service members and to say thank you to their families. jenna: while it's important that the president's there, we can't forget that the families are there as well. we'll be thinking of them today. thanks for joining us, everybody. jon: "america live" starts right now. megyn: thanks, guys. this is a fox news alert. a credit downgrade and two historic stock plunges resulting in the new calls for congress to return from vacation and get to work with the white house to fix the u.s. economy. welcome to "america live," everyone, i'm megyn kelly. the pressure is now mounting in washington from both sides of the aisle in part just one day after the dow plummeted more than 630 points. some lawmakers on capitol hill telling fox news they think congress should cut short its break and seize the moment saying this is no time to be on vacation. bret baier is the anchor of "special report," he's with me now. we had heard this was something that had begun with some house conservatives, now you've got

charlie rangel coming out and saying they need to get back to work. more and more folks seem to be saying this doesn't look good, at a minimum, for them to be on vacation while the economy's bleeding and the dow is hemorrhaging and we're getting credit downgrades. >> reporter: sure. and, megyn, you're right. there are more and more calls for action and for congress to come back and do something. the problem is you need a plan fist. you need a blueprint of what they're actually going to get done because as we saw in the last three weeks before they left for recess, before this debt ceiling deal that eventually passed both chambers there was a lot of back and forth and a lot of grinding to a halt. there has to be a plan, a call of action that they can actually believe that they can get through. either chamber of congress and then to the president's december tock try to effect things. right now there's not a sense that there is such a plan, and there are calls for the leadership to come back and possibly work with the president to see what can get done

quickly. but it's not a positive story after you look at the last three weeks of congress battling back and forth. megyn: right. so, basically, the lesson is they just tried to do this, they pretty much failed, they didn't get anything credible through at least, and so what's the point? if they come back, they're not going to be able to get anything done, so what's the point of resuming legislating at all really? is. >> reporter: right. now, you have people like bill kristol on my panel last night who said, listen, they should come back, they should pass what they know they can agree on in a bipartisan fashion, they should get it out of congress, get it to the president's desk and do what they can collectively. there is a call to do that. whether that's a reality and congress is actually going to come back, i think if the market had taken another tumble today, if emergency had continued and, obviously, it's still an emergent situation, but if it had continued to tumble, i think there would have been more pressure to do just that. megyn: because everyone knows

when congress acts, the markets skyrocket. i mean, the markets love to see the lawmakers in their offices passing new legislation. [laughter] let me ask you this, bret, you've covered the white house for years, you know a thing or two about politics in the washington. some people are saying they need to come back because it will draw a contrast between the lawmakers in congress and be president obama -- and president obama who's got a vacation planned for the month of august. and now some are saying president obama should not take his vacation because it's going to look bad for him to be -- i mean, do we always hear this? is there ever a great time for them to go on vacation? >> >> reporter: no. i mean, especially in times of economic turmoil when the economy is bad. but there's always something for a president to deal with whether it's an overseas action, whether it's two wars, whether it's, you know, i mean, don't forget we still have this action in libya. it's technically military action, but it's really a war. led by nato. you have things going on all the

time. so there are calls on both sides of the aisle about the imaging around a presidential vacation. there's an imaging problem for the congressional recess as well. there are things happening all the time, so whether they can get things done when they get back in town, that's really the bottom line. megyn: you know, if i'm in the u.s. congress, i'm going to take a look at the latest rasmussen poll that says only 6% of the american people rate their congressman's performance as good or excellent, and i'm saying, i'm taking my vacation. how much lower could it go? is. >> reporter: you're already at the bottom of the barrel. [laughter] megyn: thanks, bret. >> reporter: see ya, megyn. megyn: as americans grow increasingly unhappy, we may see a couple of front runners emerge in the republican presidential field. bret baier will host the first iowa presidential debate this thursday. that's going to be a good one. check out the candidate profiles plus video clips from the previous debate in south carolina. all that and more, your front

row seat to politics at foxnews.com. well, we are also seeing new fallout from barack obama's -- president obama's speech yesterday. not really a speech, just some remarks which you saw right here. he tried to bring confidence to weary americans, but some critics are coming forward saying the president used the moment to intensify the blame game already taking part in washington. take a listen to fox news contributor charles krauthammer. >> he comes out there, and he blames, of course, tea party, europe, japan, the middle east, probably god because he's the author of earthquakes. everybody except him. leadership starts at the top, at the presidency. megyn: and it doesn't end there. a fair and balanced debate on what the president should and should not be doing just ahead. fox news alert, police are now predicting a violet end to -- violent end to the crime spree of three fugitive siblings. the doherty family has been on

the run since last week after shooting at a police officer in florida and then allegedly robbing a bank in georgia. police say text messages and online posts suggest the trio is heavily armed and extremely dangerous. take a listen to the warning that they're sending to the public and to fellow police officers as well. >> we know they have an arsenal of weapons. if you're a law enforcement officer out there, please, use caution. remember, these three are very dangerous. they will shoot at us. they'll shoot at our citizens. use everything you can to be safe out there and remember, if you engage them, you'll be going to a battle. megyn: i mean, when have you ever heard a police officer issue that kind of a warning, right, trace gallagher? >> reporter: i mean, really, megyn, since wyatt earp and his brothers terrorized the old west, you haven't seen outlaw siblings be this much of a concern to police officers. we're talking about 21-year-old ryan doherty, his sister 29-year-old lee grace and their

half brother 26-year-old dylan doherty stallings. now, the law has been on them now, they've been on the lam for one week, they've not been seen, but they have been sending text messages though the police have been keeping those close to the vest only saying they reveal a dangerous mindset and a very tight bond. one text that was sent to their mother reads, and i'm quoting here, there's a time for all of us to die. police believe they will stick together for better or worse. remember, this chase when police in florida last week tried to get them. they led them on a 100 mile-per-hour chase. they fired over 20 shots at police officers, one bullet eventually punctured a police officer's car tire. that's what ended it. listen, now, to part of that chase. >> he just cut through the parking lot of cvs at morris

bridge. he's now -- oh! fired several more shots at me. >> reporter: seven more shots. a few hours later in many georgia police say the doherty gang robbed a bank. they also believe they have machine handguns. they apparently fled florida because they think their brother ryan who now has to register as a sex to fender would not be able to see his baby who's on the way, his girlfriend is pregnant. their mom has begged them to give themselves up and come home, and the fiance of lee grace said, and i'm quoting here, this does not appear like it will end well, and i think police are on that page exactly, megyn. megyn: wow. trace, thank you. so where are police exactly in catching this trio before it's too late? coming up, an fbi special agent on the case joins us live. plus, we will talk with a couple who lived next to these three

siblings for 20 years and, boy, do they have some interesting observations. another alert coming in from the campaign trail. with just days now million the critical straw poll in iowa, texas governor rick perry is suddenly casting a huge shadow over the gop field. now, he's heading to iowa this weekend after the straw poll, and he's threatening to steal some of the political spotlight from the candidates already there. chief political correspondent, campaign carl cameron is live in arnold's lake, iowa, where michele bachmann is expected in moments, but perry is the story right now. carl, what's your breaking news? >> reporter: hi, megyn. well, it's about his visit to iowa. governor perry has long been scheduled to visit on saturday, the same day as the straw poll, south carolina where he'll take part in the red state conservative bloggers' conference. after that a flight to new hampshire. this has been reported. the appointment in south carolina has long been scheduled. the new hampshire trip is a new adjust revealed earlier this

