we'll take the snake over stocks every day. high everybody, i'm jenna lee, "happening now", running for cover on wall street, a tough week for the stock market. jon: take a look at this chart. over the last four days, not including today's activity, although the markets are slightly positive, up about ten points right now, the dow has plummeted 775 points. that's 6.7%. the blue chip index on track for its worst week since october 10th of 2008, and as you probably remember, thaf at the height of the financial crisis, the week the dow dropped 1 percent. jenna: as jon mentioned, right now the dow is in positive territory. charlie gasparino of the fox business network is joining us to work through some of this. charlie, taking a look at this past week, where do we go from here? >> >> reporter: you remember last week it was up a lot. i mean, this is the problem, with sort of gauging this day by day, it's really hard to tell where the market is going. i will tell you this, i've been looking the a the tape, really stunning, for about a

year. as you know i've covered the markets for longer than that but if you study the market it's been trading in this range from the dow 10,500 to about # 1500. the reason it's in that range, it's not breaking higher or lower, let's go for higher, is because you have problems in europe and fiscal problems here. you have the obama administration not offering a real remedy to the crisis. why isn't it going lower? when you have zero percent interest rates, where are you going to put your money? you can't buy a bond. have you seen yields, returns on treasury bonds and money market funds? so it's basically staying in this range. if i was the average investor, i'd just generally don't give investment advice but using my common sense, i wouldn't be baying right now because it could be up next week. when you have zero percent interest rates, guys, there's no place else to put your money but stock, and that's -- and ben bernanke, the fed chairman, is doing that by design, he's trying to prop up the stock market by essentially keeping rates so low. jenna: go back to the point you said about a remedy. you said that the president is not considering a remedy for this, but is there a

remedy actually out there? >> listen, you could do some of the stuff to stimulate the economy, i believe. now we're talking opinion here. that the republicans are asking for. taking down rates, very low, plugging loopholes in the tax code. i'm not just saying that, but businesses say that. businessmen, when you talk to them, what are the fundamental problems, why aren't you hiring. we're not hiring because we don't like the taxes that are coming out of the obama white house, millionaires taxed, you know, taxes on people -- family making 250 a year, that's going to de stimulate the economy. by the way those taxes also hit small business, we don't like the regulatory environment which is very restrictive, so you have to change that environment, that's called fiscal policy, businessmen will tell you, to get the economy going. that's why you don't see the markets break out. listen, when you have zero percent interest rates, the market should be trading a lot higher. we should have some inflation. problem is, we have zero percent interest rates and we have deflation. housing prices are still low. there's a fundamental problem with fiscal policy

in this country. the president, at least according to businesses, is not offering a good enough plan. so what do you have out there? well then you have monetary policy, that's ben bernanke, he's printing money, he's keeping interest rates very low. in that environment, i will tell you this, people don't buy bonds. you know why? because the returns are very low. so you automatically buy stocks, but it's not going to break above a certain level. it's going to trade in this range. jenna: let me ask you about something else if i can, charlie. i saw that oil is trading below $80 a barrel and we haven't seen that in a while, lower gas prices sometimes -- >> that's the economy. jenna: they can be interpreted as a bit of a tax break. is that good, is that going to help out families until we get to the end of the year? >> remember why it's trading lower. it's trading lower is because the people in the chicago pits that bet on the price of oil is saying the economy is lousy and guess what, when the economy is lousy, people use less oil so yes, you get a benefit from that, people say lower prices at the pump, but

still, there's a reason for that, and the reason isn't good. it's because we have a lousy economy here. but like i said, if you're an investor, i wouldn't be bailing now. this market is trading in a range. jenna: and charlie, we're seeing that range as we started talking. and now the market is in negative territory. you had nothing to do with that, though! >> hopefully not! skwr*b yuen charlie gasparino, thanks charlie. >> i believe it is fundamentally wrong to give people money for 99 weeks for doing nothing. that's why we had welfare reform. jon: if you saw it in the debate last night, there was big applause for former house speaker newt gingrich along that line talking about his plan to reform the system that delivers unemployment benefits in this country, just one of the highlights of last night's presidential debate here on fox news channel. newt gingrich joins us live from orlando. i'm curious whether you've taken heat on that 99 weeks

prescription. a lot of people say in this economy, unemployment benefits are the only way they can survive. >> well, i'm not trying to take away their benefits. i'm just saying if they get money, they ought to be learning, if their not working, and that we have every right as taxpayers to say yes, we'll help you survive, but by the way, the price of us helping you survive is you've got to sign up for a training program, you've got to expand your marketable skills, you've got to become more employable. i have been talking about this for about six months. i have yet to have any audience that has disagreed. because i'm not trying to take away unemployment compensation, i'm trying to turn it into a worker training program so we increase the human capital in the united states to compete more effectively with china and india. people get the logic of it, people agree morally, we shouldn't give people money for doing nothing, and so i think what i'd be curious about is somebody who says no, you owe me 99 weeks of doing nothing and i refuse to sign up and learn

anything. i suspect that person is not going to get any sympathy from working, tax paying americans. jon: it's been pointed out by even the president who was in office when you were speaker of the house, bill clinton, that there are at least 3 million job openings out there that can't be filled right now because the workers that they're looking for don't have the skills. >> right. so imagine that the companies that have those 3 million unfilled jobs were able to get workers who are getting unemployment compensation, spend their unemployment time learning how to do that skill, then hire them. and so it's a win/win for everybody, the company gets a better trained worker, the worker has actually learned rather than wasted part of their life, we get them off of unemployment, into paying taxes, so we're closer to a balanced budget. this is the kind of creative proposal, and i would do it by returning the power to the 50 states, letting them each experiment with how to get it to work right, recognize you don't have a washington answer right now, but i think the core principle, yes, we'll help you, but you have to do

something for the help we're giving you, is something we should frankly apply across the board. we should not give people money for nothing. jon: "the washington post" -- they gave you credit for a strong performance but said that you lack the campaign organization to take advantage of it. looking at a poll of a rasmussen reports poll of your standing in this campaign right now, the rasmussen reports finds that romney gets 41 percent of the vote against president obama, governor perry gets 39 percent, you're at 30 percent. do you dispute those results? how do you see yourself stacking up? >> no. well, first of all, at this point in 2003, in the democratic party, howard dean and general wesley clarke were the two frontrunners. when at this point in 2007, rudy giuliani and fred thompson were the republican frontrunners, so for the

news media to decide they're going to pick who's going to be able to take advantage of things i think is pretty foolish. i'm talking to the americans at these tkae bait, at cpac in florida, we're getting a great response, i think that over time, we'll continue to gain ground. there have been three poll necessary florida that now show me running third 57d i think that's a long way from where people had me in june. skwr*pb skwr pb -- jon: so the conventional wisdom these days and this may be a media construct but the polls seem to say it's a 2-man race between romney and governor perry. what's your take on that? >> i think it's silly. there have been no votes taken by the american people newspaper reporters and tv reporters aren't the american people. the fact is it's more convenient to narrow it down, it makes it easier to cover. but it's not factually correct. at this stage in twoo at this stage in 1993 bill clinton would not have been

