half our college in the '90s, now pell grants barely cover a quarter.e a short time ago. >> it's changed dramatically. dorian warren, thank you so much for coming in and joining me tonight. >>> you can have the last word online at thelastword.com. you can follow my tweets and a quick plug, my new book is called "sister citizen," now, "the rachel maddow show" is up next. >> best thing about coming home from my vacation was seeing your book on my desk. it was a great present and it's a great read, so thank you for that. >>> and thanks for you at home for joining us this hour.

it would concern me if folks were advocating for reducing pell grants. it would concern me a folks were saying walk away from early childhood education. that is arguably the most important investment we can make. anyone, a tea party or not, who asks me to make this decision is, i'm going to challenge them every day. >> are you reaching out to members of the super committee? >> i have talked to all 12, had some conversations. this is an investment we have to make. those other countries we talked about are investing more, not less. and jobs are going to go to were the best educated workers are. we're not competing for jobs in our districts, state or country. we're competing with china, south korea, singapore. i think our children are as smart, creative, talented, entrepreneurial, as children anywhere in the world. i just want to give them a chance to compete on a level playing field. the brutal truth is that countries that are out- educating us today will out- compete as down the road. >> earlier today, you're talking about governor rick perry. you said yo

and the pell grant program will actually see a $17 billion increase over the next two years. but to pay for that increase in pell grants, the government is eliminating subsidized loans for graduate students. that takes effect in july of next year. >> and this is only the first wave of cuts that we're going to see. a bipartisan supercommittee of republicans and democrats have been tasked with finding even more places to cut another $1.5 trillion. wolf? >> there's going to be real pain in all these cuts. no doubt about that, lisa. thank you. the republican presidential front-runner at least for now stands accused of being johnn johnny-come-lately in the whole debt debate. and what's next for gabrielle giffords after her surprise appearance on the house floor last night. sanjay gupta is standing by live. we'll talk about her remarkable recovery from a bullet to the head. all new appliances. we'll go to the warehouse stores and pick out everything you want. the sinks ringing. hello? you think those guys have "everything you want? " consider this your wake-up call! only sears has

how important pell grants are to providing opportunity to young, talented people all across america to improve themselves through higher education. my grandmother was a schoolteacher. we called her little chief because she was only five feet tall but she commanded respect. and she commanded respect because she had character. and she told people in our family there are three priorities in this household. number one is education. number two is education. number three is education. and we got the message. i can remember fondly her telling us over and over, would yowhat you put in your head, no one can take away. they can take your property, they can take your wealth. one thing nobody can take from you is what you've done improve wriewr mind. that ought to be something that's taught in every household in our country, because it is central to america continuing to be a world leader. mr. president, the proposal that will be before us also creates a joint select committee on deficit reduction. as i've indicated, they have a goal of finding an additional $1.5 trillioin savings, but they're

i like pell grants but i was surprised that we added $10 billion to pell grants. cost cutting, i guess someone had not heard of that. you go through on page 14 and page 15 here, you see that there are no cost cuttings. there are increases every year. you look over at page 44-46, and there is no cost cutting. " we pay increases. that is not really savings. host: why did the cbo market as savings? guest: good savings. we have automatic increases. our baseline moves every year. it is one of the dirty little secrets in washington. when we say we are making a cut, we can actually decrease the amount of increase. host: that was originally on the table. guest: is automatic. 1974, and we did some research on when the automatic increases start? 1974. that was the year that cbo was created and that the cbo's rules were put in place so that they could say it decreased to an increase was a decrease. nobody else words like that, greta. there is not up family or a charity evening that does a decrease from the increase even though it is still increasing as a decrease. nobody doe

this is the portion of the budget that involves head start, pell grants. in other words, opportunity for our children, our smallest children, skeg, university -- success, university education for our college-bound students. it's the area of the budget that involves investments in clean energy, small business programs, to support the success of small business. involves job training that helps families adjust to a changing dynamic in the economy, and so much more. in this 18% of the budget, that is where the cuts will hit. and with the phase 1 required cuts, or title 1 cuts, in combination with the cuts under title 3, you have essentially a 15% cuts from the 2011 march c.b.o. baseline. now understand that baseline for 2011 is a very low baseline, much lower than 2010, much lower than 2009. it takes us back many years earlier. you already have a very low baseline and we're going to cut 15% more out of the core programs supporting the success of our working families, supporting the success of our smallest children, supporting the success of our college-bound c

