Transcripts For CNN The Situation Room With Wolf Blitzer 20090721

not forget that. in the meantime, let me take you now to our nation's capital where none other than wolf blitzer is standing by with the situation room. rick, thank you. happening now, president obama under pressure. his health care plan is under fire but he won't let his plan go under. he is employing an old tactic to blast critics. south carolina's governor dodged by questions over his cheating and had his lying. we will have the latest, including this, "where is your wedding ring" he was asked. wait until you hear what mark sanford does. is a harvard university professor who is one of the most prominent scholars in america the victim of racial profiling? henry louis gates has a mug shot after being identified as one of two black males forcing their way into gates' own house. i'm wolf blitzer in cnn's command center. for breaking news, politics and extraordinary reports from around the world, you're in "the situation room." right now, president obama is defiant, dismiss sive and determined. his plans to reform health care have come under a barrage of criticism and a growing number of americans are skeptical. but the president insists now is the time to reform a broken health care system so he is pushing back very hard against his critics and he is urging -- let me quote him now, "let's fight our way through the politics of the moment." go straight to our white house correspondent, dan lothian. got the latest for us in this battle. dan? >> reporter: wolf, senior administration officials saying there is a lot of work going on behind-the-scenes, reaching out to both republican beens and democrats on capitol hill. in fact, some of those blue dog democrats were here at the white house this afternoon meeting with the president. they say they meet with had him for about an hour, talking about cost containment, how to also pay for this health care reform, even as the president continued to use strong language as he prods congress. as the clock ticks on health care reform, president obama again hit the rewind button and played back his talking point, a shot at his critics. >> opponents of reform would rather score political points than offer relief to americans who have seen premiums double. >> reporter: a case for reform. >> that will bring down long-term costs, expand coverage and provide more choice. >> reporter: and powerful endorsement. >> the american nurses association and the american medical association who know our health care system best have announced their support for reform. >> reporter: little has changed in the president's message since returning from his overseas trip. >> the status quo on health care. the status quo. >> reporter: just about every day since july 13th, mr. obama has made public remarks on health care reform but are his comments helping to move the ball any closer to the goal line? >> very little indication that all of the rhetoric is moving things positively in his direction. >> reporter: if mr. obama is paying any attention to the polls, the latest one from usa today shows he is losing public support. the president's approval on health care reform has dropped below 50%. >> but i think what's driving him is partly the people are seeing all sorts of plans being presented. they all seem to have high price tags, even sticker shock. >> reporter: but no surrender from the white house. spokesman robert gibbs says the august deadline was meant to prod congress and the president expects results. tomorrow, the president will be holding a prime time news conference. we don't expect to hear any new language from him. now, david gearingen points out the white house is in a difficult situation here because if they continue to push that august deadline then they could risk showing the american people that they are trying to rush this through. on the other hand, if they wait, they do stand -- there does stand that possibility that the entire health care reform process will unravel. wolf? >> a real dilemma for the white house right now. dan, thank you. this important programming note for our viewers, president obama will hold that prime time news conference tomorrow night it is expected to focus largely on health care reform, tomorrow night, 8 p.m. eastern. right after that by the way, cnn debuts "black in america 2," that starts at 9 p.m. eastern. stay tuned to cnn for all that. that is coming up tomorrow. president obama, the pentagon, even republicans like john mccain see a key victory. the senate votes 58-40 to stop production of the military def 22 fighter jet. the vote strips 1.75 billion dollars for an additional seven jets from the fiscal year 2010 budget, capping the number of jets at 187. president obama praises the vote, saying the extra money would have been an inexcusable waste. those are his words there are many supporters, especially among lawmakers from states were the fighter jets are made. many of them say continuing production will help u.s. security interests around the world. also regarding matters of defense, there is an idea from one senator offered as an amend tonight a key defense spending bill. the senator says it could help dramatically reduce violent crime but one opponent says it could, and i'm quoting now, "endanger the safety of millions of americans." let's go to our congress correspondent brianna keilar. she has the details for us. >> reporter: this is a must-pass defense bill and republicans know when it comes to guns, they can divide democrats. in he vermont, a 16-year-old can carry a loaded concealed weapon without a permit, but when a vermonter crosses into neighboring new york, home to some of the strictest gun laws in the country, that right evaporates. senator john thune, a republican from south dakota wants to change that he is pushing an amendment that would allow people with concealed weapon permits from their home states to carry their guns into other states that allow concealed weapons. >> reliable, empir ral research shows that states with concealed carry laws enjoy significantly lower violent crime rate than those states that do not. >> reporter: but new york's chuck schumer and other democratic senators representing states with large urban areas say changing the law will put americans in danger. >> tif the thune amendment say don'ted, this hypothetical vermonter would be free to stroll through central park or times square with a backpack full of loaded guns. >> reporter: despite a 60-vote majority in the senate, many democrats support gun rights, including senate majority leader harry reid, who says he will vote for the thune amendment. and like many democrats who will vote yes on this, harry reid is from a western state. he is from nevada, where there is a strong tradition of gun ownership and some pretty serious political consequences for bucking the will of gun right supporters and the national rifle association. and wolf, top republican and democratic aides tell me they do expect this will pass the senate. >> when do they expect the vote to actually happen? >> reporter: we are expecting this to be tomorrow, wolf. >> we will watch closely with you, brianna. thank you. go to jack cafferty now, you have "the cafferty file." >> standing by with yet another example of government transparency. not. using a cell phone while driving is dangerous. duh. but for some reason, the government didn't want the american people to know about this. the "new york times" reported this morning that in 2003, the national highway traffic safety administration withheld hundreds of pages of research on the hazards of cell phone use while driving. the former head of the agency says he was urged not to release this information so as not to upset members of congress who wanted the agency to just stick to gathering safety data. he says he was told the agency might lose billions of dollars if congress thought they were lobbying the states to crackdown on cell phone use while driving. critics say not sharing this information with the public has cost lives, lots of them, and allowed people to get used to multitasking while driving their cars. some experts consider this practice just as dangerous as drunk driving. researchers wanted to recommend that drivers not use cell phones, including text messaging, while driving, except in an emergency. they also warned that hands-free laws might not be the answer either, since it's the cell phone conversation itself, not just holding the phone, that can distract drivers. it is estimated that in 2002, cell phone use by drivers caused 955 deaths and 240,000 accidents. so, here's the question. why would the government suppress research about the danger of cell phone use while driving? go to cnn.com/cav er if t nchlt kn.com/cavcnn.com/cav -- caffer file and post comments. in 2009, the seven years, got to assume the use of cell phones while driving has probably grown. it seems to me i see more people on the phone when i'm on the road and so if 950-some people were killed in 2002, how many have died since then because of this? >> shocking. all right, jack, thanks very much. he is one of the most prom nent african-american scholars in america. his face is out in a mug shot. wait until you hear what happened to long-time harvard university professor henry louis gates and you decide if it was an honest mixup or a case of racial profiling. and dick cheney wants protection but was on the verge of losing it from the u.s. secret is service. president obama, president obama intervenes. and questioned about cheating, governor sanford seems stymied by this one. >> where's your wedding ring? >> huh? goes up your score goes down ♪ ♪ when you pay a little off it goes the other way 'round ♪ ♪ it's just the same for everybody, every boy and girl ♪ ♪ the credit roller coaster makes you wanna hurl ♪ ♪ so throw your hands in the air, and wave 'em around ♪ ♪ like a wanna-be frat boy trying to get down ♪ ♪ then bring 'em right back to where your laptop's at... ♪ ♪ log on to free credit report dot com - stat! ♪ vo: free credit score and report with enrollment in triple advantage. you know why i sell tools? 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[ gun beeps ] [ laughs ] i feel so empowered. power to the people! ha ha! yeah! the option to name your price -- new and only from progressive. call or click today. more awkward moments today for governor mark sanford when reporters asked him about his extra maritalle affair and asked why he wasn't wearing a wedding ring. in the first appearance in weeks, the governor tried to move past the discussions of the affair but reporters repeatedly returned to the issue. >> do you think your affair will always be a distraction? >> life and the choices that we make begin each day anew. store, is as much a distraction as you want to make it. i'm going to move on with my life. question from you. >> if it becomes apparent that if it is always going to be a distraction, would you then consider resigning? >> i turn it to you this way, have you made a mistake large or small in your life? >> i'm asking you. >> well, i'm asking you. i think we all do we all acknowledge that this has been painful, it's been what it is, but it is time to move on. and that's what i intend to do and i am here to talk to a lot of people about that. >> [ inaudible ]]. >> why are you wearing it? >> you are still married to your wife, correct or still going to argentina to see your soulmate? >> governor, how much time is going to be taken away from your job to try to fix things with your wife? >> um, if i didn't think it was more than possible to do great at both, i wouldn't be standing here. i have taken a couple of days with my wife, as you already know. i'm going to take a couple more days with my family at large beginning later this week or beginning next week, but i'm going to take a block of time, 'cause i think that that's important. and i'm going to be full bore in a daily basis. all of our walks of life on a daily basis trying to do the best job i can by the people that elected me to this role and do the best job i can by my wife and by my family. >> squarely trying to move beyond the affair. reporters, however, and others, obviously not going to let him act least not yet. let's move on right now to oakland, california, where today, voters are being asked to decide whether the city's medical marijuana dispensaries should pay more in taxes to help solve that city's cash crunch. it would be the first city in the united states to tax marijuana directly. go to cnn's dan simon. he is on the scene for us with the details. dan? >> reporter: wolf, when was the last time you what heard a business operator say they wanted to pay more in taxes? just walk into any medical cannabis dispensary in oakland and that is what you hear. this resembles a bank, except the greenment is cash. but it could be a cash crop for the city of oakland. how much more in taxes would you have to pay? >> i will pay between 350 and $400,000 in additional taxes every year as a result of the excise tax. >> reporter: most business operators wouldn't be too thrilled about that, but steve d'angelo says he and his lawyer came up with the idea to help oakland with its money shortage. the city's more than 80 million in the hole. >> we think it is appropriate to take some of our excess funds and circulate them back to the community in its time of need. >> reporter: so, out of that came measure f, approved unanimously by oakland city council, to let voters decide in balloting by mail whether medical cannabis should have its own special tax. to city leaders it is an absolute no-brainer. >> given that this -- the medical cannabis dispensaries are something that we have legalized in california, why not have the revenue from it? >> $111. >> reporter: to be clear, the revenue wouldn't be hugely significant, up to $1 million annually for the city, but the dispensaries also have another agenda. how much of this is are also about you and other dispensaries wanting to be seen as good neighbors and legitimate businesses? >> a lot of it is about that. we very much want to be accepted as a part of the community. we believe that we are a positive force within the community and we are always looking for opportunities to demonstrate that to our fellow citizens. >> reporter: and they hope that could lead to greater acceptance of medical marijuana everywhere. no formal opposition has emerge bud some drug fighters say it sends the wrong message. >> the tax says of a federally up lawful drug is just not something that the community should accept. >> reporter: but california has made marijuana legal, at least for medical purposes and if communities around the state suffer revenue shortages, it's clear the debate will continue. >> dan, other communities considering this idea as well? >> reporter: well, just look at the city of los angeles. there are more than 600 medical cannabis dispensaries in los angeles. there are more medical marijuana places than there are starbucks in the city of los angeles. so, obviously, the city coupe sill there, they are facing a budget shortfall as well in los angeles. so the city council is looking at maybe taxing marijuana as well and also a lot of discussion in sacramento about this, too, because