that's it for special report. don't forget, coming up. ames, iowa, we guarantee you it will be fair, balanced, and >> good morning, folks. it's tuesday, august 9th and we are up early for a fox news alert. a wild ride overnight. asian markets taking a dive but now, looking a little more stable after wall street plummets to lows that haven't been seen since the crash of 2008. so will we see another nose dive when the u.s. markets open? stay tuned, folks. >> let's hope not. president obama is trying to tell america not to worry but investors sure didn't listen. the dow literally tanking as he spoke. but don't worry, he says he has a plan. steve? >> what is it? meanwhile, london is burning. the city erupting into flames overnight as violent riots grow

for a third straight day. latest details moments away. "fox & friends" up early on this tuesday starts now. >> hey, this is boone pickens. you're watching "fox & friends." great show. watch it every morning. >> thank you very much for that endorsement and good morning, folks. we are up 5:00 a.m. eastern here in new york city. good morning to you, eric. >> good morning, steve dooszy. i got to tell you last night, i was here until 11:00 watching the markets. it's something very scary going on. around 10:00, the markets were down 100 points. it looks like there was no bottom at sight. we went 350 points lower at one point last night atop of that number right there. 634. literally 1,000 points for the day at one point. we closed the market and closed the show down and we woke up this morning and somehow, we

have a little bit a bounceback. >> a little bit. >> a little bit of a bounceback. >> people are wondering about the asian markets and europe to follow. when we saw yesterday, asia had sold off 2%. if they sold off 4% today, we'd be pretty much even money for the total amount lost. but nonetheless, people are looking in wondering is this going to be another rough day today? it probably will be. >> that's a great point. as you remember yesterday morning, we were here early and the night before, the asian markets were weak and the ecd came in and supported the european markets. same thing happened last night. japan, china, south korea were down. they were down strong because of some numbers that were released in china and then all of a sudden, the european markets start to push up. same thing today. we have to see if the u.s. traiteders when they come into the office, if they push it back down again. it feels heavy to me.

>> absolutely. can we put the graphic up to show what the asian markets have been doing. china, 2.3 and south korea down 3.6. they are still less than what we lost yesterday when you give the number they lost yesterday and the number they lost so far. >> something interesting going on. right now, oil, another on top of a $4 slide yesterday, another $3 slide in overnight trading. oil is trading all of a sudden, $77 a barrel. better news. but for the wrong reasons. >> that's black gold. when it comes to actual gold, actual gold took off yesterday, too. people were looking for some sort of safe haven although ultimately it looks like -- and it's kind of ironic, the day that the market opened after the s&p downgraded u.s. treasuries, u.s. treasuries was the place to be. >> because there sixth biggest .

let's look at the asian markets first. they were having some plummeting numbers that were causing some fear and anxiety. nikkei at one point was down 4%. but things rallied a little bit by the end of the day and we're back into better territory. australia was a little bit better. europe was up and down.

still is up and down but so far is looking more positive than yesterday. you know, the question is what is driving all of this? is it just this s&p downgrade? some people say it's more than that. the federal reserve will be meeting and some wonder if ben bernanke will take some kind of action that might calm people down a little bit, too. >> thank you very much for the live report from the bureau. we just lost 100 points in the last couple of minutes in the dow futures so it looks like it is actually starting to turn over again. we'll keep our eye on it and let you know how that trades throughout the morning. >> take a look at the cover of the new york tabloids. "the daily news" kind of says it all and interesting enough, tanks a lot. rally cry ends in dow's massacre. what we're talking about, the president of the united states would come out at 1:00 in the afternoon, well, he didn't show up at 1:00. they thought 1:30. by 1:52, he did go into the

state dining room there at the white house and he had -- he had essentially what he thought would be a pep talk to talk the markets up. to reassure traders. when his speech started, the dow was down 410 points. did he reassure the markets? absolutely not. 10 minutes after the speech, the dow was down 423 points. 30 minutes later, down 200 more than when he started. >> sure and ended up 634 points lower. i will tell you, traders are -- people were just waiting to see what he had. what's going on, president? help us out. come up with an idea. give us some hope and he went and he didn't really have much to say. take a listen to what he had to say. >> markets will rise and fall but this is the united states of america. no matter what some agency may say, we've always been and always will be a triple a country. in fact, warren buffet who knows a thing or two about good

