bright-eyed and bushy-tailed and happy to be with you. it has been roughly two weeks since the fbi raided a us the offices of solyndra after taking half a billion in lobes from you -- loans from you, the taxpayers, loans critics suggest were helped along by the white house, and there is no evidence of that today. also today two top solyndra ceos taking the stand, but instead of providing answers to a congressional hearing, big wigs essentially stonewalling the lawmakers on capitol hill. watch. >> i want to ask mr. harrison if he thinks the american people who have invested over half a billion dollars deserve to know what happened to that money. >> on the advice of my counsel, i invoke the privilege afforded to me by the fifth amendment of the constitution. >> on the advice of my could be, i in-- counsel, i invoke the privilege invoked by the fifth

amendment to the constitution. >> what is your plan to pay back the tax pairs, and when will you pay it back? >> on the advice of my counsel, i invoke the privilege afforded to me by the fifth amendment of the constitution. >> on the advice of counsel, i invoke the privilege -- >> would you be willing to provide to this committee communications between yourselves or your senior executives with members of the west wing of the white house? >> on the advice of my counsel, i invoke the privilege afforded to me by the fifth amendment of the united states constitution. >> on the advice of my counsel, i invoke the privilege afforded by the fifth amendment to the u.s. constitution. i respectfully decline to answer any questions. megyn: yeah. well, you get the picture. ed henry, our chief white house correspondent live on the north lawn. lawmakers hoped for a grilling, they were disappointed. >> reporter: that's right, megyn. a lot of republicans on the hill were frustrated with what amount today a solyndra stonewall. basically, the ceo and the cfo,

as you noted, had indicated previously that they would answer the committee's questions, but a couple days ago their attorneys sent a letter to the committee saying they were going to invoke the fifth. this comes one day after "the washington post" reported even more details about the wasteful spending at this company. once they got this loan from the obama administration, they were splurging on new conference rooms, all kinds of equipment that ended up not even getting unpacked because the company went bankrupt before they were even able to use some of this equipment that they had spent so much taxpayer money on. one top republican today saying that this is a modern day version of the great train robbery, and i can tell you that republican cliff stearns said he's frustrated at the lack of answers. take a listen. >> 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: now, another top republican, fred upton, said after this hearing which was pretty brief since the company officials took the fifth, they moved on, ended the hearing, and fred upton basically said afterwards he is not going to let this stop the committee investigation. they're still moving forward with questions as is the fbi and a justice department information after they -- investigation after they raided the company a couple weeks ago. megyn: and now what is the fallout for the white house and its role in this? because there are reports now that are getting more specific about the white house iluding a program director at the gao, government accountability office, saying this whole thing was alarming, the loan given by the energy department that were rushed through and saying the energy department senior staff saying that there was intense pressure from top obama administration officials to rush stimulus spending out the door. >> reporter: that has been the biggest fallout for the administration so far, is rushing stimulus money out the door, exactly as you put it.

but we should point out there has not been evidence, underline not been evidence of any political malfeasance. at the beginning of this, there had been questions raised, and they're still out there, about whether george kaiser who's raised money for this president, was a chief investor of this company, whether he got some political favor for this to go through. there has been no evidence from all the hundreds of pages of documents suggestinghere was political mall sans, but there are suggestion that is the administration was trying to rush money out in order to spend it, and i think the bigger fallout will be the fact that they're now pushing a bigger economic plan, and, obviously, a key part of the stimulus was the president's green jobs initiative, and that's you should fire as well -- under fire as well, megyn. megyn: thank you, sir. the administration said it had no idea about solyndra's fiscal troubles until right before the bankruptcy filing, but now we are hearing from a business writer and stock analyst who was reporting last march how this company was in serious trouble.

he'll join us in about 30 minutes on the warnings he says the white house ignored. and this is an election alert for you. governor rick perry is expected to speak any moment now to a meeting of national and state conservative leaders down in orlando, flori. the texas governor joining all of the republican candidates from last night's debate at today's event. the audience also includes the conservative grassroots activists who could play a key role in the race for the white house. keep an eye on that for you. and speaking of the debate, the folks who want to replace president obama in the white house may have all looked good and got in their talking points, but who scored the most points, and who missed the most opportunities? larry sabato is the director of the center for politics at the university of virginia. larry, thank you so much for being here. let me ask you that, who do you think -- start with missed opportunities. were there any? who missed them? >> oh, there are always missed

opportunities. i think probably rick perry would admit that he missed a number of opportunities last night to take back his answer on immigration. i think he would. he would certainly phrase it differently. he wouldn't suggest that those who have a critical view on american immigration policies are heartless. i don't think that helped him with the conservative base, and of after all, that's his base. that's why he shot to the top of the polls and has been leading mitt romney, although i think after last night, megyn, i think that debate mattered. i think his lead is a little shakier today, maybe a lot shakier than it was yesterday. megyn: you know, i can tell you having been on the site and having talked to political analysts all around the area, these are republicans who are at this thing, right? so this is the party faithful who are reacting, they -- many of them were pointing to this answer as a missed opportunity by governor perry, and as an overall sort of representative of how they wanted him to do

better but were disappointed. here's the sound bite that some pointed to. >> i think americans just don't know sometimes which mitt romney they're dealing with. is it the mitt romney that was on the side of against the second amendment before he was for the second amendment? was it before he was before these social programs, um, from the standpoint of he was far standing out for roe v. wade before he was against roe v. wade? he was for race to the top, he's for obamacare, and now he's against it. i mean, we'll wait until tomorrow and see which mitt romney we're really talking to tonight. >> governor romney? [applause] >> i'll use the same term again, nice try. megyn: what'd you headache of it -- make of it, larry? >> well, the best you can say is that governor perry appeared to be very tired. he was meandering town that

flip-flop -- down that flip floip highway, and he didn't quite get to the point he wants to make or he made them so indirectly, that you lost track of them along the way. that's not how you score in a debate. when you have to today off those one-liners that you want all the media to pick up day after day. well, they're picking this up to show that perry wasn't up to snuff. hey, megyn, look, experience matters. this is mitt romney's territory. he has been in high-profile, high-pressure debates sin he ran against -- since he ran against ted kennedy for the senate in massachusetts. he's had a lot more experience than rick perry has, and boy, does it show. megyn: he has, but do you think that the american voting public is going to care about smooth? you know, does that matter, or do they just believe in their hearts as the criticism has gone that romney's more of a moderate and has flip-flopped on some critical issues within the

republican party, and perry, they believe, is a conservative on most issues -- you know, there are questions about some -- and so he's their guy? how does that play out in response to what may have been a lackluster debate performance? >> megyn, that's it exactly. it's always wrong to take one event like this debate, as important as it seems today and as it seemed last night, and say, well, there's the election, it's all over. no, it's not all over. it's september. the voting in iowa doesn't start until sometime in january. the fact of the matter is mitt romney still has problemmed. he's still -- problems. he's still got romneycare to worry about, the comparison with obamacare. he's still got those flip-flops that are real even if rick perry couldn't express them well last night. perry has some strengths in this contest that still give him the catbird seat, but he's got to improve, megyn. that's what these debates are all about.

