in iowa between the president and a tea party leader, and most of that conversation is all on camera. speaking of cameras, they're everywhere in america today! so get used to it. moments like these, as we go forward for the next 14, 15 months. martha: so many in this room alone! good morning, everybody, good morning, bill, i'm martha maccallum. the tea partier, demanding to know why president obama was talking with civility when vice president biden allegedly called members of the tea party terrorists, something that the vice president has denied. >> how is your vice president calling us terrorists? >> look -- >> i don't understand it. >> okay, i'll -- >> we were acting like terrorists. >> no, what he said was that for us to take the economy to the brink is -- the crucial thing is, considering what he said about me --

>> it was irresponsible. >> bill: it does not end there. the two men were later spotted talking privately. when that was over, that gentleman in the jacket with the dark blue skirt, brian rose, talked directly with

henry from the fox news channel. his reaction: >> he denied it, he said that the vice president didn't make those assertions. if he doesn't want to admit what was on tv nationally, all over the place, how can you even have a conversation? then he decided to say we can't have a conversation because you're saying that i called you a terrorist. and the fact is, it demonstrates the deep divide that he is unwilling to negotiate without going after the other side. i mean, the whole day was about going after republicans and talking about how unreasonable they were. bill: as we mentioned, there's a lot more on this exchange back and forth and a lot more, too, from that interview there too,. so we got a terrific panel lined up, fair and balanced debate. martha: that whole moment, democracy, going back and forth, you've got the man animating the entire things and he did get together further and discussed it later. i give him credit for following up on that

conversation which was tricky to begin with. former president bill clinton, calling rick perry, a, quote, good looking rascal, while dismissing his polices as crazy, clinton said he was tickled when perry announced he was jumping into the race for the white house, but the former president says he finds it crazy that perry would cut the federal government if elected, also taking advantage of perks like air force one. you'll hear more on that and coming up in the next hour, rick perry, taking on the fed, saying that printing money is treasonous, talking about ben bernanke in that quote. so the pundits and the folks in the electorate have made this comparison, another texas governor like george bush, george bush, in the oval office for eight years. is it really a fair comparison of the two men? karl rove, who better to ask that question to? he's going to join us on that moments from now. as you know, fox news is the front row seat for politics. log on to

foxnews.com/politics, you can get all the latest and boy, things are fired up this morning! go to foxnews.com and get everything. bill: while we're on the air, we know a lot of you are on the computer. check out the news site. another fox news alert, a tough sign of the times, our military rethinking its pension system, the department now composing the largest overhaul of the military retirement system we have seen in 50 years. kelly wright has seen the report. what does it recommend? >> reporter: in july, the business board actually called this presentation modernizing the military retirement system task group, it concludes the entire system is out of date, unfair, unaffordable and inflexible and expensive, totaling $24 billion for fiscal year 2011, and that future liability will grow from $1.3 trillion to $2.7 trillion by 2034. this report also cites how increases in inflation and

life expectancy will further increase retirement pay for the military. the board is concerned these rising costs could undermine the military's war fighting capabilities in the future, bill. bill: what is the defense board proposing, kelly? >> the board is proposing some dramatic modifications to the existing system to reduce cost, which is why we're talking today. the implementation would be phased in to ensure current military personnel are treated fairly, although it would pay attention to the cost. it would be very similar to a 401(k)-style plan with government contributions but unlike the current plan which provides retirement pay immediately after one retires having served 20 years. this plan requires a service member to reachie tiermt -- retirement age first and then pay them. it would save $250 billion over 20 years, according to this report. as you can imagine, some active duty service members out there are very concerned in fact, i've received one e-mail from a military member who states if this

policy is put in place it will destroy the military. you might notice, everyone on the panel is a civilian, and the only military they talked to is very senior leadership. this person goes on to say this is very disturbing to me, those that have given so much are asked to give more, and those that have given nothing continue to get everything, bill. >> bill: thank you kelly. kelly wright on that breaking news out of washington. martha: big turnaround on wall street, the dow closing out a three-day winning streak on monday, up 213 points, and really, that's erased those losses from those huge swings over the course of the last week. so this is the largest three-day percentage gain that we've seen since march 2009, if you're trying to read this market and going a little crazy, you're not alone, folks. what can we expect today? stuart varney joins me from the fox business network. what are you looking for today? >> i'm afraid high anxiety is back. maybe it didn't go away that

much. but it's certainly back this tuesday morning. we're looking for at least 100-point loss for the dow jones industrial average, when it opens up in about, what, 20 minutes' time and more to the point, gold is making another run at $1800 an ounce. lots of anxiety returning this morning, martha. martha: you know stuart, the conversation keeps going back to the underlying fundamentals of business in this country, and whether or not the economy is actually showing any signs that it's going to get back to any meaningful growth. >> here's what we've got this morning. moody's, the rating company, now says there is a one in three chance that america will slip back into recession, and we have president obama's jobs plan, we're not going to see the details of it or even the broad outline of it until after labor day, in other words, a job creation plan is literally months away. add in anxiety from europe this morning, because germany, it has been reported, is now at a dead

stop, and germany is the country which has to lead the european bailout. so you've got anxiety about a coming recession, maybe in america, and anxiety about europe on the brink of recession yet again. martha: a lot of pressure on all the western economies. it's a frightening underpinning. stuart, thank you very much. we'll be watching. good to have you. bill: you go on vacation, people go hey, did you see the stock market today? people are talking about this thing. it was phenomenal to watch that movement. martha: incredible. bill: we'll see what happens in 20 minutes. those are some of the stories we're watching. a lot more coming up, including these new concerns about a shortage of medicine all over the country. are patients losing access to life saving treatment because of it? >> martha: and flash mobs, striking again, where they popped up this time. bill: they're back at it, right? and why is the president wait to go make that jobs plan public until september? you heard stu mention that.

this would be a flashpoint in the election of 2012 and the candidates, already hitting the white house hard on the economy. >> you ready for answers? i'm not going to raise taxes. that's my answer. i'm not going to raise taxes. and if you want somebody that can raise taxes, you can vote for barack obama.

martha: these flash mob fears are spread to go maryland now, a few teenage appear to be shopping and suddenly in the blink of an eye it goes from a couple of them to a mob of 30 people and as quickly as they arrived they were out the door. they left, though, without paying for nation they took. that's just so disturbing. listen to this. >> they all converged on the store at the same time, within a minute, the whole group left the store. >> it's pretty worrisome. not only are we here ourselves but we have quite a few employees, that is quite dangerous. it's something we're concerned about, but i never

heard of 30 people rushing in like that. martha: it's a tough situation for store owners and community leaders are considering a curfew, they just did this in philadelphia and they are hoping it will prevent things like this in the future. bill: more and more common. president obama saying he has a plan to get america working again and he will unveil that plan soon. national unemployment average hitting 9.1% in july and the following chart will show you the unemployment rate ticking up steadily since 2007. look at that line. the president telling supporters last night in iowa that he'll work on a plan and make it public just not right now. >> i'll be putting forward when they come back in september a very specific plan to boost the economy, to create jobs, and to control our decifit. and my attitude is, get it done. bill: others are saying why wait until then. virginia governor bob mcdonald is the brand new chairman of the republican governor's association replacing rick perry of texas. governor, congratulations, and good morning to you.

