captioning sponsored by wpbt >> suzanne: use democrats are getting ready to head home taking with them plan to sell heth care reform across the country. talk with a key player in that effort, congressman grge miller, chaian of the house ucation and labor committee. jeff: citi. goldn. bank of americ and jp morgachase. the big banks hit rdest by the recession, gave employs big bonuses last year despite plunging profits. suzanne: from new cars to homes to spendg at the mall, easy credit spoiled ericans in the la decade. but as the recessi lingers on we'rwaking up to a new normal for consumer spendin jeff: then we head out for house call with ctor de-young. he's part of a home healthare program that saving medicare llions of dollars.

>> suzanne: m suzanne pratt. jeff: and i'm jeff yastine. this is "nightly biness report" fothursday, july 30. "nhtly business report" is made possible by: this progr was made possible by contributions to yourbs

station from viewers like u. thank you. 7//& >> suzanne: good evening everyone. health care rerm won't come up for a vo in congress until the fall. but that didn't stop the wrangling on capitolill today. house demoats pushed ahead with negotiatis trying to get the measure out committee before leaving for smer recess tomorr. house leader nancy pelosi ga her fellow democts talking points to take back their constituents tellinghem health insurae companies must be held accountable. >> we want a strong publ option in the leslation. insurance companies are ou there in fl force carpet bombing, shocknd awe against a blic option. so much so that when yousk people abo the plan. they arencertain about it until you tell them what's i it. >> suzne: meanwhile house

minority leader johnoehner warns thatemocrats supporting the legislation will likelhave a very hot smer. joining me now with update on healthare reform is coressmen george miller. he is a decrat from california anchairman of the house education and labor coittee. congressmamiller welcome to the program. >> thank y. >> recenpolls are showing that amerins are losing their support for alth-care reform. why do you think tt is? >> well, i think part oft is that clearly the reblicans and the special interests have enged in a fear campaig kind of fear that somehowhis was cialized medicine. fear that they wouldn'have the choice of their dtor. ar that we were going to reire that they commit suicide. i mean the damnedest things you ever heard of in yo life. buwhat we do know is that when peoe discover what is in this bi and they len about , they like it very much. and they wou like to have for their families. d they would like to have the security that it brings them. becausthey know that never again will ty be kept away from medical car because of their preexistin cdition, for them or theifamily or

their children, thr spouses. and they know that never again when they lose their job or they're la off or they change jobs will they lose tir health insurance. an that he and security is very,ery important to american families in these economic times. >> congressman, but oers are worried about e cost of this. and they believe that thr costs,he cost of their insurae premiums are going to gup. and that pottially it's going to mean higher tacks for them. what can you s to allay those fears? >> well, i thinkhat we can sh them when we gout to ouristricts and hol our townall meetingsand visit with theusiness groups and with famies andonsumers, we'll be ae to show them thatn the -- in the inrance exchange thathey will b able to have lower out-of-pocket expenses. they will have a cap on their family expepss. th'll have no cap on what insuranccompanies will have to pay for their illnesses, their sickness and their needs. and that is a marked different from the insuran plans that mosteople have. and they will also know that ey will no longer be

paying forhe uninsured, much of at they pay thei premiums goes for the unsured. the uninsured will be covered der this plan hospitals will b reimburd, doors will be reimburse and they won't have to charge those of us wit insurance more and me to cover the unsured. so we canhow them that this is goingo reduce the cost of healt care over the long-term. 's going to reduce the immediate cost of health re for hpitals and others because the insur ll be covered. >> conessman, you have been very critical the senate healtbill which supports co-op plans and not a plic option. what's wrong with a co-op idea >> well, the -ops haven't oven to be very successful in the past. and it's interesting that today you s "the wall reet journal" attacking co-ops the same as if they re the public plan. i don't know that they buy you an quote goodwill with some part ofhe american public. the fa of the mat certicate that the public option and the public exchanges whe people c go, th can choose to y