they show the activists who can really stand toe to toe with president obama in november. if perry gets better, i think he can go on to win the nomination. if he doesn't, if romney continues to outshine him in these kinds of encounters, then romney could end up being the nominee. megyn: larry sabato, thank you, sir. >> thank you, megyn. megyn: well, you've heard some takes, especially from the pundits, on last night's debate, but what do voters like you think? we have rounded up our own panel of folks, and they will tell us who they liked and didn't upcoming. rick perry did well last night? >> not at all. megyn: who do you think won the debate last night? >> mitt romney. >> herman cain. >> huntsman? really? megyn: next hour, this group will give us their take. we are about to get new reaction to a palestinian request for statehood.

the request in direct defiance of the united states and israel. israel's prime minister set to speak at the united nations in moments. and we will get reaction live right here from former u.s. ambassador to the united nations, john bolton. meantime, new concerns about this six-ton satellite which is heading straight towards earth. where will it hit? scientists may now have an answer, and it may not be good. we'll tell you. a mafia-like car explosion that injured a lawyer and his two young sons. what investigators are saying today. >> monroe county 911. >> okay, we have a mass accident. my car blew up with two kids. [ rge ] psst.

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megyn: fox news alert, new word now from nasa on a dead six-ton satellite hurtling towards the

earth. two hours ago nasa telling us that suddenly there was the remote possibility that debris could crash inside the united states. earlier the space agency said the possibility is slim, but nasa says it cannot be discounted, and we expect this thing to start coming down anytime now. hopefully, we'll make it through the show. [laughter] just ahead we'll go live to the johnson space center in houston where nasa is tracking the satellite's every unpredictable move. another alert now, this time about a terrific sense of anxiety over the world economy. the dow jones average is only down slightly right now, but that follows a two-day plunge that saw nearly 700 points or some 6% of blue chip stocks wiped out. down 20 points right now. that's the dow's worst two-day showing since the depths of the 2008 economic crisis. investors have been wracked by growing fears the economy's headed for another recession,

europe appears no closer to solving the debt crisis that threatens some of its biggest banks, and don't think for a moment we're not connected to that, and u.s. political leaders are in another standoff over spending that could force the government to shut down. joining me now, tobin smith, the founder and ceo of nbt equity group. tobin, it sounds terrible. put it in perspective. is it not that terrible? >> you know, the metaphor of the satellite crashing into the united states is sort of how people are feeling now. you know, the fear comes the federal reserve. you know, it's the federal reserve's job and the european central bank's job, they're supposed to be the bank of last resort, the people who can put money in, who can get the economy with cash. that's not been happening. megyn: they've been trying. >> they've been trying, they've been printing, but it hasn't gotten into the system. the banks got the quote-unquote bailout, but most of that cash has been put back to the federal reserve by deposit. and in europe the problem is that, you know, banks borrow

money short term and lend it out long term. that's basically their business. fortunately, european banks borrow a lot of money in the short term, and if people aren't willing to do it, china, many chinese banks stopped lending in the short term, if they're to stop, those banks are out of business, and the european central bank's job is to fix that, and they're not doing it. megyn: just to dumb it down for people like me who are business dummy, admittedly, the problems we're seeing over there in europe, they're talking about government meltdowns in greece and beyond in europe. >> sure. megyn: how much of an effect is that happening on what we're seeing here with not just our dow jones, not just our stock market, but our economy? the possibility of a double-dip recession? >> it is a part of it. 70% of our economy is the service industry, but what we export to europe is about, you know, 8-9% of our gdp -- megyn: and they're not buying. >> secondly, it's not greece. as you know, we always kid greece's economy is like rhode

island, right? but spain, italy, those are large economies, and that's where the risk is. they had 30 years of the euro allowed them to borrow money at a cheap rate. megyn: live and learn. >> the recning has hit, and the germans are the only ones who have money, and they don't want to share. megyn: what about these concerns that we are going back into recession officially? i know a lot of americans feel like we never got out of it. >> we track 26,000 companies throughout the united states, and in our research we've called every one of those recessions, so what i'm about to tell you is not just my feeling. the new research shows we have sort of rolled over on sales over the next 90 days, that's how we measure that, and if sales ahead over the next 90 days roll over -- megyn: what does that mean? >> that means they're going to be getting smaller -- megyn: going down. >> contracting. if our numbers are right, then we need something very big to boost us out of this next recession. megyn: like a stimulus? >> well, not a stimulus.

what we really need, frankly, is we have 15 million homes, you know, underwater, right? that could refinance be right now. megyn: can you refinance if you underwater? >> you can't, but the fed, fannie mae and freddie mac could allow you to do that. if we could get that refinancing going because, megyn, everything in the u.s. economy is tied to our housing prices. megyn: yeah. and that hasn't moved. >> that has not moved and that, you know, people talk about various things, don't make it any more complicated. if we could refinance those, get a big stem, remember, last year we were in the same sort of spot. we called it qe2, it was not an ocean liner. megyn: that was printing the money, putting it back into the economy, didn't work. >> exactly. that sort of staved off what the federal reserve did this week or last week is too small. they're out of bullets. megyn: wow. tobin, thank you. >> all right, megyn. megyn: appreciate it. we are tracking a developing story in chicago where federal agencies are investigating vandalism and reports of shots fired at the campaign office --

the campaign office -- of president obama. and just days before the president is scheduled to visit. we'll have an update upcoming. plus, brand new 911 calls from witnesses to a car bombing. two young children horribly burned. police are asking were they targeted because of their father's job? and the final arguments in the amanda knox appeals trial. the young american trying to overturn her murder conviction in italy. just ahead, the questionable evidence that's giving her family hope. >> well, you know, she, like us, she sees everything good, positive now that the truth is finally coming out, so that's good. today is going to be hard because, again, she has to listen to people say horrible, untrue things about her. we hope at the end it'll turn out correct, and two innocent people will go free. host: coulo really save you 15% or more on car insurance? host: do people use smartphones to do dumb things? man 1: send, that is the weekend.

