dowd for the first time in history. that does it for us, i'm eric shawn i'll be back from 4 to 6 p.m.. >> jamie: i'm jamie colby have a great day, take care. >> the drop heard around the world. all eyes looking overseas to see how foreign markets react. already bad news out of israel watch about nervous investors here at home? are we going to be in for a market mess? the downgrade blame game is in full effect in washington on the campaign trail as well. i'm shannon bream. we know you are concerned what it means for your -- for your families. the next two hours experts from both sides of the aisle. brenda, hello. >> all the warnings from washington fueled the fear that no debt deal, big downgrade. instead, the deal was done but

the downgrade still hit. s&p one of the three major rating agencies took down america's credit rating for the first time in history. why? not just because there wasn't enough cut from the deficit. but the answer involved a committee. a favorite cop-out in the capitol. seal a deal when no other compromise can be caught. what does it mean? look at first world markets trading in the mideast tumble on the first day of business, including in israel, which includes many tech stocks popular with american investors. no wonder there might be a global shake-out. bumping town the u.s. to a notch below the top rating for the -- first time in history money that much long term? many asian countries say they stan behind the safety of u.s. treasuries. they account for -- half of foreign owned u.s. debt and say they are likely to keep

their treasury holdings for now. so too european governments showing confidence in the world's largest economy, again for now. we may see small investors run there, because even though a debt downgrade almost always means higher interest rates that could hit average americans in mortgages, credit card rates, auto loans. maybe perhaps a good time to start dealing with those credit card balances. get help from counselors who can help with debt. two of the major rating as agencies affirm the safety of the u.s. debt, s&p's biased is to take the u.s. rating lower. the world's leading economy -- economies, discussing today the stability of the markets. asian markets opening this evening. japan lost ground in past week. u.s. markets in correction mode losing more than 10%. the most since the meltdown in 2008. will the fed jump in with more help?

can washington patch up the damage it has done? u.s. investors will be watching carefully. traditionally in downs like this, a smart, big investor says stocks are cheaper and jumps in. you might want to wait until you see such action before you make sufficient a move. shannon, back to you. >> shannon: now that the s&p has downgraded us we heard talk about how long it could take to earn back a aaa. that it may require severe choices and changes. what is the prospect for us possibly regaining that? >> it was a very, very dramatic move. i think the biased right now is to take it lower. i think it would take tremendous work by this committee to actually cut the debt. it might mean higher tax increases. that hasn't been said that is the other side of lower spending to raise taxes. that of course won't go over

well with lots of voters. again, it is politics mixed with money mixed with the s&p has been kind of after u.s. debt for quite a while. moody's and fitch, the other two agencies, have not been -- done anything on the debt yet. if one of those do, it could be a much more serious implication. >> shannon: brenda buttner, thank you. the head of standard & poor's tells fox the u.s. could be in for another downgrade. that has finger-pointing here in washington going into over drive. steve centanni has been monitoring the chatter. joins us with more on the blame game. >> reporter: lots of chatter. democrats and republicans blaming each other. david beers of standard & poor's says it is neither party. it is the financial and political landscape. he says it is a question of the worldwide economy too. >> a lot of what is worrying the markets is the unfolding

story in europe. also, a perception a global perspective that the world economy may be slowing. i think the markets are reacting to a lot of factors not just what s&p said friday. >> reporter: beers suggest another downgrade is not out of the question. he predicts the debt burden of the u.s. government will continue rising for some years to come. for the political finger-pointing it 10 to be harsh with senator kerry laying the blame squarely on the tea party. >> there were some people in the republican party being, and mitch mcconnell admitted this, who wanted to default. he said there were people in his party who were willing to shoot the hostage. in the end they found the hostage was worth ransoming. this is not about ransom. this is about our nation. >> reporter: presidential candidate mccain said the white house is to blame for our current crisis. he reacted to kerry's

accusation. >> i think it has failed presidential leadership when you don't put forward a plan, a specific proposal to work off. previous presidents certainly have when we are in a crisis. by the way, talking about hostages? lately the democrats have been calling us terrorists. we need to lower that level of rhetoric. >> reporter: house budget committee chairman paul ryan republican from wisconsin says, both parties are to blame for the credit down . lots of reaction on capitol hill. >> shannon: thanks steve. john boehner says the s&p decision is a consequence of out of control spending and blames democrats. saying: democrats had who run washington are unwilling to make tough choices. joining us congressman charlie rangel. we just talked about the blame game. is there plenty to go around for both parties? >> you stole the words right from my mouth.

first of all, investors don't look for democrats or republicans or house members or senate members or the president. this is our government. and it is not just the deficit, i am convinced that this is the safest place in the entire world for investors. had they seen an internal political struggle where certain people wanted to prove their strength by threatening and in fact putting us on the brink of economic destruction, you cannot blame somebody for saying that our markets are not as stable as they should be. it is not republicans and democrats. it is some way that we have to get ourselves working together as a country. >> shannon: i want to talk about some of the rhetoric over the past couple of weeks. that seems like it is building a wall between the two sides. you said this week or quoted as saying the gop mugged the president, but let him keep

his wedding ring. we heard gun to the head. hostage-takers, terrorists. any chance we can breakthrough and find common ground? >> we can't breakthrough it unless common sense enters the picture. any time you owe as much money as we do, it is abundantly clear that you cannot cut your way out of it. the reason why they won't put revenue on the table is it is ill logical makes no sense that we have to close up the inequities in the tax system, close the loopholes. there's a trillion in there where people that pay little or no taxes. and the wealthy haven't had a tax break like this since the 1950s. you can't say my way or the highway. we can't say all of it is going to be taxes. and the republicans can't say all of it has to be cuts. we have to come together as a family and say, we need both. we have to stop this reckless spending.

and have a fair reform tax system. >> shannon: some of the conversations happen between the super committee that will have republicans and democrats sitting down to find major cuts in savings before thanksgiving. do you have confidence in that committee? who would you like to see appointed to it? >> whether i have confidence in the committee depends on who the committee is. people forget that even though the public kicked out the democrats, at leave in the house of representatives, they get another crack at this thing in 2012. that's a new congress and a new ballgame. having 12 people that you and i don't even know who they are from the house and senate, determine the economic destiny of the united states of america, to me is a complete forfeiture of our responsibilities as members of congress. i am awkwardly embarrassed.

