the best day of the year. and the best june in 13 years. lucky 13 i guess. why? well, we were touched by an angel. and considering how important europe is to american jobs and to this presidential election, the president was touched by an angel too. yes. yes, she is, the angel in this case is literal. angela merkel putting another band aid on the europe crisis that buoyed stocks around the planet. literally this started in asia and fell all the way through. this was pretty incredible news. she caved sort of. looks like they're about to kiss, doesn't it? european leaders today said they'll allow troubled banks to use emergency money from the european union. basically that means mostly german rescue funds. that's the truth of it. the bottom line, it means the money will get to the banks more quickly. helping countries like spain, whose crisis is threatening to break up the entire european experiment. now, the market celebrated, that's for sure. this is not the final solution. as this person told me today, for now, only the symptoms are being fault, as the underlying disease of excessive debt and lack of growth still remains. some symptoms of that disease, economic confidence at a 2 1/2 year low in europe and at least eight countries in the euro are in recession. "outfront" tonight, stephen moore of "the wall street journal." great to see you both. stephen moore, obviously, the market celebrated. the problem is when bad things happen in europe, they plunge. but people are saying this is not the final solution. but this was a little bit more significant. >> well, it's significant. the market loved it. germany stepped up. germany is the one country that can save europe right now. it's the one economy that's growing. what they passed, what they agreed to, erin, was essentially -- i guess the best way to describe it would be like a mini t.a.r.p. a mini bank bailout like we had in the u.s. in september of 2008. the markets loved it. but i don't think this say long-term solution. i think europe still has really systemic problems. one other point, it was a great day for the market today. but the market just recaptured most of the losses from earlier this week so let's not -- >> there has some bad days. jim, the president had his health care victory. important to him in so many ways. but what's happening in european is out of his control. really might be what really does control re-election. how big was this move in your view in europe? something that's really going to stabilize it and allow economic stability here that will result in job creation and a re-election for him? >> good couple of days for the president no doubt about it. if you remember, a few weeks back, the president did a press conference in the white house. he was talking about europe. i think a lot people were wondering why he was doing that. was he talking about, you know, making some rationalization for slow growth in the u.s. i think one of the things he was saying was it was a message to europe which was the time has come that you got to pull together and do some sort of solution. i agree with steve. this is not a long-term fix to europe's problems. >> right. >> but you can't solve the long-term problem without solving the short-term problem. and i think this solves a problem for the president. there are two head winds to the economy. one is housing. we're seeing some rays of sunlight there. the other is europe. and this should take europe off the table i think as a negative thing for the economy. for at least the rest of the year. >> i'd like to think that's true, that europe has passed -- that the worst is behind them. i don't believe that. look, erin, the problems with europe are not so much monetary. even in the banks, as bad as the problems are in the banks. the problem is they have a regulatory structure, a tax structure, that isn't competitive in global markets. nobody wants to start a business, open a factory. we had a piece in "the wall street journal" this week about how in some european countries they now have a policy if you get sick on your vacation, you get another week of vacation. there's not enough people working in europe. >> wow. >> great policy, right? >> a lot of americans are saying where do i move to get that? >> systematic of a kind of culture in europe that cannot give up these entitlements that are driving the country down. >> it's interesting, before we get too excited, jim this is the same angel, angela merkel who earlier this week said europe will not have shared liability for debt. which is a crucial thing. when you get all kinds of other countries defaulting. she said they will not have shared liability for that debt as long as she lives. >> i guess you only live twice because they now have shared liability on debt. look, i don't dispute -- >> for banks, that is very different. she's talking about you have countries that failed. that is different. >> right, a lot of the sovereign debt in european is owned by the banks, this is -- they're tied together. >> that's a fair point. >> stephen is right, this doesn't solve europe's problems by a long shot, but think the impending crisis of the economic implosion in europe this year, that probably will not happen now. >> you think -- >> we'll see. i mean, hope you're right. i do think that these -- europe just hasn't been serious about getting control of its spending. and its debt. i mean, its debt is a share of gdp is a lot higher than it is even in the united states. the real question of whether they can kind of grow up in europe and say, look we got to get back to work. we got to become competitive. i'm not so sure they have the will power to do it. germany, as i said earlier, is the one country that's really doing well. they have very low interest rates. the question is whether the german people -- because angela merkel has to be accountable to the citizens. they don't want to bail out france and spain and italy -- >> they see it as they're sitting there working hard. then have a lot of issues as other european countries. france wants to cut their retirement age to 60. this whole thing about i'm sick on vacation so i get another week of vacation. >> that's a big problem. who do they compete with? they compete with asia. the asians work 70 hours a week. >> don't they already get six weeks a year? six weeks or something? the month of august? >> exactly, everybody takes july and august off. >> in a sense, i think we're all a little jealous. the whole system may fail. but this time of year. thanks to both of you. we'll take that gain where we can get it. best june in 13 years for stocks. republican presidential candidate mitt romney says he's going to repeal obama care on day one. why it doesn't add up. and the iphone 5. looks like it was a killer. in more ways than one. george zimmerman had a bond hearing today. his attorney explains why zimmerman and his wife transferred so much money between their bank accounts before that bond hearing. he's "outfront." start. i have to know the weather patterns. i upgraded to the new sprint direct connect. so i can get three times the coverage. 