how was the ainistration doing in its forgn policy? >> ware seeg a team of rivals jtling for position thes days. have vice-president bid who looks like a secretary of state, traling overseas. i think heooks the way to mself. >> we he senator mitchell wh a special portfolio to the ddle east. we he ambassador holbrke, another speci portfolio f iran. i wonder what secretary of ste clinton is doing these da? she is having a ha time nding a niec -iche. i am told from some sources tha she is ing isolated, a she tends to be on her own, not close to the people around obama, and not close to the vice presidt. >>. is not true that richard holbrooke is seen running from the scene. >> fmer marine general jim jones, hehouldave obama's here -ear. there haveeen a number of stories saying he is competing with obama's campaign staff to help run the white house jim jones i having to compete with this younger cads of campaign workers to getpace >> tts that -- not the way it is supposed to be. eready said he will ba heads together, he is one that looks bl

now t ainistration says look, ththetimulus wasn't supposed to hehelp ernight. we a aren n ack t is sinin our crcreangngobs. so thehey ilill e very much cocommted to stimulus. aides here dodon' wen't to lklk about a seseco stimulus yet. they say i it' w too sn. weweaan't seen whatat t f fir stimulususasas de t hasn't raededp completely t. so they areot yet taing enly about doining a second ststimus. the otherrbibi issue isealth care. at's a major,f n not e e jor agenda itetemor the admininisttiti. we realllly e e seng some snags onhe hill. privatatelaiais will say look, know this going to hahaenen. this is gogoin to be a summer. many times ere peoeopl wi say oh, health care rorm is dead. ththeyecognize this as partsf the l leglalati process but there's no questiononhahat ing overseas, , wh y y're having meme destic difficulties is s not ideal. but that's the way itt crumbles memetis. >> it doeses fllthat waway. but savavaahah, e president's apappral numbers haveveaken anotothedidi in theatest we've seen. mit he be able to b bng some good news omom t g-8o bolster

. >> reporter: the ainistration says it hanot suspended the progm. president obama assuredealers sh for clunkers will stay in gear. >> thas to quick bipartisan sponses, we're doing everythi possible to continue thisrogram and to continue helping consumers and e auto industry contribute to our recory. >>eporter: the senate is expected to vote on e funding tension next week. but until e bill has the presidt's signature, many dealers are being utious about continuingo offer the cash for clunker incentives. dana bate, "ghtly business report," washiton. >> jeff: wheit comes to the economy, the worstay be behind us. w numbers show the nation's gross mestic product fell 1% in the second quarte less than expected. but it'she first time since the greadepression that the economy has shrunk forour straight quarters. still, as scott gurvey repts, economists are cautiously optimistic about the seconhalf of the year. >> reporter: is not good, but it is a heck of a lot less b. this inow officially the worst recession sincthe great deprsion. but the decline in the s

cef sheila bair and others we all asked whether they would take backome of the powers the ainistration wants to take from them and gi to the new agen. as fra predicted, they all agreed. >> yes. >> reporter: thaunited opposition is one reon treasury sectary geithner wants to movby the end of the year on regulatory reform. bankers, brokers andven regulators allave reasons to rest change. the adminiration fears reform will only t harder if it slips into next year. darren gersh, "nightly biness repo," washington, d.c. >> suzanne: stronger tn expected cporate earnings have helped undern stocks this week and push the dow or 9,000. while so economists believe a stabilized profit picture suggestshe recession is coming to an end, others are not ye convced. in fact, there is growing concern about a doubleip recession,lso known as "w- shap" recovery. as we continue our "viving the economy" coverage, scott gvey takes a look at w some experts actuly "spell" recovery. >> repter: tonight's story is brought to youy the letter ", or maybe "l". perhaps a "w". how abt "u"? we're not sure because when u a

the ainistration is also using softower to reach the people. it hosts public lecturesor the residents, and it s up a radio station brocasting religious programs. all as it conslidates its grip in the heart of somalia's lawless southern coast. zeina awad, al jazee. >>> we continue our verage of the coinent tonight with this week's series "a view om africa," and big problem in ighboring kenya -- corruptio the country is calledhe most corrupt in et africa by transparency internatial, a group thatonitors and tries to combat corption around the worl it says 45% ofenyans pay bribes to gain acss to the most basic public service tonight, andrew simmonof al jazeera english tes us to a part of naobi where corruption is a fact of life. >> reporter: tis is life atts lowest. her only source of income is this maze she's ying to sell. her hopes n rest with her eldest song nelson. e's 17 and bright. but she says the oy way of eping him in schools to bribe to g a scholarship. so far she's livng off favors, borrowing from friends and sometimes suceding in persua

