>> clayton: a lot of commentary and thoughts on our last guest on the show, i'm sure, keep those e-mails coming and also, weigh in about our slow driving in the left lane, should they be ticketed? chris russell, thanks for joining us this morning from southern hospitality and go to our web site, because all the recipes are right there. thanks for joining us. >> more on the "after the show" show. >> a "fox news alert," tropical storm lee unleashing punishing bands of rain, as it comes ashore in the gulf coast. and fears of flooding growing as the storm is now lingering. and, churning up threats of tornadoes. levees and other flood defenses facing their biggest test since

hurricane katrina in 2005. i'm kelly wright. >> jamie: i'm jamie colby, kelly, good to have you here. and the storms are not letting up. look at what it is like in the wensd of l west end of louisiana. it could dump 20 inches of rain in some areas over the coming days. >> the pumping station over here is not turned on and people wonder why. >> the trigger to close the gates, and to operate the pump station, at 17th street canal is -- lake ponchartrain, 5 feet and predicted to rise to 7. and, we haven't seen that yet and don't predict we will. >> i don't think it is over yet, so i think it will get worse before it is gets better. >> jamie: they are worried folks and with good reason and elizabeth prann, is live in biloxi. is it any better today? you have been braving the elements. >> believe it or not it is a beautiful morning here but that doesn't mean people should be complacent. because we're still in the middle of the storm and we can

get those busts of rain, rain clouds, at any moment. here at the marina, this is a good example of how much water we have seen. yesterday we were being pelted by lane like you said, jamie and the water line, naturally before the storm hit was a foot-and-a-half lower and you can see, it is all the way up at the dock here and a lot of the debris from the gulf shows the water was up, and submerged the entire parking lot, last night and so what local officials are concerned about is people getting up this morning and seeing that it is a beautiful day, and they should head out and see what some of the damage looks like around their area. but that said, we did see almost a foot of rain here in biloxi. that's a lot of water and there are a lot of trees that have fallen and debris in the roadway and people ned to be safe if they head out today. jamie. >> jamie: what other storm impacts are we seeing? we saw maybe the national guard that was actually involved at this point. power outages, shortages of food flies, what else are you hearing, elizabeth?

>> you know, in addition to those damages, that you could say, to people's daily lives, we're also seeing a huge hit, economically. here. i just got off the phone with a public information officer for here in blocks and he said it is really going to be a hit to their pocketbook. labor day is a huge weekend for them and there's a number of casinos along u.s. highway 90, and those, although open, jamie, not full, this weekend. >> jamie: clearly, hit hard, elizabeth, thanks for staying on it for us and glad you got a little dry time, too. take care. >> reporter: thank you. >> kelly: what is next as tropical storm makes its way inland? rick reichmuth is live in the weather center with details. >> rick: yes, she's in a little bit of a break there. there is more rain to be had, lafayette, a break between the two bands. heavy rain across the panhandle of florida and the watch box in effect and, the beaches, people trying to get out this last weekend, here, of summer, i know

official weekend of summer, and, very very, rough one. look at all of the flooding across the south and you see the green we have flooding concerns, the red is flash flooding going on, and, also, tornado warnings, going on just across the south central area of mississippi now and we'll continue to see that. i want to point out, go all the way towards northern new england and last weekend, all the flooding we saw across vermont an upstate new york, all of the green shaded counties, flash flood watches in effect, because the moisture that we're dealing with, from lee is going to make its way up into parts of the northeast by the time we get to wednesday and thursday and some cases maybe 4, 5 inches of rain, with the saturated ground and we will not see the flooding we saw last week but a slowing of the cleanup and potentially, quick water rises again, into some of those streams. quickly, look at katia, a hurricane again. getting its act together, a little bit and, track continuing to pull off towards the west-northwest and strengthening a bit and i think we'll see that and the big question will be, when will it make the right-hand

turn, if it makes it later, potentially dealing with a brush of the storm across the outer banks, hit with irene last week and affects towards the northeast and cape cod and the island and hopefully we won't have a direct impact but i give it a less than 10% chance of dealing with impacts, but close enough to watch it especially as we continue to clean up from irene. >> kelly: appreciate the update. thank you. >> rick: you bet. >> jamie: folks in northern new jersey are sorting through the major damage from last week's big storm, hurricane irene. the heavy rain swelling the passaic river. and spilled its banks into the town of party son, causing major damage. the floodwaters are forcing hundreds of residents to evacuate. president obama traveling to new jersey, to tour the damage today. we'll have more in a live report at the bottom of the hour. ♪

>> kelly: new fears iran may be one step closer to acquiring nuclear weapons and an announcement on state radio verifying the first now, clear power plant has been connected to the national power grid for a test run and it is apparently the first time the plant entered the operations stage. the experiment setting off international alarm bells, about tehran's uranium enrichment and its capabilities of producing a nuclear bomb. jamie? >> jamie: after 6 long months of intense bloodshed, libya's rebel leaders may finally be on the verge of declaring victory. a military spokesman for the new government saying they are poised to wipe out one of qaddafi's remaining strongholds. but, that is still unclear. whether loyalists who have been entrenched in several libyan towns will agree peacefully. live in tripoli, now... dominic? >> reporter: jamie, they have no way out but to surrender or die, that is how one rebel leader has

phrased it today. saying the last three bastions of loyalists will soon go. the focus this very day, though, is on 90 miles southeast of tripoli where they believe 100 fighters have dug in and are contemplating giving up their arms today and, they belong to a tribe which is the same tribe the soldiers, the rebels that surround the city at the moment, it would be a cataclysmic schism in that, were they to have to go to war and fight each other and expect the next few hours, indeed it will also fall and something they would like to replicate, the lack of resist and, in sirte, where rebels have surrounded the city, they are unsure of the scale of the resistance it could have there and the tribal elders of the town war talking to the rebels and are contemplating what exactly the deal would be and were given an extension to september 10th to surrender and the rebels say it could be before then, if indeed they can spare the bloodshed, if indeed

the loyalists don't have the op tight for that. we're also believing -- appetite for that and, we believe saif al-islam, was in one of the towns, and they feared those in the city no longer support him and he flett and they found that out from loyalists who surrendered. and really the focus has to be sirte, with respect to what is happening in the town now and it is too strategic. it would be a psychological blow to the loyalist and the halfway point between the country, with rebels in the east and west and there are fears there could be civil war between rival groups. back to you, jamie. >> jamie: dominic di-natale reporting live on this critical development. >> kelly: looking ahead, what do we know about the rebels and will libya be a better place for those who live there and the rest of the world under rebel control? joining us is a former senior

advisor with the state department and a principal with d.c. international advisory. thanks for joining us this morning. as we have seen from dominic's report, there are still concerns about the future of libya in terms of how the rebel forces will govern themselves. will they split along sectarian lines? what will happen there? >> well, kelly, it is often said an army prepares to fight the last war, a critique of calcified thought and that applies to the army of analysts who -- in washington who, in libya see only iraq. post-war equal, baghdad and i think there is cause for optimism. you have a lot of positive factors if you look at the way the government ran itself during the war and now, after the war, final stages of the war, actually has been inclusive of all of libya's tribe and they have a 20-month process of standing up a new government and constitution and one ratified by the libyan people, starting with elections in 8 months and, there

