they had no idea their dad was about to appear. that is magical. bill: 3,000 skroets on our poll. 53% want to hear more about the debt tonight. prime-time have will it on fox. alisyn: "happening now" starts right now. jon: and we begin with this fox news alert after a week of wall street whiplash, get ready for some more. good morning to you i'm jon scott. jenna: this is starting to feel normal, the new normals. i'm jenna lee. we are here in the fox newsroom. "happening now" we've had three days of 400 point swings on the dow. we haven't seen that type of volatility since 2008, right in the middle of the financial crisis. jon, a little different today, we are seeing numbers in the green. anyone's guess as to where it goes from here. jon: today is better but we remember yesterday. the latest action on the financial roller coaster, the dow lost a steu staggering

staggering 1,000 points in one week alone. jenna: nicole is watching this for us. why are we seeing down stocks trade higher. >> reporter: volatility seems to be the new normal. we are up 262 points, a gain of about 2 1/2% on the dow. we are starting to feel a little better after what we saw in europe. there was so much concern about france and the french franc. feeling a little better from citigroup, they are extending credit lines to the french bank. that gave comfort to the market. 29 of the 30 names of higher. the bank stocks are giving a little bit of a bounce back. jpmorgan and bank of american are getting a bit of a bounce back. we've got even retail numbers in and their out looks.

macy's, polo, ralph lauren and kohl's have all come out with numbers, and they seem to think that the consumers will come shopping. last but not least we've been watching the neck-and-neck fight between apple anne exxonmobile. apple is the largest. 340billion products. that too is up today. jenna: it's remarkable to think about it. the largest company, or the company out there that has that medal of honor, being apple instead of an oil company. let me ask you more about the banks. earlier in the week we talked about questions about the french banks or banks in europe. we talked about that during the financial crisis as well. are there any lingering questions about how stable our banks are in the united states right now? is that something that traders are talking about on the floor of the exchange?

>> reporter: there seems to be confidence in our own banks at home. it was really more of a european issue, particularly france. that was the big worry over the last few days. that's what brought us down. right now there seems to be a nervous calm, the fear index is pulling back a little bit. it's not all over and done with. as you guys were noted we've lost thousands of points on the dow jones industrial, it's not chris cal clear, but for right now we're taking a little bit of a breather here on wall street, and the traders i talked to for the rest of the day feel like pretty good about today. tomorrow will be a new day. jenna: we'll take a breather when we can catch it, nicole. thank you very much. nicole petallides on the floor of the new york stock exchange. jon: we are watching one of the first tests in the race to the

white house, it happens tonight. gop presidential hopefuls preparing to debate on this stage, this auditorium in iowa. the thing is cosponsored by fox news channel, the washington examiner and the iowa republican party. eight candidates face off, herman cain, newt gingrich, jon huntsman. rick sta sattorum, ron paul, tim pawlenty mitt romney and michelle bachmann. >> reporter: this could have a lot of impact. certainly a lot of folks in iowa will be watching. that brings us to tim pawlenty. easily he's been the person who is here with the most invested in the state of iowa. he has built up by acclamation the largest and deepest staff.

it does set up at least demographically well from him coming from a neighboring state. by playing well, or performing well in the debate tonight he could do well in the straul poll because there arstraw poll, because there are lots of undecideds out there including the governor. >> there is a lot of undecideds out there and a lot of people may be swayed by the debate. >> reporter: and there is one prominent activist in iowa and his name is ryan rhodes the director of the iowa tea party. something between 500 and a thousand straw poll votes additional might swing the way for somebody who performs the best. all candidates will claim victory. as to who performs the best, that is subjective. jon: there will be eight

winners. mitt romney hasn't spent much time in eye watch he's going to be on stage tonight and he's sort of a marked man, right? >> reporter: well, in a sense, yes, he's been on top of the polls and has gone his own way, in terms of running his campaign. he's not playing much in iowa this time around. last time around he was very deeply invested in iowa and did not come up with the caucus victory here. he's going a different way this time. ee tkepbgs alley aessentially in at least a lot of media outlets it will be who is up against mitt romney when the final rounds of primaries are beginning to click down. in a sense, yes he'll be a marked man because you can probably bet that there is going to be some jabs tossed his way. and there is kind of a love-hate relationship to be honest with you here in iowa. romney has a base of support, he still maintains contact with them through telephone conference calls. there are folks out there that strongly recent the fact that he is not here, playing in iowa as he was last time and simply for that reason alone they are

opting for other candidates. jon: interesting. steve brown keeping an eye on it all in ames, iowa. be sure to tune in at 9:00pm eastern on fox news channel. you can watch the debate at that time. bret baier will host hapb we wilhost and we will go in-depth with bret in a few minutes. jenna: major acknowledgment from the u.k. that's been dealing with the worst rioting in a generation. prime minister david cameron says police are admitting to mishandling their response to the chaos that gripped london and virtually every major english city over the last couple of days. cameron is insisting, a quote, culture of fear will not rule the streets there, this as british police are going off the alleged thugs in their own homes. this is sky news showing authorities arresting suspected

looters and retrieving items from their homes. there is uneasiness prevailing over london and several cities there. a look at the sites and sounds from the last several days in the uc. >> thi u.k. >> this is not just a game, this is criminality. >> we are here for one reason, to stick up for our families. my girlfriend and my children sit at home, i'm here to protect them. >> this is burglary, this is violence. >> we do believe, don't we lad, there ain't enough of them. there is too much going on in too many different areas. they need back up. they won't bring the army in, they won't bring no water canyons in, they need someone. >> it's a sad day for london. it's a sad event that we saw overnight. >> we need to smash you up. you riot our place, we'll riot your area. this is our area not your area. >> the police are not containing

and crushing the stupid up rising of a lot of hoodies, who are bums. >> every single window frame had been blown-out and flames rising from everywhere you could see. they say, oh, social deprivation, and they don't have any opportunities or education. it's all rubbish. at the end of the day these people know right from wrong. jenna: incredible sights and sounds there. cameron now promising a crackdown that includes new powers for police, saying britain will take gang fighting tips from american cities. >> i want us to use the record of success against gangs from cities like boston in the usa and the police in scott hropbd whscotland. and i want this to be a national priority. jenna: interesting, looking at boston of all places. in london police arresting more than 900 people so far. charging more than 400 suspects.

the rioting and looting follows protests from a week ago after a police shooting in london where a man was killed. there is growing debate over what set the stage for the lawlessness to explode across the country. some say it was just random. jon: they've got so many problem processing all these people they've arrested. that's why there are issues right now. jenna: the holding cells are filled. right. well we are keeping an eye on what is happening around the markets right now around the globe. some say the economy was a factor in england, but, again, some some say it really wasn't anything at all. you see the dow stateside up 270 points. the numbers see santiago every day as we gets warnings about the future of the global economy. some are comparing to this 2008, jon. we want to know if that is really the case. can we make that comparison? we'll be talking about that straight ahead. jon: three years, a repeat. the nationwide manhunt for these three siblings wanted in a violent crime spree is over

now. the heavily armed trio did not give up without a fight. new details on how they were captured, what happened in colorado. that's next. >> they outgunned me so -- >> they were shooting at you with an ak-47. >> i didn't know at the time what they were using but it really didn't matter to me, you know, shooting at me is shooting at me but -- no, they definitely outgunned me any way. >> how do you feel knowing that all of this ended with, you know, none of your officers hurt, you're okay, everything ended mostly okay. >> lucky, and happy that, you know, they are where they need to be, and nobody got hurt, especially anybody, any private citizens.