huai is a fight for pell grants something that is actually a relatively small thing within the larger federal budget so important to african-american families? well it is important because we have a generation of professionals now who have benefited, like i have, from the pell grant program and we have a growing generation that wants to send their kids to school that are facing to the extent that they own homes and that they are facing lower equity in their homes against which to borrow to send their kids to school and for whom pell grants are really an important component along with student loans about the way that their children, their young people, can achieve in this century. so they look at the defense of something like that, like pell grants and the defense of social security and medicare and these basic safety net programs as a defense for a community that really struggles. so those are the questions that i think will be asked for 2012 and i believe that, think republicans frankly have missed the mark when it comes to reaching out to the african-american community. so for examp

the tea party wanted to walk away from boehner saying how could you guarantee pell grants -- >> pellnts are guaranteed here and social security and medicare is off the table, can't be touched. only dealing with the providers in medicaid. interesting view from you as progressive. congressman, i have to go. i know you're voting. >> wait until the smoke clears, look at the detail tomorrow. i'll be glad to share with anybody some of the details. we are going to put it up on my website. >> i am going to wait for the smoke to clear, i just don't want to be on fire when the room is smoked up. >> the greatest generation will become the default generation, we are going to move forward with the president's agenda. >> congressman fattah, thank you for your time this evening. >>> ahead, this round is coming to a close, but the bush tax cut fight is coming. will it be a winning issue? for the white house, senior adviser valerie jarrett will be here live. we are waiting for the house to vote on the debt. stay with us for full coverage. a vacation on a budget with expedia. make it work. booking a f

why as a fight for pell grants something that is relatively a small program within the larger federal budget, why is is so important to african-american families? it is in part because we have a generational professionals now have pen if it is like i have from the pell grant programs, and we have a growing generation that wants to send their kids to school, facing to the extent that they on homes, that they're facing lower equity in their homes against which the bar to send their children to school, and for whom pell grants are really important components along with student loans about the way it their children, their young people, can achieve in this century. they'll look at the defense of something like that, like programs, and the defense of social security and medicare and the basic safety net programs, as a defense for a community there really struggles. so those of the questions that i think will be asked in 2012, and i believe that republicans frankly have missed the mark when it comes to reaching out to the african-american community. for example, in the recent debt ceiling de

pell slammed a three-run home run to break a tie. dan runsler trying to fill jonathan sanchez's shoes in his first major league start. he did not make it out of the second inning. in 1 2/3 he gave up three runs and throwing a whopping 43 pitches. mike fontenot comes through with a clutch sacrifice fly to deep left center and nate schurlts were score off that to tie the game at four. that's how things stayed until the 11th and pablo sandovalig nod the strain in his shoulder. a mega clutch two-n homer over the wall in center. giants prevail, 6-4. while the giants day ends much better than it started, the -- this morning the team placed ace reliever brian wilson on the 15-day disabled list res active to august 16th. wilson is suffering from elbow inflammation. manager bruce bochy says wilson could be back as early as august 31st. the cups are back that day. more g-men news came out of the braves/d'backs matchup. all you need is an alex gonzalez in the third to put you up 1-0. one run was all that tim hudson needed. he struck out seven,

i was a pell grant recipient. i was a pell grant advocate. the reality of the cost of higher education for the populations you are talking about are simply too high. the solution will not come on the price side unless we agree to price controls which have all kinds of negative effects and i would not support government price controls. government cannot control the price of anything let alone something as complex as higher education. price controls would not be the right way to do agree on the way to do is to deal with it on the cost side. that will mean that the delivery model for higher education will have to. change we've got to have a more productive system of higher education meaning efficient but also effected, focusing on the learning outcomes that the public expects through this gal poll that we need to deliver on in terms of high quality learning that leads to a good job. this is part of our challenge for those populations you're talking about. the failure to deliver on that is going to impact our collective well-being and their econo