is an inclusive process, and, from washington you hear sort of the same talk of post-iraq war days and talk of chemical weapons and al qaeda an sectarian violence and insurgency, and there are definitely some storm clouds out there on the horizon, as you expect at any post-revolution situation. but, there is also cause for optimism, i think. >> kelly: a lot of what you say about the plan, moving forward has the result of the result of tnc, transitional national council, that has been working to look at the future of libya. based on their input, and their involvement, as well as the international community, do you expect or anticipate a peaceful transition to democracy? or, might there be some roadblocks ahead? >> as i say, there are storm clouds and people, you know, analysts have seized on a document they produced, not a constitution, but, perhaps an antecedent to a constitution that says sharia is the law and islam the religion of libya but it is important to keep that in

context. look at almost any middle eastern country it will produce something like that. but, the question is, whether they want the iranian style theocracy where elected leaders have to report to mullahs. and i don't think you see anything like that on the horizon. and there are two reasons. one, look at what the rebels say, they don't want a system like that. they wanted accountable government and democracy and look at the way they ran misurata and benghazi during the war, the two bigger population centers, it was commendable the way that he ran them and had law and order but it wasn't brutal like the taliban or the so-called virtue police in iran and so, again it looks more positive. >> kelly: what can the united states, and the international community, i.e., example, nato, what can they do to help these rebel forces form this new democracy that would of course be unlike a western democracy but certainly something that would bring stability to libya? >> well, either nato or perhaps, through the u.s. acting with the

two big partners in the war, which are qatar and the united arab emirates, we could establish linkages with the military and police forces and what the obama administration should do, unfortunately is not doing, should unfreeze the funds that qaddafi stole and have financial institutions in the u.s., $30 billion, and more, so far the administration has only been able to unfreeze $1.5 billion and they thought a permission slip from the u.n. to do that. another one of these instances, where washington is looking for an excuse to breathe life into the u.n. and give them the money they need to run libya. >> kelly: very understandable, appreciate your comments, especially on this important topic in terms of the future of libya. thanks. jamie? >> jamie: it is a big week for the president, because major test is really afoot. intense focus, right now, probably even in your home. about his upcoming jobs speech. the pressure is mounting, for him to deliver results.

and then there is friday's dismal jobs report. 14 million americans are still out of work. how big a plan does it need to be? what is the message he'll need to get across to get support from both sides of the aisle? and will he get a jobs plan he presents passed? a staff writer for "roll call" great to see you. good morning. >> good morning, jamie. >> jamie: i wonder whether or not the president had his speech prepared and when those jobs numbers came out, not a single job was created in august. he might have tweaked it a little. what do you think it will be. >> he probably hans plans s pla ideas in the works but obviously the numbers that came out friday were not good news and worse than even the white house expected. the fact we added no new jobs to the private sector and unemployment is still stagnant, 9.1% is not good news for the president and he had already, as of friday's schedule, the big jobs speech for thursday night,

we'll address congress and the nation, on this is johis jobs p perhaps the biggest night of his presidency, in my opinion, so far. >> jamie: and imagine millions of people, maybe as many as half or more of the people without jobs will watch and clearly the democrats in the room will stand and applaud at certain points and the republicans who feel their job plan works better won't. but i want to show you a fox news poll and ask you if that could happen, or if everyone stays in their seats. because, this poll says that the u.s. political system is not working the way it is supposed to. according to a staggering 74%. not only do the people who are polled, americans polled, feel it's not working they feel it is gridlocked and what is really interesting, of the 74%, is 82% are democrats. what does that mean? >> i think it means what we have

noticed a lot over the past two years, that the american public believes congress is broken. and you mentioned that great choreography that goes on typically during the state of union speech and republicans sit when the democratic president speaks and democrats stand and applaud, give a standing ovation and we didn't get that much earlier this year when the president addressed the congress, via the state of the union because members of congress paired off with each other amd seating arrangements were mixed and it will be different on thursday night when we'll see exactly what you described. the little dance and it is symbolic of where we've gone the past 9 months where people were at least making an effort to work together, across either side of the aisle, to post the debt ceiling debate, complete, utter gridlock in congress. >> jamie: almost like a match.com moment. >> exactly! >> jamie: where democrats and republicans paired off but i want to ask you about the "s" word and that would be spending. stimulus. a lot of people are saying the president in his jobs plan will talk about spending and stimulus.

but, call it something. >> yes. i think when the president rolls out his job initiative, jobs plan on thursday he's going to try and put some kind of spending programs, i think republicans, and a lot of centrists will call it stimulus by another name as you said but he'll have to do it in part because he has to watch out for his democratic base and it is in some ways, some economists believe that it is a fast way to jump start the economy. really quickly. long term. it is very debatable whether or not it has benefits. but, if you want to fund jobs and get people on the road and shovel-ready projects you do it via stimulus. >> jamie: and, it will be a big and interesting speech and the analysis will be fascinating. of course, fox news will have it for everybody. thanks so much. great to see you, as always. >> thanks for having me. >> kelly: a lot of people will watch this on thursday and former vice president dick cheney sitting down for a one-on-one with fox news sunday. anchor chris wallace joins us with a preview of the interview

including what cheney thinks president obama needs to do to fix the limping economy. and, just days will the nation marks ten years since 9/11 a new warning about small planes and potential terror plot, straight ahead. hey can i play with the toys ? sure, but let get a little information first. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time.

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>> kelly: welcome back, a spirit of resilience, proving to be alive and well in tuscaloosa, alabama. finance giving a warm reception to the opposition, kent state. here's why: its players actually helped in rebuilding efforts over the summer, talk about good sportsmanship and folks there are saying the area is still struggling, however, to get back on its feet. >> been out here with people who have come by, trying to sell goods because a lot have lost jobs and don't have anything and are trying to support their family. >> it wasn't the only place affected. the whole state was affected. >> kelly: tough times there. a tornado killed 50 people and destroyed thousands of homes and as for the game, the crimson tide won, 48-7.

