6:00 p.m. eastern. if not, set the dvr, you don't want to miss a moment of "making money." monday morning with stuart varney. the guy who carries the torch from here on out is one of the best in the business. you can't miss him. buckle up, lou dobbs is next. lou: good evening, everybody. perilously close to falling to the radical islamist groups known as the islamic state. baghdad now within their reach. president obama has decided to turn to congress for help. two weeks ago the president ignored congress and choose to exchange five of the most dangerous radical islamists in the world for a soldier or early believed to have deserted. tonight president obama is looking to the same congress he ignored for answers on the rapidly deteriorating situation.

here he is in the rose garden today offering little in the way of answers and changing his tune on including congress and the process. >> we will be monitoring the situation very carefully. our top priority will remain being vigilant. we will consult closely with congress, and we will continue to keep the american people fully informed as we make decisions. lou: you will like to remember the president dennis declared 32 times on the campaign trail on mentioning his administration's success. >> we succeeded in our strategy to end the war. >> i am optimistic about the

rock. i think this can be one of the great achievements. lou: the president told us two days ago that the world is less violent than it has ever been set. the islamic state destroyed the forces in the field and took control of wide swaths of northern iraq in eastern syria. we will take all of this up tonight talking with former u.s. ambassador to iraq james jesse. it will also be talking about sergeant bergdahl. questions will remain. marine colonel bill collin joins us for that and more. health and human services and administration of opening a bus shelter being used to house illegal immigrant children to

congress. congressman and representative your design -- denied the ability to ask questions and take no pictures. our first guest says the united states needs to deploy air strikes to stop the violence from escalating. joining us tonight, former ambassador to iraq under president obama. let me turn immediately to what you see as the likelihood that the isil will try to march on baghdad. >> clearly it has moved forward and announced it will not -- march on baghdad and will march at the holy cities and is trying

to take smart the great fear is not that they can march into baghdad. the army almost certainly would fight and it would be much larger. the tomb is that they can eliminate supply routes, no food, water, electricity, fuel. we face that when i was there in 2004. this is an immediate and urgent to and a military problem. lou: he served in this administration representing the president and the government's. surely he has asked the national security council to put together a range of options that does not include our troops in iraq and

present him with some options. surely that was up a feature of speech and a parade of options and contingency plans waiting for this president given the circumstances. my experience being at times the national security adviser, you would be surprised at how we often can't without pants down. the reason is even sometimes happen much faster than people planned for. there were obviously military plans but they have to be updated with intelligence. president obama indicated that he needed time to get his eyes on the terrain and did his intelligence cleanup. he needs a couple of days to do that, we don't know what that will be. lou: as we are watching oil

markets are being brought into. the ambiguity of the situation is a remarkable because there has been a stunning silence from our allies in europe. a stunning silence from russia. and what standing does this president mel have? is it even remotely possible that nato would be a consideration? what are our choices in that regard? >> the president rested for a key american vital interests of.

the weapons of mass destruction. helping our friends and allies. three of the four are very much under risk. the entire region. our interests are truly engaged. the administration knows this. in terms of going to allies and friends, they only act when we leave. once we have taken the position, bush 41 and other leaders. clinton went into bosnia and we had other countries doing bombing missions and putting troops on the ground. that is what is needed if it is reasonable people will follow. lou: it is tough to discern what is reasonable over the course of time.

