>> what do you think of when you see a te? treatment for cancer? alternative fuel for our cars? do you think of hope for the environment,ood, clothing, shelr? we do. weyerhaeuser, growing ideas. >> there's nothg that we would have done differently. >>this week, with unemployment approaching 10, republicans sense blood. >> there stimulus plan isn't rking. >> the vice-president claims health care form is on tck. >> we ha nev in my entire tenur in public life been

disclosed. >> the president tries to warm up relations withhe russians. >> president medvedev and i are committed to leaving bind the uspicion and relry of the past. congratulation >> mr. franken goes to washington and gov. palin leaves juneau. >> i don't know what the future holds. i will not shut any door. tba >> the nation's unemployment rate is currently at 9% and probably headed forouble digit. with the president of the country, vice president biden conceded the itial predictions that unemployment would peak at 8.5% were too optimistic. >> the truth is, we and everyone se must read the economy. >> this is the greatest abcation i have seen since 've been in congress.

>> the question w is, do we need second smulus? >> theirst in limbo was like taking half a tabl of viagra and also having can be mixe and. >> warren buffett,alf a tablet viaa -- like a metaphor. previn and obama says his and s advisers didot misad the econom as biden says, but it diday they h incomplete formation about how bad things were. nevertheless, he claims he wodn't have done anything differently even if the hav more informaon. the question , howong will the ters would until they begin to exact retribution? we already seeindependence ipping away and anohio poll shows a real slippe. is the president in hot water yet? >> i don't know i he is in hot water, but this recovery is going to be slow and it is going be in fits and starts. is a roller cster and are finitely in a dip right now,

no question. the white hous was slow to respond, republicans were very effective when the ne jobless numbers came out worsehan expected, and they jump on it and to advantage of and they gothe best of the white house this week, for sure. >> charles >> once it hits 10% that will bethe marker in the press and it will be thetory every day. the administration knowshat. but i think the president's me rise and- horizon is next november. he can take his dip now,ut as longs there is improvement late next year, he is ok. and i think that is the ti horizon for this adminiration -- tak a t w and try to time as best he can. it is always aicey prosition. buyou could get a rise at the end of next year. >> me now? >> there is always a lag time even if you have not had a real package.

that is essentially why grge bush the first lost the 1992 election. it eked -- the economy wa revering and he deedny credit, it recored really unr clinton. but this isuch an awful recession that it may be getting better by the 2010 election, but i think it is very questionable. i am sure obama thought about the likelood, but i certainly will lose seats in the next eltion. the qution is, how many? >> colbydo we need a second stimulus package? >> i don't kn why warren buffett would say that, although is the man who me the money. it seems like we have not fully distributedhe first package the money ha yet to really mo into the ecomy. i think fm that score, you waitntil you see what happens with this stimul package. there is early evidence that some hasade a differenc

already and ere is more to come. the president's hasuffered some sppage, asould be pected at this poin but theemocrats, the same poll shows that he even went ua point with demrats come up to 90%. >> but democrats are a daze and a stupor, what dyou expect? >> just to completehe sentence anyway, just a thoht. >>just giving you a footnote. >> i areciate the footnot i will have one for you, too, in due course. [laughter] duringhe bak, ok. >> b i think it isoo early to pronoced him in political trouble. >> here a n rk times coluist paulkrugman on friday -- what mr. obama needs t do is level with the amerin pele. he needs to admit he may not have done ough for the first y. what nds to do withconomic poli is what he is alreadyo with rac relations and foren

policy -- talk to americans like adults. >> he mado sothing like that. he did in the ginning. he said in the beginni it will only sl down what will inevitablbe ahrinking of the economy. ut memories are short and people had high expectations for the stimulus an and it didn't move fast enough. the idea of a second stimulus plant is simply a red herrg. it not going to happen. he will n ask for because he can't gett, it is a loser he got as much as a good the firs time. in additio what they are going to do of wthey say they e focused on is trying to get the infrastructure money out faster because righ now the mon that isut there is saving jobs not creating new one the infrastcture jobs are t ones tha could become new jobs. >> there is a lot o revisionm about what the administration had promise had said that it -- the stimulus would preve unemployment from rising above

