we took down the libya program, the aircraft program, we took -- the iraq program. >> mr. vice president, thank you so much for your time. >> that is all the time we have left. make sure to tune in thursday night, 9:00 p.m. eastern for my second interview with vice president dick cheney. we'll talk about topics we didn't get to tonight such as the iraq war, valerie plame, scooter libby. thank you for being with us. >> tornado warnings in effect for louisiana, mississippi and the city of new orleans. before this storm is through, it could drop nearly two feet of rain. >> that's a lot of rain out

there. welcome to a brand-new hour inside america's news headquarters. we're seeing power outages impacting tens of thousands and mandatory evacuation orders for low-lying parts of new orleans. we're live in the fox extreme weather center with more details about tropical storm lee. >> we are tracking lee, tropical storm lee which at the last advisory, the center of it had actually stalled. we're not looking at any movement from the storm system. that's the reason why we're expecting to see incredible amounts of rainfall from this storm. if you look at the tropical satellite, it's starting to grow in size. we have showers, thunderstorm activity off the peninsula, the yucatan peninsula. there is a lot of precipitation with the

storm system, very heavy activity. there is dry air in texas. some of that dry air is trying to make its way into the center of the storm system. that's something else we're keeping an eye on. we don't think that's going to affect much of the strength of the storm system. winds enough to bring down trees. the area is under some form of drought. getting rainfall from lee isn't the worst news. the bad news is how much we're going to see in such a short period of time. when you look at low localized amounts of 20 inches, reports of 7 inches have fallen across southeastern portions of louisiana. because it is such a slow-moving storm system we're expecting to see that through the weekend. by monday morning the center of it still over southern mississippi. this is extremely slow. because it's also a large storm system, it should

relatively well hold on to its strength. by monday morning we're still thinking it's going to be a tropical storm. the big problem with this is not the wind. there have been reports of wind gusts nearly 60 miles per hour. it is the rain we're concerned about. storm surge, reported four feet above tide levels. the storm system is going to begin to accelerate as we head towards mid week and the end of the week. guess where it's headed? to the northeast where we do not need to see additional rainfall. georgia, tennessee expected to see rainfall from the system next week. sustained winds of 60 miles per hour. that system is going to rapidly accelerate. another concern we have with this storm is tornadoes. we saw that threat with irene last weekend. we're looking at it again. there are a number of tornado warnings. if you live in any of these

counties, seek shelter. the warnings should be in effect until 10:00 p.m. tonight. >> when you look at that track, you wish it could move to the west to give texas much-needed relief. thank you for bringing us up to date. >> new orleans bracing to bear the brunt of this storm. how are people preparing for it? >> when you look around the tprefrpbl quarter in -- around the french quarter in new orleans, you don't know a trop storm is barreling this way. you have a number of tourists still out here. they're wearing pan chos, got their umbrellas. a number of events are going on. this city not slowing down. hard to believe that a very big and seer kwrus -- serious storm is heading this way.

mandatory evacuations underway in some parts. about 35,000 customers in and around the crescent city without power already. the main precaution people are taking, putting out sandbags. and an awful lot of them. they are moving vehicles out of flood zones. as you heard maria saying, this is primarily going to be a rain event. a lot of flash flooding and things like that expected. you don't really see windows boarded up and shops closed when you normally come into an area like this ahead of a major storm. not so much the wind they're worried about this. the rain. >> whenever you're talking about the gulf coast region, new orleans, you have to talk about the oil production industry. what impact could this have on oil production? >> a pretty serious impact. it's already happening when you consider nearly half of the gulf's daily oil

production has come to a halt. about 237 manned platforms out in the gulf have been evacuated for the workers' safety along with 23 of the 62 drilling rigs. all of those figure, according to the bureau of ocean energy management, regulation and enforcement, because of the slow down that translates into 660,000 roughly fewer barrels a day. so there is no question that this could have an impact on gas prices that we're paying at the pump. no word yet on any of the reserves will be released from the strategic oil reserves. >> thank you very much. tropical storm lee possibly providing new orleans with the biggest test of the rebuilt href yes since -- hrefies since hurricane

gustav. in august of 2005, we all remember hurricane katrina plowed into new orleans as a category 3 killing an estimated 1,720 people. the cost of the damage near $96 billion. ultimately 80% of new orleans was under water and the massive flooding partly blamed on the failed levees. now a new report out warning that six years later the levee system is expected to get a near failing grade. more on that in a few minutes. >> we are talking politics, election politics. scores of cheering tea party fans welcoming sarah palin in iowa. she is saying the president is leading the country straight to bankruptcy. while she didn't make any major announcements about her own 2012 prospects, she did manage to keep people

guessing. our chief political correspondent is live in iowa. did sarah palin make any hints about a possible run in 2012? >> not really, but she did talk about her plan, her economic plan and said here's what we as a country should do and here's what she should do presumably in a position of leadership, which could be extrapolated into her plan to have a leadership position beyond a podium. yes, there's some symbolism and signals in there. she cracked a couple of jokes. she said unlike a lot of politicians, she doesn't watch polls very much. she said -- talked about her plans to repeal corporate taxes and reform the tax system. she said she wants to put an end to crony capitalism. she talked a lot about the

permanent political class positioning herself not just against barack obama but also against her fellow republicans. when she talked about the permanent political class or crony capitalism, many took that as a swipe against rick perry who has been in politics all his adult life. >> even some good conservatives, they run away from being straight up with us about what needs to be done. it's not enough to change the uniform if we don't change the team and game plan, we won't save our country. yes, we need sudden and relentless reform, and that will return power to we, the people. she's talk -gs about conservatives who may not be conservative enough. she said she's happy with the republican field but believes there is room for

another candidate. she has not named herself yet. she made it clear she faces structural deadlines. the deadline for the iowa state caucus is october 1. if she intends to compete in colorado -- colorado's caucus are not all that important. she will have to make up her mind by the end of october lest she skip the florida primary. she'll be there on labor day talking. this is not the first time she has taken highly symbolic trips with highly symbolic messages and now ramping it up with rhett -- rhetorical criticism of fellow conservatives it suggests the field could use an addition, perhaps herself. >> an update on sarah palin. >> our poll on thursday

suggested 74% of americans think she shouldn't run. 71% of republicans think she shouldn't. two-thirds of self-describe tea partiers said they don't think she should run. there were republicans who said they thought she would be a better cheerleader than candidate. there is no base that the tea party movement itself has an awful lot of love for sarah palin. this crowd was filled of those who were trying to recruit sarah. >> that's our chief political correspondent. >> a lot of people, farmers out of work. people need jobs, don't want to be guessing about this. america's economy needs to be back on track. this thursday president obama will announce his plan to help create jobs in the u.s. this coming as a new labor department report shows a net total of zero jobs

