again, his point was it was the private sector that was the strength of the american economy. i just don't see them doing anything to help the private sector. >> when we come back, obama care's contradictions. the president says support for his plan is falling. that because folks aren't listening. but maybe he's in trouble because they are. that's a-- tiny netbook. yeah, it's-- good-looking, lightweight. generally awesome. and you could just-- go online, video-chat with my cousin. this is un-- under $200. are you some kind of-- mind reader, visionary ? no, i have them. huh. the new lightweight hp mini netbook with windows and america's largest and most-reliable 3g network built in. only 199.99 with mobile broadband plans from 39.99 i am-- speechless, envious. wanna be me right now. getting one. >> medicare, it should be a little more competent than maybe the government with a role, a role in the fact that people are treated fairly when it comes to insurance. >> confused about obama care? it could be because the president contradicts himself, often times in the same speech. und

again, his point was it was the private sector that was the strength of the american economy. i just don't see them doing anything to help the private sector. >> when we come back, obama care's contradictions. the president says support for his plan is falling. that because folks aren't listening. but maybe he's in trouble úgsw >> medicare, it should be a little more competent than maybe the government with a role, a role in the fact that people are treated fairly when it comes to insurance. >> confused about obama care? it could be because the president contradicts himself, often times in the same speech. under his reform plan, government bureaucrats won't tell you what tests you can and can't have. but a panel of health experts will. medicare, example of something the government got right, except going broke. the latest administration double talk, well whether the so-called public option is essential to their reform efforts. senior editorial page writer joe rago joins the panel for this segment. all right, joe. i think the this debate is chaotic. what say you? >> that's righ

a year ago, massive energy tax and wanted to continue to cripple the american economy by punishing american companies we proposed petition drive called drill here, drill now, pay less. that petition drive got a million 500 signatures and fundamentally changed the underlying debate. instead of being energy tax versus no energy tax. it was energy tax versus lots of energy. the american people turn out and 79% of the country believes we ought to produce american energy. one fact as to the kind of debate you could have on your campuses. some of you have heard about the concept called peek energy. liberals say we are about to run out of fossil fuel and they don't count coal because then it it wouldn't be true. so they only count oil and natural gas. well, now it turns out we have new technology in natural gas, we can drill down 8000 feet and drill out horizontally in every direction. the result is we're discovering gas in shale and we have enormous quantities of gas, from western new york to western pennsylvania, through eastern ohio, through west virginia and kentucky, all the way down across t

it affects one-sixth of the american economy. this is not something that should be held hostage to any specific deadline. >> so is it passable? >> president obama says there is 80% agreement in congress, but not everyone in congress agrees with that. senator shelby says he thinks the bill is in deep trouble. also, interestingly on the house side, congressman jack murtha, a democrat, says they may not pass anything on healthcare this year. >> it's interesting. in the spot you have, the senator talks about being held hostage, that there won't be a deadline. it's interesting that yesterday the president said the insurance companies are the ones that ared the ones holding everyone hostage. what is the buzz to focus on the shift about the insurance company? >> it is a shift. he had been talking, the president had been talking about the economy. it's one-sixth of our economy. real focus on the money of this. and how he wants something to be deficit neutral. we have seen him shift to attack mode of town hall and insurance company. the a

. >>> federal reserve chairman ben bernanke says the american economy is on the verge of recovery. bernanke says economic activity in the united states and around the world seems to be leveling out. the prospects for growth in the near term are good. and there are signs the u.s. housing market may be rebounding quicker than expected. home sales climbed more than 7% in july, the fourth straight monthly increase. foreclosures and other distressed properties are about a third of all transactions last month. >>> i knew abc news polls show half of americans now disapprove of the president's handling of health care. 46% approve. the health and human services secretary was at ohio trying to win support for the plan. she is confident that congress will try to come up with a workable bill after its august recess. >>> official election results will not be released until next week in afghanistan, but the leading campaign is already declaring victory. millions voted in the second presidential election, and despite violence and fear reducing the turnout, the presidential candidate accused incum