>> jamie: today again on fox news you will not want to miss former vice president dick cheney appearing on the program and he offered new insight into his time in the white house and his advice on what president obama must do to get the economy back on track. >> obama is making a speech to congress, to the nation, next thursday. a new plan, to turn around the economy. based on what you have heard and what he has done, what are your thoughts? >> i don't think it will get the job done. i think we need a very, very serious effort, primarily through tax policy, to provide incentives and encouragement for people to save and invest, and to expand their businesses and to create more jobs, the kind of thing we did in the early reagan years, 30 years ago. >> jamie: joining me, the anchor of fox news sunday, chris wallace. good morning to you. >> good morning. >> jamie: he didn't mince words. what do you think, if the president has a plan close to what the vice president is

proposing. >> no, he doesn't mince words and let me say, there is a little bit of cheney fatigue because he had a bunch of interviews, selling his book, this week, "in my time" and i promise if you watch the replay at 2:00 p.m. on the channel, or 6:00 p.m., you will see a different dick cheney, a different interview. he talks... very interesting terms about the diminished cloud he had in the second term as the president went the diplomatic route and asked about the push back to his comments from colin powell and condi rice and talk about president obama and hillary clinton and whether she'd be a more formidable democratic candidate than barack obama and talked about mitt romney and rick perry and it is a different dick cheney and i promise you will see stuff and very much enjoy it. >> jamie: chris, there is not much he doesn't talk about with you. i think this is probably his most open interview. he talked about the military strategy and september 11th. he talked about, as you said,

the relationships with colin powell and condoleezza rice. what surprised you about the sit-down with him? >> i don't know that it surprised me because i have interviewed him a lot over the last 30-some years. but, you know, at one point i say to him, i talked about the things that colin powell said back and these are cheap shots and do you want to take anything back and he goes, nope! that is classic dick cheney. and one thing that is also really great in the interview is we talk in very personal terms about his health problems. and, one of the things he reveals in the book. he was unconscious for five weeks, after he had the heart pump installed, five weeks, unconscious, he talks about that and the choice he'll have to make, whether or not to get a transplant and talks in very moving terms. not just about his vice presidency but four decades of

service to the nation and how he hopes he'll be remembered. not to be missed. >> jamie: as i said in the beginning, and it was not script. i told people it is one they don't want to miss. thank you so much for giving us a preview. and, we'll look forward to it. have a great day and a good weekend. >> thank you. >> jamie: for more of his in-depth, interview, the former vice president, dick cheney, tune into fox news sunday, it airs at 2:00 p.m. and 6:00 p.m. eastern on the fox news channel and you can always check your local listings, every day sunday. -- every sunday. >> kelly: and tropical storm lee pounding new orleans and the gulf coast while flooding concerns grow. what about the leaveelevees? . we learned from that and we'll talk to a man trying to reinforce the levees and ask what kind of threat they are now facing. >> we have a flood, where the

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>> jamie: welcome back, quick check of this morning's headlines, folks in louisiana are bracing for a very soggy

sunday. tropical storm lee slowly make its way through the gulf coast and is leaving thousands without power, casting a dark cloud over several businesses this labor day weekend and iranian state radio says the country's first nuclear power plant may soon be up and running. a test run sunday setting off international warning bells about tehran's capability to produce a nuclear weapon. and, syria take a swing at the european union, a state newspaper calling the eu's decision to block oil imports, a sign of, quoted, colonialism. the sanctions are a protest against syria's five month long deadly crack down on their own people. >> kelly: president obama preparing to leave the white house to pay a visit to flood ravaged northern new jersey and the area assessing the damage from hurricane irene which barrelled through just one week

ago. julie bandaras is live now, in patterson, new jersey, where the floodwaters have receded and they are still a -- there are still signs of damage there. julie? >> reporter: the place is still very flooded. in fact the worst it has ever been, accord to residents here, who say just six months ago they were flooded and every year they get flooded by the passaic river, just at their door stems. look at the home actually behind me. this is perfectly example of what we are seeing, block by block, debris and mess and mud and water mixed with raw sewage and people living in terror, they have no power, in fear every night of looters which has become a recurring problem and water actually went 2-3 feet up, onto the second floor of many of these homes. the president will be joined in the tour, by new jersey governor chris christie and other local officials who will be making 2-3 stops and the governor announced yesterday, in fact, that obama has extended federal disaster relief to 16 counties.

the declaration frees up federal recovery funds to supplement state and local recovery efforts. and irene killed 7 people in new jersey, about 5,000 homes in total were damaged by flooding. and, as power outages persist and floodwaters here continue, less than 16,000 homes and businesses remain without electricity. many residents have been unable to return to survey the damages, and homes are still under water and residents remain in shelters, in fact, while the flooded passaic river slowly recedes and others are trying to clean up by throwing out damaged belongings or clearing tree limbs with chain saws and, towns continue to calculate the damage in hopes of becoming eligible for federal disaster assistance and the christie administration, in fact urging new jersey residents affected by irene to apply for federal disaster relief. if you live in one of those areas, fema outlined three steps to receiving disaster assistance. and go as follows, step one, register by phone at

1-800-621-fema or 3362 and step two, inspections, register a fema contracted housing inspector will call you and set up an appointment to inspect your prompt. and step 3, keep in touch among the 5 top reasons applicants actually fail to receive assistance is because fema's inability to contact them after they apply, poses a big, big problem and i want to take you back live in patterson and, just look, because that is the passaic river. you see it flowing, way, way back there? mike, if you go ahead and pull the camera out, zoom out and just show the level of flooding that is still existing in the area. and, to think these people still don't have power. it has been a week since the hurricane hit this area and this is one of 16 counties that has been declared a federal disaster area. the governor, christie, is actually asking all 21 counties be declared because they really need the federal aid here. back to you. >> kelly: before i let you go, i have to ask you, you mentioned the people were living in fear

of looters, are they getting help from police or can they go to a shelter, or live with loved ones until things are cleaned up. >> reporter: people are urged to go to shelters but a lot of people don't want to leave their homes and want to guard their homes and guard their belongings. some are sticking here and without electricity have their control phones with battery chargers so they could call police in case they needed to. >> kelly: thanks, tough going for them and the president will visit there shortly. thanks. jamie. >> jamie: they're not the only ones braving the elements. flooding concerns are growing in the deep south and tropical storm lee and it is now drenching the region with bands of heavy rain. as history has tragically taught us, the levees there are a critical factor during these storms and how are they holding up? joining us now, president of plaq plaquemines parish in louisiana.

over the last couple of days we have talked and you have grave concerns for the people of your community and put out there yesterday when i had you on that the money exists to fix the levees, it has been sitting in an accounted tshgccount for twou can't get your hands on it. did you get any calls, since making the statement. >> no, we were on the levees fighting all night and have overtopping, first thing this morning. and the water seems to have come back up. and, hopefully after this airs we will get some rethinking of the core and a little bit more sense of urgency, to get the shovels in the dirt and get these levees repaired. it is unthinkable six years after katrina we are still flood-fighting every year, in minor storms and not even a major hurricane. >> jamie: what do they tell you? >> well it is procedures, you know? they have to go through that and the engineering and the design and the bureaucratic red tape in

the core projects is just -- it doesn't work and, it takes way too long. we'd much rather see the money flow to the local level and let us build the levees and we can do it quicker and with less money and better because it protects our homes. we have to rethink the way we do business in washington. it us just not working. >> jamie: not only are lives at stake, it occurs to me if you got your hands on the money you could put a lot of people to work. >> absolutely. the local economy, the local contractors and in this case, this morning, we have severe overtopping, we have a conoco phillips refinery that employs thousands of jobs we risk losing. for ike we were several inches away from losing the refinery. and ike hit the other side of the state. and here we are, flood-fighting again, to save jobs, save our highway and our community. on a levee that money sits in the bank to fix. >> jamie: can the citizens of your community help you in your

