not the case. ouch! >> it was actually a pretty hard slap. there was some conversation that he said i prefer a hug than a slap and he walloped him anyway. >> tough job. all right, kate, we'll see you tomorrow night. that's all for us right here. hope to see you tomorrow night as well. "erin burnett outfront" starts right now. outfront next, breaking news. the biggest day of the year. why? a 300-point surge. what the heck for? and fbi now involved in finding out how high in the american government classified information is being leaked. later ripped from the headlines, a story about spies, iran and billy baldwin. good evening, everyone. i'm erin burnett.

outfront tonight we have breaking news. a surge of the day. stocks just jumped to the moon. dow and s&p had their single best day for the entire year. the dow jumps 287 points. so you can say why, the sheer excitement. have we suddenly solved all of our economic problems? have we stumbled upon a machine gun of silver bullets? have we found our terminator? not so fast, arnold. today we got shot up with rubber bullets. it was an arsenal of talk but no concrete action. in europe, the central bank chief said officials stand ready to act and there were reports of talks of a possible deal to bail out banks in countries in crisis like spain. that's a lot of talk. being ready to stand by is different than standing by. here at home, the fed said it

may be ready to take further action to help spur the economy, extending unprecedented efforts to ease credit. now, that's still talk and not action. is this what we have come to, so desperate, hanging on to the economic precipice that a little sweet talk sends stocks to the moon? outfront tonight, doug eagan and robert reish, author of the new e-book, "beyond outrage." robert, let me start with you. look, we want to be happy and hope this is for real, but this really was a whole lot of talk. i was kind of amazed. you could look through it, there was very little specifics. it was all hope that maybe, if needed, talk will become action. >> well, erin, i think the explanation is that the market had fallen so far and so deep, particularly after friday's very dismal jobs report, that the market and traders were looking for any silver lining. any good news. bond prices are very, very high.

the yields are very low. a lot of global savings are just looking for where to put their money. and stocks are looking relatively good. so everybody was sort of waiting for the first little bit of good news and they would surge into stocks. there's another factor, and that is also there are traders on wall street. there were spec laters. they tend to exaggerate the volatility. on the way down they sell short, on the way up, they speculate. >> doug, what do you make of this? and i guess also because you don't want the guys who run these central banks, ben bernanke here in the united states, to go ahead and do things because the markets think that they should or will. that's, frankly, the last thing you want in terms of driving them to action, isn't it? >> i agree with that completely. i think this is mostly a europe story in the substance. there, if the central bank were to lower interest rates and continue to provide liquidity, it could benefit real growth in the eurozone so traders seeing

that had good reason to be slightly more optimistic. europe's capacity to disappoint, however, is enormous. i don't think there's much going on at the fed end. they stand ready to counteract any shocks that come out of europe. there is some hint they might do some more easing and, yes, that could help stock markets but it couldn't do what the europeans do which is push more u.s. growth there. this is just talk and it's not going to help our economy. >> let's talk about where we are, because tomorrow ben bernanke will be talking and answering tough questions on capitol hill and we want to be out front of it. robert, this really is the key. many, many trillion dollar question. does the united states need to do more right now? does ben bernanke need to do more for the economy? >> i think he does, erin. you know, the president of the atlanta federal reserve board branch said that he thought that we're getting to the point where we may need more so-called quantitative easing. that's basically fed speak for

buying up long-term interest -- getting long-term interest rates down and making sure that the economy over the long term, those long-term interest rates, will spur additional growth. i think that a lot of people have come around to the view that particularly after friday's very dismal jobs numbers, the fed is far closer to embracing quantitative easing, a third round of quantitative easing than it was prepared to do before. there are still some inflation hawks on the fed that are worried about doing that, but not many. i think they're just about ready to do it and i think it's the right thing to do. >> could you say, doug, that it's like a drug. i inject it the first time and i get this great high and then i get addicted. the second time the high is not as good. interest rates can't get any cheaper. it can't be any cheaper to get a mortgage for all intents and purposes and still that hasn't been enough. so why would qe-3 do what 1 and 2 haven't done. >> i think the.

