california. >> brian: and we'll have the aftermath of the big governor perry interview with bill balleza. we'll get the -- we'll get the scoop with you from bill o'reilly. it's his vision to simplify, cut tax and possibly jump start his campaign, rick perry will unveil his flat tax this morning and everybody is going to climb on board or not. good morning, everybody, i'm bill hemmer, welcome to "america's newsroom", a lot to go through. late night for you. martha: doing "on the record" last night. back here today. bill: how did it go? >> martha: you weren't there, that was the only problem! good morning, everybody, good to be here this morning. this is the new plan from rick perry, it's called cut, balance and grow, and he's describing it basically as a blow against the washington knows best mind-set. bill: there's an editorial that perry wrote, here's how it works, taxpayers will have a choice between a flat rate of 20 percent or

whatever they pay now, it will keep deductions for mortgage interest and other exemptions for family who make less than $500,000 a year, it also gets rid of the tax on social security benefits. there's a lot more to this. stuart varney, fox business network, leads our coverage, good morning to you. >> grng bill. bill: will this plan do essentially what perry claims? >> let's take it in order, cut, balance, grow. number one, will it cut tax rates, yes it does, down to a flat 20 percent for individuals and flat 20 percent for corporations. second item, will it balance the budget? well, that's a few point, that's an opinion. he says yes, it will, by the year 2020, but it rely relies upon unspecified spending cuts. the jury is out on that one. will it grow the economy, that's another opinion, many people say yes, it will, because lower tax rates and fewer deductions, perhaps, that stimulates the private economy, therefore, it grows the economy. bill: so now he has a whole new issue to talk about. what do the others do?

does mitt romney and herman cain, do they have an obligation to respond to this this. >> it certainly puts pressure on myth rom now because two of the leading three republican candidates have adopted some form of radical tax reform, simplification and lower flat tax rates. governor romney has come out with a 59-point plan. it will be hard to rationize 59 points, simplify it and come out with a fair tax of his own, but he might try, he might feel pressured 20 -- pressure to try because of the ground gained by herman cain and governor perry, with their own proposals on taxes. bill: back to perry specifically, it's a voluntary idea? why do you believe that the voluntary principle is so critical? >> i think it would make it easier to pass this idea politically, because you're not forcing anybody to either pay more tax or to pay a certain rate of tax. you're offering a choice. the all-tax system or the new flat rate system. so that half of the

population which does not pay any federal income tax at the moment has a choice. do you want to pay under the new scheme, or keep it where it is, under the old scheme. you're not being railroaded through. particularly attractive. bill: see you at fbn and we'll see rick perry later this morning when he tells the world what he's got up his sleeve, stuart, thank you. >> sure. martha: on the other side, president obama wants very much to rev up this economy and since not 250 too much has worked so far he's laying out a new plan, this one an effort to rescue homeowners who are under water on their loans. it's designed not to need congressional approval because he says there is simply at this point no time >> we can't just wait for congress. until they act, until they do what they need to do, we're going to act on our own. because we can't wait for congress to help our families and our economy. martha: but not everybody is happy about that idea. bill: critics of the plan saying it's too little, too

late, and that is from a democrat. california congressman dennis cardoza, a long time critic of the administration, says this, it's far too a little, it's just baby steps. they're still not getting it. cardoza said the housing collapse is a leading cause of the recession but the last issue to be addressed by washington. more on that coming up in a great fair and balanced debate with bob and andrea on deck on that. martha: debt is such a burden to some states in this country that they are digging a deal hope to try to stay above water. how deep? look at this report that came out this morning. it shows the total debt owed by state governments is an astounding $4.2 trillion. california is in the biggest financial hole of all. they've got a total debt of more than $612 billion. new york comes in second, $305 billion is owed by the state of new york. texas, $283 billion in the hole. and the report also states that california borrowed the

most from the federal government in the course of this year, just to try to piece that together. bill: meantime on the campaign trail, ron paul taking the country's debt very seriously. he always tbawks that. he tells her own sean hannity that the other candidates fighting for this nomination are not. >> i think the question is how serious do the other candidates and the people of this country think this debt is. i happen tong it's very serious. i was concerned in the '70s because i thought the situation was set out because of the change in the monetary system that it would lead to endless spending and endless debt and that's where we are, so i think we have to take this very seriously. bill the other headline he's talking about, a bit earlier in the week, suggesting the federal student loan program should be eliminated to help bring down that debt. from ron paul. martha: boy, incredible new video that we are seeing this morning of a dramatic rescue that took place in turkey. watch this. >> that tiny little body, a

little baby, 14 days old. the baby and the mother and the grandmother, all pulled alive from the rubble of a collapsed building. forty-six hours after a massive 7.2 magnitude earthquake rocked the southeast part of the country of turkey. there is word -- this is incredible, this is a new development, they found all three of them and they are all doing okay, and so far, this quake and the aftershocks have flattened 2000 buildings, at least 336 people are dead, more than 1300 injured. but boy, that's a hopeful sight, isn't it? >> bill: you find miracles like that in the rubble, right? and you hope that, you know, days from now or weeks from

now, they'll continue to listen to the sounds inside that rubble and perhaps there will be more survivors. we've seen it play out in different parts of the world when we've seen tragedies like this, so holding on to hope. martha: that's an inspiring story this morning for all of this. and then there is -- for all of us. >> libyan dictator moammar qaddafi, this is people streaming li business -- by his dead body and word is he was buried this morning. the national transitional council saying his son and top aide were buried by his side. libyans are now questioning where he is. >> i don't like the idea that they buried him in a place where the people don't know where he is, because the people, who loved qaddafi, they will not leave him tonight. people who hate qaddafi, they will, i'm sure, give

them -- get him out of his grave. martha: david piper joins us from tripoli. hi david. >> reporter: hi martha. according to libyan authorities they were pushing for a secret burial because they were concerned that qaddafi's followers might turn it into a shrine, and also worries about vandalism from opponents of qaddafi. some new details coming out about qaddafi's last few days. another aide who was captured in sirte last week says the ruler of this country was sad and depressed half the time and was moving from building to building in sirte, trying to escape the nato air strikes, and also, that constant artillery fire that was pounding in his home town over the past week. also, details coming out now about the future of this country, and there is one big imponderable at this time, that is one of his

son, saif al-islam, he was educated in britain to a phd level, and there were reports last week he had been captured or even killed this time, they suggest he may be on his way back to algeria to escape. martha: and are there concerns or do people think that maybe he might try in some way down the road to regain power? he's always been a very high profile member of this family. >> reporter: well, that's right, martha. this guy was very much the face of this regime before he was well-spoken in english, if they do rally for his banner, there are opponents and followers out towards the algerian border, so that is a major concern for this country so they really need to try to capture him as soon as possible. martha:dized piper, thank you very much. bill: those are just, what, a few of the things we're working on today. in a moment, here's a question for you. many folks scratching their head over this one.

why does the u.s. give taxpayer money, hundreds of millions of dollars, to china, when we borrow money from them to pay down our own debt? go figure that one, huh? >> martha: and a major state restriction on how long you may be able to stay in the hospital. we're going to explain that. bill: still no sign of missing baby lisa irwin, now the attorneys for her parents questioning about police -- why police are searching their home and why are parents not talking anymore with police? >> is it true that you're getting paid to avoid local reporters? >> not at all. >> then why won't you talk to us? >> because we're grieving. hey, everyone's eating tacos outside bill's office.

