what do you think of when you see aree? treatment for cancer? alternative fuel for our cars? do y think of hope for the environmen food, clothing, shter? we do. weyerhaeuser, growing ideas. >> there's noing that we would have done differently. >> this week, with unemployment approaching %, republicans sense blood. >> there stimulu plan isn't working. >>of the vice-president claims health care reform is onrack. >> we ve ner in my entire tene in public life been disclosed.

>> the president tries to warm upelations with theussians. >> presidentedvedev and i are committed to leaving behinthe suspicion andevelry of the past. >> congratulatis. >> mr. franken goes to washington and gov. palin leave juneau. >> i don't know what th future holds. i will not shut any door. tba the nation's unemployment rate is currently at.5% and probably headed f double digi with the president of th country, vice presiden bid conceded thenitial predictions that unemploymen would peak at 8.5% were too optimistic. >> the truth is, we a everyon else must read the economy. >> this is the greatest dication i have seen since i've been in congress. >> the questionow is, do we needa secondtimulus?

>> t first in limbo was like taking half a taet of viagra and also having can be mid and. >> warren buffet half a tablet of vgra -- like a metaphor. previn and obama says his and his advisers did not mlead the econy, as biden says, but it did say theyad incomplete information about how bad things were. nevertheless, he claims he uldn't have done anything differently even if the he more infortion. the questiois, how long will thvoters would until they begin to exact retribution? we already see independence slipping away and an oh poll ows a real slippage. is the president in hot water yet? >> i don't know if he is in hot water, but this recovery is going to be sw and it isoing to be in fits and starts. itis a roller coast and are defitely in a dip right now, no question. the white house was slow to

respond, republicans were very efctive when the new jobless mbers came out worse tha excted, and they jump on i and took advantage oit and they g the best of the white house this week, for sure >> charl? >> once it hits 1, that will be the marker in the press and it will be the story every day. the administration knows that. but i think the president'time rise a -- horizon is next november. he can take his dip now, but as lo as there is improvement late next year, he is ok. and i think that is the me horizon for this admistration -- te hitnow and try to time as best he can. it islways a dic proposion. but yocould get a rise at the end of next year. >> me now? >>here is always a lag time even if you have not had a real package. that is essentially why georg

bush the first lost the 1992 ection. it reek -- the economy was recoveng and he denied any credit, it recoverereally under inton. but this i suc an awful recession that it may be getting better by the 2010 election, but i think its very questionable. i am sure obama thought about the likelihoo, but it certainly will lose seats in the xt electi. the question is, how many? >> col, do we need a second stimulus package? >> i don't ow why warren buffett would sa that, although he is the man whoade the money. it seems like we have not fully distributed the first packa. the money s yet to really ve into the enomy. i thinkrom that score, you wait until you see what happens with this stimus package. there is early evidence that some h made a differee already anthere is more to come.

the presiden's h suffered somelippage, would be expected at this pot. but the democrats, the same poll shows that he even went up a pointith democra come up to 90%. >> but democrats arin a daz and a stupor, whato you expect >> just to complete theentence -- anyway, just a thought >> just giving you a footnote. >> ippreciate the footne. i will have one for you, too, in due course. [laughter] >> during the break ok. >>ut i think it too early to prounced him in political trouble. >> heris aewyork times comnist paul krugman on friday -- what mr. obama needso do is level with the amecan ople. he needs to admit he may not have donenough for the fir try. whateeds to do wi economic pocy is what he is already do with re relations and foign policy - talk to america like

adults. >> he y do mething like that. he did in thbeginning. he said in the beginng it will only ow down what will inevitay be a shrinking of the economy. but memories are short and peop had high expectatio for the stimulusplan and it didn't move fast enough. the idea of a second stimulus plant is simply a red heing. iis not going to happen. he willot ask for because he can't g it, it is a los. he got as much as a good the fit time. in additn, what they are goi to do ofhat they say theare focused is trying to get the infrastructure money out faster because rit now the mey that out there is savin jo, not creating new os. the infraructure jobs arehe ones tt could become new jobs. >> there is a lotf revisiism about what the administration had promid. it had said tha it -- the stimulus would prent unemployment from rising above 8%, of course that d t