obviously, the state facing enormous problems, we have been talking about it all day and thinking maybe they could get in on the action as well. have to wait and see. i guess the short answer is yes, they are considering it. all right. dan, thank you very much. a newspaper columnist says that democrats like president obama but don't fear him. they like him but don't fear him. if true, could that keep the president from persuading members of his own party to get behind his plan? and u.s. marines use explosives to blow up plants to make bombs and heroin. you will see how the u.s. military is battling a prime scourge in afghanistan, drugs. our reporter ivan watson is with the u.s. marines right now. it has been no secret, many states are hurting in this recession. just look at what is happening in california, as we just saw dan simon's report. many of those states are in the red and many need money and they need it quickly, which is why government auctions have become so popular lately. federal, state and local governments need the cash, consumers want to bargain and almost everything is for sale. here is cnn's alina cho. >> reporter: looking for a deal on a car? would you buy a used one from this pan? >> the average price is about $1200. >> reporter: the governor of new jersey. >> $ 500. $2,000. a lot of these cars are really more valuable than that. so people are take that opportunity to save money in a tough environment. >> reporter: new jersey is just one of many states holding government garage sales to make money at a time when they desperately need it. federal and local governments are in on the game, too. and almost everything's on the block. you can buy a salt spreader truck? who would want that? you would be surprised. watches, learjets, some of it seized, some surplus, all for sale. >> you can buy literally anything. you will buy a container of soccer balls. you will buy a disassembled mig jet. you will buy a boat. you will buy a car. >> reporter: government auctions aren't new, but in a recession, they are more popular. >> well, good cars here, they are dirty, they just need to be cleaned. >> the body of it is good. the paint is not chipped. the transmission and oil looks good. >> reporter: one drawback, you buy as is, no test drive. ten niche shah and diamond roughen are shopping for his first car. >> there is one in the back, a dodge, i believe, i like the color. >> are you kidding me? for a first car? he will taking any on the lot. >> reporter: if you can get it. bidding -- >> $1500 bid. >> reporter: can be fierce. >> there's been a couple of incidents where there was an actual fist fight, where two customers were arguing over a car. i personally had to break that up. >> reporter: this new jersey car auction raked in more than $153,000, bringing the state so far this year more than $2 million in auction sales. sometimes -- >> have busted car, stuff in the trunk. i had car with bullets inside, with other things inside. >> reporter: a little more than you bargained for. if you are interested in buying something from a government auction, a couple of things you should know. first do your research. comparison shop. with a car, for example, you can get a blue book. also, in your mind, saturday maximum bid and stick to it there is something called auction fever, and it is real. alina cho, cnn, new york. one of the most prominent scholars in the united states arrested, but when you hear what happened to harvard university professor henry louis gates, you may ask yourself, was it all just a big misunderstanding or was he targeted because he's black? and one of the washington's most famous landmarks goes up on the auction block. any takers? $p$p@pó÷wuuóuwuuuuuuuuu=g=g you are in "the situation room." happening now, survival stories, two offduty firefighters in milwaukee rescue two children and their mother from a burping suv. now, the father is speaking out about how his family made it out alive. also, u.s. marines are on a search and destroy mission in afghanistan, target egg the taliban's drug trade. we will give you an exclusive look inside that mission. and tracking trillions of taxpayer money used to bail out big banks. we will look at what it could mean for you. i'm wolf blitzer. you're in "the situation room." many people know him from pictures like this but not images like this one. long time harvard university professor, henry louis gates, one of the most prominent scholars in the country. but his recent arrest has inflamed a controversy. let's go to cnn's brian todd. he has the explanation. what's going on, brian? >> reporter: prosecutors and police in cambridge, massachusetts are now dropping charges against this famous harvard scholar. this is a case that has many around that area crying foul. the police are taking it back. >> the city of cambridge, cambridge police democrat have recommended to the middlesex district attorney that the criminal charge pending against professor gates not proceed. >> reporter: a call about a possible break-in brought police to the cambridge, massachusetts, home to the home of henry gates junior last week. the director of web dubois institute, founded an on line magazine and written several books on the african-american experience was returning home from china, where he had been filming a documentary. gates and his driver were trying to force open the door to his house which was stuck. a caller told police she observed what appeared two black males with one wedging his shoulder into the door as if he was trying to force entry a police report says gates initially refused to identify himself and when told authorities were investigating a report of a break-in, gates exclaimed, "why? because i'm a black man in america?" gates was ultimately arrested for disorderly conduct. the police report describes him as yelling loudly at the officer and being uncooperative. gates' lawyer told cnn that the professor was frustrated but not dell limp rent. >> the police officer said step outside. he said what? step outside. i live here this is my house. >> reporter: police say the eye rest had nothing to do with race. >> our position very firmly is that race had nothing to do with the arrest. >> reporter: but the incident left colleagues disturbed and neighbors puzzled. >> if a harvard professor is arrested breaking into his own home it has a certain comical aspect. >> heard it before. wonder would we be hearing about it if it wasn't such a prominent person? >> reporter: it is precisely gates' fame that that makes the arrest surprising. >> surprising because professor gates is one of our most distinguished, prominent and therefore, visible academic, not just the black academic, but in the country. >> reporter: a source close to gates tells us this afternoon that professor gates is outrage bud feeling better since the arrest thursday. gates told the "washington post," this is how poor black men across the country are treated every day in the criminal justice system. it is one thing to write about it he says, but altogether another thing to experience it. wolf? >> thank you, brian. talk more about this controversy as well as the bigger picture. joining us is a professor at georgetown university here in washington. also, the author of this brand new book entitled "can you hear me now?" thanks for coming in. >> thanks for having me. >> what do you think about this store tory, first heard this professor, professor gates, was arrested in his own house, what went through your mind? >> a stunning repudiation of everything for which professor gates stands. this man got a ph.d. from cambridge university in english. he was one of the first four people awarded a macarthur genius award. he was a stringer for "time" magazine, named one of the 100 most influential people by "time" magazine years ago and all over pbs and america. he is one of the most prominent members of our colleague y'allity as it were. i thought it must be a joke. when i found out it was real, it reminded me that african-american men every day are subjected to the arbitrary reprisals of the criminal justice system to which mr. gates, professor gates, has been subjected and i think representative and symbolic what brothers on the street every zra to deal with only when it hap n happens to a prominent person like professor gates does it shine a very powerful spotlight on a necessary evil that has to be exposed. >> you are a distinguished professor at georgetown university yourself. have you ever personally experienced anything along the lines of what professor gates went through? >> absolutely. when office graduate student at princeton university, i was driving home late night and pulled over by a new jersey cop who told me to walk the line. i said, sir, i'm a tee totaler, baptist preacher, i'm getting a ph.d. a princeton. he said, i'm a blanking president of the united states and made me get out and walk the line. prunchts speeding? >> not at off. >> saw me -- >> saw me and pulled me over. that is one of the experiences i have had with the police. >> what does this say about the bigger picture in the country now? >> they have to be washed out of the minds. the collective imagine nation of these people. and does make a difference. people stay is one isolated case. no it is not it happens constantly and repeatedly and routinelism unless it happens to a prominent figure like professor gates work he don't understand the consequences of it. he is shaken up himself, writing about it thee orizing about it from the ivory tower as we all do to get down there in the mud and the slough and feel what every day brothers and sisters feel that is a different story. it means we must deal with this. we are not in a postracial society as many tray to tempt. >> if he were a white professor at harvard, coming back to his home after an overseas trip, a cab driver, the door doesn't open, goes in the back to find out feck get into his own house and the neighbor sees that going on what do you think would have happened? anything different? >> you know, look, obviously, people would be suspicious, but the fact a black man, neighbors don't know him, suspicious and interesting to begin with. in his neighborhood, his own neighbors call police and when the police come, they can't distinguish him a very prominent professor and common every day so-called thief. part of the problem black people have with police, not the fact they are disinclined to be subject to the law, when the police they have called come to their domiciles and can't distinguish between them and a common thief. what is this? housing while black, a new category we have to contend w. >> we have a special "black in america 2" coming out tomorrow night and thursday night, sole dad doing it as i'm sure you know. look at this cnn/"essence" magazine poll we commissioned. look at this, racial discrimination. and answers among americans who are black and americans who are white, very different. among black americans, racial discrimination very serious problem, 55% say it is a very serious problem. 17% of whites say it is a very serious problem. 16% of blacks say racial discrimination is not a serious problem, 43% of whites stay is not a serious problem. there is a real gap it still there in attitudes between whites and blacks. >> well it is not only attitude there is a different universe around which black people and white people rotate. the axis is extremely different. if you were to subject to the experiences that professor gates or that i have been experienced -- i have experienced or millions of other black people, would you have a different approach to the police and the belief that discrimination has somehow eroded. this is why i think we need the president of the united states, the first african-american, to use his bully pulpit not simply to defend the principles of american democracy but to help educate america about the persistent and lingering effects of discrimination, as he brilliantly did at the naacp last week, but he must continue, i think, to expose some of these undergerding and underlying -- >> because so many people believe we have the first family is african-american it is over it is time to move on and get beyond all of these issues. >> the disinclination of the president himself perhaps to highlight that understandably, has caused the kind of collision between amnesia and ignore rachls i think what he needs to do is help educate america about the persistent effects and then the rest of america needs to understand, you can be a black person reaching for your wallet, some policeman think it is is a gun, you get filled with 41 bullets. thank god professor gates was not subjected to this imagine the horror and viciousness had something more seriousness happened to him? it has shaken him up, the rest of us and ought to be a warning signal to america to get its act together. >> i think it is important to note he is not only one of the most prominent african-american professor in the united states. he is one of the most prominent professors in the united states. we are not just talking about a professor, we are talking about one of the most prominent professors, black or white. >> widely regarded as one of the greatest intellectuals of his generation. i think we need to pay attention to the fact that if it can happen to him it can happen to any of us. i think that is the message we need to hear. the book is entitled "can you hear me now?" michael eric dyson from georgetown university is the author. thanks for coming n. >> thank you, is sir. cnn day because "black in america 2" tomorrow night, starts at 9 p.m. eastern, right after the president's news conference at the white house. a piece of american history available to the highest bidder, water gate hotel right here in washington and it is up for auction. we are going to update you on the bidding. and some people call them president obama's "mom gene" now the president is responding to his fashion critics. the government finds using a cell phone while driving is dangerous but for some reason, the government didn't want the american people to know about it. why? jack cafferty has your e-mails, coming up. taking its rightful place in a long line of amazing performance machines. this is the new e-coupe. this is mercedes-benz. monitoring other stories incoming to "the situation room" right now. betty what is going on? >> hi there wolf. one of the nation's largest lenders to small and mid-sized businesses says it might have to file for bankruptcy protection if it can't raise enough funds through a bond exchange. cit group offers a grim assess until a regulatory filing just a short time ago. now it comes just a day after major bond holders agreed to provide it with as 3 billion loan. we will stay on top of that. if you've ever wondered what it's like to sneeze in a space suit or what would happen if the space shuttle flew into a black hole, you may want to log into a discussion taking place on the internet this afternoon. astronauts on board the international space station and docked space shuttles are answering questions from earth using twitter and youtube. they conducted he can peerments and unloaded equipment from the shuttle using a robotic arm and made preparations for a space walk scheduled tomorrow. they