>> go ahead. >> i don't think the fed should move, quite frankly. we did quantitative easing 1 that made some sense. they tried quantitative easing 2. yes, it caused people to buy riskier stocks but didn't help real growth at all. they did something called operation twist. no one has noticed. if they go ahead with qe-3, it would give the stock market a boost but do nothing for our economic problems and they should resist the temptation. >> robert, final word for you. >> let me actually side with doug a little bit on this. if you don't have any fiscal stimulus at all, then if it's all up to the federal reserve board, and i am in favor of qe-3. i think the fed ought to do what it can do. we shouldn't close any doors. but it's not going to have a huge impact because without any fiscal stimulus, a lot of people, a lot of businesses are still not going to borrow. they don't have an incentive to borrow or expand because there's

not enough demand out there in the economy right now. >> you're a glutton, you want ben bernanke, you want congress, you want all of it. >> i want all of it. i want to get jobs back. we've got to do everything we possibly can do, erin. >> all right, thanks to both of you. of course we'll be watching ben bernanke tomorrow. it's going to be crucial testimony to see whether this economy is in recession or not right now. outfront next, a huge story in the election involving unions that could have implications for every state. and it happened hundreds and hundreds of miles away from wisconsin. and later, the facebook debacle at the nasdaq and how much it will cost. and later, we've got new video in the case of the man accused of murdering a student, obliterating his body and sending the parts through the mail.

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the redesigned, 8-passenger pilot. smarter thinking. from honda. our second story outfront, all the wisconsin talk overshadowed a crucial vote last night that dealt a serious blow to public unions. voters slashed pension benefits for government workers in two of america's biggest cities, san jose and san diego, california. the fight against unions is going on from coast to coast. it's those cities and of course it's wisconsin. we all know about that place. but now the anti-tax crusader, who harry reid once called the most powerful man in washington, says it's a free day.

states need to follow the example set by wisconsin governor scott walker. after tuesday's results there came this tweet from the one and only grover norquist saying, quote, there are 23 other states with gop governor, house and senate now able to pass scott walker's reforms. they know it works and is safe. grover norquist is here tonight. you said governor walker's reforms are safe. i read that and wait a minute, safe is going through a recall and wasting $70 to $80 million on a whole recall because you didn't go about it the right way? >> well, i think for a long time american elected officials wondered whether they could take on the power of public sector unions. what chris christie did in new jersey was show that you could talk about disagreeing with the teachers union without appearing to be anti-teacher or anti-education. and what scott walker pointed out was that you could actually pass reforms which reform public

sector unions, which save a lot of money for state and local government. barrett, the mayor who ran against him, had implemented many of his reforms and saved tens of millions of dollars for the taxpayers that he represented. so it works. it saves money. public sector jobs and public sector work gets done. and even though the entire public sector union leadership through money and resources into one state, they still couldn't take one guy and his lieutenant governor out. so it says to other governors, wisconsin has a history of being very strong for public sector unions. it's a union state in many ways. it's a democrat, liberal state in many ways. >> for sure. >> so if you're from some other state that's not as left of center as wisconsin traditionally has been, it's -- the ice is thick enough. go on out. >> so let's talk about one of those states, ohio.

republican governor, gop legislature, tried to push through reforms and cuts to pensions and roll back collective bargaining. there was a rule in ohio, went to voters in referendum, they said no way and it didn't pass. so it's not quite that easy. >> two things, nobody has lost an election over it in ohio. what did happen, of course, they had a referred question. the campaign on that was insufficiently focused on what wisconsin did, which was making local government work. so, yes, you can still have this issue and ohio didn't present it well and didn't raise the resources compared to what the you know 81s did. >> what about the overall point here, grover. you look at exit polls in wisconsin. you were talking about it yourself, this is a state that goes democratic. if it goes republican, that would shock almost everybody, no matter who wants to call it purple today, it's still a democratic state. right now voters according to the exit polls, which i know have their issues, prefer president obama to mitt romney

51 to 44%. do you think some of these hard line tactics, this my way or the highway, if you don't like it, go jump off a cliff, is not the way to do it? >> four years ago when obama ran he won by twice that margin so his margin in the state has fallen in half. the state has also passed a voter i.d. law which a liberal judge said won't apply to this election. so this is the last election you could show up on election day, tell them you're mickey mouse and vote. that can't happen in future elections. so the vote is going to get closer for obama running at the national level. but i'm actually more interested in what san jose and san diego did. >> yes. >> reforming the overspending on pensions and benefits, the teacher tenure laws that allow teachers who have been there three years to keep their job forever regardless of whether they're doing a good job or a bad job. those are reforms that are moving state by state. as i pointed out, there are 23

