>> brian: in 24 hours, dick cheney, in 48, i get to play hours with president bush. live on our show. we begin. i'll be in dallas to kick off this year's version of patriot golf day with the president at the dallas national golf club. patriot golf day rses money that gives scholarships to the children of fallen or wounded troops. >> alisyn: the last time you did it, you didn't embarrass us. >> brian: now the pressure to not do it again. >> steve: see you tomorrow, everybody. bill: great show this morning. fox news alert. record flooding surging in parts of the east with no signs of slowing down. this is video from patterson, new jersey. watch as this family takes on a

rescue. this was a scene repeated over and over again in so many parts of new jersey, new york state and the state of vermont. meanwhile the entire town of fairfield is under lockdown. this used to be a shopping mall. hurricane irene literally washing that out. scenes like these -- this one is passable. be cautious when you drive through there because that can stall your car and ruin all of it. you got the back on? martha: we did. but so many folks did not. it continues in so many areas where nobody thought they would be dealing with this storm. you can see the situation is devastating. you have got nine rivers overflowing their banks across the state of new jersey.

officials are warning they could crest in the next four hours. you have got 600,000 homes still in the dark. >> i'm in shock. i can't believe it, really. bill: the governor, chris christie is warning people in new jersey to boil your water because it may not be safe to drink. rick leventhal is in little falls new jersey. what are you seeing, rick? >> reporter: good morning. we have little falls in front of us and wayne behind us. we are along the passaic river. this is an area that floods when there are heavy rains. but residents say they have never seen it this bad before. you see a lot of vehicles that have been trapped. you see gas station, restaurants, deep in water along the passaic river. there is even a car wash that's

been flooded by this storm. there are hundreds of thousands across the state of knowledge there are without power and five million across 12 states because of all of this runoff from hurricane irene. there are levees breaking including one near trenton. there are transit lines shut down in new jersey and elsewhere because of tracks under water. we have damages estimated from $7 billion to $10 billion. we talked a lot about the coastal flooding and the beaches that are in trouble. now a lot of states are saying our beaches are open. come back for labor day weekend and apparently there are a lot of deals to be had. bill: that damage figure. $7 billion to $10 billion in new jersey alone? >> that's across 11, 12 states. the damage in new jersey is

around $2 billion. this is not encrusted yet. they are still going to have to deal with a lot more. bill: we'll be in touch. little falls, new jersey. rick leventhal is watching the river go by. martha: officials are scrambling to repair another section of the interstate. irene's caused part of that highway to literally crumble where it crosses the rockaway * river. several rivers are hurdling towards their crest levels over the next few days. a lot of folks fearing flooding may be getting it the next hours or next 24 hours. bill: connecticut dealing with extensive damage, too. powerful winds destroying dozens

of homes along the east coast. recovery efforts being hindered by a tremendous number of downed power lines. the power lines go down when the trees go down. there are so many trees that came down with this storm. $750,000 homes and businesses, no power. utility companies say customers don't expect the lights to come on anytime soon. look at that scene. martha: in maine, irene washed away two bridges at the base of sugarloaf mountain. maine's department of transportation says it will rebuild the road with a temporary bridge further upstream for now. >> we are monitoring the bridges all day yesterday, and as the rain persisted the waters came up and it was an extraordinary event. the water overtopped the roadway which is extreme.

>> it took out a tree and went around the corner and got locked up at that bridge down below. martha: this storm is about a tremendous amount of rain and we are seeing the impact of that. 100 thousand homes remain with no power as well. bill: this storm snartd north carolina. there are towns in the state of vermont. that far north completely cut off by flooding. you can see national guard troops working with local relief agencies in several towns to help damaged areas. emergency crews surveying how massive the scope of destruction is in vermont. millions of residents are bracing for more flooding as the rivers surge towards record crests. maria is tracking that for us.

>> portions of eastern north carolina still dealing with flooding. i think a big issue isn't just irene, but also the fact that we have had an above average spring and summer amount of precipitation along parts of the northeast. so the ground was already saturated. then comes along irene bringing incredible amounts of rainfall. 14 inches in north carolina. maryland seeing a foot. and parts of wayne, new jersey, 10.2 inches of rain. you put that on top of a ground that's already saturated and you are looking at extensive flooding. we have warnings along eastern north carolina. new jersey dealing with flooding. as you head inland, vermont, new york had higher elevation. all of that rain about a foot of it falling along the mountains that trickles down into the local rivers and creeks.

that caused a sharp spike in these river levels. we did have an emergency sunday at the gilboa dam. devastating flooding and it will take time for the floodwaters to recede. but we are not expecting any additional flooding. bill: thanks, maria, we'll talk to you again very soon. martha: let's swing around to another topic. business and the economy. we have bad news coming in in the housing market. the closely watched schiller index, we can tell you the home prices declined year over year. stuart varney joins me now. stuart, not a good indicator. >> when you look at the year over year figure, this is not a

good indicator. the case-schiller index looks at the home prices on a moving basis. what that report shows us today is your home in those 20 big city areas is worth about 4.5% less than it was one year ago. that means we are nowhere near the peak in hope prices in '06 and '07. we are down roughly one-third since 2006 and 2007 when home prices peaked. that's a huge drop. we have not seen that since the depression. there is one element of reasonably good news and that is month to month home prices went up a little. from june compared to may they went up 1.1%. that's a modest bright spot in an otherwise gloomy housing report. martha: i guess we have to hold onto that. it will take little increments

to get us out of this hole. as you look over the chart in the coming months if this is significant of anything -- >> reporter: it may be seen that we have a modest rebound that we might be on the other side of the curve as it comes down, maybe we are starting to go up a little bit month to month. but that rebound is by no reasons a sharp rebound would be where near where we were four or five years ago. martha: stuart, thank you very much. good to see you as always. we'll see you and varney and company. bill: the president is on his way to minnesota and he will unveil his jobs plan. the white house press secretary jay carney says the latest proposal in its entirety will help stimulate the economy. >> it will have a measurable impact. if the entirety of his proposals

