welcome to "america live," i'm megyn kelly. ntsb investigators are right now analyzing memory cards found at the site. cards that could be from the video camera they believe was on the plane. it could contain footage of the final moments before the deadly crash. the massive impact caught by cameras on the ground and we warn you, this video is disturbing. the small world war ii era reign spiraled out of control and at full speed went into a crowd of spectators, narrowly missing the grandstand. this is a different angle. now a massive crater about three feet deep is all that is left.

casey stegall in reno, nevada. >> reporter: it doesn't matter how many times you see the video, it still gives you chills. it is estimated that the plane was flying at speeds of more than 400 miles an hour when it plummeted into the ground. you talk about that crater, it is three feet deep on a concrete tarmac and about eight feet wide. you can see from that video that there was really no fire, no real explosion, the plane literally disintegrating into thousands of pieces upon impact. it looks like a bomb went off in the airfield here in reno. debris scattered over an area about the size of a football field. finding clues and evidence, as you can imagine amid that wreckage can be like hunting for a needle in a haystack. investigators say in addition to the video camera they believe was on board with the memory cards, a makeshift recording system was also discovered, something very rare on air planes like this. similar to a commercial

airliner's black box. >> it has multiple variables, including information from the engine, such as oil pressure, and oil temperature, but also includes gps information, altitude, velocity, latitude, longitude, and other variables. these could be critical for us to perform analysis. >> reporter: the pilot of the doomed plane 74-year-old jimmy leeward had previously stated that his crew had modified that vintage aircraft to make it more aerodynamic so that it could fly faster without a larger engine by shortening the wings at a portion of the tail. now, it is unclear if those modifications compromised this particular airplane's safety. of course all of that, including the evidence will have to be analyzed. megyn, nearly 70 people were

transported to area hospitals following this accident on friday. four still remain in critical condition at this hour. megyn: thank you. as casey mentioned there are new reports surfacing that months before the crash there were still concerns about the stunt plane's performance. we are learning that the vintage plane was reportedly rebuilt for speed not stability. what does this mean for the safety of air shows? a live report later on in our show. fox news alert, moments ago a georgia parole board finished the first part after critical hearing on a death penalty says that has been argued for more than two decades. troy davis was sentenced to death 20 years ago, charged with murdering savannah police officer mark allen mcbale. davis is hoping new testimony will help clear his name days before his scheduled wednesday execution. jonathan serrie live in atlanta with the latest. >> reporter: when the board moves into the second-phase of

testimony they are going to hear from the prosecution in this case during the first phase they heard from the defense. representatives of troy davis, that death row imitate have been arguing that the board should spare his life. they point to the fact that many of the original witnesses who blamed davis for the 1989 murder of an off-duty savannah policeman have changed their stories, listen. >> there are too many people who have came forward and said, troy anthony davis is not the person responsible for the death of the officer. >> reporter: supporters of davis have collected more than 600,000 signatures on petitions calling on the parole board to grant him clemency. over recent years high profile individual, including former democrat president jimmy carter and former congressman bob barr voiced their concerns whether

the state of georgia is about to execute the wrong man. >> there will never be any closure, i can't, because mark is gone and that hole in my heart will be there until the day i die. but it may give me some piece and quiet, that is really what i would like to have. >> reporter: and troy davis is scheduled to die by lethal injection wednesday at 7:00pm. megyn: thank you. we also have a developing story in detroit where gm has reached a tentative new labor deal with the united autoworkers, according to reports. the associated press reporting that the four-year contract includes higher entry level pay, a sweeter prove it sharing plan for the union workers and a $5,000 signing bonus.

some analysts say that is good news, since the union was reportedly hoping to land bonuses of up to 10,000 a worker. stu varney is with the fox business network and the host of varney & company. the signing bonus goes to people who already have jobs? >> reporter: the signing bonus goes $5,000 each to 48,500 regular workers at general motors. everybody who works at gm, everybody on the line gets $5,000. >> why do you get assigning bonus if you already have the job there? isn't assigning bonus used to lure someone into the job. >> reporter: yes, goodoint. let me give you context here. the taxpayer, that is the government, owns 26% of general motors, a hundred million shares. the government therefore has a very heavy influence on these contract negotiations. what they've come up with is basically in my opinion a sweetheart deal for the unions. as youee phaoupl natured there, megyn it's a four year deal, $5,000 to every single worker. no worker will pay a dime extra

for healthcare coverage, that is different from the rest of america. there will be new hires, more profit sharing and that $56 per hour, the regular workers will be maintained. this is as the economy grows on the brink of recession, car sales are weak. i believe that this is a sweetheart deal for the unions, and that essentially this is a politicized contract agreement because the president administration wants to favor the unions, want to be seen doing precisely that. megyn: tke did cut it down from $10,000 to $5,000 signing bonuses. i don't understand, you can argue about whether they should get pay races and all. assigning bonus, normally it's to lure somebody into the job or plea conveniento prevent them from quitting. in this economy was there a realistic possibility that the thousands of union members were going to quit and go some place else and they needed the $5,000

to keep them on board. >> reporter: absolutely out uf out of the question. this is a nice sweet deal demanded by the unions. the unions are beholding to the administration. the administration is beholding to the unions. they want a relationship that really works. a $5,000 signing bonus, more new hires of union workers, extra profit sharing. no increase in healthcare costs to the worker, that is a very sweet deal. it puts enormous pressure on ford and chrysler which have not yet got even an agreement with the uaw and ford didn't get any bail out money. megyn: they now have to offer similar deals to their unions, or their union members will leave and tray to go work for gm? >> reporter: that is highly unlikely, but the pressure is on ford, and ford really cannot afford to come up with the same kind of money that gm has got even, taxpayer money essentially. what you've got here is ford stock, which is a reflection of its financial condition has been cut in half because of this kind

of contract negotiation that is coming up in the future. megyn: wow, stu, thank you. >> reporter: sure. megyn: that was stu varney of the fox business network. our friend and frequent guest here on "america live." the president called for a $1.5 trillion hike in -- as part of his plan to boost the economy and create jobs. how exactly will that work? steve forbes three minutes away. aruban prosecutors are desperate to figure out if robyn gardener was murdered and whether gary giordano her traveling companion killed her. strange lights appearing in the skies not once but twice in days. questions are growing and we'll show you what we discovered just ahead. >> i was really pointing and screaming at the lights. >> it had a tail, it was all flame, continue tell how long it