investments said if for a quadruple a rating, i give the united states that. it's not like the plans and the policies are the problem here. it's a lack of political will in washington. i intend to prevent my osent my recommendations in the next couple of weeks of how we should proceed and that committee will have this administration's full cooperation and we will stay on it until we get the job done. >> the problem, eric, is the markets were looking for the president to say this is what i'm going to do. i'm the president. the buck stops here. let's go! >> looking for leadership. nothing! we got nothing! we got the same stuff we have heard him say on seven, seven, count them, different occasions where he talked about the same things, you know, revenue increases, we're going to tax the rich. all the other stuff we've heard over the last month and a half. >> steven, the markets were crashing and they were down 500 last week and down another 400,

500 while he was speaking. people wanted some answers and we got don't worry, in the next few weeks, i'll put a panel together and we'll come up with some answers. no, they need answers now. they need to say, how are you going to fix this? maybe listen, we'll bring congress back and we'll address it. let's sit down with the senate and find out what's going on the rating agencies. sure enough, the markets rolled over but he did have something on the agenda. >> exactly right. while your 401k became a 201k, he's en route to raising a billion dollars so he can get re-elected and hin deed, yesterday, after his pep talk that did not work, he did have a couple of fundraisers in washington, d.c. let's see, keep in mind, last thursday, he had a couple of fundraisers in chicago -- or i think it was wednesday, for his birthday, fundraisers there. and then last night, he had two for the dnc. one was at the private home of

don and katrina peebles where they had 140 guests over. they had some over at the saint regis hotel, that must be the peebles couple. nice couple. at their house it costs $15,000 per family to show up. >> you're right, it was last thursday that the chicago birthday party was. that was his birthday. it was also the day we lost 515 points on the dow. so apparently, he likes to go fundraising after big massive breakdowns and by the way, trillions of dollars in breakdowns in u.s. wealth. >> $2.5 trillion of wealth has vanished over the last 48 hours or so just in this country. forgot to mention, he went golfing as well over the weekend. we heard in that sound montage, the president talking about that committee. what he's talking about is this super committee which will be appointed very shortly. i do believe that we will -- the deadline for the 12 names will

be august 16th and you can see right there, you got two republicans. you got two democrats. they each get to pick three faces. >> i certainly -- and again, we're hearing rumors of who is going to pick whom but the left has said, look, a lot of this whole deal that was put together in washington, this little compromise that they put together apparently isn't working, the far left was left out of that package. there was nothing in it for them. billion that the

treasury and mr. obama decided to inject into the market, they put it into the market over the summer, four or five months ago, it ran out about a month ago. we had been warning whenever you inject the market with fake money, when the money stops coming in, the effect stops happening and sure enough, about a month ago, the money stopped and they ran out of the $600 billion and look what's happened. we lost all of the game that was supported in the dow and the other instruments, all of them, poof, vanished. now we're negative from what we basically wasted $600 billion of your money, our money. printed money. >> indeed. so that's why we're up an hour early to talk about what's going on with the markets overseas.

and we'll talk about a little later on what's going to happen on wall street but right now, let's head up to the headlines. >> right. headlines, parts of england looking like a war zone this morning as violent riots spread across the country for the first time, riots are spreading beyond london to cities like liverpool and birmingham. this comes after a third straight day of violence, gangs set fire to buildings, ransacked stores and clashed with police officers. dozens have been arrested. the violence started after a father of four was gunned down by police in a predominantly black neighborhood of north london. >> meanwhile, you're looking at just eight of the 30 american heroes who died in saturday's deadly helicopter attack in afghanistan. their bodies are expected to arrive at dover, delaware, air force base later on this morning. the military has imposed a ban on all media coverage of their return home since many of the victims are still being identified. 22 of them were navy seals. three were air force special operations. and five were army helicopter

crew members. >> and the hotel maid accusing the former head of the international monetary fund of sexual assault has filed a civil suit against him. she is seeking unspecified damages from dominique strauss-khan for physical and mental harm as well as damage to her reputation. meanwhile, the strauss-khan criminal case is still pending even though the maid's credibility has been called into question. his next court date is august 23rdrd. steven? >> real quickly, recall elections in wisconsin putting the careers of six state senators and control of the state senate on the line. democrats want to recall the six republicans after they voted for a bill stripping public sector unions of collective bargaining rights. remember? >> we need to have a state senator in this district that represents the people of this district who will fight for education, fight for families. fight for the growth of our state. i'm being recalled for doing what i was elected to do, i had a big job, to balance a $3.6