in the final two, at this stage, as i said a minute ago, in 2007, john mccain wouldn't havbeen in the final two, at this stage in 1971, george max govern who became the democratic nominee wouldn't have been in the final two. we have too many examples in history, is one potentially a nominee, yes, is it equally possible a third candidate, maybe newt gingrich, maybe somebody else is going to get past them, yes. so this is still a very, very wide open race. jon: spoken like a former history professor! newt gingrich, former speaker of the house as well, thank you very much. >> thank you. jenna: so he's saying he still has a chance. that's the takeaway there. jon: and the crowd liked a lot of what he had to say last night. jenna: it will be interesting to watch the candidates on the campaign trail. in the meantime we have to turn to d.c. and what's going on, scramble is on, trying to prevent the government from running out of money next week, avoiding a potential government shutdown. mike emanuel is on capitol

hill, all eyes are on the senate at this hour about what they're going to do. what do we expect to happen? >> reporter: stop me if you've heard this before, we're running out of money as of october 1st, the house has passed a bill the senate doesn't like, so we expect when it comes over to the senate, that harry reid will get the 51 votes necessary to essentially kill the bill. we know that reid favors a plan that passed the united states senate but would provide more disaster relief for the tornadoes, for hurricane irene, for the texas wildfires. here's senator reid, setting the tone: >> this is not a high school game of i gotcha. we're not willing to vote unreasonably. >> reporter: reid has taken to the senate floor. we know that he is waiting on receiving the bill from the house, at which point we expect him to try to kill the bill and then ultimately we are in showdown mode, jenna. jenna: i don't want to interrupt you but your point

about dejavu is well taken. how about this for deja vu, house republicans feel they've done their work. what do we expect now? >> they passed their bill late last night which provides $3.7 billion in disaster funding. they say that is adequate over the short term, and then as the receipts come in over time, they can certainly add to it down the road. we know that speaker john boehner, majority leader eric cantor, expect to have a briefing in a matter of moments -- of minutes, any moment now. we will hear their tone. there was some sense they may try to send this bill over to the senate and then leave town for a week of recess. essentially, challenging the senate to kill it and perhaps shut down the government. but we heard speaker boehner essentially trying to reassure the public. listen to this: >> there's no threat of government shutdown. let's just get this out there. this continuing resolution was designed to be a

bipartisan bill and we have every reason to believe that our counterparts across the aisle were supportive. >> reporter: so the show is called "happening now", there's a lot happening now. we expect to hear from the speaker, the majority leader in the house, we also expect the senate to take this up in a matter of minutes, 11:20 or so is the latest calculation we've heard, so a you have fluid situation and we'll be on it all day. jenna: i've just seen in the urgent cue that reid has set up the vote for 11:20, he will move to table or kill that bill around 11:20 or so. we'll be waiting and watching emanuel, thank you very much. jon: that's seven minutes from now. jenna: it's happening now! >> jon: it sure is. dramatic new developments emerging in the united nations, the palestinian president is about to break new ground. he'll be taking to the podium shortly, asking the world body to recognize palestinian statehood. this despite major pressure from the united states to

back off that request. the latest on this international showdown, coming up. also, are you looking skyward? the countdown to a satellite that's coming back to earth. nasa says there's a one in 3200 chance someone could get hit by the debris today. jenna: that's not a high probability, right? one in 3200. jon: it's better than the lottery! coming up, who is clear, who is not?

jon: a fox news hraoert, everybody put on your crash helmets, stphobg. >> jenna: we were joking about this a little bit but we just got an alert from nasa and here's what nasa says about the satellite coming back to earth over the next 24 hours, it says

that reentry over the united states, over north america is no longer completely off the table. here's what the announcement says. it says there's a low probability any debris survives reentry, and any probability that really it will land in the united states, but there's -- there's a but here -- the possibility cannot be discounted because of the changing rate of decent. they say it's too early to predict but they should know moreover the next 12-18 hours. they said one in 3200 chance it may hit someone? >> jon: that's what their calculation is based on the analysis of the globe. jenna: we talked to kris gutierrez and at that time, he said no reentry over north america. jon: this thing is slowing down a little bit. jenna: we'll keep you up to date about any developments. jon: they're talking about the middle of the night, something coming down. they're not exactly sure. jenna: like we don't have anything else to worry about! jon: keep it tuned here, we'll do our best. this fox news alert, on

to the u.n. *pb, palestinian president mahmoud abbas is getting ready to address the general assembly and despite the u.s.-led effort to stop him from making a bid for statehood, he is saying he will submit the application to the u.n. chief ban ban ki-moon as planned today. reena ninan is at the united nations now for us live. what is abbas expected to say, reena? >> reporter: the focus will be pushing forward this bid for statehood through the security council. he'll give that to them any minute now, we're expecting that. we're not expecting a vote to come quickly. it could beeeks, even months. we asked the palestinian president mahmoud abbas what his next move would. alexis: if you're unable to get an upgraded status in the the -- at the u.n. been would you consider resigning? >> i will not run for reelection. this is exactly what i said and this is my decision. now, to reside or not to

reside, it depends after we come back from the resolutions. >> everyone what happens after the speech. do you worry there could be a third infitada? >> there will be no armed intifada, because the people believe that they will resist in a peaceful way, not in the other way. >> reporter: a senior palestinian official sells fox news that one of the options they're considering is turning over the entire palestinian authority to the israelis to control. that would be a $3.2 billion burden that the israelis would have to shoulder, something they do not want to see. jon. jon: so how does all of this affect what's going on on the ground in the palestinian territories? i mean, essentially what happens after he makes this speech? >> reporter: well, take a live look right now in the west bank, near ramallah, we're watching to see what

the situation would be. if the violence picks up. like i said, this vote isn't going to happen quickly and that could lead to people being disgruntled on the ground. the diplomats that i have spoken to have been very concerned that that could be a violent west bank gaza strip in the coming months but the truth is we have to wait and see. the palestinian president says his security forces are strong enough to deal with that but a lot of diplomats are really skeptical, jon. jon: reena ninan, live at the united nations, thank you. >> sure. jenna: taking to you d.c. now, where we're watching closely what's happening in the senate, what we understand is that the senate has started a motion to table a bill, the house spending bill, right now, and what harry reid, the speaker -- well, majority leader -- apology, majority leader, is trying to do in the senate is kill the bill that was sent over by the house to keep the government up and funding. we're up against that deadline, coming closely here at the end of the month, that if there's not an agreement on spending, then the government can shut

down. so i believe this is a live look at the senate, is that right, guys, this is a live look at the senate and right now the motion is to table the bill, starts right at this time, all things equal, what we expect is that this bill will die and then the question is what happens next. the house is supposed to be in recess. will they come back, will they give another bill to the senate, is the senate going to send back another version to the house? there's a lot going on in d.c. and all this has to do with whether or not our government stays open and running. we'll keep you up to date, be right back with more breaking news on "happening now".

