jon: cavuto called me during the break says i can have his job but not until he is done with it. >> i will have to fact check that. thanks for joining us everybody. merck live -- america starts right now. >> we're getting new reports after big bailout in the works for america's struggling homeowners. welcome to america live. i'm shannon bream. megyn kelly is back on monday. "the wall street journal" now backing up previous reports suggesting that the nation's biggest banks are getting closer to signing off on a multibillion-dollar loan forgiveness plans for american homeowners having difficulty with their mortgages. cheryl casone has the story. >> reporter:th is fascinating story. this is coming from our partners over at "the wall street journal" here is what the report says. bank of america, remember the nation's largest bank is

working on a deal behind the scenes with state and federal regulators to get themselves out of a major lawsuit they are facing. actually lawsuits plural. here is what bank of america wants. bank of america wants a deal from the feds from the states, that they will have protection from lawsuits that they are currently facing and also future lawsuits if they forgive some of the loan amounts for troubled borrowers, their own borrowers. these are homeowners that have a loan at bank of america or have a service, loan that is serviced by bank of america. they would actually be forgiven for some of the principle of their home. controversial idea but this is what bank of america wants. they're telling the feds, look, if you protect us from the legal system, protect us from lawsuits we will help out homeowners and forgive them on principle. now not as easy as it sounds. according to the journal and sources behind the scenes from other news organizations here's what they want. they're saying you will have to prove that you have got financial hardship. only for loans a million dollars and below.

and, you have to go to the bank and say, that you, you have to sign new contracts obviously and rework the loan with the bank. but basically, oh, you have to be 60 days late. there are a lot of conditions, shannon for this. b-of-a is the biggest bank. they have a lot of toxic mortgages because they took over countrywide. this is product of the paperwork mess that began last year. states and feds are furious at the banks. they say they foreclosed on homes when they shouldn't have foreclosed homes. they are suing banks. and now the banks will cut the deal. shannon. shannon: thank you so much, cheryl, for giving us the inside scoop on this. >> reporter: you bet. shannon: should banks bail out troubled homeowners when there is no break for people who manage to keep up with their payments and obligations? we will have a fair and balanced debate on that a little later in the show. another fox news alert on new concerns about the economy. first, u.s. factory orders out today and they dropped

nearly 1% in june. businesses are cutting back on things like orders for planes, vehicles and machinery for the second time in three months. and a new industry report shows growth in the services sector was stunningly slow, the worst since february of 2010. and the auto industry staggering through another sluggish month in july. selling only about 1% more than a year earlier. that is according to auto data corporation. president obama announcing yesterday he is refocusing on jobs. now that the debt deal is done. >> it is first thing i think about when i wake up in the morning. it is the last thing i think about when i go to bed at night. not a day goes buy that i'm not focus the on your jobs your hopes and your dreams. in the coming months i will continue to fight for what the american people care most about, new jobs, higher wages and faster economic growth. shannon: critics point out this is not the first time the president has said he is now pivoting in the jobs

issue. in five minutes monica crowley joins us with the president's report card on job creation. what's worked and what hasn't. more questions than answers today in the heartbreaking death after new hampshire girl. an autopsy so far failing to determine just how 11-year-old selena cast died. -- celena cass died. her body was found in a river on monday. authorities are waiting on toxicology results but they say the debt is suspicious. trace gallagher joins us. >> reporter: the condition it is this is now a criminal investigation. we also know authorities are holding back information they have about that body to preserve the integrity of the investigation. now we're waiting for stocks kolg results as you said. that will give them a definitive cause but a lot of experts say they believe the authorities have a good indication how she died. they're just wanting to make absolutely sure before they release it. the crime scene tape around her house went up as soon as

they found the body a half mile from her house in the connecticut river. a big part of this investigation is where she was last seen. we know she was at her computer, 10:00 at night in her room. they are certainly now going through her computer to find out if she had contact with somebody? did she meet up with somebody she met on the internet? we have reported a couple times her stepfather, has a very troubled past. threatened to kill a former girlfriend. was deemed unfit to stand trial and was sent to a psychiatric hospital. the assistant attorney general in new hampshire was asked directly about the stepfather. listen. >> we continue to look at all facets of this case at this juncture it is criminal so we're interviewing witnesses. we're looking at a number of pieces of evidence but i'm not going to comment if we have a person or persons of interest. >> reporter: additionally one of the local affiliates in boston reported that wendell noise has been

questioned by police but is not cooperating. the assistant attorney general was asked straight out, hey is there a concern for other children in this area? should they be concerned about a predator on the loose? and her response was they should not have heightened alarm. as the investigation proceeds, we get more information, shannon, we'll bring you it every step of the way. shannon: thanks for keeping us updated. >> reporter: okay. shannon: this is a fox news alert. ugly new charges in the federal battle over billions of dollars and thousands of jobs at the federal aviation administration. lawmakers leaving town for vacation while leaving the faa partially unfunded. more than 4,000 workers have been furloughed. accusations are flying back and forth over who is to blame. now there are new questions on how all of this could affect your safety. peter doocy is live countdown clock with answers. hi, peter. >> hi, shannon. republicans are hostage-takers for sake of busting up unions. that is according to democrats. they so many, many times at

a press conference a few minutes ago. looks like when it comes to hot rhetoric nothing calmed down post-debt deal. exhibit a. this is how new york's chuck schumer is saying how the gop is handling the faa right now. >> i would like to say something to jonathan. in all due respect. the issue is not essential air service. it is not even a labor issue. it is issue of hostage-taking. it is as if someone put as gun to your head and says give me your money. you say, why won't you give them their money? you leave out the whole context there is being a gun held to your head. that is not fair and that is not right. >> reporter: so democrats want republicans to go along with a clean bill of extension for the faa that is something transportation secretary ray lahood wants as well. he just said at the white house he wants congress to do this right away. >> leave your vacations. just for a couple of hours. come back, congress. help your friend and neighbors get back to work.

>> reporter: the reason democrats in the senate don't like the bill that passed the republican house is partly also because it tries to get rid of wasteful spending at rural airports. house speaker john boehner is not taking any of the fresh attacks lying down. his spokesman said quote, the only reason 80,000 jobs are at stake is senate democratic leaders chose to play politics rather than keep their word and pass the house word. that is indefensible and they should end this crisis immediately. another boehner spokesman kevin smith says the house passed its bill. this shutdown is not their fault. if you look at calendar, shannon, as far as resolution goes, congress doesn't come back until september. there is chance this could drag on for quite a bit. shannon: peter doocey live countdown clock. you heard words guns to the head and hostage taking. should we louis use the language in politics today or is it okay? we'll have debate. thanks, peter. we have the information on the world's most extensive espionage case including attacks on the

u.s. and several organization. experts say the scope of this hack something shocking. they're pointing the finger of blame at china. what kind of damage has been done? steve centanni is live countdown clock. hi, steve. >> reporter: hi, shannon. it is unclear what damage has been done. the scope of the hack something very wide spread affecting 14 countries and the potential damage is immense. here is a partial list of the victims of operation shady rat. associated press was hit. united nations. international olympic committee. u.s. government agencies including the department of energy, u.s. state and county governments and u.s. defense contractors, about seven of them. mcafee says of the 72 total agencies and companies hit, the vast majority, 49, are in the u.s. while mcafee doesn't say this is the work of china, computer experts looking at type of hacking done and material being targeted say this is very likely the work of china. homeland security chief