>> shannon: i'm guessing that you are not looking for an invite to the committee. congressman rangel, great to see you, have a great day. >> thank you. >> shannon: one colleague from across the aisle says secretary geithner has to go. he sent out this tweet saying: >> shannon: fair and balanceds -- and balanced. we talk him in our next hour. >> right now 45,000 union workers on strike at verizon demanding the company soften its stance on labor contract negotiations with rise of cell phones the land line business is in decline. the company is looking for health care, pension and work rule concessions. verizon has a plan in place to limit disruptions for customers. >> fierce fighting in the same

area of afghanistan where what is now the deadliest single loss for american forces in afghanistan took place. 30 americans mostly special operation troops from seal team 6 were killed in a helicopter crash. the taliban is claiming responsibility. conor powell is streaming live with the latest. >> reporter: the taliban were quick yesterday to claim credit for shooting down the chinook helicopter that had 30 americans and one interpreter and several afghan troops on it. details are sketchy. the taliban claim and u.s. military officials are not , not confirming yet, but there does appear to be truth in the claims taliban shot down the chinook with a rocket propelled grenade this is an area southwest of kabul. it has a long history of taliban insurgency. an area where there has been

heavy fighting for years. the operation to recover this helicopter is underway. it is going slowly according to military officials in part because of the ter -- terrain but because the taliban has stepped up fighting trying didn't troops getting in there. no easy task this is the single largest death toll for american troops in afghanistan since the war started 10 years ago. it is a devastating blow to the small, very tight-knit u.s. special forces unit here in afghanistan. >> shannon: thank you so much. >> darkest day of a dark conflict. that's how boehner is reacting to the news of the deadly crash in afghanistan. he's not the only one speaking out. peter doocy joins us with more reaction. >> reporter: echoing what the republican speaker of the house said. john kerry also the chairman of the senate foreign relations committee said his

first thought about this tragic crash is one of sadness and sorrow. in spite of that it is important to step back and look at what the combo of american and afghan casualties shows. he says it is proof our hand-off of control isn't just being talked about it is happening. >> we are in a transition in afghanistan. the effort that they are making there is one that is important to our national security, in this transition, notice there were seven afghan there is, members of a commando force. part of the transition that is taking place. i think we have to find out exactly what happen. i'm going to be very interested to see who might have been involved. >> reporter: senator kerry touched on the troop draw down. he said america isn't totally pulling out just enough to keep the taliban from taking over. john mccann thinks president obama is going --

john mccain thinks president obama is going to fast. and we run the risk of erasing gains we've made and looking weak. >> we've made significant successes. our prayers and thoughts go out to the families of those brave, brave elite of our elite that have sacrificed. at the same time, we have to address the sanctuary situation and we have to address the problem that the president has created. that is, that out there, there's the perception, afghanistan and other parts of the country of that part of the world that america is withdrawing. that can't be good. >> reporter: senator mccain said it is important that we don't condemn the afghan people to the rule of the taliban. he suggested that is possible if we don't withdraw from the country the right way. this morning, different ideas about strategy over there but, the same sadfii sentiment about all the machine we lost in that crash. >> shannon: peter, thank you.

>> no relief for much of the country sizzling in dangerous heat. south sweltering for its 46th day. rick is in the fox weather center with the forecast. >> that's dallas 36 days over 100°. wichita falls 46 days. last time below 100° for a daytime high was june 21st. the entire summer has been hot. morning temperatures already still before noon 100° in little rock, 94 in dallas, 94 in shreveport. humid on top of that so it feels over 100. next five days for dallas, tuesday high for the week 109. if we get to friday with triple digits that will tie the 42 day record set back in 1980, 32 years ago. i'm sure that is going to be the case. there aren't changes in sight. look at texas, no rain to be

had. you are getting it everywhere around it. high pressure holding rain away. to the north and east of it a lot of showers, thunderstorm, some will be severe at times across the ohio valley into the northern plains. this morning, big showers moved through the northeast. more behind that building, will pull in by in afternoon across a lot of the south, humid, hot, summer. a lot of people will be dealing with showers and storms. >> shannon: thank you rick. >> touching graduation at university of alabama. donning caps and gowns, they were able to get their diplomas months after a deadly tornado tore through tuscaloosa. part of a series of 62 tornadoes that hit in april. the six students that didn't survive the storms were honored with posthumous degrees. >> friday's aaa downgrade has everyone pointing finger. the man who oversees standard

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>> shannon: we are learning more about the violent riots in north london during a memorial service for a man shot by police after an attempted arrest. cars and shops were set on fire. 42 people were arrested. whrol authorities are still investigating. -- local authorities are still investigating.

>> i do believe that getting a trajectory in place, real entitlement reform that shows the world and the country we are getting our debt under control. >> we have a negative outlook on the rating. that means that we think the risk currently for the rating are to the downside. >> shannon: how will the u.s. and world economies be affected by the downgrade? i spoke with chris wallace about the latest debate consuming washington. on the heels of the downgrade by the s&p you had a man very important to this process david beers to talk about where it stands now and the future? >> right. this is a big symbolic deal. for the first time in history the u.s. credit rating has been downgraded from aaa. s&p is saying that investing in u.s. treasury bonds is no longer one of the safest investments in the world. he didn't have i was going to

have an enormous impact immediately terps of higher interest rates for the treasury -- trying to borrow for is creditors trying to get a mortgage or car len. but it could impact -- or car loan. i asked given the situation which is more likely we get our aaa back or a further downgrade? he said our look is negative. it was more about the political disfunction in washington the economic numbers. he said given the political stalemate in this town the chances are greater we'll see a further downgrade. >> shannon: somebody who may find themselves in the middle of it, paul ryan you asked him about this super committee that is going to come together. these members of congress that supposed to find more cut to get us closer where we need to be whether he would be on if asked? >> he said he hasn't been asked. he said if he is asked, he

will join it. let me make a prediction, if there is one thing, take your money out of stock market, bet he will will be on the committee. he's mr. budget, trusted by the house republicans. he will be one of speaker boehner's three choices. i said to him, this is the group that has to come up with another trillion and a half dollars in debt reduction before thanksgiving. i said, if there were the opportunity for a grand bargain, he doesn't think there is going to be one. i said if there were the opportunity and you could get three or four dollars if cuts for a dollar in revenue increase, through where you would lower rates but do away with many so of the loopholes and deductions? he said yeah, if the spending cuts are serious and long term enough. i will consider so no new taxes is not a firm, final pledge. if the president still wants

that grand bargain, it is still out there. >> shannon: folks have to tune in to see your conversation with governor pawlenty. >> he's got a lot riding on iowa. >> shannon: thank you . >> this is the first president in the history of the country who under his watch, we have seen a downgrade of united states credit. >> shannon: congresswoman michelle bachmann taking a shot at. >> for the s&p credit downgrade. the s&p is pointing the finger at washington as a whole for not doing enough. could it affect sitting members of congress running for the white house? let's talk about it with our political panel. gentlemen, welcome to you both.