added in the month of august. and with so many americans still out of work, just how big will this plan actually be? joining us is the editor-in-chief of "roll call." let's get right to it. not just net zero jobs, also talking about a couple of other factors. the number of hours worked by the average american, that is down. hourly earnings, that is down. if an american does have a job, they're working less, they're making less. what does the president need to say on thursday night? what do you want to hear? >> i think at this stage that zero jobs report really does change the landscape for the president, for everybody. he can't come in, if he had intended to do a speech for a joint session of congress that was aimed at contrasting his plan to republicans, that's not going to be enough. he needs to put out a plan that's got some detail in it that he can actually achieve. >> he had a plan, the

stimulus plan way back when. we're still talking about some good news possibly. private employers, they created about 2.3 million jobs. that is since early 2010. the bottom line is that is not nearly enough; correct? we need to be creating about 100,000 jobs per month just to absorb the new workers that are entering the work field. so what do you think the president can do specifically, talking specifically, to not have this be another failed stimulus plan? >> what he really need to do is he can come in and do what he often likes to do, which is outline a broad idea and then leave the details to congress to work out. he really needs sort of both, the overarching plan -- the overarching strategy and the knitty gritty details. we know he's going to do some sort of tax cut ideas, whether it's just extending the payroll tax. i think now he's talking about doing something a

little bit bigger than that, maybe a lot bigger than that, which could actually get the attention of some republicans. >> there are 14 million americans, give or take, still without a job. the president very well known for talking about goals and ideas. all those folks, they don't want to hear about a goal. they don't want to hear about an idea. they want to know how they can go out and get a job tomorrow. so how do you think that will play out in his speech? >> he's going to have to -- one of the things we believe he's going to be talking about is this idea of an infrastructure investment program, or an infrastructure bank where maybe, like there is a plan in georgia that seems to be gaining some attention where unemployed people are put to work on public works projects, and they continue to draw unemployment, but they are actually put to work and that helps to get people back into the workforce in some way. >> another problem that he's been facing, and actually both side of the fence, republicans and

democrats, all this political wrangling and this inability for both side to appear to be able to come together on any level. it even happened when he announced when he's actually going to give the speech. on thursday, there was wrangling over that. how do you think that will be dealt with? >> i have to believe that at some point, and that is what i alluded to earlier, republican in congress really have won on the spending cuts fight. i think the thing they have to be concerned about now is this whole jobs discussion not turn into another discussion about spending cuts. i think at some point the american people are going to say we need to be talking about something else. we are starting to see the leaders in congress, the majority leader eric cantor and the speaker have started to talk about how we can't keep talking about cutting spending. we need to start talking about jobs and kind of change the subject. >> specifically, thursday night you're looking to hear details, a real plan and something that can

actually get people working? >> correct. >> thank you very much. we appreciate you joining us. we'll see what happens on thursday. >> all eyes are going to be watching that one. tropical storm lee, a lot of people watching that. on the gulf coast, forcing some to esrabg homes near -- evacuate homes near new orleans. a new report shows the big easy may be as vulnerable now as it ever was. plus one local news anchor thrown into the headlines by a bizarre family tragedy. how police say a baby sitter's sudden death took sitter's sudden death took a youngwi life. i don't always have time to eat like i should. and the more i focus on everything else, the less time i have to take care of me. that's why i like glucerna shakes. they have slowly digestible carbs to help minimize blood sugar spikes, which can help ler a1c. glucerna products help me keep everything balanced. [ golf ubs clanking ] [ husband ] i'm good!

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>> checking the latest headlines, robert stewart found guilty of killing eight people in a north carolina nursing home in 2009, he is not eligible for the death penalty. people in new york investigating how a baby and his baby sitter died. according to reports the baby sitter likely suffered a fatal medical condition and fell on the baby. a neonazi group in germany, police there using batons to battle protesters. tropical storm lee,

there is a new report that shows levees in the city of new orleans may not be as prepared as they could be. billions of dollars have been poured into a new orleans levees since hurricane katrina, but new findings show if tropical storm were a bit stronger, hurricane strength, the big easy could be looking at another disaster. what needs to be fixed and how fast can that happen? joining us to talk to us is bob turner of the flood protection authority in east new orleans. thanks for being a part of this discussion today. what strikes you most about the fact that the levees there got a near failing grade? >> take a look at the classification. it looks rather ominous. but i think you have to take it in context to understand what this is a part of. the corps of engineers started to develop a rather

comprehensive program for all the levees in the federal portfolio. a major part of that program is the establishment of a screening tool and then a selection of levee safety action classification number. that process is still evolving. i believe what happened is the corps decided to test out what they have so far and selected several maces in the country, one of which was new orleans. they took a segment of the levees in our system here and ran it through that process to see how things plushed out. as you know, we had a levee safety action classification number two out of five which sounds rather ominous, but, again, i think this is a test. the program is still evolving. there are some things i think that we can take away from this, one of which is that perhaps for an you urbanized area like new orleans, 100 years of

protection is probably not enough. i think another thing we can take out of this is the fact that this was done, this screening was done some time back in the springtime. at that time we had no armory on the levees. the resiliency part is still to come. >> you talk about the resiliency. you talk about the urban area. you recall what happened when hurricane katrina hit that area as a category 3. what happens if another katrina comes along? perhaps you need a 500-year plan there. >> i think for major cities like new orleans, we should be looking at providing levels of protection that are in that 500-year level of protection. i think -- >> what would that involve? and how quickly can you get the current levee system to that status? >> there are a number of thing that can be done

there. i think it's going to take a considerable amount of money to bring it up to the 500-year level of protection. one of the major thing that has to be done is a lot of coastal restoration work to keep the coast where it is today and build some of the marsh he is and coast -- marshes and coastal areas that have eroded away over time. the other thing is look at lines of defense, looking at things like departmentalization. >> you're talking about something very key. that is it would take more money to get the job done. certainly this political climate today where there are so many austerity measures in place, can you even imagine that would happen? that money would be allowed to help you get to the 5 hundred-year plan with your levees? >> i think at the present time it is very unlikely we're going to see anything like that. we're still in construction on the 1 hundred-year level protection system. most of that is in place.

construction is still ongoing. that's not going to be finished for at least another year or two. >> bob turner, we can only hope and pray you don't receive anything to the magnitude of a hurricane katrina level in that time period. thanks for joining us. good labor day. we are learning some illegal immigrants are collecting a critical tax benefit meant for working families for a total of $4 billion. how exactly is this happening? our power panel takes a controversial look at this controversial tax loophole i should say that's raising a whole lot of questions. we have a live report from mississippi where heavy rain and fierce wind from tropical storm lee are forcing people to flee indoors.

