news for you. martha: i know, i said i would not report the blackberry service return story until it actually happened to me and i can report it's happened. bill: means we have to work again. martha: goodbye, everybody! jenna: we start with this fox news alert out of connecticut today where we are awaiting a verdict in the home invasion and murder trial of the man you see on your screen, joshua komisarjesky. the jury just starting its second day of deliberations. it took jurors less than five hours to convict the other man charged in this horrific case we've talked so much about, stephen hayes was his name, he is now on death row. komisarjesky could also face the death penalty if convicted on capital murder charges. dr. william pettitte is sole survivor of this brutal attack back in 2007, his wife jennifer and daughters hay lee and mckaila were murdered. we'll bring you the verdict as soon as we get it, we expect it to happen at any moment. we'll begin with more breaking news, everybody,

we're glad you're with us today, we start with the deadliest shooting in orange county history, shattering a quiet southern california beach town. gregg: this is horrific. i'm gregg jarrett in for jon scott. we're here in the fox newsroom and "happening now", seal beach, california, witnesses say a gunman, apparently enraged over a custody battle, walked quietly into a beauty salon where his ex-wife worked, pulled out guns, and opened fire. now eight people are dead. jenna: police arresting the suspect about half a mile from the scene. take a listen to their reaction: >> it's really unbelievable. quite frankly. it's just something unfathomable for many of us, probably all of us in this community, and i think we're all -- our community is in shock, as well as the police department as well. jenna: casey stegall is live from seal beach with more. casey. >> reporter: yeah, and jenna, what makes this so terrifying is that it literally could have happened anywhere, because as you drive into this little shopping complex, it looks like one you would

find in any town, in any city across the country. eyewitnesses report hearing at least 20 gunshots, coming from inside the hair salon, right back here behind me, in the middle of broad daylight. in fact, it was just before 1:30 in the afternoon, colorado time, 3:30 eastern, and it's those same eyewitnesses who tell police that the accused gunman, 42-year-old scott dekraii, was the estranged husband of one of the salon workers, and involved in a longstanding custody dispute. eight people died, six women and two men. it is still not clear if the suspect's ex-wife is among the dead. so -- though some of the local news stations here in los angeles are reporting that she is. fox news has not been able to confirm that with police on the ground. reaction from this tight knit community is pouring in >> i think i lost some friends in there.

>> i'm in shock right now, because one of my friends, i've known her for 25 years. she's a wonderful person. that whole salon had this wonderful spirit in there. wonderful spirit. it's a tragedy. it's a terrible tragedy for all of them and all of us, and all of us in seal beach. >> reporter: now, a short time after the shooting, police are arresting scott dekraii, not far from the scene, heading to a residential area in huntington beach, which is just next door. police say he was wearing body armour, he had magazines in his pockets, and the weapons were recovered from his truck, though it is not clear at this point if the murder weapon was, in fact, one of the ones that was confiscated from his vehicle. his home, we understand, now being searched by investigators. again, this is now being deemed the worst shooting in all of orange county history. salon meritage back here behind me has been in business for some 20 years, in this quiet, quaint

coastal community. jenna. jenna: casey stegall on that breaking story out of california for us today, casey, thank you very much. gregg: right now federal investigators looking into a crash involving two passenger trains in oakland, california. rick is here with the details. >> reporter: this happened around 10:00 last night, two passenger trains colliding at the tam track station in oakland, california, a spokesman for amtrak says it was a slow speed crash, but there was still around 18 people who were hurt. here's one of them: >> the train had just come to a stop, like it just crashed, so we fell, i ran into the barge, a guy in the wheelchair fell over and bumped his head, bleeding from his head and it was crazy. >> reporter: luckily none of the injuries are life threatening, the most serious being a breaking arm, the amtrak and union pacific railroad which owns the tracks, working with federal officials to investigate exactly why this happened. the train station where this collision took place, by the way, gregg, is still closed, so bus service has been set

up for the morning commute, which is still in full swing out on the west coast. back to you. gregg: sure is. rick, thank you very much. jenna. jenna: turning to politics now, a brand new poll showing herman cain surging to the top, leading the republican field of presidential candidates. that's not all the polls show, though. we certainly have seen different candidates take that top spot. mitt romney, though, has been holding steady. one of the questions we're asking today, will slow and steady win the race? have you heard that before? steve cnn tani has more. >> reporter: according to democratic pollster peter hart, along with bill mcenterf, the thing that's remarkable about cain's sudden rise is how quickly he came to single -- from single digits to leader of the pack. he says it's a dramatic move

but now it puts cain under new scrutiny. here's how the new poll stacks up, her main her main cain -- herman cain, on top, romney has 23 percent, but it's close considering the margin of error is five percentage points, romney retains the same percentage from august but cain has surged ahead from 5 percent in august. texas governor rick perry is third with 16 percent and texas congressman ron paul has 11 and the other candidates are in single digits. cain is the former godfather's pizza executive and has put in solid debate performances recently so he's caught peoples' attention, especially with the 999 economic plan, but that plan has also come under fire from critics and pollster hart says it will now be much more carefully dissected, but this race has seen shakeups before and could see others. at one point, michele bachmann was ahead, later, it was rick perry. so there's a question about whether cain will maintain

this lead. this also tells us a lot about how republicans view mitt romney, the former frontrunner. hart says about 90 percent of the voters know him, most of them respect him, but they're not passionate about him, and he says they're still looking for someone they can, quote, fall in love with. as usual in politics, anything can happen between now and the time the first votes are cast, jenna. jenna: a good reminder. steve centanni, thank you. >> you bet. gregg: president obama and the dnc, really raking in the cash these days. reelection fund-raisers, bringing in $70 million between july and september, and that by the way is only the president's second biggest quarter. in fact he raised # 6 million in the months before. but in recent interviews, president obama called himself the underdog of the 2012 race. it's a strategy he says has worked well in 2008. >> they need to feel a sense of urgency about this. which brings me back to what we did in 2008.

you knower we surprised a lot of people. and yes, i had less gray hair. [laughter] >> and i know it was exciting to, you know, be for the underdog. gregg: cries stierwalt is digital politics editor. what about this? he loves to characterize himself these days as the underdog but look, an incumbent president running for reelection has all kinds of inherent advantages, name identification, familiarity, the ability to raise money, and of course, the constant media attention he can command. so in truth, isn't he more like a frontrunner? >> well sure. he's the favorite, if you were taking odds right now about who the president would be after inauguration day, january 201 three, you'd say it would be barack obama, the incumbent president enjoys immense advantages any time you have a reelection matchup, and what the president is trying to do is make a pitch to his base to say do you remember how good it felt to do the

unthinkable, to do the unimaginable, and defeat first hillary clinton, then john mccain, let's feel that way again. but gregg, at the same time that they're doing that, they're sending a very clear message to republicans, which is we're going to have hundreds and hundreds of millions of dollars, and we are going to have the media attention and often times, favorable media attention that you described and are going to use it to blow up whoever the republicans nominate. so he's an underdog when he's talking to his home team, but he's a prohibitive favorite when talking to the other side. gregg: i'll get to that in a moment. i did mention he raised 70 million recently, which sounds like a lot, but i read your power play column and maybe it's not really. >> it's not as much as it should have been. remember he came out of the gate very strong, $86 million, combined, between him and the democratic national committee, in the second quarter of the year, the first quarter he was really out there, campaigning, and fundraising. now that number has dropped

off. they blame the fact that the president had to stay in july for most of the month to deal with the debt ceiling impasse with congress and say that some of the dropoff is that, but we see other things, gregg. we see things like the fact that a fund-raiser that they hosted with warren buffet in new york didn't do what it was supposed to do and got short of the -- sort of a mixed turnout. the president has also seen other big bundling donor, the kind of wall street folks that embraced him in 2008 shy away in 2008. he's got a problem. gregg: i got to squeeze this in. i always read your power play and people can check it out on fox news.coal and today you quote an obama ally, explaining why the campaign seems to be attacking recently mitt romney, quote, the other republicans have sucked so bad, we didn't have any choice. [laughter] gregg: my favorite line of the day. look, does it tell us something there? is there maybe an overconfidence bordering on arrogance? i mean, do those folks read his dismal numbers?