efforts? are they getting involved in calling their elected representatives? this is important. >> well, hopefully, after this airs, we'll be able to get a little bit more attention. and, general walsh will step up to the plate and see these levees get under construction immediately. and we won't have to go through it next year. >> jamie: the teams are there and no one would say you are not someone who is trying to make a positive difference and help the people in your community. appreciate your time, this storm, did it end up being as serious as you expected . >> we're not out of woods yet. this morning, 5:30 we got overtopping again and we're putting tubes along the highways, so, it is a lot worse than we thought it would be, because it keeps pounding those levees. and is moving so slow we have several more hours of fighting. >> jamie: all right, slow-moving and you pounding, not good for you or the people in your area and we're praying for you. the president of plaquemines

parish, take care. kelly? >> kelly: we're days before marking ten years since 9/11. a frightening terror warning is out there about potential attacks using small planes and details coming up on what is setting off the new alarms. and, "national geographic" takes us inside the war to stamp out the drug trade. you have to see this. it is happening lane our southern border. coming up we'll take an in-depth look at the latest installment of the critically acclaimed series, border wars, and what is the -- the cameras are actually catching and didn't catch. >> 17,000 pounds of illegal drugs are going up in smoke. instead of out onto the streets. these drugs were worth millions of dollars. but it's a fraction of what the illegal drug trade takes in. n t? oh, there's a prize, all right. [ male announcer ] inside every box of cheerios are those great-tting little o's made from carefully selected oats that can help lower cholester. is it a superhero?

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helps defends against occasional constipation, diarrhea, gas and bloating. with the strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health. >> jamie: a teen in florida is in police custody. you won't believe why, impersonating a physicians assistant.

police say the 17-year-old scammed his way into an i.d. badge at the osceola regional medical center and used it to roam the facility, not for a day or an hour, two weeks and during that time offered assistance to doctors in emergency rooms and performed exams, even -- kelly is laughing. unbelievable. cleaned and dressed wounds and his father said he had no idea what his son was up to, or why. >> if you can come up with a reason, i'm all ears. i am completely and totally all ears. i don't know if i need to get him psychiatric help. i don't -- i don't know. >> jamie: me, neither and i doubt it will help him get into medical school, and according to records all the patients involved did receive the care they needed, and kelly's relieved. >> kelly: i am, indeed. but he wants to be a doctor. on the horizon an alarming terror threat.

the fbi and homeland security warning al qaeda may be trying to plot terrorist attacks, using small airplanes. we have heard this before and they say terrorists plan on renting private planes and loading them with explosives. authorities do say, however, that they are unable to verify specifics on a possible plot, any credible intelligence and with the u.s. days away from marking ten years, since 9/11, how concerned should we be? walid phares is a fox news channel middle east an terrorism expert and is also the author of the coming revolution, the struggle for freedom in the middle east and we have heard these threats before but given the fact 9/11 is days away, there should be concern out there about what al qaeda might be up to? >> first of all, the government is right, that small planes including the private sector, we're talking about huge fleets,

exceeding the commercial other fleets, are a source for a threat, using them, or attacking them, or kidnapping or actually hijacking these planes is something that was planned or was in the plans of the jihadists network's worldwide and now to say that there is an imminent plan, the government says they don't provide such information but are right to say this is an area of interest for the al qaeda -- noting also, kelly, that al qaeda has an international network and an american network and they know exactly where are our washingtonness in terms of security threats. >> kelly: how right you are and looking beyond the domestic threat of terrorism, from al qaeda, we know that ayman al-zawahiri is the leader of al qaeda and has put out a fatwa saying they can strike western targets such as american diplomat and tourists who might be traveling, broad and what about the warnings for travellers, during this time of

9/11? >> kelly, the subject of those warnings is on target. ayman al-zawahiri and others includiin have given guidelines and instructions to their supporters, not just members of al qaeda, but allies of al qaeda to target any american interests and so that falls into the framework, but, the timing when the terrorists would hear we are issuing those warnings, most logically they will not actually act, they'll try to find another way and area of interest for them. >> kelly: this is your area of expertise. what are you hearing on the ground? are they on the ropes, on the run or trying to make a last-ditch effort to do something that would cause terrorist problems in the united states? >> the assessment in washington is that al qaeda has been weakened and is on decline and i think that al qaeda doesn't perceive it that way, yet we got bin laden and other senior officials of al qaeda.

but this is an international network feeding every day from pools of indoctrinated people and actually, al qaeda is bigger and wider and larger and more penetrating in a variety of countries and it is in pakistan and afghanistan and somalia and, the horn of africa and the south area of africa within u.s. and other democracies and in terms of expansion, al qaeda is in a second and third generation though it the first generation weakened. but the fourth coming through will be much wider. >> kelly: an assessment of where al qaeda is and that means we need to be vigilant. thanks for your insights into the troubling problem for all of us. thank you. >> thank you. >> jamie: there is another interesting problem. the u.s. government, the justice department, is suing more than a dozen banks.

claiming they sold fannie mae and freddie mac more than $200 billion in fraudulent loans, it happened three years ago. so why is this government suing now and what effect could it have on our already struggling housing market? we'll be right back. woman: downloading music can be expensive. so to save money, i trained my dog and this cockatoo to play all the hits of the '80's woman: hit it, mr. butters. ♪ ♪ take on me...

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>> jamie: great to have you back. federal regulators are now suing 17 banks for selling mortgage giant fannie mae and freddie mac nearly $200 billion with a "b" dollars in mortgage backed securities that later soured. the question is, why are they suing now? it is three years after the mortgage collapse. and, it is a time when we're trying to get more banks to lend money. joining us now, managing partner of chadwick capital management and, ed, it is great to see you. >> great to see you, too, jamie, thanks for having me. >> jamie: it feels like deja vu, didn't we already go through this, and why is this government suing now? >> that is a great question and i don't believe it makes any sense with one exception: from a political side. i mean, basically, this is the politically motivated lawsuit and i really believe, jamie, this is another example of pitting main street versus wall street. because it doesn't make any economic sense, it is three years later and that doesn't mean that you know, we should

brush it under the carpet here. but, the bottom line is, it doesn't make a lot of sense excepts from a political side. >> jamie: i guess my question is why weren't they getting this taken care of all along? the banks, bank of america, jpmorgan chase, goldman sachs, morgan stanley, citigroup, goes on and on, the list, they have been allowed to do this, for this period of time and get away with it? >>. >> the question is what are they getting away with and need to reflect back on themselves and the government can't sue themselves but if you think about it, the moment fannie mae and freddie mac backed something it got a aaa rating and the way it work, fannie mae couldn't pay for it. the government and the full faith and credit of the u.s. government would come in and back those mortgages. so, the moment that happened, what really took place was now you had aaa rated mortgages and it was because fannie mae basically said i'm blessing these and when that happened they could loan those mortgages out and pools out and they could be loaned and borrowed against and i don't know how much cup

