e-trade. investing unleashed. jenna: thanks for joining us, everybody. jon: "happening now" -- "america live" starts right now. megyn: fox news alert. 40 minutes ago a group of six republicans and six democrats walked back into the rook where they are wrestling with america's future. less than five days before the big deadline to fix the country's dangerous budget problem. welcome to "america live," i'm megyn kelly and it is friday. hours, days, weeks of intention negotiations behind them and so far nothing to show for it. now the congressional super committee will work through the weekend to try and reach a deal. the current national debt topping $15 trillion. this group has until wednesday to come up with a plan for slashing $1.2 trillion in

spending over the next ten years. all right? just to put it in perspective. if they fail or congress rejects their proposal, we are not even sure if they'll get a proposal, a series of sweeping cuts to domestic and defense spending will take effect. the super committee chair said this. >> members of the joint select committee, republicans and democrats will again gather to try to find common ground. if an agreement is not reached today members of the joint select committee, democrats and republicans will meet through the weekend. we are painfully, painfully aware of the deadline and it's staring us in the face. megyn: chris stirewalt is our fox news digal politics editor following this story closely for us. are we any closer today, chris? >> reporter: oh, i mean by calendar we are closer. sooner or later they will have to cough up whatever they've got. there is probably some package that is less than the $1.2 trillion that's been

discussed. they are going to have to essentially conjure this up at some point. you were talking about context, think about it this way, the federal government is on track to spend more than $40 trillion over the next decade. they are talking about 1 trillion, 1.2 trillion at that, they are basically at loose ends. they can't get it together. they know it will be embarrassing for them professionally and their parties if they can't come up with at least something. megyn: what can we expect? more and more we are hearing, they may kick the can down the road. they may say, here is a little something, we'll deal with everything else later. >> reporter: remember this. there is so much hype around this deadline as if the government was going to shut down or something terrible was going to happen at midnight on wednesday. you know what happens, megyn, nothing, that's exactly what happens at midnight next wednesday, nothing happens. even if a worse case scenario occurs and there is no cut, no

nickle of cutting would start to occur until january 1st 2013. we'll have another election before that and they can try and sort this out again with a different congress. megyn: you have 15 trillion national debt, and they are talking about 1.2 trillion saving just from the budget basically and over several years. it's not lik immediately, you wonder why they can't agree on anything in capitol hill. there is an interesting piece b. it was talking about we've got these reports of the members going biking together, and having the granola bars, and the opinion columnist was writing, where is the scotch? have some drinks and some cigarettes and don't leave the windowless until you come back with an agreement that how it used to be done in the good old days of washington. >> reporter: i suspect that is probably true. at we are talking about here -- we just don't have a

divided washington, we have the most divided washington probably in the -- since 75 years ago. it is deeply divided. you have the most conservative house since the 20s. the most liberal 20s since the 60s. the differences are immense. and the idea that somehow they are going to take a bicycle ride together or eat a bowl of granola and say we are going to lay all this stuff aside, that is per pros trust. the differences are very real and these folks have very different ideas about how to move the country forward. megyn: there is a reason the folks chosen were chosen they aren't necessarily known nor compromise. senator kerry brought in cupcakes into a meeting. it was like $9 a cut cake. >> reporter: you could balance the debt right there, exactly. megyn: thank you, sir. by the way the point that chris stirewalt just raised about -- we are talking about fundamental differences in ideology about how to approach our deficit and

debt will be the topic of a 2:30 special panel we are putting together. are they in there debating about $1.2 trillion or the future of america and our values and principles when it comes to spending. we'll talk about that upcoming. there are brand-new numbers out today showing americans still are very concerned about where our economy is headed. fresh fox news polls asking registered voters if they see any signs the economy has started to turn the corner. 29% said yes, 68% said no. confidence in the white house also falling fast. 56% said they would give a vote of no co confidence to the current leadership. a developing story in los angeles. we are now less than an hour away from a news conference you've probably been hearing about all morning. stunning new developments in one of hollywood's biggest mysteries, the death of three-time academy award winner

