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MONEY FOR BREAKFAST

May 27, 2010 Thursday

SHOW: IMUS IN THE MORNING 6:00 AM EST

Public Anger Over Gulf Oil Spill Turns Towards Obama, Administration; BP

Officials Say Should Know Results of Top Kill Method by this Afternoon; Biden

Says Brussels Should be Leader of the Free World Now; Lee DeWyze Wins

"American Idol"; Simon Cowell Says Good-bye to "American Idol"; Govern-

ment Reports on First Quarter GDP and Jobless Claims Today; Matt Taibbi on

Financial Reform Bill; Obama to Announce Drilling Moratorium; Geithner

Meets With German Finance Minister; Government Reports on 1Q GDP & Job-

less Claims; Interview With Chris Wallace; Lehman Estate Suing JPMorgan

BYLINE: Don Imus, Jenna Lee, Stuart Varney, Charles McCord, Bernie McGuirk, Warner Wolf, Lou Rufino, Dagen

McDowell, Connell McShane

GUESTS: Matt Taibbi, Rob Bartlett, Howard Kurtz, Patrick McEnroe, Chris Wallace, Arlene Santana, Eric Cantor, Bill

Richardon

SECTION: NEWS; International

LENGTH: 23547 words

(MUSIC)

DON IMUS, FBN HOST: This is the IMUS IN THE MORNING program.

Time now for a business update, from the FOX Business Network.

Here's Jenna Lee.

JENNA LEE, FOX BUSINESS NETWORK CORRESPONDENT: Good morning, everybody. We're starting off this

morning with a business alert for you. Stocks setting up for what looks like a big day in the markets, after yesterday's

late-day swoon. During the final hour of trading, the Dow closed below 10,000. Stocks are surging this morning, mak-

ing a comeback. U.S. stock futures are much higher. Take a look at the S&P 500, up nearly 3 percent.

One of the news items from St. Louis, Fed President James Bullard, who says he doesn't expect contagion from Eu-

rope's fiscal problems to come to the U.S. And he says the U.S. could benefit as people seek safer investments.

Take a look at the European markets. They're also rallying this morning. This also coming off reports that China will

not reduce its investments in Europe. Also in Europe today, Treasury Secretary Tim Geithner is in Berlin and will meet

with the finance minister there. They're expected to talk to the press shortly. Last night, Geithner spoke with the presi-

dent of the European central bank. Geithner says Europe has a good plan to deal with the debt crisis but must also act on

that plan soon.

Let's get to your "FOX Business Minute" now, polls show the public is turning the anger about the gulf oil spill towards

the president and his administration. President Obama will answer questions at a press conference today at 12:45 eastern

Public Anger Over Gulf Oil Spill Turns Towards Obama, Administration; BP Officials Say Should Know Results of

Top Kill Method by this Afternoon; Biden Says Brussels Should be Leader of the Free World Now; Lee DeWyze Wins

"American Idol"; Simon Cowell Says Good-bye to "American Idol"; Government Reports on First Quarter GDP and

Jobless Claims Today; Matt Taibbi on Financial Reform Bill; Obama to Announce Drilling Moratorium; Geithner

Meets With German Finance Minister; Government Reports on 1Q GDP & Jobless Claims; Interview With Chris

Wallace; Lehman Estate Suing JPMorgan MONEY FOR BREAKFAST May 27, 2010 Thursday

time. He's also going to announce new oil drilling restrictions. "FOX Business" will have live coverage. President Ob-

ama will be going to the gulf region tomorrow.

In the meantime, BP engineers say they will not know until this afternoon if the latest operation to seal the oil leak in

the gulf is successful. This is a live shot from the gulf. The operation, where heavy mud is inserted into the mud, began

yesterday afternoon. If the flow of oil stops, BP will inject cement to seal the well. It has never been done in that deep of

water. BP is also saying that, as you take a look at the video, you have to remember, although you might see fluctua-

tions or different shots of what the oil looks like, you cannot really make any deductions from that. So we'll continue to

watch the live feed.

In the meantime, we want to talk a little bit about Warren Buffett now. Warren Buffett is being called before the panel

investigating the financial collapse. The Berkshire-Hathaway CEO will testify to the Financial Crisis Inquiry Commis-

sion on June 2nd. It's part of the look into the rating companies. Berkshire is a long-time shareholder of Moody's.

And we also have some quick earnings news already this morning. Costco reporting better than expected profit and

sales. Earnings per share coming in at 68 cents, 2 cents better than the estimate. The warehouse retailer bringing in near-

ly $18 billion in the third quarter. And when you take out some of the gas sales, same-store sales rising 4 percent com-

pared to last year.

Here's a look at commodities. Oil and gold we're keeping an eye on this morning. Oil gained about -- well, a little bit

yesterday. It definitely was one of the gainers of the market. You can see, this morning, it's up more than 2.5 percent.

Gold is slightly lower.

Coming up at 6:30, Imus' guest will be Matt Taibbi of "Rolling Stone" magazine, and see what he says about the crisis

and how it's evolved.

We have more IMUS IN THE MORNING coming up right now.

STUART VARNEY, FOX HOST: I have something unusual for you today, which you have not seen anyplace else. I

have Vice President Joe Biden speaking in Brussels, saying that Washington, D.C., no longer deserves the title of leader

of the free world. Instead, Vice President Biden thinks Brussels should have the title, leader of the free world. We've got

it. We've got it on tape. We're going to run it. We're going to ask New Hampshire Republican Judd Gregg what he

thinks about that. And Debbie Wasserman-Schultz, what does she think about that. And nobody else has it. Fresh out of

the box, Joe Biden on the leadership of the free world. That's what we've got for you.

IMUS: What do you think about it?

VARNEY: Nonsense. Absolutely, nonsense.

IMUS: Really?

VARNEY: What is he up to? He has a reputation of being a little odd with some of his statements, but this? Delivered

in Brussels to the Europeans at a time like this when Europe is in chaos? When they're floundering? Their system is

ruined? He says that? That's extraordinary.

IMUS: Kind of like -- like when one of the Dixie Chicks went to London and bad-mouthed George Bush. Didn't they?

(LAUGHTER)

VARNEY: I'm not going to try and imitate that accent, Imus.

IMUS: Your boy, George Bush.

VARNEY: I'm tempted.

IMUS: You know -- well, he's the moron. I can't believe anybody takes anything he says seriously. Except your right,

Stuart, he's the vice president of the U.S., somebody is listening.

VARNEY: Yes. When you get the stuff, you have to put it out there.

IMUS: Yes.







VARNEY: You've got to make everybody aware of what is going on here.

IMUS: Yes. That's fine. I wasn't questioning your judgment. I'm putting it on. I'm just making an observation.

(LAUGHTER)

I don't see any point to jump all over me.

Do you, Charles?

CHARLES MCCORD, IMUS IN THE MORNING: I don't think he was jumping all over you.

IMUS: And by the way, yesterday your hair was on fire, Stuart.

VARNEY: Why?

IMUS: You had us hysterical about the wheels coming off the world. And the money wasn't going to be worth anything.

and the market was only down 22 points. Now what?

VARNEY: I don't believe I actually said precisely that, Imus.

IMUS: No, you didn't say anything close to that.

VARNEY: Thank you.

(LAUGHTER)

(MUSIC)

ANNOUNCER: Ladies and gentlemen, IMUS IN THE MORNING.

IMUS: I remember a time when my hair would have been on fire, and I would be screaming that the local phone com-

pany here in New Mexico -- but what can you do?

MCCORD: What happened?

IMUS: Well, they decided to -- ENMR, eastern New Mexico -- what is it, Glenn?

Anyway, it's ENMR. They decided to do maintenance between 2:00 and 5:00 a.m. on our phone lines at the ranch and --

every morning. And we don't need maintenance done on them. That is one. And, two, you cannot use the phones then,

of course, which means you can' fax any copy to me. But fortunately, all of the commercials I've done so many times, I

know what they are. I don't need copy.

Alan David suits. You get one of those. In fact go and have an Alan David suit made. Let me see if I can figure out the

phone number, Bernie, 212-227-40.

Is that the number?

BERNIE MCGUIRK, IMUS IN THE MORNING: Beautiful, excellent!

IMUS: Bernie will be on here at 6:30 to talk on that radio. That's the phone number, right?

MCGUIRK: On the money.

IMUS: You will have another gash on the top of your head in a minute here. Now, I'm starting to sound like I'm in a bad

mood.

(CROSSTALK)

First thing I checked was to see if Jenna was there. And Charles said she is, and so, well, all's right with the world.

MCCORD: So you're fine.

IMUS: We're fine. And Warner is here so we're home free.

MCGUIRK: Well, we're dead meat this morning. Don't take it out on us.







IMUS: No, I'm not going to -- no, because here's what I'm going to do. We'll drop it and move on. Nobody listening to

the radio or watching FOX cares whether the phone line works or not. They just want to hear whatever.

Who won "American Idol"?

MCGUIRK: Lee DeWyze.

IMUS: He did!

MCGUIRK: Yes.

IMUS: Wow.

MCGUIRK: Surprise, surprise. It was a great show.

IMUS: And who won the basketball game, Warner?

WARNER WOLF, IMUS IN THE MORNING: The Magic. They blew them out.

IMUS: Really.

WOLF: 21 points. Killed them. Cut it to 3-2.

IMUS: Matt Taibbi and then Patrick McEnroe is over at the French Open. He's going to call us with a, you know, tennis

update.

WOLF: Right.

IMUS: Maybe some insight. I'm not sure.

That's All right with you, right, Warner?

WOLF: Yes, bring it on. He's great, Patrick.

IMUS: OK. And then Chris Wallace will be on.

That's all right with you, right, Charles?

MCCORD: Absolutely.

IMUS: OK. And then Representative Eric Cantor will be on as well.

News coming up.

How did the blowout preventer --

MCCORD: Shoving the mud?

IMUS: Shoving that Wall Street bonus money in there worked, or whatever they did.

(LAUGHTER)

MCCORD: Showing the Wall Street bonus money in there.

IMUS: Yes.

MCCORD: So far, so good according to the chief operating officer of BP, with the top kill effort to stop the leak, shov-

ing the heavy mud-like material into the blowout preventer at the rate of 65 barrels of this stuff per minute. But he's

saying it will be probably sometime -- they don't know when -- within the next 24 hours when they'll actually be able to

make an assessment of how well it is working or whether it is not.

IMUS: Isn't the camera still on the thing down there where the oil is gushing out?

MCCORD: Yes, it is.

IMUS: Is the oil still gushing out?







MCCORD: Yes, it is.

IMUS: Well then, it is not working.

MCCORD: It's not working to this point.

(LAUGHTER)

IMUS: I don't get that, do you?

MCCORD: He says that within --

IMUS: At some point it might work.

MCCORD: Exactly.

IMUS: Oh, sure.

MCCORD: Within 24 hours they'll know.

In the meantime, Governor Jindal, Louisiana Governor Bobby Jindal, says the oil has now fouled more than 100 miles

of shoreline and he can't understand why they can't get permission -- they've repeatedly applied for permission -- to

dredge material and fill the gaps between the barrier islands, which would keep it off the shoreline. I don't know why

and he doesn't know why, the mission is withheld.

IMUS: Maybe another date night at the White House.

(LAUGHTER)

And we don't have time to address that, right?

MCCORD: It could be anything, I-Man. But it's just a mystery.

IMUS: Nine minutes after the hour.

Jenna Lee is back with business news on the "FOX Business Network."

What is this footage you were showing this morning, Jenna?

LEE: Any particular reference?

IMUS: The brown stuff bubbling, whatever that was.

LEE: Brown stuff bubbling? The actual footage of the oil leak?

IMUS: Is that what that was?

LEE: I think so. It looks a little different than it's looked before.

Is this live pictures, guys? We have been showing it. Just want to be sure.

IMUS: No.

LEE: Well, it is interesting, BP just came out and said that, as we continue to watch this live video, which does looks

different than yesterday, when we saw the oil very, very dark and inky. Now what we're seeing on the screen looks dif-

ferent. But as you guys both were just talking about, there is still something coming up. BP saying that we have to be

careful making any assumptions based on the video just because it is a two-day process. And that's the statement,

though they are keeping the live feed up.

IMUS: What did the market do yesterday?

LEE: Late-day trading turned things into negative territory. All of a sudden, we finished lower. The Dow closed below

10,000. But this morning, much better than when we were talking on Tuesday. The markets, the stock futures are up

nearly 3 percent on a couple different things that are happening to these markets. One being, it looks like China is going

to continue to invest in Europe. And that is adding some confidence at least to what is going on in Europe, which is the

debt crisis there. Also, we have a Fed official over in Europe saying that he doesn't think that the credit contagion in







Europe will spread to the U.S. Some positive news this morning. And that's helping the markets. This is a time that we

can actually be fun in comparison to Tuesday when I wasn't a lot of fun because the markets were lower by 3 percent.

Now they're higher, so.

IMUS: What are you suggesting?

MCGUIRK: Party!

LEE: Not a lot.

Thank you, Bernie.

(LAUGHTER)

LEE: Exactly. At least early on.

IMUS: Exactly.

LEE: And you know what, we get a reading on GDP coming up at 8:30 and jobless claims. That could affect the mar-

kets. We have to be careful.

IMUS: I said something the last time you got all -- well, you were fine.

LEE: I got all what?

IMUS: Well, now, I thought better. Nothing. You got fine.

LEE: Oh, good.

(LAUGHTER)

IMUS: It was great.

LEE: Oh, thank you.

IMUS: You didn't do anything wrong.

LEE: Oh, that's sweet of you. Thank you!

(LAUGHTER)

IMUS: Jenna Lee with business news this morning.

Dagen McDowell is coming up, as well.

Six -- it's 11 after the hour here on -- not six. 11 after the hour.

And Warner Wolf has sports.

Already told us the Celtics lost.

WOLF: Yes. Not only that, I-Man, they not only lost, but their starting center, Kendrick Perkins, committed his 7th

technical foul, and he could be suspended for game six.

IMUS: Wow.

WOLF: And making it worse, Big Baby Davis hit his head on the floor.

IMUS: OH, he got elbowed.

WOLF: No, no, Davis. It was Marquis Daniels that got elbowed.

MCGUIRK: Davis got elbowed by --

(CROSSTALK)

WOLF: Davis got elbowed and then hit his head on the floor and lost a tooth and he has a concussion.







IMUS: Did you watch the game, Warner?

WOLF: The highlights, I watched the game, yes.

IMUS: So in other words, no. You didn't watch the game.

WOLF: I watched it live.

IMUS: The whole game?

WOLF: No.

IMUS: OK. That was the question, but you gave me a politician's answer.

Didn't he, Charles?

MCCORD: Sounds like it.

(LAUGHTER)

IMUS: That's a weasel answer.

WOLF: I'm pretty good.

(LAUGHTER)

IMUS: Bernie has a briefing coming up, sponsored by P.C. Richard and Son.

What's up, Bernie.

MCGUIRK: As I said, Lee DeWyze is the new "American Idol." It was a great show, chief, in case anybody missed it.

Nice retrospective of Simon Cowell, the back drop of Frank Sinatra singing "My Way." And Paula Abdul showed up.

IMUS: How did that work out?

MCGUIRK: It was funny. It was good. It was poignant. It was moving.

IMUS: It was?

MCGUIRK: Yes, it was. It was very nice. The only thing -- I felt bad for Ellen DeGeneres, sitting there feeling like the

outcast. It just struck me that way. But, everybody -- the idol winners, Carrie Underwood and a bunch of other people.

Bret Michaels showed up and the Bee Gees. Joe Cocker did an amazing rendition of -- what was it --

LOU RUFINO, IMUS IN THE MORNING: "With a Little Help from my Friends."

MCGUIRK: Yes, that. It was unbelievable.

IMUS: Joe Cocker!

MCGUIRK: Yes. And he was amazing. Incredible.

RUFINO: He was great! Great.

IMUS: Really?

MCGUIRK: Am I overselling it.

RUFINO: No, he was great.

IMUS: Hey, Big Foot, get me a clip of that, can you?

MCGUIRK: Everybody was great.

RUFINO: I'll get it.

MCGUIRK: It was really, really a good show.

IMUS: I'll get an anchor report from Dagen McDowell, coming up here in a little bit.







(LAUGHTER)

16 after the hour.

The five tunes I picked this week are from the first Imus Ranch record. This from the great Randy Travis.

(SINGING)

IMUS: This is the IMUS IN THE MORNING program.

Time now for a business update, from the "FOX Business Network."

Here's Jenna Lee.

LEE: Good morning, everybody. Let's get to your "FOX Business Minute" now. This just in from the White House this

morning that the economy really does play a key role in the president's national security strategy. A document released

this morning says, cutting the deficit is tied to the goal of boosting U.S. strength. And the recovery is central to the

strategy because the economy is, quote, "The well spring of American power."

Treasury Secretary Tim Geithner in Berlin today and will be meeting with the finance minister. They're expected to talk

to the press shortly. Last night, Geithner spoke with the president of the European central bank. Geithner says Europe

has a good plan to deal with the debt crisis but must act on the plan, soon.