>> well, look, what they want to do right now is, again, scare republicans into thinking they're going to wipe them out, but i think there is to a certain degree -- the president knows he's going to have a hard time getting up to 46, 47 percent of the vote, again -- even, and that's going to take slidfying his base, so what they're trying to do is whistle past the graveyard a little bit. gregg: chris, thank you very much. you can catch minister of more of chris, he'll be hosting power play live. check it out by going to live.foxfoxnews.com and click on the link there. jenna: well, some new concerns about iran today. are they planning more attacks in our country or maybe others? what should we do about it? senator lindsey graham joins us next with his thoughts. gregg: in new haven, connecticut, we are awaiting a verdict, the jury deliberateing on a man accused in a horrifying home invasion. we're going to bring you the verdict, as soon as it comes in.

jen right now, new fears over iran, not only with iran apparently behind a plot targeting the saudi ambassador inside our country. there may be more plots in the works. listen to what california senator dianne feinstein had to say: >> it's hard for me to believe there is just one plot involving the united states. i think we need to explore whether there are other plots going into other countries. intelligence indicates that there may well be problems elsewhere. jenna: for more, we're joined by south carolina republican senator lindsey graham. senator, where else should we look from this point on? >> well, you don't have to really be sherlock holmes to figure out what the iranians are doing, they've been trying to kill american soldiers and have been doing so in iraq for years, by putting in psts, ied devices into iraq to kill american

soldiers, when the international atomic energy commission put pressure on them to find out about their nuclear program, they got hezbollah -- hezbollah, a proxy of iran in lebanon to start a war with israel, they fund hamas, the terrorist organization in the gaza strip, because they're here in our back yard, so they've been a tremendously regional power player, trying to destabilize the middle east, but their ambitions are greater, their tentacles are greater than the region of the middle east, they're now in our own back yard trying to assassination people, and if you ask me the number one national security threat the world faces it would be a nuclear-armed iran, and this is a tipping point for me regarding iran. gen jen so let's start with the plot here at home, then i have some broader questions about what we do as iran as a country in general. starting with the plot, there are red flags said about this man at the center of the plot, "the new york times" quoted some of his

friends saying he's disheveled, hopelessly disorganized, incompetent, not a zealot, no interest in religion or politics, the man we're seeing on our screen, normally 48 hours after an event like this happens, some sort of plot like this happens, we start hearing about antiwestern rhetoric, we start hearing about extremists. why aren't we hearing about that in relation to this man? >> well, i can only say that the fbi director and the attorney general of the united states said that this was a plot blessed by the higher ups in iran, but you don't need to look at the plop to see what the iranians are capable of. they're trying to destabilize iraq, they're trying to destabilize afghanistan, they support the taliban, even though they're ideologically different, to support our efforts in afghanistan, they have supported hezbollah to attack israel, they are supporting hamas, so they have a desire to destabilize the world, and this plot in our back yard, as bizarre as it sounds, is not

inconsistent with the way they think. the regime is dangerous and i think they're crazy. jenna: and some people would definitely agree with you on that senator, but you made quite a list of what iran has been doing. why do we need this plot in our back yard to get tougher on iran? >> i'm with you, jenna. what i think the president should do is -- either tonight or tomorrow, make a speech to the american people laying out the threat that iran presents, their bad behavior all over the world, why sanctions must be increased. nothing would please me more than to change the behavior of this regime who is trying to develop a nuclear weapon through sanctions but obviously this is not working. the russians and chinese have to get on board, the sanctions should bite the iranian regime. stop buying their oil. it would hurt the iranian people in the short term but it would help them in the long term. the sanctions the obama administration have been pushing are not working. jenna: what else? >> we need to ratchet it up.

stop buying the oil. say if you do business with the bank of central iran, you're on the bad list. what i'm trying to lay out here is how you could change the behavior of the regime without military action. russia and china have not been on board, they should be on board. if i were president of the united states i'd make a speech tonight talking about the threat the world would face from a nuclear-armed iran, i'd talk about all the things i just described about how they're trying to destabilize the world, and now they're in our own back yard, trying to kill people in america and in a way that is completely outside of acceptable behavior, and i would suggest that if sanctions are not going to work, that all options remain on the table, and we're at a point now where their nuclear program is probably so redundant, strikes won't work. military action should be the last resort. it would open a pandora's box. if they get a nuclear weapon it will end the pandora box.

i want to let the iranians know, if you continue down this road, we're going to continue to do everything we can, more options on the table, it would include more sanctions. if they get a military, it's going to throw the world in chaos. jenna: if you were president. are you thinking about it? just asking. >> no. i'm saying anybody in his job, president obama's job, needs to let the world know where we're going with iran. our candidates for president -- jobs are important, it's the number one issue, but there are more important things -- not more important things, there are equally important things going on in the world. our candidates for president, everybody wanting to be commander in chief should tell the american people, here's the threat iran presents and here's how i would deal with it. what i would suggest is we deal with increased sanctions that bite, that change behavior. clearly what we're doing doesn't work. take their banking system and cripple it, stop buying their oil, put pressure on this regime to stop and if they won't stop and still try to get a nuclear weapon

and destabilize the world, kill people in america, then we need to put the military option squarely on the table and mean it when we say it. jenna: senator graham, always nice to have you on the show, we appreciate your perspective today, look forward to having you back. >> thank you. gregg: trying to get a president graham in there! jenna: hypothetically! you never know. there is still time left. gregg: there is time indeed, although it's getting shorter and shorter. we'll talk to larry sabato about that. a critical shortage of drugs in hospitals, and what hospitals are now forced to do that could put patients' lives at risk. we'll have a live report, still ahead. and the -- and the doctor sporting a winning beard, hey, just how long is that thing? zz top, where are you?

jenna: a fox news alert coming to us by way of wall street, we have the sentence for a major hedge fund founder. you might remember this name, raaj rojeratnum, he was on the stand because of insider trading allegations, and he was found guilty of that. the sentence just coming down today, 11 years in prison, about half of what some were hoping for this man, but 11 years in prison is among the longest ever u.s. prison term for insider trading. there's a lot of calls from protestors and others for arrests for major players down on wall street related to the financial crisis. want to be clear about this, this had nothing to do with mortgage fraud or anything like that, it had specifically to do with insider trading at specific companies, but 11 years for this gallian hedge fund founder. we'll have more on this throughout the show. gregg: we're here in

acquisitions, following a number of stories with our remote cameras. let's take a look at remote 246, the new haven, connecticut courthouse where a man is on trial. we're awaiting a verdict in the home invasion murder case. he is accused of killing a mother and her two daughters, and setting them on fire. the white house is remote camera 237 over here, the president is meeting with the south korean president, they're holding a joint news conference at 1:22:00 eastern time today. we'll follow that. and the big board, on wall street, the dow jones industrial average, lots of red arrows, today down # 12 points, lackluster finding on jobless numbers for the applicables filed this last week. jenna. jenna: gregg, right now a critical drug shortage across this country, turning deadly. hospitals are switching to drugs that in some cases aren't as effective or have different side effects. fifteen people dying as a result of either less effective medication or dosing mistakes. that's why our own john

roberts is taking a closer look at this live from thront. what do we know about this -- from atlanta. what do we know about this? >> reporter: this is a serious problem. a couple of examples, earlier, emory health care only had a day's supply of propofol at one of its four hospitals, the other three had none. just recently, mass general hospital had a shortage of cyterabin, didn't have enough to give to patients, then there's the case of alex ieloo, 26 years old, on chemotherapy to treat his leukemia for the past two years, was coming down to his last few doses of atra, which is known clinically to raise the cure rate to 80 percent from the usual 40 percent, but when he went to the mass general pharmacy in early september to get his drugs, instead of getting the atra, he got an iou. >> i've been off it probably -- probably about three weeks now, so it's an off

and on thing. i take it every two weeks. so i'll kind of nervous about it, that it might come back, but i always pray that it doesn't come back. >> reporter: and the problem is getting worse. it has tripled since 2006, 82 percent of hospitals in the recent american hospital association survey said they've either to to -- had to delay treatment or switch treatment for patients. hospitals are having to swap and substitute drugs they're not familiar are. it's fertile ground for mistakes and as you said the the beginning, 15 people are said to have died as a result of medication errors or not getting the medication they really need. dr. eil atar is an oncologist and alex aiello's doctor. he says it's just amazing that something like this could happen in the united states. >> it's absolutely outrageous that we cannot have these drugs available in our country with one of the most advanced medical systems available to treat our patients. it is very frustrating and

