coming up tomorrow as we continue our special investigation of high frequency trading, i will be joined by the former chairman and ceo of the new york stock exchange, dick grasso. we will have some tough questions. that's it for "the willis report." thank you for joining us and have a great night and we will see you back here tomorrow. lou: good evening, everybody. i am lou dobbs. tonight, the obama administration has finally admitted that the united states wasn't he the victim of a terrorist attack last tuesday on the anniversary of september 11. the middle east is still raging with anti-american anger and more violence. you are looking at pictures from angry mobs today trying to storm the u.s. embassy for a second straight day.

pakistani police using shipping containers to block off a road to the embassy, firing tear gas in some cases come those protesters themselves were met by throwing rocks. the protesters burned the police checkpoint to the ground. fifteen police were reportedly hospitalized. the u.s. consulate the target of muslim rage. hundreds of students and teachers gathered and carried signs depicting president obama as a dog. they burned president obama in effigy. the unrest continues throughout the region in afghanistan hundreds chanted death to america and long live as long. a similar scene in iran. hundreds of students and people

were chanting death to france and down with the u.s. israeli flags outside the french embassy. in iraq, the prime minister speaking out today. he condemned the anti-islam web video and he urged sunnis and shia's to unite. these protests led to the murder of ambassador stevens. this commando style attack is directly tied to al qaeda and they say a former guantánamo bay detainee may be the driving force behind the terrorist attack. jay carney today made an omission. he said, i think, self-evident that what happened in benghazi was a terror attack.

an admission from the administration. this administration the victim of a terrorist attack on the 11th anniversary of september 11 attacks and the obama campaign spokesman, ben labolt suggested there are no plans for the president to update the nation on the investigation of that attack and those murders and the rage throughout the muslim world. president obama today commenting on the anti-islam youtube video. >> what we have seen over the past week and a half is something that we have seen in the past.

where there is an offensive video or cartoon directed at the prophet muhammad, and this is obviously something that is used as an excuse by some to carry out inexcusable violent acts. lou: we will take up all of this here tonight. also, former new york stock exchange chairman and ceo of the exchange, dick grasso joins us and trey gowdy joins us to assess the report just delivered by the justice department inspector general. joining me now is fox news middle east and terrorism analyst. he serves as a foreign-policy senior adviser to governor romney. it's great to have you with us. let's start with the president's acknowledgment out of his press spokesmen that this is a self-evident terrorist attack, but one that the administration refuses to acknowledge for more than a week.

polly >> it was a terror act in the eyes of many. there are many operations that came before that, but there is chatting in the chapati communities about it. the most important thing is the production, that al qaeda would issue a video. and if that happened, that it would be very serious to deny that it is a terrorist operation. lou: but not because of the american people to speak truth to the very constituents of the commander-in-chief? >> look, there is a political situation. i guess that an expression has been claimed especially on 9/11

events. that al qaeda was hit hard, that the killing of bin laden, al qaeda is going down. from the same 48 hours ago, al qaeda would attack the united states and kill an ambassador -- it would have been against the statement of administration. took some time for the administration to admit that this was a case. lou: one can give all sorts of rationalizations. but the fact is that another terrorist attack occurred on this president's watch, and there needs to be -- there seems to me to be a requirement, a minimal requirement to the american people and the duties of the office that he holds to explain to the american people precisely what happened to stop the nonsense to speak straightforward. as jay carney said it is self-evident that it is not evident for many of the statements, but rather we have

had these statements from the administration. >> we are much better now than we were four years ago in the war against al qaeda. in egypt, libya, tunisia, and all over to pakistan from afghanistan, and what worries me here is that reality on the ground is way different from the explanation given. lou: let's turn to the reaction now on the part of this administration. focusing again on that silly, amateurish cartoonists movie --

excuse me, cartoonish movie, this is the way the united states state department has responded in the region. if we could rule the state department commercial out come up with secretary clinton and the president of the united states reed since our founding, the united states has been a nation that respects all faiths. we reject all efforts to denigrate the religious beliefs of others. but there is absolutely no justification for this type of senseless violence. none whatsoever. >> let me say very clearly, and i hope that it is obvious, that the united states government has absolutely nothing to do with this video. we absolutely reject its content and message. lou: the president of the united states repertory of state. your reaction to that?