happen. secondly, the presidentaid stimulus w so urgent that it had en passed so quickly that he wouldn' even allow a 48-hour period whe members of congress coulread the damn bill. now the administration saying it accepts so slowly, itis a matt of month if it was going to behat slow, how ce we did he a ek and over wch the members -- >> the money came ou in phase there wasarly money that went out. there was earlyoney that went out in taxe and a second ma wentut to statgovernments. >> if th had not happened, looked at where would be now. even worse shape. >>ou have to rememb also the psychology of the mes. we were in a really bad shape. the autobile companies h not goninto bankruptcy yet. i think it was clearo a lotof peoplehey would. but he knew that all of this was coming at us like auge wave and he had to sometng to

break e cycle >>ut it di't have to be done so that you didn't allow members of cgress a weekend have a look inside the $1 trlion. there was so much wastand abuse. the republicans re looking for a reasono oppose hi found it. >> cdos said 11% of infrastrucre would be sent th fiscal year -- that's all. >> the present reaut to -- reaches t to the russians and of global warmingo the wor's wealthst nations. >> we know it -may not end up agreeing on everything but we could add a te omutual resct and consultion that will serve both the american bible and the russiapeople. >> the president wh vladimir pun. when it comes to foreign policy, this president wilnot be confrontatnal. erica in the obama administrationill not go alone, that is not his style. kissger calls in a chess player. i think tt is a compliment.

what did the presint achieved moscow and later at the g-8, colby? >> in moscow he didn't achieve y milestones. on the her hand, i think he said the relatnship the way it should be with the russian leader. he didot ce out o moscow ansaid he lood into the president's soul a eyes and sahis soul -- nothing loopy like that. he dealt with theresident as a president. he dealt with putin as the prime minister. and put him in a secondary potion. knowg full wl that theower is witputin. he agreent they reached arms is something that critics will sathey could ha done any way and esn't lead to much. but that allowed him to take the measure of them and let em take the measure of him and up close and personal way. the g-8 summit, ty did reach some agreementover the objections of the devoping countries, oclimate change.

no great milestones on the oer hand, it was a ep forward, and the discussns that will ve to have in the future. >> nuclear arms, i think one o my favorite columst used the word irrelevant. >>well,he preliminary aeement obama negotiated isn't terrly 11. who cares w many warads the russns have -- it just makes the lel balan. but in order to come home waiting th agreement, he de a huge concession bause for the rst time in a quaer- century that arica would link defensive an offensive strategic arms. the recent bad ia huge concession is because offensive arms e entirely irrelevant. efense ishere we he an enormo thnological advantage. we can shoot down and i se -- bm and the russians can't d we agreed explicitly in writing to a linkage which agan resisted, bush had resisted,

clinton had resistedand a seco bush resisted. we will rue the d because it is the e thing in this century that willrotect -- protect us, defens. no way we wi det a iranians and north korea and to give away is a big mistake. >> rule e day, nina? >> i like coy id this one -- this is all about the shield. we have never reallydoneell in ouriew. the tests he failed as well as sueeded. i think it is always better i always thoug it was better as age than reality. >> no way tsay he was lookin forwd to come back wing an agreement. that is mist characterization of what i tnk it was after. i don't think there is an agreement that would in any way caused the unid state to diminished capabiliti of defendinitself or its allies. nothg was done in russia that would ad to that,

notwithstanding what was said. >> political questn. he didn't get th rponsen russiahan he hasad in other reign capitals. >> no, but tt should be no surprise. they a warof t united stat, and it does not matter with the president is, they will be wary of that person. is is a relationship that has to bbuilt. clinton met -- met putin and di'tike in theeginning and things and did cross the. bush ved and and the beginning andhings and frosty. but this time a little thing obama did. he had dinner with mvedev and he was opposed lev of the next that the putin but he said no, i am spending thnight with my family. putin, an evening guy, had breakfast. in the picture, putin looks like of the guard. he has a little cup, looks like somebody given the cut to look fancy buddy has begunn the back. >> the news conferee friday,

the presidensaid he thinks health care is onrack. things he will have somethi by the august recess. will it be anything tangible, substantia? >> i think by t august recess is pretty optimistic. i thinkn this -- the senate in particular it is in a hd place because they are trying to write a bill that willrawome repuican votes. that is hard busines that way to fance that that fell apart. terine new way they ve to have a determination to put out bills. i have not seen wavering that this will -- >> harry waxman said he willnot about what any white house agreement. >>ealth care is little like the human bk. itas so many humaremoving part >> w could do a ole show on bad backs.

