maria: welcome back. broad-based rally on wall street, the dow industrials up 250 points, very much across the board. thanks for being with me on "opening bell." time for "varney & company," ashley webster in for stuart today. ashley: a whole new clinton scandal erupting this morning, really big money and the appearance of influence peddling. say what? good morning, everybody. the clintons made a cool $136 million after leaving the white house. hardly dead broke or mr. and mrs. everyday america. let's be honest, the democrats have a hillary problem. terror update, six arrests in america. suspects trying to help isis, a sophisticated bombing byal-shabaab in somalia u.n. workers the target there. more beheadings of christians, but the white house still won't label the killers. and europe confronting a wave of desperate migrants trying to

flee the chaos of muslim north america. meanwhile, stocks up. china says it's going to stimulate with lots of cash. you know investors like that. and furious 7, more than a billion dollars made worldwide. $250 million from china. "varney & company" is about to begin. ♪ ♪ ashley: well, check out the big board and thank china that's stimulating its economy by, well, what else? printing more money. what a great idea. certainly boosting stocks here, the dow up 2k5 9 points -- 259 points, pretty much erasing the losses from friday. meanwhile, hasbro is a winner. it makes its money these days not from toys so much as licensing movie characters. it has frozennen, that's a winner right there, but it also will have the star wars characters from the upcoming movie series. need we say more?

oil, meantime, has been moving higher. you know what that means it's up $1.15 at 56.89 that means gas prices going up overnight to $2.45. well, to your daily terror update. six arrested in minnesota and california in connection to an investigation into young men who have traveled or tried to travel to syria to fight alongside isis. terrorist group al-shabaab claiming responsibility now for the bomb attack on a united nations bus in somalia that killed at least six people. the sophisticated bomb set off by remote control. this bombing was al-shabaab's third deadly attack in the span of just three days. and isis killing more christians. a new video released purportedly shows terrorists affiliated with isis shooting and we heading east -- beheading ethiopian christians in libya let's get back to the new book "clinton cash." not even out until next month, but some republicans are already

calling this big news that could complicate hillary's run for the white house. liz macdonald's here now with the highlights of this book. why are the republicans jumping all over this? >> because peter schweitzer has done ground breaking work that almost changed legislation. for example, political intelligence on capitol hill where hedge funds and wall street shops for gaining political intelligence to front-run trades. also there was a crackdown on congressmen in their a own accounts and their own financial affairs, whether or not they were benefiting from political intelligence. so he is he's detailed he's thorough, he is at the hoover institution. they are saying he's a right-wing individual but he is extremely detailed in his research. ash ash the basic claim in this book is that foreign entities are pouring money into the clintons' foundation and in return they're getting favors, and they have some examples. a free trade agreement in colombia that benefited a major donor and so on.

and he has very, as you say, very exact records, tax documents government documents. the hillary campaign is very adept, if you like, of squashing these saying these are just conservative hits on hillary, but this seems a little more detailed. >> yeah. there's distortions and the campaign is already coming out with statements to that effect. not only did he have people quake anything their loafers on wall street and lobbyists, but now diplomats around the world are going to take a second look at this book because the book also comes out, by the way, at the launch of the clinton global initiative. ashley: that's right, may 5th. >> so the timing, of course is impeccable. so it's a colombia trade deal natural resources investments in the south america nation the haitian earthquake developments and the keystonepipeline deals -- pipeline deals with canada canadian bank. so it will be campaign fodder, ashley. do you want your secretary of state or future president indebted to any foreign nation

many of them nondemocratic who were donating to the clinton foundation? ashley: also of course, we have hillary's famous quote that when we got out of the white house we were broke. >> yeah. $136 million between the two of them with campaign speeches and the like, so that, again, that's another talking point where the clinton storyline would be refuted. and by the way, according to the to book president bill clinton -- it was only two years where he did not earn half a million dollars and that's when hillary clinton was not secretary of state. he usually pulls in half a million -- ashley: so when she was secretary of state, that's when he was getting these hefty fees which plays into the influence argument. >> that's right. ashley: fascinating stuff. >> those are the headlines for you. ashley: all right. it's going to be interesting thank you very much. let's stay on the clintons and bring in former reagan mick adviser art laffer in music city, nashville. art you voted for bill clinton did you not? >> i sure did and pleased i

did, but don't ever confuse that with me thinking he's a fine, upstanding person. [laughter] i think his behavior was disgusting, but he was a great president, and he really was a great president. and my view had always been ashley, that if he hadn't been president, he still would have been a disgusting individual, but we would have lost all the billion fits of him as a great president. and, you know, all of his behavior is this way, but he was a great president goodness gracious he did a great job. ashley: he was a great politician there was no doubt about it. >> he really was. i'd vote for him again, now i'm not sure hillary -- ashley: what about his wife, hillary? would you vote for him? >> i thought elizabeth macdonald did a great job summarizing the book and all that. you know, you have to wait and see. i'm going to wait and see how she runs and how it happens and, you know, that's true -- ashley: she's not a great politician, art, is she? she always gives the appearance of being very uncomfortable no matter if she's in an iowa cornfield or somewhere in d.c., i always feel it's a

cringe-worthy moment. >> oh, well, you know, some people are more adept than others. bill clinton really is a hale fellow, well met he's everyone's best friend. i had a guy like that in high school that was a cut-up, but everyone loves him. and bill clinton reminds me of that guy very, very much. ashley: what about this book quickly, art? you know, yes, the hillary campaign will probably say this is just another hit job by conservatives but there is some pretty i mean, there's some -- from all accounts and the new york times mentioned this, you know the sources are impeccable, the tax documents, the government documents are real. this might be harder to brush aside. >> well it may be. but, you know if you go back in time to before bill clinton became president, we had white water, we had the trading and i forget what it was, the trading in the pork bellies or something like that with whatever firm it was and all of these unusual events happening and they never stopped it. jerry brown was really very very adamant in pointing all of

this out in the democratic primary, and still clinton got nominated, he got elected, and he did a good job as president. ashley: but that's bill, not hillary. >> that's true. and these things are unseemly. i don't know why they did this. they've got their legacy as being president first lady, secretary of state all of this is their legacy. ashley: yeah. >> why they would want to mess around with this other stuff is beyond me, but they do. they just can't help themselves. i'm really glad the book is out and, you know, i'm going to read it with avid focus. ashley: you and many others. >> what do you think ashley? do you think it's going to kill 'em? ashley: you know, the clintons have a way of avoiding these things, but i think this is a pointed book with pointed records that are going to be hard to dismiss. i it will certainly cast a cloud of how reputable hillary is. bill well we know bill, but hillary -- >> will it lead any way to any type of judicial response, any

prosecutorial response? if that happened, that would change the game totally. if this is just a revelation that no one focuses on, that's one thing. but if it leads to prosecution and indictment for anything, you know then you have got a real story. ashley: that's right. we shall see. time will tell. it's going to be released may 5th. stay right there, art, more in a second. i want to take a look at target the stock today after, well people piling into the stores and online as you can see up nearly 1% at 80.64 pretty heavy volume on that stock today. they launched their lily pulitzer line of clothing yesterday. target.com crashed, although target says that's not true stores were sold out within minutes. a lot of folks very upset at target saying they hardly stocked any of the items. elizabeth macdonald i'm told that this is -- can well lily pulitzer dress runs about $200, but target was selling them for $40. >> yeah, that's right. on ebay they could sell for