have been quite busy. scientists, students and enthusiasts are flocking to central and eastern asia. why? that is where the longest total solar eclipse of the century will be visible in a few hours. the eclipse will reach its peak in india around dawn and last close to seven minutes, that is how long it is going to last at its maximum point and also visible along a broad swath through nepal, myanmar, bangladesh and even china. seven minutes but the long nets century. you know what we will miss it. >> certainly will, betty. thanks very much. don't go too far away though. president obama, does he have a problem with liberals? one columnist says they loved him but they need to fear him. we are going to talk about that and more in our strategy session. also, how did two children and their mother get out of this terrifying accident alive in the father is now speaking. (voice 2) how bad is it? (voice 1) traffic's off the chart... (voice 2) they're pinging more targets... (voice 3) isolate... prevent damage... (voice 2) got 'em. (voice 3) great exercise guys. let's run it again. president obama tough enough with the liberals up on capitol hill? let's talk about this and more in our strategy session. joining us, democratic strategist and cnn political contributor, james carville. and national talk show host, radio talk show host and cnn political contributor, bill bennett. here is what david brooks writing in the "new york times" today, liberal suicide march the headline. i will go to you, james, first. "months ago it seemed as if obama would lead a center-left coalition. instead, he has deferred to the old bulls on capitol hill on issue after issue. machiavelli said a leader should be feared as well as loved. obama is loved by the democratic chairman but he is not feared." brooks is referring to the liberals, especially in the house. what do you think? >> well, i mean, look, what he is doing and we will see if it works it will be brilliant f it doesn't, we will all say how stupid it is, but letting the house put that bill up and now some kind of deal, the senate on the finance committee, considerably more moderate. you know, one of these games this is very early in the bidding, if you will. and it is a little too early to draw conclusions. the truth of the matter is if you win, everything you do is smart. if you do, everything you do is stupid. we will see how this thing works its way through the process. >> how is it working with for him so far, bill? >> i don't think it's working very well. james is right. it is early or at least should be early in the process, wolf, but he sets the timeframe. he said we've got to get it now, we've got to get it before the august recess. now, i'm not going to say there is a ton of intellectual integrity on the hill, but questions have to be answered. you have to decide,pay for this thing, reconcile this you might even want to read it. given those things and the fact he now has open disagreement among democrats, biggest problem, not republicans now but democrats it is a difficulty it is a real difficulty. >> you know, they are worried james that if they don't have the -- the separate senate and the house bills passed, let's say, by the august recess, they can then -- not going to get passed later after a month-long vacation, people start focusing in on other issues. >> right. >> he wants it signed into law by the end of the year but he at least would like the legislative part of it to be signed -- to be passed by the august recess? >> yeah it will mean -- and that's what they are going to try for but if they get something in october not august, i don't think it's going to matter a great deal. the important thing is that they have got to get something. he is having a prime time press conference. my sense is that he and ron have waited and weigh in, but they think it is the right moment. i don't disagree with anything that the secretary said they are going to try to force dead lines, congress resist deadlines n end it will boil town to -- the perception now is he won't get anything and that the economy is not getting better. if he gets something and the economy is getting better, he will do better. but there is -- this is not the time for the kind of spin if you will. the stakes in this thing are pretty dramatic and they are pretty high here for both parties some it is going to be a very, very interesting time. >> bill, you know the legislative process in washington, the house will pass one version, the senate will pass a very, very different version, but the real action will then come in what they call a conference committee, where leaders of the house and the senate they get together, mostly democrats, maybe a few republicans, bipartisan support, let's say in the senate version, probably won't be in the house version. it sounds to me like that's gonna take place some time in the fall. >> i think it is too, wolf. it's a huge piece of legislation. it's hugely expensive and still, the money.goes up rather than goes down. for purposes of analysis, let agree with james again, better for the fall, but he doesn't want it in the fall. it is a little bit like oz, you snow don't look at the man behind the curtain, listen, listen, listen do what the man in front of you says, don't look behind the curtain, the longer people look at this mortgage worried they get. was it justice bran dies who said "sunlight is the best disinfectant." the more sunlight here, the more the public is disagreeing with. >> let me stay with you for a moment. there was an extraordinary letter that was written by a bunch of leaders in europe who are deeply worried that the obama administration is getting too close to the russians right now, including vac laugh havel, the former czech president, lech walensa, the former polish president. these were important in the sew collapse of the soviet union. is their fear legitimate that president obama is getting too close to the russian president and the russian prime minister? >> i think they were very bothered by the speech in are russia in built president said it was really just a worldwide thing, wasn't the pressure of democracies, it wasn't reagan, it wasn't thatcher it wasn't the pope. these guys represent the best of conscience and intellect in the western world. of course, the bottom line worry's missile defense. is he going to withdraw missile defense from that part of the world? a stunning letter as the new york types pointed out, very unusual for them. and they kind of took the president to task for his speeches. a lot of his speeches on the foreign stage have been very much lacking. i was thinking today, maybe james -- james will know better that i, i cannot recall bill clinton ever doing the kind of thing barack obama does, which is running down the united states when he is abroad. i remember he apologized in africa about rwanda, but he said that was his greatest mistake, not the united states. this pattern of saying -- of him going toward moral equivalence is starting to disturb a lot of people. >> james? >> well, it wasn't president obama who said he looked into president putin's eyes and saw the soul of a good man, i can assure you. many things vladimir putin might be is not a good man. >> not the president anymore. >> that was a republican president that did that secondly, i don't think this president runs down the united states. i think what he does is that -- and by the way, i think he has done enormous benefit for the image of the united states around the world. but look -- >> no. >> some people, russia is a big power, it is dangerous, it shouldn't be assumed th ed thad leader has the soul of a good man. i think tough treat a country like this with great xem cism. i think that is what the secretary will do. >> you notice the vice president, joe biden, right now, even as we speak, in ukraine, apparently reassuring ukraine, don't worry so much that the united states is going to get too close to the russians. >> right. i got -- again, i got to disclose here, i worked in the ukraine, actually worked for the pro-western orange party there. ukrainian politics is very split down the middle in terms of how they view russia and the election coming up right now is going to be pretty interesting. but i have to -- out of -- you know, for cnn, i have to disclose that. >> you are an honest guy and you should disclose t give me a final thought, bill. >> i'm -- i'm glad he is working for the pro-western guys in the ukraine. but again, these guys do represent a large part of the conscience of europe. they have come a long way. they have seen history be made. they do not want to go -- see things go backwards and they don't want this president to be toward russia in a way that suggests it's realistic, but really, it accommodates russian interest and russian power. got to stand tough. got to stand with the polls. it is almost always true, stand with the polish people. >> all right, guys, leave it on that note. >> i did work for them. >> thank you. president obama versus the fashion police. the alleged offense, wearing so-called mom jeans. wait until you hear the president defend his fashion sense. and dick cheney was on the verge of losing his u.s. secret service protection, which means he we have had to pay for his security on his own or go without it. that is until president obama stepped in. so what do you think? i think i'll go with the basic package. good choice. only meineke lets you choose the 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ticker, a piece of american political history on the block today. washington's watergate hotel, available to the highest bidder. the only problem there weren't any bidders willing to off earth minimum price of $25 million. because there were no buyers, the learned that holds a $40 million note on the property has now taken back the property. dick cheney's secret service protection was supposed to end today but president obama reportedly has okayed a six-month extension, that according to the "new york daily news." ex-vice presidents normally just get six moments of taxpayer-paid protection but they can ask for extensions. otherwise, they either have to high their own security or do without security. the fashion police call them president obama's mom jeans. now the president responds. there was some light-hearted criticism of the jeans he wore at last week's all-star game. the fashion police issued a violation saying the jeans are typically worn by moms but had this to say. he had this to say when the "today" show questioned him. >> here's my attitude. michelle, she looks fabulous. i'm a little frumpy, basically. up until a few years ago, i only had four suits. she used to tease me 'cause they would get really shiny. i hate to shop. those jeans are comfortable and for those of you who, you know, want your president to look great in his tight jeans, i'm sorry, i'm not the guy. >> more on mom jeans. let's go to jack right now for the cafferty report. >> i didn't even know there was such a thing as mom jeans. did you? >> yes, because of "saturday night live." they had a little fun with that a few years ago. jeanne moos last week when you were off did a fabulous piece on mom jeans. >> what kind of jeans do you wear? >> not mom jeans. >> the not mom jeans? okay. the question is -- the question this hour, why would the government suppress research about the dangers of cell phone use while driving? susan in colorado, for the same reason most information is withheld from us, special interest groups with highly paid lobbyists who have their own agendas promising campaign contributions to politics who have their own agendas. theresa in montana, simple, the research was conducted during the dark ages of the bush administration, where science was spilt upon, especially if it might endanger the profits of large corporations. michael in virginia, jack, it's almost a stupid question. i can think of two reasons, they like driving while talking of on their phones and because tell come lobbyists give so much money to congress, they are afraid they will get slammed if they say anything. phil writes, i think cell companies and their lobbyists probably didn't want the information released. who could buy a cell phone or who would buy a cell phone if they didn't use it in the car? after all they used to be called mobile phones. rich in new york, how ironic the bush/cheneys evesdropped on our phone conversations to save american lives and probably cost american lives by suppressing important data about cell phone use while driving. ann in louisiana, maybe it is because some members of congress are more interested in being able to say they are dealing with a problem for their stilts after it becomes apparent than in preventing it from becoming a problem in the first place. and ed says, very hard to understand the dangerses of texting drivers while you're riding in the back seat of a lobbyist limo. you didn't see your e-mail here go to my blog, cfn.com/cafferty file. check it out. you might find yours there wolf? >> thanks, jack. to our viewers, you are "the situation room." happening now, a new idea to break the health care logjam, some senators intrigued. reading the body language on capitol hill. i will speak with the democratic national committee chairman, the virginia governor, tim kaine. marines hit a taliban safe haven in the heartland. reporter ivan watson is with them. he has a cnn exclusive. an update on a young boy rescued with family members from a burping vehicle. you will hear the emotional thanks to bystanders from a very grateful father. i'm wolf blitzer. you are in "the situation room." as the president steps up pressure to congress to quickly put up health care reform, he is also feeling the heat from a skeptical public. up on capitol hill, senators are behind closed doors and cnn's senior congressional correspondent dana bash is live outside the office of the senate finance committee chairman. a lot of stuff going on behind that door behind you, dana. >> reporter: that is right, wolf. the democratic leadership, they had hoped that the work that has been going on behind these doors for months now would bear fruit in time for the president's prime time news conference tomorrow night. but that is looking very unlikelism and i can tell you that a senior democratic source tells cnn that there is some frustration if the words of this source that have been repeatedly missed deadlines. sti still, negotiators behind the doors are struggling to give a sense of momentum. sometimes body language is more telling than words. >> we are making headway. >> reporter: senate finance chairman max baucus wouldn't say why he was upbeat about talks but senate sources say negotiators are considering one new idea for a vexing problem, how to pay for costly health care reform. the president and other democrats have mixed, imposing a new tax on some americans' employer-based health care benef benefits. >> a health care plan that has transformative. >> reporter: now, john kerry is proposing a tax on health insurance companies only on their high-cost so-called cadillac plans. intrigued senate negotiates stay could help with two goals, paying for health coverage for more americans and reducing medical costs. >> economists of every stripe have