ability lies with them, and people say the bad banks... i don't think it is quite that simple. >> jamie: sounds like tax dollars at work and the question is speaking of dollars, people want to borrow money and we hope to banks will put it out there and stimulate the economy. are they tightening the strings. >> i'm sure there will be some and another part that doesn't make sense, the one partner, the most important partner the government needs are the banks to loan money. and, here they are, just smacking them in the face, not only, you know, possibly and most likely in their wallets but also publicly. it is making the bank system look bad again and stock pricing will fall back because of the fear and you will see less loaning and it's not a good move with one exception, it will potentially help president obama look good, that he is now being strong against wall street, when he's out there, you know, basically going after and trying to get reelected. i'll say, jamie -- go ahead, i'm

sorry. >> jamie: you bring up such an important point and may bolster him looking like he's cracking down on these banks and possible corruption or whatever you want to call it. but, you know, in my mind by going after the banks and the fact that it went on for this period of time, if these bank stocks plummet are are hurt the economy and markets will be, too and people are watching those numbers, every day. >> and he's failing on the xha and, he's going to push it to the bank's fault and what else? congress's fault instead of looking in the mirror and see what he can do to develop jobs he's pushing the blame and what will happen? june or july we'll see a settlement, all of the 17 banks will pay money and he's going to be able to sit there politically and say look what i did for you, this person on main street. >> jamie: you report and folks can decide. interesting issue. not only to track the lawsuit

but the repercussions for the big banks and ability to led. always good to see you. >> thanks, jamie. >> kelly: new orleans facing the biggest flooding threat since hurricane katrina. we head to the big easy, next, for a live report. as tropical storm lee bears down on the gulf coast region and, "national geographic" goes on the job with the u.s. border patrol in the new season of border wars, the man behind the series on what made the season especially channeling illenging dangerous as agents take on the drug trade. >> one of the most value things they get is cash, transported in bulk back to cartels. >> a great seizure. e widow-make" i was put on an aspirin, and it's part of my regimen now. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. go see your doctor now.

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. this is a fox news alert. growing fears of flooding in the deep south. tropical storm lee drenching gulf coast states. the storm slowing as it makes landfall dumping inch after inch of rain on the same spots as water pumps are struggling to keep up. good morning i'm kelly wright. >> jamie: and i'm jamie colby name is the last thing they need. tropical storm lee could bring 20 inches of rain as it stalls over the southern states. there are areas that have seen less than half that already dealing with serious flooding like in west end, louisiana.

>> we have boat houses on pilings that are flooded right now. we have water coming in because of the lake is so high. >> boat house has two feet of water on the first floor. boats are banging around we secured a few. >> you have to be careful where you walk. there's a lot of submerged debris. objects in there that you can get cut up on. >> jamie: i hate to say it, but sewage too. casey stegall, what are you seeing there? >> reporter: we are seeing a number of things from downed trees in some spots to downed powerlines. thousands are without power in and around new orleans at this hour. the big thing we are seeing and the real concern is flooding. not so much in the beautiful french quarter where we are now, but more in the lower lying areas. take a look at what it looks like now in jefferson parish, five miles southwest of where

i'm standing now. a lot of flash flooding, water over the roadways, but no serious reports of flooded homes or injuries associated with this storm. we are seeing the same pictures coming out of the lower st. bernard parish. again, all spots that we heard so much about during hurricane katrina. the sheriff's office tried their best to get a handle on the situation ahead of this storm making landfall and it distributed half a million sandbags. as this system hovers over the gulf coast states, more rain is expected today and tomorrow. which is why the mayor of new orleans is saying, do not breathe a sigh of relief yet, we are not out of clear, just yet as more rain is expected. today even though it is not falling at this point you can see the dark clouds over the skyline behind me, so more is on the way. >> jamie: of course the concern is the levees. we were all there for katrina

and we saw they didn't hold. in the last our plaquemines parish president was telling us that he's worried. they didn't fix it. what about their? >> reporter: billions of dollars worth of improvements were made to the levee systems, 133 miles of levees in and around the city of new orleans. yesterday we were getting reports of a breach in three places of the back levee, as it is called in plaquemines parish. bulldozers out there yesterday working to reinforce those. the army corp of engineers say the levees are holding in other spots. they are keeping their eye on it. >> jamie: casey, thank you. >> kelly: one of the big concerns with tropical storm lee now is that it doesn't seem to be moving much. it seems to be stuck over the gulf coast region. it is just there lingering, hovering there. that is causing big concerns.

chief meteorologist rick reichmuth is in the weather center with the latest. we've seen the flooding. where is the relief for the people in new orleans? >> we have another couple days of rain, will probably see four to six inches in some case is. if your ground is waterlogged, it is a problem. this isn't much of pressure on the levee story we are not talking a big storm surge. this the storm that is going to test those levees. it is a lot of rain falling across the southern part ofr#?l[ louisiana, a lot stretching to the north. panhandle of florida getting pummeled, tornado watch in effect until 4 p.m.. we've seen damage from tornadoes across the south, mississippi, alabama, florida and louisiana. we'll continue to deal with that threat today.tseñç all of this system is going to get caught up in the frontal system to the north. all this moisture moving across parts of the northeast. one bright side, i got to point this out. people in the south dying this

summer from the high temperatures, triple digits, this cold front is cutting through. we are going to be dropping temperatures across parts of the south, that's great news in the meantime, all this moisture causing big flooding concerns, tornado concerns, panhandle of florida, throughout parts of mississippi. this moisture is going to make its way into the northeast by wednesday, thursday. places that got pummeled by hurricane irene maybe another four to six inches of rain bringing more flooding concerns. here's another four to eight inches, excess of 10 to 12, far inland. coastal areas, at least new orleans and points west getting better. panhandle looking like we'll see more rain. hurricane katia has been upgraded to a category 2. it will continuing to strengthen, moving northwest no immediate concerns to the u.s. coast. we are going to watch this. we can't rule out we could have impacts by wednesday,

thursday of this week. >> kelly: oh brother. rick, thanks keep us up-to-date, please. >> jamie: texas governor perry jumping ahead in the polls and hitting the campaign trail trying to convince voters he's the only candidate who can deliver a victory for the gop in 2012. here he is yesterday in new hampshire >> you are going to hear a lot of appeals from my republican friends running for president. let me go on record, they are all good men and women. as we consider this economic misery that is spread across this country by the obama administration, we don't need a nominee who is going to blur the differences between themselves and barack obama. we are going to have a nominee who draws a clear contrast. the differences between president obama and myself are great.