[ chuckles ] you think that is some information i would have liked to know? i like tacos.

you invited eric? i thought eric gave you the creeps. [ phone buzzes ] oh. [ chuckles ] yeah. hey. [ male announcer ] don't be left behind. get it faster with 4g. at&t. ♪ march we have a fox news alert for you now, let's go live to oakland, police in riot gear are beginning to clear a group of the antiwall street protestors. that's happening in the early hours this morning, still dark in oakland, california as they get this underway. they were in front of oakland city hall, they've been camped out there for two weeks, television news

footage shows people led away in those plastic handcuff, they're saying they have not been resisting the arrests so far. protestors have been out there, they said, for a couple of weeks, and the city has warned them that they were breaking the law and that they couldn't stay in that encatchment overnight, they said concerns about rats and fire hazards and public urination and acts of violence at this site -- it's been going on at all these sites for the most part. they had 150 tents out there. we'll see what goes on in oakland as they try to move people out. bill: something tells me that's not going to end well. a new report revealing states across the u.s. are sharply limiting hospital stays under medicaid to as few as ten days a year to control the cost of the program. the state of florida offers the most stays, at 45 days, alaska the least, at 16. but there's a suggestion that hawaii may go down to ten. and beyond. dr. marc siegl, part of our fox news medical a team, good morning to gliew morning, bill. bill: this is something we've been talking about

three years. what's happening, doctor? >> medicaid is in trouble, it was $427 billion spent out in 2010, but with stimulus dollars running out we're anticipating a 19 percent increase by 2012. then when omabacare really kicks in in 2014 and we see 15 or 16 more medicaid patients we're going to be up to 85 million medicaid patients. the states are going to be in trouble because they actually shoulder about 40 percent of the burden. bill: up to now, they've been dipping into washington's till in order to cover their costs through the stimulus money. >> absolutely. that just ran out in june of this year. so they're in trouble. states are in big trouble. bill: you also say that 50 percent of physicians are restricting the number of medicaid patients they see? >> absolutely. bill: what's the effect of that? >> i think the effect of that is enormous, and that's a growing problem, with physicians. over 20 percent don't take any medicaid patients, close to 50 restrict, and won't see some new medicaid patients. so as the system expands,

bill, when you see 15 million more medicaid patients, they're going to have to go to the hospitals to get their care, and now, we see the headline today, the states are starting to cut the reimbursements to hospitals more and we're saying in hawaii, you can't come here more than ten times per year. what are people going to do? bill, people are chronicle ill, they can't be told only ten visit, i'm sorry. bill: i want to get to what you see as a more of a dilemma here. let me show our viewers what's happening with medicaid. the costs this year are expected to go up 11 percent, the costs for 2012 are going to go up close to 19 percent. >> 19 percent. bill: that's going to take us into a whole new category of spending. california will eliminate adult day care coverage and limit medicaid patients to seven doctor visits a year. connecticut cut the number of dental exams covered for adults in med from twice a year down to one time a year. the point is, states are looking for ways to save money. and the way they're doing it

is by adjusting the medicaid coverage they have for so many. >> they're also shifting more and more patients over to the hmo style medicaid and i looked at a report on that and doctors are not taking that,et, so you can't get away by doing that, and some of the services you mentioned there, bill, are essential services. and i feel terrible for the states, by the way. they don't have any other choice. they're going bankrupt. they have fiscal problems. bill: if that's the case, then, do you have a better idea? >> i think we have to cut medicaid from the overuse side, not from the essential services side. in other words when you're sick, you have a stroke, you have a heart attack, you have cancer, you've got to be in the hospital and the hospital has to be paid for or they're going to go bankrupt. but what about a copay, what about a bit of a deductible? why are so many medicaid patients allowed to overuse the system? and go to see doctors when they're not sick? what about all of the excess on things like wheelchairs, you know, with medicaid, you end up being able to buy a new wheelchair every two years. that kind of thing has to be looked at. there's way too much bloat in the system.

i've always been concerned and i've said it on the program before, about the overuse model of insurance. medicaid should be saved for people when they're really sick. clearly, we have to protect our poor from severe illness, but they shouldn't been able to waltz in to see me whenever they want. bill: fair points and it's good to get your reaction. thank you, dr. marc siegl from the medical a team. good to see you. martha: there is a massive hunt underway in texas now for a man that police say sexually assaulted four middle aged women, but it's their connection that is raising some serious questions in this case. wait until you hear who he is allegedly targeting. bill: also, why is america giving millions of dollars in foreign aid to china? when we owe them so much more? that's today's new outrage. that's next. >> it's stupidity. there's no other explanation for it. other than we are stupid in washington, to continue to do that. daddy, come in the water!

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bill: 22 minutes past the hour, two north carolina students under arrest after a 15-year-old girl is shot in school. police using surveillance video to find the kids after the high school student was shot in the neck. the names of jurors in the controversial casey anthony trial released today, they are now applicable. a judge ordered those 12 names be sealed for a cooling off period after the verdict. that period ended today. formula one raceing is coming to new jersey! the last was in 2007, the formula one grand prix of america, expected in 2013. i contend that race is happening every morning at about 5:45! by ms. maccallum as she tears across that george washington bridge, right? i mean, a bit of a lead

foot, right? >> martha: a little bit. a little bit. bill: i'm guilty, too, by the way. martha: well, it's going to be like monaco! people don't realize, it's like monaco. that's what they're going to find out, folks. here's another big issue for you, sending taxpayer money to china, when the united states is borrowing felony them to pay off our own debt to the tune of $1.3 trillion, okay? china, in fact, has one of the biggest economies in the world, of course. it holds 24 percent of u.s. debt, 20 percent of our debt is borrowed from japan, 9 percent from the u.k., 46 percent of the debt in other countries. that is china's huge amount of outstanding debt that it lends to other countries. so why are we giving them hundreds of millions of dollars in foreign aid? lawmakers say that's just plain nuts! >> why in the world will we be borrowing money and then turn around and giving it back to the countries that we're borrowing it from? if they have enough of a surplus to loan us money, they have enough of a surplus to take care of

their own needs. martha: that sounds like common sense, doesn't it? phil johnson, member of the foreign affairs committee, congressman, good morning. >> good morning, martha, good to be with you. martha: thank you sir. >> martha, i tell you, this is a shocking revelation, and i can tell you that the people of eastern and southeastern ohio, this is not going to sit well with them. i can't tell you how many businesses i've talked to that have had to fend off china dumping product into america at prices cheaper than our companies can even get the raw materials for and here we are, providing aid to china. it does not make any sense. >> march 1 congressman was quoted yesterday as saying, you know, china is probably just laughing, every time they get this check in the mail, it's like ooh, here comes another check from the united states of america, totaling $300 million. the question is -- this has been going on for a while, i believe, and why are we

doing it? in some ways, to have some sort of influence in china, based on this money? >> well, i think that's a very good question, and it's a question that we're going to be leveling to the state department. you know, this money goes through usaid, through the state department, it's being used for supporting or trying to change china's position on human rights. it provides some economic assistance. but more importantly, and so staggering to me is that it's providing support for environmental and green energy initiatives. now, go figure that, martha. i mean, here we are, our economy is struggling, we've got moratoriums on drilling, we're not going after our own natural resources, we have no national energy policy in america, and yet, we're helping china with theirs. martha: that's pretty fascinating, especially since the president has expressed that he was concerned that china was getting ahead of us in that particular market, in terms of, you know, cornering the market on solar panels and