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megyn: well, brand new 911 calls are just out in a car bombing attack that has left two young boys severely burned. for the first time we are hearing from eyewitnesses to the explosion on tuesday. flames totally engulfing a car on a michigan highway. trace gallagher live from our west coast newsroom with more. >> reporter: we could have test result on this bomb at anytime now giving us very important answers about what type of device this was and what this device was actually made of and actually how it was detonated, even more important, whether the bomb was inside or outside the car. the pieces of the bomb that blew up eric chapelle's car are being examined at a lab in washington d.c. chapelle, as you said, with his two young sons going to football practice when the bomb exploded, it was all caught on cell phone video when the car exploded.

chapelle called 911 as we have heard and we'll hear later on, but a nearby truck driver also called. listen to his call. >> reporter: now, aside from piecing that bomb together, investigators are also trying to figure out a motive here. eric chapelle is a business and family law attorney. police have spent a lot of time in recent days at his law firm trying to figure out if maybe a client or an opponent might have targeted him. they have also visited the home of a woman he represent inside a divorce case, but so far they have not given out any statement

at all about the motive, and we should mention finally, megyn, that chapelle and his two sons are recovering well, we're told, and they are now in good spirits. the investigation goes on. megyn: glad to hear that, trace, thank you. since we first brought you this story yesterday, we have heard a growing chorus of complaints about what people heard on those 911 calls. some folks outraged by the 911 dispatcher. listen to the operator's responses as this father desperately asks for someone to help his children. >> monroe county, 911. >> okay, we have a bad accident, my car blew up with two kids.

megyn: was that inappropriate? was it fine? coming up in cel hi's court, can this 911 dispatcher be held accountable for his response to this emergency? should he lose his job as some are suggesting? we'll take a fair and balanced look at it. plus, new questions from the investigation into what happened to a half billion dollars of the taxpayers' money. >> what is your plan to pay back the taxpayers $535 million you owe them, and when will you pay it back? megyn: a top financial expert on the warning flags missed and why you, the taxpayer, may never see a dime from the failed solar energy company. plus, the head-scratching plea from prosecutors in the amanda knox appeals case. that's in three minutes.

and a big facebook dislike, the fury over big changes to the web site, the more changes that could come and the fears about internet privacy upcoming. ♪ we're not gonna take it, no, we ain't gonna take it. ♪ we're not gonna take it anymore

megyn: fox news alert, new reaction now to an historic development at the united nations. just over an hour ago, palestinian president mahmoud abbas asking the united nations to officially recognize palestine as a state, the u.s. vowing to veto that request. the obama administration had tried to head it off altogether. as we speak, israeli prime minister benjamin netanyahu is addressing the general assembly. let's listen to that, then we'll get reaction from ambassador bolton. >> after all, it was here in 1975 that the age-old yearning of my people to restore our national life and our ancient biblical homeland, it was then that this was braided -- branded, rather, shamefully as racism. and it was here in 1980, right here, that the historic peace

agreement between israel and egypt wasn't praised, it was denounced. and it's here year after year that israel is unjustly singled out for condemnation, it's singled out for condemnation more often than all the nations of the world combined. twenty-one out of the twenty-seven general assembly resolutions condemn israel, the one true democracy in the middle east. this is an unfortunate part of the u.n. institution. it's the theater of the absurd. it doesn't only cast israel as the villain, it often casts real

villains in leading roles. quaffgy's -- gadhafi's libya chaired the human rights coup sill, saddam's rack headed the u.n. committee on disarmament. you might say that's the past. well, here's what's happening now. right now, today. hezbollah-controlled lebanon now presides over the u.n. security council. this means, in effect, that a terror organization presides over the body entrusted with guaranteeing the world's security. you couldn't make this thing up. so here in the u.n. automatic majorities can decide anything. they can decide that the sunsets in the west or rises in the west, i think the first has already been preordained. they can also decide, they have

decided that the western wall in be jerusalem, judaism's holiest place, is occupied palestinian territory. and yet even here in the general assembly the truth can sometimes break through. in 1984 when i was appointed israel's ambassador to the united nations, i visited the great rabbi. he said to me -- and, ladies and gentlemen, i don't want any of you to be offended because from personal experience of serving here, i know there are many honorable men and women, many capable and decent people serving their nations here, but here's what he said to me. he said to me, you'll be serving in a house of many lies. and then he said, remember that

even in the darkest place the light of a single candle can be seen far and wide. today i hope that the light of truth will shine, if only for a few minutes, in a hall that for too long has been a place of darkness for my country. so as israel's prime minister, i didn't come here to win applause. i came here to speak the truth. [applause] the truth is -- [applause] the truth is that israel wants peace. the truth is that i want peace. the truth is that in the middle east at all times, but especially during these turbulent days, peace must be anchored in security.

the truth is that we cannot achieve peace through u.n. resolutions, but only through direct negotiations between the parties. the truth is that so far the palestinians have refused to negotiate. the truth is that israel wants peace with the palestinian state, but the palestinians want a state without peace. and the truth is you shouldn't let that happen. ladies and gentlemen, when i first came here 27 years ago, the world was divided between east and west. since then the cold war ended, great civilizations have risen from centuries of slumber, hundreds of millions have been lifted out of poverty, countless more are poised to follow. and the remarkable thing is that so far this monumental historic

shift has largely occurred peacefully. yet a malignancy is now growing between east and west that threatens the peace of all. it seeks not to liberate, but to enslave; not to build, but to destroy. that malignancy is militant islam. it cloaks itself in the mantle of a great faith, yet it murdered jews, christians and muslims alike with unforgiving impartiality. on september 11th it killed thousands of americans, and it left the twin towers in smoldering ruins. of last night -- last night i laid a wreath on the 9/11 memorial. it was deeply moving.