privatinsurance or a public option surance, at will help reduce the cost of insurance because the insurance compies will have toompeteor individuals an famili businees. also we're going to t the standards so you won't ha any mo preexisting conditns. you won't ha a cap on how much the insurance cpanies will pay. the insurance compies will not be able to take your policy away from you when you get illhe exact moment that you need it and will you never lose your surance because you lost your job or you nt to start a new businessr whatev it is, so tt's a marked difference than wt the oppents are talng about. and e co-ops, you know, don't mind if thewant to start co-ops but i think they suld be an option within the exchange. >> i tnk one thing that a lot of amerins really don't understand is what's the rus wit rpect to health-care reform? why doe need toave it happen so quicy? >> well, we know ho difficult it is. we've beenrying to d somethg like this since teddy roosevelt. and nce harry trueman and fd

d lyndon johnson and bl clinton. you know, we've madehis effo. and we know that if you don't get it done is year in a campaign year which next yr will be with all of the members o theouse up, th a third of the members of the senate up and all that that means here, that it' highly unlikely we'll get it de. soe haven't been rushing it. this bilhas been out. thpublic, it is on the inrnet, my committee sid, of the other committees, e members, we havebeen holding townallsing telephone town halls, i'm doing one later tonig, several thounds of people iny district to lk them through the billo discuss it with them and i think in t house we are a big breaktough in the last couple of days where the blu dogs decided many of em could sport the billith some changes. those changeare being put in the commiee today. so i think it's been a pretty delibative process in terms of the iolvement of members ofongress and the public. >> a right. i think we ve to leave there. thank yofor joining us. >> tnk you. >>hank you. my guest this evening: congressman george mler. >> jeff: stos jumped to nine- month highs thanks to the last jobs data, song results from stercard and an upgrade of g

while new weekly jobless befit claims rose ightly, the number ofeople filing for an extension of benefits fello a three-month w. that helped the dow rally to 170 point gain ithe first 90 minus of trading. while the mark remained higher through the afternoo some late-profitaking trimmed the gains.

>> breaking news frothe department otransportation, ter less than aeek of its crash forlunker's program, it's being suspended. got officials believthe billion dollars seaside for th program h already run out. cashor clunkersad offered up t $00 for consumers whocrap oldas guzzlers formore fuel efficient cars and trucks. >> suzannemastercard reported better than expected quartly profits today it cut expenses d raised fees charged to banks. still, the world'second largest crit card processor said the dnturn in consumer ending would make it difficu to meet its revee targets over thnext few years. as we contin our reviving the economy coveragescott gurvey reports the ange in consumer spenng goes way beyond credit cards and may become thenew normal" for ericans. >> reporter: oe upon a time, in land not so far away, consumer credit made sen. to get a home mortgage, you needed to put 20% wn.

get a credit card, you need a good payment htory. to get an autooan, you needed job. then a hell broke loose. economist julia coronado explains, we creat a bubble, and th the bubble burst. >> we were in a credit boom where credit was so ea for consumers to acces you almost didn't have to show anproof of ability pay. and that of cose, that ndulum has swung in the othe direction where now even ver soliconsumers with good jobs n't get the kind of credit thathey would like to buy a home or purchase a car >> reporr: so what's the new normal? now the te of increase in credit card delinquencies appears to have peed. but coumers have less credit. and opnheimer's brian levitt does not expect to see tm running back tstores. >>art of the new normal is less consumer spending i me, we're at a picture now where employment is trending higher. it remai to be seen whether we have a big recovery in jobs consumerface further pressure but not only that, the