$900 because thousands of those items are showing up on ebay. this is an unusual black friday-like experience where you had people lining up to get to the debut at target. ashley: look at that. >> stock nearing a record high. also oxford industries, which owns lily pulitzer, is near or at 52-week highs. so it's really interesting, you know target though also unfortunately annoyed its shoppers not only because the web site repeatedly crashed when people were going on at midnight in the wee dawn hours of sunday morning, but also the tweets that they were putting out, we are trying to work through our web site experience -- ashley: yeah, apparently they were restricting on purpose access to some of this stuff and also this is out of their playbook, isn't it? their strategy. they hype something and then put little of the product out to stoke demand. >> it reportedly happened with the smithsonian line a few years ago as well. ashley: a that. the stock is up today.

liz, thank you. let's get back to art laffer in nashville. program ma -- president obama touting the economic recovery last week. i want your assessment, art. how well is the economy really doing? >> it's really doing very poorly, ashley. i mean, extremely poorly. you know, when bill clinton left office, employment as a share of population was about 64.5%. today it's about 59.3%. if you put that in actual number of jobs lost or underperformance it's 13 million people each and every year have not found employment since the great recession began, and it's not getting better. it's just, if you look at gdp it's not getting better. now admittedly -- ashley: who's to blame, art? >> but the employment's not getting better. ashley: why is that? who's the culprit here? what can be done? >> i don't think it's a culprit it's the real problem is bad economic policies. we need a broad-based low rate palace tax we -- flat tax we

need spending restraints. stop all this stimulus stuff already. low interest rates means no one's willing to lend money to home buyers. they think the low interest rates stimulates housing but it doesn't. all it does is restrict mortgages. no one would lend money at 3.5% for 30 years. it's crazy. ashley: what can you do for thebacks, art? >> you -- the banks art? >> you let banks solve the problem. neither pushing interest rates up or down let the markets clear. and at that point you'll have the most number of mortgages available and the most number of people who want those mortgages. we can't have a recovery, ashley, without a housing recovery, and it's not happening. the number of new housing starts for 10,000 population is right at the very bottom and has been sitting there for eight years. ashley: yeah. getting more housing numbers later this week. as always, art great stuff. thanks for joining us. >> thank you very much. ashley: all right. check out the navy's latest

weapon withs system. they're calling it locust. it looks like a missile launcher but it fires off a bunch of small drones. it's like a video game. we'll show you how that works next. ♪ ♪ [ male announcer ] we know they're out there. you can't always see them. but it's our job to find them. the answers. the solutions. the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner brighter future. at boeing, that's what building something better is all about. ♪ ♪

♪ ♪ ashley: all right. check the big board, seems like everyone is printing money these days, but investors well, of course, they like it here. stocks up nicely after friday's news that china's going to be helping its banks giving them more -- less capital in the hopes they will spread that money into the chinese economy. markets moving higher. now hundreds of migrants in north africa are feared dead after a smuggler's boat capsized in the mediterranean, only 28 people have been rescued so far. elizabeth macdonald has the

story, i'm told the smugglers locked most of the people in a cargo hold. >> yes. 300 passengers reportedly locked in a hold, they were being smuggled. hundreds more, a reported 950 people on the boat, and what happens was the people who were on the boat were so excited to see a possible boat coming to rescue them that they apparently rushed to one side and tipped the boat over. so the prime minister of italy is saying how can it be almost daily we are seeing these drownings, this comes after christians from nigeria were thrown off a boat because they refused to read muslim prayers. so the mediterranean is becoming one of those lethal sea cross more than 3400 people have drowned last year and it's because of powell -- ashley: well, the europeans being criticized quite severely because they scaled back their search and rescue operations, isn't that right? >> that's right. e.u. patrol boats only go 30 miles off the shore of italy, but that leaves hundreds more stranded in the mediterranean at risk of drowning.

countries like australia have said do not come via boat, they have basically shut it down. so the e.u. has no coordinated policy to deal with this. ashley: they're having a summit today. they love their summits in the e.u., but whether something gets dope, what do you think? >> that's right. 28 nations there, they have to coordinate. ashley: that's the problem right there. thank you so much. all right, the u.s. navy showing off a new drone system designed to protect its ships. it's called locust. it fires off a swarm of small drones that autonomously communicate with each other to launch attacks against enemy targets. kurt, the cyber guy knudsen is here. how exactly do these things work? it looks like a video game. >> it does. good to see you. it's all about the latest technology coming out with the navy. they have been in research with this and just have been starting to test this video that has come out about a little over a week ago really proves that we're on the cusp of a technology that is a game changer, especially when it comes to conflict in the

middle east. ashley: and where would this strategy be used? where is it most effective? >> all right. it was originally designed to protect big ships that the navy has but the truth is it has done so well 30 of these drones autonomously work together. they communicate with one another. the video's compelling that shows this demonstration that the navy's released. they go out on this mock village, and some of the drones are responsible for surveillance. the other ones do an attack and i'm talking about isis looking up and going, what just happened? it's literally in seconds that they can do it. they've got a range of about 20 miles, they speed at about 85 miles an hour. that device that fires them off is going to fire off 30 of them at any -- ashley: are they being controlled vimly by anyone? individually by anyone? somewhere it has a systems person who's onboard a system because these can be launched from the ground or also onboard a ship or even inside of a vehicle. so it's one of these brilliant things where those two wings pop

out when this thing goes into the sky. it's tooling around gets its mission done, and before the enemy knows what's happened, it is -- ashley: it's over. >> it's back home, or it's so low cost and it's designed not just to save lives but to reduce the cost of asset loss this the field -- ashley: right. >> -- that these things are expose bl. ashley: i'm saying they've got to be expensive, but apparently not. >> i don't have a price tag on them but they were designed with the intention of making them expendable and that they would just be lost in the field or destroyed there. ashley: is the united states the first to have this technology? is. >> as far as we know, it is. and in 2016 i think we're going to see this come to prime time, and then i think it'll be interesting because then we'll have this very big proof of performance parade that's happening with the military saying look what we've done. ashley: yeah. >> that's wonderful. and then where does it go from there? and the question i think we'll be asking maybe next year is, is

this going to fly in my neighborhood anytime soon? thirty drones zipping around my head, and wham mow? but their accuracy has been proven in terms of a strike. they're able to say, okay, the enemy is in the fourth bedroom at this particular latitude and longitude and just do the damage in that one bedroom of the structure and get out. ashley: this is another example of taking humans out of the equation, pulling back and letting these automatic drones take over. >> exactly. it's about -- ashley: so are we going to see more of this type of weapon? >> a lot more of it because of its cost. locust is an acronym for low cost uav swarming technology. so you keep the low cost in there, you can keep the taxpayers happy. you can do the swarming and make good combat decisions out in the field, and this stuff works. you're going to see this really take off. ashley: take off being the key. so are we ready to deploy these things right now? we've seen the video, so can we expect them to be used in the near future? >> i think next year.

right now you're seeing testing being done of this. it's gone so well that the projections are for 2016. we may learn that -- ashley: you're nervous? >> i would be really afraid if i'm al-qaeda, if i'm isis. this is not a good thing for them. ashley: great stuff. fascinating. thank you so much. we appreciate it. all right gas prices up for six days in a row. coming up next, jeff flock's on the road in chicago. he's looking for the cheap stuff. question is, is he finding any bargains in the windy city?