>> jamie: perry is not the only candidate with that message. steve centanni joining us live in washington. how is rick perry doing with the tea party voters? >> reporter: well, with perry entering the race suddenly becoming the front-runner, tea party power broker jim demint, the south carolina senator was asked about perry today, especially about his moderate views in the past, including his once support pore the hillary clinton health care plan in the 90s. demint says he welcomes perry in the race but is not picking favorites yet. >> i'm going to withhold any endorsement or support for several months. it is important to me to see how these candidates respond to the big issues of the day. >> reporter: demint seen as potential gop kingmaker because of his successful role promoting tea party candidates in 2010. this week he holds a forum attended by romney who first declined. michelle bachmann, ron paul,

herman cain and newt gingrich. the candidates will appear individually and answer questions from a panel. >> jamie: what does the senator have to say about the president's upcoming speech? >> reporter: he wasn't very excited. said it probably won't amount to anything. here's what he said this morning. >> i'm frankly very tired of speeches. i don't want to be disrespectful to the president. what i want to see is something in writing. and the congressional budget office tells us what it going to cost so we can read and the american people can read it. speeches are not similar to the actual legislation. i'm frustrated with the speech -- >> reporter: whether he likes it or not, the president his speech thursday. >> jamie: a lot of eyes on that one. >> kelly: you are right, all eyes will be on president obama thursday as he unveiled his big job creation

plan. he faces a tough audience. a country where 14 million people are out of work right now. and then there's congress. will they support the president's plan? what happens if they don't? let's bring our panel. gretchen hammel. alan colmbs good morning to you both. we just heard senator demint state he's tired of speeches, he would like to see the president put a land that has something in writing, that they can visibly see and work on. then we know congressman walsh, a republican, is saying that he will not attend because he too is tired of speeches. gretchen, where does that put the republican party? >> it puts the republican party having to listen to the president's speech. many of them will. many of them will attend. this is something we don't want to see in washington. it is time for the partisanship to go to the side. it is time for the president

to give a speech that results in a plan. and for the republicans and democrats to be receptive of that plan. the and for them to have a healthy debate about that plan. and decide whether to act on it or not. >> kelly: alan, what gretchen just said is key. time to put the partisan politics aside. the president himself has said it is time for republicans to stop posturing, if you will. what do you expect here? >> i -- gretchen is right. people like walsh who just call the president idiotic and had to apologize. people like mcconnell my goal to get him not to be reelected. that kind of partisanship should go away. demint saying i don't want him to give a speech. if he didn't they will say why is he not communicate the american public. he will have a plan and hopefully they will get something done. >> kelly: i hate this say this on sunday morning it is like

damned if you do and damned if you don't. what is the president supposed to do? >> exactly. the president has to do something. he has to show leadership. people are tired of more of the same. they want to see a bold leader come out. they want to see a bold proposal that is going to put american people back to work. what they are more than likely to see is more of the same. but, here in america we need to have a healthy debate about where this nation is heading and the proposals. >> kelly: tkpwefp chen has decided it is more of the same -- >> i didn't say that. >> kelly: you just said it is likely to be more of the same. 14 million people are without jobs. some of those are watching right now. what do you think they want to hear from the president? what do you think they want to do or see congress do? they want specific plans, targeted to certain sectors

plans like having infrastructure re he has decided he's gone to certain departments like commerce, hud and agriculture and said we are going to remove some of the paperwork to make it easier to get projects done. the thing republican say they want is what he's doing. let's hope they won't object to everything because obama is doing it. >> i think the president is putting republican and democrats in a position if they do not bow to what he wants in this plan he will blame the economic problems on the republicans going into -- >> kelly: you are saying political gain for the president. republicans are being looked at as well bus they have to make some sort of action. you say it might to be the president's again in republicans don't do anything? >> if they don't offer their own proposals that will be a talking point for the president coming into 2012. >> kelly: former vice president cheney says we need to go back to the early reagan years.

he believes the president's new plan should include tax policy to provide incentives for saving, expanding businesses to create jobs. >> i'm not sure taking advice from dick cheney is in the interest of any politician. other than lowering taxes and changing the -- what else do they have? they keep coming up with the same plan. what new ideas do the republicans have for jobs? unless they come forward with a plan that is equally palatable, what do they have to offer? >> kelly: thank you both for your time. >> thank you. >> thank you. >> jamie: fox news alert. here's president obama, he's arrived on marine one at andrews air force base. he will shortly go up the steps to air force one. he's headed to new jersey today to survey the damage. he's going to join governor christie there, who has tried to help those in need. the president wants to see

firsthand, about the aftermath of all the flooding. there's the president waving good-bye as he boards air force one. the northeast was hit so hard as we were watching the south today with tropical storm lee, katia up to a category 2. a lot of weather stories going on right now in our nation. the federal funds are desperately needed for folks who have tremendous flooding in these areas, including northern new jersey where the president will go today to have a firsthand look and see what else is needed for those who are suffering there. the weather conditions in new jersey we should mention today, look good. we'll keep you posted on the president's trip as air force one heads to new jersey. >> meanwhile, new reports this morning that libya is on the brink of a leadership change. will it change its position on the lockerbie bomber case? we talk with a man who lost his brother in that pan am

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>> kelly: hundreds of thousands of israelis protesting, 250,000 demonstrators, angry over the rising cost of living.

the rallies marking the end of a summer long grassroots protest movement. protests initially targeting soaring housing prices. quickly evolving into rain against a wide range of economic issues including the cost of food, gasoline and educating. >> jamie: we've been talking about how hurricane irene not only lasted for days but left many to cleanup. that could last forever months maybe longer, especially for those who don't have flood insurance. in today's take charge consumer protection segment we wanted to look at benefits of flood insurance. maybe you don't have it, is it too late to get it? is it worth it? what do you do if you didn't have it? here now david sampson president and ceo of the property casualty insurers association. nice to of you here. >> good to be with you. >> jamie: why homeowner's

insurance enough? >> flood insurance, the standard homeowner's policy does not cover flood insurance. while we can control where a storm will strike we can control how well prepared we are once it does hit. the tragedy is along the mid atlantic coast and in new england, only 10% of homeowners have flood insurance coverage. these folks are facing a really tough future without the kind of coverage that really people need to have to be prepared. >> jamie: this program has been doing these take charge segments to try to help people protect themselves better. let me start with the worst-case sin their know. if you were -- worst-case scenario. if you were hit by irene and didn't have flood insurance will the state or government do anything for to you make up the difference? >> people can apply for emergency loans or grants from fema. what that means is that

individuals are at the mercy of the federal government, relying on the federal government for loans or grants. personally, this is something we as homeowners and individuals and business owners need to be responsible for ourselves. we can make preparation as head of time to make sure that we're covered for all the perils that we face. >> jamie: what does flood cover and what doesn't it? >> rising water. typical standard homeowners policy will cover wind damage, if a tree falls on the house, roof falls off, windows blow-out, water comes this that is covered under standard homeowners policy rising water from streets, ditches, rivers, those kinds of losses are not covered. and the flood insurance program will cover restoration, cleanup, rebuilding. we anticipate that the average cost in each of these flood