theense of urgenc will still be with u buti don't think there's any question at the wtehouse, the ainistration, supporters feel that time gives the opposition a chance snipe the presidendid notave a great week. the press conference took all the air out of t room. encyclopedic answers, too ng, like this one -- [laughter] at no engy. >> i don't think it was as bad a week as a lot of people think. i tnk winning the-22ote was signicant. i think it is unfortunate that they could not get a bill done, at least out of the house and th senate, by august. you mig lay se of the blame at the feet of the chairma of the senate finance cmittee as we as thepresident. buihink the president, when they come back, ven over the break, is going to have to knock me heads together so that come september, there is a bill. >> the pblem is not aactical issu ishat this wk, rhetoric met reality. the president hds a press coerence in whichhe speaks for an hour a he promises us more covera, expanded coverage, secure coverage, lifetime of coverage, cannot everdeny you covere, at no cost. yes, aouple of milliaires will p an e

>> for ational security reporters, it ki of feels like the nnth year of the bush ainistration. we're ju continuing to look back. and there'sa few thngs happening. fit of all, thee was the news over th past week tat the c.i.. had the ecret program, that lee --leon panetta, the c..a. director, learned about itnd when he heard abt it went tocapitol hillnd held emergency meetings and said i caneled this program and you hen't been told bout it for eight years. gwen: maybe he sould have reought in retrospect. >> a lot of drama. and that part of it of course adding to the dramawas that at the earl period vice president cheney advisedhe agency not to notfy congres as it came out, and we'e still tryi to learn the parameters of this program, but i seemed like it was a progm to assassinate senior al qaeda leaders whereve they may be arou the globe. of course, a we know and as i has been reported for years, the agency has been killing al qaed leaders. ty just haven't been dng it with humans. ey've been doing it ith drones flyin over pakistan. there are stll questions about what exaly this

who's names you hen't cessarily heard,tom donnalin andeff mcdonough and ihink it'strue of a lot of ainistrationas it policies are being made in the white house anpeople at the encies and secretary clinton ha to work hard to get toe heard. >>harlie: what about geithner. >> he'sertainly surved and recoved which is -- after i think they had entirely sought through the fact he hadn'tdone television apprances before he s on the line and i think he leard on the jobut i think he certainly is a treasury cretary which was not absolutelylear he would be a couple mths a. >> charlie: i ep hearing about rohm a his centrality and how the president leansn him more and mo as a reliance factor that goes beyo the role of ief of staff. >> it's stunng. move whoatched dating back to the 1990, i thin at one time he was considered so aggressive and so angling a now you have recognize he's pbably one of the mostnfluential cheifs of staffs in the hif of the modern presency because he has sh tremendousenergy and accounts. handles the legislative account and always centr when they'reutting the deal and handles to a marka

even the ainistration's own people didn'n't aiaim they cread jo. they're e yiyinghey saved jobs. did, i inead insisting ththe atate california put a airing freezez anand a pay raise feze on state emoyees, instead eseseially ininany casesthth transfsfer o federaraororwed dollarsenent , for example, i my state, teachersrs w got a p raiai.. they got a cost of livingng increase. ththatasasne of the questionsnse keked e governors a the gao. when you g giv a pay raisese o f stimulus ononeyis that creating m mntaining a j or simpmply lolow siness as ussuayy t governme gornment. >> conongrsmsm, if you i get atataxut there's n n g guantnte wee going to spend i i the united states. we could put it i i our mattres pend it in xxic the'e'no guarantee. >>david, y yorere not talking t ery reubublin. yoyorere talkiking t toonone wh at should have beeeen about shshinforward infrastructure, d there should b bydetailedaxax credits, you d dn't get the crits unless you do something at creates jj. . >> that's areat point, but congressman, you andnd me of yourur colleagues were claiming that it needed