are passed by congress and signed into law, that impact would be very beneficial to the economy and to employment. bill: so after labor day weekend the white house hopes to get bipartisan support in congress for the plan. his speech comes as his approval ratings on the economy hit an all-time low. martha: we got you started here. there is a will the more going on that we want to get you up to speed on. the united states is set to mark 10 years since september 11. today there is a disturbing new report coming out of the white house that they are urging the worldwide public to remember these attacks are quote not just about us here in the united states. really? we'll have a debate about that. bill: also, that is panic and

fear inside of a cockpit moment after a small plane crashes into a home. in a moment you will see how this played out. martha: unbelievable story coming up. a u.s. marine receives a hero's welcome after being wound in combat. getting a chance to live out one of his biggest dreams, a great story. >> everything. this is probably one of the best days of my life.

martha: the rescuers are still searching for three other men said to be underground. the mine was shut in 2007, but then was reopened without permission earlier this month.

bill: if you have been following the story in alabama, they have a crackdown on immigration on hold. the judge says she needs time to study lawsuits filed by the justice department. it was supposed to go into effect thursday. dan stein, welcome to you. what do you think this means for now? >> we want to applaud what the judge has done here. we have a federal judge saying i'm going to take the time to look over this law. and i'm not going to rush to judgment. so for just about one month i'm going to stay the operation of the law to do a thorough and complete job. we thoroughly expect most of the provisions of the law will survive. but what she is doing is -- there are all these different plaintiffs. the aclu and the obama

administration that attacked the the law. it's not -- there is nothing on the merits here. nothing happened yesterday will determine what happens with this law. bill: when she rules will you win? >> i think we'll win on a number of pro vision. this is a much broader law than the arizona law. but the parts that require local officers to verify legal stat with us the federal government. the e-verify we expect to win. there are provisions within the police state power rules including anti-smuggling and i.d. fraud. there is a provision for taxpayer identification how many illegal aliens are in the schools. we expect most of those to survive. bill: you have said it is

tougher than arizona. let me backtrack a little bit. you allow police officers to arrest anyone they suspect of being an illegal immigrant during a routine traffic stop. that sounds similar to arizona. also in alabama it's a crime to transport or rent to an illegal immigrant housing or automobile. i guess you could interpret the lay that way as well, and it requires schools to report the status of students. why is alabama taking it a step further than what we saw in arizona? >> alabama is trying to set up a program, whereby by statute they are required to provide. president obama and his people do not want immigration laws enforced. bill: anywhere, you don't think.

>> anywhere. they already issued a memo a couple weeks ago saying we are not going to deport anybody unless they are an aggravated felon. they want to play this god-like role of making their own immigration law. they never sued any state that accommodates illegal aliens. so it's not about whether the state's making laws on immigration based on status. it's whether the state is enforcing the immigration laws. bill: if this law stands, how would it make life better for people living in bats who are legal? >> for all americans this administration could be freeing up jobs, providing a tighter labor market, saving scarce benefits for we the people who are entitled to be in the country. bill: some of it many economic. >> and it's the rule of laugh which hold us together as a people. the administration is taking us

down a course of chaos and an oy and wo -- chaos and anarchy. martha: the new healthcare law isn't sitting well with most americans. where do we go from here. bill: also, nasa talking about having to abandon the international space station in why would that be? the future of the space station in the hand of the russians and the future ain't looking so great they say. former astronaut tom jones is here to explain. i love that.

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bill: the little league world series champs are back home in california. they beat the japanese in the finals. the u.s. team has won it six of the last seven years. the city of huntington beach plans to honor the parade at an official parade september 10. those guys will have a blast. signing autographs, taking pictures. well done. martha: congratulations. let's talk about what's going on up in space where we are trying to have a win as well. there are new fears of a posse evacuation at the international space station. nasa says it may need its astronauts to abandon their space outpost after a russian rocket carrying supplies up there blew up last week. >> we prefer not to operate in

that condition for an extended period of time. martha: there are some assumptions we want to talk to tom jones about, former nasa astronaut. tom, always good to see you. when i first heard about this last week that the russians had trouble getting the supply capsule up there and it explode, i thought what does that mean? now that we found ourselves dependent on the russians for getting everything back and forth, including our own folks, two of whom are up there right now. >> the russian freighter launches on a soy u soyus rocke. that booster fleet is ground until the russians complete

their failure investigation. martha: so if you are our american astronauts who are currently up there you are wondering what is going to be my way home and when? >> the good news is this situation isn't bad for the crew. they have two soyuz space graft on home. but they have to return to earth at end of 6 or 7 months. the first crew has to come back by probably the even of october. nasa decided they want to bring the second crew home by november and not risk an knowledge landing in the middle of a siberian blizzard. that leads them to make the decision to leave the space station uncrewed. and there is a rise to be the space station itself. martha: it looks like we can get the people who are there home.

the question is whether you can put new scientists, astronauts up there. what happens to the space station if you can't? >> we are exposing the space station to extra risk with this russian failure. if it's not quickly repaired. it means if there is a serious failure onboard the station then our $100 billion outpost may be tripled or damaged or lost to us if there is a serious failure. two years ago we had a coolant failure onboard the space station. astronauts living there were able to put in a replacement pump with a space walk. without a crew of we could damage the space station's vital systems. martha: everybody wondered when we didn't have our shuttle program anymore. we'll be watching this one very closely with your help, sir. bill: we talked about this. this is another water rescue,

patser on, new jersey. i think what is it, tuesday now? a storm came through on late saturday into sunday? do i have the time right on that. so that sunday, that's monday and tuesday they are getting what little bit of relief to get out of their house and homes. we watched a rescue about an hour ago, here is another one undergoing now. it doesn't look like the water is too deep. it's hard to see on this camera perspective. and perhaps the cars might be under water. i'm not sure if that's a man or woman or child or teenager or adult. they are safe and a lot better now. >> they had no idea they would have to deal with any of this and we are not publicly prepared for it. we'll keep an eye on the folks there. in the meantime we have this story coming up. it is a day that america and americans will never forget.

