a brand new hit show called "tanked" a new series on animal planet. they make these exquisite, unusual tanks full of fish. my husband has always wanted a tank. >> has he really? >> i have said i don't want to take care of the fish but maybe i'll change my mind after talking to these guys. >> is that a shark? >> yep. >> what we did instead of cleaning the tank, we bought catfish because catfish like clean the tank. and that was it. and we kept the fish until they floated up to the top and then we scooped them out. >> ok. >> we do dogs. >> you do dogs? all right. we'll find out about this, another reality show "tanked" and the creators are here, stars are here. it will be exciting in about 45 minutes. first the headlines and the latest of what's happening between rick perry the governor of texas and the president of the united states. >> all right. police say he was planning an attack worse than columbine. a 17-year-old expelled student under arrest charged with

planning to blow up the school in tampa on the first day of class. police went to his house after getting a tip. they found a written manifesto targeting more than 30 students and administrators along with ingredients to make bombs. >> he doesn't know how to vent. i told him, i said, dude, go in your room and scream in your pillow. >> he has a long rap sheet including arrests for burglary, carrying a concealed weapon and drug possession. casey anthony doing everything she can to stay in hiding and out of the state of florida. defense team trying to appeal a ruling to force her back to orlando to serve probation on check fraud charges. a anthony's lawyers requesting that the judge be taken off her case, the same judge that handled her murder trial. taking a look now of live picture of hope benedict about to arrive in madrid to celebrate world youth day. millions of people are there that will end with a mass on

sunday. a student volunteer accused of planning a gas attack against protesters. not known if he could carry out that attack. here's something you got to see. a 16-ton truck hanging by a thread out of a third story window of a building with the driver inside. it happened in queens, new york, the mechanic was reportedly working on the truck when he lost control and crashed through the wall. >> i heard a smash in the car like an action scene from a movie. it was unreal. >> the driver was stuck in the teetering truck for 45 minutes before firefighters could get him out. he was shaken but not hurt. >> evidently, screaming for his life because it was actually in the balance. how do you not slow down on those turns in those garages is beyond me. i've seen people take that at like 60 miles an hour. hopefully that's a lesson. >> i have a bone to pick with you, eric, filling in for steve. you told me to wear red today. he said -- i said i'm going to wear red tomorrow because his tie matched hi dress yesterday.

>> ok, let's match tomorrow, then. >> feeling the gray. >> it still matches. it still works. all right. >> i'm trying to match with kilmeade though. >> i'm a little jealous. i'm a little hurt. best thing for me to do is do the show like i'm not bothered by it. meanwhile, president obama is wrapping up the three day bus tour through the midwest. now he's headed for a little rest and relaxation on martha's vineyard. >> but will he actually get any rest at all? joining us now from washington, d.c., doug lazader. what's the latest, doug? >> good morning, guys. for president obama, these next 10 days or so may be relaxing but his critics have no intention of letting up and saying this is not the best time for the president to be taking a vacation and there certainly are some political risks here. martha's vineyard has been bracing for this trip for weeks if not months. the president has certainly been here before. he's seen there riding a bike. he'll once again enjoy the relative isolation there, the opportunities for family time

and, of course, golf. this time around, given the economy, circumstances are much different. he was asked by cbs news whether this is the best time to be taking 10 days off. >> should you be going on vacation? >> well, no, because i think that, you know, if all we're doing is the same posturing that we saw before the debt limit vote, that's not going to encourage anybody. that's going to discourage people. >> and the president has just wrapped up his extended bus tour of three states that he will absolutely need to win in 2012. not technically a campaign trip but an opportunity to show them that he's working on and talking about the economy. he promises to have a new jobs plan to go after vacation. spending so long away from washington has opened him up to critic on the campaign trail. >> too little too late but we appreciate the fact that he's trying to twoet some time to it. not just going to be on the bus tour, not just going to be vacationing in martha's

vineyard. >> the white house has made a point of the fact that the president will be meeting with economic advisors today at the white house before he heads out on vacation. >> all right, doug live for us in d.c. thanks so much. >> i just never heard that explanation for taking a vacation before. he's like, look, all they're doing is posturing. i might as well go away for 10 days. if friday is going to be like monday, why come in on monday. >> if i'm going to posture, i'm going to posture in the vineyard. >> hopefully putting the final touches on these two plans. >> there's a five minute meeting before he goes. >> all right. let's look at it in a positive way that maybe he's going to use this vacation time to come up with these plans that the country has been waiting for. in the meantime, it appears that he has elevated governor rick perry's status in this presidential run on the other side of the fence, on the republican side because the president, of course, responded to governor perry's comments about the fed the other day. and the president said that he should watch and he's very nice about it and he said rick perry should watch what he says and

then governor perry responded back again yesterday. watch this. >> the president said i needed to watch what i say. i just want to respond back, if i may, mr. president, actions speak louder than words. my actions as governor are helping create jobs in this country. the president's actions are killing jobs in this country. >> couple of things. number one, the president was very nice. he said when he was asked about these comments, he said i'm going to cut him some slack. when i run for president, you have to watch your words. very noteworthy that governor perry hasn't backed off twice. he hasn't backed off his comments about bernanke saying printing money is borderline treasonness and going right at the president who said to him you have to watch yourself. he said i don't plan to. noteworthy, he made the comment to new hampshire and took on global warming and the validity and 42% of new hampshire are

nots don't know who he is. maybe if he keeps making the statements like this and taking on the president, that will change. >> and no surprise that governor perry came back and said this is my response to your response. that really plays into governor perry's campaign here. if i have the president's attention, front and center, four or five days into my race, boy, pretty darn good. pretty cool for him. >> you know how usually celebrities put themselves into politics and sometimes we say not again but, you know, when they make predictions it's worth noting. let's talk about kiss front man gene simmons. he's been on this show before and he said he's made the correct call for president the last at least four times. he now says it's a done deal. rick perry will be president in 2012. here are the tweets that he posted in this last few days. i voted for president bush. i voted for president clinton. i voted for president obama. the next president will be governor rick perry. >> governor perry worked for al gore and then switched republican. he'll be our next president.

i've never been wrong. >> have we fact checked gene simmons? >> no, we have no background on gene simmons. >> other question is who is mini kiss going to vote for? >> that's true. >> that's pretty funny. the other thing that he claims that he was accurate about was that he predicted that the tea party would, you know, provoke this major change in the way we look at politics before the 2010 elections. >> it is? >> yeah, that's what he called it. >> one of the things about gene simmons, he's extremely confident in himself and extremely bright. he researches his stuff. he loves the news. he might be watching now with make-up. let's talk about the president and we know that the president after labor day will be making a major speech to get our economy back on track and people back working again when one of every six males doesn't have a job, it's time for an emergency plan. the president plans on putting some specifics in that plan and his staff is leaking it out. they're going to raise taxes on the rich. they are going to cut billions of dollars and they're going to extend unemployment insurance as well as extend the payroll tax

cut. >> what's new about that? i mean, coming up later in the show, let me just finish this one thought. coming up later in the show, we'll talk to an economist about -- let's say all those things pass congress. will it even help the economy? we've been hearing about this same type of stuff. i really think he has to come up with something different in his speech. they are leaking a couple of differences. go ahead. >> they're not calling it taxes but calling it raising revenues like we don't know what that really means. the point is out of one side of his mouth, the president says we need to extend this payroll tax holiday because it creates jobs and then on the other side, he says but we really need to raise the taxes on the rich. he's basically saying, look, he's trying to set up a little class warfare thing going on, the wealthy -- the middle class against the wealthy and let's go right at the wealthy. we've been having the payroll tax cut for all of 2011 and people might argue it hasn't helped to create jobs. we've extended unemployment for however many months. some people would argue that's

actually the wrong thing to do because it's harder for people to get back into jobs if they've been out of them for so long. >> knowing you'll have two hours off after you're getting fired doesn't get you up the next day fired up for a new job. >> something new he talked about yesterday, tax cuts for companies that actually hire workers and he's going to advocate another stimulus plan for construction and roads and get this, the latest gallup poll shows that the lowest ever, only 26% of americans approve of the job that he's doing right now in the economy. >> 10 minutes after the top of the hour, the s&p is being investigated. this according to "the new york times." the justice department has been investigating before our downgrade. how the s&p does their job, where they were in 2008. why all of a sudden, we're not a triple a country anymore, too many secrets, too many questions. they're looking into it. now, do you think, eric, this has anything to do with our downgrade. is this a payback in an investigation because they did this to our country? >> can may be. gretchen and i sat here and talked to the head of the s&p

the monday prior, two mondays ago, john chambers, he sat here and we were asking what's going on here? why would you downgrade the u.s.? i agree with the investigation of the s&p. what happened in 2007, how did you miss that financial fallout? basically what happened was they rated triple a which america used to be triple a. now we're double a plus. we were rating some of those mortgages at triple a and they absolutely fell apart. they missed that. some would say that was the cause of financial collapse. so yeah, go ahead and investigate that. maybe it's a little late but we'll step up our investigation in the wake of the u.s. downgrade. i'm not sure. they definitely need to be investigated either way. >> shot across the bow moody's saying if you're going to downgrade us, we're going after you, too. >> we never should have been downgraded. who cares? we never should have been downgraded. >> we'll find out why. >> all right. fantastic. but they made a mistake. s&p dropped the ball on that one. >> ok, that's eric's opinion.

the nation struggling with unemployment at 9.1%. the governor of the state of oklahoma up next. >> should men over the age of 50 like david hasselhoff. oh, boy. be allowed to wear a speedo? oh, my goodness, a guy is suing over it. >> another battle. >> could a woman weigh in on that? >> yes, in the break. [ female announcer ] so you think your kids are getting enough vegetables? maybe not. v8 v-fusion juice gives them a full serving of vegetables plus a full serving of fruit. but it just tastes like fruit. [ male announcer ] get five dollars in money-saving coupons at v8juice.com. and, just like toddlers, ppies need food made for them.

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but actually, it's never been easier to get the whole grain you want from your favorite big g cereals. from cheerios to lucky charms, there's whole grain in every box. make sure to look for the white check. is non-stop to seattle? just carry new preparation h totables. discreet, little tubes packed with big relief. from the brand doctors recommend most by name. new preparation h totables. the anywhere preparation h. >> all right, the united states is stuck in a struggling economy. you know that. with many americans looking for jobs, the federal government could use some help turning the economy around. why not turn to oklahoma? the sooner state is seeing an

economic boom and oklahoma's unemployment rate is get this, 5.3%. almost four points below the national average. here with the keys to her success, the governor of that state, mary fallon. welcome. >> good to be with you. >> you're going to be excited today. in a little while, you'll ring the bell on the stock exchange. >> i do. i get a very special privilege. it will be exciting. >> how do you explain your low unemployment in oklahoma and the way you seem to be immune from our recession? >> well, we've been focusing on something i think every american wants us to focus in the nation, it's jobs. how do you create the very best business climate where someone can invest money, get a good rate of return, hire people and have a level, fair playing field and not to have worry about ups and downs and rules and regulations and that's what we've been trying to do. >> one thing you do, i understand, like rick perry is you'll go to other states and tell companies you have to come to oklahoma, it's a better deal, better life and rless regulatio.