in fact,t, "s"s" ainistration had a much higher numberer o latino and africananmemerins at ve high levels the administration than n aracacally rereprented in the party itself. here they'y' b beepursuing a big tent strategy over thehe pt t decade a andududdey it appears they are going to o fo t thabig tent up. anand st critically they s sm mo be prepared to do it a aunund e ququeson of latino voters which is an enormous mistake b becsese of course what any pololicical party wants is new voterers d d 's'seen the latino voting g bl that's been able to give t the partrty rtrtf new voters. they're losingng tt t re. >> whyhy wldldhey make that dedecion? i i thk it doesn't make sensns for democrcrattotohink rerepuicicanare just willingly and knowingly y stpipi off a degraphic and political l ififf. i think they h he e toense there's sosomeololital wind at their back, some p policic gains b be de even if they are going to givive l lino voters t therocess. >> welell,ouounow, certainly this was true 40 years agogo wn the party strategicacay y ma a choice to go, , yoknkn, massive resisistcecen quest

. >>> this mororni i i a new interview, v vicprpridentididen idid t obama a ainistration "misreadad"wad t economy s s bu stands by the stimululu package. as w we arart theecond haa of 09 will we see theececomy arart rerebod or w wl we see fufurtr setbacks on ts s ad to economic recoverer joinining live for soome perspective, an economomt d presesr at thehe university of maryland,, pepete goodmorning. joe biden said i itt -- went ono say that it is tarly too consider t t psibility of a second s stilulus papaagage but isllso being talkeked about. in thenew york times," "as in the 191930 r s,hehe opponents of action a aededing scare stories ababt inflationeven as deflation looms.s. peter, whatt needs t happen the second h halofofhis year to see a turnararndnd so we don't need to talk about other round of govevemement stimulus? >> what ihhinthat krugman an the president'smemen aremimissg is that t isis is not aycyclil ent, that s somow or other demand hasas tpeped wn and a stimulus w wil g g us goining agn. there are ththin that are fundamamtatallbroken in the ecomomthat the stimulus pac

the regation from the ministtion, but when you're ading, investing, you have to understand the ainistration you're working with. this is their innt, and they're going to act upon it. th are gng to step in and try toimit the amount of contracts you cahold from the long side in energy tures. d other commodies. >> next step of theargument, joe, because youlluded to this be. if they're not gting energy expore through the likes of a ung or uso, they're goingo go to t equity side. does that crtehis flow of money into the equity side, which will then create demand for ose? karen, do you see that happeni at all? is that an investable business? >> if they're coitted ough that. >> to oil, to energy. >> that makes sense me. wealked about transocean, which i've had. i hait when it was up, had it when it was down, bought more today. i don't get too focused onhe noise day-to-day what happens. what i look at is the long-term supply/demanfor oil. i think over time we will se dendmprove, but until then i dot know what will happen with the speculation so il get it g if i try to trade it. >> let's not continu

the ainistration promid a stimulusould keep unemployment below 8% they promid it would crea jobs mediatelyng. thbottom line is this, the stimulus isn't creatingnough jobs. >> well, johnharwood, i think that the vice president nt to ohio for a rean today. they can't lose the chamber out ther they've got to keep convincing fkshey've got the answer. >> aolutely, and they believe that they wil get a bigger ba from the stimulus as the months go on and that, in fact, the economy is rovering. but how long a people going t be patient and give them time beforehey s to president obama and the congss you've got to do something else >> ron, doesh put pssure on the obama administration to make sure they get public option in t health care bl? that wouldhange a lot of lives in ohio. >> i think it might, but ion't think they have the otes to get it through the senate the way it's currely drafted now. there areany centrist democrats. i think they're in a difficult spot rht now. gives us republans an openin we've been looking for. >> jamal, what do you think? >> i think the first time of this year, wre losi

so the obama ainistration is really highling that as a significantachievement. then the other, quote/unquote, deliverable toome out tt we're just learning abou they have a frework now number for the new start treaty that expires in december of this year. now there's going to be new start treaty. they have to negotiate it. the details wille difficult but the numbers are there. under the old treaty, we had 2,200 warheads allowed. >> looks like we may have lost savannah guthrie who is in moscow rig no presidenobama, again,t the kremlin and met already with the ruian president dmitry medvedev a he also is scheduled to get togeth torrow with the prime nister vladimir ti serious conversation not only abou reduction in nuclear stockpiles but russian cooperation oking american ples to fly over russian possib into afghanist. a very gnificant change in policy. that ultimately formaled. >>> nt, we continue is conversation wh russ with one ofobama's closest confidanted, rhode island now a framework for a nucle arms dl in place between russian and the united states. we'll ta