george says, when the cash for clunkers program be more beneficial for the american economy if it were only available for american cars? an answer to that coming up. mr. evans? this is janice from onstar. i have received an automatic signal you've been in a front-end crash. do you need help? yeah. i'll contact emergency services and stay with you. you okay? yeah. onstar. standard for one year on 14 chevy models. hi, may i help you? yes, i hear progressive has lots of discounts on car insurance. can i get in on that? are you a safe driver? yes. discount! do you own a home? yes. discount! are you going to buy online? yes! discount! isn't getting discounts great? yes! there's no discount for agreeing with me. yeah, i got carried away. happens to me all the time. helping you save money -- now, that's progressive. call or click today. >>> welcome back. this hour we're focusing on is the worst over? president obama said friday that, yes, there are good signs in the overall u.s. economy that the cash for clunkers program got another injection of $2 billion because the u.s. senate said so in t

that may be a concerning story, but we found a building block of hope for the american economy and consumeras well. the maker of lego was up 60% and the sales were up 23%. revenue is up. joining us now on news line from bill and legoey group ceo. thank you very much for being with us. we appreciate it and so glad you can take the time. can you believe looking at these numbers from lego, sales up 23%. how come? >> thank you and thanks for being able to take part in the program. i think a couple of things had worked for us and is that we the last or five years focused on core consumers. we have never been closer and it is really all about being out there and even though it's competitive and having the sharpest products and markets in concept and working through retail channels. >> do you think -- i know you have partnerships, for example. "star wars," that's part of the strength you have seen because you had products linked to popular entertainment things like "star wars"? >> yes, that is say major part of it. you have to be where the kids are excited. we have also seen an ability to link int

small businesses are born around the kitchen table he calls a small business the heart of the american economy. this it ministration is sending out a clear message, minority- owned small businesses are playing a crucial role in getting us out of this recession and into recovery. at the sba, we believe in the power and potential of minority- owned small businesses. we know that small businesses create over 70% of the jobs in this country and half of americans who work own or work for a small business. small businesses drive competition and a drive 23rd century jobs. today, the sba is working to make sure that minority-owned businesses can not only survive but can grow. we have three priorities to do that. first, implementing the recovery act. the second is reinvesting in our agency. the third is to be the strongest possible voice of small business across the administration. first, the recovery act. economic stimulus. all of you know what happened in october. in october, banks stopped lending. credit lines froze. small businesses were struggling to find the capital that they need. congress and t

and these entitlement programs like that and medicaid are going to represent one-fifth of the american economy when you throw in all health costs all together. they say something has to be done about that in the long term. virtually everyone agrees on that. if the economy is to propose per, if deficits are going to be brought under control, everybody's expressing confidence trying to accent wait the positive on the democratic side, committee vote on friday before the house left. alex, there's still a long way to go when they return in september. it will last through the fall in all likelihood, this debate on health care reform. >> good point, mike viqueira, thanks. >>> as democrats in congress head home to sell health care reform to their constituents there is evidence seniors in particular are skeptical of the proposal. just 20% of americans age 65 and over think the health reform bill would improve the quality of their medical care. when asked what the bill would do to their coverage, more than a third of seniors say it would reduce the amount of health coverage they have now. 12% think thei

. >> rose: are you concerned about the american economy? when you look at the american economy, are you saying "wait a minute." >> i think we wish you success. we hope you will do better. >> rose: i hear you. i hear you wishing, i hear you hoping. tell me what you expect. >> i think it's improving. >> rose: the u.s. economy? >> i think so, yes. that's what i kept hearing from many specialists. >> rose: at the security and economic dialogue and elsewhere. >> elsewhere, yes. >> rose: what you're hearing is that america's economy, while china... china's rebounding. >> many people believe that in the fourth quart torre session will sort of gradually.... >> rose: in america or around the world? >> in america. >> rose: the recession will... it will work out of recession in the fourth quarter. but the question is, you know, in the years that will follow, the growth will be slow. >> rose: let me suggest what i think you're saying. we will only invest in america as long as we think there's no better investment. if at any time there's a better place