jenna: welcome back, everyone. right now, all signs indicate palestinian president mahmoud abbas will forge ahead with his plan to formally ask the united nations to recognize the palestinian state as a full member of the world body, of

this organization. that request expected to come less than an hour from now, when abbas addresses the u.n. general assembly. his push coming despite strong urging from the u.s. and israel that he reconsider. aaron miller is former adviser to six secretary of states, author of the "much too promised land" and one of o best guests on this topic. aaron, we could be witnessing history here. what changes in the world if abbas makes this request? >> well, he is going to leave an application with the secretary general and possibly days, weeks from now or maybe never, the security council will vote on this. look, jenna, in the end this will change nothing. it's the key to an empty room. in a way, it's a lose/lose situation for everyone. abbas is dangerously close to raising expectations on the ground which will be frustrated, he's going to put the president of the united states in the position of having to veto a resolution which frankly will be very good for his domestic political constituency, but not great for his arab and muslim

constituency or for american interests in the region. but at the end of the day, as grimace the prospects are for negotiation, and they are very grim, i would not encourage the israelis and palestinians to go back to the table now because they'll fail. that is not in the end the only way that palestinians will realize their national aspirations and create a state living hopefully alongside of israel and in peace and in security. jenna: you mentioned that expectations will not be met here based on what could happen in the next hour or so. as far as what happens on the ground outside of israel in the palestinian territory there, we know hamas is very active, it's a terrorist organization in that area of the world. bring us back home to us, what are the implications of still no peace there and is there something that w should consider as far as our national security goes? >> over time, there's no question that the stability in the -- that the west bank has enjoyed is going to deteriorate without a political solution. but for now, i suspect there are a number of factors,

including, i might add, paradoxically, hamas does not want to escalate things, either, abbas certainly doesn't. in fact he's probably at the u.n. because he's trying to preempt the kinds of street demonstrations that we've seen everywhere else in the arab world against the leaders who don't produce for their peoples. and the israelis and the palestinians are really involved in very close and intimate security cooperation. so at the risk of making predictions which i shouldn't do, i'm not sure you're going to see a major surge in violence, at least right now, in the wake of these proceedings at the u.n. jenna: we're taking a look at some of the video over the last couple of days and some of that violence on the streets there. withy playing the chess board right? >> here's the problem. you have an israeli-palestinian conflict that can't be resolved. you can't force the israelis and the palestinians to agree to a solution on jerusalem border security and refugees. i mean, look at our experience in iraq and afghanistan. we're hardly in a position,

frankly, to force anybody to do anything. that's a separate problem. our credibility over the last 16 years, eight under bill clinton and eight under george w. bush in this region, has really fallen. in matters of peace making and war making. so we are not in the position of having to push. and frankly, we shouldn't push. this country has major problems here, you have a president who's much diminished, fighting for his political life, and all americans ought to understand that what really ails this country is decaying infrastructure, debt, decifit, chronic and structural unemployment. these are the issues that we need to dedicate ourselves to. not chase some fantasy called an and to the israeli-palestinian conflict, because at the end of the day, nobody ever lost money betting on arab-israeli peace and barack obama won't lose money, either. jenna: the annual aid that we give to palestinians is around $600 billion, and obviously, we have a multiple relationship, different lines of

communication open with israel as well. as far as where our money is going. but you bring us back to domestic issues and we're going to return to some of those now, aaron. thank you very much for your time today, we always appreciate it. >> pleasure, jenna. jon: a fox news alert, this is a news conference at the republican leadership in the house -- that the republican leadership in the house has been holdings, speaker john boehner, speaker of the house and majority leader eric cantor have been at that podium, saying that essentially, senator harry reid, the democrat leader in the senate, majority leader in the senate, is arguing with himself. he has promised to table that spending bill, essentially killing it, the bill that the house just sent over. it is sort of a game of chicken between the two bodies. the senate doesn't like the -- the senate democrats especially do not like the spending bill that the house republicans sent over, and they're essentially saying that they're going to kill it and dare some kind of a

government shutdown. hard to believe we're talking about a government shutdown again, already, but we are. the house has gone into recess for a week. lots of arguing yet to come. we'll try to cover it as best we can and we'll be back after a short break, "happening now".

jon: some developing stories we are keeping an eye on in the

newsroom. palestinian leader mahmoud abbas ready to ask the united nation for statehood. i ignored a u.s.-led effort to stop him. yemen's president making a surprise return after three months of medical treatment in saudi arabia after an assassination attempt. he is immediately calling for a cease fire between warring forces in his country. and the sun shining on a temple in mexico at a precise angle marks the beginning of the autumn equinox. it begins the first day of spring and the first day of fall. jenna: we will talk a little bit about a solar company. silence from the top executives of a bankrupt solar company. the people at the top of solyndra were supposed to testify at a hearing into the loan the company received back in 2009. they are invoking their fifth amendment rights in order to avoid any self-incrimination.

still the hearing is going on, anded henry is live at the white house to tell us a little bit more about this. ed, they are take being the fifth, where does it go from here? >> reporter: that is the big question. the hearings and the whole investigation has been explosive because of solyndra losing so much taxpayer money. they say this is a modern version of the great train robberies, taxpayers on the hook for hundreds of millions of dollars that the obama administration approved to this solar panel company out in california. look, these officials, the ceo and the cfo of solyndra had promised the committee they were going to talk. in the final couple of days before the hearing they said they were going to plead the fifth, they didn't want to selfincriminate themselves. one of the top republicans there today cliff stern says this is a big, business problem. >> congress and the american taxpayers have a right to know whether this loan guarantee was rushed out the door before it

was ready for prime-time, whether the administration doubled down on a bad bet. >> reporter: this hearing wrapped up. another top republican fred upton vowed even with the executives pleading the fifth, this investigation on the hill will go on. the f.b.i. has already raided the company's offices out in california. that investigation goes on as well. jenna: one quick question. i know you are standing in the rain. we can hear that on your mike. we've had a number of hearings now, right? as far as the fallout for the white house, is there any at this point? >> reporter: well it has to be pointed out that after several hearings on the hill now, all kinds of investigations, as i mentioned, there has really been no evidence of political malfeasance here at the white house, that anyone in a senior position pushed this loan through to help a campaign donor, specifically. there's been a lot of allegations about george kaiser one of the leading investors in this company, no evidence of

political malfeasance yet. certainly what we have seen is that perhaps the obama administration was in a rush to get this stimulus money to this company in california, maybe they didn't do all the checks to make sure the taxpayer money was spent well. it will be harder for the president to get this new economic plan through after we see that some of the previous money was wasted number one and his broader initiative on green jobs is certainly under fire. jenna: those are the some big take aways of the story. get in out of the rain. we didn't arrange for it in that story. it just sort of happened. thank you. jon: american student amanda knox is in a courtroom in italy, closing arguments underway in her appeals trial. knox you right remember is serving a 26-year prison sentence for murdering her roommate in 2007. her lawyers are trying to debunk dna evidence used to get her conviction overturned. greg burke is streaming live for us from rome.

>> reporter: john, that's right. it's really crunch time in this appeals trial. the original trial ended as you said with a 26-year sentence after that conviction, murder and sexual assault, defense lawyers hoping that this way, this time it goes differently for amanda knox. today the prosecution summing up their case against amanda knox in the murder of her house mate. while this trial has been marked by the retesting of dna evidence, this was very important, it's all gone very much in amanda's favor, the prosecution saying today that you have to look at all of the evidence. the jury also seeing a video of both the autopsy and the crime scene, so they saw just how brutal that murder was. things are looking better for both amanda and her prior boyfriend. the trial has had an entirely different momentum from the original trial. they did not allow a retesting of the dna in the original trial are.

the judge in this appeal trial did and to a large degree it discredited at least some of the key parts of that dna evidence. jon, one important piece of information that came out today was just the calendar. it looks like there will be a verdict within about ten days. they are talking about monday october 3rd, perhaps with a little luck it would come a little earlier, october 1st. amanda has lots of reason for home, although it's a complicated case and there is certainly no sign that she has a get out of jail free pass just yet. jon: a lot of people are watching that very strange case. thanks, greg for covering it for us. jenna: the fox news channel google republican presidential debate are in the books. who the tea party favors. dick armey is our guest next. yep. the longer you stay with us, the more yosave. and when you switch from another company to us, we even reward you for the time you spent there. genius. yeah, genius. you guys must have your own loyalty program, right?

