is over in the northwest. beautiful today in chicago. down to dallas, but the stormy weather is all through the east just like my relationship with joe.

>> okay. i -- kind of uncomfortable. thank you, bill. coming up next, senator orrin hatch. why he walked away from the health care talks. i didn't even know republicans were invited to health care talks. plus a preview of "meet the press" and david gregory, and nbc's chuck todd and his famous goatee way look at the morning after. and congressman elijah cummings, and last night's thirsty thursday summit, plus -- willie's week in review and it ain't in twitter form. >> oh, no. >> first, looking at some of the stories that politico and its flaming super nova mike allen is working on. you're watching "morning joe" brewed by starbucks. i'm thirsty. at 155 miles per hour, andy roddick

has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't. so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free".

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joe." live pictures. a little bit of an overcast day at the white house there. here with us, chief politico, good morning, mike. >> congratulations on week weren't of your great 5:30 a.m. eastern program. "way too early." >> thank you, mike allen. call it quits from here. did okay. going to wrap it up. a nice run. >> rerun them. >> exactly. summer reruns. >> yeah, and u.p., what else are you going to do? >> we had bill plaur on today which was also great. bill maher. talking about sarah palin. let's go right to the that topic. a lot of people saying her first move since stepping out of office will be at the reagan library. not a sure thing. was it? >> it wasn't. willie, another example of the fact that the palin operation could not conduct a three-car funeral. they've been so disorganized. again and again people thought she was attending events and then didn't.

you don't know who to call. do you call the governor's office? do you call her pack? do you call her booker? and this continues to be a problem. republicans, women's organizations, perhaps jumping the gun, maybe even certainly jumping the gun had advertised her presence. part of the problem is, there's all different parts of the palin operation that receive invitations and accept invitations. anyway, they've now posted a curt announcement saying she's not coming to the reagan library and all that needs to be approved by her attorney, willie, probably a good policy for you and me. >> so she's not going to the reagan library? did i hear you right? >> she's not so far, which is a big mistake, and sarah palin should go there soon. she could use a little ronald reagan hail halo at this point. >> should she keep her head down, go through the issues? saying it the last six months.

is she actually going to do it. >> going out on a limb, actual number, no hedging, dodging, weaving. an actual percentage chance that governor palin will do what you just suggested. >> go for it. >> zero. there's no way she's going to do that. she's going go out, cash in, make money. she's going to do, as suggested on this show, perhaps radio. certainly speaking tour, and get ready for the book where we'll get to see all of her. >> and radio, too. and the end of next week going off on that long summer recess. she's leaving her friends in congress a little friendly reminder. tell us about it. >> she is. more homework. goodness. i'm not a congressman. i'm going to it be lying on the outer banks riding on my brother's new house ski boat and house members are going to be out conducting teletown halls and visiting hospitals. today the leadership is sending house democratic numbers their

cheat sheet saying our message is simple and in sync with the white house. holding insurance companies accountable. again, just as the president has started to refer to this as health insurance reform, this is again a message pushed that the majority of american whose have insurance and are worried that the president's plan will either cost them more or give them less. so she has a little cards they can fill in from their district. sent oun an example yesterday and it just happened to be the district of her friend, john boehner of ohio. >> a working vacation for them. i love your last story in the playbook. just tell us about the poor executives. not the poor executives. the executives that came to the white house for lunch? >> certainly poorer, we can agree about that, but today it is private dining room. that's the v.i.p. treatment. the j.v. gets to go to the roosevelt room near the oval office. the president having lunch with

business leaders. a regular thing for him and politico jabbers discovered that they pay, the white house collects credit card numbers from the ceos when they come in so nobody can say they're cozying up to wall street execs except when it comes to lunches. i think a lot of people would say i'd rather pay for the lunch and have them pay for the bailout have a good week, willie. >> invite somebody to lunch and make them pay. reading the rest of the playbook at politico.com. have a great weekend. >> when we go to lunch, you're paying, willie. >> especially. >> you have a better suit. "the washington post," in afghanistan the u.s. may shift strategy, violence breaks out in the streets of tehran as well, another story there. the "washington times" metro chief fears for other rail systems. remember that big accident. two obama aides clash. another story in that pain. the "wall street journal," bank bonus tag, $33 billion. more in that story in business.

in the houston chronicle, tax payers to foot bill. the "san francisco chronicle," deficit will dodge budget for year, of course. and antibiotic, a house bill restricts medicines used in food animals. ranchers issue caution. >> wow. i wanted to talk, pat really quizzed me on this "washington post" story. violence breaks out in the streets of rafsanjani, stirred . i don't think they have this thing tamped down. >> i think ahmadinejad will not finish his second term. crossed wire wires with the ayatollah and a lot of protesters in prison were beaten to death and people are enraged by it. i think ahmadinejad is in real trouble. wouldn't surprise me if they dumped him.

>> his whole theocracy i think is in trouble. >> great news for america. >> great news for america, and this is a civilization thousands of years old. a lot of people have been greatly offended by what elements have taken up in that country since '79. i think the uprising continues. coming up, a first look at business and also the mustering opinion pages, straight ahead on "morning joe."

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welcome back to "morning joe." the dow has stayed above 9000 all week. how it's going to do and check the markets with courtney reagan, with our first look at business. >> hi there. higher ahead of the opening bell but that could change when we get the latest figures on gdp, measuring the total output that the economy produced last quarter. the success that we can track it in the spring but hopefully not as big a decline as we saw in the first three months of the year. that's the expectations. never know until we get those numbers in our hands. we'll also get reports on manufacturing and employment costs. all part of the economic data package we'll hear about today. higher yesterday we closed. investors cheering on positive

earnings news. the dow is having its best july percentagewise in 20 years. rose 83 points. kick off the day at 9154 and the nasdaq starts at 1984. back to you, willie. >> all right. thanks so much. want to point out front page of the financial time, shell and exxon profits tumbling as oil prices go down. now down to washington and mika. there's a spectacle, mika brzezinski with a look at the news. >> before we do news, chris, do we have any e-mails? we're having a fierce debate on these glasses. i'm telling her not to look directly into the camera. >> anthony in houston writes, mika with the glasses, for some reason, i'm hot for teacher. >> oh! >> very uncomfortable. especially the way you read it, looking at the camera. nobody noticed anything about me? me, me? >> you're wearing a tie. >> i'm wearing a tie. >> yes. >> would someone, like, ask me why i'm wearing a tie? >> why are you wearing a tie?

>> a certain punk went number one. our first fan. >> i love it! >> number one. silva. >> you're wearing a tie for him, because he told me i needed to wear a tie. this is in honor of his book zooming. "the perfecter." just like that. >> i think it's nice that you dressed nicely for work, for once. that's nice. i'm going to do the news, and the thanks for that e-mail, now i'm really uncomfortable, but -- >> four eyes. >> all right. top stories -- a new report shows around 5,000 workers on wall street were awarded seven figure bonuses last year even as their financial firms were being propped up by taxpayer bailouts. according to the "new york times," the payouts were handed to hundreds of traders and bankers at goldman-sachs, morgan stanley, citigroup and bank of america. >> i'm a capitalist. okay? i like people making lots of money. that makes me happy for them, but i don't want hundreds of

millions of dollars in bonuses going to anybody when american taxpayers are propping these people up to keep them solvent. >> yes, but the -- >> $33 billion, the total loss of the -- another 900 -- >> some of them have -- >> yeah. 39 people got a million dollar bonus. >> 950. >> goldman-sachs. >> goldman-sachs got it. the total in the "wall street journal," bonus tab, $33 billion. >> the bottom line is, these business people do not have a moral compass, they're handing out lots of money to these people, to their employees when they're being propped up by the american taxpayer. >> goldman-sachs, sends money to germany to bail out goldman-sachs. unbelievable. >> and i think okay, the part of the -- >> again, i understand, if you want the best and the brightest. >> for sure.