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now. treacherous rain triggers flash flood warnings. candles, flashlights, batteries. >> got to stock up. live in biloxi, mississippi, with the latest from there. hi, elizabeth. >> this is turning into one slow-moving and now a stalled disaster. here in biloxi we've seen about seven inches of rainfall. forecasters say the tropical storm is hovering around the gulf states and going to continue to dump a lot of rain. not just an environmental disaster, but also especially here in biloxi, an economic disaster because this is a popular tourist designation hot spot. i want you to look at the marina behind me. these fishing boats are docked. this adventure cruise is

docked. if you continue looking at the hard rock cafe, you see a few cars in and out but the parking lot is completely deserted. that is a big problem here. there's a lot of families who have canceled. our hotels would typically see 95% to 100% occupancy but now have 30% occupancy. keep in mind this part of the country was hit not only with katrina but last year they were expecting a great summer and they had the oil spill. now we're faced with tropical storm lee. >> thank you very much, elizabeth. if you have pictures or video of the weather out there, we want to see it. go to fox news.com. we'll try to put it on the air. as always, consider your safety first. major developments in iran. the u.n. nuclear agency now

saying it's increasingly concerned about a stream of information suggesting this: that iran is secretly working on developing nuclear weapons. the report raising new fears around the world. here now is a former spokesman for the last four u.s. ambassadors to the tphufpl u.n. rick, thanks so much for joining us. this is important. there are reports that iran has actually secretly, or is planning to move its nuclear weapons production, moving its nuclear site and not really giving anyone a hint where it is. why? >> when the international atomic energy agency says that iran is developing a nuclear missile and moving its uranium enrichment underground, you know we've got a problem. this is an agency, a u.n. agency that has historically been slow to recognizing threats. this is the agency that only this year, four years

after the israelis bombed a suspected plant in syria, this year the iaea got around to saying that that really was a nuclear facility in syria. they have been very slow. the warning this week on wednesday when the iaea came out and said iran is very seriously close to developing a nuclear missile, we need to take this warning very seriously, and hopefully the obama administration is paying attention. >> we've been saying this all along, the united states, saying something is amiss and they're running afoul with the iaea. what type of sanctions should the united states complement? they have -- implement here? >> we've been saying and the israelis have been saying that there is suspected nuclear activity. this week the iaea confirmed. they are slow to confirm these thing so this is a huge warning bell.

i'm not so sure that u.n. sanctions can work at this point. i think we may be too late. susan rice, our ambassador at the u.n., she's only passed one resolution on iran, and i think that the slowness of passing that one signals that she's not going to be able to get another one. >> we've got to keep our eyes on iran. and also we have to keep our eyes on al qaeda. there are reports that al qaeda is on the ropes. where does that put the united states in terms of dealing with al qaeda? we know they lost two key people, including osama bin laden and now their number-two man. >> there's no question we've had recent success, and i think that's great. we have to remember that al qaeda is still recruiting. they may be close to -- they may be having trouble operationally and we certainly are removing some of the leadership, but the recruiting is still successful as evidenced by two situations. one, you have al shabab in

somalia which killed americans, british nationals, a hot of somalis, a lot of africans. basically they're having subpar peacekeepers help them. the other reason, last week's events in nigeria, they have been linked to the bombing in nigeria. it is clear to me that al qaeda is still recruiting and we still have to keep the pressure on these guy. >> another topic here: libya. we know libyan rebels are moving closer to the hometown of muammar qaddafi. we also know that as libya moves forward with its apparent freedom from muammar qaddafi that they are short on water, fuel, medicine. what will happen if that backing persists and some real help doesn't come in soon to help them economically get back on their feet and then become a new government? >> it was good this week that the u.n. sounded this alarm and said we've got to

develop -- we've got a developing humanitarian crisis in libya. we need to pay attention to that. the rebels are now in control of the government. they're supposed to have day-to-day operations under control. they should immediately start getting the government back up and running. but they're still looking over their shoulder looking for qaddafi. and his secret police and all of his hench men i'm sure are having a psychological effect on the people of libya. until they get qaddafi, i'm not so sure that the rebels are going to be able to develop an operational day-to-day success. we need to be doing everything we can to help the rebels, including getting their oil facilities back up and running so they can start giving some of that money to feed their people. >> we appreciate your comments, sir. >> thanks. happy labor day.

brand-new polling raising questions about president obama's reelection hopes. his support among one critical voting bloc at an all-time low. can he turn it around? our power panel next. [ male announcer ] this...is the network. a living, breathing intelligence that is helping business rethink how to do business. in here, inventory can be taught to learn. ♪ in here, machines have a voice... ♪ [ male announcer ] in here, . even when you're away from home. it's the at&t network -- a network of possibilities, creating and integrating solutions, helping business, and the world...work. rethink possible.

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wondering if this could mean, or what exactly this could mean for president's female support. that helped launched him into the presidency. joining me is the the bureau chief of radio news service. thank for joining us. these numbers, should they be troubling to the president? >> absolutely women are going to be key to his reelection. this is a low, as we're seeing. but i don't think that is translating into the polls we're seeing coming through as far as how women are looking when it comes to the election. he's still winning women in wide margins above republicans. the approval is low. i think we're going to hear more from the council on women and girls in the

white house talking about small businesses for women. i think we're going to hear him talking more about getting young girls into science and engineering and those types of things. i do think it's problematic but we're going to start to see the white house talking more. >> you're saying he's going to be talking about doing these things. we all are sort of at a point where we don't want to hear the talk anymore. and for women as well as men it's about the economy. we've seen our economy tank i think women who do generally earn less than men, so we're suffering a little bit more because we're earning 70 cents on the man's dollar and still are in charge primarily of the children, there is, i think, a deep, deep concern, especially among women about the economy. >> what do you think, ellen? will this change after thursday's big job plan? >> the president's numbers are down. period. i don't know whether it's going to change it.

it depends what he has to say. let's not forget republicans have two very strong women out there. they're appealing to women as well. i don't agree with the strong women you're -- >> michele bachmann and palin. i think if i was the president, i would start to put michelle obama out this a lot more. she does a lot with military women. but have her do outreach to women's groups. >> that can also backfire. remember when bill clinton was in office and she put hillary clinton in on health care and that backfired. michelle obama, although her numbers are very good, excellent actually, has been chastised for the health consciousness for children. that could backfire. >> on to our next topic, there is a shocking new report showing undocumented workers are collecting billions, billions of dollars through a certain

u.s. tax loophole, credit meant for working families skrobgting last year -- skyrocketing hast year. $4.2 billion head -- handed out because of a poorly worded document. legally, how is this happening? >> it's horrible. there is a loophole in the law, the way it is written is poor. i looked at the actual law itself. it's very vague. illegal immigrants can take advantage of things legal immigrants can't. if we try to make it enticing for illegal immigrants to come here, this would be exhibit a. >> this also allows for them to pay regular taxes. if they pay regular taxes, which this law allows for, why shouldn't they -- >> allows for it. >> why shouldn't they be able to take the deduction other it happens take? >> i think this report is a little bit misleading.