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jon: right now the race for the republican presidential

nomination seems to be shaping up into a two-man contest between texas governor rick perry and former massachusetts governor mitt romney. of course a year can be an eternity in presidential politics. lots could still change. let's get some idea of how the tea party gauges these two frontrunners. former house majority leader dick armey is our guest, a republican from tech as and chairman of the tea party related group freedom works. let's take a look at a couple of polls, congressman army and shows how these two men stack up, when asked at least in the florida race whether voters preferred perry or romney. 28% in this poll said perry. when you match you have up these two same candidates against president obama, perry comes in with 422% and president obama 44%. mitt romney does a little bit

better, actually besting the president according to this same poll. does that suggest to you that mit mit migh mitt romney might be the stronger candidate against the president? >> that doesn't at all. that is a choice criteria that is made by people like party regulars, professional political criteria. bee harken back to gary gold water's famous, giv us a choice not an echo. and the fact of the matter is our voters take a look at romney and they see a man that is too close to president obama on social security, healthcare and the environment. they look at rick perry they see a man who is a stark contrast on all of these issues. and our final criteria ultimately is who would we dare to believe would really serve in the office in commitment to the principles of constitutionally limited small government.

we believe perry will be that man. we don't believe that the governor from massachusetts would be that man. jon: you mentioned gary gold water, obviously a conservative hero, but you remember what happened when he ran against lyndon johnson. >> well i did. but, you know, i have met lyndon johnson and i can tell you obama is no lyndon johnson. lyndon johnson wouldn't vote for president obama. president obama is in the deepest hole i ever saw for any incumbent president, and he is frightening to the american people, in terms of where they fear he would take this country in a second term, devoid of any concern for re-election. so the fact of the father is beating president obama is not much of a challenge for anybody that was on the stage last night. the question that we ask is, moving the ball in the direction of restoration of america to its rightful place of prosperity and

leadership in the world, fairness and justice and equality for all, that is the person we are looking for, and so we're looking for a champion to beat him, not a person who will take the office and, you know, serve as an inconvenience minimizer, getting by without any great accomplishments for the country. jon: it's been a little more than 12 hours since the debate ended last night. who do you think won? >> i think you've got to give romney style. obviously he's been at it for four years. these are skills that are fairly mundane skills. i think governor perry will brush up his shake pier and regain the ground. on the substantive issues of greatest important to the american people i think rick perry still has the high ground over romney, and frankly i think over most everybody else on that stage. jon: it sounds like you're pushing for the texas governor.

dick armey, chairman of freedom works, former majority leader in the congress, thank you. jenna: now this fox news alert. we've been expecting this. palestinian president mahmoud abbas has submitted an application to u.n. chief ban ki-moon for statehood for the palestinian territories. this is what is happening. there are addresses in front of the general assembly. that was not mahmoud abbas. i don't want to confuse anybody. mahmoud abbas is the pal teen yan president. and he will be speaking in about 20 minutes from now. we expected the application ahead of that speech. after he speaks we'll hear from the israeli prime minister benjamin netanyahu. this is an historic event. we give the palestinians about $600 million on average every year since the 1990s, our close ally in the region is israel, and israel does not want to see a palestinian recognition of state by the u.n. once he makes that application it doesn't automatically

happen. it has to be voted on and the united states will have to cast a vote as to whether or not we want to see recognition by the u.n. of a palestinian state. that's where it gets into tricky territory. the expectation is the united states would veto that request. until the council votes we really don't know what is the state of this application for statehood. we'll continue to keep you up to date. mahmoud abbas speaking in about 20 minutes, and we'll be right back with more "happening now." there's only one bottle left !

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jenna: we're going to continue to talk about the satellite, jon? holy cow the thing is coming down to earth. nasa says there is a one in 3200 chance of it actually smacking into somebody on earth.

we'll get you some information on those odds a little bit later on. kris gutierrez is at nasa. they are trying to figure out exactly when this thing is going to come land. he's at the johnson space center in hughes toon. what are you hearing, chris. >> reporter: there are big changes we want to tell you about. the orientation of the satellite has changed, which means it's slowing the descent. what does it mean for us? if you think what we've been telling you for the past 24 hours, nasa initially told us this thing would not re-enter the earth's atmosphere over north america. they are telling us there is quote a low probability that could happen. so now the u.s. mexico, canada, we are back on the radar screen in terms of this thing falling and breaking apart over parts of the u.s. for example. i think this will help put it in perspective, remember our shuttle program, when our shuttles would come back down our astronauts would change the orientation or the attitude of the orbiter to slow it down by creating drag by having it at

this altitude. it slows it down. that is exactly what is going on with this out of control satellite. make a look at the satellite here, when it reenters the earth's atmosphere somewhere it will break apart into 26 different chunks of stainless steel and titanium. the smallest chunk 10 pounds, the largest chunk 300 pounds, like a refrigerator falling from the sky. where that stuff will land at this point nasa still does not know, jon back to you. jon: we had our brain room, kris. we had brain room research done. nasa is saying a one in 3200 chance of a piece of this space junk actually hurting or killing somebody, right? doesn't sound like it's all that likely. well your chances of being killed on a single airline flight are one in 9.2 million. our odds are winning the powerball jackpot 1 in 195 million.

yeah, 195 -- 249 million. the odds of being killed by contact with hornets, wasps or bees one in 79,000. we are not actually looking so good here on this satellite thing. >> reporter: comforting, holy smokes now you make me nervous, jon scott. i've got to call my wife and tell her to get back in the bunker. when you think of what happened in 1979 with sky lab, that was 75 tons and the current satellite is six tons. if we say this current satellite is the size of the school bus sky lab was like the whole bus barn and sky lab broke apart over australia and fortunately didn't hurt anyone, injure anyone and we are hoping for the same thing here, jon. jon: we are having a little fun witness. it's going to be quite a light show i guess around the middle of the night eastern time is that what they are thinking? >> reporter: yeah because the thing has really slowed now. remember they said some time

this afternoon. now it's late tonight, maybe even early tomorrow. jon: kris gutierrez, manning you. jenna: i wonder how the request to get his wife in the bunker goes. how does that go? all right. nasa is getting some help finding another space relic. amateur a tron mores in the u.k. are teaming up with a group of school children to find snoopy. it's not the actual snoopy it's a lunar capsule used in apollo 10. the last record of snoop poe's location is now more than 40 years old. tracking it may require taking into account the gravitational pull of the sun, the moon, the earth, we have no idea where it is. jon: snoopy come home. jenna: fox news alert back here in new york city mahmoud abbas has submitted an application to the u.n. for statehood for the palestinian territories. new video of the exchange of that actually happening. we are awaiting comment from mahmoud abbas. again israel, our closes ally in

the region does not want this to happen. it's up to the u tph-rbg security council to vote for recognition. we have been waiting for this essentially all week to see if mahmoud abbas was actually going to do this. now we have the video that he has and he'll be speaking in about 15 minutes or so. we'll have that live for you and all the breaking news coming up next hour. we'll be right back with more "happening now." ♪ [ horn honks ] ♪ oh, those were the best of days ♪ ♪ i still feel the summer rays ♪ that graced our backs as we went down the lane ♪ [ horn honks ] [ male announcer ] when your car is more than just a car to you, the right surance matts. are you getting the coverage options you need and the discounts you deserve? for an agent or quote, call 800-my-coverage or visit travelers.com. when someone changes lanes without warning? or when you're distracted?