the new leader of the is -- isil. he was in our custody just so little over four years ago. how one of world do we, with all of our intelligence and experience and were making these kinds of misjudgments that lead to a leader who is obviously highly effective. >> he was not a leader than at the time. another fellow, a palestinian, had been leading iraq. and you pick up large numbers of such people, in particular if they work iraqis. there was essentially an amnesty program to release these people. sometimes it worked, often it did not. that is going to come back to

haunt us. lou: if the president's has ruled out boots on the ground, that means that there won't be european forces. wherein the world will the fighting force come from if as you suggested we were to go into the air combat against the isil? >> that is a good question. two answers. the president says you cannot have a permanent presence of al qaeda in iraq and syria. it is a huge area. that will take a long time to take down and will require exactly what he talked about which is political reconciliation and help the neighboring countries because this is only a force of a few thousand people. lou: out on the world -- how in

the world, now in a position, these exigent third nonsenses. >> a very good question. i am not all that optimistic. it they have never had a knife to their throats. that is our only hope. the oxnard, california among the places where shelter has been put up to howls the tens of thousands of illegal immigrant children and are now flooding across our southern border with mexico. critics are now calling that a

dog and pony show because they would not allow our elected representatives to even take pictures or to speak with these so-called unaccompanied children apparently of the obama administration does not want a repeat of these sharking leaked images. the first of children were housed in south texas taken by border patrol agents frustrated by the administration's refusal to acknowledge publicly what was happening on our border. the associated press is reporting an assistant chief patrol agent warned 3,000 texas border patrol agents and many now not to speak to the media. this is still on this side of the border the united states. the border official told agents they may try to disguise themselves as they seek to uncover information about this

worsening crisis. we are coming right back. it. ♪ lou: the president calls it a humanitarian crisis on our border, but did because it? killing surprise winner michael goodwin and professor jason johnson will join me next. ♪

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♪ lou: as we reported earlier, sergeant bergdahl is back in the united states being treated in san antonio. army officials briefed the press about his physical and emotional state. >> overall we are pleased with his physical state. he was able to ambulate and walked into hospital.

>> when you see a 2-star general , a little bit nervous. he looked good and saluted and had a good deportment. lou: telling fox news that bergdahl was locked in solitary confinement for two straight years and did not see another human face during his time in captivity in afghanistan. many questions remain such as when was his solitary confinement and why the white house is not addressing allegations he was discharged from the coast guard for psychological reasons before he was allowed to enlist in the u.s. army. why was he also turned down by the french foreign legion when he was 20 years old for unspecified reasons. it. ♪ lou: the number of days that another sergeant has been jailed in mexico, 74 days. seventy-four days without a

mention or the slightest effort to secure his release from that mexican jail by president obama or his administration. one congressman announcing he will challenge the house majority leader. that election is set for next thursday. facing a difficult struggle for the job which is being vacated by eric cantor following a primary election defeat. 143 days before midterms. joining us now, pulitzer prize-winning journalist for the new york post and fox news contributor and political science professor and for the source magazine. good to have you with us. are we witnessing with the election of doctor david brett the ascendancy of the professor of small colleges across the country? >> i wish i don't think so.

it is interesting. it is a testament to where the two parties are. he is not even prepared. he took out frank underwood. lou: i think you have it pretty well styled. the professor did leave out one part. also very interested in that part of the curriculum as well. your thoughts? i love the fact that we have to professors from a small college who are standing up. this is pretty darn close to

mr. smith goes to washington. >> the democrats did not think that they had a shot. that is how the democratic candidate got in there. this is not a hot seat for the democrats. now it is. but i think overall what the cantor election tells us is this anger at washington, we see it in the polls all the time and sometimes forget the voters are filling in those polls. the unhappiness with washington in general and the republican establishment in particular is what caught up to them. a lot of people expect the republicans to do more. these of republican voters who are not happy with president obama, though these happy people in america presumably and they believe that the republican leaders have not done enough to

distinguish themselves and chart a growth agenda. lou: no offense, but i was glad to be a will to say he did not sound like an economics professor. how do you feel about that? >> he sounded like real guy. he's in his charming, engaging, but it is one thing to be a cul-de-sac republican and is something else to have to battle every day with the democrats then be able to articulate a message. i think that will be the real challenge. go into congress and be able to bring things back which i think will be the challenge. i don't know if he is up for the task. lou: let's talk about what is going on. one of the things that we found out right now is that both parties have been about immigration reform, and it is pretty well stopping with this