ashley: let's take a look at oil. nice pop for crude right now, up about a little more than 2.25% at 56.98. meanwhile, gas prices following up overnight to $2.45. the price of regular, by the way, up the past a six days. the cheapest gas in the u.s., it's a long way to drive unless you live there, 1.89 at exxon in jarrett, virginia. and gas prices could be going even high her, unfortunately, but jeff flock driving around chicago looking for some of the cheap stuff. jeff what's going on? [laughter] >> reporter: looking for the cheap stuff, absolutely, ashley. in fact we'll be starting in chicago where it's not so cheap and headed on down to indiana where it is a little less

expensive because of fewer taxes in indiana. but that's a whole other story. the short-term story, report from genscape this morning which says it believes oil inventories in curbing oklahoma, are now peaked -- cushing hoch. it looks like all signs are pointing to higher prices, and we want to see today specifically with the news that's out how quickly prices at the pump are reacting. they react much-rapidly now and of course, the old adage is they react a lot more rapidly when prices are rising than they do when they're coming down. but right now the trend is up as we head into chicago, this is the lovely lakeshore drive. not a real pretty day, but we'll see what we can do in terms of gas. we've got an empty tank and we're going to fill it up somewhere. ashley: keep perspective, the this time a year ago it was

$3.67 today it's $2.45, so we've got a ways to go to get where we were. >> >> reporter: you're absolutely right. i think we need to look on the positive and think about how crazy they were before. i leave you with lakeshore drive, by the way. can you see that lori? ashley: beautiful. >> i like the redesign. let's go on a road trip. ashley: jeff flock, fabulous as always. thank you very much. well, jon corzine still under investigation for mishapping money at mf global but that's not stopping him from planning to launch a new hedge fund. question is, is that legal? judge napolitano's on the case. it also gives us an excuse to run this classic sound bite from vice president joe bide p. >> i called jon corzine -- [applause] i called him because he's the smartest guy i know in terms of the economy and finance.

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all the confidence you need. td ameritrade. you got this. ashley: welcome back, everybody. let's check the big board. stocks near highs for the session. china printing money to stimulate its economy. of course investors like it. the dow is up 239 points. basically almost erasing losses from last friday. we have a terror update. federal authorities late sunday

arrested six people in minnesota and california. this related to an investigation into young men who traveled or tried to travel to syria to fight alongside isis. the authorities said there was no threat to public safety. at least six people were killed in a bomb attack on a united nations bus in somalia. the militant group, al-shabaab claiming responsibility for the bombing. this was the third attack in three days. islamic mem state members in libya beheaded christians and but the white house will not still call it islamic extremism. kt mcfarland joins us at to of the hour. the white house don't denounce this as. >> he won't name it what it is. that is the religious cleansing of christians worldwide, that really started in rwanda in '94. >> yeah. >> in the mid '90s.

the there was a move afoot in the house to have a special envoy at the state department to advocate for religious minorities especially, notably christians given the genocide and religious cleansing going on. it stalled in the senate. the u.n. has a fundamental duty to protect minorities like christians now under siege around the world and the u.n. is also falling down on the job as well. ashley: most disturbing about this we've seen these horrible videos from isis. but now these other splinter groups all around north africa, the middle east are just mimicking what isis has done before. >> we've seen this with totalitarian region games throughout history. they start out and start with one group and go bigger. isis is intent to doing that to get its religious world order in place. ashley: the president's argument is not the religion's fault. people using the religion's name for their own cause. is that he will not dub this islamic extremism? >> it appears doing the report on this, the white house doesn't want to alienate middle of the

road muslims who do not want it called terrorism or radical islamism. that underestimates of intelligence of those muslims who see it for what it is. we can call christian radicalism for what it is but there is failure to call what islamic radicalism is and what it is doing. ashley: no apparent change of that sentiment at all so far from the white house, even though these videos are becoming more and more common. >> that's right. ashley: liz macdonald, thank you very much. >> sure. >> appreciate it. now on to something a little different. asbestos lawsuits. "wall street journal" are reporting that defense attorneys in new york are complaining that the court schedule is rigged to favor one firm over many others. all rise, judge andrew napolitano is here to talk about this judge, how does this work? what is the complaint? do they have a legitimate complaint? >> it is more than a complaint. it forms in part the -- informs in part the indictment against former new york state speaker ever the assembly sheldon

silver no longer speaker but still a representative in the assembly. former speaker silver was, and may still be affiliated with a very large plaintiffs law firm that specializes -- ashley: put on leave as they say. trying to distance themselves. >> one can understand that in light of these allegations. and the allegation are that he used his influence in the government to get his law firm's cases heard first before judges likely to be predisposed to rule in their favor of the plaintiffs. and as a result he enriched himself. it is an interesting bribery -- ashley: like a referral fee. >> that is why it is an interesting bribery argument. lawyers may be paid referral fees as long as they reveal to the client they will be paid a referral fee. as long as they genuinely bring business to the firm. he was an employee of the firm whose job it was to generate this business. in this angle the government

says he used his position in the government to get the business for his firm at the head of the line and before judges that he himself had gotten the judgeships for. so the implication is, the allegation is, that this was a subtle, sophisticated form of bribery. so now -- ashley: is it not unusual for lawmakers to be associated with law firms, is it? is that illegal by itself? >> no that is not illegal by itself. ashley: happens all the time. >> what is profoundly illegal for lawmakers to do anything official in the government in return for an increase in their personal wealth. no matter how that wealth is received and no matter how sirte cute does may be the route for which that cash travels. that was very circuitous route this traveled. >> judge -- >> hang on. the former speaker is innocent until proven guilty. he has pleaded not guilty as substantial defense he says and the case will be tried this year.

>> this is asbestos tort racket. meese thiele chroma cases we've seen the days cases for year. there is estimated 30 billion-dollar honey pot set aside to deal with allegations, charges against them for asbestos and cancer related diseases. do you think there will be any reform of the new york system here to given in light of the corruption with sheldon silver and allegations there? >> i don't know the answer to that but to give you even more sleepless nights, the courts pretty much abandoned the con kept of a statute of limitations on these mesothelioma cases, a person exposed in 1956, who died of mesothelioma 10 years ago whose family learned about the exposure and cause of death can bring the lawsuit now. i'm making up the dates to show you ease with which new jersey and neighboring state of new york the laws have been twisted and turned to help the plaintiffs.

some of these plaintiffs are seriously injured people. some of them actually died from this because all of them are being given a very, very easy shake by the system to allow these late-filed claims to be processed. ashley: i want to change subject as bit. i want to get your take on john corzine. he is considering launching a hedge fund? is he allowed to do this? corzine headed up global in 2011 and charged by sec. and wants to start another hedge fund. >> lawfully is allowed to do this. ashley elizabeth, down anybody that would give john corzine a dollar to invest in their behalf. the inability of mf global to pay losses back. lack of investigation by the government? only thing good he has he is teflon. he keeps falling down and coming back up. but he is losing other people's money as well as his own. >> mf global case was so serious, $1.6 billion in client

money fon missing, and allegations that the firm had comingled client funds with operating cash. >> right. >> so that was the real serious lack of oversight and props with jon corzine running that firm. >> to tie this back into the first part of our conversation with lawyers comingle client funds with operating cash, even if there is no loss disbarred. ashley: done. >> disbarred. >> disbarred immediately. >> can't practice law any form. here is jon corzine, former new jersey governor former new jersey senator billionaire, apparently back on his feet asking for money. ashley: teflon john instead of teflon don. he can legally to do this? he has license to do it. >> his license was not impaired as far as i know. there wasn't even an fbi investigation of where did the 1.2 billion that emac spoke about where did it go? >> they had to do a lot of asset sales to return the money but you know he faces lawsuits still. you're right to ask who is going to invest money with jon

corzine? >> yes. ashley: we shall see. he has the chutzpah to do it. we'll see. judge, thank you so much as always, judge napolitano. the california drought made worse by the greenies. i will explain why next. ♪