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megyn: chilling new details about a church shooting near tampa, florida. authorities say that jeremiah fogel burst through the door as the congress congratulations prayed shooting the pastor and associate pastor after allegedly killing his wife at their home nearby. he pleaded guilty to manslaughter for killing a previous wife back in 1987, a crime for which he only served ten years probation. he was a former member of the greater faith christian center church. parishioners tackled him to the ground after he shot the two fast tores on sunday. he faces murder and attempted murder charges. >> i'm proposing real serious cuts in spending. when you include the $1 trillion

in cuts i've already signed into law these would be among the biggest cuts in spend nothing our history. but they've got to be part of a larger plan that is balanced, a plan that asked the most fortunate among us to pay their fair share just like everybody else. megyn: the president unveiling his big plan today to cut $3 trillion from the deficit. half of that involves a $1.5 trillion tax hike with the administration demanding that top easterner earners pay more. more than 230,000 americans had a grows adjusted income of a million dollars or more in 2009. they were responsible for $177 billion in federal income taxes. that represents .2% of all federal tax returns, but makes up more than 20% of all federal income tax payments. so, is that group already paying its fair share?

and can this plan actually reduce spending and help put americans back to work? steve forbes is chairman and editor and chief of forbes media. steve, thanks for being here. >> thank you. megyn: i assume you're in the .2% and the president says you're not paying your fair share and he can save the american public $1.5 trillion if he hikes your taxes again. what say you? >> i think you put the numbers out there, and if you take the top 1% of income earners in the country it's almost 40% of the tax they pay. it's a very progressive code they may pay. the bottom 50% don't pay federal income tax. instead of the president trying to wage war against capital and capital creation he should be focusing like ronald reagan by getting the economy booming again. let the americans be tpwraoe again to start new businesses and create new jobs. megyn: he wants to raise taxes for people who make over $200,000, or 250 if it's a

couple. he wants a millionaire surtax. it's two different things, if you're between that 2 # hundred and a millar not off scot-free. you'll get hit and the millionaires will get hit in addition. in justifying the millionaire tax he calls it the buffet rule and he says warren buffett makes a lower tax burden than his secretary does because he has all these ways of getting around the tax code and therefore all people who make a million dollars or more should pay this additional surtax. does he have a point? >> no, he doesn't. we have the minimum tax alternative minimum tax, which was enacted 40 years ago supposedly to hit people who were using deductions. what you have here is a con tpugs between a salaried income and dividends and capital gains. capital gains come from taking risks. all the money you lose you hope you get a few gains in terms of big hits so you don't want to punish people who take the risks out there and create the new jobs. and so this is a kind of tax

system we had in the 1970s, which is a terrible decade financially and it's political theater. he doesn't put out there the rate he wants to put on the so-called millionaires because he knows when people hear that you're going to have a 30, 35% capital gains tax that we tonight have since the carter years the american people will say this is not the way to get the economy moving again. megyn: for people out there who don't have investment income, they are living paycheck to paycheck to paycheck who think, yeah i'm in favor of taxing the people on their investments, of which i have none. i'm in favor of tax being the million kwraeurs and jacking up their tax rate because i'm not in the boat and i can't afford it so why can't they. why is it bad to tax capital gains income. you make an investment and you make a bunch of money on it and president obama wants to raise that number and also raise the income tax paid by the so-called rich.

>> well, again, you have to look at it as a price, a price on creating businesses, a price on taking risks and hoping things workout. again, when you make an investment, as we've seen in the last few years in the stock market, there is no guarantee you're going to get a gain. megyn: i know, if i sit there at home and i have no investments i don't care. >> you do care. megyn: i feel like i don't care if you lose money on your investments, i'd rather you pay than i pay for it. >> if you get this economy back on an even keel again you get 5 to $700 billion in original revenue if we got the collections back tooth normal level. in terms of the person who doesn't have investment income they are dependent ultimately on a pension where you want the pension assets to increase. you want people who invest so the person can get a job or better paying job. we are all in this together, ronald reagan rec newsed hit. john kennedy recognized it. i wish this president would recognize it as well and get the economy moving by removing

burdens on people instead of playing the class warfare card. megyn: most of the analysts say this is not going to pass. he couldn't get less than this. >> it's political theater. megyn: he is not going to get this one which has more taxes. >> he couldn't get it through the democrat congress. megyn: here is my question to you. to what extent nonetheless, does the president, knowing they have an executive in the white house who wants to solve things with this kind of tax higher to what extent does it chill industry or more importantly just spending. we have a spending problem with the rich hoarding their cash not going out and spending because they are worried about what is going to happen in the future. does this affect that? >> it adds to the uncertainty. what are the future rules going to be? you have a president that is weak evening the dollar which hurts investment. you have a president who brought the spending blowout. he's the one that did it. it wasn't foisted on him. he's putting thousands and thousands of pages of new

regulations coming, tax uncertainty. no wonder the economy is not doing well. megyn: john boehner who was negotiating with the president about how we tackle the deficit and so on came out this week and said very clearly, no new taxes that's it. he drawing his own line in the sand. >> if the president was serious about simplifying the tax code why doesn't he put a specific proposal out there? as a matter of fact i'd be willing to give him free a copy of my book on the flat tax which i wrote several years og on simplifying the tax code and i'll give it free even though he wants to raise my taxes. megyn: i think that glenn beck left behind his red phone with the direct connection to the white house. i'm going to use it and call there and relay your offer, sir. >> i'm sure he'll take your call right away. megyn: steve forbes thank you. >> thank you. megyn: controversy is growing over a book that is just about to hit your bookstore. it paints a picture of a white house where, quote, no adult is in charge of economic policy. the work environment is, quote, hostile to women, and the west

wing is a hotbed of inch fighting. those are the allegations. in five minutes what this means for the administration and can we believe this? and check out this video from arizona, we'll tell but some strange lights that appeared not once but twice in just days. plus, you'll meet the gutsy grandma from oregon who has tips on how to handle a would-be burglary. >> he tells me get away lady, get hreu away. i said, no, you get away, go while you can. we're cracking down on medicare fraud.