jon: we're getting new details in the capture of three sibling fugitives wanted for a violent crime spree that sparked a nation-wide manhunt. the doughtery gang is behind bars now after a high-speed chase on a highway near colorado springs. the gang flipped the get away car and crashed. but it did not end there. alicia acuna is live for us. >> reporter: even after they crashed their car with four patrol cars following them two of the seulgs were not read the

siblings were not able to give up. they say the girl got out of the car and they chased after her. she went for a gun and the officers shot her in the leg. ryan had taken off from the crash site and ran to a nearby town where he ran into bystanders who helped outlaw enforcement. >> he started walking and pointed his fingers at us like he had a gun, he told us to get back. it scared us a bit. we didn't know what he had. once we figured he didn't have i it we went after him in the thick brush. >> reporter: the three were taken to jail after being treated at a local hospital. the trio faces charges in multiple jurisdictions. in florida for shooting at an officer, in georgia for bank robbery. in colorado the three siblings are scheduled to go before a

magistrate this morning. through video link. they'll be in the jail. we've been told they have to face charges here before they go anywhere else. back to you. jon: thank you. jenna: fox news alert, the u.k. treasury chief now calling it, quote the most dangerous time for the global economy since 2008. apparently he's not alone. don't let those numbers fool you, there is still anxiety about the markets. some is comparing this to the darkest days of our financial markets. have you politicians struggling to keep up along with the rest of it. is it really fair to make the comparison from today to 2008. joining us now dennis berman the "wall street journal"'s deputy bureau chief. let me ask you a few simple questions to see if there is a link. are we in a credit crisis right now? >> we are not in a credit crisis here in america. the banks are pretty well capitalized.

american companies have about a trillion dollars of cash. they were scared from 2008 so they reacted. the real question is europe. all the debts over the years are getting pushed up into the country levels. jenna: that sounds like deja vu. a banking crisis is my next question. these are some of the issues we saw in 2008. is a banking crisis happening in europe? >> in some ways it might be even worse than a banking crisis and that's how the markets are responding. the question is can governments support their debts? what you've seen, some of your viewers have heard about portugal and ireland, country like that, the real heart of europe is under question, do these countries have enough wherewithal to payoff their debts. jenna: the countries and the companies are very closely linked in europe. if we look at a place like france, for example, there are still questions of whether or not the big banks can potentially be nationalized.

do you think we might see that? is there a question about the solvency of the banks? >> the rumors came out yesterday and are still fluttering around today, do french banks have enough capital to absorb losses, because they hold bonds in the countries they operate as well as around europe. the important thing to think about, and this is the scary part, jenna. the important thing to think about is how do you bail out a country? germany can bail out greece. germany and france can bail out ireland. but germany and france do not have enough money to bail out italy, france, and maybe even u.k., which is not part of the euro. you run into those sorts of big mind slowing questions. jenna: nicholas sarkozy will be meeting with the german chancellor next week. that will be an interesting story to continue to watch. some of the other characteristics again going back to 2008 was a crisis of confidence. do you think we are experiencing that in the united states? is that something that is still

here. >> there were a if you hopeful data points this morning. over the last few weeks it's remarkable to see. i run the business coverage, corporate coverage for the journal. it's remarkable to see the sentiment from ceo's, business owners and consumers. we have all learned and been scarred by 2008 and we all react in-kind so people are pulling back. this is potentially a vicious circle where the stock market is telling you, hey the economy is bad and then people make the economy bad because they don't spend any more. jenna: in your opinion, yes or no, 2008 all over again? >> it will not be the same as 2008 but it's going to force countries and political leaders to make harder choices, much harder than the once in 2008. jenna: that's interesting because consumers and corporations have had to make very hard choices over the last couple of years. >> 2008 and 2011, in the future will be all part of the same thing. jenna: always nice to have you.

jon: no more bail outs, right? judgment day for an e judge sentenced in a massive juvenile bribery scandal. moments from now one of his young victims joins us live. we are also live in ames, iowa where the republican presidential hopefuls are gearing up for a big debate, rick folbaum is on this for us. >> reporter: what do you want to hear from the candidates, and who do you think will come out on top. go to foxnews.com, log in, go to america is asking. put in your comments, we have a couple of minutes during this next break. i'll be on the chat and we'll be reading some of your comments coming up after this quick break. more of "happening now," don't no away.

jon: eight republican presidential hopefuls are getting ready for their first iowa debate tonight, cosponsored by fox news channel, the washington examiner and the iowa republican party. threw see the eight that will be on staged two days before the iowa straw poll. it's a major test in a race for bret baier is hosting tonight's debate. we think of the election as taking place in november, but it really starts tonight. i mean some of these candidates may not be there in a few days based on how they do tonight. >> reporter: jon, you're right. arguably this is the biggest week for the gop race to date. it sets the table for the rest of the year leading up to the iowa caucuses obviously which are very important in the whole political process as we know to

getting the nomination for the republican party. tonight i think you're going to see some different actions by the candidates, possibly some elbows thrown, because they haven't done that yet. some of them need to make their mark here before the iowa straw poll on start in order to, as you mentioned, not be winnowed out of this field. jon: it has been suggested that tim pawlenty didn't take an opportunity in the last debate to go after the frontrunner mitt romney and pawlenty will have to be tough tonight. >> reporter: definitely. here is what we're trying to do. we're trying to se the table, set the environment for that to happen, for a debate to ensue, for candidates to differentiate themselves from each other, to go after each other. but we also are respectful of the situation we are in as a country, and the economic situation, and people are looking for solutions. we are trying to get from them answers, specifics, but also

engagement between all of the candidates and hopefully with eight candidates on stage we manage to do that. we'll be spinning some plates up here, jon. jon: there is a great deal of dissatisfaction with the direction of the country. we'll be talking more about that in a later segment. obviously when so many people are out of jobs, and the economy is in such a funk, these eight candidates, you know, are going to have a lot to say and there is probably not enough time to get it all in. >> reporter: no, but the economy will definitely be the biggest part of this debate. it will be the large chunk of the questioning. hopefully it will be the charge interaction between candidates. you mentioned more than 14 million people out of work. if you consider the people who are -- have given up looking for work, or who are in part time jobs just trying to scrape by that is probably 20 million. that is a lot of folks. and that's going to be a big focus tonight. jon: you'll have your work cut out for you. it will be fun to watch.

bret baier we'll be watching you tonight. >> reporter: jon, see you. jon: rick has been in our chat room and has been chatting with our viewers about what they want to hear at the debate tonight. >> reporter: another active chat room today, jon here are some of the comments from phoebgs. mar from folks. mark says he's looking nor one word, conviction. another says i don't want to hear obama bashing and complaining. and ron says t-paul has my support. but i fear if he doesn't perform well it could spell the end of his run. some of the comments. i'll be chatting live on foxnews.com during the debate. while you're watching bret and the gang you can join a national conversation with me on the website, back over to you. jenna: sounds good, spinning plates, throwing elbows. jon: hope those plates don't get broken. jenna: it will be good to watch and fun to watch with rick online. in the meantime we have really all of the focus on wall street today. we are watching the markets here at home, also around the globe,

things are looking better today than they did yesterday but we have several hours of trading left to go today. we'll bring you the latest numbers and the latest analysis just next. also, new outrage over the deadly violence along the mexican border. why is the government denying a family of a murdered border patrol agent crime victim status in why are they doing that? we are going to investigate next. >> it would be a huge mistake for the government to tell a family, whose son has given his life for this country that they are not going to be given the basic protections of federal law. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. ♪ until the sun went down