that type of thing, that's one of the reasons we were supposed to be developing those countries here at home, so some of our money is going over there, it sounds like, to help them do exactly that. >> and you know, what's really concerning to me, martha, is that if the president of the united states really wanted to get america's economy going, rather than sending that money to china, if he would stand up and tell the american people and the rest of the world that we're going to establish a goal of becoming energy independent and secure over the next ten years and return to american exceptionalism, you would see millions of jobs created, and you would see industries crop up around energy production and distribution and even usage, and that's the right thing to do for america. martha: i guess, you know, to me, the silver lining in this discussion is that at least now these things are getting out there, they're being talked about and ople are scratching their heads and saying this doesn't make sense, does it. so hopefully as a result of your hearing we can cut these checks off and rip them up and stop them from

going. >> absolutely. martha: and convince the folks that there's a good reason for it. sir, thank you very much, bill johnson, congressman from ohio. bill: my home state is hurting. you just drive through the throwns and you see how significantly they've changed in the past couple of years. it's not just ohio. states in the midwest, michigan, pats of indiana, wisconsin, or missouri, or western pennsylvania, it's going to be a big, big deal come election time next year. all right, they came their baby girl was taken from her crib at night. but police say her parents are not cooperating. now, after more than a week of silence, lisa's parents are speaking out. why? >> martha: plus, a brand new report shows some good news on the housing market. boy, we could use some of that, huh? so what it means for the value of your home, and when it might start to turn around. good information on that. we'll be right back. americans are always ready to work hard for a better future.

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bill: here we go at 9:31, fox news alert on the economy, home prices just in and home prices are up and half of the major u.s.o know half of the major u.s. cities in august, but they're up like that much! gerri willis, good morning to you. >> good morning. bill: how much and what do you make of the numbers? >> 2/10 of a percent month to month isn't anything to really crow about but it is the right direction and we've had five months of those increases so it's moving the right way. if you look year to year,

it's not so optimistic because the prices are down 3.8%, to their composite index. here's what you see if you back up and dig into the numbers. we had a double-dip, i guess you'd call it a housing recession or depression, and we're coming out of that. so prices went down after the 2006 high, they came back up, then they sell again. so the hope here is that we're digging out of that right now, a glimmer of hope is the way the economists describe it. bill: we're hoping and hoping and hoping with a big old capital h. >> right. bill: this whole idea about the president talking about a homeowners' plan idea yesterday, is that enough, will that do anything? >> you know, we've got to wait and see if it actually can work. because it requires the cooperation of lenders out there. here's what it would do. if you're under water on your mortgage, if you owe more than the house is worth and you're current on your loan, that means you haven't missed a payment, you could be eligible for the program the president was talking about, what it allows you to do is refinance at the

bargain low rates. the idea is it would not only help the people in the housing market but also help the economy because folks would save about $2500 a year and they're hoping people will just plow that right into the economy. it's yet to be seen, though, if the lenders will cooperate. we've had a ton of housing programs in the past, they've not been successful, largely because the lenders haven't gotten on board. bill: and something worthy of checking in 3-6 months from now, too, to see how many homeowners are interested in even trying the idea. >> that's right. bill: we'll find out as we go down the road. gerri, thanks. what gerri was talking about was the major issue that the president was talking about in the state of nevada. nevada has the worst economy in the entire country. they've been shallacked for the past three years, the deeper the red, the more trouble for your state, the lighter the green, the better off you're doing. in nevada the unemployment rate is through the roof, national level is 9.1%, nevada is at 13.4%. well over four points higher than the national average. the number of jobs lost

since we voted in 2008, 82,000. and nevada needs relief. they need some help, and the real estate market out there has been miserable. take a look, the current home price sales, the latest report out of september has existing sales, predicted for the year of 2011, to come in just under 5 million. and a healthy economy, people by 6 million existing homes are well below that number to getting a healthy economy. that is critical to getting us back on track. 9:34 now. martha: the mother of missing baby lisa irwin, speaking to reporters for the first time in more than a week. take a look at this: >> is it true that you're getting paid to avoid local reporters? >> not at all. >> then why won't you talk to snus. >> because we're grieving. martha: because we're grieving. the 11 month old was last seen nearly three weeks ago. investigators have been stepping up their focus on lisa's parents after a cadaver dog reacted to a scent inside the house.

let's talk about what's going on in this case, mark furman joins me, former l.a.p.d. homicide de tentative and fox news contributor. good morning, good to have you with us today. so i guess the big question is what stands out to you more, the way the family is acting right now or this video that we're hearing about that pur ports to show a man in two different locations, carrying a baby on the night that this little baby disappeared? >> well, it's interesting, martha. i think that the video doesn't show much. i mean, it's pretty fuzzy, we don't know who the person is, we don't know what they're really holding. you have these witnesses and i will admit these witnesses are independent and they saw this person that's consistent, at different times. but that doesn't make it exclusive of deborah bradley or any of her conduct, because we don't know just exactly who she contacted between certain hours, 6:40 p.m. that evening to

22:30 that evening, to .400 in the morning. we don't know her whereabouts or conduct and she won't submit to a one on one interrogation with the police any longer once she changed her time lime -- timeline, so that creates a real problem. martha: you know mark, her attorneys are sort of presenting the picture that the police have been doing things in sort of a strange way, they said they were in there for something like 17 hours doing a search, they took out only a few ternlings the area they say these dogs picked up a scent of a dead body, they say why wouldn't they have taken the carpet with them, why wouldn't they have cut out a section where this dog supposedly got the scent, there's no sign they have done that. what do you think about that? >> well, the first thing is the defense attorney is going to attack anything that isn't to their advantage for their client. let's just remember this. joe tacopino represents deborah bradley and her husband. and deborah bradley is the

suspect. the kansas city police represent the victim. that is, the baby, lisa irwin. so there's a conflict there. but you can't criticize the police for being selective with evidence taken, and you can't criticize them for taking too much time and being too careful in an investigation with too many people. that's just ridiculous. if you take two detectives and you spend 15 minutes, do you find that that evidence has a lot of value, or there was a lot of scrutiny involved in collecting it? sn well then they'd have that argument. so that's ridiculous. martha: let's go back to this video issue for a moment. you have three different people who claim they saw a man walking in the middle of the night, the same night that lisa disappeared, carrying a baby dressed in only a diaper, and there are separate witnesses that have somewhat the same story in this, then there's a dumpster that was not too far from the house and reports from deborah bradley's side of this whole

thing, that she was shown burnt clothing as part of this investigation at one point, so you link all those things -- these things together in your mind and the amateur, saying well, maybe someone took this child, burnt the clothes in the dumpster for some reason and carried this baby and diaper off into the woods because they're a crazy person and they wanted this child. >> well, i think we could actually consider those possibilities, and the police do consider those possibilities. but you also have to consider this. if you have a crazy person that goes into that home and takes that baby and does all these things, how is it possible that deborah bradley somehow can't pass a polygraph, she forgets what time she puts the baby down, she wastes two weeks of an investigation, now expanding the timeline four hours, that she just conveniently forgot she was drunk, and then, you know, at the end, the cadaver dog alerts in the house.

martha: one last quick question because i've got to go. if there had been anyone in that house, if somebody had reached into the crib, there would be fingerprints somewhere, would there not, of this other person who's not normally in the house being there? >> fingerprints aren't as easily transferred as people would think, but certainly, hair and clothes fibers coming in the window, to actually get into the house, very much so. martha: all this harkens back in some ways to madeleine mccanfamy and you think about the circumstances and the finger pointing at the parents, and we still don't know whatever happened to that child. we'll see. there's the phone number for folks at home. anybody who has a tip in this case: martha: mark, thank you, as always, good to have you with us. bill: what a mystery that is, and it continues. he is a rising star in the republican party, senator marco rubio, being a top contender for a v.p. pick. but there's another job he

might be aiming for. what he told bill o'reilly about that. stay tuned. martha: reptile man, bill, to thes are cue! why animal control is investigating after an exotic animal lover came to the aid of an unusual visitor. >> we don't get a call of an alligator in the neighborhood every day. >> it is rather close. the homes there are on the other side of the pond there, so it concerns me a little bit. úy look, every day we're using more and more energy. the world needs more energy. where's it going to come from?