we're talking about 1/6 of the american economy. that's pretty doggone important. you can't just do it in a partisan way. >> reporter: congress returns to once again take up the healthcare debate after labor day. kate baldwin, washington. >>> still ahead tonight, susan has the forecast. also the latest on a mass murder that has stunned coastal georgia. >>> wildfires not far from los angeles continue to force people from their homes. and what happens when budget cuts force schools to lay off janitors? that's coming up. they have alzheimer's and heart disease, diabetes and cancer. and they've heard that biomedical research offers hope, that it could control, maybe even cure, their disease. senator barbara mikulski understands the importance of innovative biomedical research, for patients, their families, and our economy here in maryland. call senator mikulski today. tell her, thanks for protecting the promise of biomedical research and the maryland jobs it provides. it's not just the future, it's life. >>> check on headlines across the nation takes us to california,

the breadwinners themselves and their families and how that has grown with the growth of the american economy. american foreign trade to cite a statistical the goods and services we buy and sell abroad has leaped from about $400 million in 1970 to over 3 trillion now as companies american and foreign compete. they need people to carry their banner and build business far from home. you've not heard the word reloville because i made it up. it is about workers and families frequently relocating, they are see real long-distance movers. the word relos originated among agents who specialize in catering to them. relos tend to roast between moves in reloville and upscale suburbs many catering primarily to them near cities where fortune 500 companies put plants and offices. the summer white here in fairfax virginia and montgomery county maryland many are outside atlanta, dallas, houston, denver, raleigh, charlotte and a few midwestern cities like chicago, columbus ohio, minneapolis and indianapolis. fortune 500 companies recruit mostly they're real those from state universities. disproportionately fro

now i'm all about the american economy, but i'm also about making sure that people don't have bad mortgages, and that this country digs itself out of a recession so that we don't go through this again. >> yeah, but the point is, they've already got four federal agencies that regulate these banks. what makes us think a fifth regulatory agency is going to change things at all? >> we're obviously getting their attention by putting in some punitive repercussions here, so we're all here talking about and we got people's attention. >> you know, consumer protection, steve, they already have consumer protection. and the federal reserve is going fight the administration tooth and nail. i want to ask you, what is the state of play between mr. bernanke and mr. geithner on this consumer protection agency. what i gather is bernanke is against it and not relenting. >> you've got that exactly right. and bernanke to nurse these big banks back to health as i think all of us as taxpayers and shareholders should want to do. do we want to be punitive on the banks, or do we want them back in good health? they p

i get the sense that the american economy is like a rocket on the launch pad. countdown and ignition and before the real liftoff has begun. what if america is stronger than the doubters would have us believe? more innovators, more adaptable than even president obama believes we are. michael darta is a believer, he put out a note today saying the new ism manufacturing numbers that came in and lifted the markets, they promise the economy will grow better than 3% next year, that would be half gain higher than wall street expects. 3% growth in gdp would be more than $400 billion in extra economic activity next year, and the stock market is is the ultimate leading indicator. today surged up past that 1,000 mark closing at 1,002 and change. the nasdaq cracked the 2,000 mark jumping 30 points to 2008. and the dow jones fired off another nice triple digit gain up 115 points or so to close up near 9,300. dow 10,000? here we come. now a couple of recovery killers loom. factors that could render us tax americana. and they boil down to this. obama-care, obama tax increases

the breadwinners and their families and how that has grown with the growth of the american economy. american foreign trade, to cite a statistic, all the goods and services that we buy and sell abroad, from $400 billion in 1970 to over $3 trillion now. as companies, american and foreign, they need people to carry their banner and build business far from home. you have not heard the word relosville because i made it up. they are cereal long-distance movers. the word relos probably a originated among suburban real estate agents who specify in catering to them. relos tend to reduce the tween moves in relovilles, suburbs catering to them near cities where fortune 500 companies put plants and offices. right here in fairfax, va. and montgomery county, md. many are outside, outside atlanta, outside dallas, houston, denver, raleigh, charlotte, and a few midwestern cities like chicago, columbus, all i/o, minneapolis and indianapolis. fortune 500 companies in crude -- regret most of their relos from universities. maggie started in carbondale, ill. at a time with relatively low unemployment but