for some of the folks on the campaign trail they can pontificate, at least three had to vote on it. congressman paul and michelle bachmann both voting no. mccotter voting yes. how do you think that plays for them? >> i think it plays well. they were on the right side of the issue as they dealt it. we had a systemic debt problem in current and future spending. both party have to get together. congressman ryan was right when he said there is blame to go around. the question is, what is congress going to do about it? the next big budget battle is going to cop in the fall when we talk about the 2012 budget. we have some big issues. it is easy to be politician. hard to be a statesman. what america needs now more than ever is stayspeople who roll up their sleeves, give you go the -- give us the

tough love we need. >> shannon: a member of congress has to vote on things while campaigning. >> what brad said is right, time for statesmanship. unfortunate we didn't see any of it in the weeks up to the debt ceiling agreement. in fact, washington is involved in the blame game. before the blame game was the credit game. speaker of the house saying he got 98% of what he wanted in the deal. today's "washington post" has an ops boehner planned this for two years to make this a political issue. it is difficult for members of congress. everybody remembers senator mccain's decision to suspend his campaign to work on the washington reform deal that was a total failure. he looked inept on the trail and as senator and i don't think he has recovered since. >> shannon: the other side of the equation. the president running for

reelection. he's talking a bus tour next week through midwest swing states. the white house says it is not a campaign event because it is a presidential event and the president has a right to speak to the people of america. brad is it fair to characterize everything he does in the run up to the reelection as a campaign event? >> it is. he's announced candidate. my suggestion is mr. president save the taxpayers the expense. save the gas for your bus. get back to the white house. roll up your sleeves. you can't subcontract your leadership any more. you did it on health caregñ, budget and spending time for you mr. president to show leadership. get to the white house and get to work. >> shannon: david did he show leadership in one way by being out on the bus tour he wants to talk to people. >> there's no better way for the president to remain connected to the american

people. it is interesting that brad would call for a work ton-based solution when the republican party just runs against -- runs against washington constantly. >> david, it is called compromise. >> talking with americans and bringing those ideas he hears back to washington. >> thank you both. >> former governor pawlenty was a guest on fox news sunday. catch the interview with the head of standard & poor's david beers and congressman paul ryan right after our show. line-up stars at 2 p.m. eastern. >> the unemployment -- unemployment rate may have deposited what do the numbers mean? we talk to a chief economist. >> could the future of america's space travel be in the hands of the private sector now? former senator nelson has been a huge supporter of nasa and the space program. we talk to him about the

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>> shannon: operations have begun to recover the remains of the crash that left 38 dead. recovery efforts will not be easy. >> reporter: nato is still trying to figure pout if the taliban is responsible for taking down the chopper. 30 american forces and seven afghan troops were kill. now an after again official says there is fierce fighting in the area where it happened. >> s&p warning another u.s. credit downgrade could happen if the government fails to enforce tax cuts. a second downgrade would give the u.s. a aa rating the same grade as abu dhabi, bermuda and kuwait. >> american hikers detained in iran could get averted as

early as today. [ inaudible ] they've been held in iran for two years. the third hiker was released last year for medical reasons. >> the ladies of wisteria lane might be packing up. the drama desperate housewives is rumored to have one season left. abc has not commented. the network is scheduled to discuss the fall schedule at a news conference today. >> shannon: leaving a big hole in your sunday night viewing line-up. >> reporter: i know what will i do? luckily football is back. >> shannon: you men. >> right now invest for in the united states are watching -- investors in the united states are watching. >> panic might be the best

word to describe investors of the tel aviv stock market opened this morning. regulators stepped in to prevent an all-out crash. here in tel aviv we were down just about 7%. because the tel aviv stock market is one of the only major world markets open sunday it does give us a little insight into the psyche of investors what they are feeling what they are ordering brokers to do. it seems they were selling at whatever the price. some brokers were treating stocks like hot potatoes done 7% overall on the market. co-listed stocks were down from 5 to 7% that includes the pharmaceutical giant, banks down almost 9%. israel represents the largest number of foreign companies on the nasdaq. another thing fueling the uncertainty where the protest that took place last night

300,000 people took to the streets saying they were not happy about housing prices. what does this mean about the american market? right now it looks like private investors pulling their money out. institutions were the ones doing a little bargain hunting. >> shannon: leland vittert in jerusalem, thank you. the crisis involving the faa is over for now, bigger battles still ahead. we got unemployment numbers this week that showed a slight tick done. joining us is former u.s. chief economist under president george w. bush. -- let's talk about the unemployment number we got friday 9.1. does it tell us the whole story? >> it does not. the labor force participation rate also declined from 64.1% to 63.9%.

unemployment rate went down because many americans withdrew from the labor force. we have the lowest percentage of americans participating in the labor force since january of 1984. that's pretty low. that's a very sad commentary on what is going on in our labor markets today. >> shannon: we have to see at decision of a lot of jobs each month watch is the number we should be looking for if we are going to bring unemployment down more significantly? >> many people say we need 200,000, 225,000 jobs created every month. those kinds of figures. we are nowhere near that now. >> shannon: what can be done to encourage u.s. businesses to do more hiring? are there policies that could tweaked to try to turn things around? >> there are so many things we could be doing at no cost to turn things around. president obama could pick up the phone and call some of his cabinet secretaries. he could call epa

administrator and say why don't we hold off on those new ozone rules or clean air rules until the unemployment rate is down to 7%. he can call his interior secretary and allow more oil drilling in the gulf. the bp oil still a year and a half ago. tell his al labor relations bore, lay-off boeing. -- boeing wants to open a new plant in south carolina to bring and the national labor relations board says they can only open a new plant in washington state where they have their existing plan. the list can go on and on. each cabinet secretary is doing things that impede businesses from creating jobs. with this deficit and debt talk you might think to fix this costs millions or trillions, it doesn't. it takes one call from the president to make things easier on employers not hiring. >> shannon: each thing you

mentioned very controversial especially to his base. do you think it is possible he would be willing to that? >> it is a big disadvantage for the president running for reelection with and you rate around 9%. many of his base, many in the country want more jobs. they want to see their friends, neighbors, back to work. they want to see more opportunities. i think he would be better off if he abandoned some of the more restricted policies that his base wants and he would have a better chance to get erect -- to get reelected. free advice for president obama >> shannon: thanks. >> there could be one positive thing to come out of our economic uncertainty, lower gas prices. the slide of the stock market brought down the price of oil. prices could drop 35 cents a gallon in the next month. right now the national average

is $3.67 down three cents from last week. >> with the last shuttle mission officially in the books what is next for nasa? florida has a lot invested in space explore . florida senator nelson joins us live to talk about what is next. [ female announcer ] kiss everything you know about cookies goodbye. new newtons fruit thins. real blueberries and blueberry brown sugar... crispy whole grain. newtons fruit thins, one unique cookie. newtons fruit thins, motorcycles, boats, even rv's.