with all of these competing interests, what will this sausage look like? >> a few broad olines. the y thing is how to gemore people insured. will there be a government rogram or will there be coops? the senate right now talng aboutirst a co op system that will be private, with a trigger to set up a public progr if it doe't work. the hoe doe't like that at al it will go with a government plan. all will be hashed out in a conference coittee thisall. but bin is rit -- they are magnus closef they could gure out the money -- they are, like, this close, and they can figure out of money. >> obama leaving this to congress, because he cldn't impose his will butt some point he will ve to get people in the room to knock heads tother. ther is too much falling in the

cracks. >> how will heay for this? >> that is what he talked about in h press conference on friday. the need t conol costs ian important part of this endeavor, trying to make a budget neutl. it is a tgh part, briing in something under $1 trilliois a tough thing. joe biden is ght about this -- probably as close as we have ever been in getng major heal care legislation enacted since lyndon hnson. would perfect? by no means. but constution wasn't perfect. have had several amendments. the social security act has anged many, many times since been put on the books. this wil happen in health care, too. but the fa is you have major players interested in doing mething. obama said he set the parameter and has his aff working face- to-face with members of congress.

i don't see him not bng engaged. i see him and engaged in way that is pductive. >> the is no free lunch in shington. >> o this is a very expensive nch. cbo said $1.60 trillion. and the central contradiction but on the one hand he wants to expand coverag that costs more. on the other hd he tells us over and over again that thbig thre to our fcalhealth and a future and to our economy i the expore of health care costs. this is not a solution. this would make it worse. >> how can you say it kes it woe when yohaven't seen the bill? it hn't been done. >>cbo already scored the first attemp. >> a proposa not the act. >>k. $390 billion missi here. therere a lot of option -- sounds like bernieadoff.

>> $39 billion a year they he to come with. these ys, chump change. but things on the table -- max ucus was talking about taxing very wealthy benefits. that seems to be off the table and then ather option that they discussed is going back to oba's proposal, which is to limit charitab deductions for people whoake more than 50,000. so everything is ck on the table to fill the gap. >> at the same time, we have the sotomayor hearin starting next week. publicans still have not agreed to let theearings go on in the afternoon when the senate is doing business, and it is not clear how obstructionist the are going to be and wheth they will p a penalty of they are i am not sure they figud it out, eitr. this is not a three-rg circus in wasngton this summer, thi

is a0-ring cirs. we've got supreme cou nfirmation, health care, climate bill, we'vegot all this stuff on foreign policy. >> all right. it senator al franken, iou delays, and soon-to- former gov. sarah palin. >> it would be apathetic to just hunker down and go with buffalo only dead fish gwith the flow. >> alaskaov. sarah palin decided the best wa for bd to serve the state thashe loves is to resign office. >> i cannot stan here as your governor and allow the millions ofollars and all thetime go to waste so i and all th title of governor >> in other words, you can take this job and sho it. before we sta on sarah palin, o seems to inspire great devotion or bile in equal easure, let us look at the governor thugh a different lens -- her uniqueness. you are in an airplane, it crashes in a wildernes you, nay pelosi and the governor

of alaska surve. who would you trus more to build a fire to keepou warm, attract some game to beat you and leave you back to civilization -- nancy pelosi and sert -- or sara pan? >> and bring home a fish to eat. >> i takes a better dead. >> i bet she could eat one live, th is how good she is. she is a very great talt but she is unprepared d if she left office becae of the at in the kitchen, the attacks on her and trig, that is understandable a reasonable. if she had calculation that this wouldomehow help publicly galatia's i nevemind. it cou be the end of for career. america has seconds acts in politic like nixon, t she imagin she could be like reagan in the world and is in the 1970's, a leader who gathers strength an becomes psident, she has to be like reagan -- a serious man who speaks and this and rhts riously and