Those are some live pictures we have from Berlin this morning.

And the Treasury Department bringing in another $6.2 billion by selling shares of Citigroup. The stock selling for an

average of $4.13 a share. That's a profit of about $1.3 billion for the taxpayer. The taxpayers still own 22 percent of

Citigroup but the government will sell more holdings this year.

Here's a look at our futures now. We get off to the races early as we are. S&P 500 up 2.5 percent.

Now over to Charles for this morning's top stories.

MCCORD: More on the gulf situation. First of all, the president stepping up his response to the oil spill. He is expected

to announce drilling restriction while subjecting himself to the most intensive questioning yet from reporters on the sub-

ject. Holds a news conference, 12:45 eastern, and plans to travel to the gulf coast on Friday.

And one of BP top executive says crews trying this top kill method of stopping up the well, that is going effectively and

efficiently so far, but they won't know really for 24 hours whether it is, in fact, actually working.

A couple of the headlines as the IMUS IN THE MORNING program continues, now, right here on the "FOX Business

Network."

(MUSIC)

IMUS: 20 minutes after the hour on the IMUS IN THE MORNING program, on the radio, all over the country, on the

"FOX Business Network," all over the world.

We asked the ENMR, Charles, the local phone company out here --

MCCORD: Yes?

IMUS: -- to stop doing their maintenance so we could do the program. And they said, "No, we won't do it."

MCCORD: Uh-oh.

IMUS: So their customer relations from ENMR --

MCCORD: There you go.

IMUS: -- the local phone company here in northern New Mexico, is you call and ask them and you ask them to do

something and they tell to you go to hell.

(LAUGHTER0







MCCORD: Not too good.

IMUS: Go to hell. And if you don't like our phone service, get something else.

MCCORD: Yes. Now what?

IMUS: Matt Taibbi, Patrick McEnroe, Chris Wallace and Congressman Eric Cantor coming up this morning.

One of my favorite authors, 95 years old, died today, Charles, Herman Wouk.

MCCORD: Oh, no kidding. OK.

IMUS: He wrote, "War and Remembrance," "The Winds of War," "The Caine Mutiny," "Inside-Outside," and a lot of

other stuff. "War and Remembrance" and "The Winds of War" could be two of the greatest novels I ever read.

Did you read those, Warner?

WOLF: No, I just saw the series on TV. I've never read them.

IMUS: That's unfortunate. I'm disappointed in you.

It's also Chris Dodd's birthday. We will be talking about Chris Dodd with Matt Taibbi, the financial reform bill. And

how -- apparently, according to Matt and the current issue of "Rolling Stone," Chris was -- well, he was not being a

good boy.

MCCORD: Uh-oh.

IMUS: Time for a little sports. Sports sponsored by Peerless Boilers, I think. They make America's best boilers. Take

the beast out of your basement and put one of these bad boys in there.

Good morning, Warner.

WOLF: Good morning, I-Man. The Magic out-scored the Celtics in every period. And beat Boston 113-92. The Magic

cut it to 3-2. Jamier Nelson (ph) high with 24. Superman, 21 points, 10 boards, as Orlando out- rebounded the Celtics,

43-26. Now in this game, starting center, Kendrick Perkins, picked up the 7th technical of the playoff, could be sus-

pended for game six.

IMUS: What was the technical for?

WOLF: He started arguing with the referee about a call, but he turned around and ended the conversation. So it is possi-

ble the NBA will rescind the technical, and there will be no suspension. We'll find out today.

IMUS: We can only hope.

WOLF: And the other story is Big Baby Davis hit his head -- he was hit in the head, actually you could say an elbow,

but it wasn't like those flagrant elbows thrown. And he went down. And lost a tooth and suffered a concussion and he

looked like a boxer trying to get up and beat the ten count. And finally, he made it -- almost made it to the court, the end

of the court and he was held up. So we don't know if he'll be ready.

And here's Doc Rivers, who had this to say about his big man, Big Baby Davis, and the test he'll take.

BVC

DOC RIVERS, HEAD COACH, BOSTON CELTICS: I don't know what kind of tests they'll do with Baby, because he

is delirious half the time, anyway. So I don't know what the -- if he'll pass the test. I'm worried about that.

EVC

IMUS: Ha, ha, ha.

WOLF: Oh, man.

IMUS: What a dope.

WOLF: He is cold.







IMUS: Come on, Doc.

WOLF: Yes. Yes, get a real doc in there.

IMUS: Yes.

WOLF: Game six in Boston, Friday night. And, of course, tonight, the Lakers-Suns, game five, in L.A., series tied 2-2.

Baseball, the Yanks beat the Twins, twice, 1-0, 3-2, and --

IMUS: Homeruns both times, right?

WOLF: That's right. Derek Jeter in the first one and Nick Swisher in the 9th inning of the second game.

IMUS: Rivera had a couple of saves or one save?

WOLF: Two saves, got a save in both games. Right.

IMUS: Two saves. Wow.

WOLF: The Red Sox --

IMUS: And the Mets won again.

WOLF: The Mets did win again, beat the Phillies, 5-0. Hit a Nori Takahashi ([ph). Six scoreless innings. So the Mets

shut-out the Phillies two nights. And the Red Sox beat the Rays, 11-3. They swept the series. Adrian Beltray (ph), a

single-triple, two home runs and six RBIs. And big poppy, David Ortiz, bats third now, another home run. That's six in

the last 11 games.

IMUS: Well, maybe not so fast writing him off, huh?

WOLF: Uh-huh. Not so fast, right.

IMUS: You had him under the bus, Warner.

WOLF: Yes, I did.

(BEGIN VIDEO CLIP)

DAVID ORTIZ, BOSTON RED SOX: If you ride with me, you're going to get two things. Either you're going to win or

you're going to die with me.

(LAUGHTER)

(END VIDEO CLIP)

(LAUGHTER)

IMUS: So I'm just -- I'm wondering now, is that Bernie or Lou or is that actual cut?

(LAUGHTER)

It's 25 after the hour here on the IMUS IN THE MORNING program.

RUFINO: You may never know.

IMUS: Time for the "FOX Business Network" business report. And here with that is Dagen McDowell.

Good morning, Dagen.

DAGEN MCDOWELL, FOX BUSINESS NETWORK CORRESPONDENT: Good morning, sir.

IMUS: How are you?

MCDOWELL: I'm fantastic -- well, I'm all right. Because yesterday was hot in New York City, it was 90 degrees here.

IMUS: Uh-huh.







MCDOWELL: It was like being stuck in a dumpster behind a seafood restaurant at the beach with a bunch of people

you hate, so --

(LAUGHTER)

IMUS: You know, some people like to hear you talk about sweating on the TV and on the radio. And then -- but I

would be concerned about those people. And did you watch America -- go ahead. Did you say something?

MCDOWELL: You would be concerned about the people who enjoy me talking about perspiring. Yes.

IMUS: Perspiring, yes.

(LAUGHTER)

MCDOWELL: OK.

IMUS: Anyway, you watch "American Idol"?

MCDOWELL: As long as they don't talk about how it smells, then that is OK. Yes, I --

IMUS: What smells?

MCDOWELL: My perspiration. The --

IMUS: How does it smell?

MCDOWELL: Lovely.

IMUS: OK.

MCDOWELL: I did watch "American Idol," in fact. And, Bernie and Lou are absolutely on the money with their as-

sessment. Joe Cocker walked out. That was an amazing moment. Who doesn't love Joe Cocker? Alice Cooper was

there. He was toward the beginning of the show. and then Janet Jackson with an almost shaved head, had on a very un-

fortunate black cat suit that had inserts running down the side of it that were fish net. Needless to say --

IMUS: I'm sure she looked fine.

MCDOWELL: -- the net was bigger in other places.

IMUS: That would be my assessment. What now?

(LAUGHTER)

MCDOWELL: I said, needless to say, the net was bigger in other places than others.

IMUS: Sure. What happens to poor old Crystal now?

MCDOWELL: She'll be a big hit. You know that.

IMUS: She will?

MCDOWELL: Oh, yes. She'll be a big hit. She could be an even bigger hit than Lee DeWyze winds up being. Lee De-

Wyze though looked like he was going to pass out. We're watching video of it now. But when he named him, he bent

over with his hands on his knees. I thought he was just going to faint right there on the stage.

There you go. I cried. But I'm a marshmallow.

IMUS: Why did you cry?

MCDOWELL: Because it was moving.

MCGUIRK: Very emotional.

MCDOWELL: It was very emotional.

IMUS: It was?







MCGUIRK: Yes.

MCDOWELL: Absolutely.

IMUS: You know who did a good job with all of this was, what's the guy, Ryan Seacrest.

MCDOWELL: He does.

IMUS: I mean, he's -- well, He's fine. But he's -- this generation's Dick Clark, is that the deal?

(LAUGHTER)

MCDOWELL: That's right.

IMUS: I like him.

MCDOWELL: They had like, in the old montage photos of Simon, you caught a glimpse of -- what was the guy's name,

Ryan Dunckelberg (ph)? What was his name, who was the co-host the first season?

IMUS: I don't remember.

MCGUIRK: You were close.

MCDOWELL: Dunkel-something-something.

MCGUIRK: Dingleberry, whatever.

MCDOWELL: Right. Anyway, so --

IMUS: it wasn't Dingleberry, I don't think, Bernie.

MCDOWELL: It was a nice reminder.

IMUS: I guy wouldn't have a name like that. That would be stupid.

(LAUGHTER)

What is going on in business?

MCDOWELL: Two of probably the dumbest financial attempted-crooks were busted by the FBI and charged with at-

tempted insider trading. This is an executive assistant in Walt Disney's Corporate Communication Department, and her

boyfriend. They sent letters to dozens -- letters to dozens of hedge funds and investment firms, offering to sell them the

earnings information about Disney before it came out. And, duh! The firms turned the bozos in. And we have come to

find out the woman, who was working at Walt Disney, named Bonnie Jean Hoxie (ph), and then her boyfriend, Janni

Sebag (ph) -- she wanted. She was just interested in shopping. She was sending him photos of a Stella McCartney's

$700 hand bag that she wanted him to buy, some shoes. Needless to say, they have been charged.

IMUS: Matt Taibbi is coming up. He's claiming that Chris Dodd and Harry Reid and some of these other folks on the

financial reform bill trying to water the thing down before they finally pass it, taking all the teeth out of it.

It's not surprising, is it?

MCCORD: Of course not.

MCDOWELL: Well, is watering down making it less onerous and ultimately less hard on consumers across the coun-

try? Because, again --

IMUS: No, I think it's --

MCDOWELL: -- there's a lot of stuff in there that some of these lawmakers didn't know what they were doing, and just

kind of throwing stuff in there willy-nilly, not ever having worked in the industry.

IMUS: I think it's -- why would I be surprised that you and Neil Cavuto --

(LAUGHTER)







-- and to a lesser degree, Jenna, would be sticking up for your rich buddies on Wall Street. But I'm a man of the people,

me and Charles and Matt Taibbi --

MCCORD: Absolutely.

IMUS: -- and we're looking out for our peeps.

MCDOWELL: I just don't think that politicians always know best.

IMUS: We don't, either.

(LAUGHTER)

Anyway, thank you very much, Dagen.

Dagen McDowell, here on the IMUS IN THE MORNING program.

It is 29 after the hour.

This is one of Matt Taibbi's favorite songs for some bizarre reason.

(MUSIC)

ANNOUNCER: The wild west of talk radio. IMUS IN THE MORNING.

IMUS: This is the IMUS IN THE MORNING program. Time now for a business update, from the FOX Business Net-

work, here's Jenna Lee.

LEE: Good morning, everybody. Here's your "FOX Business Minute."

President Obama today will announce a moratorium on drilling new deep water well at least for the next six months,

that is coming from the White House aide this morning, the president will answer some questions at a news conference

today at 12:45 Eastern Time. FOX Business will going to have live coverage of that. President Obama will also be trav-

eling to the gulf region tomorrow. In the meantime, BP engineers say, they won't know until this afternoon if the latest

operation to seal the oil leak in the gulf is actually successful.

In the meantime, Treasury Secretary Tim Geithner in Berlin today for a meeting with the German finance minister. He's

actually talking to the press now in Berlin. These are some live pictures from that news conference. Geithner says, Eu-

rope has a good plan to deal with its debt crisis but it must act on that plan, soon.

Also, two big economic reports throughout this morning, 8:30 Eastern Time, we'll going to get a second look at first

quarter GDP, this report expected to show a growth of 3.4 percent, that's up slightly from the first estimate, we're also

going to get initial jobless claims, 455,000 people expected to have hit the unemployment line for the first time in the

latest week, that would be down from last week when we saw that very unexpected jump in claims.

Here's a look at commodities right now, four percent gain for oil, yesterday and it's up higher this morning by nearly

three percent, gold is flat.

More IMUS IN THE MORNING coming your way, next.

(BEGIN VIDEO CLIP)

IMUS: What happened with the market yesterday, Connell?

CONNELL MCSHANE, FOX BUSINESS NETWORK CORRESPONDENT: It was nuts, wasn't it? Yes, what we --

IMUS: I don't know.

MCSHANE: At this time yesterday, well, that is why you asked what is happening with the market, but the Dow futures

are up 46 points, this morning, I have some just terrific statistics on the markets, so I thought maybe I would read a few

of them. You could pretend as though you're interested in the meantime, and at the end of every sentence, you would

just say something like, well I'll be darned and then, we'll move on.

(LAUGHTER)







IMUS: We just don't have and in order that amount of time here.

MCSHANE: OK.

IMUS: For foolishness from you.

(END VIDEO CLIP)

IMUS: It is 36 minutes past the hour here on the IMUS IN THE MORNING program. Government Meo (ph) -- broth-

ers, coming up next week, I will be - - I'll still be here in New Mexico, I will be here until September, and they'll be on

the FOX studio there in New York on the radio on FOX all over the country. I'm chuckling, because locally in New

York, we have a commercial for "FOX & Friends" or fiends.

MCCORD: Yes.

IMUS: And it made me want to watch them, so, but, unfortunately, well, I don't. Anyway, please welcome now "Roll-

ing Stone" magazine, Matt Taibbi. Good morning, Mr. Taibbi.

MATT TAIBBI, "ROLLING STONE": Good morning, I-man.

IMUS: How are you?

TAIBBI: Good, yourself?

IMUS: I'm good. How is your new dog?

TAIBBI: She's good, actually. She's learning new tricks, I taught her to put away her toys.

IMUS: What kind of a dog is it again?

TAIBBI: It's the German short haired pointer.

IMUS: Knowing better than a dog.

TAIBBI: Yes.

IMUS: So, this article in the Rolling Stone, "Wall Street's War," Congress looks serious about financial reform until

America's biggest banks unleash an army of 2,000 paid lobbyists, tell me about this.

TAIBBI: Yes. Well, the lobbying story was kind of amazing. I was physically bumping into these guys in the hallways

and in some of the offices and some of the senators while I was there.

There are 2,000 lobbyists for the financial services industry and there is really only one group on the other side, this

Americans for financial reform and they have only 60 people, and -- lobbyists and they are all volunteers. So, that was

the kind of the setup, in terms of, you know, the forces, gathered on your side, but, still, it turned out to be not a com-

plete blowout for Wall Street in this one, there are some good things in the bill.

IMUS: Well, let's go through your article. And this front by front.

TAIBBI: Correct.

IMUS: Number one, auditing the Fed. Tell me about that. It was the first thing the lobbyists approached? Explain that to

me.

TAIBBI: Well, you know, obviously there is a big movement, affront to a foot to try to find out exactly who got, you

know, the trillions of dollars in basically secret loans from the Federal Reserves since 2008. And as you know, the orig-

inal Federal Reserve act does not allow Congress to look in the books of the Fed ever. So, there been an attempts going

back decades to try to open up the Fed's books, they've all failed, this time around, there is a group in the House led by

Ron Paul and Alan Grayson and in the Senate by Bernie Sanders to pass an out of the Fed amendment and they finally

did.

Bernie Sanders got an amendment through that will allow for a one-time audit of the Fed, it goes back to 2007 and then

through the date of when this bill is pass and it's only going to be that one time, they will not allowed to go further back







into the past or further into the future. But it's still a pretty good bill, I mean, the fact that they even got anything passed

is kind of amazing.

IMUS: Well, there are other aspects -- we're talking with Matt Taibbi from "Rolling Stone," 21 until the hour. There are

aspects in the bill though that Dagen mentioned that were not beneficial to consumers that his lawmakers didn't under-

stand --

TAIBBI: Well, what she's talking about is the Consumer Financial Protection Bureau and, the signature reform in this

bill is they are creating this massive new federal agency that's specifically charge of protecting consumers, it's sort of

designed to, you know, prevent credit card companies from, you know, selling you a credit card that has a 30 page con-

tract with hidden fees and if you don't understand or predatory mortgage loans, that kind of stuff, and the republicans,

and a lot of people on the other side were basically trying to sell -- they couldn't come out right out and say, we want to

keep screwing our customers with these confusing predatory loans, they had to say something.