8%, of course that did no happen. econdly, the president sd stimulus was so urgentthat it had be passed so quickly that he wouldn't even allow a 48-hour period where members of congress could ad the damn bill. now the administration saying it cepts so slowly, it a matter of months. if it was going to be tt slow, how comwe did hav a we and over whi the members -- >> the money came out in phases. there was ely money that went out. there was early mey that went t in taxes. and a second madeent o to state vernments. >> if that had not happened, looked at where weould be n. even worse she. >> you have to rember also e psychologyf e times. we were ia really bad she. the tomobile compani had not one into bankruptcy y. i think it was clear to a lot of pele they would. but he kne that all of this was coming at us like a huge wave

and he had t do sething to brk the cle. >> but itidn't have to be done so that you didn't allow members of congress a weekd to have a ok. inside the $trillion. there was so much waste d abuse. >> the republicans we looking for a reason t oppose him, found it. >> cdos said 11% of infrastructu would besent thisiscal year -- that's all. >> the presenteach out to -- reaches outo the russians and of global warming t the world's wealthie nations. >> we know it -- yot end up agreeing oneverything but we could add a tone of mutual espect and coultation that will serve both the american bible and the ruian people. the preside with vladimir putin. when it comes to foreign poli, th presidentill note confroational. america in the obama administraon will not go alone, that is not his style. ssinger calls in a chess player.

i think that is a complimen what did the preside achieved inoscow and later at the g-8, colby? >> in moscow he didn't achieve anmilestones. on the otrand, i think he said the relatiohip the way it should be with the russian leader. he did n com out ofmoscow and id he lookeinto the president's soul and eyes and saw s soul -- nothing loopy like that. heealt with the psident as a president. he dealt with putin as the prime minister. and put him in aecondary posion. knowinfull welthat the per is with tin. t agreeme theyreached arms omething that critics will say ey could have done anyay and don't lead to much. but that allowed him to take the measure of them and let th take the measure of him and up close andpersonal way. the g-8 summit, the did reach some agreement er the objections of the develing

countries, on imate change. no great milestones. on the oth hand, it was a st forward, and the disssions that wl have to have in the future. >> nuclear arm i think o of my favore cumnist used the word irrelevant. >> well, the preliminary agreement obama negotiated isn't rribly1. who cas how manyarheads the ssians have it just makes thelevel bance. but in order to come he waitinthis agreement,e made a hu concession because for e first time in auarter- centy that america would link defensivand offensive strategic arms. the recent b is a huge concession is because offensive arms are entirel irrelevant. defenseis where we have an enmous technological advantage. we can shoot down and sent -- icbm and the russians can't and we agrd explicitly in writi to a linkage whh reagan

resisted, bush d resisted, clinton had resisted and a cond bush resisted. we will rue the day because is e one thing in this century that will protect -- protes, denses. no way wwilleter a iranians and north koreansnd to give way is a bigistake. >> rule thday,ina? >> i like colb sa this one -- this is all about the shield. we have never really ne wl in our vw. the tests hav failed as well as succded. ithink it is always better -- always tught it was better as image than reality. >> no way to y he was looking forwarto come back wavg an agreement. at is a st characterization of what i thi it was after. i don't think there is an agreement that would in any way caused the unite states to minished capabilitiesf defending self or its allies. nothin wasone in russia that

would le to that, twithstanding what was said. >> political questio he didn't gethe response in ruia than he has had in other foreign capital. >> no, but that should be no surprise. they areary of the united ates, and it does not matter with the presiden is, they will be wary of that peon. this is a relationship that has be built. clinton met -- met putin and didn't like in the beginning and things and did cross the. bush loved and and the beginni and things and frosty. but this me, a little thing obama did. he had dinner wi medvedev and he was opposedevin of the ne that the putin but he id, no, i am spendinthe night with family. putin, an evening guy, had breakfast. in the picte, putin looks like of the guard. he has a little cup, los like somebody given t cut t look fancy buddy has bun in the ba. the news conrence friday,

the president id he thinks health care is on tck. things he will have something by the august recess. will it be anything tangible, substantial >> i think by theugust recess is pretty optimistic. i think i this -- the senate in particular it is in a hard place because they are tryg to write a bill that ll draw some publican votes. that is hard busess. that way to finance that that fell apart. after fine neways. they have to have a determination to put out bills. have not seen wavering that this will -- >>arry waxman said he will t bebouthat any white house agreement. >> hlth care is a littleike the human bac it h so many human moving parts. >> we could do a wh show on bad backs.