>> and the best of the brightest firms you've got to give bonuses in normal times. these are not normal times. like you said, suffering americans struggling paycheck to paycheck. 11%, almost, don't even have jobs opinion and these banks are handing out million dollar bonuses? >> yeah. >> that are being propped up by taxpayers? there is something very wrong about that. again, this comes from a capitalist. this comes from a conservative, almost a libertarian. tell what you, they're right to hand out those bonuses when they take federal tax dollars, it ends then. >> pay it back. >> then give people whatever they want. until they time, this is obscene. >> the white house is preparing plans for next month's presidential medal of freedom award. 16 people will be honored including senator ted kennedy and former supreme court justice sandra day o'connor and thousands returning to their homes in texas this morning after a chemical plant fire was brought under control.

at least 34 people were treated for smoke inhalation. no reports of any serious injuries. >> okay. as we go to break with van halen's hot hit "hot for teacher" straight ahead. >> that's not -- coming up next, the monthly opinion -- >> the end before they scream, oh, my god. >> john harwood, you're watching "morning joe," brewed by starbucks. during times like these it seems like the world will never be the same. but there is a light beginning to shine again. the spark began where it always begins. at a restaurant downtown. in a shop on main street. a factory around the corner. entrepreneurs like these are the most powerful force in the economy.

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earlier tonight president obama had a beer with professor gates and officer crowley and i'm told that the three men got along very well. but some people are saying it was a mistake for them to bring their wives. take a look. >> ah!

oh, welcome back to "morning joe." with us now here in the washington bureau, can you believe this? kind of fantasy. huh? >> better than elementary school that they gave us before. >> now, children. all right. cnbc's correspondent and political writer for the "new york times," john harwood joins us at the table. john, good morning. >> a lot to talk about. let's go through -- we're going to get to some inflammatory language nancy pelosi use about insurance companies and ask what that's about. first, bill maher, who was just off a very successful stint on "way too early with willie geist," this is a big day for bill. >> yes it is. important to him. >> he gets up on west coast time, for that show? >> way too early. he got the "los angeles times," the "l.a. times" op-ed we'll read for you and also a new hot

tub installed in his kitchen. >> a big -- he can fit like nine people in there. >> and she does, but let's read the "l.a. times." >> must be stopped. i can't disagree. stop talking about them too. why in this country is it always the religious right that won't take anything on faith? what a great question. so far the reaction from democrats is to lafr this off, and i understand why. if you seriously believe that president obama is an african sleeper spy, get out of your chat room and have your house tested for lead. but we live in america and in america, if you don't immediately kill around nonerrant nonsense, he can thrive and eventually take over like crab grass or reality shows about fat people. these people make so much noise -- i was going to bring sarah palin into it. >> you know, seriously, bill who has always been nice to me when

i go on that show and an out numbered 1,000-1, bill tries to blame everything, including earthquakes, on christians. this has nothing to to with christians or the religious right. this has everything to do with people in the far right. >> uh-huh. >> who hate barack obama. >> i mean, do they really believe this? >> what's up here, come on. i'm not going to -- i'm going to you. did you want to -- >> research -- >> finish your research. >> what a distraction. while democrats are imploding over health care, we're schooling -- >> a lot of website, a lot of e-mails, a long, long time. the conclusive thing is this advertiser, honolulu. a newspaper with the next morning so and so born to so and so, and -- >> barack obama! >> somebody went back and doctored up the newspaper, advertising, i think -- >> it's ridiculous.

>> into a fringe. >> we can't ask harwood this question, because she in fact a birther. >> all right. sorry. on to the next one. >> i want to make one point. >> also, please don't talk about building seven. we told your people we're not going to let you talk about building seven either. >> peter, the democratic pollster who does the journal nbc news poll had a focus group outside of baltimore the other night and one of the things he found was that there were a lot of doubts about spending, deficits, barack obama's agenda, but people were very comfortable, independent vote herbs, with barack obama personally. they referred to. by his first name. >> right. >> it suggests to me that this birther story is not likely to get much traction beyond a very, very confined group of people, and a few talk shows. >> it's a 9/11. it's like the 9/11 conspiracy theory. they're going to continue regardless. >> you know, joe when i went to work for nixon up in new york 1965, i went down to greenwich village and had to play mcbird,

about, you know, johnson, murdered jack kennedy, right on the play, all of this talk ever the cia, of johnson, all of these things killing jack kennedy. that's far more serious, and, yes, these kind of conspiracy theories -- >> remember bush 41? people in the far left saying he was on drugs? >> went to paris, had the meeting with the ayatollah. >> and was running drug, right, in central america. and then we've got the conspiracy theories from all sides. >> and this good. about obama care reforming the health care system is dead. cause of death, blunt trauma administered not by republicans not even by blue dog democrats but by the green eye shades at the congressional budget office. a vast constituency that has insurance, is happy with it and is mightily resisting the fatal lures of obamacare, the president will in the end simply impose heavy regulation on the insurance companies that will

make what you already have secure, affordable and imperishable, no policy cancellations, no pre-existing condition requirements, perhaps even a cap on out of pocket expenses. >> john harwood, and that's the problem. most americans are happy with their insurance. >> you've got to convince all the people who have insurance they'll benefit by the reform. >> now. >> yes. and weren't of the ways obama's trying to persuade them they'll benefit is by control of health care inflation costs. here's the problem with that. nobody knows what's going to do that. it's extremely complicated. you've got things which health care policy people think may control costs, but they can't prove it. can't score it. >> the thing is, the majority of americans are, if you look at the polls, are happy with their health care, happy with their insurance policy. it happened in '93. it's happened again where you've got the american left, for good reasons, for moral reasons,

reasons i don't agree with. i don't agree with how they get there, but for good moral reasons they say we've got to insure everybody. the media jumps onboard. this is the mortal cause of our time, the parade goes down the street and find out that 60%, 70% of american, happy with their insurance. >> it's not dead. i mean, there are problems. we don't know what the final bill's going to be, we don't know how their toe will be but it's not dead. >> i side with charles on that one. >> you could put a bullet through. secondly, you get this rationed care stuff. what's going to happen at the end of our life? >> multiple gunshot wounds. >> and start talking about taxing the benefits of neem got them. >> thinking of -- >> let me say quickly, just clarifying what charles is talking about, i don't want to put words in his mouth, but the diversion we've been debating is dead. we're not going to have a strong public option. there's going to be watered down

in my opinion, by the end of the year. the blue dogs also the moderates in the senate. >> you're right about that. >> yeah. >> but that doesn't mean reform is dead. look, democrats are trying to make a stand on public option. but if they come up way plan that insures the vast majority of the uninsure even with a bare bones plan that eliminates pre-existing conditions, market reform, changes in health care delive delivery, that's not a bad day's work, if they can get it done. >> lots luck. i think the democrats, at least one or two democrats, may be panicking a bit right now. >> well, we were talking specifically what nancy pelosi said. we have the quote. let's put it up. this is what she said about insurance. it's almost immoral what they're doing, pelosi said to reporters, referring to insurance companies. of course, they've been immoral all along in how they've treated people that they insure, she added. adding, they are the villains. they have been part of the problem in a major way.

they are doing in their power to stop a public option from happening. >> they are. so we have the speaker of the house calling insurance company, again, insurance companies that the majority of americans support, while i think only 35% of americans support nancy pelosi, saying that insurance companies are "villains" and did she say evil or immoral? this is not a speaker who feels like schae the wind at her back. is it? >> absolutely not. she's very frustrated. >> are you surprised with that kind of talk? >> a little bit. i mean, it's pretty strong. i have to say, to come out and say immoral, villains, all that. i will say that americans may be satisfied with their health care, they're not happy with their insurance companies. insurance companies do not test well in the polls. >> no. kick the companies around -- >> deals with people you've already got. a lot of folks, my insurance company is doing a pretty good job. >> the problem, again, the

democrats have, that nancy pelosi has right now is that more americans are comfortable with these insurance companies that nancy calls evil and serz villains than they are with the federal government getting involved in health care. >> take a look at nancy pelosi -- >> probably by a 2-1 margin. >> her on poll numbers are just in the tank. >> your girlfriend has higher approval ratings. sarah palin. >> okay. you have to stop. >> what's happening is -- >> don't start. >> a comfortable choice that may be forced on the left in pelosi, which is, if you're right, and there's a good chance you are, the public option is coming out of whatever moves in the congress. then the left's got to decide, okay, is this good enough for us? are we going to go along with this? her caucus has got make that decision, and you've got people like chris dodd saying, no, no. don't assume the democratic caucus is just going to swallow anything that comes out of this bipartisan negotiations. i think it's going to be -- i agree with you. it's going to be awful for them