So, what they said was, you know, this is going to hurt butchers and cabinet makers and carpenters, they had this whole

ad campaign designed to say, you know, this bill is going, this new agency is going to hurt these small businessmen

where is, in fact, you know, it is really aimed directly at Goldman Sachs and JPMorgan and those sorts of people.

IMUS: So, this financial reform bill that you're saying, was passed in spite of the efforts of people like Chris Dodd --

was Chris Dodd noble in his efforts in this or no?

TAIBBI: Not really. You know, look, there are really three groups of people in this bill. The republicans, who were

against absolutely everything in it and we're pretty much openly lobbying on behalf of Wall Street. There were the

democrats in the middle, who were trying basically to take the fork in the road between what Wall Street wanted and

what they could sell to their constituents as real reform, then, they're really people, they are real good guys where really

trying to do something and fix the mess that happened in the last decade or so. And that is people like Ted Kaufman in

Delaware, Sherrod Brown, Jeff Merkley at Oregon. Carl Levin, Bernie Sanders, all these people were sort of the, you

know, they were leaving it on the field and this one. They got some good things done but Dodd and Reid, those guys

were really trying to sort of split the difference between, you know, the fork in the road in this one.

IMUS: So, this bill now, it goes to the House, right?

TAIBBI: Well, it's going to go to a conference now. It's already passed in the House.

IMUS: OK.

TAIBBI: So, there's a lot of important things that have to be resolved in the house and one of the things, there's this real-

ly kind of amazing section, amazing in the sense that it didn't get killed already, there's a portion in the derivatives part

of the bill, section 716, which would force all the biggest banks in the country to basically spin off or sell off their

swaps desks which, you know, in the case of a company like JPMorgan, that's almost half of their profits, come from

swaps and derivatives and somehow, despite the efforts of Dodd and Reid and all these people who tried to kill it at the

last minute, it survived in the senate version of the bill. However, nobody expects that to survive in conference. It's

probably going to be watered down. One of my sources yesterday described it as a Niagara falls style watering down,

that's going to take place in conference, that's probably the first thing that's going to go.

IMUS: How about ending "Too Big to Fail"?

TAIBBI: You know, there is already a "Too Big to Fail" portion in the House bill that was put in by Jaworski (ph), but

there was an even tougher version in the senate that they tried to pass, Sherrod Brown and Ted Kaufman had a thing in

there that would have automatically broken up companies that got too big or too risky and wouldn't have been depen-

dents upon, you know, which regulators are in the office. So, it would have just automatically done it if they pass a cer-

tain numerical figure. That bill, they had troubled getting it to a vote and all, and then, finally, they get it to a vote that

got absolutely walloped. You know, 27 democrats even voted against it. So, that was a major blow to the reform efforts,

that was sort of one of the signature things that they were trying to pass and it didn't get through.

IMUS: Seventeen until the hour, talking with Matt Taibbi from "Rolling Stone" magazine about this financial reform

bill which I can barely, barely pay attention to.

(LAUGHTER)







TAIBBI: That's one of the problems. I mean, it's so confusing that, you know, nobody is really interested in it except,

you know, all the richest people in the world are, you know, desperately interested in it.

IMUS: And I can only read your articles because, it sounds like I'm patronizing you and I'm obviously not, but only

because you are willing to write in a colorful manner and assign icky names to these various people, including a-holes,

and so it makes it, that's why I can't wait for your book on this. Because it just makes it -- I mean, the guy came up with

vampire squid, I mean, it is worth reading about this financial mess but the problem is, not only does it make my neck

and hair hurt, it makes everybody's, as you just said, so.

TAIBBI: I know, we actually had that problem with this article, and, you know, my editors actually asked me to insert

more insults in there.

(LAUGHTER)

TAIBBI: So, I described Richard Shelby as -- I said he looked like an elderly sumo wrestler in drug in this one. There's

a few of those in there.

IMUS: Name calling is that is our level.

TAIBBI: It's a beautiful thing.

IMUS: Yes, it is beautiful.

Sixteen until the hour. We're talking with Matt Taibbi. Well, you know, digressing just a tiny bit to this BP oil spill. Not

only the spill, obviously, but, the administration and the president's response, because people like James Carville and

others, who one would expect to be loyal to the president, under almost any circumstances have not been. What is your

take on it?

TAIBBI: Well, you know, I was always hesitant, you know, even when Katrina happened, you know, to blame a natural

disaster, you know, on an administration. You know, it is not their fault that a hurricane comes, it wasn't George Bush's

fault that a hurricane destroyed New Orleans. But, on the other hand, you know, you can't say what their performance

after the fact has been all that good. And you know, Charles and I are just talking about it. They have been really slow

to clean this up and there are, you know, measures that probably could have been taken. As far as I understand that

haven't been taken. So, this is, you know, not a shining moment for the Obama administration. That's for sure.

IMUS: Well, Carville described the president as lackadaisical and naive and there are others are suggesting that he's in

bed with these oil companies.

TAIBBI: Well, I mean, everybody is in bed with this oil companies in Washington. I think, you know, that's going to be

the story that is probably going to come out of this in the end, as you know, the fact that there weren't safety measures in

place is a symbol of, you know, how we do, you know, protective regulation in this country, if you have enough money

to lobby the right people, it kind of doesn't matter whether you have safety procedures in place or not and, you know,

this is the kind of thing that can happen, as a result.

IMUS: Coming up on 16 until the hour, talking with Matt Taibbi from "Rolling Stone," you know, when I think of you,

I think of you in this darkened room, like one time before Kurt Vonnegut, he passed away, but I was over in his apart-

ment in Manhattan, because that's when Geraldo Rivera was going to marry his daughter, maybe did marry her.

TAIBBI: Geraldo is going to marry his own daughter or he's going to marry Kurt Vonnegut's daughter?

IMUS: Probably both, no, he was going to marry Kurt Vonnegut's daughter. But when Kurt was writing "Breakfast of

Champions."

TAIBBI: I love that book.

IMUS: And he had a typewriter and a TV and a little tiny room with a light bulb hanging over, and there was nothing

else there and it was the weirdest. So, that is how I envision you. I don't, for example envision you sitting around watch-

ing, let's say, "American Idol." My question is, did you or do you?

TAIBBI: I did not watch "American Idol." No. I didn't even know what it was until pretty recently.







IMUS: That restores my faith in you.

(LAUGHTER)

IMUS: That is what I love in you. How about "Dancing with the Stars"?

TAIBBI: No. It was really pretty, the last time I was on the show, you asked me a question about Jesse James and I

didn't even know who he was.

IMUS: God bless you.

TAIBBI: I had to completely fake that one, you know, that was --

IMUS: All right, man. Always, nice to have you on, thank you very much.

TAIBBI: All right. Thanks, Imus, feel good.

IMUS: Matt Taibbi. I feel fine, Matt. I mean, I'm battling cancer, but --

TAIBBI: But aside from that, right?

(LAUGHTER)

IMUS: I'm coughing up stuff from the '80s, now, this morning. Anyway, Matt Taibbi, "Rolling Stone," 13 until the

hour.

ANNOUNCER: IMUS IN THE MORNING.

IMUS: This is the IMUS IN THE MORNING program. Time now for a business update, from the FOX Business Net-


LEE: We do have some breaking, earning's news, Heinz out with its fourth quarter results these moments ago. Earnings

coming in at 60 cents a share, beating analysts' estimates by a penny. Revenue of $2.72 billion. Also, below expecta-

tions, so, a beat on earnings per share revenue a little lower. Heinz raising its quarterly dividend to 45 cents a share from

42.

Let's get to your "FOX Business Minute" now.

President Obama will announce the moratorium on drilling new deep water wells today. He's going to say that morato-

rium continues at least for the next six months. This coming from a White House aide this morning. The president will

answer questions at a news conference today, starting at 12:45 Eastern Time, FOX Business will going to have live cov-

erage of that. President Obama will be traveling to the gulf region tomorrow. In the meantime, BP engineers say, they

won't know until this afternoon if the latest operation to seal the oil leak in the gulf is in fact successful.

Treasury Secretary Tim Geithner in Berlin today for a meeting with the German finance minister, they just wrapped up

a news conference moments ago. Geithner is saying, the U.S. and Germany are working together on financial reform

and in fighting deficits as well.

Also, Lehman Brothers is suing JPMorgan saying, it helped force the bank into collapse. According to the "Wall Street

Journal," Lehman says, JPMorgan CEO Jamie Dimon and other executives used inside knowledge to take advantage of

Lehman and it's the final days. The suit claims JPMorgan forced Lehman to turn over $8.6 billion in collateral, that

created the liquidity shortage that in fact ruined Lehman.

That is your "FOX Business Minute."

Here's a quick look at futures that are up, and going this morning.

IMUS IN THE MORNING continues right now on FOX Business.

IMUS: All right. Seven minutes until the hour here on the IMUS IN THE MORNING program. And that is great about

Matt Taibbi, he has no idea what "American Idol," "Dancing with the Stars" and all that stuff. Sitting there plotting how

to just do horrible stuff to people, so.

Anyway, who are you this morning, Rob?







ROB BARTLETT, COMEDIAN: Godfather and Gangster Mickey.

IMUS: OK. We don't have time for either one.

BARTLETT: OK.

IMUS: How are you?

BARTLETT: Good.

IMUS: How did that wine thing go? You and Tony did yesterday?

BARTLETT: Yes, it was very interesting experience. The kind of people that show up at 3:00 in the afternoon for free

wine tasting.

IMUS: Well, that one back in the '80's, it would have been me.

BARTLETT: That was a lot of fun, they had a great turnout. It was a lot of fun.

IMUS: Does it sound sincere to you, Charles?

MCCORD: Yes, it does as a matter of fact. It actually does.

BARTLETT: Tony and I were dressed up in wine bottle outfits, you know.

IMUS: For those of you watching on the FOX Business Network, let's ask Rob, what exactly is the point of having our

shirt unbuttoned down to nearly our naval? Are you trying -- is it designed to make us hot or what?

BARTLETT: Just make you hot.

IMUS: Well, but, it's not. It is actually disturbing.

BARTLETT: Well, then my work here is done.

IMUS: That is not even a good answer, is it, Bernie?

MCGUIRK: He's got that Rush Limbaugh chic look.

BARTLETT: That's right.

IMUS: Yes, that really look like -- you look like Rush Limbaugh.

BARTLETT: My friends --

(LAUGHTER)

MCGUIRK: Shaking the ladies off his feet. Leave me alone.

BARTLETT: Can I get a wop-wop.

IMUS: You can't do that (INAUDIBLE).

BARTLETT: No more after this.

(LAUGHTER)

IMUS: What is the Godfather are going to be talking about.

BARTLETT: Godfather is talking about Jesse James.

IMUS: What a disgrace that is. Now his sister, I was reading on TMZ this morning, claiming that, yes, in fact the father

did cause the kid to break his arm but oh my God. All right. All, that's coming up, five until the hour.

ANNOUNCER: IMUS, IMUS, IMUS IN THE MORNING.

(BEGIN VIDEO CLIP)







HOWARD KURTZ, "THE WASHINGTON POST": I think, the story of the week is this Fergie tape and everybody

had a great time --

IMUS: Well, tell me about this.

KURTZ: Well, I mean, he had this British tabloid, the news of the world, you know, doing this undercover sting, where

one of these reporters impersonates a businessman and then lures Sarah Ferguson to London apartment and hooks up

the scheme where he is going to give her 500,000 pounds, for -- in exchange for an introduction to her ex-husband,

Prince Andrew. And so, the British, you know, love this sort of blood sport when it comes to the royal family. And, you

know, Fergie's conduct was appalling, she was, you know, practically getting a plastic sack to put the money in. But I'm

having a problem with that, I mean, why is it OK for journalists to lie and cheat and deceive and pretend to be some-

body else in pursuit of a story? It is very popular on Fleet Street, but, to me, it crosses a pretty bright line.

IMUS: Yes, I'm thinking about your question, as you are asking it. I don't know.

KURTZ: You know, I talked to a spokesman for the news of the world and they say, it is legitimate public interest here

that they're trying to dress it up as being some great public service. I mean, I don't know that a washed up former weight

watchers spokeswoman was posing a grave threat to British society.

IMUS: That's a good point.

KURTZ: I think they just do this for sport.

(END VIDEO CLIP)

ANNOUNCER: IMUS IN THE MORNING.

IMUS: This is the IMUS IN THE MORNING program. Time now for the business update from the Fox Business Net-

work, here's Connell McShane.

MCSHANE: All right, good morning everyone. And we're starting off with a business alert on this Thursday morning.

Setting up for a big day in the markets after the late day sell off we saw yesterday with the DOW closing below the

10,000 mark.

Stocks are surging all around the world this morning and here's the U.S. futures up nearly 200 on DOW futures. And St.

Louis Fed President, James Bullard, saying he does not expect contagion from Europe's fiscal problems to come to the

United States. He says the U.S. actually could benefit as people seek safer investments.

Now to Europe, also, big rally there, as well, comes on reports that China will not after all be reducing its investments in

Europe.

Treasury Secretary Tim Geithner's European trip is continuing today, in Berlin. A news conference between Geithner

and the German Finance Minister just finished up. Geithner saying the U.S. and Germany are working together on fi-

nancial reform and also on fighting deficits.

Last night, Geithner spoke with the president of the European Central Bank and Geithner says Europe has a good plan

to deal with its debt crisis, but, that it must act on that plan soon.

All right, your other top stories here in a Fox business minute, President Obama today will announce the moratorium on

drilling new deep water wells will continue for six months. That's coming this morning from the White House aide, the

President will answer questions at a news conference, 12:45 Eastern time.

Fox Business providing live coverage of that. President Obama will be going to the Gulf region tomorrow.

Meanwhile, BP engineers say they won't know until this afternoon if the latest operation to seal the oil leak in the Gulf

is successful.

All right, Warren Buffett is being called before the panel that's investigating the financial collapse. The Berkshire-

Hathaway CEO will testify to the financial crisis inquiry commission on the 2nd of June, as part of the look into ratings

companies. Berkshire is a long time shareholder in one of those companies, Moody's.







And we also have earnings news already in this morning from Costco, better than expected profit and sales reported

there. The earnings per share came in at 68 cents, two cents better than the estimated for the warehouse retailer, which is

bringing in nearly $18 billion in third quarter revenue. When you take out gas prices, same-store sales rising by four

percent, compared to the same time last year.

Also, here, breaking news coming from Tiffany, first quarter earnings at 50 cents a share from Tiffany, that beat the

estimates by 13 cents. Higher sales from around the world, here on the global operations revenue, also better than ex-

pected; $633 million plus. Tiffany is expecting global sales to continue to rise in the double-digits for the rest of this

year. Better than expected numbers, out of Tiffany.

Let's go to commodities now and show you those boards, $73.32 for a barrel of crude oil, up a $1.81 this morning; gold

is down 30 cents as IMUS IN THE MORNING continues, right now on the Fox Business Network.

(BEGIN VIDEO CLIP)

MCCORD: Mercy for Animals has done an undercover video at a farm in Ohio, the Conklin Dairy Farms, Inc. and

they've submitted the video now to the prosecutor's office in Marysville, Ohio. And it's just awful.

It shows workers at this dairy farm beating cows, with crow bars and stabbing them with pitch forks and just beating

them -- you can't believe it. You just can't believe it.

IMUS: Yes.

MCCORD: Holding down newborn calves -- I'm not go into it for you because I -- I can't talk about it, either. But it is --

it's something that people have got to be aware of. Conklin Dairy Farms --

IMUS: People don't want to hear about it.

MCCORD: I know.

IMUS: Bernie doesn't want to hear about it. Lou doesn't want to hear about it.

RUFINO: No.

IMUS: Or fat Rob and stupid Tony they don't want to hear about it.

MCCORD: I know.

IMUS: They want to go to McDonald's and they don't care about it.

RUFINO: It's not good, Dawg.

IMUS: And here is the thing. David Kirby, who is a wonderful writer at New York Times --

MCCORD: Right.

IMUS: He can't go on any -- he can't get on any program to talk about this. And it's a crisis in this country. We talked to

that idiot Tom Friedman, who has been a regular on this program for 20 years -- and that moron wrote a book about the

environment, and he -- and he -- I sound angry, don't I?

MCCORD: Well, I don't blame you.

IMUS: And he tried to tell me it wasn't on -- and he's trying the hot, flat and stupid, the hot and flat -- and whatever his

f-ing book was called, he said it wasn't on his radar.

MCCORD: Hello?

IMUS: Well, I mean, it wasn't on his radar.

MCCORD: What's the matter radar out? Radar screen down?

IMUS: Well, I mean, this is -- it's insanity and nobody is -- I mean, at least I'm not railing against people eating meat or

any of that sort of thing. A lot of my friends out here own cattle ranches, I wouldn't be against that, obviously but there

is a humane way to go about this and nobody wants to talk about it because, well, we follow the money.