janet napolitano was asked about the report today. >> we became aware of the mcafee report today, which is when it was released to the press as well. we obviously will evaluate it, look at it, and pursue what needs to be pursued in terms of its contents. >> reporter: the report says hackers made a critical mistake keeping a log of their targets mcafee was able to access. among the targets were associated press reporters in hong kong and new york covering china related stories. they clicked on e-mail that allowed hackers to get entry. california senator dianne feinstein reacted says this puts front and center the amount of cyber intrusions into the u.s. and global organizations. we need to apply pressure to other countries to do more to stop cyber hacking eminating from their borders. shannon: that scope is amazing. steve, thanks very much for the update. the white house is defending

the president's party for comments like this during the debt debate. >> what we have here a small number of people, relatively small number of people, who have held hostage not only their own caucus but they're holding the democratic party and the american people hostage. shannon: some democrats comparing the tea party to terrorists and armed hostage-takers. is that okay? we'll debate it. and a bizarre bomb scare in australia. an 1-year-old strapped with explosives inside her own home. we'll show you the story behind the story. do people have a right, a civil right to own a cell phone?

shannon: a homeless man now in custody after jumping the

fence at the white house. the man was quickly arrested by the secret service last night on the complex's north lawn. at the time he was wearing a backpack. but experts determined it didn't contain any weapons or explosives the suspect was transferred to d.c. metro police and will be charged with unlawful entry. exactly 24 hours ago we were bringing you the president from the rose garden. he had a live speech and declared the debt crisis was behind us and he would pivot to jobs. that would job one, once again. according to new report out by payroll processor adp, private companies added 114,000 jobs last month. that is well below the rate needed for a healthy jobs market. critics are pointing out this is not the first time we heard the president make a promise about jobs. >> jobs must be our number one focus in 2010. that's why my administration remains focused every single day pushing this economy forward. all these investments, in

innovation, education and infrastructure, will make america a better place to do business and create jobs. in making sure jobs are available, is the first thing i think about when i wake up in the morning and it is the last thing i think about when i go to bed each night. not a day goes by i'm not focused on your jobs, your hopes and your dreams. and in the coming months, i will continue also to fight for what the american people care most about, new jobs, higher wages, and faster economic growth. shannon: so how is this administration doing on jobs? talk about it with fox news contributor monica crowley. great to see you here today. >> hi, shannon. shannon: the administration will say they came in at a time of great economic distress. since they have been in charge, how is the president doing on jobs? >> we see evidence every day of the obama economy. remember when president obama came into office, unemployment, shannon, was 7.8%. it is now at 9.2%. actually when he came in and sold the nearly trillion

dollar stimulus plan the promise from this administration was it would keep unemployment to 8% or below. well it subsequently sailed over 10%, 10.2%. it settled in the 9 to 10% range and it is not getting any better. it has been stubbornly high for a whole variety of reasons including what he went on to do, the first thing out of his administration was obamacare. massive new costs. massive new taxes that are hanging over the heads of every business and all of the uncertainty that goes alongwith obama care, dodd-frank, all of the regulatory burdens that they have imposed on businesses, small, medium and large businesses since they came into office is really having a suffocating effect on employment. shannon: he talked about that directly yesterday from the rose garden. he mentioned it, what a lot of people thought was a campaign or stump speech outlining things way beyond the debt deal. he talked about regulations pointed jab, don't think it is about rolling back regulations will make this economy recover. is he right about that?

>> it is not just about regulations. it is about a whole host of issues we talked about. it is uncertainty, the taxes, all the additional costs that go along with regulation that is really having an inhibiting effect on businesses of all sizes. look, shannon, why would you want to hire somebody today if you don't know what it will cost you tomorrow to have them on your payroll? just a very basic fundamental, economic rule that this president and the far left refuse to see. they spent us into a keynesian coma over the last 2 1/2 years out of this far-left, ideological view that government spending creates jobs or government spending creates economic growth. it does not. the private sector drives that what we had out of the administration and democratic congress until january when the gop took the house is an unprecedented wave of expansion of government, spending, unprecedented record-breaking deficits and debt. all of that is a huge overhang of the economy. so it is no surprise you're

not getting any job growth. shannon: if they continue to look forward and try to figure out ways to restimulate and make that happen, we're getting chided today, a little bit of warnings from china and russia, two of the biggest treasury security holders of u.s. treasury securities saying things like basically we'll keep an eye on you. yeah you got this debt deal done but there are a whole lot of things wrong with your economy. vladmir putin says we're like a parasite living beyond our means and putting our economic problems onto the rest of the world. how does it feel to be chided by china and russia. >> the vladmir putin, sued coauthoritarian communist that criticism is rich bus doesn't make him wrong. since the administration came into office the chinese at every opportunity whether sitting with obama, secretary of state hillary clinton, treasury secretary tim geithner, they have been lecturing us about spending and debt. they're worried about their own holdings as is putin and the russians and they're absolutely right.

but isn't it ironic you have a former communist nation in russia and currently communist nation in china lecturing us about deficits and spending and debt, and they're the ones that are right. shannon: they're going to be watching. they're keeping eye on us. thank you very much for coming. great to have you. >> you bet. shannon: for the other side of this argument, joe trippi will join us in the next hour to talk about this from the administration's viewpoint. it is fair and balanced and it is coming up. some people in texas are seeing red literally. look at this lake in san angelo turning the color of blood. the story behind what looks like the end of days. do not adjust your screens. that is an armored vehicle, check it out, running over a parked car. see why the mayor of one town decided he needed to send a tank to send a message to drivers parking where they shouldn't. oregon hiker rescued after three grueling nights in the forest. injured eating berries and

bugs to survive. fox news cameras were there when her family learned she was alive. we'll talk to her mother, coming up. >> she might have been located. we're not sure it might have happened. >> what did they tell you? >> he said there is not much but she was waving from a creek bottom to the helicopter. i don't know. he is 50%. sure.

shannon: story straight out of the end times, a reservoir in san angelo state park in west texas turning blood red. unrelenting drought nearly drying up all the water and leaving thousands of dead fish behind. wildlife authorities say too much bacteria is to blame for this bizarre color change. one indiana preacher isn't

so sure. saying the lake might be the evidence that the apocalypse is on its way. stunning pictures from the trial for former egyptian leader hosni mubarak. the leader was wheeled on a gurney and listening to charges against him inside a steel cage. he is facing the death penalty, charging corruption and ordering killing of protesters. rina, what was the reaction in cairo to seeing mubarak in that cage? >> reporter: shannon in was always a sense there was secret deal between mubarak and military council that ruled egypt that he wouldn't have to stand trial and somehow fade into the sunset. you can imagine the people's surprise when his chopper landed right next to the courthouse and later appeared a short time later wheeled out on a hospital bed and put inside of that iron cage along with his sons and former interior minister who are all being charged. they could not believe the egyptian, people, that he actually showed up in court