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jon: america's third war being fought along our southern border. we are learning of a shocking move in a controversial case involving murdered border patrol agent brian terry. he was killed by one of mexico's most notorious drug cartels last december.

the department of justice is trying to block terry's family from receiving crime victim status. why? william la jeunesse, live in los angeles. >> reporter: it's highly unusual and some believe that arizona's u.s. attorney is doing more to protect his office than -p victims rights by preventing the family from speaking at the sentencing of the man who bought the gun that allegedly killed their son. >> i just was flabbergasted. i didn't believe it at first. >> reporter: brian terry died in a shootout near the mexican border. his family wants all those responsible brought to justice, from the man who allegedly fired the gun to the one who bought it. >> our number one goal is to pursue the prosecution of all the killers of brian. >> reporter: in a surprise move this week arizona's u.s. attorney opposed a routine motion to list the terry family as a crime victim. >> it's mystifying to see the government try to deny the family of this fallen hero the

basic respect and compassion that they are entitled to as crime victims. >> reporter: in a motion u.s. attorney dennisburg says the family was not directly or approximately harmed by the illegal purchase of the murder weapon. that the real victim is not any particular person but society in general. earlier this year when even dieting gun buyers,burg suggested the opposite. >> that gun will be down in mexico some time within 24 hours to be used by drug cartels in a war they are having. >> reporter: some believeburg had a conflict because he direct he the operation that led to terry's death. >> you have to wo*dz wonder if the government's efforts to deny the family crime victim statuses is to avoid illegal responsibility and tragic mistakes of operation fast and furious. >> reporter: those mistakes could lead to a wrongful death case against the attorneys

andburg himself. they expect a defense attorney to make this kind of argument. it's very odd coming from the u.s. attorney. their office by the way had no comment. jon: seems like a strange move on the part of the federal government. >> reporter: yeah, no you're right. this is again, something we'd expect from the defense attorneys, saying of course we didn't want the family there speaking, you know, to the judge or the jury in this case, o but for the u.s. attorney to make that argument, it's a little odd. people say who have looked at this. we've had two exu.s. attorneys and a federal judge say this is a little out of the ordinary for them to be making this argument. jon. jon: thank you. jenna: back to the markets around the world from tokyo to wall street we have seen stocks swinging wild leave. the dow is up today. a huge drop yesterday. in europe the markets were down earlier, now they've come back as they get closer to the close of of the trading day there. greg burke is streaming live from rome. what is going on with the world

markets? >> reporter: it's a crazy time, and for mid august you certainly see a lot of political action which is not normally the case. in italy, for example the finance minister trying to convince italian parties today that the government can get it together. this is difficult stuff because they need major structural changes beings this is not something you'll change overnight. the unions do not want to hear about pensions being cut or people being able to be fired more easily. meanwhile the markets across europe are looking pretty good right now, but they are certainly jitter re. they started well this morning, now they went down, now they are all up again, this despite fears about both french and italian banks. a couple of italian bank stocks had to stop trading, because they were down. italy is actually well over 3. all these positive numbers probably a reflection of what is going on on wall strao*et. i don't think anyone here believes that it can last.

the real heavy weights meeting next week in terms of the politics, the german chancellor will be going down to paris to see the french president. these are two of the major players. germany is in a tough position. they have a great situation economically, but obviously somebody has to pay for the problems. they don't want to do that. jenna: unfor the this the lee there it looks like we lost our streamline to greg burke. east was wrapping up he was telling us a little bit about the volatility. it looks like the end of trading day in europe it looks better than where we started or were midday. there are a lot of questions about what is going to happen next and ha lawmakers will do to stabilize some of the countries in question. you can see the dow is up more than 200 points here. as we've seen in the shows of the last couple of days, jon, anything can happen over the next the 0 minutes. jon: that could change very quickly. there is another development in the saga of one of the -- well crime punks that we've told you

a lot about on this show. jenna: your favorite. jon: he's one of my favorite criminal punks. "the barefoot bandit." his two year crime spree ended in very dramatic fashion. wait until you hear what he just landed, and we are not talking about that jet. also, sentencing day for a corrupt judge in a dramatic case that became known as cash for kids. we heard from outraged parents after a jury convicted him more than two years ago. >> i was hoping to get sent away, guilty on all 39 counts but there was only 12, and now he's appealing it. the kids never got to appeal anything. they were sent away in a heartbeat, a blink of an eye. i'm very distraught about that. jon: one of those teenagers this judge put away is jenna's guest next. we will talk with brian larkin about his ordeal and how he feels about the judge's sentence. t out.

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jenna: developing stories we are

keeping an eye on in the newsroom and from our control room as well. the job market, weekly u.s. jobless claims falling to a four-month low. initial claims for unemployment benefits were down to 395,000 last week. less than analysts expected. that number is volatile. mortgage rates falling again. freddie mac says the average rate for a 30 year fixed mortgage is 4.3%. that is not the record low but pretty close to it. to the middle east the growing unrest in syria, activists say the syrian army shot and killed at least five people and wounded more than a dozen others while cracking down on antigovernment protests we've been watching so closely over the last several months. jon: this just into the fox newsroom, pay back for the kick backs. an exjudge spenced thi sentenced this morning in a scandal known as cash for kids, after his conviction for an

alarming betrayal of justice. rick folbaum has the details. >> reporter: a taste of his own medicine, that's what people have been hoping a former judge gets in one of the biggest courtroom scandals ever. moments ago he got it. 28 years worth. he used to be a juvenile court judge in western pennsylvania, one of of the toughest judges in the state, locking up thousands of kids for all kinds of offenses. earlier this year a jury found him guilty of taking almost a million dollars in kickbacks, money he got from the builder of two privately owned juvenile detention centers. he provided the kids to keep the centers full and he was paid handsomely in return. the kids were typically denied some of the most basic constitutional rights. the right to a lawyer, to a fair and impartial hearing, to the explanation of the charges against them. the hearings were quick and almost always resulted in the defendants being locked up. the state supreme court has thrown out about 4,000 juvenile

convictions handed down in the judge's courtroom over the years. the former judge could have faced a maximum of 157 years in prison but instead the 61-year-old exjudge sentenced to 28 years, meaning he'll be in jail until he's 89 years old. jenna. jenna: more on this story. thank you very much, rick. i'm going to pin pick it up from here. we have one of the teens who faced the judge. his name is brian larkin. he says he was attacked at school and did 90 days at a wilderness camp called camp adams. the judge was never tied directly to that particular camp and getting kick backs there. brian's case what's raced from public record. brian larkin was just 14 years old when this happened. brian, we are glad for you to join us today. now you're 19 years old. you've had a couple of years of separation from what happened. we'd like to hear a little bit about your story. you get in a fight at school, we

don't need to go into the details of who did what, when. what happened when you faced the judge? >> the first time i went to court in front of the judge, for the kid that attacked me, and when i went in front of him for that he asked me if i smacked him or something, and that's when he started an investigation with the kingston cops around here, and they investigated that, and that's how i ended up going. jenna: he said you were lying. you said you didn't hit this kid. he said you could be guilty of perjury. was that actually a charge that you were found guilty of, or that he ruled that you were guilty of? >> yeah, that's -- he put me away for the 90 days on perjury charges. jenna: what were those the 0 days like? >> it sucked. i was away from home. i didn't know anyone around.