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megyn: she might have looked like an easy target, but in portland, oregon, one would be crook picked on the wrong woman. barbara lane using a butcher

knife to chase out a man trying to rob the chinese restaurant where she was working. the grandma grabbed a chair at first, but then thought the knife would be a better weapon. the crook resisted until he saw lane was not going to back wn. >> back off, buddy that is just my reaction. i do have a weapon and i'm not afraid to use it. he's saying, get away lady, get away. i said no you get away while you can. i smacked him across the wrist with the knife, i don't think i cut him. megyn: she says her family wants her to stop working. she intends to stay right where she is. barbara, here is to you. wow. now to a search for answers in the skies over arizona. mysterious lights appearing not once but twice in just days. local news stations were flooded with phone calls after a sighting wednesday and then again on saturday. turns out there is an explanation for both of these close encounters and it's got

nothing to do with little green men, or does it? trace gallagher has the latest. hey, trace. >> reporter: you know it's funny, megyn i talked to studies for search for extra tra rest treextra tra rest tree ales. people called in the police station, the fire station, the television news stations. you'll have to look, right in the middle of the screen you'll see little lights flickering. people thought they looked like lights being dropped -- see them right there, kind of bam, bam, they thought they were lights being dropped out of an airplane. well the mystery, drum roll please, these were not ufo's, these were actually part of an air show. this is a pair chute team an parachute team carrying large lights, not to be confused with this. this was last wednesday night. this was seen in phoenix, over

vegas, here in southern cali. this. nasa says was a very small meteor, part of an astroid, the size of a basketball. they say it actually burned up probably before it hit the ground so it wasn't a major threat. if it was bigger it may very well have been a threat. you know it's interesting because the department of defense actually traction these things, megyn, and they keep a record of them, all these a aste asteroids. in one week we have had two mysterious sightings but we solved them both here on "america live." megyn: the department of defense traction these astroids. >> reporter: that's right. megyn: they do. >> reporter: that's right, scully. megyn: where is the pod? thanks, trace. >> reporter: you bet. megyn: i'm just saying, who knows? what do you think? kelly at fox news.com. there are new questions about p about what the white house said

to an air force general before he testified to congress. did someone ask that general to go easy on a politically connected company? three minutes 0 that. and white house great crasher michaela salahi is exstatic with her new boyfriend. she might not be happy with her prnup. wait until you get a look at it. >> she left the residence with a good friend and she was where she wanted to be. she advised us that she did not want her husband to know where she was. she said she was sorry that the sheriff's department had to be involved but did not want to go home right now.

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megyn: welcome back, everybody. new questions today about whether the obama administration went to bat for a wireless company called life squared. they want to roll out a new wireless system one that might cause problems for gps systems according to the pentagon. we got reports late last week when a top general from the pentagon went to warn congress that the system could cause problems, in particular with military gps units someone in the administration told that general to shape his testimony in two different ways that would support light squared, and

possibly pave the path for its new system. james rosen picks up the system from there from our washington bureau this afternoon. >> reporter: good afternoon. public policy watchdog groups gave voice over the weekend to their quote unquote disappointment in president obama and his record on his 2008 campaign promises to produce a more transparent government. thiesen ta phepbts followed new questions about what follow obama administration officials may have played in shaping the air force general's testimony to congress last week. he told the house subcommittee last thursday that this proposal for a new broadband service put forward by light squared would interfere with the gps receivers on which our fighting men and women deny. light squared denies that it would pose any risk to the u.s. forces and says the competitors don't want to see the company revolution nice wireless service by enabling smaller, rural carriers to lease their

broadband and become national carriers themselves. in closed door session general sheldon advised lawmakers he had indeed been asked to make his testimony more sympathetic to light squared. >> the general did not say who had proposed the language that would lessen the effect of his testimony. he said he believed his testimony had been shared. he said he believed his testimony had been shared with light sared himself. we did not press the general to finger point. i said he resisted the efforts to put the language in his testimony. >> reporter: light squared skuft eufs have given to candidates for both parties. the political action company has given predominantly to democrats. they gave 1500 to house democrat particulars. nothing to republicans. in 2010 records show roughly equal donations to both parties.

now the white house has denied any improper conduct in connection with this case, simply saying that the general's testimony went through the standard vetting process at the white house. three months ago a light squared executive took part in a white house sponsor roundtable in los angeles on the public of wireless innovatio megyn. megyn: thank you. there are real questions as you heard james outline about whether light squared, or the white house, or the two of them working in concert in any way pressured that general to change his congressional testimony, and there are also questions about whether light squared got an fcc permit under pressure from the white house, and if so why was the white house stepping in? there are allegations by white house critics that it was because the white house had a horse in the race, that they had a financial interest because thinks a big political donor and making things easy on them, but is that true? come up in about 40 minutes at 2:15 eastern time phillip falcone who is the founder of light squared will join me here, live, right her on "america

live." we can get his side of the story and i will ask him some of these unanswered questions. stay tuned for that. major controversy today over a new book by officer ron suskind, a book that paints a bleak picture of the obama administration and a book in which the obama administration cooperated. the book is called confidence men, wall street, washington and the education of a president. there are allegations of a hostile environment where there's quote, no adults in charge of our economy. the white house is challenging many of the facts but suskind says he did over 700 hours of interviews with more than 200 people, including president obama himself. so, what should we believe? pwhrad blakeman is a former deputy assistant to george w bush and dick harpootlian is the former democratic party chair. high, guys. the author of this. suskind is a pulitzer prize winning author. he's written three books during the bush administration, this one new during the obama administration. in the past republicans came out