>> i'm nicole petallides with your fox business brief. in fact the dow jones industrial average right now up 243 points at 18,069. s&p 500 at 2102. nasdaq, up 57 points. all three major averages gaining more than 1% each. some of the dow leaders, it is all deed e leaders today, boeing, ibm microsoft, cisco systems, 3m all gaining more than 2% each. earnings movers morgan stanley came out with the best profit it has seen since the financial crisis. it is up 37 cents. that is gain of 1%. royal caribbean under pressure. profit forecast is cut. stronger dollar is hurting them as well as higher fuel prices. big loser in the s&p. merck is looking good by a positive cancer drug update. they're moving forward and filing for regulatory approval for immunotherapy. for a drug that they have now working.

ashley: big winner for you. has bro. it makes a lot of its money not so much from toys and licensing movie characters. it has frozen and star worse movie characters. -- "star wars" movie characters. sales hitting a new high up good for a 6-dollar plus today. now this, the california drought made worse by the environmentalists. come on in, james lacy. author of, taxifornia.

yes there is lack of water, a dreadful drought. but this is a lack of water storage correct? >> yeah, it is several responses that we could have that would help california. look droughts are nothing new. this is four-year drought. i lived in california we had droughts year after year. we have enough water in california. the problem is that we don't store it correctly and we're not exploiting new sources like desalination. the problem that we have however, today is as an environmental its are intimidating policy makers to try to make more water available. and as a result we lose acre-feet, hundreds and hundreds and thousands gallons, for example, flush trout out of remote streams. good water that could be used by agriculture to create food. yes, it is an environmentalist problem. >> so man-made you're saying.

how much, i guess this walt ultimately ends up in the pacific ocean, right? >> yeah. it dumps through the delta and into the bay but you know the environmentalists have really taken the tact that dams are aren't appropriate because they aren't natural. so we can't have new water storage. there have been no new dams built in 60 years. there is a wonderful new company, which is ready to exploit all the water in the pacific ocean. you know, california isn't without water. we have a huge ocean right next to us. desalination is a way to create more supply. but government is holding back on that. now, jerry brown hasn't been terrible on this issue. he did pass a proposition called proposition 1 last november, which did make money available to try and exploit these new technologies but they are just not responding. they're just not pumping it out. meantime what they're doing is rationing. we don't need to ration.

there is enough water. we need to use what we have more wisely. >> the san joaquin valley in california, it is the salad bowl to the world, now you're saying man-made scarcity is causing it to be a dust bowl. is it also environmentalists don't want reservoirs built in certain areas because they're environmentally problematic? and also redirecting water to take care of endangered species are those storylines part of the narrative here too. >> well it absolutely is. let me give you an example of the governments not working well together. the federal government demanded that the new milonis dam do a, what they call, a pulse burst of water so that they could move 24 steelhead trout from a remote river down into the delta. they used up 15,000-acre feet of water. you know how much water is in an acre feet? 350,000 gallons that was to move

24 trout. meantime, california agriculture, which is a huge business, $44 billion business creates food. now when you look at it logically and try to connect the dots, should that water be used to move 24 trout which nobody are going to eat? or could it be used for california agriculture to create food for people, to keep the cost of food low? you know, the problem that we have is that these environmentalists don't want anything that is man-made. they don't want water storage. they don't want desalination. but they want to use what water resources we have to try and help keep delta smelt from becoming extinct. i got to tell you, delta smelt are extinct. i would rather the smelt become extinct than people who need food our agriculture system provides. ashley: james, 30 seconds here. you laid out the case very well but that isn't happening. and therefore the drought continues to get worse. how bad is this thing going to get? >> it is only going to get

worse. as a matter of fact recent poll by the california public policy foundation found that 65% of calfornians think it is only going to get worse. what they need to do is lock into these proposition one money. they need to start putting millions of dollars that have already been set aside in bonds into new research such as desalination. we have to build water storage. we have to build dams. that's it. ashley: very food. we'll leave it there, james lacy, author of, taxifornia. we appreciate it. moving on. the boston marathon two years after the deadly bombing. a live report coming up next. i have a wandering eye. i mean, come on. national gives me the control to choose any car in the aisle i want. i could choose you... or i could choose her if i like her more. and i do. oh, the silent treatment.

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♪ ashley: is 19th boston marathon kicking off this morning two years after the bombing that shook the boston community. molly line live from boston on the racecourse. molly what is the atmosphere like today? >> oh, it's a great day in boston. this is patriot's day. the red sox are playing down the street. tens of thousands of people out running. a million people estimated possibly to be cheering them on. a great day in boston. as you mentioned it is two years since the boston marathon bombing. there are amazing stories of resiliency to be told including

one from rebecca gregory a young mother seriously injured in the bombing two years ago. this past november, she ultimately made the decision to am paw tate one of her legs. she got a prosthetic limb in january. later this afternoon she will run several miles of this course. listen to rebecca. >> crossing the finish line on monday will show myself and rest of the world that what he tried to do and what they tried to do didn't destroy me. it made me stronger. it made me want to speak out and want to make a difference and in any way that i possibly can. >> she has been traveling the country to do just that speaking out. also, worth noting, this is an international event. there are people from 97 different countries here including a man who came all the way from brazile. he ran the year in the marathon bombing. he was quick getting across the finish line, across the finish

line before the explosions. this is what he has to say about why he keeps coming back? >> because the boston is more than the bombing. boston, it is one of the most famous marathons in the world. and the people from here it is wonderful. you have, when you arrive here, it is like you are home. >> boston is more than the bomb when you arrive here, you feel like you're home. a wonderful sentiment. here we are at the finish line. this is where everyone at the other end of this race wants to be. that is what they're working for. so far the weather holding off to a decent extent. hopefully stays that way for the runners working so hearthard to be here. ashley? ashley: as long as it stays cool. molly line at the boston marathon. >> it is that. ashley: appreciate it molly thank you. hillary clinton said she was dead broke when bill left office. now she has a problem. turns out that wasn't exactly accurate. the very latest developments at

the top of the hour. war against christianity. ethiopian christians massacred in libya. white house still refuses to call it islamic terrorism. hour two starts in two minutes.

ashley: hour two of "varney & company." i'm ashley webster in for stuart today. to your daily terror update. federal authorities arrested six people from minnesota an california in connection with an investigation with young men who traveled or tried to travel to syria to fight with isis. authorities say there was no threat to public safety. the terrorist group al-shabaab, claiming responsibility for a sophisticated bomb attack on the united nations bus in somalia. it killed seven people wounded several others. this bombing was al-shabaab's third deadly attack in just the last three days. isis killing more christians. a new video released purportedly showing terrorists affiliated

with isis shooting and beheading ethiopian christians in ethiopia fox news analyst kt mcfarland joins us now. thanks for joining us as always. we'll get into why the white house won't call it radical islam. seems like splinter groups fill eighting themselves with isis and copying exactly what we've seen in horrible videos from isis themselves. >> the tragedy radical islam, whether al-shabaab or al nusra front, whatever the group is and there are groups all over north africa, east africa, sub-saharan africa all the way to the mid of middle east to the levant to the arabian peninsula, we've seen in afghanistan we've seen isis. this is international movement. it is radical islam of various varieties. it has one goal to ex-testimony nate anybody that doesn't agree with them. whether christians or jews. ashley: you convert or die.