and they are announcing new reports that the white house put out papers on how to frame the discussions surrounding this 10-year commemoration which is coming up. they want the attacks to be remembered as not just about us, but about the larger world as well. a fair and balanced debate on that big subject coming up. >> eventually september 11 will be a date on the calendar like pearl harbor day. for those of us who lived through it, it will be a day we'll never forget. tis brown ] america is facing some tough challenges right now. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands ojobs. at our kearl project in canada, we'll be able to produce these oil sands

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martha: this is getting a lot of attention. there are new reports how the white house plans to honor the memory of the 9/11 attacks. the obama administration is urging the world to remember that attacks are quote not just about us. according to part of the men offs obtained by the "new york times," this is what they said. we need to make sure we are speaking to a broad set of audience who will be affected by the anniversary. rich lowry is editor of the national review. right before we started this segment when went to the last commercial break we showed a clip of president bush talking

about september 11. he said years will pass and it will become for so many people like pearl harbor. a faint memory to which they cannot ascriebt emotion of that day. he says for those of us who were there, we'll never forget. it's about making sure we preserve the memory of what happened that day and who was attacked that day and what it means for our country which is a significant thing to remember, i believe. bob, when you look at these memos, what is the message you are getting from them? >> i don't see what's controversial about it. i think people from 10, 15, 20 different countries died in that attack. al qaeda had attacked around the world. i think the idea of saying it's not just about us alone, there is something to be said about the war and terror. i think it's the right tone. certainly it's something we'll never forget. my kids who were 6 and 7 sort of lost their innocence.

having said that, i may be careful how i put this. we'll never forget that day, about it was 10 years ago and we are still i think frankly going a little bit too far when in my hometown of washington i have glass walls around every memorial. i think we have to move on. >> this statement that these attacks weren't just about us reamy sticks in my craw. they could have knocked down some tall buildings elsewhere. they wanted to do it here because it is a symbol of america. if we are going to forget that, we have forgotten the corp of what this attack was about. martha: let many take a look at another quote from this piece. it says the important theme is to show the world how much we realize 9/11 weren't attacks themselves and violent

extremeism is not just about us to describe the internal white house planning. there are some folks who were down there, firefighters and people involved in this whole memorial who feel that there has been an attempt to broaden it out. they wanted to make it a cultural center at the memorial. it used to be called the freedom tower, it's no longer called the freedom tower. michael judge and the fire captain, their names will be michael judge. the reason they are there that day would be exonerated and removed from the memory. there is a big concern that we are trying to sort of make the whole thing a little bit generic. what's wrong with remembering it. what really happened that day? what many the problem with that? >> i don't think there is any problem at all. they went after the world trade centers. there was a reason for that. they were trying to send a

message to the worldwide capitalist system. but you could have it seems to me a new york mow memorial where you make this an event that was so distinguished and unique to new york and maintain that. i could understand that. or you are trying to make a point about it that has a broader implication for people around the country and around the world. i think it's a fine line to run. but i'll say this. why anybody would release a memo like that is beyond me. martha: there is also a suggestion that bin laden was captured so we want to deemphasize al qaeda in this memorial. when you look at the holocaust do you want to deemphasize hitler because he no longer exists. when you talk about pearl harbor you don't want to talk about difficulties in the world. you want them to understand why pearl harbor was attacked.

this lack of specificity is problematic. >> this was not a world symbol. it was in lower manhattan in the united states of america and they wanted to attack it for that reason. there are other worlds assembled around the world they could hit, they didn't. they came here for a specific reason. sure they hit lots of other countries. but those countries are poor substitutes for attacking america which they would do today if they could. if they had a choice between attacking bali and manhattan again, they would take manhattan again. they haven't been able to because we responded so vigorously to these attacks. which is another thing we are forgetting. >> i'm not denying this was directed to the united states. what i'm sucking is al qaeda is a much degraded organization than it was then. >> absolutely because we hit them. >> that's right.

>> we could argue about the patriot act. martha: we'll leave that up to thup tothe the "five." a pilot in santa monica, california, lucky to be alive after plowing his cessna into a home after takeoff. some of the images you might find and the sound have graphic. but the dramatic rescue was caught on camera. watch. >> we got to get you out of here.

>> you are almost there, you are okay. bill: thank goodness there were people there to save him. david lee miller is in our newsroom. what more are we learning about this? >> some ordinary men faced an extraordinary situation yesterday and they became heroes. the pilot has not been identified. he took off yesterday from santa monica airport. he was flying a single engine cessna. the plane was rented from a flight school. there were problems at takeoff. he tried to land and it hit a cinder blockhouse. there was and small fire. luckily some painters work on that home grabbed a garden hose then those painters helped remove the pilot from the

cockpit. the scene was captured on cell phone video. >> they are coming. they are coming. just rest. just lay down. just lay down. just lay down. don't worry. >> reporter: the pilot only suffered a broken leg. he was taken to a nearby hospital. one of the painters suffered kuts and bruises. the faa and ntsb are vest getting wehat. but this is -- they are investigating. but this is a miracle no one was killed. bill: david lee miller on that story. martha: it was remarkable. good job on their part. let's take a look at what's going on on wall street as the markets opened up -- there we go. up 43 points.

possibly reacting to those housing numbers. the month to month number was higher. the overall year to year number is lower. yesterday a nice day. up 264 points yesterday. bill: a late summer rally. brand-new polling numbers on the new healthcare law. what americans are saying about it, and whether americans want the law to stand. that's next. [ grandma ] why do relationships matter?