it makes me quite frankly angry. >> reporter: there's no one cause for the shortages. there are various things at play: manufacturing delays, recalls, sometimes pharmaceutical companies can't get raw materials or because many of the drugs have been off patent for years, they're generics when they need to upgrade a line, rather than putting expense into it, they say the profit marge sin so slim, let's stop making the drug. there is legislation before the house and senate that would try to change all of this, it would mandate that manufacturers give more advance warning of a looming shortage and provide penalties if they didn't but jenna, that legislation has been stuck in committee since february of this year. gen jen what an interesting story, jon. -- john, we'll continue to follow it. john roberts from atlanta, thank you. gregg: protestors on wall street, getting the boot. something big is going on right now in lower manhattan rick folbaum will have the very latest on this developing story and a big battle is playing out when it comes to the presidential primaries. which candidate will get the most pop from a primary that, well, could happen

even before christmas? what does the calendar mean for the gop field? well, larry sabato looks into his cristical -- crystal ball for us, next. my name is jill strange, i'm forty-nine years-old, i love gardening, and i love volleyball. i've been taking osteo bi-flex for several years now. i really can't see myself not taking it. osteo bi-flex is a great product. i can go back and do gardening with comfort. [ male announcer ] osteo bi-flex, the glucosamine chondroitin supplement with 5-loxin advanced. shows improvement

in joint comfort within 7 days. [ jill strange ] since taking osteo bi-flex, there's nothing that i can't do. [ malannouncer ] osteo bi-flex. the #1 doctor and pharmacist recommended brand. the #1 doctor and pharmacist a vacation on a budget with expedia. make it work. booking a flight by itself is an uh-oh. see if we can "stitch" together a better deal. that's a hint, antoine. ooh! see what anandra did? booking your flight and hotel at the same time gets you

prices hotels and airlines won't let expedia show separately. book it. major wow factor! where you book matters. expedia. ♪ i think i'll grab me a bowl and spoon now ♪ ♪ crispy flakes calling my name ♪ ♪ i'm hungry now. ♪ ♪ who can resist those honey kissed bunches. ♪ ♪ gotta get a bowl, get me some of that yaaaaay! ♪ ♪ everybody's... ♪ imagine nutrition in perfect harmony with great taste. that's honey bunches of oats. four healthy grains come together in crispy flakes and crunchy granola bunche honey bunches of oats.

you wouldn't want your doctor doing your job. so why are you doing his? only your doctor can determine if your persistent heartburn is actually something more serious... like acid reflux disease. over time, stomach acid can damage the lining of your esophagus. for many, prescription nexium not only provides 24-hour heartburn relief, but can also help heal acid related erosions in the lining of your esophagus. talk to your doctor about the risk for osteoporosis-related bone fractures and low magnesium levels with long-term use of nexium. possible side effects include headache, diarrhea and abdominal pain. other serious stomach conditions may still exist. let your doctor do his job, and you do yours. ask if nexium is right for you. if you can't afford your medication, astrazeneca may be able to help. jenna: welcome back, everyone. we're learning now that new york city is planning to evict the occupy wall street protesters, but there's a catch here, rick. it's not permanently, is it? >> reporter: not permanently, just for a little bit. the occupy wall street protesters, jenna, are going to

have to occupy someplace else, for a little bit. they've been camped out downtown, but starting tomorrow the park needs to be cleaned, as you can imagine, so the protesters will have to leave. the mayor, michael bloomberg, actually went to the park last night. he personally told the protesters about the clean-up plan. he said it's because the conditions town there are becoming unsanitary. people in the neighborhood have been complaining about the noise and the odors wafting from the park at all times of the night. maybe while they're cleaning the park they can bring in some of those portable showers for the protesters that have been out there for more than three weeks. jenna: who's going to pay for that? >> reporter: i don't know. [laughter] $2 million in overtime for the new york city police to be down there. jenna: we'll see what happens next. >> reporter: we'll see. gregg: at my house, you've got to clean up after yourself. jenna: that's how it works at your house?

[laughter] gregg: maybe the protesters ought to be cleaning up their own stuff. okay? all right. [laughter] let's move, now, to drama over the primary and caucus calendar as states scramble to move up their dates to gain some influence. candidates also have to speed up their campaigns, frantically raising money. four primaries and caucuses now officially on the calendar for january. well, traditionally the first primary state is new hampshire. folks there not willing to give up the honor, now saying that the contest might actually jump to early december. yeah, you saw the number six circled there. larry sabato, director of the center for politics at the university of virginia joins us. he looks into his crystal ball for us every thursday. good to see you. your latest crystal ball column is entitled primary madness, it really is kind of insane. here we are, what, two or three months away from are the first primary, and we don't know exactly when it's going to take

place. is this any way to run an election? >> it is absolutely no way to run an election. almost everybody agrees on that. i'm sorry, i must blame florida again. they are the ones who did this. they blew up the calendar, they're the grinch that potentially stole christmas. i mean, think about this. the new hampshire primary december the 6th or december 13th of the year before the election? what organized society starts an election for president a full year ahead of the election? and that's the formal elective campaign, not the informal cam pay. we start that the day after the last election. gregg: yeah. you know, we have jimmy carter, i guess, to thank people for running years in advance of the office. it didn't use to be that way. in fact, you mention that in your column today. but look, if it moves up to december 6th, the first primary, who does that advantage? >> well, here's the interesting thing.

romney is a heavy favorite in the new hampshire. i think he's very likely to win that, though we don't know the margin, we don't know who's going to be the runner-up. but, you know, whatever momentum he might get out of winning a new hampshire primary on december 6th or 14th, it will completely dissipate over the holidays. gregg: right. >> people naturally turn the page, particularly on january 1st of a new year. everything that happened in the old year seems ancient. so in a way it helps romney, but it also hurts him because the calendar would cause the whole primary process to begin anew, presumably with iowa on january 3rd. gregg: look, the republican committee had what many people regarded as a well thought out, well devised plan which is largely being ignored here. what's the likelihood that they would penalize particular states by depriving them of delegates? >> well, they're going to try and do that. in fact, they've said they're going to do it. i wonder if once the nominee is

chosen and after the wound's healed by the time of that august convention, are they really going to do that? particularly to florida where the convention's located? see, florida has the rnc over a barrel, and they know it. gregg: right. >> it's really a shame. you wish the states could get together. but, remember, it only takes one state out of 50 to blow up the whole system. gregg: right. >> this year it was florida, it may be another state in four years. gregg: well, it seems like it is every four years. some state tries to leapfrog over another, and it all gets moved up from march to, potentially, december. you have a solution, it's in your column, the crystal ballment -- ball.

gregg: i love it. and it makes perfect sense which means it won't happen. [laughter] >> exactly. that was, "the wall street journal" was nice enough to publish that, and as i said in the journal, that particular reform proposal is scheduled to be ip policemenned on the 12th -- implemented on the 12th of never. gregg: no kidding. i've got to ask you about herman cain. you probably, no doubt, saw the front page of "the wall street journal." new poll shows herman cain is in the lead, but your last crystal ball several days ago which i read, you wrote that the republican party will, quote, almost certainly not select herman cain as their nominee. are you sure? >> that's right. and for people who don't believe that, i would ask them to remember that since late spring, just since late spring the republicans have had five, count 'em, five front runners; donald

trump, mitt romney repeatedly, michele bachmann, rick perry and now herman cain. that's no cut at herman cain. he's a great guy, people like him because he's not a politician, but on the whole why should we believe the new front runner will sustain that status any more than the other four who had it? this is a volatile, dynamic process. it's a roller coaster. up and down and all around. and there are weeks to go. gregg: right. >> even if new hampshire moves into december. gregg: right. and your other point is with the exception of eisenhower, americans really don't in modern american history select somebody who's never held public office before. larry sabato, thanks so much. good to see you. >> are thanks, gregg. jenna: here's a switch of topics for you. a crackdown on pot, a new crackdown, gregg, hitting the medical marijuana business very hard. we're going to show you why just ahead. also, breaking news for blackberry users after another

day without e-mail for millions. gregg: i still don't have mine. jenna: are you getting it? gregg: i'm getting the shakes. jenna: an update next. ♪

gregg: right now people beginning to see a wee bit of action on their blackberries after an outage that hit users all over the world. rick with new information. rick? >> reporter: it's back, gregg, research in motion, the company that makes blackberry, is now saying its service is being restored almost fully restored,

rather, i got my e-mails, they started to trickle in around an hour or so ago. but it is still slow going on day four of the great blackberry blackout. 70 million or so people around the world depend on their blackberries, and when we say depend, we're not exaggerating. so many businesses, even government officials rely on blackberry's e-mail and messaging system to do their jobs. the company saying only that an infrastructure problem led to the outage in the first place. so instead of bbming or shooting off a quick e-mail from the smartphone, blackberry users have been forced over the last few days to do things the old-fashioned way, or at least the way they might have done it in 1999. they've been faxing or picking up the phone and talking to someone, imagine that. celebrities ticked off by it, perez hilton posting a joke on twitter: what did one blackberry user say to the other? nothing. joel mchale tweeted that he wanted to borrow somebody's