so-called humanitarian crisis. did president obama orchestrate? >> if he did he got more than he bargained for. i do not think he minds the idea that the system is broken and that it has got to be fixed. whenever he was doing behind the scenes along with his decision not to deport a number of these so-called dreamers certainly seems to have encouraged more people to come. lou: we are talking about moving kids 12 and under 1800 miles through the heart of mexico. >> once it started the message was clear. come on end. i think that is what the people have done. lou: drug cartels or the government of mexico, central american states such as ours salvador, guatemala, you name it who are in league together to

facilitate this. this is astounding. >> this is a 2-prong problem. the person who has been deporting people at a faster rate. lou: if i may, the director of online security had to acknowledge that those were bogus numbers. >> it is one thing to say that the books are cut. numbers have increased. the president has pushed back and deported more people. lou: i -- he actually has not. that is a flat wrong statement. the director of carmen security as technology to my diet you will. it would be nice if that were true. this simply is not. >> relative to the number of illegal immigrants coming into the country, he actually has. there's a bigger issue. just because you sneak on an airplane does not mean you get a

free flight. i notice children, but they need to be sent home. the second thing we need to do and the president has failed on his he needs to get aggressive with the companies in the united states who have been hiring illegal immigrants because it is one o

be unpredictable senate race in mississippi is getting downright peculiar. 6-term senator trailing his tea party challenger. tea party favored by eight points in the latest poll

conducted. billionaires' michael bloomberg and maxtor co-founder so upset. backing cochrane so that he would be the candidate for the republicans. himself raising a few eyebrows with this recent comment. >> it was an adventure to be out there. all kinds of and decent things. [laughter] lou: we don't know why they are laughing, but we wanted you to hear it for yourself so you would not have to question whether or not the story was for real. up next, my commentary on why the isil invasion of iraq brings

back vivid memories of what you see on your screen, burning oil fields across the iraqi desert. we are coming right back. ♪ this is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. so i can reach ally bank 24/7 but there are24/7branches? i'm sorry- i'm just really reluctant to try new things. really? what's wrong with trying new things? you feel that in your muscles? yeah...i do... drink water. it's a long story. well, not having branches lets us give you great rates and service. i'd like that. experience a new way to bank

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lou: coming up in moments, sergeant bergdahl finally returning to america with his mental history being examined carefully. colonel bill collin will help us understand how the military would ever have admitted mr. bergdahl after having been refused service by the u.s. coast guard. crude-oil prices spiking as the unrest in iraq rises. moody's chief economist on the cost to every day americans. a few thoughts on the islamic state of iraq and the push to take baghdad. the pictures of the i -- isil convoys, personnel carriers streaming across the desert and into the cities of iraq with black al qaeda flags flying above those vehicles bringing back memories of 23 years ago.

it defeating the iraqis and choosing not to march on baghdad i remember my crew and by standing in the midst of hundreds of burning oil wells that had been set ablaze by a vanquished saddam hussein thinking that he should take all of that iraq because of my blood lust in the midst of such devastation because black smoke simply choked out the sun. the acid taste of sulfur and carbon and the deafening roar made us all believe saddam had succeeded in ending the world, at least part of it. twelve years later the american and coalition troops would take baghdad, and then we turned it over to the iraqis. and then after the successful

invasion, all of that is gut-wrenching to me to watch the sacrifice of so many of our troops wasted to amount to nothing, and i mean nothing. worse, there seems to be so little understanding among our national leaders that the war against radical islamists does not end with their capture of baghdad court iraq. it will end only with their destruction, and that is the clear lesson of our history with iraq. we are coming right back. ♪ lou: on the verge of collapse. the foundation beginning to take shape. what should president obama do? lieutenant-colonel maxed. ♪