>> hey bill, martha, thanks, glad to be on with you. bill: good to have you back on here. what is your formula for creating jobs? because virginia has been doing okay, and -- >> i would say to the president, it's about time, we've had this challenge with nearly # percent or more unemployment for several years, and he's been focused on health care and social polices and regulating wall street and everything else, so i welcome his announcement in september. if it's going to be more stimulus and more spending and more government jobs, that's not what we need, but if the president is going to put forward a plan about free market principle -- that's got free market principles that helps reduce taxation and regulation and unionization, and it's promoting free market ideas, then i welcome it. bill: do you -- >> do you expect that from the white house? >> well, i'm not holding my

breart based on what they've done so far, but for the good of america, i hope that's what he does. i hope he gets good ideas for republicans andand puts those forward in his plan so that we can get this heartbreaking 9.1% unemployment down. we're down to 6 percent in virginia and that's what we've done. i can only tell you, bill, it's worked for us in virginia, we're not satisfied with 6 percent, but it's the free market that creates jobs, not government. bill: what have you done in virginia? because i'm looking 569.6%, national average is 9.1%, as i mentioned before. you're well below that national average number. >> we are. bill: what are you doing right? or are those government jobs for folks commuting to washington, d.c., governor? >> no, a small percentage of them are government jobs. most of them are private sector jobs. we've gone from about 7.2 to 6 percent, seasonally adjusted, since i've been governor, and it's been just common sense things, a strong right to work law, we've had various tax incentives and tax credits that we've passed, we've

focused on targeted industries like aerospace and technology to provide everything from new incentives to angel investor tax credits, to a number of things that really focus on promoting entrepreneurship and small business, we've opened trade offices in china, in india, england, to be able to pursue foreign investment, i've traveled there, and i'm basically telling the virginia story. we've been ranked the most business friendly state by cnbc and i'm telling people, they want to start a new business, come to virginia. bill: we'll talk to the fox business folks about where they rank you. you're running a surplus for two straight years now where you've been at the helm but you're also trying to dig out of a $4 billion hole, and you put all this together, this new appointment to the governor's association, there are reports suggesting that you would be a good v.p. pick for 2012. is that something you'd like? >> well, look, i'll let other people chat about that. i've got the greatest job in america held by henry

jefferson and i've got things i want to do. i've got a democratic senate and republican house, and we're trying to find a way to cut the rhetoric i. fiscal conservatism, balancing the budget, cutting spending back to 2006 levels and putting forward a free market approach to job creation and i hope the president will ahave that approach. bill: you were asked about that v.p. position on a radio show yesterday, you said you'd be interested. are you still? >> well, it's media speculation. i said look, if any governor gets a call from a presidential candidate saying you could help our ticket, will you join me, of course you'd be interested but i'm not looking forward or expecting it. i just want to have our republican team win next year, restore federalism, cut spending, get our debt under control, make america our great country. bill: governor, thank you for your time. >> glad to be on with you, thank you very much. bill: we'll talk again. you bet. eighteen minutes past the hour.

martha: how about this story? she says a man stormed into her house and attached a bomb to her neck, ten hours later, police said there was no bomb, but there was a mystery to solve. now, an arrest in this case, all the way in kentucky. bill: bizarre, isn't it? >> martha: really bizarre. bill: a beautiful day the the pool turns into a chaotic scene, why dozens were sent to the hospital and hundreds more evacuated, told to get out. martha: before you head out to the park or beach today, take fox everywhere you go. it's so easy to do this while you're on vacation, foxnews.com/mobile and download our app on your phone. we'll be right back.

bill: we are 22 minutes past

the hour, a 16-year-old in london charged with murder for attacking a man during recent riots, 3000 arrests so far, 1400 charged with riot-related offenses. a chlorine gas leak at a water park in sacramento sends 20 people to the hospital, most children. hundreds of others evacuated as a precaution. but witnesses there say that the help was given to the wrong people. >> they didn't have oxygen tanks for people helping the workers, instead of kids that were bawling. bill: no one injured, that's the good news. >> border agents busting a man who attempted to smuggle in drugs, the value was estimated at $133,000. twenty-three past the hour. martha. martha: frightening home invasion. five masked men burst into a house in an upscale town in connecticut. the family was tied up and held at gunpoint. >> it was brazen, you know,

just to come here, middle of the night, raining, hand guns. >> everyone is physically okay, everyone is definitely mentally distraught and exhausted from the whole ordeal. martha: they did obviously not want to be seen on camera. distraught, can you imagine? david lee miller joins me from the new york bureau. >> this happened in branford, connecticut. what the authorities are trying to figure out is whether or not this was a random act or whether this home was specifically targeted. at this hour, police say they do not know, but this much does seem clear, the intruders had planned this invasion, during the ordeal, cops say they wore hooded sweatshirts and bandanas, they wore gloves, and they were able to conceal their i.d. no type of artist sketch was made of the intruders, they came equipped with zip ties to restrain the victims, before they left the home they poured -- poured bleach

to hide the evidence. they were unable to break into the safe in the basement, when they didn't get into the safe they threatened to kidnap a three-year-old in the home, ult -- ultimately, they left with liquor, homemade italian tomato sauce. the family said this was a traumatic incident. thankfully, no one was injured. martha: a lot of strange things happening in that story and you hear that and you think of that horrific home invasion case that ended with so many lives lost back in 2007. are police worried there could be any connection or that this is a copycat kind of attack? >> reporter: at this time, police say they are not concerned that there may be copycat type of home invasions that could take place but for many people who live in connecticut, what happened here is an eery reminder of what happened in 2007, in case you don't recall, two

intruders broke into a home in connecticut 15 miles away from where this home invasion took place. there you see three of the victims there, two young women were killed, as well as their mother, dr. william pettitte, the party, was -- the father, was able to escape and interestingly in this case the intruders were caught, one is facing trial, the other intruder was tried and convicted and sentenced to the death penalty, martha, and what would be interesting to note here is to what extent, if any, the intruders in this most recent attack were aware of what happened in 2007 and the fact that one of the intruders is now on death row. did that come into play when they decided to leave their victims unharmed. martha. martha: thank goodness they did. thank you very much, david lee miller. bill: what an awful story that was when it broke. martha: that was awful. bill: you thought iowa politics were rough, huh? how about a brother and sister going for a bungy ride, they end up trapped

60 feet in the air. that wasn't the ride they paid for. martha: how about this? governors of the great state of texas, both of those gentlemen, one has been president, the other would like to be. are george w. bush and rick perry really two of a kind, though? >> they're not all carbon copy necessary texas. i tell people, one of the quickest ways you can tell the difference is he's a yale graduate, i'm a texas a & m graduate. martha: who better to ask about this than karl rove, right?[ male an we'll talk to him after r nu this.