MCCORD: Yes.

(END VIDEO CLIP)

MCCORD: Ladies and gentlemen, IMUS IN THE MORNING.

IMUS: Five minutes after the hour here on the IMUS IN THE MORNING program on the radio all over the country, on

the Fox Business Network all over the world.

Patrick McEnroe, live from the French Open is coming up. He's there for the tennis stuff for ESPN, he's the Davis Cup

Captain, all that. And Chris Wallace, we'll talk to him from Fox News, not the Fox News Sunday and see what's up

there and then Congressman Eric Cantor, he's coming up as well.

Charles has the news. What's ahead there -- Chuck?

MCCORD: I-Man, still just waiting to see what happens now, with this latest attempt to plug up the oil leak, Gulf Coast

residents, obviously, anxiously -- well, this is a country, awaiting word on whether this "top kill" method is going to do

anything.

Yesterday, the BP chief executive, Tony Hayward said engineers would not know until at least this afternoon whether

this latest attempt, this latest remedy was having some success. So if it -- if it does stop the flow, with this heavy materi-

al, this viscous liquid stuff known as drilling mud, if they get enough of that in there that it overcomes the pressure of

the oil coming out that would stop the flow and then BP would then inject cement into the well to completely seal it off

and kill it. So they are simply waiting.

In the meantime about --

IMUS: It doesn't look good, looking at the photo of it.

MCCORD: Yes, it's still --

IMUS: The video of it, whatever it is.

MCCORD: The nature of it has changed. The color of it has changed as Jenna Lee was observing earlier. That it was

inky black yesterday and is now returned to kind of that reddish stuff. And the white stuff coming out apparently is

some natural gas.

But boy it is still coming out at least at this whole point.

IMUS: And what good is it?

MCCORD: Well, that I don't know.

IMUS: What else going on?

MCCORD: Coast Guard has pulled commercial fishing boats off of an area off the coast, because of several people had

become ill like crews working on this thing. They try to clean it up and the fumes are toxic. And there are have been

reports of nausea, dizziness, headaches, chest pains, four people had to be hospitalized including a guy who had to be

flown out, flown to a hospital.

So that's another problem and then there is this big front page article in the "Times" this morning, I-Man, that BP re-

portedly installed a type of cement casing, well casing --

IMUS: What?

MCCORD: -- that it knew carried more of a gas leak risk --

IMUS: Wait a minute what is that -- are you sure it's British Petroleum, are you talking about now?

MCCORD: Yes.

IMUS: With this oil coming are sure, Charles?

MCCORD: I think that is what's the --







IMUS: It's not some kind of -- some kind of the left wing nonsense you are bringing up, or the right wing, whatever it

would be.

MCCORD: No, it is above the fold on the right-hand side of the page this morning. Front page, I-Man.

IMUS: I'll be darned.

MCCORD: They say that if they knew if the cement around the casing pipe didn't seal properly gases could leak all the

way to the well head, where only a single seal would serve as a barrier. If they had used this other type of casing, there

would have been a double seal.

IMUS: Of course we also know they didn't have -- an auxiliary shut off, an acoustic switch available, a remote acoustic

switch, because that would have cost another half million dollars.

MCCORD: Yes.

IMUS: So they didn't want to spend that money.

MCCORD: And they -- according to this -- this document that was provided to the "Times" by an unnamed Congres-

sional investigator, this approach was taken by the company and it was described as the best economic case.

IMUS: I'll be -- whatever. Ok, Jenna Lee, is it Jenna Lee or Connell.

MCCORD: It's Connell.

IMUS: All right, Connell McShane is coming up with the business network business report. What's up -- Connell?

MCSHANE: Well, the markets a big story again today. I mean, yesterday was another one of this volatile session and

today, we're up by almost 200 points on the DOW futures. So -- and it looks like it will be a higher open at least.

It's funny that rumors seem to work their way into the markets and things are so fragile these days. So they'll -- that

they'll move the markets a lot and yesterday's rumor was that because of all the problems over in Europe, China was

going to kind of bail out on Europe and stop investing there.

At least pull back their investments and the Chinese came out overnight and said, no, we're good with that, we're to

going to keep investing in Europe and now the markets are up 200 points.

IMUS: Whenever you say, like it's funny and then you talk about something that happened with the market -- I'm -- yes,

I'm mistakenly think that you are implying that it's going to be humorous. But --

MCSHANE: And you can tell it, not only was it not humorous, it may not even have been well, informative. But it --

IMUS: Well, it was interesting. Wasn't it interesting, Charles?

MCCORD: Yes it was, as a matter of fact.

MCSHANE: Thank you Charles.

IMUS: Connell McShane is coming with the business news throughout the morning and Dagen McDowell will be on in

just a little while as well. It's time for a little sports now, and here with that is Warner Wolf. Good morning -- Warner.

WOLF: Good morning, I-Man, not so fast, Celtics; Magic wipe out the Celtics, 113-92, they cut it to three games to two

and the Celtics not only lost the game but Kendrick Perkins was hit with a 7th technical of the playoffs. He could be

suspended for game 6. And Big Baby Davis had a concussion and lost a tooth. Game 6 tomorrow night, in Boston.

IMUS: Looks like Mike Tyson, trying to get --

WOLF: Yes.

IMUS: -- to get up after Buster Douglas (ph) knocked him out or --

WOLF: Yes.

IMUS: -- any of these guys he get knockout him.







WOLF: That's right, Tyson trying to find his mouth piece.

IMUS: Yes.

WOLF: He's trying to find his tooth.

IMUS: Well --

WOLF: Lakers-Suns, tonight, in L.A., at 9:00. Baseball, Yanks beats Twins, twice, 1-0 and 3-2. Jeter's Homer, won it

the first game and Swisher's homer off six foot eleven John Roush won the second game, Rivera, two saves. And Red

Sox swept the Rays. And Big Poppy, promoted the third in the order, a two run homer.

IMUS: And you had Big Poppy under the bus.

WOLF: I had him out.

IMUS: Yes.

WOLF: Absolutely, shows what I know I-Man.

IMUS: Well, I don't know about that. I mean --

MCGUIRK: But that's the implication however.

WOLF: Yes.

IMUS: Yes, well I guess maybe it is. Yes, I'm sorry, Warner.

WOLF: Yes, get him out.

IMUS: I'm implying that you are a dope -- and you are anything but a dope.

WOLF: Oh thank you.

IMUS: Were you at the wine tasting yesterday with Rob and Tony?

WOLF: No. No.

IMUS: Are you're kidding? You weren't?

WOLF: No I wasn't.

IMUS: That is unbelievable.

WOLF: No, well my daughter graduated Mercy College and received a Master's in --

IMUS: Well, congratulations to her.

WOLF: Yes, that's where I was.

IMUS: Ok.

MCGUIRK: Yes.

IMUS: Well, good for you and her.

WOLF: Thank you, thank you.

IMUS: Congratulations also to Mike Lupica and Taylor Lupica's son Chris, he graduated from Boston College.

MCCORD: All right.

IMUS: And so did Sam Juris, the son of David Juris and Alice, I believe, one of his wives, he had about nine. He gradu-

ated from Boston College, as well. So -- what's the matter?

RUFINO: I love my son.

IMUS: Any more sports, Warner?







WOLF: Well, yes finally, you talk about a scam, six University of Kansas employees, they worked in the ticket office,

they've been charged with selling over 20,000 football and basketball tickets worth over $3 million, over a five-year

period and kept the money, themselves.

IMUS: I don't have a problem with that. Thank you, Warner.

All right, time for a -- time for the "Bernie Briefing", sponsored by PC Richard and Sons and here with all of that is

Bernard McGuirk. Good morning Bernie.

MCGUIRK: Hey Chief, you know that Tuesday night's the "Nightline" broadcast with Jesse James, the biker, Sandra

Bullock's estranged husband, they got the biggest numbers ever -- well, since March 21 of '03 on "Nightline", that was

the first day of the Iraq war. Seven million people watched Tuesday night, to watch this Bobo whine about his daddy

beating him up.

IMUS: Maybe you're on to something there.

MCGUIRK: And last night's "American Idol," a great show capped by a great call of Ryan Seacrest, making the call,

last night.

(BEGIN VIDEO CLIP)

RYAN SEACREST, "AMERICAN IDOL": The winner -- of "American Idol" 2010 is -- Lee Dewyze.

(END VIDEO CLIP)

IMUS: That was good.

MCGUIRK: Good.

IMUS: That was good. He's just the right timing, right?

MCGUIRK: With Marv Albert or Jim Nance (ph) or any of the great sports casters.

IMUS: Ryan Seacrest. Not bad, not bad. Thirteen after the hour, do we have the Joe Cocker from the other night? Or

from the last night?

Let me hear that.

(BEGIN AUDIO CLIP)

(EXCERPT FROM "AMERICAN IDOL" FINALE)

(END AUDIO CLIP)

MCGUIRK: Ok, that's all.

IMUS: Come on. It's 13 after the hour. Please. No more of that. Dagen way oversold that way oversold it. So did you

and Lou.

UNIDENTIFIED MALE: What was wrong?

IMUS: No, I don't know.

MCDOWELL: No, no, no, no.

MCGUIRK: You have to see the whole thing.

IMUS: You had to be -- you had to be watching the show and drunk. So --

MCGUIRK: Crystal and Lee led up to him coming out, it was like a crescendo when he came out and he hit the high

notes perfectly --

IMUS: You should be on "Nightline" blubbering with Jesse James.

MCCORD: Oh my God.







IMUS: You turned into a pansy right before our eyes here. You got to man up. It's 14 after the hour.

(MUSIC)

IMUS: This is the IMUS IN THE MORNING program. Time now for a business update from the Fox Business Net-

work, here's Connell McShane.

MCSHANE: And here comes your latest "Fox Business Minute" beginning with an announcement out of the White

House this morning. The economy plays a key role in the President's national security strategy; a document released this

morning says. And it says cutting this deficit is tied to the goal of boosting U.S. strengths and recovery is central to the

strategy because the economy is, quote, "the well spring of American power". That, from the White House this morning.

Treasury Secretary Tim Geithner's European trip continuing today; he's in Berlin at a news conference between the sec-

retary and the German finance minister, just finished up. Geithner saying the U.S. and Germany are working together on

financial reform and in fighting deficits.

And the Treasury Department is bringing another $6.2 billion by selling off shares of Citigroup, the stock selling for an

average of $4.13 a share, makes a profit of $1.3 billion for the American taxpayer. Taxpayers still own 22 percent of

Citigroup but the government will sell more of its holdings, later on this year.

All right. Let's look at the stock index futures, up 195 on Dow futures ahead of the open this morning as we head over to

Charles for more of this morning's top stories.

MCCORD: And the latest on the big story, Connell, BP should know some time today maybe -- later today, if its latest

efforts to shut down the gulf oil leak is successful; crews pumping mud into the well since yesterday. The top kill me-

thod, it has worked above ground but never been tried at 5,000 feet under water.

And potentially about the Gulf, hurricane forecaster William Gray predicting, quoting him, a hell of a year for the cur-

rents hurricane season; believes it will be more severe than previous forecasts, 8 hurricanes, 4 in the major category.

A couple of the headlines as the IMUS IN THE MORNING program continues now right here on the Fox Business

Network.

IMUS: It is 20 minutes after the hour here on the IMUS IN THE MORNING program on the radio all over the country

and on the Fox Business Network all over the world.

You know, I was talking to Deirdre Imus yesterday, out here at the Imus Cattle Ranch for Kids with Cancer and her

center and to some degree -- we have been inundated with e-mails, Charles, from people curious about the regimen I'm

on battling prostate cancer because I opted early not to have an operation, not to do chemotherapy or radiation because

having the luxury to go around the country and thoroughly investigate it, I discovered that the downside of all of these

various procedures, were hideous. And that they weren't truthful about the side effects.

So I went on under the direction of both Deirdre and Dr. Aaron Katz at Columbia, a radical holistic approach. So I hesi-

tate to talk about what -- I mean, because I don't know if it will work for you or not but it is a diet of 95 percent raw

food and no sugar of any kind, period. Obviously no meat, no -- none of that stuff. And then 50 or 60 various herbs and

vitamins and all of that sort of thing and the habanera pepper pills and habanera peppers.

And they did a test at Columbia Presbyterian, Dr. Katz did, and these habanera pepper pills kill cancer cells. So I've

managed to lower my PSA to 3 points lower than it was when I was diagnosed with cancer. And for me it's back in what

was my normal range for years.

MCCORD: In your case, in your case, dramatic results.

IMUS: But, it is -- and a couple of exercise -- but it is a Turkish prison diet. I'll get Deirdre to come down talk about it

briefly, one morning and maybe she'll -- who knows -- But, she'll have some advice that anybody can adhere to and that

-- it worked for me, so.

MCCORD: That's right.







IMUS: And people like Jeff Greenfield and Pat McEnroe are not making fun of my diet any more. Speaking of Mr.

McEnroe, the lead tennis analyst for ESPN, he's a Davis Cup captain, and something else. Here he is live from France,

Pat McEnroe.

Good morning Mr. McEnroe.

PATRICK MCENROE, LEAD TENNIS ANALYST, ESPN: Didn't you mean a Pulitzer prize potential winning author,

wasn't that the next -- the thing you forgot there, I-man.

IMUS: you're not going to win a Pulitzer prize for your book.

MCENROE: I was thinking you'd go out of your way to help me promote it. You can have me on your show and we're

going to discuss it in a couple of weeks when it comes out June 8th and I'll probably come in for a whole morning prob-

ably one day, right?

IMUS: No, that is not going to be the case.

MCENROE: Why is that?

IMUS: Well, you were here -- we are not here to discuss your stupid book.

MCENROE: Well, how do you know it's stupid? I don't appreciate that at all.

IMUS: Well, you're the one who brought it up.

MCENROE: Well, I'm asking you, have you read the book?

IMUS: The answer is no.

MCENROE: That is very upsetting. I mean I'm not surprised. Because -- I mean you kicked me off your show years ago

and you will --

IMUS: You'll have to just try to get over that.

MCENROE: Because you are eating all this herbs and I'm over here in Paris eating a little (INAUDIBLE), having a nice

cheese and a little meat and steak treats. You should come over and enjoy some of that; that might help your PSAs.

IMUS: You may think it's amusing, but if I were a person and -- in a family that had a history of prostate cancer I

couldn't think it was amusing to eat cheese and meat, but maybe you do.

MCENROE: I don't think it is amusing, I just you know --

IMUS: No, apparently you do.

MCENROE: Pretty healthy over here.

IMUS: This is not starting on a good note. You are supposed to be calling up with a report on tennis from France, not to

plug your stupid book or to whine about --

MCENROE: It's raining over here but if you take this aggressive stance as soon as I call in and I find that a little --

IMUS: Did I, Charles?

MCCORD: Yes, you did.

IMUS: How was I aggressive?

MCENROE: You blasted -- go ahead, Charles. Excuse me. Good morning, Charles, by the way.

MCCORD: Good morning Patrick.

IMUS: How was I aggressive, Charles?

MCCORD: He's merely saying that he would like to come in. He would like to have some attention.

IMUS: No, no, no, that's not -- we're not -- Charles, are you even listening?







MCCORD: Yes.

IMUS: Well, then, I wasn't aggressive. Why are you throwing me under the bus?

MCENROE: Really.

IMUS: He was the one who brought up about coming in, I didn't. He's supposed to reporting on the French Open.

(CROSSTALK)

MCENROE: Worked his way up and put all his time and effort into this book, where by the way the I-man has dis-

cussed at length and --

(CROSSTALK)

IMUS: Here's what I don't understand, Charles, why is it you are not even paying any attention.

MCCORD: Why isn't Patrick, isn't he a friend of the program?

IMUS: Of course he is.

MCCORD: Well, there you go.

IMUS: What does that mean?

MCCORD: I thought you were going to help him with his book.

IMUS: No, I'm not going to help -- well, I haven't decided -- I haven't decided that yet.

MCENROE: So, you haven't decided yet.

IMUS: No, he's calling this morning, he was supposed to be calling to report on the French Open but that is not what

he's doing.

MCCORD: No, he's not.

IMUS: So now he's irritated me.

MCENROE: Well, I'm hoping to get to that point. I'd like to.

(CROSSTALK)

IMUS: We don't have --

(CROSSTALK)

MCENROE: You come out with this aggressive stance immediately when I come on --

IMUS: We don't have an inordinate amount of time, numb nuts.

MCENROE: I understand that. And that's why --

MCCORD: Now it is name calling.

MCENROE: Now I think we should take the time and discuss the --

IMUS: We don't have time. We're out of time now. Thank you for your call.

Twenty-six after the hour here on the IMUS IN THE MORNING program.

It's time now for the Fox Business Network business report. And here with that is Dagen McDowell.

RUFINO: Au revoir.

IMUS: Good morning, Dagen.

RUFINO: Bon jour.







MCDOWELL: Bon jour, mon amie.

MCGUIRK: Bon jour.

IMUS: Charles you are such a back-standing spineless gutless weasel.