think there's a more profound test facing this country-- and that's the enormous resizing of the american economy. by resizing, i'm referring to the need to bring us economic capacity down to a much lower level of long-term domestic demand. choose just about any industry in america and you will see too much capacity. our debt excesses enabled it and now our debt destruction will require the elimination of it. >> paul: recapping today's market action: investors sell on caution ahead of tomorrow's employment report. the dow dropped 24 points and the nasdaq lost almost 20 points. to learn more about the stories in tonight's broadcast, to watch our streaming video and to take part in our daily blog, go to "nightly business report" on pbs.org. you can also email us at nbr@pbs.org. >> susie: and finally tonight, a taxi driver in vermont is giving new meaning to the word "fare." he let's passengers pay whatever they think is "fair." not surprisingly, the name of his cab company is "recession ride." since the "pay what you want" service began in june, driver eric hagen says he hasn't been short-changed,

american tourists being held in iran. >>> workers wanted. in a troubled economy, one business that'still hiring. >>> and c'est la vie, why a treasured tradition in france >>> and c'est la vie, why a treasured tradition in france could be coming to an end. captions paid for by nbc-universal television >>> good evening, everyone. as the american troop presence in iraq slowly winds down, there was stunning news today that may write the final chapter to operation desert storm. that was the first gulf war in 1991. it took just six weeks for american and allied forces to drive iraqi forces out of occupied kuwait at a loss of 148 american lives. but for 18 years the fate of one naval aviator who never returned from the war's opening salvo has hung in limbo amid questions of whether he was killed or captured. tonight the mystery of what happened to lieutenant commander michael scott speicher is solved, and for his family the anguish of not knowing is over. our pentagon correspondent jim miklaszewski has the extraordinary story. >> reporter: in the hours of the first gulf

the president's advisers know, convincing the american economy that they are getting better trying to push the health care plan with waivering support. john cochran is in washington. >> reporter: this weekend was set aside to take stock at the white house. with administration officials, including the president and vice president, reviewing their progress over the first six months, which is ending in what mr. obama said better than expected economic news. >> many economists suggest that part of this progress is directly attributable to the recovery act. this, other difficult and important steps that we've taken over the last six months have helped put the brakes on this recession. >> reporter: obama's aides hope headlines like this rebuild waning public confidence in him. especially in handling the biggest priority health care. our poll showed 57% liked his approach to health care. in july, approval dropped to 49%. the white house hopes good economic news will spill over into building support for a health care bill. >> good economic news certainly can improve the public's mood, the pre

know, after the incredible catastrophe with the housing bubble that virtually destroyed the american economylenders have now gone back to traditional down payment levels of 10 to 20% which you know, about puts more responsibility back on the lender and the borrower, a skin in the game. >> you have a skin in the game. >> what's the down payment for fha loan? 3 1/2%, they're simply injecting the same moral hazards that led to the catastrophe of the nine months. >> the worst part of the anniversary you may have thought when we bailed out the excesses, it's part after crazy bubble. if you look at fannie and freddie, a lot of losses by the obama mortgage modification plans. if you look at ginnie-- >> is it the obama-bush plans? >> and on the ginnie mae side your subprime market, we realized it was a disaster, moved on to the government programs. >> another part of it, too, you'll remember there were all of these evil, terrible, private sector firms that used a lot of lefrnl -- leverage during the bubble and the fha today has a leverage ratio of 33-1 and it's a reserve fund which is bear-stearns l

the consumer is the heart and soul of the american economy. >> there are signs point to a stabilizing home economy. we're expecting numbers on existing home sales. in the long term, investors will likely to cash in until spending increases. pamela brown, abc 7 news. >> thank you. >>> more people cannot afford to keep their homes because of rising unemployment. it is the number one cause of foreclosures. payrolls fell. nearly 2 million people will lose their homes this year. that is up from 1.4 million last year. homeowners in foreclosure may still be able to keep their homes under a new bill that would allow banks to rent out foreclosed properties for up to five years. the house approved it before their break and is now awaiting in the senate. >>> charities that depend on car donations say the cash for clunkers program is hurting them. people are looking for new cars, and donations are down. last year, nell would received 7400 cars. this year, donations dropped. >>> the number of workers handling the cash for clunkers transactions has been increasing. there have been incentives up to