was out, people were really cognizant of the fact that they thought the president was fighting for pell grants. why is a fight for a program something that is a relatively small program within the larger febrile budget so important to african american families? it is important because we have a generation of professionals now who benefited net -- like i did, and we of a growing generation that wants to send their kids to school that are facing, to the extent they own homes, are facing lower equity in their homes against with which to borrow to send their children to school, and for whom pell grant are in a form component, along with student loans, about the way their children can achieve in this century. they look at the defense of something like that like pell grants and the defense of social security and medicare and basic safety net programs, as a defense for a community that really struggles. i think republicans have missed the mark when it comes to reaching out to the african- american communities. for example, in the recent debt ceiling debate, to hear the rumor mill of a gop stra

we need more children with access to quality education, and more students with pell grants and scholarshiportunities to go to college and those folks who reduce pell grabnts is not way to baerta better economy. we are not investing today, but where we need to go. but anyone who thinks we need less students to graduate from high school and go to college and fulfill the dreams and go to college and be a productive citizen, i will challenge it everyday. >> and education secretary arne duncan, it is nice to talk to you. thank you very much. >> have a great day. >> and that was of course a portion of my conversation with arne duncan, and joining me from the msnbc, grio.com, jeff johnson will be alongside me sunday when we host from detroit a stronger america making the grade, jeff, it is great to see you, and we have a big weekend ahead of us and we have the easy part to talk to the brightest minds and the passionate parents on the subject that affects everyone and certainly what to do with education. and what are you looking forward to sunday? >> well, i think that we will cover a great deal o

head start, pell grants, education, and defense. the second phase is the part that bothers me and really worries me, i'd say. the -- the proposal before us sets up a committee, 12 members of congress equal in terms of party allocation. they have the opportunity to deal with the problems that are left out of this and have this be a fairer proposal to get america back in balance and that is to deal with the entitlements and deal with the revenues, tax reform and entitlement reform, whatever you want to call it. but will they? and if they don't, if the two parties priorities, political and it'd logical interests are stopped in the committee and stop it from dealing in entitlements or revenues, then there is an automatic mechanism for cutting an additional $1.2 trillion to $1.5 trillion. and that all comes out of discretionary spending, defense and non-defense. now, some of my other colleagues have come to the floor to describe the impact on non-defense discretionary spending. really, most of what we know of government -- education, hea

pell grants, medicare not explicitly on the table unless extreme things happen.f i put on my political analyst hat, the big question is, where are these liberals going to go? my sense is when the campaign revs up, the presidential campaign will be largely about making whoever that republican candidate is look as extreme as possible and that will motivate the democratic base to get engaged if they can be engaged. >> okay. we'll be watching. jessica yellin taking a break from the heat outside. thanks so much. next here on reporter roulette. despite the debt deal and the president signing it this afternoon, the american economy not out of the woods yet. al alison kosick, the stock market plunged today. >> it did. the economy not out of the woods yet. what's interesting is it never was out of the woods. the focus of everybody just changed to the debt ceiling issues. and now that that uncertaincy is off the table, eve got more certainty on the debt issue, the focus is being put on the broader economy and wall street doesn't like what it sees. investors got spooked tod

. >> air lifting the casualties to hospital from the remote archie pell go. one british 17-year-old dead, four more members of the group injured, two of them severely. an expedition of british students on an arctic camping adventure of a lifetime that turned into a tragedy. it's the chance of seeing a polar bear in their natural habitat has one of the top attractions of trips here. nearly 3,000 bears roaming wild amidst the stunning landscape. blogs posted on the expedition website a week ago talk of an arctic adventure of sea ice and the polar bears they were dreaming of seeing. >> he was a fine young man hoping to go on to read medicine after school. >> the organization is based here expedition force young people for an experience of self-discovery in some of the world's last true wildernesses. >> holidays to zones like this where polar bears roam free are dangerous. but as the habitats are melting, encounters with humans are getting more common. >> if the pack ice has gone away and there's a lot of open water then they would have to stay on the land and th