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martha: you've heard about a fish out of water, right? how about a cold water loving gator, who knew. richard ritchie, otherwise known as the reptile man to you and me, came to the rescue of a young alligator that wound up strand oregon, the gator had been swim ago few days in pretty cold weather and for the reptile man, watching that from the sidelines, that was a little more than he could handle! >> i couldn't get any sleep, saturday night. all i could think about was i need to go catch this alligator. i felt bad for him, cold weather and all. i could tell he had been

pestered, he was pretty upset and 15, 20 minutes later he popped up in front of me and i grabbed him. let me tell he, he was a pretty strong animal, he was trying to bite. martha: here, gator! ritchie tried to bait the gator with chicken but he said it was too cold to eat, so i took him home. poor guy! bill: speaking from one of the hardest hit in the housing markets in the country, president obama telling supporters from las vegas his new mortgage plan will cut payments for struggling homeowners. the president does not need congress to start the program, and here's one homeowner reacting to the idea. >> we can't wait for an increasingly dysfunctional congress to do its job. >> has he done enough to deal with foreclosures? >> i don't think so. went from up here to like down here. it's been kind of hard for everyone. bill: there's the hole owner. the first homeowner owns the white house at the moment. martha: a very nice house.

bill: even democrats in congress saying the plan is not nearly enough, bob beck sell a former democratic campaign manager, andrea tantoras, cohost of "the five". we can't wait, andrea! how vulnerable is this president on the issue of housing, going into an election year? >> well, very vulnerable. housing makes up about 20 percent of the u.s. economy, so it's a very big deal. but look, his plan is purely a political stunt. i mean, if you think about this, these are just mortgages that are freddie and fannie mortgages and the people who are in dire straits are not people with freddie and fannie mortgages, so if you look, he announced a plan in nevada, it's a very politically important state for him to win, it's also a state that's been hit hardest by this housing crisis. bill: and remarks 60 percent of the homeowners in nevada are under water! >> yeah. bill: they owe more money

than the home is worth. it's just astounding. >> this won't help them. bill: it will not? >> it will not. bill: bob, will it? >> yeah, the thing that amazes me, whatever barack obama does, no matter what it is, as we approach this election year, republicans find a way to say it's a bad idea. let's assume that 50,000 get helped by this, those are 50,000 people that stay in their houses. the people that qualify for this have paid mortgages at high rates and the banks out to renegotiate because let's put it this way, our taxpayer dollars failed -- bailed those banks out, it's time for the banks to start doing something. bill: is it only republicans cracking on him? >> no, there's a few democrats. bill: a democrat from california, baby step, they're not getting it. >> wait a second. what they want is a bigger program, which will require a vote of congress and this congress is going to give him absolutely nothing. let's remember this congress is following mitch mcconnell's lead when he said my job is to keep president obama from getting a second term. that's what this is about.

bill: cardoza is not even running for reelection because the territory is so tough. he says the proposal might hope 800,000 home own e. so he says the problem is 11 million, andrea. >> 11 million. i know bob is upset that congress is in place, it's the way the founding fathers designed it, but look, the president can't keep circumventing congress, either. look, the government did fix a lot of the problems that got us in this mess, but once again, the government went too far. when you have your buddy, barney frank, bob, even saying the government went too far in its restrictions and regulations, bill, that's why people can't buy houses, and the hardest hit are the minorities. the banks are being pressured to loan now but there's all these regulations that require all these bells and whistles. bill: and how many will loan under this plan? >> get the bureaucrats out of the way. >> here's an idea, why don't they pay back every dime they owe the taxpayers and

go under? let the banks go under. bill: to your point, i thought the republican candidates last week blew a huge opportunity in that debate in las vegas. they are in the state that had the highest level of unemployment in the country. >> right. bill the highest mess, with foreclosures, and real estate. >> right. bill: and directly to nevadans, they said nothing. >> that's right. bill: that was a huge missed opportunity. >> they also weren't really asked about it, either. bill: you know what, and remarks i think that's the moment where you volunteer it right off the top. talking to people of las vegas right now. >> but they did talk about jobs and that is the in the one issue. the reason people are uncertain and they're scared to buy house social security because they don't have jobs to pay for these mortgages. that's the number one critical issue. bob, you got to admit that, is the number one issue. bill: i got to run. >> it is the number one issue, but bill made a point here. you don't have to wait for be asked -- to be asked a question. this is in a state where people are under water with

the mortgages. if you can help them, why not say something. the reason they don't, republicans don't have a single clue about what to do about it. bill: bob, andrea, see you at 5:00. see new the cage, all right? >> martha: let's go to locationland, california where we're watching this scene this morning. this -- to oakland, california where we're watching this scene, they're starting to knock down the occupy efforts, and they're dragging away the the tents that have been there for weeks now. we're told people have not been resisting arrest, they want to clear these folks out. they say it's just getting -- that it's illegal, the spot they're in, and the conditions there are getting untenable. so we're going to keep a close eye on this oakland situation, and we're going to see where this goes, because this is all across the country, the standoff, that they're really trying to handle as well as they possibly can, and it's a delicate situation. bill: you can tell the authorities are trying to wind it down and wind it down well, but we'll see whether or not it ends that way. all right. in a moment the hunt for a serial rapist and police say the victims all share one

common bond. the chills details from are now public, in a moment. martha: we're waiting for a big moment from this man right here, rick perry, presidential candidate, getting ready to unveil his plan now. you heard of 999 from herman cain and now there's something with 2020 coming from rick perry. that's coming up. >> they're not interested in 999. what they're interested in is flatter and fairer. >> right here in nevada, you got eight plus percent. you want 9/10 on -- 9 cents on top of that and 9 cents on a new home or 9 percent on a new home, 9 percent on your social security? 9 percent more? i don't think so. herman, it's not going to fly.

martha: people in texas are on the lookout this morning, cops reporting a disturbing series of sex attacks on

alumni of a local sorority and warning that other groups could be in canker -- danger as well. rick leventhal in our newsroom, what are police saying about this attacker? >> reporter: apparently the suspect has gone to great lengths to conceal his identity but police say they have dna evidence and a good physical description that may lead to his capture, cops say the surveillance video may show the man is responsible for all four attack, a heavy black male in his 30s or 40s, weighing between 275 and 300 pounds, 5-foot # to 5-foot nine, short hair, a shaved head and distinctive swaller in his walk, all four victims assaulted between 9:00 p.m. and 4:00 a.m. while sleeping in their homes in the north texas cities of plaino, corinth and coppell, all black female necessary their 50s, 60s, all members of the delta pheda sigma sorority. >> we haven't gotten evidence of the fact that this group is being targeted but it's our belief they

are, and we want to approach that and address our concerns to this group so that they can better protect themselves. >> what police don't know is why this guy is targeting members of this sorority or how exactly he identified the individual victims. martha: what advice are bo they going to give to these other women? he says they're trying to make them aware of what's going on. >> members of the delta pheda -- delta beta sigma sorority are told not to wear the jackets or pins with their insignia and women are encouraged to stay with a friend until this is resolved, the sort released a statement saying we encourage members to be alert, remain aware of surroundings and call police if they see anything suspicious or feel threatened. anyone with information is urged to call the police in plaino, corinth or corell tipline. a bizarre case out of texas. martha: and these women are

well out of college. tieing this to a sorority is strange. >> reporter: obviously, they're looking hard for this guy. bill: how about a check of the markets? today, we're off 90 points, investors watching europe, trying to settle on a bailout deal and don't have it done yet, 1.4 trillion, they're talking about. will that do it or is that a bandaid? we'll check on the markets throughout the show. stay tuned for more on that. martha: it is a debate that has started to rage in the halls of washington, should anthrax vaccine be tested on healthy children? why some people think that's actually necessary. that's coming up. bill: it was the spot where president obama accepted a democratic nomination, three years ago. >> tonight, i say to the people of america, the democrats and republicans and independents are cross this great land, enough! this moment. this election is our chance to keep in the 21st century