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bill: a brand-new poll about americans showing concerns about the healthcare overhaul law. a survey shows a rising number of people think it's a bad idea. 46% strongly favor a repeal of the healthcare bill. what about this now? republican congressman -- i should point out 57% favor repeal of the healthcare law, part of it. the 46% are strongly favoring a repeal. what do you think is going on with this right now? are people learning more about it? are they gravitating toward it or pushing themselves away from it? >> nancy pelosi speaker of the house at the time said people would have to read the bill and after we pass it they will start liking it.

this 57%, it's been from the 60% range since march 24 of 2010, the day after the senate rammed it through under rules nobody could understand called reconciliation. the american people thought particularly in massachusetts when they elected scott brown as a 41st vote to block cloture, that that would be the even of this just as weed killed hillary-care. but the democrats persisted and rammed through this bill and it remains unpopular. bill: here is what the other survey said. 54 per think the states should have the option to opt out. but this number surprises me. this number was 79% early november. about whether the issue of healthcare is important to them

when it comes to voting in 2012. that number has dropped from 79% to 65%. what would explain that, do you believe? >> i'm not sure, bill. but i think you know mitt romney, one of our candidates on the republican side, has said one of the first things he will do maybe the day he's inaugurated, he will grant waivers to all 50 states allowing hem to opt out. this would be in through of an absolute outright repeal of obama-care. the supreme court will probably get this case in their upcoming session, i belief that begins in october. they will make a decision on whether or not that section that requires individuals maybe against their will not always to have health insurance, but to have policy or plans prescribed by the federal government. i think it's unconstitutional.

bill: that brings us to money. everything in washington now is about the budget. how much you are cutting. but the healthcare costs in america today are just going up higher and higher and higher. so if you get rid of this law, what do we do then? >> well, bill, you are right, one out of every $5 of the federal government is spent on one of these healthcare programs, medicare and medicaid. pretty soon 20% of the gdp will be spent on healthcare. but the whole point was when this new entitlement program that has nothing to do with the very poor, it has nothing to do with the disabled or the elderly, it is entirely new program costing $2.6 trillion and quite honest live we can't afford the programs that we have got. we have to figure out a way to make those programs viable and sustainable for future

generations. so i say the group of 12, the special commission as they look to cut another $1.5 trillion, they could do it in one fell swoop by repealing obama-care which they have already common the house. so i'm in favor of that. bill: enjoy the rest of your summer. we'll speak again after labor day. martha? martha: we have breaking news on a search for missing hikers on a mountain in california. we'll have details on that after the break. plus a simple screening that could save lives from breast cancer. very important information. what you need to know. woman: downloading music can be expensive.

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bill: this is southern

california 44 miles east of the downtown l.a. three men set out on a hike monday morning. they have not been seen or heard from since. one of the men is said to be an experienced hiker and authorities have located two of their vehicles. so they know where they started but they do not know where they are now. the aerial picture gives you an idea what that terrain is down below. martha: we have this to talk about as well. there is new research on breast cancer that could help predict a come and's risk of getting the disease. according to the study mutations in a woman's genes. one in eight women will get breast cancer. we did a poll in this study and it's about the check 2 gene.

>> the women who had cancer were three times more likely of having this gene. and when we asked did your mother or sister have breast cancer, it went up 50%. only about 50% to 60% go for a mammogram each year. we could focus or energies to get those women into screening. martha: my mother and sister are both breast cancer survivors. we have known about the gene -- you get tests for that. what's the difference and how much more does this gene tell us. >> these genes are not in the women with braca genes. this was found in 7,500 polish women in this study. people say how do you know if it's the same gene poll.

martha: what is the screening like? >> you go in and get a blood test. martha: if you are positive for this gene, how does it change your plan? >> some women would get a mastectomy. then you avoid any risk of breast cancer. but we can get women into mammograms at an earlier age. we can do mris every year. and medications that will stop the breast cancer. martha: get screened if you are in the situation. >> any woman with mother and sister ... bill: dangerous flooding in new york, new jersey, vermont, massachusetts, you pick them. some people trapped in their homes. thousands of others cannot go back. we'll show what you they are dealing with in only moments here. the presidential race is revving up. rick perry's numbers are surging.

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martha: here we go again. fox news alert with floodwaters we have been watching, they are now flowing downstream to the atlantic ocean. so you have scenes like this in vermont. jamaica vermont, the famous ski places around the rutland area. parts of massachusetts and connecticut in the danger zone. small creeks swelling to the points of bursting their banks. they are filled with these fast-moving rapids. good morning, everybody. i'm martha maccallum. bill: i'm bill hemmer. nearly all low-lying areas along the northeast seeing some degree of flooding. people living along the shoreline inundated with five feet of muddy water in places.