it leaves me almost speechless to see that. >> i think this was a very badly advised move. in the middle east come you have those jihadist and those who are against the united states regardless of the movie or video. they have been doing so on guantánamo, on previous issues and now they are using us. it is very clear. it's not going to change their mind if the video was aired in pakistan. on the other hand, people who have fought for the arab spring are asking themselves what is going on in washington. why is washington now time to respond to what the jihadist are saying instead of being firm and coming to our rescue in and being our allies. this is counterproductive. lou: doctor, thank you for being

here. we will continue our examination tonight of what is happening in the muslim world in this administration. a violent anti-american demonstrations across the muslim world. a series of cyberattacks has been launched against our financial system, in particular, our largest banks. dick grasso, former chairman of the new york stock exchange is here to talk cybersecurity and the sec. the scathing report on "fast and furious" is in. the white house refuses to cooperate with the investigation. the attorney general refuses to comply with congressional subpoenas. how can the inspector general say that eric holder didn't know what was happening? congressman trey gowdy, one of the lead investigators, joins us next hmm, it says here that cheerios helps lower cholesterol

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lou: in tonight's tech connect, amazon's kindle fire tablets -- wal-mart, the biggest retailer says it will no longer sell the amazon devices in its stores. talking that decision up to merchandising strategy. the move comes four months after target also decided to remove the amazon kindle from its stores. amazon is not commenting.

shares are down one third of a percent, still looking pretty strong despite the decision by wal-mart. it's merchandising decision. a split decision on wall street today, the dow moving higher, up 19 points to the close. the s&p down one, the nasdaq down seven. jobless claims down slightly, the numbers basically staying fairly stable and disappointing. those numbers still higher than economists wanted or expected. railroads plunging, companies warning third-quarter earnings will miss targets. it is shipping fewer goods because of this slow economy. bank of america's bidding up its plan,/and 16,000 jobs by the end of this year. bank of america shares down 1%. oracle shares up after hours. a bright spot in the market today. shares of the realists for real

estate -- entering a third day, sources telling fox business the jpmorgan chase though experiencing those attacks, by a cyberattack yesterday, islamic terror crediting bank of america and the new york stock exchange websites. joining us now is the former chairman and ceo of the new york exchange. dick grasso, thanks for having you here. let's talk about the sophistication of the financial industry in terms of technology. it is pretty close to unmatched in american business. these are very serious attacks that are being carried out. >> technology on wall street and in the florida financial community is perhaps a sophisticated as an asset for any of our deepest and government operations. the difficulty, i think, is that some of the cyberassassins may well have learned the coding

from various entry points into our financial system, realizing today that we have so many online trading venues that can be besides people who want to learn code and access, and it is a very serious problem. a serious problem so serious that there are high-level meetings taking place within the banking industry. these attacks have been carried out against the pentagon and there have been an estimated million of them a day. usually the reports go to the mainland of china. as the source for those attacks. but we have reached a point where as theaying goes, failure is not an option for this business system. fragile and protected it appears right now insufficiently. here's a perfect example of where a public and private

partnership can be meaningful. the government and some of its best people in dod and enormous technological capabilities, together with the people in the financial world have to build firewalls that are imperative to the u.s. government and the most advanced minds, if they don't work together, we could be in deep trouble. we might be in a deeper kind of trouble because we don't seem to be finding ourselves capable of extricating ourselves from the impact of high frequency trading. this is, as you know, a number of people have said we have to rein in high frequency trading. some suggest -- well, let's do this. let's take a look at the trading this week on the new york stock exchange. if we can have that graphic, please. on monday, the trading was 3.33 billion, 3.41 yesterday and

today and i know when you look at those numbers, you have to feel some nausea, i would expect, because of this level of trading. what percentage? the estimates range as high as three fourths of it? >> high frequency trading. what in the world without be without high frequency trading in the market. it's really an issue of public policy that the cftc and the markets have got to address. i am not one that says that you have to exclude any particular type of trading strategy. you have to be able to regulate it and regulate it with one very simple test. were we doing today in the market, to small investors in the market, if it has come you have to find a way to neutralize the level playing field. >> maybe we should have blown this thing up a long time ago.