bill: this was a bizarre story that led to an intense man hunt that started in australia and ended with an arrest in the state of kentucky. two weeks ago a woman in australia said a masked man reportedly broke into her home and strapped a bomb around her neck, she spent ten hours trapped in that device when police determined that was fake. now an arrest has been made and her father is speaking out. >> we are enormously lead that an arrest has been made in the united states overnight. these past two weeks have been a very difficult time for us and we are hopeful this development marks the beginning of the end of this traumatic ordeal for our family. bill: 50-year-old paul douglas peters who is originally from australia, a father of three, is now in custody. mike tobin, live in louisville on this, how did they find this guy, mike? >> reporter: well, paul

douglas peters has arrived at the federal courthouse in louisville, kentucky a short time ago, he is in line to make his initial appearance before a u.s. magistrate, the caravan arriving a short time ago and we're learning the appearance has been delayed an hour, the extradition process will take 60 days. peters himself is certainly not your typical bomb hoax suspect, he's an international businessman, even the australian prime minister calls this a plt out of a hollywood strip. how he ended up in louisville, kentucky or a suburb, is answered by the fact that his ex-wife lived in this suburb of louisville, and even neighbors said they had spotted him around here about six months out of the last two years, bill. bill: any indication as to why? what's the motive here? >> reporter: well, the motive certainly was money. the family, the parents of matty culver have a lot of it, they're known asan of the -- one of the wealthiest

family necessary australia but why specifically this attractive college girl was targeted, the culver family says is still a mystery to them. >> our priority as a family is to provide a loving and supportive environment to mattie and try the best we can to get her life back to normal, to help her recover from this ordeal. >> the wales police say they referred to a type k in which one man destroys another, australian police also say there is an indirect connection between peters and bill pulver but not a direct one. bill: it is bizarre. mike tobin in louisville on that story. martha: boy, that is a bizarre one indeed. all right. let's take a look at what's going on in the markets this morning, in the u.s., down 112, just as stuart varney predicted, as the u.s. is trying to rebuild its economic reputation, weeks after getting downgraded by

standard & poor's. there's now a discussion of further downgrades, and in that sort of way, but now a former u.s. attorney general says that america is actually at risk of losing its credibility in another way. on foreign policy, as well. and we are very pleased that he joins me now, former lieutenant general michael mukasey, thank you for being here this morning. you wrote this very interesting piece, along with tom ridge, the former department of homeland security head and lewis frey, the former head of the fbi, and you said you are equally concerned about our credibility overseas because of what specifically? >> because of on organization called the mek which has 3400 people living right here the border of iran and iraq to whom we promised protective status under the geneva convention back in 2006. it's a written document signed by a u.s. general. we took away their weapon, they agreed to surrender their weapons and now the government of nouri al-maliki doing the bidding

of the iranians has attacked them, there are films of them running them down with u.s. supplies and shooting at them with u.s.-supplied weapons. these are unarmed people. and they're doing this i think in large part because they're emboldened by the fact that we maintain them on a list of foreign terrorist organizations. for which there's no justification. they have attacked it in court and the administration has been sort of slow to get them off. martha: this is a story that not a lot of americans are that familiar with, and this group as you say was protected under the geneva convention. beyond the obvious human rights issue involved in this story, why do you think that there are larger implications for the united states' security? >> these folks have provided information about the iranian capability that was enormously valuable to us. they stand for regime change in iran. they are the only group i know of that stands specifically for regime change in iran. they favor a democratic

nonnuclear iran with equality for women, all the things that really we believe in, and yet, they are maintained on this list of foreign terrorist organizations. it started out in the clinton administration as a stop for the iranians to get them to talk to us. it didn't work very well, and it was kept on during the bush administration because we thought if we took them off it we would get the iranians so upset they'd send i.e.d.s into iran, and they've done it, anyway. >> it's documented that they are running over these civilians with humvees and very few people in the united states even know that this exists. robert gates, you say, also sort of turned a blind eye to this. why would he do that, what is the sort of diplomatic tradeoff that you see this administration making to look the other way in this situation? >> i think what they're interested in getting is a status of forces agreement that would outline the terms on which u.s. forces would

remain in iraq and that is obviously within the decision of the iraqi government. the iraqi government is right next door to the iranians and they do what the good boys in nine nibd want them to do so they are acting at the influence of the iranian government and we are keeping eye lent about it because we need a status of forces agreement. martha: you'd also like to see a bit more forcefulness in terms of our speaking out against assad and nor i al-maliki has stood by him while they have literally pummeled these prodemocracy forces in syria as well. >> exactly. martha: judge mukasey, very interesting piece, i urge everybody to look at it, it is published today. great to have you here. >> thank you. bill: we were talking with the governor of virginia about 20 minutes ago. during that interview the virginia governor said the unemployment rate is 6. o percent, he's exactly right but our screen said 6.6%, which is the correct unemployment for the state of kansas, but we're not in

kansas anymore! our policy to the governor. more of president obama clashing with tea party members on the trail. >> did they make their message clear? we debate that with a great panel coming up. martha: that is the video shot of the day. how about this? this 11-year-old hits a $50,000 hockey shot right into that tiny hole! check that out! >> martha: he now may not see a dime of that prize. that, coming up.

martha: some new warnings for beach goers in south florida. jellyfish are invading the waters in near record numbers, though they're not the most dangerous ones that we see in the ocean.

the jellies do have a particularly unpleasant sting and that's not really that much fun but that's not keeping swimmers away, no-no , no. officials say there's not a lot they can do other than raise flags and say look folks, there's jellyfish in the water. they are as far north as south carolina. watch out for the jellyfish. bill: you know how you take care of that, don't you? nineteen minutes before the hour. here's our top story again, president obama confronted by a tea party leader over civility or rather a lack of it in politics today. he was part of the exchange from last night in iowa. watch and listen:

bill: well, it went on from there. then afterwards, that gentleman, brian rodes gave his explanation of what the you said said after that. brad blakeman is former deputy assistant to president bush and doug schoen is a former pollster for president clinton and fox news contributor. we got brad on the right and doug on the left and gentlemen, i'd love to -- i loved this opportunity here because brad, you said exactly the opposite of what you thought -- i thought would you say and doug, you too. brad, you think president obama is in the right. explain that. >> i do. i think they came to the event to disrupt and to put the president in a get cha situation. certainly the president wouldn't have had a perry mason moment and said yes, of course we think you're terrorist, of course we think you're bad for america. that wasn't going to happen. look, it was akin to what

happened to romney at the iowa straw poll when the ultra partisan democrat tried to disrupt the speech that he was going to give. i think the line was appropriate that the president went over. if you're going to have that conversation do, it there, but to go there with a mission to embarrass the president and have a gotcha moment for your own purposes i don't think is respect of the to the -- respectful to the office of the president. >> you don't think rhodes was respectful? >> i don't think he was respectful in the confrontation that he had with the president during the event itself. i think he had a respectful exchange with the president on the rope line, which was the appropriate place to confront the president if you are going to do it. bill: doug, you say there's nothing wrong with what happened there. >> that's right. i mean -- >> bill: you support that exchange, that confrontation? >> i certainly support vigorous interchange with the president as long as it was respect of the and --