to walk away from that. >> and if the president comes, steps forward with the type of strong consumer protections that charles is talking about in his column, getting rid of pre-existing conditions, allowing your children to stay on your health insurance until they're 25, 26, especially in this bad economy, making sure you can't get cancelled. i would like to see those liberals progress to the left, like barney frank and chris dodd, vote against those consumer protections. i don't think they can. the president will say, we didn't get everything we wanted, the economy will turn around. when it turns around we'll be back. for now, let's protect consumers. i bet if he does that, narrows his focus, keeps his head down, i bet he even gets republicans on that bill. >> if you're on a 70-year losing streak on the effort for national health care you come to a point where you've got say, can we take something? >> you take what you can. will there is nothing in the constitution, you know i am a

constitutional law expert. i took a class at university of florida law school, if you read the constitution, it says specifically you don't have to do everything in 2009. there's a new year, and they can take 2010. >> he might be. sorry. >> i know the constitution. >> all right. john harwood, stick around, if you can. later this morning, eugene robinson on the so-called beer summit. but up next, freddy ball game has sports. why is it so hard to have a real conversation about race? >> because i don't think reverse race simple is as important as

unconscious racism. that's where racism is nowadays. it's at the unconscious level. i don't think this cop, officer crowley, is a racist. i just think that we all bring with us feelings and emotions that we don't even know are there. (announcer) some people don't just work.

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the red sox came back, beat the yankees and won the series breaking the old curse? >> a bunch of cheaters. here's fred with sports. >> thank you and good morning for some this may come as a surprise for others no brainer. "new york times" reported the dodgers manny ramirez and the red sox ortiz among 104 players that tested positive for performance enhancing drugs back in 2003. ortiz and ramirez include and the list that was supposed to remain anonymous. the same list included alex rodriguez and sammy sosa. ortiz, however, claims he no knowledge of testing positive for any type of drug. >> i know it's been -- honestly

right now i have no information about it. i'm going to get more input a about the situation, and i'm going to honestly see what's up. >> just hours after the news, ortiz was busy hitting the go-ahead home run against the a's. a three-run shot. and a standing ovation. ortiz goes from zero to a here know a matter of hour. red sox beat the a's 8-5. manny trying to stop a skid gets against the cards. needed more innings. a 5-3 victory over st. louis. another baseball note, dodgers akwured george sherrill from the orioles for a pair of prospects. a basketball note, lamar odom, three years team option for a fourth. if he plays all four years the deal is worth about $33 million. check out these shots from the women's british open. becky in an approach on 11 is up and goes into the cup on the

fly. no bounce needed for that bird. off the pin and in. can't get much better than that. what a shot. >> wow. >> you guys have a terrific weekend. talk to you on monday. >> fred, thanks a lot. coming up, the week in review and sarah palin is our headliner. we'll be right back. undefeated professional boxer floyd "money" mayweather has the fastest hands boxing has ever seen. so i've come to this ring to see who's faster... on the internet. i'll be using the 3g at&t laptopconnect card. he won't.

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oh, yes. is it time, willie? >> sure is.

>> is it time? >> it's time, mika, for the "week in review." >> thank god. >> governor of also, we said good-bye to ms. sarah, for now. >> some still are choosing not to hear why i made the decision to chart a new course to advance the state. and it should be so obvious to you. >> at number three, sarah palin says a bittersweet good-bye. or maybe just a bitter good-bye. >> one other thing for the media, our new governor has a very nice family, too. so leave his kids alone. >> when she wasn't issues warnings to the press at her farewell picnic on sunday, palin was giving hunting lessons to hollywood. >> by the way, hollywood needs to know we eat, therefore, we hunt. >> welcome shatner, long a hollywood-type himself, re-created portions of palin's going away speech on the "tonight show" in the form of

beat poetry. >> the cold though doesn't it split from the sourdough? >> while some of the east coast liberal media elite mocked pail's, others were sad to see her go. >> i love sarah palin. you've got this former beauty queen and sportscaster in the role of dick cheney, and it's mesmerizing. >> the final word to you, governor palin -- >> quit making things up. >> at number two, reality check. >> i want you to give me a hard time when we're 80 years old. >> just when a weary nation was in the mood for a good love story, along came bachelorette jillian and her new fiance ed. thanks for sweeping us up and taking us along for the ride, you two. >> will you marry me? >> absolutely. >> another group sought true love by groping each other in the dark on national television.

a new low in reality tv? you make the call. >> can i feel your face now? >> good lord, that's dumb. >> then on tuesday, fox gave us more to love. >> do you know how to say, kiss? >> you want to show me? >> almost makes you long for "temptation island" doesn't it? >> what kind of girl to you like? >> and the number one story of the week -- >> a discussion about he and i and professor gates having a beer here in the white house. >> not since president clinton brought together arafat and rabin on the south lawn has there been such anticipation of a white house summit. racial healing on tap at the white house today. >> big beer bash at the white house. >> a controversy brewing, you might say. >> there's not going to be a lot of buzz about the conversation. >> but i'm going with bud buddies. >> the squad beer summit begins in eight hours. oh, yeah! >> after nearly a week of

fascinating beer analysis, harvard professor henry louis gates and sergeant james crowley finally sat down on thursday for a cold one with president obama. >> hmm, beer. >> see? that wasn't so hard. america's long history of racial tensions washed away with a simple swig of a beer. >> i think what you had today was two gentlemen agreeing to disagree on a particular issue. >> next week at the white house, iran and israel play beer pong for all the middle east marvels. >> the people of the world can live together in peace. >> drink, drink, drink! >> joe, mika, pat, don't you? beer pong? >> yeah, yeah. >> yeah. >> i'm still stuck on the reality shows. >> you can see -- groping in the dark show? >> the groping in the dark, and -- the other one, i -- i'm not going to say. i would qualify for that one. >> it's our nasty porn, is what it is. these dating shows are --

>> if you want bizarre and nasty porn, willie can tell you. >> tell you right now -- >> you did not disappoint. no. i'm good. >> yeah. okay. we bring in to this pigsty, nbc news andrea mitchell. >> welcome to this wonderful -- >> you did redecorating here. >> yeah. paint brushes and, mika -- solidarity. >> all right. thank you. >> they've been making fun of my glasses all morning. >> you can can't make fun. >> andrea, like to talk about, we really don't think we're going to talk about the beer summit. nancy pelosi just really going after insurance companies, democrats, blue dog shooting at progressives, a lot to talk about there. to sort through and also a fascinating story that pat and i were talking about earlier. we've got some generals in iraq saying it's time to pull up stakes and come home. >> declare victory and come

home. senator aiken writes from vermont. and, in fact, a lot of people are beginning to feel that way. first of all, they've got real disagreements at the, you know, command level between, still, between iraqi military and u.s. military. that incident that occurred when the iraqi soldiers arrested a u.s. commander for ordering his troops into action, they've got to work out those issues, the tension there, but pelosi and the insurance company, that's all poll-driven. right? the health care bill is a mess, and they're losing aptitude. >> yeah, quickly. we'll talk about that. >> the insurance companies. >> here's mika with the news. time for a look at today's top stories. today a recent controversy over race relations apparently cooled off after a meeting over beers at the white house. president obama was joined by harvard professor henry louis gates, whose arrest by massachusetts police sergeant james crowley trig ired the debate.

vice president joe biden showed ip, too. while there were no apologies there was a sense of putting the past behind them. >> what was accomplished was, this is a positive step moving forward as opposed to reliving the events of the past couple of weeks in an effort to move not just the city of cambridge or two individuals past this event but the whole country to move beyond this and use this as a basis of maybe meaningful discussions in the future. >> mr. gates added, at this point i'm hopeful we can all move on, and that this experience will prove an experience for education, not recrimination. i know that sergeant crowley shares this goal. >> professor gates' profile raised by this. obviously, officer crowley's profile has been raised by this. everybody is a winner here. except for president obama. >> no, actually -- >> i feel really sorry for ms. whalen. should have been invited, too. >> i thought it was interesting

vice president biden showed up for that. a lot of criticism around the table of vice president as kind of a gas bag. one of the things that the president picked him for was that joe six pack kind of sensibility, the regular guy sensibility he brings to the ticket, and that's something that barack obama felt he needed yesterday when he sat down for beers. >> a situation where the president of the united states, african-american, professor the an african-american, and irish cop from boston cambridge sitting there, unequal match. so you bring in joe biden. he in fact, the white fella sitting there beside the cop fmplgts joe could keep talking and talking and talking, might stop -- >> joe biden does a lot, not only in situations like this, he help, dealing with generals. >> yeah. >> and admirals. i'm not saying president obama would be harshly creditediccal of generals, but you know what?