bugle. some folks definitely not complaining, executives at apple and google who are blackberry's top competitors. a lot of people, no doubt, throwing away their blackberry and going and buying an iphone or an android phone this week with all of the outages. gregg: and isn't it interesting that it happened simultaneous with the release of the new iphone 4s? jenna: uh-oh, conspiracy theories. >> reporter: very interesting. i've got to go, guys, i have some e-mails to return. [laughter] gregg: okay. all right, jenna? jenna: uncle sam is pulling out a new weapon in the fight against marijuana, taxes. one medical marijuana dispensary in california which calls itself the oldest in the nation, by the way, getting hit with a million dollar tax bill. the owner says she was told she can no longer write off experiences like any other business. adam shapiro's live in fairfax, california, with this story. but, first, adam, how'd you get this assignment? >> reporter: we've been following this for a couple of weeks because the federal government changed its policy,

jenna that, say june of this day where in 2009 they said don't prosecute legally operating medical marijuana dispensaries. that was in 2009. in june of this year the federal government completely reversed course and is now not only prosecuting medical marijuana dispensaries operating legally within their states, but going after the people who operate the dispensaries with the irs. i'm going to introduce you to lynette in just a second, but listen to what the man who operates the largest dispensary in the nation not far from here in oakland said about the irs. they used to allow him to deduct taxes for stuff they now consider illegal, but they won't let him deduct taxes for the business expenses that everyone knows are legal. it's an about face by the administration. here's what steve told us. >> it seems really remarkably absurd to me that we were allow allowed to take a deduction for illegal sub stapses but not

allowed for completely legal things? >> reporter: so this is lynette shaw. she operates the oldest medical marijuana dispensary in the country, essentially. fifteen years, not for profit, zoned by the city planning commission to be here, and now you've got the federal government through the u.s. attorney's office going after your landlord because you're near a park despite being zoned to be here, and you've got the irs coming after you. why is the federal government trying to make a case, do you du think, against you? >> it doesn't make any sense at all. it's a shocking reversal of policy when i thought we, you know, had a friend in the white house, and apparently we don't. the patients are terrified. the sick people we've been tending for 15 years now are afraid to lose their access which has stabilized their condition and help add lot of people. >> reporter: real quick, let's show some of the plants that are sold here. this is an industry just in california, anywhere from 700 million to 1.3 billion in the revenue, $105 million in taxes

paid to the state and to the city and local governments. why cut that off, do you think? >> >> it doesn't make any sense at all. this is the will of the people, it is a social experiment that works. all you have to do is regulate it. we've been regulated for 15 years. we don't have any of the problems they have with this unregulated marijuana or unregulated dispensaries. all you have to do is have some oversight, and we'll play by the rules always. >> reporter: lynette, thank you very much for joining us. it will go national. you've got 16 states and the district of columbia where medical marijuana is legal, but you have a conflict between the feds and the states. jenna: adam, real quick, why now? you said you've been following this story for several months, but why now are these hits coming for a small business owner like the one you just talked to? >> reporter: it is the question that these not-for-profit business owners are asking. some have a theory, they believe that the pharmaceutical companies are behind this because they're going to be able

to start using synthetic forms of marijuana or thc in medications that will hit the market in the next two years. jenna: adam shapiro, thank you very much. gregg: we are awaiting a verdict in the connecticutinvasion and murder trial of a man accused of not only abducting a mother and her two daughters, sexually assaulting them and setting them on fire. we'll be right back. [ male announcer ] what's the beat that moves your heart? how about the beat of a healthy heart? campbell's healthy request soup is delicious, and earned this heart, for being heart healthy. ♪ feel the beat? it's amazing what soup cano.

gregg: the u.s. senate committee hearing going on right now looking into the u.s. response to the alleged iranian plot to murder saudi arabia's ambassador to the u.s. 56-year-oldman sour arbabsiar is in custody right now, a second suspect still at large.

authorities say he's likely in iran where he's a member of the elite quds force. international support, though, is growing for new sanctions. however, at today's hearing senator richard shelby, the ranking member of the banking committee, warned that it's a strategy that has failed before. >> despite 30 years of progressively more stringent economic sanctions, iran remains one of the more serious threats to the national security of the u.s. and our allies. iran continues to support authoritarian regimes, terrorist organizations and radical militias in iran and in afghanistan. gregg: what steps should the united states take to punish iran's leaders and curb their support for terrorism? rickgy knell is a former spokesman for the last four u.s. ambassadors to the united nations. good to have you here. >> thanks, gregg. gregg: does senator shelby have a point? the iranian supporters tend to

mock these sanctions in the past. could they be meaningful? >> >> they could, right now they're not working. when the russians and the chinese get their hands on this, we have the obama administration since they've been in office, they have produced one resolution on iran compared to the bush administration's five. so i think if you had sanctions that were severe and swift and firm, they could work. but right now they're not working, and the obama administration has waited for so long to put the next resolution forward that talking about sanctions now is just way too late too late. gregg: perhaps because the president promised when he took office he was going to engage iran. is that now, perhaps, in retrospect look naive, if not foolish? >> the you know, the idea of engaging with your enemy sounds great, and i think everybody can say, oh, that really could work. but it hasn't worked, and this administration has come in almost forgetting past administrations' work and

experience and just said, well, let's try to talk the our enemies. they've been talking, it has not worked. the idea that we would be pushing sanctions now when a saudi diplomat has been targeted, when you look at the history of what iran has done to american -- gregg: killing american soldiers. >> killing meshes, why are we outraged now? gregg: secretary of state hillary clinton seemed surprised and outraged over this. >> it's like hillary swank is our secretary of state, not hillary clinton. you have a spokesman at the white house talking about putting forward some sanctions because there may be a little bit more room to unify the international community. that was what he was telling reporters. the idea that this white house thinks of the international community as united is the problem. they're not united. we've got china and russia going around our sanctions. we should say the military option is on the table, and we should have russian and chinese

companies that are going around the sanctions absolutely being targeted by the united states government. we should put pressure on those companies. gregg: rick, good to see you. wish we had more time. thanks for being with us. jenna? jenna: another big story, gregg. attorney general eric holder now facing a subpoena in the gun-running sting, operation fast and furious. it's just the latest on a growing list of problems for the department of justice. we have a live report next. in measure [ male announcer ] whether over a cup of maxwell house... or a can of paint... you came together to vote, to share... to volunteer. and now, thanks to you, 10 communities have more to smile about. what's next? tell us on facebook.

when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare, call now to find out how an aarp... medicare supplement insurance plan, insured by unitedhealthcare insurance company, helps cover some of the medical expenses... not paid by medicare part b. that can save you from paying up to thousands of dollars... out of your own pocket.

these are the only medicare supplement insurance plans... exclusively endorsed by aarp. when you call now, you'll get this free information kit... with all you need to enroll. put their trust in aarp medicare supplement insurance. plus you'll get this free guide to understanding medicare. the prices are competitive. i can keep my own doctor. and i don't need a referral to see a specialist. call now to get a free information kit. plus you'll get this free guide to understanding medicare. and the advantages don't end there. choose from a range of medicare supplement plans... that are all competitively priced. we have a plan for almost everyone, so you can find one that fits your needs and budget. with all medicare supplement plans, there are virtually no claim forms to fill out. plus you can keep your own doctor and hospital that accepts medicare. and best of all, these plans are... the only medicare supplement plans endorsed by aarp. when they told me these plans were endorsed by aarp... i had only one thing to say...

sign me up. call the number on your screen now... and find out about an aarp medicare supplement insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. >> reporter: welcome back, everybody, i'm rick folbaum. a couple of the stories we're watching for you. this is a shot of the white house. it's not framed up, as you can see, there's a lot of things you don't normally see in front of the white house, but this is where the president will be holding a news conference in many just about 20 minutes or so, and it could give him the first opportunity he has had to address that foiled plot that allegedly involved iranian officials. this is a shot out of the courtroom in los angeles, california, the dr. conrad murray trial, charged with

involuntary man slaughter the ath of michael jackson. that is another physician on the stand testifying today. and as we've been telling you, we're waiting for a verdict in that terrible home invasion case in connecticut. the jury has been deliberating and could come back with a verdict at any time. we'll have that for you and a lot more the second hour of "happening now" starting right now. gregg: eric holder, the attorney general, on the hot seat. hello, everyone, i'm greg jarrett in for jon scott. jenna: you're in the hot seat too, different kind. we're glad you're with us, and you as well, everybody, i'm jenna lee. he's under subpoena to happened over documents from the failed gun-running sting, and furious. catherine herridge is taking a closer look in washington. >> reporter: thank you, jenna. let's just lay out the key events.