respectful and that looked respectful. it was heated, it was passionate but i make the argument that the democrats would be a lot better off if they engage in dialogue with the tea party, however heated it may be but bottom line, as long as brad says, he's right, the office of the president is respected, we do better with dialogue. the president went off with mr. rhodes afterwards and they talked and i think that's all for the good. i wish there was more of it. bill: what happened happened. i think there's a better question in all this, brad, and that is how did the president respond to the conversation. the allegation about that biden called the tea party terrorists, something that joe biden denied and said it was spoken by someone else. how did the president react here? >> i think the president blew him off, i think he was dismissive because the claims weren't of substance. i think the tea party would have been better off identifying themselves as tea party people and asking the president a substantive question that really means something and ask about jobs or policy, something that

the american people really care about. going there and acting like victim i don't think does your cause any good. bill: doug, do you think the president could have given a better response? or were you okay with it? >> i was pretty much okay. he said that he felt the tea party and biden felt the tea party had been irresponsible, he said the tea party took us to the brink of default, that was wrong, and i think that the president is exposing himself to disparite views and understanding that there is a majority of people out there who may not think on policy matters the way he does. that's to the good. these kind of discussions are frequently heated. it went right up to the line. i don't think it went over. bottom line, it's good when ordinary sit sense -- citizens, particularly -- >> bill: that is well taken when it comes to jobs and the economy. one minute left, gentlemen, to both of you. get used to it if you're a candidate in america today, whether you're running for city council or county commissioner or state governor or the house, senate, or even the white

house, because cameras are everywhere. and you have to be prepared and get ready, because moments like these will happen time and again, will they not, brad? >> they absolutely will. but i think if you want to confront a candidate, the way to do it is do it on the issues, do it on substance, do it on something that really means something, not only to your specific group but voters at large. bill: we are thinking about the joe the plumber moment from two years ago. martha and i were talking about that earlier. >> that's all to the good. we need more direct interplay. people are angry, bill, everyone knows that. brad is right, we got to respect the office but bottom line, this is a 24/7 campaign with 24/7 crises. we need the interplay, we need policy disputes and i think this was much more positive than negative. bill: lots changed in ten years, huh? every election that comes around. and this is the flavor now, in 2011. gentlemen, thank you, brad, doug, thanks. for our viewers at home, got a question? go to foxnews.com/"america's

newsroom", there's a bya box there, leave your question for brad, doug or anyone else that comes on the air, also hemmer, foxnews.com, also twitter, bill hemmer, bya, we'll get that started again because we've got the team back. >> martha: we do. if you have a question, send it to us as well. here's something that crossed the wire, fitz rating service has backed the u.s. aaa credit rating, they're saying the outlook on the long term rating for the united states of america is stable. it appears that the market reacted somewhat positively to that initially because the losses backed off to down 70, but subsequently, we've seen them go back down, over 100 points lower on the dow jones industrial average right now. we'll keep an eye on it. long way to go in the market day. bill: tea party is making a lot of news today and making their voices heard, too, a brand new poll showing the movement might be losing steam. is that the case? we'll ask two tea party leaders about what they think about these results and who is their pick. so far, in the race in 2012.

martha: have you seen this? a hero's welcome for a soldier returning from the battlefield. this is the feel good video of the day and it gets even better than this, i promise. man's best friend, folks! >> you've got a friend in me. >> ♪ >> ♪ >> ♪ you've got a friend in me. >> ♪ >> ♪ >> ♪

bill: stuck in a moment, new state fair in iowa. everything is happening in iowa! a brother and sister, going nowhere, 60 feet in the air. that's a bungy ride called

the ejection seat but nothing was ejected. took two hours to get them down. brother and sister, doing o. just a little sunburned! martha: we want to bring you new developments in the u.k. phone hacking scandal involving former tabloid news of the world, the now out of business newspaper was owned by newscorp, parent of fox news, and senior foreign affairs correspondent amy kellogg joins us with the latest on this story from london. hello amy. >> reporter: by martha. one of the central issues in this whole phone hacking story has been whether or not the practice was confined to a single rogue reporter at news of the world, which as you mentioned is the sunday tabloid that was closed during the height of this scandal or whether it was endemic. now, a letter that was released today by the former royal editor of news of the world, and he was also jailed for hacking, by the way, martha, claims that the practice was so widespread

that it was discussed regularly at editorial meetings. now, the committee for culture sport and media, which is the one that questioned both rupert and james murdoch at length last month has met again and said they still need to gather more information, specifically to reconcile conflicting information, what james murdoch has said versus what former senior employees have said about how widespread the phone hacking was. according to this committee, it's quite likely that james murdoch will be recalled in the autumn to further answer questions before the committee. >> james murder okay, we invited him to give evidence a few weeks ago. what i think people will be surprised at is there seems to be a question as to mr. james murdoch himself misled the committee. >> reporter: the letter written by clyde goodman and released today was supposed to be released by the committee and was somehow leaked to the guardian newspaper first.

the editor had jail time for hacking into the voice mail with members of the royal family, he made the claim that the phone hack was so common it was discussed in editorial meetings at news of the world until the former news of the world editor who then went on to become the communications chief for number ten downing street, andy coleson, banned the discussion of it in the sort of semipublic venues, the letter dates from september 2007 and written to goodman at the time he was fired from news of the world and he was dispute thank firing. martha: amy kellogg, thank you very much, reporting live from london. bill the stock market is off triple digits today. not the worst day we've seen, right? >> martha: huh-uh, a long way to go! the day can hold much better things. hang in there, folks. bill: a bombshell from the pentagon proposing a radical change in the pension plans to our service members. details on that and reaction from a career military man

as to what the future is for that. martha: and new concerns after this unbelievable event in indiana. could it have been prevented? when we come back.

martha: eyeing the largest overhaul of military retirement benefits that this country has seen since vietnam, the pentagon announcing this morning that they are proposing to end the traditional pension system, calling instead for a new 401(k)-style contribution program designed to give long time servicemen and women the same options that corporate employees have and oh boy, there's a lot of reaction to that. that's how we start this brand new hour on this tuesday in "america's newsroom", i'm martha maccallum. bill: i'm bill hemmer. good morning to you. sign of the times now, the main feature is called a

thrift savings plan, which is similar to a 401(k). that would include contributions from the defense department, and up to 16 1/2% of the military members' annual pay. martha: that's like civilian 401(k) plans, there would be no extra protection against market fluctuations like the big roller coaster that we have seen lately. so we wanted to bring in major general bob scales, our friend and a fox news military anlist, and general, good to see you this morning. >> hi martha. martha: what's your reaction to this? >> i think it's a bad deal. there's a difference between working for a corporation and serving in the military. i mean, a staff sergeanton his fourth tour in afghanistan, humping 100-pound roughbacks under the hindu cushion, getting shot at as a different job description than someone inside the beltway or a corporate manager, that's why from the very beginning the military retirement was structured the way it was structured. war is a young man's game,

we reward the men when they're young and the reward is, when they -- they sacrifice when they're young and when they retire they get a decent retirement, and this would remove that. ma march bob, of course, there's a national conversation going on right now about overpromising in terms of pensions and you look at all of the federal jobs and a lot of them -- it lot has been said about the different agencies and people retiring with over $100,000.0 year on -- a year on these pension plans and there's discussion about why we need to redo this. make your argument for why the military -- there's the obvious headline reason, because they're sacrificing their lives in many cases, or you know, risking that for our country. what's your read on why it's different? >> well, the big difference is the news media forget uses on people like me, retired generals who make a pretty good retired living but remember the vast majority of those that retire at 20 years are