but as i was going there one thing echoed in my mind, the outrageous words of the president of iran on this podium yesterday. he implied that 9/11 was an american conspiracy. some of you left this hall, all of you should have. [applause] since 9/11 militant islam has slaughtered countless other innocents. in london and madrid, in baghdad and mumbai, in be tel aviv and jerusalem, in every part of israel.

i believe that the greatest danger facing our world is that this fanaticism will arm itself with nuclear weapons, and this is precisely what iran is trying to do. can you imagine that man who ranted here yesterday, can you imagine him armed with nuclear weapons? the international community must stop iran before it's too late. if iran is not stopped, we will all face the specter of nuclear terrorismful -- terrorism, and the arab spring could soon become an iranian winter. that would be a tragedy. millions of arabs have taken to the streets to replace tyranny with liberty, and no one would benefit more than israel if those committed to freedom and peace would prevail. this is mier fervent -- this isy

fervent hope, but as the prime minister of israel, i cannot risk the future of the jewish state on wishful thinking. leaders must see reality as it is, not as it ought to be. we must do our best to shape the future, but we cannot wish away the dangers of the present. and the world around israel is definitely becoming more dangerous. militant islam has already taken over lebanon and gaza, it's determined to tear apart the peace treaties between israel and egypt and between israel and jordan. it's poisoned many arab minds against jews in israel, against america in the west. it opposes not the policies of israel, but the existence of israel. now, some argue that the spread of militant islam, especially in

these turbulent times, if you want to slow it down, they argue, israel must hurry to make concessions, to make territorial compromises. and this theory sounds simple. basically, it goes like this: leave the territory, and peace will be advanced. the moderates will be strengthened, the radicals will be kept at bay, and don't worry about the pesky details of how israel will actually defend itself. international troops will do the job. these people say to me constantly, just make a sweeping offer, and everything will work out. you know, there's only one problem with that theory. we've tried it, and it hasn't worked. in 2000 israel made a sweeping

peace offer that met virtual hi all of the pal -- virtually all of the palestinian demands. arafat rejected it. the palestinians then launched a terrorist attack that claimed a thousand israeli lives. prime minister olmert afterwards made an even more sweeping offer in 2008. president abbas didn't even respond to it. but israel did more than just make sweeping offers. we actually left territory. we withdrew from lebanon in 2000 and from every square inch of gaza in 2005. that didn't calm the islamic storm. the militant islamic storm that threatens us. it only brought the storm closer and made it stronger.

hezbollah and hamas fired thousands of rockets against our cities from the very territories we vacated. see, when israel left lebanon and gaza, the moderates didn't defeat the radicals, the moderates were devoured by the radicals. and i regret to say that international troops like lebanon and gaza didn't stop the radicals from attacking israel. we left gaza hoping for peace. we did freeze the settlements in gaza. we uprooted them. we did exactly what the theory says; get out, go back to the 1967 borders, dismantle the settlements. and i don't think people

remember how far we went to achieve this. we uprooted thousands of people from their homes. we pulled children out of, out of their schools and their kindergartens. we bulldozed synagogues. we even, we even moved loved ones from their graves. and then having cone all that -- done all that, we gave the keys of gaza to president abbas. now, the theory says it should all work out. and president abbas and the palestinian authority now could build the peaceful state in gaza. you can remember that the entire world applauded, they applauded our withdrawal as an act of great statemanship, as a bold

act of peace. but, ladies and gentlemen, we didn't get peace; we got war. of we got iran. which through its proxy, hamas, promptly kicked out the palestinian authority. the palestinian authority collapsed in a day, in one day. president abbas just said on this podium that the palestinians are armed only with their hopes and dreams. yep, hopes, dreams and 10,000 missiles and rockets supplied by iran, not to mention the river of lethal weapons now flowing into gaza from the sinai, from libya and from elsewhere. thousands of missiles have already rained down on our

cities. so you might understand that given all this, israelis rightly ask, what's to prevent this from happening again in the west bank? see, most of our major cities in the south of the country are within a few dozen kilometers there gaza. but in the center of the country opposite the west bank, our cities are a few hundred meters or at most a few kilometers away from the edge of the west banks. i want to ask you, would any of you, would any of you bring danger so close to your cities, to your families? would you act so recklessly with the lives of your citizens? israel is prepared to have palestinian state in the west

bank, but we're not prepared to have another gaza there. and that's why we need to have real security arrangements which the palestinians simply refuse to negotiate with us. israelis remember the bitter lessons of gaza. many of reel's critic -- israel's critics ignore them. they irresponsibly advise israel to go down this same perilous path again. you read what these people say, and it's as if nothing happened. just keep repeating the same advice, the same formula. as though none of this happened. and these critics continue to press israel to make far-reaching concessions without first assuring us reese eel -- israel's security. they praise those who unwittingly feed the insatiable crocodile of militant islam as

bold statesmen. they cast as enemies of peace those of us who insist that we must first erect a sturdy barrier to keep the crocodile out, or at the very least jab an iron bar between its gaping jaws. so in the face of the labels and the libels, israel must heed better advice. better a bad press than a good eulogy, and better still would be a fair press who recognizes israel's legitimate security concerns. i believe that in serious peace negotiations these needs and concerns can be properly addressed. but they will not be addressed without negotiations, and the needs of many.

because israel is such a tiny country. without judeo ya and sumeria, the west bank, israel is all of nine miles wide. i want to put it for you in perspective because you're all in this city, that's about two-thirds the length of manhattan. it's the distance between battery park and columbia university. and don't forget that the people who live in brooklyn and new jersey are considerably nicer than some of israel's neighbors. so how do you, how do you protect such a tiny country? surrounded by people sworn to its direction and armed to the teeth by iran? obviously, you can't defend it from within that narrow space alone. israel needs greater strategic depth, and that's exactly why security council resolution 242 didn't require israel to leave all the territories it captured

in the six-day war. it talks about withdrawal from territories to secure indefensible boundaries. and to defend itself, israel must, therefore, maintain a long-term israeli military presence in critical strategic areas in the west bank. i explained this to president abbas. he answered that if a palestinian state was to be a sovereign country, it could never accept such arrangements. why not? america's had troops in japan, germany and south korea for more than half a century. britain has had an air space in cypress, or rather an air base in cypress. france has forced in many three independent african nations. none of these states claim that they're not sovereign countries.