and said, oh, no he wasn't accurate about this stuff. now you have the obama white house saying about no, no he wasn't accurate about this other stuff. brad, put it this perspective for us in terms of the allegations he is making about the white house. in particular he talks about larry summers who was the director of of the white house economic national council until last year saying we are home alone, quote, there is no adult in charge. clinton would never have made these mistakes, something summers now comes out and says he was misquoted on. >> you're get ago lot of corroborating allegations by the most senior levels of the obama staff saying, and advisers saying that there is no adult supervision at the white house. clearly the failures we've seen in the economy, in social policy, look, it's all corroborated by the statements in this book. unfortunately this president doesn't get it. he's a great campaigner, seems to like being president, but hates the work, and this book, and it's beyond me why presidents invite people in while history is being made to

have the white house at their beck and call. it doesn't make any sense to have a reporter come and have carte blanche while they are governing. megyn: don't discourage that. we as members of the press like that. let me ask you, dick. we haven't seen the book, it comes out this week. the biggest allegations of court of incompetent comes from larry summers the one i just read, and anita d u.n. n wasn't she supposed to be on the opposite end of glenn beck's red phone? she was the one who was supposed to call. in any event she came out allegedly according to this book and said, it's an old boy's club at the white house and this place would be in court for a hostile workplace because it actually fit all the classic legal requirements for a genuinely hostile workplace to women. she comes out and says she's been misquoted two. the most damming allegations have been denied now.

>> i think obviously that suskind has problems with the facts that happened when he was writing about republicans. he is looking for a sensational book that people will buy. people will find in it what supports their preexisting position. so, you know, i wouldn't put a lot of faith in this book, and i don't know that it ought to be a big topic of conversation. just as dick cheney's book where he wacks on colon powell and on condoleezzaa rice i don't put a lot of stock in that either. either do colon powell or condoleezzaa rice, they deny everything he said in his book. megyn: it's power for the course that they tape these interviews. if he has a neat today dunn on tape, and summers on tape it's going to be tough for them to wiggle out of it. people can make up their own minds if he stretch the truth in this book. >> if he has tapes and former

officials who gave him interviews are denying it certainly the tapes will come out, they will be heard ain't is what it is. the one thing is for sure, the obama administration invited this guy in. they gave him unprecedented access, hundreds of hours of time were taken away from governing to try and shape history through this reporter. now all of a sudden he's incredible. i happen to think where there is smoke there is fire. we certainly know this present is incompetent in his ability to lead and this book seems to corroborate the allegations. megyn: let's talk about that, dick, because the other area that the news reports of the book goes into speaks about his competence as brad mentions. he compared himself to president carter. he said, carter, clinton and i have all had the disease of being policy wonks. and if you lose sight of that.

and now they are coming out and saying, you don't compare yourself to president carter under any circumstances. >> he also said clinton. by the way, brad clinton left the white house with a $130 billion surplus. >> it's all bush's fault. get it out it's all bush's fault. >> yep, yep, i'd want to be compared to bill clinton. >> we're talking about jimmy carter. >> he's talking about just a cerebral approach to you. bill clinton will tell you he's a policy wonk and so is barack obama. it turned out okay for this country when bill clinton was president, economically. the 90s were the best economic situation this country has seen in the last 50 years. if you give barack obama more than two and a half years and give him the full, five or six that bill clinton had he'll turn around where this bush left this country at. megyn: i want to get a reaction to this. he apparently talked about a private display of

uncertainty, president obama. he said i can't let people see that, i don't want the staff to see that but i get up every morning and it's a heavy burden. brad, let me ask you as somebody who is a presidential critic in this administration, does that tell you anything? i would emergency most presidents have to be feeling that heavy burden. >> sure they do. every president does. the fact of the matter is though that a president can have it internally, but have the confidence and capability to lead. this president just doesn't have it and we're seeing it come through in this book as even the most senior advisers to the president are alleging it and complaining about it. it's one thing for a president to wake up in the morning and internally say, look at all i have to face, it's another when you're permanen permeating that to a staff. megyn: dick is the current chair of the democratic party. i don't know why i keep trying to row sign you. >> i wish i could, unfortunately it's a two year term.

megyn: thank you guys. it has been six weeks since robyn gardener went missing in aruba. up next what prosecutors did today to try to solve the mystery of what may have happened to her. wait until you hear this. plus, we are learning that the vintage plane in the reno air crash was reportedly rebuilt for speed not stability. what does that mean for the safety of air shows? a live report coming up. >> all i remember was i was trying to run and i see stuff coming. >> i thought i was going to die. i said all right, i'm just going to run for it. and i did, and i think i was just very, very fortunate. @=h well, thank you both for coming. oh, thank you so much.

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megyn: new developments in the case of an american woman missing in aruba. robyn gardener has been miss tpoerg six weeks now since going on a trip with gary giordano. they arrived in aruba on july 31st. days later giordano reported she had gone missing.

they claimed they were snorkeling when she was suddenly pulled away by ocean currents. on august 5th giordano was arrested before boarding a plane. it was then refield that investigators had discovered giordano tried to cash in on an insurance policy, a travel insurance policy some time after her reported disappearance, a policy that named him as the beneficiary. and on september 7th giordano was denied release from an aruban jail. today investigators are reenacting giordano's version of the drowning in the day, honing it might bring hem closer to either gardener, or the truth. joining me now former dc homicide detective and fox news contributor rob wheeler. have you ever heard of this before. >> yes, megyn it's not unusual for the police especially in a homicide case to try and reenact the final moment of the decedents, or the person that is missing their moments of life. what the police are trying to do right now is validate giordano's

story, or disprove his story, and hopefully by rean acting, by reconstructing the scene going through this process they will get closer to finding an answer. megyn: there were lots of reports of heavy drinking that day by the pair and perhaps some sort of prescription drug use, but they are going to go in particular i guess to this reef bar and grill, the rum reef bar and grill where ty were seen living at about 4:00pm on august 2nd. two hours later there are pictures of him walking around with his shirt off, but his t tuppee on. he was later seen on surveillance camera trying to track someone down that claim that she had gone missing and so on. that's how you do it? >> exactly. they are going to do exactly that. they are going to try to make this re-enactment, reconstruction as close to reality as possible. here is the thing, megyn, it's very difficult when you do a