week, but on sunday he'll come to iowa, the first in the nation caucus state, and he'll take part in a lincoln day fundraiser with charles grassley and a number of other gop luminaries in the hawkeye state. waterloo, iowa, is the very town that michele bachmann announced her candidacy, the town where she was born. the latest gallup poll shows that mitt romney still leads the race nationally, and now rick perry has moved into second place with 17% trailed by ron paul l at 14 and michele bachmann at 13%. now, bachmann is poised and well positioned, well organized and she open os to -- hopes to win the straw poll on saturday. this was meant to be her breakout moment, sort of launching her into the stratosphere of political popularity. but with perry coming to iowa the very next day and going to her hometown, it looks like the long, tall texan is going to leave a mark in iowa almost

immediately. megyn? megyn: it's on. campaign carl, thank you. >> reporter: you bet. megyn: well, "newsweek" making new headlines with its latest controversial coffer. it features michele bachmann with the title "queen of rage" underneath her photo. even the national organization of women is ticked off about this one, and wait until you hear the magazine's defense, next. plus, democrats turning to an unlikely ally in the debt debate: ronald reagan. so what would reagan do if he were in office today? we will ask michael reagan when he joins us live. and remember the montauk monster? well, take a look at this. it is a big mystery involving the strange creature town on the side of the highway. no one knows what it is, they actually have a team of investigators appointed to figure it out, and we'll join them. ♪ [ male announcer ] this...is the network --

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megyn: well, chilling 911 calls shedding new light on a shooting masker in ohio -- massacre in ohio. seven people were killed before the suspect was shot dead on sunday. one of the victim was an 11-year-old. the boy was cornered in the basement of a neighbor's home, that home homeowner making this frantic call -- >> i heard the gun. i heard the boy hit the floor. >> okay, just stay in your basement, ma'am. we'll come and talk to you after

we apprehend him. >> are you guys here? >> they're there. do not go upstairs. >> are you guys here? >> we're not at your house. no. stay, just stay in your house, okay? megyn: oh, that's awful. police are still trying to work out the details and also figure out a mote i have for the ram -- motive for the rampage. well, new controversy o over a photo of congresswoman michele bachmann featured on the cover of "newsweek" magazine. bachmann's staring wide-eyed into the camera with a caught off guard kind of smile, and she's looking just above the lens, or so it would appear. underneath appears the headline, "the queen of rage." now some conservatives and the national organization of women -- you don't usually see an alignment there -- are all coming to her defense accusing "newsweek" of sexism and political bias. caroline mays a reporter for the daily caller who specializes in

women's issue, thanks for being here. >> thanks, megyn. megyn: when was the last time you heard n.o.w. aligning their criticisms with michele bachmann? >> it's rare, but it's really striking that they went ask ahead and took her defense this time around. they've been having a lot of attacks against her, and, i mean, i think it's just the final straw. she's been in the spotlight, and she's being hit for it. megyn: all right. so you spoke with the head of n.o.w. yesterday? >> yes, i did. megyn: all right. and who did you speak to and what did she tell you about the cover? >> teri o'neill. she said what they look for is gloria steinem's test. if this were done to a man or if it ever could have been done to a man, then it's not considered sexist. but because, obviously, this is, she's labeled a queen and, um, put as crazy it's, um, more

sexist. megyn: now, apparently, "newsweek" has come out and said, look, you know, there are other photos of her, but she had the same look in a lot of them, and then they posted some of the outtake on their web site. we took a look at those outtakes, there were actually quite a few nice shots of michele bachmann. here's one where she doesn't, you know, have that look that they captured in that photo, there's a couple others where she's meeting voters, i mean, there's another one. i don't know, is that, basically, the defense, that they couldn't find one that didn't look that intense? >> i guess it is at this point. but, um, they are, i mean, basically, they're attacking her for being crazy, being over the top, being insane. but, quite frankly, what she is is authentic. and she, um, she really connects with voters, and i think when people actually get the time to listen to her, they will see that she's actually not crazy. so these attacks are not going to hurt her that much just

because -- megyn: well, i don't know. maybe they will, maybe they won't. we've talked before on the program about how certain women politicians it's not limited to conservative women, but you see that often, get deemed and pardon the terms, folks, as either nuts or sluts when they're running for office and that there is a theme of sexism that comes out in particular against women, sometimes candidates who are running, where you don't hear those kinds of things being done to men. let me tell you what tina brown says who runs "newsweek" and had the comment on this. of she writes: michele bachmann's intensity is galvanizing voters in iowa right now, and "newsweek"'s cover captures that. so she is suggesting that they were trying to capture her intensity. and to that you say what? >> well, i mean, i guess it's all in the eye of the beholder if that's what they want to say. it seems to me that the majority of people looking at it say she looks like a nut job. and, i mean, quite frankly, when you look at what she's actually

saying, some might consider her a nut job, but i think most people would say she's not crazy. megyn: it's not the first time "newsweek"'s come under scrutiny for its cover, people may remember this cover of sarah palin showing her in running shorts for, you know, it was a picture she posed for for a running magazine, and then they took it and put it on their cover, and sarah palin said it was taken grossly out of context s this how you really feature a serious candidate for president? anyway, we'll see. tina brown's welcome to come on and talk about it herself. thank you very much forking with here. president obama trying to calm the markets after our credit downgrade but offering a few -- well, few new details on a plan. >> he comes out there, and he blames, of course, tea party, europe, japan, the middle east, probably god because he's the author of earthquakes, everybody except him.

leadership starts at the top with the presidency. megyn: up next, does krauthammer have a point? we'll have a fair and balanced debate. and breaking news on this woman, vanishing from the same aruba resort town as natalee holloway. now the desperate search underway to find her. and some shocking scenes unfolding in the london with new reports of rioters forcing people to strip naked in the streets. why? stunning new images coming in as thousands of british police scramble now to stop the mounting violence.

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megyn: we've got a developing story that may sound familiar to you. police in aruba are searching for a missing tourist from the united states. 35-year-old robin gardner of maryland was last seen on august 2nd. she was visiting the island with a man named gary. he told investigators that gardner never made it back to shore after the pair went snorkeling, but police say he has changed his story several times and have detained him now for further questioning. gardner vanished from the same resort town where natalie holloway was last seen six years ago. well, new information, now, on those rioters in the u.k. suggesting that they are not just targeting police and businesses anymore. reports now that people in the streets are being attacked at random. victims robbed of the clothes on their back. forced to strip down in the middle of the riots. and as the situation appears to spiral out of control, many are now questioning the fate of the

2012 summer olympics as police in the host city are, apparently, overwhelmed for a third straight night. amy kellogg is live in the our london bureau with more on this. >> reporter: the mob even broke into a restaurant in notting hill last night and literally yanked wedding rings off some of the patrons' hands. i'm going to show you the headlines of the papers because they really do set the mood here. yob, and that would be thuggish ne'er-do-wells in british speak rule. these people, apparently, don't really have a cause, they're just going on a nightly rampage, and then here, descent into hell, and this picture captures something really frightening. this is a woman jumping to her safety from a burning building. the burning building that you see in this video is of a furniture store that was run by a family for five generations

and then, of course, you saw the woman leaping from the flaming building. sirens have been going off there already this evening, it's not even dark here yet with reports of people packing up their kids, their families just to get out of dodge to be on the safe side. now, the main feature of these riots which started out politically motivated after the killing of a man by police has really now just become wanton looting with the looters, apparently, so brazen that they appear to be more afraid of cutting their feet on glass than they are of getting arrested by police. here was the prime minister who hustled back from vacation today. >> these are sickening scenes, scenes of people looting, vandalizing, thieving, robbing, scenes of people attacking police officers and even attacking fire crews as they're trying to put out fires. this is criminality, pure and simple. >> reporter: people have been heard, megyn, saying, come on,

let's have some fun. so this is really a disturbing scene that's playing out in many neighborhoods, mostly on the outskirts of london, but some of it has creeped in towards the center and then we've had birmingham, we've had bristol, other cities kick off. we're hearing reports that it's already happening in birmingham tonight. we know that a lot of shops in and around london have shuttered themselves preemptively, protectively already this evening, and police are contemplating the use of plastic bullets finally. i mean, here they don't use water cannons, they don't use tear gas, they don't want to further aggravate a situation, but at this point, as you can see, it's out of control, and they're looking for a more robust response. back to you, megyn. megyn: unbelievable. thank you, amy kellogg. well, this family of fugitives on the run. coming up, we'll talk with the fbi about the fears over this search. and did human life come to earth from the great beyond?