and there are many other vital security issues that also must be addressed. take the issue of air space. again, israel's small dimensions create huge security problems. america can be crossed by jet airplane in six hours. to fly across israel it takes three minutes. so is israel's tiny air space to be chopped in half and given to a palestinian state not at peace with israel? our major international airport is a few kilometers away from the west bank. without peace will our planes become targets for anti-aircraft missiles place inside the adjacent palestinian state? and how will we stop the smuggling into the we've bank --

it's not merely the west bank, it's the west bank mountains, just dominates the coastal plain where most of israel's population sits below. how could we prevent the smuggling into these mountains of those missiles that could be fired on our cities? i bring up these problems because they're not seen as radical problems, they're very real. and for israelis, they're life and death matters. all the potential cracks in israel's security have to be healed in a peace agreement before a palestinian state is declared, not afterwards. because if you leave it afterwards, they won't be sealed. and these problems will explode in our face and explode the peace. the palestinians should, first, make peace with israel and then get their stake.

but i also want to tell you this: after such a peace agreement is signed, israel will not be the last country to welcome a palestinian state as a new member of the united nations. we will be the first. [applause] and there's one more thing. hamas has been violating international law by holding our soldier captured for five years. they haven't given him even one red cross visit. he's held in a dungeon in darkness against all international norms. he's the son of shalid who

escaped the holocaust in the 1930s as a boy to the land of israel. shalid is the son of every israeli family. every nation represented here should demand his immediate release. if you want to -- [applause] if you want to pass a resolution about the middle east today, that's the resolution you should pass. [applause] ladies and gentlemen, last year in israel in university, this year in the u.s. congress i laid

out my vision for peace in which a demilitarized palestinian state recognizes the jewish state. yes, the jewish state. after all, this is the body that recognized the jewish state 64 years ago. now, don't you think it's about time the palestinians did the same? the jewish state of israel will always protect the rights of all its minorities, including the more than one million arab citizens of israel. i wish i could say the same thing about a future palestinian state. for as palestinian officials made clear the other day -- in fact, i think they made it right here in new york -- they said the palestinian state won't allow any jews in it. they'll be jew-free.

that's ethnic cleansing. there are laws today in ramallah that make the selling of land to jews punishable by death. that's racism. and you know which laws this evokes. israel has no intention whatsoever to change the democratic character of our state. we just don't want the palestinians to try to change the jewish character of our state. we want to give up -- [applause] >> we want them to give up the fantasy of flooding israel with

millions of palestinians. president abbas just stood here an said the core of israeli-palestinian conflict is the settlements. well, that's odd. our conflict has been raging for nearly half a century before there was a single israeli settlement in the west bank. so if what president abbas is saying was true, then i guess the settlements he's talking about are tel aviv, haitha ... maybe that's what he meant when he said israel has been occupying palestinian land for 63 years. he didn't say from 1967. he said from 1948. i hope somebody will bother to ask him this question.

because it illustrates a simple truth, the core of the conflict is not the settlements. the settlements are a result of the conflict. [applause] >> the settlements is an issue that has to be adressed and resolved in the -- addressed and resolved in the course another of negotiations. the coast conflict is the refusal of the palestinians to recognize a jewish state in any border. i think it's time that the palestinian leadership recognizes what every serious international leader has recognized from 1917 to president trueman in 1948 to president obama just two days ago right here. israel is the jewish state. [applause]

president abbas stop walking around this issue. recognize the jewish states and make peace with us. in such a genuine peace israel is repaired to make painful compromises. we believe the palestinians should be neither the citizens of israel nor its subjects. they should live in a free state of their own. but they should be ready for compromise. and we'll know that they are ready for compromise and for peace when they start taking israel's security requirements seriously. and when they stop denying our historical connection to our ancient homeland. i often hear them accuse israel of judahizing jerusalem. that's like accusing mayor calf

americanizing washington. you know why we are called jews? because we come from je come fr. in my office there is a signet ring of a jewish official from the time of the bible. the steel was found next to the western wall. it dates back 2,700 years. there is the name of the jewish official inscribed on the ring in hebrew. his name was netanyahu. that's my first name. my first name benjamin dates back a thousand years earlier to the son of jacob who was also known as israel. jacob and his 12 sons roamed these same hills of judea and

sumaris. and there has been a jewish presence in the land ever since. for those jews who were exiled from our lands. they never stopped dreaming of coming back. jews in the ukraine fleeing. jews fighting the warsaw ge gheo as the nazis were circling. they never stopped praying. they whistle%, next year in jerusalem, next year in the promised lands. as the prime minister of israel i speak to 100 generations of jews who were dispersed throughout the land, who sfered every evil under the sun. but who never gave up hope of

restoring their national life to the one and only jewish state. ladies and gentlemen i continue to hope that president abbas will be my partner in peace. i worked hard to advance that peace. the day i came into office, i called for direct negotiations without preconditions. president aas didn't respond. i outlined a vision of peace, two states for two peoples. he still didn't respond. i removed hundreds of roadblocks and checkpoints to ease freedom of movement in the palestinian areas. this facilitated a fantastic growth in the palestinian community. but again no response. i took the unprecedented step of

freezing you are in building in the settlements for 10 months. no prime minister did that before ever. once again, there was no response. no response. in the last few weeks american officials have put forward ideas to restart peace talks. there were things in those ideas about borders that i didn't like. there were things there about the jewish state that i'm sure the palestinians didn't like. but with all my reservations, i was willing to move forward on these american ideas. president abbas, why don't you join me? we have to stop negotiating about the negotiations. let's just get on with it. let's negotiate peace.