>> that's true. we focused this legislation on pro business reform. we passed major lawsuit reform and passed major workers compensation insurance reform which is a big cost driver for businesses. we passed six major education reform bills to make sure we build a quality, skilled educated work force. we've reformed our pension system to make sure that our safe economy is sound and stable. >> people at home will be saying i read that "new york times" story about the governor of texas and they said he's lucky because military became a big thing at military bases, oil became very expensive. they have big oil. they might look at oklahoma and say you guys are lucky. what do you say to that? >> we've had our down times, too, just as the national economy took a downturn in 2008, oklahoma had a billion dollar short fall in 2008. 2009 we had a $500 million short fall. we're not lucky. we're just initiating good policy. what we've done is focus on making government smaller, for cost efficient and looked at eliminating waste and consolidated some state agencies and focused on the pro business atmosphere, educating our work

force and make sure we have a quality educated work force and we've targeted specific industries and then we've gone to tell the story. like you said, to other states. >> you've been in washington as a congresswoman and now you're governor of the state. do you think governor perry is somebody you're going to get behind, a neighboring state and a governor you know quite well. >> i do admire governor perry. he's done a great job and created 40% of the new jobs in america. we've always watched what he's done on workers compensation reform, on tort reform, on many of his different business structures in his state and certainly has a very attractive economy and certainly a great leader. he's a man that speaks what he thinks. he doesn't mind kicking up his boots and getting after it. so i have great admiration for him. >> admiration and not an endorsement yet. >> not yet. we have a lot of great candidates out there. i served with congresswoman michelle bachmann. certainly like governor romney is a great candidate but we have a lot of great candidates in the

presidential race. >> people should be calling up and asking you how you did it. good luck on the stock exchange later on today. ring the bell loud. >> yes, we will. >> call it the food stamp stimulus, the administration thinks welfare programs feed the economy. that debate is next. >> big health news, ground breaking new drug that stops one of the deadliest forms of cancer and it's about to hit the market. we've got the details.

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>> some quick headlines. the f.d.a. has approved a new

drug which targets and shrinks certain tumors that can't be removed with surgery. the drug will be available in about two weeks at a price of almost $10,000 per month. and it looks liked bad hair bandit caught a bad break. detectives arrested cynthia van holland in california who is believed to be responsible for up to 20 bank robberies in four different states. latest heist was a northern california bank last week. she became famous for the wigs she donned during holdups and that's control room mini news. you got to love it down here, gretchen. >> yeah, i like it up here in the studio, too. thanks, eric. the nation's rough economy has more and more americans living off food stamps these days and those food stamps are stimulating the economy. in recent interview, agriculture secretary tom vilsack said of the snap program "you have to recognize that it's also an economic stimulus. if people are able to buy a little more at the grocery store, someone has to stock it,

package it, shelve it, process it, ship it. all of those are jobs. it's the most direct stimulus you can give in the economy during these tough times." so is that actually true? are food stamps a stimulus? joining me now, senior fellow for project 21 and fox news contributor and economy and radio talk show host mark levine for an interesting debate. good morning to both of you. mark, i'll give you the first crack at this. really? >> yeah, it's actually food stamps are some of the best economic multipliers. all you have to do is look at a paper by the chief economist for moody's and talks about the fact if you spend a dollar in the grocery store, it actually turns out to be about $1.73 in economic stimulus because groceries need to hire more people, packers and shipers need to hire more people and they go out and spend money on their kids, you know, for christmas and it multiplies and it grows. one of the worst economic stimuluses was the bush tax cut. less than 30% went to the economy. you give money to warren buffet and he keeps it, he doesn't

spend it. >> there are more people -- there are more people on food stamps than there are people in california. this program is ridiculous. let me tell you something. for people in the obama administration to be coming out saying that it's better for people to be on welfare, to be on food stamps. that's utter nonsense and i find it to be very irresponsible. and let's look at the cost aspect of this. what does it cost to have food stamps for these individuals? this is tax dollars coming from hard working americans. it's funnelded through a bureaucratic, inefficient government and it doesn't grow the economy. what you're saying is utter nonsense. >> let me ask you this, does it trouble you that the other side of the equation has been growing and growing and growing. in other words, more and more people are on food stamps and who's paying for that? >> think of america without food stamps. 1 in 7 americans are on food stamps. 50% of them are children. now, let's say we've got 45

million starving people in the united states, people who don't have food. most of them working by the way. they're working but they're working in very low wage jobs and they can't afford food. we have starving people in the streets. that causes health care to go up. it's not just a question of morals and ethics, you know. >> the government is inefficient and the government cannot handle this problem. we need more people working and the obama policies and economics has failed, the stimulus did not work. unemployment is through the roof. unemployment in the black community is over 60%. >> i don't get it. >> among teens, it's over 40%. >> how does -- >> we don't want people to starve. that's ridiculous. to say that it's better for more people to be on unemployment is a joke and i find that very irresponsible. >> people already don't have work. let's let them eat. >> i got to leave it there but a very interesting debate. have a great day, thanks so much. >> thank you. >> here's a question for you. should men over the age of 50 like david hasselhoff be allowed to wear a speedo? up next, meet a guy who says no way, it should be a crime. and he's going to sue over it.

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>> big news for car enthusiasts. ford engineers, ford engineers are working on a technology to enable your car to communicate with other cars around it. yeah, the new technology is being called a horn. >> here on the east coast, they know all about how to use that thing. >> a little bit. definitely in new york city. all right, 29 minutes before the top of the hour. in a moment, we'll find out how to tank. >> we'll be meeting with the guys that have a brand new reality show, but speaking of water, new york lifeguard drew a line in the sand over speedos and then found himself out of a job. he says he was forced out for refusing to wear the revealing gear.

now, he's suing the state claiming age discrimination. >> roy lester is the lifeguard behind the lawsuit and joins us right now by phone. a lifeguard at jones beach. roy, it's hard for me to see the other side. you're in unbelievable shape and don't want to wear a speedo but you want to save lives. why are they cracking down on people like you? >> because we're old! >> what do you mean by old? >> well, i'm 61. when this happened, i was 58. they don't like older lifeguards. >> we're looking at pictures of you there and you're in kind of these bicycle shorts. are you saying that they want you to wear a short speedo and you don't think you should have to wear one? is that what you're saying? >> basically. in order to requalify or even qualify to be a lifeguard, you've always been able to wear any swimsuit you want. and if you look at any of the lifeguards in the world, there's no qualification as to what you

wear when you're taking the test. and what happened was there's always been an unundertone of time to get rid of the older guys. you know, we have been in a documentary where the state is going -- the state's representative is basically saying, hey, lifeguarding is a young persons job. you know, young back in the, you know, 1950's, is a different young than it is nowadays. so what they tried to do is they've always tried to eliminate the older guys one way or another. and a few years ago, they decided on this new regulation. you're not allowed to wear these jammers that we've been wearing for years. if you look at most swim trunks, high school swim teams, lifeguard contests, stuff like that, everybody is wearing these things. >> right. in fact, the olympics even, they changed the gear that you can -- the actual outfits that you can wear. >> because they were going too fast. >> ok. i want to be straight on this, roy, they want you to put on the

little tiny kind of a speedo thing to do your test. >> yes. >> and are you telling me that every person who auditions to be a lifeguard puts on that little tiny speedo thing? >> no, you can wear, if you want to, you can wear surfing shorts, stuff like that. but the guys who, you know what? surfing shorts, dungarees, cutoffs, all those sort of things are slower. you want to wear something tight. >> roy, just for the test, right? i mean, not on your typical work day. you can wear what these jammers or whatever you call them. au am i missing this? just for the test. >> no, you can't wear them at work either which makes no sense, you know, on one hand the state is saying oh, they're so fast. they're no faster than anything else. >> you say this is not about the speedo. it's about ageism. they're cutting down on roy lester and others because you're older than 35 years old. >> well, if you remember, you might not be old enough to remember, back in 1971, they got

rid of new york state tried to get rid of every lifeguard over 35 and the lifeguards went out on strike. it was a really bitter strike and it lasted most of the summer and after six people had drowned, the state finally relented. >> gotcha. keep us up to date on the case and we want to ask our viewers to weigh in on this. what do you think about that? e-mail us or tweet us. >> you're welcome. bye-bye. >> now to some of the other stories making headlines this morning, a nigerian man known as the underwear bomber or as brian calls them the crotch bomber has been ruled competent to act as his own lawyer in his trial. he's accused of trying to blow up a plane on christmas day 2009. >> does mental illness run in jared loughner's family? they are looking as far back as his grandparents or great grandparents to prove he's unstable. he's accused of killing six people in the tucson massacre in

january as well as shooting congresswoman gabrielle giffords in the head. he's been declared mentally incompetent to stand trial. he has a hearing to see if he's improved enough for a trial. >> this one is scary, guys. david letterman targeted by a jihadist threats, the late show host, to cut his tongue and break his neck posted on a radical web site used by al-qaida, the reason, letterman joked about the death of usama bin laden's lieutenants. letterman's show is on summer hiatus and the f.b.i. says it's taking the threat very seriously. >> you talk about a threat. look what's happening in college football. a major bombshell in the ncaa as yet another school is under investigation for major violations, one of the most infamous in college football, the university of miami in the cross hairs. the ncaa probing a jailed ponzi schemer's relationship with former and current players. it's alleged he treated them to nightclub outings, sex parties and cars and paid for an abortion. it's so damaging the ncaa could give miami the so-called death

penalty which would shut down football especially that storied program for at least a year. the hurricanes' first game is september 5th against maryland. remember when smu got the death penalty, they still haven't recovered. basketball. shaquille o'neill has a great reputation for saying outrageous things like calling him the big aristotle. he blames president obama for boston celtics rondo missing his jump shot. he was at a fundraiser when he said the president needs to teach rondo how to shoot. he was embarrassed and had a horrible game the next day. we will continue to probe. gretch? >> hey, i'm ready to get tanked. maybe not. but get ready to take the plunge. a new show on animal planet takes you behind the wet and wild business of fish tank and aquarium building. watch this. >> oh, my god! >> i'm down here. you got the pole.

>> oh, my god! the shark stick is not working. >> we told her we had these special stark sticks and they were really just mop handles. i'm taking this pole which is really like a toothpick as the sharks are looking at me like i'm nuts. >> the show "tanked" has the world's most successful tank manufacturer in the united states, that's where it takes place. the two ceo's of that company and the stars of the new series, welcome, guys. >> how's it going? >> bringing drama to the world of fish. >> yeah, we are. trying to do that and then we build our crazy aquariums and provide people with unbelievable, you know, tanks across the world and fish as well. >> so you build these for celebrities like jorge posada. we talked about kobe bryant, barry white, penn and teller, usher, what do they want in their tanks? >> a lot of the celebrities and stars want, you know, just colorful fish. they want things to be unique. i mean, we did chad johnson's

aquarium and he wanted a plasma screen built in his aquarium and he has one over his bed and sleeps over his bed. when he looks up, it's over his bed. >> let's go over some basics. this is a typical tank. you put this together. what do we got in the corner? >> we have a horn shark right there. it comes from the waters of california. pretty common aquarium shark. also along with the great smooth hound. >> here's the shark over here. >> the great smooth hound and these are very common, you know, aquarium sharks that people like to have in their tanks. >> to look at, right? >> right, just to look at. >> what's over here? >> a lion fish. they're actually poisonous. >> ok. >> i'm moving away from that one right away. you did a "fox & friends" tank. what do we get? >> as far as fish wise? >> yeah. >> you have a lion and a puffer fish. puffers are very popular with the public because they have personality. they'll come up to the tank and follow your finger around. they're real cool. you have some yellow tangs and a couple of squirrel fish and a clown grouper.