reconstruction of a scene or re-enactment with a scene when you don't have a body. that is going to be the significant point here with this reconstruction. look, you can reconstruct the scene all day long, if you don't have a body, megyn, if you don't have more direct evidence it's still going to be difficult to try to say, you know, with any degree of certainty that this is what in fact happened. everything is going to be hyp hypothetically based. megyn: they released photos of the two of them partying during this trip to aruba. in the pictures they look like they are having a great time. they looked like they had some drinks and were having fun. does that play into it at all, rod? you can have a great timend then something snaps in your travel companion and the next things you know things have gone wrong. >> yes it will play into it. a good homicide investigator is going to consider everything, the good times, megyn as well as the bad times. again, the issue we have with this case, all of this as you know, megyn as being an attorney yourself is circumstantial. you can have all the

circumstances in the world, the problem is it's just circumstances. megyn: yeah, and now they are telling us that the person who sold giordano this insurance policy, the $1.5 million, the agent told the f.b.i. reportedly that no one she ever dealt with in the entire year in selling these poll sews has mailed back the hard copy of the policy and faxed it in talking about the urgency on his part of getting the documents in for the trip. that can't be a good fact for the defense. >> it's not a good sign or fact. this guy was trying to cash in on the policy before he even left the island. megyn: okay, rod, thank you. >> thank you, megyn. megyn: coming up we are investigating new claims that the white house may have gone to bat for a politically connected company. stay tuned. i habe a cohd. yeah, i toog nyguil bud i'm stild stubbed up.

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judiciary committee today took a road trip heading down to the tech as border with mexico to hold a forum on border security. among those offering testimony, tiffany hartley. her husband david hartley was believed to have been gunned down by mexican drug pirates as the couple was yet skiing on falcon lake, a popular tourist area. kris gutierrez was at the forum. he joins us from brownsville, texas. >> reporter: tiffany hartley, this is her first trip back to the region since they are husband was shot. it was a big deal for her to be out here. she testified in a building behind me for about ten or 15 minutes. a short time ago she said this. listen. >> the men who murdered david live right across the -- right across the river. they aren't over in afghanistan, they are not in iraq, they are in our backyard, and the cartel members are taking over mexico, and they are killing anyone in their way.

>> reporter: last night texas congressman ted poe took us up for a helicopter tour of part of the texas-mexico border. he wanted to see how local, state and federal agencies work together to secure our border. parts of this region are lined with a border fence but not all of it. that's why congressman poe calls this a porous border. he questions whether or not his colleagues in washington really understand the magnitude of the problem down here. listen. >> washington is blissfully ignorant of the problem. washington says it's not a problem, therefore they ignore it and they move on down the road and talk about something else. but it is a problem, it is a national security issue that the whole country should be aware of. >> reporter: congressman poe says among other things, megyn he'd like to see more boots on the ground to secure our southern border. back to you. megyn: kris gutierrez, thank you. we are learning more about the plane involved in the horrific air show crash in reno, nevada.

that is awful. trace is tracking down reports that the plane was modified in a way that made it faster but may also have made it more dangerous. see when we found in five minutes. plus, we are investigating new claims that the white house recently went to bat for a politically connected company. this time a wireless provider that was facing real trouble with a top general at the pentagon. the founder of that wireless company is here to answer all of our questions live in ten minutes. and there are the tabloid gifts that appear to keep giving. guess who tareq salahi may not have to give his soon to be ex-wife. details coming up. [ male announcer ] you never know when,

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don't wait until you become the next victim. call now to try lifelock risk free for 2 full months. that's right, 60 days risk free. use promo code: norisk. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this document shredder to keep your personal documents out of the wrong hands. a $29 value, free! get the protection you need right now. call or go to lifelock.com to try lifelock risk free for a full 60 days. use promo code: norisk. plus get this document shredder, free! but only if you act right now. call now! lifelock service guarantee cannot be offered to residents of new york. megyn: fox news alert. we are awaiting president obama's arrival here in new york as he tries to head off a possible meltdown for his middle east policy. brand-new ho of "america

live." i'm megyn kelly. palestinian president abbas is coming to new york to speak at the united nations demanding the u.n. recognize palestine as an independent state. something the white house is opposed to. >> i would tell him he promised me last september that he wants to see a palestinian state. i hope that [inaudible] megyn: interesting exchange. tell us more. >> reporter: the big focus on palestinian president mahmoud abbas trying to get him to drop

his bid with the security council for recognition of a palestinian state. but based on my conversations with himmed the past 24 hours, it's not going to happen. he's a man with one mission. statehood for the palestinian people. he plans to ask for full membership in the u.n. >> i decided to go to the security council when i said that the is no way for the negotiations because americans including president obama looks at their efforts and bringing netanyahu to the negotiating table. >> reporter: i'm sure the israeli prime minister will see this interview. are you willing to tell him on fox you are willing to meet with

him at the united nations in new york before you deliver your speech? >> i'm ready to meet any time he wants. >> we are ready for peace talks with the palestinians without any preconditions. it can be here in israel or wherever we decide to meet. >> reporter: netanyahu arrived her and we'll wait to see if they meet before the speech on friday. megyn: dan gillerman ahead on this foreign policy earthquake. reaction pouring into the president's deficit reduction plan just unveiled earlier today. it calls for shrinking the nation's debt by letting the bush era tax cuts expire for the

wealthy. in essence a tax hike on the rich and it would cut medicare. >> reporter: the plan would reduce the deficit $3.5 trillion over the next decade. it would raise taxes by $1.2 trillion on families making more than $250,000 a year and cut half of that for medicare and medicaid and entitlement programs. republicans say the tax hikes are a non-starter. the president says he won't stop the entitlement cuts. >> i'll veto any bill that doesn't ask the wealthiest americans to pay their fair share. we are not going to have a one-sided deal that hurts the folks who are most vulnerable. >> reporter: senate republican leader mitch mcconnell

criticized the fox hikes and suggested the medicare, medicaid savings were too small. saying veto threats, a massive tax hike, phantom savings and phantom entitlement reform is not mentionful. paul ryan warned if you tax something more, you get less. white house officials say you cannot offset the costs of the recession, the bush administration tax cuts. the wars in iraq and afghanistan and a prescription drug benefit with spending cuts alone. they also called for something called the buffet rule to require minio min -- to require millionaire investors to pay the same tax. but they didn't count that. megyn: fox news and google are