billion deficit without raising taxes. we had to make cuts but we did it without having major layoffs. >> that senator you just heard from alberta darling will join us live coming up in the 7:00 a.m. eastern hour to talk about her recall race out in wisconsin and that is a quick look at the headlines for this tuesday morning. >> great day. >> let's bring it back. >> let's bring it back. all right. your money on the line as the markets plunge around the world so what can we expect? cheryl casoni from the fox business network with advice for your investments. >> she fell 50 feet off the cliff and broke her leg and her back. she didn't want to die. how this woman survived days in the wilderness with nothing but berries and bugs. puts it all in perspective, folks.

>> well, asian markets are down sharply overnight after wall street suffers its largest one day fall since the 2008 crisis. right now, the hang seng is down 5.6%. that's a lot. yesterday, the dow closing below 11,000 after more than 630 point tumble so can we expect wall

street to fall once again today? here to weigh in, we have our fox business anchor cheryl casoni. earlier, the futures were up close to 200. now they're down close to 100. >> there's a lot of volatility in the markets, obviously but what's so different from 2008 to now is it is a global story and what we're seeing right now especially in the last few moments is pressure in europe. there's a lot of concern now about the u.k. and about the french and german banks and that's where the stocks are falling in europe right now. that's why you're seeing pressure on the dow futures at this moment. we were higher, as you mentioned. this concern because italy is the third largest economy in europe, they might not be able to be bailed out by the u.k., by the germans, by the french. there's not enough money there in the euro zone and remember, you've got a new currency. how long have we had the euro now? they have a very different system than we do. they're several countries with several different economic policies and they're struggling to come to consensus.

the g-7 had the emergency meeting, bernanke was on that call. geithner was on that call. our problems we're seeing in this country now today are based on what we're seeing in europe. >> so yesterday, it would be fair to say because the headlines on friday night. yesterday's falloff probably a lot because of the s&p. >> sure. >> today is because of europe. >> today, it's because of europe and there was some pressure. you looked at the chinese market. china had some inflation data that was a little concerning. japan actually had sold off earlier in the session. they came back. they only closed down a little more than 1% and australia closed higher. middle east closed lower. there's pressure in the mideast. i point to concerns in europe. something to look for, there was market notes coming out of tokyo yooe overnight that the european traders want to see ben bernanke do something today. eric was talking with you about it it a moment ago. there's a lot of pressure on the fed to put language in that

statement that actually calms the market. remember, we're concerned about so many things. in 2008, it was the banks only. we thought banks would fall apart and some of them did in this country. we don't have that right now. what we're seeing is a growth story because we're not growing. this country isn't growing. we're saddled with so much debt and so are the europeans. >> one of the problems with the american banks yesterday, cheryl, were, you know, bank of america because of, among other things. their problem with the country wide division, it sold off 20%. >> bank of america -- >> they're down 50%. >> they're being sued! they're being sued by aig for $10 billion. bank of america took the dow down yesterday. bank of america, biggest holder of mortgages in this country. you don't want to see bank of america sued for $10 billion. >> no kidding. cheryl, thank you very much for joining us live in the 5:00 hour. coming up next on the rundown, fallen navy seals return home as we get new details about the crash in afghanistan that killed 30 of america's very best.

then a major development in the case of america's most wanted fugitive. but it's a development that the f.b.i. might not like.

>> quick headlines for you on this tuesday morning. the d.b. cooper continues. there's no match, none, between a new suspect's d.n.a. and a necktie left on the hijacked airplane in 1971. the f.b.i. says this does not rule out the suspect who has been dead for a couple of years. meanwhile, marla cooper came forward claiming her uncle was the hijacker, was d.b. cooper as we know him. it's believed he's the f.b.i.'s new suspect. d.n.a. testing will continue and