sap pell flirted with taking the tight -- apple flirted with taking the title, but cinched it because stock lost only 2.8% of its value compared to exxon's 4.4% loss. >>> oakland police are confirming the arrest of one person in connection with the drive by shooting that killed a three-year-old boy. his death sparked an emotional outcry from the community tired of the violence. here is alan wang with the latest. >> we do have someone in custody. it is a person of interest who may be tied to the incident. >> they also have evidence that may tie this person to the murder of three-year-old carlos nava. but he stopped short of saying they have a murder weapon. >> right now our job is to tie the individual with ta critical piece of evidence. >> sources say that yesterday in pittsburgh oakland police believe they shot a person and another person in the car that killed the child. police issued a carefully worded statement saying now at least one of those suspects is not believed to be linked to the shooting at this time. the boy known as carlito was caught in the cross fire while he and his

oakland's paramount theater enjoyed an:00 pell law of "the star-spangled banner" and then got down tohey all raised their right hand and became new citizens of the united states. the ceremony included people from 109 countries. >> an exciting day. congratulations. >>> it turns out updating your facebook page or browsing the internet at work could be a good thing. researchers at the national university of singapore say it can increase productivity. cyber loafing, love that term, perks up people after long periods of work, and they say smart boss s who stop snooping around. excessive internet monitoring and surveillance only makes employees do it more. >>> larry beil is here now. >> looking nervous. it is called research. serious journalists. the pain continues for the giants in every way possible. there is brian wilson's elbow and eli white side's face. this is the wrong kind of facial. sports next. >>> good evening. the injuries have been mounting and the giants were worried about a possible crushing blow. brian wilson, the ace closer, has a sore elbow. he went to see noted surgeon ja

. >> reporter: he works three jobs, got a scholarship, a federal pell grant, just enough to cover this year's tuition of $11,124. he's not sure about next year. >> it's frustrating. >> reporter: it's a frustration felt throughout california's public universities, ten prestigious universal of california research campuses like u.c.l.a., and berkeley, and the sprawling 23-campus cal state university system. together they serve more than 600,000 students. this year, they had their budgets cut a combined $1.3 billion. charles reed is chancellor of cal state. >> the california prison system is funded higher than both the university of california and the california state university taken together. now, that is outrageous. >> reporter: at least 24 other states have cut higher education funds this year, but none as deeply as california. >> we've had to raise tuition twice this year, and we've had to reduce our operating budget rather significantly. >> reporter: at u.c. riverside, a brand-new, state-of-the-art medical school sits empty. there's no money to run it. >> i'm now sitting here having

there will be -- education will take big hits with the pell grants. to achieve the so-called cuts they are talking about would mean that a lot of people could be severely hurt. >> but we cannot sustain this level of debt forever. >> we cannot, but here is what is wrong -- we have to get control of the deficit, but we do not want to do anything on the revenue side. all of the pain is coming from the cuts. you are still leaving those tax cuts to the wealthy untouched, still living subsidies in for the oil companies untouched. everything to the poor folks and middle-class folks, they bear the brunt of it. >> met monday this week -- "my view is we should have a president who agrees to cut, cap, and balance the budget" -- mitt romney. >> he does not want to get too far out on a limb in the spirit in the grand bargain, there were revenue increases, closing loopholes that nobody wants to defend, except for grover norquist, who is having an incredible amount of power in this debate. there's a counter intuitive thing here. you have to spend some to get out of

the protection of pell grants, the protection of social security and medicare in terms of benefit cutse good things gregos world democratic values enshrined in this agreement. we did not get 100% everything that we wanted. that is true. and there is going to be some pain in the out years, especially if these cuts kick in acted the way at the moment they are envisioned. there's no question about that. we have to hope that the economy will recover so that some of that pain is lessened and we're able to grow again. now we can focus on economic growth in jobs, which is where we should have focused instead of this republican obsession with the debt. host: the "new york times" has this chart on how it would work. of the immediate cuts, what is the impact on federal workers? guest: we do not know yet. in some previous proposals, federal pensions and compensation were on the table. they are not enshrined in this agreement. at the starting gate, federal workers do not have proposed cuts that we are considering. that does not mean that that will not reappear in order to meet the target. but the