>> what can we expect in this show? we saw that your wife, you actually put her in that tank with sharks. >> my wife. >> how did that go over later on? >> she wasn't happy. >> but it's good for the show which is good for the family. >> she took one for the team. >> you got it. now, you grew up with a passion for it in coney island and you started seeing and liking what you saw there. whose goal was it to build a tank big enough that you could scuba dive in a separate room. that's your goal, to build a tank so big you can get in a wet suit and plunge. >> we do it all day at work. >> whose dream tank was to build one for victoria's secret? >> that was mine. >> what do you envision in that tank? >> oh, man. >> maybe one of the angels, you know, but i wanted to do that because, you know, victoria's secret is so out there. everybody knows the name and kind of give them something unique. >> check out the new show, it's on the animal planet this friday night, 9:00 p.m. "tanked" thanks so much.

good luck with the show. >> thanks so much. >> coming up straight ahead, a fox news alert. a global selloff overnight. pointing it a whopping selloff. dare i say on wall street this morning. stuart varney on deck with the breaking details. >> then forget the f.b.i.'s most wanted list. pa paula deen is being called public enemy number one. who says she's killing the country, y'all? >> i said sugar! [ male announcer ] imagine all of your missed opportunities

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wow, that's dinner and a movie. [ dramatic soundtrack plays ] this picture stars you and savings. t mostly savings. out there with a better way. now, that's progressive. >> all right. some trouble with overseas markets that are causing fears here in the u.s. signalling a huge drop in the dow. stuart varney is here with the latest.

stuart, what's going on? we're looking at a substantial move down in the dow. >> yes, you're going to look at about 180, 200 point loss for the dow industrials when the dow opens up at 9:30 eastern this morning. that's a very significant drop. now, here's the problem. there's more trouble in europe and there are fears that it washes over on to these shores in the form of trouble for american banks. in other words, trouble at the heart of america's financial system all over again. that's a big negative. sell soft. gold, by the way, 1803 right now. >> let me talk about that for a second. the trouble with europe is remember, they were going to come together and do some sort of super committee in europe like what we were doing here. it's not working? >> no, it's not working. essentially, the germans are refusing to bail out the -- >> there it is, stuart. that's what it's all about. >> the rest of them don't play. >> they got the money. these debts for the rest of europe run into the literally trillions of euros, the germans don't want to be on the hook for that so everybody is worried

about what goes -- >> we'll keep our eye on the dow and update you throughout the morning. in the meantime, mr. obama has been very clear. he says it's millionaires and the billionaires that we need to tax and we need to look at to raise revenue. what's going on with the millionaires in america? >> "the wall street journal" has been crunching some numbers and they've found that the number of people earning a million dollars a year or more was drastically cut between 2007 and 2009. the numbers -- you can see it on the screen, dropped by 39%. now, that's exactly opposite of what we all thought. we thought the rich were getting richer and they were taking the lion's share of all the money. not so. the number of millionaires, of people making the million dollars a year, down very, very sharply. think about this. you've got the president who says we're going to tax them. we're going to tax them some more and at the same time, he's saying they're fat cats. at the same time, he's saying these wealthy corporations, they've got to pay more tax. they've got to submit to more

regulation. you add it all up and that is not a healthy business climate. >> sure. >> that the president is creating and that is part of the reason why this dow is going to drop out of bed this morning. >> another reason, can we talk about the politicians talking about rich paying their fair share? >> can afford to give back a little bit more. >> billionaires and millionaires. >> super rich and big oil and big corporations. >> the republicans call them the job creators, the millionaires and billionaires. >> the rich are not paying their fair share. >> asking the wealthiest americans to pay their fair share. >> the wealthy don't pay their fair share. >> millionaires and billionaires contribute their fair share. >> there is some folks, millionaires who haven't been paying their fair share. no pain no gain. >> stuart, i think i saw a few millionaires and billionaires in that little montage. >> what is the fair share, may i ask? more than 50% of your income? is that fair? when half the population pays

absolutely nothing? what's fair? and what's this about they're not paying enough? already, the top 1% pays 39% of all the income that comes in in tax returns. and now you want to post -- you want to tax them some more? what do you think that does to the business climate in america? how are we going to create jobs? if you're taxing the very successful people in america. >> those are the job creators. there will be a few millionaires and billionaires the next 10 days that mr. obama spends on the martha's vineyard. >> don't get me started. >> 9:20 on the business network. >> watch that opening bell this morning. >> all right. keep our eye on it. three people dead, killed by a parasite in the water and our own dr. manny says we'll see many more cases like this. what you need to know next. and here we go again, a woman just wants to honor our troops with the american flag but she's been told take that flag down because it's unfair to other businesses. coming up. almost tastes like one of jack's als.

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>> 52 minutes after the top of the hour. a couple of quick headlines for you now. another drug tunnel found on the mexican border. homeland security agents pulled over a truck in arizona. inside, 2500 pounds of pot. the three suspects then fessed up about this 90 foot tunnel that crosses the border. how many others are out there? and paula deen, public enemy number one? according to a fellow chef, she is. bordain says the food network posted the worst and most dangerous person in america because of her fat filled recipes. she seems kind of nice to us.

>> we can't wait for her retort. every case, fatal and there have been three deaths in just the past few weeks. we're talking about a rare amoeba found in warm, stagnant water and swims up through the nose and creates inflammation in the brain. >> what do you need to know? joining us now, senior managing editor of fox news health.com, dr. manny alvarez. tell us about it, doc. found in freshwater? >> listen, on average for the last five or six years as the temperatures down south have increased and the water levels have decreased, we're seeing more and more cases of these amoebas in freshwater and typically this is an amoeba just as we said that when you are in these types of lakes or streams that are not moving that much, that are very, very hot, these amoebas can go up your nose and get -- create a meningitis, if you will, you know, of the brain which is really uncurable and,

you know, we're warning people, especially in the summer. you're going to texas and the water levels are down to nothing and the temperatures are 105 degrees to be very careful if you go into one of these streams or lakes or something like that, be careful by covering your nose, for instance chshgs is very important. i would rather you never went into the water and also, you know, splashing around, all that -- the bottom of that lake or that stream really is where this amoeba sits and, you know, it can be very problematic so it's a big deal. >> but it's been hot, it's hot every summer but exceptionally hot all across the country. so if you're living in the midwest like i go home to minnesota, i can hardly wait to jump in the lake or jump in the river. that's a lot of the relief that people have. how do you know if the lake has this amoeba? >> look, i think the fundamentals now is if you're looking at a large lake that has, you know, modified temperatures, you know, as you go in deeper, the water gets cooler, the likelihood is not --

is going to be that you're not going to find these, you know, single cell organisms. the thing is that a lot of kids, you know, some of the injuries have occurred, you know, in small kids that have gone into a little pond or something like that to cool off and that's when you get into trouble. so you have to be very careful. if you have, again -- >> the water gets low. >> the water is stagnant. if it's not circulating. if the temperatures are high for many, many days, this -- these fresh bodies of water may potentially have these amoebas and you have to be very careful because, you know, if you get an infection by the time it could take 48 hours to seven days by the time you get the symptoms, it may be too late. >> talk about that very quickly, what are the symptoms? >> the symptoms are typically of meningitis. you get the malaise, the confusion and the neck pain and ultimately, you end up in a coma and, you know, you die and that's the sadness about this problem. >> two children this year have died and it could be on the rise and one adult has passed away from this. dr. manny, thanks for bringing

that to our attention. >> now we got to worry about lakes. no wonder you're on the a team, dr. manny. straight ahead as we move ahead in the second hour, some of the president's biggest supporters outraged over his bus tour saying he's ignoring us. >> we don't know why -- >> could he lose the black vote over this? >> a man holding himself hostage at the top of this tower for six days until police called in the big guns. we're talking to the hero negotiator who came out of retirement and brought this man down. [ female announcer ] so you think your kids are getting enough vegetables? maybe not. v8 v-fusion juice gives them a full serving of vegetables plus a full serving of fruit. but it just tastes like fruit. [ male announcer ] get five dollars in money-saving coupons at v8juice.com.

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>> top of the morning to you, it's thursday, august 18th. i'm gretchen carlson. thanks for sharing your time. we have to start this morning with the fox news alert.

overseas markets are causing fears now here in the united states in a massive global selloff could be under way. so what will happen when wall street opens? brian? >> wow, president obama calls out governor rick perry. but maybe he shouldn't mess with texas. >> i just want to respond back, if i may, mr. president, actions speak louder than words. >> more on what his actions were right after this. plus oochlt as the president heads to the vineyard, the governor hits the campaign trail. plus all this optometrist wanted to do was honor our troops by flying old glory but apparently, her condo board says things differently. why they want her to take that flag down. "fox & friends" starts right now. >> good morning. >> all right.

1 minute after the top of the hour. good news is the guys from "tanked" left their tanks. i think they forgot them. they might come rushing back. >> a little bad news, though, much of the dow futures now, asian markets are down, europe was down. we're down almost 200 points on the dow. >> here we go again. >> back to last week. president obama ready to unveil a new jobs plan and maybe get us off this wall street roller coaster but before that, he's taking a family vacation in martha's vineyard. >> but will he actually get to relax? joining us now from washington, d.c., doug lazader. doug, i don't know. maybe he should work instead of relax. >> well, you know, there is that argument and it's certainly being made by a lot of folks, the president heads from the midwest to the vineyard with a quick stop here in washington along the way. a little later today, the first family will begin relatively long vacation on the island enclave of martha's vineyard. this will be his third trip there since taking office and there's obviously nothing unusual about presidents taking time off or getting heat for doing so. but this time around, given the

state of the economy, the white house is clearly concerned about what many around here call the optics of this trip. the fact that the president, in fact, the president was asked about this on cbs news, whether this trip sent the right message with so many americans out of work and the nation's economy really taking a beating. he says congress isn't in a mood to work anyway. >> should you be going on vacation? >> well, no, because i think if all we're doing is the same posturing that we saw before the debt limit vote, that's not going to encourage anybody. that's going to discourage people. >> and the midwest bus tour that the president just wrapped up seemed to be designed to prove that he is concerned about the economy and working hard to spur the jobs market. but this vacation does give new fodder to the republicans who hope to unseat the president next year. >> too little too late. but -- but we appreciate the fact that he's -- he's trying to devote some time to it. not just going to be on the bus

tour. not just to go gb vacationing on martha's vineyard. >> when the president returns, he'll outline a new plan to get the economy moving and start producing jobs. we just don't know what the specifics are yet. back to you guys. >> and the question is does he or is he still putting the finishing touches on the plan? the markets will certainly be responding. thanks a lot. >> thanks. >> let's talk about the other side of the equation, the republicans who want to be president, well, governor rick perry of texas, kind of this back and forth going between the governor and the president in the last few days. couple of days ago, the governor said that he thought printing more money by the fed and ben bernanke, the head of that, of the fed would be treasonness and got a lot of flak for that. the president had an opportunity to respond and said look, it's a couple of days he's been on the road. i'm going to give him some slack right now but he should be careful of what he says. then perry responded back to the president again yesterday. >> the president said i needed to watch what i say. i just want to respond back, if

i may, mr. president, actions speak louder than words. my actions as governor are helping to create jobs in this country. the president's actions are killing jobs in this country. >> you know who is left out of this mix? mitt romney. he's going what about me, mr. president? i say bad stuff all the time, can't you respond to some of the stuff i'm saying, too? >> this is playing into rick perry's hands. he's loving this right now. >> he did. i actually thought the president was very deferential because of it. he was ready to take aim, fire and shoot. it's different than running for governor and running for congress. running for president is a whole different animal. >> as far as how the media picks up on every single thing he's said. >> both times he's not backed off the bernanke statement, he has again embraced it two days later. it's going to be very interesting -- >> good advice. remember obama on the campaign trail and joe the plumber said what do you plan to do? i plan to spread the wealth.