the more than 100 mile journey to florida has already ended for diana niad. we told you yesterday how the 61-year-old swimmer was attempting to become the first woman to cross the florida straits without the help of a shark cage. shoulder pain, asthma and high winds forced her to stop after 39 hours but it was a valiant effort. >> ok. the bodies of 30 american soldiers killed in the afghanistan chopper attack are being transported to dover air force base this morning where they'll be returned, reunited with their loved ones. yesterday, president obama praised fallen warriors for their perseverance and courage. jennifer griffin has more reaction to their deaths. >> there's nobody that embodies qualities i mentioned, more the men and women of the united states armed forces. and this weekend, we lost 30 of them. >> recaearlier, a moment of sil

for those killed as a ceremony, the man who was planned with executing the bin laden raid with the storied members of the seal team 6. none of the bin laden team was killed this weekend but 10% of seal team 6 were. >> they were far from home. but we know that they were also where they wanted to be. doing what they wanted to do. alongside men who were, perhaps, closer to them than their own brothers. >> they were flying a c.h. 47 chinook, the seals not often used as an immediate reaction force were called in by army rangers who were engaged in a protracted firefight while dealing ducts, the valley 60 southwest of kabul. one military force says the

reaction force looked hastily arranged with so many troops placed on a single helicopter. >> i've had several former military people involved in special operations here saying no time ever do that many special operation guys travel in one helicopter. now, this does appear to have been somewhat of a unique situation considering that they were part of a quick response force. >> navy seal aaron carson vaughn was among them. he deployed just six weeks ago. two weeks after his 2-month-old daughter chamberlain was born this summer. >> i talked to him on his birthday and he said granny, he said, don't worry about me. i'm not afraid because i know where i'm going. he was a christian. and when i get home, i'm coming to your house to hunt. >> the pentagon is not allowing any media coverage of tuesday's dignified transfer of the troops' remains. despite lifting the years long ban on coverage, the pentagon explains the remains are still being identified. at the pentagon, jennifer

griffin, fox news. >> all right, jennifer, thank you very much for that report. tough story. >> all right. now, fannie and freddie are bad investments. who knew? details on the s&p's latest downgrade. do you think? what it means for americans who might want to borrow money. >> and buy a house. then she fell off a cliff, broke her back. and her legs. but this woman survived for days in the forest on nothing but berries and bugs. hear from her when we come back on this tuesday "fox & friends." ñíoz6ooñtñíy

>> this fox news alert, we're watching stocks this morning. so far, they've tanked again as many global markets enter the official bear market territory after one of the worst days on wall street since the collapse of lehman brothers in 2008. >> that's right. over in asia right now, the hang seng is down five points, you can see some more of them. japan down 1.7. south korea down 3.6. of course, yesterday, the dow

jones industrial average tumbled 634 points. ouch! so what is the obama administration's economic plan going forward? adam shapiro from fox business is in washington and we look to washington for guidance. are we going to get any today because we didn't get much yesterday. >> the criticism already is that we're still not getting any guidance, steve, but washington will wake up this morning in overdrive following monday's market meltdown. the road map includes jobs, the federal reserve policy and preparing for trouble. treasure secretary tim geithner is going to meet with the president this afternoon while the fed's open market committee will discuss additional possible support for the economy. late monday afternoon, geithner held an emergency conference call with members of the financial stability oversight council. that's a group made up of u.s. regulators and its members include the federal reserve, fdic and s.e.c.

the president is going to try to win support for his plan to create jobs. >> we have to make sure if you're one of the millions of americans looking for a job, you can get the unemployment insurance that your tax dollars contributed to. we should help companies that want to repair our bridges and roads and airports so thousands of construction workers who have been without a job for the past few years can get a paycheck again. >> the one problem, steve and eric, is that those payroll cuts, that keep our money in our pockets as well as extending unemployment benefits costs the government over $120 billion when they actually did it the last time around. president hasn't said how they would pay for it this time around and when i say that washington wakes up in overdrive, the concern is that instead of driving an f-150, we may be driving a rusted out 1983 cavalier. can you tell what i learned how to drive on? back to you guys.