well, why is a fight for pell grants something that's actually a relatively small program within thefederal budget so important to african-american families? well, it's important because we have a generation of professionals now who have benefited, like i have, from the pell grant program and we have a growing generation that wants to send their kids to school. they're facing to the extent that they own homes, that they're facing lower equity in their homes against which to borrow to send their children to school. and for whom pell grants are a really important component along with student loans about the way that their children, their young people can achieve in this century and so they look at the defense of something like that, like pell grants and the defense of social security and medicare and these basic safety net programs as a defense for a community that really struggles and so those are the questions that i think will be asked for 2012 and i believe that -- i think republicans, frankly, have missed a mark when it comes to reaching out to the african-american community. so,

and we are here, a quiet, opiated, sia silent, and i went to do this to yell about the cuts in the pell grant. how dare we cut the program and to take the poorest students in the nation to say that it should be cutw more than that? weur give a.g. and other people low-interest loans better students pay six and 7%?e t but it is okay. we don't say anything. b so i love your imaging. take it to the streets. >> we have. and there has been protests. but we live in a nation that seems to be manipulated by mass media. >> i knew it would come back to mass media. >> unfortunately we are running at a time but once you layo blameth hour of the ofo mass media say keogh. >> people are activated and protesting that is why i have joined the freedom party to change the way education is beingou destroyed. >> thank you so much. thank you very much.we i appreciate your efforts. we are told the we're at the end of our time. thank you two leann four a day wonderful surviving and thriving event. thank you so much. we will see you then next time. >> >> this is a fabulous book year and doing a book signing afte

you're going to take people off of pell grants. you're not going to give them an education. they won't be able to find a job in the future. veterans coming home won't get the aid and assistance that they need. that will be worse in the future. all of those adds to the deficit, not create it or resolve it or make it less. so they're actually moving in the wrong direction. that's what we've been saying all this time. >> what was the president's response when you laid all of this out and said perhaps they need to reverse course and take on different policies and focus on jobs? >> he understands the importance of job creation, and i think he is going to try to pursue that. and what we have urged him to do is don't try to create little things that nibble around the edge of the problem. propose a solution that is on the scale necessary to solve this massive job crisis. if people don't want to support it, the american public will deal with them. but don't temper, and don't put forward a solution that you know won't solve the problem just because that's what the tea party say that's

been really concerned during the debt ceiling talks about the reduction -- possible reduction of the pellnts which is such an important measure for so many students around the country. so there was just a lot of concern because tuition has gone up tigly since we started college. so there's a lot of fear that our tuition has gone up, but our financial aid might get cut and we might have to rely more on private or other types of loans that really at the end of the day usually don't end up helping the students because they stay in debt for 5, 10, 15 or 20 years. >> daniel hernandez, thanks much for skyping in. good to see you. >> thanks so much for having me. >>> our chief medical correspondent dr. sanjay gupta joined me last hour and talked about gifford's appearance, as well. here's what he had to say about her recovery. >> just take it from a pure medical sense, about 75% of people who have this type of injury don't survive at all. so the fact -- that was january #th. seven months later, she's standing there, she's obviously conversing, interacting, recognizing her colleagues. saying shor

challengers here will be part of a legislative jobs agenda, push bid democratic leaders including nancy pell yogsy. >> where does job creation occur? small businesses and it occurs by paying adequate wages to people. >> and there are opportunities out there. all we need is one. >> democrats holding forums like this one tonight around the country and taking those comments back to washington in september. >> and a pittsburgh man convicted of killing the mother of his child will spend 35 years to life in prison. the sentence yens handed down against james mitch yes. he was convicted keller found dead in july 2009. mitchell is the son of the late porn king jim mitchell. >> and a judge ruled a special education teacher will stand trial on charges he raped a developmentally challenged teacher's aide. jerry johnson accused of attacking this 18-year-old woman who has a mental capacity of a 7-year-old. prosecutors say he is facing an enhancement of great bodily injure because the omwoman is pregnant. he has pleaded not guilty. >> and santa rosa police are facing new criticism over controversial photo