[applause] i spent years defending israel on the battlefield. i spent decades defending israel in the court of public opinion. president abbas, you have dedicated your life to advancing the palestinian cause. must this conflict continue for generations? or will we enable our children and grandchildren to speak in years ahead of how we found a way to end it? that's what we should aim for. that's what i believe we can achieve. in 2 1/2 years we met in jerusalem only once. even though my door has always been open to you.

if you wish i'll come to ramallah. i have a better suggestion. we both have flown thousands of miles to new york. now we are in the same city. we are in the same building. so let many meet here today in the united nations. [applause] who is there to stop us? what is there to stop us? if we generally want peace, what is there to stop us from meeting today and beginning peace negotiations? i suggest we talk openly and honestly. let's listen to one another. let's do as we say in the middle east. let's talk straightforward.

i'll tell you my needs and concerns. you will tell me yours. and with god's help, we'll find the common ground of peace. [applause] >> there is an old arab saying that you cannot applaud with one hand. well, the same is true of peace. i cannot make peace alone. i cannot make peace without you. president abbas, i extend my hand, the hand of israel in peace. i hope that you will grasp that hand. we are both the sons of abraham. my people call him abraham. your people call him ibrahim. our defendant any are

intertwined. let us realize the vision of isaiah. [speaking hebrew] >> the people who walk in darkness will see a great light. let that light be the light of peace. [applause] megyn: there you have it. about 40 minutes of the benjamin netanyahu with some powerful remarks. everything from responding to president mahmoud abbas' statement urging the i will reallies to come to peace. and netanyahu warning of the dangers of militant islam and what it could do if it moves in greater degrees into the middle east. joining me is the former u.s. ambassador to the united

nations. ambassador john bolton. what do you think was the headline out of that response? >> i think prime minister netanyahu made it clear he's willing to negotiate without precondition and the only foundation for lasting peace is agreement among the parties. if the parties don't agree it's hard to see how they will live together over the long term. it was a strong rebuttal to the idea of mahmoud abbas and the palestinians seeking to have the u.n. determine the outcome by following through on the palestinian application for u.n. membership. megyn: how did we get to this point where we have this war of words showdown between these two leaders about whether palestine should be given statehood by the u.n.? >> i don't want to get into a partisan discussion. but this is a failure of leadership by the united states. the president foreshadows exactly where we were going last

year when he said he would welcome a principle state being admitted to the united nations. he shouldn't have said that. the palestinians took the wrong message from that. and they have been saying for months and months they were going to make this application. we could have stopped it clearly. megyn: we tried to stop it this week. >> what was done the past week or two weeks was too little too late. this is a lose-lose situation. our president is committed to veto this application. the palestinians will lose. the israelis will lose because of the outrage that will be generated. the united nations will lose. megyn: i want to ask you how you think he feels now about the united states and the way we handled this diplomatic situation. netanyahu was saying israel remembers the bitter lessons of gaza. he says our critics seem to want to us keep repeating the same

mistakes. here is a bit of what he said. >> israelis remember the bitter lessons of gaza. many of israel's critics ignore them. they irresponsiblably advise israel to go down this same perilous path again. megyn: who is he talking about there? >> he's talking about the obama administration. american policy since the 1967 war has been based on resolution 242, land for peace. israel will give up the land it's occupied in exchange for secure and defensible bordersers and a responsible stake in what's left. the argument that you declare a state and borders and don't care about security mean this conflict will just go on. that's the point netanyahu is trying to make.

he wants to end the conflicts. not make political theater. megyn: right after this break, senator rick santorum joins me live. n isn't some political game. [ man ] our retirement isn't a simple budget line item. [ man ] i worked hard. i paid into my medicare. [ man ] and i earned my social security. [ woman ] now, instead of cutting waste and loopholes, washington wants to cut our benefits? that wasn't the agreement. [ male announcer ] join the members of aarp and tell washington to stop cuts to our medicare and social security benefits. 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. way to go, coach. ♪

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megyn: fox news alert. republican candidates picking up where they left off after last night's fox news debate in orlando, florida co-sponsored by google. 8 men and one woman vying for the nomination. rick santorum just wrapped up his remarks and he joins me now. thanks so much for become here with me. let me ask you about a "washington post" headline. orlando gop debate, a strong night for santorum as perry fades. then they go on to write the big winner of the night was rick santorum. in bachmann fades and perry

cannot perform santorum can claw his way into a two-man race with romney. >> that's been the game plan from the beginning to go out there, work hard and let people know our record, let them know we have been a strong, consistent conservative across the board. if we win a republican wiwie the president of the united states. so we have a good message and the right messenger and people are beginning to hear that. megyn: let me ask you about a moment you and i had at the debate. we did this debate in conjunction with google and youtube. online this is getting a lot of attention. this video question from a gay soldier. i want to ask you not so much about your answer because you and i did that back and forth last night. people are criticizing the audience for their reaction when they heard this video question. let's play the video question.

>> i had to lie about who i was because i'm a gay soldier and i didn't want to lose my job. my question is under four presidency do you plan to circumvent the rule trs for the gaze and lesbians in the military? megyn: there were a boos in the audience. some people are criticizing you for not responding to it and for republicans booing a gay soldier. >> i con deputy the people who booed that gay soldier. he's serving our country. i thank him for his service. i hope he's safe and returns safely and does this mission well. i have to admit i did not hear those boos. had i heard them i would have commented on them. but when push in that environment you are -- when you are in that environment you are

focused on your answer. i didn't hear those couple boos, but had i would have said don't do that. this man is serving our country and we need to thank him for his service. megyn: i was in the auditorium. to me it wasn't clear to me if they were booing the soldier or the policy they did not support. i also want to ask you about this. this is making big headlines and people are giving you kudos for this exchange with rick perry. it was one of many you had. you ande are tieg up quite a bit and let's watch this. >> i supported arizona's immigration law by joining in that lawsuit to defend it. every day i have texans on that border doing their job. but if you say we should not educate children who have come into our state for no other reason than they have been brought there by no fault of

their own, i don't think you have a heart. >> governor perry, no one is suggesting up here that the students -- that are legal in this country shouldn't be able to go to a college and university. you are making this leap that unless we subsidize this, the taxpayers subsidize this they won't be able to go. most folks who want to go to the state of texas or any other state out of state have to pay the full boat. not that they can't go. they can go. they just have to borrow money and find other sources to be able to go. megyn: i don't want to relitigate that one either. he has yet to answer that specifically. but i want to ask you if this is a strategy of yours to elevate yourself on the platform and as a result potentially in the polls. >> well, as you know, you don't get a chance to weigh in on every issue. when you have an opportunity to

weigh in when there are differences between the candidates. you take advantage of that opportunity and draw a distinction. whoever survives this process is going to have to go up against a pretty tough machine in barack obama and the mainstream media. if you can't take the heat from us, imagine if you are on a big stage with folks who are really after you. i think it's good that we have this back and forth on policy, not on personalities. not on things that have nothing to do with policy. but there are real policy differences between me and rick perry on the issue of the bored and on the issue of benefits for people here illegally. i'm going to points it out. i'll point out the differences between mitt romney and me on healthcare and a whole host of other issues. megyn: what did you think of the debate? >> i thought it was great. a little slow start. i like it when you give the

candidates a chance to mix it up and asking more than the same issues, subjects of more than one candidate it allows more fun for the candidates and the audience. megyn: we'll take that into consideration in the next go-round. thanks so much for coming on. we have breaking news next on this 6-ton satellite barreling towards earth. we'll go live to nasa for a new round of predictions and where this will fall in the coming hours. they were driving count interstate when their car explode. seconds after the blast a father calls 911 to report two sons were seriously hurt. [ male announcer ] in blind taste tests, even ragu uss chose prego.