it has simply been the exodus of the retail investor. there was a time when dick grasso could stand up and said reports of the country was invested in this marketplace. right now, you can't even begin to say the same thing. bs dc you can talk about regulators and you can talk about the sec, all of the various agencies, where in the world are the businesspeople where are they saying that we need to fix the mess we that we have allowed. >> you put your finger on it. it has to be a business driven motivation. and why would they want to do that, 75% of the trading because the other 25% won't be there if it keeps up in a manner that is detrimental to the public. >> and if they are going to build a business and restore confidence. it is one of the things that people don't pay a lot of attention to.

the prices in this marketplace and this country, part of those prices were premiums. premiums of the most secure and advanced markets of the world. it can't be said today, and that's a shame. >> i would not go that far. >> until we stripped three fourths of the volume against people who run the exchanges, we're going to have a problem. >> i don't want to do that. what i want them to do is to sit there with the markets and the major forms and say, listen, some of what those do is positive for the market. lou: you and i know each other for 30 years. you know that i'm a country where but i do boy but i do understand markets. fact of the matter is about liquidity provided can be provided in a number of other ways, in the way that it is occurring now, it is to the interest of the country in the marketplace and the economy, and what we're about. >> that is right. your point is exactly why there

has to be a step back and they reregulation. the sec and cftc, about seven years ago, regulated the national market system. it is a disaster and a failure. they have to start over and look the american public in the eye and say that we are going to carry the water for you. we are going to get it right and we're going to do it with a very simple test. if it's right, everyone wins. lou: dick grasso, thank you for coming to be with us. you are speaking from experience. dick grasso. coming up, at long last, we have the inspector general's report on "operation fast and furious." are we any closer to the truth? one of the leading investigators on capitol hill, congressman trey gowdy is with us. who is behind the so-called occupy movement?

that is one of dick grasso's favorites. we will be talking about the directors of an important new documentary called occupy unmasked

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lou: coming up, "occupy unmasked." i will be talking about this with the men who produced it. and our embassy is still under siege tonight. more demonstrations and protests are expected tonight for the 18 will be here to assess what is happening throughout much of the

muslim world after a year and a half from a review of 100,000 documents, 130 interviews, the justice department inspector general today testified about a shopping finding concerning the gunrunning scandal. michael horwitz telling the house oversight committee that it was an operation driven by bad judgment, strategic mistakes, management failures, 14 digital officials are named in the report. calling for possible disciplinary action, including lanny brewer. the justice department official tells fox news attorney general holder admonished brewer and no further discipline is expected. meanwhile, the white house continues to effectively stonewall a number of issues. a white house national security staff member, a request for an interview was refused and the white house refused to produce any internal documents for his investigation because the white house said it is beyond the view

of the inspector general. joining us now is one of the leaders of the congressional investigation into "fast and furious", congressman trey gowdy. a member of the house oversight and judiciary committee. congressman, thank you for being here. secondly, this report, i'm going to say, at the very outset, a year and a half in the making. was it worth the wait? >> probably not from this the standpoint. i don't offer that as an indictment on mr. borowitz. i think that mr. borowitz did as good a job in secret. twenty months ago when i came on your show, i could tell you that the earth was round, the surface of the sun is hot, cindy crawford is attractive and the u.s. attorney's office messed up. i could've told you all about 20 months ago. what i think we know now, that some of us knew back then, but the validation comes from this independent body that is not

shackled by politics, but we had an independent, neutral coup by the way is friends with eric holder and lanny brewer. >> i would say to you -- i would give you my opinion. to me, this document is more a defense document. it is more a public relations document and it is a strong report on a vigorous investigation. "operation wide receiver" on "operation fast and furious." wide receiver and "operation