natalie wood. nearly 30 years after her drowning death after the coast of southern california los angeles police are reopening their investigation. right now we are awaiting this news conference in the sheriff's department. it is scheduled for 2:00pm eastern time, less than an hour away. we will bring it to you live, what will they say? will her then husband, rj wagner, remember him from heart to heart, or from the reverse mortgage commercials these days possibly be facing charges? stay tuned. new developments today in the penn state child sex-abuse scandal. the brand-new interim athletics director speaking to the media a short time ago promising to change the department that has been rocked by allegations a former coach molested a number of young boys. meantime for a second time that coach's home has been vandalized and now we're hearing from that coach, jerry sandusky's attorney. trace gallagher has more live in our west coast newsroom, trace. >> reporter: and remember, megyn

the key testimony in this case came from mike mcqueary the former penn state quarterback and wide receiver's coach who in 2002 was a graduate assistant and said he walked into a locker room and saw jerry sandusky raping a young boy. he told his father. his father said to go tell joe paterno, and he did. he got criticized for not doing more. he sent an email to a friend saying, he did make it stop. he told the friend, i did have discussions with police, and with the official at the university in charge of police. well the problem is, police say they have no records of ever being contacted by mike mcqueary and now jerry sandusky's attorney just told fox exclusively minutes ago that mcqueary's credibility is now in question. listen. >> i think there is a serious credibility issue here. quite frankly what i'm hoping is that if there is that the penn state wil who have been totally

destroyed by this mess will be vindicated rants at a a little stage of this process. >> reporter: he anticipates that several ever the alleged victims in this case will come forward and denight allegations. so far that is not the case. one attorney who represents an alleged victim says that his client will in fact testify against jerry sandusky. it's unclear if that alleged victim is among the eight who were listed in the indictment. sandusky has not left his home since he did that interview with nbc on monday night, and last night someone vandalized his home again. they broke another one of his windows. it's the second attack on his home in less than one week. we should also note that several board members of the second mile foundation, that is jerry sandusky's charity he began in the 1970s have resigned because they are infuriated that some of the executives on that board knew about these allegations and yet keep inviting jerry sandusky

to different banquets, different award ceremonies. one said in 2006 sandusky showed up with joe paterno, four years after paterno new about these allegations by mcqueary that sandusky was in the locker room raping that young boy, megyn. megyn: trace, thank you. i want to ask our viewers something. when you hear reports about sandusky's home being vandalized twice, what do you think about that? how does it make you feel? not that anybody is condoning that. it reminds me of bernie madotff getting shoved there in the road in new york. you say why are they doing that. then you remember the pain that these people are accused of causing, ruining people's lives. i'm curious, kelly at fox news.com. a timeline in the penn state scandal. what happened when and who really knew about it. tomorrow night be sure to tune in to the crisis at penn state.

tomorrow night at 10:00pm eastern and greg jarrett did a lot of great reporting on this. he will be joining us with a bit of a preview. he hals gets to the bottom of things from a legal standpoint. he will join us today. we want to check into the protests that got out of hand in half a dozen major cities yesterday. thousands taking to the streets across new york cities from new york to california, violent clashes calendaring hundreds of protestors behind bars and landing several police officers in the who. >> i don't know how much fits in those big guns. it was totally sprayed in my face. i was totally incapacitated for an hour. i was hit by a cop with a baton. >> we say they connectioner size their rights as long as they do so peacefully and abide by the law. unfortunately some protestors today have deliberately pursued violence. megyn: dozens of protestors are now gathering for another round of demonstrations down in new

york's zuccotti's park. jaime colby has been following this from our new york newsroom. >> reporter: for new months now megyn the protestors in cities all across the country that you talked about, they shut down bridges, streets and neighborhoods often during rush-hour. children have trouble getting to school when they have to go through these protests. thursday things did take a turn. there were physical injuries to at least two police officers, along with a struggle for regular folks that were just trying to make it to work. listen. >> we work on wall street, we cannot get to work because these ople are here in our way. do you see what is going on here? we have jobs. we work every day. we are trying to stimulate the economy and we cannot get to work. >> reporter: here is the scene today, there are fewer protestors in new york city and first responders do remain at the ready, even after those nypd officers sustained injuries when the protestors turned violent.