partnering to host the next presidential debate thursday in orlando, florida. great bare will moderate the debate and you can be sitting there with us sort of. you can submit your questions which we'll be asking of the candidates via google or youtube right now. we are still taking your submissions. to find out how, you go to youtube.com/fox news and be part of this debate thursday night right here on fnc. we are learning new details about the world war ii era plane that crashed in reno. it was heavily modified for speed. the plane's wing span cut a full 10 feet. those modifications may have sacrificed stability and control. >> reporter: this plane was

rebuilt exclusively for speed during world war ii. during world war ii it couldn't do nearly 400 miles an hour. when you modify planes you put extra stress on the air frames. investigators are looking at the elevator trim tab. that's part of the fin of the plane that keeps it flying straight and level. they believe that might have broken off. we can show you what investigators think happened. you have jimmy leeward coming somewhere around 400 miles an hour. for some reason the plane did a strange upturn and it went up and up and finally stalled out and the plane didn't have any air flowing over its wings. take a look if you will at the side by side. the world war ii p-51 is on the left-hand side of the screen. on the right, that's how it's

been modified. each wing has been shortened by 5 feet. the ailerons have been shortens and a bunch of horse power have been added. >> we are as fast as anybody in ththe field or maybe even faste. but we didn't want to show our hand until saturday or sunday. we have been playing poker since last monday. we are ready to show a couple more card. we'll see friday what happens. >> reporter: these planes are supposed to be fully vetted by the faa. the ntsb is investigating whether or not that happened. back at the reno air show in 1999 another p-51 crash and the reason that crashed and killed the pilot was because the elevator trim tab on that modified p-51 also had broken

off right before the crash. megyn: did the white house pressure an air force general to change his testimony about a politically connected wireless company? and if it did, did someone request that favor? the founder of the wireless firm at the center of this is here with a promise to clear up all these questions. plus, uncle sam says seaworld is making money at the expense of animal and employee safety. citing the death of a trainer attacked by a killer whale. today seaworld fights back. she skipped town to rock out with the guitarist from journey. the prenup in "kelly's court." [] when it comes to saving energy,

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megyn: new questions about whether the obama administration went to bat for a wireless company called lightsquared. military says it might cause problems with gps systems. president obama puts $90,000 into a firm called sky terra. an investor meets his future business partner at the white house. falcone buys skyterra and it becomes lightsquared. they were given permission to increase bandwidth.

the general shelton says he was pressures to change his testimony. he says the white house want thoimed make his testimony more favorable. the white house says that's not exactly right. a congressional subcommittee holds a hearing. light square executives testify. last thursday general shelton testified before the armed services committee. some lawmakers say the white house put national security in jeopardy that day. >> that type attempt to bias testimony on something that go to the heart of our national security is certainly of grave concern. megyn: phillip falcone is the founder of harbinger capital. thank you so much for being here. let me try to boil down for our viewers. you are a gazillionaire who put

a lot of money into this company lightsquared and you are trying to create a highway in the sky for satellite communications. you have been at this more years and years and years and it's a huge project. now there are allegations by some critics of the white house, and i guess of yours, that the fcc gave you a waiver for this project in january that may have been politically motivated. they think maybe the fcc looked the other way when the department of defense was saying hold on we don't like this project, it could interfere with military gps. why did the fcc do that for you? then there are questions about why the white house stepped in to tell this general to was testifying about his concerns to soften it. that's how this became a national news story. >> correct. megyn: you say there are no

concerns -- there is nothing to worry about with the gps, the wireless competitors, the pentagon, this has become a political story why? >> it has become a political battle which is unfortunate. but a couple things i want to correct. in your opening statement you managed i went down to see the president. i never met the president. he apparently acquired some stock back in 2005, 2006, and subsequently sold it. so that's irrelevant to what we are talking about today. i think the important thing to get across is that we were granted authorization of this spectrum to use this spectrum to build out a nationwide wireless network in 2005. under the bush administration. and subsequent to that is when i became involved. i became an investor.

the more i got to understand -- the more i understood about this company the more i realized it was a great asset. so flash fast forward now we are in 2009, i made a bid to acquire the company. and this waiver that people are talking about, it's irrelevant. quite frankly, when we first approached the fcc, it was more of an interpretation of their waiver to acquire the company in 2010. so we didn't apply for a waiver. what everybody is talking about does not affect the network. it's all about the devices that we were trying to deploy. megyn: let me stop you there. here is what the critics say. there is a republican from georgia and austin scott, who says he's talking about that waiver you got in january. he says the white house's technology policy arm called the

national del he p -- telecommunications urged that approval. he says he has never seen that unless somebody's wheel was getting greased to get that waiver in january from the fcc. >> absolutely not. that is a complete misinformation of facts. megyn: let me ask you two things. would you be willing to produce all of your communications with the fcc? >> well, i'm sure that my communications with the fcc and the company's communications with the fcc would show that any discussions that took place were in the normal course of business. megyn: would you release them? would you make them public? there has been a call for that.

>> i would have to check with my counsel. megyn: you are willing to do it unless there is some legal impediment. >> i don't know if it's necessary. megyn: if you say there is nothing untoward going on -- >> we were granted the waiver in 2005, not in 2010. megyn: what is at issue now is what happened in january. why not release the information. and say this is a nothing burger. >> we could do that. i'm not on the board of the company. i don't speak for the company. before i say something, i need to check with the appropriate people. but again the reality of it is -- the 2010 waiver was irrelevant to what -- to the network. it's all about the device, and people don't understand that.