told us this is one of the things that you need to do to bend the cost curve in the right way to reduce overutilization. >> reporter: the president isn't ruling out the idea and even raised it unsolicited in an interview with the "news hour." >> haven't seen the details of this yet but it may be an approach that doesn't put additional burdens on middle class families. >> reporter: but some sources at labor unions helping block the idea of taxing employee-based benefits tell cnn they also oppose a tax on insurance companies, even if it is strictly targeting the most expensive health plans. and despite the bipartisan negotiations, which again, wolf, are going on as we speak behind these closed doors, there does seem to be a sense right now that health care is stymied. the president's top pry or sit stymied. the house majority leader, democratic leader in house, senator hower, admitted today they are very unlikely to pass health care over there by the time they leave for august break. i can tell that you one senior democratic source told me something that is very interesting. he said that despite the fact that the president is coming to out on almost a daily basis and pushing the idea of passing health care, he is not doing very much in terms of specifics. and they are really yearning here for the president to give much more in terms of specifics what, he wants in by way of the proposal he would lake to see coming out of here. >> the break is a month, go back to their districts and they will get an earful from their constituents. that is one of the fears in washington now isn't it? >> it is one of the fears. the flip argument, you talk to some of the strategists up here if they do pass something, it is -- out there like a pinata, able to be whacked around before they come back and negotiate for further talks. whatever the house and the senate pass, it will have to be negotiated into a so-called conference. but -- so there are lots of different ways politically to look at that but certainly that is one fear that democrats have. >> dana bash watching the story for us. thank you. taxpayers could end up on the hook for interests, yes, trillions, with a it. it, of dollars and guaranteed tied to the bailout of big banks. want to know what that might mean for you good question and we asked cnn's brian todd to start doing some digging. this sounds pretty frightening. >> could be frightening, wolf, for a lot of us. millions of you trying to get your own financial house in order, a troubling assessment of how the government is tracking your taxpayer money used to bill out the biggest financial houses. neil barofsky, the independent monitor, says in his report he asked the department to do basic things to make sure your dollars aren't wasted in the rescue of failed banks. one of them, make the banks more accountable for how they use bailout money in the so-called t.a.r.p. program. barofsky is frustrated by treasury's response. >> the most alarming thing to me is that treasury continues to refuse to adopt this recommendation, even in light of the proof that we now have in this audit. you know, they continue to tell us that it is a meaningless survey. >> reporter: treasury and white house officials say they get enough general information from banks but they say it is impossible to track every penny. >> it is going to be hard to follow, again, snag is as fungible as money moving from one bank to another. >> reporter: barofsky's report has a staggering figure. he says beyond the $700 billion being given to bail out the banks, the total amount the government has committed to supporting companies and consumers affected by this financial melt down could total $23.7 trillion, nearly $80,000 for every man, woman and child in america. but treasury says that figure is in.play and analysts say taxpayers are not really on the hook for all that. >> that is the worst case scenario, but they shouldn't expect that all american will have to chip in $23 trillion that is very, very unlikely. what is likely is they up the $700 billion that was set aside for t.a.r.p. we certainly won't recover all of it. >> reporter: in fact, analysts say much of that $23.7 trillion is loan money that's already been paid back or will be paid back, wolf. but you know, tim geithner and barofsky are squaring off over other things. barofsky complaining that the treasury department is trying to muzzle him to get the legal authority to basically have him report to tim geithner. he say it is they do that they are going to be able to shut down any of his audits, any of his investigation. they say he is making way too much of that clearly, a lot of tension between tim geithner and neil barofsky can. >> thanks very much. jack cafferty right now. >> whose cell phone was ringing? >> brian. >> oh. president obama has a lot riding on his health care reform plan and at this point, it's just too close to call. the president insists the legislation is not about him or about politics, but rather about a health care system that's breaking america's families, businesses and economy. well, actually it is about all those things. not everybody is buying owe billion embassy argument. the republicans smell blood on this. south carolina senator jim demint says stopping the president's health care reform could be his waterloo. conservative columnist bill crystal urging the president's plan not to let up on the criticism. republicans are screaming about the costs, pointing to a report by the nonpartisan congressional budget office that these plans will not pay for themselves and, in fact, will wind up increasing the budge withet deficit. the chairman of the republican party calls obama's plan socialism. and it looks like, at this point, republicans are gaining traction here. approval of the president's handling of health care is slipping and mr. obama's been forced to take his case directly to the american people with a prime time news conference tomorrow and town hall meeting on thursday. health care reform, of course, you will recall a major part of the president's campaign platform and if he doesn't get it through now, it is highly unlikely that he will get it done later, especially once congress begins pandering to voters for the midterm elections which are, of course, next year. here is the question. when it comes to health care reform, how big are the political stakes for president obama? go to cnn.com/caffertyfile. post a comment on my blog. this is beginning to feel a little like 1992, was it, wolf, the clinton administration, we had grand hopes of health care reform and washed up on some reef somewhere never to be heard from again. >> of i was the senior white house correspondent '93 first year of the clinton presidency, hillary cares, all of us remember. great expectation bus then, poof. >> and bill clint.survived that quite handily. we will have to wait and see what happens if it doesn't work for mr. obama. >> too early to say it is not going to work. >> i said f. >> huge. thanks very much. >> answer the phone. >> okay. democrat versus democrat on health care reform. i will speak with the party's national committee chairman, the virginia governor, tim kaine. and targeting the taliban's drug trade. we are with the u.s. marines in southern afghanistan. a cnn exclusive. a grateful father thanks bystanders from pulling his family from a burning vehicle. we will hear his words and get an update on his young son. avo: are you on medicare? are you using cpap therapy for sleep apnea? then here's a message from liberty medical. over time, cpap parts stretch and wear out. you should replace your mask, cushion and filter every three to six months. the good news is, medicare may cover the cost of these replacement parts. with supplemental insurance, you could pay nothing at all. and liberty medical delivers them to your door. liberty is a medicare participating provider, so they handle the claim forms. and alert you when it's time to re-order more cpap supplies. liberty carries the leading brands. and shipping is free. replace your mask, cushion and filter regularly, and get the full benefits of cpap therapy for a good night's sleep. call today to see if your cpap supplies are covered. and get a free alarm clock with your order. call the number on your screen. a high-tech fighter jet that the pentagon wants to stop building, the f-22 raptor, the senate voted 58-40 to strip funding for additional jets from next year's budget. critic says a production halt would cause thousands of jobs and undermine national security. let's bring in our pentagon correspondent, chris lawrence. fascinating coalition, the president, the defense secretary, john mccain, they all said it is time for this f-22 to go bye bye. >> didn't break down along party lines this time, wolf. you know, this all comes down to about $2 billion. the supporters of the f-22 said it's best spent building more of them. the detractors said, no way, we don't need this. that's what the administration was. again, the supporters saying, well, how can you even think about cutting a program like this in this economy, losing those jobs? it did not break down along party lines, you had republicans backing the president and democrats lining up to fight it. >> the secretary of the defense and administration decided this program isn't worthy of our support, so explain to those 90,000 people, once they lose their jobs, get laid off, and they will. >> would you ask yourselves why the f-22 has never flown over iraq or afghanistan? it's been in production for nearly five years. it's never flown over iraq or afghanistan. >> detractors say there have been more battles over the f-22 than with the f-22. supporters said, we were fighting a cold war 30 years ago and you don't know who the u.s. will be fighting 30 years from now. these systems take so long to put together that it really puts america at a disadvantage because you're cutting it off now. again, wolf, this was just an incredible fight, but the detractors of the f-22 won out and now it looks like most of the money will be going toward the f-35 which is that joint strike fighter which the u.s. military sees as its future. >> i know the secretary, robert gates, he was adamantly opposed. looks like he is going to get his way. you know what congress has a serious move move. >> the president threatened to veto this. tried to kill the osprey for years and years, never able to. even though the president, vice president, defense secretary, over the years, wanted to kill it that helicopter/plane still in business. >> spread out over so many states, they build this consensus because the planes are built and shipped from so many different location. everybody has a stake. >> a lot of constituents. thanks very much. lobbying is intense as well. let's check in with betty. she is monitoring some other important stories incoming to the situation room right now betty what is going on? >> hi there wolf. the senate judiciary committee is postponing the confirmation vote on sonia sotomayor for a week. republicans have been demanding more time to examine her record. nevertheless, committee chairman patrick leahy is confident how the vote will go in the committee and the full senate. take a listen. >> she will be on the supreme court when the supreme court comes back in september. she will be. she will be there with a bipartisan vote. unfortunately have to wait another week but she will it will be. they will be confirmed. >> all right. well, in other news, a 4-year-old boy is in serious but stable condition after being rescued from his mother's burning suv on sunday. just look at this video. off-duty firefighters in milwaukee pulled david harper's mother and 2-year-old sister from the car but they had to frantically cut david's seat belt just to get him out. doctors say david has burns over 20% of his body and some of them are deep. the boy's father expressed his gratitude. >> there's so many people at the scene and i just want to express our gratitude and how grateful we are. words can't express how this -- the citizens of milwaukee have helped us so far. >> the off-duty firefighters who helped in that rescue suffered burns on their hands around forearms. wolf, i know our die-hard harry porter fan so listen to this a cast member of the harry pot films will perform 1 12 0 hours of community service for growing pot. that's right. 20-year-old jamie willet plays crab in the potter movies and british prosecutors found 10 marijuana plants at his mother's house. producing pot car race 14-year sentence, the judge said he took into account that willet was growing a small amount for his own use. wolf? >> i'm not a big harry porter fan. i know people are and i applaud them for it. an apparent shift in strategy, we have an exclusive look at how the u.s. marines are going after the taliban in afghanistan. and the source of their funding, the taliban's funding. stay with us. you're in the situation room. the classic flavors of tuscany inspiration for... dinner bell sfx: ping ping ping fancy feast elegant medleys tuscany entrées restaurant inspired dishes with long grain rice and garden greens is it love? or is it fancy feast? now to a cnn exclusive, u.s. marines are on a search and destroy nation in southern afghanistan. right now, they are targeting the taliban's drug trade. afghanistan produces 90% of the opium that feeds the world's heroin habit and the bulk of those opium poppies are grown in hellman province. cnn's ivan watson is with the marines. >> reporter: summer is the season for fighting in afghanistan and it's been a bloody summer. four american soldiers killed on monday by a deadly roadside bomb which hit their vehicle in eastern afghanistan and one british soldier killed on monday as well here in helmand province where we are located. the nato forces here, the u.s. forces have hit record numbers of casualties for the month of july. they have broken records for this eight-year-long war. and this month is still far from over, as more troops continue to pour in from the u.s. military. they are trying to double the number of troops on the ground since last year, as part of a major offensive to try to rout the taliban. now the marines that i'm with now from the second light armored reconnaissance battalion, they took a step this week that they believe will limit the number of deadly roadside bombs the taliban have access to they have been moving through a nearby market and gathering tons, literally tons of poppy seeds for that cash crop which grows opium and can be used to make heroin. it is a $3 billion industry here in afghanistan and the taliban is believed to use these revenues to recruit fighters and make weapons as well. we saw in a ceremony today the marines send out a message, a spectacular message with this explosion during a series of air strikes. let's take a look at this. those are 1,000-pound bombs dropped on more than 1600 sacks of poppy seed. it is going to definitely put a dent into the poppy harvest here in southern afghanistan, which can be described as the opium capital of the world. now, i talked to america's top coordinator for economic and development affairs here, ambassador tony wayne, and i asked him whether or not the u.s. military is now getting into the business of poppy