are we the aliens? we'll show you the nasa research. i'm saying nasa research that could change everything you learned in the grade school. plus, charles krauthammer accusing president obama of failing to lead on the debt crisis, and he's not the only one. krauthammer calling president obama's remarks yesterday, quote, weak, plaintive and small. is that fair? we'll debate, straight ahead. >> i intend to release my own recommendations. when will he do that? >> i don't have a date for you. >> how will he do it? >> i don't have a method for you. >> in what form will he do it? >> i think that's the same question. motorcycles, boats, even rv's. nobody knows where he got his love for racing. all we know is, it started early.

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as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. >> fox news alert on a story we just brought to you moments ago. we have now learned that prosecutors have ordered a man be held for several days while they investigate what happened to a missing tourist from the united states. this woman, five-year-old robin gardner who's from married was last seen -- maryland was last seen in aruba august 2nd, she was visiting with gary giordano, he told investigators he never -- she never made it to shore after they went snorkeling. giordano has changed his story and now he's being held. gardner disappeared from the same town where natalee

holloway was last seen six years ago. >> mega doppler live hd 70003 days after standard & poor's downgraded -- megyn: three days after the credit rating was downgraded, president obama gives a debt pep talk to americans, some critics however are calling it anything but, saying president obama used the moment to ramp up the blame game now taking over washington. here is fox news contributor charles krauthamer on special report. >> i was sort of stunned by his appearance today. why did he go out there? he went out there with the dow at minus 400, after he spoke he had a minus 600. he looked weak, plaintive and small. we complain because he comes out there and he blames, of course, the tea party, europe, japan, the middle east, probably god because he's the author of earthquakes, everybody except him. leadership starts at the top with the presidency.

>> megyn: christopher han and chris blant, host of the chris blant show, chris squared! thank you very much for being here. >> megyn, good to see you back. >> welcome back, megyn! >> thank you very much, megyn: there you have it, charles krauthamer teeing it up but he's not the only one. ice been -- he's had criticism of the president. britt hume has a saying i like, he says winners take responsibility, losers blame others. did the president miss an opportunity to come out yesterday and say the buck stops with me? here's what i am going to do to improve things for americans? >> well, you know megyn, that's a good point, and i think that at times when you are the president, you have to say the buck stops with me. but listen, when this is all looked at years from now, the crisis will be evaluated on who was willing to give an inch and who was willing to shut down the government

for minor or for idealism that really didn't make sense in this economy. we are at a point right now in the economy in the united states where we need to be spending money to get the economy going. everybody disagrees with me on this, chris is going to disagree with me on this but the stimulus failed because it was too small and this budget deal is going to fail because it doesn't invest in america and doesn't prime the pump. what most people like me and charles and other people say, it's taken by most americans with a grain of salt, so you know, really, it's up to -- megyn: look, people listen to charles krauthamer, they listen to you, they want color to the debate but the question is whether he's right, the president coming out and trying to calm the markets, which he didn't, and trying to reassure americans by saying i'm going to have a plan on the debt soon, you know, christopher, it was -- i should say chris plant, krauthamer believes he fell short and didn't achieve his own goal.

>> i think charles was being generous, actually. this president has a long and storied history of blaming everybody else for everything. previous occupants of the office were considered to be the most powerful person in the world. this president is apparently powerless, and once again, as you just mentioned, he said in the coming weeks, he's going to have ideas? jobs, jobs, jobs, laser-like focus, job number one, job creation, last summer was the summer of recovery, we're in august of the following summer and he's going to come up with something in the fog weeks. in the meantime, it's everybody else's fault. i mean, at this point, i'm beginning to think that it's the fault of columbia university and harvard law school, who obviously left him terribly woefully ill-prepared for the job that he has before him now. he's not getting the job done, therefore, he must pass the buck, he must blame everybody else. i can't even find liberals to call into my show to defend him anymore because there's nothing to defend. megyn: you have to ask christopher to call in!

christopher, i want to get your response. let me add to what chris said, because he's talking about the president's undergraduate education. there are some in education who support president obama who are also feeling the way chris is. "the new york times" had an interesting opinion piece this weekend from a guy, a professor at emory, an obama supporter, who says those of us who were bewitched by his eloquence on the campaign trail chose to ignore disquiet aspects of business biography, that he's accomplished little before running for president, never run a business, and had an unremarkable career as a law professor. it seems like some on the left are starting to question whether he can actually change things for americans. >> well, you know, i don't question his ability to change things. i'd like to see him be stronger in his beliefs on how to get this country going in the right direction. i think the biggest problem he's had is he's given in too much to republicans. when he took office in 2009, he should have said we're in a crisis, forget this $1 trillion stimulus or

$800 billion, it should have been $3 trillion. we should have invested more, we should be building bridge, we should be building roads, we should be building airports, we should be building infrastructure this this country and we're not and we're missing an opportunity to do that and it's what let this crisis continue as long as it has. megyn: if he had done that, he tried to strike a middle, you know, a balance, he tried to go the middle road and not go completely to the left on this thing. >> his big mistake is he thought these guys will work with him. they will not work with him under any circumstance. they want to see him fail, want to see this country fail and they are getting what they want, through this deal and previous deals they've come up with. >> mig the last word. >> again, the power -- poor, powerless president who has 60 freshmen members of congress who don't know where the men's room is and they're running the show in washington. it's pathetic, chris. and the american people are becoming sad and disgusted by what we're watching here. this president, i mean, again, spend $3 trillion instead of $1 trillion? that makes everything

better? >> yeah. >> the bridges, the roads? this is like mallist economics. if you want to blame somebody, blame saul malinsky. this is the book he's using. >> it's time for an election. >> it worked in the depression. >> we're -- we're about to have another one, so we can try it all over again. >> megyn: i'm feeling depression right now! we've gone on too long, they're yelling in my ears. thank you very much, great to see you. >> thank you megyn. megyn: new leads in the search for three on a violent crime spree, wearing ski masks and pointing ak-47s, up next, an fbi agent who's working on the case and a couple who live next door to the siblings for 20 years. by the way, later in the show we're going to reveal how you can win the lottery four times over if you can figure on the how to game the system. we're not supposed to be teasing that now but it's the only story i really want you to hear today, because the woman won it four times

and she apparently has a method for doing it! i digressed. >> remember the mysterious thing found dead on the side of the road in minnesota? we showed it to you yesterday. find out how the authorities may not be closer to identifying it. i do not joke, the authorities are on the case. >> the maid who says she's raped is taking her powerful alleged attacker to civil court. suspicious? or her only hope of justice? we break it down on kelly's court. i'm here because there's been said a lot about me. that's why i had to be here. and let people know. a lot of things he saw -- you say about me, it's not true.