there's $12 billion in local and state taxes that undocumented immigrants contribute to the economy every single year. there's something like $300 billion that's gone into the social security trust fund from undocumented immigrants that they will never get back. this is such a clear example of how broken the immigration system is and why the federal government has to stop running away from it. but it can't just be, say how immigrants are taking away from the economy. >> they're taking advantage -- they're taking advantage -- >> they're not poorly written laws. they are contributors to the economy. we saw when the anti-immigrant bill passed in georgia, crops rotting in the field. >> is that really the argument? >> i'm not saying that. >> it also pointed out these people legally pay taxes. they're tkpwefpb a number. -- given a number. if you legally pay taxes, why shouldn't you get what other people are who are

paying? >> that is not what it is there for. it is completely a poorly written law. >> i legally pay taxes but i don't get the same deductions -- >> this is one problem. you have to look at the fact that a lot of these undocumented immigrants, their children are american citizens. i'm the daughter of former untkoeuplted immigrants -- undocumented immigrants and understand the system these parents have had to deal with where they're undocumented but their children are citizens so there is the issue of benefits that apply there. the system is broken. there is an organization that is trying to elevate the conversation around immigration because it can't just be pointing fingers on one side. >> there are those that contribute to the system and there are those that take advantage of the system. >> would you agree that when you see a loophole like this, that that angers

a lot of people. >> very angry. we're going to have to continue this during the commercial break. ♪ ♪ ♪ [ male announcer ] the most legroom per dollar of any car in america.

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>> it's not even a law yet but there is a heated debate over whether to give benefits to domestic workers in california. it would give baby sitters and homeworkers mandatory benefits including breaks, overtime pay and minimum wage. joining us is the former president of the women's media center. this next topic is happening in california, and it basically would provide benefits for domestic workers.

why is that a problem? >> it sounds a bit crazy, like crazy with a capital c when you focus it on baby sitters. you have to keep in mind that domestic workers aren't as protected with rights as other workers in other industries. if that's the intention in california, that's one thing. but if this is really focused on finding someone to come in and give your baby sitter a break when they're baby-sitting for four hours, that's crazy. the bigger issue, domestic workers need to be protected and have the rights that -- >> you broke it down right. domestic workers, people in your house four or more hours on a continual basis that are doing work should get breaks, get all of these protections. you should pay taxes on them. they should get social security. i totally agree. hey, you want to go to a movie on a friday night; you've already got to splurge for the tickets and

you've got to pay some 14-year-old -- >> the law says 18 and other. >> the deal breaker for me is the breaks. >> who's going to take care of the children while the baby sitter takes a break? >> it's always been that differential. the law is very clear on that. people in your house on a continual basis, they get these things. >> the shirt may be gone but the debate continues. we have a look at the shirt for you. this back-to-school shirt, it wasn't j.c. penney that read this. i'm too pretty to do homework. it only took a few weeks for the store to pull this off the shelves. was this taken too seriously? should this have remained on the shelves? or is this a lesson we don't want to teach our

kids? >> absolutely. psychological, emotional and sexual stereotyping begins when a doctor says it's a girl. that is what we're coping with when you have body issues and the media and marketing -- >> i would like to live in that buyer who bought that t-shirt's mind. >> my daughter's favorite t-shirt says strong is the new skinny. that one, i like. she is like this: strong is the new skinny. this is horrible. it sends a terrible message to our teenage girls. >> anything you can do, i can do better. >> i like that. >> thank goodness you have the number of women in girls groups that go after -- >> come back and advertising -- comes back to advertising.

j.c. penney says i don't know how it happens. really? >> another example of social media getting involved and making a difference, which we've seen happening over and over again in today's stories. >> thank you all. thank you so much. we appreciate you joining us. happy labor day. kelly? this is a fox news alert. where is dominique strauss kaan? we are told by associated press dominique strauss-kahn was seen leaving his new york rented home along with his wife and daughter camille. he was carrying luggage as well. we don't know where he is headed, but we're also getting reports that he might be expected in paris, france. he has not been there since may when charges came

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>> kelly: hello, everyone. welcome to a brand-new hour of "america's news headquarters." >> heather: topping the news this hour, the city of new orleans braces for the worst from tropical storm lee. >> the message today is that we

are not out of the woods. notwithstanding the fact that the one was shining about a half hour ago, it's not now and we can expect to have that kind of unexpected activity by this described storm as unpredictable. >> heather: the mayor of new orleans warning that the storm has not passed. we will be live in new orleans with the latest. >> kelly: plus, sarah palin firing up the tea party crowd in iowa. did she give clues about whether she's ready to jump in the white house race? >> heather: we'll see. a tea party law maker stirring the pot, why this congressman says he is not going to show up for president obama's job speech next week. >> kelly: first we have this, a fox news weather alert, tropical storm lee stalls near the gulf coast, battering towns with torrential rain and 60 mile-per-hour winds. about 6,000 people in that area evacuated and where there are some huge flooding concerns for low lying areas, like new

orleans, forecasters say lee will soon begin a slow and erratic path north while dropping ten to 15, possibly even 20 inches of rain on some areas. we're already getting reports of power outages, storm surges, even tornado warnings, from alabama all the way to texas. our casey stegall live, he's riding out the storm in new orleans. he has more details with us right now. casey? >> yeah. it's been a really interesting day. you just heard the mayor of new orleans talking. we had sunshining about an hour ago and now the rain is starting to move back in. when you talk about all of the water that is expected to inundate this region, the real concern is always with the canals and the waterways in and around new orleans. canals and waterways that we know were overwhelmed with other storms like hurricane katrina and gustav. six minneapolis from here is lake pontchartrain. a short time ago, we went up there to check out the will haveees and see how things were

going. take a look. you can see the water levels here in lake pontchartrain are extremely high. the water is already lapping the shore. we haven't even seen the bulk of the storm with lee. the levees. 133 miles of levees that were refortified and redone in the wake of hurricane katrina. on the other side is a neighborhood. this is the south shore of the lake. again, this is primarily expected to be a rain event and no real storm surge expected. but even with some 20 inches of rain forecast here, meteorologists do not believe it's going to be enough to spill lake pontchartrain over its banks. however, the army corps of engineers monitoring the situation closely by the hour. obviously we try and look at a silver lining. and the good news to report, at the moment there doesn't appear to be a real significant economic impact to talk about

here in the big easy, considering we are in the famed french quarter now. you can see a lot of folks are still milling about. they've got their umbrellas. they're all taking this in stride. all of the bars, restaurants, things like that are open for business. not a situation where we've seen in the past with windows boarded up and things like that. back to you. >> kelly: good to see so many people there behind you. hopefully tropical storm lee doesn't get the big easy a hard time. thank you. >> yeah. >> heather: where will lee head next and what can we expect? the national hurricane center just releasing its latest advisory. maria molina live in the fox weather center with more on that. >> that's right. we just got our new advisory and no change in strength for tropical storm lee. it's still a tropical storm with sustained winds of 60 miles per hour and in the center moving ever so slowly to the north at 4 miles per hour. this is a slow moving storm system, one of the biggest concerns with it is the amount of rainfall we'll see. not just because we have a lot

