capitol hill at a standstill when it comes to a healthcare reform plan...the hefty price we pay for health care...and how to find savings? plus, why it may be too early to tell whether or not the government's 800-billion dollar stimulus is actually working. and, the best places to live ....how everything from jobs to housing helps make for a boomstown during the recession...it's all ahead on this edition of first business. this new week in a very important because we mentioned on monday ahead of to stay is all about financial and technology our ranks as well as the strength of the consumer and whether or not inflation is going to be bring its get any time soon. if talk of talk these market movers a lot of people are looking for this week's retail sales numbers and if that is expected to come in slightly positive but is only a

fraction of 1% of its still expecting a sluggish consumer as well as an update on manufacturing sector hi, with industrial production number this point to be important to. inflation as well as we talk a lot about a lot of expectations for higher inflation but the question may not be when but rather if inflation is going to come anytime soon? while critics debate whether the 800 billion dollar economic stimulus plan is effective - some say the uproar may be the result of the obama administration creating false expectations... about just how quickly the money would be spent... experts say federal spending has always been very slow - and this time it's no different. while the debate is brewing over how much stimulus money has been spent... there's also a growing sense of frustation on the streets... "i've been unemployed for a year.. and there's little hope for any employment close to my career" as unemployment continues to

rise.. the number of people who are out of work for more than 27 weeks.. totals more than 4 million - a staggering 30% of unemployed workers. jeff engel is understandably frustrated... when he sees billions in government money spent on the economy and bailouts.. with no signs of improvement in his situation. "i've been destroyed.. lost most of my income, i'm holding on desperately to my property in the west loop... i see benefits and stimulus every place but where it's needed, the people." others are still hopeful that a positive impact will happen soon.. i'm being patient.. but i watch the news and i see people not being so patient.. i don't think it's a fast solution, don't think you can effectively spend $800 billion and have it happen a couple of months. the nearly 800 billion dollar

economic stimulus package was signed into law in february - so far - according to the goverment's website recovery.org - more than 29- thousand projects are now active... valued at 73 billion dollars. the fact that 10% has been allocated and half of that spent.. is what you'd expect 5 months after a bill has passed.. it was expected that spending would take place over 2 years.. but there's a need to do it now- it takes time to roll the money out. economists say it takes at least 6 months for shovel ready projects to get underway... because of the bidding process.... and the necessary engineering work - it may not be until october when we see the first signs that the stimulus money is working. i will be looking for increased hours worked and increasing employment in construction sector that will be the first indicator of money spent. and adolfo laurenti says he expects to see some firming in

economic indicators like retail sales.. and manufacturing activity over the summer. and both economists we spoke to say they believe we should be out of the recession this year - however, the pain will likely continue at least 1 year longer.... because of continued job losses. federal regulators have been going back and forth about whether or not to throw a lifeline to a key small business lender. c-i-t group is in jeopardy of not fulfilling its capital requirements as a bank. the f-d-i-c has rejected guaranteeing c-i-t debt, worried about its collateral. c-i-t already has gotten $2- point-3 billion in tarp money and the treasury department reportedly is looking for other ways to prop it up. c-i-t stock is at new lows. one small business source tells us businesses with credit lines an c-i-t should be very nervous. we've got the kind of coming up in a lot is on their calendars some wholesale inflation and retail sales and goldman sacks we have michael but no over at the cme group to% rally in the market on monday kenny keep

that did and what was behind it? there will low-volume yesterday's and a lack of traders and actually made the shorts to squeeze so we saw the big rally yesterday we knew that there was big orders decanted s&p futures in particular were buying combined early and often. just like chicago bulls and it was incredible there with the big orders that we haven't seen in a while police a low volume was low volume of about and that was there was the big orders it just wasn't a turn of date it was the big orders market rally a lot of down time big roller market rally. prices that you don't believe that this man has any staying power just like the others? it's really hard to believe with all of the inflation that should come out from the fundamentalist and was going on fundamentally in the market. traders are really thinking about the big resistance the other level in the s and p 909 even have this money that is really hitting

downtown can we catch a little bit of a rally yes but the spell tony says that the smart traders and parliament to lose our sense and these rallies those of the ones who have to sell low. michael but a chicago futures group at the cme group. still to come small u.s. cities that are thriving, despite the recession..we'll tell you where they are. but first... the high cost of healthcare reform and where to find the money. we'll talk to an expert after this in-the- know message.