. >>> amid yesterday's fresh government numbers showing the decline of the american economy has slowed, the obama administration a finds itself in a delicate balancing act, trying to highlight progress while acknowledge americans are are still in bad way. mike viqueira has more. >> reporter: good evening, lester, with the unemployment rate approaching 10%, the president and his aides are not trying to call this mission accomplished, at least not yet, but they are taking credit for policies they say helped to stop the slide. the president and first family this morning on their way to camp david. amid signs that the economy might be turning around. in his weekly address, the president credits the $787 billion stimulus. >> this and the other difficult but important steps that we've taken over the last six months have helped put the brakes or this recession. >> reporter: also today at the white house, a second day 6 cabinet meetings taking stock after six months in office, but after a week of polls showing growing public unease about the economy and job number, republicans continue on the

i think we're seeing the inherent resilience of the american economy and the american people. >> reporter: as the white house trying to paint a rosy economic picture they're also carefully try to go manage expectation. timothy geithner says americans face tough choices ahead in order to reduce the federal deficit, and larry summers, the president's top economic adviser won't rule out a middle-class tax increase down the road. >> no taxes for middle incomes -- >> there's a lot that can happen over time, but the priority right now, so never a good idea to absolutely rule things out, no matter what. >> but an economic rover may be further away than the white house hopes says joseph steiglich. >> i think it's too premature to be confident about a recovery and very premature to be confident about a robust recovery by early next year. >>> kate bolduan joins us from the white house. republicans and democrats are at odds about the economy, is there any common ground that they agree upon today? >> reporter: well, following reports that more than a million americans could lose their benefits by the

>> what is to the american economy? >> yes. >> economic nationalism. >> the work force. >> oh for the work force? , john, i will be honest, i don't have -- i mean i don't think education is the answer. i believe the divides united states has to make itself as a nation, separate from other countries because, quite frankly, if you want to maintain the highest standards on earth, you cannot have cheap products coming in and all your jobs going out. >> what about -- what about ross perot and what he had to say. >> ross perot was very true when he said you can get workers for $2 a day in yucatan and that is where they are going. these white collar jobs. >> folks at wal-mart -- >> they are all sure -- >> they will be at your door saying i want my cheap clothes. i want my computer, laptop. >> they are all made in china. yeah. the salesmen will be in wal- marts but they are all made in china. >> that is where education comes in. more education you have the more choices you have in life. just to re-- repair those computers. >> e

the economy, north american health and security, and energy, environment and climate change are the three broad issues. on the economy, because of canada's strong record on financial regulation and fiscal management, we provided an informativion to these meetings. we continue to emphasize the countries must strengthen financial regulations institutions, continue to implement time the economic stimulus, and maintain open markets to resist protectionism. on north america health and security, we talked about our shared an effective response thus far to h1n1. it is a cross border threat to all of us. the excellent cooperation among our three countries helped to manage the initial outbreak. we will continue our cooperative efforts. on security, canada recognizes the courageous commitment of president calderon and taking on the drug traffickers. we are supporting these efforts as it is a shared challenge for all of us in north america. also, on international peace and security, canada supports ongoing efforts to find a peaceful resolution to the political crisis in honduras. we must restore bot

on the concept that as a country what the president said, health care costs are crushing the american economy, that is true. we need to have cost containment and down the cost curve. we were one of the first in line in that process, and joined with a number of birds in a coalition as part of our contribution. we pledged that we would support comprehensive administrative simplification. from that time, it was in june, we were working with various committees on capitol hill and as all the bills come out, people will see that our commitment will be filled. we said it should not be a voluntary effort, it should be required. and it will be prior to proposals that will be moving forward on capitol hill. it is in the health committee draft, it is in the tri- committee drafts on the house side, and there will be more administrative simplification savings in the finance committee proposal. we have been working hard to contribute to that, hard to identify those savings. the only disappointing thing -- and i think that this is that disappointing associated with a whole issue of cost containment -- cbo c