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jenna: we start off the noon hour here on the east coast with fox news alert. the senate just rejected the house spending bill that if it was accepted would have prevented a government shut down. we have a week until that deadline. mike emanuel is standing by to tell us what to look for next, mike. >> reporter: i told you earlier there were a lot of moving parts with this story. let's bring you up to date. while the senate was killing the house version of this bill you had speaker john boehner and a

couple of congressmen whose district were rocked by flooding from hurricane irene the critical nature of passing this bill. what they didn't say is if they were going to go home having done their job. they left a little wiggle room to come back on monday to work more on this measure, or after the jewish holiday late next week to finalize the bill. a lit wiggle room on the house side. on the senate side is what is harry reid's play next. david vitter from the state of louisiana said he would not support the bill that he had voted for last week, that would give $6.9 billion in disaster relief, so essentially signaling to senator reid i am not supporting that any more. so does reid take this bill that has been tabled which is hill speak if you will, essentially demonstrating that there are not the votes to pass it, does he strip out the offsets, the pay

fors, which were measures essentially stripping money from green energy projects that were needed to get house conservatives to support it and perhaps does he send the bill back stripping out those components that the democrats find objectionable and then challenge the house to either pass that version of the bill or we continue the stalemate. jenna: we need a diagram. let me just take this butt by bit. the house has the bill, sent it to the senate. the senate kills the bill is not even going to consider it. they could take the bill, rejigger it. but if there is no one at the house we could be in a shut down situation. >> reporter: both the house and senate are supposed to be on recess next week due to the jewish holiday, so the question is do they work before the holiday, do they work after the holiday? can they miraculously come up with a deal today.

we know speaker boehner in front of the camera said he had a conversation with majority leader harry reid before he came to the press conference and said not much progress was made. we did not hear eric cantor saying, we're going home, it's over, see you later. there was some thought that the house republicans might try to in effect jam the senate by saying, here is the bill, we are leaving town, but then the question is what do the american people think if they were to do that, jenna. jenna: that is the important point, what do the american people think on both sides of this. i don't know how you keep it all straight. i'm sure glad you do. thank you, mike emanuel. jon: now this fox news alert. jenna: a political showdown unfolding as palestinians push for statehood. hi, everybody, i'm jenna lee. jon: i'm jon scott. the palestinian president is about to address the u.n. general assembly. a few moments ago president mahmoud abbas submitted an

application for full u.n. membership. the security council will have to consider that now. after mahmoud abbas addresses the general assembly -- this is from a few minutes ago, there is president mahmoud abbas with ban ki-moon, and he is submitting that application as you see in that paperwork. israel's prime minister is likely to argue that only direct negotiations between the two sides can lead to a palestinian state, that you can't just do it with some kind of a u.n. vote. senior correspondent eric shawn is live for us at the u.n. right now. bring us up to date, eric. >> reporter: jon, it's been 64 years that's when the united nations petitioned palestine which lead to the creation of the state of israel. today the palestinians say it is our turn. mahmoud abbas officially is that righting a process that he hopes will lead to recognition as a state, handing in the applications and paperwork to secretary general ban ki-moon. he will pass that paperwork to

the security council where it will be studied by a special committee. in a few moments from now mr. mahmoud abbas is expected to issue that call and when he does you can expect sustained applause and likely a standing ovation from the largely sympathetic delegates here at the general assembly hall in the united nations. when he does so he will be defying the united states. the obama administration has vet end to veto this if and when it gets to the security council as well as israel saying they can only achieve a palestinian state through negotiation. some think this is more a symbolic move than substantive. the palestinians say this is their own option. >> we will not seek violence, we will only pursue what we believe is rightly ours, this is our phoplt, thinks the moment of palestine and the united nations, and this is the time for us to celebrate now what is becoming issue number one, and

hopefully it will be decided tpaeufrpb plea. >> reporter: the negotiations have been stuck on the same familiar sticking points, the freeze and nonfreeze of housing settlements. the 1967 lines. the final status of jerusalem among others. a former ambassador to the united nations told us that although the israelis believe in achieving a palestinian state, this is not the way. >> by going to the united nations to try and resolve the aspects of our bilateral differences he's engaged in a material breach, a fundamental violation of the oslow agreements which we signed on the white house lawn with the palestinian liberation organization. >> reporter: again we expect mahmoud abbas to take the green marbl podium and address the u.n. and benjamin netanyahu will give a speech a rebuttal to what mahmoud abbas says. both leaders have been here in

manhattan staying in hotels that are less than a mile apart. but the chasm that separates them seems endless. and the results of this remains uncertain. jon: all kind of fireworks to cover today there at the u.n. eric shawn, thanks. jenna: speaking of fireworks, from world to national politics now, a feisty debate last night between the nine republicans who want to be your next president. the two frontrunners, rick perry and mitt romney sparring with each other but perry -- clearly the rest of the crowds favorite punching bag as well. we are live in orlando. shannon you and the entire team did a great job. it was amazing to watch from up here in new york city. give us a wrap-up of how the debate went last night. >> reporter: we had a great time down here. you're right the two frontrunners didn't waste any

time going after each other. it lasted all evening long. a lot of the direct attacks came from other folks last night going squarely at rick perry especially when it comes to his position on immigration. his belief building a border fence is not the solution, it won't work, it's not feasible. and the treatment of in-state tuition and folks that may be here illegally in this country. take a listen. >> as president of the united states i would do what my job would demand of me, that is to uphold the sovereignty of the united states of america. to do that i would build a fence on america's southern border on every mile, on every yard, on every foot, on every inch of the soerp boar southern border. >> what you need to do is attack their free benefits. no free subsidies, no citizenship. >> reporter: as the governor of a keyboard der state perry says

he's more experienced than the rest of the field and he argues that having an educated bunch of young people in your state is more important than really being as concerned about their immigration status. here is his rebuttal to those attacks. >> if you say that we should knotted indicatnot educate children who have been brought into our state through no fault of their own. i don't think you have a heart. >> reporter: we partnered with google last night with this debate and it's not over yet. you can weigh in and let us know who you think won some of the dust ups last night. the voting stays up for a couple of days. weigh in and tell us who they think were the big winners and losers from last night. jenna: we haven't pointed out to our audience what is going on behind you today. what is happening today now? >> reporter: today is the cpac conference that runs conservative groups, you'll be

hearing all of the candidates pretty much speaking here, making their case to the voters here who have gathered from the republican party in florida, to hear what they have to say, making their case. speeches on going all day long, a big straw poll tomorrow and fox will bring you minute by minute coverage of both events. jenna: we appreciate that very much. it must be nice nor some of the candidates to have the microphone all to themes. we appreciate it very much. there is a lot of places to go for more on the big debate. check out foxnews.com/politics. you can get your fox news google debate downloads. you'll find eye lights, videos and much, much more. jon: up next former governor bill richardson will be with us. also, is this country heading into another recession in the dow was down substantiallier earlier. it is up about 17 points right now, but wall street is on track for one of its worst weeks since 2008. also, closing arguments in the trial of a florida real estate