in january of 2009, president obama announced he would close the guantanamo bay detention camps within a year, and he would leave that job to eric holder. that deadline was not met, and right now there's no timetable to close the camps. then in november 2009 the attorney general said the 9/11 case would be prosecuted in a federal court in new york city, but about a year and a half laettner april of this year holder said the case would go back to the military courts at guantanamo bay, and a leading critic of holder lays it out this way. >> there have been some major, major faux pass coming out of the attorney general's office. the guantanamo bay, fast and furious, these are some of the biggest cases before our nation, and i don't know that the president is getting the best advice, and i do believe there's a political component that, in my mind, is unacceptable. >> reporter: we asked the justice department to provide fox with a list of what they called the attorney general's accomplishments and suggest a surrogate that we could talk to, and we're still waiting for a

response at this hour. but just this week the justice department, which includes the fbi, was highly praised for breaking up the alleged iranian plot to assassinate the saudi envoy and bomb embassies overseas. >> it was a classic intelligence/law enforcement activity that resulted in a very successful case that's going to be successfully prosecuted. >> there's no question in my mind that it was a unique combination of very good intelligence both human and signals intelligence that enabled the coordination of this. >> reporter: this is a final note, we had yesterday the guilty plea from the underwear bomber, umar farooq, who tried to bring down that plane in 2009, and the attorney general issued a statement where this shows the federal courts are best suited for handling the interrogations, so very much the same position he had with the 9/11 case which is going back to the military courts. jenna: catherine, if we hear

more, we'll come back to you. thank you very much for that. >> reporter: you're welcome. jenna: right now we're on verdict watch in a case that has truly shocked the nation. joshua komisarjevsky accused of killing a woman and her two daughters during a night of terror. lara ingle is live outside the courthouse in new haven, connecticut, with more. >> reporter: hi, jenna. day two of deliberations has been underway since about 10:00 local time, and by our count that puts jury deliberations at six hours. right now we know that jurors are going through all of the evidence presented in this case. early this morning those cans of evidence were brought into the deliberation room, that means all the burnt clothing of the victims in this case, the clothing of the two men accused in the case and, also, the baseball bat used to beat dr. petit. all of that brought in along with a note. we know they asked if they could keep their notes up on the black board. they're clearly working through this case line by line, and this is a massive task for these

jurors. jurors must go through pages of complicated jury instructions, they were given this week applying the letter of the law to each count -- 17 in all -- including murder, kidnapping, sexual assault and arson. six of those are capital ones. if they find komisarjevsky guilty on any one of those capital charges, it will make mihm eligible for the death penalty. yesterday jurors only had one question for the judge regarding the rules of deliberation. sending out a note asking the judge when giving the verdict, do we need to specify if we have found him guilty as a principle or accessory? judge blue said they don't have to specify. he also told them they don't have to be unanimous on whether they believe he's accessory or a principal. now, that reminder is, no doubt, a huge help for jurors wading through the legal language that's involved in a case like this. komisarjevsky's defense team has repeatedly said his accomplice one the responsible for pouring

the gasoline up the stairs, over the girls' bodies as they were tied to their beds. komisarjevsky claims he watched steven hayes light the match and flick it into a puddle of gas -- gasoline in the kitchen. a couple of things when we get this verdict which, again, could come at any moment, we, of course, are keeping our eyes on the capital counts, but what will also be interesting to hear is what the jury decides on count 16. that is the arson charge. both steven hayes and komisarjevsky pointed the finger at each other for being the instigator of violence through in the hayes trial, jurors acquitted hayes on the arson charge meaning they couldn't find beyond a reasonable doubt that he lit the match. what will this jury decide? it is one of the things we are waiting for. again, verdict watch, day two. i'm being told from our producers that they have taken a break. that most likely means they might be going to lunch. we'll bring you the very latest when we get a knock or a note.

a knock means that they have a verdict, a note means they have a question. we are standing by on day two of deliberations. jenna? jenna: laura, back to you with that breaking news as we get it. thank you very much. gregg: new information on iran's alleged plot to assassinate the saudi arabian u.s. ambassador. we're learning more about the checkered past of one suspect, a naturalized american citizen from iran. and our next guest was briefed by the fbi a couple of times as the investigation was unfolding. he says iran's fingerprints are all over this operation. congressman mike rogers of michigan is chairman of the house intelligence committee and, congressman, thanks for being with us. >> hey, thanks forking having m. gregg: i certainly realize you can't divulge any kind of information that might compromise national security, however, are you convinced based on the information that has been given to you by the fbi that the iranian government not only

directed, but approved this operation? does it go as high as ahmadinejad? >> well, i would -- it wouldn't surprise me if ahmadinejad was not involved in the plot, but the supreme leader may have been involved in the plot. and we know that based on the experience of how the quds force has its command and control. so it takes approval, and imagine what kind of an operation this is, gregg. they're talking about a $1.5 million payout to kill somebody in the united states. that's a big operation, an important operation. lots of places it could go wrong, obviously. we, i feel very confident that saying that the senior leadership of the quds force was involved, and we know throughout our understanding of the quds force that the commander of that unit, mr. suleiman, has a direct connection to the supreme leader. so it would be impossible for them to deny that they were involved and didn't have their fingerprints on the approval of

an operation like this. gregg: senator dianne feinstein who chairs the senate intelligence committee says this is not an act of war. congressman peter king who sits on your house intelligence committee disagrees. how do you see it? >> well, i see it as they have certainly crossed a threshold here. and i think this is the most public view of what iran has been up to for years. and what they've done to our u.s. soldiers in iraq and afghanistan is criminal. they have blood on their hands. this is the first public view, i think, of the kinds of lengths that they'll go to to commit acts of violence in their political gain. and so i hope we use this as an opportunity to bring the americans into this notion that, listen, iran is a huge problem. they are state sponsor of terrorism and, oh, by the way, they're pursue nuclear weapons. gregg: you issued a statement saying the episode underscores the need for unity to confront

iran. what do you have in mind? >> well, two things, and i think our european allies need to do more. they've done some, they need to do more. this is an opportunity for the administration to put a little pressure on our european allies. listen, if you have contracts in iran, this is your time to stand up for the international community. it's also a time and a challenge to china and russia who have stood in the way of very tough sanctions in iran. they need to decide, are you on the side of a nation that is trying to kill diplomats in foreign countries, or are you going to stand with the international community? these kinds of sanctions can bring them to their knees, additionally -- gregg: but, i don't congressmanr history suggests they're not going to do it. >> well, again, they haven't been confronted with something this public, this open before. and i'll tell you, this is a serious threshold, and we shouldn't believe for one minute this wasn't a very serious step by a very brazen intelligence service and country who believes that they can kill people in foreign countries. gregg: all right. >> and i think this may be the thing that tips them over.

additionally, we need to pursue the quds force operative in iraq and afghanistan that are training the enemy, bringing new weapons system to the enemy and trying to kill u.s. troops through those methods. gregg: it's hard to do that when we're removing our forces, but we'll leave that for another day. congressman be mike rogers, thanks very much for being with us, sir. >> thanks for having me. jenna: next, we're going to take a look at the job market, work through some of the data out today and what it tells us about the recovery. also, new details in the search for a missing nursing student. this search exactly six months old today. what cops are doing to track her down. my doctor told me calcium is best absorbed in small continuous amounts. only one calcium supplement does that in one daily dose. citracal slow release... continuously releases calcium plus d for the efficient absorption my body needs. citracal. ♪

that's good morning, veggie style. hmmm [ male announcer ] for half the calories -- plus veggie nutrition. could've had a v8. i'm not a line item on a budget. and i'm definitely not a pushover. but i am a voter. so washington... before you even think about cutting my medicare and social security benefits... here's a number you should remember. 50 million. we are 50 million seniors who earned our benefits... and you will be hearing from us... today and on election day. ♪

gregg: welcome back. right now some new information on some crime stories we're following. today marking six months since 20-year-old holly bobo vanished. the tennessee nursing student last seen walking into the woods behind her home with an unidentified man. the family has criticized police