>> many soft groups isis, doesn't even matter if you convert. if you're not one of our particular twisted brand -- ashley: right now. >> right now so much for you. in fact they're killing more fellow muslims than they are than any other religion. ashley: we talked about the reluctance of the white house and president not to call it radical islam but what else can you call it? >> goes back to their sort of mind-set. we got usama bin laden. we left iraq. therefore, al qaeda is finished. even the president said al qaeda is on the ropes. that was his campaign pledge in 2012. so in their minds they have done it. you know, that is yesterday's news. that was a bush thing. that war on terror, that iraq war that afghanistan war -- ashley: done. >> done, we're past that we're on to peace in the middle east. we're on to iraq relationship with cuba. maybe we're here for a deal with iran. they don't want to call it that. but the tragedy of it is, not owning up to what it is, identifying i you never get it. if you can't see it and can't call it what it is you never get a plan to get it.

so as a result, i think we're seeing it spread. ashley: is it important to call it that? the president says it is not religion's fault. it is crazy extremists using it as an excuse to carry out their horrible deeds. >> except the people within the religion, for example president el-sisi of egypt, for example the grand imam of the university who it met with in december these people understand the threat that they're facing. they have called it out within islam. so that the grand imam he is like the pope of the islamic religion, of all parts of the islamic religion he has said even last week said, we've got a problem. it is our problem. we'll have to fix it. we'll have to reform our religion. and has put his neck out there and called for reform. ashley: that is about time. there has been a lot of criticism -- >> where are the moderate muslims? ashley: where is that outrage? is that fair criticism. >> they're here and finally standing up. if the administration pretends the problem doesn't exist how can you have i think very

courageous religious leaders within islam, political leaders in the middle east standing up saying we have a problem. we're going to identify it we'll call it what it is. yet you have an administration does, see no evil, hear no evil -- ashley: that is -- >> the problem is what is right in front of you. you have in two cities in the united states where you have isis recruits. where you have people being beheaded all over northern africa. where you continue to see more and more and more of this, you have to face up to what it is and deal with it. ashley: they say the young people are radicalized, caught on line wooed into this horrible, horrible movement. and yet we can't call it radical islam? >> here is the other thing. nobody is saying that the administration should put boots on the ground. ashley: no. >> the president says another war in the middle east or you do what i want you to do, no, there is lot in between. support people speaking up against radical islam. give them military equipment they need egypt, kurds, others fighting radical islam call it what it is.

putting your head in the sand it is just going to just get worse. ashley: it is very difficult to stop splinter groups over large geographic area. are we doing enough to stop it? >> there are several ways to go after it. one is, isis is a recruitment. looks like they are succeeding. they have a state. go after that part of it. call it out for what it is. cut off the funding. then call them, support the groups who are willing to stand up to them. ashley: yeah. >> in all three of those areas we're not calling it what it is. we're not supporting people going after them. we're not sort of identifying the problem is. as a result it gets worse. ashley: looks like continuing to spread. >> absolutely. ashley: no matter what we call it, it is spreading. >> kt, there are series why the administration won't call it what it is because the administration doesn't want to alienate, the moderate muslims? >> that was argument initially. president bush had the same argument f we put radical,

terrorist, in the same sentence with muslim or islam we're saying 1.billion are terrorists. we're not doing that but on other hand we're going in other direction. >> doesn't that underestimate the intelligence of muslims. we had people call it radical christianity. people are not offended by that particular term. >> the islamic religion is standing up. it has been in the last six months they have gone on and said the president of egypt started it on christmas eve. ashley: right. >> where he said to the muslim leaders of the entire world, we've got a problem, enough is enough, and now they are taking that up. we've gotten what we asked for. let's support them. >> great stuff, kt mcfarland, thanks for being here. appreciate it. let's check the big board. china is stimulating its economy by guess what? printing money. we have a rally here. we like it here. we're up 230 points. we had a big loss friday but we're making up for that today.

gas is up to 2.45. a year ago it was 3.46, 3.47. let's keep perspective. it could be a lot worse. china printing money to boost its economy. joining us is fox business contributor, anthony scaramucci. he is here for the hour. grad to have him here with liz macdonald. anthony they print money over there stocks rally here. that proves we're in the global economy right? as china goes a lot of the world goes? >> they have have the cement have the steel they're using in their economy. ashley: right. >> they're second largest economy. on their way to be the first largest. we'll have to deal with that at some point. that is global interdependence issue more than anything else, ashley. you have the central bank of china combined with the ecb. combined with the federal reserve bank of england, bank of japan all doing the same thing. this is why we have been saying the stock market will be higher a year from now than it is

today. >> what else, go ahead. i didn't mean -- >> not just because don't deal with the world the way you think it should be. don't deal with the way ought to be. i tell my children ought is terrible word in the english language. you have to deal with the world the way it is. ashley: is it artificial right now then at some point will it be counter balance. >> the short answer it is artificial. the long answer there is specter of deflation affecting the global economy. why are they printing money? they don't want the money to deflate. if the money is becomes more valuable it becomes hard to process goods and service. >> inflation is created by central banks. >> it is. >> if you pay to save negative yields in europe where people are paying governments to invest in their funds. where else is the money going but into the stock market right, anthony. >> think about this excess goods and services, we have on boarded 2 1/2 billion people into the global economy.

ashley: yeah. >> those excess goods and services and excess labor is deflationary. federal reserve bank, all other banks don't know how to understand it this is experiment we don't know what the ott come is. at some point the market is going higher ex-you will be here for the whole hour. liz, stay there. don't leave. >> sure. ashley: back to politics. hillary clinton getting a pass in the mainstream media? what? blake berman in washington, d.c. tell us about it, blake? >> ashley, hillary clinton will follow similar playbook in new hampshire this week as she did in iowa. smaller more intimate gatherings not large-scale events. she will be in new hampshire. no scheduled media interviews. clinton will visit a small business in the city of keane, in the southwestern part of the state. tomorrow she goes to a community college in the capital city of concord with a roundtable discussion for students and teachers. these roundtables and discussions are part of the ramp

up phase expected to be the blueprint of the first month of clinton's presidential campaign. clinton will partake in much different appearances than nearly 20 republican candidates and potential contenders in new hampshire this past weekend. they went before voters and cameras to publicly answer policy positions. now clinton's first week in the campaign zoomed by without any interviews or major speeches. so she hasn't publicly addressed issues like fast tracking trade authority and the keystone xl pipeline. ashley? ashley: blake, thank you. we do know she likes the chicken burrito bowl. blake, thank you so much. get back to the new book, clinton cash. not even out until mex month, may fifth to be exact. already raising questions of hillary's chance of taking the white house. liz macdonald is here. liz, looks like hillary could have a problem. money to the clinton foundation from foreign entities gaining favors down the road. >> that is what peter