availability of crit is not going be what its been. >> reporte the so-called shadow bankingystem, that nned the flames of the credi bubble has virtuallyhut down. without th extra supply of money from hedgeunds, endowments and investment bas, coronado says can expect the new normal will an tighter standas all around. >> 20% down on home, maybe 10%. but certainly not no moneyown on a home. you are gointo have to show eviden of income to get credit. things that that seem fairly obvioubut went away in the crit boom of five years ago. i think that credit om will not comeack. we wilget easier credit but it will be much more ratial credit. >> reporter:nother sign of the w normal is the saving's rat ich had been less than 1% fo the last few years, now it stands at just uer 7%. scott gurvey, "nightly busins report" new yo. >> jeff: a federal judge h approved delphi'plan to sell most of its assetso a group of

lenders and its foer parent generamotors. the ruling clears the way fo the auto parts comny to exit fr almost four years of bankruptcy. delphi's os its lenders more than $3 billion. in excnge for forgiving that debt, the lends will take contl of the company's assets. the plan also putsour delphi plants bacunder gm management. lphi hopes to close the sale by the end of septber. >> sanne: the banks that got the ggest helping hand from uncle sam apparently ge big bonuses toheir employees last year. that's t word from new york attorney general andrew cuo.

who's investigating compensaon at banks that got tarp fun. he says boses stayed at bull- market levels despite e financial cris, with large paychecks becoming a "cultur expectation." citind merrill lynch combined got $55 billion in tp money and lost27-billion last year. but thfirms' still paid $8 billion in bonuses. cuomo ys there's no rhyme or reason to how wall streepays employees. a house investigive panel agrees it will look at payos by tarp banks after it sees cuomo' report. meanwhile you and une sam became citroup's largest sheholder today. citi finisheconverting the government'stake in the firm to common equityiving tax payers a 34% piece othe banking gian the move is aimed atoosting ti's common equity, jeff, a measure seen as keto withstanding fther losses. >>eff: suzanne, the company says with the exchan complete, citi inow among the best capitalized banks in the wor. now let's take a look our stocks in thnews tonight.

and those are the stoc in the news tonht, suzanne. >> suzanne: thks, jeff. medicare'selebrates its 44th birthday today. 1965 president lyndon johns signed medicare to law proving low-cost hospitalization anmedical insurance for the nation's seniors. now the ogram covers 44 llion people with a yearly dget of nearly half a trilli dollars. bujust 10% of medicare patien account for nearly two thirds of the program'cost. toght, stephanie dhue introduces us to a programhat cod slash medicare costs while improving care f the sickest patits.

>> reporte with his medical baand blackberry, dr. eric jonge is heading out for a rari in modern medicine, a home visit. on a typal day, he visits about half a dozen patients. >>his driving time, is all unfued, so you have to have a fairly efficnt geography that you serve so you're not ending a lot of time behind t windshield. >> reporter: with us tagging along, he's going toisit tamah willia, an 83-year-old woman wi diabetes and hypertension, who can no longer lk. dr. dejonge wants help her reach her goal of gointo church. >> so how are you? >> rorter: williams multiple illnses, medications, and immobility qualify her f washington hospil centers use call program. the complexi of her case makes it more efficient to treat h at home. and docts can do things here, like checking the maress, that uldn't happen with an office visit. dr. dejonge help create the houscall program ten years ago. >> the big this that cost moy in medicare are hospitalizations, which ar

often started er visits, so what we can doith a mobile team that's avaible 24/7, for phone calls, urgt visits, is we can getpstream in the illness and keep thoserises from happeng >> reporr: keeping those ises from happening saves medicare money. the washingt hospital center's ogram has cut hospital stays by drastical reduced emergency room visits for the critical ill. patients and their carivers see thdifference in the quality of care. >>fter they started comi, my strength start getting strong and stronger, and i was gettg better. >> reporter: tre are 600 patients cared for by e mobile te of doctors, nurses, and social workers. dr. george taler, establhed the program th dr. dejonge. on a clinical level it has been more than athing i could ha ever imagined. we've actually been le to pull together the medical carplan and the socialupport systems and ingrate them into a combined sort of helsupport, that works for the pients and for e family care givers.