other states that have a republican governor and legislature, meaning if they sit in a room and say let's do what wisconsin did, texas and florida, georgia, big states. >> let's bring in john avlon and roland martin into the conversation. on that issue of you have two states that would do it, john, let me go straight to you on this. a lot of people are saying that the vote in wisconsin maybe wasn't so much about the collective bargaining but people saying a recall is supposed to be about did the guy break the law. so maybe the vote is not this mandate on collective bargaining or anti-union and more straight down the middle about did the guy do something illegal? >> to that point, we've had recall fever in this country. in 2011 there were 155 instances of recalls on local races. so i do think that there's general lly a rejection of this. that clearly was a part of this. but the fact that walker won with more votes than he did in

2010 also speaks to a certain strength. then, of course, the money differential, you can't discoun democrats take away from that. san jose cut its workforce by 25%. they had done all sorts of things. at a human level hurt a lot of people's lives because they didn't want to mess with pension promises but they voted to go ahead and cut those promises. this seems to be something that is bipartisan, isn't it? >> first of all, when you have a difficult economic time, the public is going to look to anybody to want to be able to blame or make any kind of adjustments. keep in mind, when we talk about public workers, people ask as if we're talking about only democrats. there are actually people who are republican that are teachers, firefighters and police officers. one of the things that we have to keep in mind also, especially when you talk about teachers, i have three siblings that are teachers, is typically the payoff for a teacher is going to be that particular pension.

here we are trying to get higher quality folks in the classroom. if you begin to say we're going to cut pensions and we're not going to pay you more on the front end, then we're likely going to lose quality people in the classroom. so we might want to be very careful in terms of how we attack this whole notion of a pension for public workers, because they are sacrificing on the front end to get something on the back end. >> but what if you paid them for their performance all the way through? pay them on the front end if they're good, fire them if they're not? >> first of all, i absolutely believe that if you are not a quality person, you should get fired. but keep in mind, the same people who voted yesterday are the same folks who don't want to pay more right now. so at some point they're going to have to figure out where do i stand on this and the rubber will meet the road somewhere. >> but really the votes in san jose and san diego are in some ways even more significant than wisconsin, because it happens in california. it's not a narrow margin, it's a 70% margin.

democratic mayor of san jose saying, look, our pension costs have tripled in the last decade. we're spending a quarter of a billion dollars on our pensions. we can't afford that. people across the political spectrum say that's right. these are deals made decades ago and we can't afford it. we need the freedom to make fiscally responsible justice. >> grover, would you think i don't want to be the standard bearer for the republican party, i admire what the democrats are doing. do you admire the democrats? >> i think you've got some democrats who are put in a very k difficult position, which is one of the most important funding bases for the democratic party is organized labor. they take union dues out of the paychecks of teachers. in wisconsin it was $1,000 per teacher taken by the union and then spent on various things. one of the things -- >> right, so all i'm saying is wouldn't you say that these democratic mayors, governors who are taking on this issue are all the more courageous?

the republican guys aren't getting these donations. that's not that hard to take them on. >> no, they are being courageous. they have been put in a situation where the public sector unions and their demands are bankrupting whole cities. they have to do this. you're even seeing rahm emanuel in chicago begin to have some of these efforts. this has to happen. it's bankrupting cities, states. government can't work with these sorts of costs that are being imposed on it. this is happening, but slowly. it should have happened ten years ago. >> grover, thanks very much. >> got to leave it there, sorry, roland. john and roland will be back tomorrow. ahead, a report from miguel marquez. a man terrorizing americans by planteding bombs in every day household items in this country. and the nasdaq forced to pay millions for facebook to whom, to you? is it even the right number? [ male announcer ] this is corporate caterers, miami, florida.