schweizer's saying in his book. basically they pocketed the foundation pocketed money and got favorable policies for these foreign governments in exchange. so it's a retail operation. that is what he is alleging happening with hillary clinton state department. you know, i'll tell you something. hillary clinton already has difficulty getting her message out where she stands on policy. ashley: she does. >> this book could chew up a lot of airtime for hillary clinton having to handle these allegations. secondly a lot of these alleged governments, that were involved in this, are in developing world in the developing world. it is kazakhstan, it is colombia, it is haiti. ashley: yep. >> there is going to be a lot of scrutiny paid to all sorts of dealings between the clinton foundation and these governments and anti-democratic governments. we know the foundation has now restricted a handful of what governments they will take money from but still there is a pattern he is saying here. ashley: the pattern is interesting because we know the clinton campaign will say just a bunch of right-wing nutjobs

trying to knock us down and poke holes in our business. >> i'll tell you something, peter schweizer was behind the political intelligence story that made its way into "60 minutes" and was responsible for representative spencer baucus having a hard time not being reelected. spencer baucus was accused allegedly profiting off inside information in congress as other congressman were alleged to have done. that is a big story that peter schweizer is broke. he is known to be muckraker but detailed one with facts and information. ashley: anthony, you surprise ad bit of scandal related to the clintons? what? >> you will come up with better name for whitewater for this one i don't individual. this is what i'm worried about. she will not show up on fox anytime soon to answer these charges. very rare that the media outlets will question her about the charges. look what happened with the email situation. already yesterday's news. there is a toggle switch for the clintons they go into full

teflon mode. she is thrilled this is coming out right now because in six or 12 months, if no one will nail her on it will go away. ashley: it will go away. >> i really believe that the republicans have to recognize something about her. she is beatable but may not be as beatable as people think because of the conglomeration around here. so i just republicans i am now, recognize the challenge. ashley: the clinton machine is well-oil. >> recognize the challenge if they want to beat her. ashley: good stuff. coming up this hour, another break through for cancer treatment. doctors say blood tests are just as effective in invasive biopsies identifying tumors. dr. siegel has the details. new allegations meantime of fraud in those big asbestos lawsuits. are trial lawyers to blame? we ask one later this hour. i have a feeling what he is going to say. could hackers use a new security flaw to bring down commercial planes? we have the answer for you right after this.

ashley: quick stock hit for you. general electric in talks to sell its 74 doll billion commercial lending business. -- $74 billion. anthony scaramucci is still here. this is latest move to have the company become a purely industrial company. does this make sense or not? >> i think it makes sense. they recognize the splitting company security analysts will value each part differently and possibly higher, so years ago that probably wasn't the case. now i think it is. i think it's a good move. ashley: who buys it? who comes in and buys the -- they're saying wells fargo possibly? >> i would say wells fargo is the best positioned because they can get the regulatory clearance. ashley: yeah. >> i think, this is my speculation, i think they have a buyer already lined up and it probably is wells fargo. there are only a few banks that could get the regulatory clearance to make this

acquisition but i would say wells fargo is the most likely. ashley: looks like tim tebow, by the way headed back to the nfl. reports say he will sign a one year deal with philadelphia eagles. tebow is 27 years old. he has been out of the league for a couple seasons. he was with the jets. people wonder, this guy is loved or hated. do you love him or hate him? >> if you're a is christian you love him. if you are a football you half love him and half hate i am. i respect him, but he can't throw the ball. ashley: i have. this was heisman trophy winner. led florida to two national championships. can't throw the ball. >> successful pass rate of 48%. he is not a pocket passer. >> i love his stubbornness. ashley: what do the eagles get out of this. >> tim, if you're watching i would like to hire you for my sales force. i love the stubbornness. i don't think he has the skill set to be a quarterback. if bill belichick didn't think so and let him go for patriots.

it is game over for the guy. ashley: maybe good for the practice squad. we'll see. a new study a link between overly sexualized women on social media and young girls health. deirdre bolton, host of risk around reward is this a reason -- >> am i an expert on anxiety? ashley: now that you mention it, should we keep our kids off facebook? >> here is the thing, ashley. we all have the same information, right? so in theory a six-year-old has the same access to images that you or i, in theory, more responsible, more mature wiser have more perspective. ashley: speak for yourself. >> speak for yourself he have says. girls between the ages of 11 and 13 i'm reading this from a study in the u.k., more affected than they were even five years ago. ashley: why is that? >> think about kim kardashian, love her or hate her, that image of breaking internet. 11-year-old girl says should i go for this or engineering job at google?

at the same time this makes me feel bad. seems like all information in all players hands. google, youtube kids trying to front run it. they're trying to do specific content, family friendly, thomas the tank engine. your personal favorite. ashley: that is my favorite. bought every cd. >> "national geographic" kids. the idea to screen out some of the images that might be inappropriate to pitch you a beer or me a better face cream. >> is this overreaction? we grew up with skipper and barbie dolls. i clearly knew i didn't have to look like that. >> it wasn't in your face all the time. >> who wants to look like ken? >> there you go. 92% of teens are online. if you're around teens, they look like this. right? ashley: see top of their head. >> exactly there was barbie and ken. barbie is in the box at home. >> are we underestimating their intelligence? >> i think it is vulnerable age. they're smart but vulnerable

age. ashley: got to move on. >> raise more anxiety. ashley: well-done, deirdre bolton. thank you to that. concerns about your wi-fi connection when you fly. can they not only change your channel on the in-flight entertainment system or bring down the plane? we have a man that exposed the wi-fi hack and kicked off the plane by the fbi. chris roberts. one world labs in san francisco. chris, describe that moment for me. you were led off the plane, that right? were you put in a room, a small dark room or no ac or heating and put under a bright light and questioned for 10 hours? what happened? >> no, they were a lot more civilized than that, far and away. two uniformed officers came on the plane, followed by two fbi agents. i was fortunate enough to avoid mad rush off the plane getting taken off first. spent four hours in a room with officers on the outside.

three fbi agents on the inside. we had a lengthy conversation for about four hours or so. ashley: what did you do wrong? a what was reasoning behind your detention? >> i think probably tip of the iceberg. we had been working, our and other security researchers are trying to work with the transportation industry, specifically the air industry in this case, for the last several years on security. we worked with the fbi and other agencies last couple years trying to help them understand security risks. unfortunately report came out while i was on an airplane heading to syracuse and i tweeted something that probably in hindsight i should have taken more time to think about. i was frustrated. i'm sitting on airplane. i know there are still security risks through in-flight entertainment and satellite communications i tweeted on a plane. shouldn't have been quite so blunt i was. obviously consequences went from there. ashley: those say since the story came out, chances of being able to have any influence over

avionics are virtually nil through the internet system because the cockpits are built with redundancies. boeing says it is not an issue. are they downplaying the risk? >> i would argue they're down playing the risks. we offered to sit down with boeing and airbus on numerous occasions. we offered to sit down and spend time with them. both myself, other security researchers, help them understand where we are coming from. we've done the same thing with the federal authorities. ashley: hopefully makes it safer for us up in the air. be careful next time you fly. thanks so much for joining us, chris roberts. >> thank you kindly, sir. appreciate it, sir. ashley: hackers have a new weapon. it is called a crack box. it can figure out your password in seconds. scary stuff. we'll show you how it works next. ♪

ashley: hackers have a scary new weapon in their officerral, it's called the -- arsenal, it's called the crack box, and it can steal your password in seconds. lauren simonetti got a chance to see how it works. >> this is the first time you're seeing this device used by hackers to guess your pass word, and the secreter expert --