>> one officer received a laceration to his left hand after someone in the crowd threw a star-shaped glass object at the officer. another officer -- another protester through a liquid, possibly vinegar in the face of another officer. >> reporter: a lot of them had to go to the hospital, megyn. both of the officers along with five others required medical treatment. and the mayor says whether these protesters show up in single digits or by the hundreds law enforcement will be ready, and if they are attacked corrective action will definitely be taken. an update, the officers whose left hand was cut received 20 stitches. the other officers with the liquid have been treated and released from the hospital. at least they are doing so wa okay. i'm sure they'll be back on the job before you know it. megyn: the last time he appeared on "america live" he broke big news in the case of baby lisa

irwin. attorney joe paterno will join us live. you'll see him moments away. the footage that you've been seeing for years from dallas enhanced. a live report on new image on what new images connected to president kennedy's assassination show just ahead. is that these will come together. delicious and wholesome. some combinations were just meant to be. tomato soup from campbell's. it's amazing what soup can do. helps defends against occasional constipation, diarrhea, gas and bloating. with the strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health.

megyn: president obama should face tough questions about the solyndra scanned tkarblgs should, that coming from minnesota republican michelle bachmann. she is a candidate for the gop presidential nomination and she says energy secretary steven chu should go immediately. and that the leader of the free world himself should be called on the carpet to explain why the failing solar panel company got half a billion of taxpayer

dollars. >> the energy department made loans to friends of president obama's who are political donors of his, try $535 million for one company called solyndra. another company called light squared. another company called beacon power. another company, i think it's cigna. this is a scandal, this is your money and this is called crony capitalism. it happens all the time in washington d.c. and it makes me sick. it's the idea that people can be bought, and in exchange they use your money to payoff the political debt. megyn: congresswoman michelle bachmann is with me now. welcome to the program, we appreciate you being back with us. >> thank you, megyn always a pleasure. megyn: let me ask you about this solyndra deal. you you called it last night criminal, and you said it's gangster government. the defenders -- time and

rosenberg said yesterday, they made 38 investments, 36 went well. two didn't. one happened to be solyndra. that isn't gang tere government, that is a pretty good win/loss ratio. >> government shouldn't be out picking winners and losers in the private sector. businesses have to make it or not make it on their own. this is really a pass through entity for the president to be able to payoff his political donors. this is more than just a simple washington scandal, this is a historic scandal, because the president had his own political fund-raiser placed in the department of energy for the specific purpose of pointing to which loans would benefit his political donors. not only that, this company never showed a profit, no bank would have ever given this company a loan in the first place. and when they gave this company a loan, and the company looked like they were going downhill, then we saw that the government changed the order of priority over who would get paid back in

the case of a bankruptcy. and lo and behold, who wou get paid back? it was george kaiser eastern the kaiser people who are political donors of president obama. they would be first in line, which is a violation of the law. the federal government is supposed to be placed back. also one of the spouses of one of the people involved was work for a law firm for solyndra when they were looking at the deals. it just stings on every level. this makes watergate look like child's play, megyn. this is where the white house has to answer questions. there's emails from the white house. they have to be involved. megyn: you said that energy secretary chu should resign or if he doesn't president obama should fire him. you said that the attorney general eric holder should also be fired or resign if the facts unfolding about fast and furious prove that he approved the operation fast and furious that botched gun-running sting down in mexico.

do you really believe those two should go, or to those who suggest that's just politics you would respond how? >> it's not just politics. if this happened in my company they would be gone immediately. this is the united state government where the level of responsibility should be servants and super intend over taxpayers money should have a much higher standard. that didn't occur here in this administration. these are egregious examples, the fast and furious program and the solyndra scandal, among many others. again the one who really needs to be held responsible is the commander-in-chief, president obama. these are his appointees. this all happened under his watch, and conveniently enough he's out of the country right now, just when he's needed most to deal with the super committee. just like president obama's foreign policy has been leading from behind, he's leading from behind on issue, after issue, from the super committee, to these failed loan deals to payoff his friends, to what

happened at fast and furious. the president needs to answer. it's really the buck stops at his desk. megyn: i hate to segue with this. speaking of being behind, i want to ask you about the polls, because the "real clear politics" poll shows you now in 6th place with a 6.8 average in your presidential run. and the latest iowa poll shows you in 6th place as well with 5.4%. i want to ask you congresswoman, how, how, how do you turn that around with iowa now just a few weeks away, basically. >> well we're doing it. i'm in iowa most of the time meeting with people doing exactly what we need to do. we've identified a lot of supporters. if you look at the number of people who came out for mike huckabee when he won the caucus we've identified that many supporters in iowa. we are not regs on our hraurls, we are continuing to work hard. we are very excited. we think a lot of people will be shocked on january 3rd. megyn: we'll be there covering it, congresswoman thank you very much. it's always a pleasure speaking with you. >> good to speak with you megyn thanks. megyn: three hollywood legends