>> piece by piece as it was falling apart on the patio, you are watching it destroying itself right in front of your eyes. >> we can say it's just stuff, but we can say that because it's not our stuff. when it's your home, it's a different scenario. martha: she is so right about that. thousands of homes have been destroyed. people watch their stuff floating away. millions of people don't have power. which is no fun at all. adam housely joins us outside of springfield, massachusetts. >> reporter: some of that stuff floating away. i'm not sure if we can get that before it gets past the tree. but there is a propane tank floating down the river. this river is up significantly. we are told there are flood warnings all the way down the connecticut river. if you were to draw a line from the middle of vermont down through western massachusetts

into connecticut and out into the long island sound, that's where the connecticut river runs. this is flowing down it right now. it's going at a pretty good clip. secondly it's full of junk. we have seen all kind of stuff flowing downstream. this stuff coming from those flash floods that hit vermont and parts of massachusetts. they washed out roads to several small communities. we are told the good news is the water is going down in those areas. it's now flown into big rivers like this, like the connecticut river. and that's where the communities downstream are bracing for the possibility of flooding. but so part waters stayed below flood stage and the people had a chance to repair. that's the big difference. you talk to people downstream and we'll tell you why a few of them have evacuated. at least they had a chance to evacuate. which is different than what we saw with the flash flooding to

our north. we have been told somewhere in the neighborhood of 263 roads and bridges have been damaged or destroyed from the storm, including four iconic covered bridges that new england is so famous for. martha: that was very sad to see those go. obviously they are just wood and timber and put together, but they had a lot of meaning for the people in the areas. it's bittersweet on top of everything else they suffered. thank you very much. bill: we'll get early estimates on the damage from that i willer storm. very early preliminary numbers. new jersey ball parking its economic losses. new york just about $2 billion. connecticut so far predicting $282 million in damage. so many in connecticut still without power. fewer than half of those number are losses that were insured. the numbers also expected to increase significantly as we move through the week and reveal

everything. martha: forecasters are watching another storm that is moving fairly quickly across the atlantic now. it is tropical storm katya. it's west-southwest of the cape verde islands. it's expected to approach hurricane strength by wednesday or thursday. too early to tell if this will have any threat value for the united states. as for the storm's name katia replaces katrina in the rotating storm roster the name was retired after the 2005 hurricane. katrina that devastated new orleans. we hope katia is not the little sister. bill: presidential candidate texas governor rick perry pulling in huge numbers over mitt romney. perry taking in 27% to romney's 14%. it nearly doubled for perry.

this is as romney convenient tiewrs onto perry's turf to address the vfw convention in and antonio, texas. it is said these guys don't like each other, is that true? >> reporter: shocking two candidates might have some disagreements over the years. we'll see a little bit of that today. yesterday with governor perry talking to the vfw he made headlines saying he didn't think the u.s. should fall under a foreign policy of adventureism or take its cues from a debating society. today we'll hear from mitt romney at the vfw. because it's in san antonio in rick perry's backyard you can expect lots of contrasts. the latest poll has berry way ahead. 27% over mitt romney.

sarah palin comes in at 10% and road you havey giuliani who isn't a candidate at 9%. if you take palin and giuliani out of that occasion, perry jumps up to 32%. but they are in a two-person race. bill: you are safe calling it a two-person race at this point? >> reporter: you can't go by the polls. if you compare what happened with hillary and obama. john mccain was considered a nonexistent candidate and he ended up winning the nomination. it's rapidly emerging in terms of money, headline command and the first of the nation voters view them, perry and romney are at the top of the race. this business of them not getting along, they are both

substantial republican politicians. they have been in the same room and had arguments before yet they are both pros. they will be able to be civil and cordial. bill: we'll wait for romney's message when he's in texas next. we have more on what the latest numbers might mean when we talk with former rnc chair ed gillespie under president bush. martha: let many go back to this issue of libya. moammar qaddafi is on the run right now. no one seems to know where he is. his wife and three children managed to escape. they are act border in algeria. meanwhile rebels are pushing towards qaddafi's hometown of sirte. it's a haven for qaddafi loyalists. but rebels take on two of qaddafi's men. there are new reports they are

giving them an ultimatum. dominic, what's the latest on the qaddafi family and what we can expect in sirte? >> reporter: qaddafi has been spotted at long last apparently seen south of the city. he was here in the city for a meeting. this according to sky news in the u.k. the source is the body guard one of qaddafi's sons. apparently killed in a nato helicopter air strike in a land cruiser. we are not sure where he has gone since then. but that many where he was last seen. first time he has been spotted in well over a week. we are hearing about him being in the center of the city. but now it appears he's head out of there. back to his wife. she crossed over with three of their children. she is the second wife of qaddafi. she is a multi-billion air. $30 billion. she owns an airline. she met him back in the 70s.

algeria is giving them refuge, giving them passage. we speck they will move on to a third country. but the national transitional council say algeria allowing them passage is an enemy act that will make thing here more tense. martha: tripoli we watched fall from qaddafi's 42-year grasp in a matter of days once the chips began to fall. what is the security situation like there now? >> we have seen behind me, the free-flowing traffic. it's a modest kind of vol in days. the fasting period ramadan is about to come to an end. they are shopping for food supplies. so the sense of normality resuming, but what will happen when citizens are forced to come

out. we don't have confidence the rebels can maintain security here. martha: thank you very much. bill: former vice president dick cheney speak out about his new blockbuster book. what he's saying about waterboarding. martha: scrounging the bottom of the barrel in search of funding for disaster aid. the feds may have to divert money from one catastrophy to another. ron paul says fema has the reputation of any bureaucracy. >> we condition our people that fema will take care of us and everything will be okay. but you try to make these programs work the best you can. but you can't just keep saying, they need money. we are out of money.