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>> shannon: heartwrenching new details with the lives of some of the navy seals who lost their lives in afghanistan. one of the 30 troops killed was aaron carson bond he asked the military to return him to combat and shipped out six weeks before he died. his grandmother says she is honored by his actions. >> i'm very proud of him. he was such a good boy. and he loved his country. enough to put his life on the line. i talked to him on his

birthday. he said granny, he said don't worry about me. i'm not afraid. because i know where i'm going. >> shannon: vaughn was a proud new father of a two-month-old girl. a decorated seal offered a noncombat role as instructor but turned it down to serve on the frontlines. . >> with the shuttle program a thing of the past, -- many are looking to private companies to come up with the next big thing that will take our astronauts into space. that cueds one senator who says there is still a lot that includes one senator who says there is still a lot to explore. senator nelson thank you for joining us. how concerned are you about the future of nasa and space exploration? >> we've got a vigorous space

program. i want to concur with your previous story. a story like that just cuts your heart out when you hear a grandmother talking like that. on the space program, you know we just launched a couple days ago to jupiter. next month there is going to be a launch to the moon. the following month, there's going to be an environmental polar satellite that will measure the earth's environment. then we are launching this just exceptionally exciting little rover. it is not so little, it is as big as a volkswagen. it is called curiosity. because it is going to run all over the surface of mars. it is going to help us understand what is happening there as we get ready to go to mars with humans. following that in december, we are going to launch the rocket that will take cargo to the

space station. that's one of the rocket that is competing with the announcement, a few days ago, by boeing, that they are going to launch americans to the space station by 2015. we've got a lot going on. >> shannon: something a lot of people may not know. you rode on columbia part of mission in 1986. the shuttle program is now closed. did you have mixed emotions about the end of that program? >> of course. quite a bit of emotion. when we landed 25 years ago, 10 days later our fellow crewmates launched on challenger and it blew up 10 miles high in the florida sky. we've seen an incredibly successful space shuttle program. 135 missions. but we lost two of those missions. and we lost 14 of our fellow space flyers.

>> shannon: while we have you, i have to ask you about the news this weekend about the s&p downgrade of our credit rating. how worried are you about the impact? how much are you worried about the blame that washington is taking in that? >> well, there's plenty of blame to go around. it didn't just start in the last few months. the question is, how do we get out of it? what we should do is and s&p has already said this, you do a grand bargain. you do a deficit reduction package in excess of four trillion dollars over the next 10 years and then everybody is going to rest easier. that's what a bunch of us, republicans and democrats in the senate have tried to do. i'm very hopeful that this super committee that is set up under the law that we passed, i'm hopeful that we are going to get an additional 2 1/2, 3

trillion dollars of debt reduction, reform the tax code by getting rid of a lot of tax preferences and using that revenue to lower the tax rates and simplify the tax brackets. you do all of that and america's economy will takeoff like wouldn't of these rockets we've been talking about. >> shannon: senator bill nelson out of florida, thank you for your time. >> thanks shannon. >> shannon: how important is iowa for a presidential candidate? then candidate mike huckabee relatively unknown before the 2007 iowa straw poll. second place showing there vaulted his campaign to a win in the important iowa caucus. next, we talk to huckabee's former campaign manager to see who he thinks is going to have success in the hawkeye state this time around. the stronger the rapids, the more we loved it. took some wild risks when i was young. but i was still taking a risk with my cholesterol. anyone with high cholesterol

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i wasn't sure that i would ever be able to love a state as much as i will have my home state of arkansas. but tonight, i love iowa a whole lot. [ applause ] >> shannon: mike huckabee went

on to win the iowa caucus in january 2008 not the gop nomination. how important is iowa for a presidential hopeful? let's ask a former campaign manager for mike huckabee. great to see you. let's start out by talking about some of the candidates who are not spending a lot of time in iowa you think of romney, huntsman, johnson are they cutting their also? >> they are. but i think it is a huge mistake to skip the early primary states, especially iowa. as you saw it give mike huckabee to get in the national arena and do well. governor romney gets a little buy since he participated the last time. for these other candidates a great chance to test organizational skills. >> shannon: there are folks who are not taking part in the straw poll because they are not in yet.

sarah palin, perry out of texas. do they miss out by not being in on this early activity? >> i think sarah palin is such a big name she can stay out and be okay. governor perry is the same way. here's been so much buzz with governor perry. i think governorbkd perry playig smart politics and maybe you will start hearing about him five minutes after the straw poll. talking about when and what he will do to get in the race in the next week or too. >> shannon: i want to look at the des moines register poll. it showed romney at 23%, behind him michelle bachmann 22%. the field drops off, herman cain in third, then single digits. who do you think has the most to gain or lose this week? >> without a doubt governor pawlenty all in iowa, trying

to put everything on the line without putting everything on the line. he does need a strong showing to get going. presidential campaigns don't lose, they run out of money. if you can't show organizational strength in iowa, he will run out of money that will be a big problem for him. the other next tier candidates like cain, santorum, some of those folks have an opportunity to show real organizational strength they have a lot to gain. if michelle bachmann does not win this, she has a lot to lose. everybody has a stake in this one. >> shannon: all right chip, i know you will be watching with the rest of us. thanks for your time. >> thank you. >> shannon: coming up in our next hour we talk with formereee governor johnson he will join us from new hampshire. we will ask him why he's not too focused on iowa. >> a sneak peek of the marine's newest stealth fighter jet. is it worth the heavy price

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>> shannon: there are some pretty neat features for the marine corps brand new fighter jet but it comes with a very big price tag at a time when america is in a whole the lot of debt. jennifer griffin went to check out the new stealth fighter's premier. >> we are here at the naval air station for what really is the first test flight of the marine f-35b the joint strike fighter being used and developed by the marines. the first time the press has one given an opportunity to see the test flight. what is amazing about this stealth fighter yet, this new generation, a fifth generation they call it is that it is essentially a fighter jet that can vertically land like a helicopter. it costs more than

$100 million. the largest procurement program in the pentagon history. just before robert gates left he put the marine joint strike fighter progap on probation for two years because of overruns. now, they have gotten some of the issues under control and moves them into another phase of the program as lawmakers debate how much the defense budget will be cut over the next ten years the question is will the joint strike fighter program be armed? harmed? jennifer griffin, fox news. >> shannon: s&p's managing editor says there is a good chance another credit downgrade is in store for the u.s. for the next two years. all this while another member of the s&p blames, washington, for the downgrade. the finger pointing ahead of tomorrow's market opening. >> finger pointing is the word. each side blaming the other for

the debt crisis and downgrade of our credit rating but the monitoring behind the downgrading appeared on "fox news sunday" and said no single political party should take all the blame. >> this is really not about either political party. it is about the difficulty of all sides in finding, you know he, a consensus around fiscal policy choices now and in the future. >> beers also says a further downgrade is possible because the u.s. government debt burden will likely continue for years to come but not everyone agrees with beers' assessment that no political party is to blame and there is a heated debate on capitol hill whether tea party republicans are responsible. >> i believe this is without question the tea party downgrade. this is the tea party downgrade because a minority of people in the house of representatives countered even the will of many republicans in the united states senate who were prepared to do a bigger deal.