and that he looked so frail. i mean these images are still shocking the egyptian public. that he appears so weak, a man who for 30 years, his entire identity was ruling egypt as the ironman, shannon. shannon: is there any worry there will be violence that will be sparked because of what is going on with this trial now? >> reporter: well the concern, there have been 3,000 police officers standing by ready to intervene should the situation warrant and they have shut down tahrir square to protest. they kicked most of them out on monday. the question is on friday, shannon, because there is a belief anyone should be allowed to pray in tahrir square on friday during friday prayers and the police might not be able to prevent them from coming in. there are still two different camps pro-mubarak and anti-mubarak. they were clashing today, throwing stones and police intervened. the fact that mubarak doesn't appear until august 15th the worry is tension on the streets could pick up

next couple days. shannon: reena -- reena live in cairo. a horror show stand why you have aing young woman strapped with a bomb around her neck. one of the strangest crime stories we've seen in a while. plus, casey anthony is spotted first time she has been released in jail and her lawyer is arguing that her life is in danger. we've heard the tea party described as terrorist, and hostage takers, some of the language coming straight from the white house. is this the calmer rhetoric we were promised after tucson? >> those that carried out that threat did so in the wrong spirit, not the spirit of america pulling together. but in the spirit of creating a situation of hostage-taking.

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♪ ♪ ♪ >> reporter: a massive investigation underway after a heart-stopping few hours in sid tphaoerbgs australia. a bomb squad called in to rescue an 18-year-old girl trapped near some kind of suspicious device. the girl is now safe with her family. here is how it all went down. police were called to the home at 2:30 in the afternoon, apparently told a girl was being held hostage. there were reports of a bomb around her neck. so far police are not officially confirming that. the girl's parents were forced to stay away from the home for their own safety and surrounding homes evacuated. finally ten hours later the girl

is freed, police saying it's too early to say if the device was part of an extortion attempt. we don't even know so far if it was a bomb. joining us a grn reporter, stewart, what can you tell us? >> the situation is still as mysterious as it was when it started at 2:30 this afternoon. the girl, one thing we know, obviously the girl has been freed and reunited with her parents. she has been taken to the hospital to be checked out. she was kept in an uncomfortable position. they won't elaborate on what that meant, simply that she wasn't able to move because she had a bomb strapped to her and it was a little bit too scary to move around too much. or that she was restrained. they said she had more interaction with the person who placed the bomb on her than previously revealed. they are not saying whether it

was an extortion plot or whether they heard from anyone about any money. they can't even say if indeed the device they recovered and are now going to make the subject of their investigation was an explosive. >> reporter: stewart, can you tell us about her family? we understand that she comes from a prominent family there in australia. >> yes, yes. she comes from a very wealthy family. the police say it's one of sidney's wealthiest families. they wouldn't exactly identify obviously for safety and security reasons the family's name or the exact address, but they said it's one of sidney's wealthiest families, and the suburb that all this took place in, mossman which is on the north side of the sidney harbor is one of the wealthiest suburbs. it has beautiful views of the opera house and the bridge. those views don't come cheap. there is a real chance that there was an extortion attempt but there are also strange circumstances that the police have resreld in their final press conference.

>> reporter: much more to that story. thank you security for the update. >> you're welcome. >> reporter: just seven months after democrats issued a call for civility in washington, in recent days congressman mike doyle has come under fire for like evening the tea party to terrorists. all across washington democrats in the house, senate even white house staff have taken to referring to conservatives as possible taj takers. here is press secretary jay carney yesterday. >> i guess i don't understand the difference, why is terrorist inappropriate but hostage taker is not inappropriate? >> i just think that, you know,. >> they were going to blow themselves up too. >> i'm not even going to engage in -- i think in general what is important is that even in the

midst of debates that we all feel very passionate about, because the issues are so important, that it is not helpful to the kind of productive political discourse that we need to achieve compromise to use those kind of analogies, even if they are -- even if they are understandable and descriptive. but i'm not -- you know, this is not the seven words you have to ban, you know, like these words are okay and these aren't. i think lowering the temperature in general is a good thing. >> do you think hostage taker -- >> i think i've said everything i can about that. >> reporter: let's talk about it with christopher hahn former aid to senator chuck schumer and and chris plant, host of the chris plant show. where do you draw the line. >> part of me says yeah, they did behave like hostage takers and terrorists but that assumes that they knew what they were doing when they did it. i think some of them were so clueless of how the economy

works that they couldn't possibly take it hostage. what they did do in effect was take the than tire world's economy hostage over what they believed was the proper economic course, which would have led us to ruins in our economy should we have breached the debt ceiling to the point where we had to default on our debt payments and stop paying the bills we already incurred in this country. >> reporter: we'll play for you leaders who have used that analogy. >> the debate we won't be having is whether the debt ceiling should be raised. we will not have it where they are holding the economy hostage. >> reporter: they are. we've heard taliban, hezbollah, chris is it ever okay to use those words? >> for democrats it is because they've lost every argument. as thenuns use we are

interrogatory with children autism out in the snow one with down syndrome. we have radicals, e teamists and this is just from the senior leadership of the democratic party. they have lost the argument, i don't even want to get into the merits of what happened over the last couple of weeks. you guys are wong, you lost the argument, the person people know that you are bankrupting us. you have nothing else to do but call name. they wore the word racist down to a nub. >> it's not the years and years of bankrupting policies that have been happening. listen i see guys like joe walsh on the tv i think i'm watching dog day afternoon. these guys say it's my way or the highway, give me a bus or i'm going to kill this economy, this is not good. >> it's more name calling that was terrorist, that was hostage takers, dog day afternoon, blah,

blah,. >> reporter: let's think back a few months ago when everybody was united in their shock and brief with what happened in tucson. there were calls across the board but democrats saying we have to tone down the rhetoric, it was dangerous. that was their estimation. christopher, does that put them in a bad position having used a lot of it in the last week or so? how can they marry those two tkeuf cent vocabularies. >> a week and a half ago christopher and i were talking about allen west's letter to debbie wasserman schultz. i agree we should tone it down. using a word like we're holding the economy hostage was descriptive of what was going on. no one was saying a specific member was this or that. no one was put ago target on anybody's back. we were saying, what you're doing here is akin to hostage taking. and it was. we are saying do it this way or let. >> reporter: this is a little

bit of the rhetoric from the last 48 hours and chris we'll let you respond. >> the debate we won't be having is whether or not the debt ceiling should be raised. we will not have a situation where people will hold the american economy hostage in order to achieve a specific agenda. >> tea party republicans have held our economy hostage to those demands but deficit reduction should not be enacted in a hostage situation. >> those who have threatened for the first time in the u.s. history for the u.s. not to meet its obligations which would result in devastating impact to families across this nation, those that carried out that threat did so in the wrong spirit, not the spirit of america pulling together, but in the spirit of creating a situation of hostage taking and extortion. >> i'm also very, very disappointed that we have allowed the tea party to drive this deal. it seems to me that what we have here is a small number of