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try a 28 count prevacid®24hr free. see prevacid®24hr.com for offer details. martha: and a fox news alert this morning. we have some brand new poll numbers on the cain train and his competitors. seems the cain train is right on track this morning, folks. take a look. this is the brand new cbs/"new york times" poll of likely republican primary voters from coast to coast. these numbers i should point out were taken after the last debate. so you've got herman cain at the top of this group, 25%. mitt romney is at 21%. they were tied just a couple weeks ago. take a look at rick perry down at 6%. at the bottom of the list here. one of the things getting attention in all of this morning from herman cain is rather odd sort of political ad that is out. we're going to play that for you. we'll talk to brit hume about that.

get his reaction about 10 minutes from now right here in "america's newsroom.". we are also waiting for rick perry because he is about to lay out his plan to overhaul the taxes, the whole tax reform system is what he has on his plate this morning. the governor of texas will speak live in a state that is very important to his presidential hopes and that is south carolina. he will be there this morning. it his second visit there as he gets ready to move forward with the race of 2012 that he is how we move forward in a brand new hour of america's newsroom on a tuesday. i'm martha maccallum. bill: i'm bill hemmer. last hour flew by. martha: it sure did. bill: we'll see what is in store now. governor perry is expected to call 20% flat tax on every american. trying to stick to a simple message we're told. martha: obama re-election team called it a far right vision. that came out a moments ago. that is not a big surprise. carl cameron joins me now. he is in columbia, south carolina.

rick perry is fighting really hard to get on the map here, carl. >> reporter: that's right, martha. rick perry has to get some more momentum building. by rolling out a bold tax plan he hopes to do that. this is simplification flat tax option. would allow you to do the taxes on business card. the kind of thing that would fit in your pocket. it would save $480 million in simplification cost. let's walk through what perry's plan would be. for families earning up to $500,000 a year there woe be optional flat income tax. stay with the existing irs plan if you wanted to. this would be option. deductions for charitable giving, mortgage interest and state and local taxes and 12,500 for individuals and independents. that is the core of it. perry would cut the corporate income tax however, to 20%. he would eliminate taxes on capital gains, on dividends. he would eliminate so-called death tax or estate tax on

inher tanses and alternative minimum tax which has always been a problem with the federal budget. own entitlement reform he is going to what he referred to as the third rail and what he referred to of to as ponzi scheme. end taxes on social security benefits that would create cash in pockets of seniors. he would create private accounts so younger workers opt out of the social security program and have the ability to manage their own retirement funds. perry says he can balance the budget 2020. basically at end of a 10-year budget period he would assert this is lead to balance budget. he wants to cap federal spending to 18% of gross national product. that translates to 20 a trillion dollar spending cut. where he comes up with trillion dollar spending cuts is one of the things we'll chat about today. martha: apparently super-committee would like to find that out. thank you very much, carl cameron in south

carolina. we should mention rick perry will be bill o'reilly's guest tonight for two segments. that will be interesting to watch bill and see what he has to say to mr. perry as he tries to get back into the game here, bill. bill: indeed. meantime a crucial endorsement for mitt romney on the road to that nomination. former new hampshire governor john sununu jumping on the romney bandwagon. former bush chief of staff. considered one of the most prominent republicans in the granite state. first in the nation primary. >> the president had to get in office had one job to got e get done immediately. that was turn around the economy. now 1,000 days later he is still talking about the stimulus plan. we look at the first stimulus, did it work? >> no. >> did obama care work? >> no. >> did the president's plan for cap-and-trade to raise the cost of energy work? >> no. >> did card check, taking away rights of american workers did that work? >> no. >> did promises to raise taxes work for the american people? >> no. >> has president obama been

able to turn around the american economy? >> no. >> you sigh folks, president obama has simply not worked and american individuals across this country recognize that. bill: romney leading in the polling in new hampshire. former governor of nearby massachusetts. he is consistently holding a double-digit lead over his rivals in the granite state, martha. martha: well, couldn't him out of the veepstakes. florida senator around tea party favorite marco rubio saying he has no interest in being number two on the republican ticket. boy there has been a lot of talk about that over the last several months. here he is explaining why to bill o'reilly last night. watch. >> i want to get straight. so no matter who the nominee is for the republican party, if they say, i'd like you, senator rubio, to consider being vice president you're going to say absolutely not. i'm not going to do it? >> i'm going to say i've been here in the united states senate for a year. there are things i want to finish here. i really want to accomplish things. >> it is off the table? >> it is. it is. martha: bill said he looked

right in his eyes and said he was off the table. some experts believe rubio may run for president himself though in the next few years. certainly he has been a rising star in the republican party. bill: now the man who occupies the white house. the west coast trip continues, taking him to denver this afternoon for president obama. his second visit to the mile-high city in a month time. less than a month. colorado, was a flipper back in 2008. a flipper because it changed back in 2004 when john kerry was going head-to-head with george bush in colorado. this was a state that went republican on the map. on the map all the red is republican. all the blue is democrat. colorado from 2004, george bush and john kerry not. of a battle. five points for george bush over john kerry. then what happened in 2008. this is a key battleground state and president obama had no problem with john mccain winning colorado by nine points. so now he is back in colorado now, with a mixture of politics and policy.

steve centanni at the white house now. good morning, steve. what will the president be doing there in colorado? >> reporter: well, bill as you mentioned this is a trip, this three-state swing you there the west is a trip that combines private fund-raisers with public policy events and so the president has both things on his agenda in both california where he is right now he will have a fund-raiser in downtown san francisco. later on today when he heads to colorado he will hold a fund-raiser at the staples center in denver. the focus continues to be the difference between the president and the gop on creating jobs and fixing the economy. yesterday while the president was in nevada, he pointed to the housing crisis, saying it may take some time for things to get back to normal. >> but that's no excuse for inaction. that's no excuse for just saying no to americans who need help right now. it is no excuse for the all the games and gridlock that we've been seeing in washington.

people out here don't have a lot of time or a lot of patience for some of that nonsense that has been going on in washington. >> reporter: so the president has a busy schedule of fund-raisers. tomorrow he does have a policy event in colorado where he will talk about student loans. meantime today in california before heads to colorado he is taping an appearance on the tonight show with jay leno. second time as a sitting president he will be appearing on that show. it will appear later on this evening. back to you, bill. bill: thank you, steve on the north lawn of the white house. steve centanni. martha: well a turning point in the michael jackson trial. the prosecution has rested. the defense is going to start to make their argument today. adam housley is live at superior court in los angeles. adam, what are we sensing in terms what the defense will be here? >> reporter: a lot of people have been actually debating that fact for a while or debating that possibility, for a while, martha. whether the defense will go after they believe michael jackson ingested the

propofol into the system orally. whether he may have taken some other drugs. there is lot of speculation out there by legal analysts. so far what they have done they laid out the very beginnings of their case. they started this yesterday. first of all it was about the timeline. how they believe dr. murray didn't wasn't 30 minutes from 911. they were going through those kind of timelines with detective how that number, that 30 minutes could be off by a few minutes actually. then they went from there to the medical practitioners. with two different people talking. first one was a man named dr. metzger, someone who has known michael jackson for a long time. at first seemed like a prosecution scored a point during cross-examination when met ger said he would never give anyone, any patient intravenous drugs outside of his office. >> did you ever give michael jackson propofol? >> never. >> is there any amount of money that would convince you to give him intravenous propofol in his house? >> absolutely not.