everybody picks up on it. he's giving perry some good advice. think about what you're saying. >> at the same time, when he gives it attention, has he given perry the rise with the attention? we'll have to see how that continues to play out as we continue to monitor those candidates. in the meantime, how do the african-american population in america feel about the president right now? well, there was a very heated down hall meeting in detroit where maxine watters, congresswoman from california, she said some things that many people believed somebody who had aligned herself with the president would never say. listen to this. >> we want to give us every opportunity but people are hurting. the unemployment is unconscionable. we don't know what the strategy is. we don't know why on this trip, he's in the united states now, we don't know that. >> a lot of people don't understand why he picked the cities he did and the states he did except they are key states for his victory but maxine

watters says he couldn't drop by an inner city or drop by a place that's predominantly african-american. that's her contention because the african-american unemployment is close to 16% in this country. weighing in, colonel allen west of california. >> florida. >> florida. the laughable hypocrisy is that the big, black bus is not going into the black community. when you had unemployment in the black community 16.3% in july, so you have this 21st century plantation that has been out there where the democrat party has forever taken the black vote for granted and you have established certain black leaders who are nothing more than the overseers of that plantation and now the people on that plantation are upset because they've been disregarded, disrespected and their concerns are not cared about so i'm here as the modern day harriet tubman to kind of lead people on the underground railroad away from that plantation into a sense of sensibility. >> i get the frustration. when you look at those unemployment numbers and you keep in mind that the cities,

those small towns, the rural areas that the president chooses to go to, not a high african-american population and many of those towns have a better unemployment rate than the national average which is 9.1%. so why wouldn't you go to these really struggling places? keep in mind, he did go to michigan the week before and we know what's been going on in that state, not good news as far as employment goes. i think maxine watters has a point here. >> do you remember velma hart. they did an interview and they never expected this woman to stand up and she said i support you but i'm finding it hard and harder to support you and your policies. well, we weighed in with velma hart yesterday, she still doesn't have a job and she's making the point that maxine watters and colonel west are making. it's time to pay attention to the black community. i don't know. i'm not sure why he's not -- you're right, brian, he could have maybe made a little detour and checked out some of the

cities with higher unemployment rates. >> i don't know. is it a campaign trip? i can't figure it out or is it not? is the bus that's built in canada went to three american cities, none of which were predominantly african-american and there seems to be a lot of frustration. maxine watters, one quote here that stands out, we don't know what the strategy is. >> no kidding. apparently, we'll find out more in a couple of weeks after the president tells us his plans after labor day. well, now, your headlines for a thursday. we have to begin with the fox news alert. brace yourself for another wild day on wall street. this after european markets fall from a two week high because of growing concern about the debt crisis across the pond. dow futures already dropping, they keep changing but right now about 168 points. things may only get worse when the new weekly jobless claims report, that comes out thursday morning about 8 e:30 a.m. eastern time each week. those claims are expected to rise. police say he was planning an attack worse than columbine. the 17-year-old expelled student now under arrest charged with

planning to blow up his school in tampa on the first day of class. police went to his house after getting a tip. here's what they found. a written manifesto targeting more than 30 students and administrators along with ingredients to make bombs. >> he doesn't know how to vent. i told him, i said, dude, just go in your room and scream in your pillow. >> he has a long rap sheet including arrests for burglary, carrying a concealed weapon and drug possession. new video of pope benedict arriving in madrid to celebrate world youth day. his visit end with an open air mass on sunday. the pope's arrival marked by an arrest, though. a student volunteer accused of planning a gas attack against protesters. it's not known if he could have actually carried out that attack. >> long time girlfriend of notorious boston mobster james "whitey" bulger due in court for arraignment today. that's her right there. 60-year-old katherine griegg charged with harboring a

fugitive, helping bulger hide from the f.b.i. for 16 years. her lawyer claims she didn't know the extent of his crimes. forget about smoking in the bathroom. one airline now warning against the movie "toy story"? >> hi. i'm ken. >> barbie. >> nice leg warmers. >> nice ascot. >> i love the adult humor. >> i don't get it. oh. >> but virgin atlantic airlines issuing emotional health warnings for in flight movies like "toy story" that may make passengers cry. the new policy comes after a survey showed 41% of men admitted to hiding under blankets during flights to cover their tears. what kind of study is that? who paid for that study? >> the airline also lists "eat, pray, love" and "the blindside" as some of the most sob worthy

flicks. so somebody paid for a study to figure out if men put the blankets over their head on an airplane? >> why isn't eric weighing in? you know why, gretchen? why? because he has been known to well up during certain movies. like the end of "rocky 1" when he says "adrian" his eyes are swollen shut and looking for his wife desperately. >> i was one of the people they studied, yeah. >> they did study you. >> i'm a little emotional in some movies. not "toy story" necessarily. >> physically, we're more emotional while in the air. superman must have been crying the whole time. >> how many tears did you have during fred claus? >> it was scary for a while when two brothers separated were so different and fred was ignored. >> never get movie advice from brian. i love you but don't get movie advice from brian. let's tell you about this story, she's an optometrist and all she wanted to do was show her patriotism. she started her practice in a townhouse community and said

let's put up an american flag there. she goes out and buys a pole and buys a flag and goes to the city web site and figures out how she's supposed to do it. guess what she got instead. take that flag down. it's not allowed. >> it violated the bylaws of the business condominium group but yet, they fly flags on their own and we're seeing them. >> and i guess the way they said if you don't take it down, we'll take it down and charge you to take it down. this is crazy. fly the american flag. where in the world can you not fly the american flag? >> a lot of places. we do the stories all the time. >> these stories always end with a statement. do this end with a statement? >> as is our practice, we do not comment on specific issues as they should be dealt with in the appropriate matter between the parties and not through the media. oops, she's going to be in a few minutes on our show. two american flags are prominently displayed. placing additional flags in common areas in order to bring greater attention to particular business is inappropriate. >> as much as i love -- as you read the words get highlighted,

i prefer the bouncing ball. >> what? >> follow the words to the bouncing ball. >> music -- that's a song! >> oh, i didn't know that. >> that optometrist will join us. >> ahead, president obama's latest solution for the job crisis. another speech. so when is he going to actually create a job instead of talking the talk? the political debate is next. and we're on fire this morning from a hero inspired by his sister rescuing a 2-year-old from a burning building to a man who lost everything during hurricane katrina. some of the bravest firefighters in the country are heating things up on our plaza like never before. dad, why are you getting that? is there a prize in there? oh, there's a prize, all right. [ male announcer ] inside every box of cheerios are those great-tting little o's made from carefully selected oats

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>> he's planning yet another speech about jobs. is this a good idea? does he even have a choice? joining us to discuss this and much mortar tar, fox news contributor and co-host of "the five" also in d.c., also a nice person, jennifer palmeri, former press secretary for john edwards presidential campaign and the president for the center of american progress action fund. is this the right time for him to make a speech in 2 1/2 weeks? >> jennifer, to you. >> yeah, i think that, you know, yeah, i think that he -- he certainly feels the need to not just make a speech. but put forward a plan and, you know, there's a lot of politics here but to go back to the substance for a second because it is important when we're talking about jobs, i think that what you want is for the private sector to create jobs and there's reason to believe that the private sector would create jobs because there's so much --

because there's record profits right now but that's not happening and so i think the president has felt that the need to come in with two things, one is additional government spending that would spur private sector jobs, not talking about government jobs but talking about a lot of jobs in the construct sector where there's been long term unemployment and long term deficit reduction so people have confidence in the fiscal soundness of the country and i know it's hard to do both things at the same time. >> i know it was tough being quiet during that. >> but she's a nice person. i think the president should take a cue from my quietness and be quiet for a little while. look, i think the president has said so much and contradicted himself so much that that's why the corporations are holding their profits because they don't know what he's going to do. look, we saw him go out and make tons of speeches on health care and it didn't work so i think just going out on a bus tour and without a plan and then saying i'm going to go on vacation and i'll show you my plan when you get back, he needs to take a

break. he needs to regroup but i will say this, the plan that yjennifr was outlining there's no political appetite for it in congress. he's not going to get anything through the senate unless there are tax increases and that's not going to happen. >> we understand that part of the proposal will be, well, i'm going to take some money, i'm going to tell that super committee to cut more than $1.5 trillion, take that extra money and extend unemployment benefits. it looks like we have another war. he talks about taxing the rich. >> yeah, and i don't disagree with what andrea said, you know, about the president being quiet for a while and, you know, and, you know, figuring this stuff out and then coming back to the -- to the country with solutions. and it is -- and she's also right, that it's extraordinarily politically difficult but that doesn't mean that he's off the hook for not trying. he still has to try. >> we'll see the plan shortly in 2 1/2 weeks. is it done and he's not giving it to us or are they still working on it and coming up with

it? coming up straight ahead, she may not have had a degree in economics. does that mean that kim kardashian doesn't know how to stimulate the economy? how she's creating jobs. and a man holding himself hostage at the top of a tower for six days and police called in the big guns. we're talking to the hero negotiator who came out of retirement to talk this man down. [ male announcer ] heard this one?

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>> all right. news by the numbers coming your way. first $500 million. that's the u.s. government loaning $500 million to india so they can make solar panels. that's on top of the $75 million the u.s. has given india this

year for solar powered projects. are you kidding me? next, $1.5 million. the suspect in the case of a missing woman in aruba is reportedly the beneficiary of an accidental death policy. robin gardner went missing while vacationing with this guy named gary giordano. he is being detained fortunately finally $20 million bucks. that's how much kim kardashian's wedding to kris humphries will cost. the royal wedding only cost $5 million. but she's american royalty. gretch? >> that's stimulating the economy. for nearly six days, he kept police at bay from a tv tower some 100 feet in the air. they tried about everything to coax the guy from his perch even giving him food and water to gain his trust but nothing worked. >> then retired police negotiator tyrone lynch showed up on the scene and calmly bonded with the young man and after nearly eight hours, he got the guy to come down and help end tulsa department's longest ever we're joined by tyrone lynne.