in the investigation. french prosecutor dropping their inquiry into rape allegations against dominique strauss-kahn, officials say the incident occurred too long ago to pursue the charges. earlier this year new york prosecutors dropped rape charges against strauss-kahn. allegations brought by a manhattan hotel housekeeper. a sleep expert expected to face cross-examination in the manslaughter trial of michael jack szob's doctor. yesterday he testified that dr. conrad murray's use of powerful drugs in jackson's treatment was unfathomable. jenna: his news for you now -- business news for you now, the latest unemployment data showing very little change from last week. there were 4 o 4,000 claims, that's down from the previous week but still well above the level we would like to see when we're in a healthy economy. joining us to work through some of this, "wall street journal"'s dennis berman, deputy bureau chief for money and investing, two very important topics these

days. >> were they ever not important, jenna? [laughter] jenna: it's a good point. you always need to have a job, that's for sure. let's talk about these jobless claims. one analyst i read today says this is actually a good thing. we're not seeing this number get a whole lot worse which is actually a sign we're not slipping into a second recession. >> well, the markets seemed to seize up almost as if it was having a heart attack in august as people feared we were moving toward a double dip recession. we, obviously, saw huge sell ahs in the stock market and the bond market, all those things as people were preparing for battening down the hatches for that second recession. these numbers, while not good, do indicate perhaps that they're not as bad as the market anticipated, and that might be cold comfort, but it is some comfort nonetheless. jenna: we'll take a silver lining wherever we can find it these days. what would we ideally like to see? there's always going to be people unemployed, right? >> sure. at about 9.1% the unemployment

rate for high school graduates, jenna, and this is important, and i hope your viewers pay attention to this, it's at 22% for those people who have no college education. and that's nearly double the rate at which it was prior to the recession in 2007. so jobless claims overall should be down substantially from the 404,000 we're seeing now. but overall the employment picture is bleak which gets us, perhaps, to the free trade agreements that were signed or expected to be signed by president obama in the weeks ahead. jenna: well, let's go there because we're about to hear from the south korean president along with president obama in just a few minutes, it's their first opportunity to talk about some of those trade deals with panama, south korea and colombia. these graduates are looking for full-time jobs in manufacturingg and otherwise, typically. will these free trade agreements, will they actually bring jobs to the united states? >> well, it's interesting, you know, both political parties are

in support of these agreements for somewhat different reasons. we see president obama saying that perhaps 200,000-plus jobs might come into the u.s. because of this free trade agreement. the republicans, obviously, pushing for free trade as just sort of a general plank of their philosophy. the real question is, go on the streets of your hometown, and you will see people driving hyundais. will we be able to sell u.s. products in a truly globally-competitive market to the people of korea? we can sell them airplanes, might we be able to sell them more agriculture products, more manufactured products? we will be -- we now have a seat at the table in korea, but can we be competitive with imports from china and parts of europe too? jenna: and we don't have the answer to that yet, and we'll look for one because we'd like to see new jobs. some say, and you just touched on this, that agriculture might be what really benefits, or farmers might benefit from this, but manufacturing and, like, the textile field would not be something that would benefit. >> yeah, it could be tough.

again, the korean market has done -- korean products have done very well in the united states. again, i point to hyundai which is either the fourth or fifth largest seller of cars here in the united states. so their goods are definitely coming here. this does give the u.s. an opportunity to move things more to korea which is a growing market. jenna: we'll take that, too, as might be a good sign. a pleasure to have you, dennis. gregg: vice president joe biden promising he will keep up the fight to save and create jobs. coming up, we're going to be talking to a democrat on the senate budget committee. plus, an urgent search for a missing 11-year-old boy after his mother was found dead. there's a big reason to lower your high cholesterol...

dangerous plaque that can build up in arteries over time... high cholesterol is a major factor. but these other health factors can also contribute to plaque buildup. so if you have high cholesterol and any of these other health factors... it's even more important to get your cholesterol where your doctor wants.

talk to your doctor about crestor. when diet and exercise alone aren't enough... adding crestor can lower bad cholesterol by up to 52%. and crestor is proven to slow plaque buildup in arteries. crestor is not right for everyone, like people with liver disease... or women who are nursing, pregnant, or may become pregnant. simple blood tests will check for liver problems. tell your doctor about other medicines you're taking... or if you have muscle pain or weakness. that could be a sign of serious side effects. ask your doctor about high cholesterol... plaque buildup... and if crestor is right for you. if you can't afford your medication, astrazeneca may be able to help.

jenna: welcome back, everyone. we are awaiting the president with the president of south

korea. they're expected to come out, and i see them, actually, stepping to the podium right now to talk about this new trade deal between these two nations. we're going to go ahead and listen in. >> good afternoon. once again, it is a great honor to welcome my good friend and partner, president lee, back to the white house. we had a wonderful dinner last night at one of our outstanding local korean restaurants. michelle and i are looking forward to hosting the president and first lady kim at tonight's state dinner. and today president lee will address congress, a high honor reserved for america's closest friends. this state visit reflects the fact that the republic of korea is one of our strongest allies because we've stood today, the people of south korea from the ruins of the world were able to build an economic miracle and become one of our larnlgest trading partners creating jobs and opportunity for both our

peoples. because we stood together, south koreans were able to build a strong and thriving democracy and become a steady partner in preserving security and freedom not only on the korean peninsula, but beyond. as i said this morning, this visit also recognizes south korea's emergence as one of our key global partners. south koreans have served bravely with us in afghanistan and iraq. south korean forces have partnered with us to revent piracy off the shores of africa and stem the spread of weapons of mass destruction. once a recipient of aid, south korea has become a doe far nation supporting development from asia to africa. and under the president's leadership, seoul served as host of the g20 summit last year and will host the next nuclear security summit next year. south korea's success is a tribute to the sacrifices and

tenacity of the korean people. it's also a tribute to the vision and commitment of president lee. and, mr. president, you have shown how the international community should work in the 21st century. more nations bearing the responsibility of meeting global challenges. in the face of unprovoked attacks on your citizens, you and the south korean people have shown extraordinary strength, restraint and resolve. and i'd add that in all of our dealings president lee has shared my focus on what matter most; the security and prosper by of our citizens. and that, again, has been our focus today. we agreed to move ahead quickly with the landmark trade agreement that congress passed last night in and which i'll sign in the coming days. it's a win for both our countries. for our farmers and ranchers here in the united states, it will increase exports of agricultural products. from aerospace to electronics, it will increase american manufacturing exports including

those produced by our small businesses. it will open korea's lucrative services market, and i'm very pleased it'll help level the playing field for american automakers. as a former executive, president lee will understand when i say that just as americans buy hundred kays and -- hyundais and kias, i hope south koreans will buy more fords and chevys. tomorrow we visit with some of the many americans who are going to benefit from this agreement. in short, this agreement will boost american exports by up to $11 billion and support some 07,000 american jobs -- 70,000 american jobs. it has ground breaking protections for labor rights, the environment and intellectual property, so the trade is free and fair. it will promote green jobs in clean energy, another area where we're deepening our cooperation. and it keeps us on track to achieve my goals of doubling american exports.

so, president lee, i thank you for your partnership in getting this deal done, a deal that will also be good for korean businesses and korean jobs. i look forward to working with you to bring it into force as quickly as possible. as we expand our economic cooperation, we're also deepening our security cooperation. guided by our joint vision for the alliance, we agreed to continue strengthening our capabilities to deter any threat. i can never say it enough: the commitment of the united states to the defense and security of the republic of korea will never waver. and as we have for decades, the united states will maintain our strong presence in the asia a pacific. asia pacific, which is a foundation for security and prosperity in asia in the 21st century. in this regard, we discussed north korea which continues to pose a direct threat to the security of both our nations. on this, president lee and i are entirely united.