megyn: i don't understand it either. the are emails that were released by i watch news.org that suggest an urgency in having meetings prior to the waiver. they have, for example, this is lightsquared officials sending emails to the white house trying to talk about this fcc issue. the i watch news put out the emails that says, hi, anish, the chief policy advisor. i touched base with my clients, the ceo, and he expressed an interests in meeting with you. he will be in d.c. next week for a fundraising dinner with the president. what your critics are saying all these attempts to meet with the white house officials also mention there will be fundraising going on by the ceo

and they think it looks bad. >> people are con striewg one thing and it means something different. the reality is that communication was a function of getting in front of the office of science and technology to talk about as a business entity that's about to deploy $it billion to $10 billion to talk about what's happening with the national broadband plan. megyn: why mention the ceo is there to fundraise for president obama. >> it's a function of them telling the individual when he will be showing up in d.c. this is not about -- people think that we made contributions to grease the wheels. that is so wrong. it's -- megyn: our information is he has

made $30,000 of donations to both sides of the aisle. >> to both sides. megyn: are you more one side than another? >> i don't know if i should say this but i am a registered republican. i have taken a step back the last few years. again, it's a function. me trying to deploy a network to build out a plan. the fcc has been so challenging as it relates to what we are trying to do here. megyn: let me pause you and we'll ask you about this general who says he felt pressured on his testimony. ♪ [ country ]

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megyn: phillip falcone, the

majority share holder in lightsquared. let's just take a step back. this became a national story because congress started to look into the. the pentagon said they had concerns about it. your main point is it's been in the work for years and it's your competition joining up open -- ginn caing this up. >> when we became viable people started expressing negative opinions. megyn: are you going to interfere with military gps and airline safety? that's what people are alleges. >> that's not the case at all. any concern and interference that does exist, we have take and step forward to fix these issues. just like in 2003 when weificked

the filter -- when we fixed the filtering issue when this order was given. keep in mind we have taken the step to fix any interference issue that the gps or any of the agencies have come forward with and have been concerned with. these fixes are technology issues. it's not a physics issue. megyn: general shelton said it will cost billions to protect the military gps system if you guys go on line are you going to pay for that? >> i think that's misinformation. we have allocated $50 million to the various agencies to incorporate the proper filtering that needs to be done. it's complete misinformation. megyn: general shelton goes before congress and said hold

off. it could put our gps system and military capabilities and potentially airline safety at risk. now says the white who is tried to pressure him to massage that testimony to make it more favorable to lightsquared. his testimony before he gave it to that congressional hearing was leaked. the only oned who had it was the white house, the pentagon and omb. did anyone in government give to it lightsquared prior to the general's testimony? >> absolutely not. it's a piece of misinformation out there. megyn: no one in your company had it? >> nobody in the company had it. it's people planting things. megyn: the general says you had it. >> the general is wrong. megyn: he says you had it. several reports say the was leaked to you. the daily beast reports

officials familiar with the situation eighth was leaked to lightsquared. you are saying you didn't have it. >> absolutely false. again it's another one of these issues where people are making this a political issue and it shouldn't be a political issue. it's a business issue. we are trying to build a network. as it relates to any potential interference, we think that potential interference is down to a minimum. that minimum is going to be fixed with some various thing we have done in the marketplace. so here we are trying to build this network and people are trying to make a political issue out of it which it shouldn't be at all. megyn: it became political because you have a general saying i was pressured by the white house to change my testimony. then people started to pay attention. why do you think the white house if it pressured the general as he so stated, has an interest in this? why would they be doing that? >> i find it hard to believe

they pressured any testimony on this topic. the facts are the facts either we interfere or we don't interfere. if we interfere, let's fix the issue. if we interfere with national security it should be fixed anyhow. but quite frankly we don't. megyn: you don't know president obama. >> there was an article about me being classmates with him. i never met him. i never went to a fundraiser he has ever held. i don't know where this stuff comes from. megyn: i appreciate you being here. i hope we cleared things up. it's a complicated subject matter. but it made a lot of news. good luck. all the best. president obama due in new york just hours from now to try to head off a middle east meltdown for statehood for the palestinians. dan gillerman joins us next to talk about why this is such a

high stakes issue. government investigators say seaworld did not do enough to protect the trainer from the whale she was training. finding that perfect pumpkin for halloween may not be so easy this year. >> buy your pumpkins soon for the best aveil bit. there won't as many around this year. labored breathing ]

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megyn: rough water at seaworld as the park fights the government over its investigation into the death of a killer whale killer. last year an orca trainer was pulled under the water and drowned. now the feds hitting said world with willful safety violations and recommending trainers not allowed in the water with the whales. >> reporter: for the marine park industry this is much more than the $75,000 fine. basically they say killer whale trainers have to be next to the whales. it's part of the job and clearly it does carry some risk. as for the killer we will tilikum, her brutal death was captured on cameras. it's described as brutal. the whale drags her by her hair

and arm for 8 minutes. twice she escapes only to be pulled back down. the whale scalped her and ripped off one of her arms. attorneys for both sides arrived this morning as well as the widower of the train. also animal activists say it's never safe to put people and killer whales in the world together. they want seaworld severely punished. so far this first day of a several day hearing has been dominated by the le department attorneys grilling seaworld employees about their standard and protocols.

megyn: president obama is headed to new york city for a big meeting at the united nations. there is a major foreign policy challenge shaping up with israel and the palestinians with the u.s. trying to head off a vote on palestinian statehood. but mahmoud abbas makes it clear that he will ask the u.n. security council to recognize a palestinian security state. >> reporter: if you were to meet with president obama before your speech what would you tell him? >> you promised me last september you wanted to see a palestinian state. now i'm coming [inaudible] megyn: ambassador dan gillerman is the former israeli ambassador to the united nations. so what do you make of this? this has a lot of people very

nervous. it seems that abbas is determined to ask for this vote. it seems that the administration does not want it to happen. where does that leave the united states, where does it leave israel? >> i think this is a crucial week. and this is not avoided we are all head for a train wreck. because the unilateral declaration of independence of a palestinian state will be a disaster for the palestinians and for the region at a volatile and delicate time. it will be a slap in the face for the united states, it will be a letdown for europe. it will do no good to anyone, least of all the palestinians. because you don't make a state by declarations. you don't create a state by making speeches. to a great extent what we have been seeing the past few weeks and what we'll see this week is speech making taking over for peacemaking. i think barack obama's last