MCCORD: What? What are you talking about?

IMUS: You're unbelievable.

That's what I'm talking about. You are the -- you're the bomb. I wouldn't want to be in a foxhole with you, you back-

stabbing, lily-livered worm.

MCCORD: You think it is an overreaction to something?

IMUS: Oh my God. You are a creep. Am I right, Bernie and Lou?

RUFINO: Of course.

MCGUIRK: Right on the money, boss.

IMUS: You had me under the bus, so quick, it was ridiculous.

RUFINO: I'm out of the fox hole if Charles is there. It's not fair at all. Come on. Goodbye Charles.

IMUS: You bastard.

Anyway, what is going on, Dagen?

MCDOWELL: What happens when you are not sitting next to Charles at the desk?

IMUS: Now pretty soon we're going to run out of time for Dagen.

MCDOWELL: Well --

IMUS: Five minutes for McEnroe to whine about his book.

MCDOWELL: In order to avoid the --

IMUS: Charles, what's the matter with you, Charles. Have you lost your mind?

Go ahead, Dagen.

God, what a creep. Anyway, go ahead Dagen.

MCDOWELL: I don't want to be like Charles or --

(CROSSTALK)

IMUS: Charles is a back stabbing worm.

First, he wasn't even listening, that's number one. I think he's making doodle marks on his stupid news that he can bare-

ly read. Anyway --

RUFINO: Start throwing a lot of weapons at this point, I would say.

IMUS: It was kind of over-reacting, isn't it, Charles.

MCCORD: No, no. Not at all. I'm in full agreement now.

IMUS: What a creep.

MCCORD: Absolutely.

IMUS: Coming at me right under the bus.

MCGUIRK: Backing over you, too.







(CROSSTALK)

IMUS: You know what's the matter? He's a nutter.

MCGUIRK: You think you know a guy, right, chief?

IMUS: Oh, my God. Anyway, well, what's going on, Dagen?

MCDOWELL: On that --

IMUS: Dagen.

MCDOWELL: I'm sitting here just listening, just taking it in, glad I'm up here, by myself.

Apple, by the way, is now a bigger company in terms of market size than Microsoft; it's the second biggest company in

the country, second only to Exxon Mobil. A really astonishing come back for a company just in the last -- since the mid

'90s when Steve Jobs came back to the company. But, he's got to watch his back, he needs to target big businesses.

He's got Google's android phone he has to worry about; Hewlett-Packard is buying Palm. So again, Apple needs to

watch its back as well.

IMUS: Gates and Jobs don't get along, right.

MCDOWELL: Gates is kind of worrying about his -- I don't think Steve Jobs gets along with many people. Let's leave

it at that.

IMUS: What's wrong with him?

MCDOWELL: He's just very particular.

IMUS: Does he ever do interviews?

MCDOWELL: Rarely, rarely, rarely.

IMUS: He's not receptive to Liz Claman's persuasive nature to -- you know. She gets Warren Buffett and other people --

not to roll over, that would be wrong, right, Charles.

MCCORD: I think so, I-man. Not a good (INAUDIBLE)

(CROSSTALK)

RUFINO: That's right, Charles. I think Charles is wrapping his wounds right now.

MCCORD: No, I-man --

IMUS: You're such creep.

MCGUIRK: Wait a second. Come on.

RUFINO: What did you say?

MCDOWELL: By the way, I have Bernie and Lou's back, Joe Cocker, that was great.

RUFINO: You're way overselling it, Dagen.

MCDOWELL: No I'm not. You know what. If the man could totter out onto the stage and actually croak out a few

words --

IMUS: Well, yes.

MCGUIRK: He wasn't just adequate. He's shown last night.

IMUS: He did?

MCGUIRK: Yes.

IMUS: Do you have that clip again, Big Foot? Fire it up. I'll give it a chance here.







Joe Cocker.

(BEGIN VIDEO CLIP)

JOE COCKER, MUSICIAN: How do I feel at the end of the day?

CRYSTAL BOWERSOX, "AMERICAN IDOL": Are you scared because you're on your own. I'll get by with a little

help from my friends.

(END VIDEO CLIP)

IMUS: I thought he had a stroke there, Bernie. What are you talking about?

MCGUIRK: Oh, come on.

IMUS: All right.

UNIDENTIFIED MALE: This is great.

MCDOWELL: As a testament to your diet, he is younger than you are. You look great. He looks like he's 100.

MCGUIRK: Now, you're overselling that, too.

IMUS: I can't get over Charles. I mean, here's McEnroe. He's supposed to be calling up with the tans thing. He's hump-

ing his book and, Charles -- oh, my God.

RUFINO: You got past that one well.

IMUS: Didn't you think, Charles, that we're going to get a French Open tennis report?

MCCORD: Yes, I did.

IMUS: And then he starts humping his book.

MCCORD: Yes.

IMUS: His stupid book. And you're right in concert with him.

MCGUIRK: This is insanity on display right here.

(LAUGHTER)

IMUS: Well, no, but I mean -- or am I wrong here?

MCGUIRK: I think you're slightly overreacting.

IMUS: Am I?

RUFINO: They're going to be playing --

IMUS: All right. Well, I apologize. OK, then, I apologize for overreacting.

RUFINO: (INAUDIBLE) Insane man.

(LAUGHTER)

IMUS: But I mean, I just -- I thought he was going to talk about Nadal and --

MCGUIRK: Which he may very well have gotten to.

IMUS: But we did -- that was five minutes. You know, we don't have any time. We're way over now.

MCGUIRK: Right. Exactly.

MCCORD: No time.

MCGUIRK: It's his fault that we're way late right now.







IMUS: We didn't have any time, Bernard.

MCGUIRK: I'm with you. I mean --

IMUS: Well, no, no, no. But I mean, at what point did we go five minute and he's still going on about his stupid book.

And --

MCGUIRK: And Charles defends him. That's the thing.

IMUS: And then Charles defends him. Jesus, I mean --

MCCORD: My God.

MCGUIRK: Dagen, your thoughts? Whose side are you on?

MCDOWELL: I am taking -- I'm taking sides like I'm taking my top off.

MCGUIRK: Oh, no.

IMUS: Forget it, Charles. That's fine with Charles. Charles is trying to get along to go along. But you, Bernie, you said,

well, maybe he was going to get to the --

(CROSSTALK)

But at what point was he going to get to them when we have already gone five minutes?

MCGUIRK: You're right on the money, boss.

IMUS: Well, no, but I mean, I asked a serious question. At what point, did you think he was going to get to that?

MCGUIRK: Never. We had a small window.

IMUS: What do you think, Warner.

WOLF: Yes, I wanted to hear tennis reports. What's the deal over there? What about Roddick? How come he had a

struggle, five sets?

RUFINO: Good answer.

WOLF: Yes.

IMUS: How about Nadal?

WOLF: And Nadal, come on.

IMUS: And all that sort of thing.

WOLF: Let's hear it.

IMUS: How are the Williams sisters playing? They all have stuff.

MCGUIRK: Absolutely.

IMUS: How about little Henin? Whatever her name is?

RUFINO: Henin, what?

IMUS: I mean, poor Warner gets two minutes to do sports.

WOLF: Yes.

IMUS: And you and Charles are willing to give this idiot five minutes to whine about his book. And then, Charles, of

course, defended him. And then, Bernie, you think after five minutes, he's then going to talk about the tennis thing?

MCGUIRK: No, I think after five minutes that you may be overreacting. That's all. You were right, but I think five mi-

nutes of bashing Charles may be a little bit much.







IMUS: Am I -- is it, Charles.

(LAUGHTER)

MCCORD: No, not at all. Not in my -- not in my court. Absolutely.

IMUS: Oh, well, I'm sorry for badgering Charles. I was just kind of surprised, you know.

RUFINO: Understandably, too.

MCGUIRK: Yes, right.

IMUS: I was just sort of shocked. I got under the bus at the hands of Charles.

MCCORD: Some bashing of -- well deserved here.

IMUS: Yes. It's 34 past the hour.

IMUS: This is the IMUS IN THE MORNING program. Time now for a business update from the FOX Business Net-

work. Here's Connell McShane.

MCSHANE: And here's your "FOX Business Minute" as President Obama today will announce the moratorium on

drilling new deepwater wells will continue for six months. That's coming from a White House aide this morning. The

president will answer questions as well in a news conference set for 12:45 Eastern Time at FOX Business. We'll have

live coverage of that. The president will be going to the gulf region tomorrow.

Meanwhile, BP managing director says its "top kill" operation is moving the way the company wants it to but that it's

too early at this point to say if it's working.

Treasury Secretary Tim Geithner's European trip continuing today in Berlin. A news conference between Geithner and

the German finance minister finished up earlier this morning and Geithner said the U.S. and Germany and working to-

gether on financial reform and in fighting deficits.

And two big economic reports due out this morning 8:30 Eastern. We'll get our second look at first quarter GDP. This

report is expected to show growth in the U.S. economy at a 3.4 percent clip, up slightly from the first estimate that we

had. Also initial jobless claims are coming out. Fifty-five thousand people expected to have hit the unemployment line

for the first time in the latest week would be down from last week when we saw an unexpected jump in claims.

All right, a quick look at the futures here. There's more IMUS IN THE MORNING straight ahead with Dow futures up

185 on FOX Business.

(BEGIN VIDEOTAPE)

IMUS: Well, the tie is here or whatever it is -- I mean, at the FOX.

MCSHANE: I leave it here usually. This way I don't spill anything on him at home.

IMUS: OK.

MCSHANE: Right.

IMUS: Then you have a bunch of ties there and you have to --

MCSHANE: A ton of them thrown, yes.

IMUS: OK.

MCSHANE: And I just picked one up at random. You could combine and help in the mornings if you want.

IMUS: And what's the criteria for picking and selecting the tie?

MCSHANE: There's absolutely no criteria. No.

IMUS: Whatever --

MCSHANE: Just pick a white shirt and then if it's --you know, just put the tie on.







IMUS: OK.

MCSHANE: It's going well so far.

(END VIDEOTAPE)

IMUS: It's 20 minutes until the hour here on the IMUS IN THE MORNING. What?

MCCORD: What now? What could possibly be the problem now?

IMUS: Well, the problem is that if you take up all this time, me hollering at you because you're selling me out to the

tennis wimp.

MCCORD: Oh, you got to stop. I mean, this is -- at this point this is enough. You're an obsessive compulsive mad pie.

And here's what happens. While you're under that damn bus, I hope that drive shaft drops on your winner. That's what I

hope happens.

IMUS: What?

MCCORD: You heard me.

IMUS: I don't think you mean that.

MCCORD: Lick the catalytic converter, now.

IMUS: So then, we have -- and then we have Chris Wallace coming up. And so, I mean, this awful mood to talk to him

and then --

RUFINO: Yes, come on, Chris.

IMUS: And our conversation --

MCCORD: And I'm going to get blamed for that.

IMUS: Yes.

MCCORD: Do I get the blame for that?

IMUS: Yes.

MCCORD: I refuse it. How's that?

IMUS: Well, fine.

MCCORD: Just move. It's 7:41 Eastern Time. My God, move forward.

IMUS: OK. Please welcome to the IMUS IN THE MORNING from FOX News, "FOX News Sunday," Chris Wallace.

Good morning, Mr. Wallace.

CHRIS WALLACE, FOX NETWORK CORRESPONDENT (via telephone): I hope the drive shaft drops on your win-

ner too.

MCCORD: Thank you, Chris.

MCGUIRK: Yes.

IMUS: What? What did you say?

WALLACE: You heard me.

MCCORD: Listen up.

IMUS: Why would you hope that?

WALLACE: Because it's 7:41. What time am I supposed to be on?

IMUS: Well, I don't know. What difference does it make?







WALLACE: Not really.

IMUS: It doesn't make any difference. It's the same time you get on every time.

WALLACE: Right, because you were always late.

IMUS: Yes, how are you?

WALLACE: I'm good.

IMUS: What's going on?

WALLACE: Let's see. Well, this is pretty interesting today watching this "top kill" and seeing whether or not it's going

to work. And you know, it's interesting, because the president is going to go through all kinds of hoops over the next 48

hours. He's holding a news conference today. He's going to announce tighter regulations and tougher inspections. He's

going down to the gulf tomorrow, and I don't think it matters at all. There's only one thing that matters, do they plug the

leak or do they not plug the leak.

IMUS: Well, you're right about that. Well, he's been getting, he's been getting criticized not from all you right wing

nuts, but from people, you know, because James Carville and those folks, describing his, his and the administration's

reaction to all of this, this oil spill as lackadaisical and naive.

WALLACE: Well, that's right. Now, he's gotten it from actually more, I think, from the left than from the right, so far,

although, he's getting it from both sides. And you know, there may be a kind of unpleasant and inescapable fact here,

and that is that the president really couldn't do much. You know, we think that Washington and frankly, I think the pres-

ident has said that narrative, you know, whatever the problem is, Washington has a solution. And it may well be that

when you have an unprecedented leak at an unprecedented depth, basically a mile underneath the surface that the gov-

ernment can't do very much and you know, people keep saying, well, let's take control and push BP out of the way.

Well, I'm curious as to what assets the U.S. has to plug a leak a mile, a mile down.

IMUS: Well, they have a bunch of these American oil companies they could have gotten involved in, couldn't they?

WALLACE: I think BP is, you know, going to all of them and gotten the best engineers and the best equipment and the

best help except this has never happened before. And I'm not sure anybody could fix it.

IMUS: Talking with Chris Wallace from FOX News. You would think that when I described you as a right wing nut

you would have said something.

WALLACE: I just considered the source.

IMUS: You did?

WALLACE: Yes.

IMUS: So you heard me say it, you just --

WALLACE: I mean, let me ask you, have you and Joe Cocker ever been in the same room at the same time?

(LAUGHTER)

IMUS: This is great.

WALLACE: When I saw him come out of the stage, I said what the hell is Don Imus doing there.

(LAUGHTER)

IMUS: This is not good, this is very ugly. It's 16 until the hour. Chris Wallace is on the radio and on the FOX Business

Network with us. This, I talked to Matt Taibbi earlier about this financial reform bill that passed. What do you make of

it?

WALLACE: Well, I mean, the final bill hasn't passed because they've got to reconcile it.

IMUS: Yes. I understand that, Chris. I understand.







WALLACE: Well, you said the bill that has passed. Well, that's passed. They got it --

IMUS: I meant to pass the Senate. It's going to a conference committee now.

WALLACE: For you, but on the FOX Business Network, but on the "FOX News Sunday" we actually try to be accu-

rate.

IMUS: OK, fine. I apologize for my inaccuracy.

WALLACE: OK. Well, you know, the answer is I'm not smart enough to know whether it's too much intervention or

not enough intervention. I do think there had to be something. I mean, obviously, you know, we don't want a repeat of

the 2008 meltdown and you know, when you hear about these major companies like Citigroup that had 30, 40 to one

leverage on debt, you obviously need bigger capital reserves and you want to have some way that these -- an individual

company that goes off the tracks doesn't bring down the entire economy. Whether this will work or not, I don't know.

IMUS: Have you already booked the guests for "FOX News Sunday," incidentally?

WALLACE: That's a process that we're still in, but I think, actually, we're going to have really good guests this week as

we did last week. Sarah Palin and the two party chairs. Did you watch our show last Sunday?

IMUS: No, I did not.

WALLACE: Well --

IMUS: But I wasn't able to, my television was broken.

WALLACE: Is that your -- that's what you're going with?

IMUS: Well, I can't say my dog ate the TV, so --

(LAUGHTER)

You're not going to buy that, you know, right?

Did you watch "American Idol" last night?

WALLACE: I did watch some of it.

IMUS: OK.

WALLACE: I -- I have to say, it was a pretty boring show.

IMUS: It was?

WALLACE: I don't understand the idea that you have these young singers and then they come out and partner with Don

Imus look-alikes. I mean, it's like, you know, suddenly they're visiting the Madame Tussaud wax works.

IMUS: I don't know. I just -- I can't understand what possesses you to appear on this program and be mean to me. I just

don't -- I haven't done anything to -- have I done anything to Chris, Charles?

WALLACE: What about the right wing nut?

MCCORD: Nothing. Except that.

IMUS: Well, that was in response to you saying I looked like Joe Cocker, which I don't.

MCGUIRK: You get him on 10 minutes late every week.

IMUS: Joe Cocker looks like Fred Sanford, by the way, the late Fred Sanford.

WALLACE: Thank you, Bernie.

IMUS: Well, I got him on a little late, yes, but I mean, it's fine so --

MCGUIRK: It's disrespectful. And we understand why Chris could be --







IMUS: Well, did you expect to get on any other time, Chris?

WALLACE: I don't know, maybe sometime around 7:32 or 3. I mean, I understand they're talking about John McE-

nroe's book into minute 15.

IMUS: No, no.

WALLACE: What was longer, John McEnroe's appearance or your complaints about him?

IMUS: Fortunately, that wasn't John McEnroe. It was unfortunately, it was Patrick McEnroe.