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the fallout from the facebook ipo continues. although it's fair to say as part of the bounce in the market the stock did go up a little bit. part of the problem lies with, well, where facebook went public. it went public on the nasdaq.

you may be aware that serious problems in nasdaq systems on the ipo day caused big losses for a lot of people. it was so bad, in fact, that the ceo of the nasdaq said had he known these problems would have happened, he would have stopped the entire ipo. so much money is he going to have to pay? today nasdaq said they're going to pay. they're going to provide some compensation to people who lost money in a few different ways. this is a little complicated. basically when the stock opened at $42 a share, that was a problem for a lot of people. a lot of people tried to buy stock and didn't know if they were able to boouy it or tried sell it. well, as you know the stock fell sharply. if you were in at $42, you lost a heck of a lot of money. how much is the nasdaq on the hook for? that's our number tonight. $40 million. so they hope. they said, hey, guys, $40 million. they're going to give $13.7 million in cash and then say, you know what, we'll give you a discount if you trade with us and that's how you'll make up

the rest of the $40 million over the next few months. we'll see if that will actual work. there's a problem with it because a lot of firms are really upset with the nasdaq. a trader told me today that the losses for the firms were actually nowhere near $40 million, it was $120 million. and those firms, those firms are actually, you know, regular people. your pension, your 401(k). they represent them. that's going to be a problem. as one trader told me, the nasdaq has egg on its electronic face. ahead on "outfront" are intelligence leaks happening at the highest levels of the american government? and bizarre case of the body parts murder in canada. the suspect released videos while he was on the run, and we have them. reat presentation. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers.

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we stutter the second half of our show with stories we care about, where we focus on our own reporting from the front lines. the social networking site linkedin is acknowledges that at least some of the six and a half million passwords have been hacked, possibly by russians. they haven't said how the passwords were stolen but it's investigating. customers' passwords won't work. if you were hacked you will get an e-mail with instructions on how to change it.

regulators testified before the senate banking committee today on jpmorgan's $3 billion trading loss. we are monitoring the hearing all day and comp troller of the currency, tom curry, was somebody we focused on. he said he believes the issue was quinn i can't te was inadequate risk management. that office controlled the portfolio that had the $3 billion loss and directly reported to jamie dimon. the jury in the trial of jerry sandusky has been picked. there are five men on the jury, seven women and four alternates. ten have ties to either penn state or key figures in the case. cnn contributor, sara ganom is reporting on those who didn't make the cut. among them a middle-aged man who goes to church with the sanduskys and a former teacher of one of their adopted children. the trial will begin monday. he has pleaded not guilty to charges he sexually abused ten boys. the wife of pedro hernandez, the man accused of killing etan

patz 30 years ago says her husband's confession is unreliable. her attorney told cnn that she has seen her husband's delusions and hallucinations and other mental illnesses for a long period of time. pedro hernandez is being held without bond at new york's bellevue hospital tonight. it has been 307 days since the u.s. lost its top credit rating. what are we doing to get it back? maybe the stock market rally will help. the dow did jump 287 points and is the best day of 2012. now our third story outfront. it required a little bit of a setup here. top secret intelligence leaking out of washington like a sieve. compromising our national security. and what is the motive behind all this leaking? the fbi has launched an investigation to find out how classified information leaked to the media, specifically classified details revealed by david sanger, the reporter you saw outfront earlier this week, talking about america's

top-secret cyber war and programs that were targeting iran's nuclear program. that's the latest, though, in a series of leaks that have people like john mccain calling for a special counsel to investigate. >> such disclosures can only undermine similar ongoing or future operations and in this sense it compromises our national security. for this reason, regardless of how politically useful these leaks may have been to the president, they have to stop. these leaks have to stop. >> speaking to reporters on air force one, white house press secretary jay carney responded, telling reporters that any suggestion that this administration has authorized intentional leaks of classified information for political gain is grossly irresponsible. intelligence leaks in washington are not a new phenomenon but in the past two months the dam seems to have broken. there's been details of a secret shipment of f-22s to the united

arab emirates. sources there told me that was incredibly damaging and frankly said, hey, look, why does the u.s. have such loose lips. there was also the discovery of the saudi arabian double agent in the foiled bomb plot in yemen. his life is now at risk. last week we heard about president obama's secret kill list and many are questioning the release of secret information surrounding the killing of osama bin laden himself. are these leaks politically motivated? it's a crucial question. if they are, whoever it is, no question should be held responsible. representative peter king is the chairman of the house committee on homeland security and he is outfront tonight. good to see you, chairman. let me just ask you the key question. john kerry has just come out a few moments ago saying the allegation that the white house could have been involved in these leaks or authorized these leaks is not close to reality. incredibly strong words. he said there is not a single democrat in government, in the white house who would have done such a thing or did such a thing. do you think it's political motivated? >> erin, whether politically