thanks for joining us. that was really, really dramatic. i remember seeing it. the moment that was the most dramatic for me is at one point, you were holding this man by the foot. is that what was going on at some point during that rescue? >> yeah, it was. he had kind of lost conscious a little bit and fell back, lost his footing and i was trying to hang on to him until he got his footing back. >> that was a scary moment. but let's face it, this gentleman was up there for six days. nothing seemed to be working as far as getting him down. you recently retired. you're in the construction business now. you were a negotiator. they called you up because they knew you probably could get the job done. what is it about you that got this gentleman down after eight hours? >> i think, you know, i just was very patient with him. and was, you know, trying to develop that rapport and, you know, you get up that high and you see a person in that

situation, it's actually not that hard to, you know, lock yourself in and, you know, really feel concerned about getting him down. >> and what did you say to -- by the way, were you briefed on his background later when he found out he had some personal problems? did you know that when you went up in that -- in that crane right there? >> no, i didn't. >> what do you say to him? >> well, i just, you know, i talk to him about second chances. his big concern was that he felt like god wanted to punish him for some of the mistakes that he had made and, you know, we just talked about stepping into that bucket and becoming the second chance and starting a new chapter of his life. >> i find it interesting that you also spoke a lot about faith with him. you actually prayed with him. i mean, i find it ironic because prayer seems to be taking a back seat in a lot of other discussions across this country. and yet, do you believe that that had a lot to do with coaxing this guy back down? >> well, i believe it had a lot

to do with it because one, the prayer certainly gave me confidence because i'm a believer, and then the other thing is that it certainly changed his mindset and was -- it helped him to draw in because he believes. so i mean, i think it was a major part of a great ending. >> mr. lynn, are you going to be on call for any future negotiations? because that happens to be one dramatic rescue, sir. >> right. i'll tell you, i doubt that. tuscaloosa police department has unbelievable negotiation team. i think just in this situation, they had to get outside the box a little bit and, you know, thank god that it worked out great. >> you knew how to do the job and you got it done. tyrone lynn, retired police department negotiator who talked a man off the tower after six days. thanks for being our guest. >> thank you. >> all right, coming up, is it political payback? eric holder now investigating the s&p for downgrading

america's credit rating? are you sure? >> is bill clinton preparing to add another title to his resume? why the former president may be dusting off his dancing shoes? i thought he played the saxophone. does he dance, too? >> oh, my gosh. i hope so. i want to see that. that's something i'd definitely watch. plus "fox & friends" heating things up. aren't you supposed to be reading this one? >> i'm going to definitely be outside with those guys. >> a hero inspired to a burning building, rescuing a man from burning building who lost everything during hurricane katrina. some of the bravest firefighters in the country live with gretchen on the plaza in a couple. [ male announcer imagine all of your missed opportunities

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there's no risk or obligation. call about the colonial penn program now. you'll be glad you did. >> let's get right to a fox news alert. brace yourself for another wild day on wall street. this after european markets fell from a two-week high because of growing concern over the debt crisis across the pond. dow futures already dropping more than 170 points. things may only get worse when the new weekly jobless claims, when that report comes out at 8:30, about an hour from now. this morning, those claims are expected to rise. i'm watching this thing tick down and tick down, we talked to varney earlier, again, this is european crisis apparently what's going on in germany, germany said we're not here to bail out europe.

and that's what's sending european markets tumbling. >> who else is going to bail out europe if germany isn't? nobody. >> there's that big meeting, it's certainly not france. >> you're right. >> they all need help. >> the rest are hands out like this. i'll tell you, they better not come to us again and say help us out. >> we need help! not sure we could be giving out anymore. let's tell you about an update on this department of justice situation with the s&p. they are now apparently going to investigate the ratings agency, remember they downgraded us a couple of weeks ago and they said they're going to investigate them on some of the mortgages they gave triple a ratings to, the bundled ones and subprime ones a few years ago. am i not correct they gave a triple a rating to lehman brothers right before it collapse ed? >> right before it it was collapsed, it was triple a. there's absolutely no risk of you not being paid back on your bond investments. >> is this payback politics? i told you not to downgrade us. i don't believe we should be downgraded. now we'll have a little

investigation into how you do this whole grading process. believe it or not, i was fascinated to find out how valuable s&p's ratings still are today and no one approaches how they go about doing their job when they seem to clearly have dropped the ball when it came to mortgage securities back leading up to 2008. >> they dropped many balls on the way to the big financial rollover. think about this. you know how they come out with the college rankings. it turns out that really matters at the end of the season, number one. number two, that's what s&p is. you may not agree with how you rank them or who is ranking them but the bottom line is the world looks at those ratings, the bond ratings and investors, they use these because when they sell the deal to investors, they say we use triple a ratings. don't blame us. blame s&p. >> if we find a smoking gun, it could destroy our credibility. it could be interesting for moody's if they get the same message. is this payback politics? >> here's a tweet. of course payback politics. doj, department of justice is an embarrassment under holder. >> and s&p, this is another

tweet, s&p should have been investigated years ago but nothing wrong with someone -- some a little well deserved payback. >> good profile shot of mulligan stew. mark says this over in maryland, it isn't the government's role to investigate failed entities especially when there's such an obvious retaliatory motive. >> e-mail from jim in maryland, everybody should be questioning why the doj is announcing the investigation now if it had been in the works two others your more. i question the retaliation. >> maybe it's retaliation but it's well deserved. >> you like this investigation? >> i do like this. the doj has a lot of problems, the atf, the whole fast and furious thing. and a bunch of other border things going on. but this one? they should be investigated. there is absolutely no reason to downgrade the u.s. by s&p. look at the other ones, moody's and fitch has reaffirmed the triple a credit rating to the u.s. and nothing has changed. >> 24 minutes after the top of

the hour. >> israel rocked by explosions in an attack near the egyptian border. leland vittert joins us outside of jerusalem with the very latest. leyland? >> good morning, we are now understanding this was a very sophisticated attack involving at least one anti-tank missile used against the bus and some automatic weapons fire and some militants down along the egyptian border. at this time, five dead. that number could certainly grow. at least 14 people wounded in this attack and the road it was on is a desolate road that runs right along the fence, that is the egyptian-israeli border in the sinai peninsula and the most likely suspects here are either hamas militants out of the gaza border or al-qaida militants inside the sinai and it shows right now not only the ability of these militants to launch such a sophisticated and coordinated attack but also the inability of the egyptian government to try and crack down on these militants, something they certainly did in the past. and something that it appears as though they are no longer able

to do at least with these attacks and that's something the israeli government has been talking a lot about over the past six months is the security inside that part of the sinai peninsula, it looks like today is just round one of those attacks from inside the sinai with people have crossed over. at this time, with the israeli army say they have killed at least two of the suspects and are still pursuing the rest. i can tell you that from having been along that area, it is an awful desolate and rough place to be. back to you. >> we never thought we'd have to worry about that border but it's another border and now israel has to be concerned with. thank you very much, lee land over in the eye of the storm. more stories making headlines this morning. norway massacre suspect anders breivik reportedly had a second bigger bomb than the one he set off in oslo. norweigian tv reporting the bomb found at his rented farm weighing 3300 pounds. that's more than 1,000 pounds heavier than the one that killed eight of the 77 victims. >> and the third person killed by a deadly parasite that lives

in water, an unidentified man from louisiana in his early 20's was infected after using tap water to flush out his sinuses. also killed by the parasite, a parasite, a 9-year-old boy who came down with the infection after a fishing trip in virginia and a 16-year-old florida girl who got sick after swimming in a river. pri brian? >> man hunt under way after a brazen bank heist in florida. the incredible video you're witnessing shows three masked men storming in with submachine guns ordering customers to the floor and you can see two of the gunmen jumping over the counter grabbing as much money as possible. at one point, the suspects turned their guns on an unsuspecting customer who walks in on the robbery. in the end, no one was hurt. suspect escaped in a black nissan. >> all right. is bill clinton dancing with the stars? well, not yet but ballroom pro -- wow. cheryl burke says the former president would be her first choice to join the show. she says his charm would make

him an ideal dancing partner. though she said she wouldn't mind bradly cooper either or brian kilmeade. >> right. didn't say that. i'm surprised. i guess there's no time in the prompter. >> what do you have for us? you have some pretty special people around you. >> hey, some perks come with this job, brian. like hanging out with these hot firefighters. they're everyday heroes from across the country who banded together to raise money for charity. these firefighters are gracing the first ever nation's bravest firefighters unite 2012 calendar and we're joined by them this morning. good morning, guys. great to see all of you. jason, you are the spokesperson, mr. seattle and mr. january. i understand that the criteria for being selected was much more than just a hot body. >> well, that's correct. i mean, we all wanted to be firemen, obviously but, you know, you had to have a decent physique and had to be presentable and willing to go and market the product and get out there and just, you know, be really motivated to raise money for some good causes. >> so it's going to go to different charities that you all chose, the proceeds?

>> that's correct. 12 firemen, 12 cities. 12 different charities. we all have our own charity we're supporting. >> right now, people want to buy this. they can come to the launch party tonight, first of all, in new york city, right? >> that's correct. the greenhouse, 8:00 p.m., we're all going to be there, you can get a signed copy and go to nation's bravest.com so yeah. >> i want to meet some of the other guys. now, you are? >> mr. new orleans, lenny from new orleans. >> all right. >> and what was your special personal story? i know that you participated or were there for hurricane katrina, right? >> i was there all throughout katrina and like other new orleans firemen, i lost my house. like most firemen. none of us left our posts. and used our training and a lot of improvising to do a lot of good. >> ok, and here next to me, hey, hello, you got a great smile. >> thanks, gretchen. >> and you are? >> mr. st. louis, garren mosby. >> i like this guy. >> your personal story, are you the one who rescued or your 2-year-old sister? >> actually we had a basement fire so we experienced some

tragedy. the smoke forced us out and the courageous st. louis firefighters came in and they rescued my sisters from a second floor window. >> right. that inspired you to become a firefighter? >> absolutely. they seemed invincible. >> now, i have to have kind of special homage to this guy because he's from my home state. i'm from minnesota. this is mr. minneapolis, right? your name is? >> justin reed. >> all right. and i know that you were there when the bridge collapsed a couple of years ago. >> i was. yeah, we were working that day and showed up and it was just a surreal scene, you know, just something out of a movie. but we were able -- it was awesome to be able to be there and help the people that needed help. pretty cool. >> i have to ask the rest of the guys, why do you want to be in this calendar? is it just because you want to try and get a hot date? what is it? >> i wouldn't say that. it's definitely for charity, great cause. puts firefighters in a great spotlight so it's a great thing to do. >> what about you? >> charity. it's all about the charity for me. it's just to be able to help people outside the retroscope

and that's all it is. it's just giving back, this job gives you so much. so you got to give something back. >> all right. i know a lot of people will be interested in this calendar. you can go to foxandfriends.com to get more information about it. back inside, guys. >> all right, gretch. >> we ran out of months. if we had more months. >> i was mr. leap year. >> you were mr. leap year? no wonder. that's one calendar i didn't collect. governor rick perry touted for creating jobs. his critics say not so fast. the federal government created those jobs. what's the truth? we'll talk about the facts. >> call it an a la carte education. kids being able to choose what they want to learn. is this a good idea? the creator of the program here to defend it. [ male announcer ] what if that hemorrhoid pain is non-stop to seattle? just carry new preparation h totables.