>> well, if they listened to the tea party we would have $4 trillion reductions in debt over time and not been downgrade. the tea party has come to washington talking about reducing spending, thank god they are here. >> and congressman paul ryan of wisconsin saying both parties are to blame. he predicts consumers will pay the price with higher interest rates and senator john mccain says the president is to blame for a failure of leadership. even so, mccain is calling for a softening of the rhetoric and more cooperation among members of congress. we'll see if that happens. >> shannon: we know how well that has gone recently. steve, thank you. >> you bet. >> shannon: america is now riskier than france. investors who buy u.s. bonds now take on more risk than if they buy bonds from france that is a superior credit rating. how many countries have the coveted triple-a rating? frangela, germany, hong kong and the uk. the u.s. shares the double a

plus rating with belgium and new zealand. countries with double a include united arab emrates, bermuda, kuwait and spain. the u.s. is currently at risk of being downgraded to that double a rating. what impact is the downgrade going to have on u.s. markets when they reopen? bring in steve forbes. thank you for joining us today. what is your reaction? >> in it terms of the u.s. treasure market it is not going have a huge reaction. s&p is playing politics with this thing. the u.s. can pay its interest and can pay the principle. the u.s. economy is a different matter. but the ability of the u.s. to service its government debts that is not in question. to put us below france and the uk and some of the other countries is prepostorrous. that is why you did not get a

panic in the bond market when this thing became apparent last week. it has political ramifications but that is about the economy, not about the ability of the u.s. to service its debts. >> shannon: we saw in the market in tel aviv a 7 point drop there. certainly one of the first markets to see action after the downgrade. what do you think will happen when wall street is back in action? >> well, there will be a considerable volatility because the fear is not about so much s&p but if one of the other major agencies downgrades the u.s. that is going to have an impact on u.s. financial companies including life insurance companies by may force a downgrade there, i think unnecessarily but force them to take on more capital. in terms of sorting this thing out it will sort out in the next few days in the stock market and i will give you a little bit of investment advice. this is presizely the time when there is so much uncertainty investors should not panic and if they have a little bit of

extra cash they don't need immediately. start to go in. you may look like a fool for awhile but i think for the next year and a half the u.s. is going to turn around, particularly after the 2012 elections. >> shannon: financial advice from steve forbes if you are listening out there. we constantly hear about investment and infrastructure. those sound like positive things but talk of reforming the tax code. what do you think are the best options? >> massive new government spending is not going to work. it did not work in 2009, 21st this year.2010 or you take the money from the american people. this money does not come from mars. it comes either through borrowing, taxing or printing money which is another form of taxation. it does not work. if they are serious about simplifying the tax code doing something like the flat tax that would be profundly

positive but you need a real mandate to do that getting rid of preferences and slashing rates after the 2012 election. there is not the mandate for it now. there would be a lot of talk about it but the figure stuff has to come after the mandate from next year's elections. >> in the meantime, what are your hopes or not for the super committee that is coming together in congress, republicans and democrats from the house and senate trying to working together on major, major cuts before thanksgiving? what do you think they will be able to accomplish? >> i hope they come up with something. the key thing to look at, shannon is what they do in the current and next fiscal year because that has real meaning. the outyear numbers are meaningless because any future congress can change that. if they make real cuts for this year and next year which has the binding of law that will be something. that is the number i'm going to look at, not the box car numbers of trillions which mean nothing but you they get 30, 50, 60, 80 billion in the next fiscal year that is the number i'm going look for. >> we will watch it, too.

steve forbes thank you so much for joining us. >> thank you, shannon, appreciate it. >> shannon: strong words treated out for the world to see by congressman jason chaffetz. the downgreat grade and the fall yacht from that. thanks for coming in today. >> thanks for having me. >> shannon: a powerful tweet. what do you think will be the response? >> it was just a few months guy that secretary geithner said there was no chance that there would be a downgrade and look what happened. i think that is absolutely wrong. >> shannon: do you think it will help things going forward to have a different tressi secretary? >> we have shown the president has no plan and that is one of migrate criticisms.

you hear a lot coming towards us saying we need to be bipartisan. when the president has no plan and the budget submitted by the president went to the united states senate it was defeated 97-0. didn't even get one democratic vote for it. i can look at the house companies and say we passed a balance. we passed cut cap and balance. goes over to the senate and they didn't even discuss it. they just tabled it. frustrateing that we are not having a serious discussion about how are we going balance our books in this country. >> shannon: how do you respond to not only the official statement from the s&p but those internally speaking out saying they are upset with washington as a whole like you have got to get your political act together. too much dissention and no cohesion. what are the hopes for that moving forward. in. >> i was the primary sponsor of cut cap and balance coming out of the house. and i remember that the speaker and leader cantor announced that we were going to bring this up to the floor the following week. i nadya nye hands the only copy of the bill -- i literally had

in my hands the only copy of the build an bill and the white was issuing already a veto threat and it was tabled without any discussion or debate. we need a serious discussion in this country about cut cap and balance about specifically about a balanced budget amendment. >> shannon: on the folks on the other side of you, they say what you are sending them is not a compromise, all one sided and only for the republicans and, of course, they are not going to vote on it. how do you respond? >> they should at least debate it or amend it. whatenate i don't know bahar they do over there other than the potluck winner with the wheel chair bingo. we produce cut cap and balance and have been out there trying to be as compromising as we possibly can. for a guy like me to vote to

raise the debt ceiling, i don't want to do that. to have a president with no plan and a senate that won't produce a budget. you send something over to them and they don't even discuss this i think the record will reflect, without hyperpartisan goggles on, it reflects we are trying to do the best we can but it takes twitte two to tan. >> you may look at mounting a challenge to senator orrin hatch. where are you no the process of the consideration? >> not trying to be coy about it. i'm seriously considering it and leaning towards it. i think once football season gets kicked off you will see us make some sort of announcement one way or another. >> shannon: all right. get the helmets on and the pads, too. thanks for coming in. >> shannon: nato is working to secure the remains of the helicopter that crashed in eastern afghanistan. 30 americans including 22 special op troops from seal

team six killed in the crash along with several afghans as well. conor powell is streaming live with the latest. >> we are coverin -- recoverine helicopter is proving to be no easy task. the area where it went down there is a large insurgency and there has been heavy fighting this throughout many years of fighting between the u.s. and coalition forces against the taliban. we are getting reports of sporadic fighting throughout the day around the area where the helicopter went down. it is not clear if it is exactly on the spot where the helicopter went down or just in the the general vicinity but there is fighting going on and proving to this recovery mission -- this recovery mission is proving to be very difficult. the taliban yesterday quickly claimed responsibility for shooting down the helicopter it is something they hosten do and say. we heard from the u.s. military

unofficially why the helicopter first went down, they are saying they think it was shot down by a rocket propelled grenade. normally helicopters when they crash here in afghanistan is as a result of something mechanical and due to the weather. this would be a unique sort of victory on the taliban part and we are hearing reports that the taliban are taking this as a real victory but the military doesn't see this as any type of game changer. they think it was a lucky shot on the part of the taliban but it did leave 30 americans dead and 8 other afghans that were on the helicopter. a devastating blow to the small special operations force here in afghanistan. >> shannon: absolutely is. and our hearts and thoughts and prayers go out to their families and loved ones. >> yesterday's helicopter crash is the deadliest single loss for force american forces in