megyn: fox news alert for you now, the fbi is now stepping up its search for three siblings on a violent crime spree. police say ryan doherty, his

sister, lee grace doherty and half brother dylan doherty stanley are still considered to be armed and dangerous. now, this all started tuesday in florida when an officer tried to pull them over for speeding. instead the trio took off and fired at least 20 shots at the officer's car. that officer, thankfully, not injured. then they turned up next, about 200 miles north, in valdost anchts georgia, police say they robbed a bank marrying masks, carrying ak-47s and firing bullets into the ceiling. we'll speak to someone who knew these three. but first, brian lamkin is in charge of the atlanta office, thank you very much for being here. this is an incredible allegation against these three. what right now -- let me start with this, what right now do you believe is the motivation in this kind of crime spree? >> well, the initial motivation that we can tell

on the pascal county shooting in florida was ryan was not very happy with the court outcome of a sentencing that he received. he was under ankle bracelet monitoring and shortly after cutting that off is when the chase ensued in pascal county, florida where the shots were fired at the officer there. megyn: they've got a long list of criminal problems behind them, 20 felonies among them, apparently, with troubled pasts, each of them, but the three of them decide to take off because of ryan's i guess, you know, issues, and shoot at a police officer. you folks are calling it attempted murder. i mean, the officials are. then rob a bank. now where do you believe they are, what's the latest on the search? >> well, we're continuing to follow several leads throughout the southeast, we're working with each of our local law enforcement, our fbi officers that are receiving tips along the way. we're encouraging the public and even friends and family

members that if they have information about their whereabouts, to get them to turn themselves in to local law enforcement so we can end this peacefully. megyn: can you tell us how much money they got from the bank? >> not at this time. i know that's still under investigation. that aspect of it. as far as the evidence is concerned. megyn: yeah, it directly relates i guess to how long they can stay on the lamb. good luck to you, be careful. >> thank you megyn. megyn: we're going to bring in pastor john and evonne clinton, they are dohertys' neighbors and have known them 23 years. thank you very much for being here, evonne, you too. let me start with you, pastor, how do you know these three? >> well, being the pastor of the church, i've been there the last six years, and dylan and his brother, ryan, have lived next door to the church for about the last two years or so. >> megyn: what kind of kids were they? >> i knew dylan. i really didn't know ryan or

lee grace, but i did know dylan, he was really a helpful guy when it came to things that needed to be done around the church. his father one time wanted to help out with our par sonnage by putting a fence tarn and he came and dropped it off and i'm just totally shocked by everything that's gone on. it's just -- it's almost too much -- >> megyn: really? >> yes. >> megyn: yvonne, you knew the others better, you knew lee grace a little, yes? >> yes. i taught her a few times. really nice girl. i would never imagine anything like this. i just hope that things can be resolved peacefully, a pleasant lady to talk to. so i just -- we feel bad about what they've gotten themselves into. megyn: what's the deal with ryan? his name keeps coming up -- i don't know if -- if he's the ring leader or the one in most trouble. what was your impression of him. yvonne? >> well, really, as neighbors we never had any

problems with them. they worked around their farm, they did a lot of, well, you know -- a lot of different things around which, cleaning up and straightening up, and really, like i said, we had no problems, no idea that they had charges like they had. just really shocked by it. megyn: now, there is a report that beneath the home that these three lived in earlier this year, investigators found a bunker that they had two, 40-foot cargo containers, there was a hallway leading to the bunkers, it had electricity, running water. did you two ever observe something along those lines where you live? >> i guess the thing -- it was totally a surprise to us when they discovered these bunkers. i mean, there was a lot of activity going on over there, but it was a former horse stable, so they were clearing land and you know, with a bull doeser, moving -- bulldozer, moving trees and things, but we just figured since the family no

longer had horses there, they were just making extra room to do something of that nature. i mean, the one thing that would get our attention from time to time of the gunfire. they a lot of times were out in the back yard, target practicing, and it was not just with a shotgun or a rifle, it was sometimes loud, automatic weapons. and that got our attention, because of course, being next door and having children, he with didn't -- even though we're in a rural area and there's a fence, we wanted to make sure our children were safe. megyn: absolutely, pastor. well, we're glad both of you are fine and hope this comes to a safe conclusion. pathor, yvonne, all the best >> thank you so much, megyn, we're glad to help in any way we can. we hope that they'll turn themselves in peacefully. megyn: thank you sir, we do, too. just a few hours from now, polls will close in six, high stakes recall elections in wisconsin, the results could give us a glimpse on how many americans may plan to vote in 2012 for president. this is all in connection

with the unions' dispute that took place in wisconsin and now six of the lawmakers may be recalled, republican, up today. >> this creepy looking picture was enough for the picture was enough for the minnesota state police tod. call in specialove my weit clas investigators. see why.

megyn: a mystery unfolding in minnesota, road kill rarely draws this much attention but the state of minnesota had to call in special investigators because no one is sure exactly what the heck this thing is. trace gallagher, live in the west coast newsroom, i've never heard it before, special investigators for road kill! >> reporter: it's not often you have the minnesota department of natural resources and animal control that are looking at this thing like i don't know! no idea what it is. and you put this up on the

screen here, this was road kill found on the side of the road. yeah, it's graphic here, but look at it, the skin is white. i want to point your attention to a couple of different things. focus on what's on the paws. there are five claws on each of the paw, right? look at how long the nails are. dogs have four, so it's not a dog. some thought maybe it's a dog. now look at the back. it might have mange or something but the skin is white and then it has tufts of hair on the back of this thing. listen to the woman who found it first. play this: >> we saw something in the middle of a road and it wasn't a dog or cat because it didn't have hair. it had a clump of hair and the rest of skin. >> to me it looks like half human. >> you know how they do the government assessment on animals? i know it's crazy, but -- >> yeah. >> an animal like this -- >> she posted it on the web, it went viral and everybody has weighed in. some think it might be a

badger. there's a badger on the right. look at the left. doesn't look like a badger to me. some thought it might be a wolverine. it may be like a wolverine? some thought it might be megyn kelly's famous love chickacabra! >> megyn: i don't know what that it is. >> some thought it might be a dog, a cat. by the way, a lot of dogs and cats are missing. megyn: i'm with that lady, government testing. we're going to follow that up. trace gallagher, thank you. >> you bet. megyn: she won the lottery not once but four times in a couple of years. how did she do it and can you do it, too? there is a secret to winning. >> what would reagan do about the debt debate and downgrade? michael reagan joins us live with his thoughts on the washington blame game. >> since the 1950s, congress has always passed it, and

every president has signed it. president reagan did it, 18 times. >> but ronald reagan on his desk had a placard and that little placard was real simple. it said it can be done. so i was the guy who was never going to have the heart attack. i thought i was invincible. i'm on an aspirin regimen now because i never want to feel that helplessness again. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. talk to your doctor, and take care of what you have to take care of.