(LAUGHTER)

WALLACE: I didn't even -- I wasn't up for that but I --

IMUS: We weren't lucky -- we weren't fortunate enough to get the McEnroe who actually had some tennis talent.

MCCORD: The star.

IMUS: We got his dopey brother, so --

MCGUIRK: We had Billy Carter.

WALLACE: And that makes the complaints even more understandable.

IMUS: We've got the Billy Carter of the McEnroe tennis family. All right, man. Well, I will watch you this Sunday,

OK?

WALLACE: And I don't believe that.

IMUS: No, I will. I watch you because I actually like you and it's a good show, so --

WALLACE: Yes. We're going to have a good show this week. We just can't announce it.

IMUS: I apologize for getting you on late. It will never happen again.

MCCORD: Oh, please.

IMUS: OK. Chris Wallace, FOX News. It's coming up on 12 until the hour.

MUSIC: IMUS IN THE MORNING.

IMUS: This is the IMUS IN THE MORNING program. Time now for a business update from the FOX Business Net-

work. Here's Connell McShane.

MCSHANE: All right. Here is a business alert for you to start off on this Thursday morning. Setting up for a big day in

the markets after that sell-off we had late in the day yesterday. The Dow closing, in fact, below the 10,000 mark. The

surge is back on this morning.

Let's bring up the U.S. stock index futures. See the 190 points higher on Dow futures. A couple of things here. St. Louis

Fed President James Bullard saying he doesn't expect contagion from Europe's fiscal problems to come here to the U.S.

and he says the U.S. actually could benefit as people seek safer investments.

Over in Europe, big rally as well. There's reports that China will not be reducing its investments in Europe as had been

rumored yesterday.

All right, some other stories now into "FOX Business Minute." President Obama today will announce the moratorium

on drilling new deepwater wells will continue for six months. It's coming from a White House aide this morning. The

president also will answer questions at a news conference today, 12:45 Eastern Time. And we'll have live coverage of

that on FOX Business. President Obama then will be going to the gulf region tomorrow.

Meanwhile, BP managing director says its "top kill" operation is moving the way that the company wants it to, but at

this point, it's too early to say if it worked. And Lehman Brothers is suing JPMorgan saying it helped to force the bank

into its collapse. According to the "Wall Street Journal," Lehman says the CEO, Jamie Dimon, at JPMorgan and other







executives used inside knowledge to take advantage of Lehman in its final days. The lawsuit claims JPMorgan forced

Lehman to turn over $8.6 billion dollars in collateral and that created a liquidity shortage that ended up ruining Lehman.

Quick earnings look at Heinz fourth quarter results this morning. Sixty cents a share, beat the analysts estimate by a

penny.

IMUS IN THE MORNING continues here on FOX Business in just a moment.

IMUS: Come on. And Eric Cantor is coming up. He'll be here in the IMUS IN THE MORNING. Seven until the hour.

Please welcome now, the godfather.

Good morning, godfather.

ROB BARTLETT, AS THE GODFATHER: Good morning, Don Imus. I'm a simple man. My values were formed in

the traditions of the old country, which is why I was so disturbed by the behavior of this Jesse James character, whining

and crying like some little (speaking in a foreign language). How do you say, kitty cat.

(INAUDIBLE) with all due respect, you're a six foot one inch muscle- bound tattooed biker named after one of the most

notorious outlaws in history. How do you not act like a man?

(LAUGHTER)

Oh, my child it was so terrible. My father beat me when I was child. Boo hoo hoo. Sounds like he didn't beat you

enough. If you were my son, by the time you were 16, you'd have to get around in a chair with a blow tube.

(LAUGHTER)

In fact, I wish I could beat you right now. That is if I were not so nauseated by your revoking a feminine performance

on the "Nightline," you weepy wooze (ph). This Vicki Mabrey who interviewed you, she has bigger (INAUDIBLE)

than you do.

What kind of tattoos do you have? Unicorns and rainbows? And you were once a bouncer. Really, where did you

bounce? Dairy Queen? Supposedly on this monster garage program of yours, you built motorcycles. I assume the ones

you designed include training wheels that you yourself pat around on a Vespa scooter like some pasty pansy, you feno-

chio (ph).

Had you done the honorable thing? Treated your sweet wife with respect instead of planting your seed in the tomato

patch of some freaky ink skunk? You would not be whimpering this very day. But what's done is done. You make your

choice. And so now, it is time for you to suffer (speaking in a foreign language) suffer, bitch.

IMUS: The godfather here on the IMUS IN THE MORNING program. Five until the hour.

MUSIC: Imus, Imus, IMUS IN THE MORNING.

(BEGIN VIDEOTAPE)

DAGEN MCDOWELL, FOX BUSINESS NETWORK CORRESPONDENT: It's that time of year when if anybody

lives with somebody who is super cheap, and starts getting hot outside, you have the battle over the air conditioner.

Like, how cool are you going to keep the house? So, it's too hot last night. I'm sweating like Elvis in the Las Vegas sun

all night long because I tend to run hot anyway.

IMUS: I bet you do.

MCDOWELL: And I'm like that, you know. I get up in the middle of the night and turn the temperature down. And then

my husband sneaks in and turns it up. So it's going to be an ongoing battle. I will win, but right now it's a fight.

IMUS: Well --

MCDOWELL: What?

IMUS: I don't know.

MCDOWELL: What?







IMUS: Well, I just thought, I don't know what I'm talking about.

MCDOWELL: What?

IMUS: Do you sleep with clothes on or -- trying to figure out how to ask that.

RUFINO: I guess you found a way.

(LAUGHTER)

MCDOWELL: That was pretty straightforward.

MCCORD: Way to go.

MCGUIRK: Smooth, that was smooth.

RUFINO: You had a team working on that one.

IMUS: Yes.

MCDOWELL: Yes, I do.

IMUS: OK. What about Rollo (ph)?

MCDOWELL: Yes, he does. I tend to --

IMUS: Maybe you ought to get naked you'd be more comfortable.

MCDOWELL: Thank you, thank you for the helpful hint, Dr. Ruth.

RUFINO: Don't worry about the air.

MCDOWELL: I have a tendency to sleep in very unbecoming clothes because I kind of end up falling asleep on the

floor in front of the TV set, so I might have some very large unattractive sweatshirt on and maybe - -

IMUS: You're not going to bed in a big old granny drawers, are you?

MCDOWELL: On some days, yes.

(END VIDEOTAPE)

IMUS: This is the IMUS IN THE MORNING program. Time now for a business update. From the Fox Business Net-


LEE: Well, we're going to start off with a business alert for you this Thursday morning, setting up for what looks like

going to be a big day on the markets. After yesterday's late day selloff that saw the Dow close below 10,000, stocks are

surging this morning. Take a look at our U.S. stock futures, higher on a whole bunch of different news. One being that

St. Louis Fed President James Bullard said he doesn't expect contagion from Europe's fiscal problems to come to the

U.S. He also says the U.S. could actually benefit as people seek safer investments.

We also have two economic reports coming out at the bottom of the hour. These could shift these markets a little bit.

We're going to get our second look at first quarter GDP and we're also going to get initial jobless claims. Now, James

Bullard was over in Europe when he was making those comments. There's a look at the European markets, also rallying

today. This comes on reports that China will not reduce its investments in Europe.

Well, Treasury Secretary Tim Geithner's European trip is going to continue today. He's in Berlin. He just held a news

conference this morning with the German finance minister. Geithner says the U.S. and Germany are working together

on financial reform and in fighting deficits. Last night, Geithner spoke with the president of the European Central Bank.

Geithner says Europe has a good plan to deal with its dead crisis, but it must act on that plan very soon.

In other stories, President Obama, today, will announce a moratorium or a continuing moratorium on drilling new deep

water wells. That's going to continue for the next six months, this coming from a White House aide this morning. The

president is going to answer a lot of questions at a news conference today, 12:45 Eastern Time. Fox Business is going to

have live coverage of that event. President Obama will be going to the Gulf region tomorrow.







In the meantime, a BP managing director says its "top kill" operation is moving the way the company wants it to, but it's

too early to say if it actually has worked. We'll keep an eye on that situation.

Also, Warren Buffett is being called before the panel investing the financial collapse. The Berkshire Hathaway CEO

will testify to the financial crisis inquiry commission on June 2nd as part of the look into the rating companies. Berk-

shire is a long time shareholder of Moody's.

And we have some earnings news this morning. Costco reporting better than expected profit and sales, earnings per

share coming in at 68 cents, 2 cents better than the estimates. The warehouse retailer bringing in nearly $18 billion in

the third quarter. When you take out some of those gas prices, gas sales, same-store sales are up about 4 percent com-

pared to last year.

All right, a look at commodities, oil and gold. Oil, the only thing -- one of the only things in the market actually finish-

ing up higher yesterday by about 4 percent. If we could bring up that board, we will show you that it is also higher this

morning. Gold is just about flat.

Coming up at 8:30 Eastern Time, Imus' guest will be representative -- or we should say Congressman Eric Cantor of

Virginia. This is IMUS IN THE MORNING here on the Fox Business Network.

(BEGIN VIDEO CLIP)

IMUS: What up, B?

MCGUIRK: Well, what a surprise, the Pussycat Doll hot music video star chick won the dancing with the stars contest

last night. And Jesse James, of course, we played it earlier, he's blubbering on TV. And just to close it - to get some

closure on this from the I-man, you think, chief, that he should have been more defiant and he should have - he stuck it

in everybody's face -

IMUS: Yes.

MCGUIRK: And he should have sat there and made out -- tongue kissed Michelle "Bombshell" McGee and hit on the

news anchor while he was doing the interview.

IMUS: Yes. Yes.

MCGUIRK: OK.

IMUS: So that's -

MCGUIRK: And -

IMUS: I mean if you're going to do that -

MCGUIRK: Right.

IMUS: You know, you're going to be a dirt bag, be a dirt bag.

MCGUIRK: You've got to walk to walk.

IMUS: And you - I mean you can't be being a badass on a motorcycle talking about how tough you are with the tattoos

all over you -

MCCORD: And weeping.

MCGUIRK: Uh-huh.

IMUS: And then getting all weepy on TV. You know, when your dad - when your dad broke his arm, you know what

you should have done? You should have stuck a shotgun in his mouth and pulled the trigger.

MCCORD: Oh, wow!

IMUS: That's what you should have done. See (INAUDIBLE) -- your father beat you, the Mendez brothers had a pretty

good solution for that.







MCGUIRK: Are you listening, Wyatt?

IMUS: Keep your hand off your kid. Well, I don't hit Wyatt.

MCGUIRK: No way. OK, just --

IMUS: So, nor would I, by the way because -

MCCORD: Because he would kill you.

IMUS: Because at this point he'd already whip my ass.

MCCORD: He would whip your butt.

IMUS: No, but I don't buy the -- hitting some - hitting me is not the way to get me to do something, so I never figured it

was the way to get Wyatt to do anything. So I've never hit him.

MCGUIRK: There you go.

IMUS: I don't need to hit him. He still says "yes, sir," "no, sir," a he's a model young man, as anybody who knows him

knows.

MCCORD: Yes.

IMUS: And I didn't have to hit him to get him to be that way.

MCCORD: There you go, that's it.

IMUS: Yes, see.

MCGUIRK: OK, I just wanted closure on that. And -

(END VIDEO CLIP)

ANNOUNCER: Ladies and gentlemen, IMUS IN THE MORNING.

MCCORD: It is now five minutes past the top of the hour this IMUS IN THE MORNING. And some of the stories that

we're going to be following for you and have been through the morning, of course, we're watching very carefully the

latest on the Gulf oil leak and the BP attempt to plug it up with the so-called "top kill" method, which is basically pump-

ing this viscous liquid, this heavy liquid, at 65 barrels a minute down into the well to try to seal off the flow. And if that

works, then that would be followed up by a plug of cement, which would actually then completely stop up the well and,

in effect, kill it. But BP is saying they won't know before later on this afternoon, probably, at the earliest, if it is being

effective and might not know for 24 hours, or maybe even longer, whether it, in fact, has worked as they expect it to.

But according to the BP executives, so far, so good. It is going well. As well as to be expected. As well as they had been

expecting.

And in the meantime, this piece of pipe, you may recall, the siphon that was inserted into the broken well pipe, that has

worked to some extent. They figured that it has been able to suck 22,000 barrels of oil into a ship on the surface, but, of

course, a great deal more is coming out of the well that is busted and venting all the oil at what they figure was like

210,000 gallons a day according to BP, but, as you know, there are estimates that are far higher than that.

IMUS: And what is the article on the front page of "The Times" about the pipe they were using, Charles, you already

talk about that?

MCCORD: I have not, I-man. I was going to. They reportedly installed a type of cement casing on the ruptured well

that carried a higher gas leak risk and they knew about that. "The New York Times" front page reporting the choice of

casing was an attempt to save money, even though it carried a higher risk of creating the conditions that would lead to

disaster and, in fact, did.

IMUS: Did you wonder where I was?

MCCORD: Well, I figured you had probably stepped out to the men's room.

IMUS: No.







MCCORD: No, you had not.

IMUS: I was trying to get out from under the bus that you put me under.

MCCORD: Well -

IMUS: Jenna -- any other news coming up? There must be other stuff, right, Charles?

MCCORD: Oh, absolutely, I-man.

IMUS: Wells.

MCCORD: Well, for example, the South Korean situation apparently is growing a little bit worse. China offering no

indication today of plans that it's going to join the U.S. and its allies to put the blame on North Korea in the sinking of

the South Korean warship. And the North Koreans now severing all ties of any kind of cooperation with South Korea.

And there's a vote coming up in Congress today, probably, a landmark on whether to allow gays to serve openly in the

military. And under the bill, the president and the Pentagon must first certify that the new policy won't hurt the mili-

tary's ability to fight. But this would pass it. It would give them some time, though, to figure out exactly how it should

be implemented.

IMUS: And the president's still not going to Arlington Cemetery on Memorial Day?

MCCORD: Haven't seen anything to counter that, no.

IMUS: Bernie?

MCGUIRK: No. Going to Chicago. A little family vacation back home.

IMUS: That's crazy.

MCGUIRK: Back home, actually.

IMUS: Sending Joe Biden, who will be taking along the six deferments he got to keep from going to Vietnam when he

was eligible for all that.

MCGUIRK: Uh-huh.

IMUS: Business news coming up with Jenna Lee, back, Charles?

MCCORD: Yes.

IMUS: OK. Hi, Jenna.

LEE: Hi there.

IMUS: Well, I can't see what's going on, so -

LEE: I know. I apologize.

IMUS: From under the bus I'm under.

LEE: Well -

MCCORD: You got to - you got to get past it now.

IMUS: O do, don't I.

MCCORD: Yes.

RUFINO: No, let's go on about it.

LEE: Do you want to talk a little bit more about it?

MCCORD: Oh, man.

IMUS: No, that's OK. I'll be fine.







LEE: OK. Well, I worry about you.

IMUS: What's coming up in business news?.

LEE: Well, the markets are still much higher this morning, up about 2 percent across the major markets here state side.

But there's some caution to this market because yesterday we were doing all right throughout the trading session, the

final hour of trading, and then things totally turned around and we finished lower. But it looks like we're going to start

the trading day higher.

I say it looks like because in about 20 minutes we're going to get two important pieces of economic data. One being

jobless claims, the amount of Americans filing for first time unemployment in the most recent week, and also a second

reading on our first quarter GDP. This tells us just how much the economy's growing. We get three readings of that.

This will be our second reading.

So it will be important to see if there's any revision if we're growing more than we thought or less than we thought. So

that could -- that could definitely change the tone of the markets, so we'll have to wait and watch for that.

IMUS: Did you watch "American Idol" last night?

LEE: No, I didn't.

IMUS: You did not?

LEE: I did not.

IMUS: What did you do?

LEE: It's too late for me.

IMUS: It is?

LEE: I can't stay up that late. No.

IMUS: OK.

LEE: I've got to be on the air at 5 a.m., you know. Someone's got to be here.

IMUS: I understand that.

LEE: To mind the store, you know.

IMUS: I understand that. Jenna Lee with business news throughout the morning. Dagen McDowell's coming up. Warner

Wolf has sports.

What's up, Warner?

WOLF: Well, I-man, the Magic blew out the Celtics, so they cut that lead to 3-2. The Yankees won twice. The Red Sox

sweep the Rays. The Mets shut out the Phillies for the second straight night. And bad news for Grizzly's center and for-

mer Knicks center Zach Randolph.

IMUS: What happened?

WOLF: Well, he was identified by an Indianapolis police informant as a major marijuana supplier. And they found out,

after police arrested a suspect driving Randolph's car, which had marijuana and ammunition hidden in secret compart-

ments in Randolph's car. And then they later raid a drug- filled storage facility where Randolph rents a locker.

IMUS: Did you ever smoke any dope, Warner?

WOLF: No, I haven't.

IMUS: Oh, OK.

WOLF: A lot of wine, but -

IMUS: You seem to me like a guy who would smoke, doesn't he, Charles?