noncommissioned officers, soldiers, sailors and marines and they don't make a lot of money and the retirement pay is not that onerous on the federal budget but 70 percent is in pay and health care, so the thing is to reduce personnel cost and as far as i'm concerned when you strip away the thin venire, it's a quickie way to reduce the defense budget and to save on the federal budget and the people who share -- who will share this burden disproportionately to this my mind -- to my mind are young soldiers. martha: the other question is how will it impact those who decide to join because we have the greatest volunteer army in the history of the country and how would it affect the decisions young men and women are making? >> i think that war is a young man and women's game. we need to attract 18, 19, 20-year-olds, they don't join for retirement pay but

one of the key factors is they stay for retirement pay, and my fear is once the wars are over and everybody goes back to thinking about peace time, we tend to forget our soldiers, and my fear is that the quality of the force will decline because the rewards of serving will go down. martha: we thank you very much for your input on that this morning, major general bob scales, always good to see you. comparing this new plan to what's in place now, the current system pays military veterans half of their salary at retirement, as long as they have served 20 years. now, the defense department pays 40 years of retirement for 20 years of service. so for anyone serving more than 20 years, the government's contribution is ten times greater than it is in the private sector. so that has opened a big conversation. bill: the story now that broke on foxnews.com, did anwar al-awlaki play a role in 9/11? there's a house committee looking into just that issue. the chairman of the committee, peter king, out of new york, sending a

letter to the attorney general eric holder saying that investigators believe that awlaki had contact with three of the hijackers on flight 77, that's the plane that hit the pentagon. the homeland security committee's probe is focusing on the extent awlaki may have helped the hijackers and whether or not he supported any al-qaeda terror plot before the attacks of 9/11. he was living in the united states for years before now taking his home in yemen. president obama, meanwhile, talking jobs on his bus tour of the midwest, saying he's got a detailed plan to deal with unemployment but it will not be public until september, he's accusing republicans of playing politics on jobs and republicans saying this is all just the president on the campaign trail today. caroline shively, on the north lawn, how long before we get the jobs plan, caroline? >> we're going to have to wait at least three weeks, maybe longer. that's when congress returns from its august recess. take a listen to the president talking about it yesterday:

>> moving forward, my basic attitude is we know what to do, i'll be putting forward when they come back in september a very specific plan to boost the economy, to create jobs, and to control our decifit, and my attitude is get it done. >> >> reporter: that has some of his allies wondering why wait, why didn't you have this plan six months ago. his defenders say it's not like he's been taking the summer off, he's been dealing with the debt crisis and other issues that have been popping, but there are things about this job initiative we know he wants to do. we know he wants to extend the payroll tax credit, he also wants to create more construction jobs and finalize some of the free trade packets but as for the nitty gritty details, we'll have to await the details. bill: what about this -- >> "the new york times" was the first to report the president apparently may combine parts of the department of commerce, along with parts of the

state department and the u.s. trade representatives. as far as what name it will be, certainly not the department of jobs. that would just be easy pickings for republicans out there in this down economy, bill. bill: not enough of them at the moment. thank you, from the north lawn of the white house. martha: we've got new details for you in the case of robin gardner, an american woman missing in aruba, the suspect in her disappearance, a judge ordering this maryland man held for another 16 days at this point. now, the police believe he was the last one to see the 35-year-old woman before she disappeared, the two were reportedly on a snorkeling trip together when she vanished. phil keating is live on this story for us in miami. phil, what was unusual about this hearing they had yesterday? >> reporter: hi martha. in aruba, typically when a suspect is being held in jail, not charged with a crime, just held, every # days they get a new hearing where the evidence has to be greater, more indicative of a crime being committed for

a judge to keep them an additional eight days. in this case, yesterday, the judge gave jerry giordano 16 more days, two weeks and two days additional, before having his next hearing. that really indicates that, number one, the evidence gathered by the aruban investigators is quite substantial and most likely, they are also still awaiting evidence to be sent down from the united states, because the fbi is actively investigating and conducting interviews on behalf of the aruban investigation. late last night, though, the maryland boyfriend of robin gardner who has been on tv quite a bit, he spoke again. >> i don't have a choice to think anything else. this is a woman who i love very much, and i want in my life, so i have to believe that she's out there, and i want the world to believe she's out there, and she's going to come back. >> reporter: richard forest is a boy frerntiond he lives in maryland, robin gardner lives in maryland and yer -- jerry giordano

all live in maryland, different towns, but the fbi in maryland is actively involved in this investigation. martha: what is her family saying at this point? >> reporter: they are still holding out hope that she is, in fact, going to be found somewhere on the island of aruba, alive. keep in mind, though, the authorities do have her passport, so if robin gardner is alive and did not drown, and some other explanation is at play, she would have to be somewhere on the aruban island, late last night after it was announced that giordano would have to stay locked up for another two weeks, they were saying they're very grateful and they hope that hips -- that tips continue to come in, but they do believe maybe there's a chance she will come back alive. >> martha: thank you very much. bill: let's hope so. there are new questions over that deadly stage collapse in indiana and the way the stage was built and why the concert was not called off sooner. the video is chilling. look at that.

that is a massive stage frame and rigging, knocked over by fierce winds, maybe 60, 70 miles an hour. five are dead. forty, injured. investigators now hoping the stage itself might provide some answers as to why it came down. >> we have two investigators to assist in the investigation. i'm sure they will have to take part of that metal, do stress test and look at it, the engineers will do testing. bill: a lot of questions. state fair officials cannot confirm whether the stage was inspected. when you watch that video, too, those oomp plifiers are enormous, they weigh a lot to get them up there. imagine it coming out five stories. martha: and they would have to prove that that wind was completely unpredictable, that nothing they were given -- which they talked about, the weather was looking bad, we may have to move this inside, but it was sort of a freak wind that swept in

there, that nobody predicted. we'll see where that goes. there will be lawsuits, to be sure. let's move on to this now. he is only three days into his official campaign for president, and already some fighting words from the governor of texas, rick perry. >> printing more money to play politics at this particular time in american history is almost treason in my opinion. martha: he was talking about ben bernanke, and he basically said that that's not how we would deal with him if he were in texas. karl rove, who you just saw for a mementoo that was a tease -- karl rove on why there could be even more candidates who may enter the race. that's coming up. we'll talk to him about all of that. bill: you know they took the nation by storm during that health care debate, but is the tea party seeing a slide in support? we have two leading tea party members to talk about that this morning. martha: and it was the shot of a lifetime, bill!