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>> texas governor rick perry has been able to do something washington has not. create jobs. and now, he's being called out by the president. >> mr. president, actions speak louder than words. my actions as governor are helping create jobs in this country. the president's actions are killing jobs. >> but critics in the white house -- critics of perry and the white house are claiming that the federal government is responsible for creating the jobs in texas and not him. so who's right? joining us from atlanta is mathias shapiro, a blogger with politico. we've heard mr. perry's claim that he's created 40% of all the new jobs in the last couple of years. the white house saying it's because of white house programs, federal programs that jobs in texas are being created. who's right? >> well, in a way, kind of neither of them are right.

i don't think rick perry creates jobs. i think businesses create jobs and individuals create jobs. and then the question becomes, well, does texas have the environment where the businesses can create the jobs? the answer is obviously yes. you look at the numbers, jobs are up. as for whether or not the federal government has created any of those jobs, if we look at the stimulus as a medicine and obama is the doctor, we've given this medicine to 49 different states. 49 different unhealthy states and one healthy state and this is kind of the administration coming in and saying we made the healthy guy healthy. it doesn't seem to hold a whole lot of water blaming the -- >> let me cut in on you here a little bit. how can governor perry who is the governor of the state creating the jobs or the businesses are in his state. what do you mean he doesn't create jobs? of course the governor is the ceo of the state. he is responsible at least partly for the business friendly environment that helped create all the jobs. >> it's a question of -- it's a

question of who we're going to blame. who we're going to blame for jobs and honestly, i don't -- i'm not trying to have a dog in that fight. my business is numbers. and if you look at the stimulus, the stimulus went out to everyone and stimulus went out less to texas than it did to all the other states and now we want to use that stimulus to claim that it's what created the jobs. well, it doesn't seem to make a whole lot of sense. >> right. my business is numbers as well and one of the things i find ironic is the white house is claiming some of the jobs in texas were because of the high price of energy. so you raise the price of energy through your policies, through your agenda and then you take credit for jobs created in a state that there are really no taxes and business friendly state that are creating jobs. >> if you look at jobs industry by industry, it turns out that the energy sector didn't create all the jobs in texas. it created maybe 25% of them. all the rest of the jobs have been created by other

businesses, mostly small and private enterprises. >> those are the ones that really count, the small businesses, the ones that were created by the private sector, not the public sector. all right, we'll leave it there. mathias shapiro, thank you very much, sir. >> thank you. >> next on the rundown, new kind of education where kids pick the curriculum and they're learning things like building forts and tree houses. teachers say it should replace geometry. are you kidding me? the woman behind this style of learning here to defend it next. and the number one song on this date in 1994, "stay" by lisa loeb. [ female announcer ] so you think your kids are getting enough vegetables? maybe not. v8 v-fusion juice gives them a full serving of vegetables plus a full serving of fruit. but it just tastes like fruit. [ male announcer ] get five dollars

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>> all right. parents choosing to unschool

their kids. it's called democratic learning where kids pick the curriculum. >> right. diane is the co-founder of phoenix rising preschool and the mother of two children herself. she joins us live from phoenix. so diane, thanks for joining us. tell us a little bit about the curriculum. there are no required courses. i don't have to take math or science, i pick my own curriculum? >> that's correct. it gives students the power to choose what they're interested in learning and to continue to do those studies. >> starting a year ago, right? you have -- you're open to kids from 5 to 19. you have about 10 kids now. and how's free will going at your place? >> you know it's wonderful. it's a great environment when you get to mix ages and allow students to actually follow their love of learning. it's the basic idea that students love to learn and if we don't put them into a box, they will show that love of learning

and branch out. >> give us a sense of some of the things that a student can choose from. >> well, we definitely believe especially for the younger kids, that students need to play because in that play is creativity so there's fort building, there's carpentry, there's gardening. instead of learning about an engine and a textbook, we can bring the engine to the kids and we take the engine apart and put it back together and we also get involved within the community, visiting older people, serving meals to homeless. we are part of the community. >> that's fantastic. but there are other things in public schools that are electives. you take the required courses and you say i like to do different things whether it's engine mechanics and stuff like that. are you concerned about graduating a kid who doesn't know who won the revolutionary war? >> not at all. because in today's age, that information is readily available. thanks to the internet. you know, we don't know what kids will need in 10 years, in

20 years, you and i when we were kids, we didn't have the internet. our teachers didn't know this is what we would need when we grew up so it's hard for us to say now, what's going to happen in the future. and instead, we're now giving kids the skills in order to think outside the box. to be creative. to be the next leaders. >> now, diane, you sound like a very intelligent woman. what's your background? did you take math growing up? >> i took math. i took the highest math. i took the highest science. and yet after i took it, i could take the tests but i didn't know what it was about because it didn't relate to my world. and, you know, it's funny. b i've been a lawyer for almost a decade now. at no point, did anybody say diane, take a standardized test. instead, people have said here's a project. find a creative answer. unfortunately, in public education today, we're teaching towards the standardized tests, we're keeping students within

the box. they're not going to be able to go on to the jobs and create. >> the fear is somebody is going to say can you help me with my shed? you'll say people won't understand math. >> what's the change back from a $5 bill? >> tough to know what you're interested in. >> thanks for a look at your school. next on the run interest down, flash mobs are disrupting life across the nation. what's behind the violent phenomenon? michelle malkin is here with a motive you won't hear on any other network and she's also weighing in on the rick perry issue, jumping ahead in the race for the g.o.p. nomination. why doesn't michelle like him? back in a flash. [ male announcer ] to the 5:00 a.m. scholar.

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learn more at keller.edu. >> gretchen: good morning, everyone. thursday, august 18. i'm gretchen carlson. thanks for sharing part of your day with us. fox news alert. u.s. markets expected to tank

again at the opening bell. so just how bad will it be and what does it mean for your money? >> eric: president obama putting dc in his rear view and heading to the vineyard. is now really the best time to go? >> brian: black lawmakers are not happy with the president's jobs tour and republican congressman allen west says he knows why. >> hypocrisy is that the big black bus is not going into the black community. >> brian: so could obama lose the black vote? "fox & friends" starts right now. >> gretchen: welcome, everyone. eric bolling sitting in for steve today. great to see you. brace yourself for a wild day on wall street. >> brian: how wild? >> eric: i'm looking now and the dow futures, which are a good indicator of where we'll open here in about an hour and a half, down 200 points. that's based on mostly the

european markets, asian markets were down, but the european markets started to roll down. but then look at europe, london down 1.9%. germany down 3.4%. that's a big number because germany is really the kind of one stronghold in europe, the up with holding the european continent afloat. >> gretchen: the dow futures here fluctuating, but down -- >> eric: 201 now. >> gretchen: the new weekly jobless claims reports, they come out at 8:30 a.m. eastern time as they do every thursday. the numbers expected to rise, unfortunately. we'll bring you those numbers immediately. >> brian: the euro is having trouble. they're trying to offer some bonds. the germans are not into it. why do american banks react to that? >> eric: because the fear is, again, that spreading con stagen. here is what was going to happen. the european union was going to do a 12-member super committee to address their debt problems there. germany is the most important,

the most successful economy, the strongest economy, the only one really kind of growing right now. and germany pulls out of that, then everyone says, that means spain is on the hook, italy is on the hook, portugal, maybe ire lapped for downgrades. if downgrades happened there, a lot of u.s. banks hold a lot of the foreign debt. they'd be holding stuff that was less valuable. >> gretchen: all this uncertainty while president obama gets ready to unveil his new jobs plan. is this the best time for him, some are asking, to take a ten-day vacation. >> eric: joining us from the white house, caroline shively. has he left yet? >> no, he has a couple of meetings this morning. he'll meet with his economic team and others before heading up the coast to martha's vineyard. he wrapped up his bus tour yesterday in illinois, dropping in on his very surprised high school football team. he also did two town halls and dropped in on a state fair cow contest. on the tour he was talking about jobs, as you are this morning. but he'll talk about the

specifics of his job plan, about three weeks from now, and also how he plans on cutting the deficit. >> and america is going to emerge stronger, more unified, more successful than it was in the past. in order for that to happen, though, i'm going to need your help. i need your voices out there talking to folks from both parties and telling them we expect you to show some cooperation. stop thinking about politics for a little bit. try to make sure we're moving our country forward. >> martha's vineyard is bracing for the rush of security and media coverage. president obama's critics are saying cancel this vacation. stay at the white house and start working on the economy. the white house officials say it won't all be golf and ice cream. he will be focusing on this upcoming jobs, this major speech. the president usually gets a nice welcome from the locals up in martha's vineyard and the reception we saw on his bus tour was warm, except one guy hold

ago sign that said the economy, rock bottom. back to you. >> gretchen: all right. thanks very much, caroline shively. i wonder if he'll be greeted with any signs on vacation. good and bad he'll probably face. the justice department launching an investigation into the business practices of standard and poors now. according to the "new york times," the question is whether s & p improperly rated dozens of mortgage securities leading up to the financial crisis. the investigation started before the s & p downgraded america's credit rating from triple a to double a plus. there is concern that s & p managers overruled company analysts who wanted to hand out lower ratings on mortgage bonds. police say he was planning an attack worse than columbine. jared cano, charged with planning to blow up his school in pal at that on the first -- tampa on the first day of class. police found a written manifesto targeting more than 30 students and administrators, along with ingredients to make bombs. >> he didn't know how to vent.

i told him, go in your room and scream in your pillow. >> gretchen: he has a long rap sheet, including arrests for burglary, carrying a concealed weapon and drug possession. new video of pope benedict arriving in madrid to celebrate world youth day. the pope greeted by king juan carlos and queen of spain. his visit ends with an open air mass that will be on sunday. the pope's arrival marked by an arrest. a student volunteer accused of planning a gas attack against protesters. it's not known if they could have carried out that attack. texas governor rick perry getting a campaign kiss? ♪ i want to rock'n'roll all night ♪ ♪ and party every day >> gretchen: gene simmons says stop the election. he already knows who the winner is. he tweeted, i voted for president bush. i voted for president clinton. i voted for president obama. the next president will be governor rick perry. governor perry worked for al

gore and switched to republicans. he will be our next president. i've never been wrong. >> brian: also more kiss controversy. they're appearing at the michael jackson event, although he was critical of michael jackson. i'll cover the kiss thing in the break when the cameras are off. michelle malkin is here. she's live in colorado springs. michelle, you also are a -- i guess first off, you are not necessarily a fan of rick perry. something he did over the last 11 years you can't get past. >> there are a lot of things and i think i'll have to tweet gene simmons about them and get him educated and informed. i think all voters and particularly conservative ones, really need to examine and scrutinize rick perry's record as governor. he is running on that now in his 2012 bid ask one of the decisions infamous decisions he made was the subject of my column yesterday with extensive background links and citations. this was the executive order that he tried to shove down

parents and children's throats in 2007 to mandate that all sixth grade girls -- we're talking about ten and 11-year-old girls -- be forced to take the gardasil vaccine in order to enroll in school. there are a number of problems with this. this isn't some sort of single issue, one off mistake. the way that the perry campaign is trying to play it off as. there was an element of cronyism involved because his former chief of staff was a lobbyist for the manufacturer of the vaccine. of course, there was the very troublesome use of his executive authority to run rough shod over the legislature and skip any input before he put it into place. and then there was a sort of human shield dem gogery that we've seen from the obama administration where he surrounded himself with very sympathetic, cervical cancer victims in order to shield himself from these tough questions about the decision that he made. >> eric: can i jump in here? i'm a big fan of rick perry, but

a big fan of michelle malkin. i get it, i understand it. but we're in a situation where the country needs help. we need to create jobs. don't we need to separate the fiscal conservative with the social conservatives? you can make a case that he may not be as socially conservative as you would like, but real important issue right now for the next year and a half is the economy and this guy, for my buck, is the one most able, most capable of turning the economy around, bringing us back to the power we once were. >> well, i don't have any argument with you, eric, that we need to focus on fiscal matters. we need to focus more clearly on limited government matters and what i'm talking about is absolutely a limited government issue. you didn't hear me say anything about social issues one way or the other. there were some social conservative groups that were very concerned that this decision would have promoted sexual activity among kids. but that was not my main concern

and i didn't even mention it in my column. i'm talking about whether an executive is going to abuse his power to force mandates down parents' throats. we've seen this administration, this current administration do enough of executive orders and administrative fiat and letting behind closed doors. and what rick perry did was something that was very much along those lines. i'm concerned about it. i know a lot of people are and that's why the state legislature rebuked him and repealed the executive order in the first place. >> brian: he did say it was a mistake and you had a great line that said basically toughen up, butter cup. >> yeah. >> brian: saying it's going to get a lot tougher than michelle malkin. >> look, his entire record will be up for scrutiny. that should be our job. the gop primary season is not about coronating any one candidate and telling critics who are conservative who have principles about liberty and are consistent about them to shut up and be quiet so that a candidate can be elected. i'm going to do this with every

single one of them. i hold obama accountable for his rhetoric and i'll do the same for every gop candidate. >> gretchen: good, that was going to be my next question because i was going to say probably with every candidate you can find a mistake here or there or tons of them. >> brian: it's why i'm not running. i cannot take it. >> and neither am i. >> gretchen: i want to get to this next topic, flash mobs. they've become a big problem, specifically in the pennsylvania area of philadelphia where they've had to invoke these curfews at 9:00 p.m. because they've turned into violent nights. what's your take on this? >> well, there is a lot of different kind of outbreaks that are taking place across the country and around the world, for that matter. we've seen in london and greece, these sort of left wing, social unrest riots that are primarily based on welfare state grievances. but we also have seen a troubling trend in this country of these kind of race-based riots. it's explicit. we don't have to guess about what's happening here.