were together the night one of them drowned. in three minutes breaking news on why police have reopened a criminal investigation into the death of natalie wood. we'll have breaking news in the baby lisa case in 20 minutes. and started earning loads of points. you got a weather balloon with points? yes, i did. [ man ] points i could use for just about anything. ♪ keep on going in this direction. take thibridge over here. the it is. [ man ] so i used mine to get a whole new perspective. ♪ [ male announcer ] write your story with the citi thankyou premier card, with no point caps, and points that don't expire. get started at thankyoucard.citi.com. and here's what we did today: supported nearly 3 million steady jobs across our country... ... scientists, technicians, engineers, machinists... ... adding nearly 400 billion dollars to our economy... we're at work providing power to almost a quarter of our homes and businesses... ... and giving us cleaner rides to work and school...

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megyn: fox news alert for you now. nearly 10,000 people have been evacuated from the path of a massive wildfire on the edge of reno, and the local fire chief says the blaze could rage through saturday. at least 20 homes have been lost so far in a fire that has grown to more than 400 acres. it broke out just after midnight as winds were gusting in excess of 60 miles an hour in the sierra foothills on the city's southwest border. we'll try to get live pictures for you. the minute that happens we'll come right back to this. also, breaking this hour we are

awaiting a news conference, which you probably heard a lot about this morning, it happens in about 25 minutes right here on one of the most high profile deaths in hollywood history. it's been 30 years since movie star natalie wood drowned after spending an evening on board her yacht with her husband, robert wagner, and actor christopher walken. to this day many unanswered questions remain, and now police apparently finding enough new evidence to reopen the case. casey stegall is live in los angeles with more. >> reporter: yeah, megyn interestingly enough the los angeles county coroner who investigated this case 30 years ago who is now in his 80s tells my producer at fox news channel that he stands by his ruling that the death was an accident, but also adds, we'll see. that's what we are waiting on, we'll see when this news conference begins in just less than 30 minutes or so. but it was that coroner who determined back in 1981 that natalie wood slipped off of her

60-foot yacht, fell into the chilly waters off southern california and drowned. thomas noguchi also said bruising on the 43-year-old actress' left cheek was consistent with her falling off the vessel into the ocean. but we're learning more about what could have happened in the hours leading up to that. the yacht's captain dennis davern doing a television interview this morning saying he lied to investigators about what really went down. he alleges that natalee's husband, robert wagner had something to do with it. the couple had been to dinner with actor christopher walken that night and returned to the boat off catalina island for drinks. davern claims he later heard wagner and wood fighting in their cabin and tried breaking it up. hours later wood was mission. her former husband releasing this statement about the latest developments saying, and i'm quoting here, the wagners trust they, as in the investigators, will evaluate whether any new

information relating to the death of natalie wood wagner is valid, and that it comes from a credible source or sources other than those simply trying to profit from the 30-year anniversary of her tragic death. l.a. county sheriff lee baca says his detectives would now like to speak with that captain about his recent claims. we've got our eye on this. megyn, we understand we'll take the news conference at the top of the hour. megyn: we will see it right here. by the way so casey stegall yesterday we ended with you in that crazy contraption. wonkawash spelled backyard. >> reporter: willie wonka i love that movie. megyn: calls for u.s. supreme court justice elena kagan to recuse herself from ruling on president obama's overhaul of healthcare. they are not coming from congress, they are coming from a frontrunner in the case for the

oval office. so does this become an issue on the campaign trail? plus the psident and other leading democrats initially supporting occupy wall street. have they chaine changed their minds at all after seven deaths, hundreds of arrests and police assaulted and hospitalized? that story in three minutes. >> i think people are frustrated and, you know, the protestors are giving voice to a more broad-based frustration. you name it. i've tried it. but nothing helped me beat my back pain. then i tried salonpas. it's powerl relief that works at the site of pain and lasts up to 12 hours.