it's good. actually your first instinct, when you get into politics and haven't been around it, salute and after a while you figure out, there's some political -- in the military, too, and biden can warn him. he sits down, because he's been there since he was 29 years old. joe biden, who may be getting bashed in the polls, joe biden is exactly what president obama, i think, needs. >> the reason he's there. >> i don't disagree. moving on with news, a goftd program that trades money for gas guzzling cars is apparently so popular it's running out of funding. the so-called cash for clunkers program has exhausted its $1 billion budget in only a week. sources tell nbc news that officials are working to keep the rebate plan up and running. >> my first reaction was to actually mock the fact that the program only lasted four day, but you bring up a great point. that means it works. that means this is one stimulus plan that's getting people to car dealerships --

>> tax incentive to go out and buy and frankly i would have had a $100 billion program only to buy american cars. >> do you agree? >> get the government out of it. all of these members of congress who have been flapping their gums about the deficit and federal spending, do they want to pony up another $99 billion? >> that's what the stimulus package should have done, this. stimulate the private economy. >> andrea, this is an example of a stimulus plan that works, where you give people rebates, they go directly to american car dealerships, they buy cars that helps dealerships and everybody down the line, but, i beg the difference on one little point with brother pat here. you want to get the government out of it you don't say you have to buy american. if you believe in the free market system you let people trade in their cars for whatever they think works. that's how you get better cars. >> you traitor, you. pat and i, on this. buy american! >> all right.

>> chinese, japanese. >> are all of those foreign cars made here? >> look, some of them, assembly, assembled all the parts, the high value -- >> if you have jobs -- >> american jobs but just say american cars. >> i don't think there's anything wrong with saying, we want to say gm. we want to save ford. we want to save chrysler. >> all right. more news stories. e-mails obtained by "the washington post," high ranking bush administration officials including karl rove had a larger role in the 2006 firings of u.s. prosecutors than previously thought. according to the report, the e-mails reflect efforts by political aides to push out the attorneys and in favor of hand-picked selections. >> shocking. because that never happens. >> oh, wait a second. every administration does that. >> hmm. witnesses say -- >> stop. i don't want to be -- i have a friend hoop was actually one of the most successful u.s.

attorneys, and bill clinton appointed him and the second, the second bill clinton was out of office, he got fired the next day. he switched party affiliations but had the mark of caine on him. >> he walked in and said, okay -- fire everybody. >> and cases running, all of them now. >> that's my buddy. my buddy was right in the middle. got fired overnight. when i heard what was going on, like, this is shocking? this is what bill clinton -- bill clinton fired everybody. >> and -- >> it was more targeted to people involved in the reporting. people involved in specific cases. it was more punishment for people who were -- >> over the line. >> the new mexico cases on -- >> over the line. >> i want to read the e-mail, too. >> let's readed e-mails. witnesses say police forces clash with protesters at memorials for victims of postelection violence in iran on

thursday. the new wave of unrest erupted as demonstrators gathers at the griv site of a woman whose death was circumstance cue lated on the internet making her a symbol for the opposition. >> andrea, it's not quieting down in iran. is it? >> it's not quieting down. i saw what you were saying earlier. i think you, according to the reporting we're getting from human rights gripes and from people who have relatives there and are calling out, using central networking, i think we may be a little bit too hopeful in our estimation as to regime change, because they've got the guns, and unless you see the militias begin to crack, it's not so much the divisions among the clerics. we've seen that before more recently, and ahmadinejad does have problem, but i think they really have the power. it's the various riches start to divide over whether they'll kill her they're own people in prisons and in the streets,

that's when you might see -- >> crosswires with the ayatollahs and conservative folks and the folk whose really have the guns. >> he was -- there were issues there, they were getting crosswires, but i think they are patching that up. they are going to end up presenting a united front. my sense is that later rather than sooner, that this still needs to -- >> so we may be a bit more hopeful than facts on the ground warning? next story is a fascinating story. >> yeah. according to the "new york times," a senior u.s. military advisers in baghdad says it's time for the u.s. to declare vecttry and go home. the colonel says the iraqi military is prepared handle potential threats for the government and suggests any further american presence will only fuel resentment. >> john harwood, we move in that direction. >> pretty clear, obama's moving in that direction opinion the question, how long will the victory stay won, if, in fact, the iraqis are able to

maintain -- exactly. >> pat, listen, when we leave, and it blows up, it blows up. >> we're not going back. >> we cannot be the insurers of iraq's peace for the next 50 years. >> you can give them a real fighting chance and i think petraeus and the surge strat xwla done that. most americans say if the crumbles, falls apart, then it does. >> at the sail time, though, celebrating the work of the men and women who served there. and risked their lives or lost their lives. >> and general petraeus turned the situation around like nobody. george bush and john mccain believed would be turned it around. >> are the american people willing to stick with the expanded investment and engagement in afghanistan? as we begin to draw down from iraq? >> we shall see. >> there's a nexus with 9/11 and terrorism there. i think there will be a little more patience there. >> one more story for you guys. several top ceos are reaching for their wallets after last

month's visits to the white house. politico reporting administration staffers billed them for the cost of the meal. after collecting their credits card number. the white house says it's a way to avoid conflicts of interest. >> wow. >> give the guy a burger, for heaven's sake. >> did they charge for the beers last night? >> i don't know who paid for the beers. not going to bill crowley for this piece. >> all the bonuses. yiv got to believe the one person, one political fig andrea, interested in hearing your opinion, the cross hairs of all this is going to be chris dodd when he comes up for election with the aig bonuses and so tight with all of these people. got the countrywide home loan that now countrywide is saying he's not telling the truth about that they did give him -- nobody in congress who is scrambling harder to get things done and to let his constituents no that he's getting things done, on financial regulation, on health

care, than chris dodd. it's remarkable that so quickly after he runs for president, democratic moment, he's the most vulnerable democrat. >> and he moved his citizenship it iowa as well. i remember bragging about it on "morning joe" saying, my kids go to school in iowa. we live here. >> what does that say to people back in connecticut? i mean that's what people were -- >> weeks ago, a perfect political storm for him he's trying to fight. >> insurance companies in hartford and pelosi's calling them villains and immoral. >> and now he's on the side saying he crosses progressive base, or does he -- >> cross the base and -- >> oh. john harwood, thank you so much. >> great to be here, as always. >> and coming up on "morning joe," a preview of "meet the press" with david gregory. plus the hangover from the brouhaha. who's hung over? >> chuck todd. >> chuck todd at the white

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>> they're beating up on insurance companies because they need a boogeyman, but it was the

insurance companies among the industries that came in and bought into obama's sort of brought principles in the first place. now they're going up against their own punitive allies. how does that work for them? then you see "the washington post" reports today on the fund-raising that the blue dog democrats have done, the 51 members of the blue dog democrats have gotten so much industry money as this week progresses. they are attacking the industry on one hand, and at the same time taking money from what -- >> pat buchanan? >> on this class warfare eschhe issue, tax the rich, bash the insurance companies. again it doesn't save you in the middle. those independents and moderate republicans that voted for barack obama that are moving away. >> i don't think it does. you mentioned, what? 70% of people got their own, very happy with it and a lot of them have these insurance companies and say, why are they attacking the insurance

companies and what are they going to replace them with? some big government idea? i don't know that this approach really works from any angle. calling them villains and ill immoral and sounds a bit panicky. >> panic at the white house? >> i do think obviously they want to get something out of this, but you know, i have to say, in tough economic times you know, beating up on wall street was pretty good politics. so don't -- sometimes this populace rhetoric, as pat knows, does work. >> what are you trying to say? >> you did win the new hampshire primary. >> it did work in '69. worked like a charm! >> it does work sometimes, joe. i guess, and of all neem knows the benefit of this, it's pat. but i want to say this, again, on the insurance companies. i talked to one person close to this fight who said, look, if you look at the fight with the health care industry over time, when the insurance industry has a gun to their head, they magically start lowering rates.