is understanding that we certainly need to make clear that social security and medicaid, veterans, pell grants, are protected fully under this bill, but when it comes to medicare, my understanding is that there will be an opportunity in here where they will look at medicare on the provider side. question becomes how can you basically separate benefits of medicare patients when you have the patient, the doctors, and the hospital, and you can't adequately separate. >> the time expired. >> we must be mindful of the medicare apparatus. >> gentleman from california. >> i reserve my time. >> gentleman recognized for two and a half minutes. >> mr. speaker, i did not come to washington to dismantle the new deal or great society or force more people into poverty. we need to avoid default an confront the challenges. that's why on saturday i voted in support for the reid proposal reducing our debt by hundreds of billions of dollars, but the bill before us today is unfair in so many ways. it puts the debt issue on the back of those who can least afford it and spares the wealthy. there's something f

stage in the sequence in this part of the rocket was an activated as a result it failed to ignite pell the progress out of the earth's atmosphere. teams have be sent to southern siberia out-i republic to look for signs of any wreckage amid fears toxic fuel may seep into the surrounding soil and water supply so far they've drawn a blank but already the repercussions of the bush mission are being felt much further afield with the question of how to resupply the international space station proving the most pressing. operational planners always keep in mind episode bill of the of the big cargo space ship not docking to the international space station for some reason so that go on board has enough of water and food supplies to survive on for another three or four months until their. cargo spacecraft arrive to the space station time then maybe on the side of ross cosmos russia's space agency but the loss has still raised significant alarm bells this all use a rocket carrying. a crew is slightly different but not more that much to. the progress they're going to want to make sure anything that

how dare we cut pell grants. how dare we take the poor students in our nation and say to them that they are going to be cut more than that. we give aig and other people low interest loans but our students still pay six and 7% on loans? but do you know what? it is okay. we don't say anything so my brother, you take that energy. i love your energy. take it to the streets. >> that we have been taking it to the streets and there have been protests. we live in a nation that seems to be manipulated by a mass media. >> i knew it was going to come back to the media. [laughter] thank you so much. unfortunately we are running out of time but once you lay blame on the mass media than we then we are all sacked. thank you. >> people are activated and people are protesting and that is why myself i have joined the freedom party. the freedom party has been involved in massive protest to change the way education is being destroyed. >> thank you so much. thank you very much. i appreciate your efforts. we are told that we are at th

. >> it was to save pell grants. >> pell grants.d thing. that's how i got through college, pell grants. i couldn't have gone. >> we can't afford the life we live in this country. we can't afford it. you have to figure out where you pull it. >> until you get government cutbacks you don't realize how much government you use. after congress enacted this debt ceiling they left town without ending a stalemate over how to fund the federal aviation administration. apparently this wasn't one of their priorities. it means thousands of workers currently are not being paid. construction projects are on hold and the government is losing millions of dollars in tax revenue. ted roland is live at chicago's o'hare international airport. he's been looking into this. ted, what does this mean, this faa budget not being passed? the funding not being authorized? >> well, basically you said it. it means that there are revenues that the federal government is not getting during this impasse, during this time where the faa has basically been destabilized, 4

is understanding that we certainly need to make clear, that social security and medicaid, veterans, pell grants are protected fully under this bill. but when it comes to medicare, my understanding is that there will be an opportunity in here where they will look at medicare on the provider side. the question becomes, how can you basically separate benefits of medicare patients when you have the patients, the doctors and the hospital and you can't adequately separate that? the speaker pro tempore: the gentleman's time has expired. mr. scott: we must be mindful of the medicare apparatus. mr. eier: i reserve the balance of my time. the speaker pro tempore: the gentleman from massachusetts. mr. mcgovern: i yield myself 2 1/2 minutes. the speaker pro tempore: the gentleman is recognized for 2 1/2 minutes. mr. mcgovern: mr. speaker, i did not come to washington to dismantle the nedeal or the great society. and i did not come to washington to force more people into poverty. i agree we must avoid default and confront or long-term fiscal policies. that's why on saturday i voted for the reproposal