hihis administrationnd this congress cancocontue to focus on thiss predecessors and on therevious ainistration to create obobs. 's notoing to hee those standingng wh h th american people. >>>>danny,f the law w was broke, that doeoesn c conrn you? u'u' not worried t tha tential lay law was broken? >> i i tnknk we need t tearn more. i ththin jumping to conclusioio after oneneneyork times" story babad d on a aonymoussosours is not a smart thing t t do. >> let's address sosomeining her than a "new york times"s" story. that is t tisis report released friday byhehe inspectctor geners of fiveagencies about te nanaononalecurity agency's domestic rvrvllance program. agn that government r rept t ththnsnspeor general makes clcleathth vice president's's pepersalal advisorrried evereryo.. e report case is the "the exceptioionayycomparted natuure of t theroroam from m us ratete investigige e efforts." >>>> i t thi once again, i is sa to discuss t thehings and loo into these inin and ask questions s ouout ese things. i don't think k iisis fair toojp to conclclusn n and accusee pe. thk k ere is a re for vious

. >>> ce predent biden said the obama ainistration "misreadhobad the economy was but standsy thetimulusrthe second half of 2009 will the economy start to rebod further setbacks? i'm join live by neil irwin repoert "thwashington post." >> good morning, alex. >> joe biden went on tosay its tee early to consider the possibility of a second stimus ckage but it's already bein talked about. ul krugman wrote thursday "they're peddling scare story as deflation looms so getting another round of stimus will be diffilt but it's essential. whato we need to happen the second half toee a turnaround? we don't need to be talking about another round of governnt stimulus? >> we're sengvidence the economy is going to btom out. the's a fference between the recession ending and expansion beginnin the difference beeen that and thin feeling again. the unployment rate will keep rising for many montto come, probably into 2010. there's a lot of economic weaknessut there and even wh growreturns mt people expect it to not be the roaring growth that woulget us back to normal qukly. if you agree wh paul krugman and

theirst partould look at the bush ainistration, whichdid notave cat for twoally vry good relationshipwth the muslim counity. we ink that that relatiohip can improve and has improved omewhat under the new administration, bt there are still elements of concern. we know tt there are very zealous prosecurs in different rts of the counry that ll twist evidence agnst musli. we know that muslim charits at are totally legitimate have been shut don. we know that the human and civil rights of some musls have been abregaited or challeed by the current climate of islam phobia inheountry. so i wld have to say toyou that those rles of engament are ally a workn progress. >> suarez: david schanzer at the time of the arrestsn some of the cases, ev f.b.i. ants called t plots involved more aspiration than operatial. is there a decent question t be asked abou timing here? >> well, there's aays a toh callfor law enforcement aso whether they want to cut something off before anythin could possibly happen or they want to let it playout a little more, let t plot ripen a bit to see if you can cah somebody in t

the fed, in other rds, may prove toe the more important participant, as usually it does, th the ainistration and the congress wn it comes to what can you do now. >> ros all right. is is what david brooks said "and the irony is tt obama supportersill be cononted by the problem for which they ve the least experience and for which they are the least prepared, the probleof scarcity raised in prosperity, favoredy netics, these young merocts will have th demands on the nation's wealth tstrip supply. they will grapple with the owing burdens of an aging society, rising heah care costs and high energy prices. they will have tomake up for the trilli plus dollars the governnt will spend to oid a deep recession. they will ha to struggle to ke their promises to cu taxes create an energy revotion, pass anxpensive healthare plan and all the rest." dad brooks. do you agr with that. i do largel agree with that, ye >> rose: so now what... beyond monetary policy keepi health care as deficit neral, looking at som befits from climate corol policy,hat else is there do to raise renues? to reduce the posbility of a

on what you know on thee intelligence c committ, you to th not knowing, do yobelieve ththbush ainistration broke e law here? thatoes back to 1948, i i believe. >> the lawis that t congress has to be informeded that is correct. >> now,what would be the next step he? wh would the demomoats have to dodo here, senatoror what has to happen?? >>well, you'veveot anongoing investigatation in the house intelligence commite. i thinthat's entirely sufficient. they ought to be able to com up with what t happened lay i it o and then proceed from ththere. >>>>well, but senator, you don' sound like you got a lot of passion for this happppn. there's a lot of americacans o thererthat wt toknow, what's e other foot t that mig drop here? wh else were they doinghat we didt know about? >> l me tell you my passion,n, eded. my passisi ithat there ar a lot of amicans out there tat havevegotto be proteed. and noway can this impede thmission of e cia as they are on a daily basis inrcepting the informatition of the d guys who a trying to continue toarm us. so my passion is tolet the ci dodots job legal and uphold e