together we've succeeded in changing the equation with the north by showing that its provocations will be met not with rewards, but with even stronger sanctions and isolation. so the choice is clear for north korea. if pyongyang continues to ignore its international obligations, it will invite even more pressure and isolation. if north abandons its quest for nuclear weapons and moves towards denuclearization, it will enjoy greater security and opportunity for its people. that's the choice that north korea faces. given the global nature of alliances, president lee and i discussed the full range of challenges to our security and prosperity. i thanked the president for south korea's continued support for reconstruction in afghanistan, and i updated him on the transition that is underway towards full afghan responsibility for security. we agreed to continue our support for democratic transitions in the middle east and north africa, including

libya. we've agreed to coordinate more closely on the developments that can lift people and nation out of poverty. i appreciated hearing the president's plan for next year's nuclear security summit which i look forward to attending, and as we approach the g20 and apex summits next month, we agreed on the need for coordinated global action that focuses on growth and creates jobs for our workers. finally, we're strengthening the ties between our people. south korea's one of the top sources of international students studying in the united states, and the number of american students who are studying in korea has been soaring. so we've directed our teams to sustain this momentum and expand educational exchanges between our people. not unlike the one that once brought a visiting scholar named lee myung bak to an american university just blocks from here. so, again, mr. president, i thank you for your partnership and your friendship, and because of the progress we've made today

i'm confident that your visit will mark a turning point in the enduring alliance between our two nations. thank you very much. >> thank you. >> thank you. [speaking in native tongue] >> translator: thank you, mr. president. [speaking in native tongue] >> translator: first of all, i thank president obama again for inviting me to make a state visit to the united states. my thanks goes out to the first lady as well. i am pleased to have had the chance to reaffirm once again the strong partnership and friendship between our two countries. i met with president obama six times over the last three years. our meetings were always constructive, allowing us to reaffirm the strength of our alliance, an alliance that is firmly based upon shared values and mutual trust. this alliance guarantees peace,

stability and prosperity on the korean peninsula, the asia pacific region and beyond. we will continue to strengthen what is already a powerful and far-reaching alliance. i was privileged to have spent many hours with president obama during my visit to washington, d.c. this time discussing and sharing views on a wide array of issues such as security in the korean peninsula and trade and cooperation between our two countries, the situation in the middle east including what is unfolding in libya, various international security issues and, of course, the global economy and the challenges that we face today. in particular we welcome the ratification of the korea jr. u.s. free trade agreement by the united states congress. i am confident that the korean national assembly will soon ratify this very important agreement in the near future. i take this opportunity to sincerely thank president obama, the congressional leadership and the members of congress for their support and commitmentment

the korea/u.s. free trade agreement is a historic achievement that will become a significant milestone in our 130-year relationship. it is a win/win agreement that will benefit both of our countries in countless ways. this agreement will create more jobs, generate more trade and stimulate our economies. this free trade agreement will bring numerous benefits to our workers, our companies, our small businesses and our consumers alike. [speaking in native tongue] >> translator: furthermore, mutual investments will increase, and our economic partnership will become stronger. and it will bring benefits beyond korea and the united states. it will be a gateway to enhancing ties between north america and asia. it will allow us to get ahead and stay ahead in the global markets. [speaking in native tongue]

>> translator: as we all know, the global economy is undergoing many challenges. the korea/u.s. free trade agreement will demonstrate to the world that we can create good quality jobs and stimulate growth through open and fair trade. this is a good example. the passage of the court fta has opened up a new chapter in our partnership, in our alliance. for the last 60 years, we have maintained strong political/military alliance, now the course fta signals the beginning of an economic alliance. this alliance will strengthen and elevate our military and political alliance to a whole new level. our alliance is evolving into a future-oriented partnership, and it will become stronger. when president obama and i adopted the joint vision for the future of the alliance in 2009, we agreed to expand the depth and scope of our strategic alliance. today we reaffirmed our common commitment to a common future, a

future of insuring peace and stability on the korean peninsula and beyond including the northeast asian region, our alliance will continue to play a pivotal role this overcoming the many global challenges that we face today. [speaking in native tongue] >> translator: recently, we were deeply shocked when we read the reports on the attempt to harm the saudi envoy here in washington d.c. i and the korean people strongly condemned all forms of terrorism. and as you can see already, our two countries are working to insure peace and stability around the world. we are partners in iraq ask and afghanistan. we are safeguarding the coast of somalia. today we also talked about the

rebuilding of libya and bringing democracy and economic prosperity to a region wracked by violence and instability. we also continue to work towards promoting universal values such as human rights, democracy and freedom across the world. in particular, we agreed that korea and the united states will contribute to the economic development and administrative capacity build anything libya, provide vocational training for its young people, provide medical care and rebuild and reinvest in its infrastructure. we will coordinate our joint efforts with the united nations support mission in libya and the friends of libya meetings and our international partners. we also talked about the worrying state of the global economy and how to overcome the perils that emanated from the euro zone. the situation in europe is a source of grave concern. we agreed to strengthen

international cooperation through the g20 so that endanger the recovery of our real economis. in particular our two countries agreed to work together to bring back stath to our financial markets similar to what we did back in 2008. as we have done for the past three years, president obama and i will remain in complete agreement when dealing with north korea. our principled approach will remain steadfast. we agreed that north korea's continued pursuit of nuclear weapons poses a serious threat to peace and stability on the core reason peninsula and the world. we will work for towards denuclearization of the korean peninsula. the second korean summit will be held next march in seoul. during the summit we will review the progress made during the first summit in

2010 which was convened under the initiative of president obama. the leaders will have one goal to achieve our collective vision of a world free of nuclear weapons. i thank president obama and his able team for giving us their full fort in preparations of the summit and we'll continue to work with them and i look forward to welcoming president obama and mrs. obama in seoul next year. thank you very much. >> all right. we're going to start off with ed henry. where is ed? >> thank you, mr. president. thank you, mr. president, i appreciate it. president lee, i wanted to start with you, one question each first. first, when you mentioned north korea, what concrete steps do you think the obama administration has helped to contain kim jong-il? and president obama, i wanted to get your first reaction to the iranian terror plot. your secretary of state called it a dangerous he is

can is la. what specific steps will you take to hold iran accountable especially when mitt romney charged last week, quote, if you do not want america to be the strongest faith on earth, i am not your president. you have that president today. >> well, i didn't know you are the spokesperson for mitt romney but the, let me just talk about the plot in particular. we have a situation here where the attorney general has laid out a very specific set of facts. what we know is that an individual of iranian-american descent was involved in a plot to assassinate the ambassador to the united states from saudi arabia. and we also note that he had direct links, was paid by,

and directed by individuals in the iranian government. now those facts are there for all to see, and, we would not be bringing forward a case unless we knew exactly how to support all the allegations that are contained in the indictment. so we have contacted all our allies, the international community. we have laid the facts before them and we believe that after people have analyzed there will not be a dispute this is in fact what happened. this is a, not just a dangerous escalation, this is part of a pattern of dangerous and reckless behavior by the iranian government. one of the principles of international behavior is

that our diplomats, we send them around the world, that they are going to be protected. they are not targets for threats or physical violence. and for iran to have been involved in a plot like this indicates the degree to which it has been outside of accepted norms of international behavior for far too long. this is just one example of a series of steps that they have taken to create violence and to behave in a way that you don't see other countries doing. so, with respect to how we respond, our first step is to make sure that we prosecute those individuals that have been named in the indictment and i will leave it to the attorney general the task of describing how that will proceed.

the second thing that we're going to continue to do is to apply the toughest sanctions and, continue to mobilize the international community, to make sure that iran is further and further isolated and that pays a price for this kind of behavior. keep in mind that when i came into office i think iran saw, felt it being able to play various countries against each other and avoid the kind of isolation that it deserved. since that time what we've seen, whether it relates to its nuclear program or its state-sponsored terrorism, that more and more countries have been willing to speak out in forceful ways, whether through the united nations or through other avenues to say, this is not acceptable behavior, and it is having an impact. what we've seen is iran's economy is in a much more

difficult state now than it was in several years ago in part because we've been able to unify the international community in naming iran's misbehavior and saying that it's got to stop and there are going to be consequences to its actions. now we don't take any options off the table in terms of how we operate with iran but what you can expect is that we will continue to apply the sorts of pressure that will have a direct impact on the iranian government until it makes a better choice in terms of how it is going to interact with the rest of the international community. there is great similarity between how iran operates and how north korea operates. a willingness on their part to break international rules, to flout international norms, to not live up to their own commitments and each time they do that, the united states will join with its partners and allies in

making sure that they pay a price and i think that, i have to emphasize that this, this plot was not simply directed at the united states of america. this is a plot that was directed against the saudi ambassador and i think that what you're going to see is folks throughout the middle east region questioning their ability to work effectively with iran. this builds on the recognition within the region that iran has in fact been hypocritical when it comes to dealing with the arab spring given their own repressive activities inside their country. the willingness to prop up the syrian regime at a time when they're killing their own citizens. this is a pattern of behavior that, i think increasingly international community is going to consider out of pound and is going to continue to punish

iran for. unfortunately the iranian people are the ones that probably suffer the most from this regime's behavior and, we will continue to work to see how we can bring about a iranian government that is actually responsive to its people but also following the rules of the road that other countries in the international community follow. [speaking in native tongue] >> translator:, to answer your question about north korea, first of all president obama and i for the last three years, we have maintained very close cooperation and coordination when it comes to north korea policy. we have consistently applied our principled approach towards north korea.