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martha: not a lot of good news fort market. consumer confidence dropped toss it lowest level since april 2009. that goes along with the overall housing picture. that puts the dow down 73 points right now. bill: some good news on that. fema is facing cash flow problems as it works to help victims of hurricane irene. the agency says the fund are running low and its solution? diverting fund headed for joplin, missouri where a massive twister destroyed parts of that city in may. ron paul says fema is a waste of money. >> we are out of money. this country is bankrupt. this idea that a bleeding heart will say we have to take care of

them. the whole idea of fema is a gross distortion of insurance. fema creates many of our problems. they sell the insurance because you can't buy it from a private company. which means there is a lot of danger. bill: that was fox news sunday. he went on from there. the former fema director michael brown, you remember him from the days of katrina. good morning to you. what about ron palms comment? fema creates many of our problems. >> he's partially right in the sense that the country is broke. there is only a limited amount of cash available to spend on these projects. what fema is done is something fema has done throughout its budget kri is, to say with an accounting mechanism we are not going to spend money on long-term projects that we might not have to write a check for for a year or two. but instead will write checks

for things we have to pay today. but the problem is, dr. paul will get this directly. fema has these problems every single year. as long as we have the flood insurance program and continue to give out more and in more money through these disaster programs we'll continue to face these problems. bill: now with the budget so strained and a deficit running 14-plus trillion dollars, a focus in washington's change, it's been put on a tether 18. >> degrees. eric cantor is with us yesterday. what he's say can is if you want to give my district money, fine. if we need fit because of a disaster. but go ahead and cut spending elsewhere. i want to play a clip from yesterday with martha. >> we'll find the money if there is a need for additional monies. if you where we are, martha, is those moneys are not unlimited. and what we always said is we

offset that which has already been funded. bill: now is that an opinion that will fly in washington or is that just one guy making his own case? >> that's an opinion that is going to hit the brick wall of reality. we don't have any money. let's say fema needs an additional $1 billion. 42 cents of every dollar that they give fema will have to be borrowed. so we have to start making these choices. let's put it this way. let's say there is a tsunami in japan and japan says to the united states state department, we want you to send some urban search and rescue teams over. who is going to pay for that. we don't have the money to do it. we have to make hard decisions facing the fiscal reality that the country is broke. bill: in the meantime jokes in joplin, missouri are not happy about this. the fatalities in that town, the what it was devastated. what did you think of the public

officials' reaction before irene came onshore? >> two points. i think the reaction prior to irene hitting new york, washington, any of the places in the upper northeast correct. they gave the proper warning, they told people what to do. but what government official.failed to do was deescalate that once it became apparent the eyewall was collapsing and irene was losing power and strengths. then they should have said it's losing strengths, you may be able to move back. but the american people have to understand government officials post-katrina will be scared not to give those warnings. at the same time citizens have to his temperature closely and may attention to what's actually happening. bill: if you make that audible in mid-storm, you know what these guys are thinking. they are thinking about, i have still got to cover my rear on

this. you mention katrina. do you think katrina changed the reaction forever on these storms? >> absolutely. now you will have governor christy, you will have bloomberg and governor purdue and the others saying our advice is you must have wait and stay out of these low-lying areas. it's factually correct advice and good advice. but they have to understand the reality is the storm has lost strength and those warnings maybe aren't quite as necessary. let's have an honest conversation between government and the public about what's really occurring on the ground. it goes for the media, too. bill: i would agree with that. we are all in this together. we share the responsibility. but it's the public officials who lead. when they come out and make big statements. the media companies react. when michael bloomberg said people living in sky rises in new york whether watch it because the windows could blow

out, how do you think we'll react to that? >> you need to come back. when the storm dissipates in new york city, you need to say here is what's happening now. it appears to be safe. bill: on the next disaster we'll call back on you and see where we are with the budget constraints and fema and where we spend our dollars most appropriate. mike brown in denver, colorado. martha: the great irony is what they didn't do is they weren't nimble. the skyscrapers are not going to blow out windows in manhattan. but folks need to evacuate where the waters are rising. people got hit like it was coming out of nowhere. the same onus is on them to be flexible and honest about where it's heading next. that's something to think about as well. let's talk about the unemployment rate which we know the country is suffering from dramatically. why are some employers having a tough time finding workers?

that's what we are hearing. bill: a judge sentencing a mother convicted of child abus for using hot sauce and cold showers to discipline her son. justice served? >> it was not a spur of the moment thing. it's something the evidence indicates she had been thinking about for two years.

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bill: 24 minutes past the hour. former strp dick cheney defending waterboarding. cheney's promoting a new book called "in my time." a health scare. 2,400 patients may have been

exposed to hiv or hepatitis. a former worker used twices with insulin and blood improperly. a british army captain coming to -- prince harry coming to military bases in california this fall. it will be a quick trip. martha: finding all kinds of reasons to go to arizona and california this fall. i guarantee it. here is a bizarre twist. with so many people struggling to find a job in this country, some companies are saying we are having a hard time finding workers to fill the jobs that we have. the unemployment rate is just over 9%. so what's up with that. >> reporter: what is up with

that? what a surprise. according to the man power group. 52% of american companies have mission critical jobs they can't fill. many of those jobs are in a booming sector of the american economy, manufacturing. but this is not your dad's assembly line. >> our problem is we are growing like crazy. >> reporter: how off down hear that these days, particularly in inch. the help wanted sign as been out for a year. despite generous benefits. it has 200 jobs it can't fill. >> this is a great place to build a career. every one of our employees get stock options. >> reporter: the same story in skills like tool make at mgs. and they are looking for more. >> it's so difficult if we came

across the right candidates whether we had an opening or not we would take them. >> reporter: both are in hight-tech manufacturing. gentex makes smart rearview mirrors. both have seen explosive growth. so why can't they finds people to fill jobs? because not enough young people are learning the new skill sets needed for 21st century manufacturing. jeff is ceo of the manpower group. >> technical schools have great earnings capabilities. but the young people aren't going there. >> why aren't they going there? because of a stigma aassociated with manufacturing. >> i think people grow you have, when you go home and talk to mom and dad and say i'm going to work in manufacturing. they are going, i can't finds a veal job? bill: people who do earn a trade have real opportunities. a technical college we visited

in wisconsin. 95% of their graduates go into jobs. skilled trades. sales representatives, engineers, drivers and accounting and finance staff. thinking about a new career? martha: that many fascinating. it's not a surprise to me. but there has bench of a push and there are a lot of great job opportunities outside of that. it's a great report within john, very valuable to a lot of people. thank you so much. john roberts. bill: the future of the economy here in america. they are the top leading candidates for the presidency. the republican nomination. but one new poll shows perry and romney flip-flopped in the number one position. martha: new jersey seeing extensive damage from irene.