people, relatively small number of people who have held hostage not only their own caucus, but they are holding the democratic party and the american people hostage with their threats. >> reporter: all right, now what we're hearing right now is because the democrats have been -- by many estimations have been on the losing side of this debate the last couple of days. we know this comes from both sides of the aisle. would you be willing to say that nobody should be using the language. >> no i would not concede that this comes from both sides of the aisle. if you can find any congressional leaders on the republican side using names like this. and let me, since you brought up the gabrielle giffords shooting, the day that she was shot, before we knew how many people were shot, the democratic party and their henchmen were busy blaming the republicans and sarah palin for the shooting, which was car red out by the way by a george bush-hating 9/11 conspiracy they are or r*eus. >> nobody checked. >> please. >> i was on this network that

day. no one was blame hearing that day, trust me. this is something she contrived. sarah palin is the victim in this country, she loves to play the victim. >> oh, come on it was in the news. >> reporter: i'm going to stop you there. one sentence on allen west and we have to go. >> what alan west said in describing debbie wasserman schultz was accurate and correct. her accusations, like this name calling, like all this name calling is vial, unprofessional and despicable. and when the democrats stop it then we can have a civil discussion. >> reporter: for some people -- for some the alan west language went too far. we will leave it there. >> it did. >> reporter: we will get back to the debate again another day. christopher and chris thank you both. >> thank you. >> reporter: a deadly salmonella outbreak. we'll show you where authorities are now looking into that, plus an amazing survival story, a woman missing for days in the wilderness, and as fox cameras

role her mother finds out she is alive. you will see that moment and we will talk to her grateful mother, next. >> never in a million years would i have dreamed of this happening to us. it's very surreal.

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>> never in a million years would i have dreamed of this happening to us. it's very surreal. >> reporter: saturday afternoon 28-year-old pamela got lost in the mount hood oregon wilderness near bear leg. her boyfriend said they separated looking for a campsite. >> i went around one way, she went around another, i thought she did and she actually didn't. that was the last i saw of her. >> reporter: it was the last anyone saw of pam until late tuesday afternoon and a call from the sheriff on the west coast breaking the news. >> we might have located pam, we are not sure, but it might have happened. >> what did he tell you? >> not much but she is going from the creek bottom to the helicopter. he is 50% sure. we are waiting for the call. oh, gosh, it's amazing if it's really true. i really don't want to get my hopes up completely, but i'm hoping. >> reporter: for a full agonizing half hour the family fielded phone calls from oregon,

people close to pam telling the family that ma'am was found, but there was no official word. >> matt has pretty much 100% confirmed that it's pam. but i'm still waiting for that sheriff. >> reporter: the family could not see this the dramatic blackhawk recovery of a young woman discovered at the bottom of a ravine, a mile and a half from where pam was last seen. at the home they prayed, prayed for a miracle and soon her family got that miracle. >> oh, thank god, thank god. thank god. is she okay? i just feel like a big, huge weight has been lifted off my shoulders. i'm not shaking any more. i've been shaking for the last 48 hours. and it's a huge relief. >> reporter: joining us now live on the phone. pamela's mother jane. she comes to us on the phone from massachusetts, and, jane, all we can say is that everybody who watched the story and prayed for you all is so excited, you must be so relieved.

>> i just can't describe how happy we are. we are getting ready to go out there, in fact in a couple hours we'll be catching a plane from boston, going out to portland and visiting her as soon as we can. >> reporter: the best news of all of course is that she is found, alive. she was injured and she was an absolute fighter doing everything she could to survive. can you update us on how she is doing physically? >> we talked to her last night and found out that her left leg is broken and will require surgery, which she is having on friday. and she said that her back is broken, although that was a surprise to her, she didn't realize that it was broken, it just hurt, but to me that sounds like it may not be as bad as it could for a broken back. her right leg has a big garb i

gash in it and she is covered all over in scratches. other than that she's been given a good amount of pain medicine to take away some of the pain. but she was able to, you know, holdout for the three days, and she told us that she drank a lot of water, which probably kept her alive. she ate bugs, and berries. at night when it got cold, since she only had a tank top on and a pair of shorts she covered herself in moss to keep warm. >> reporter: it sounds like she knew exactly what to do to survive until she could be found. knowing your daughter like you do, do you think she is going to continue, once she heels up to go on other adventures, is that her style? >> i think she will. i think she will be more cautious. i don't think she'll rule out

doing hiking and camping. that's what she loves. she just really loves that, and i think she will after she heels. it's going to take some time but -- >> reporter: everyone's prayers will continue to be with your family and her. jane, we continue be happier for the ending of the story for you, safe travels. >> thank you very much. >> reporter: we are keeping a close eye on tropical storm emily making a beeline for quake-ravaged haiti. how the storm's next target could be the u.s. east coast. you better not mess with this mayor. when he doesn't like what he season the streets he gets a ta*pg, fires it u tank, fires it up and takes it out for a ride. that story is next. [ jon ] we don't just come up here for the view up in alaska.

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park illegally you'll get a ticket, maybe you'll get towed. in the capitol of lithuania you get this. ouch. that is the city's mayor running over an illegally parked mercedes with a tank. trace gallagher is live in the newsroom. makes the ticket look not so bad, trace. >> reporter: did you see the smile on his face. that was one happy mayor. can you imagine bloomberg doing

that. he would run and down 5th afternoon running over cars. there is nothing more annoying than a car illega illegally parked. he's a big proponent of other forms of transportation. he says get the tank out, he crushes it, he keeps going, he smiles, then comes out the owner of the mercedes. there he is the mayor going over it, the owner walks out, oh good lord look at my car. the mayor walks up to them, they have a little chat. let's savor this for a minute, play that. well it's just music. it's not really anything else, just music there. they sweep it up. the car was parked illegally, and yes the mayor did crush it but the rest of it was kind of a set up. it was a set up because the mayor was trying to set an example. they set this whole thing, videotaped it. the city actually paid for the car beforehand so they could do this. but it makes for better video

when you think the mayor just went crazy and smarted smashing parked cars in lithuania. kind of a neat way into force the law don't you think. shannon: it definitely gets your attention, makes you think twice. i get that's the whole point. >> reporter: don't park illegally because it's annoying. shannon: i hear it loud and clear. i wish i had a tank for my commute every day. i don't think that is going to happen. thank you. next time you fly you may find yourself in the middle of a question-and-answer session at the airport with undercover tsa agents, part of a new program to keep terrorists from carrying out their next planned attack. we'll take a closer look at that. and casey anthony ordered back to a florida courtroom. her lawyer says she is not going to show up. new details on the first casey sighting since she was released from jail. also the latest debate on whether or not people have a civil right to own a cellphone. medicare. it doesn't cover everything.