eradication. here's what he had to say. >> we realize there is a nexus between poppy growing and drug trafficking and money for the insurgency. so, when there's opportunity to find stashes like this, it was discovered, part of the mission is to destroy it take it and destroy it. >> reporter: now, the big challenge here is if you take away the poppy business, the opium business, what kind of money-earning enterprise will be left for the poor farmers in this impoverished country? ambassador tony wayne, he says that the u.s. government is funneling hundreds of millions of dollars to southern afghanistan alone to help with agricultural aid. he says agricultural experts are coming in. he says there are work projects being set up and vouchers for farmers to buy fertilizer and seeds for legal crops to be put on the ground here but the big challenge is getting afghan partners to work in conjunction with these international prong jengts on ground. that is going to be a big challenge because any afghan that you talk to say the credibility of the central afghan government is in power now, often accused of corruption and also involved in this very harrowing business, very same heroin business booming in afghanistan. and that a government's credibility will be tested on august 20th in presidential elections. ivan watson reporting from hell mapd province in southern afghanistan. new polls show new doubts on health care reform. how can the president sell his reform effort to increase leg skeptical americans? i will ask the democratic national committee chairman, governor tim kaine. and hillary clinton says the united states is backsome that a swipe at the previous administration? donna brazile and kevin madden, they are standing i believe. quality and 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room." another obstacle for president obama and his race to push through health care reform a new poll showed half of all americans disapprove of the way he is handling the issue, but if it's any consolation to the president, the "usa today"/gallup poll shows congressional republicans faring even worse. let bring in our senior political correspondent, candy crowley. she is watching all of this for us. candy? >> reporter: you know, wolf, presidents don't talk every day about something that is going well. they talk every day about things that aren't going well. so, for the fourth time in fivedies, the president was in front of the cameras talking health care reform. behind closed doors on capitol hill, senate moderates, republicans and democrats, are struggling to put together a way to reform health care that is mutually acceptable. elsewhere, washington is a tower of babble, a president looking for public re-enforcement, complaining that unnamed critics are trying to kill his efforts to remake the system. >> costs double three times faster than wages. >> reporter: and trying to not look obstructionist. not about winning or losing. this is about getting it right. and we saw with the stimulus, the effort to rush and spend what can happen. >> reporter: differences over the role of the federal government and the costs of reform do not split evenly along party lines. conservative democrats have some of the same objections as republican colleagues, too pricey, too fast. there's nothing like partisanship to rev up the faithful, the president and friends are framing republicans as tools of big business. >> republicans aren't interested in working with democrats to fix this problem. that's pretty clear. they simply want to maintain the status quo and keeping the insurance industry in charge of health care delivery. >> reporter: and republicans are accusing democrats of trying to ram through a bad bill for victory's sake. >> mr. president, it's time to scrap this bill, let's start over in a bipartisan way. and i'm encourage there had are members on my side of the aisle working with democrats to try to find a way forward. were rap new gallup poll shows half of all americans disapprove of the president's handling of health care. 44% approve, it explains the new edge of the conversation about health kay, the stakes are high hurricane the public is uncertain. that is why members of congress are uncertain, many members of congress. steny hoyer told reporter it is not just the blue dogs that is conservative democrats it is progressives and everybody in between who have concerns. the president goes to the cleveland clinic tomorrow to talk health care. >> thanks very much for that is that tomorrow or thursday? >> tomorrow is only wednesday. wednesday is the press conference, right? >> wednesday is prime time news conference, thursday, he goes to cleveland. >> you got it. >> thanks very much, candy, for that. >> how can the president sell his health care proposals to an increasingly skeptical american public? let's talk about that and more with the democratic national committee chairman, the virginia governor, tim kaine. thanks very much for coming in. >> great to be with you, wolf. >> why do you believe in a nutshell, more americans now disapprove of the way the president's handling health care reform than approve of the way he is handling health care reform? >> wolf, you know, the president's popularity generally is still pretty high but there's been a lot of, you know, smoke and noise about the health care debate. the thing that i look at is what do the american people think about the issue? do they want the health care system to be reformed? and the polls that i'm he seeing suggest this he do overwhelmingly. >> even the republicans say they want health care reform but don't like the way the democrats are proposing it. >> you hear that but then you hear them say in closed door sessions we are going to use this to break the president. we want to delay everything. we want this to be his water lowaterloo. we live in a society where 15 years ago, 60% of the people who worked for mall business also health insurance. now 38% insure their employees and the number is dropping like a stone. the notion we want to use this for political points to score something on the president ignores the fact that the american public wants to see reform and wants this congress to work with the president to make that happen. >> so, what does he need to do right now to turn the tide the other way? nch>> it is a matter of first iy role, i'm talking to folks all over the country who want to see reform and we are wanting to see our citizens and those who care deeply about reform communicate with their members of congress, very important, not just the president's job, also our job as citizens to let our elected representatives know, hey, the time for change is long overdue. presidents have talked about this since harry truman. let's show that we can act and see good faith action and the sense of you are jeepcy from those in congress. that's what we need to do the president and his team need to continue to do what they have been doing, talking to the public but also in those closed-door sessions, reaching out to key committee members to find the way forward to make this happen. >> here is what your counterpart, the republican party chairman michael steel told me last week when he was here in the situation room. listen to this. >> what we are trying to get the american people to appreciate is that there is a better way to do this, that we do not have to tax and spend our way to better health care, we do not have to tax and spend our way to deal with the costs. where in american history or anywhere for that matter have you saved money by spending more money? >> that was the question. you got a good response for him? >> well, he said there is a better way but i sure didn't hear any and i haven't heard any from him or really the folks on his side, other than, you know, his statement and senator demint that we are going to try to break the president over this, that it is going to be their waterloo this friday in a couple of days, i'm going to an event in wise county, virginia, a latch characters southwestern part of our state, where for three day there is a health clinic to provide health care and dental for people, once a year, you walk through the parking lot, there are cars from oklahoma in this virginia parking lot, florida georgia, most powerful and the greatest nation on earth driving all over the eastern united states so they can get a tooth pulled or get health care trooem treatment. every other industrialized nation can do this and we are good enough to do it, too, we just have to put past some of the inertia that bogged us down and act in the interest of the american public. >> here is a question that one of our ireporters sent us to, monica toops of jacksonville, florida. she voted for president obama. listen to this. >> doing it right means taking your time and i'm willing to wait, president obama. i'm willing to wait a little longer to have it done right. >> what do you want to say to monica? >> i want to do it right and the president does, too. and i think what the president wants is he wants each house to give it their best and pass bills out of the house by recess. and then as you know, wolf, that isn't the end of the process. that still mean there s there i to be done to find strategies to bring all sides together, to include all voices. my concerns when i read comes about the waterloo comment, folks in there aren't interesting in doing it right but delying to the point it can't get done at all. we can't continue to see small businesses drop employees' insurance the system is becoming unsustainable. it is going to take bold action this is heavy lifting. i'm father of three. my experience, the last few hours of a nine-month pregnancy are a hardest. and i think that is where we are. we have gotten bills out of committees in both houses that has never happened before. let's keep the pressure on and make the change that the american public deserve. >> here's one to of the problems that you have as leader of the democratic party. fellow democrats, especially in some states like virginia or north carolina, indiana, states where a lot of these moderate or conservative democrats are queasy, to put it mildly, about the president's plan and some of the liberal plans that are going through kochk right now. you, the chairman of the dnc, have ads running in some of these states. i'm going to play a little clip. >> this time -- >> it's time. >> it's time. >> it's time for health care reform. >> the democratic national committee is responsible for the contempt of this advertising. >> tell us the truth are these ads designed to mostly influence republicans or democrats? >> these ads are designed to get citizens engaged to call their representatives. >> democratic representatives or republican representatives? >> i want them to call all their representatives because -- and we are doing, wolf, these ads are part of a whole set of strategies that we are doing in every state and every congressional district to engaging citizens because what we believe is look, the reason health care hasn't happened in the past is because, you know, people are nervous and they need to know their constituents will support them. when i see a poll that said that 71% of the american public believes we ought to have health care reform with a public ones that would inject some real competition in the insurance market, that tells me the american public wants this change. what we need to do is just let members of congress know that if they support change of this kind, that the american public wants, their constituents will be standing right with them if they do that is the kind of encouragement, i think, help us break the logjam. >> certainly your hands full now governor, thanks for coming n. >> thanks. >> tim kaine, the governor of virginia and chairman of the democratic party. she says the united states is back. is hillary clinton taking a swipe at the previous administration? and sex is sex's governor tries to hold a news conference but is bombarded with questions about his affair. donna brazile and kevin maddeni. you are in the situation room. when your engine'sunning clean... you feel it. ...and pennzoil motor oil actively cleans out up to 15 percent of sludge the first time you use it. so feel the clean. not just oil, pennzoil. governor of alaska back in the news, cnn, our national political correspondent, jessica yellin. what is going on this time, jessica? >> reporter: wolf, the latest is at associated press is now reporting an independent investigator has found evidence that governor palin may have violated ethics laws by accepting private donations to pay her own legal fees. now, this is based on an april 27th complaint that we have. it accuses palin of using her official position for personal gain. that is a quote. it also says, "that she has purged to improperly receive an amount of money for herself and her family." when she said she was stepping down, she cited the endless ethics complaints against her, which she called frivolous and that the legal bills were more than $500,000 n all there were more than 20 ethics complaints filed against her, most dismi dismissed but the associated press is reporting in one instance, an independent investigator may have found wrongdoing. we have reached out to governor palin and her official office and not yet had comment back from them. we will bring to you when we do. >> thanks, jessica. talk about this and more with our cnn political contributor donna brazile and republican strategist, kevin madden what is your immediate reaction to that story just coming in? >> another day of news for sarah palin and doesn't change anybody's opinion about her. the people that like her continue to like her and people that don't like her will continue not to like her. won't change a thing. >> what do you think? >> i think this complaint, if it is true it is going to follow her, even when she leaves public office. >> which is in a few days. >> wolf, i think people of alaska is owed an explanation of whether or not these charges are true. >> let's move on to the former senator from new york, the current secretary of state, former democratic presidential candidate, hillary clinton. she is saying this and i want to play this little clip. >> on behalf of our country and the obama administration, i want to send a very clear message that the united states is back, that we are fully engaged and committed to our relationships in southeast asia. >> she is visiting india rate now, that is where she said that when you hear that, it sounds like a swipe at previous administrations or at least an administration when she says the united states is back. >> well, i also think it was a very negative view of the united states. i would disagree that the -- america was ever gone and needed to come back. i would think that was an awkward way of saying we have a new administration, a new focus a new posture toward southeast asia. that is a perfectly adequate argument to make and i think that is where, you know, the focus of her remarks ought to be. but i don't see it as hyper political. i think the gripes that a lot of republicans have with the state department is we always saw the state department as serving as an ambassador of the world's views of america when it ought to