with allf these competing interests, what will this sausage look like? >> a few broad outnes. the kething is how to get re ople insured. will there be government pgram or will there be coops? e senate right now talki about fst a co op system that will be private, with a trigger to setp a public programf it doesn't work. the house doesn't like that at all,t will go with a overnment plan. all will be hashed out in a conference commtee this fl. but bideis righ-- they are magnus close ithey could fire out the money- they are, like,this close, and they can figureut of money. >> obama leaving this to ngress, because he coun't impose his will but a some point he will ha to get people the room to knock heads togeer.

there is too much falling in the cracks. >> how will he p for this? >> that whahe talked about his press conference on friday. the ne toontrol cos is an importt part of thi endear, tryingo make a budget utral. it is a tough pt,ringing in somethin under $1 triion is a tough thing. joe bidens right about this -- probably as close as we have ever been inetting major alth care legislation enacted since lyndon johnson. wod be perfect? by no means. but nstitution wasn't perfec we have had several amendments. the social security ac has changed many, many times sinc been put o the books. thisill happen in health care, too. but thfact is you have maj players interested in doing something. obama sai he t the paramers and has s staff worng face

to-fa with members o congress. i don't see m n being engag. i see him and engagedn a way that is productive. >>there is no free nch in washington. >> of this is a very expensive lunch. cbo said $1.60 trillion. and the central contradiction but on the one hanhe wants to expand covage. that costs more. on the oth hand he tells us over and er ain thathe big reat to our fiscal health and a future and to our economy is the posure of health ca costs. this is not a solutio this would make it worse. >> how can you say it mas it worswhen you ven't seen the bill? it ha't been done. >> cbo already scored the fit atmpts. a prosal. not the act. >> ok. $390 billion msing here. there are a lot of opons -- >> sounds like bernie madoff.

$39 billi a year ty have to ce up with. in these days, chump change. but things on the table -- max baucus was talking about taxing very wealthy benefits. that seemso be off e tle and th another option that they discussed is going backo ama's proposal, which is to limit charitableeductions for people who me more than $2,000. so everything is ba on the table to fill the gap. >> at the same time, we have the sotomayor hearingstarting next week. reblicans still have not agreed to let the hrings go on the afternoon when the senate is doing business, and it is not ear how obstructionist they are going to be and whetherhey will pay a penalty of they are. i am not sure they figureit out, eithe this is not a three-rin circus

in washiton this summer, this is a 1ring circu we've got supreme court coirmation, health care, climate bill, we've t all this stuff on foreign policy. >> all right. senator al franken, if y delays, and soon-to-be former gov. sarah palin >> it would be apathetic to just hunker down and go with buflo. only dead fi go with the flow. >> alaska g. sarah palin decided the best way for bir to serve the state that e loves is to resign orffice. >> i cannot stand here as your goveor and allow the millis of dollars and all the time go waste so i and allthe title of goveor. >> in other words, you can take this job andhove it. befor wetart on sarah palin, whseems to inspire great devotion or bile in equal msure, let us look at the governor throh a different lens -- her uniqueness. you are in an airplane,t crass in a wildeess, you, nancy pelosi, and the goveor

of alaska rvive. who would you ust more to build a fire to keep you warm, attract some game to be you and leave you back t civilization- nancy pelosi an sert -- or rah pali? >> and bring home a fish to eat. >> itakes a better dead. >> i bet she could eat one live, thats how goodhe is. she is a very great talenbut shes unprepared anif she left office becaus of the he in the kitchen, the attacks on her andtri that is understandable andeasonable. she had a calculation that this would sehow help publicly galatia's i never nd. it coulde the end of for career. america has seconds acts in politics,ike nixon, bushe imagineshe could be like a reagan in theorld and is in the970's, a leader who gathers strength and becomes predent, she has to be like reagan -- a rious man who speaks and