so you know who might be secretly happy about all the tough talk on the insurance company, business. because business, who are the ones also spending money, paying the insurance industry for health care, they want to see the prices lowered. don't forget, everything about health insurance reform, if this happens, the biggest beneficiary here may not be the voter which may be why there's some people upset about it. it's actually going to be business. >> you know what, though, interesting, chuck, is that politicians hate insurance companies. businesses, like you said, ate of them hate insurance companies. doctors, whf i talk for doctors running for office, all they wanted to talk about, how much they hated insurance companies opinion hospital administrators hate insurance companies. everybody hates insurance companies except for those people insured by insurance companies. about 70% are okay with it. you know, though, if populism does work and i argue in the long run it doesn't, if populism doesn't work, actually, there's

always a backup. the wink. let me show you as we go to break. what -- what works here. >> now, let's watch. oh, there it is. yeah, baby. >> sarah palin -- you betcha! >> all right. coming up, crazy is as crazy does. we unleash lawrence o'donnell, and, warning, children, he's not on his meds. we'll be back on "morning joe." we know why we're here.

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all right. i am, have not seen that movie, but everybody that's seen it, nobody on the set, i'm sure,

says it is a very good movie. >> the first movie i've seen in ten years. >> no. moderator of "meet the press," david gregory in new york. political an lift and crazy at best. look at those eyes. look at those eyes. >> i know. >> lawrence o'donnell -- when he's not winking. let's go to david gregory first. you have larry sommers, another harvard larry. coming up this weekend. >> nothing to talk about, really. >> nothing to talk about. >> nothing to talk about at all. >> i think everybody wants a sense of where the economy is. i spoke to someone recently, let's not forget about what the economy is based on. it's base and housing and jobs. your house and your job. that's still the biggest challenge is, where are jobs? are they being replaced? even if there are signs ever the recovery, the president talked about at the beginning of the end the recession. what'sing that going to mean for people actually looking for work or stopped looking for work, working part time, but want to work full time again?

a very real issue. >> look at the new nbc news/"wall street journal" poll, everything that larry sommers touched, a guy i like from afar, the president's upside down on the stimulus package. more americans think it's a bad idea than a good idea. the economic recovery. even the president's economic policies. they're still blaming george bush for these deficit problems but more americans believe president obama's hurt the economy than helped the economy. >> interesting, is that we've seen for months now this fundamental debate about what americans want government to be doing. what role do they want government play in the economy, in something as important as our health care and there's a real debate about that. one thing. the second piece is that presidents remain popular when they achieve things do things, but it's the process of getting there that's never so fun. i was looking at, andrea remembers as well, in recent polls, compare where the president is in terms of health

care. it's about where bill clinton was back in 1993. i talked to secretary clinton last week, and in researching that went back to her memoir. she writes back, reflecting on the experience of '93, people were afraid of losing something. of losing their existing benefits. exactly what it is now. >> it is the same thing. we've had the same parade. everybody gets in the middle of the street, marches down, this is a great idea. this is a 9010 issue, and once you get out there you find out that it's hard to drag middle america with you. and so what is -- i guess, the bigger were is, because trying to turn the economy around seems to be the top priority for americans in the new nbc news/"wall street journal" poll. where does larry sommers go now? a second stimulus package that americans don't want? i mean, americans don't want the deficits to get higher, but they want the economy to turn around. i. think they're relying on a great deal of patience, from the public. that they're going to be able to

weather the fact that there's going to be, you know, continued loss of jobs, and that people are not going to get back to work on a reasonable time frame, and hope once they get the spending from the stimulus kicking in by next year, that it has a real impact, but there's a long way to go. >> lawrence o'donnell, i believe perhaps the most insightful quote of the year when you said socialism is hard. you know what else is hard? and i'm deadly serious here. reading these polls and trying to figure out where the american people want you to go. americans in all of this, in spite of the recent polls, say they want the deficit cut, but then you look at a "new york times" poll, will you cut services? or allow your taxes to be increased to cut that deficit? and they say, no. >> they're like ronald reagan. you know, used to go into reagan and present him with conceivable budget cuts and he couldn't go along with any them, because they were all, always a political down side to any one of them, and so i don't think

these polls are difficult to read. it's when you ask them the easy question, they'll go this way. when you inject reality into it, they will go another way. >> hmm. >> you ask them, for health care reform, they're always going to say yes. free air conditions, they'll say yes. if you then say, this is how much preair conditioning costs in texas for a year, they'll go, oh, well, sorry. let's not do that. so you just -- you have to be able in these polls to read where the reality comes in, and you've got to be able to predict that that reality is going to enter the debate at some point. reality has swamped the debate on health care, exactly the way it did at this point in 1994. in fact, in fact, at this point in 1994, you know, the president and others have been fond of saying, we are ahead of where we were last time around. now officially we are not. the senate finance committee declared it will not have a bill before the august recess. last time around, it did. in fact, that bill went out on to the senate floor before the

august recess. where it got killed immediately. but they are, in fact, now behind legislatively where they were at this point in '94. same thing with henry waxman's -- his committee never got a bill out, run by john dingle at the time. never got a bill out in '94. now they still might not get a bill out. >> andrea, wrestling with this while you look at all the polls. people care about jobs, jobs, the economy and spending on some of these. >> that's why in north carolina you heard the president talking about defending jobs and the stimulus plan, exactly what david will talk about on "meet the press" with larry sommers. they are seeing the same polls. polls are telling them people are worried about jobs, number weren't, an you've got 47% ever the people in our nbc news/"wall street journal" poll who have health insurers who don't like what the president's doing. the problem he's got is that people -- 47% of the people who've got coverage don't want change. they don't like what they're hearing.

now, they may not know what's good for them, the problem is that he always knew he was going to have to persuade people with insurance. that's the largest number. not the people without insurance for expanded coverage. tlav got a real problem. one person for lawrence is, they may be behind in calendar to what we saw back in 1993, 1994. the differences they would argue were taking the time. what max baucus would say. we're taking the time. when we get something we want something that actually will pass, unlike before. >> lawrence, they were trying to rush this before the august recess, and they were frantic just a week ago and told us, we're still going to make the deadline. >> it's disagreements that take time. i've been in the room where they're having secret meets, senate committees hearings, in the white house with president clinton and the reason those meetings take a long time is that there's very serious disagreement and they can't get to that legislative spot where

the chairman can come out way so-called chairman's mark and you can have a vote on it. they all know the policies and have been through it. max baucus has been through this, and kent conrad, most of the senators on finance, through it in '94. they know the iran uissues. they tonight have to be schooled on them. in '94 they did. now they don't. they are stuck with fundamental philosophical disagreement how to deal with this bill. >> between these people, peritarianing to health care, i still think, david, something you'll pick up with larry sommers, wondering how this stimulus package ultimately is going to make their worlds better, and there's been a lot of conflicting reports whether it's really working. whether the money's going to be right place. whether it will ultimately help fix a problem which was the promise, was it nots? >> to create jobs. >> to create jobs. >> that's the measurement. and you've got people saying that there's frankly not enough

stimulus. they've misread the economy, as vice president biden said, and that's just going to be the fundamental issue. i think aft people are looking at washington and they say, you know, high speed, high octane moving forward, people don't necessarily like to watch that process go forward, and people are scared about what government will do. this is an interesting point i think for lawrence and pat buchanan as well, something like health care, it's such a different issue, because people are fundamentally scared about gft managing in a big way these programs. now, the flip side of that, they're okay with them managing medicare an social security and don't want them to mess with it. you do have a decrease of a new entitlement that gets people very worried. >> in the peter hart focus group we were talking about the other day, people by large numbers said that they don't like the idea of the president moving so

quickly. not the gridlock they're concerned about, that taking on health care in six months is too fast, too soon. >> the president sees numbers dropping from 69% approval rating down to 53%. the president obviously feels that haste is in order. >> well, the campaign is not working, but fear of the unknown is now overcoming the promise of the unknown. let me ask lawrence, though. lawrence, john harwood said basically that the correlation of forces, i know the calendar is behind, but the correlation of forces now with business behind this. >> right. >> is so strong, that they're going to come down with something this time, and they're not going to walk away with nothing. they're not going to get the great big package. is that right? >> that's a mirage. the support on health care is always a mirage, including businesses in the different sectors, because what they're in favor of right now is nothing. there's no bill that these support groups are specifically in favor of.