the the ideological difference here my side says look now don't don't mess with students who need pell grants because these of these are students that business will need don't mess with seniors and medicare and yes medicare needs to be adjusted you know and these are what do you do with poor people who have been unemployed for ninety days one hundred twenty days you can't just cut them off and so what do they do. it's how you grow wow why do you do these and these are the the big issues in that frankly the are theological issues they are moral issue well as obvious they can be sure to hear your freddie and slippers right. now with the president obama just signed a funny bill he just. the second republican hostage taking three four weeks here has been resolved but it looks to me like we've gone from you know bill clinton said the era of big government is over and so we want from big government to small government you know hostage taking government government by hostages what's going to be the next to last this crisis the ones i see on the horizon the gas taxes expiring at the end of sep

what do we cut, defense, food stamps, education spending, pell grants? is it social security? is it medicare? do we raise taxes? if so, on who? this debate's not going anywhere. it's going into this committee of 12 and then will come back, they have to vote again this year up or down, then off to the campaign. >> as of right now, 48 senators have voted in favor of this legislation, 16 have opposed. they need 60. that's the threshold in order to get it passed. we expect that will happen very soon. i want to bring in alison kosik. how is wall street reacting to what's going on in washington? >> reporter: you're not seeing the positive reaction you'd think you would see. the market's been lower all day and the dow down about 94 points, the nasdaq off about 20. i've been talking with traders. they're surprised that by getting this uncertainty about a debt deal off the table, it hasn't created a different reaction. there was the expectation we would see stocks at least in the plus column. we're not seeing that. i think what you're seeing is investors really worried about the broade

the good news in all of this, the $22 billion saved, $17 billion goes to protect pell grants.a big deal. for many students, though, these changes are very concerning. >> our students do borrow a great deal of money, probably close to greater than 80% of our students borrow student loans to attend law school and in some cases they're borrowing more than $70,000 per year, so it's already a huge burden on them. >> when i get done with school and have to face repayment of those loans it could affect me to the tune of several,000 dollars. >> i'm totally relying on the financial package i receive and it's very generous. if it wasn't for those packages, i doubt i would be able to come here. >> reporter: if you're keeping up with all of this, it kicks in july 1st, 2012. what happens to prieshts loans that parents take out as we watch to see what happens with the credit rating. kyra? >> we're watching it, george, thanks. if you're a student or graduated it can be tough to find a job but now is your chance to be soap and third. you can give your 30-second pitch right here on air. tell u

in 5,600 feet of water, deeper than the bp pell, other companies have also set their sights on the rig. the iadc has held numerous talks with cuban oil company, kupet. >> they're providing seven wells over the next two to four-year period. >> estimates for the oil shore reserve range from 5 billion to 20 billion barrels of oil. foreign oil companies, none from the united states, have leased 21. in the wake of the gulf spill some in florida are worried about cuba drilling so close to home. >> ultimately if there is a spill, say, in a cuban operation, its impact would be fully felt by the entire gulf region, actually the entire eastern seaboard potentially. there's not a lot we can do about it. >> for the iadc it's time to work together to prevent spills and quickly tackle disasters. >> with cuba drilling 40 miles from key west, we can't change that distance, so we better take a look at our attitudes. >> reporter: the u.s. trade embargo prevents american oil companies from operating in cuba, both in terms of exploration and eventually providing equipment in the case of a spill. the resul

he hasn't championed any programs during his campaigns ge george bush when he ran, pell put into effect perry was basically happy to adopt a lot of programs, none of which were his own, so when you look at credit, he really doesn't deserve any. >>> we'll leave it there, ezra klein and chris bell of texas. >>> a remarkable story. the animals seemed to anticipate yesterday's earthquake. what did they know that we didn't? this is "hardball," only on msnbc. [ artis brown ] america is facing some tough challenges right now. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy. >>> relatives of 9/11 victims were in washington today to meet with attorney general eric holder, following allegations t