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[ female announcer ] only flood insurance covers floods. visit floodsmart.gov/risk to learn your risk. all right, our second story "outfront," mitt romney's day one promise. >> what the court did not do on its last day in session, i will do on my first day if elected president of the united states. and that is, i will act to repeal obama care. >> that is not the only day one promise mitt romney has made. >> day one. president romney immediately approves the keystone pipeline, creating thousands of jobs obama blocked. day one, president romney announces deficit reductions, ending the obama era of big government, helping to secure our kid's futures. president romney stands up to china on trade and demands it play by the rules. >> some of those things are kind of vague and hard to do on day one. but these promises are politically often easy to make and rather hard to keep. in fact, president obama tried to fulfill his campaign promise on day one. >> we're going to close guantanamo and restore habeas corpus. >> now, on day two of his presidency, he did sign an executive order to close gitmo. then he realized it's not that simple. 3 1/2 years later of course gitmo is still open. does mitt romney's day one promise amount to more than campaign talk or not? mckay koppens joins me. michelle goldberg, senior contributing writer for "newsweek." and allison stewart, former speechwriter for michele bachmann. is this a promise he can keep? >> absolutely. the first thing he'll do is issue waivers to all 50 states in order for them to make their own decision on this. the plan to repeal obama care, governor romney will bring both sides of the house and senate together. republicans and democrats. and he will work together in order to find the best solution to health care which includes free market reforms. what we have -- what we had yesterday, we had reaffirmation of another broken promise on the part of the president. this thing is nothing more than huge taxes. it includes an array of taxes. more than 21. and 12 of them affect the many people he says will not be affected. those making less than $250,000 a year. another broken promise and something that americans can't afford. >> obviously michelle does not agree with you. on this waiver point, my understand, only certain provisions could be waived. and only if states have immediately implementable ideas. >> this is the first step in a series of steps. putting the power in the hands of state is the most important thing we can do. this is a states rights issue. let them put the power in the people of what we need to do. while the supreme court made an important decision yesterday, the final verdict will be in the hands of the people come november. >> all right, michelle this is -- to repeal it is very complicated, right? he can't just repeal it. even saying he has to get these waivers -- >> -- this loophole -- >> you have to get congress, a filibuster proof majority. nobody's saying they're going to do that. >> they're not going to do it legislatively. it's inconceivable. in which republicans take all three branches of government. >> dystopian obviously from your perspective. one person's utopia is another person's dystopia. >> as well as people like me, you know, the rest of us who could at any time be completely bankrupted should we run into unexpected medical trouble but that's a kind of side point. sometimes you'll hear them throwing around this idea that republicans, if they only take a majority of the senate but not a filibuster proof majority, that they could use the reconciliation process to try to undo obama care that way. the reason they can't, i think this is important for people to understand, is because the congressional budget office has estimated that repealing obama care will add $145 billion to the budget between 2012 and 2019. one thing that always gets lost in this debate, partly because romney's been so dishonest by saying obama care adds to the budget deficit, is that this is a bill that not only kind of expands insurance to many, many millions of people, but it also attacks the budget deficit. >> right. well, i mean, that is the cbo estimate. i know some people may disagree but mckay -- >> i know, but republicans have their own numbers. >> there are many studies out there. they do show different numbers. the whole point is, you can't go through the reconciliation process unless the bill at hand is shown to add to the budget deficit. and the arbiter of that by law is the cbo, correct? >> right. >> they say it doesn't so that means reconciliation, what they've been talking about all day, won't work. >> it's almost a political mirage here to say as soon as president, you know, a president romney gets into office he's going to be able to magically waive his wand and repeal it. this will be a long drawn-out fight in congress. and it remains to be seen whether he would want to use his political capital on day one to refight this battle of 2009. that really it's a political loser in a lot of ways because he's also said on day one he's going to attack the problem of joblessness, right? so if he wants to pass a jobs bill, he doesn't want to waste his time working on this. >> this brings me to the point of when you look at what americans are most worried about in this country, you know, it's jobs. the deficit. a lot of immigration. all come before health care. i mean, should he be wasting his political capital now trying to get votes? and if he were to win on this? >> well, remember, romney's been very smart, in that he has been focusing on jobs and the economy. that's why people trust him