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6-ton satellite. when it breaks up sometime

between late tonight and early tomorrow morning it many expected to break up into 26 different chunks of titanium and steel. but the largest chunk some 300 pounds. but don't worry fox fans becse the poppability of something hitting megyn kelly is one in 21 trillion. we expect you to be live on the air monday morning. megyn: trace was saying 1 in 3,000. i feel much better. over the last 90 minutes we heard the analysts and even one candidate speak to the issues that came up in last night's republican debate. but the important opinions belong to the voters. >> do you think these candidates are not giving straightforward answers? >> i think huntsman was specific in some of his answers. but in general there was a lot of the same rhetoric we hear

every four years. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. [ woman ] my heart medication isn't some political game. [ man ] our retirement isn't a simple budget line item. [ man ] i worked hard. i paid into my medicare. [ man ] and i earned my social security. [ woman ] now, instead of cutting waste and loopholes, washington wants to cut our benefits? that wasn't the agreement. [ male announcer ] join the members of aarp and tell washington to stop cuts to our medicare and social security benefits.

megyn: over the last 90 minutes we heard the political analysts and the candidates speak to the issues that came up in last night's republican debate. but the most important opinions belong to the voters. a panel of potential voters from all stripes, left, right and in the middle who watched last

night's debate. panel, thank you for being here. i want to get through aouple of clip to the get your reaction. one of the main clips getting media reaction is this exchange between senator santorum and rick perry over the question of rick perry's policies with respect to children of illegal immigrant getting in-state you anything texas. >> i supported arizona's immigration law by joining in that lawsuit to defend it. every day i have texans on that border doing their job. but if you say we should not educate children who have come into our state for no other reason than they have been brought there by no fault of their own, i don't think you have a heart. >> governor perry, no one is suggesting up here that the students -- the students that are legal in this country shouldn't be able to go to a college and university. you are making this leap that

unless we subsidize this, the taxpayers subsidize it, they won't be able to go. most folks who wants to go to the state of texas or any other state, out of state, have to pay the full boat. why are we subsidizes. it's not that they can't go. but they have to borrow money and finding other sources to be able to go. >> that was when he was really shining when he was coming up against the big dogs. when he was coming up mostly against rick perry. i also think it was one of the worst moments for rick perry because that's a big issue for him, and everybody there seemed to be pretty upset thinking like mitt romney said, this is a ridiculous idea. megyn: what do you think about governor perry's remark that you have no heart if you can't get behind this?

michelle, you are a college student. >> i think it's interesting that he said you don't have a heart. when santorum comenltsd he didn't say they can't attends the schools. they said they should be paying the same you advertise as -- he said they should be paying the same amount as anybody else. and immigrants should be no exception. megyn: did you think governor perry should have responded to that specific point? you are brook goldstein, human rights attorney in. >> perry was playing a zero sum game. this bill is an achilles heel. perry was the punching bag of this entire debate because of this issue. one thing you can't challenge him on, however is border security. the fence issue he was strong on. if he says boots on the ground, i'm going to trust him on that. he has experience. megyn: raise your hands if you think rick perry did well last

night. not one person. everybody at once. who do you think won the debate. >> mitt romney. herman cain. huntsman. really? why do you like huntsman so much? >> i thought communityman is a knowledgeable -- i thought huntsman is a knowledge knowledge be guy on the issues. i found him to be educated and sensible. megyn: you are a republican -- >> i'm unregistered. megyn: a lot of moderates like john huntsman. let me move on to the next clip from someone who is very conservative. michele bachmann. i asked her a question that didn't get fully answered in the last debate. tell me whether you think she answered it in this debate. after the last debate a young member of the california tea party said he didn't feel he had

his question fully answers, the question that received the most votes on google and youtube. the answer to this question is a number. and the question was, quote, out of every dollar i earn, how much do you think that i deserve to keep. >> after the debate i talked to that young man and said i wish could have answered that question because i want to tell you what my answer is. i think you earned every dollar, you should get to keep every dollar that you earn. that's your money. that's not the government's money. obviously we have to give money back to the government so we can run the government. but we have to have a completely different mindset and that is the american people are the genius of this economy. it certainly isn't government that's the genius. megyn: rob, what did you think. >> she did not answer your question. megyn: how did it make you feel?

>> annoyed. megyn: do you think the candidates are not giving straightforward answers? >> huntsman was specific in some of his answers but in general there was a lot of the same rhetoric we hear every four years. i think that's contribute together overall cynicism in this process. megyn: june, what did you think of her answer? >> i don't think she gave an answer. i absolutely agree. i think it's a good question. how much of my dollar -- megyn: she said you get to keep owl of it, but then not all of it. >> she looked a little scared when you were asking the question. she didn't want that. but there is -- there has to be an answer. there has to be -- do you get to keep 50 cents, somebody somewhere smart is going to do that math. megyn: overall do you think the candidates answered the questions asked last night or do you think they dodged --

>> first all i think that's one of the problems. i think no one speaks to the answer. we are tired of political speak. that's why huntsman i didn't feel was good because he's an ambassador. they are used to putting a spin on it. they are not saying the truth. they are not waying what they want to say. the problem with herman cain is his p.r. people have to step away from the i today thing. megyn: it's like they have less to lose. let me ask you business this next clip. we asked the candidates about recent reports that more and more on left and right talking about america lose be its mojo. we are having a period of malaise. here was newt gingrich's response. >> 32 years ago we were in the

same place. we had a failing president. he gave a speech on malaise. people wrote about the presidency being toooo big, noby could do it, and the soviet union was in offense. then a leader came along. of said when your brother-in-law is unemployment's a recession. when you are unemployed it's a depression. when jimmy carter is unemployed, it's a recovery. nothing will turn things around more than on election night when barack obama loses decisively. megyn: what did you think of that. >> you can always count on newt gingrich to giver the historical perspective. if he runs against jimmy carter i think he can win. megyn: when you watch that, how does it make you feel?