for north korea the only way to ensure happiness for its people and to embark on that path to development is to abandon its nuclear ambitions. so we have tried through peaceful means, through diplomatic means, to strongly urge north korea to abandon its nuclear ambitions. and in this day and age we realize that no single country can be effective in achieving its diplomatic or economic aims on its own. we know that cooperation is vital in order for a country to become a responsible member of the international community, which is something that we want for north korea, and so we would, of course, want north korea to abandon its nuclear ambitions and of course korea and the united states will continue to consistently apply a principled approach so that

we can achieve our strategic objective and when it comes to the cooperation between our two governments, we speak with one voice and we will continue to speak with one voice. and it was a chance for me to reaffirm this today. [speaking in native tongue] >> translator: my name is kim from the seoul daily news. i know the president lee is talking about a south korea-north korea-russia trilateral gas pipeline project but north korea is also under a lot of sanctions from the international community and the united states and other countries but having said that, if this gas line project proceeds as planned, then we would have to provide or compensate north korea with substantial amount of money or other forms of compensation.

so in your opinion, president lee, do you think that the gas line pipeline project will be able to proceed without resolving the north korean nuclear issue? [speaking in native tongue] >> translator: yes, thank you. and i don't know if that's a question that i should be answering here in the united states but since he asked the question i will try to answer that. in the far east we've been discussing this issue for quite some time trying to import russian gas into the republic of korea. now we're discussing right now with the north koreans whether the russian gas, which is quite affordable, can travel through north korea and be imported and be used in south korea. this is beneficial, first of all, for russia because they can sell their natural

resource. for north korea it is beneficial because they could use this natural resource, and also beneficial for south korea as well. let me just remind you that south korea, north korea, and russia haven't yet come together to discuss this issue in any detail. but from an economic standpoint of view, it is beneficial for all parties involved but i understand that this issue is not just economics alone. this issue inevitably involves security matters which we will consider very closely and also let me remind you this project will not be implemented anytime soon. of course we are mindful of the progress that we are making with regards to north korean nuclear issue as well. >> jessica yellen. >> thank you, mr. president. first briefly to follow on and, if i may, on the iran

alleged terror plot, do you have knowledge or do you believe that the nation's supreme leader and president had knowledge of the plot? and if so, do you not see that as an act of war? if i could turn to the economy, yesterday in a campaign video you said that you will force congress to take up individual pieces of the american jobs act. which pieces would you like to see them take up first? and given that so far you've been unable to force congress to do up-or-down vote on the entire bill and that new unemployment filings are not falling why not now sit down with members about of congress to see if you can't reach compromise on something that can pass now and create jobs quickly? >> okay. first of all on the iranian issue, the attorney general's put forward the facts with respect to the case and i'm going to let him comment on the details of those facts. what we can say is that there are individuals in the iranian government who are

aware of this plot and had it not been for the outstanding intelligence work of our intelligence officials, this plot could have gone forward and resulted not only in the death of the saudi ambassador but also innocent civilians here in the united states. we believe that, if, even if at the highest levels there was not detailed operational knowledge, there has to be accountability with respect to anybody in the iranian government engaging in this kind of activity. and so, you know, we will continue the investigation. we will continue to put forward all the facts that we have available to us but the important thing is for iran to answer the international community why anybody in their government is engaging in these kinds

of activities, which as i indicated before i think are out of bound for, you know, not just a country like iran and that historically has been engaging in these kind of activities but, you know, violates basic principles of how diplomats are dealt with for centuries. now with respect to the jobs bill, i have said repeatedly that the single-most important thing we can do for the economy right now is put people back to work right now and we have put forward a jobs bill that independent economists, not my team, not my administration, said would grow the economy substantially and put up to 1.9 million people back to work. these are proposals that

historically have been supported not just by democrats but also by republicans. as i have said, as i have traveled around the country, i don't know when rebuilding our roads and bridges that are decaying suddenly became a partisan issue and i was at a jobs council meeting up in pittsburgh with ceo's from companies across the board, many of whom, you know, have been traditional supporters of the chamber of commerce and the business roundtable and other organizations that republican party has claim ad lot of support for. they said for example, when it came to infrastructure, this is something that anybody in washington should agree to. the republicans haven't given a good answer as to why they have not agreed to wanting to rebuild our roads and our bridges and our schools. they have not given us a good reason why they don't want to put teachers back in the classroom. so the what we're going to

do is we're going to break each of these bills apart. we're going to say, let's have a vote on putting teachers back in the classroom. let's have a vote on rebuilding our infrastructure. let's have a vote on making sure that we are keeping taxes low for small businesses and businesses that are willing to hire veterans. provide tax breaks for further investment that can create jobs. and each time we're going to ask republicans to support the bill and if they don't want to support the bill, they have got to answer not just to us but also the american people as to why they wouldn't. now, i think this trade deal that we just passed, the korea free trade act, shows that we are happy to work with republicans where they are willing to put politics behind the interests of the american people and come up with proposals that are actually going to create jobs, the create free trade act we

believe would create up to 70,000 jobs. it is a good deal. we got strong bipartisan support. frankly we have not seen a lot of ideas coming forward from republicans that would indicate that same kind of commitment to job creation. if they do be, if senator mcconnell or speaker boehner say to me, you know what? we want to get some infrastructure built in this country. we think that putting construction workers back to work is important. i'll be right there. we'll be ready to go. if they are willing to renew the payroll tax as, we worked on together in december, i'll be ready to go. i don't think the problem here, jessica is that i have not been unwilling to negotiate with rerepublicans. i've shown repeatedly my willingness to work overtime to try to get them to do something to deal with this high unemployment rate. what we haven't seen is, a

similar willingness on their part to try to get something done and, we're not going to wait around and play the usual political games here in washington because the american people are desperate for some relief right now. >> [inaudible]. negotiate on the jobs bill? >> you know, i think that, anytime and any place they are serious about working on putting people back to work, we'll be prepared to work with them but we're not going to create a lot of theater that then results in them engaging in the usual political talking point but don't result in action. people want action and i'm prepared to work with them, but again, the last time i was here at a press conference i said, i asked you guys, to show us the republican jobs plan that independent economists would

indicate would actually put people back to work. i haven't yet seen it. and so eventually i'm hoping that they actually put forward some proposals that indicate that they feel that sense of urgency about need to put people back to work right now. jessica, you can't have four follow-ups. one is good. all right. >> my name is young. i'm a reporter of korea broadcasting system, kbs. i have two questions to president obama. yesterday u.s. congress ratified the korea-u.s. fta but korean national assembly didn't pass it yet. and korean opposition party

is requesting renegotiation on the fta. what's your opinion and prospect on the future of the korea-u.s., fta? and my second question is about libya and north korea. in libya there was a peoples uprising and they changed their governments and do you think such a, such an event will be possible in north korea in the near future? thank you. >> well, first of all, president lee assures me that the fta will pass through the national assembly. i have great confidence in his leadership and my expectation is that it will get done. because it is good for both countries and you know, businesses will be able to

business z will be able to prosper here in the united states as a consequence of low oring -- lowering many of these trade barriers. the same will be true in korea. we can learn from each other and you know, i think this is one more sign of the close cooperation and friendship between our two peoples. peoples. you're absolutely right that what we've seen in the raich spring in libya, in tunisia is this deep longing for freedom and opportunity. and although the path from dick dictatorship to democracy is always uncertain and fraught with danger, what we've seen also is that human spirit eventually will defeat

repressive governments. so i don't want to predict when that might happen. i think that, obviously, you know, the people of north korea have been suffering under repressive policies for a very long time, and, you know, none of us can look at a crystal ball and know when suddenly that type of government collapses on its own. what we know, though, is that, you know, what people everywhere whether it's in korea or the united states or libya or africa, what people everywhere are looking for is the ability to determine their own destiny, to know that if they work hard, that they will be able to be rewarded, that they can speak their mind, they can practice their religion in freedom, that

they can enjoy the free flow of information that increasingly characterizes the 21st century. and i don't think that the people of north korea are any exception. and i think when they see the extraordinary success and progress that's been made in south korea, i think inevitably that leads them to recognize that a system of markets and democracy and freedom is going to give their children and grandchildren more opportunity than the system that they're currently under. all right. thank you very much, everybody. >> thank you. [applause] megyn: welcome, everyone, i'm megyn kelly. president obama moments ago making his first on-camera statement about an assassination and terror plot allegedly hatched