afghanistan. there have been 1600 military deaths in afghanistan since the war began back in october 2001. meanwhile the u.s. drawdown of the troops officially began last month, july 15. two americans being held in iran on charges of espionage may soon learn their fate. julie banderas is live with the latest on the case. hello, julie. >> hi, shannon. one week is how long iranian court said it would take to formally sentence the three american hikers. that was last sunday making today day seven as the world waits to hear the verdict. however, word the hikers would be set free is being rejected. there are conflicting reports here. the local satellite press tv is reporting iran's ambassador to baghdad has expressed doubt about their imminent release despite the foreign minister saying yesterday he hopes the verdict will result in the

hikers freedom. the lawyers representing the hikers argued his clients were innocent of charges of illegal entray and spying and in a statement last week the u.s. state department said and i'm quoting the trial of joshua fattal, shane bauer and shara shord has concluded. they were hiking along the border when iranian police arrested them and said they i illegally entered iran. fattal and bauer have been held in prison. sarah shourd was released in september 2010 and returned home. even if the court does reach a guilty verdict the attorney says the time they have spent in iranian custody is likely

enough. the families and shourd maintained their innocence and rallied the international community to press iran for their release. >> shannon: as republican hopefuls flock to iowa for the fox debate and ames straw poll. one gop contender is already in new hampshire. i will ask gary johnson why his plans do not include the hawkeye state. and glee fans, listen up. a few of your favorites may be moving on sooner than you would like. looking good! you lost some weight. you noticed! these clothes are too big, so i'm donating them. how'd you do it? eating right, whole grain. [ female announcer ] people who choose more whole grain tend to weigh less than those who don't. multigrain cheerios...

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>> shannon: a florida mother is urging her three grown children to turn themselves in after a shootout with police.

>> lee grace, dylan and ryan, i love you very much. your lives are not over. only mom knows what good people you are inside. please prove me right and everybody wrong by doing the right thing now and turning yourselves in. >> shannon: the shootout happened tuesday when police tried to pull over a subaru. the chase with speeds topping 100 miles an hour. along the way two of the suspects fired off at least 20 shots, one hitting the car tire of the police car and that allowed them to get away. the officer was not injured. while most gop hopefuls are campaigning around the clock in iowa, presidential candidate gary johnson says he will not be traveling to the hawkeye state this week and

participating in the ames straw poll. he is in new hampshire and joins us live from there. governor, great to see you today. >> shannon, great to be on, thanks. >> shannon: tell us why you are not spending a whole lot of time in iowa. >> i'm the least known governor out of all of the candidates. i'm the least known candidate running for president of the united states. they did a poll six weeks guy on all of the presidential candidates and their favorabilities in their own state. there is only one presidential candidate viewed favorably in his or her own state, me and i'm in last place, i'm the least known. it is kind of a resource deal. it costs a lot of money to be in ames. it is votes for barbecue kind of thing that we really can't afford. we will put the chips on the table here in new hampshire, the first primary state. of course, iowa s a caucus state, a little bit -- not just a little bit different but a lot different. going to put the chips on the table here in new hampshire

hoping for a good result and really going from there. >> okay. so in iowa obviously we know that it tends to be some where that is better for more socially conservative candidates. evangelicals and michele bachmann and tim pawlenty and others who are outspoken about their faith and you are prochoice and take a different stand on gay unions and marriage and legalization of certain substances that are currently illegal. do you think you would have any chance to resonate with iowa voters out there? >> sure, i absolutely do. i think that the republican party is going to nominate a candidate that is going to lead with social issues meaning stick the chin out i'm all about social issues, i don't think republicans are going to be successful in in upcoming presidential election. so of course, i'm puting that to the test. i really believe that republicans need to be first and foremost about the pocketbook. i'm in the camp that believes

that we are on the the verge of a financial collapse. i'm under the belief we will have a monetary collapse. i would not have raised the debt ceiling. i think for all the problems that would have gone along with not doing that that fundamentally we need to stop printing money. the downgrade in the debt was no surprise to me and they are talking about further downgrades, no surprise to me. are we going to pay the interest on the debt? absolutely we are going to pay the interest on the debt but the point is we are not going be borrowing that money to do that. we will literally be printing all of that money to do that and the result of that is going to be a dollar that continues to be worth less and less and less. >> shannon: you think the consequences of not racing the debt ceiling would have been lesser than putting together a deal and adding more to the bottom line? >> i don't want to downplay all the difficulties that would have gone along with not raising the debt ceiling but that is a mechanism by which we could have had a balanced

budget. when i say could have had a balanced budget perhaps an agreement to actually balance the budget in a few years as opposed to a few decades. because in my experience, a few decades equates to hey, we're not going to do it. >> shannon: all right, governor gary johnson. we will keep an eye on you in new hampshire and elsewhere on the campaign trail. thanks for checking in with us today. >> shannon, thanks for having me on. bye. >> shannon: bye. a new harsh reality. many employer is are excluding applicants who don't currently have a job. and turning to twitter. casey stegall with that story. >> how cops are not only using social networking sites to nab the bad guys but also communicate with the masses. i'll explain coming up in a live report when america's news headquarters continues, next. i love that my daughter's part fish. but when she got asthma, all i could do was worry !

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>> shannon: nato is working to recover the remains of the helicopter that crashed yesterday in afghanistan. but violence in that area could make the mix much tougher. peter doocy standing by with the top of the news. >> nato is still trying to figure out if the taliban is responsible for taking counter chopper.cdown the an afghan official say there's is fierce fighting in the area where it happened. the s&p is warning that another u.s. downgrade could happen in our government fails to epiforce tax cuts. here is some perspective. a second downgrade would give the u.s. a double a rating, the aim grade askew wait. the americans retained in iran could get a verdict as early as yesterday. they said the courts with issue a verdict within a verdict.