don't blame any hoosier, any american for taking advantage of $4500 in free federal money to go and buy a new car. but is that really what it's going to take to get this economy moving again? i think, quite frankly, most americans know that the way to get this economy back on its feet is for us to put our fiscal house in order here in washington, d.c., and to give working families and small businesses more of their money to spend. >> where do you think your party is right now in the battle for public opinion versus president obama and the democrats? >> well, i think republicans are starting to earn back the confidence of the american people that we squandered really in the last 10 years. i mean, look, let's be honest. we didn't just lose our majorities in 2006. we lost our way. i mean, the american people saw a republican party that walked away from its commitment to fiscal discipline, limited government, and reform, and the american people walked away from us. we saw -- we saw in the last republican administration, you know, increase at the federal department of medication, the prescription drug entitlement and an administration that ended up taking $700 mil

established. >> right now for congress health care is front and center, but the american people's top priorities right now, the economy and jobs. joining me now cnn political editor mark preston, also april ryan. she's a white house correspondent for american urban radio networks. thank you both. treasury secretary timothy geithner is talking economic recovery and so is the former fed chair. listen. >> i'm pretty sure we've already seen the bottom. in fact, if you look at the weekly production figures in various different industries, it's clear that we've turned perhaps in the middle of last month, the middle of july. >> okay. mark, lots of talk, but do the numbers add up? do they show a recovery? >> you know, don, i'm certainly no economist. but if you are to believe those such as alan greenspan who says we have turned the corner, you know, perhaps they are right. but you know, for the average american, when you talk about growth in the american economy that doesn't necessarily mean jobs. and we all know that jobs are a lagging indicator, so even administration officials today were saying that while things are on the

established. >> right now for congress health care is front and center, but the american people's top priorities right now, the economy and jobs. joining me now cnn political editor mark preston, also april ryan. she's a white house correspondent for american urban radio networks. thank you, both. treasury secretary timothy geithner is talking economic recovery and so is the former fed chair. listen. >> i'm pretty sure we've already seen the bottom. in fact, if you look at the weekly production figures in various different industries, it's clear that we've turned perhaps in the middle of last month, the middle of july. >> okay. mark, lots of talk, but do the numbers add up? do they show a recovery? >> i'm no economist but if you are to believe those such as alan greenspan who says we have turned the corner, you know, perhaps they are right, but, you know, for the average american when you talk about growth of the american economy, that doesn't necessarily mean jobs, and we all know that jobs are a lagging indicator, so even administration officials today were saying that while things are on the upswing and they're hap

the concept that as a country what the president said that health care costs are crushing the american economy are true. we strongly believe we need to have cost containment and bend the cost curve. we weren't the first in the line there. in the process we joined with a number of other groups in a coalition. and as part of our contribute, we pledged that we would support comprehensive administrative simplification. from that timet that was in june, we have been working with the various committees on capitol hill. and as all the bills come out people will see that our commitment will be fulfilled. we said it shouldn't be a voluntary effort. it should be required. and it will be part of the proposals that will be moving forward on capitol hill. it's in the health committee draft, it's in the try committee drafts on the house side. and there will be even more administrative simplification savings in the finance committee proposals. we've been working hard to contribute to that hard to identify those savings. i think the only disappointing thing, and i think this is a disappointing thing associate