claims in the northeast is going to run between $20,000,000 and $38,000. if that is out-of-pocket that is going be a significant hit. >> jamie: it is hard to estimate at this point, but now the estimates are somewhere between 7 and 10 billion dollars from irene, it could grow. what advice do you have for folks who want to protect themselves? are the insurance companies writing this insurance? in florida years ago they had to , they ran out of money. >> flood insurance is written through the national flood insurance program, which is a government program. so, the policies are sold, serviced by the private sector insurance companies. actually, the coverage comes through the national flood insurance program, which by the way is up for reauthorization this year that program expires september 30th. in august the house of

representatives by an overwhelming bipartisan margin, 406-22, passed reauthorization of the flood insurance program. the senate banking committee is scheduled to take that up september 8th. we believe that congress needs to act quickly to get this program reauthorized. nationally, only 20% of homeowners have flood insurance. there's a very low take-up rate people have a lot of exposure they are not aware of. >> jamie: good point about that upcoming action in congress and if folks can get it sounds like they should. david sampson, thank you. >> thank you. >> jamie: get much more on our segments. we've covered a number of consumer issues. go to foxnews.com click on the america news headquarters page look for the link. it says take charge and you should. >> kelly: what does it take to

protect america's borders? next a behind the scenes look at the show that takes you on-the-job with u.s. border agents. we'll find out what made this season especially dangerous. the man behind the show joins us. >> american weapons are turning the cartels into private armies. >> they have the same resources as the military, same sophistication and a lot of times the same training. getting grime from deep inside grout takes the right tools, but also a caring touch. you learn to get a feel for the trouble spots. to know its wants... its needs...its dreams. ♪call 1-800-steemer. at exxon and mobil, we engineer smart gasoline

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>> jamie: fox news weather alert. tropical storm lee lashing the gulf coast dropping torrential rains on parts of louisiana and mississippi. we are seeing bad images of serious flooding. elizabeth in mississippi still getting a little break? >> reporter: yeah. we only are probably going to get another hour or two of sun. looks like there's a band of rain coming in. residents here starting to

come out and a look at some of the damages. this is chuck his stern railing was taken off with the storm last night. there was a couple feet of storm surge that came in, this is the eastside of the marina where you saw earlier. he bought his dingy a week ago that went under he doesn't have insurance on that. a lot of people don't have insurance. they thought they were safe here. it is usually calm. even though we've been seeing the storm the past couple of days look at these waters, extremely windy. one thing rizes are not used to seeing on a labor -- used to seeing are empty beaches. you can see the casinos with not a lot of people. one local official said the size of the storm surge and flooding and wind damage it is going to be a huge hit to the local economy in labor day weekend is a big push for them. unfortunately, they are seeing

a huge reduction in occupancy rates in the hotels, casinos, a lot of mom and pop shops along highway 90. they wait for summer to end so they can bank on labor day weekend. that's a big factor. another factor, we could see four to six more inches of rain come today and tomorrow. a lot of local officials are concerned about flooding. they are telling people, although it is beautiful out, make sure to stay cautious throughout the holiday weekend. >> jamie: definitely not over yet, thanks elizabeth. >> thank you. >> kelly: for u.s. border agents protecting americans means a nonstop battle to keep mexico's bloody drug war and products off u.s. soil. national geographic captures agents experiences in its sear -- in its series, border wars. >> the destruction of thousands of thousands of

pounds of narcotics. >> guns. cars. cash. >> 100 dollar stack. >> tunnels. >> that's ingenius. >> behind the scenes at secret locations. >> this is a place no one gets to come into. to meet the people whose job it is to seize and destroy. we are going beyond the border wars. >> kelly: border wars beginning its third season. joining us executive producer, nick stein. thanks for joining us. i was amazed and surprised about how much access your crews received embedded with agents along the border. and you found out ways that so much of these drugs are smuggled into the country. money, weapons, weapons really blew me away how much they've amassed. >> you know, the truth is, the cartels have unlimited funds

and unlimited amount of time. this is an amazingly resourceful enemy, if you will. the men and women of the border patrol and cbp and ice, they do a remarkable job it is just such a challenging and complex thing they do. being embedded with them, it is an honor and privilege. >> kelly: we are looking -- we saw a 50 calibre gun being pulled out. that talks about it, it goes to the heart of what you are talking about how much money these cartels have. some are armed as well as an army. >> there's no question about it. that 50 cal we pulled out of a middle class suburban neighborhood. we were inside that home and there was weapons all over the place. a little -- children's toys and religious iconic figures were among the weapons. a lot of americans are involved with the cartels, work for the cartels.

guns particularly are coming down from texas and arizona and other places. they use straw buyers and bring them down. it is the old adage, which is drugs and people go north and money and against go south. >> kelly: gun laws are very strict in mexico, yet it is so easy pore the cartels to get those guns -- easy i for the cartels to get knows guns from people in america. you focus on san diego in particular, the sophistication of a tunnel there, beneath a warehouse. that was really powerful and very awakening to how much entry, how many entryways they gain into the united states. >> well, nothing focuses the mind like being 80 feet below the earth in a cartel drug tunnel, which in some case are sophisticated. they have lights, air, all kinds of things going on. at the same time they are

crumbling around you. we've been in dug tunnels not only the huge ones in , -- but here in nogales, here in arizona my crews have been in two tunnels that are like small rabbit holes. i can say enough about my cameramen and how courageous they are. whether it is underground or over the air, we've filmed, ultra lights dropping huge loads of thats. this season is incredible. >> kelly: ultra lights, they are flying over now making drops? >> well, i think a week from sunday we are going to have our show that shows the ultra lights that we captured on film. i think we are the only film crew that has seen this thing. it came down just like a lawnmower in the air we first heard it before we saw it. then it came into view. we had four night vision cameras and dropped them drop

350 pounds of marijuana. we heard it hit the ground with a thud. one of shots filmmakers imagine they would never get. >> kelly: we are looking at a warehouse now filled with drugs. they have to take these drugs to an undisclosed location as well as the weapons, as well as the cars where so many people along the san diego border are trying to smuggle in drugs. they have to destroy that once they get rid of all the drugs. >> this is our special program tonight for some reason i ended up hosting, the first time i've done such a thing, i'm normally behind the camera. this was so organic. everybody kept asking, nick what happens to the drugs? what happens to the cars and the weapons and the money? and they wanted to know, because you know, border wars often stops at this point. tonight we are going to show how this stuff is used for evidence. how it is used for intel and how it is disposed off.

it is fascinating. i hope people will watch. it is a special border wars we've never done anything like this before. but it answers a lot of questions people have. >> kelly: we are so glad you can join us and bring us this insightful work you have been doing. border wars, it is going to awaken a lot of people and alarm many. our work is cut out for us there. nick stein, thanks for joining us. be sure to watch tonight, season three premieres, this is something you want to watch catch two back-to-back episodes, tonight. >> jamie: exciting programming. >> only person accused in lockerbie is a free man. could a power shift in libya change that? we speak to a special guest. he lost his brother in that horrific pan am bombing. we are going to ask him what he thinks should be done to bring megrahi to justice as libya changes. it's all the same.