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♪ lou: our quotation of the evening from president george w. bush. i sent american troops to iraq to make its people free, not to make them american. iraqis will write their own history and find their own way. tonight it appears that the iraqis are still writing and still looking for a way forward. our next guest has been 13 times to iraq since the united states forces left in 2011. joining as retired marine lieutenant colonel, fox news military analyst. great to see you. to me this is unimaginable that we are watching al qaeda flying some flying moving toward baghdad. their intention to take the whole city, part of the city, or whatever it may be. twenty-three years ago we had

the choice of how baghdad would look, and we declined to make that choice. your thoughts? >> that is true it. at that time president bush's national security adviser told vichyites to rise up against saddam and we would be there to support. we were not, and i visited some of the killing fields where sadat went out and killed a lot of these people who stood up to support what they thought would be our help coming in. lou: the colonel is referring to the iraqi-iranian war in which we tried to create a conditional alliance. >> indeed. such a tragedy. like you said, have been there many times. hyoscine the divide it in talking to people, talking to friends, watching isil move toward baghdad is a little bit

reminiscent of vietnam. i do not think that there will get there. the population is about 60%. will we are seeing here is 20% is inventing all of their anger and hate, the prime minister has coddled of the iranians have suppressed the sudanese to the degree of he could, but i think this effort is going to run out of steam. they will have territory that they control, at some point the army will stand up. lou: nine have now taken those fields closest and proximity. it looks like -- it looks like the islamic state of iraq, it looks like it has a pretty good

size chunk of territory that it can defend. the forces still control the most productive fields to the self. >> and you know, the kurds have a pretty substantial oil field in kurdistan. they have added to that. the situation stabilizes and they will have problems with the government in baghdad. your bottom-line point, this swath of land, whether it ends up including some of the swath of land that they have taken has not been given up. there will be a major sanctuary from which these bad guys, the worst of the worst, will be it will to launch whatever they want to. it will be much a can to al qaeda in the northeastern part

of afghanistan. lou: no one wants to listen to this president, and this president wants to listen to no one when it comes to iraq, but let's assume that he would listen to you. you are concluding on how to deal with the radical islamists. >> listen. here is one problem. when we left we took all of our super intelligence assets with us. they have not that -- have not had the kind of intelligence that we were using, and we were doing a good job. secondly, we trained a tough, mean special operations forces. i worked with them. these guys were ferocious. they need to be reconstituted, supported. we need to give them the kind of information and support that they can use to go out and did these 800 or 1,000 or whenever

insurgents. lou: good to have you with this. we thank you. a reminder to vote in our poll tonight. do you believe president obama is capable of leading the free world against the challenges of radical islam, russia, and china ? we are coming right back. ♪ lou: it is by any definition a major find. a 123-carat blue diamond. what is it's now you on the global market? one expert joins us next.

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energy is the best performing sector. for the week the dow, as a and b, and nasdaq all losing. crude oil up 38. still posting a yearly high of $107 per barrel. gold virtually unchanged. general motors issuing new recalls affecting nearly 470,000 of its income merrill's. $65,000 cars, basically the new, morales recalled. joining us now with the outlook for vermont, chief economist. people are sitting here now. more uncertainty as a result of what is happening in iraq. very little confidence and what people are witnessing whether it be the economy or the markets. >> that has been the case for some time and explains why we

had that upset in virginia. people have lost confidence. they will probably proceed with a little more caution as far as spending is concerned, especially on big-ticket items like housing. lou: with that kind of constraint and cautioned the markets, i would expect, maybe we will not go appreciably higher. >> for the time being maybe a little higher, but it will be choppy. we have to get a lot of the uncertainty out of the way. with this problem in iraq is all the less likely that at next week's fomc meeting the fed might indicate a hiking will happen sooner as opposed to later. lou: you think this might inspire a higher interest-rate? >> i think the fed will go ahead and not give any hand and what it is bringing forward. lou: this fed would do well, i think, to shut up for a little

while. i think this fed really needs to pull in its horns. >> that would help to discourage excessive risk-taking as far as leveraging of balance sheets. if there is more uncertainty about the direction of monetary policy then perhaps players will be more careful about taking on additional debt. lou: is there any reason for the consumer in this economy right now to feel guilty because he or she is being cautious? not taking unnecessary risks or getting excited about going into debt? >> i think it is wise at this point in time to proceed with caution, be careful of taking on additional debt. the labor market is still relatively slack. in some cases you really don't know about the durability of prices, such as housing.