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jenna: fox news alert, mahmoud abbas head of the palestinian authority talking about his petition for statehood at the u.n. >> who are the victims of the catastrophe that occurred in 1948. we aspire for and seek a greater and more effective role for the

united nations in working to achieve a just and comprehensive peace in our region that insures the rights of the palestinian people as defined by the resolutions of international legitimacy embodied by the united nations. mr. president, ladies and gentlemen, a year ago at this same time, and in this hall distinguished leaders and heeds oheads of delegations talked about thi this.

to reach within one year a peace agreement. we entered those negotiations with open hearts an and sun sear intentions. we r-r ready with our documents, our papers and proposals. but these negotiations broke down just weeks after they were launched. after this we did not give up and we did not cease our efforts for initiatives and contacts. over the past year we did not leave a door to be knocked or channel to be pursued, or path to be taken, and we did not ignore any formal or in formal party of influence and stature

to be addressed. we positively considered the various ideas and proposals and initiatives presented from many countries and parties, but all of these sincere efforts and endeavours undertaken by international parties were repeatedly smashed against a rock of the politicians of the israeli government, which quickly dashed the hopes raised by the launch of negotiations last september. the core issue here is that the israeli government -- jenna: again palestinian president mahmoud abbas just applied for statehood recognition at the u.n. this is his speech to the general assembly. just as a reminder we give about $600 million on average to the palestinians every year. our closes ally in the region is israel. as mahmoud abbas just said, even though attempts were made at a

peaceful negotiation for territory between israel and the palestinians nothing has been achieved, that's why he's taking this route. we want to talk a little bit more about what is at stake for us here at home. former new mexico governor bill richardson is with us, he's also a former ambassador to the united nations. he's a good one to talk to about this. governor, what is at stake for us here. >> the peace process is in trouble. the u.s. used to lead the peace process. this is a short-lived victory. mahmoud abbas is leaving office. he wants this as his legacy. it's know going to help the peace process. what is at stake for us, our relationship with israel is strong. but israel is in a neighborhood with turkey, and others who are hostile.

it's going to be a short-lived victory. it will be about 190-3. i used to be ambassador when we had these votes, u.s. israel and some south sea island vote but it's not going to be good for the peace process. yes we are for a two-state solution but it should be while israel and the palestinians are negotiating and they are not negotiating. jenna: there have been calls to take back the aid that we've been giving the palestinians since the 1990s. there has been the expectation that the united states will veto this application for recognition of statehood as well when it gets to the security council wherever that is. what do you think is the proper path for us here right now? do we take a look at the aid we are giving the palestinian? >> we should review that aid, we should probably cut it. the u.s. congress wants to end it. many do. i don't think we should do that. i think we should use it as a source of leverage to get them to negotiate with the israelis. we should veto the resolution, it should not get to the security council. jenna: why hasn't it be used as

leverage right now? >> we tried. the problem is when there's such a roar of countries wanting to make us look bad, but the general assembly it always happens, this is not the day for the big powers. the general assembly is the 190 count treats of africa, asia, latin america, arab states that are not powerful, that come and show their stuff, like ahmadinejad, like mahmoud abbas. it's not going to advance the peace process. it will diminish the chances of getting u.s. assistance the palestinians, israel's position is going to harden. we have to stand behind israel here and i'm worried about their security. jenna: you mentioned ahmadinejad. this is what is going on on the border where the palestinian territory is and israel. i want to talk about iran, mahmoud ahmadinejad coming out as he did ever year to talk about how there was no whom low cost and how 9/11 is a conspiracy. he's a known enemy to our

country. why do we even allow him here? >> any head of state can come to the u.n., it's international law. this is the only place he comes, and he vents. he's in real trouble at home domestically, the religious leaders are not liking him either. this is his chance to buttress politics back home to get political capital. iran is defying the community. they are building rich uranium. the u.s. was leading to mutt more sanctions on them but the only countries don't listen. jenna: what is the play, governor, when you look at iran, you look at our ally israel and you look at the developments in egypt and the turmoil that is happening in the region right now, what is the way forward for us? >> well the only good thing happening is the arab spring. a lot of countries rising up against despots.

hopefully syria will be next. but it's a dangerous neighborhood. the peace process is not moving. i think president obama needs to rekindle it. israel is in a tighter security situation. the palestinians, you've got hamas, others getting stronger. you've got iran making trouble in the neighborhood. you know, it's not a good region right now, and we should be really diplomatic lee pushing as hard as we can with the europeans to make things better. jenna: we look forward to discussing that more with you how precisely we can do that. we appreciate having you on set we'll have to leave it there, governor, nice being with you. more "happening now" in just a moment.

jenna: fox news alert, we want to bring you back to the u.n. quickly right now. mahmoud abbas the president of the palestinians just asked for recognition of statehood, he

just appealed or applied to the u.n. for that to happen. of it doesn't happen right away. it has to go through a voting process that could be weeks, even months away. however, this is his big speech at the end of the week for the u.n. general assembly. we do exspec to hear not too long after abbas finishes from israeli prime minister benjamin netanyahu who certainly does not want to see the palestinians recognized as an independent state. that would really shift politics in the middle east. israel of course being our greatest ally in the middle east and that's why we have an eye on this story for you. we'll continue to follow this average. you can watch it online, all the speeches at the u.n. on foxnews.com. jon: global financial fears and growing concern the u.s. could be on the verge of a double-dip recession sending markets sharply low they are week. take a look at the dow's performance since monday. it has s*upblg more than 750 points in just four days. it's actually up about 12 points right now believe it or not. at least on the day. joining us now steve moore,

senior economics writer for the "wall street journal," the old saying goes that the dow has predicted what four of the last eight recessions or eight of the last four recessions, look like that. it's not necessarily a very good economic predicter but it's not good to see it turn in the type of performance we've seen this week. what is going on. >> it's hard to make anything of what the dow is doing. itess clear to me, jon, that the dow and investors are starting to price into the value of stocks a double-dip recession. and that would be a terrible thing to see for the u.s. economy. jon as i've explained in recent weeks we are already in a jobs recession, right. i mean in august we had no new jobs. this past summer we almost had pretty close to zero net new jobs, and we are also in a business spending recession as well, businesses aren't hiring, and they are not spending money to expand their factories and their output. and so right now we are very

perfectly leslie close to a double-dip recession. we'll know better in the weeks to come. we have unemployment numbers, they come out in a week or two. it is allows see economy out there right now and i do think part of this is attributable to the lack of leadership in washington to deal with it and to do anything about it. jon: well okay. so lack of ability to do anything about it, that is pretty pessimistic. what is the fed supposed to do, what is the treasury department supposed to do? >> great question. the fed announced this week that it's going to essentially engage in qe3. we had qe1, and qe2, this is qe3, the federal reserve bank buying long term bonds. i don't think that is much of a solution, jon. i've never believed, i think there is a mythology in washington that somehow when the fed prints money that somehow it can print businesses and jobs. ann you and i know it's not true. this isn't the problem with the printing process, it's a problem