it sucked, you know. jenna: i think that probably sums it up, brian, to tell you the truth. thousands of people say that the sentences they got did not fit the crime. now was this the first time that you were ever in trouble with the law in any way? >> yeah, that was my first offense. >> first time getting in trouble with the cops. jenna: and so the judge says, well, there you go, first offense, 90 dies at the wilderness camp. rick was saying that a lot of the people that went in front of this judge were denied certain rights, a right to a lawyer, and a right to an explanation of the charges against them. was that the case for you? >> yeah, um, they never told me anything about a lawyer, anything like that, they just -- i just got papers in the mail saying i had court on this day and i was getting charged with perjury, and i went there for that day and that's what happened. jenna: and then you get those 90

days. i continue believe what that was like for you and your father. you say your father went to court with you. now we have today, like i mentioned, your record is erased, expunged. you don't have the charges any more. you can't get back the 90 days that you spent at the camp. what are your thoughts, how do you feel about the sentence today for the judge? >> like they were saying before, he finally got a taste of his own medicine. i think it's good. now he'll realize what he did to all them kids when he's gone for 28 years, when he was sending all these kids away for three, four, months, whatever away from their families. now he gets to see what it was like. he won't be around his family, he won't have his freedom, his rights. jenna: a little bit of karpl karma, i guess. how are you doing now? do you feel like you've learned something from this? like i said you won't get the 90 days back. has this changed your life in

any way positive or negative? >> it will have me keep my eyes open now. i mean if i ever do get in trouble again i'll be aware, make sure i get a lawyer and everything. it didn't really change, it just -- um -- jenna: well -- >> i'm not really sure how to put it. jenna: that's okay. it's kind of a tough question maybe even to know just a few years out. it's only been five years. one of the families said they will never trust the law again. i'm sure that feeling of lack of confidence is probably something that you feel as well, brian, i can only imagine. thank you so much for sharing your story. i know this is the first time you've done so and we appreciate it very much. brian larkin, thank you. jon: that whole case was a travesty. jenna: thousands of kids. thousands. jon: for money, unbelievable. the biggest national park in the country is becoming the new battleground for individual liberties.

nature lovers versus off roding atv riders, the new lawsuit over the great outdoors. also, a big discovery on the red planet rekindles scientists hopes of finding evidence of has details. >> reporter: it's a brand-new mission. we will here a lot more about it in a couple of minutes. i want to know from you, go to the chat room and tell me. what do you think is really on mars? what is really going on on the red planet? what do you think? i'll be chatting. we'll read some of the comments coming up, and more on this mission when "happening now" returns after a quick break. don't go away. [ male announcer ] it's a fact:

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jon: fox news alert, sad news to share with you. the first video of the crash scene from the downing of the chinook helicopter in afghanistan. the department of defense also just officially announcing the deaths of the 30 service members who were supporting operation even during freedom. we have a picture of 12 of those who died .

we are going to be putting the full names, titles, home towns, branch of service and so forth of all 30 of the victims of the worst single incident of the afghanistan war on our "happening now" website. an amazing new discovery to share with you on mars rocking the scientific community right now. after a three-year journey the phoenix-mars rover has finally reached this new 14-mile wide crater. with it it is finding the strongest evidence yet of water

on the red planet. joining us now, dr.~michio kaku a professor of physics at the university of new york. he is an author of how science will shape our lives. this lander wasn't supposed to still be operating, right? >> that's right this is like the every ready bunny rabbit to keeps on going. it was supposed to last 3 months. it's gone seven years. three years alone getting this gigantic crater. jon: it's at the apex of the crater and what does it see. >> it's the king of the hill. it's looking down on this crater which is like a time machine. it's caused by an astroid gouging out layers of rock going back billions of years so we can see the past. craters fill up with water, ancient water. this mars rover will detect clay

left over from water deposits left over billions of years ago. jon: is it seeing any of that stuff? the search for water on mars has been a big part of what we've been looking for. >> as tron a mores say follow the water. water is the solvent where dna got off the ground. that's why the mars rover is preparing to look for the clay. maybe microb microbial life will be found. jon: what do you think are the charges. >> pretty low. we will take some of the clay, some of the dirt, take it back to work paving the way for a manned mission no later than to 35. jon: we are seeing in some of the shots what look like sort of dry river beds that you'd see in desert portions of this country. is that evidence of the kind of water you're talking about? >> just a few days ago there was

sensational news on the rim on craters on mars you see streaks, seasonal straoebgz. perhaps saltwater wa streaks. mars is frozen solid but saltwater freezes at a lower temperature. jon: dr.~michio kaku thank you. rick is asking questions about mars. >> reporter: john says maybe mars was once a living, thriving planet like earth. chris says i'm currently reading the martian chronicles. jenna: republicans running for president getting ready to square off tonight. the very first debate in iowa this time days before that state's crucial straw poll. live with a preview on that. plus an incredible, a truly incredible breakthrough in cancer research.

we'll tell you how the aids virus is playing a critical role in potentially curing people. we have that story next. ♪ and so the conversation turned ♪

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jon: it is high noon, at least on the east coast on this thursday, hello to you, i'm jon scott. jenna: hi everybody, i'm jenna lee, we're on another ride on wall street, jon, up, down, all around, where it goes from here, really, anyone can guess. jon: check it out, 261 points to the positive, erasing some of yesterday's plunge, stocks are surging on what is a better than expected jobs report. jenna: might be one thing, but there are so many factors in this market and we're going to talk more about that with neil cavuto. in fact let's go straight ahead to neil cavuto, senior vice president at business news. neil, let's talk about the jobs numbers, we get them every thursday and often there's a connection made to

a market rally or a market decline. any sort of factor these numbers are -- these factors are playing? >> there are factors. i don't want to rain on this parade but the fact of the matter, these jobless claims are very volatile, they're a sort of momentary snapshot where the jobless situation is, the very latest number of americans, for example, who apply for unemployment benefits, so it is ongoing and by its very nature volatile because companies come and go with their announcements on layoffs. having said that, because they were less than the 400, to four to 5000, they were expected to be around 395,000, this market, which is looking desperately for any good signs, pounced on it, just as it did when the employment report came out for the month of july and we showed job gains in the vicinity of 117,000. now, that was a little bit better than the anemic figures they were looking for. keep in mind, at this stage of a recovery, jenna, we should be seeing jobs