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price you can afford. call this number or go to selectquote dot com. selectquote. we shop. you save. megyn: fox news alert, it is 2:00 in the east, and we are couping down -- counting down now to the end of vote anything a crucial election that could preview what's to come in the battle for the white house. welcome, everyone, i'm megyn kelly. polls are open for another eight hours in wisconsin. the voters there today deciding whether to recall a group of republican state senators who supported wisconsin governor scott walk or's -- walker's controversial legislation, a battle that took the national stage by storm as republicans successfully stripped unions of most of their collective bargaining powers. now this vote can serve as a symbolic decision ahead of the

2012 presidential race. matt kibble is my guest now. exactly how does this become some sort of a proxy for what we may see in november. >> hi, megyn. well, i can tell you from what i heard from the tea party yesterday all the way to university of wisconsin madison political science professor who's been tracking this, they both said the same thing: america is watching. and america is watching what has been a conservative revolution here in wisconsin through the gop and through governor scott walker's policies and his changes, his budget reforms and certainly the changes in collective bargaining. on the other side, the unions, labor leaders, community organize oars, many on the progressive or liberal front see this as a clear line in the sand for their agenda. megyn: they want these republican lawmakers out, we've got six republicans whose jobs are on the line, then there's going to be a recall election for three democrats later.

but what happens? what is the buzz now about whether this recall effort for these six republicans is likely to succeed? >> well, i think if you saw a memo recently from we are wisconsin which is a coalition of a lot of organized labor, some of the most powerful organized labor in the country, they are saying they are cautiously optimistic they can pick up two seats today for democrats, maybe three. but they don't, they say that being overly confident is quite dangerous. megyn: who's got the better ground game? >> well, i tell you who's got the better ground game, most will tell you are the democrats here because they've got something to fight for where republicans are looking to fight against. when you've got something to fight for, you always fight and scrap a little bit harder. megyn: what happens then when, if two of these republicans or more get recalled, i guess it depends on what happens with the democrat recall elections, but what happens if balance of

power, does it affect at all the legislation that we saw passed? >> yeah, definitely so. you're talking about a shift. this is, this is a test for the soul of the wisconsin senate right now. and this, many people say, is an overture for what could happen organizing push to recall the governor of the state which would or could occur after the first of the year after his first year in office depending on how many signatures they get. but really what this is, megyn, is the control of the senate. and right now it's the edge goes to the republicans, 19-14. if democrats pick up a few seats here or there, they're back in control. they get to dictate where this policy shift is going. megyn: and several other states who are interested in or already pursuing similar reform measures are watching this closely. matt, thank you. >> thank you. megyn: well, hitting rewind on the controversial wisconsin legislation, republican lawmakers, you may recall,

passed in this bill on march 11th, and it was signed that very same day. it limits wisconsin public employees to bargaining over their wages pretty much only, raises limited to the rate of inflation unless the voters approve larger increases, and it requires public employees to contribute 5.8% of their salaries to their pension plans. in addition, it requires them to pay at least 12.5% of their health care premiums. as you may recall, the teachers' union was very upset about the legislation. well, on the national political stage brand new poll numbers just in showing a new low for the u.s. government. according to the declaration of independence, governments derive their authority from the consent of those they govern. according to rasmussen reports, just 17% of voters say they consent to the current federal government. that is the fewest ever. the man behind those polls is scott rasmussen. scott, great to have you here. >> great to have you back, megyn. megyn: thank you very much. that's a new low, only 17%

believe the congress is governing with their consent. >> well, it's the federal government, and it's really not just about the current congress or the current president. both parties have worked on a bipartisan basis for decades to alienate the american people and, you know, they've succeeded. no matter how we phrase this question, people are upset. a plurality now believe that selecting people randomly from the phone book would do a better job than the current congress. megyn: wow. speaking of which, one of the things that's been on the table this past week has been who's to blame or to credit for what we saw happen in washington with the debt ceiling and the arguments back and forth. the term economic terrorist was used to describe some in the tea party by some on the left who don't like them. you asked people, are members of the tea party economic terror es in your view? -- terrorists in your view, and what'd you find? >> 29% say, yes, 53% of democrats, though, half the democratic party say, yes, they

are economic terrorists. republicans overwhelmingly reject the comparison. most unaffiliated voters do as well. i think it's important to point out nobody came out looking good in the whole debacle around the debt ceiling, and most americans don't think the congress will deliver even the spending cuts they've already agreed to, but calling the tea party members terrorists not panning out too well. megyn: and speaking of how disapproving they are of those who work in washington, d.c., it's another new low. you polled and found out that only 6% of voters polled would rate the performance as excellent to good of their congressperson. just 6%. >> that's right. and, look, these numbers are showing the same level of anger and frustration that we saw in november of 2010, strong disapproval. the president is back up to those levels. 62% say if they could vote to the keep or get rid of the spire congress, they'd say throw 'em all out. megyn: what does that mean? because republicans now run the house. you know, obviously, democrats still in charge of the senate,

but is it a partisan rebuke, or is it if you are a lawmaker elected to congress, they don't like you? >> it's blaming whoever's in charge. in 2006, 2008 and 2010, voters voted against the party in power. they are perfectly willing to do so again. they're not happy with either side. six out of ten disapproved of the republican handling of the debt ceiling, six out of ten disapproved of the democrats. megyn: so what happens in 2012? could we see another wave election? >> we certainly could, and i think there's a greater danger. americans are so frustrated. they feel they're voting for things, and they're congressmen aren't listening, the government isn't responding. they voted every year for politicians who promised to cut spending and taxes, but government spending has gone up every year since 1954. people are questioning how come this is happening. why isn't the system working. megyn: lastly, you also throw this one out there, voters are more convinced than ever that most congressmen are crooks? >> that's right. 46% say most members of congress

are corrupt, highest we have ever found. and, again, it's measuring up to this overall cynicism. 52% think their own representative in congress, their own person is likely to trade votes for cash. megyn: oh, scott. that is depressing. [laughter] >> megyn, i'm sorry to welcome you back with this news, but people are fed up with the way our government ask working -- is working or not working. megyn: it's compressing that -- depressing that people believe it. let's hope that it's not true. scott, thank you. >> do thank you. megyn: well, president obama honoring our fallen heros this afternoon, traveling to dover air force base in delaware, observing the transfer ceremony for those troops who were killed in saturday's helicopter crash in afghanistan. these are pictures of just 12 of the navy seals who died in the tragedy. a total of 30 american service members lost their lives in the deadliest combat incident of this war. national security correspondent jennifer griffin is live at the

pentagon with more. >> reporter: we now understand that centcom has assigned brigadier general jeffrey holt to investigate this crash. there will be a separate crash investigation carried out by the army aviation board, um, and there may, in fact, be a third investigation carried out by special operations command. the president, as you mentioned, flew from washington from fort mcnair to dover to attend the ceremony. the press, however, there will be no media coverage of the return of the remains. those who were flown back from afghanistan came in two c-17 flights that landed between 10 and 10:30 eastern time. the ceremony will be several hours long, but the pentagon says that media were barred because, quote, due to the catastrophic nature of the crash, the remains of our fallen service members will be returned to the u.s. via dover air force base in unidentified status until they can be positively

identified by the armed forces mortuary affairs office at dover. the remains and ashes were comingled, we understand, and 19 of the families did not give permission for the media to observe and record the ceremony. the afghans whose remain also arrived at dover will be sent back to afghanistan once they are identified. u.s. navy seal indiana vaughn was among those who returned, a father of two who loved his family and served his country. his widow remembers their life together. >> it's funny the things you remember; the smell of their skin, the way they walk and, you know, just come in the door and put their keys down. just those little things that i'll miss. um, i just remember him climbing into his truck and telling me he'd see me soon and how much he loved me and the kids. so i have always valued and cherished that moment, the last

moments that i got to spend with him. >> reporter: and let's not forget that in addition to the 22 navy seals who were killed, there were also other members, service members including three air force special operators known as combat controllers, there were five members of an army air crew among them, there was the army aviators who flew the chinook, a member of the air crew of the nebraska national guard and reserve members of the delta company's 158th reserve regiment, the door gunner onboard and brian nichols was the pilot. he leaves behind a 10-year-old son. megyn: jennifer, thank you. if you'd like to help the families of these brave men who sacrificed everything serving our country, head to our web site which is foxnews.com. click on the link in red in the latest news section. that will take you to the navy

seal foundation web site. it's an organization providing support and assistance to the naval special warfare community and their families. well, we are just moments away now from breaking news from the federal reserve after the credit downgrade and the fallout on the financial markets. the fed will announce if it will take new action to help boost the u.s. economy. now, some are saying there's almost nothing it can do, but others are saying if it doesn't do anything, we're going to see even more problems and negative reaction from wall street. neil cavuto will show us what it all means right after this break. plus, a horrifying accident on mexico's version of "dancing with the stars". oh. we'll show you the shuffle that sent a supermodel to the trauma center. and she claims she was raped by a man who almost ran for president in france, but prosecutors are questioning the case at this moment, and now she's taking matters into her own hands. in kelly's court.