you have victims who are white or asian talking and testifying to the fact that there are minority gangsters, many of them young black thugs in inner cities and outside of inner cities who have been targeting them explicitly because they are nonblack. and people in the main stream media do not want to talk about this. who are the racial cowards here? and so that's why i think it was so significant that mayor nutter particularly singled out that element in philadelphia, but it's not isolated. here in colorado, in the denver area last year, there were a bunch of young black thugs who were specifically going after asian victims, beating them with baseball bats and bragging about it and nobody in the media wanted to talk about it. >> eric: michelle, you're not suggesting that these flash mobs are targeting white and asian business, are you? aren't they just targeting business in general 'cause things are so tough on the street? >> well, like i said, there are different kinds of these violent

attacks going on and there is a subset that is specifically targeting nonblacks. and go to new york city, philadelphia where asian students in high schools have been targeted by black students and where the division is being fomented and festering without anybody stepping in and calling out the perpetrators. we haven't heard the kind of leadership in the minority leadership community, people in the congressional black caucus follow in may nutter's foot steps. they should. >> gretchen: he was very courageous in coming out, also an african-american. good to see you and we'll read your column. thanks so much. >> you, too, take care. >> brian: millions of people facing foreclosure. real estate expert bob massi up next to weigh in on how the mess is doing and leaving more people homeless than ever before is triggering divorces asle, even crime. >> gretchen: should men over the age of 50, like david hasselhoff, be allowed to wear a

speedo? you'll hear from a guy who says absolutely not. now he's suing over it. so here's five bucks to help you buy v8 juice. five bucks. that's a lot of green. go to v8juice.com for coupons. you can count on us. check out huge savings at the bass pro shops fall hunting classic. friday only,

>> eric: fallout from the massive foreclosure mess has already crippled the economy, but that's just the beginning. a new national study says one in five american children are living in poverty and the state with the highest foreclosure rate, nevada, is also home for the most children affected by foreclosures. here with more on the social impact of foreclosures is real estate expert and fox news legal analyst, bob massi. take it away. something we don't really think about when we think of foreclosures. but the kids are really affected by this. right? >> that's why i wanted to talk about this because the lenders and the government are so disconnected from what's going on in the neighborhoods every day, addiction is up, co-dependency is up on drugs and alcohol. there has been more child abuse in geographical areas because of

foreclosure issues. divorce rates are up. the impact on families is so devastating, eric, across the board. one of the reasons, by the way, that the crime is up is because those homes, eric, that are left vacant, there is actually people that are breaking into those homes and living in those homes and the lenders don't know it and in addition to that, many of these places where they have been foreclosed on homes, like in vegas, what happens is they're renting homes out to people that are basically not the kind of people you want in your neighborhood. people that are involved in drugs and alcohol and things like that. so there is a real impact on families and neighborhoods that nobody really is talking about. as you're saying, the statistics are there to prove it. >> eric: there is a massive study on that called the broken window theory that if there is a building that looks like it's dilapidated, crime around that building actually increases. right? >> yeah. you know, eric, i have to tell you, honestly, i see so many people and do so many seminars

in this area in different parts of the country that there really is, eric, a true, true disconnect here, that although i think we all understand that when we sign promissory notes and we wanted to conform and obligate our self and perform in that, people don't understand that most people want to pay their mortgage. but because of what happened and because of values, they don't know what to do. they're stuck. they're going through their retirement. they're going through their savings. they're so upset that what happens is it gets involved in marital problems and acountry phony and children who are dropping out of school and this is a real epidemic. >> eric: one of the other fallouts to these foreclosures, the property tax revenues goes down to the states. we just saw new jersey get downgraded by run of the ratings agencies. are we going to see more of that? >> absolutely. clark county, nevada, where i live in nevada, the property taxes are down, so what's

happening, services are not available. they're cutting back government services because the revenue is not there. so there is this vertical impact all the way down that's affecting this country and that's one of the reasons why important for our viewers to understand. those in the foreclosure areas, they understand. >> eric: bob, always good talking to you. >> thanks. >> eric: e-mail bob with more of your questions by logging on to our web site. next on the rundown, this late night fun man has a target on his back and it's no laughing matter. david letterman is being targeted by muslim militants and here we go again. patriot trying to honor our troops being told to take down your american flag because it's not fair to other people. they'll be here live. also get a free flight.

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>> gretchen: 23 minutes after the top of the hour. a couple headlines. the underwear bomber has been ruled competent to act as his own lawyer. he was accused of trying to blow up airplane over detroit in 2009. jury selection begins next month. it's aol's last chance of survival. private equity takeover. the stock now trading for 57 cents on the dollar after hitting an all-time low. it signals failure for their partnership with liberal blogger ariana halvington who was hired to boost the company. let's head over to brian. >> brian: since the 9-11 attacks, the u.s. is giving pakistan in the neighborhood of $20 billion in aid for economic and security-related assistance. after osama bin laden's hiding place was revealed north of the country's capital, many began to wonder if pakistan government officials knew about his whereabouts or some did. now the white house is putting

pressure on pakistan to up their counterterrorism efforts by putting bills on the line. how is that going? is this an effective strategy. joining us to tell us if we have an ally or not in pakistan, former u.n. ambassador, john bolton. are we playing this correct? >> i think it's very important to put as much pressure on pakistan as we can to help us? the war against taliban and al-qaeda and to try and bring them as much to our side as we can. it's a judgment call. we want to press them right to the edge of the envelope without punching through it. and the circumstance we see now with this helicopter that they've shown to the chinese is a good example of that. it was outrageous for them to do that. but entirely predictable. what we need to do is make sure that china doesn't come in and fill a vacuum that we leave. >> brian: right. i remember for the longest time the president went out of his way to become an ally with the

leader there. we don't seem to have any relationship with zadari and he, according to reports, is the least powerful chief executive in pakistan history. >> the power in pakistan is with the military and it has been almost since independence from the u.k. i personally think the bush administration made a mistake pushing musharaf out of power. the military infiltrated by islamic radicals. it's a very complex situation. plus obviously the trump card is pakistan's nuclear weapons. if we really threw them under the bus, which i know a lot of people are very frustrated with pakistan. i understand that, but if you throw them over the side, they're going to take those nuclear weapons with them and the risk of them falling into the hands of islamic radicals is very, very real. >> brian: what is ambassador bolton's advice to the state department and president obama who is probably watching right now? >> i think you've got to press

pakistan hard because it's in our interest to do so. it's also in their interest. the civil society and the top military leaders, i don't think want to be taken over by islamic radicals. so it really is a judgment call to press them as hard as we can without letting the chinese have even more influence than they have or without risking destabilizing the government so that pakistani taliban or al-qaeda or other radicals can take over. >> brian: just knowing that they're training the fighters that are killing our guys in afghanistan and knowing that that's taking place is maddening to just about everyone watching right now. ambassador, it's a tough situation in pakistan. thanks for your analysis. >> thank you. >> brian: let's go over to eric and gretchen carlson. >> eric: all right. dow features pointing down nearly 200 points and the unemployment numbers just moments from being released. will it make matters worse for wall estate? >> gretchen: david hasselhoff pulled it off. should speedos be outlawed on men over 50?

meet the man who said yep. >> eric: tom brady has three super bowl rings. eli only has one. but eli says he's just as good as brady. that's eli manning. the giants quarterback here live next. gretch, hit me five yards over the middle. >> gretchen: here you go. all right! t.d. in the control room! ♪ [ male announcer ] this is our beach. ♪ this is our pool.

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>> gretchen: fox business alert. the labor department releasing

the latest weekly jobless numbers. 408,000 first-time unemployment claims were filed last week. they were estimating about 400,000 claims. so it is slightly more than they expected. eric bolling is here on the couch hosting today. i know the last few weeks when we bring you in on thursday, we've been in the 300s, haven't we? >> couple of weeks in the 300s and we thought that was turning the corner a little bit. remember, it means it was the first time they're asking for help. i'm watching the dow futures. they were all morning, 170 lower. now 200, 205, dipped to 225 on the heels of this. this is a bad number. we definitely need to be lowering these numbers. the initial jobless claims on a week to week basis has to get to 350, 325, at least see any sort of job growth in the economy. we're not going to see much. it should be part of his plan. >> brian: we started the day on a negative claim 'cause of what's happening overseas and

now this will only add to it. correct? >> eric: yes. this is not good. anyone looking for any signs of glimmer of hope, certainly isn't going to get it with this initial jobless claims number this morning. >> gretchen: and some, it's going to refuel the argument about whether or not the president should go on vacation. coming off of just three-day, four-day job tour to have the stock market once again go down today in a dramatic fashion would not be a good thing. people might start claiming or clamoring for urgency instead of three weeks. that's when he's going to release these two plans now, in september when congress comes back. president obama apparently working on these plans while he is in martha's vineyard. but a lot of people are saying, okay. this is going to mean another speech? we need something to happen imminently, right now. >> brian: first, let's see how the president indicate what had this plan will be like. >> i wish that the speaker had taken me up on the grand bargain to deal with our long-term debt and deficit. we still have the opportunity to

fix that. it's not too late. i will be putting forward a plan that will be very similar to the plan that i put forward to the speaker. >> gretchen: all right. so we know that some of that apparently will be medicare, raising the age of the medicare, if we are to believe that that's part of this plan, and also tax increases because remember, the reason that plan fell apart was because boehner claims at the last minute that president obama suddenly had this huge idea of raising taxes after they had already agreed on not doing that. >> brian: right. after they had increased it with some revenue increases. but keep in mind, unless he gets his party in order, and gets entitlement reform on the table, this is all a waste of time. if it's discretionary spending only, we're wasting our time. >> eric: there are two parts to the plan. he said i'll deal with the debt and deficit and then there is the jobs part. that's the most important one. we're clearly not creating jobs. we have to figure out what to do to create a job. we're waiting to hear your plan,

mr. obama. we have some ideas. it may be cap and balance. maybe repatriating foreign dollars and using that money. >> brian: and enticing that back. >> eric: bring it back at zero corporate tax rate and using it to create a job or two. but there is no solid plan for jobs. >> gretchen: the only thing that continues to go downward is the poll on observe answer's numbers, all-time low of 26%. a lot of those people who are upset happen to be members of african-american communities who, by a super majority, voted president obama into office. but now they're wondering why on that jobs tour that he held, why didn't he come to some communities where african-americans have a 16% and higher unemployment rate? here is congresswoman maxine waters. >> we want to give them every opportunity. but our people are hurting. the unemployment is unconscionable. we don't know what the strategy