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martha: you know he's only been in the race 48 hours and texas governor rick perry already making waves, for a comment that he made, he blasted the federal reserve chairman ben bernanke, for his handling of the u.s. economy, here is the comments, that has become controversial in iowa, yesterday, listen to this: >> this guy, prints more money, between now and the election, i don't know what y'all will do to him in iowa, but we we would treat him pretty ugly, down in texas. i mean, printing more money to

play politics, at this time in american history, is almost treacherous, treason, in my opinion. martha: and, if rick perry won the presidency, safe to say he wouldn't keep ben bernanke on, as federal reserve chair, joined by karl rove, deputy chief of staff to george bush and, a fox news contributor and also a t i texan. what did you think of the comment. >> look, it is his first time on the national stage. and, it was a very unfortunate comment. you don't accuse the chairman of the federal reserve of being a traitor to his country. of being guilty of treason. and, suggesting that we treat him pretty ugly in texas. you know, that is not, again a presidential statement. and, if rick perry were to be elected president he'd be saddled with ben bernanke who has a term, he's an independent chairman of the federal reserve

board, appointed by president and confirmed by congress and serves for a term and the president couldn't even ask him to resign, so, this is -- i hope this is not the first of sort of over the top statements. we ought not in -- with president obama already coming close to accusing people of being anti-american and accused me of being a '60s style radical and i don't remember -- >> that what is we thing of when we think of you. >> exactly and we ought to step back from this and i think the government, it's not smart politics and the governor will have to fight the impression he's a kwcowboy from texas and added to it, accusing somebody of being guilty of being a traitor to his country and when al gore did that to george bush in '04, it diminished gore and didn't, you know, hurt bush and, similarly, this diminished perry and ben bernanke can't say anything about that. by tradition, the federal reserve chairman has to remain mute when these things ham. but it didn't diminish him. martha: interesting, karl, give

me your take on this. we want to play it. immediately you got the comparisons, oh, well another cowboy and texan and governor from texas, george bush, and, rick perry are two peas in the pod and this question, karl camerca-- carl cameron asked about that. >> they are not all carbon copies in texas and one of the quick ways you can tell the difference is he's a yale graduate and i'm a texas a&m graduate. martha: what does that mean? >> well, again, look, perry does wanted to establish himself as being his own man but there are two ways to do that. one is to say, i'm my own man, who i am and the experiences made up my life, made me who i am and another way is to try and contrast yourself with the former president and do so in a way that is dismissive of the former president. now, why one would want to do that, when they are both from texas and why they both have a cordial relationship and why one would do that, i don't know. i mean, look, it did not matter to george bush in 1998 that he went to yale and that perry went

to a&m. bush raised, moved heaven and earth to get rick perry elected as his running mate at lieutenant governor and raised money outside of the state and made certain the phone banks only called people for both men in order to get them out to vote an 1998, george h. w. bush, president bush 41 only cut two tv ads, for candidates in the entire country. for his son, jeb bush in texas and the closing ad endorsing very strongly, rick perry for lieutenant governor. and, so, look, this... i know from the perspective of the former president, that he has a cordial, personal, strong friendship of nearly two decade with the governor. i think that that is true for the governor, too, but why he falls into the pattern of sounding like he's being dismissive of the former president is not smart politics, strategically or tactically. martha: it sounds like he feels he has been ungrateful to the bushes? >> it sound like that and, yet, you know, look, it is -- bush moved heaven and earth, and

likes rick perry and why, again, i chalk it up to, he's on the stage for the first time and is trying to find his way. look, i don't care who you are, i don't care if you have run as bush had run for governor of texas two times an perry has been governor ten years, a big state, 5% of the country in texas, 22 media markets, and start driving in beaumont and 12 hours later you have not gotten to el paso and walk onto the national stage, no hearty how big politics is in texas, it is much bigger and more different on a national stage, and the question for perry will be, whether in weeks and months ahead he'll make other misstatements like the one on, in the my opinion, on been perso ben bernanke he's guilty of treason or that there is a divide between the two men and if i were running for president i'd want to grab the former governor of texas and former president of the u.s. and make sure his people were in my camp, not causing people to say, why don't

you like him? martha: interesting, karl. i want to get to this as well. last night you were on with sean hannity and you said something that was very interesting and you said i'm starting to pick up vibrations that crist hristie a paul ryan, are saying i owe it to you to take a look at it, another look at the possible g.o.p. nomination. what did you mean by that? i'm talking to people who are talking to them or their agents. and, there is a sense that, you know, ken langone, a prominent new york republican, business guy and fund-raiser had a meeting of people to encourage chris christie to run and out of the meeting, people felt people like chris would be interested and have to look at it again and people talked to paul ryan and i get the sense from some of them, maybe it is wish of thinking they are so enthusiastic about him or christie jumping into the race what they get out of the

conversations is what they want to nor but there is enough chatter we have to give it credence and looking at the schedule of sarah palin, after labor day, i think she has a campaign style schedule, post labor day, that is either going to be accentuated of her celebrityhood or, lay the predicate for running or president. martha: you are a very influential person and you say that and talk about the candidates who claim they don't want to run people think you are not satisfied with mitt romney urich perry or michelle bachmann. >> no, what i said is we have a good field, but, obviously there are people talking to these people who are walking away, saying i think there is a chance paul ryan will run or sarah palin or chris christie will run, but as i said, last night on hannity we have a good field and, whether it will be bigger... and we have time for it to be bigger. ironically enough the more i dig into this, the deadline, the first deadline for filing to be on a ballot, next year, in the primary... martha: tell me when it is, i

have a deadline of my own. >> november 22nd. martha: very interesting, karl, good to talk to you, thank you so much for being with us today. bill: 11/22/11, the president says he has a plan to get america back to work. why won't he share the plan, mary katherine ham is on that and hospitals across the country are running out of life-saving drugs. what is behind the medical shortage? dr. marc siegel on that, in only 3 minutes. with the hotels.com 48-hour sale,

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bill: we're learning this morning, hospitals around the country are dealing with a widespread drug shortage. the american hospital association reports there are some 180 medications currently

in short supply, that shortage affecting almost all u.s. hospitals and 82% of them, say the shortage is delaying care for their patients. dr. marc siegel is a member of the fox news medical a-team and wrote the book "the inner pulse" and is on our foxnews.com opinion page, just about every day. good morning to you. >> good to see you, bill. bill: what is going on here. >> this is a crisis, when you say 82% according to the american hospital association of the hospitals in this country, are delaying treatment, we are not talking about the common cold, we are talking about chemotherapy and antibiotics and intervenes medication and saidtives and it puts people's lives in danger. the problem is multifold. one, we don't have enough raw materials and, two, these are mainly generics and the drug companies don't have a profit margin and don't produce them on demand and three, you have to sterilize the drugs, and it is an arduous process, to make them ready for primetime. and, number 4. we're in the midst of two wars now, afghanistan and iraq and

they rightly get the drugs off the top, the same drugs, blood thinners, antibiotics, and, intervenes, goes over to the war, and, they are not always used and that also creates the shortage. it is three times worse than it was in 2005. and, it is going to get a lot worse under obamacare. bill: we'll get to that in a moment and one of the first words you said was a crisis. do you believe this is' crisis? >> it is a crisis, because, the hospitals end up having to pay ten times the amount of money they would normally pay, if a patient's life is in jeopardy and sometimes i've seen patients with asthma that look like they are on the verge of needing a res parpirator and we're out of steroids and people with blood clots that need heparin and we're out of it and, antibiotics, you get on the phone and call everywhere and you have to pay top dollar. it is happening on a daily basis. bill: you were aware of it before the report came out. >> happening on a daily basis. bill: you said, obamacare,

health care reform act has something to do with this. the article points out specifically it has nothing to do with it. what are you referring to. >> they are wrong, obamacare is pushing us towards more and more generics and 75% of the drugs we use in the u.s. are already generics and generics don't give the drug companies a profit. if we extend to 30 million more people and push generics, the drug companies are not going to have the profits they need to get the expensive drugs to the hospitals, to treat life-threatening infectionses. bill: you point out womell ther is no one source to blame here, there are a number of factors. >> i could blame the drug companies, but again coming out with a new drug costs a billion dollars, and, their development is in trouble, too, it is and across-the-board problem and distributors have a problem and, the lack of supplies is a problem. bill: thanks for bringing it to our attention and we'll see whether or not it gets better or worse. thanks, marc. martha? martha: here's a question, will the tea party have the same

impact in 2012, as they did during the 2010 midterm. we have surprising new poll numbers, that we'll take a look at and, bat that back and forth with folks with a vested interest in that he group and see what they think of the numbers, and how about about this guy, the soldier returning from afghanistan, got a big welcome from his nice big dog and it is a great story, behind this. we'll be right back. are you receiving a payout from a legal settlement