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medicare guide and customized rate quote. shannon: this is a fox news alert. refocusing on the unemployment crisis as the debt debate take as back seat. this is brand new hour of "america live". i'm shannon bream in for mig begin kelly. she is back on monday. president obama calling on congress to send him job creating legislation, pushing for new policies to help companies hire, invest and ex-panned a mission he tried to launch more than a dozen times. president says he is reyou knewing a focus on jobs. how much of a battle will it be for him on the campaign? >> reporter: shannon, it is a huge battle. the president's aides point out there are good economic signs. the stock market if you look at big picture up 100% since he took office. americans are looking at last eight days. even though the debt crisis

came to a peaceful resolution, if you will, without a default for the united states, markets has been down eight days consecutively. you had the awful economic growth numbers from last friday. this coming friday a lot of people will watch the new unemployment numbers coming up for the end of july. and with unemployment over 9% right now, nationally, as the president goes to chicago tonight for a couple of big fund-raisers that sort of kick off his campaign but also celebrate his 50th birthday for tomorrow, this is a sign, all of these economic signs, that this campaign is going to be an uphill struggle, shannon. shannon: pivoting to jobs not really first time we heard this, is it? >> yesterday at the rose garden the president immediately wantly to get away from debt deal. didn't have a pep rally. they were happy the whole sorry episode was over for both parties frankly. the president immediately started talking about jobs. said it again and again.

he has done this throughout the last 2 1/2 years. take a listen. >> the question is, how are we going to make sure that people are getting back to work and able to support their families? jobs must be our number one focus in 2010. as president, that's my commitment to you. to do everything i can to make sure our economy is growing, creating jobs and strengthening our middle class. >> reporter: so you see this is not a new refrain. it has been said over and over yet unemployment still over 9%. i asked jay carney today why should americans have more confidence this shift back to retek focus on jobs and actually work and create jobs? he said look we're trying all kinds of things. trade deals pending on capitol hill going through. talking about extending payroll tax cut expiring soon. they think that will help people with their pocketbooks. end of the day, people like larry summers, former top economic advisor here with a

"washington post" op-ed said looking like one in three chance of a double-dip recession right now in the united states. those are strong words. jay carney said they're not worried about a double-dip recession but we shall see, shannon. shannon: we shall see. ed henry at the white house, thank you so much, ed. private companies added 114,000 jobs last month that is still well below the rate that signifies a healthy jobs market. we'll talk to former howard dean campaign advisor joe trippi and how this campaign can get us there. fox extreme weather alert. a video after tornado touching down in florida. this is home video catching funnel cloud as it forms and starts to move. the twister leaving a trail of damage and debris in its wake. thankfully there are no injuries to report. there are new concerns for florida and other parts of the southeast that they could be in the path of emily. right now she is a tropical storm bearing down on the dominican republic and

haiti. janice dean always watching it all. she has it live in the fox weathering center. i understand we have a update that came in moments ago. >> yes, ma'am. 50 mile-an-hour winds. it really hasn't changed. as you see on the satellite imagery the storm is kind of disorganized. the center of circulation is displaced from the shower and thunderstorm activity. you need the shower and thunderstorm activity wrap around the circulation. this is ultimately kind of good news. this storm is falling apart. it does have to make its way across hispaniola, dominican republic and haiti and we'll see what shape the storm is in after that and than we can really forecast what will happen in the next 24 to 48 hours. take a look what we'll see in terms of heavy rainfall across hispaniola. looks like the bulk of the rainfall across the dominican republic, which is good news for earthquake ravaged haiti. they don't need to see flash flooding and potential for landslides and mudslides. up to 20 inches of rainfall which could be devastating

for the folks in the dominican republic lick and part of puerto rico as well and moving towards the bahamas. once the center of circulation makes its way across his pan lola we'll get a handle what the storm will do. here are the latest computer models. we're coming to some kind of consensus across the bahamas. maybe south florida. and then hugging the coastline across the southeast up towards the mid-atlantic. until this center of circulation makes its way across hispaniola i'm not really confident in the forecast models. here's the latest track from the national hurricane center. still a tropical storm making its way across and then eventually becoming a hurricane as it moves eastward of the mid-atlantic states. but again, shannon, i think the next 24, 48 hours will really be crucial determining where this storm is going to go. certainly florida and the southeast really need to watch emily. shannon: we'll check in with you for the latest, shannon. thanks so much. right now emily is not the openly weather concern for

the u.s. extreme heat continues to be a serious threat in some areas. in july alone the u.s. broke nearly 2700 temperature records all across the country. dallas alone experiencing more than a month of 100-degree plus temperatures. all of texas dealing with what is labeled, quote, exceptional drought. that is the most urgent kind. the heat turning deadly. the high mercury blamed for death of a high school coach. many times out there are taking extra precautions. >> tell them if they're overheated and go talk to them. make sure they sit out for a few minutes to cool off. >> it was hot, but we didn't realize it. we have only one or two water break as practice. i don't know how we survived that. shannon: live in dallas with more. hi, chris. >> reporter: hi, there, shannon. today's forecasted high in dallas is 110 degrees. it is so hot and so dry down here in the lone star state that pastors across the state are actually encouraging parishioners to pray for rain.

you mentioned sports teams. look at this video here. this is in lewisville north of dallas. they implemented a heat policy. unlike the student you heard a second ago, coaches in lewisville are forced to stop practice every 20 minutes for water breaks. here is what one mom told me. >> it was scary back in 80, 1981 it was bad. it is really hot. with a little water we can get through it. >> reporter: dallas county is already reporting 12 heat-related deaths three more than all of last year. we're three days into august which is typically the hottest month of the year. the state's power grid is getting a workout. yesterday, 6,000 customers lost power in dallas when a substation failed. shannon, believe me it is extremely, extremely hot down here. shannon: so dangerous. kris gutierrez, thank you. the heat creating problems of a different sort. the high temperatures are bringing out critters apparently on the hunt for something to drink.

unfortunately they're looking to quench their thirst inside people's homes. >> there's a ton of them right now. they're all eating my tomatoes. >> humidity is low outside and the rodents will try to find something in the home. shannon: experts say there are a few things you can do to minimize rodent risk. reducing vegetation around your home. ceiling up any holes around the pipes and of course setting up traps. this is a fox news alert. the feds now hunting for the source after killer salmonella outbreak linked to ground turkey. so far at least one person has died and 76 more have gotten sick over a total of 26 states since the outbreak began in march. doug mckelway has latest from washington. >> reporter: good afternoon, shannon. one thing that anybody who eats ground turkey should do to be perfectly safe, cook the turkey thoroughly. use a meat thermometer to make the center of the meat is the 165 degrees minimum. that said the detective work

continues on two paths to trace the origin of the tainted turkey. and trace the epidemiological nature of the salmonella strain. most troubling the strain is resistant to commonly prescribed antibiotics. critics of meat processing says this stems of practice treating all birds, even healthy ones with antibiotics unnecessarily. >> what we're creating here are super bugs. pathogens resistant to many antibiotics that are used to treat the resulting illnesses. only thing worse for a consumer told that you have salmonella being told that you are ill, being told the treatment options are dwindling. >> the giant minnesota-behaved meat processing company cargill has been contacted by usda as part of the salmonella investigation. but they have not been. texas has nine cases.

illinois seven. california six and pennsylvania five. but there are many more than that in other states. the illnesses, date back to the month of march but the public at large is now only learning of it in recent days. three samples were linked to the same production establishment but government officials have not named the retailers are no the manufacturers involved. we have asked the usda to respond to some of the public's concerns about the outbreak. they responded to just a short time ago saying quote, we'll be happy to get back to you later in the day when we have more information ourselves. some food safety advocates say three positive samples should prompt a recall but that has not yet happened. shannon? shannon: doug, we know you are keeping an eye on it. thank you so much. as doug said the usda is racing to pinpoint the source of the deadly salmonella outbreak. if you want to learn more head to foxnews.com. you can get more information what states are affected and happening now. she vanished off the face of the earth until now.