they have been in iran for two years. the third hiker sarah shourd was released last year. could a glee spinoff be coming soon. they wouldn't deny of a premier at the gle e 3d movie. some of the characters will be in their senior year and wouldn't stick around forever leaving fans wondering. that is the latest, back to you. >> shannon: it didn't happen during world war i and great depression or even world war ii. what does a lowered credit rating mean for the u.s.? the highest rating is triple-a, the one america has had since 1917. that means the borrower with has extremely strong capacity to meet financial commitments. one notch down is double a where we are right now that suggests a very strong capacity to pay back money. next up, single-a. the borrowers have strong

capacity to meet financial obligations but more vulnerable to changing economic conditions and triple b, considered the lowest great suitable for investors. the electoral votes low west r. the nations still at the highest level, canada, frangela, germany and australia. the tel aviv stock exchange is one of the few markets open on sundays. leland is live in jerusalem with the latest on what happened there today. hello. >> hi, shannon. investors here dropped stocks a little bit like hot potatoes and the regular slaters stepped in to try to prevent the kind of crash that comes with this panic. as the sunset here in israel everybody looked up at the exchange. stocks down 7%. the last time we saw this kind of evaporation of capital was back in the fall of 2008. because the tel aviv market is

one of the few world markets open on sunday it gives us insight into what may happen come monday morning. not good news. the bank stocks in israel down 9%. a number of the co-listed stocks listed on the israeli exchange and nyse down as well. a big drug manufacturer down 5%. also adding to jitters here in israel were major protests over the weekend. 300,000 people took to the streets over housing prices and concern about the cost of live. that searchly added t certainle fears. they say it is the private investors who ordered the brokers to sell at whatever the price. of course, for every seller there is also a buyer and looks like it was the big institutions snapping up the stocks that were down, 7, 8, 9, 10, 11% thinking they looked a lot like bargains at that

point. >> shannon: leland, thank you so much. turning to unemployment and sobering news for job seekers without work for awhile. brenda buttner joins us live with news on why some employers are overlooking certain applicants. a tough time out there for them, brenda. >> sure is. as if it weren't hard enough to be in the ranks of the unemployed even those who are doing everything they can to get back in the workforce may be facing a big black mark just because they are out of work. many of the nation's employers are ignoring the 14 million jobless americans trying to return to work. if you look through postings on popular job sites those doing the hiring make clear they only want those who were just recently laid off. this is becoming such a problem, new jersey, passed a law that bans job ads that prohibit the unemployed from

applying to work. even congress is considering similar legislation. the average length of unemployment now is a record high of nine months so those with a normal gap in their resumes have little hope of getting back in the working world. both small and big businesses are guilty of looking for only the recently un employed and it is not just a problem for manual labors. blue collar, white collar, all having trouble if they have been handed a pink slip. of course, it has always been easier to find a job if you have one but if you don't chances are you may join the millions who are long-term unemployed. not because you want to be but because job hunting is just getting tougher. now, that the door may be shut in your face before you even get your resume to the right person. seems many employers feel those who have been out of work for awhile are worried that they may not have the job skills necessary to get a running start in a new job.

discrimination? not necessarily. legal experts believe that unemployment is not a protected class like age or race, even if it does hurt african americans or the old more than others. unfortunately, yet another hurdle for those who want a job and are trying to get one. another sad story for those who are unemployed. shannon? >> brenda, thank you very much. >> thank you. >> shannon: we love hearing what you think at home. do you feel like we are in a recovery or does it still feel like a reinvestigation to you? that is the question we posed. an overwhelming 90% of you said it feels like a recession. log on to fox news .com to share your opinion. at least 52 civilians dead in isia and the death toll expected to rice. this many coulds days after a round of brutal attacks in

hama. bahar is the international community doing to help out? casey mcfar land worked on the international security council. she joins us live. hello k.t. this situation in syria seems to be getting bloodier and bloodier. what should we we doing? >> there is little to be done. the u.n.in' and gulf cooperation council and the arab league said enough it enough. stop killing your people start with reforms. united states unfortunately, we have had a sort of muddled policy towards syria from the beginning. secretary clinton called them reformers. turns out they are not reformers and we can't negotiate at w. them. there is very little the world community and united states can do other than perhaps assistance with technology helping them do social networking which the government has cut off. why is it a big problem? mostly because we screwed it up with libya.

we have gone into a country which the united states has no vital interest in. muddled through it without the consent of congress and against the advice of the u.s. intelligence community. if you are syria you say well, they can't even get their act together in libya, we don't have any danger of them coming after us. >> shannon: let's talk about libya because a lot of folks thought it would be resolved by now one way or another. the nato operation is good through the end of september. what if we get to that point and qaddafi is still in you power,. >> libya turns out to be the war that never ends. there was no u.s. vital interests involved. there was european vital interest. oil, they wanted oil. refugees, they didn't want libyan refugees. there was another a defined goal. topple qaddafi? replace him with a rebel government? it was never clearly defined

and president obama went against the advice of the american government. the intelligence community said if you can drop a couple of bombs on qaddafi he is not going to lead. the military said it will be harder than you think. he never went to congress to get advice or consent or involvement. as a result we are in the stalemate where people the europeans are saying maybe what we should do do is have a negotiated solution whereby qaddafi stays in libya as long as he promises to be a good guy. who is going to believe that? the russians historically were very involved in libya and in north africa but in the 1970s after the october war and the u.s. negotiated peace agrowments between the israelis and its neighbors, the russians were edged out of the middle east and they have been waiting for are 30 years to get back in and what they see is maybe this is their opportunity. seems like nato can't figure out how to get out of there. the arab league states and gulf

cooperation council may want a resolution. they may not like qaddafi but are not willing to do it more than just give it lip service. the russians think maybe this is their moment. they have long ties with qaddafi and with the libyans. maybe there is their moment to try and negotiate. the turks going to try to do the same thing. everybody sepses that the europeans and the united states are in a stalemate situation and other countries are trying to get in, get a toe hold, show that they are leaders and they can play in the region and so that is what you are seeing the russians do. >> shannon: kt mcfarland, thanks for lending us your expertise. >> thanks, shannon. >> shannon: dozens arrested in london. sky news reporter live from done lan with the latest. martin, have things calmed down there? what is the latest?

>> they were some of the worst riot scenes seen in london last night. i suppose today the community and police service are bracing themselves to see what the chances of any repeat tonight. one thing that might be important and might have an effect on the event tonight is a statement we are expecting in the next couple of hours from the investigators who have taken over this case. they have been under a good deal of pressure today to provide details of the shooting of a man 72 hours ago. a local man who died, we believe shot by police. but the problem is that a lot of the media reports and those in the past three days have been based very much on what eyewitnesses have been telling us. we still haven't had a firm statement of the exact circumstances in which mark dugan died and that is principally what fueled the disorder last night. and sometime in the next couple

of hours we may get that kind of detail and if that is to happen it may have a big bearing on the events of tonight. but as the night begins to fall a lot of people are very concerned that there may be a report of the kind of looting and burning of shops that we saw last night. >> shannon: martin brunt live from london on the riots there. thank you very much for the update. twitter and facebook can help you stay safe. ing local police departments have been using social networking sites to keep residents in the loop. casey stegall live in los angeles to tell us more. hi, casey. >> we live in a world where so many of us put our personal lives out on the worldwide web. post our pictures to facebook and tweet what we are doing, maybe even where we are having coffee and dinner but criminals are also doing the same thing and law enforcement are using that to their full advantage. in fact, they are using the

social networking sites to track down suspects and gather evidence against them. there have been plenty of cases where people post pictures of themselves engaged in illegal activities online so some agencies like the los angeles county sheriff's office now you have special teams dedicated to searching for clues online and then cross referencing it with their own databases. they are quick to point out, however, that they are not tracking average citizens but using information they find on the internet as a supplemental crime fighting tool. >> we are not following people. we are looking for crime, okay. or public disruptions. so civil disturbances and things like that. really who the person is, we don't have those kinds of resources even if we wanted to. >> people need to think twice when posting some things do i really want this to be public and am i really prepared for the consequences that might

come if this does become public. >> as you heard there are some concerns about privacy here but the other main component of social networking as it pertains to policing is, quite frankly, just getting information out to the masses. for example if there is a rash of burglaries in one particular neighborhood, lapd or a different agency may tweet out an alert so people are all on the same page. it is a great way to reach a lot of people at once. shannon. >> shannon: got to be careful what you post out there. good advice. thanks so much. >> shannon: could be a make or break week for some presidential hopefuls. chris will join us before he heads out to iowa for a preview of the fox news debate and very important ames straw poll. >> we are seeing momentum on the ground and you are going to see good progress a week from yesterday at the sims true poll the proof will be in the pudding -- at the ames straw