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megyn: quick update, now, on a developing story that we are following. syracuse university has put a longtime assistant basketball coach on administrative leave amid a child sex abuse allegation there. coach bernie fine accused of molesting two boys for years. the accusers are stepbrothers and served as ball boys for the team. police are now investigating. according to espn, the accusations have been looked into before, but the school found no evidence to support the claims. fine has denied the allegations, and syracuse's head basketball coach, jim boeheim s standing behind this coach saying that these accusers are not telling the truth.

well, the occupy wall street protests erupt anything more violence, putting several new york police officers in the hospital, so the growing violation cause the president and nancy pelosi to rethink these sentimentses? >> i think people are frustrated and, you know, the protesters are giving voice to a more broad-based frustration. >> god bless them for their spontaneity, you know, it's an independent people coming, it's young, it's spontaneous, it's focused, and it's going to be effective. megyn: just weeks after those comments, there have been hundreds of arrests nationwide. disturbing allegations of rape and sexual assault. the violence, as we mentioned, even landing several police officers in the hospital. >> police did meet some resistance when they retrieved those barriers and tried to put them back. one officer received a laceration to his left hand

after someone in the crowd threw a star-shaped glass object at the officer. another protester threw a liquid, possibly vinegar, in the face of another officer. commissioner kelly and i just visited the officer with the lacerated happened here at bellevue. officer matthew walters, age 24, received 20 stitches to his left hand. a protester who threw a liquid, possibly vinegar, in the faces of four officers early in the day was arrested. four officers are being treated at downtown beekman hospital for that. police confiscated a dozen metal devices designed to accommodate individuals who planned to lock themselves to the entrances of wall street businesses. we will insure that everyone has a right to exercise their first amendment rights as well as the right to go to work. go to school, ride the subway and go about their day. but make no mistake about it, if

anyone's actions cross the line and threaten the health and safety of others, including our first responders, we will respond accordingly. >> we have a total of, right now, 177 arrests at this count, although it doesn't incorporate all 177, we have five for assault, assault in the second degree. megyn: alan colmes is host of the alan colmes show, mike gallagher is a fox news contributor. alan, let me start with you. is it time for nancy pelosi to walk back her "god bless them" comment? >> no. i don't think this is about trying to use this to smear democrats. i think it would be very good if pelosi and the president condemned any of these horrible things that have happened. the media, of course, wants to focus on the small group of people that are causing disruption, but i think it's also important to urge them to

peacefully demonstrate, to take the lead of beganty and martin luther king talked about, the whole list of things you can do shot to lose sight of the larger message, which i think it's a good one. it's unfortunate that there are a group of people who are poisoning the message for the rest of the large percentage of people, the overwhelming number of people who are peaceful in doing in the way it should be done. megyn: we are hearing reports that there were groups within the movement who were shouting at the infiltrators saying, you know, stop that, don't do that, and trying to maintain peace and law and order. [laughter] >> i love hearing alan accuse the media of being in a conspiracy mode to try to smear the entire -- >> right. >> listen, i've been saying from day one these occupy wall street dregs are a bunch of anarchists, they're lawless thugs, and it's been nice to see the entire country turn against them, poll after poll now showing that americans are rejecting their so-called message. alan, the point is from day one

democrats have been in bed with these folks -- >> that's not true. >> i'm telling you, name a democrat this' condemned those actions. >> i'll condemn those actions. i'm a liberal -- >> excuse me. i didn't interrupt you, alan. megyn: i'll come to you next, alan. >> let me finish my point. >> go ahead. >> democrats have stepped in it in a big way, and the big picture you raised, megyn, is to wonder about the support, the unfettered support that barack obama, nancy pelosi, debbie wasserman-schultz and all the rest of them, i haven't heard a single democrat denounce these lawless thugs. and, alan, you can't have it both ways. you can't pretend this is some vast media conspiracy. these people are a bunch of lawless anarchists -- megyn: alan, let me ask you this -- >> i'd like to respond to that. megyn: i will give you the opportunity. what folks on the right are saying is, can you imagine if this kind of violence happened to this level at the tea party