>> reporter: metzger would also say jackson continually asked him for the juice, meaning propofol. the defense trying to show that jackson was going to doctors, asking for these drugs and had been given them before, martha. that this was nothing out of the ordinary. we do expect to hear from more defense witnesses today. a lady who was a nurse practitioner giving him vitamins intravenously. she is on the stand and we expect to hear from the other witnesses later on this week. back to you, martha. martha: she had fascinating things to say, this nurse. we'll get more on that adam thank you. bill: they're moving through the trial. martha: done in a few days with the defense. >> that's right. political ads, so critical aren't they? have you seen the latest herman cain tv spot? >> we need you to get involved because together we can do this. we can take this country back. ♪ .

bill: ah-ha. what is going on there you wonder? brit hume straight ahead on that. we'll talk to brit. martha: we sure will. rick perry's tax pitch, will it jump-start his campaign. we'll talk to larry sabato about that. bill: a haunted hayride that truly scared the day lights out of one group. we're not make that up. >> is anyone injured? >> i don't know. people are screaming. >> okay. >> we need somebody here. >> okay. >> there are is lot of people. >> okay, we're on the way. >> hurry.

bill: getting an update right now. this out of oakland, california. this is part of the occupy wall street crowd in oakland, california, outside of city hall. the police gave them a warning to move out. listen to the megaphone. >> immediately leave. if you do not do so you may be arrested or subject to arrest.

bill: well, apparently they arrests dozens. that is the report we're getting out of oakland, california. they were in riot gear, the police were trying to clear out the anti-wall street protesters from the plaza in front of city hall. so dozens taken away and put in jail for now. it is 7:15 local time. we're going to follow this. see whether or not the police clean it all up or not. listen to one of the protesters out there from a short time ago. >> this is an illegal action. it is 6:00. we have a right to be here. i have a right to demonstrate my first amendment rights at any time, place or manner. there is, we're not camping here. this is a demonstrate. there is big difference. camping is recreation. we're undergoing our first amendment rights. bill: they were yelling cops, pigs and murderers apparently. the bulk of the arrests have been completed two hours ago. we'll see where that goes in oakland. that will go across the country. we'll have to manage it somehow, right?

okay. martha. martha: presidential candidate herman cain jumped solidly into the top spot in a brand new poll that couple out this morning. look at the very latest numbers about. this comes from cbs-"new york times" polling. cain leads romney by 4%. hes that 25% to 21%. look at newt gingrich climbing into double digits. a lot of people thought he had a pretty impressive debate performance last time around. paul at 8% and perry at 6%. poll comes as bizarre new web add started to surface. it features mccain's chief of staff. watch this. >> we have run a campaign like nobody has ever seen. america has never seen a candidate like herman cain. we need you to get involved because together we can do this. we can take this country back. ♪ .

i am america, one voice --. martha: i'm america and the puff of smoke goes right into the camera. then you get that nice flow, herman cain smile at end. whole thing to top it off. brit hume is with me right now. fox news senior political analyst. brit, what do you make of this? >> sort of a metaphor for the cain campaign. you can never quite figure out what the guy is up to. if he were a conventional candidate he would be campaigning in iowa and new hampshire and working feverishly to raise money to do so. instead he keeps to a travel schedule at times more designed to help him sell his book than it does to help him get nominated for president. the ad, i don't know what they think they can accomplish. only a web ad. might not see the light of day many places. sheer oddness means it is getting played here on fox. what you get out of having some miscellaneous

middle-aged guy smoking a cigarette and saying you're the right candidate is, is mystery to me. very clear just. martha: certainly is. as you point out we're playing it here. other folks are playing. you look at it what is this all about. >> what up? martha: exactly. let's talk about herman cain though. you saw the recent poll he was at 25%. i checked the dates to see if it was after the last debait. a lot of people felt he it might suffer. you were among them. karl rove was among them. herman cain says karl rove is picking on him. >> if you're running for president you don't want to get into a fight with karl rove. that makes no sense. the thing to watch on that poll, martha, and i always been a little wary of "cbs news"/"new york times" poll. plus or minus 4% margin of error. you see at bottom of the screen. thee creditly romney could be 25, cain ad 21.

martha: they're still tied at top spot. people are surprised he is hanging on as well as he is. >> there is no doubt there is very severe misgivings among the republican electorate which is generally conservative about mitt romney. conservatives are not convinced and haven't been for a long time that romney is one of them. it put a ceiling on his standing as number one choice in the polling. so, you know, herman cain right now is the beneficiary of that. how long that will last remains to be seen but we are rapidly, martha approaching the time when, see, cain is benefits from the fact that the campaign is really been about debates. and the debates, level the playing field to give the longest of long shots just an equal footing equal billing with the strongest front-runners. so you can, you can thrive in that atmosphere. we're getting close to the time where you will need organization. you need to turn out the vote. people will be voting soon. you need to campaign.

you need to have advertising up in a lot of states. martha: exactly. >> and at that moment it will be become more difficult for candidates who haven't built that kind of infrastructure and done the traditional kind of campaigning to maintain their standing. martha: it will be all about iowa very shortly here. >> yeah. martha: talk to me quickly about rick perry. he has impressive folks that join his group. joe allbaugh, ran giuliani's campaign and more notably ran bush's campaign back in 2000. what do you think about the moves perry is making here, some pretty impressive ones? >> perry jumped into the race, by the very fact of his perryness and his tex is a record or his state's record he could, that would carry him forward. it turned out not to be the case. now he is beginning to do things he probably should have done a long time ago. he is trying to dig himself out of a pretty deep hole he has gotten into. this flat tax plan is an interesting plan. it's a big idea. it brings now, you know, a real contrast with mitt romney whose ideas on

taxes are pretty tame compared to this bold plan perry has, compared to 9-9-9, herman cain's plan, compared to the program that newt gingrich outlined. perry is now beginning to get into some substance and he has gotten some substantial people to join him. i still think he is it in a deep hole and may be hard for him to climb out of it but these are the kinds of things you need to do. you need an issue to talk about. something republicans care about and taxes is certainly that. this may be a new start for him. martha: big moment for him at 11:00 with the flat tax. great to talk to you, brit. >> thank you, martha. bill: end of our hour coming up here. hear is the dilemma now, should we test our children on a vaccine in order to protect them against a future bioterror attack? the doctor weighs in on that in a moment. martha: michael jackson's lawyers are getting the doctor ready for his defense. will his words help or hurt? >> i've never seen nothing like this.

go. it's amazing. he's the greatest entertainer in the world.

bill: there's a federal health board meeting this week to talk about testing an anthrax vaccine on children. it has already been tested on millions of adults and considered safe but scientists are still unsure how safe and effective it would be for a child. dr. steven garner with new york methodist hospital to talk about this. good morning to you. >> good morning. bill: we're raising flags talking about this you don't like this idea. why not? >> i don't see any clear and present danger for anthrax. hard enough to parents to give vaccines for measels. stuff we know that. can you imagine something to get them to take this? bill: i'm trying to imagine.