of rain and thunderstorm activity with this system, but because it's a slow mover. it's going to continue to dump that rain over these areas. some of these areas have been looking at rain for over 24 hours now and are expected to continue to see rain over the next 24 hours. some of the totals coming out of southeastern louisiana, shy of nine inches. that number will continue to rise. that was as of 2:00 p.m. local time. it's been raining since. the center of it now, 60 miles to the west southwest of morgan city, louisiana, 55 miles south of lafayette, louisiana. moving to the north at 4 miles per hour. there has been reports of sustained winds of 50 to 60 miles per hour right offshore, these areas. so we know we are seeing some of those winds with this storm system of tropical storm force and also a tropical storm warning has been issued. there was a watch in effect from destin, florida to the florida-alabama border. that was a watch. now that's been upgraded to a tropical storm warning because we'll likely begin to see those tropical storm force winds very shortly over the next 24 hours.

a lot of rainfalling across this area. the other concern is that some of these rain bands as they come onshore begin to rotate and we see tornadoes being spawned from some of these. currently a watch in effect until 10:00 p.m. tonight. no tornado warnings in effect right now. but that's something to keep an eye on. a lot of rain as that storm continues to head northward. >> heather: we will check back in with you soon. thank you we want to see your pictures of the storm or video if you have it, if you have amazing images you would like to share, e-mail them to us at the address on your screen. give us your name, location, and a brief description of exactly what we're looking at and as we get those today or any time, we will try to get them on tv for you. but be sure to stay safe. >> kelly: stay safe is the operative word. what's happening with irene? no hot water north texas tv or internet and no patience left. hundreds of thousands of people along the east coast still waiting for power after hurricane irene hit them last

weekend. according to the latest figures and here they are, more than 260,000 homeowners in nine states are still without power. while crews are reportedly working 16-hour shifts now, some folks are getting downright angry, frustration is more the word and they're wondering what's taking so long. in connecticut, more than 93,000 customers are still in the dark. virginia is looking to restore power to more than 58,000. then in new york, more than 56,000 are waiting for power. >> heather: 2011 shaping up to be a very expensive year in terms of storm damage in the u.s. it will likely take months to add up all the damage caused i hurricane irene. but the total could be in the billions. so can uncle sam's wallet handle it? molly henneberg is live in washington with more on this. molly, hurricane irene already has joined an unfortunate list

for 2011. >> that's right. the list of weather events this year that have cost at least $1 billion. irene may end up topping that list. hurricane irene may cost more than $10 billion when it's all added up, and fema will subsidize part of that. in clean-up, recovery and resources. also on the list, $9 billion in total losses after tornadoes hit the southeast, ohio valley, and midwest states in april. joplin, missouri, was particularly hit hard in that disaster. about a month later, more tornadoes hit the midwest, southeast states, causing $7 billion in damages. and in the southern plains, southwest states experienced a drought, heat wave, and wildfires in the spring and summer, costing well over $5 billion. and clean-up from missouri river flooding from earlier this year ran into the 2 to $4 billion range. fema says now it's going to have to postpone some projects that have not already been approved for previous disaster clean-up in order to save money for the rest of the fiscal year.

>> heather: the question is, is fema in the red now? >> fema has less than $800 million to get through the fiscal year, which ends september 30. it's not technically in the red. but that's not a lot of money after you -- you saw those numbers, how much all of those natural disasters have cost this year. fema subsidized some part of all of them. the head of fema says september is the peak of hurricane season, so fema is now using its money for immediate urgent needs to try to make that $800 million last through the end of this month. but at least one capitol hill aide tells fox that congress expects president obama to request stop-gap money for fema. >> heather: september definitely the peak. we have to pay attention to what's to come. thank you very much, molly. >> kelly: sarah palin, the former alaska governor, is firing up a tea party crowd in iowa today. her appearance sparking new questions on whether or not she'll make a run for the white house in 2012. so far her intentions remain

quite unclear. >> a challenge is not simply to replace obama in 2012, but the real challenge is who and what we will replace him with, because it's not enough -- [ cheers and applause ] >> kelly: last night some of her supporters made it clear to her what they hope she'll do. carl cameron is live in iowa. did sarah palin make her intentions any clearer at all today? >> no, actually. she talked like a candidate. she said that she had a plan for the economy and she talked about eliminating corporate taxes and reforming the tax system. said here is what the country needs to do, here is what we should do. here is what i'm going to do, which suggests she might be running. she has for weeks said, months really, has said she hasn't made up her mind and she believes she

can make a decision sometime in september, perhaps early on the. there are deadlines to get on state caucus and primary ballots that could force her hand because to fail to meet those deadlines mean she couldn't compete in those states. this was an opportunity for her to rally the faithful. folks came from texas and florida, pennsylvania. we talked to some new yorkers who drove here in the last couple of days. it was a fairly big crowd, couple thousand people. literally by the rain, yet they showed up. at one point she was talking about how she's not going to be deterred by the polls. fox had a poll that suggested 66%, two-thirds of tea partiers think she should not run. she had some salty comments about polls. listen to this. >> polls. they're for strippers and cross-country skiers. >> great stuff. sarah palin does watch the polls, however.

she repses rick perry is right now the republican front runner. mitt romney has fallen out of the top slot. michelle bachman, though she's still considered a top tier candidate, has been slipping in the polls at least. asked in our fox news poll last week about whether or not voters think she should run, 74% of all voters said they thought she should not. 71% of republicans thought she should not. there were a lot of folks here in the audience today who were very excited to see her. but we did talk to some who thought she would make a better cheerleader than an actual president. she's got a few more weeks to think about it. >> kelly: the reaction that we had here to that comment about polls, quite a bit of a chuckle in the news room, as you understand. great stuff. the polls notwithstanding, in all sincerity, sarah palin can do whatever she decides to do. right? if she wants to announce -- >> absolutely.