to fix the economy over the president. and one thing is important to note. while this is -- economy's the number one issue, you have to keep in mind in terms of the numbers, obama care will cost $2.6 trillion over the next ten years. that's quite a bit of money. and in terms of whether or not the republicans will take over the senate, we'll certainly hold the house. and we have all expectations and are optimistic we'll take control of the senate. we don't necessarily need a republican majority. we're already seeing democrats distance themselves from the president. look at mccaskill. they're also distancing themselves from the president. so they're going to break ranks with the democrats if this is, you know, we get back to november because they're not going to want to -- they won't be able to face their constituents and support this largest tax increase and this huge tax burden on the american people. >> does it make sense for mitt romney? alice makes the argument from her side of the aisle it makes sense. do you think it does? >> look, she's right there are certain blue dog democrats who have switched sides on this. it seems highly unlikely mitt romney will be able to bring enough democrats on to his side to repeal this without significant gains and republican gains in the senate. which i mean they might get a majority. they're not going to get a super majority. with filibuster rules the way they are it seems unlikely -- >> maybe he has a better chance with china, michelle? >> if mitt romney is able to get democrats on board to repeal the signature kind of progressive achievement of the last 50 years, i will name my first-born child willard even if it's a girl. >> willard? you couldn't even go with mitt? i mean, honestly? he doesn't even use willard. hey, we'll take it. that's as close as you can get. thanks to all three of you. the iphone debuted five years ago today. it might be to blame for the slow descent of what is still my beloved. hundreds of homes destroyed in colorado. we have a stunning picture that came in today to give you a sense of how dramatic this is. before and then after the fire struck. we're going to go to colorado next. automatically filter just the right amount of light. so you see everything the way it's meant to be seen. experience life well lit, ask for transitions adaptive lenses. you know what's exciting? graduation. when i look up into my students faces, i see pride. you know, i have done something worthwhile. when i earned my doctorate through university of phoenix, that pride, that was on my face. i am jocelyn taylor. i'm committed to making a difference in people's lives, and i am a phoenix. visit phoenix.edu to find the program that's right for you. enroll now. you walk into a conventional mattress store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those. if you want a soft bed you can lie on one of those." we provide the exact individualization that your body needs. welcome to the lowest prices of the season, not just on ordinary beds, but on the bed that can change your life. the sleep number bed. this is your body there. you can see a little more pressure in the hips. take it up one notch. oh gosh, yes. when you're playing around with that remote, you get that moment where you go, "oh yeah" ... oh, yeah! ... and it's perfect. they had no idea that when they came to a sleep number store, we were going to diagnose their problems and help them sleep better. and don't miss our special financing now through july 4th only. plus enjoy the lowest prices of the season on selected bed sets once you experience it, there's no going back. wow. it's the lowest prices of the season on the amazing sleep number bed. special offer ends july 4th only at the sleep number store, where queen mattresses start at just $699. so the iphone is five. i didn't say the iphone 5 is out. said the iphone is five. as in five years old. now, the original iphone, let's just -- i mean, remember how fat it looks relative to the way they are now? it went on sale back on this day in 2007. at the time, iphones were about $200 more expensive than any smart phones. it went on to be incredibly successful. three more versions of the phone were released to lines like this all around the world. this looks like it might have been tokyo. about $150 billion worth of them. they had competition. i mean, remember -- remember these guys? the razor 2? the lg voyager. and the palm. released in 2007. also in 2007 was the blackberry curve. back in 2007, the blackberry was all the ridge. it was crackberry. people would feel phantom vibrations on their legs. yeah, not just talking about politics. one investor even compared the constant checking of your blackberry to pavlov's dog. that is the number that research in motion saw its shares plunge today. in the latest quarter, $518 million lost. wow, that's a complicated chart but those are the headlines. yesterday, the company said it will cut as many as 5,000 jobs. a third of its current workforce. that is bad news obviously for me and my beloved. i love her. for the world's most famous blackberry owner. see him? that's a curve. it's a silver curve like the one we showed you. that's the president of course. in april, it was reported despite the company's trouble, hatch a million employees still use blackberries. they're a lot more security. an iphone is not something you want him to be tapping text messages on about i don't know iran, syria, russia, or anything else. we'll wait and see how long research in motion can hold on to them. we're rooting for them. now, our third story "outfront." the worst wildfire in colorado raging across the state now unabated. the president declared it a major disaster. he toured the devastation today. with only 15% of the fire contained, 16,700 acres have been scorched. 346 homes destroyed. 20,000 still in harm's way tonight. two people are confirmed dead. and the body of the second victim was found this afternoon in the same destroyed home as the person found last night. i want to show you a picture, just an unbelievable picture. to give you a sense of this before and after. this is mountain shadows. a subdivision in colorado springs. we'll show you the before picture. then you can see the after picture to get a sense of just how incredible this has been, how this fire has completely razed entire neighborhoods. really destroyed so many l