when you get it down to the thing that we're actually going to vote yes or no on, most of that support disappears, because what happens to them is they've lost their item, as we move through the process. the unions will oppose, certain people will open pose the bill as soon as it take as turn away from what they want. same thing with business, and it is going to. as this thing progresses it can only lose support. >> that's what you're saying, so -- >> the reason, they know the longer in leave it out there, the more opposition it attracts and the more support you lose. >> right. >> yep, sure. >> remember the, i think the '81 olympics, riddick bo here, boxing, a washington guy, and saying in the middle of it, said, bo has spasms of lucidity, and as i sit here listening to the insight lawrence o'donnell gives, i realize even those he's

crazy, he has spasms of lucidity and yesterday said something that i think explains what every new president learns, and that is, when you get to the white house, the first six months, you think you can order senators and congressmen. thinking about this, lawrence talking about, the guys that have been through this before. yesterday lawrence told us that the white house now, when they talk to a senator, they're beggars. please, help us. this is -- this happens, though, with every white house. they come in, there's a level of arrogance, david gregory, and then they learn they are in a horrible position. >> that's true, but then also look what's compounding the problem with president obama. that he's asking and demanding on four, five different areas at once. the president bush, when he came in he got the tax cuts through. the big deal, big campaign promise. >> how did that work out for him? >> well, but he got it. you know? >> harry truman -- harry truman said when he headed tout

missouri, old ike's going to go into that office and give orders like he did in the military and this and that will happen. ain't nothing going to happen. and ike's going to wake up and find out this is not, this is different than the military. he's exactly right. >> you found that to be the case. >> sure. >> reagan, bringing people over. >> working it up, but all of these cuts and the democrats said, fine. let's have a vote on reagan's budget. it went down 88-12 in the senate. that takes care of the cuts. let's get real. >> reagan, don't forget, ended up in '84 going to a boston pub and having a pint, a photo op to shoppe he was a man of the people. he had a beer. >> joe, can i have one more -- >> health care, just one more. >> why not? >> that is that when you talk about support, there are things that republicans, both republicans and democrats and the house and senate support right now in this bill, that

they will not support in september. for example, a tremendous amount of heat on public options. everyone knows about that an everyone opposed to it has their talking points down. in these bills is an employer mandate and individual mandate. no heat on those pieces. when the heat comes out on those pieces, senators who are for it now will desert it in september. same with house members. >> been through it before, and he understands. by the way, can we get, lawrence on the -- >> amen. >> what i noticed, in a.c., you really can see the crazy in those beautiful blue eyes. lawrence, stay around. you can catch david gregory on nbc's "meet the press" this sunday. check local listings for time. again, larry sommers and, my god that is going -- you got him what? 30 minutes? that's going to be a great show. >> david, thank you very much. coming up, the auto week in review. we're going to talk to -- no,

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for all. >> larry to the front register, please. would larry please come to the front register? >> you would think they would turn that off when the president was in the grocery store. >> how important could that be? >> yeah. and with us is sam tanenhaus. great to see you again. >> good thing you don't have a tie. >> i take my lead from chairman joe scarborough. >> and dan sylva came on set last week and gave us all ties. he -- >> he even gave me one. >> i am wearing a tie today in honor of his book. going numb one. >> going numb one, and that's

not the first time for him. he really has got a following. >> yeah, he does. what are you looking at with the book in review. >> let's review it quickly. there is a book called "reflections" about the huge muslim population there. we don't think of europe having a history of different groups coming together and forming a single identity. instead of you have 15 million muslims in europe, and some of them are as radical as the lands they left behind. it's a smartly reported argued book that will be a real interest, i think. >> and john harwood looks at an

interesting paradox. he takes his very biggest legislative program that you have been talking about all morning, health care, and turns it over to congress. but congress is the home of the lobbyist. every single committee will be attacked like a parona, like lobbyists. >> what do you think about the lobbyist? >> they will try to do it in a way that the lobbyists won't catch it, and you try to move it fast so the lobbyists don't catch it until it's already passed. >> but they will catch up? >> yes, they will catch up.

they are pretty fast. >> well, and people get out of wood and then crime rises. it's sinking, though, in some places? >> why? >> nobody knows. >> well, it's the first time that both willie and i have been employed during a recession, and that has cut the crime rate in both, new york and los angeles. >> yeah, they have me in at 3:30 in the afternoomorning and off streets. sam, thank you so much. >> can you stick around for a minute? >> sure. >> good. joe and mika? >> >> hey, you did so well. i am impressed with all that you do. >> coming up, i will say the latest new show ever, andrea

mitchell at 1:00. >> what is in my ear. pulitzer prize winner, eugene robinson -- >> what in the world? -d-d-d-d-dd

well can come welcome back to "morning joe." >> that picture tells me where

my body clock is right now, which is 5:00 a.m. >> let me lift your spirits as we go to las vegas. there where we should be right now, at all times. and then, washington, d.c. and now where we are right now, new york. welcome back inside "morning joe." we have sam tanenhaus, and joe and mika, good morning, you guys. if we look on the story on the increase in crime. a lot of it has to do with mike

barnicle walking around central park every day. and women in manhattan, stay inside on foggy days like today when mike barnicle is in the city. >> i learned the hard way. >> only you can prevent crime. >> good morning, everybody. eugene robinson is here. so great to see you. pat buchanan along for the ride today. >> had a little blue moon this morning. >> great. >> and last night on "hardball" we had blue moon. >> well, it's an elite beer.

>> yeah, i am glad that we cleared that out. >> before you start news. big news in florida, the sunshine state. big river. musical. pensacola, andrew is going to have his big play. >> good, good. now, as we start news, the race tensions have cooled off as obama was joined by professor gates, and sergeant crowley. and joe biden joined them. no apologizes, though.

>> the whole country should move beyond this and use this as a basis disturbance it's a meaningful discussion in the future. >> professor gates says this. a governor program that trades money for gas-guzling cars surpassed its $1 billion budget in a week. officials are working to keep the rebate plan up and running. >> and as pat says, it looked like a program that actually worked. >> yeah, it did. >> well, this is one of those things that gets money immediately in the peoples' hands. >> yeah, and it got them to buy cars. >> yeah, it helped the car industry. >> let's shut it down. >> yeah, what you do is put it

on your tax return, and you don't have to get beaurocrats involved. you have an impact in terms of saving jobs. >> well, here is a great example. you set a program out like this, and you don't get a lot of beaurocrats involved, and you let people make choices, and they go out and buy cars, and instead of having the government take over general motors, you revive it this way. this sort of direct infusion throu through the economy, it works. and a story shows high

ranching-bush administration officials, including karl rove, had a bigger role in the fireings of the attorneys than first thought. witnesses say police forces clashed with protegsers at a memorial for victims of post-election violence in iran on thursday. the new wave of unrest erupted. a senior military advisor in baghdad says it's time for the u.s. to quote victory and go home. the iraqi military is ready to handle potential threats. several top ceos are reaching for their wallets after last month's visit to the white house. administration staffers billed

them for the cost of the bill after collecting their credit card numbers. the white house says it was a way to avoid conflicts of interest. >> let's get -- >> you are going to pay for the coffee. can i have your credit card number. >> no, but i will serve you coffee, and bring the coffee next time. how did the gates issue turn out? >> like one would have expected. you don't solve 400 years of struggle and conflict over race with one beer -- how many beers did they have? do we know? probably no more than two. if the conversation ever flagged, joe biden was there and that would take care of any awkward silences. from the president's point of view, i think he would have to consider the success. krouly came out and said let's