motivated or not, it has to be coming from the white house, coming from the administration. this goes back two years ago, the times square bomber before they leaked out the identity of the bomber. he heard about it and took off for the airport. took heavily armed guns with him which could have put the nypk at risk. then the bin laden raid where they were spilling out information which secretary gates was furious about. then we find the stuxnet arrangement, which i'm not even at liberty to talk about. the drone attacks, the bomb plot out of yemen. this stuff is pouring out. there's always some leaks either accidentally or intentionally and usually one item or two items. but these are verbatim quotes from the oval office. talking about joe biden saying the israelis are the ones responsible for the mistakes with stuxnet. how the president sits there going over the list and thinking about st. thomas moore and st. augustine when he's going to

authorize drone attacks. somehow the media found out, the associated press found out about it and this puts us at risk not just so far as the people involved in these plots but also our allies who are very reluctant to deal with us and work with us. >> the allegations that you're making are -- it sounds like from what you're saying, i don't want to put words in your mouth, but what i'm hearing is if someone knows what's going on in the president's mind or joe biden's mind, that means it came from them. that's an incredibly serious charge to make. >> it is. you're talking about conversations among very small numbers of people in the oval office or in the -- in the national security council in the situation room. we're talking about the people closest to the president. this isn't a big political gathering. we're talking about people with top secret clearances and it should be easy enough to find out who was at these meetings. when it comes out verbatim what's being said, who authorized what, how the program was begun, why it was continued, why it was discontinued, that has to come from people close to the president. and if the reporters are to be

believed at all, this has to come from the people at the very highest levels. nobody else could this come from, especially when things and quotes are exact and direct. >> sometimes people use quotes of what they hear may have been direct. they're reporting but it's not perfect. it could be a cia agent leaking a lot of this. it could be someone with a beef to pick and combined with other conversations where people say, look, the president takes this so seriously and to heart when he thinks about national security and what to do with drones he thinks of st. thomas moore, right? that wouldn't be treason. >> i'm saying being irresponsible and being careless. whether it's the president or the people closest to him. again, when you have discussions about what went on in the situation room, which is such a limited number of people who were there, that has to come from people close to the president. they have to know who it was. similarly with the drones, with the stuxnet, all of that is so highly classified and the way the information was delivered in "the new york times," in the

books, it's clearly come from people right around the president. for instance, in the stuxnet story when joe biden says it's the israelis, they're the ones who had to do that. this was an oval office conversation discussing the compromise of one of the most sensitive programs, i've we have it. i'm not even at liberty to talk about if we have it or not. you have the vice president of the united states being quoted directly. who else could have been in the room? you're talking about a happenedfhappenendful of people. >> we appreciate it. this is an issue that bill get a lot more conversation. now our fourth story outfront, police today linking a severed human hand and foot mailed to separate schools in vancouver to the same college student who was allegedly killed and dismembered by a canadian porn star. police are also looking into videos that they say luka magnotta may have posted while he was on the run for more than a week including one just before his arrest where he appears to be relaxing and listening to madonna. ♪ >> what's up and hi to all my fans.

>> thanks very much. i know you have been covering this sort of day in and day out, one of the most bizarre and gruesome stories. what can you tell us in terms of how confident police are that these latest body parts that have come to the school are linked to the case? >> reporter: well, they're almost certain, erin, that they are indeed parts that belong to jun lin, the victim you mentioned earlier. they haven't completed dna testing. the parts were shipped to montreal for that testing today. while there's no 100% confirmation at this point, police say because they are the right hand and the right foot, parts that were still missing, they strongly believe that they are jun lin's. the other fact that lynx it to luka magnotta is that they were posted from a montreal postal outlet. they don't know the exact location but they are fairly

certain it is the work of luka magnotta. >> i know this is just an awful question, but i'm sure some people out there are thinking. we talk about all these body parts that have been showing up. do they know where the head is? do they expect that there will be more? >> reporter: the head is the body part that is still missing, and believe me, erin, police are very careful when they bring up these gruesome details, they are so graphic and obviously thinking about the family when they do so. but the fact remains, the head is still missing. whether or not it's in the mail, police say it's not clear. at this point it takes about ten days maximum for any body part to be mailed from montreal to any other part in canada, so the timeline in terms of where the parts showed up in vancouver fits that timeline. so we're reaching the maximum. if it doesn't show up in a couple of days in the mail, they're not sure where it is. they have looked at dump sites and they are looking into whether or not it may have been shipped outside of canada, maybe to the u.s., maybe overseas. they're still not clear. while they have said they don't need the head in terms of physical evidence, they do have quite a bit, they do want to