RUFINO: Definitely.

MCCORD: Clearly, because of - yes, a joint with a glass of wine.

RUFINO: If not, soon today, maybe.

IMUS: Yes, but -- all right, Warner coming up with sports. And Bernie has a briefing, sponsored by P.C. Richard &

Son.

RUFINO: Hey, man, you lost.

WOLF: Yes.

MCGUIRK: Let's go to the rolling papers, dude.

IMUS: A hundred years, 61 stores. Still going on.

RUFINO: Come on, dog. Come on, dog, roll another one.

IMUS: What's up, B?

MCGUIRK: Speaking of smoking, there's this video that's going around and a bunch of pictures of in the newspapers,

all over the place, chief, of this flat little shluby (ph) kid from Sumatra and Indonesia smoking cigarettes. Allegedly he

smokes two packs of cigarettes a day.

IMUS: And he's inhaling.

MCGUIRK: He's inhaling. Yes.

IMUS: That's horrible.

MCGUIRK: He's flicking the ashes and all that stuff. And his dad says, hey, he doesn't see any problem. He looks pretty

healthy to me. I don't see the problem. They say without the cigarettes, the kid throws tantrums and fits and they're not

interested in making him stop smoking.

IMUS: No, but then you wind up like Jesse James, make him behave.

MCGUIRK: That's how it starts right there.

IMUS: Exactly.

MCGUIRK: The good news, they are filtered cigarettes though.

IMUS: How old is he?

MCGUIRK: Two years old.

IMUS: Well, that's just criminal behavior, so -

MCGUIRK: It's cute.

IMUS: What else is going on?

MCGUIRK: And also, one of the - one of Matt Lauer's alleged lovers, the half sister of Whitney Houston, actually used

to be a man.

MCCORD: Oh, man.

MCGUIRK: So, Matt Lauer's -

MCCORD: Oh, my God.

IMUS: What's the matter, Charles? You married your sister, so what are you howling about?

MCCORD: Well, at least female.

IMUS: Well, that's true. That's a good point.







MCGUIRK: Had a sex change operation three years ago and is still denying that she/he had an affair with Mr. Lauer.

But this just gets sicker and sicker. I don't know what the hell's going on over there at 30 Rock, but -

IMUS: Well how - well how - but where are we reading that - reading this stuff?

MCGUIRK: This is page six in "The New York Post." This is -- this is legit. And "The National Enquirer," of course.

All these credible outlets.

IMUS: Well, unfortunately, for Mr. Lauer, they are always fairly accurate, aren't they?

MCGUIRK: Unfortunately, yes. Maybe his dad slapped him around when he was a kid though, you never know.

IMUS: Did he take him to see the Yankees or whatever.

MCGUIRK: Yes.

IMUS: So Congressman Eric Cantor is coming up here on the IMUS IN THE MORNING program. Tomorrow, senator

-- no, not tomorrow. I don't know who's on tomorrow. Oh, no, Chip Reid and Orrin Hatch, Gov't Mule next week.

IMUS: Well, summer is almost here. You probably already have weddings, graduations, maybe a vacation planned and

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The Esotique summer package includes a full month's supply of the Esotique collagen builder, the Esotique eye cream

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IMUS: This is the IMUS IN THE MORNING program. Time now for a business update. From the Fox Business Net-


LEE: Good morning, everybody, here's your "Fox Business Minute" on this Thursday morning.

Two big economic reports due out at the bottom of the hour. We're going to get our second look at first quarter GDP.

This report expected to show growth of 3.4 percent, up slightly from the first estimate. We're also going to get initial

jobless claims, 455,000 people expected to have hit the unemployment line for the very first time in the latest week.

That will be down from last week when we did see an unexpected jump in claims. So we will bring you that news as it

breaks.

In the meantime, Treasury Secretary Tim Geithner's European trip continues today at Berlin. At a morning news confe-

rence between Geithner and the German finance minister, the Treasury secretary saying the U.S. and Germany are

working together on financial reform and also in fighting the deficit.

And the Treasury Department bringing in another $2.6 billion by selling shares of Citigroup. The stock selling for an

average of $4.13 a share, making a profit of about $1.3 billion for the taxpayer. The taxpayers still own about 22 percent

of Citigroup, but the government will sell more of its holdings this year. You can see, if you look at Citigroup stock,

headed higher this morning.

If you take a look at our U.S. stock futures, those are also higher, as they have been, through most of the morning, IM-

US IN THE MORNING continues right now on the Fox Business Network.

IMUS: All right. Coming up on 20 minutes after the hour. And it is 20 minutes after the hour. I was reading something

on the screen and it kind of threw me. An article in yesterday's "Washington Post" sports section named the five favorite

local sports anchors since 1970 in the Washington, D.C., area. And you know who came in number one, Charles?

MCCORD: No.

IMUS: Warner Wolf.







MCCORD: Really?

RUFINO: Yes!

MCGUIRK: Hey!

MCCORD: OK.

IMUS: Yes.

RUFINO: That's right. Feel the power!

MCGUIRK: Let's go to the newspaper.

IMUS: And as -

RUFINO: Come on, dog!

IMUS: And as "The Washington Post" points out, Warner can still be heard on the IMUS IN THE MORNING program,

on the radio all over the country and on the Fox Business Network.

Well, congratulations, Warner.

WOLF: Thank you very much. I appreciate that.

IMUS: You're quite welcome. So -- and Warner's award winning sports sponsored by American made Peerless Boilers.

RUFINO: And the winner of American idol sports is -

IMUS: What up, Warner?

WOLF: All right, that was Len Shapiro, our old sports writer from Washington.

Well, game five last night. The Magic outscored the Celtics in every period, beat Boston -

IMUS: You're not saying the fix was in, are you, because you and I are -

WOLF: No, no.

IMUS: Oh.

WOLF: No, I didn't know anything about it.

IMUS: Well, you made it sound sort of like, didn't he, Charles?

MCCORD: No, he didn't, for God's sake.

IMUS: Thought like maybe you and Len had a deal worked out or something.

WOLF: No.

IMUS: So, but apparently this is on the legit, right?

WOLF: Yes. Yes.

IMUS: OK. Do you know anything about this, Bernie, or no, apparently not.

MCGUIRK: Not a thing. All on the up and up as far as I'm concerned.

IMUS: OK. Well, congratulations, Warner.

WOLF: I appreciate it.

MCCORD: Again.

WOLF: Thank you.

IMUS: Again, yes.







WOLF: In this game, Kendrick Perkins received a seventh technical of the playoffs. He could be suspended for game

six. And "Big Baby" Davis knocked to the floor after going up with Dwight Howard, suffered a concussion, lost a tooth

and will be further examined today. Coach Doc Rivers on Davis' tests.

(BEGIN VIDEO CLIP)

DOC RIVERS, BOSTON CELTICS COACH: I don't know what kind of tests they're going to do with Baby because

he's a little delirious half the time anyway. So, you know, I don't know how he's going to pass the test. I'm worried

about that.

(END VIDEO CLIP)

WOLF: Not a time exactly to make jokes, wouldn't you say, I-man? I mean look at him. I mean -

IMUS: I'm eating almonds.

WOLF: Oh, OK. That takes care of that.

IMUS: Not almonds, but pecans.

MCCORD: Fine.

IMUS: Organic raw ones.

WOLF: OK.

MCGUIRK: That's (INAUDIBLE).

IMUS: My breakfast. That will be fine, Bernie, I heard you.

WOLF: Baseball. The Mets shut out the Phillies second straight night. Hisanori Takahashi, six scoreless innings. The

Yanks take two from the Twins. The Red Sox swept the Rays. Adrian Beltre, single, triple, two homers, knocked in six.

And David Ortiz now batting third in the lineup, homered again.

MCGUIRK: (INAUDIBLE).

IMUS: That's fine.

WOLF: White Sox beat Cleveland 5-4. In this game, Ozzie Guillen and starting pitcher Mark Buehrle were ejected by

home plate umpire Joe West over two balk calls. Here was Ozzie Guillen after the game.

(BEGIN VIDEO CLIP)

OZZIE GUILLEN, CHICAGO WHITE SOX MANAGER: People paid to watch (EXPLETIVE DELETED) to umpires

and managers. I don't see any people say, I'm going to see Ozzie Guillen, the manager, or go to see Joe West, (EXPLE-

TIVE DELETED) umpire.

(END VIDEO CLIP)

WOLF: That's right, Ozzie Guillen.

RUFINO: Ozzie.

WOLF: And -

IMUS: We need him here in New York for the Mets.

RUFINO: Oh, man, that's exactly who they should get.

IMUS: Yes.

RUFINO: That's the guy.

MCCORD: Oh, man.

IMUS: That's the guy.







RUFINO: Absolutely.

WOLF: Light a fire.

IMUS: Yes. Twenty-three after the hour. What else, Warner?

WOLF: Come on, baby, light my fire.

Oh, the Rockies -

IMUS: Please don't sing, Warner. We're not going to -

WOLF: No, no. Best pitcher in baseball right now, Ubaldo Jimenez of the Rockies. He's now 9-1 with a 0.88 ERA. And

finally, I-man, a jury has awarded former Oklahoma State basketball assistant coach Jimmy Williams a million and a

quarter dollars in a suit against Minnesota coach Tubby Smith and Minnesota University. The problem was, when

Smith called Williams in 2007, said do you want to coach for us, he said, yes. Williams immediately resigned his

$200,000 a year job at Oklahoma State. And then Smith called them back and said, upon further review, no deal. So the

court said, uh-uh. This is earnings for lost in the past and future income.

IMUS: Wow.

Twenty-four after the hour here on the IMUS IN THE MORNING program.

Going over Congressman Eric Cantor's five favorite songs. Did you check these out, Lou?

RUFINO: Troubling.

IMUS: "Don't Fear The Reaper," Blue Oyster Cult. "Rainbow in the Dark," DIO or Dio. What is that?

RUFINO: Dio. Dio. And he just passed away, actually, Ronnie James Dio.

IMUS: "Funny The Way It Is," the Dave Mathews Band. "Peace of Mind," Boston. "Free For All," Ted Nugent.

RUFINO: This guy's mental.

IMUS: I mean, really, this is -- it's psycho, isn't it. Eric Cantor. Well, he's coming up and we'll talk to him.

Time for the Fox Business Network business report, and here with that is Dagen McDowell.

Good morning, Dagen.

MCDOWELL: Good morning, sir.

IMUS: What's going on?

MCDOWELL: Trying to be peppy.

IMUS: Why?

MCDOWELL: Just change the mood around this joint.

IMUS: Why? Well, no, we're - the mood is fine, isn't it?

MCGUIRK: Who would ask that?

MCDOWELL: I have - I know the reason that everything's a little nutty today. Full moon. It's a full moon today.

IMUS: It is?

MCDOWELL: Yes, it is.

MCCORD: That has nothing to do with it.

MCGUIRK: Right.

MCDOWELL: And it's the one day I feel normal. So you all have at it.







MCGUIRK: How do you explain -

RUFINO: I must have seen 1,0 50 full moons then.

MCCORD: A lie. Nothing to do with it.

IMUS: What do you mean it has nothing to do with it, Charles?

MCCORD: Because it's just -- there's just no influence on you that causes you to act differently. And regardless of the

phase of the moon, you're going to be acting like -- today you're like an emaciated rhinoceros. Jesus.

RUFINO: What?

IMUS: Here's what I would like explained to me is what actually I did wrong.

MCCORD: Everything.

MCDOWELL: Nothing.

IMUS: Well, just name one thing then.

MCCORD: Well, how -

MCGUIRK: Got out of bed.

MCCORD: My God, how you've behaved today. IMUS: Well, what -

MCCORD: Screaming at -- at your friend of 39, eight years, whatever the heck it is.

IMUS: Who you?

MCCORD: For no reason.

IMUS: Because you threw me under the bus.

MCCORD: I tell you what I would -- you know what I wish you were under?

IMUS: No.

MCCORD: The ground.

MCGUIRK: Oh!

IMUS: Oh, now I don't -

MCDOWELL: Oh. Oh, no.

IMUS: I just don't think you mean that.

RUFINO: (INAUDIBLE) like that.

MCCORD: With every fiber of my being.

IMUS: Well, I bet that -

MCCORD: You know what I wish you were under?

IMUS: No.

MCCORD: Lawrence Taylor.

IMUS: Well, you know -

RUFINO: Oh, dog, that felt good, dog.

MCGUIRK: Leave the money on the dresser.

IMUS: That is not good, dog.







MCCORD: Move on. Move on.

IMUS: What were you saying now, Dagen?

RUFINO: (INAUDIBLE) little pixie.

MCDOWELL: No, I was just saying, I feel so normal today compared to you all. I'm going to go home and do a load of

laundry and vacuum a little bit. No, I take that back, I won't do that.

IMUS: You're not going to do - you're probably - you probably can't even turn the vacuum cleaner on.

MCDOWELL: On a day there's a full moon, I'm lucky I don't shave my head and, you know, wind up drinking water

out of a puddle in the street.

RUFINO: Look, isn't that Dagen on the street right there? I just saw her on TV.

IMUS: What's going on in business news, not that you would know, but you might.

MCDOWELL: Come on, man, that's one thing I do know.

IMUS: Oh, that's right, you do.

MCDOWELL: I know NASCAR and fried food and business. Less than three minutes we're going to get a reading, the

second reading on how fast the economy was growing in the first quarter. It's expected to improve a little bit. And the

number of people filing for unemployment benefits last week, that's expected to improve a little bit as well. So we get

those two good pieces of news, as expected, then maybe the markets will get an even bigger lift than we already see.

IMUS: Dagen McDowell coming up here. Where are they racing this weekend?

MCDOWELL: Oh.

IMUS: Oh, that's right, you're going.

MCDOWELL: Yes. Charlotte. Coca-Cola 600. I'm actually-I might be able to go to the driver's meeting right before the

race. That's what I'm aiming for.

IMUS: That's broadcast on Fox, right?

MCDOWELL: Yes, Fox, 5 p.m. Eastern.

IMUS: Will you get to go to the Hollywood Hotel, I wonder?

MCDOWELL: I can always bang on the door. Whether they let me in or not is another matter.

IMUS: Will you get to see Waltrip up there in the race booth? Well, he's in the Hollywood Hotel at the beginning of the

deal.

MCDOWELL: I will - I'm going to try my best. Again, it's all about not getting arrested, really, in my book, so.

RUFINO: Drinking water in the street.

IMUS: Well, I'd hope not.

Twenty-eight after the hour here on the IMUS IN THE MORNING program. Dagen McDowell with the Fox Business

Network business report.

Congressman Eric Cantor is coming up. We're going to talk to him about, who the hell knows.

ARLENE SANTANA, TENNIS CHANNEL: Hi, everyone. I'm Arlene Santana for Tennis Channel, with its French

Open "Court Report."

World number one, Roger Federer beat Alejandro Falla to reached the third round in Paris. Seventieth ranked Falla

served for the first set at 6-5, but Federer took it to a breaker and closed it out 7-4. It was business as usual from then on.

Roger serving out the rain interrupted match in two hours on court.







Venus Williams may be hitting the headlines around the world with her outfit in Paris, but the world number two took

care of business on court to reach round three. Venus' 14-2 on clay this year with a straight sets win over Spain's Arant-

xa Parra Santonja, racing to the opening set 6-2. Venus reached the French Open final back in 2002, losing to sister Se-

rena. But many think the world number two might go one better in 2010.

The Tennis Channel coverage from Paris continues until noon today. I'm Arlene Santana. Let's get you right back to

New York.

LEE: All right, everybody, we're awaiting two points of economic data that we're going to be watching for. One is the

jobless claims for this week. Also the second reading of first quarter GDP to just see how much this economy is grow-

ing. We expect it to be around 3.4 percent.

As far as jobless claims, we're looking for 455,000 Americans filing for first time unemployment. And a big surprise

last week with that number moving higher for no particular reason. So we're going to see if that actually is a trend as we

get some of these numbers as they start to cross.

It looks like jobless claims are at 460,000, which is slightly higher than expected -- 460,000 Americans filing for first-

time unemployment in the latest week. Let's see if we can also get you a read on continuing claims, which is 4.6 million,

right in line with estimates.

Interesting to note, last week, jobless claims were actually revised higher. So, instead of the 471,000, it was 474,000.

Here is the reading on GDP. It is three percent. We were looking for 3.4 percent. The advanced reading was 3.2 percent,

so we're actually looking for GDP to move up a little bit higher. Instead, it's come back a little bit, just to three percent.

So the economy is growing. It's growing a little bit slower than we thought. But again, it is still growing as we kind of

emerge from the recession, or try to.

Jobless claims, the four-week moving average, 456,000. That kind of smoothes out the volatility week to week, so that

also has moved higher, and that is concerning, obviously, to investors and economists that want to see this recovery not

be a jobless recovery, but one that includes jobs as we move into a new stage of our economy.

All right. Again, GDP revised a little bit lower, jobless claims higher than expected.

There's a look at our U.S. stock futures.