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>> jamie: we've been reporting that the rebels in libya are close to declareing a full military victory. there are new concerns about the fate of the only man who was convicted in connection with the 1988 pan am bombing over lockerbie scotland. 259 onboard, all killed. you may remember abdul al-megrahi, granted a compassionate release from a scottish prison, they said he only had three months to live, he was dying from cancer. there were calls to bring him to justice. those are now louder than ever. burt lost his brother in the lockerbie bombing. burden, thank you for joining us. you have been with us before, i appreciate you are here. your brother scott -- tom rather, 36-years-old. you have not stopped since

that day, trying to seek justice. do you think if the government in libya changes and is handed to the rebels, you will get it? >> yeah, i've been saying over and over since nato has gotten involved if gadhafi is eliminated or arrest had would be the last chapter, 23 years later would. it would mean our loved ones didn't die in vain. >> jamie: you believe gadhafi is the key, not megrahi? >> i vilified the obama administration and british government because it was oil. in the last 24 hours it is worse. there are reports that bush 43's administration and blair had developed special -- i think history bush 43 and blair's leadership will go down in disgrace. meg ha i had is a symptom. the person in charge was gadhafi. i've been telling everyone stay focused, stay on task,

gadhafi must be eliminated. >> jamie: say they capture gadhafi or he's killed, would it matter to you, as long as he's eliminated, as a dictator? >> absolutely. all over the world, people of these countries are good people. it is these maniacs that are leaders. today's enemies are tomorrow's allies. i've said we wouldn't have let hitler or the japanese come back into power. for some insane reason bush 43 and blair welcomed gadhafi back into the international community even though it was none he massacred americans. gadhafi must be eliminated if the libyan people have any chance for success. >> jamie: you lost a loved one, as many did, too many people died in this event. there are calls from government officials to cut off funding, to help libya, unless megrahi is returned.

do you think they've got it right? >> no. it is misplaced. he was tried scottish law, convicted and released unscottish law. we don't agree. i was extremely angry with it. look at our own judicial system. a lot of people would like casey anthony to be retried again. but we have a system. politicians are doing it for their time on fox news. i would say to senator schumer and others and particularly republican politicians, stay focused. you've got the big fish now, take credit for it. get gadhafi he's the one behind this whole thing. >> jamie: burden, interesting always to speak to you. we feel for your loss and all of those impacted by this event. we will follow it until you receive the justice that you deserve. thank you. >> kelly: the u.s. jobs market on the ropes in august. employers adding no new net

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>> jamie: welcome back. it wasn't a surprise we had a rough day for the markets

friday after another dismal jobs report. department of labor announcing zero net gain in jobs for the month of august. that hasn't happened since 1945. it means the unemployment rate stays unchained at 9.1%. what is the -- horizon this week? can we turn this ship around? joining us brenda buttner anchor of bulls and bears. how concerned are you we could see a repeat of friday when the markets open? >> definitely, friday's report the building zero report was much more of a hurricane than irene was or lee will be on wall straight. i -- on wall street. i think we will still see repercussions tuesday. there will be more numbers on the labor market. there's the service sector number. job openings and jobless claims for the week. all of which wall street will

be watching carefully. plus, later this month, the fed is having a two-day meeting in order to talk more about stimulus. bernanke says. that could be actually a positive for the market, if in fact the fed, which doesn't have many more bullets, does anything to help the market along. of course it will be watching closely for anything new in the president's speech. not much is expected on that. >> jamie: we have to make it until thursday before we hear that. >> right. >> jamie: you mentioned bernanke, what can the fed do? it can't lower interest rates much more? >> no, there's not much more there. they can buy up treasuries. that could help the market. that's what they've been doing in the past to try to keep interest rates just as low, at least not rising. even though we are seeing some rise in inflation, they still see unemployment and this

faultering recovery as more important than fighting inflation at this moment. that's really key. if they were to raise interest rates as well, it could be really tough on americans. >> jamie: it is sobering. thanks -- thanks brenda. >> kelly: tropical storm lee has come ashore in the gulf states. we are tracking the new concerns from this storm. live report from several states. [ male announcer ] 95% of all americans aren't getting enough whole grain. but actually, it's never been easier to get the whole grain you want from your favorite big g cereals. from cheerios to lucky charms, there's whole grain in every box. make sure to look for the white check.

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>> kelly: since judgmenting into the race perry has jumped into the lead in many polls. has the coverage been fair? liz trotta, author, journalist and fox news contributor with her commentary now on governor perry. >> good morning kelly. here it comes the locomotive of anti-gop criticism about the republicans. i should say anti-gop criticism, period. anyhow, having stumbled into that, let me say there's an onslaught of pieces from the left this past week even before about rick perry. we are going to see more about governor perry after the labor day weekend, after this campaign gets into gear.

the media cannot wait if get their hands on him. they've already started in two ways. there's a piece in politico this week by jonathan martin. he says is rick perry dumb? this is the question, also the tight of the piece. one of the things he raises is, did he write his own books? did anybody ever ask ted kennedy if he wrote his own books? even john kennedy for that matter? i can't remember that ever happened. here goes the he eat intellectuals, pseudo intellectuals, -- moving in on the bush and dumbness, perry and dumbness and an lying the two. one -- and ing -- and aligning the two. many of the criticisms are found in his book "fed up" which came out last november, governor perry's book.

the left is saying he stumbled on this one. he put all the specific stuff out there and give ammunition to the left. well, who knows, it might be deliberate. it is a book in which he says that social security is a ponzi scheme, which could come back to haunt him. he's against homosexuality and think its should be left to the states as abortion should be. he says federal income tax should be abolished. that the election of senators should be direct. and he also says that the -- he talks about the crumb lidge monument to the failure of the new deal. he's way out there -- on that limb. of course the left started to saw it off right away. let me give you an example of something from "fed up" the book. one of things he says in typical texas style and the writer wants you to know that. he says if you don't support the death penalty and citizens packing a pistol don't come to

texas. if you don't like medicinal marijuana and gay marriage, don't move to california. well, there we are. he's a straight talking, straight shooter, two gun, i'm all male, i'm from texas, kind of candidate. and it is going to be very interesting to see, as they come across right away, with the comparisons to george bush, two of the sayings go george bush without the charm, george bush without the brains. so it is very important for them to continue what obama is already -- still continuing to bolster obama's philosophy and say this is a man who is just another george bush. >> kelly: that not withstanding the attacks from the left, what do you think rick perry might receive from within his own party? particularly, the fact that he's now a front-runner and the other candidates will have to find something they can go

against him on. >> yeah, this is very interesting. i grew up in an era when republicans, if they won, became president were usually moderate establishment republicans. so many factors, most notably, i think the culture wars and the -- have divided the country and the media along with those who disagree with this policy have also been able to strike out at the conservatives. there's no question the media is go to set him up as another cowboy. >> kelly: all right liz. >> this is what we have ahead of us. >> kelly: liz trotta thank you for your commentary about governor perry and what he's facing as he continues to make his trek in the campaign trail again leading in the polls. >> that will do it for us, i'm