reads and learns. if sheoesn't, she will not leave anything. i have already seen palin 2010 bumper stickers. >> they ma become collector's items r all wrong reasons for th governor. i agree with charl. i think that in quitting when sh did, she lost the opportunity to build a portfolio on picy and a series issues that would fill the ho thatvoters had aut r in the la campaign. i think in a way which she ha done is eraced the celebrity de of sarah palin, which is very lucrave and very vacuo, and i don't think tt is a path to the presidency. >> if you look at her history, history thevery hard- working, very attractive dilettante. she never stays and any job -- not mayor, not the b condition shwas appointedo hea and n n governor. i thk you are right. i think s emacedhe celebry side and is not willing to put in a hard

intellectual work. >> colby, is mark shlds were here, i think he uld remind us tt there aren awful lot of working peop out thereho don't re about her ttured syntax but wou idenfy with thismage that you saw of the person knows what hard work is. >> i thi he would probably sa thaand i would sury say that. i am not sure agree. rst of all, don't undetand sarah pan when sh talk she loses me but th doesn't matter, because sh has a numbeof peoplwho do understand her and she has a core of followers. she helped energize that part's base ithe last election. what does it mea that she steps away? you have vernors like the governor of virginia and texas asng them to campaign -- she will be able to do thatn behalff lot ofepublicans from a country overhe last cup -- next coue of years. she is going to walk into 2012

with some people who e really going to want to over something. then she went? i am not sure. but to saythat she will be a loser is premature. andshe is going toake a lot of money. >> not campaigning, she' not. >> but s has a book coming out. >> speeches, selded televion, it is very lucrative. the path she haschosen a denitely that. >> i'looking for a bumper sticr-alin sanford, 2012. i want a tickethat is completely out to lunch. the imagine how t russian woulreact. they wouldn't move inch -- they would be scared to death of these smaller did. >> hofrank and sworn in this week. my question is, is he going to leave his comedic talents at the door? it would be sha. it needs lening up. >> on a show of the other week i mentioned that i thought h would carry se of the old al franken thim, and i heard from a listener who real took

me t task, pointi out that he is a harvard graduate, cloudy, and a lot more lot cum laud and so w alogore and so was pat rortson -- i did not want to say thato my listeners. we needall we could get. >> i still ink we nd a few laughs. >> he probably will not give it to us aist of fund. >> former defense secretary robert mcnamara died lt week. >> our fire power of advante is immense why ouldn't weexpect to aceve ailitary advantage? >> robert mcnamara, secretary of defense under president kennedy andohnson directed american participion in the war in vietnam. tually he was right about th aantage. in ft, the u.s. prevailed in every major battle. our amerin soldiers, marines, herrmann, won the batt but the unit stas lost the war.

he lateraid we were wrg, terribly ong, and we owe it to future generatio to explain you worked for him at the world ba. >> i workewith him, u.s. representative on the ard and he was the preside at the time and i saw a lot of him almost every day. i think in some ways to try to compensate for wh he did as secretary of defense. not sure he'd she di but he brought his considerable energy and talent. driving the institution and the world to increase assistae to the poor china would not be ere it is toy as a world power were it not for the world bank bringing its into the economic familof nations encouraging development robert mcnama drove the decision did i was there to try to slow do,s a matter of fact, but think he wasight and was wrong but i did it on behalf of the u.s. government. but his gacy is not gng to

be theorld bank. s legacy is going t be in etnam. and it wasime for him to have said it was wrong, bute was part of the wrong. >> was a tragic figure, charle? >> in many ways. it is interesting colby remembers s tenure at the world bank becauseost people don't. i have a different take. i think everything he touched one wrong. at the world bank he had this idea ofuge influx of capital into the poo countries, in taania, adopteds one country, it's completely ruined the countryside and the agriculture becae it favored e urban areas to the point of what t farmers in tanzaa planted the ops upside-down as a way -- >> that is a fse ads have been used before by people onhe right, and it is false. tanzania had the highest literacy rate because of the world bank and edational sect. and thetory that was passed on is just false.

>> let me just turn to the subjectof vietna which is the ig subjects with robert mcnamara. from a human point of view, to see somebody who was so intimate involved in this disastrous warater become the architect ofaying we were wrong about it is an extraordinary thing. >> well, as ch as it tried to recovered,he bitterness he leftehind is intense and poweul pull for people who served in vinam. >> thank you very much. see you xt week. for a transcript, log on insidashington.tv.