gaining at a much more robust pace and we should be seeing claims, really, half this amount. so while we take what we can get, the gains that we're experiencing, because of this, might be a little bit ahead of themselves. jenna: and we should mention, we've seen, what, 1000 points down in the dow, neil, over the last couple of days? and obviously, a lot of volatility. >> sure, just this week. jenna: one of the things we were talking about with dennis berman of the "wall street journal" this hour is what was the worldwide reaction to the news this week and he was saying if looking at this crisis in comparison to 2008 it's not so much a consumer crisis or corporate crisis like you saw in 2008 but more of a crisis in countries. would you agree with that? >> i would. i like the way that's framed. think about it. the one thing we have in common in this great global village of ours is the fact we are eager -- increasingly, with computers today and with trading systems and swap the and

derivatives, i don't want to bore your viewers, i'll save it for my show, suffice it to say, we're all interconnected in a world that loves it when we interconnect to the upside, but not when we interconnect to the downside, and i think that the fears were particularly in europe, when some of their banks came under pressure and a big french bank, societygen always e was under pressure, even though the bank insists the selloff was unwarranted, that its books were fine, it was fine, and either when the country's president interrupted his vacation, in and itself a big deal, when anyone in france interrupts a vacation to say everything is okay, fear feeds on itself and it affects not only society generale, but some of the other institutions, all down 10 percent or more today. this weak, from -- this week down from the highs of more than 30 percent certainly in their market. the fear seems to be, rather real or imagined, that these banks are in a real, real

fiscal vice, that their books are locking up. now, the banks say quite to the contrary but you remember from the financial meltdown in this country and worldwide a few years ago, fear becomes a reality because if people get nervous, gee, what the heck, i'm not going to loan, someone says i'm not going to lend, and this is what led to the situation in london with black rock, a big financial institution that ended up going under, when people saw the bad press, lined up outside the bank to withdraw money. we're not at that stage yet and i hasten to add hopefully we aren't near it but that's what fear does, it feeds on itself where people say the better part of valor here is to take my money and run. jenna: it looks like some today are putting money to work but when we get to the 4:00 close, and during your show, ironically, neil, it's always a best guess. thank you. and for more in depth financial coverage, "your world", 4:00 at the market close, every week day by the way. also at 6:00 p.m. eastern

time on the fox business network. neil is right, he does use a lot of the fancy terms, especially on that show. at 10:00 a.m., i'm throwing a lot of things at you right now, but 10:00 a.m. on saturday neil is going to have special live coverage on the brink, answers from the abyss, this saturday, fox news. jon: how do we crawl our way out of the abyss? that is one of the questions that republican rivals are preparing -- prepping for for the debate in iowa, they're facing two days off before the -- or they're facing off i should say before the iowa straw poll, hoping to make way with voters and break away from the pack. chief political correspondent carl cameron live from ames, the leading candidates, who are considered the frontrunners carl? >> there's two and one is national and one is in iowa, really. mitt romney is considered the national frontrunner,

he's leading the polls by more than half a dozen points, well outside the margin in most of the polls, high teens or low 20s and he has a great deal riding on this. he hasn't been campaigning particularly aggressively in iowa and plans to ramp that up. in fact a short while ago he was down at the state fair in demoines where he was accosted by democratic activists, arguing with him about social security, and mr. romney had to raise his voice in order to get over the din of what appeared to have been hecklerlers according to folks who saw it. the iowa frontrunner is michelle bachmann, from minnesota next door, the chairman of the house tea party caucus. she has been dominating the buzz here, drawing huge crowds with a great deal of enthusiasm, so both of them have a great deal riding on tonight's debate, mitt romney will face his share of criticism from the rest of the field and michelle bachmann who has largely escaped direct criticism will be standing shoulder to shoulder with some of her rivals who have been from a distance tweaking her for an

absence of executive experience because she's never been a governor. it will be interesting to see how the two face that. mitt romney got a bit of it today at the state fair. jon: so it's jon hauntsman's debut but he's not even competing in iowa, really. what's the story there? >> reporter: he's been in the race now for a little over a month or so and this is his first stop in the first of the caucus states, jon huntsman, former governor of utah and obama's former ambassador to china, focusing principle on new hampshire and florida. his presence is exclusively for the debate, though he plans to make a pit stop at the state fair. he may get away with not being noticed. this is a big opportunity for him to introduce himself but it's the debut of his performance, but it's not so much about iowa because he's downplaying it here, focusing on later. but there will be folks watching and probably the most premiere interest is not in iowa, it's in new

hampshire and north carolina, they will be watching closely and that's why hauntsman has a lot riding on tonight as well. jon: we're all going to be watching, thank you, carl, and you can see the debate, it gets underway at 9:00 p.m. eastern time, the debate cosponsored by fox news, washington examiner and iowa republican party. your moderator will be bret baier. watch the debate streaming live on your computer at live.foxnews.com. >> jenna: police are hunting for suspects in the worst violence great britain has seen in decades and just into our newsroom we have new video of those raids that have been happening. rick do you have some of those? >> >> reporter: we do. the prime minister david cameron promising there would be raids to try to hunt down the people responsible for that violence, the prime minister following through on that, this is video just into fox and it's understandable journalists would be invited to come along, after all, the publicity and coverage that the rioters have gotten

-- here's some of the video on the ipad and you can take a look as police break down the door of one of the suspects, police saying they actually brought a number of people in today, they brought them in and charged them with violent disorderly conduct, burglary as well. you can see, again, they're going into the house, they're bringing people out, and many will see his identity has been blurred. and in so much of the video of the rioting that we've seen, rioters have actually tried to conceal their identity wearing hoods or masks over their face, but the police evidently learning who some of these people are and going and bringing them in and you can expect to see more of this kind of thing jenna as officials in the u.k. try to bring this situation under control for good. jenna: tensions still there, rick. thank you, we'll continue to follow this story. thank you. jon: there is new information in the fatal stabbing of a popular christian school principal, police say the suspected killer made a chilling confession and admitted his

motive. we'll tell you more about that case. plus, a potentially huge breakthrough in the treatment of cancer. two severely ill patients, cured, their bodies transformed into cancer killers. dr. garner is here to explain the details of this new amazing study next. in the meantime, any cancer questions for the doctor? rick is at our web wall to tell you how to ask. >> reporter: is there a family out there who hasn't been touched by cancer? if you have questions about treatment for dr. gardner, go to the chat room, it's america's asking at the happening now home page, foxnews.com, send us your questions, we'll pose them to the doctor and have more on this important news when "happening now" returns right after this.