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selectquote. we shop. you save. bill: a "fox news alert," right now, steven hayes is a writer for the weekly standard and a fox news contributor, and writing that paul ryan, the republican out of wisconsin, is strongly considering a run for the white houses. he's 41, on the house budget committee and has been a central part of all the debate with health care reform and the budget and the debt ceiling debate we watched over the past several months and paul ryan, apparently, according to him is in the final stages of making his decision. but has not take then possibility off the table and we'll follow that and see where that leads, a lot of people from different parts of the republican party have encouraged paul ryan, and chris christie of new jersey, saying there is room for one more on the campaign trail and now, a sharp shift in popularity for the tea party,

fox news polling number showing the movement is losing support. 3 1% of americans view the group as favorable and 51%, say unfavorable and analysts saying it is backlash from independent voters tor taking a hard line on the debt debate and what to do two leading tea party members think of that. the president and ceo of freedom works and co-author of "give us liberty", and, anna is co-chair of the kitchen table patriots and, anna, good morning to you. >> good morning, thanks for having me. bill: what do you think about this? our poll shows this and a poll at cnn, showed a similar number, "the new york times," favorable is dropping, what accounts for that, do you think, anna? >> i think the polls are skewed, and, it all depends how the question is posed to the people being polled and the movement is we are growing and a lot of democrats are coming our way and we believe in the cushion of the

u.s. and we have a small window of opportunity to turn the country around and we don't have time to pay attention to polls and pay attention to, you know, empty attacks from people like harry reid. so i think we are making a difference. >> i think for the most part you agree with what ana is saying and you have seen the headlines and polls, that have come out the past week and what do you make of that, matt? >> i would say to fellow tea partiers, welcome to leadership. because, once you take a leadership position, everybody shoots at you. they call you names an accuse you of all sorts of things you did not do and what happened is the tea party dominated the public debate but it matters who you ask and how you ask it. if you want to compare the tea party to april party we should look at where democrats stand with the public. 66% disapprove of democrats according to the "new york times" poll and 82% disapprove of congress and 47% disapprove of the president.

so, i think that when you get into the debate and talk of details, we'll take hits but the issues that matter and are popular with the american people are tea party issues. bill: you are doing better than congress, because, congress only has a 10% approval rating and you can hang your hat on that and, we watched this moment last night where the tea party leader in iowa confronted the president about how the tea party has been viewed and i want to play that and i'll get you and ana to react. roll this. >> talking about the... how is your vice president... [inaudible]

bill: i think you have watched that, and rasmussen did a survey recently and asked whether or not tea party members are economic terrorists, 55% said no, and 29% said yes. >> the democratic scream machine is having effects because it is a mantra, that you hear from every democratic spokesman, economic terrorism, extremism, but, again, they don't want to talk about the issues, they don't want to talk about 9% unemployment or talk about $14 trillion in debt. that is what the american people are concerned about, and that is what we are addressing. let's talk about issues. and stop calling names. bill: we'll get on a lot more of those issues, and we lost a little bit of our connection with ana but i think you can still hear me. ana. >> yes, i can hear you. bill: who would you support right now, in that field for the white house? >> i think the voters, this time around have a lot of choice, as far as the g.o.p. candidates go. you know, as far as my group goes, we are really looking into rick perry and michelle

bachmann, true conservatives, you know, they have walked the walk and have not just talked the talked and rick perry has really created a lot of jobs in texas and through the majority of jobs in the united states have been created by rick perry. and, that is what we need to do. that is what our president is not doing, our economy is in the tank, because of barack obama. our economy is on a rollercoaster ride right now and it is about job creation and, experience and, rick perry brings it to the table. bill: interesting, i'll continue the conversation, and we'll do it next time when we can see you, okay? >> okay, sounds good. bill: you are a good sport. talk to you guys later. martha: we have more on the breaking news we just brought you moments ago. is the g.o.p. field done? paul ryan, this is just crossing moments ago, now reportedly in the final stages of deciding whether or not he will shake up the race for the g.o.p. nomination, more on that, right after this break. bill: also, a three inch puck, but the hole is only three-and-a-half inches wide, an aspiring hockey player, and made

a $50,000 shot of a lifetime and why being honest means they may not get dime, at least he won't. >> everybody, when i came out, everybody crowd meade and gave me the high-five.

>> ♪ >> sneet. >> ♪ >> ♪ >> ♪ >> bill: 40 years ago today, elvis presley was found dead in his home in memphis and that brought a sudden end to the rock king's 21 year run, thousands are mark o'clock the day, holding a candlelight vigil as they do about every year at this time. we remember the king on this day, nearly every day. martha: all right.

we remember elvis. we move on to this story that is looking towards the future, and we're getting some reports now that the house budget committee chairman, paul ryan, who has been a real rising star in the gop of late, turns out that behind closes doors he's in the final decision stages of whether or not he will run for president of the united states. mare credit catherine hamm is writer of the daily column, a forecasts news contributor, mary catherine, just when we sort of thought the gop field was starting to meld, starting to take shape, perry, bachmann, ron paul, getting a lot of attention in there, what do you think? >> stephen hayes is reporting this from the weekly standard and they know representative paul ryan very well, well connected to him, so i definitely put stock in this report. i think it's really interesting. i think a lot of tea partiers and people in general, conservative republicans, have gained a lot of respect for paul ryan, watching him argue on

several occasions with the president, very well, making his point he's the guy out there with a plan, written down, unlike the president in many cases, and they admire that about him. so i think he certainly could have an impact, iowa, of course, in the midwest, which he's a midwest guy, so that would help him out. i would be a little surprised if he actually ended up getting in as a presidential candidate, but i would be excited to have his plan out there and being talked about. martha: yeah, it's very interesting to hear these rumblings and he has been very articulate in making his very specific arguments, and much has been said about the fact that he's really one of the very few individuals who have come forward with a plan. it got shot down in a lot of ways and he took heat for it but he came forth with very specific ways to get our arms around this financial crisis that we're in the middle of, and i just spoke with karl rove a while ago and he went on hannity last night and sort of dropped this kind of very provocative statement, that he's hearing rumblingings