>> reporter: what doest work is the fincing. mecare reimbursements don't fully pay focoordinated home re for the chronically ill. >> so unfounately, although we may be saving millions of dollars to medicar we're losi, oh, hundreds of thousands of dollars keeping this program afloa >> reporter: there are handful ofedicare house call programs around the country li the one here at washington hospital cter, they've proven to save medicare money. lawmakers have taken not congressman ed markey s introduced the "independce at ho act," which would establish 54 pilot pgrams and provide incentiveso make home based care more widespread. my mother always said, try work smarter, not hard, and i think we've come to thatoint in health care, ople are trying tprovide smarter ways to provide health care. >> reporter: mkey says the new law can be part of a broader health care bill or a stand- alone package. for patients like willms, home care mea getting preventative treatment, and hopeful avoidingultiple hospital ays. stephanie dh, "nightly

busine report", washington. >> jeff: tomorw our friday mark monitor guest is robert stovall managing direcr and strategistt wood asset manament. >>uzanne: wal-mart could soon be in the businessf offering vaccinions for the h1n1 virus or swine flu. the giant reiler is talking with us health officia about helping to gethe vaccine to the public thifall. each week, 140 million aricans visit wal-ma's 4,000 u.s. stes. e c.d.c. says 160 million doses of the h1n1 vaine will be availle in october. >> there, last month frontier aeed to be boug by republic airways for $8 approximately. but today southwes airlines put in a bid of $113 million. the bankrucy court already approvedepublic's offer but said it can be scraped if sething bettercomes along. frtier says it is stuing

southwess offer. euqucs >> suzanne: here's aook at what's hapning tomorrow. while gns of economic recovery

have been few and r between, stocks have been surgi. tonighs two ways to play looks at the disnnect between the marketand the economy. here's kevinepew of minyanville and minyanville' kevidepew. >> despite the ns this week that inventories of new mes plund to a three-year low, and evidence of price abilization fromhe case-shiller home price index, the level of negavity about the ecomy is as great as its ever been. these days, no good tapoint goes unpunished byhe mainstream med. stockshowever, are telling a different story. the market is up 8% thisear. are we still in bear market? look ait this way: since 1997 stocks, cluding dividends, havehown no net gain. how much me of a bear market do you want? the point is well taken, 12 yes of virtually no capital appreciation in stocks ia prty good bear market, almost as good as t 15-year period between 1965 and 1980 wh stocks were largy flat. it's true, homprices aren't gog to go to zero. but here's t elephant in the room: debt, the accumulaon of

it, and th the repayment of it, drive every economic cyc. and while the past2 years were about debt acculation, this cycle is about repayment. how much more of a bear maet are we going tget? well, withespect to mortgaging our future earnis, we've push the envelope bend any recognizab bounds. >> jeff: rapping today's maet action upbeat earnings help stocks move higr. the dow gained3 points and the nasdaqdded 16 points. to learn more abt the stories inonight's broadcast to watch our streaming videand to take part in our daily blog go "nightlyusiness report" pbs.org. you can also email uat nbr@pbs.org. >> suzanneand finally tonight, if you want the governmento send you a $40oupon for a telesion digital converter bo you'll have to act fast. really fast. tomoow is the last day applications will be accepteby the national tecommunications d information administration if you mail it, ur application

must be pomarked by then. onli, phone and fax bmissions have to be receive by midnight eastn time. so far, the governme has sent oumore than 63 million coupons. but only 33 million ha been redeemed. jeff? i was one of those 33 million who did redeem. crystaclear picture. i did the unthinkae. i cancelled my cable. good for you. >> with that endin notes, >> jeff: tt's "nightly busiss report" for thursday, july 30. i'jeff yastine goodght, everyone. angood night to you, suzanne. >> sanne: goodnight jeff. i'm suzanne pratt. we hope to see all of yo tomorrow evening "nightly businesreport" is ma possible by:

this program wasade possible contributions to your pbs station from viers like you. ank you. captioni sponsored by wpbt ptioned by mea access group at wgbh access.wgbh.org