with the tab on healthcare reform close to $1 trillion over a decade, it is becoming less likely congress can agree on a reform plan before the august recess, which had been the goal. opposition is building, even among democrats, with some of them pushing for a more efficient use of health care dollars before increasing spending. tony lo sassa is a health economist with the

institute of government and public affairs at the university of illinois with polio us with just a promise that this to the poor and public affairs at the university of illinois to see you. how real are the savings of deckhand be found in the current health care burden? not very real. frankly. if it were that easy it would have been done already. there are not through his dollars flying over on the table waiting to be picked up with. for his it's hard we have these to fundamentally oppositional notions of running to increase health resource coverage a lot to spend less. those tubes are at odds with each other. at the core is just the cost of delivering in using the care that contains to increase? is that the core of the issue? that is a critical component of it. that is being misconstrued to rise and have been doing so poor many decades and are doing so in other countries as well as a unique to the u. s p realistic look that almost one-half trillion dollars spent in health-care spending last year almost a fifth of the gross

domestic product in the yen stays four times more than defense and you're saying the saddle of deficiencies to be found in the system. who is hard to squeeze them out. has it takes a lot of effort to do so. there are some possibilities but those are pen points. those painful possibilities were which starts pushed mark by the big bang is probably on the very notion of health insurance coverage in this country i really think that we've lost sight of the notion of what insurance movie is and ensure this is for indemnification of catastrophic financial risks it's a rare event that is extremely costly. hit by lightning hit by a bus cancer these things happen very often there where they're unpredictable. but our use and for instance pregnancy's heart disease spokes' diabetes should be covered? i'm not saying that. as going too far but what

needs to be recognized more is that many of these very predictable events are covered in the current raging and we become quite used with an angry if they're not covered in annual physical that's entirely permit predictable by the nature of what is called an annual physical that's going to come up in the year these things are covered in the you have to pay a $10 copayment for the visit but i think there's a lot to be said for the idea of a higher deductible policy and a really creating incentives so people become their own health costs savings units. could look speaking of cost savings here according to reports from the kinsey of court a couple of years ago the u.s. spends about two times what are pure country do on health care and you can see how of more almost half a

trillion dollars more if but our life expectancy is slow responding mote more in the and less in at least to that program and that there's gonna be a way to spin more expert effectively? it's hard to find how we do a lot of things right in this country are health sector is our really second to none of the life expectancy is necessarily something that is very easily responsive to care. a look at cancer survival rates they are by far the u.s. does excellent on those types of measures. that's because we do for the most part of liver a lot of care hit early roll your and it pays off. final moments here do you is your sense that the private insurance market that we have had in this country employer delivery and shrines is broken? no i think for a long time it has suffered from the

relieved a subsidy that has distorted the market. the pre- tax contribution. the fact that the value of your insurance is entirely tax-free which is something on the table. we appreciated think so much. he is along with us he is with the institute of government and public affairs at the university of illinois. online items investors look forward to big bank earnings as they report 2nd quarter results... on our website - we talk to an analyst about what's expected. plus, why the cost of healthcare continues to rise even as more people lose their jobs and struggle to pay for the necessities...you can catch these stories and more on our website at first businessx.com. and straight ahead on the show... a look at some of america's best small cities...how they've managed to rise above the recession.

housing prices falling by 30 percent or more and rising unemployment rates aren't exactly the ingredients of a boomtown. while lots of cities are wrestling with a flood of foreclosures and businesses going bust, some small towns continue to defy the recession. beth fenner is assistant managing editor at money magazine, which is out with its "best places to live" issue this week.