jenna: welcome back, everybody. right now, some new information on a few crime stories we're watching for you today, starting with this one. prosecutors say the suspect in the tucson shooting rampage should remain force

ibly medicated despite objections from his attorney, jared lee loughner has pleaded not guilty to charges in the january shooting of 19 people, including, of course, arizona congresswoman gabrielle giffords. six people died that day. tennessee police in the meantime are charging a 17-year-old student with first degree murder in the fatal stabbing of his principal. vorts say the student confessed, telling them he planned to kill 49-year-old suzet york because he simply did not like her. and fbi bomb experts removing a possible explosive device from a gas line in oklahoma, sheriff's deputies discovered it in evacuated nearby homes, the device is being assessed to determine whether it posed a real threat or not. jon: now to what could be a major breakthrough in the fight against cancer. doctors treating three leukemia patients with modified white blood cells that relentlessly attack the disease, the cells so deadly

to cancer, some are calling them serial killer cells. two of the three patients that have been tested have seen their cancer completely disappear, and in the third, the cancer reduced by 70 percent. here now, dr. stephen garner with new york methodist hospital. it's absolutely an amazing study but we have to tell people, it's very small. >> it's a small study and we're only a year out but it's an amazing study. i think it's the number one study of the year actually. we always thought we could do this but never did it in fact and here we are training the body's own cell toss go out and kill cancer. jon: basically what the researchers did is remove white blood cells from these patients, right, then it's very interesting, they actually took a modified version of the aids virus and injected it? >> they need to make a genetic change in the cells so they took the cells out and in that virus they put all the changes and it enters the cell, that's what wa virus does, and takes over, so they were able to set up the type of cell they

want it to be, it's a ferocious cell t. kills 1000 or more cancer cells, this one cell. >> so these leukemia patients were the ones tested, they were near death. >> they had two weeks to live. jon: they got this treatment, what happened? >> they're still alive now, two are totally disease-free, one has a reduction of the disease. the cancer dissipated within a matter of three, four weeks -- two, three weeks, pounds of cancer, disintegrating. >> the white blood cells essentially, as word described, became serial killerrings, they roamed through the blood stream and hunt down the cancers. >> in the genetic change, they have t cells that help the problem, so now you have the t cells descending, plus multiplying, so you put in 100t cells, you end up with 1000, and there are memory t cells that they remember and stick around for a year or two, and therefore, keep the cancer from recurring. jon: amazing stuff.

rick has been asking our viewers if they have questions about this, and they do, and dr. garner has answers, we hope. >> people weighing in and want to know about specific kinds of cancer, jon, and dr. gardner, billy green wants to know if this could potentially help folks with lung cancer and kathleen shuts who has bladder cancer wants to know if this might be able to help her. >> right now we know it's going to help lung, ovarian, multiple my quleem and melon oma, those are similar to the leukemias, but this is the prototype this, is the road map that will develop to cure the other cancers like bladder cancer and breast cancer because we can train cells, take the white cells out and train them to kill whatever cancer. this is specific therapy. right now it's barbaric, where we kill good cells and bad cells, this is targeted at specific cells and tumors. jon: amazing stuff and really positive, a really positive development. >> you know what's scary,

that this didn't almost happen because they didn't have funding. can you imagine, no farm suiticals, they didn't want to do it, unfortunately, a couple who has now died of leukemia gave the money. jon joond that's how they were able to pay for it? >> yes. jon: what a lucky break, really. doctor, always good to talk to you. jenna: what an incredible story, it's stunning to listen to that, what a breakthrough that can be. we'll continue to watch that story. i know that's important to so many of you out there. we'll keep you up to date about that. in the meantime we have to turn to politics now, republican contenders gearing up for tonight's big debate in iowa. we're going to take a look at each strategy, what they need to do tonight to stand out and to show they can take on the president. that's straight ahead.

jon: more now on tonight's must-see debate. republicans running for the presidential nomination are gathering right now in ames, iowa. when they take the stage, they'll be trying win over voters who for the most part are pretty unhappy with the state of politics in this country. a new poll by "the washington post" finds 78 percent of americans are dissatisfied with the way the political system is working. that is a sharp jump from two years ago. larry sabato is director of the center for politics at the university of virginia. and joins us now. larry, you say we should expect some outrageous statements tonight. >> well, i think from some of the candidates, jon. particularly the undercard candidates who are well behind. look, it's exactly what you just said. we're getting close to the real process beginning. it's time for the polite patty cake to end. presidential politics is not a sunday afternoon tea

party. this is top rough stuff and the candidates know it, i think they expect a lot of back and forth, rock pem sock 'em. >> you mentioned tea parties, are there going to be appeals to the tea partiers in this debate? >> absolutely. i wasn't referring specifically to the tea party, just a british-style, polite tea party. but yes, i think there will be overt appeals because after all they're a big part of the republican base, you've got maybe 10,000 people who are going to participate in this ames straw poll on saturday. there's no question that hundreds of those voters, maybe thousands, will be influenced at the last minute by what they see tonight in this debate. this is a critically important debate for the first voting on saturday. yes, it's a phony kind of voting, it's not a real caucus or primary, you don't get delegates to the convention out of it, but we treat it as though it were real. jon: yeah, it is a presidential debate, obviously, but there's a lot

of dissatisfaction out there, larry. fox news took a poll about how people feel about the job that congress is doing, and the results show that, well, it's never been worse, only 10 percent of americans approve of the job congress is doing right now. >> jon, and the 10 percent i'm convinced are the family, friends and staff of the members of congress. you wonder who they are. how anybody could really approve what's going on is beyond me. but look, this creates an opening for the candidates, not just to bash congress in general. when the voters are in a surly mood, it actually gives the candidates an opening to be tougher in their presentation and going after president obama and one another. jon: and speaking about president obama, the reuters ipsos poll results, when asked whether things are on the right track or wrong track in this country, only 21 percent say we're headed in the right direction,

73 percent say we're on the wrong track. that's a huge predictor of what happens in the white house. isn't it, that poll? >> it is. obviously, the president is very lucky the election is not this november. it's hard to imagine an incumbent president being elected with right track, wrong track numbers looking anything like this, but again, you wonder, who are those 21 percent? whether you're left, right or middle, who could be happy with the direction of the country now? >> jon: maybe they all work in foreclosure departments in banks or something like that! doesn't seem like there are very many people out there who have good jobs at the moment. so who has to make a mark? who has to stand out tonight? >> look, well, the undercard candidates, for sure, jon. look, they have got to make progress quickly, or they're going to be winnowed out. that's what iowa is for. it's a winnowingg process. it doesn't take the -- pick

the "nomie, it winnows out, takes out, some of the wacker candidates, so they've got to really be dernd but look, mitt romney is the punitive frontrunner. he's going to try and stay above the fray and he has a big problem and it isn't on that stage. his big problem is named rick perry who is apparently jumping in on saturday, is going to step on the story of the debate and the ames poll. i think romney needs to be very worried about perry. will romney or some of the other candidates take jabs at perry. jon, perry's theme song is taken from that sultry singer peggy lee, is that all there is. he's referring to the other candidate, is that all there is. they have to respond. jon: it's going to be interesting to watch. i know our chatters are already on there, advocating their favorites. larry sabato from the university of virginia, thanks. >> thanks jon. jon: the candidates take the stage to make their case in iowa tonight.

you are going to want to see this debate. you know that. starts on fox news channel, 9:00 p.m. eastern time. it is cosponsored by fox news, the washington examiner, and the iowa republican party. and if you'd like, you can watch the debate, streaming live, on your computer at live.foxnews.com. jenna: lots of ways to follow it. in the meantime we have this story for you. a marine fighter jet onofre dar, his crew -- conceivably lost at sea, before. this is what happened earlier today. we have the details on their dramatic rescue straight ahead. >> the hot topic today, and really every day as it has been in the last couple of weeks is the economy. join our chat to tell us your thoughts. rick is at the wall to tell you how to tbhai and you're going to be online as well. >> reporter: we'll have a national conversation foon during the debate so while you're watching bret and the gang on fox news channel, join me for a live chat at foxnews.com, but we're also chatting now about the economy as jenna said. have you looked at the markets?