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>> shannon: right now 45,000 union workers on strike at verizon. they are demanding the company soften its stance on labor contract negotiations. verizon's land line business is in decline, so to reduce costs the company is looking for healthcare, pension and work rule concessions. verizon says it does have a plan in place to limit service disruptions for its customers. several gop presidential candidates have a lot riding on the ames iowa debate and straw poll this week. here to preview the week ahead is digital politics editor, chris stirewald. good to see you before you head out to the hawkeye state. >> i'm ready. >> shannon: there is so much preparation that goes into the

debates. who will the questions potentially shift or have a different focus based on the news in the last 48 hours. >> you had it worse when you did the debate in south carolina because osama bin laden was killed literally days before the debate took place. we had a huge news weekend. the tragedy that befell the seals in afghanistan and the s&p downgrade of u.s. credit rating. what that means is we run back and rip up the questions that we had before. we start all over again so that we can make sure that we are right on top of the news because a big part, a big test about being president is can you react to things as they change and so we want to test them on the very latest things. >> shannon: and you have a couple of members of congress actually taking part so they are voting on these things and had a part of what happened with the debt downgrade and a lot of those things. talk about those things maybe a little more pointedly with them. talk about who really has to do well, here in iowa and the straw poll following the debate. >> this is tim pawlenty's make

or break moment. you heard him on fox news sunday today laying it out. he needs to demonstrate toughness and hardcore. they want toughness and hardness and minnesota nice isn't going to cut it. the problem for governor pawlenty is there is probably only one ticket out of iowa and he has to wind caucus if he wants to look viable. congress woman michele bachmann is performing well in iowa. he is trying to beat her on the ground on outorganize him. unless he is able to take out mitt romney he is not going to be able to rally the people on right that he needs to take out mitt romney and make this a two man race. >> shannon: we gave him an opportunity to address those things with romney and he didn't take it head on, he was mr. nice guy. talk about romney, the fact that he has is just sort of checked out of iowa. >> the thing for mitt romney is this. iowa is a strong hold for

religious conservatives. they love michele bachmann. they love tim pawlenty. they are evangelical christians, waiting to see what rick perry finally decides to do down in texas. they love ron paul, too. the home coolers came out for ron paul. this is not where romney can succeed. it is not important for him. he has to show and at least i would say get third place when all is said and done. that is why you will see him on stage and see him out there showing the flag in iowa because he has to for more moderate republicans in iowa to be their choice. >> shannon: safe travels, have a good time. we are watching for the big debate and, of course, the straw poll coverage as well. thanks, chris. >> a crack down on illegal immigration is causing a lot of controversy. and no, we are not talking about arizona. a fair and balanced debate on alabama. a revenge move by one man using his dad's vehicle. how that van ended up in a pond

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>> shannon: first it was arizona and now you controversy

is brewing over a controversial immigration law in alabama. joining us for a fair and balanced debate are dan stein, president of the federation for american immigration reform and christian ramos, an immigration advisor for the new network. thank youing. >> good to be here. >> shannon: many provisions are similar to arizona. some portions of the arizona law upheld and others enjoined. let's talk about this. dan, a lot that involves asking school officials to check the immigration status of kids, of students. does that go too far? >> the alabama law is a very important law. i want to salute what governor bentley and the legislature has done here. look, the obama administration will not enforce immigration law against the vast majority of illegal aliens in the united states and the states are saying we want help from the federal government. they attacked the administration law and now they

are attacking the alabama law saying we are not going to enforce the law to free up jobs for american workers oren sure the laws to ensure that americans are betting benefits and only americans. we are cutting back for yourselves now. instead of giving the american people a break the administration is going after the important state laws designed to try to improve u.s. immigration law enforcement. and really the big politics here, this is all about politics, utah passed a law that had an immigration program that was completely unconstitutional to have guest workers come into utah. the obama administration did not sue utah but they sued alabama and sued arizona and basically they are saying we enforcedt the laws enforcend and if a state tries to enforce the law we will sue the state and sue the american people. ultimately it is about the elite versus the american people. >> shannon: christian is, that a fair characteristickization of the use of doj resources to

go after certain states and not others? >> dan and i are in agreement here. the immigration laws in this country don't work. they don't arc for states and the nation as a whole. the federal government hasn't done of job of enforcing the immigration laws as they are written now. $90 billion over the last years in immigration enforcement. we had nearly -- over a million deportations and we have had undocumented immigration in this country actually decrease. i think the situation now because we actually have to help states. we have to come back to congress and figure out how to deal with those that are currently here but also figure out how to process legal immigration in the future in the sense that right now we are taking people in the country, having them go to school here and then we have laws that telethem out and then they actually are starting fortune 500 companies in other countries and that doesn't

really help us at all in the long run. >> shannon: christian, dan, thank you for presenting both sides this of. we know the alabama fight is far from over. thank you both. >> when you are this high up there is no room for error. find out what happened when a tight rope walker tomorrow a stumble, next. ♪ [ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours.

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geico, saving people money on more than just car insurance. >> shannon: world lead hes trying to deal with the fallout from america's downgrading. high level ministers plan to meet before the asian markets open our time tonight. fox news, of course, wants to keep you updated on the very latest in this credit downgrade. so we will have very special business coverage tonight with fox news you channel second simulcasting with fox business

network at 9:00 eastern. tune in and get the latest as we watch markets around the world. a 30-year-old man taking out his anger-his dad's car. people in new york city's central park say a green van tore down a path and straight into a pond. the driver jumped out of the vehicle and it was just fine. he says the witness told him "my father cares more about the van than he does about me." someone is in trouble. a chinese tight rope walker had a very close call. not for you if you are afraid of heights. is performer was trying to cross a rope. he actually did fall there but was able to grab the rope. he eventually got back up and finished the walk. not for the faint of heart. kind of like being in washington these days. that is it from us here in washington. "fox news sunday" is up next. you will hear from one of the head of the s&p's rating agencies, also congressman paul