the top stout pell consumers bureau remains empty.nd the med of industry and security at the commerce department. both of those posts were finally filled through recess appointments last year, but it's only gotten worse. this week white house officials said they need tim geithner to extend his term, in part because republicans would filibuster a vote on his replacement. you don't try to shut down one of the most important jobs on the president's economic 25e78. the solution is pretty simple -- senator reid and president obama should call the senate back in session now in this hot august summer. they should refuse to adjourn until there are votes on all these gnomes. they can use quorum calls, break the silent filibuster, and they can keep every member working seven days a week and refuse to adjourn unless it's for a real old-school recess, when recess appointments are on the table. just imagine the president speaking to the nation about making government work again instead of pleading for compromise with his tormenters, imagine him se

investments up front in the cuts that are launched initially, and the trillion dollars like the p pell grants, and creates a firewall that insures that savings are gleaned not just from discretionary cuts, and they have a view and it has been expressed that we need to take a balanced approach going further as we seek deficit reduction. that balanced approach would include revenues. >> you spoke about job creating measures, and is the president still committed to doing that? >> the president is still committed to doing that. the president publicly talked about an eb extension of the payroll tax cut as part of the big deal, and that's not the case in the deal that is short of a grand bargain, but there is no question that he will continue to push for this, and he will make the argument that it's absolutely essential to continue to put extra money in americans' pockets, as they deal with high energy prices and food prices, and we certainly look forward to having that debate in the fall, and he will press very strongly for it. i note that there was broad bipartisan consensus at the creatio

in particular, the piece of the department of education budget to watch very closely are pell grants, which are eating up a larger and larger share of the federal education pie as more students go back to college to boost their skills during the economic downturn. jobs require education, and the cost of college continues to increase. we sort of have a perfect storm happening on pell grants and it is going to be hard to get increases for anything else if we're going to get that program stable. >> i think anything will be a politically hard sell given the climate we are in now. >> he talked about education being the key jobs, but in this economy, jobs are not available whether you're educated or not. >> i think it is a great rhetorical device. it makes perfect sense, given what we're looking at now on the economy, but i do not know if he is going to be able to make the sale in terms of convincing anyone in congress that this kind of investment is going to be what they need to make. >> let me also ask you about the reauthorization of the child left behind. he is very critical of congress

bush were in for president, craig, in 1999, 20 on 00, pell expressly ran as a compassionate conservativeot newt gingrich, he was not goinging to the angry white guy. he represented a break from that, and it works effectively. he was obviously a two-term president. rick perry is not modifying his version of conservatism at always. so i there there are definite differences. perry is much more unapologetic on his views. a this moment i think that plays well. the question is how would that play in swing states where perry has a great message on jobs, but would voters even get to that point in the conversation, because they are so overwhelmed by his sort of cowboy booted persona, craig? >> thank you solve so much. >>> we have some breaking news we want to get to right now. breaking news in tampa, florida. police have revealed details there about a 17-year-old boy, a 17-year-old boy who was allegedly planning to blow up his high school on the first day of school. that plan, according to police there in tampa was to set up an explosive dice at freedom high school, the school that had expelled h

grant program the pell grant works. [applause] and we want to make sure our trade policies actually don't export more jobs, that they actually enable us to provide product is here that we can send overseas that other people will buy. we need to promote things that are made here in america. we need to be reminded of something the president did. he took very bold action by making an investment and working with the big automobile corporations. and some of you may say well, i don't fully agree with all of that but you know what, let me tell you, those autoworkers right now back on the job they are mighty proud that they have a good paying job the assembly lines are running and producing energy efficient vehicles and people in those towns that were pretty much wiped out in the last few years are now back on-line consuela and now we have more autoworkers working on different shifts and three or four shifts in the day now that's the story of to tell we are not going to let these jobs overseas and invest right here in the usa i