from people who have been talking to chris christie and to paul ryan, that both gentlemen you know are sort of open to at least revisiting the thought of perhaps running. >> right. well, as you mentioned with paul ryan, that's the double edged sword to actually having a plan is that it can get shot down so i think that will be in some respects a liability for him in the general election, explaining that well and being attacked by democrats for it. as far as chris christie and paul ryan go, in general, i've said with sarah palin, there is time to get in the race. if you're somebody who has electricity behind you, who people support, you have a gut connection to people, and i think all three of those people do, they could jump into iowa later than other people can, but we are sort of ticking down now, so it makes sense that paul ryan if he's making this decision does it now. martha: i remember saia palin saying a month or so ago, at some point you have to make your decision and she hinted at that point that i believe the end of the summer is the period

where she felt she had to make a decision a decision and karl rove said the deadline is november 22nd. i wonder when you look at these things through this prism of 2011 and the internet and how fast everything those these days, you've got candidates dropping out, how quickly can that money kind of aggregate behind a new person, and you kind of pop on to some of the organization and the money later in the game? >> yeah, if you have a natural constituency, it's easier for you. i think still in places like iowa and new hampshire, you have be on the ground and meeting people and doing the retail politics. you have to leave time for that or they will i think disregard you. so that's the danger. you have to allow for building an organization and doing some of that. but man, i got to tell you this gop race is messing with the media, every time we get it decided this is a front running group, they're going to change it on us. it speaks to the volatility and to the openness of this race. martha: indeed. >> we'll see. i would put my bets on io i'm not sure of any of the three of them getting in but we'll see, it will be interesting to cover.

martha: it sure will. that's what makes us fun, brings us to work and keeps you guys writing as well, and our thanks to stephen hayes who just reported that from the weekly standard. we'll see what paul ryan decides. thank you very much. >> thank you very much. bill: jenna lee, of "happening now", what are you working on today? >> guess who's joining us? stephen hayes is joining us in 20 minutes to talk about his report on paul ryan potentially entering the race, you'll hear it directly from him. also the millionaires who want to raise taxes on themselves, why do they want to do that? >> and the devil wears prada, or does it? does it pay to be mean at work? >> a new study that's raising eyebrows. here's a hint, bill. it may pay for you to be mean, it's not going to pay for martha to be mean, just so you know. bill: i see the gender difference! >> martha: you do? that's so funny. we're so glad. bill: a heart-felt home coming, a soldier and his dog, reunited after nine months apart.

it is can't-miss video! watch this: >>

>> foints creativity but not much else no, ord -- ordinary dwi arrest, a man on a pork lift, leading police on a chase in texas, cops say he was chugging beers and making obscene gestures as he drove down that road at 3 miles an hour, the man telling police he had just purchased the forklift and was simply driving home with his dog after picking up a 6-pack. just another afternoon, i guess. police say the lift was likely stolen. shocker. the suspect now faces a list of charges. you don't get far that way,

do you? >> martha: we'll find out what happened there. here's the story we've been talking about all morning, a $50,000 snapshot and the switcher -- the $50,000 shot and watch this, from the center of the ice, at the charity hocker game, in she goes, 3-inch puck, the crowd goes bonier as the impossible dream comes true for this little boy. there she goes. so nate, it turns out -- here's the rub, folks -- he's a win, okay? he was pretending to be -- he wasn't really pretending to be, huh his brother nick was the one with the ravel ticket to take the shot, it was purchased in nick's name but he was outside when his name was called, apparently, and he had just gotten a cast off his arm so nate laced up his skates and went out in his place but the dad fessed up the next day and

said i want everyone to know it was actual actually my other son, the twin who did this but now the 50,000 bucks, it's on ice. listen. >> we went along with it that it was nick, and then the next day, i called back and i said it was really nate that made the shot. we thought honesty was the best policy and we wanted to set a good example for our kids. martha: way to go, dad. that's what he decided to do. so we need to bring in two attorneys to hash this out, tamra holder, former prosecutor tom kinitz, welcome to you both. it's not really a legal decision yet but it's an ethical decision. what do you think, tamra? >> i think it is an ethical decision, but the father made the right choice, he did not sign the papers saying that the one son who had the ticket in his name that made the goal, instead, he fessed up before any papering were signed. look, it was a little ravel ticket, those little red

ravel tickets you get and the only reason why he put each kid's name on it, they had to identify somebody when they called the number out. it wasn't like he intentionally wanted to defraud anybody. martha: what do you think, tom? >> a little more to it than that. here's what people don't realize when you see the hole in one contests at a golf ball or nhl hockey gale and there's an insurance policy involved. a lot of people have the impression that the team is paying for the prize or the golf course but what they do is buy an insurance policy and sea in the unlikely event someone hits these miraculous shots like we saw young nate do, you're not going to shell out the $50,000 out of pocket, you pay for the policy and they pay for it. so when they purchase that ticket or better yet when they go to fill out those claim forms, if they're misrepresenting certain facts then it's actually insurance fraud and that's a serious offense under minnesota law. >> but the insurance company is in the uncomfortable of having to say to this

family, to this little boy nate who made this beautiful shot and his father came forward and said you know what, i want to make sure we're clear on this -- i'd love to know exactly why -- why this other little boy wasn't in the room or he just got a cast off or maybe dad decided that nate had a better shot at it, who knows, but you know, they did come clean. it's going to make the insurance company look like a big grinch this this story. >> i think they should do the right thing and say here kids, we'll put it into a trust or something. keep in mind this insurance policy was only between the charity and insurance company, it was not like the family was a party to the policy. and they didn't sign any paper, they just bought this ticket and took the shot and one. >> but tamra, you have to also understand that when the insurance companies write these premiums for these events they're taking into consideration that in any big crowd, you get 15, 20,000 people at an nhl gairnlg you're going to have a very small percentage of the people in the crowd that can shoot like nate, you're going to have a very large

percentage of people who have never picked up a hock ey stick or too many stadium beers. >> and you know this because you're a former hockey player yourself! >> what happens is you get the one guy up there, you get the two beautiful girls like tamra in short skirts and high heels with the stick, they're shooting it towards the players' bench and maybe one guy that can actually put the puck in the net. if you go out and switch these tickets you're going to raise the prices. martha: and in a very sort of factual way, it doesn't matter that they're twins. it's irrelevant that they're twins. it could have been a totally different person. >> tamra could have bought the ticket and given it to a guy like me who's going to put it right in the red line. >> the father who is actually the guardian, he bought the ticket, these are his kids, he should get the money. martha: i think the insurance company should give them the money and the kids should put the money in their college fund.

that's our idea. we called the promotion company and haven't heard back from them. we're waiting for their comment. bill: bad publicity not to give out that money. i'm telling you. a desperate search for a one month old baby, police believe brooke embry's father kidnapped her after losing custody. are police any brother to getting brooke this morning?

bill: the video the world awaited. massive great dane named thunder paw, excited to see the owner for the first time in nine months, trevor crowder coming home from afghanistan. this went on for 30 minutes! >> martha: i love it. thank you, and thank you for your service, trevor. what a great moment. feel good all day on that one! see you tomorrow, guys. bill: see you tomorrow. jenna: by everybody, we start with a fox business alert for you now, the credit rating agency just giving the u.s. economy a vote of confidence