it is nice to see you two years ago you were out with this list back in 2007 at the height of the housing but what has changed? kopp as you say just look around and most large drops have occurred but not everywhere but in a lot of places. california was very high on the list of of those towns have fallen a bit. florida we have a terrible housing problem there is a falling a bit from the top 100. the list is a microcosm of what's going on in the country. is that the main casualty in the differences between the list of best places to live two years ago and the list this year is housing prices and the destruction of value? is not just that more important is the economy and jobs will we do is we do a poll on our web site and we say what is the most important thing to you right now and choosing a place to live in used to be housing affordability and housing was so expensive now it's i won a place to work and support my family. there was much more important to

people in the years pass so we waited it more heavily in and analyze the data in things that matter a lot to people which is always important for safe streets the schools with a loss of things to do. we took all of this stuff and pressed together andthat are winners. what is the common thread among these best small small towns to live in is the job growth? its projected job growth is good and unemployment certainly in our top-10 is significantly less on the natural average which is a really scary note to people. when barber top three as a pavilion nebraska the on the plan and make their recently is about in the low forest porpoise and five maybe next so that is a huge difference on an upper one town which is it was built colorado's the unemployment rate is 6%. but they have a great job growth potential so they really help

put them up into the top slots there. hell of these towns doing holidays have been provided for job growth and how come the forecasting to be brighter in these areas as opposed to other areas in the country? it really depends of look at for example the number one again louis had chronicle philips bought a huge training center bear them will eventually employ some 1500 or even more employees so they gave a huge boost right there and you also will pull this in the top- 10 a lot of these places are in the northern midwest so we're talking minnesota and nebraska and wisconsin places that really didn't have those big bang but that the coast have so they just who chug along in their jobs there the population never boom and bust either so they just now is their time to shine because the four people in one town to stable nice place to

raise their families. your mother back insmall towns that were identified back in 2007 did they encourage population increase will work people looking to move dell in the you expect any kind of movement of the population because of this list? we haven't done a huge and analysis of double we have got letters from people saying i moved because you suggested and we really like it. that's always nice to see. because of people into a small town of you going to get to be because it puts a strain on the cost upsizes goal put a strain on the infrastructure and so forth so it's also great when the small town plans overnight. the assistant managing editor of money magazine and book the best places to live issue thanks beth. some technology heavyweight scheduled to report earnings this week including the global and and tell coming up in chart talk. we'll take a look at those stocks and overall text sector.

this could be the week that the technology sector relieve these the market because were expecting some pretty big earnings and below and until this week significant earnings due and the outlook obviously for the second half of the year in technology spending not necessarily on the consumer's standpoint but from a corporate standpoint a place in cycles tend to be key not only in an advertising global but also semiconductor blind until. local and global. you can see a recent days and lots of buyers coming in at about $400 level high and we saw a saw a slight uptick in volume of the bottom is less compared to about six months ago hidden still below

holding above the may lows and intel have not as strong a couple far as global only up about 12 percent compared to do with 30% year-to-date period will start this troubled land little bit you see the downward slope possible hit $450 a share for 25 is the last rally back and mid june peered out we'll see if it peer out again selling on the news with group members coming in as far as entellus concern 17 obviously has been some resistance 16 has been some support. let's take a look at the overall nasdaq 100 measured by the accused e t f you can see is still holding on to the may lows. that is a good sign for the accused pull the rest of the market looks like it may be faltering but the nasdaq and hundred is up about 20 percent sanjay repaired and gonna be difficult to rally without good will and without and tell us those two make more than 6 percent of the q's.

watchlist goldman sachs. the one time investment banking leader now is officially a bank but it made its name originally in the bond market. and while local, state and the federal government looking to raise massive amounts of money, some analysts have fingered it as well- positioned. in addition, many of those stress-tested banks wanting to raise capital by selling stock look to a goldman for guidance. goldman stock has been on a tear this year as it's expected to report this past quarter's net income was one of its best in years.