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megyn: well, a frightening accident on a mexican reality show. take a look at this. this argentinean model flipping over the back of her dance partner right into a face plant on the stage. she was knocked out cold after the fall. they rushed her to the hospital where she is recovering from injuries to her neck and nose. wow. unbelievable. fox news alert, we are awaiting now a statement from the chairman of the federal reserve in the wake of some very big economic developments this week like our federal credit downgrade. ben bernanke set to make an announcement about interest rates and possibly some federal action to boost the ailing economy. neil cavuto is our senior vice president, he's the anchor of several things and managing editor of fox news channel and

the fox business network. neil, thank you for being here. all right, so for business dummies like me, put this in perspective. what exactly are we waiting for, and why do we care? >> reporter: this one is important because it's the first one since the downgrade by the s&p of the u.s. debt. also maybe a move on interest rates, we don't expect a move on interest rates. we expect sanguine comments, probably not much of in, on the grown grade. i think what the markets have been jumping on is the hope that the federal reserve dives in and starts helping things out by buying a lot of treasury notes and bonds. you might have heard talk about that, it's called quantitative easing. it's a big term for slopping up everything that's out there to give the banks cash and provide some backdrop and a cushion for the financial community. that's what they want to see. we don't know if fed's going to be that blunt and say, all right, we're going to give you everything you want. megyn: apparently, some analysts

at jpmorgan said if fed does nothing, it could be a disappointment, so some in the markets are waiting to see the fed do something, but what can it do at this point? >> i agree with you. they're going to have a huge temper tantrum if chairman says no more help is coming, the punch bowl is put away in the attic, and i'm not going to go upstairs and get it. they have already given up hope of any type of fiscal leadership on the part of the president or congress, so all eyes are on ben bernanke, and they want something from him. you know wall street, megyn, if it doesn't get its way, it has a way of pouting. it's worse than my kids, but we'll have to see what happens. i expect he'll make a nominal bow to them by hinting about buying some treasury notes and bonds, but that's about it. megyn: so it's, basically, it's going to buy us a drink, but that's all it's going to do. >> it'll calm the tantrum, but you know now with thesesetwo

children, once you give into one demand, they come back with another. megyn: i am finding that out. if you give in to the one whine -- >> right. and my kids are bigger, megyn. i fold like a cheap suit. so that's what they hope the federal reserve does. [laughter] megyn: yesterday we deemed wall street impatient and jittery, and today we deemed them a bunch of whiners. >> pretty much. megyn: they're not faring that well. catch kneel on "your world with neil cavuto" today at 4 p.m. eastern time and then, of course, he does double duty, 6 p.m. eastern over on the fox business network. well, she won the lottery not once, but four times in the just a couple of years. how did she do it? she had a method, believe it or not. l they say it was not just dumb luck. can you do it too? we'll show you her secret. and six years after natalee holloway disappeared, another young american woman goes missing in the aruba. we are hearing that police have

someone in custody, the latest in a live report. and outrage over the case of a cancer patient struggling to pay his bills. a medicare fund turns him down just because he's a man. >> and all i could do was cry. because i'm thinking about i have two children, and one of them has cancer. all i could do was cry. vrrooom...vrrroooomm vroom vrrooom vrrroooomm vrrroooomm vrroom vrrrooomm

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megyn: fox news alert, well, we just got the big announcement we were waiting for from the federal reserve. neil cavuto is back with me to explain it. neil, what are they doing? is. >> well, a little bit of a surprise, and this could explain

why stocks suddenly turned south. it is indicating it plans to keep short-term interest rates at this level through at least mid-2013, another two years, acknowledging the economy has slowed down appreciably more than it had thought. but, megyn, this is very unusual for the federal reserve to telegraph this far in advance. normally, it barely lets you know what it plans to do in the next week, but the fed indicating that things are dicey enough for the economy, it will keep short-term interest rates kind of where they are. the overnight lending late at around three-quarters of a percent, at that level or thereabouts, again, shifting between three-quarters a percent conceivably for the next two years. that is very unusual, and the markets are trying to get a handle on that. do we sell off on the news this indicates this slowdown or potential recession drags on, or do we celebrate the fact that interest rates are going to stay very, very low, at least the rates over which the fed has

some direct control and pounce on that. that seems to be the simple push and pull in the markets right now, but that is very unusual, the federal reserve saying things are dicey, we're keeping rates low for the next couple of years. megyn: for john doe sitting at home, it means we're still going to get ultra cheap credit for a while. >> well, adjustable credit. the market rates might sell off on this, i don't see that happening yet, but short-term interest rates, adjustable rate mortgages, home equity rates attached to shorter-term instruments like t-bills and the like, that's going to be the place to be at least for the next two years, so take the fed at its word. megyn: neil, thank you. catch more of neil at 4 p.m. eastern where he will explain it, analyze it and everything in detail. thank you, sir. >> sure. megyn: well, the first shock for raymond johnson came when he learned he was one of an estimated 2100 men diagnosed with breast cancer every year.

as he struggles to pay for his treatment, the next shock came from a medicaid fund for breast cancer patients. that fund denied his claim solely because he is a man. johnson's case qualified in every other way. trace gallagher has more live from our west coast newsroom. trace? >> reporter: hey, megyn. raymond johnson had a cyst on his chest and that's how his breast cancer was diagnosed. he work as a construction worker and does not have insurance, so he qualifies for medicaid except that medicaid does not cover breast cancer for men. so he applied for money under a program called the breast cancer prevention and treatment act which does not exclude men from breast cancer. so he had all the qualifications from that except to get screened, to get in that program you have to be a woman. so now he's got tens of thousands of dollars in bills piling up, though he remains hopeful. listen. >> i'm doing as much as i can,

and i'm letting the bills pile up, hopefully, there's hope out there. but, um, basically, i know that god is working with me with this. >> reporter: remember, men with breast cancer are the only class of patients that are barred from medicaid because of gender. it could take an act of congress to change that. you mentioned 2,000 men a year? is well 100 times as many women get diagnosed, but 500 men still die of breast cancer every year, and they simply are not covered if they can't afford to have health insurance. megyn: i think there's a real question over whether you can legally do that. trace, thank you. >> reporter: okay. megyn: we'll follow up on that one. the woman at the center of the dsk sexual assault prosecution taking new legal action. dominique strauss-kahn is what i meant by dsk. the criminal case against the former imf chief may be on the verge of collapse in the wake of

questioning this maid's credibility. but she's now filed a civil lawsuit. plus, what are the odds of winning not one, but four huge lottery jackpots? how about one in 18 accept till on? that's a lot of zeros, folks. why one winner's luck is now being called into question. and democrats fond of quoting ronald reagan in the debt debate, his son michael will join us to discuss what he thinks the former president would do about this economy. >> do you want to know how important this issue is? ask ronald reagan. here's what he said about the importance of averting this kind of default. quote, the united states has a special responsibility to itself and the world to meet its obligations. motorcycles, boats, even rv's. nobody knows where he got his love for racing.