why is it considered if it is such a farfetched idea? >> i think government wants to prepare for any event wallty to they're not caught off-guard. let's test it in kids. the problem where is the anthrax coming? not that easy number per one to get it all over the place as people thought originally. we don't even know if kids, if it will work. bill: 2.6 million adults. check that, 2.6 million in the military. >> many of them have been tested. bill: tested and administered the vaccination. >> 100,000 to 2,000 serious effects knew neurological or autoimmune. like any vaccine has complication is. bill: this is theory? >> where is anthrax coming from the kids? we did have episodes. but they were local. localized to people in offices an envelopes. we haven't seen it spread over large areas. if it did come you can treat with antibiotics. if you treat people with

antibiotics right away they get better. bill: cipro. >> cipro or two types of antibiotics. how do we get to people fast enough. should there be an attack. bill: have we, for lack of a better word, have we experimented on children before when it comes to vaccinations? >> imagine, yeah, well for certain vaccines there is clear and present danger, measels, ruble last, mumps we tested it to make sure it is safe. that is done it. that is different from great unknown theoretical risk. why not do the plague? pick out other biologic weapons? bill: what the article points to the h1n1 scare. that turned out to be not a lot of much, did it? >> no, it fizzled out. we need a universal vaccine take more than one -- every year they go to the flu vaccine. people are working on universal vaccine. that is what we should have for kids. bill: we'll see whether they work on this or approve this recommendation.

thank you. stephen gardner here in studio. >> nice to see you. bill: martha, what is next. >>. martha: we're minutes away from getting the details of rick perry's plan to overhaul the united states tax code. is it the launch of perry 2.0 as some folks are calling it today? we'll talk to larry sabato about that. and tough to get cold feet in the desert. mother nature tried to keep these two from saying i do. best video ever the day. we'll be back with that. ♪ . medicare. it doesn't cover everything.

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use promo code: norisk. plus get this document shredder, free! but only if you act right now. call now! lifelock service guarantee cannot be offered to residents of new york. bill: we are only a few moments away from what will like he be the headline of the day in politics. reublrick perry set to unveil his flat tax plan in the key state of south carolina. larry sabato is with me now. sir, good morning to you. >> good morning. bill: listen to perry from saturday in iowa. this is kind of a primer for what we'll get in a few minutes here. roll this. >> it starts with scrapping that 3 million words of our current tax code, throw it out, get rid of it. [applause] >> start over with something simpler, something called a flat

tax. i want to make the tax code so simple that even timothy geithner can get his taxes in on time. that will be pretty simple. [applause] bill: i'm sure they liked the line about timothy geithner in south carolina. speaking of starting over on taxes, is this helping him to start over his campaign? >> absolutely, bill. it's a do over. it's the big do over for rick perry. we all know he hasn't done well in the debates. he went from frontrunner. he's got a lot of money. now he has a key endorsement. mitt romney got the best person in new hampshire, former governor sanunu but rick perry has got even steve forbes. and steve forbes 1996 campaign for president was all about tax reform, and the flat tax. republicans loved it. there is a fever for tax reform. we've heard of cain's 9-9-9. and now we are going to get rick

perry's counter to 9-9-9. bill: he's going to do interviews. he'll be on o'reilly. he's running his campaign in iowa, he's taken on extra staff. you can see what he's trying to do with the positions here. what does he need on behalf of mitt romney and herman cain if that is the case, professor? >> he needs for cain to continue to be criticized and scrutinized as he is being, and that, perry hopes will cause cain to deflate. for mitt romney he needs for mitt romney not really to reply to the cain and perry tax reforms programs. he wants, that is perry wants to characterize romney as the defender of the status quo. that won't sell with republicans. they already have some doubts about romney. that is the ideal situation for rick perry. remember, though, he's depending on a series of policy speeches and television ads to counter the debate impression.

it's not necessarily true that this will work. we'll see. it's his best chance for a do soever. it's got to work for him, or he's probably cooked and done. bill: cooked and done if he doesn't see real results, you believe? >> if he does not see results from this series of policy speeches, and tough television ads that they are going to be rolling out, mainly aimed at romney -- look we are getting ready to start. bill: i understand the bar is set very high based on that evaluation. "washington post" would counter that. they say history major advantages, a record of winning tough campaigns in texas, which is true as governor and lieutenant governor before that. grass root republicans not backing romney and $15 million in the bank he still has to spend, that is strong. >> yes, all of those things matter when they are poured into this new plan, this do over of perries. give rick perry his tkaourbgs he's never lost an election. romney has lost an election.

cain lost an election. gingrich lost an election. most of these candidates have lost election. you can learn a lot from losing elections. rick perry has never lost an election. if he does it he intends that this tax program lynn sure that he doesn't. bill: go and talk to mitt romney about what he's learned over time. professor, thank you. larry santa barbara doe from the university of virginia. martha: there are calls for transparency from the white house after three american citizens were killed by u.s. air strikes overseas. american-born radical cleric anwar al-awlaki was taken out in yemen along with his 16-year-old son and critics are requesting legal memos that authorize those attacks. our chief intelligence correspondent catherine her hreupbl joining me from washington. why has the death of anwar al-awlaki's son become such an issue. >> reporter: the american born son of anwar al-awlaki was killed in a drone strike in the remote part of yemen nearly two weeks ago. the death of a teenager is

raising new ethical questions about the controversial drone campaign. this was a video of anwar al-awlaki's teenage son born in denver, colorado in 1995 was shot in the yemen capitol last spring as part of an gone og investigation into the boy's father and the new generation of recruits al-qaida 2.1. initial reports described the son as a 20-something militant with al-qaida he was actually 16 years old and there is no public evidence he was a member of the al-qaida network in yemen. >> what can you tell us about the death of anwar al-awlaki's son in yemen and whether or not it was the result of a u.s. strike. >> i'm going to take that one. i'm not sure where we are on that one. >> reporter: virtual silence here in washington on the death of anwar al-awlaki's son. a fox sent a follow-up email to the state department after that question asking whether they agreed that anwar al-awlaki's son was not the intended target of that u.s. strike and we have yet to hear back from them martha. martha: very interesting. what is the status now of the legal memo that authorized the

killing of an american by the cia? >> reporter: well there is no timeline to release the memo which laid out the legal just my indication for the cia operation that killed anwar al-awlaki despite calls to make it public. here is the most recent response from the white house spokesman. >> do you confirm the existence of the memo and lit be released as senator feinstein has requested? >> bill, as you know i'm not going to discuss matters of that nature. i can simply say as a general matter-of-fact that mr. anwar al-awlaki was an operational leader of al-qaida in the arabian peninsula. >> reporter: this is a mugshot for anwar al-awlaki you should see it in just a moment. he lived in the united states for 21 years and had several run ins with law enforcement including an incident for soliciting a prostitute. we are now hearing from the former attorney general alberto gonzales says we have to be more transparent because clearly the u.s. president will have to consider putting more americans

on his kill list in the future, martha. martha: this is a whole interesting other chapter that you've touched on a lot in your reporting and writing. thanks a lot. bill: he's still dead, though. martha: that would be the case. bill: unfortunately for those who aspire to be like him his words and his mission lives on on the internet, because he was proficient when it came to the web. martha: certainly was. bill: prosecutors calling their final witness. now the defense makes their case in dr. conrad murray's trial, and they are about to paint a very sad picture of michael jackson. martha: stick three dozen people on a flat-bed trailer and put a dunk driver at the wheel and you've got a very scary haunted hey ride, folks. >> the hey wagon flipped over and there was a bunch of people in it. >> was anyone injured? >> i don't know there are people screaming, we need somebody here. >> okay. [ male announcer ] for fastidious librarian emily skinner, each day was fueled

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bill: breaking news on the economy -rblgs i wish it was better, it's not. consumer confidence is back to a level that we have not seen since march of 2009, unexpectantly dropping lower. the lowest level in two and a half years. consumers are concerned about the jobs and income prospects. also in data we got last hour u.s. home prices were virtually unchanged in august. they went up .2%, which is kind of a wash, right? i mean if you were abetting man it's a bit of a push. martha: this is happy. keep going, bill, got any more for us? bill: i've got plenty of stuff over here. lowest level since 2009 when it comes to consumer confidence. right in time for the holidays. now you're up to date.