is! we don't know why on this trip that he's on he's not in any black communities. >> gretchen: she also said the one thing she's waiting to hear from him about is a strategy. >> brian: i'm still waiting to find out how her ethics investigation goes on. colonel allen west saw the tour, has his own opinion about the president's stops. >> the laughable hypocrisy is that the big black bus isn't going into the black community. when you had unemployment in the black community 16.3% in july, so you have this 21st century plantation that has been out there. the democrat party has forever taken the black vote for granted. and you have established certain black leaders who are nothing more than the overseers of that plantation and now the people on that plantation are upset because they've been disregarded, disrespected and their concerns are not cared about. so i'm here as the modern day harriette tubman to lead people on the underground railroad away from that plantation into a

sense of sensibility. >> brian: colonel allen west on the tour that's finally coming to an end. 24 minutes before the top of the hour. >> gretchen: fox news alert, israel rocked by explosions in an attack near the egyptian border, leaving five people dead and dozens injured. there were consecutive attacks. this passenger bus you're seeing in the video was one of the targets. this rare attack on israel's southern border raising concerns now about egypt's ability to control their side of the fence. >> eric: and david letterman targeted by a jihaddist, threats to cut out the late night show's tongue and break his neck hosted -- posted on a radical islamic web site. the reason? he joked about osama bin laden's lieutenants. the show is on summer hiatus. the f.b.i. says they're taking the threat seriously. >> brian: new york lifeguard day ago line in the sand over

speedos. a 60-year-old says he was a lifeguard in new york for 40 years, but he was forced out after refusing to wear the skimpy trunks for a swim test. now he's suing the state, claiming age discrimination. lester joined us earlier on "fox & friends." >> age representative is basically saying hey, that's a young person's job. you know, young, back in the 50s is a different young than it is now days. >> brian: he says he tried to wear bike shorts instead of the speedos, but it made no difference. meanwhile -- >> eric: september 11 of this year will not only mark the tenth anniversary of that tragic day, but it will also mark the start of the nfl season and as people from across the country remember that day, they will unite under a common sunday tradition. >> gretchen: you're talking football. >> eric: eli manning, quarterback for the new york giants will be playing the redskins in dc where they'll

honor families affected by the attacks. >> brian: well cock. first off, your memory of 9-11 as quarterback with the new york giants, this isn't just something that affects america. it affected you guys directly. at practice, looking at the world where the world trade center stood, seeing the smoke. >> yeah. obviously i wasn't here at the time when that happened. i wasn't playing for the giants. i was still in college. but recently when i became a giants player talking to the guys who were used to practicing and seeing the world trade center right there and all of a sudden they go back and it's not there. so it's still vivid in their memories and obviously once i came to new york, you know, it became an even bigger deal. i knew it was a terrible thing that happened, but when you get around the people who had friends and family who were lost on that day, you know, you

become more affected by it 'cause you meet more people who were more seriously affected than i was. >> gretchen: right. so you're going to be taking on the redskins on september 11 in dc at fed-ex field. eli, you must be so psyched. are you ready for some football? it's back. because a while over the summer, people were concerned they were not going to see this sport this fall. you've also gone on the record to say you think you're as good as tom brady. is that correct or did somebody get your words wrong? >> i think they've kind of ran with my words a little built. the question was if i thought i was a top five quarterback and i said i did. i thought i was an elite quarterback in the nfl. from there, it kind of ran. i never mentioned tom brady in my answer. so obviously it's just preseason right now. no games going on midweek. some people are trying to spark up some controversy and, you know, think of something to talk about. but i thought i answered the question correctly, if someone

asked me that question again, i would give the same answer. >> eric: i'm going to spark a little controversy. half the crew here wears jets jerseys and the other half wears giants jerseys. who is going to win the battle for new york for the record? giants or jets this year? >> well, it should be a great contest. both teams have a lot of talent and again, all we can worry about is going out there and playing each game. the game on our mind right now is the one coming up this monday night versus the chicago bears. and from there, we'll get through our preseason and worry about the game with washington. this year we will play the jets on christmas eve here in new york. so it should be a great contest. >> brian: meanwhile, you're also saying going against the quarterback in rex grossman who predicted he would win the nfc east. do you have an answer for him? >> no. i don't have an answer. all these answers will be discovered on the field.

so you can do all the talking you want. it's all about going out there, competing week in and week out, giving your team a chance to win these games. we're working hard right now. we're getting ready and we've had a great training camp so far. but we still got work to do. we still got some time left to improve our skills even more. and get ready for that opening game. >> gretchen: your brother, payton, making headlines this morning, highest paid football player ever, $90 million. apparently he's gog have enough cash to buy direct tv's nfl ticket. >> yeah. the only way to see every game every sunday all in hd. some of the packages now, the game mix where you can see eight games all on the screen at the same time or if you miss a game, you can go back and with short cuts watch the game in 30 minutes. it's a great way to keep up with the nfl, even if you're not at home and you're on the run, you can get it on a lot more tablets and devices now. check out directtv.com for more

information. >> gretchen: you know what? it's a great thing because i don't have to drag my husband to like a sports club on sunday, so i can see my vikings play. now i can watch them at home. >> exactly. it's more -- you're up for a displaced fan. if you're a vikings fan, not living in the local market, that's why direct tv is the perfect way to keep up with your favorite team no matter where you live. >> brian: you like it, right? >> yes, i do. >> brian: when you're playing and we can't get tickets, can we go to your house? >> yeah, come on over. but you can only watch the giants. that's the only rule. >> brian: no problem. >> gretchen: thanks for spending time with us this morning. have a great season. >> sure, thanks a lot. >> eric: president obama set to make yet another speech on job creation. i think that's like the ninth or so. but will any of his ideas actually create a job? up next, an economist separates

fact from fiction. >> gretchen: a patriot trying to honor or troops being told to take down the stars and stripes. apparently it makes other business owners feel bad. she'll be here next. the stronger the rapids, the more we loved it. took some wild risks when i was young. but i was still taking a risk with my cholesterol. anyone with high cholesterol may be at increased risk of heart attack. diet and exercise weren't enough for me.

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>> gretchen: optometrist flies the american flag outside her office to honor the brave men and women who risk their lives to protect our freedom. >> brian: now she's being told to take down that flag. in fact, dr. dawn was told if the flag is not removed by monday, it will be removed for her. >> gretchen: she joins us now. good to see you. >> thank you. good to see you, too. >> gretchen: so you open this new optometrist place in a new community and you want to put up the flag. what was the problem with that? >> i don't see a problem with putting up the american flag.

i love america. i'm proud to say i'm an american. i have family that serve in our military. and i think that we should all be proud to be american and we should probably all fly the flag. >> brian: right. the association says you have a problem. you can't do that. we have a few flags that we put up for the complex. but that's not good enough. correct? >> correct. i think that we should take a personal stance and say, i'm an american businesswoman. i love america. and i support our troops. i don't think there should be a problem with that. >> gretchen: here is what their statement is from their lawyer. as is our practice, we do not comment on specific issues as they should be dealt with in the appropriate manner between the parties. two flags are displayed in our office park, placing additional parks in common areas in order to bring greater attention to a particular business is inappropriate. was that your goal, to try and bring more attention to your business by putting the flag up?

>> i don't think that that's the issue here. the issue is that you should be free to fly the american flag. we are in america. >> brian: last question. >> if all the businesses in the corporate centre wish to join me, i would think that would be fantastic. >> brian: really quick, doctor. will you take it down? >> no. i plan to fly the american flag. it stands for freedom and for honesty. it supports our troops and they risk everything for us every day. so this is a small token of our appreciation. >> gretchen: keep us posted because on the 22nd of this month, apparently they're going to take it down for you and charge you for it. so maybe we can rejoin you on that date to see if that happens. thanks for your time today. >> thank you. >> brian: next, president obama laying out some of his ideas to create jobs. will any of them work? an economist runs the numbers for us piece by piece.

>> gretchen: let's see what's on at the top of the hour. >> breaking news on the economy. the jobs numbers out and wall street is bracing for more blood on the streets. it is all about jobs, guys. why karl rove says this is the most fluid republican race he has ever seen. a cancer medication that can cure you. martha and i will see you in ten minutes. i'm more active, i eat right, and i switched to one a day women's active metabolism, a complete women's multivitamin, plus more -- for metabolism support. and that's a change i feel good about. [ female announcer ] from one a day. [ announcer ] who could resist the call... of america's number-one puppy food brand? with dha and essential nutrients alsoound in mother milk. purina puppy chow.

>> gretchen: we all know that the president is on vacation working on these two jobs programs. he's going to give a speech about it in three weeks. but some of the things he's talked about in the past and specifically blaming congress for not doing anything about those things, would they make any difference in helping our economy anyway?

let's go to economist and director of economic policy studies, kevin, 'cause he has the answers. good morning to you. >> good morning. >> gretchen: we've heard a lot of these same speeches when the president was on this jobs tour where he's talking about longer unemployment benefit, for example. in your mind, does that help the economy? >> no. longer unemployment benefits encourage people to stay unemployed longer. right now you can basically stay away from the work force for 99 weeks and get subsidized by the government to do so. the problem with that is that the longer you're out of the work force, the harder it is to get a job again. what we're really doing is making a long-term structural problem by giving people these subsidies to stay out. >> gretchen: a lot of people were excited to find out their payroll tax cut would happen for 2011. now the president saying let's extend that. but is that a positive or negative, because i don't know if that's created any jobs in the last six months? >> we don't see the jobs. the reason is that things like that don't work. milton freedman explained why. but the basic idea is social

security is about bankrupt and so taking money away from it is not a good idea in terms of restoring long-term confidence. the other thing is if you give people a few extra dollars this year, they'll just put it in the bank. >> gretchen: he talked about blaming congress for not passing patent reform legislation. would that help the economy? >> yeah, that's one thing that would help. but it's kind of like plant ago walnut in the backyard so you can have walnuts down the road. it's a investment. right now our patent system is something that's the first to invent is what the legal standard is. that means you and i could invent something cool, have a patent, bring it to market and some other guy said i invent that had ten years ago and we could be in court for ten years. something like it passed the senate and likely pass the house. this is an old idea. but a good one. >> gretchen: what about the free trade deal the president claims that would help boost jobs in this country. true or false? >> no. that's false. free trade is a good idea, but

south korea, the country he's talk being is a tiny country and even if they start buying our stuff, it's not really going to have an effect on jobs in the u.s. >> gretchen: yesterday we got a sneak peek as to what might be included in the president's plan. one thing that was new was that he's talking about giving businesses a tax credit if they actually hire people. is that a good idea? >> yeah. this is an alternative. it's called the emergency contingency plan. it was something that they used during the previous stimulus that was the one pocket that worked. the basic idea is that you let employers take the unemployment insurance and use some of it to hire a new worker and then for the first little bit that the guy is on the job, then the employers get the guy almost for free 'cause he's getting the unemployment. that actually creates some jobs and is a pretty cost effective way to do it. given we spend 200 to 500,000 per job created under the old obama stimulus. this is a good idea. >> gretchen: all right. great to talk with you. kevin, thank you so much for breaking it down for us. appreciate it.

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