obtain everything for the sake of his family. >> i know the victim's family did just arrive in canada last night. what do you know about them? >> reporter: they're devastated. they come from a province in china that is relatively poor. they arrived in montreal last night with the help of the chinese consulate in montreal. we spoke to a student representative who was at the airport to greet them. the mother was beside herself, could barely walk, they had to carry her and she was rambling and basically they could make out she had come to find her son and bring him home. they are very devastated. this is such an incredibly awful story to find out about your own child. the community in montreal, the chinese community, especially at the university where lin was studying have set up two donation drives that we know of at this point to help them in their trip here and to get back home. still ahead, what's it like to have two brothers, one outspoken, that's an understatement, voice for the left and one an evangelical

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we've heard a lot about the deadly consequences of improvised explosive devices, ieds in war zones like iraq and afghanistan. but now ieds are showing up in phoenix, arizona. police say there's a serial bomber that's been working in the city, planting bombs in everyday household items like flashlights. so far three victims have been injured from these ied attacks. police say this could be just the beginning. miguel marquez has been outfront on the all-out manhunt for a serial bomber. >> reporter: everywhere you look here, reminders of serial improvised explosive devices, ieds disguised as flashlights blowing up in their victims' hands. phoenix is a city on edge. >> some breaking news right now. tammy rose overhead in the chopper where a possible flashlight has been found. >> reporter: dozens of false alarms after three bombs in three different areas. two in glendale just west of

phoenix. >> pick it up, look at it, it looks normal. push the button, hey, wonder if it works. boom. >> reporter: janelle mckey was the bomber's first victim. >> and how big was that boom, like a shotgun blast? >> reporter: yeah. that's exactly what it sounded like. yeah, it was loud. >> then you smell sulphur? >> mm-hmm. >> so gun powder basically? >> exactly. >> reporter: the third bomb in a salvation army sorting facility in south phoenix. >> literally blew up right there. >> reporter: this must scare the hell out of you and people here. >> it does, it does. we don't process flashlights right now. >> reporter: this flashlight is very similar to the one that exploded here at the salvation army. it has that plunger-like switch so when the employee pulled it out of the box, he looks at the front of the light to see if it would go on. press the switch and it exploded. so far only minor injuries. federal investigators say the bombs are sophisticated. the maker's unique signature on every device. each bomb identical in

components, construction and design. a standard 6-volt flashlight. into it, the explosive, a small 9-volt battery wired to the flashlight's switch is then filled with bb pellets, other metal and all of it packed tight with kitchen sponges and other packing material. other similarities, the bomb plafts and victims are random. dr. steven pitt profiles criminals. he says the bomber is possibly an angry male loner who is likely to strike again. >> if an individual is doing this for excitement, to be sure the corollary of that is, hey, i know a way to get even more excitement. i'll keep doing this but i'll do it at a little higher level or take things to the next level. >> reporter: investigators fear this bomber will strike again, maybe next time with a deadlier bomb. it's an all-out manhunt in a city gripped by a serial bomber. >> miguel is in phoenix tonight. do they have any suspects? i guess i'm just curious, we're talking about ieds. is it possible there is a

military connection just because of the way they're choosing to attack? >> reporter: yeah, it is possible and certainly investigators aren't discounting any possibility of these attacks. what they do believe is that somebody has information out there that would lead them to arrest this person. so they don't have any specific suspects. there's no specific profile at the moment about who this could be. but they are certainly opening up the flood gates of investigation right now trying to catch this person before it gets deadly. erin. >> and how sophisticated do you think the bombs are, miguel? >> reporter: atf is calling them sophisticated. this is a person who understands circuitry. the bomb that ended up here at the salvation army sorting center, that may have been in a sorting box and been moved around for several weeks perhaps. so these are robust bombs. he's stuffing them with metal, clearly meant to harm. they could easily get much, much worse. erin. >> all right, thanks very much to you, miguel. very strange story. and now our fifth story outfront. actor billy baldwin is going all