where casey anthony turned up and why her lawyer is in fear of her life. you would be hard-pressed to find someone without a mobile device but is that your god-given right to reach out and touch someone with a cell phone for free? don't kid yourself, that tsa agent doesn't really care about your trip to disney. they're scoping you out.

shannon: more people are renewsing to work on rebuilding the world trade center. two dozen carpenters showing solidarity with cement workers. hundreds of cement workers stopped work on monday at one world trade center slowing construction. they're in the middle of contract negotiations. the main issue? demands they accept lower

pay. casey anthony has been sported for the first time since she was set free. the 25-year-old seen in ohio according to celebrity website, tmz dot-com. she was acquitted last month on charges thee murdered her daughter. meantime a new issue for anthony. the judge who ordered her to return to florida to serve a 1-year probation term stepped down from the case. she is expected in a florida courtroom tomorrow. not sure if she is going to show but trace gallagher is tracking it all in our west coast bureau. hi, trace. >> reporter: she is expected in the courtroom tomorrow morning in orlando at 10:00. past ten ten days she has been disappeared. she was shopping around ohio. now she does have relatives there but not as if they're rolling out the red carpet for her. george anthony's sister, her aunt lives in canfield but she was outraged at casey's defense attorney accusedded george anthony of molesting her for years.

another family member lives in columbus but she accused the casey dancing on caylee's grave. there is not a lot of love lost there. casey was supposed to go back to orlando or is going to go back to orlando whoever you're listening to because of a probation in an unrelated case. but her attorneys say if she goes back she is in great danger. here is jose baez on "the today show.". listen. >> they had to shut down streets for us to leave orlando. i certainly don't think that is something they want to embrace for her to come back. it's a bad situation. this thing is over and done. and, for some reason, things seem to keep coming up again for no apparent reason. >> reporter: now the reason the judge who ordered casey back to orlando has recused himself is because previously he made some prejudicial statements against her but as it stands, casey anthony is set to be back in an orlando courtroom

10:00 tomorrow morning, shannon. we'll see if she shows. shannon: we'll be on it. we know you as well. trace, thanks so much. >> reporter: okay. shannon: we're getting word in a few moments we would hear remarks from the president in a cabinet meeting today. we understand he addressed both the debt issue and faa budget showdown. we'll have that for you in moments. and is there a ufo resting on the ocean floor? up next we'll show you new video that inspired that question and detail the effort to figure out what that is. plus new video what is believed to be a violent government crackdown, ordinary people risking their lives for freedom. in three minutes, the disturbing information we're learning about their struggle. [shouting] shannon: this is a fox news alert. we actually have the video we told you about. this is coming into the fox newsroom. president obama making

remarks about the economy and newly-passed debt deal. let's take a listen in. this is from a cabinet meeting. remarks by the president there. [laughter] >> all right. everybody ready? well obviously it has been an eventful last few days. as i said yesterday, we have now averted what could have been a disasterous blow to the economy and we have identified, on the front end over a trillion dollars in spending reductions that can be done sensibly and safely without affecting core programs and we now have a committee process in congress that is charged to find additional savings. it is going to be challenging work and i'm encouraging congress to take it with it most seriousness. in the meantime, the

american people have been continuing to worry about the underlying state of the economy, about jobs, about, their wages, about reduced hours, about fewer customers. the economy is still weakened, partly because of many so things we couldn't control, like the japanese earthquake and the situation in europe a as well as the arab spring and its effect on oil prices. unfortunately the debt ceiling crisis over the last month i think has ad an unnecessary negative impact on the economy here as well. so, i'm meeting with my cabinet here to make sure that even as they have been throughout these last several weeks, they are redoubling their efforts to focus on what matters most to the american people, and that is how are we going to put people back to work, how are we going to raise their wages, increase their

security, how are we going to make sure that they recover fully as families and as communities from the worst recession we've had since the great depression. a good example of how undone work here countdown clock can have an adverse impact on the economy is what is going on with the federal aviation administration, and i'm going to be hearing from ray lahood about the situation that is looming as a consequence of congress not acting. some of you may be aware of the fact that the faa routinely gets, gets its authorities extended through congress. it has happened 20 times since 2007. this time congress has decided to play some politics with it and as a consequence, they left town without getting this extension done. here's what this means. thousands of faa workers

being furloughed, including safety inspectors. it also means projects all across the country involving tens of thousands of construction workers being suspended because congress didn't get its work done. and that means folks who are on construction sites, doing work, bringing home a paycheck, now potentially find themselves going home without one, and important projects all across the country are left undone. here's what also happens. it turns out that this extension is gives the authority to collect fees from airlines. the airlines are still collecting these fees because it is priced into their tickets but they're not turning them over to the federal government. the federal government stands to lose $200 million a week. that would be a billion dollars at a time when we're worrying about how we pay for everything from education to head start and

we don't anticipate it's going to be easy to get that money back, even though the airlines are collecting it, they're keeping it. so, this is a lose, lose, lose, situation that can be easily solved if congress gets back into town and does its job, and they don't even have to come back into town. the house and the senate could, through a procedural agreement, basically do this through unanimous consent and they can have the fights they want to have when they get back. don't put the livelihoods of thousands of people at risk. don't put projects at risk and don't let a billion dollars at a time when we're scrambling for every dollar we can get left on the table because congress did not act. so, i'm urging the house and the senate to take care of this. this is an example of a self-inflicted wound that is unnecessary and my

expectation and i think the american people's expectation is that this gets resolved before the end of this week. all right? thank you very much, everybody. thank you. >> thank you. >> can you -- [inaudible] >> i have made calls to key leaders and i am urging them to get this done. but this is, as i said, not the kind of situation that is complicated. all they have to do is do what they have done 20 times since 2007. there's not a big issue in terms of drafting legislation or arguing about the details of policy. just do what they have done in the past, to make sure these folks are on the job, including, looking after the safety of our airlines. all right? thank you very much. >> [inaudible]. >> thank you, thank you. >> i'm going to get advice from some around the table, about how to handle this

milestone. shannon: all right. the president talking with members of his cabinet. in addition to his birthday you heard him talking all about jobs earlier today. america's largest payroll processor, adp, reported that private companies added 1124,000 jobs last month that is more than analysts expected but far below what is considered a healthy jobs market. it is a issue that dodged the white house, it has dogged them almost since day one. >> jobs must be our number one focus in 2010. that's why my administration remains focused every single day on pushing this economy forward. all these investments in innovation, education, and infrastructure, will make america a better place to do business and create jobs. making sure jobs are available, is the first thing i think about when i wake up in the morning and last thing i think about when i go to bed each night. not a day goes by i'm not focused on your jobs, your hopes and your dreams.