be vice versa. that is a simple disagreement, but democrats won and we lost in the last election. those will be it. >> because in southeast asia, which is india, afghanistan and pakistan, since 9/11, the u.s. has been pretty active there you have got to admit. >> yeah, but we forgot about thailand, indonesia, other parts about that part of the continent that we have strong regional bilateral relationships. she went on to say she wants to assume our lives, strengthen them and ensure that the yand is a full partner, in terms of the bilateral talks. one thing i'm interested in, of course that north korea is sending someone to azerbaijan, you pronounce these better for me, someone from north korea will be there. i'm interested in seeing how her body language tomorrow -- >> she did specifically say southeast asia, not southwest asia, talking about the eastern part of the continent. those were her words. let's move on and talk right now about the governor of south carolina. news conference, wanted to talk about real i.d., substantive issues, got come boarded with questions from reporters about you know what. >> let me put to you this way, have you made a mistake, large or small in your life. i'm asking you. >> all right. and then there were question after question after question. here's the question to you, kevin. can he continue effectively as the governor of south carolina when you know every time he is going to meet with reporters, they are going to ask him questions? >> i think he can, because i think there is a departure receipt now, a big gap between where the public is viewing this story, which is increasingly personal and the way the media now has conducted themselves at that press conference and the way they are approaching it down there which is that they are making very personal. and i think that if he can go out and concentrate from 9 to 5 on being the best governor and go home and take care of his family there is a way he can win this i think every day that passes by, he has a better chance to weather this politically. but this is increasingly become a personal story and i don't have any advice for somebody personally. i can -- the best advice i can give to governor sanford is be the best governor you can be. >> we he know of another politician who survived a sex scandal and that was bill clinton in the white house. people were writing him off, saying he was about to go you know what he not only survived when he left the white house, his job approval numbers were very high. >> we also have politicians currently serving on capitol hill that are involved in some measure of sex scandals and they are surviving. but, look this is a distraction right now, wolf, because he made it a distraction. he used taxpayers' money to my down to argentiargentina. he had a public met down. i think they will move on. >> a backlash, a sympathy factor for him in south carolina? >> i wouldn't call it a sympathy factor, you ask questions where is your wedding ring? where are you spending time with your family this weekend? i think will is a difference, a gap between what the public cares about, what the media cares about. so i think if you can continue to go out there and just talk about his job as governor and try to take care of the personal stuff when he is not 9 to 5 and not governor there is a way he can weather this. kevin, donna? >> i think more an empathy than sympathy. >> key word, enthink. thanks very much. parents are saying their special needs children are at risk in public schools. >> i'm going to have to live with this guilt. i know everybody says you should not feel guilty, but this is my boy. >> she sent her son to a school for kids with autism but she says instead of receiving specialized attention, he was abused. and explosive tests toward an eye with improved security. what the government is trying to do to keep air travel safe. stay with us. you are "the situation room." bloom if we don't act, medical bills will wipe out their savings. if we don't act, she'll be denied coverage because of a pre-existing condition. and he won't get the chemotherapy he needs. if we don't act, health care costs will rise 70%. and he'll have to cut benefits for his employees. but we can act. the president and congress have a plan to lower your costs and stop denials for pre-existing conditions. it's time to act. jack cafferty. the question this hour is when it comes to health care reform, how big are the political stakes when it comes to president obama? >> they aren't as high for obama as the congressional republicans who are showing what hypocrites they are. why is it they never walk at costs of war but they immediately label any program like universal health care as too expensive. voters will see that all the republicans care about is preserving big profits of big business and that they don't care how much common individuals suffer. phil in california says this will define much of his president the a it did in clinton's first time. eventually, obama and his social is stick health care plan will be monumental failures. jack writes, long-term, obama has much more to lose by not pushing health care reform through and with over 60% of bankruptcies being caused by health care related costs, so do we. kyle writes, 80% of people are satisfied with the care they receive. why scrap a system that has an 80% approval rating. obama is trying to turn us into some sort of socialist utopia. the people are starting to wake up to it. lou writes poll after poll shows the majority of americans want some type of government involvement in health insurance. if passage fails, it isn't obama that will go down. republicans need to be listen together voters rather than the insurance lobbyists. leonard in california, it is the whole enchilada. not only will he become the republicans pena ta if he fails to pass health care reform but his main street democratic support will most certainly begin to fail. if you didn't see your e-mail here, go to cnn.com slashcaffertyfile and look for it there. >> a lot of people writing in today? >> a lot of e-mail, especially on the health care. >> thanks very much. the charges are dropped. bitter feelings of racial bias remain. the aftermath of a harvard university scholars arrest at his home in cambridge. what both sides are saying. thinking like a terrorist, our government experts are now trying to build bonds to keep air travelers safer. we have the report right here in this situation. the governor, arnold swo schwarzenegger, is backing the compromise. public safety and health care, the critics say, will suffer in the process. let's go to cnn's dan simon following these developments in san francisco. dan? >> reporter: to make this budget work, the agreement calls for $15 billion in cuts and billions of dollars in more taken away from government. agencies throughout the state are bracing to see how sacramento's $15 billion in cuts will affect their operations. the venice family health clinic offers free medical services. 20% of its funding comes from the state. clinic officials are expecting cutbacks. patients will suffer but to what degree, they are not sure. >> the state is balancing it's cashflow needs on the backs of agencies that soar terve the pod poor people themselves. the long-term effect is that we, in many ways, are serving the banks in california. >> it provides health insurance for nearly a million low-income children is having its funding cut by $124 million. the net effect says california's speaker of the house. >> that means the children for the first time in over 10 years are going to have to be on a wait list. at a time when the debates are going in washington about health reform, in the state of california, we are actually going in the opposite direction. >> nowhere are the dollar losses felt more than in california classrooms. $9 billion cut from education. the reality, according to the california teacher's association. school districts largely prepared for the cuts when planning for the fall. as many as 18,000 teachers have already gotten pink slips. thousands of support personnel face being laid off. >> they eve limb nated all summer school classes in the state of california, no longer will there be art, drama, music, some p.e. classes have been eliminated. >> reporter: under the deal, the $9 billion taken away from education will be repaid once the economy improves. there is no timetable for that. there is some good news to this budget kneel, if you can call it that. governor schwarzenegger had proposed eliminating the state's welfare program entirely, about half a billion dollars will be cut but the program will remain intact. a lot of concern in california about public parks closing. for the most part, they real main open. >> dan, thanks very much. >> to our viewers, you are in "the situation room." happening now only on cnn, airplanes blown to bits to beat the terrorists at their own deadly game. the feds exploring new ways to smuggle explosives past security using suitcases, liquids and candy. signs that could stop airline bombers from striking again. also, this hour, children with special needs in danger at schools that are supposed to keep them safe. shocking allegations of physical restrain restraints misused in young people. one family's nightmare and why it should scare all of us. i'm wolf blitzer in cnn's command center for breaking news, politics and extraordinary reports from around the world. you are in "the situation room." first, this hour, a new day for the health care reform debate or is it groundhog day. once again, president obama declaring just a short while ago that america is closer than ever before to fixing the medical system. he is gone before the cameras six days out of the last seven to act as cheerleader and chief. yet, we have new evidence that the public and fellow democrats are more jittery about reform. here is what the president had to say today. >> some will try to delay action until the special interest can kill it. others will focus on scoring political points. we can do that before. we can choose to follow that playbook again and then we will never get over the goal line and we will face an even greater crisis in the years to come. >> health care reform, if it were a football game, how close would the president be towards his goal. the response, the president would be more than halfway to victory at his opponents's 45 yard line. the number two democrat in the house was sending a message of his own. the majority leader is signaling that the house could leave for its month-long august rate without voting on a health care overhaul. let's go to our senior congressional correspondent, dana bash. how significant is stenny hoyer's remark. >> reporter: many not happy with their party's plan. they say it doesn't do enough to control costs. even suggesting a delay is a signal that it is going to be very hard to bridge that divide. i can tell you that we are learning that there was some progress in the meeting at the white house with the president and some of those conservative democrats. >> there are closed-door meetings going on behind you on capitol hill. what are you hearing? >> reporter: you see behind me, these meetings have been going on all day long. they have taken on a new significance as we get closer to the time that they leave for the august recess. we are actually waiting to hear from the senate finance chairman. i can tell you we are learning about some new ideas. how do you pay for the near trillion dollar price tag. what they are talking about is potentially, potentially taxes insurance companies to help pay for that. the president nixed the idea of imposing a new tax on employer-based benefits. this is a concept that would, instead, tax insurance companies. we'll see how far that gets. >> dana is on the hill. stand by. we are going to check with you to see what else is going on. one more headache for the president. a new usa gallup poll shows 50% of americans disapprove of mr. obama's handling of health care reform the first survey that shows more people disapprove than improve. let's get to very disturbing allegations that one of the most prominent scholars in the united states is a victim of racial profiling. we are talking about the harvard university professor henry lewis gates jr. these are his mug shots. they dropped a disorderly conduct calling his arrest regrettable and unfortunate. gates calls the incident outrageous. let's go to tom foreman to check this story. i remember reading this book "the future of race" that he cowrote years ago. >> shocking and yet routine. this is the result, the police said they were responding to a call. he winds up in a handcuff. massachusetts, the neighborhood he was in, if you know boston, here is where he was. boston is across the river. you come across the charles, past m.i.t., down to harvard into this area, which is where he lives. what police say happened is they got a call from a neighbor who said, there is a man trying to break into a house, appeared to be. the police report said, they showed up. they saw a man inside, just inside the door. they said, we have a report someone is trying to break in here. he said, right from the beginning, according to the police officer, they said, immediately, they were racist and only targeting him. they produced it and said, why don't you come outside and talk to us. on and on, the conversation went and eventually, he did come outside. police say, finally, they warned him. we are leaving you alone. they say he persisted and then, in the end, the result was what we are looking about a moment ago. he wound up in handscuffs an the porch. it all went from there. >> here is what professor gates told "the washington post" about his arrest. i can quoting. this is how poor black men are treated. it is one thing to write about it but all together another to experience it. let's go to cam bridge, massachusetts. that's where john jons is watching the story. what's been the reaction in cambridge to this story? >> reporter: wolf, this is one of those situations that's emblematic. that perception that african-american men are more likely to see themselves going from a confrontation with the police to an arrest regardless of the circumstances. here is what i'm talking about. i had an e-mail conversation with an african-american writer i have known for years from boston. he immediately started questioning the motivations of the police. he said, what is it about a situation where you see a 58-year-old man inside a house with a cane who apparently uses the chauffeur to get around that would make a police officer think that this was a burglary in progress. a lot of whites who have spoken to our colleagues say the police are only doing their jobs, in the situation where there is a report of a crime in progress. what do you expect them to do? he is a kicase study in the situation. joe johns, up in cambridge, the poll numbers show this gap between white and blacks. african-americans are less optimistic about the state of race relations right now in the united states than they were when president obama was first elected. look at this. 55% of blacks surveyed in may said racial discrimination is a serious problem. up from 58% in november in the cnn opinion poll. white numbers very, very different in that poll. tomorrow, we are going to carry a prime-time white house news conference by president obama. that will be live at 8:00 p.m. eastern. that's followed by the debut of cnn's special report, "black in america 2." we will turn to jack cafferty with the cafferty report. this isn't exactly breaking news. almost every state in the nation is hurting financially. more unemployed people along with cuts an consumer spending, means states are collecting a lot less in taxes and bigger and bigger budget short falls. financial times reports one estimate shows tax collections down 12% across the board during the first quarter of this year for the states. 