>> i really -- i can't really relate to that. megyn: why? >> i recently graduated. i'm not working in the field i want to work in. i'm not getting what response from jobs. megyn: do you think that as a reaction in the auditorium was powerful. people loved it. i don't know -- you three in the back are not right-leaning forks. how did you feel in response to it? >> it was a dis of the democrats. >> don't start any sentence with 32 years ago. megyn: it didn't resonate with you because it didn't speak to you. >> he's not modern enough. he's old school.

he's a caricature of the old-boy politics. megyn: do you think someone is emerging as a front runner. >> i went into it hoping rick perry would do well. i didn't want to like mitt romney. that's a strange name for a president. mitt. >> i think michele bachmann lost a lot of her fans. a lot. megyn: she is done, you think? >> i think last night's debate was a good example of why representatives from the house don't become president. they are focused on a smaller constituency and don't have the crossover appeal. >> i learn republicans have a nse of humor. there were a lot off jokes flying back and forth. the joke about the dog was great. mitt romney's response was

funny. megyn: the gary johnson line was a rip-off from rush limbaugh. we appreciate your insights on this. they were driving count interstate when their correspond exploded. seconds after the blast the father calls 911 to report his two sons were seriously injured. but a lack of compassion lands that dispatcher in today's "kelly's court." just one phillips' colon health probiotic cap a day helps defends against occasional constipation, diarrhea,

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megyn: "kelly's court" is back in session. the emails from you are pouring in. on the docket today, a lack of compassion after a car bomb nearly killed 3 people. this was the scene 30 miles outside of detroit.

an attorney on the road with his two sons when their vehicle explodes. he made frantic calls to 911 pleading for help as his sons were bleeding the street. megyn: critics rinsing to that

recording saying the 911 operator sounded detached and even rude. some online are calling for him to be fired. his boss is coming out to defend him saying this man followed protocol. former prosecutor jonna spilbor and lis weihl. this created quite a stir. our viewers -- i'm amazed at the viewer feedback we have gotten. what is the beef? is it the see you when he first starts it, or is it the general tone? >> all after it, megyn. the fact there was was absolutely no compassion. this i -- this is not someone selling you a pair of shoes. this is someone on the other side of life and death. imagine the far it who was so detailed about exactly what was going on. trying to protect his son.

wanted some compassion and reassurance they were doing what they should be doing. this 9/11 operator responds like whatever. we'll get there when we can. that's absolutely incredible. megyn: i'm amazed at the number of first responders and former 9/11 operates who have written in. here is an example. been an emt work as a first responder for years. this dispatcher was not professional and speaking to the life flight issue, most dispatchers would have had life flight on standby in all traumatic cases and he could have told mr. chappell that life flight was standing by. he has an issue with the tone and the substance. >> i'm surprised by that. i'm going to come to the defense of this 9/11 operator.

i think they have to deal with frantic people constantly 7 days a week. we get that. his job is to get help there. his job isn't to handle -- i know you might argue with me. but in a case like this where this was the second call. he already dispatched the authorities to the scene. what more was this guy supposed to do. i don't think we should complain about the manner in which he did his job as long as he got help there. megyn: here is another email we got. julie says she has 23 years of person as a 9/11 operator supervisor and manager. it's not his job to send a helicopter. can you imagine the outrage of the taxpayers if he sent a helicopter. it's not his call to make. >> he could have given some reassurance and compassion. can you imagine if this was someone about to commit suicide and called this 9/11 operator?

megyn: he said they were on their way. >> it's not enough. there has to be some element of giving that man reassurance. help is on the way. we are going to take care of you. i'm on it. megyn: we played those tapes on this show. they are wonderful at keeping calm and providing a level of reassurance to a person in the middle of crisis' on this call it was like the father was doing the work of keeping himself composed and he had a 9/11 operator that sounds like he couldn't be bothered. well, nine, whatever ... and the father is do youake the determination about life flight in no, we do not. all right. >> if i'm on an operating table i don't want to hear the doctor go, oh, my god when he opens up my head.

let's give this 9/11 operator a little credit as long as he didn't send him to the wrong address which could have been deadly. what he did might have been rude or discompassionate. megyn: his boss says he was 10 hours into a 12-hour shift. >> so get more people or don't have such a long shift. the boss also said this isn't even worth an internal review. they are not going review this? megyn: ladies, thank you. one final word for our viewers. he did this job and followed protocol. did he do it with compassion? no. should he be fired? no. h

megyn: a new mind-blowing report

on government waste. uncle sam paid out your tax dollars to former federal employees who are dead. that's on average $100 million a year the past five years over improper benefit payments. how did that happen? >> reporter: it's actually this report says that the federal government though it has made some changes in recent years in how it keeps track of benefits to aging retired federal workers is not doing enough to stop these checks from going out to people who have died. the office of personnel management says it's time to stop once and for all this waste of taxpayer money. they have done a better job according to the inspector general to comparing its list to social security death records and communicating with families to make sure the recipient is

still alive. give says it's not enough. a son continued to receive benefits for 37 years after his father's death. it exceeded $515,000. the improper payment was not recovered. this does not come as a surprise to republican information tom coburn. his office investigated government payments to dead people and found $1 billion taxpayers dollars had gone out to the doors to deceased since 2000. he said sending federal funds to dead people is a result of congress being more interested in spending new money instead of creating oversight over programs we already created. the inspector general says there is a high probability this loss of taxpayer dollars will

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>>megyn: do you feel tired? debate. early morning flight. a few hours asleep. and made it back in time to be with you. thank you for watching "america like." have a wonderful weekend, "studio b" with my friend, trace for shepard starts right now. >>trace: great job open the debate last night, here for shephard smith, this is "studio b" and, book one, the giant space bus of doom? now getting closer to earth, and, new we hear this could hit north america after all. we're live at the johnson space