IMUS IN THE MORNING continues on the Fox Business Network in just a moment.

IMUS: All right. Thirty-four after the hour here on the IMUS IN THE MORNING program, on the radio all over the

country, on the Fox Business Network all over the world.

Coming up next week, Warren Haynes from the Allman Brothers and his group Government Mule. They're coming in

the studio to play.

You better be careful, Charles.

MCCORD: I understand that. Believe me.

IMUS: Get that Harley (ph) chain, will you?

MCCORD: Yes.

IMUS: Get you some good old -- Rob will get you some marijuana to smoke, because -- you know, we've got Sonny

Mehta, the editor-in-chief of Knopf. We got his five favorite songs. Of course, a day late, but not bad: "Dead Flowers,"

Stones; "Madame George," Van Morrison; "Tower of Song," Leonard Cohen; "Sail Away," Randy Newman; and "Just

like a Woman," Bob Dylan.

That's not bad, is it Lou?

RUFINO: Van Morrison. Of course you liked it.

IMUS: What?







I still think "Cyprus Avenue" is the best cut on that, but then what's his name, White House correspondent for Fox

News, Major Garrett, likes "Sweet Thing." But who knows?

All right. Please welcome now to the IMUS IN THE MORNING program from the great state of Virginia, fifth-term

Congressman Eric Cantor.

Good morning, Congressman Cantor.

REP. ERIC CANTOR (R), VIRGINIA: Imus, good morning. Good to be back with you.

IMUS: How are you?

CANTOR: We're doing great. We're doing great. Any time we can wake up in the morning with Imus, it's a good day.

IMUS: I would like to apologize for saying that you probably got your talking points from fugly Frank Luntz for your

appearance on the program. I know that's not true, so -- is it?

CANTOR: Frank Luntz is a good man.

IMUS: Yes, he is.

CANTOR: He's a good man.

IMUS: So, this BP oil disaster, give me your view of everything that's going on.

CANTOR: Well, I think one thing, I-Man, I know that Senator Dodd was on your show recently blaming President

Bush for all of this. I can tell you one thing, it's not President Bush's fault. You know, but really, it is a tragedy.

I was actually in New Orleans last weekend, and folks there are very concerned. You know, it's almost like they don't

get a break in New Orleans, and I think what the governor right now is asking for, what Congressman Steve Scalise,

who's here, has been asking for is stop the blame game.

Let's all try and be constructive here and help stop this leak. There's plenty of time to assess blame. There's plenty time

for finger- pointing. But really, right now, there is not only an environmental disaster that is occurring, there's a huge

economic disaster that may be happening.

IMUS: Now, I think Senator Dodd, an old friend of mine -- and unfortunately, he's wrong about almost everything, but

then, of course, so are you. However, I think --

CANTOR: Wait a minute. What are you talking about?

IMUS: But I think he was right in that, I think his point was, was that under Cheney, with his connection to Halliburton,

the Bush administration, and the same for the Obama administration, by the way -- we don't know and we're not clear

yet what their ties to big oil are, but they've got to be substantial -- I think Dodd's point was that all these sweetheart

deals with regulations and all of that, and all the slack that they cut BP and these other oil companies was what he was

talking about. But then he was also trying to blame -- what I was talking about was the administration's response to

what's happened.

And you're right, we do have plenty of time to, you know, assess the role of President Bush and Cheney, and also the

role President Obama played in all of this regarding, you know, regulations and all that stuff, and the supervision of

these various oil companies.

But what do we do now?

CANTOR: Well, right now, everybody should be moving in the same direction. Imus, you know, this is huge.

I heard that James Carlisle and Mary Matalin were on TV yesterday, and Mary Matalin had held up a plastic bag saying,

"This is not cooking oil. We have a problem here."

The marshes now are being inundated with oil, killing life. And I'm told that a huge percentage of seafood for this coun-

try comes from the Gulf. That is the lifeblood of the communities along the Gulf and the marshes of Louisiana. You

know, we all ought to be pushing in the same direction, encouraging anything we can do to stop this gushing of oil.







IMUS: And so are you suggesting, then -- obviously, a dumb question - - but that the administration is not doing every-

thing they can?

CANTOR: I mean, if you listen to Congressman Steve Scalise from New Orleans, he has, for days and days on end

now, asked, along with Governor Jindal, for the administration to provide what is needed. To, number one, produce a

barrier so we can hopefully stop the oil from inundating the marshes, and at the same time, stop the finger-pointing, the

blame game.

How is that helpful right now, to go and lambaste anyone? We've got to go in and plug at that hole.

IMUS: Well, it's always -- I mean, I would suggest, Congressman, that it always makes one feel good to blame other

people for stuff. So, I agree with you, it's pointless at this point. We should be trying to solve the problem, but, you

know, just as an aside, it's just always fun to -- particularly if it's somebody in the opposition party -- to blame them for

everything.

CANTOR: Hey, well, listen, this is so grave. Again, having been in New Orleans last weekend, this is serious stuff.

It's not -- you know, feeling good blaming people is not what we need to do right now. This is serious. After what New

Orleans has been through after Katrina, and now this, I mean, we ought to be focusing on trying to stop this disaster

from occurring.

IMUS: What you were just talking about Charles was talking about earlier, about allowing the folks in Louisiana to

erect these barriers on the barrier reefs there and so on. Who do they have to -- I mean, who's refusing to let them do

that?

CANTOR: Apparently, the agencies here in Washington, under the Obama administration, have not responded to the

requests by Louisiana, by its delegation here in Washington, and certainly the governor in Baton Rouge. Again, this is

not time to dilly-dally.

We ought to be there. We ought to be helping facilitate in any way we can.

And there is a tremendous amount of frustration, because there's really been no flow of communication, there's been no

answer given as to why Louisiana is not getting what it's asking for from the federal government. They've got to ap-

prove the plan that has been put in place and requested by Governor Jindal, and have been unwilling to do so. Again,

not casting blame. Let's just get it done.

IMUS: Nineteen until the hour. Talking with Congressman Eric Cantor from Virginia here on the IMUS IN THE

MORNING program.

The other day I had this guy they call "Dr. Doom."

What's his first name, Bernie?

MCGUIRK: Nouriel.

IMUS: Nouriel Roubini. He teaches at NYU, wrote the book "Crisis Economics."

And he's most famous for predicting back in 2006, I guess, perhaps before, the current economic crisis. And he's saying

that the worst may be yet to come.

What are your thoughts?

CANTOR: Well, I certainly hope not. I certainly hope not. But listen --

IMUS: Well, we all hope not.

CANTOR: We have got unprecedented challenges right now. And if you look at the policies that have been promoted

over the last 18 months, they have one thing in common -- it is about spending money we don't have, it is about incur-

ring debt because of that, and the prospects for higher taxes, higher interest rates are real.







And so, I'm worried that the country is at a critical crossroads, and that if we don't do something to change those making

decisions here in Washington, we're going to find ourselves like Greece, much quicker than anybody can even expect

now or predict. So, I'm worried. I'm certainly worried, Imus.

IMUS: The thing I don't understand, without getting into the minutia of it that makes everybody's toenails ache and their

hair hurt, but I don't understand how we're going trillions of dollars in debt, and at some point somebody, or somehow,

or somewhere, that money's going to have to be paid back to somebody.

Well, how -- explain that to me.

CANTOR: That's exactly right. And really, if you look at it right now, there's, you know, a federal government just in-

haling cash it doesn't have, meaning going out on to the markets, borrowing money. And when that happens, there's less

money for small businesses to have access to that money, to just keep the lights on, not even grow payrolls. And so,

ultimately, then, the sucking sound in Washington gets that much louder and everyone ends up having to pay for it at

some point.

I mean, you just look and see what happened with the stimulus money a year and a half ago. I'll tell you, my state of

Virginia, the legislature last year and the governor were very -- they welcomed the $3 billion in stimulus money at that

came into the state's coffers so they could fill the budget hole.

Well, you know what happened this year? All the cuts that should have been made last year were made this year, but

yet, we were left with $3 billion of debt attributable to Virginia's share, now payable by all.

So, again, we've got to back up. If we break this down, this, this question down, families and businesses know what it's

like to incur debt, to max their credit cards out. They've got to end up paying for it sometime, and that's really the kind

of decisions we need to be making here in Washington. We've got to start cutting.

We've got to start cutting the deficit. And, Imus, we just launched a program called You Cut. And You Cut is a program

that allows people to go online. All you have to do is Google the words "You Cut," and they can vote for their favorite

way to cut the budget.

There's five options every week. The winner is tallied, and we bring it to a vote on the House floor.

Today's vote on the House floor under You Cut is going to be about eliminating the pay raise for non-military federal

employees. Now, you know what? That's common sense right now, while people in the private sector are not having any

pay raise, having pay cuts, or not having a job at all. And we're expecting a pay raise here in Washington?

No. Absolutely not.

That's why I would encourage all of your listeners and viewers to go on and vote on You Cut. Google "You Cut," vote

today. We'll have a contests every week and ask voters to give their opinions so we can bring, finally, some sense here

in Washington to changing the culture and beginning to cut so we don't lay on this debt on to our kids.

IMUS: Kind of like an "American Idol" deal, huh?

CANTOR: Well, listen, I mean, Imus, it's working. You know, that's the thing, it is working, because we're seeing now

that cutting the budget is not a partisan issue.

We should be joined by all, Democrats, Republicans, Independents. And if people will go online, Google "You Cut,"

and vote, we have over 500,000 votes cast on this thing. So the public gets it. Let's change the culture before it's too late.

IMUS: I was thinking about -- I was trying to shoot myself while you were talking. This is making me crazy.

CANTOR: What?

IMUS: I was talking to Matt Taibbi. Well, you know, the last time the budget was balanced in this country was -- I

know you're going to hate this, but was during the Clinton administration, wasn't it?

CANTOR: You know, I think that certainly during the Bush administration there were some years in which we had sur-

plus early on, but then 9/11 hit. And remember, the economy took a huge hit.







And listen, none of us comes to the table with clean hands here. I think Republicans get that, Imus. But right now,

again, instead of saying, "You did badly, we're not doing as badly," time for that to end.

We've got to start cutting the budget. That's it.

IMUS: My point was that I just -- I didn't see, even with this You Cut deal, I just don't see in the next thousand years

how we ever balance the budget in this country again.

CANTOR: You know what? We've got to start somewhere, Imus.

IMUS: Oh, I agree.

CANTOR: I mean, these couple billion dollars a year is not chump change here. We have got to start somewhere. And

if the people will speak out and go online to You Cut, their voices may be heard by Speaker Pelosi and Leader Hoyer to

say, you know what? Let's start bringing a spending cut to the floor.

I can't even recall a time in which we have ever voted, this Congress, on a spending cut. That's the problem. It continues

to spiral out of control here in Washington.

IMUS: I have about a minute left, and then, mercifully, we'll let you go. But you and old Issa got your hair on fire over

this Sestak deal. Is that the deal, that the White House offered him a job to get him out of that Pennsylvania race?

CANTOR: What is this with hair on fire with you? You know, last time I was on your show you told me my hair was

too long. I went and got a haircut, Imus.

Listen, we -- I think Darrell Issa is right to be focusing on what goes on behind the scenes with this White House in

terms of its appointments, in terms of its trying to maneuver in political races. That's a legitimate question to ask, and I

think that the American people deserve to know.

IMUS: Sure. And did he drop out of the race, or no?

CANTOR: What, Sestak?

IMUS: Yes.

CANTOR: No. I mean, I think, clearly, we see what happened in Pennsylvania now.

(CROSSTALK)

IMUS: Well, I know. That was my point, he won. So what do we care?

CANTOR: Well, what do we care? What is the administration, what's the White House doing trying to go and -- you

know, allegedly go and offer something to encourage somebody to get out of the race?

I mean, this is official -- these are official duties, these are official acts being conducted at the White House trying to

achieve --

(CROSSTALK)

IMUS: I have no problem with that.

CANTOR: Yes. Well, you know what? Let the American people decide, Imus. I don't know if they'd all agree with you.

IMUS: They probably don't. And I'm kidding.

All right, Congressman Eric Cantor. Thank you very much. I appreciate it.

Eleven until the hour.

LEE: Two economic reports out this morning.

First, initial jobless claims for the latest week slipping to 460,000, fewer than the previous week, but, still, that number

is 5,000 more than forecast, pointing to more weakness in the job market. Continuing claims down, though, to 4.61 mil-

lion, staying stubbornly at that level, though.







The U.S. economy is growing slower than expected. The second estimate for first quarter GDP shows growth of three

percent. That's lower than the first estimate last month and slower than economists expected.

Here's a quick look at the markets this morning. They've been up all morning long. Stock futures are up about two per-

cent for S&P 500.

The European markets are also rallying today. This, on a few different things, including a report that China is not going

to reduce its investment in Europe. So we're seeing global markets doing well today as we head into Thursday's session.

There's a look at commodities. Crude gained about four percent yesterday. It's up 2.4 percent this morning. Gold down

just slightly, about $5.

IMUS IN THE MORNING continues right now on the Fox Business Network.

IMUS: All right. Coming up on five until the hour here on the IMUS IN THE MORNING program.

Gangster Mickey, The Godfather and Matt Taibbi are all coming up.

Five minutes now until the hour.

(BEGIN VIDEO CLIP)

IMUS: You ever wanted to watch our show when you're out of the house, on the train, or in your office? Well, now you

can.

There are these little personal TVs called FLO TV Personal Televisions. A great way to watch the show wherever you

are.

We're on every day from 6:00 a.m. to 9:00 a.m. Eastern, Pacific. You can find these gadgets in most major electronics

retailers or get more information at flotv.com.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

IMUS: Let me start with this Arizona immigration law.

What's your take on that?

GOV. BILL RICHARDSON (D), NEW MEXICO: Well, I think it's a bad law, Don. I think the best thing that would

happen is that it not be implemented, that the Obama administration plan a lawsuit saying this is federal jurisdiction

immigration.

But on the good side, we had an announcement yesterday in New Mexico - - it probably came up today -- of additional

national border guards, 1,200 coming in. And I was pleased that the president met with Senate Republicans yesterday

and he said that we've got to have a comprehensive immigration bill. Not just border security, but a legalization and

clamp down on those that hire illegally.

So, that's my take now. I just think it's a very bad law.

But Arizonans were frustrated. I understood that. But you don't take -- this is a federal jurisdiction, and I felt very

strongly that they overstepped their bounds. But they're a friendly state. You know, I'm not for all of these boycotts on

it.

So, that's where we are right now, Don.

IMUS: Well, of course, as we all know, and as you admit, the federal government wasn't doing anything, so you can't

blame the people of Arizona being frustrated. But what in the law is bad?

RICHARDSON: Well, what the law says, Don, is that a police officer has the right to seek papers, citizenship papers,

identity papers from anybody that he or she deems suspicious. That is the role of a federal immigration officer, and that

is something that at a state level, you legally, if you look at the Constitution, you look at a lot of the state constitutions,

you're not allowed to do.







So, what this is going to cause is, look, anybody that looks Hispanic in Arizona -- and 30 percent of the state is Hispanic

anyway that has been there for generations -- could be pulled over by a police officer who is, you know, totally inno-

cent. They're very competent, but all they're going to end up doing, instead of chasing criminals, is try to find somebody

that is there illegally. And that's what makes it not just unwieldy, but also, in my judgment, racially profiling and, thus,

not legal.

IMUS: Well, the law doesn't say, does it, that you can just pull somebody over because they look like, well, you, does

it?

(LAUGHTER)

RICHARDSON: You ought to see me with my beard.

IMUS: And your low rider. No, but, I mean, the law doesn't say that, does it, Governor?

RICHARDSON: No, but it says that anybody that is deemed suspicious. It doesn't say that you can pull them over, but it

says anybody that looks suspicious. Well, you know who that's going to be.

So, my point there is that I think this is hurting Arizona. It's hurting it economically, image-wise. But the real culprit

here is the Congress, that has failed to deal with comprehensive immigration.

And President Obama's trying to do it. President Bush tried to do it, to his credit, a comprehensive bill a couple of years

ago that said, you know, you're going to -- we're going to have more border security, which we got yesterday, some

more help, National Guard. And that's what Governor Brewer was complaining when she and I were flying over our

borders.

Secondly, clamping down on those that hire legally.

And third, a legalization plan. You know, anybody that's here in the United States illegally has to, if they want to stay,

learn English, pay back taxes, pass a background check, get in the back of the line. You know, be responsible.

And then, yet, you don't get citizenship. You get a status card. That's what we need to do, comprehensive immigration.

Otherwise you're going to have states like Arizona and others -- there's already about 15 states trying to do what Arizo-

na's doing. So we've got to get the Congress to really act on this thing. That's the solution.

(END VIDEO CLIP)

IMUS: This is the IMUS IN THE MORNING program.

Time now for a business update from the Fox Business Network.

Here's Jenna Lee.

LOAD-DATE: May 27, 2010

LANGUAGE: ENGLISH

TRANSCRIPT: 052701cb.220

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PUBLICATION-TYPE: Transcript

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