you've heard of a yoyo diet. this is a yoyo market. it's up, it's down. what are you thinking about the markets, the economy? go to the home page, happening now, america's asking is how you click, and log in for twitter and facebook, and send us your comments. we'll try to read a few of those. more of "happening now" coming up after a quick break. don't go away. forget it. [ male announcer ] there's more barbeque time in every bag of kingsford charcoal. kingsford. slow down and grill. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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jon: a fox news alert. and we now know the democrat house members who will b so-calr

committee. nancy pelosi has just announced their names. three familiar faces if you watch "fox news channel." congressman chris van hollen, congressman james clyburn, and congressman javier becerra, from california, south carolina, and maryland, respectively. those three men are nancy pelosi's picks to be part of the so-called 12-member super committee charged with coming up with $1.2 trillion in deficit reduction. >> you're going to have to come back to the table with 4 billion, 4 trillion dollars worth of cuts. like it or no. you can not let your borrowing requirment get out of hand and your ratio of gdp to debt is just getting ridiculous. as many of the european countries are. i feel absolutely passionate about this for the simple reason i believe excessive debt could lead to the demise of democracy. i think it is that bad.

jenna: a profund statement following up now what we have the super-committee that will try to figure out what to do with some of this debt. that was the market analyst david buch he has been watching the financial world for 49 years. he really got us thinking and certainly a lot of reaction from you the viewers. could the debt problem we're experiencing right now lead to the end of some maybe our own, maybe some others? we'll shaq about james shanl none and professor at warren school of business. peter schiff is professor of your and president europacific and larry glazer. mayflower advisors. it is a big topic and we have a few minutes to figure out if we'll see the demise of democracy. so good luck to us all. peter, do you think there is a link here? a lot of debt will deed to the destruction of democracy? >> absolutely. the framers of our constitution warned about perils of democracy. that's why we were

established as a republic with a lot of safeguards to protect us from democracy. unfortunately a lot of the safeguards have been removed. unfortunately politicians to get elected promise something for nothing. we created a dependent class and borrowed money to provide for it. europe made the same mistakes. when you compound that with the fact that u.s. and europe, we decided unfortunately to bail out all the banks of a the financial crisis and we assume that debt on top of the debt from social welfare states and governments are broke. they have to level with the public and tell them that the gravy train is over. that is happening in europe now. it is going to happen here in the united states. i'm afraid that we're going to have some very violent reactions by people in this country when they lose that something for nothing. and who knows what is going to happen? we lose a lot of rights when there is a crisis. we lot lot of rights following september 11th. jenna: sure. >> losing rights fulling following the financial crisis.

when people don't have enough food, don't have enough power and dollar collapses and people are rioting, who knows what the government is going to do. jenna: interesting you mentioned the founding father, peter and larry weigh in on that. >> sure. jenna: when we became a nation back during the american revolution. here is a dose of history. some of our founding fathers haed to go out and get credit lines from countries like from the france and dutch. that legitimatized the country that we had a credit line, that we had debt. still to this day people are buying our debt. in some ways does the debt still legitimatize us as a sovereign nation? because of out of all the debt out there people are still buying ours? >> sure. i think what you find here, certainly events always appear the darkest before dawn. when we look specifically at the u.s. debt downgrade by standard & poor's, what we see many investors might interpret that at the end. empire. that may actually be the beginning of the recovery, beginning of the restructuring that needed to

happen all along. this is political cover washington needs to make reforms and hard decisions necessary. i view this as opportunity. it is interesting, jenna, when we look at unfounded fear-mongering came about the s&p downgrade, investors said credit card rates would soar and mortgage rates would soar and car loans would be unavailable. in fact we haven't seen any of that. we have seen rates come down. we haven't seen any absence of liquidity. >> not yet. >> well, peter, we see a weak dollar, you're right. that is good for u.s. companies for isn't it? >> it is lousy for u.s. companies. cost more to produce. raw materials are more expensive. imported components get more expensive. it means there is no capital to invest because the capital is fleeing weak dollar. temporarily you have a flight into treasurys. but pretty soon our creditors are going to realize you can't seek a safe haven from treasurys in treasurys. foreign central banks will stop buying our bond and u.s. currency will implode. jenna: let me jump in here, guys i like to get sam involved as well.

you're talking about a lot of different market components, sam. but i'd like to bring up something we saw over the last couple weeks. let's bring up the new cover for "time" magazine. check this out. if we can check this out. it asks the question of the decline and fall of europe. in quotations, you can't see very well, and maybe the west. sam, is it really about the economy? we're talking about demise of democracy? can the economy cause it or other things we can consider? >> there are a couple things going own here, jenna. certainly the situation with our debt be it europe or united states will prove to be extraordinarily challenging for us and require you us to make very difficult choices. as we look forward how will we restructure our economies and how will we restructure our debt? in the united states we don't see policymakers working together in a way that is leading to some of those move developments. there is naturally an extraordinarily degree of frustration amongst people

who are very engaged in the political pros ses -- process of the does that necessarily mean we ultimately face a situation where voters will disengage in a way that means the end of, citizen participation? jenna: sure. >> and i think we don't. i think if anything, the signals are that while voters are frustrated, while citizens are not necessarily clear about how to direct that frustration, we see that playing out certainly in london, where it is misdirected, undirected. that doesn't necessarily mean that we're headed down a path where ultimately we devolve into chaos. we've seen in the past many countries gone through times of extraordinarily economic turbulence only to emerge stronger. what i would suggest, also, jenna. jenna: sure. >> even if countries where we see very significant income constraints, in the emerging economies, democracy can take hold. it can take root and it can thrive. jenna: peter, go ahead, peter. >> in this case, democracy is the problem because our

leaders want to get reelected. so they don't want to do what's right for the country. jenna: would you offer a different system though, peter? is it a choice between democracy and something else? >> if we can go back to republican government the way the framers envisioned it. if we went back to real money and still on gold standard like we were supposed to be we won't have all this debt. the problem we voted ourselves into bankruptcy and our elected leaders want to stay there. they don't want to be honest with the american public and level with them and they have stop spending and start saving. we have to start producing and not just consuming. we can't have all the entitlements promised all welfare benefits, social security benefits, medicare benefits. we can't look to government and we have to look to ourselves and be responsible to ourselves. they don't want to say that. they want to be elected promise a free lunch. there is no more food left. jenna: we've seen something over last few years with financial crisis. consumers have been able to get their personal debt in check somewhat, not

completely but somewhat. >> no question. jenna: is that a lawmaker? >> it is a model. again when we talk about the three pillars of the u.s. government, government, certainly very late getting its act together but where there is hope here with reform we can see some cost-cutting and some difficult decisions. what we see other pillars of the u.s. economy we see consumer has been deleveraging. the savings rate is significantly higher than it was a few years ago. consumers are saving more. it may not be good for spending but it is good for the consumer and their well-being. stock market is made up of companies. they have highest level of cash as a percentage in last 50 years. not great for jobs but good for the stock market. >> i would disagree. i don't think a government is pillar. i think government is a barrier to -- >> stock market is earnings and earnings have been relatively strong despite all of your challenges. jenna: interesting talking about the stock market but we have to talk about what is happening in d.c. and we have to talk about what is happening on main street. sam, peter, larry, great to have you for this

conversation one i think we'll continue to have. it is something pervasive in every single story we cover and whether or not it is a tippingpoint for this country. thank you, gentlemen. jon: if you are in the market to buy a home, assuming you have the savings in place to do so, there almost has never been a better time to do it. and it is also a great time to refinance your mortgage. also time to log on and vote for our must-see moment of the day. rick is at the web wall with your choices for today's hot story. rick? >> reporter: you decide, we report. couple minutes for everybody to weigh in. here are your choices today. top of the rock, "30 rock" just around the corner from us in midtown manhattan. guy needed to be rescued. we'll show you video if you choose it. or which prime minister was sporting a web suit. we gave it away. you know who that is. we'll tell you more about putin's adventures. or maybe you want to hear about the mooing contest. go to our homepage, "happening now"@foxnews.com. now is the time to vote.

we'll have the winning story after a quit break. don't go away.