in on the story of an iranian cia agent who goes by the name reza. he risked his life to spy and tell his story in a book and he told me he's still afraid for his life. >> absolutely, i have no doubt that should my identity be revealed, they're going to take me out. they're going to take out a lot of people who are in contact with me within the revolutionary cause as i still reveal their secrets. >> now, his real-life spy novel is being made into -- well, it could be a hollywood blockbuster. billy baldwin optioned the rights to the book and he comes outfront tonight. billy, i was so excited when i saw this. what made you connect with reza's story? >> well, i connected to it on many levels. i was a political science major with sort of an emphasis on the arab-israeli conflict during the first reagan term. if you close your eyes and you listen, it sounds very similar to the themes that are going on today, you know, going on in ir

on in syria, in egypt, in iraq, obviously in libya, and i think that it's very timely. i think it's very topical. and i think it's of great interest not only from a political stand point or from an intelligence standpoint, but it's a great, beautiful human story. >> how are you going to tell the story? will it be a mini series, a movie? are you going to play reza? >> no, no. of course not. i probably would play his cia contact person, his point, his possible. >> yeah. >> but, again, this is not only an intelligence thriller and a military political thriller, what it's rooted in, it's going to be told to the prison of this relationship between these three young boys, think of perhaps kite runner, these three young boys that grew up on both sides of this argument. >> when do you expect this will be ready? >> this is a very dense story. i think it might be better served if we tell the story as a

limited series or as a mini series much like hbo did with john adams, be able to tell this in three, four, five hours in a cable mini series. i think they delve into the material and get into a lot of the intricacies and the subtleties of their culture and of their way of life. we'll see. we've got some hurdles ahead of us. >> i'm personally very excited for it. one thing before we go that i have to ask you. it's funny. i look at you, look at your history. i see all kinds of things. i go look up your brothers and i see things i don't see with you. they're both very active politically in passionate ways. i was wondering when you have one brother that wikipedia talks about being an evangelical, you have another brother that could run for mayor of new york. do they ever fight when you guys are around? are you the guy in the middle? >> i'm certainly not in the

middle, but, you know, no, we tend to -- we treat it as if steven was dropped on his head at birth in the delivery room. we can't quite figure out what went wrong. yeah. you know, steven was very apolitical. i studied political science and i interned on the hill. i worked and served on the boards of many political organization, nonprofit political organizations. i have great interest in politics. steven was never really involved heavily in politics until he had this evangelical calling after 9/11 and then the bush white house started calling on occasion and he sort of got wrapped up and intoxicated by -- and sort of swept away in that type of attention. i don't know, i think my brother and i have to sort of ideologically work him over and bring him back to his senses. he's toned it down quite a bit, actually. i've had many, many political conversations. and by the time the conversation was over, he realized that he agreed with me.

i said, why do you go on fox and barron, whatever they call it, and screw it up? >> do you think alex is going to run for mayor? obviously as a new yorker i ask for that question. a lot of speculation. does he have it in his heart, do you think? >> i think that politically i think he would be -- he already is very valuable and i think he would be very valuable. i'm not quite sure if he should pursue elected office. i think he's the kind of guy, i don't know if he has the ego for this, but i think he's the kind of guy behind the scenes that would make an excellent chief of staff. i worry about someone with his temperament, you know. i endorse him but i'm not making an announcement that he would be running. i would certainly back him. >> billy, thanks so much. appreciate your taking the time. "out front" next, there's no real jewels or gold. on saturday you can buy it at a shoe store.

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three years, you've probably

heard the stereotype, that women love shoes. it might be time to give that idea the boot because this week across the country it has been young men camping out at shoe stores. why? the yizi 2 designed by hip-hop star kanye west. nike's shoe includes the anna con da. reptile inspired heel and a bird design on the tongue. it is available in platinum and black and the sole glows in the dark. it sells for $229. the yeezy 2 is the most anticipated shoe. i think it looks a little more like a moon boot than a sneaker. flashback to all those who grew up in the '70s and the '80s. moon boots are one of those trends like shoulder pads that shouldn't come back. maybe that's what kanye and sneaker fans like.

everybody has their own thing. in case you haven't noticed, d modern shoe fans have different tastes. more and more boys have been requesting shoe cakes. very de25i8d. that's a cake. detailed shoe cakes featuring their favorite brand, size and style of shoe. now based on the photos i saw most people's tastes leans towards nike. edible footwear isn't the craziest thing i saw today. that put a whole lot of disturbing images in my head, edible footwear. a pair of yeezy shoes currently already for sale. for $90,000 on ebay. breaking news, the shoe has just been sold, 84 bids. it went for $90,300