>> i was in a 1963 rambler. thank you very much, adam shapiro reporteding live from the bureau. yesterday, s&p downgraded the credit ratings of mortgage giant fannie and freddie as well as other agencies linked to long-term u.s. debt including 32 banks, berkshire hathaway got a haircut yesterday. >> thank you very much, mr. buffet. what does this mean for your money? "wall street journal" senior economic writer steven moore joins us now. any doubt that fannie and freddie were going to get downgraded? we've been funneling hundreds of billions of dollars to these two, i don't know, quasi government agencies for years? >> well, good morning, steve, and eric. my answer to your question is what took them so long when it comes to fannie and freddie? the big losses that fannie and freddie took back in 2008 and 2009 when the market really

collapsed. what's scary about this story is how it impacts the average american, i was looking at the statistics. 90% of the mortgages over the last year that have been initiated are either guaranteed by fannie and freddie or fha on the government presence in housing is enormous right now. >> yeah, when you're talking about things being guaranteed, you are talking about our money is backing up. great. >> exactly. trillions of dollars of mortgages that are being guaranteed by taxpayer dollars and, you know, if the housing market continues to slide, that means more americans are underwater. more foreclosures and unfortunately steve, what that means is your and i -- my money is very much at risk. >> steve, we're putting up a graphic right there. the amount, the numbers of bad loans so far, the first one had fannie mae, $200 billion. this one showing freddie mac, $79 billion. but you point out, steve, 90% of the loans at least touched fannie and freddie in some way. give us a number.

$5 trillion, $6 trillion, $7 trillion in loans if things would potentially go south. a lot of money on the hook. >> you're exactly right. what's frightening about this is these numbers that you just talked about. that $6, $7 trillion of exposure. that's not even included, steve or eric in the national debt numbers so we have huge exposure to these and one of the things that really infuriated me, eric is we continued to allow these very low down payment loans to be initiated and then guaranteed by taxpayers. haven't we learned anything, eric, about what went wrong in 2008 and 2009? >> doesn't sound like it. >> no kidding. here's the problem. these two organizations, quasi government as eric actually put it, they're responsible for about half the mortgages in this country. if they had been downgraded, that means for all of us who are going to buy a house in the future, and utilize them, we're going to get screwed! >> well, you could -- let's

hope not but i think you could -- >> we're going to wind up paying more in interest. >> interest rates, yeah. i think that's exactly right. but you know what? that's probably necessary because we're under pricing these new home loans based on this idea that they'd be 100% guaranteed. you know, i never believed that the federal government should write 100% guarantee on anything. at least let's have banks have some skin on the game on mortgage originators so they are exposed to some of the risk. that's a good way to get rid a lot of these bad loans that should have never been launched before. one last thing about this, important statistic, when you talk about all the bailouts that we did in 2008 and 2009, you know the answer to this. what institution had the biggest losses of any and never paid the money back? fannie mae and freddie mac and we have never reformed those institutions. >> and the problem is they don't have any means to ever pay them back, that's part of the problem. >> we're the means! >> all right. steve moore, thank you very

much. got to run now. the f.b.i. joining the search for a missing 3-year-old in missouri. brandon rodriguez was last seen in front of her home saturday riding her bike. her father making a desperate plea. >> i don't care where you drop her off at, just make sure somebody can get a phone number and bring her home. >> there's a $45,000 reward for her safe return. if you have any information at all, call police. >> meanwhile, newly released dash cam video shows last week's high speed chase involving three fugitive siblings accused of firing shots at a police car in florida. watch. >> man, the officer was forced to pull over after his tire was apparently hit by one of the

bullets. hours later, he allegedly robbed a bank in georgia. investigators are look into several tips that their vehicle was spotted in tennessee over the weekend. their mom pleading for them to turn themselves in. wow. talk about an incredible story of survival. after falling 50 feet and spending three nights alone in an oregon forest eating bugs and buries, pamela was rescued by a national guard helicopter and the 28-year-old said her strong drive kept her moving. really felt like i wasn't done yet and i just like kept like pushing and pushing through all the pain. i wasn't going to just like lay there. >> she had been on a camping trip with her boyfriend when she got lost and fell. steve? >> she's lucky to be alive. meanwhile, let's take a look at what's going on out there on this tuesday. and if you're down in florida, you might wake up with a wet driveway because we had a little

bit of rain overnight. right now, we have some action in the sanibel captiva area and rumbles of thunder through portions of the great lakes through the ohio valley at the current hour but right now, temperatures as you head out the door, if you've got to be somewhere at 6:00 a.m. eastern time, walk out the door here in new york city, it's going to feel like a little better than room temperature. 73 right now. about the same for raleigh and atlanta. we have a little more humidity in the atmosphere. it will be a little sticky. wear something flimsy today. in dallas, already 87 degrees. will they crack 100 today again? oh, man. 108 is the forecast high for the dallas/ft. worth metroplex area. 90's through the central plains. 70's up north. out west where it is, let's see, your daytime high should be 64 degrees. >> your money on the line as

the markets plunge around the world so can we bounce back today? our business panel straight ahead. >> how did the airlines say we're sorry? they're rolling back prices but don't expect the discount. we can tell you here how this one is going to work. >> all right. plus the g.o.p. field of presidential candidates getting much, much bigger. about the size of texas. coming up. >> that's a good clue.