and in the coming months i will continue also to fight for what the american people care most about, new jobs, higher wages, and faster economic growth. shannon: let's talk about it with joe trippi, fox news contributor and former campaign manager to presidential candidate howard dean. thanks for joining us. >> good to be with you, shanl none. shannon: in the remarks we heard from the president in his cabinet meeting what american people care about is the economy, jobs and their wages. what can the administration do to jump-start the efforts and tried so far to turn these numbers around? >> i mean they have got to get, they have have to get jobs back on the burner. obviously the debt crisis took everybody's attention off this, i think not good for the administration at all. and now, with the faa situation, which really there are going to be tens of thousands of construction workers that aren't going to work because of congress's failure to pass the

extension, things are just, could get a lot worse before they get better. and that will not be good for the administration. they have to get something, nothing they have done has worked in materials of people at home feeling like the economy is getting better and their job situation is getting better. that will not be good going into november until that turns around very quickly. shannon: public perception is definitely negative at this point. you have unemployment staying above 9%. for every job opening in the u.s. there are 4.7 people unemployed. not only dealing with the content of this, this administration has to deal with the pr side of it, the perception. do you think that the public is starting to feel like this administration or president doesn't know how to turn things around? >> i think there's definitely, you know, negative impact on his job rating and on his approval rating but, when you look at it, you know, they have heard government officials over and over again say, summer of recovery. different things saying we're right around the corner, it is going to turn. i think they're starting to

lose patience with that. okay, let's look at summer of recovery and let's hope it turns and it doesn't. now i think the problem is, we know as somebody who practices politics in presidential campaigns what you know it takes about six months, if the economy turned on a dime tomorrow it takes six months before working folks feel the economy has turned and they can be confident in their job future and that the country is moving forward. which means if it doesn't start turning soon, the economy is going to be a drag not just on people at home but on the president's re-election prospects. he has got to start turning it around. i do believe him when he says his focus every day is jobs, jobs, jobs. i think that is true. so far it hasn't been working at least as far as the american people are concerned. shannon: you mentioned the promises made this will be summer of recovery or things are just around the corner. but when things aren't changing and numbers continue to come in be negative. manufacturing numbers down, service sector numbers down,

unemployment up, how do you deal with a re-election campaign? what advice would you give? is it better to underpromise or overdeliver or continuing makes promise we're almost there that it is going to happen? >> as a president you have to try to do both things. unfortunately as president you have to try to encourage people. it is, a lot of this is psychology to some extent. if people feel more confident they will start to spend and companies will start to hire. if though feel shaky and a lot of uncertainty that happened during the debt debate played into this, people hold back. and so, you know, from the president's point of view, as president of the united states, he has got to encourage people and talk about a better future. and mean it. and hope people buy into that. on the other hand, the people are going to be sitting here saying look, we first, a lot of people blamed it on the bush administration, on their policies. give you the benefit of the doubt, what are you going to do? sooner or later it is on his watch. i think we got there. it is now his economy and

people are going to give him the benefit of the doubt for a little bit longer but it is really got to turn. there has got to be some progress. i don't think we need to get back to the, 8% unemployment by election day but there has got to be a trend. the trend has to go back when, the statement that you were showing us the president was making it. unemployment was going down there for a little bit. now it started to creep up. if it is creeping up, that will be very bad. if it is starting to move down again i think he will be reelected and people will buy into the uptrend. shannon: well it would be a great relief to americans all across the country to see that number moving in the other direction. joe trippy, thank you as always for joining us. >> thanks, shannon. shannon: we have breaking news last hour on possible multi-billion dollar bailout for troubled homeowners. should banks help troubled homeowners when there is no break for people who managed to keep up on their payments? the debate is next.

tsa has a whole new approach for stopping potential terrorists before they board a plaenl. next, the behavior cops hit the beat

shannon: after taking a lot of recent heat for see through your clothes scanners and very personal

pat-downs the tsa is trying a new approach to air security. it involves specially trained agents chatting up flyers before they leave the ground. trace gallagher picks up the story from the west coast. >> reporter: shannon, happening at logan airport in boston where two of the 9/11 hijack planes originated. they will try it out 60 days and if it works they might expand to other airports across the country. it starts out as casual conversation between tsa and passengers. something like, where are you going, where have you been. they're looking for tension and fear and suspicious behavior. if they see something they do not like, then passengers would go on to an extended conversation with a questions would be a little bit more in depth. they would also face a additional screening. listen. >> our workforce has been accustomed to screening everybody through the same standards, to the same level with the same technologies. with very little variance. that's fine except we're

probably spending too much on time on a lot of the population. >> reporter: they are modeling this program after israeli security at ben gurion airport. i've been through there several times. the extensive questioning goes on for a long time there. they ask you things like, where have you been? how come you're here? they will ask you the same questions over and over again, but privacy advocates say they can't do what they're doing at ben gurion here because they use profiling there. they ask a lot of intrusive questions. not to mention a time issue. remember, israel, ben gurion screens about 100 flights a day. logan airport screens more than 500 flights a day to expand this to a lot of other airports, they say would be a major time constraint. but if it works at logan they may put this in bits and pieces around much of the united states, shannon. shannon: we'll keep an eye on it. thanks, trace. >> reporter: ok. shannon: we're getting new

rereports of a big bailout in the works for america's struggling homeowners. "wall street journal" reports that bank of america is working with the feds on a multibillion-dollar loan forgiveness plan for homeowners having difficulty with their mortgages but should they do that? we'll talk with adam bailey, real estate attorney and finding uncommon deal. gentlemen, let's talk about it. adam, first of all how would you feel if you someone kept on your payments knowing others will get bailed out, why should you be supportive if you have kept up with your bills? >> i'm not supportive of anytime the government interfierce with the free market system and contractual relations. the people borrowing money made deals with banks. they should follow them. that being said, looks like this bailout isn't a bailout. it is actually congress or obama administration asking the lenders to take a haircut and make more reasonable refinancing modifications with the actual borrowers. shannon: neil, are they asking?

what's the motivation here? why would these companies be willing to go alongwith this? >> first of all i would like to say that the concepts here are pretty complex, but we get back to something that's very easy to understand and that this is just morally wrong. so every american understands this. yes, people are going to have to take a haircut here, i agree with the previous cut. just like me i had a big haircut and they have to fess up to the big losses in a big way but this is not how we win the future, by making, americans wards of the state and just expecting the next handout. do they want health care? give them health care. do they need a car? give them a car. do they need a house? give them a house. do they mead a mansion? give them a mansion. why the companies would go alongwith it. they will have to take a haircut anyway. they are expecting the government to come out with billions of dollars for forgiveness for them. shannon: adam, they're

reporting reason some of these banks may be willing to go off with this a way to stave off future litigation or claims against them or fines against them from the government. do you feel like that is the appropriate struck tour it ask the banks to make major changes? >> that is tough question yes or no. the banks do not have house in order and they do not. they need foreclosures to get done with. if they don't have right documentation to foreclose on homes they will not be able to. almost good for a make a deal in foreclosure get the properties on market in hands of people that can afford them, versus making some deals and losing money and making a lot of vacation. this isn't good guyed bad guy, free market system, make the deal to get the foreclosures done. people can afford into the homes and get the economy on the way back where it should be. shannon: neil, do you think there should be time type of framework? what would you like to have built into the forgiveness programs? you and others talked about

frequently people made bad decisions and got into homes they could afford and maintaining lifestyle at this point and if they get bailed out that's a bonus for them? >> it absolutely is. we're telling our people it is okay to make bad decisions because the government is going to be there to pick you up. and, yes, the banks are going alongwith it because one way or another, they're not going to be paying the penalties by not having the correct files. and who will get passed along with all of this money that the government ultimately will bail out another industry or bail out number two for the bank industry? it is going to be the people who paid their bills. it will be the good people who have done the right thing, who have acted responsibly and all of this costs one way or another will go to them. this is not how we win the future. this is not how we act as an economic superpower. those who made mistakes, they will have to fess up, pick themselves up and move on. it is only way we'll get this economy back on its feet. obviously markets don't like