put it all behind us. nobody was going to apologize. as you know, everybody says you talk about the story too much, and you talked about it too much, and we can stop talking about it probably, but i like talking about this story, because this is the way -- we don't sit down in a classroom and have an organized discussion about race in america. we don't do that, and we are not going to do that. what happens is an episode comes up and we bring to it our own experience of race and feelings and prejudices, and this is up with of those incidents and we did not have a tragedy attached to it. nobody got hurt. >> yeah, nobody died or got hurt. yeah, it was not like l.a. in the 1990s, or new york city in the 1980s. >> exactly. >> lawrence o'donnell, just a

political impact, i wander how president obama fairs in the long run? i was talking to a democrat in boston yesterday, a progressive, a kennedy voter, somebody that always voted for democrats, and he was outraged. of course, boston has its own history of racial problems. that's what bill russel said, i did not play for the city of boston, but i played for the celtics. and is this a problem for the president in the long run? >> i bet that guy voted for obama's re-election. if he voted for him already. and crowley did not. and one of the first line out of crowley's mouth was i did not vote for him. and that person will never vote for him. obama is a very likeable guy, as

we all know. he got a punctuation point with the news media, and saying okay it's over. and crowley got a temporary punctuation point. the arrest did not meet a single definition of disorderly conduct in massachusetts. the tapes -- as his union promised us falsely, no sound of gates on the tape. and there is a blue ribbon panel investigation of exactly what crowley did in cambridge. that will come out, and i don't think that will come out in k u crowley's favor. >> and you are reading something

in the post? >> well, the approval among whites tumbled after the news conference, and the focus turned to the situation about the arrest. what do you make of that? >> i think one thing that reflects is that, you know, african-americans and whites -- i will generalize here, so -- >> generalize away. >> we have different experiences of the police, and different attitudes about the police. i think that most whites in the country are led to believe the policeman is your friend and there to help you. where i grew up, and when i grew up, the police man was not my friend.

i knew that. now, do i want the police to come if i have a problem at my house, and of course, i will thank them and serve them starbucks or whatever. and there are different narratives that people have experienced growing up, like why would he give lip to the cop, and why would the president endorse that? i can understand a lot of people being confused by that and not understanding that, and it's the standpoint where african-americans, at least of a certain age, had difficulties growing up, and it's perfectly understandable. >> sam, your job is to summarize and chop up history in week

increments, are we going to be talking about this in a few weeks? >> well, suddenly they both sounded like politicians or professors. it's interesting what is an inflammatory and divisive topic is something people can talk about, and maybe the best place for that to begin is in the white house. it's a conversation we never heard with any other president, and it's a confirmation that this is the guy you want there if you are a supporter of barack obama, and if you were never going to vote for him, this reminds them of what you are suspicious of. mika mentions polls, and those fluctuate all the time. if there are going to be further investigations, i think one police in atlanta said they were

going to do that, there may be a positive out come. the last thing that i would add is we had a president that would actually say he made a mistake if he made a mistake. i think this reveals who barack obama is and the country's own complicated feelings about him. >> pat buchanan -- >> well, he has done it before. i like it. he said something or retracks it and says i'm sorry -- >> i am impathetic for anybody that has been arrested for disorderly conduct, joe. i think the president has been hurt in this since. the president won the african-american vote 24 to 1 nationwide. he won the hillary democrats

that were suspicious of him. and those folks saw a white cop, an irish cop that went in and was abused verbally, and then the president of the united states stepped in and said he acted stupidly, and then agreed this was racial profiling. i think there was a natural poll toward the irish cop -- i will credit the president, and i saw him at the beach, and he stepped out and said i messed it up, and i had bad terminology, and that's obama, i think, at his best. i think he reacted racially, not only supported a friend but an african-american friend, and what happened is middle class white folks, i think those folks, some of them peeled off,

and he has been hurt there. >> i think one thing that is we have not talked enough about is that this was not just black versus white. in cambridge. this was town versus gown. i am pretty sure that if some white punk, spoiled 20-year-old college student was shouting the same thing, the -- >> well, wait a minute, there are zero evidence that gates shouted anything. and pat buchanan has done the racial profiling exercise of automatically believing what a he calls the irish cop. we have no evidence that gates gave at all. >> all right. all right. >> and people have chosen to believe crowley over gates, and there is no reason to do that.

>> the police report looked different. the 911 message that was recorded and the witness on the phone call gives a different version of events from sergeant crowley. >> okay, pat? >> well, the cop was in there with crowley -- >> the african-american cop said he would not have made the arrest. >> come on, you guys, this is not cross fire. >> if i may, we don't know. we don't know what happened there. >> it's a political impact. we know that from polls. >> iraq, do you want to finish up, gene. >> that's fine. we said enough about it until we get a few more facts. let's talk about iraq now. t

they said it was time to get out. >> yeah, it will come at a cost. the conflict between kurds and arabs is getting worse and more intense. >> how long will that be our problem? >> should it ever have been our problem. i am with you? we have to get out. but that's going to look bad, and that's going to be -- i think that's a potential political problem, and it will be exploited by republicans if the administration -- >> wpat, let's give advice to democrats, if i were there, i would turn and say how long do you want americans to be stuck

in iraq? a year? another two years? i would call their bluff and at some point say enough is enough. if iraq dissolved into kchaos, e have done all that we can do. >> if they do pull these guys out and that thing comes crashing down in ruins come way, and we have the sunni fighting the shia, and the kurds fighting the shia, and the republicans will say petraeus saved iraq, and these guys lost iraq. >> and there is one other thing to consider, though, and this is why i am not sure this is going to happen preciptisly. you have iran, and it's in turmoil. mahmoud ahmadinejad is back in charge, and i think that

whatever your political stance is, you have to think twice about taking away a substantial u.s. presence across the gulf from iran. that is something of a counter balance. and so that's a powerful argument. >> we have to go. and lawrence, what do you tell the president regarding remark? does he listen to that colonel? >> yeah, he should follow the advice of pat buchanan all the way. he has never been right on anything else before in his life, so when it happens, it has to be noted for history. >> lightning has struck. >> you are just mean-spirited this morning. >> and coming up, we have the will week in review.

and then senator orrin hatch. the first no in the supreme court nominee, 30 years in the senate. i don't understand why. i will ask him. democratic infighting. we will talk about the problems within the party. you are watching "morning joe." hi, elijah. nothing beats walmart's unbeatable prices...

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it's going to end up rationing health care. chlt higher cost, bigger deficits, and less coverage. >> he uses our money to help people kill themselves.

>> put to death by government. >> i cannot stress in which needless death will be fall everybody, end quote. >> you are all going to die! >> okay. the democratic from maryland, elij elijah cummings. >> what are you going to do with the blue dogs? seriously, what are you going to do with those blue dogs? >> i am not so much worried about the blue dogs. we are a big party. what people are basically seeing is legislation being enacted. and the president says we are a lot further along than we have ever been. a lot of people are talking about us going out on recess and getting hammered. i had a town hall last week, and

once i had a chance to explain it, i am not saying everybody was happy, but they understood it better. >> do we still have crazy larry on the set? >> well, i am on the set. >> yeah, and 1995, as you know, we republicans tried to enact medical reform. we were trashed. and then i went back and i started to do the town hall meetings. that's all i talked about for about six months. in the end, not only did we sell the bill, but seniors 65 and over voted for us in larger chunks than in 1994. is there no possibility that the congressman is right that the democrats could sell it at town hall meetings? >> no, no model.

joe, what you are talking about. there are cuts that was basically sold as future solvency of medicare. you got to say to your audience, this is good for the system you are on. and what we simply do not have is a model of a large social program like this being of one by going out on the road and selling it to people. it failed for hillary clinton, and george bush on -- >> i like him, but i disagree with this. i want him to come with me and watch me in action when i talk to my constituents -- i go home every night, i live in baltimore, and talk to them about how they cannot get insurance because of preexisting conditions. small businesses cannot afford to give their people insurance. the fact is, i guarantee you, we are going to sell it and it will be strong.