fast and furious" and for the life of me, i cannot imagine why >> they made an effort to interject a weapon. i get the sense that he started with wide receiver to try to build credibility with the democrats on the committee who were constantly clamoring to go back to the bush administration for every issue that ails this country. if you want to talk about wide receiver, we will talk about it. but that does not mitigate or excuse "fast and furious." if we can bring up this full screen quotation from the report. we can conclude, that it is

every fourth, 2011 response letter contained an accuracy, particularly, the assertion that the atf makes every effort to interdict weapons that have been purchased illegally and prevent their transportation to mexico. my lord, inaccuracies. >> we all knew that before the inspector general concluded that. in the court of public opinion, we get blamed so much is that this is a political witchhunt, here are some, we asked the attorney general repeatedly.

and he said i haven't bothered to read the applications and many said yes. i'm sure there's not. he was wrong. >> are talking about lanny brewer? >> he asked her holder repeatedly. i think that lanny brewer should have been gone months and months ago. lou: i want to go to a couple more things really quickly. using up a lot of time here. we further found that given the deputy assistant attorney general, in march and april, then locking issues, "operation wide receiver" coupled with the information that he learned about "operation fast and furious." it should have caused him to read the affidavit and the inspector general just threw weinstein under the bus, let's brewer alone and the other folks.

even the inspector general concluded that they live in february of last year and they lied again in may and they didn't correct the record locally until months later. >> well, we asked repeatedly about lanny brewer today. lanny brewer forwarded that every fourth letter that you dispute reference to in his personal private account. and he responded, good job. when the inspector general asked did you read the letter, he said, i don't recall that i did. the inspector general is not you and i do not have to take him at his word.

the attorney general should get rid of him. lou: congressman gowdy, u.n. chairman isaiah, all of the members of the house oversight committee, all of you have worked hard and you have performed a great service. it is extraordinarily disappointing to see that we as a nation do not have a government with which to seek out and determine the truth or we do not have the public servants and the executive branch of the united states who feel a compelling responsibility to perform that service for the american people. we thank you very much. congressman trey gowdy. >> thank you, lou. lou: who is running this occupy wall street movement?

the producers of the dramatic new documentary "occupy unmasked." they join us here next. president obama and another broken promise. a shocking new report. identifying millions of middle-class americans who will see their taxes raised. in order to support obamacare. and the obama campaign expects you to pledge allegiance to president obama. not the flag, no, no, no, this lie. what has the commander in chief become? we take up that issue with the "a-team" in moments 4g lte has the fastest speeds.

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lou: my next guest in the new documentary "occupy unmasked." it reveals quite a different story. a sinister and orchestrated nature of the movement's leadership and their number one goal. not just a change but to destroy it. >> the goals of occupy wall street. young, spontaneous, and it's going to be effective. >> i'm so impressed by what i'm seeing here. >> protesters are giving voice to a more broad-based frustration. about how our financial system works. unlike the tea party which is a manufactured reverend. lou: joining us now is the writer and director of the documentary being released tomorrow.

anarchist in the case of the occupy wall street movement. to jodie evans, a witches brew of groups. this is not college kids and hippies. this is very serious players. but are looking to destroy the american government and the american capitalist system and they are very upfront about their goals and objectives. in combination with a very dark

sinister group. lou: david, president obama, nancy pelosi, you know, some of the material is out there about who these folks are. why in the world is there not more mainstream attention to the witches brew? >> is a great question. the mainstream media wanted to quit the occupy movement is a left-leaning version of the tea party. they had to wait. the tea party has nothing to do with these folks. when the tea party got together, they thought they would leave things more beautiful than what they found him.

look at how they changed the conversation. lou: what in the world is he doing distributing your movies? >> you know, i have not spoken to mark. we are so glad that he is. i think he believes in the message, personal, i think that he likes lots of different viewpoints. putting words in his mouth about what his politics are, i don't know. [talking over each other] [talking over each other] >> it is not like class warfare. lou: i love that. if user capitalist i didn't know. >> he was watching lou dobbs.