ditch effort is an important one. i don't know how successful he will be. megyn: how did we get in this position where it is last-ditch effort. abbas is on the plane and on his way over and is going to do this. how did we get here? >> i'm sorry to say this but i think to a great extent we got here because of some mistake made by the president himself. for the last 2 years there has been no peace process. the president first asked for a total freeze of settlements, then for israel's return to the '67 borders. he head a lot of speeches. but at the end of the day the president of the united states has perched the palestinians up on a high tree. asthma mowd abbas himself has been -- as mahmoud abbas himself has been saying, by making these

statements, by taking these positions, by entrenching himself and the palestinians in it he has made it difficult for the palestinians to come back to the negotiating table. i believe that the only way to solve this is through negotiation and through agreement. and israel is ready to negotiate. the president has to untangle what to a great extent he himself has created. megyn: what does abbas do now? the united states is reportedly ready to veto the palestinian application for statehood. so abbas is not going to get what he wants. so why would he stand before the united nations asking for it only to have it fail and go home rejected? >> it's a great mystery to me, megyn. abbas and at palestinians know if they go to the security council they will face an american veto. by doing that they will not only be rejected but they will be embarrassing and isolating the

united states. megyn: how does it embarrass the united states? >> the united states will have to veto something which most of the members of the moral majority at the general assembly support. necessity may al alienate membes of the security council who want some to see a tall spinnan state. if they got the general assembly 0 recognize some form of a palestinian state, it wouldn't mean anything. the average palestinian on the streets as a result of abbas' positions are expecting a state next week. he will wage after the vote and look around him and realize nothing has changed. and he will be very frustrated.

frustrated in a dangerous and ugly region leads to ugly violence. so nothing good can come out of this. there will be a lot of drama. new york is the capital of theater and this is off broadway, but at the end of the day when the curtain comes down, all the actors, whether it's abbas or netanyahu or the european leaders, or the president of the united states will come away realizing they witnessed a spectacle. it may get a standing ovation, but the next day will and total disaster. and close. so i'm very hopeful that negotiations will start. i'm not naive enough to think we could have an agreement in a few days. but we could have a framework for negotiations with a deadline with clear parameters which enable the palestinians to say let's give it a chance. if they do, i think we may see

some progress because everybody must have learned from the mistake they made over the last few years. megynmegyn: thank you so much fr being here. all the best, sir. coming up, eight years of marriage comes crashing down over a fling with a rock star. but will white house party crasher chicago shell sha --parg in the diversion settlement? mal] to the 5:00 a.m. scholar. the two trains and a bus rider. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be

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headlines when he reported his wife may have been kidnapped. it turns out she took off with a guitar player from journey. tareq filed for divorce. but michelle could be singing a sad song. their prenup says she gets nada if she commits adultery, and she loses will all rights to spousal support if she moves out of their house. can that be upheld in a court of law? let's ask our panel, arthural todaya and joey jackson. first we get a tweet from tareq saying my wife has been kidnapped, i'm very worried. then the police say not to worry. she is not kidnapped. she is happily installed where she is. then we find out tareq filed for

diverse. then we see the prenup that says she loses a right to any property they accumulated during their marriage if she committed adultery. can they uphold that? she don't get half of the property that they built up together? >> as long as whenhat contract which is basically what it is was executed, she wasn't under any kind of duress or any threats, she had an opportunity to have her own attorney look at it. basically the general rule is nationally is the thing that cannot go in there -- they do religion, things to do -- if there were children, how the children should be raised. megyn: let's say they bought a house together while they were married. does she lose any rights to have half of the proceeds from that house? >> as long as we agreed to that when she signed on the dotted line when they got married the

answer to that question is yes. megyn: can that be upheld? she gets nothing? she signed away every single right to every dollar she had when she was married? >> no way. the judge is not going to be heartless. the point of the matter is this is called uncon shunnablity. they are talking about property they accumulated in unison. we are not talking about separate property where he brought it to the table. we are talking about what she did to the marriage during her 8 years in bringing something to the equation. >> we are assuming she financially brought anything to the table. i don't know the answer to that question, whether it was primarily his money or her money. megyn: it doesn't matter because what this says is she'll wave all rights to her money, to their money, their property and

shandand she forfeits rights to alimony. >> if she chooses not to commit adultery, if she choose not to move out of the house, then she has got all the money she wants. but she signed on the dotted line. the key a judge would look at is did she do so knowingly. megyn: is there any chance she can argue she did not commit adultery. she loves journey and she did to the stop believing and she was not loving, touching and squeezing with sean. >> that was good. there will always be the factual question whether adultery was committed. they will examine that and she can say of course i wasn't committing adultery. we were hugging and saying hello to each other. the bottom line is, is this an equitable argument.

it will come down to wet sear judge will recognize and respect whether he was unjustly -- >> when you are talking about the equity. the equity, she basically gave up the equity when she signed on the dotted line. she said i will be faithful. megyn: they are saying she is trying to turn her new life with this journey guitarist into a reality tv show and the soon-to-be ex-husband tareq is aware of it and willing to play along. >> it shows what financial motivations and financial incentives would and could do. >> they are addicted to fame it's a perfect example. megyn: we'll be right back. are you receiving a payout from a legal settlement

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megyn: netflix facing some angry

shareholders and customers after separating its popular movie streaming business from its dcd by mail service resulting in price hiesks up to 60% and a big dip in stock prices. now there has been backtrack. oh, boy, it's rare you see a ceo say what this guy said. >> reporter: shares of netflix are getting clobbered as the company unvails a move to split its self into two businesses. the old dvd will become a separate operation under a new name. it's stunning name and wall street is dubious. netflix is trying to ride the trapeze to swing from the old dvd business to the new online

business. but in fact it looks for like net application is pulling an eskimo move. it's taking the dvd business out to ship her out to see. 24 million customers are customers of both services and they will have to endure two separate web sites. almost 10 million are online only. only 2s 2 million are dvd only. netflix was a high flyer until it began this ship. it angers many customers by scrapping this old plan. september 1 they began charging $8 a month for online and $8 for dvd and the company lost 800,000 dvd customers. the ceo apologized for how he handled the switch. netflix insists these dvds are

a great business. to separate out the dvd business. megyn: a slow decline for a quickster decline. thank you, sir. we'll be right back. let me tell you about a very important phone call i made.

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