thing and rigs seously and ads and learns. if she dsn't, she will not leavenything. >> have already seen palin 2010 bumper stickers. >> they mayecome collector's items foall wrong reasons for thegovernor. igree with charles i think that in quittingwhen she did, she lost the opportunity to build a portfolio on poly and a series issues that would fill the hole that ters had abo hen the last campaign. think in a way which she has done is embced the celebrity si of sarahpalin, which is very lucrati and very vacuous and i don't think thais a path to the presidency. >> if you look at her history, a history ofhe ry hard- working, veryattractive dilettante. she never stays and any job -- t mayor, not the bigondition she s appointed t head,nd now not governor. i thin you are right. think she embred t

celebritside and is not willing to put in a hard intellectual work. >> colby, is mark shies were here, i think he wod remind us thathere are a awful lot of working people out there w don't cabout her torred syntax but would identi with this ige that you saw of the person knows what hard work is. >> i thinke would probably say that d i would surelsay that. i am not sure i agree. first of all, i don't undersnd sarah paliwhen she lks, she loseme. butthat doesn't matter, because she has a nber of pple who do understand her and she has core of followers. she helped energize that pty's ba in the last election. what does itean that she steps away? you he governors like th governor o virginia and texas asking them to campaign -- she will be able to do at on behalf of lot of republicans from a country er the last cu -- nextouple of years. she is going to walk into 12

with some people o are really going to want to over something. then she went? i am not sure. but to say that she will be a loser isremature. >> and e is goingto me a lot of money. >> not campaigning, she's not. >> but sheas aook coming out. >>peeches, shided televisi, it is very crative. he path she has osen a defitely that. >> i'm oking for a bumper stickepin sanford, 2012. i want tket that is completely out to lunch. the imagine how theussian would act. they wouldn't move an inch -- they woulde scared to death of these smaller did. >>how frank and sworn in this week. my question is, ise going to leave his comic talents at the door? it woulde ahame. it nds livening up. >>on a show ofhe other week i mentioned that i thought he wouldarry somof the old al franken wi h, and i heard

from a listener who reallyook me to task, pointingut that he is a harvard graduate, cloudy, and a lot more lot cum laude. and was alogore and so was parobertson -- i did not want to sayhat to my listeners. we need all we could get. >> i still thinke need a few laughs. >> he probably will not give it to us a list of fund. >>former defense secretary robert mcnamara di last week. our fire power of adntage is immse. y shouldn't we expect to achieve a military advantage? >> robt mcnamara secretary of defense under presidt kennedy and johnson directed american partipation in the war in vietnam. actually he was right abouthe advantage. fact, the u.s. prevailed in every major battle. our arican soldiers, marines, herrmann, won the battleut the

united statelost the war. he later sd we were wron terribly wrg, and we owe it to future generationso explain. you worked for him at the world bank >> i worked th him, u.s. representative on the bodnd he was the presidentt the time and i saw a lot of him almost every day. i think in some wayso try to compensate for whate did as secretary of defense. not sure he'd she did. bute brought his considerable energy and talent. driving the institution and the world to increase assistancto the poor. china would not be whe it is toda as a world power were it not forhe world bank bringing its into the economic family nations encouraging development. robert mcnamararove the decision did i was there to try to slow down aa matter of fact, but i think he was rht and i s wrong but i did it on behalf of the u.s. government.

ut his lecy is not goi to be the wld bank. hilegacy is going to be in vinam. and it was te forhim to have said it was wrong, but h was part of the wrong. >> was a tragic figure, chles? >> in many ways. it is interestg colby remembs his tenure at the world bank becse most people don't. i he a different take. i think everything he touched one wrong. at the world bank he had this idea of huge influx of capil into theoor countries, in tanzania, adopted as one country, it's completely ruined the countryside and the agriculture cause it favored the urban areas to the poi of wh the farmers in tzania plaed the crops upside-down as way -- >> that is a fal ads have been used before by people on t ight, and it is false. nzania had the highest literacy rate because of the world bank and educional sector and the sry that was passed

on is just false. >>et meust turn to the subject vietnam, which is the b subjects with robert namara. om a human point of view,o see somebody who was so intimately involved in this disastrous war ler become the architect of sing we were wrong about it is an extraordinary thing. >> well, as mu as it tried to recovered, t bitterness he left behind is intense and werful pull for people who served invietnam. >> thank you very much. see u next week. for a transcript, loonto iidewashington.tv.