[laughter] lou: it is great to have you here. we thank you very much. up next, does one president obama equal 50 states? we will tell you about the pledge. it's not a pledge to the united states of america. there is a fight involving this but it's not our fight. coming up tomorrow, we will talk with the author of "the new york times" bestseller, ed klein joins us. cbo director douglas holtz eakin. and one of the last man to speak with ambassador stevens in benghazi before he was killed by terrorists. we're coming right back. so... [ gasps ]

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lou: president obama raising taxes on the middle class. after all, middle-class americans will see taxes rise because of obamacare. the cbo now estimating 6 million americans, most of them in the

middle-class, will be hit with a tax averaging about $1200 that they do not have health care insurance beginning in 2014. earlier, cbo report had projected 4 million people would have to pay the penalty. the tax kicks in when obamacare is implemented. exempt from any penalties, they fall below the penalty line, native americans or illegal immigrants, leaving 6 million mostly middle-class americans to pay the taxes. $1200, by the way, on average, and for a person making about 50 to 55,000, that works out to about one weeks paycheck for the privilege of being fined by obamacare. critics have blasted the president in the latest artwork of this campaign. it doesn't help alter that

suggestion. the official barack obama store now selling copies of this. this flag. it is to replace the 50 states with the president's campaign logo. not only that, the campaign is encouraging supporters, including hollywood to get involved. isn't that sweet? they're taking their pictures with their hands over their heart as a way of support. not to the united states of america, but the president barack obama. i assure you that i offered it up earlier, you'll just have to take my word for that. up next, as violent anti-american protests persist across the muslim world, could this be a bigger threat to the president's reelection than a stagnant economy, 23 million unemployed americans? the "a-team" will be here to deal with those questions and much more. monica crowley, robert zimmerman, and christie.

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lou: joining me now is the "a-team." monica crowley, robert zimmerman, and former schumer adviser, chris hahn. good to have you all here. as far as obama, an exodus on the part of his staff.

>> i have learned some lessons over the last four years. the most important lesson i've learned is that you can change washington from the inside. you can only change it from the outside. lou: there you are. what the president to do? >> you have to motivate people and get them motivated to change washington. >> you have to help them to do what they can. >> i think that they can. >> there's a lot of drama with that spin. let's be serious about this. i'm glad that the president finally acknowledges that it does come from the grassroots of the community and you have to be actively engaged. that is a challenge in the first term. that is the way you only get through this. >> there is just such a devastating moment for obama. tonight he is probably kicking himself for two reasons. change was his reason for being

in his campaign in 2008. the second thing, is that you can't change washington, with huge majorities during your first two years, maybe the problem is that washington is broken, they can't get the job done, the president during the flight to surrender again. he said that he can't change washington from the inside. he can only change from the outside. well, we're going to give them that chance in november. >> it is factually incorrect.

[laughter] [talking over each other] things have improved over president obama for 2010 until 2011, the number is actually 46%. as a matter of fact, you and i both know. >> when he made that statement, i want to understand if that is okay. democrats are freaking out.

>> dbase salute those things? >> i agree with the florida democratic committee. which asks the question come have you guys taken pledges to president obama? [talking over each other] [talking over each other] >> no, no, they are pledging to obama. >> this is true. [talking over each other] lou: pledging to obama. >> the republicans had ted

nugent and jessica alba. you can only think of one republican? >> that is the only place i will make. >> already up to two pledges. >> never a problem for you to do that. >> this indicates that obama ran on leverage in 2008. >> oh, please. >> you are right about that. romney means something. lou: good to have you guys. up next, one of our viewers takes the realistic approach to the now unpopular anti-islam youtube video. we will have that for you next americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first.

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lou: friend e-mailed to say it is beyond me how anyone with an iq over 75 could make a stupid movie and take it seriously. i feel exactly the same way. how our country can blame the murder of our ambassador is unthinkable. the a-team is great. we love hearing that, and we will pass that along. we love