>> some quick headlines. airlines are rolling back ticket fares now. f.a.a. is back in business. companies like delta, american and southwest all raised prices during the shutdown even though federal taxes weren't included in ticket prices. and sarah palin is a grandmother again. her oldest son and his wife britta welcomed a baby girl on

sunday night. the high school sweethearts married in may. steven? >> thank you, eric. that's nice. texas governor rick perry is expected to announces he's running for president this saturday, the same day as a major iowa straw poll and two days after the republican presidential debate in iowa. where do the other g.o.p. candidates stand right now? fox news chief political correspondent carl cameron takes a look. >> ames, iowa, home of the iowa state university cyclones is center of the political universe this week with fox's g.o.p. presidential debate and the long awaited ames straw poll. stakes are highest for tim pawlenty who needs a great showing if he hopes to break out of the low single digits in the polls. >> it's a fun event. we can get you tickets for free. we'll pay for them. but we have barbecue and dairy queen blizzards and bands. >> pawlenty and his g.o.p. rivals ripped president obama for the nation's credit downgrade and turmoil on wall

street. >> the downgrade in the market conditions are a reflection of so much deeper and bigger problems facing the country. and again, we had a president who is asleep at the switch. >> for michelle bachmann, expectations are highest that she'll win the straw poll. she's on "newsweek"'s cover albeit with an unflattering picture and caption. the new yorker reports as an irs tax secretary, she took only one case to court and spent much of her time on maternity leave during two pregnancies. she blamed the deal to raise the debt limit that she was against and the president signed. >> the reason why they lowered the rating is we dumped another $2.3 trillion of debt on the backs of americans in the next generation with no ability to figure out how to pay for it. texas congressman ron paul does well in straw polls and he poses a huge threat to pawlenty. >> it's about ideology, not common sense. that's the difference between this president and this potential president. >> blaming the credit downgrade

on the president's liberalism, former pennsylvania senator rick santorum is hoping for fourth place in the ames straw poll. trick is exceeding expectations and he admits his are woefully low. >> if you look at the polls, expectations are not good and if you look at media coverage, expectations are nonexistent. >> mitt romney is coming for the debate, not competing in the straw poll. romney noted when he was governor, massachusetts got a credit upgrade. >> the president is out of his depth when it comes to understanding how the private economy works. >> there you go. report by carl cameron. thanks, carl. you can see thursday's republican presidential debate on fox news. live coverage from ames, iowa, begins at 9:00 p.m. eastern time on thursday. well, we have another government agency introducing the department of innovation but there's something wrong with their logo. what's the matter with that? we'll explain. i can see it. your money is on the line today. will the markets take another big hit? our business panel on what

investors might do coming up next. come on, guys.

>> global markets tank again after wall street's worst day since the 2008 financial crisis, is wall street headed in the same direction this morning? here to weigh in is our panel of business experts, matt mccall, president of penn financial group. thomas valissis, founder and ceo of john thomas financial and fox business correspondent, and i'm going to start with you, my friend. i'm watching the markets and i saw it down 350 points last

night, bounced up to higher. went lower. what are we supposed to make of this? >> we always feel like the market knows all but you see what's been happening. you feel like the market don't know anything, man. i mean, one group comes in and says the value should be here and the other group comes in and says it should be up here. far more people feel the market should be way down. there's too much fear going on. don't we cascade in itself and the fear makes it even worse. what really surprised me and disappointed me is president obama's speech yesterday. i realize he's not moses. he can't part the red sea. i did not expect the red sea to get even worse after he spoke. and the market went down another 200 points after he came out and tried to soothe us. >> a tlot of people see the numbers and it's down 2,000 from the high. maybe this is the time to buy some stock. what would you say to them? >> i'm getting ready to jump in. anticipated buying yesterday morning. i really believe at some point today, we'll see green numbers on the screen and we'll turn it around. you know, i was in a big panic this morning. when i woke up, the dow was up almost 300 points and next you