45 of 50 states reporting declines. early numbers for april and may, even worse. showing declines in tax revenues of 20%. some are now questioning how effective the federal stimulus package has been if the states are spending billions of stimulus dollars and still can't clothes budget shortfalls. you have to raise revenue or cut expenses. revenue would be taxes. many states have made cuts to school districts, health care programs, the prison system and california is even issuing ious for welfare checks. this may not be a temporary situation. these cuts to state budgets may be the new reality. two-thirds of states are projecting budget gaps for 2011. at least 15 states already see gaps as far out as 2012. the federal stimulus money, by then, will have dried up, unless they appropriate more. what government services are you willing to see reduced or eliminated. go to cnn.com/cafferty file and post comment on my blog. wolf? >> some interesting comments, no doubt, coming you. if you have been listening to some of president obama's critics, you might think he has a napolian complex. he we will go beyond the fighting words on health care and tell you what's happening in the trenches. the tally for all federal rescue efforts now more than $23 trillion. yes, you heard that right. why don't we know a lot more about where all that mon i is going. blowing up planes to protect them. federal scientists are experimenting right now with ways to stop terrorists in their tracks. 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[ gun beeps ] [ laughs ] i feel so empowered. power to the people! ha ha! yeah! the option to name your price -- new and only from progressive. call or click today. republicans see a hole in president obama's armor. our national political correspondent, jessica yellin, is here along with the bess tt political team on television. the president is working to get that support. >> he is working very hard. still, one republican senator said that health care could be president obama's waterloo, the defeat that cost napolian his empire. those are fighting words. as you know, what new american politician wants to be compared to a french man. you can see the size comparison so i won't make the napolian short joke. what really matters is that the president is doing political jujitsu. he is using the opening shot by senator demint to turn it against the republican party. >> this isn't about me or politics. time and again, we have heard excuses to delay and defeat reform. >> democratic groups are seizing on demint's words. they have new mailings that have gone out all afternoon using the words against the party and also a new web ad quoting the waterloo comment and other things. they are accusing those that want to slow down as being cynics. there are real policy decisions yet to be resolved like how to pay for the policy reform. who is being the cynic here? >> stand by for a second. we are going to get back to you. let's talk about that, the whole image issue that the president has. his role model, if you will, is here. david fromm and candy crowley. who should the president look to as a role model to get this job done? >> maybe lbj. he needs to do a little arm twisting. when you talk about cynics, it is not just republicans. it's also democrats and the president has problems in his own party that he needs to toned right now, wolf. it is not just republicans. it is democrats who are looking at this bill, conservative, moderate democrats saying they don't like it either. >> lbj had an even bigger democratic majority and it was a very different time. the president should look to the architects of 1986 tax reform. a major success negotiated by both parts. danielle patrick moynahan advised him, anything big passes the senate 70-30 or it doesn't pass at all. the president is turning it into a political war. this is a problem america needs help with. the parties have to deal in good faith. i am not sure the president is doing that. >> a lot of people believe that the president, there are a whole bunch of liberals that say that the republicans, who needs it? >> that is what the house is like. that was the complaint during the stimulus debate, the democrats are leaving me out of the situation. i don't think the president should crack heads. i go here. when a reagan, for instance, got the budget deal, that was bringing everyone together. did he have people cracking heads? you betcha. he was out there being mr. cool. it was the liberals he has to deal with. he needs to negotiate. let's put it that way. >> is that his style, to crack heads? lbj, he could do that? >> what i think he needs to do is tell people where he stands. finally, on this bill. he hasn't actually drawn any lines in the sand for us and said, this is what i will accept. this is what i won't accept. the white house says it is too early. i am not so sure. he is paying the price for his stimulus bill where he handed the keys to congress and said, spend money. give away everything to the democratic constituencies. the result is that he has a terribly priced stimulus environment and a bad mood on capitol hill and has driven moderate republicans into the arms of the more extremists. >> let's move on to another subject, the inspector general for the bailout is out with a brand new report. there is something missing in that report. banks that take bailout money to the tune of billions and billions of dollars. they do not have to account where that money is being spend. jessica, explain what is going on? >> this is about the real world versus bailout world. we are going to take a look at all this. in the real world, organizations that get federal bailout money have to declare where it is going. the same goes for universities, even for stimulus money they have accounted for where it goes down to the dollar. that's the real world. here is bailout world. when the u.s. government gives the banks $10 million, that bank does not report exactly where it is spend. the feds say it would be impossible to trace that money tichlts not how banks do their book keeping. it is not how they account for their funds. treasury officials point us to a website. we took a look at it. it said how much banks are lending. they say lending is what really matters. the question here is for a president who promised transparency and higher standards, is all this really delivering on those promises? >> is it, candy? >> no, but it is a small -- it is one of those promises that doesn't make that much difference. kind of like, i am going to put up bills five days before i assign them. he is working on health care reform. it is that kind of promise that he can't afford to not deliver on. this is one of those things that people go, okay, and move on. >> billions and trillions. >> they are going to be happy or unhappy with the result. if banks don't lend, people suffer. meanwhile, there are all of these terrible ideas floating around the obama administration as it copes with the unpap lart, feeding t.a.r.p. money to the small business enterprises. you will never clothes down t.a.r.p. if the fda gets its hands on it. >> it is easier to go after tim geithner than it is to go after barack obama. he also said today that t.a.r.p. is going to cost $23 trillion. i'm not an economic expert but every single one i spoke to today said, that's just not going to happen. >> in fairness, it was also a talking point on the campaign trail when everyone said the bush administration has no idea where this t.a.r.p. money went. they don't have any idea. it works both ways. i am sure it will be seized upon by republicans. barack obama was critical of where the money went. >> gloria, the president did make the point of saying today, goldman sachs, for example, that took the kart.a.r.p. money. interest that went to the u.s. treasury. >> we certainly know that it isn't going to cost us what the inspector general said to. >> t the mother of an autistic child says her son was a victim of abuse in his own school. >> i am going to have to live with this abuse. everybody says you should not have to feel guilty. >> cnn investigation into the danger for special needs children when restraints to control their behavior are misused. the hotel that helped bring down a president on the auction blood today. >> $25 million, any advance? $25 million, here it goes. ddd betty nguyen with some other important stories coming in. do you remember the philadelphia kids that were barred from a suburban pool? tyler perry says he will pay for the group of 65 to go to disney world. perry is featured on "black in america 2" which airs tomorrow night on cnn. $25 million, any advance? $25 million, any advance? here it goes. $25 million, any advance? >> anyone, anyone. that was the theme when a.p.s of american political history went on the auction block. washington watergate hotel available to the highest bidder. nobody was willing to offer the minimum bid of $25 million. a lender has now taken back control of the property. safari park visitors in england were warned to avoid the ba boons. if there is a luggage box on top of the car, they will get at it. they have learned to open the carriers and ransack what's inside. the park manager says they work as a team with the largest ba boon bouncing on the box until it breaks and then the rest of them prying it open. teamwork, it works apparently, wolf. >> good teamwork. thanks, betty. >> sure. a mother's anger. a son allegedly abused and a school blamed. >> the abuse -- >> he was injured at school and this ended up being his very last day of school. >> stand by for a very special cnn investigation. dramatic security video and tough questions about the use of restraints on kids with special needs. why would the federal government blow up luggage and planes, all in the name of fighting terrorists. the question that rest embattled governor, mark sanford, speechless. take a look at this. the school security camera showing an autistic florida teenager being physically restrained. his parents say he was abused. shocking cases like this one have been reported to congress of special needs children under restraint getting hurt and even killed. here is cnn special investigations correspondent, abbie boudreau. christopher out for a walk. that spin, a sign of autism. no one argues this teenager has been a very difficult child to manage. here he is again, last october. the abrasions, his parents say, they are signs of abuse. >> look at this. this is where he was injured at school and this ended up being his very last day of school. >> the school said the injury happened during a bar procedure or brief assisted relaxation restraint. this is how that relaxation technique looks on school security video. what you are seeing is footing from the princeton house charter school for children with autism in orlando florida. notes sent home in 2008 show a disturbing escalation of christopher's disruptive behavior. >> he slowly started to become a loane loner, really quiet. >> his mother says he was becoming increasingly violent, so destructive his parents had to call police for help. as things got worse, they started asking questions, which brings us to this tape. when they got it, they could barrel watch. >> every day, he would say, mama, no class, no school. i said, no, you have to go to school. you have to. i'm going to have to live with this guilt. i know everybody says you should not feel guilty but this is my boy. >> the video chronicles two days last october. it was given to christopher's parents, who showed it to us. october 2nd, christopher flips his desk, not uncommon for children with autism. then, he gets dragged from class repeatedly. at lunch, he is put in a face-down, prone restraint for seven minutes. a short time later, he is restrained another ten minutes. finally, this scene in the library with a staff member next to him. christopher upends a table and is once again restrained. steeche teachers struggle to pin him down. >> these staff members are not in physical control of him. >> reporter: for professor wanda moore, a top expert on special needs children, these are precisely the kinds of situations where children have been seriously injured, sometimes fatally. >> it is one of those things where, for the grace of god go i. this is why we stress these are interventions or procedures of very last reports because they are deadly. >> reporter: florida regulations only allow restraints to prevent injury to self and or others. in cases of hitting, kicking, head-butting another person, none of that happened prior to the restraints we saw on the tape. while common sense dictates there should be consequences for bad behavior, according to experts, that approach doesn't work well with autism. princeton house core staff were trained by the professional crisis management association in sunrise florida. the director says he has not seen christopher in person and doesn't know a lot about the teenager's background. the behavior on tape did not seem to merit the staff's re, a. >> several things, in my opinion, were not done directly. in several instances, it didn't like like crisis but a single episode of table flipping. >> so should he have been put in restraints? >> from what i could see, i would have to say no. >> reporter: we asked princeton house, orange county public schools and the state department of education to speak with us on camera about the video. they all declined because the incidents are now under investigation. christopher is now at a new school and is doing much better. his parents say they are wiser for what they went through. so far, christopher has not needed to be restrained even once. >> wolf, although he is doing much better, christopher's family is not letting go of what happened. they intend to sue the school for child abuse and federal civil rights violations. wolf? >> abbie, thanks very much. let's bring back tom foreman and congressman jon miller joining us from california, chairman of the education and labor committee. jane hudson, senior staff tone for the national disability rights network. i will go to the congressman in a moment what's your immediate reaction? >> there are hundreds of students. that isn't the only student this is happening to. many agencies have documented this over the last several years. >> if we run this video and look for a moment, the target area we are going to pay the attention to, this young man, he comes in here and suddenly flips over the desk and gets surrounded by people. when this happens shall at this moment, congressman, let me ask you. what rights should this young