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entire towns in the garden state are now closed. it's the water state. people are still being rescued from their homes. we've watched that earlier today. this is patterson, new jersey on your screen. wide skrefps o stretches of suburbs without water. anthony man is on the phone with us. are you there, sir. >> yes, i am. bill: what are you dealing with today. >> floodwaters that are just starting to level out we have secured our town with checkpoints at three locations, stopping any traffic other than residential traffic. bill: are you rest kwaou rescuing people from their homes, from rooftops. >> it's not roof tops. this is probably the most expensive flooding i've ever seen in fairfield and i've lived here my whole life.

people who normally did not see floodwaters saw them this time. we've had great help from the marine unit. bill: how do they communicate with you. >> that's it. cellphone ability. most of the power, as far as phones go they are no longer working in those affected areas. bill: you're thinking how much longer before there is any sense of normalcy. >> that's going to be sustained for a while. it's just cresting now and that should sustain at least into wednesday, thursday before we even see some relief down to what was the old record flooding. bill: you have another week of this then, don't you. >> this week will be rescue and keeping the town stabilized. next week will be cleanup and assisting the residents. bill: what rivers are there and what are the peak. >> the passack river is the slowest to crest and that is just cresting now.

it takes a little while to feed out and get to the pay. bill: fairfield is in the middle of it. >> that's correct. bill: the worst flooding you've ever seen. >> 27 years as a police officer and 47 on this earth this is the worst i've seen in fairfield. bill: good luck to you out there. >> thank you. martha: gop nomination politics now. he may have been a little bit later to the party, but today rick perry i the life of the republican party according to one new poll out there. the governor of text is leading the gop pack in this case for the nomination. he has surpassed former massachusetts governor mitt romney now. rick perry as 27 perfected over romney's 14%. that is a stuff number. joining me now ised gillespie,

former counselor to george w. bush. always good to see you. >> thanks for having me on. martha: when you look at this situation and you're mitt romney do you feel like things aren't going your way right now, and why? >> governor romney will have to adopt to governor per lee coming into the race. everyone new he would be a formidable challenger for the republican party mom nation. you'll see mitt romney adapt to that fact. rick perry made a strong interest, he has a strong appeal to strong republican voters. i'm sure mitt romney and others are keeping a look on the statewide polls. more important right now than how they are doing nationwide. governor hropl knegovernor romney is going to have to adapt to governor perry being in the race. martha: there have been a lot of stories about them not getting

along too well. when mitt romney was raining perry didn't endorse anybody, and when he did he went to john mccain. there is also the governor's association with mitt romney bringing somebody on board that was actively working to unseat rick perry and they've had some heated words in the past, have they not. >> i don't know about her personal feelings. the fact is they are going after the same surprise which is the coveted price. you have president obama below 40% for the average of a week last week looking very, very vulnerable. whoever the republican nominee better than odds favorite to be the next president. it's going to be a spirited contest whether it's with governor romney, or rick perry or rick santorum or michelle bachmann. they are going to pursue this

nomination pretty seriously. martha: there was talk about rick perry's inch atlantic. here is a quote, another texas governor who drops his gs and skoerpbsee hraoets is running for president and the whispers are the same, lightweight, incur just, instinct you'll, he's like bush only without the brains says one former republican governor who declined to be attributed to in that quote. what do you make about that whole discussion,ed. >> poe liwashington insiders are going to be a lot less important if rick perry gets elected than they are in the obama white house. he has people who can tell us what kind of cars we can drive, what kind of food we can eat, what kind of hraoeult bul b s we should have, what kind of medical care we should carry. that makes washington citizens feel more important. it reflects a classic elitist

attitude. when you have a conservative running for present they are dismissed as they must not be smart because they don't under how smart we are. it was true with ronald reagan, and president bush. and now it's becom being applied to rick perry. president obama's policies clear he are not working. we have 2.5 million americans who have lost their jobs under this administration where as in texas they have been creating jobs. classic politico, oh, inside the beltway he can't be all that smart. martha: smart is duff rent to different people. in that same piece it also said anybody who under estimates rick perry makes a big mistake. we are a long, long way from figuring out who the gop nominee will be. we'll take a close look along the way at both sides.

ed, thank you for coming in, always good to see you. bill: terrific story here now. after he was wounded in combat a 21-year-old marine gets a heros welcome and fulfills a childhood dream. just watch this. [music playing] bill: i give him a strike on that, right, throwing out the first peach of the cleveland indians home game, he lost his left leg in afghanistan when his vehicle hit an ied. >> i don't remember it at all. i blacked out for a week. bill: he describes his pitch as one of the best days of his entire life. i hope the indians won the ball game for him. he deserves it. martha: i think he did a little better than you did. [laughter] bill: mine was right down the middle.

mine was right there. i mean corey, bravo. martha: well done. let's take a look at this story that is very disturbing. the hunt is on for a killer in yellow stone national park. this one could be very tough to catch, while rangers are searching form a grizzly bear, plus this. >> we've been having a lot of problems. it will stay in the bathroom, so it's handy when we need it. i am at the end of my rope. >> you are to do what you are told. bill: she did controversial things to discipline her son that got a lot of unwanted attention. today the sentence for a mother whose story was told on national television. >> i feel that it's my most important job to love, care for, nurture, and teach my children. i tried to do that every single