meetings, rallies. if you had women being raped, you know, you had -- almost 1300 arrests as of just a couple of days ago. you know, public urination, defecation, attacks on police. then the one occupy movement out in california, in oakland or san diego asked for a moment of silence for the guy who shot at the white house. can you imagine if they had done any of this at the tea party rallies and a president who would endorse the tea party -- >> he didn't endorse -- megyn: well, who had commented, didn't then denounce this. >> i feel like i've got to respond to so much of what's been said. mike, you are smearing the entire group of people based on the actions of a few, and that's a shame. you're not doing any critical thinking here when you do that. you're losing sight of the larger message. of course, the media's going to go where the action is, where the bad stuff is. >> really? megyn: let him finish. >> please, don't interrupt me. and is i feel that you and

conservatives for the most part want to use this movement to smear democrats who have not wholeheartedly endorsed everything that's going on there. and you're playing politics here when you do that and losing sight that, in fact, the tea party and the occupy wall streeters have a lot in common and, in fact, probably work together. >> oh, how dare you. how dare you! i am so tired -- that is not -- megyn: just let him finish his point -- >> look, this is not a fair debate when i keep getting -- megyn: hold on. i'm going to let alan finish his point, and then i am going to come to you, mike. >> there's a lot of symmetry between what the tea party and the occupy wall streeters want. they came together actually yesterday in one place where they were all talking together, and they both have similar views about the government and the establishment. they're both anti-establishment operations, and they could actually come together and work together for common goals here. that would be a good thing. megyn: okay, go ahead. >> you are utterly disingenuous -- >> you don't have to attack me

personally. >> excuse me! i didn't even finish my first sentence. zip it for a moment and let me respond to the tea party movement, a bunch of patriots who aren't breaking the law. are you kidding me, alan? i guarantee you, i want to see if you have denounced the tea party as being rayist -- >> yes, i have. never denounced the whole movement. >> oh, really? well, you just said you did. >> no, i called out those people who are racist just like i just called out those people many this movement. >> you cannot compare the tea partiers to this bunch of lawless degenerates. >> well, i just did. >> they're anarchists, and democrats are going to pay the price november of 2012. >> we'll see. >> mark my words. megyn: we will leave it at that, guys. happy friday. >> have a lovely weekend, all of you. >> yikes. [laughter] megyn: you too. thanks to both of you. coming up next, the attorney for the family of baby lisa irwin is here, and in three minutes what

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megyn: fox news alert, potentially big new allegations in the disappearance of missouri baby lisa irwin. we are now hearing reports that a local handyman known as "jersey" reportedly bragged that he got paid $300 to steal this baby. john paer is know is the irwin family's local attorney, and he's with me now. welcome back to the program. >> the thank you. megyn: i want to underscore that this is, you know, at least triple hearsay, but walk us through how this allegation first surfaced. >> the allegation came to us from the mother of an individual who said that her daughter had

knowledge that she was with somebody who claims that jersey made that statement earlier. megyn: okay. so jersey -- >> the night after the vigil. megyn: according to this person, jersey's with this guy the night after the vigil for baby lisa, and jersey says to the guy what? >> what i heard from the girl firsthand when i interviewed her was that for $300, that he helped get baby lisa. megyn: he helped get her. >> yes. megyn: so somebody paid him. >> well, we don't know that -- megyn: no, no, i don't know that. i'm saying that's the claim in this report. >> that is the claim. megyn: okay. so he told this to some guy. do we know who that guy is? >> i don't have a name. um, we have -- it's someone who is part of this transient/homeless group of people. we are right now in the process of trying to locate this individual. megyn: and the reason we know about this guy and in this alleged conversation is because this unknown, unnamed guy then told this story to this

17-year-old girl, as i understand, yes? >> that's correct. megyn: okay. and you've spoken with her. >> i have spoken with her. we did that on tuesday. when bill stanton and joe tacopina were in kansas city when we moved the family back into their home. megyn: do you find her credible, john? >> actually, she didn't seem to have a care in the world one way or the other. i believe her when she told me that's what she heard, but obviously, without having interviewed that individual myself, i can't, you know, attest to his credibility. megyn: do you know whether she has alerted or have you alerted the police to that alleged conversation? >> yes. we have. we've been in constant contact almost on a daily basis particularly with the fbi on all of the new leads that we get via texts, via e-mails and sometimes phone calls. so the fbi specifically we've been working closely with. megyn: mean, because if this conversation really took place and right now i think you and i both agree that's a big if, but if it took place between jersey