security experts at trust wave exclusively showed it to us. i gave garrett two of my old passwords, blue 132 and summer capital s2014 exclamation point. i thought they were pretty good especially the second one. how long did it take you to crack 'em? >> under five seconds. >> really? you ran them through the crack box, and seconds later, there they are, cracked. >> a password that is probably over ten characters in length has a good combination of letters numbers, these are all the passwords that we're cracking right here in realtime. >> you can crack a six-character password in three seconds and four additional characters, a ten character password takes you five and a half years. >> yes. >> so should we be rejoicing, there's no biometric passwords? my fingerprint is my password. isn't that a good thing? >> yes, you're right, it is a good thing, however it's a lot

more difficult to adopt because a password you don't need any special hardware for it. >> and as you've been working with companies, josh, up found time and time again that that individual password is often the key to the security of the entire organization. >> that's right. and about a third of the occasions that we're brought in to investigate a cyber crime, it's just one password that allowed us to break in in the fest place. >> to a whole company. >> one chink in the armor. >> but you're an ethical hacker so you know what these bad guys are doing. >> we see them breaking in all the time. we find it to be very easy to get into an organization and take ownership of all their data. you start to take it up a notch when you think about can i shut down the power grid in the united states. you really wonder can a car next to you also connect to your wireless in the car? you're walking around with something that helps control the electronics in your brain, if

somebody can throw that off they might be able to make your heart pop make you payment, they might be able to fill you. ashley: frightening thoughts. lauren simonetti, thank you very much. another breakthrough in the fight against cancer. dr. siegel has the details on that next.

ashley: let's take a look at comcast and time warner shares trying to save their $45 billion merger deal. both companies will sit down with department of justice officials on wednesday to discuss competition issues, that's according to "the wall street journal." adam shapiro joins us with more on this story to. >> when you talk about what's in the balance billions upon billions of dollars. it hangs in the balance when representatives from comcast and time warner cable, well, they're planning to meet with officials from justice department and fcc this wednesday. the combined company would control 30%, think about that 30% of the country's pay tv market and 57% of the broadband internet market. staffers told "the wall street journal" the merger is anticompetitive. comcast and tomb warner cable -- time warner will attempt to convince the merger's necessary

to compete against emerging tech-based t providers -- tv providers. comcast says it will bring benefit to consumers yep, without any competitive harm. comcast agreed to concessions from the regulators to obtain consent for its acquisition of nbc universal in 2011. ashley: adam bottom line, what could it do to my cable bill? >> potentially, it could go up whether you're a cord cutter, because you're going to want internet access, and if you download how it all works it's up to, you know, the contracts are dependent upon each town each city, each state, and they determine whether the franchise fees, but with the internet not related the same way. so it depends where you live, who has the authority, and bottom line is your bill's going to go up. ashley: i'm paying more, that's all i need to know. adam, appreciate it. let's check the big board moving nicely higher. we've been up well, 234 points,

we're hanging tough almost wiping out the losses from last friday. and now in the last week or so we've brought you a string of stories with big developments on cancer. this week, more good news. a simple blood test is showing promising signs of detecting cancer dna in a patient. fox news medical a-team member dr. marc siegel is with us now. how groundbreaking is this doctor? >> i'd say it is. i've been talking the last several weeks about how our immune system has been recognizing cancer as a foreign inspreader, this has to do with the idea that cancers mutate. that's almost a reason that they become cancer. in the past we haven't been able to get a genetic signature, something that we could identify in the blood, you know why? the body gets rid of it. in other words, the dna that the cancer makes gets disposed of by the body. but now we've caught up with it, and there's blood tests called liquid biopsies that will identify the dna that the cancer makes, its signature.

and once you have that, you can say i treated that cancer, but the dna is still there so maybe it's recurring. or, hey, the dna is gone so therefore, you have a positive response to the treatment. the advantage of that, ashley is you don't have to do as many scans and, of course, you can't be doing biopsy all the time it's invasive. ashley: right. >> this is a way to monitor the patient very closely. they've been doing at the national cancer institute, sloan-kettering here in new york, johns hopkins has a study going on in australia. the big three, lung cancer, colon cancer and lymphoma, all three of those they're making remarkable uses of this particular technology. ashley: ultimately, could you detect all forms of cancer through this test? >> i think so. and right now they're using it to see is it recurring, is it spreading throughout the body? in the future it's going to be a way to maybe even diagnose cancer early, before you find it. ashley: if you can take out the biopsies and all the scans and everything, that's another huge

advantage as well. >> if you are able to decrease them. if you don't have to do as many pet scans and cat scans -- ashley: right. >> a lot of times we get fooled, we see a scar, and we think it's a recurrence, it really isn't. we may not be able to tell on a cat scan. cat scan is old technology compared to this. this is brand new biotechnology. great stuff. ashley: it is great stuff. we said it exactly the same time. dr. marc siegel, great stuff. back to the clip torn cash -- clinton cash horde. steve, if this same news calm out about might marco rubio or any other republican candidate for that matter, would they be finished? look you advise the gop, what would you advise the clintons in this -- we've called them the teflon dons of politics. what would you advise the clintons with the revelations in this book? >> i don't think hillary's going to take my advice, and if you're asking me if there's a double standard in the media, i think there's no question, there is. if republicans had been caught in this kind of situation where

they were basically taking money from foreign governments and from foreign operations and then giving out hillary was essentially giving out favors to these companies a kind of quid pro quo, i think the media would be all over it. so far they've treated it with a feather. ashley: has this come out early enough that the clinton political machine will be able to handle it? [laughter] i mean, listen they'll push it off as some conservative hit job, but the documents in here are factual the tax documents the government documents, it's all there very plainly to read regardless of the motivation of the author peter schweitzer. it is pretty damning -- >> yeah well documented, right. so here's kind of the story. i mean basically, we find out about a month ago that hillary was taking all these foreign donations, and now we find out from this book -- i haven't read it yet -- if it is true, then basically what you find is a quid pro quo a kind of cash in, cash out system that hillary, when she was, when she was

secretary of state was taking donations from these foreign governments to the clinton foundation and then lo and behold, some of these companies and some of these governments were getting special treatment at the state department. that's something that smells like a rat. ashley: what's hillary's baggest issue -- biggest issue other than maybe this is the biggest issue, but what about the economy? what's her biggest problem as she heads into this? >> look, i just wrote my own column on this i think her problem is one of hypocrisy. that's what the h stands for in her name. she's been running around the country talking about, you know the fact that ceos make 300 times what the average worker gets and that she's going to you know, reduce the gap between rich and poor and how much she cares about poor people. meanwhile, we're finding out that she was getting $200-$250,000 to give a speech for about an hour. i wish i could get those kind of speaking fees. and we find out the average worker who was the waiter at

those hotels, she was making more in one hour than the average worker makes in two or three years. it makes it very difficult for her to pay this class warfare card because she's gotten rich off this stuff. ashley: she certainly has and then some. stier moore, thank you so much -- steve moore, thank you so much for your time. well the house voting to repeal the death tax but will lawmakers be able to pull this one off? pat boone will be here after the break. but first, a sneak peek of tonight's episode of jamie colby's hit show "strange inheritance." letters from jfk 9 p.m. eastern. >> when i first looked at them, i said oh wow. and promptly put them in a safe deposit box. jamie: there they remained for the next quarter century. but a surprise phone call from a stranger will reignite this family's interest in their unique inheritance. ♪ ♪