american businesses. we are disarm. this doesn't do anything to regulate the emissions in china, india or other countries so why uni unilaterally disarm our own economyhout doing other things. host: we could cut way back and china and india could step up and we could have the same amount of global warming only putting american manufacturers at disadvantage. it is going -- >> more jobs there and less here. host: they are considering some sort of modified proposal on capitol that would maybe not focus on cap and trade so much as focusing on pushing people to find more renewable energy sources like wind and solar. we will see if they come up with a compromise. thanks for being here. >> thank you. appreciate it. bill: i wish i were anywhere but here file will is this. that plane should be flying, folks, not bobbing in the water. megyn: hitting the stores, spending cash. new retail numbers in. the news is not god. what does it mean for the supposed economic recovery? they say the recession is over. ♪ ♪ i'm cool like that, i'm cool like that ♪ ♪ i'm cool like that [ female announcer ] there's a smarter, cooler way to get your clothes brilliantly clean. and

economy. the collapse of american manufacturing left more than a psychic need, however. it also left a vacuum in the economy which the non-good producing service industry rushed to fill. according to a 1992 "new york times" story, quote, there were more jobs created in new york city than the 1980's overwhelmingly high skilled high-paying there are people in buffalo, the state's largest city. we became a nation of middle managers of bankers and bureaucrats, of adjustors, counters and waitpersons and drug dealers. from the importer to the distributor to the guy on the corner. peter reuter who helped me with my article has made a career out of examining economics of the local businesses. one of his most startling observations is the coke trade indeed in the entire drug trade is essentially a service industry because the street price of a dose of cocaine is many times higher than the cost of nearly manufacturing. as with any detail good some of the excess covers the seller's profit. some covers what accountants call transportation costs which much more goes to the disking pro

not talking about the value of this program to middle income consumers, to a key part of the american economyauto industry, which has lots of subsidiaries, that contributes to making cars. i think it's good news and yet, you guys are like, oh, no, anything obama, we will put down. >> it defies all laws of economics t isn't as if the cash has arrived by stork. this cash is coming from other people who pay taxes. it's real cash. so what you are doing is taking the money out of the pockets of some workers and putting it in the hands of others. it is a transfer of money. >> it is known as a stimulus. that's the whole idea, charles. >> you keep it on the road out of recession. bret: i want to wrap this up. >> you can call it a banana, it won't make any difference. bret: what about the administration taking that and saying wait a second, if the cash for clunkers doesn't work, how does 1/6 of the economy get handled by healthcare by public option? >> i agree. steve makes the right point. if you say these guys didn't understand how popular this program was going to be, and therefore managed it badly,

economy worse. some optimism, 58% of americans believe economic conditions will be good one year from now, 40% say they will be poor. >>> the obama administration has said the economy is improving, but deutsche bank is predicting by trouble in the housing market. cnn's christine romans is here to explain. how does this affect everybody? >> we know in the economy, many people think the free fall is over. but this shows you the house is still a very big question mark. this report shows the number of homes that it expects will be under water, the number of homeowners under water on their mortgage by the time there is a recovery. right now they say there are

>> we are talking about one- sixth of the american economy. this is an important thing. both democrats and republicans -- the one reason i decided to leave the group is because i do not think they have given the democrats -- i do not think the democrats have given senator baucus a lot of flexibility to put something together. many are insisting upon a government plan. i cannot go for that. i do not know any republican who is for that. they seem to have some sort of a version of an employer mandate. if they do that, guess who gets hurt the worst? it will be the low income worker -- there will be a cut in pay, or they will lose their jobs, or business will go overseas. they are doing everything they can to push as many people into medicaid. some of the groups have said as many as 190 million people will be pushed into medicaid -- 119 million people will be pushed into medicaid which would be disastrous. what they really want to get to is to a single payer system or socialized medicine. that is what the democrats are all about. i cannot support that. greta: in terms of nego

part of bernanke's job will be to assure them that he has a policy that will keep the american economy relatively inflation-free, and protecting the value of the dollar. because if they think that we're going to have inflation if he's going to bow to political appreciater and wait too long to tighten credit, or if they think he wants to let the dollar fall rather than raise interest rates, they may look elsewhere to put their savings, and that may force higher interest rates here, and that would make the cost of capital more expensive, it would make buying homes more expensive, and that's something he wants to avoid. >> woodruff: ryan mcginnes in, as someone who watches the budget very closely, the fact that the federal reserve has essentially gotten into fiscal policy making, it's been the fed that is putting out what, trillions of dollars over the last few months to try to fix what's going on. >> that's right. monetary policy and fiscal policy are now more combined than they have been. and chairman bernanke has been stressing the for stands of responsible budgeting, and sustainant in