>> yeah, your district is not a problem. but claire mccaskill cannot sell it. she can't do it. >> i will sell it? >> not in missouri, you are not. >> watch us. >> a lot of financial ties between some of the medical special interest groups, and the blue dogs. does that put more pressure on the blue dogs because it makes them look bought off by money interests? >> i would never say a member of congress is unduly influenced. but the blue dogs need to listen to what these insurance companies have been doing with regard to cutting people off. >> you just brought up insurance. >> nancy pelosi, saying the insurance companies are

carpet-bombing public opinion and immoral, she adds. >> well, nancy pelosi is my speaker, and i respect her. i do believe when you read the "washington post" article this morning, too much money is being spent. i think the blue dogs are going to put themselves in a position -- >> would you agree with nancy pelosi, are insurance companies immoral? >> i think what they are doing are immoral? >> i think they are bringing great harm to the american people -- >> are they immoral? do you agree with the speaker, are they immoral? >> i think there are instances where they act is an immoral way? >> what is the deal? >> are you a lawyer? >> good, lord! >> the insurance companies are reaping phenomenal benefits. people are literally dying, and

it's needlessly, and i think they could do better. many decisions are probably immoral. >> you go home to the constituents and they are being dropped off the insurance, and they don't have coverage and all of these other things. these hold out a tremendous promise for them. we are talking about the other side, the apprehension and fear on the part of people that got good health insurance, and would like to have folks say this and they say we are going to get taxed, and then we hear about the people at the end of the life, and we will get a visit from some guys? >> yeah, some of these things are lies. >> are you saying you won't have the grim reaper clause in this bill? >> no -- >> well, i have excellent health insurance with the "washington post," but our plan gets changed every year, and it gets changed

in a way that i have to pay more money for a little bit less service. and that happens every year. and everybody who still has -- >> we have 10 seconds. are the blue dogs unduly influenced by money? >> sure. >> the next question, do you think that nancy pelosi calling insurance companies immoral, do you think that was a wise political move? >> i do not. i think i would have phrased that differently. >> we worked together for a very long time on the senate committee. actually speaking of health care, we gave long-term health care benefits to long-term employees, and -- >> no, we did that. >> right here. and bill clinton said it was landmark legislation. we worked together. i of course had to fire all of my staff members to get it done, but we did it. coming up next, we have

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central park near new york city. in the other direction, down in wall street, we find cnbc's erin burnett. she is live at the new york stock exchange. >> the big headlines is a advanced look for second quarter economic growth. the economy got smaller by one quarter. and economists were looking for 1.5%. and the estimates coming in, and some were looking for a growth, and others were looking for them to get 2.9% smaller. wide range. and the big headline, our reporter from chicago pointed this out, consumption, in this number, 2/3 of the economy fell. so that is the other headline. the other big topic of

conversation will be purchasing managers' numbers. i know we are tight on time, cash for clunkers. if you take a step back, it's clear that consumers are willing with a rebate to come and spend money, and that might be a good sign, big picture. >> yeah, they should have done more of it. coming up, senator orrin hatch when "morning joe" continues.

we want a strong public option in the legislation, and insurance companies are out there in full force, carpet bombing shock and awe against a

public option. >> we have senator orrin hatch with us. nancy pelosi called insurance companies, quote, immoral, and also, what -- did she call them evil or what? villians. >> well, can you tell when they are in trouble, they start blaming everybody but themselves. we want to make sure people with preexisting ailments are taking care of than they are better than today. and 84% are americans are happy with insurance, and they are worried about having a new set of programs that will result in rationing and higher costs without any real savings, and without any real improvement in the health care system. >> senator, at the same time, though, we do have health care

crisis, and costs are exploding at such a higher rate, we have to make significant cuts, don't we? >> what are we going to do? we have $1.5 trillion in an already $2.5 trillion industry. we will bring in the government-run option plan to do the same thing with the private option with what they have done in medicare. it may go into bankruptcy by 2018. and yet we are still going to turn it over to the government for a public option? give me a break. the only way they can save money is to actually ration care. >> you know, i am sitting here, and i will have to turn it over to you, eugene, and i always try to play devil's advocate.

and i can't because i agree with him. >> is that eugene robinson? >> yeah. >> take him out on that now. >> gene, gene, how can you be so wrong on so many things? you are such a bright guy and bright writer? >> it takes enormous effort, senator. i am glad that you see that i am having limited success. one thing that you said at the beginning, you said 84% of americans -- we could quible about the figure, and you say they are happy with their insurance. how do you know they are happy with it? a lot of people spend a lot of time fighting with their insurance companies over coverage issues, and that to me or me would seem like no brainers that should be covered. the current system has preverse

incentives for doctors to order up more tests than are required. it's preverse incentives for insurance companies to try and deny procedures that are -- that may be medically necessary or indicated, and incentives for insurance companies to bounce people off their insurance rolls whenever, because it saves them money. doesn't that need to be fixed, senator? >> the polls show between 70 and 84% of the american people are satisfied with the insurance. gene, you have insurance and aren't you happy with it? you have a cadillac plan, i am sure. >> it costs me more every year. i am lucky enough to be able to afford those increases. but for people who are not

highly compensated, they have to make choices as to whether they are going to -- whether they are able to pay the higher deductib deductible, or the higher premium, or switch to a lesser plan that provides less of what they want or need. >> well, one of the problems -- >> so is that the way we want to ration health care? >> let me answer some of that. one of the problems that we have is that medicaid and medicare are going in trouble. medicare is going bankrupt. so we are going to turn over the rest of our health care to the federal government? and they also want to have a five-person committee, an independent medicare advisory counsel to set the terms of what has to be rationing. that's what the cbo says is the only way they will save money. and then they want to hammer us

with taxes to pay for all this. look -- >> senator, hatch, we are out of time, and everybody in utah knows friday has his week in review. tarry any longer. you want to get something in quickly. >> i want to get rationing care in there. some say they are going to ask you if you are at the end of the your life, maybe you ought to make decisions or something -- >> well, pat, let's be honest about it. call it rationing if you want. we cannot spend 30% -- 40% of health care costs on the last year of life. >> well, people like medicare. people appreciate medicare. up next, the will week in review. we'll be right back.

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when morning comes in the middle of the night... rooster crow. ...it affects your entire day. to get a good night's sleep, try 2-layer ambien cr. the first layer dissolves quickly to help you fall asleep. and unlike other sleep aids, a second dissolves slowly to help you stay asleep. en taking ambien cr, don't drive or operate machinery. sleepwalking, and eating or driving while not fully awake with memory loss for the event as well as

abnormal behaviors such as being more outgoing or aggressive than norm, confusion, agitation and halluciations may occur. don't take it with alcohol as it may increase these behaviors. allergic reactions such as shortness of breath, swelling of your tongue or throat may occur and in rare cases may be fatal. side effects may include next-day drowsiness, dizziness, and headache. in patients with depression, worsening of depression, including risk of suicide may occur. if you experience any of these behaviors or reactions contact your doctor immediately. wake up ready for your day-ask your healthcare provider for 2-layer ambien cr. it's time for the week in review, and where else would we begin but with sarah palin. >> some people are choosing not to hear why i have chosen a different course. and it should not be so obvious

to you. >> at number three, sarah palin says a bittersweet good-bye, or maybe just a bitter good-bye. >> our new governor has a very nice family, too, so leave his kids alone. >> when she was not issuing warnings to the press, palin was giving hunting lessons to hollywood. hollywood needs to know, we eat, therefore, we hunt. >> william shatner, he re-cre e re-created some things. >> while some mocked palin, others were sad to see her go. >> i love sarah palin. you have a former beauty queen and sportscaster who is in the role of dick cheney, and it's

m mez ma rising. number two, reality check. >> i want you to give me a hard time when we are 80 years old. >> just when a weary nation was in the mood for a good love story, along game bachelorette jillen. >> will marry me? >> absolutely. a new low on reality tv? you make the call. >> can i see your face now. >> good, lord, that's number. and then on tuesday, fox gave us more to love? >> do you know how to say kiss? do you want to show me?

>> almost makes you long for "temptation island." and then the discussion of the week. >> and there is a discussion about he and i and the professor having a beer here in the white house. >> never has there been such a anticipation of this meeting at the white house. >> there will not be a lot of buzz about the conversation. >> i am going to with bud. >> the beer summit begins in eight hours. >> after a week of fascinating beer analysis, professor gates, and sergeant james crowley finally sat down with a beer for obama. see, that was not so hard. the racial tension washed away with a simple swig of a beer. >> i think you had two gentlemen

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