all we know is, it started early. casey mears, driver of the number thirteen geico toyota camry. geico, saving people money on more than just car insurance.

megyn: another alert for you now, police in aruba are now searching for a missing american tourist. her name is robin gardner. she's 35 years old, she's from maryland, and she was last seen on august 2nd. the man she was there with is now said to be in police custody. gardner vanished from the same resort town from natalee holloway disappeared back in 2005. steve centanni is following this developing story from our washington bureau. what do we know? >> reporter: hi, megyn. just got off the with the prosecutor, they are holding a man, he'll probably be in jail until next weekend at the early

iest. 35-year-old robin gardner disappeared last week. she's from frederick, maryland. she was last seen on tuesday, august 2nd, described as 5-5, 120 pounds, blond hair, brown eyes and tattoos on her body. a missing person alert was put out by the natalee holloway resource center. of course, gardner disappeared from the same island as natalee holloway. gardner was saying at the renaissance aruba resort and casino. holloway, of course, the young alabama woman who went to aruba on a high school graduation trip in 2005. she went missing, and her body's not been found. she was last seen leaving a bar with joran van der sloot, he's being held on a murder charge in peru. in this latest case, the boyfriend of the missing woman, gardner, told fox 5 in washington he didn't know gardner was with this other man, and he had this to say. let's listen. >> she's been missing for six days, so every day that goes by gets a lot worse.

um, thinking that she won't be back. >> reporter: so we don't know what charges yet, if any, will be filed against the man. police still questioning him down on aruba. back to you, megyn. megyn: all right, steve. thank you. well, during the recent weeks of bitter bickering over the debt ceiling and the credit downgrade, we heard endless talk in washington about president reagan,be the spirit of compromise and how differently reagan would have handled the debt issue. here's just a little sample. >> ronald reagan had the debt increased during his eight years as president 18 times. he didn't spend ten minutes with members of congress getting the debt ceiling raised. >> by the way, republican iconic figure ronald reagan was the one who was familiar with tax and budget fights who said he would never make the debt ceiling, america's full faith and credit, hostage to a point of view. >> the president that holds the record for the most requests is president ronald reagan who in

an eight-year period of time asked to have the debt ceiling of the united states extended 18 times. >> i think that it is fair to say as any student of history can tell you that ronald reagan successfully reached agreements with the democratic speaker of the house that involved balance. megyn: michael reagan is a political consultant and chairman of the reagan group and also the son of ronald reagan. michael, welcome back. good to see you again. what do you make of it? we heard your father's name invoked so many times during this debt debate, i don't think anyone else was compared more. even president obama was said to have been in a meeting with eric cantor, and reportedly the president said to cantor can you imagine be ronald reagan sitting here doing this? >> yeah. welcome home, by the way. megyn: thank you. >> and all those things. yeah, welcome back. you know, i was listening to all of this, and what really hit me, megyn, was the fact that they were quoting ronald reagan, but

they should be governing like ronald reagan. four days from right now, august 13th, ronald reagan signed in 1981 the largest tax break in american history and began the engine again of this incredible machine we call the united states, industry of business moving forward, creating jobs. that's what this administration should be looking at instead of quoting ronald reagan, blaming everybody under the planet. they should be governing like ronald reagan. megyn: what they say is then after he gave that big tax cut, he had six years after that of tax hikes. and during those two terms he served he raised the debt ceiling 18 times, he asked for it to be raised 18 times. and he was a great compromiser. so they say, the democrats say, he's really more aligned in policy and substance with them because he did raise some taxes, he did want debt ceiling increases without, you know, all of the bickering, and he was able to meet in the middle. >> yeah. well, he didn't raise the debt ceiling to match the debt that america had at that point where

you have a $14.5 trillion deficit and a $14.5 trillion economy. he didn't raise it to match the debt and be in the position that we are in now. i think if he was looking today at what we have, it'd be a much different ronald reagan negotiating than it was back in the 1980s. megyn: don't you think that the congress, too, was more moderate back then? can this congress really compare itself to the congress that was in place when your father was in office? >> well, you actually had a leader back then. in order to pass his tax break august 13th of 1981, megyn, you know, ronald reagan was a strong enough leader that he went to tip o'neill, went to the democrats and said, listen, you support me on this tax break for the american people, i promise shot to campaign against you in the next election. well, he was a strong enough figure, a strong enough president that the democrats said i don't want him to campaign against me, we're to be led by ronald reagan here, we're going to support the tax break because we don't want him campaigning against us.

barack obama is not in that same position. he is a weak leader. why? because he doesn't accept responsibility. he only tries to blame others for what the problems are with his own administration. megyn: what do you make of that? when barack obama first took office his oratory skills were one of the things people lauded about him the most, and then, too, comparisons were made between him and your father. and, you know, patti davis, your sister, had a piece in time talking about how there was a guy named mike dever who was in charge of the stage craft behind ronald reagan and how he was brilliant at it and gave you a feeling in just the setting behind your father of power and appropriateness, and it helped the man, your dad, deliver a message that really resonated. she said president obama needs such a man, and he really needs the substance that your dad had as well. >> yeah. well, the problem is with barack obama and ronald reagan here, ronald reagan would listen. you know, we need listeners. barack obama doesn't listen. he just tries to lead from his

position without listening to others. i mean, look at geithner. geithner says he's going to stay on. who would stay on with this economy? what has he done? and the only reason i think geithner's staying on is he's sent out resumés and find out nobody else wants to hire him, so he's staying on. if i'm the president of the united states, i'm asking for geithner's resignation. barack obama needs to lead, and he's not leading. ronald reagan listened, and he led. mike dever, absolutely brilliant. in fact, everybody running for president should have a mike dever on their team, but they need to be able to listen to those people. they don't listen, they lose. megyn: michael reagan, thank you. pleasure to see you, sir. >> thank you. megyn: well, another bad sign on the economy. we got data today that shows american workers were less productive in the spring for the second quarter in a row. the labor department says that productivity fell .3% in the april to uniquarter helping to push up labor costs 2.2% for employers. when workers are less productive

and cost more, companies are less likely to add jobs. well, they say all you need is a dollar and a dream and a little bit of luck. but one woman may have a strategy for winning the lottery, and it has worked four times. trace gallagher tells us how. plus, she claims the former head of the international monetary fund sexually assaulted her in a new york city hotel room. but even prosecutors are apparently skeptical about her story. so now she's making a very bold move on a quest for her own justice. >> she is not a prostitute, and she's not a hooker. she's a hard working single parent struggling to raise her 15-year-old daughter in the bronx like thousands of other women in the city. just one phillips' colon health probiotic cap a day

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but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have cess to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare. megyn: fox news alert, you heard it from neil cavuto just a few minutes ago, 20 minutes or so. he was saying wall street would not like it if fed did not do much today, and it did not.