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ashley: well, now to the federal estate tax. the house voting to repeal it but that's well, largely symbolic. pat boone in los angeles, come on pat, are we ever, ever going to get rid of this thing? >> well we are going to get rid of it. i've been working at it for about 15 years with jim martin of 60 plus and now kevin brady in the house. they've got the house to actually vote to repeal this onerous -- actually, i think virtually criminal tax. and now it goes to the senate and senators in western states are going to have to consider how their con stuff wents -- many of whom who own farms and ranches and buzzes -- are going to react to them if they rob them and their kids of their

inheritance. if it goes for the president for him to veto, then he can answer to the young people he courts all the time about why he's taking away their inheritance from their parents who built the businesses and own the farms and ranches. it is absolutely just a crime. ashley: yeah. essentially, it's been characterized as punishing success. it's ap attack on the american dream -- an attack on the american dream, would you agree? >> definitely. in fact, i'm thinking about that famous bank robber, willie sutton. they asked him why he rob ared banks, he says, because that's where the money is. you ask the president why are you socking it to the rich who you ask to fund your campaigns, because they have money i want to take it from them. i need their money to pay off some of the $10 trillion in unpayable debt i'm socking to the american people. >> it's liz mac donald -- >> it is really -- >> yeah, go ahead can. >> i'm sorry, ashley. an example is let's say somebody breaks into your home, and many of us have had that experience,

and takes away things that you have bought, paid for paid taxes on and now they're gone. you want the police to go after that robber get back your products, whatever they were, and put him in jail. but imagine your surprise if you have the bad judgment to die you find the robber in your house taking 40-50% of everything you've already bought and paid for, taking it away because you died. >> you know, liz macdonald here, it just feels so immoral, mr. boop to tax people to death and then tax them beyond death. you know, you're right to say that it hits small businesses, you know, would have to literally sell their businesses just to pay the estate taxes, and watch what it raises every year, just 20 billion annually. the u.s. government wastes ten times that amount in duplication in the federal government. and also the clintons, for example set up trust funds to evade the estate tax. >> yes. all the very wealthy have already got offshore accounts,

they're got foundations. -- they've got foundations. they're finding ways to avoid that death tax. i myself am beginning to my own heirs while they're living, while i can give it to them. >> pat, this is one of those things that regenerates, if we cut half of it out and it grows back the estate tax, we've been successful at knocking it back, and it keeps regenerating itself as these guys search for more income. repealing it how do we get it permanentized, if you will and get it gone forever? have you thought about that? >> yes, i have. of course, as i say, i work with jim martin at 60 plus for a long time and now kevin brady. many small towns across this western united states will be putting up statues in the town square for jim who called the tax the stiffest tax imaginable because it taxes people when they die. but all we have to do is listen to the voice of the more than people. 70% are already on record, all

the polls say 70% of the american people want the's candidate tax abolished -- estate tax abolished for death and if anybody wants to defend it and keep robbing from those who have been successful and robbing from their heirs, then they're going to answer to the american people. the american people don't want this death tax, and those in office that are supposed to be representing us had better be listening. ashley: pat boone, absolute pleasure to talk to you today. good luck with the continued fight against the estate tax. we appreciate it. >> thank you. ashley: new allegations of fraud in a big asbestos lawsuit as the story of corrupt politics in new, go figure? that's next.

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ashley: now to asbestos lawsuits. "the wall street journal" reporting that defense attorneys are complaining that the court's schedule is rigged to favor one firm over many others. former federal prosecutor john lara is here with us now. what is the main complaint here? how does this work, and do they have a legitimate beef? >> you have the second most powerful person in new york who's been indicted, he also happens to be a member of a plaintiff's law firm that brings over 70% of the asbestos cases in new york city. defense lawyers have been claiming they're not treated

fairly, and, in fact a new judge has been appointed just to look at that issue. >> it looks like the law firm also won a majority of the -- >> they're upset because they feel they're at a disadvantage that the law firm got all the advantages, and they're settling cases for amounts that should not be settled for. knob doubts there are people -- nobody doubts there are people injured, but do you have to pay a premium because there's some political power operating? >> how would you check that egregious corruptive power? >> well, first of all no one's saying that the court system is corrupt, but it has an appearance that something's not right. ashley: yeah. >> a new judge -- >> but we know there's a circuit between our state legislature in new york, plaintiff attorneys and other attorneys, and we know that there's a circuit that leads back to money. >> well, here's the biggest problem, state legislators can be part of law firms. and when they're in the judicial -- [inaudible conversations] >> that's one of the ways in. >> that should be absolutely

limited. >> you mean you're saying a sitting official can also be a member of a law firm. so there's a turnstile. >> well, and here's the other thing okay you're a litigant in court. the person opposing you is in a law firm and that person is the second most powerful person in the state of new york, you're going to have some doubts about justice. >> that's huey long behavior. >> it is. and nobody wants to clean it up. and ironically, you know, mr. silver has been indicted just because of that system. >> that's right. >> because it looks so bad. ashley: he was never really given the proper title at that law firm. >> counsel. ashley: whatever that means. >> by the way his role was to make rain. his role was not to go in a court and litigate but to bring business in. i'm not saying he's guilty -- [inaudible conversations] >> kickbacks referral. >> he's got some great lawyers who, and this is not a slam dunk for the prosecution at all. >> doesn't this cast a shadow over all of the other mega-settlements other companies in other industries have had to

pay? the tobacco settlement, for example. a state legislator told me, you know what? we in new york state, we just spent that money. it didn't go for prevention, we spent it. >> here's the thing people want fairness, and they don't feel like the process is fair if a political leader is part of a law firm litigating in a state. >> how could it be? >> wouldn't you hire that political leader? >> of course absolutely. but what does that do for the justice system? it makes it look like the system is skewed, and that's unacceptable. ashley: is there a movement out there to prevent these conflicts of enter or abuse of power -- interest or abuse of power? >> write your assemblyman the governor. nobody's doing anything about it. >> the media is not doing anything either. the fourth's candidate is not doing anything either. ashley: maybe this can be the lightning rod. >> a federal prosecutor got so frustrated, he brought an indictment. he said albany can't clean its own house i'm going to clean it for you. ashley: fascinating. you know asbestos cases,

they're going on -- is there any statute of limitations? >> well it's big business. hundreds of millions of dollars change hands in that courtroom. hundreds of millions of dollars, and companies get bankrupted every day by it. so the question is, this will go on for another generation. ashley: john, thank you so much for being here. more varney after this.

>> isis is recruitment. they're succeeding. they have a state. so go after that part of it. call it out for what it is. cut off the funding and then call them-- support the groups who are willing to stand up to them. i think in all three of the areas we're not calling what it is. we're not supporting the people going after them. ashley: fox news strategic analyst kt mcfarland says that obama administration must call isis what it is. and said this about the clinton's cashing in. how can you be broke at the end

of the term and then buy a long island mansion? can the clinton foundation exist then? . here is deirdre bolton. deirdre: thank you very much. as the g.o.p. wraps up a big weekend in new hampshire, hillary clinton will have the state all to herself today. we're going to show you how candidates say data mining may determine who is elected president next. speaking of politics former new jersey governor and bankrupted ceo of mf global jon corzine may be launching a new hedge fund. and the merger of time warner cable may not have a merger. the justice department and fcc in the final stages of reviewing the merger. at the heart of the matter the concern that it would make the combined company too big and too powerful in