student have at that point? >> the first right he should have is whether or not his parents have been informed that this action is being taken against him. secondly, i think when you see an incident like that happen shall the first thing would be for the staff to gather themselves and make a judgment about what's taking place here rather than pouncing on this student from behind, surprising him or in the cafeteria humiliating him. what you see is this was done over and over again without any improvement in the young man's behavior. i don't know all of the particulars of this case. what the government account ability office told us is that these actions against these students are taken over and over and over again and nothing changes because they are not properly trained. they are not assessing whether this is effective or not effective. they are out of control in many states and many school districts. >> jane, is it your sense that some of these people think they are doing the right thing, protecting the student and protecting others in that room, are just not well-trained for this kind of autism? >> that's right. there is no training. there is often not school policies or state laws or federal laws on setting the standard. so it is ad hoc. they figure out how to do it themselves. in this case, as congressman miller said, what caused this incident, if it happened many times, what strategies were used to prevent it in the first place? what rights should these have? as you know, if he hurt somebody in the room, they would be the first ones who were nailed for that. what should she do? what rights should they have? >> they have a right to be trained. many teachers are not trained. substitute teachers are not trained often or school bus drivers or others. they really need the training because there are ways to prevent these incidents from happening and to take control in the classroom. >> so more training for the staff? >> right. >> congressman, is there a role for the federal government in all of this? >> i think clearly there is. many of these children are certainly being financed with individuals with disability funding. there is an interesting and humane treatment of these individuals. doing something that is fikt tif effective. the obama administration is working with us to put the state in lead and some have gone and developed a farreirly decent poy outlawing some restraints. we are trying to gather that information, come up with a model set of codes and ask the states to put them into place and if they don't, then the federal government can step in. remember, for a number of kids, this has been deadly. they have died as a result of this. it is not just a question of whether they are humiliated or harmed or frightened and all of the terrible things. they have died. the other things that have happened. these actions are being taken against very young children, four, five, six, seven years old. this is way out of control in terms of how we treat children, whether they have disabilities or they don't have disabilities and certainly when you do it without first clearing it with their parents. >> you raise a good point about the children. that's the last question i want to raise here. what about the rest of the people in this room? many parents have dealt with the issue of having a disruptive or a troubled child in the classroom? they find themselves saying, what about all the other kids? should we have better mechanisms when a child is having problems this severe to get them out of that environment for the good of these kids. what do you do about that? >> we have a process that's been in the law for 30 years. it's called an individualized education plan. you sit down with the child, the parents, the skoom. you work out a plan of action for the most difficult children and the multiply disabled. you work out a conscious plan. you don't just wait for the child to act out. you don't sit on them until they suffocate to death. that is unacceptable. we have a process in the law that thousands go through it every year and they seem to manage this. we have other situations where they are out of control. >> congressman miller, thanks very much for coming in. also, jane hudson, senior staff attorney for the national disability rights network. a subject we are not going to go far away with. we will toin pursue this this as well. looking for explosives d disguised as shoes, candy and cough medicine. >> i am jeanne meserve in atlantic city where they are building bombs to make your flight safer. the classic flavors of tuscany inspiration for... dinner bell sfx: ping ping ping fancy feast elegant medleys tuscany entrées restaurant inspired dishes with long grain rice and garden greens is it love? or is it fancy feast? dddddddddddddddu naing onon ud r. weotototatatininci on us cars for everybody anont cfidedence ininin o. caususususlendnds s ve a a a t tcks. ququq n . wow, look at that. you might think it is a horrible act of terrorism but, guess what? it is not. actually meant to prevent attackers from bringing bombs on planes. our homeland security correspondent, jeanne meserve is over at a special government lab in atlantic city in new jersey watching this story for us. jeanne, what's going on there? >> reporter: i am in a warehouse full of thousands of thousands of suitcases, because a bomb can be hidden in a piece of luggage, these are valuable tools in the search for better aviation security. airplanes blown to smither reasons all in the name of science and security. it begins at the transportation security laboratory in atlantic city where patrick o'connor builds bombs for the government. >> this is a real explosive i have here in my hand. >> reporter: he has built hundreds of improvised explosive devices disguised as electronics, footwear and dvds. they are based on those terrorists are building some of the bombs are detonated in old planes to test whether a similar device could bring down a flight. others are put in luggage and run through screening machines. if the bombs are not detected, scientists try to close the security gap to beat the terrorists. it's a game of cat and mouse. we understand what they are doing. we counter act with better improved technology. >> reporter: machines are not the total answer. >> at the end of the day, the technology detects specific threats. it does not detect a terrorist. >> reporter: better machines would be a valuable tool. scientists do a high resolution cross-section scan of a peanut m&m to show us how they might be able to fair rhett out explosive material. others are trying to crack the problem of detecting liquid explosives by capturing and measuring the vapors admitted from a homemade con cox concealed in a bottle of cold medicine. >> it is something that is really bad we need to keep off the airplane. >> reporter: not all the work will lead to better bomb detection but some might and could prevent something like this. researchers here practice something they call bagology, they will take a piece of luggage fully loaded and put it through a scanning machine to determine what sort of ordinary objects set off false alarms. that way, they can eliminate making aviation screening more efficient and effective. >> what's in all the suitcases around you? >> they are packed with everything a traveler would have them in them. genuine lost luggage. dirty laundry, shampoo. once upon a tie, they found a severed ram's head in one of these suitcases. they have no idea how it got there, what it was doing there but it it smelled. trust me, they got rid of that piece of luggage. >> i am glad they did. good report, thank you. let's check in with lou. much more on the showdown over the president's controversial health care proposals. he declares, the time for talk is through demaending an august 1st legislative deadline. opponents refusing to be intimidated. public opinion polls show the president losing support. we will examine the increasingly nasty battle in our face-off debate tonight. a rising number of gun owners say president obama is threatening their second amendment rights. they are rushing to gun shops, buying ammunition and we will have a special report on what is now a nationwide critical shortage of ammunition across the country. join us for all of that and a great deal more at the top of the hour. wolf, back to you. >> we will see you, what, in about 14 minutes. thanks very much, lou. south carolina's governor tries to hold a news conference. it gets pretty awkward and very quickly. >> where is your ring? >> what's that? >> how mark sanford responded to questions about his lack of a wedding ring. what possible reason could there be for our own jeanne moos to combine these two images into one story. here is a hint. it has something to do with their outfits. "what do you mean homeowners insurance doesn't cover floods?" "a few inches of water caused all this?" "but i don't even live near the water." what you don't know about flood insurance may shock you. including the fact that a preferred risk policy starts as low as $119 a year. for an agent, call the number on your screen. some awkward moments for the south carolina governor, mark sanford, as reporters grilled him about his extramarital affair, including a question about his wedding ring. in a news conference, the republican governor trying to move past discussions of the affair but reporters repeatedly returned to the issue. >> life and choices that we make begin each day. it's as much of a distraction as you want to make it. i'm going to move on with my life. questions from you. >> if it becomes apparent that it is always going to be a distraction with you then -- >> let me turn it to you this way. have you made a mistake large or small in your life? >> i'm asking you. >> i'm asking you. i think we all do. we've all acknowledged this has been painful. it's been what it is. but it is time to move on. that's what i intend to do. >> where's your ring? >> what's that? >> where's the wedding ring? >> why aren't you wearing it? you're still married to your wife, correct? or is that woman in argentina your soulmate? >> how much time is going to be taken away from your job to try to fix things with your wife? >> if i didn't think it was more than possible to do great at both i wouldn't be standing here. >> it was governor sanford's first public appearance since last month. back to jack. he's got the cafferty. >> he's beyond annoying. beyond annoying. wasn't he one of the self-righteous ones that couldn't wait to condemn bill clinton over his affair with monica lewinsky? >> yes. >> question this hour is what government services are you willing to see reduced or eliminated in light of the ongoing financial crisis that is confronting all of the states. ira writes cut the budget for every federal department by a minimum of 10%. every cabinet department needs to bear the burden of the cut. start by cutting the staff. congressional, judicial, executive offices. cut, cut, cut. the general population has to tighten its belt. so should the federal government. jack, do we need to light every inch of every street, road, and highway? do we need to cut the grass along the highway? they do need to collect the trash twice a week? do they need to mow the grass in the park in extreme drought conditions? can a little common sense be used instead of service overkill? >> karen writes social programs for illegal immigrants in the united states don't make sense to me. carl in aurora, illinois. i would like to see the elimination of farm subsidies and corporate welfare before we take services from those at the bottom rung of the ladder. ac writes about how about cutting back on mail delivery? i could do fine with mail just money, wednesday or friday. robert writes how about canceling or a war or two? should free up a few hundred billion to give to the states. jay writes start with the house and senate. and then work your way out from there. and another says how about the irs? can we get rid of that? if you didn't see your e-mail here go to my blog at cnn.com/caffertyfile. look for yours there. i would vote for that irs idea. >> everybody would. thanks very much. >> see you tomorrow. >> it's an unlikely pairing. only jeanne moos could explain what president obama and a naked cowboy have in common. and getting ready for the solar eclipse in asia. so what do you think? i think i'll go with the basic package. good choice. only meineke lets you choose the brake service that's right for you. and save 50% on pads and shoes. meineke. she is the greatest thing ever. woman: one little smile, one little laugh. - honey bunny. - ( coos ) we would do anything for her. my name is kim bryant and my husband and i made a will on legalzoom. man: it was really easy to do. - ( blows raspberries ) - ( laughing ) robert shapiro: we created legalzoom to help you take care of the ones you love. go to legalzoom.com today and complete your will in minutes. at legalzoom.com we put the law on your side. in india students try out some goggles as they prepare for a solar eclipse. it's the longest solar eclipse this century and will be seen by millions across asia. swimmers perform a technical routine during the swimming world championships. a militant carries a weapon on his shoulder as he patrols the streets. and in germany, check it out. two newborn asian bear calfs sit in a basket at the berlin zoo. pictures worth 1,000 words. it's been said clothes make the man. if that's true then to some president obama looks more like a someer mom than the country's chief executive. jeanne moos has a most unusual look at political attire. >> reporter: health care, who cares? we have president obama's response to recent attacks on his jeans. >> these look frumpy. >> i'm a little frumpy. >> reporter: got you, mr. president. in an exclusive interview president obama confessed even his wife makes fun of him. >> up until a few years ago i only had four suits. she used to tease me. i hate to shop. >> reporter: that's no excuse for shot having someone else go shopping to replace what critics called mom jeans. jimmy kimmel presentd this attack ad. >> man up, mr. president, and lose the barack omamma jeans. we need a president who dresses like this guy. >> your reply, sir? >> those jeans are comfortable. and for those of you who want your president to look great in his tight jeans, i'm sorry, i'm not the guy. >> there is one would-be politician who can't get slack for his jeans. he doesn't wear any. doesn't wear any pants in public. ♪ i'm the naked cowboy >> now he wants to be the naked mayor of new york city, taking on a fully clothed michael bloomberg. ♪ i'm on the charts, the tv news ♪ >> reporter: the naked cowboy is a times square institution. a man who worries about his image by checking it in his guitar. a man of many layers. >> two pairs of underwear. >> some complain we already had a cowboy in high office. every phrase he utters can be a campaign slogan. >> don't touch the squishy parts. >> his guitar was once adorned with mccain/palin pictures. >> it will be ab landslide. mccain. >> talk about naked ambitions. just announcing for mayor. but on his guitar picked shape website, you would think he's running for president.

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