in the ainistration, there are lots of nitty-gritty detai th don't move through the legislative processow come across my desk. >> rose: and it's often speculed even by one republican cgressman who said this may be esident obama's waterloo. >> yh, i think the president said this isn't about him, this is abo getting an important rerm done and that's what we're focused on. >> ros it is said, i think in the "new york times,on your desk the's a copy of teddy rooselt's book "the strengths you life >>es, there are. >> rose: and another book by a greek historic philosopher. >> yes. up? why ose two? >> thegreek stoic philosopher had the persptive thathat is most iortant is h werespond to external events and i think that's thenly thing we can truly gorn and i think there's deep tth in that observation. and pecially jobs lik this it's iortant to remind onese of tt. teddy roosevelt braced a life philosophy that very mu want to seek, which is at the purpose life is to go out and be vigorous and be trying ings and not only seeking comfo. >> ros he decided the kind of person he wanted to be and he bec

and the ainistration will be in a vice. we should be pursuing stimulus and we should keep that going, say, f two more years. and we should wait-- as e president said in your clip-- to confront the deficit until the economy is stronger. that's right. n theory. the question is whether it will possible in pctice and i ink that'a tough one. >> ros altman for the ur next. captioning snsored by ro communications from our studios in new rk city, thiss charlie rose. >> rose: we lk about the econy this evening, the growing s. budget defici has alarm misdemnor in washington, many on walltreet, and many across america. economists warthat rising debt levels could be stabilizethe dollar and bankruptafety net progra like social security and medicare. the obama administrationas vowed to address the problem oncehe economy abilizes. in recent intervie with al hunt of bloomberg news, the president said the govnment's de burden was a top concern. >> i amconcerned about the long-term issue o our ructural deficit and our long-ter debt. because

. >>> the obama ainistration will unveil tgh now steps toto curb fooood contamaminioion.going t tbebe creating a n deputyty fdd commissioner and gg a bettererraraci systemoo try to identify t the origigin foo boborn ilesses. >>>etet get right too the rkets. we'r're joined byy todd colvin mfmfloloba andurur nt guest is mimikeolland of hollandnd & company. >> think, becky, withhehe bebegiining oearning season ocks are going to kind of be tetentiviv we've seen the s s&povover near the e -d-dayoving average around e 900 level. likewise, i think the e tw biggest pieces of newsing g wi be the consumemecrcred numbers and d clmsms those twoo a very keyey ithe rerecoryry of t economy or the fact that itouould stay towowar theaker side if tt consumer credit continues to deine, it gives the consnsumess s speing power. >> right. sosomeing to beononceed about. fact, mimikethat's what we re talking about this mororni with d dav rosenberg where you start to looook a the unemplployntntumber as a leading indidicar r ther than a lagging indicator r enen y get to these incredible numbebe..

but i think thth btoto theasast bu administration and what obama's a ainistration ha d de in termsms otrtryi to keepththe im use husband going isalways e e ght ololic >> bob, it'salalys good to talk to yyou didid u u kn he's also from napervillele naperville, illinoiois. >> fwh, i did not. >> illinois. >>midwest. >> bob, we'll tk to you lar.r. tatakecare. >> my plplearere. glgl t to b wh h u. thanks.. >>> earnings seasonn officialll ops on a ueaea note. alcocoa veves hihierer aer reporting auarterly loss t tha wassmsmler thanwhwhat t t market had exexpeed. ining us right n now is chuck adford, partner affiliated researarchananagent. chuck,k,hehe loss was hehere bu it was a s sller than expected loss. what does t thiake you feel about the stock r rig now? >>it's a matter of cost ttttg. this c comnyny h been very prpresve. it wasas in n th f fir quarter it was in thth second quarter. some o o thoserere coststndnd control. butbasically, is osost. they're n sinin that much a far as economic recoveryryotothe than china andndhihinas truly cocoveng big time. >> theirir spmpmts were up over