one of the reasons why housing has slowed down is because we are beginning to get a sense that home prices might be a little too high. lou: i just asked our producers, $201,000. $5,000 less than it was in 2008. will that change? >> i hope not. hopefully we have all prices steady. we still don't want to lose sight of the fact that home affordability has dropped sharply, in large part because home prices have been edging higher, growing more rapidly and in comes which you do not want to be the case. lou: thank you for being with us. >> my pleasure. lou: be sure to listen to my financial reports. the day's biggest market news. up next, a rare 123-carat

discovered in south africa. we will be showing you what it may be worth and some in-studio examples of some other diamonds. if you don't want to spend quite that much you can step down to these trinkets. we're coming right back. ♪ you do your shop from anywhere thing, and we'll be here at lifelock doing our thing: offering protection that simple credit score monitoring can't. get lifelock protection and live life free.

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♪ lou: a word of the evening, allotrope, a chemistry term that describes one of two warm more existing forms of an element. stay with me. there is a pay off. for example, a diamond is an allotrope of carbon. i hope you were paying attention because we are going to have a use for that knowledge.

we have a big allotrope. here to talk with you about a rare nearly 1203-carat blue diamond has been discovered in south africa which could go for up words, we're told, of tens of millions of dollars. to tell us exactly how much is diamond expert. good to have you with us. >> thank you for having me. lou: this diamond, how much is that some of the gown worth? >> it is truly an amazing moment in history. this is next to impossible to find. the value will ultimately be determined by the collar. already considerably rare. i mean, that is what will determine. and, of course the yield. lou: and i am thinking, do you split it up, leave it where it

is, what do you do? >> a diamond cutter certainly has his or her work cut out for him. it will be about maintaining the vivid color and then, of course, the larger the diamond the more value it will hold. these moments are important because they provide a halo effect over the entire industry. lou: garnering a lot of attention. kind enough to bring along gigantic stones right here before us. give us an idea of how healthy this market is. investment in the retail. >> truly an exciting time for the diamond industry. innovation is one. having pulled thousands of americans about this, diamond

acquisition is really changing. they're is a strong demand for diamond brands. lou: let's take a look. let me take a look at something modest your. this little thing looks like something my wife might like. how much would that be? >> that is probably about a million dollars. lou: my goodness. >> the color and clarity are so fantastic. lou: i cannot tell you how much i regret -- >> wonderful styles of represent the different trends that we are seeing. of course round brilliant being the most popular. we are seeing a fancy shapes, emerald cuts as one of the fancy ones that we are sharing. americans are embracing personalized ways. lou: finding a stone or everyone

. that is an incredible -- each one of these is beautiful. i have to tell you personally i find the smaller ones so much more attractive. >> the average

. lou: last night we asked if americans should back a leader who will ultimately align himself with a run. ultimately we know house of this administration is. it will likely happen. i no -- a no-1 situation. a religious war. and richard in tennessee e-mail does his definition of the obama doctrine. if you don't want to do something, wait until it is too late to do anything. if you know that you will not get permission don't ask for it. keep your comments coming.

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. neil: this is what happens when you draw a line in the sand, you don't deliver, bad guys kick sand right back in your face. welcome, everybody, i'm neil cavuto. ever since president obama threatened syria over chemical weapons and did nothing, it has been down hill since. i think the whole implosion in iraq, this whole explosion in oil prices goes back to the moment that evil called the president's bluff. i really do. ever since the president failed to act on what he said, nuts the world over were very happy to do whatever the hell they want. it would have been better had he said nothing