know they're down. i'm getting that feeling that i get very rarely, when i'm almost ready to throw in the towel, that's the time for me to started buying. >> there are a lot of people out there who are probably nearing retirement. they say this is my 401k. i'm going to retire on this thing and they open the thing up and i swear to you, last night, i look at it and i go do i open this or do i not? i don't want to see what the stock account looks like. what are they going to do? are they going to end up working another five years? >> i don't think so. i think investors need to remain calm. ultimately, sellers will exhaust and there will be no more selling and people will have the liquidity on the sideline to have compelling valuations in the marketplace where they should step in and buy. over the next six months, looking back now, this is a great opportunity to buy stocks. >> let's talk about this a little bit, you know, this downgrade in the u.s. credit means that bonds might be for the first time in history, bonds might be risky. >> yet, we'll never see a bigger reaction to the downgrade than

yesterday. what happened yesterday? bonds soared in value and the interest rate they had to pay to attract buyers fell to some of the lowest levels in 40 years. less than 2 1/2% because we were so fearful, caused by a downgrade of the bonds that we're now putting money in because we're fearful and there's a self-healing quality here. >> let's help people out here. bonds, safe bet or not a bet? a lot of people are saying i have thrown a lot of money in bonds because they were safe. are bonds safe? >> i would not put money in bonds right now. not because the u.s. will default. i truly believe that rates will go up, bond prices fall. and you could lose money if you're a bond fund, 10 year yield, we have 2.2% to 2.1%. i believe that will spur the big market rally to the end of the year. if anything, i'm selling bonds and moving into stocks. >> stocks are cheaper now, pound for pound than they were in 1990 whereas gold has doubled in the past two years. real estate sucks. oil is crashing. where else are you going to put

your money anyway? >> let me ask you this question. this is where i would do it, only place i would put new money except for if you're about to retire. if you have a five to 10 year outlook. stocks high quality stocks that yield big dividends right now. only place to be. >> i think the energy sector is a great sector. you had a great pullback on the energy sector. right now, the valuations in the energy sector are very compelling. if you look at s&p 500 earnings, they revised upwards for 2011 and 2012. >> you're speaking greek to me, by the way. what about -- >> but then, it's risky. now i'm watching markets fall 300, 500, 1,000 points. you want to be in risk right now? >> i think tech -- companies will always need tech to expand. tech is the growth industry of our age. and you should always be in tech. >> how about -- there are a lot of -- >> families who are reliant on that stock portfolio, shouldn't

they be in at&t and verizon and things that pay big dividends that aren't going to fall 20%, 30% in a month or so? >> what i love about this, you look at mcdonald's, for example, they have great numbers. solid company. they have a dividend of about 3%. that's more than you're getting locking up your money for 10 years in u.s. government. you're getting 3%. that's where it should be. >> that's where i'm headed. give me good, quality stuff that people are out there watching saying boy, i have a few bucks. i have to put it in. where do i go? do you have anything? >> i mean, again, i'm going to stay with my energy thought. energy is a great place to put money there. >> go with the high dividend stocks. >> we have a winner, mr. matt mccall. thank you. and we're keeping an eye on this news, the news alert, the london burning as riots continue to grow. they were calling the military, we hear, the latest details top of the hour. and then he uncovers secrets

from the f.b.i., secret service and wait until you see what he found on marilyn monroe and bobby kennedy plus new calls from the treasury secretary, tim geithner to step down. will he cave to the pressure? that's coming up next.

>> good morning, everyone. it's tuesday, august 9th. i'm gretchen carlson. as you watch the dow continue to dive. that's from yesterday. the world now reacting to our bad news. markets taking another dive and

now are they on a slow recovery? could wall street stand another hit today? all those questions we're going to try to answer like what the heck is going to happen to your money today? >> meanwhile, london burning, the city erupting into flames overnight as violent riots grow for a third day. and they just decided to call lawmakers back to the city. could the military be next? live in london. >> we have another government agency introducing the department of innovation but their logo is not so innovative. it's down, "fox & friends" starts right now. >> good morning, everyone. you know, some things never change even though the stock market is crashing like little kids still get sick. i spent the whole night up with my son throwing up. oh, well, here we are today. see, life just continues,