what is going on here. this is just another step in this socialist states of america policies that this government is forcing upon us. let's get back to being the united states of america where we take responsibility for our actions. shannon: pretty tough language there. do you think it is a fair point? >> right. shannon: if the banks write this off, does that go into the net they are world or is that cost going to show up somewhere for somebody else? >> exactly exact opposite what he is saying. what the government, fannie mae lost $8 billion from march, april, may and we think june. $8 billion a month. so no one is asking to give more money to fannie mae. if anything in october we're taking away fannie may money and lowering jumbo loans and depending where you live from 729 to 625 or 415,000. meaning that it is harder to get a loan as of october. the government is pulling out of government, making loans and what it is saying is, we're going to make it

harder for you to get a loan. you need higher credit. you need more money in the bank. with all that being said, then hopefully only those people that deserve loans actually get them. at the same time, that is going to lower home prices which will really hurt the equity in homes and what it will really hurt? the big elephant in the room, the economy. less people afford homes. buying things to fill their homes. shannon: last thing anybody wants. thank you both for a spirited debate. >> thank you for having me. >> thank you. >> mystery at the bottom of the sea. look closely. does it look like a ufo? some people think that might be exactly what this is. coming up how one group of explorers wants to find out for certain. should having a cell phone be a civil right for those who can't afford one? in three minutes, the debate overusing your dollars for free cell service. even if it raises your costs.

shannon: a georgia woman in police custody accused of killing her disabled boyfriend with a stiletto heel. they said she hit her boyfriend with a shoe during a fight in the trailer sunday night. police didn't tell them about the body until monday and he was dead by the time paramedics arrived. neighbor said carter appeared frantic and scared. >> she came up to the door and disoriented 911, i need 911. she didn't seem truly upset. she seemed distraught. shannon: carter left the home after the argument and returned to find her boyfriend dead. police are awaiting autopsy results to determine just how he died. new reaction to the debate over a controversial call. free cell phones going to some people who otherwise couldn't afford them, with

the help of a federal program called the universal service fund. some folks on public assistance get a handset and monthly minutes without having to pay for them. someone else does and it may be you. david selig a federal tax practitioner and small businessman and gary carter manager of national participations for assurance. welcome to you both. >> hello. >> hello, thank you. shannon: gary, tell us a little bit about the program and exactly how it gets funded from what you know? >> yes of the assurance wireless is part of lifeline services program. telecommunications companies offer lifeline assistance to low-income families. it is a free phone in our case with 250 minutes of voice minutes each month. shannon: okay. according to the reporting on this, the government is requiring telecommunications companies to provide that service. is that accurate? is this a government mandate for you? >> so this occurred during the reagan administration. part of the

telecommunications ability, that low-income families would have the opportunity to have a discounted land line service in that case. so, what it grew from was the creation of the universal service fund. each telecommunication company provides funding into this fund and programs like, assurance wireless or lifeline, are reimbursed, the fund come out of that to help pay for that. shannon: david, what do you think of the program? sound like a good deal for you?. >> no it is not and i think outrageous first of all sullying ronald reagan trying to make this analogy. what you're having now the federal government extorting public companies, telling them to put money into a pool that will be paid over to provide a fee benefit to individuals who really don't deserve something free on the taxpayer's nickel. how does the taxpayer directly pay for it? because these businesses will treat the expense as an

ordinary and necessary expense under section 162 of the internnal revenue code. it is just a shakedown. let these individuals pay for their own phones. we already have enough budgetary problems. and this type of failed, social planning and thinking has driven us to the bring of bankruptcy. shannon: gary, is it accurate to say those costs are going to show up somewhere else for the average consumer who is paying a tul-priced bill? >> no. actually, it is a little bit distorted. what's happening here the telecommunications companies, they put the money into the universal service fund. it is not a tax. what happens is, programs like assurance wireless, the funding for that comes from that fund. so the telecommunications companies actually contribute to the usf. or universal service fund. shannon: that is money out of their pocket. you can understand why there would be skeptics who would think they will pass that cost along to consumers.

>> so what happens is, consumers do contribute to the usf, whether they have a home phone or whether they have a, what we call pre-paid cell phone. so when you see on your phone bill there will be a usf charge. that is what folks are contributing to pay into the fund. shannon: all right, david, that sounds like it matches up with your theory. >> that's exactly right. i think this individual is either deliberately misleading your viewing audience or has the business acumen of a wood tick, because they are passing expenses on to hard-working americans, who have to pay all of their bills themselves and additionally the companies are going to deduct these expenses and who is going to foot the bill again? the american taxpayer. it is a lousy idea. it should be nipped in the bud immediately. shannon: gary, accusations there i give you final word there to respond. >> yeah, actually it is a great program because folks who are actual outlooking for work -- >> they're not looking for work. if they were they would be

working. shannon: let gary finish the thought. we'll wrap it up, gentlemen. >> yeah. sew we've seen where people who acquire assurance wireless, one gentleman in baltimore, maryland lost his job. became eligible for assurance wireless. applied for the program. received the phone. out looking for work and actually got a call back from a employer two months after receiving the phone. this is a very beneficial program for those who need it. shannon: i see the skepticism on david's face. we have to leave it there, david, gary. >> thank you. shannon: thanks. well it looks like the millennium falcon from "star wars" but it is sitting on the bottom of the ocean. did swedish explorers just find a ufo?

shannon: swedish ocean exploration team finds something fit for the "x-files" during exploration in the baltic sea. they captured a sonar image after circular object 300 feet down on the seafloor. trace gallagher live from the west coast newsroom with what some are saying are is under water ufo, trace? >> reporter: it reilly does. they don't specialize looking for ufos and they look for buried treasure and recently found very rare champagne at the bottom of the sea. they came across this. this is sonar image, 300 feet down. not just any ufo by the way. this thing looks like the millennium falcon, right? hans solo millennium falcon from as far wars fame. that is the millennium

falcon looks like. it is george lucas's imaginary millennium falcon. if you had a top view looks almost like the thing on the left. skid marks are going off to the left of the runway. it is actually 180 feet wide. that is the wingspan of a 747. kind of hard to tell. if you look at them side by side especially top down they would look very similar. the truth this could be a sunken vessel. could be archaeological site. could be a million things but not nearly as much fun as thinking it is hans solo's spaceship down there. is that chewbacca on the left? shannon: sort the furry. >> it is a theory anyway, right? may not be a good one but it is interesting. they said they would check it out further but no they would go off. actually they will take a closer picture of this. when we verify the thing is legit we'll show it to you.

shannon: thanks, trace. we're getting word prosecutors are resting their case in the sexual assault trial after poe little history -- polygamist cult leader warren jeffs. the latest coming up [ rge ] psst. constated? phillips' caplet use gnesium, an ingredient that works more naturally wityour colon than stimulant xatives, for fective reli of constipation without cramps. thanks. [ professor ] good morning students. today, we're gonna...

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