i think of over regulation, over taxation and the fact that we cannot get our budget deficit down. there have been no calls for spending cuts by the obama administration, by the way i'll blame the republicans too. they were elected november of 2010 to bring spending down. where are the cuts? jon: all right, so obviously the stimulus program was a big part of the federal government's attempt to try to fix this problem, it didn't seem to this worked, although you get some argument on that from some democrats especially. what does the president do now? >> first of all on the stimulus, i'm one of those people that would say not only did it not work it didn't create the jobs that were promised, the 3 million jobs, i think it made the economy worse, i really do. all this debt and this over spending has sapd energy from the private sector which is where all growth comes from. i any the president should do three things if i were his economic adviser. number one call a complete halt on new regulations. regulations are strangling jobs

and growth in this economy. number two we should do an immediate tax cut information businesses, and number three, let's have an across the board cut in government spending to bring this debt down to provide some confidence for investors around the world that the u.s. is serious about dealing with this trillion and a half dollar annual deficit. jon: i can't think of a family that i've talked to in the last couple of years that hasn't sat down at the kitchen table and tight end its belt somehow. why does the federal government not seem to be able to do that? >> you know, jon, i mean you said it. i say that every time i give speeches around the country. why can't the federal government act like a business in a household. when our revenues are down, what do you do? you put it very well, you suck in your stomach and tighten your belt. that has not happened in washington that's the reason we have a trillion and a half dollar deficit. president obama, remember when he was campaigning in 2008 he said exactly that, he said when i'm president the government is going to start to budget the

same way familiar less and businesses do. we are not anywhere close to. if we get a regime change in washington and get these policies straightened out i believe the economy is well prepared for a big burst of activity. jon, businesses in america are sitting on $2 trillion of capital, they are just waiting to spend. jon: yeah, and spending that in a hurry could really boost things quickly. >> no question. jon: steve moore from the "wall street journal," steve, good to talk to you. >> great to be with you. jenna: back to new york city where mahmoud abbas is speaking at the u.n., the president of the palestinians, and he just applied nor statehood for the u.n. to recognize the palestinian state. he received a standing ovation by the way as he approached this microphone where he continues to talk about the jewish settlements of israel being a major sticking point as to any peace process. there is a broader story here that is going on that we really need to follow. the middle east, the face of the middle east really has changed over the last six months-plus with the arab spring. our allies in the region may be

are not the same allies they once were. there is a shifting in egypt, in turkey, a lot of changes happening as far as that part of the world. obviously there is some national security concerns for us. our closes ally is israel. the prime minister of israel will be speaking after bass r-frplt he does not of course want the palestinians to have recognition of statehood. what would happen to the territories? how would they be defined? there are a lot of questions we cannot answer right now. we'll continue to follow the news for you. all the live comments can be heard online at foxnews.com. we'll be right back with more coverage here on "happening now." th olay get what you love at half the price with new olay body collections, tantalizing fragrances and olay moisturizing ingredients that transform lathering into lavishing. olay body collections. [ pneumatic wrench buzzing ] [ slap! slap! slap! ] [ male announcer ] your favorite foods fhting you? fight back fast with tums. ccium rich tums goes to work in seconds.

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jon: new word this week that the united states has decided it will not sell dozens of new fighter jets to taiwan, instead we are choosing to upgrade the island's nations fleet of f-16s. the u.s. has promised to help taiwan defend itself from china the decision not to sell is seen by some to be a possible attempt to appease the chinese government. gordon chang is offer of the book, the coming collapse of china what is the message that you see, gordon in this decision? >> well, clearly everyone and especially leaders around the region are seeing an attempt to appease china they are really concerned, because the administration appears more willing to try to be concerned about the feelings of the chinese people than about the defense of taiwan, which is a democracy. that is a real problem, because

china is not appeasable at this moment. jon: why not? >> well because they are very belligerent in beijing and they think that signs of weakness from the united states means they don't have to cooperate. three times, february, and november of 2009 and march of 2010 the obama administration tried to placate china but we only made beijing more belligerent. in baseball they say three strikes are out. this f-16 decision is really the fourth strike. jon: you think that the fine he's government senses or smells weakness on the part of the united states as a result of this decision? >> i think certainly, because they thought the united states might actually sell real weapons to taiwan, because they need the planes. china has been ramping up its military and we have been holding back on trying to defend the island. this is really terrible. we've had these discussions with beijing about the defense of taiwan which is a violation of ronald reagan's six assurances. chinese officials can see we are very concerned about chinese

feelings. this is not a good thing. jon: you practically can't find a manufactured product in a u.s. household these days that doesn't have, you know, significant components made in china. a lot of people suspect that khoeupb a has been manipulating its currency to give it a trade advantage in trade with the united states. do you see the administration undertaking any kind of a change in that policy in trying to confront china over that? >> the administration last week filed a case on chicken parts. there have been a number of world trade organizations filed by the administration. but it's really not doing what is necessary, which is talking to china in public about the manipulation, which chinese leaders say they are doing in order to help their exporters which means that hurts american workers. we need an administration in washington that defends americans and is not so concerned about the workers in china. jon: when it comes to that, i mean what i is reaction from

the chinese? >> the chinese understand that the united states isn't going to do anything meaningful on currency even though we can. last year 149.2% of surplus related to sales in the united states. that gives us enormous leverage that we are not using. when beijing sees we are not using our leverage they feel we are weak, that's why they are not doing anything. jon: yet your book is titled the 0 of coming collapse of china. >> we are seeing that the chinese economy is starting to contract. we see social disintegration with bro tests increasing substantially. and they are more violent. chinese leaders right now are very insure. jon: gordan chang, good to have you on. >> thank you. jenna: the pentagon right now is facing the possibility of a trillion dollars in cuts total. for more on the effect of this we are joined by george little, he's a pentagon press secretary, and george thinks the first time

that you're joining us today. we appreciate the time. >> great to be with you jenna. jenna: i just got breaking news and i'll see if that audio i think we've got a little audio issue there, hopefully we can fix it. should we continue, guys? i can hear it in my ear, maybe it's not coming off on air. all right. there is some breaking information coming to us from one of our capitol hill producers george. fox has octobered a series of memos from the house armed services committee. this is a quote from one of the letters. reductions of this magnitude, referring to the cuts impose ned this manner could pose a significant risk to national security. that's the letter going to panetta today. can you be specific to what some of these cuts would mean and how it would affect our national security. >> sure, jenna. the defense department understands that we have to do our fair share. we are in tough budget times in the country and we know we have to do what is right to keep our fiscal house in order. but we don't believe we have to choose between national security and fiscal security.