wall street reacting accordingly. the dow is down 100 points, it was down about 170 just a few minutes ago. the nation's bank extending low interest rates for two more years, suggesting the economy is weaker than earlier thought. the dow dropping almost 200 points in the last 20 minutes because neil had suggested that perhaps people would interpret that as a sign that the fed believes the economy's bad and it's going to stay bad for a while. we'll continue to watch it for you. well, kelly's court is back in session. on the docket today, suing to pick up the slack for a lack of justice. the woman who claims she was sexually assaulted by the former head of the international monetary fund launching a civil case against dominique strauss-kahn, once considered a prime candidate for president of france. diallo, a hotel housekeeper in new york city. she claims kahn sexually

assaulted her in the confines of his pricey suite, but the case may be on the brink of collapsing, the criminal case, that is, after prosecutors found holes in the her story, they say, and they say lies on her immigration papers. now, however, undeterred she has announced that she's going after kahn's own personal monetary fund. should she get it? let's ask our panel, joey jackson and trial attorney lee armstrong. all right, gentlemen -- >> look who's back driving the bus. megyn: ah, yes, counsel. >> looking good. megyn: thank you, guys. i miss you. joey, she says the prosecutors have leaked there are all these problems with the case and suddenly this guy's out on their own recognizance, and yet she east undeterred and says i'm filing my own civil case. does she have the goods on him? >> it's unbelievable. it reads like a novel. i can't wait for the movie to

come out. here's the point, megyn, they didn't leak anything at the manhattan da's office, my old office, by the way. they exercised their prosecutorial responsibility in that they put out a letter, and that indicated what her inconsistencies were. i will say, indeed, that there have been stories she has told in the past that have been inconsistent. the issue here is could you lie about something but be truthful about something else? it's like the boy who cried wolf. yeah, maybe she does have a checkered past with regard to how she told stories, but it doesn't mean this issue did not happen. she has a right to sue, she did, in fact, sue, let's let a jury make that determination. on the issue of people saying, money, money, she's after money. she had to sue now, why? because you have a jurisdictional issue. if he leaves the country which he might do during his next court appearance, you have a jurisdictional issue. she had to sue now, she demands justice, she'll get justice, she's going to win. right, lee?

megyn: wow. >> you know, i think the boy got eaten alive by the wolf -- megyn: tell the viewers how she's lied. >> well, here's -- the case we all know is her. she is the case. her credibility is front and center as joey just said. the allegation is that to get into this country she lied. what was the lie she told to get into the country? is. megyn: on her application for asylum. >> yeah. that she was raped, she was gang raped and, apparently, that's not true. what's the allegation here against dsk? that he raped her or attempted to rape her. so, obviously, any defense attorney's going to play that off. in addition to that, look, the day after the incident she gets on the phone with somebody who's in prison, a convict, and tells him, look, i know what i'm doing. this guy's got a lot of money, i can take care of myself. you put all these things together, and then there are additional lies, discrepancies, she told the grand jury one thing, she gave interviews to "newsweek" and other places, and there are discrepancies in that testimony, those interviews. you put all that together, is it

possible a jury could believe her? yeah. is it probable? it's going to be difficult. megyn: but possible is all she needs, joey. >> that's right. megyn: so the viewers who haven't been following that closely, let's give the viewers a look at the plaintiff because it's helpful. that's what the jury gets to do. here's just a short clip of her. >> i'm going to -- [inaudible] my daughter. we going to -- [inaudible] we cry every day. we going through a lot. megyn: we cry every day, we can't sleep. so it's going to be up to the jury if they don't settle this case to decide whether that's a truth teller, but what are the odds? her lawyer never wants a jury to have the case. >> of course. and i think that's what's going to happen because i think dsk will pay. bronx county, they know the deal. they're going to separate the -- [laughter] megyn: why are you laughing?

>> that's code for they like to write big checks. >> oh, cut it out. they like to determine what is justice, and justice here will be compensating her for what he did. and we have to say, lee, in this issue she did go to the -- >> what he allegedly did. >> no, what he did. the doctor indicated she had a tear on the shoulder, there's a bruise there, there's a bruise in the vaginal area so, therefore, you can draw the conclusion by the p.m. of the evidence -- preponderance of the evidence that he is a liar. >> first of all, putting aside the injuries which could have been self-inflicted, and this could still be consensual. i think that's what his attorneys are indicating. the dna at the scene, i don't think they're even saying it didn't happen. so it may go before a bronx jury. one thing they should be looking at and they will be looking at civilly, this is dsk, is whether to even appear in the bronx courtroom. let's assume he gets cleared of the criminal stuff and he goes back to his country. there is no treaty that requires

automatic recognition of a french court. he could decide just to default -- >> no. >> hold on a second, he doesn't have assets here. you have to go to a different country, you then have to get a court there to accord it the same reck anything -- >> full faith and credit. >> but that's not one of our states. full faith and credit is one of our states, not for another country that doesn't have a treaty with us. >> are you then admitting liability? the only time you don't show up in court to fight something is if you have something to hide. if you want to clear your name, you forcefully deny as his attorneys have indicated he will do. in the event he doesn't come, lee, you have to agree there will be a default judgment issued against him, and collecting will be another issue. megyn: okay, guys. >> that doesn't mean he admitted it. megyn: i've got to leave it at that. >> it's the bronx. his savoir-faire is not going to work there. megyn: it's generally a bad sign when a civil suit is filed while

a criminal case is pending. this woman reportedly lied about being raped, she has an uphill battle, but that does not mean she is not telling the truth, only a jury will get to decide that one. we'll be right back. [ barks ] [ cat meows ] [ woman ] ♪ i just want to be okay ♪ be okay, be okay ♪ i just want to be okay today - ♪ i just want to knowoday - [ whistles ]

♪ know today,now today - [ cat ows ] - ♪ know th maybe i will be okay ♪ [ chimes ] travelers can lp you protect the things you care about... and save money wi multi-policy discounts. are you getting the coverage you need... and the discounts you deserve? for an agent or quote, call 800-my-coverage... or visit travelers.com.

megyn: just imagine winning millions of bucks in the lottery and then doing it again and again and again. that is exactly what one woman did raking in more than $20 million. but now some say she may have had more than just a little luck going for her. trace gallagher has more live from our west coast newsroom. t.g.? >> reporter: her luck is being called into question, megyn. first, i'm going to show you how she won it and then the theory of how she may have gamed the system. she won four different times

using scratch-off tickets, right? she bought three of the four tickets in the very same mini mart in bishop, texas. first she won 5.4 million, ten years later she won two million. two years after that she won $3 million, and in 2008 she finally won the jackpot, $10 million. over $20 million overall. here's a quote from a guy who's a gambling expert in vegas. he says, and i'm quoting here, in vegas when something that unlikely happens, they arrest you first and ask questions later. she's a former math professor, she's a ph.d. from stanford, and the theory is that maybe she figured out the algorithms as to how often the winning tickets are printed on the scratch-off rolls and then once you figure that out, then you figure out when these tickets are actually shipped to their locations. that is a set schedule. and that's how some of these people believe she did it. look over here, if you will. the odds, megyn, of winning this

lottery four times in if your lifetime are one in 18 septillion. that's 18 plus 24 zeros, and it would happen only once every quadrillion years. we've been doing the math around here, we can't even figure out how many millions that is. those are the odds. the texas lottery, by the way, saying she's not cheating, she's just lucky. megyn: really? >> reporter: yeah, that's what they think. megyn: they have to say that, because if they say she's figured it out, then everyone's going to do it. >> reporter: that's exactly right. megyn: i'm going to go scratch out my statistics and probability notes right now. who knew? i would have paid attention in the tenth grade. >> reporter: by the way, do you know where she lives now? vegas! megyn: naturally. thanks, trace. >> reporter: you bet. megyn: don't say we never gave you any news you could use. coming up, three florida siblings in a world of trouble right now after a bizarre crime spree, and this thing is far from over. the very latest on theooh,

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