and essentially big brother will now take over 35 percent of the american economy, which is the healthry. >> proponents of the legislation say the goal of the measure has been lost in the political battle. >> republicans bring to this an effort to delay and derail the process, and to turn the most desperate domestic policy crisis in our country into political theater. >> ultimately, the issue comes down to votes. many elected officials that will cast the votes have not eb read the 1000 page legislation, keeping real progress from happening. >> there is no coverage of psychiatry in the bill, that used to not be covered. the federal government used to not require the psychiatry be covered. now that deserves national debate. >> so the debate, and the rhetoric continues. >> basically, a lot of americans are drowning. and we have to make sure that we hold them up. >> americans will have to come to a point where they are willing to take on difficulties, as well as benefits. i mean, they will have to be -- come to a point where they can be sceptical when someone running for office offers them

and the prize is a long-term impact on the american economy and on health care. >> yeah, but so far, it doesn't seem to be getting done that way. it seems to be filled with grand standing and rhetoric. in the end, do you think there will be a meeting in the middle? if so, how long do you think it's going to take to go there? >> there is cross eyed cooperation with people in both parties. senator mccain last week had discussions about how to move ahead in a way that is acceptable to the broadest spectrum to the american public and the public at large. one of the things that we've been concerned about is essentially the so-called public option was all about building a new federal health bureaucracy. we're very, very concerned. when you look at the budget deficits that we're running up, when you look at the costs, the office of management and budget at the white house has just released its mid session report. it's late, but finally came out recently. the mid session report shows that the budget deficits that the u.s. will be running on are going to accumulate to over $9 trillion. that i

>> well, we are talking about 1/6 of the american economy. this is a very important thing.look at bipartisan bills as somewhere between 75 and 80 votes, both democrats and republicans, and one reason i decided to leave the group of seven was -- well, there were a number of reasons. i do not think the democrats have given senator baucus very good flexibility to really be able to put something together. 80 of the top democrats in the house, are insisting on a government auction or a government plan. -- 80 of the top democrats in the house are insisting on a government optionçç or a government plan. i cannot agree with that. there is a job-killing part to the bill. guess who gets hurt the worst? it will be the low-income workers, or the business go overseas. let's be honest. it will kill jobs. -- the business will go overseas. some of the groups have said that as many as 190 million people, would be pushed into medicaid, which would destroy the public insurance industry and the whole program. what they really want to get to, and that is in increments, they want to get to a s

taking an ownership position in the american economy and really the global economy is an intelligent play. we would certainly tilt the portfolio towards value in small companies to do the best in this recovery. >> all right. thanks very much, gentlemen. when we come back on this jobs friday, question is who's hiring and who's firing in silicone valley? jim goldman is there with the lowdown. >> while many small businesses have gone away in this economy, an unlikely group of americans is going to an entrepreneurial boot camp believing that the worst is over. jane wells is on the small biz jobs picture only on "the call." at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free". the gold delt

they've lost the confidence of the american people after eight years of failed policies that ruined our economy and cost millions of jobs. now desperate republicans and their well-funded allies are organizing angry mobs, just like they did during the election. their goal? destroy president obama and stop the change americans voted for overwhelmingly in november. laura: tell us how this played, frank. >> i want to remind viewers is that the goal is to bring both lines over a 50. if it's a pro republican style ad then you want your side, against republican side to go over 70. that was a democratic ad. the democratic line didn't even climb above 50. the republican line was down around 20. i asked people after they saw it, how did you feel? notice on the right hand side of the screens in how slowly the lines go up. nobody likes the yelling and screaming. they want to know the details of the plan not who supports it and who opposes it. tell me the details and how it effects me. by the way, laura, calling these people an angry mob, i have been to these town hall meetings. these people are angry. they