she's got tremendous ability to capture the press' attention and the imagination of tea partiers and conservative republicans. were she to enter the race, we have a good idea to some of the things she has to think and say about other candidates. today she talked about the problems of a permanent professional political class. that was a not so veiled slam at rick perry, who has been in public office virtually since he got out of the military and started a family, he began his life in politics more than 30 years ago. she has talked critically about mitt romney's record on social issues as the governor of massachusetts. much more moderate on other issues. she's been critical of mitt romney's health care reform law in massachusetts that he signed as governor when he was the chief executive of the bay state. she has not really criticized michelle bachman all that much, but when sarah palin starts talking from the podium and making news, she does have almost an immediate ability to sort of eclipse michelle bachman. so there is an immediate impact

in terms of the republican race were she to run. but she didn't move closer to that today and she's got only a limited amount of time before she does that if she wants to compete in those early states. she could wait until the new hampshire primary and still run right before the iowa caucuses, or skip those and join the race later. the history of candidates who waited too long is not positive. you wait too long in presidential politic, you get left on the sidewalk. >> kelly: she's walking to the beat of a different drummer. sarah palin out there in iowa. thanks for the report. good to see you. >> heather: maybe that's what it takes, good one liners. maybe romney should pay attention because according -- a good sense of humor. according to members of the tea party, that's proving to be maybe a challenge for mitt romney. how this could affect his campaign and what, if anything, he can do to win them over. we'll talk about that coming up. >> kelly: there is all this talk about the tea party. one person the tea party has supported so far, joe walsh of

illinois. he says he will skip president obama's speech on jobs before a joint session of congress on thursday. walsh will be in illinois that evening to host a small business forum and says he doesn't, quote, see the point of being a prop for another of the president's speeches asking for more failed stimulus spending and more subsidies for his pet projects. that according to congressman joe walsh. >> heather: lot of folks. wait and see what he has to say. uncle sam going after some of the big banks that it bailed out. the federal housing finance agency is suing 17 financial institutions over massive mortgage losses at fannie mae and freddie mac. peter doocy reports from washington. >> 17 banks are being sued by the government for $200 billion. the federal housing finance agency filed suit friday in new york and connecticut trying to recoup some of the money they lost because they say that these financial institutions knew their mortgage-based securities

were rotten, but they sold them to fannie mae and freddie mac anyway. the u.s. government wants the banks to pay for their alleged misdeeds, but some analysts say the timing here is troubling and that it could tank the economy even further if the banks end up losing in court and have to pay uncle sam money they could be spending elsewhere. >> while it might not be directly attribute to do a further drop in employment and consumer spending, what we do know is it's dollars spent that could have been invested and those investments, of course, could be used in some way, shape or form to drive or at least stem the decline in housing prices to create more jobs, to create continent. >> how is it that these 17 banks allegedly pulled a fast one on fannie mae and freddie mac? some say they probably didn't and sure they lost a big chunk of change, but it's not their first time around the block. they are not amateur investors and there is evidence that they knew exactly what kind of risk they were taking and they knew exactly what kind of people they

were guaranteeing mortgages for. there were ads that said, no documentation, no income, no assets. no down payment. fine. and so they're now trying to get more money, but it's hard to believe they're really fooled. >> the decision about if anyone was really fooled or not will be made in court. on wall street, shares of some of the big banks named here banks of america, goldman sachs and jpmorgan all lost value yesterday. heather? >> heather: peter doocy reporting for us in washington. thanks. >> kelly: the state department issue ago world wide travel alert for all americans. it's in advance of the ten-year mark of the 9-11 attacks. the alert does not mention any specific threats. but says u.s. citizens should be aware that al-qaeda affiliates have demonstrated the intent to carry out attacks against the u.s. it also urges americans at home and abroad to be extra vigilant. >> heather: coming up, clashes breaking out as a group of neonazi protesters take to the streets. we'll have the details on what's

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>> heather: time for a quick check of the headlines for you. rebels in libya moving closer to a gadhafi stronghold, trying to persuade tribal elders to surrender without a fight. moammar gadhafi remains on the run. violence breaks out during a counter demonstration against a neonazi rally in germany. police using a water cannon and saying that officers were attacked by leftist extremists. a judge ruling that pitcher roger clemens must face a new trial on charges that he lied about using performance enhancing drugs. the trial slated for april of next year. >> kelly: a deeply divided and unpopular congress returning to washington next week facing numerous challenges, from creating jobs to spending cuts. so what's first on their agenda? doug reports now. >> if the divided congress left for its august recess on

relatively bad terms -- >> this is a bad piece of legislation. >> dealing with the white house is like dealing with a bowl of jello. >> it returns next week perhaps more deeply mired in divisiveness such as when to do the president's speech. >> the scheduling snafu is a bad sign of things to come. it shows you how high the stakes are that even scheduling at a certain day could be problematic. now you're talking about finding trillions of dollars worth of spending cuts, serious deadlines, and serious pressure. >> formosan the agenda, finding $1.5 trillion in cuts that congress couldn't agree to last time around. it first meets next thursday. if the committee fails, automatic triggers will kick in, given committee's make-up, some expect a trigger happy outcome. >> you have it designed, i believe for deadlock with six republicans and six democrats who have indicated they are not willing to accept the other side's solutions.

>> making matters worse, the fiscal year ends september 30. by law, congress must pass 12 appropriations bills to fund the government or resort to the same stop-gap measures of last year, continuing resolution, or grab bag omnibus spending bill. also facing a slept expiration, two key transportation bills, the service transportation bill and the federal aviation administration reauthorization, which have been held up by the two parties' inability to agree on funding. >> if we allow the transportation bill to expire, over 4,000 workers will be immediately furloughed without pay. if it's delayed for just ten days, it will lose nearly $1 billion in highway funding. >> in addition, congress will have two new issues on its plate that it could have not predicted before, new expenditures for the earthquake and hurricane and one more it has not yet seen, the job plan to be spelled out next thursday. all that while he they begin posturing for the 2012 campaign ahead. >> kelly: we thank you for that

report from washington. >> heather: coming up, does republican hopeful mitt romney have a tea party problem? if so, just how big of a problem is it? we'll debate that. and the deep south on alert. mandatory evacuations underway right now. we will have a live report for you coming up have i got a surprise for you!

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>> heather: it is the bottom of the hour. time for the top of the news. that means a california wildfire that forced folks out of their homes friday is now under control. that's good news. two firefighters reportedly suffered minor injuries. >> kelly: sarah palin addressing scores of cheering tea party fans at an iowa rally today. a former alaska governor offering a harsh words for

president obama, but not saying if she's running for president in 2012. >> heather: a cargo plane loaded with aids supplies arrived in north korea. the goodwill gesture follows talks between the countries to improve relations and resume talks on nuclear disarmament. >> kelly: back now to our top story of the day, a wet and miserable labor day weekend for the gulf coast. the normally packed beaches there, empty as tropical storm lee unleashes heavy rain and wind across alabama, louisiana, and mississippi. thousands of homeowners in low lying areas told to get out as flooding concerns grow. forecasters say this storm may dump more than a foot of rain in some areas within the next 24 hours. elizabeth prann is live in biluxi, mississippi with more details. how are things there? >> hi, kelly. what people in the gulf coast here in mississippi and along the entire gulf coast have been

experiencing in this storm is these pretty violent squalls. right now we're getting hit with a burst of wind and rain. you can see the flag, the wind starts to pick up at times. one thing i really want to bring to your attention, a local resident told us during high tide last night, the water was up -- you can see the water line here. this is all debris from the gulf. i want to give you a gauge of where the water is at low tide. when we first arrived, it was right on the ledge here in this slip. it's starting could come up. the rain is continues to fall. it's continuing to fall just north of us as well. what forecasters and local residents are very concerned about is that not only are we going to have high tide and the flooding up north of us, that water basically has nowhere to go. so we're really concerned about flash floods here and biluxi, as well as other parts of gulf coast, of the entire gulf coast that's getting hit with tropical storm lee. they're also very concerned