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bill: there is an active hunt for a bear in yellow stone park who fatally mauled a haoubger. two other hikers discovered the 59-year-old victim's body on the mary mountain path. they will use dna collected from the scene to try and identify the grizzly. >> we have traps set in the area. if we capture there and we can positively identify the bear as the bear that attacked the individual, that bear will be euthanized. bill: it is a beautiful part of the country. this is the second bear attack there in a short period of time. martha: probation is what the decision is for a mother who disciplined her son with hot

sauce and cold showers. >> don't spit it. >> it had no effect so we went to hot sauce. we were having a lot of problems. it will stay in the bathroom so it's handy when we need it. martha: she videotaped attempting to control her defiant child, all part of a plea to dr. phil for some help. she was convicted of child abuse, then the judge suspended the sentence of 180 days in jail and a $2,500 fine. >> the crime here of child abuse was not done on a lark, it was not a spur of the moment thing, it's something that the evidence indicates you've been thinking about for two years, you just weren't sure how to do it. martha: we have a criminal defense attorney who joins me now. this is bizarre. you go first, tamara, what do you think? >> reporter: i think that this sentence that she was found guilty of child abuse is absolutely ridiculous. here is a mother who was trying to discipline her child. there is no sign of physical

abuse, it's not like the kid was going to school with bruises on his legs or anything like that. it's the same thing as when my parents washed my mouth out with soap. i think that the three years probation, and a jail sentence, even though it was stayed, if she violates anything she'll be sent to jail is really harsh and sets a terrible precedent. martha: whaoer is when i think. when you take a step back and look at the situation what really caught my eye in the story is a quote from her husband, who is an anchorage police officer. he said we just ended up getting wrapped up in television and we had no idea where it would with end up. that's what i see here. i see a family that maybe thought it would be great to get on dr. phil. and god bless them, they have adopted children, children of their own, children with special needs, a lot going on in that house. i'm wondering if the motivation wasn't sort of a moment on tv, and does that not say something

about our whole society and the kind of stuff that we would do to get on tv? >> reporter: sure, you know, you think about the balloon boy a couple of years ago, that's kind of the same thing. here is a dad whose kid hopped into a balloon that went flying off across col. it's the same kind of thing. people want their 15 minutes of fame. but she was convicted of child abuse. so now if somebody hears at the school that a kid was disciplined in a certain way the teacher now has a duty to report that kid or those parents to department of family services? martha: you're already saying that this child got picked on at school not because of that but because his mother was on tv making him drink hot sauce. you may say that this child has not suffered any physical bruises, but i say there is an issue here. when this family is going to these lengths to get on television, obviously they are having some problems disciplining their child, i know that, that can be a very

difficult situation. but to go to these lengths. i mean who puts hot sauce down a chilled's mouth? i think the judge looked at the situation and said i'm going to give you 180 days and a 2,500 dollars fine. then he scrapped both of it. he's trying to get through to her that she has to get her priorities straight and then he did none of that. >> one of my cousins used to sit in time out. he was terrible, he was a little hellion. everybody does different things to their children. i don't think it's the parent or government who should decide what is wrong or right unless there is clear abuse. kids go to school every day hungry because their parents are too lazy to field them. martha: i hear you, i don't think anybody wants to see this kind of thing in court. they put themselves into the public forum and that's how they ended up in court. this is a somewhat unusual case.

hot sauce and cold showers, it doesn't look like it's getting anybody anywhere. i think the judge basically made a judgment about the family needs to take a look at how things are handled and think twice before the next time. tamara -- we are all doing the best we can. >> i don't have kids. martha: thank you very much. tamara holder. bill: after a while the hot sauce dissolves into your mouth and it doesn't taste like much. martha: hot sauce. bill: after a while. jenna lee is coming up next. how are you doing. jenna: quite a lead in bill. the president is finalizing his new jobs plan. a sneak peak into the details and how that is going to work. are pilots for getting how to fly? we'll take a closer look at cruise control in the sky. in less than 20 years one out of two of us will be obese, hot sauce or not. this is on the same week that another study says chocolate is really good for you. it's exhausting to try to figure this out, bill, we'll try to

make sense of it. bill: it sure is and it's almost lunchtime. the battles between unions in the wisconsin state government making its way into a parade. who the unions are trying to prevent from marching down main street monday, labor day. [chanting]

bill: the budget woes in california run deep. they have dozens of state parks on the chopping block. 70 parks. at an estimated savings of $11 million a year. how do you shutter a state park and what do you do witness. claudia cowan is streaming live at a park in marin county california with what would happen there. hello claudia. >> good morning, bill we are out

at china camp a half hour from downtown san francisco. an urban oasis for hikers, bikers and serenity seekers. maybe not for much longer. this is one of the 70 parks slated to close to save $22 million over the next ten years as california, you know, tries to cut costs wherever it can. in this case by shut erring historical sites like the old governor's mansion up in sacramento, as well as beaches and lakes, even forest and deserts. by law the state cannot sell the pafrpblgt it's trying to figure out how to keep them over, maybe by working with volunteer caretakers or getting financing through corporate sponsor ships. a bill would allow the them to team up to run the day-to-day operations. unless something happens soon china camp will be closed for next summer and for many californians, myself included,

that will be very disappointing. bill: we'll see how california manages all of this. live in marin county. martha: breaking news coming in. william la jeunesse who has been covering the fast and furious story, which was the movement of guns across the border from the united states into mexico and it was ostensibly supposed to help them track down cartels on the other side and illegals in acts using the same guns, now we're learning according to sources of william la jeunesse that the acting atf director, ken ept nelson, he has taken a lot of heat for this. will be reassigned in the department of justice. this is just the latest in movement of a lot of people involved in this. he'll update us as we get more.

martha: big news out of the fast and