>> hey, everyone, i'm megyn kelly. karl rove joins us live to handicap the candidates tonight in iowa. plus frank luntz is here on the gop political ads taking aim at president obama. which ones work, which ones do not? plus there is a movie coming out, three weeks before the presidential election, on the killing of bin laden. some expect it to be an ad for president obama but is that legal, so close to voting day? kelly's court take that is one on. all that plus what is happening in london right now happen right here in america? we investigate. see you at the top of the hour. jon: here are some stories we are watching from inside the control room and around the nation. a fighter jet crashes into the pacific ocean but guess what? the two marine pilots are safe. the coast guard plucking them out of the waters off san diego a few hours after

their jet went down. so far no word on the cause of that crash. the fight over arizona's immigration law goes to the highest court in the land. governor jan brewer there, filing an appeal with the u.s. supreme court. she wants to overturn a ruling that blocked enforcement of key parts of that state law. and, if you can afford it, now, might be the perfect time to try to buy a home. fixed mortgage rates are at or near record lows. a 30-year mortgage, 4.32%. a 15-year, just 3.5%. unbelievable. jenna: that is interesting coming what happened after s&p down grade. everybody thought interest rates would spike but at least for the short term we're not seeing that. we have our must-see moment. rick, our viewers have made a decision. >> reporter: they have. chose to see dramatic video of a guy that needed to be rescued from one of the most iconic buildings on the new york city skyline. that is the top of 30 rock.

top of midtown manhattan. 23-year-old guy was very upset. he went up on the roof and threatened to jump. some of the most elite members of the new york city police department getting ready for an amazing rescue operation wearing a harness, jumping from one ledge onto another ledge. and in the end the result was a good one. they were able to get this guy down safely. no one was hurt, not the man, not the police in this rescue attempt that took place in midtown manhattan yesterday afternoon. back to you guys. jenna: glad he is safe. jon: that is 70 stories up too, i think. wow. jenna: thanks, rick. jon: the barefoot bandit is back in the headlines. who he is taking big bucks from now, and the surprising reason why. also, testing some amazing new technology to protect the homeland. an aircraft so fast, it can cross the country in just minutes. find out how the mission is going, next.

jenna: new information on a teenager who has really become a folk sensation and jon's personal favorite criminal, right, jon? the so-called --. jon: the punk. jenna: as he calls him. the so-called barefoot bandit responsible for stealing planes, boats, breaking into businesses. often committing his crimes while barefoot. he inked a deal about a movie for his life and something for his victims that might be the silver lining, rick? >> reporter: i guess if you can call it that. not too shabby a million dollar plus movie deal for this guy a 20-year-old went on a cross-country crime spree spree. the movie of the so-called barefoot bandit, colton harris-moore will come to a

theater near you. he wants the victims to know he is giving all the cash to them. harris-moore writing a message to those he stole from. i won't make a dime off it. it all goes to restitution. the contract i signed guaranties it. the barefoot bandit is still awaiting his sentencing. that is in october. he might watch the movie about his crime spree from behind bars. we should mention, this movie deal coming from 20th century fox which is owned by the same parent company as fox news. jenna: do you think jon will be at the premier? >> reporter: he will be on the red carpet. >> can see it now. jon: i don't think i get invited. just in, the pentagon losing contact with wan experimental hyper sonic glider, a thing launched from a california air spores base. it is unmanned rocket. it can hit speeds of 13,000 miles an hour. means it can fly from new

york to l.a. in 13 minutes. what is the purpose of this thing? lt. general tom mcinerney former air force vice chief of staff and fox news military analyst as well. this is not something intended to use to get air force brass across-country in a hurry, right? >> well, if they got on it, jon, they would get across the country in a hurry but i'm not sure how they would end up. jon: it's a weapon? >> it's a weapon. and the, the vehicle itself, it doesn't have high explosive. it uses kinetic energy to hit the target. which means it has to be spot on the target. jon: all right. >> this is part of the prompt global strike crowd that wants to be able to hit weapons, hit targets anywhere in the world in a matter of minutes. and i think that we've seen from what happened today and what happened last april, that there are a lot of challenges in front of it. jon: because the, the test in april failed. this test apparently has

failed. this thing flies at 3.6 miles per second as it is coming back down-to-earth. idea is if you have trouble, in, i don't know, tehran or someplace like that and you want to take out a weapons system you could potentially use this thing and it is not a nuclear device. so it is in a sense legal. >> yeah. it's legal. it is not nuclear. those are certain advantages of it. but on the counter side, it costs $1 billion if we want to build 10 or 20 of them per weapon. and in this affordability complex in the united states today, that's just not affordable. it is a marvelous research and development exercise. we have learned a lot about hyper sonic speeds, et cetera, but, i don't see the practicality of it. i'm glad they did the tests. they will only do two ses tests. unfortunately neither one of the tests were completely

successful. jon: as you point out you have to be spot on. you can't be missing by a mile even if you're going to try to use a weapon like this? >> yeah. you can't miss by tens of feet, particularly if you're trying to penetrate a hardened site or something like that. and so the real question goes, are there other tools like when we went after osama bin laden, we looked putting b-2s on that target. by the way we were watching him from august until 1 may, and we finally put in a special operations team. so you then start to ask yourself on a lot of these targets what is driving me to spend that kind of money to get that kind of performance? and it is a very valid question. >> well you sound like a skeptic i guess on this process especially -- >> i am. jon: after today's second failed test. >> i am. jon: general tom mcinerney. good to talk to you. thanks. >> thank you, jon. jenna: happening now, preparations underway inside

iowa. that is inside iowa state university. that where the debate will take place. eight gop candidates take the stage live on fox news channel, 9:00 p.m. eastern time. we'll have a live look and previews ahead right here on the "fox news channel." [ male announcer imagine all of your missed opportunities

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all in one plan. remember, the annual enrollment period is earlier this year. call unitedhealthcare now or visit us online to get this free answer guide from unitedhealthcare medicare solutions. call right now. jenna: well, we had a pretty good debate today about whether or not debt could lead to the demise of democracy, and a lot of opinions. >> reporter: good debate that you moderated and in our chat room as well. saving our democracy? simple, term limits. russell g. smith says if usa doesn't get its act together and try to pay off the debt, we're going to be very, very sorry. and then dave cook in nevada says that the reason we won world war ii is because we could outmanufacture and outproduce. jenna: that's an interesting point. >> reporter: yeah. jon: one of the problems, not a lot of manufacturing going on in this country right now.