about tornado watches. like i said when we first started the shot, we're getting hit sporadically with these wind burst. they want people to basically stay inside. i know it's not very exciting for your lay day weekend. we have certainly seen residents heed that call. here a lot of the hotels that would normally see 90 to 100% occupancy on this labor day weekend are around 30%. so unfortunately not only is this an economical disaster, it's obviously very much an environmental disaster. kelly? >> kelly: we can tell that a lot of people were taking heed, although we see some cars behind you. they're probably getting out of harm's way as well. elizabeth prann reporting live from the gulf coast in biluxi, mississippi. thank you. >> thank you. >> heather: the storm of a different kind swirling around republican presidential candidate mitt romney, the latest fox news poll shows texas governor rick perry is overtaking romney as the 2012

gop front runner. romney, facing resistance from some conservatives, including factions of the tea party. so what should his strategy be going forward? here now a former deputy assistant to president george w. bush and ryan, a democratic campaign consultant and founder of the blog 100 proof politics. thank you for joining us on this labor day. >> thanks for having us. >> heather: the poll we just showed, it was 26% perry. 18% romney. we'll begin with you, brad. is romney in trouble? >> absolutely not. this is a tempest in a tea party. we have to remember that the tea party is not a party at all. it's party in name only. they don't have the organization. they don't have the leadership. they don't field candidates. tea party candidates -- supporters are likely to support republicans and it's the republican rank and file that will pick our nominee and remember, you have to be selected by your party before you're elected by the people. >> heather: ryan, what about

your thoughts, what was the phrase that brad just used? tempest in a tea pot? what do you think? >> i'm going to agree with him on this point. i think asking the tea party who should be the president is like asking the lunatics who should run the asylum. the fact that we're realistically considering people like rick peperry goes to show w much the republican party is now owned and operated by the tea party. they're issuing litmus tests to the candidates of the republican party and they're dictating marching orders, you know. that's going to result in disaster for them in the election in 2012. >> you wish the tea party had the kind of support within the general rank and file of the republicans. you wish they had the kind of influence they had over the republicans. they simply don't. it's the rank and file of the republicans who will select their nominee and i believe the republicans will select somebody who is electable. unless they do that, unless we're united, then obama waltzes in. >> heather: brad, who is that, in your opinion, right now? >> i think the race right now is between governor perry and

governor romney. i think you can see by the polls just last week that bachman has slipped quite a bit. the supporters within the tea party don't want her to be the selected nominee of the party. so i think we have a two-person race right now unless somebody else were to get in the race to steal their thunder. but right now, perry, because he's new, has shot up in the polls. i think you'll see the polls even out, especially with the debates comip. >> heather: how about this, i'll let you expound upon that point, ryan, what problems do you think rick perry faces, if it would come to that? >> rick perry has got real problems. he's a former democrat who endorsed al gore for president one year. and i don't think a lot of republican primary voters are going to forgive him for that when they find out about it. mitt romney on the other hand has a lot of problems because he essentially test marketed obamacare as governor in massachusetts, which the tea party is never going to forgive him for. so the republicans, if they want my professional advice, go back to the drawing board and try and find a candidate that can actually win this race, 'cause the people they got in it right

now simply cannot win. >> heather: ryan, it sounds like you're putting a lot of power in the hands of the tea party when it comes to the republican party right now and brad, you're doing the opposite and saying that they don't mean a whole lot? >> they don't. they simply do not. if you look back at the debt vote that just happened on the hill not too long ago, the democrats decried that the tea party is holding it up. if you look at the actual votes, there were more democrats that voted against the president than tea party voted against the republicans. so actually the democrats have more of a problem with their base and compromise than republicans are alleged to have. i think our candidates that we're fielding are really good people. i think that they're both selectable and electable and i think my friend has got it all wrong and ryan, with all due respect, we're not going to be taking your advice any time soon 'cause i think we got a good slate of candidates. >> heather: president obama does have his own set of problems, ryan, with the democratic base as well. >> yeah. i would agree with you, actually. i think the president needs to man up and grow a pair and stand up to republicans especially in

the house, with john boehner. he keeps getting pushed around and smacked around. what we need is not a president who is really smart, which he is. what we need is a president who has courage and who will stand up for the ideas that he ran on, that we voted for him to put into action. >> heather: do you think that will happen on thursday? do you think he will deliver? >> i think the tide is turning for president obama. i think he's starting to realize that the republicans are betting on failure for america and he's not going to work with them to get our country on track. we'll have to do it without them. i think that's what the job speech is saying is look, no matter what the republicans say, what's more important than debt or any other social issue, what americans need now is jobs and we need to rebuild the middle class. if we don't get focused on that, we're not going to get back on track as a country. >> heather: we'll hear what romney has to say about it and rick perry following the president's speech on thursday. thank you both for joining us. we appreciate it. >> thank you. >> heather: you don't want to miss this, this is huge. fox news and google teaming up for a republican presidential debate set for september 22 in

florida. our very own bret baier will be the moderator. chris wallace and meghan kelly will be there to question the candidates. that's right here on the fox news channel. plus, you can submit your questions for the gop candidates yourself. go to foxnews.com, scroll down to the spotlight section, click on the gop presidential debate. you will find more information on how to submit your questions. pretty cool. >> kelly: as we approach ten years since the 9-11 attacks, fox has put together a stunning special that airs tonight called "the secrets of 9-11". we take a closer look now at the events leading up to that tragic day from declassified documents, exclusive interviews and phone and banking records. fox learned the terrorists

relied heavily on domestic networks for support to carry out the plot. here, a preview. >> by the spring of 2001, the key figures in the 9-11 plot were well established in america. besides taking 727 flights, ring leader mohammed atta and his cohort moved into this apartment in coral springs, florida, just north of miami. living in this house in nearby miramar, was a man raised in america because his father was the blind sheik's translator. >> he goes to school at broward community college. >> here he is giving a class presentation at the college, but experts say he wasn't only pursuing an education. >> kelly: again, this is exclusive reporting by fox news. the secrets of 9-11 airs tonight at 10:00 p.m. eastern. hosted by bill hemmer, hosting with reporting by eric shaun and

katherine herrage. should be quite a show to see that. katherine being so good with her contacts as well as eric shaun who has been working with the u.n. so many years now. definitely been working here in new york for a number of years, more than 20 years, should be a great special to watch. >> heather: some new ideas on fixing the economy, that's coming up immediately in light of president obama's upcoming jobs speech. we'll look at some of the things that economists say washington can do to boost jobs.