congress is working through a round of cuts right now. we think that initial round for us would be hard but manageable to do. if they don't reach an agreement by the end of the year we'd be facing devastating cuts for the defense department that would hurt american national security and break faith with our all volunteer force. jenna: i want to pick up on that a little bit. congressman mckeon is the chairman of the armed services committee. he had a conversation with us earlier this week about the volunteer force and potentially a draft. >> we also need to understand what it's going to mean to keep an all volunteer force. do we want to reinstitute the draft? some of the cuts we're talking about would take over 200,000 out of end strength of our -- jenna: miss spokeswoman went onto say that a volunteer force is expensive and the cuts would destroy our ability to retain forces. if we see these cuts is it a reality that we could actually

see a draft again? >> our focus right now is on maintaining the all volunteer force. we don't want to hit this second round of cuts which would be a meat axe attached to a chainsaw across the board cuts. that is slash and burn tactic. we share his concerns about cuts that go too deep. our focus is maintaining an all volunteer force. if we go to another round of cuts that is way too large. a trillion dollars or so over ten years we would have the smallest army and marine corps in decades. the smallest air force in its history and the smallest navy since world war i. jenna: you say if the financial situation is as it presents itself potentially a draft is a possibility >> i'm not going to talk about draft. our focus is on keeping faith with the all volunteer force we have. we believe that is a cherished american value and we want to preserve that all volunteer force. jenna: what cuts do you see as

something that should be done? where do you see that maybe bureaucratic lee can be eliminated to make the pentagon more fishing. >> there is waste in the pentagon that we have been looking at to cut. we are looking at efficiencies, and we are working through those. but when you're looking at this kind of level of cuts, everything has to be on the table. and we have to do it in a way that is strategy driven. we don't want to do this by the numbers. we want to make sure that we keep our military at the strongest in the world. this is the strongest military in history. we don't want to do anything that is going to adversely effect our coronation tphal interests. remember we've got terrorists to fight, we are fighting in afghanistan, we have cyber threats, iran, north corey at list goes on. we cannot afford to cut too deep to. jenna: george this is certainly something we'll continue to follow. apologize for some of the audio stuff earlier.

obviously it was on my end. thank you so much. we look forward to talking to you more about this in the future. >> thank you, appreciate it, jenna. jon: good points there. a millionaire accused of murdering his wife, his fate is now in the hands of the jury. they have to consider evidence like this. >> i just shot my wife. >> you just shot your wife? >> i shot my wife, yes, please. [inaudible] >> it was an accident. [ male announcer ] this is coach parker... whose non-stop day starts with back pain... and a choice. take advil no and maybe up to four in a day. or choose aleve and two pills for a day free of pain.

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no nonsense. just people sense. got the mirrors all adjusted? you can see everything ok? just stay off th freeways, all right? i don't want you going out on those yet. and leave your phone in your purse, i don't want you texting. >> daddy... ok! ok, here you go. >> thanks dad. >> and call me--but not while u're driving. we knew this day was coming. that's why we bought a subaru.

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 ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu. jon: in the hands of the jury, delib rakeses underway right now in the high profile murder trial of a millionaire real estate developer. bob ward is accused of shooting his wife to death two years ago. steve harrigan is keeping an eye on that trial live for us from orlando. >> reporter: during the past three hours from their deliberation room the jury has made one request, they want to get another look at that gun,

the 357 magnum that's been playing such a large role in this place. the prosecution alleges it's a hard gun to have go off accidentally. it requires 12 pounds of pressure on the trigger. they also claim that it was fired, the single shot that killed diane ward at least 18 inches away from her face, based on the powder burn marks on diane ward's face. the defense argues that the gun was fired in the middle of a struggle. >> the horse that the state is riding in this case is the 911 tape. we probably wouldn't be here today if it weren't for the 911 tape. mr. ward did not say, i just murdered my wife, i just killed my wife, i just shot my wife. >> reporter: the judge gave a half an hour's worth of instructions to the six-person jury. bob ward could be facing a maximum sentence of 16 years to life, that is if they give him second-degree murder. he could also facelesser charges of manslaughter, or not guilty.

jon back to you. jon: steve harrigan in orlando. thank you. jenna: a prescription drug short arpblg at hospitals across this country blamed for 15 deaths. how much worse could this problem get? have you even heard that this is happening? we have a live report with harris next. @=h

jenna: welcome back, everybody, this is a really important story that you might have not heard of yet. a prescription drug shortage is hitting hospitals across this country, and it's now blame for more than a dozen deaths. harris has the story from the breaking news desk. >> reporter: it's a story that we've been covering and now it is breaking wide open with the associated press reporting at least 15 people have died in the

past 15 months. those deaths being blamed on a severe shortage of drugs for chemotherapy, infections and other serious ailments. that's according to the ap. hospital pharmacists across the tphraeugs are calling it a crisis. a new survey coming out by the institute for safe medication practices with telling findings about. half of the nation's 549 hospitals took part in this over the summer. they say they brought drugs from so-called gray market vendors. some say they've even seen side effects and other problems with the drugs. with regard now to the 15 deaths reported by the ap, the cause in each case reportedly was either the right drug was not available, or errors were made in dozing or administering an alternative choice, another drug that they were able to get their hands on. there is some movement on the hill today on all of this in d.c. to tell you about, a hearing is set before the health subcommittee of the house energy

and commerce committee, that is later today. then on monday the food and drug administration is set to take this up. meanwhile reports of patients now waiting, some of them in pain while hospitals try to come up with enough of the necessary drugs to fight cancer, to treat them. of course we're going to watch all of this as the meetings happen on capitol hill to see what happens, jenna. jenna: an important story, harris. thank you very much. jon: fox news alert, as we've been telling you there is all kind of action going on on capitol hill right now as to funding the government. the government could potentially shut down at the end of the month once again we are looking at that possibility because of this vote on temporary stop-gap spending measures. we understand that the senate has accepted some elements of what the house voted to send over late yesterday. senate majority leader harry reid is keeping funding for

government operations but he is stripping out the offsets, the cuts that would have come with this funding, some of it paid for was going to pay for green vehicles, some of it would have paid for solyndra-type loan programs, those are the cuts that have been taken out of the senate bill. the senate we understand is going to vote on monday. harry reid needs 60 votes to pass it. mitch mcconnell the republican leader doesn't think he's going to get those votes. so the arguing and the high stakes poker goes on in the u.s. senate. also, look for some fireworks on the house tphr-r in the next 15 minutes or so coming up in between steny hoyer the democratic whip in the house and also eric cantor, the republican majority leader. jenna: on that you mentioned green energy. top executives of a solar energy company that burned through half a billion dollars in taxpayer loans, otherwise known as solyndra refusing to answer questions on capitol hill today. the pressure is building on the white house for how those loans were made.

jon, did you ever wonder why we are hard wired for yawning. jon: i yawn a lot. jenna: i know. i sit next to you. but it's not because it's boring, right this is the most exciting job you've ever had. jon: no, it is exciting. jenna: there is a reason why we yawn. it has nothing to do with being bored or not. we have the brain-chilling answer straight ahead. labored breathing ] [ coughing continues ] [ gasping ]

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jenna: now a little bit of a confession. i now know not to take jon scott's yawning personally, and this is why. [laughter] if you thought you were just fatigued, think again. turns out yawning is not a sign of being tired or bored. no, no, no. jon: i am not bored. jenna: tired? jon: i'm not tired either. jenna: it's your body's way of keeping your brain cool. people yawn twice as much in the winter, and scientists say that like a computer, your brain works better when it's cool, so yawning actually works as a kind of cooling fan for your brain. jon: let's tell the viewers what

you did during the break. jenna: i yawned. [laughter] i was channeling. my brake's very hot at the end of the show. got to keep things cool on set. jon: an update on that school bus-sized satellite that's supposed to be coming down to earth, probably about 12 hours away from this thing coming down. nasa says the odds of it actually hitting anybody one in, oh, 3200 or so. jenna: that's still pretty high odds. you want to play that? jon: your odds of winning the powerball jackpot, one in 195 million. jenna: stay safe out there, america. "america live" starts right now. megyn: welcome, everybody. fox news alert, new fallout today from a congressional hearing looking for answers on a green jobs debacle that cost the taxpayers half a billion dollars. hello, this is "america live,"