[incomprehensible. martha: that is so eerie isn't it? that is michael jackson under the influence of some drug, most likely the propofol that we've heard so much about. now a nurse practitioner is set to take the stand in the michael jackson manslaughter trial. defense attorneys for dr.~conrad murray are trying to prove that the pop star was desperate for sleep, and that he was eager for these drugs, and the authorities, of course, say that they believe that those drugs killed him, and they are going after the doctor that they believe administered them. before they wrapped up their case yesterday the prosecutors got an interesting admission from one of jackson's physicians, listen to this. >> did you ever give michael jackson propofol? >> never. >> is there any amount of money that would have convinced you to give him intravenous propofol in his house? >> absolutely not. martha: boy, there were very interesting moments yesterday. we've got a lot more to come. joined by tamara holder, criminal defense attorney and a

fox news contributor. and joey jackson who is a former prosecutor. welcome both of you. it's fascinating to me as you look at the wrap-up of the prosecution, basically they have two witnesses, this cherilynn lee, and a doctor for jackson for a longtime, dr. allen mets ker. they said we cared about him so much, he wanted these things and we refused to give them to him. joey. >> not good. what ends up happening in the cases is the prosecution follows this theory, that is the jury remembers what they hear first and what they hear last. on the issue of what they heard last you hear dr. shave ever shaffer talking about the egregious violations of the the standard of cair. you hear him talking about the pa lorazapam in the stomach. you have defense witnesses supporting the prosecution theory. you have dr. mets ker saying, no

i didn't give him propofol, there is no amount of money you could give me to have me give him propofol. i certainly would not give it to him outside of a hospital setting. you have the nurse practitioner, miss lee, what does she say? although she lends credence to the fact that he was desperate she said she warned him that propofol was dangerous and she would not give it to him. not good for the defense. martha: one of the things, tamara that the defense appears to be planning to go for here is that this concert that was coming up was so important to him and he was going to loose a lot of money according to the contract if he wasn't able to perform these 50 concert dates. i guess that means that they are going to argue that he was given this stuff because he needed to sleep an didn't want to loose money in the contract? >> well, yeah, i think that when the defense is going to do here is they are going to plant the seed of doubt and get out. they are going to keep this so simple. they are going to tell the jury that there are many other ways that michael jackson could have

tkaoeufpltd it coul died. it could have been from sleep deprivation, it could have been from the other drug and use of propofol. there was no specific proof that it was actually the propofol and the neglect. all these violations that joey is talking about, these are true, and i don't think the defense is denying that, but that doesn't mean that neglect actually rises to the level, or ethical violations rise to the level of involuntary manslaughter. martha: the other thing that strikes me as you read through all of this is how much michael jackson wanted this stuff. this isn't a situation where somebody came in and injected him with something and poisoned him to death against his will. all of these people are building the case that he was trying all sorts of avenues to get this stuff and get it into his body. >> even if we concede that's true and camera actually makes the point that the defense must make here. even if we concede that that is true, martha. what the argument from the

prosecution is if there was selfadministration of this drug propofol they will argue that it was dr.~conrad murray's inattentiveness that led to that selfadministration. that is grows deviation from the standard of care and you still have involuntary manslaughter. no matter how desperate he is to get this tkrurbgs the fact that the doctor leaves him unattended so he can take it is problematic. martha: what did they say was the official cause of death in this case? >> propofol intoxication. martha: directly to the propofol, that's what i thought and i wanted to confirm that for folks at home. the question isn't really in my mind whether or not he took it himself, but it's whether or not it was administered to him by a doctor who broke the law in administering it to him. >> right, one of the problems is, martha is that the defense in the preliminary hearing brought up the theory that michael jackson swallowed the propofol when he stepped out of the room. oftentimes in a preliminary hearing it's in the very beginning of a case and you can make allegations that may be aren't necessarily -- or they

don't pan out if you will. now the defense said while the prosecution was putting their case on, no, we're not going to argue that michael jackson swallowed the propofol. >> they've backed away from it. >> now so if it wasn't the neglect by dr. murray and it wasn't an overdose by dr. murray what was it? how is the defense going to prove something else? it's the prosecution's burden but the defense has to show something else. >> they better work awfully hard, tamara. martha: this case is getting rile, rile interesting. joey, tamara thank you very much. bill: we should be going on verdict watch some time real soon. jenna lee is coming up in eleven minutes. what is "happening now." jenna: presidential candidate rick perry is going to unveil his economic plan for the nation i. know you've been talking a lot about that. the breaking details ahead for you. also, why is our country dismantling its most powerful nuclear bomb today. it's happening right now. we'll tell you more about that. is the world series in saint

louis a savior. we'll tell but that. go rangers. i married a texan, i have no side. bill: the verdict had emotions running so high the judge sealed the jurors' names for a cooling off period. months after casey anthony was found not guilty of killing her little girl, that cooling off period is now over. [ wind howling ] [ technician ] are you busy? management jt sent over these new technical manuals.

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halloween hayride with a suspected drunk driver behind the wheel and nearly 40 people were tossed out of the trailer. haystacks flipping on their al-qaida and passengers flipping on the ground. the driver had open containers

of alcohol and refused to take a sobriety test. >> is anyone injured. >> i don't know. people are screaming. we need somebody here there are a lot of people. >> we are on the way. martha: at least 28 people were injured. mr. halloween. bill: texas ranchers are getting some high-tech help keeping that you are land safe from smugglers. the state's department of public safety is asking them to buy surveillance cameras. kris gutierrez live at the austin command center on america's third war, what is happening. >> reporter: the border cameras aren't new. here what is different about these cameras. there is not a live video stream that must be constantly monitored by people in this command center, for example, take a look behind me. these cameras only go off when something triggers the sensor. within seconds the image is sent here to confirm whether or not it's illegal activity.

take a look. nearly 250 miles north of mexico at a command center in austin -- >> we've had hits two days ago, four days ago. >> reporter: a steady stream of images show how well these new border cameras are working. >> we can hide them virtually anywhere, they are small, compact. we move them consistently. there is no sense trying to look for them, you're not going to find them. >> reporter: once an image is verified an email alert is sent to the authorities working along the border. >> so they can make the best choice how to respond to the criminal activity. >> reporter: during a ten-month test phase with 20 cameras hidden in several counties in south texas officials arrested more than 130 illegal immigrants. >> the truth of the matter is that is just the tip of the iceberg. >> reporter: some of these pictures were snapped on michael vickers ranch 70 miles north of the border. he carries a gun when he's out on his property and has even

taken his own pictures, proof of what he calls a bloody war. >> there is a lot of desperate people coming in here from all over the world, and quite frankly a lot of them are getting through here undetected, so these cameras are a must. >> reporter: they really are in. in fact the cameras led to another 23 arrests over the weekend. they cost roughly $300 each and the state plans to have 400 more up along the border within the next four months. bill: thanks. austin, texas there. martha: the white house promised transparency, but now some new reports show that workers are being told to lie about some public documents. we are going to get into the details of this. tell you what is going on, why this might be happening. we'll be right back. hi i'm barbara eden

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