>> kelly: a staggering 14 million americans are out of work right now and it seems the situation won't improve any time soon. this month president obama and speaker john boehner are both expected to announce plans to get america back to work. but what can washington really do? here now, patricia powell,

founder and ceo of the powell financial group. thank you for joining us. this is a very important topic. no one has seen these kinds of numbers. zero for the month of august. that hasn't occurred since 1945. >> we're two years into the recovery. these are really bad numbers for this point in the recovery and there is no reasonable expectation that they're going to improve any time soon. this is serious and it's serious for mostly for the people who are unemployed and mostly for americans out there who are struggling with this economy, but it's also serious for the president because he said unemployment was going to be at 8% if we just gave him his stimulus bill and we did. >> kelly: he went big on the stimulus bill, some people are saying he didn't go big enough and there is expectation he may ask for more in terms of infrastructure dollars, make investments there to create jobs. is that sufficient? what else has to be done?

>> well, it's really a philosophical argument going on between the keynesians and out of milton freedman school of what works in an economy. most of the guys who are arguing for kyynes never read him. it's what you hear out of washington. you mentioned the infrastructure, they're talking about really another stimulus bill, but the last one was supposed to get us some of that infrastructure and it disted. we need to get more none to the states because they need to maybe refurbish schools, maybe deal with mold problems, but also let's put solar panels on some roofs here. they're also talking about getting money to states so that they can maybe save for jobs of teachers and other state workers. finally, it's about a $97 billion gap between what's required for medicaid and what the states can afford to give and so the stimulus is -- it's stimulus, but a lot of payback. >> kelly: i hear you loud and clear. >> there is another side,

though. on the other side says that we've got to make -- if we want to create jobs, we've got to make jobs easier. there is interesting ideas that are starting to float. not just the idea of a tax credit for new hires, but also an idea of trying to remove some of the regulatory problems if you're trying to create a project. you may get one permit and stand in line for another one. the idea is streamline them so the projects can be put back to work. >> kelly: it means the republicans and the democrats will have to work together. let's remove the job situation out of the political crosshairs right now, this partisanship. how can we see the private sector work hand in hand with the government to get some of these programs created? >> first of all, i think you have to give credit to the private sector because that's the one place that anything has been working. the only jobs created since 2010 have really been in the private sector. 2.3 million jobs. the problem is it's not enough,

but it's the only place you've got it and they're fighting against these head winds coming from washington. the private sector has been trying to get what they need to get people back to work. but they're not getting any help out of washington. just keep in mind, just to handle new people coming into the work force, we need 100,000 jobs a month. >> kelly: that's right. we thank you for that. we wish we had more time to talk to you. >> thank you. >> kelly: appreciate your comments,. >> heather: the 2012 race heating up. president obama now getting beat in the polls by one of the republican 2012 candidates. we'll tell you which one and what else brand-new polls are showing about the race. break free. with miralax. it's clinically proven to relieve constipation and soften stool with no harsh side effects. just gentle predictable relief. miralax.

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>> kelly: when the race for the white house the so-called yep eric republican has been leading president obama polling for quite some time now. >> heather: absolutely. but for only the second time, this campaign season, an actual republican, not just a generic one, is leading, too. a real one, with a real name and it is texas governor rick perry. he gets 44% of the vote to the president's 41%. but given the margin of error, it is effectively a toss-up. the other candidate was mitt romney a few weeks ago. but his lead was only by 1

point. here is scott rasmussen to talk about this and more. thank you for joining us on this labor day weekend. >> happy to be with you and obviously it's good news for rick perry. but he's jumped in with a great start in this campaign. he hasn't even been in a debate yet. there haven't been the attacks on him as other candidate high school to endure. this number, if it holds in a couple of months, will be more meaningful than today. >> kelly: scott, what about the fact that the president, he does outpoll all of the other republican candidates? so if perry goes down in flames for some reason what, would happen to the republican candidates at that point? >> it's a little bit hard to tell. rick perry is a front runner now, so he naturally polls the best. in 2004 when there was a challenge to an incumbent president, howard dean polled the best. as soon as he lost his front runner status, john kerry was the front runner. i think the most significant thing when i look at all the numbers, a few months ago, the president was getting between 42

and 49% no matter what gop candidate we put in the mix. now the president's numbers are from 39 to 46%, about three points lower. the president is a little more vulnerable today than he was a few months ago. but the election is a long, long away. >> heather: but there is always the palin factor that we have to talk about. what about sarah palin? >> sarah palin is beloved by many in the republican party. even by many who don't want to see her become president. 60% say it would be bad for the gop if she became their presidential nominee. that includes 52% of republican voters. this is a woman who has been treated as a media figure from the day she came into the spotlight when she was nominated by john mccain. most people tend to think she's been treated poorly by the media. in fact, more poorly than other candidates. but the end result is, 58% nationwide have an unfavorable

opinion of sarah palin. >> kelly: let's shift gears here. i hate to use that term. let's switch from politics to hurricane irene, which pummeled the east coast. we're all rebounding from it. how much of an impact has hurricane irene had on americans along the east coast? >> 69% of all americans say they're concerned that it will have an economic impact on the nation, about a third say they're very concerned about that. when you look a little bit deeper, i think what it tells us is that people are concerned that anything could go wrong would hurt a very fragile economy. right now just 15% say the economy is getting better. 64% say it's getting worse. those numbers pretty much the same as they were before hurricane irene. yesterday's jobs report probably has a big -- is a bigger cause for concern than last week's storm. >> heather: speaking of big causes of concern, scott, you have a very interesting poll that you conducted, a weighty

issue, we could say. >> i can't believe you said that. we asked people if they're overweight. about one in three said that they did. and guess what? women are more likely to say they're overweight than men. >> heather: really? >> it's either because they're more aware -- i don't know. half americans -- >> heather: there was an interesting thing about diet. people claimed they're not really doing diets? >> well, about half say that they diet. 84% say that they pay attention to the food they eat. and it is a cause for concern again. women, more careful about what they eat than men. no surprise there. >> heather: craziest diet i was ever on was the cabbage soup diet. >> kelly: i pay to say what i eat. i like it all. >> heather: that's nice. very nice. >> kelly: thanks, scott. >> heather: thanks so much. you can catch scott's special radio talk show tomorrow at 3:00 p.m. streaming live on-line.

you can call in and ask him a few questions. thanks, scott. >> thank you. >> kelly: that would do it for us this hour. we appreciate you being a part of us. >> heather: time for dinner. gregg jarrett takes over at the top of the hour. see you tomorrow. [ oswald ] there's a lot of discussion going on about the development of natural gas,

whether it can be done safely and responsibly. at exxonmobil we know the answer is yes. when we design any well, the groundwater's protected by multiple layers of steel and cement. most wells are over a mile and a half deep so there's a tremendous amount of protective rock between the fracking operation and the groundwater. natural gas is critical to our future. at exxonmobil we recognize the challenges and how important it is to do this right.