and another member that's being refer today as, like, a flophouse, but this sort of shared home, then that would be significant because that would be potentially a person who knew jersey and was in a position to report on what jersey was saying. >> absolutely. megyn: okay. i want to turn now to the cell phones because i know you have been pursuing other leaves, and there's a lot of questions about the cell phones of the parents and whether, in fact, they did have restricted service as the parents told me, as they've told many people on the day and night baby lisa went missing. because the police as you know, and as you told me, came in and claimed that deborah bradley's phone attempted an 11:57 p.m. phone call that night that lasted 50 seconds, and a lot of people saying how could it be 50 seconds long if phone service was restricted? you've done some reverifying on this, what do we know? >> i haven't spoken with verizon, but our investigators have. as far as we know from early in the afternoon on the day in question, the phones could dial

outgoing calls. as far as the call specifically at 11:57, we don't have any belief that the call actually went through -- megyn: wait, wait, let me stop you. as far as the phones could dial outgoing calls? could place outgoing calls? >> could place an outgoing call which would be recorded, but the outgoing call would not be received by the other party. megyn: okay. so you pick up your phone, you dial, i dial john bier is know, and it says this is verizon, please, pay your bill. >> that is my understanding based on the knowledge that we have at the present time. megyn: do we know then why the verizon records would show a 50-second call? i mean, you know, you're sitting there listening to that recording for 50 seconds? >> again, not being a phone expert, i don't know. we're trying to verify that. we can't get through. you know how it is when you call a cell phone company. because there's no active case, we're not allowed to subpoena the records. much to the information come there is the fbi itself when we

had the initial meeting with them. megyn: okay. i want to talk to you about this guy, dane. why are you looking at him more and more? who is this guy? >> well, the word that we're getting and i guess a local reporter in kansas city interviewed at least dane's father. he is linked to being in the home of megan wright, where that phone call went to at 11:57. it's our contention that whoever took baby lisa made that phone call when they took the phones. megan wright has claimed she didn't have her phone that night, this dane individual was identified as a person in possession of her phone, so much of the investigation is centered around finding him. evidently, he was out of the kansas city area on a hunting trip and just recently returned. from what i've read, the reporter from kansas city went to his parents' home, interviewed his father on the porch and supposedly had some contact via texts with some individual who purported to be dane. megyn: yeah. we just don't know, we don't believe he received a phone call if calls couldn't be made.

john, i want to hold you over the break, and when we come back, i want to ask you about whether the parents are talking to the police and what discussions you've had with the plus on that -- police on that. that's right after this break. thank you so much.

megyn: john picerno, the irwin family local attorney, joins me again now. want to ask you about the parents and whether they are speaking to the police. i understand you made the police an offer about communicating with the parents. tell us. >> we have. since day one we've told the police that, you know, after 30-plus hours of interrogations of our clients that we didn't believe that any further interrogation would be fruitful, that it would lead to anything, but if there were any kinds of questions, any kind of topics or issues that they wanted addressed, if they could contact either mr. tack' that or myself, we would be happy to get them

the answers, and our clients would be happy to cooperate in giving them all the information they have. megyn: and so far they're telling you what? >> well, we're not having any contact with the fbi regarding that. i know that there's been some media reports from kcpd basically stating that that's not the way that they operate. and on behalf of the irwin family, i would hope the way they operate is to do everything they could possibly do to find baby lisa. megyn: how are deborah and jeremy holding up? >> i've been asked that quite a bit, and i think they're doing remarkably well. last night was their third night back in their home, the third night that the two boys that they share could sleep in their own beds and their own home, and i think that they've done very well. i spoke with jeremy this morning, he said every day has gotten better, and we're hopeful jeremy wants to go back to work, we're hopeful that's going to occur next week and that they can get back 100% to their normal life as much as they can with, you know, with what's going on with lisa.

megyn: what are they doing with baby lisa's room, john? >> >> baby lisa's room is pretty much as it was before she was taken. i was in the home on tuesday. the crib is still there, the police really didn't take very much out of the home, so it's pretty much intact. megyn: wow. it must be tough. must be tough walking by that room. you've got to imagine what that's like. john picerno, thank you so much. i appreciate you being here, as always, sir. >> thank you very much, megyn. megyn: all the best. well, coming up, one of the republican front runners for the white house is now calling for supreme court justice elena kagan to step down, recuse herself when it comes time to rule on president obama's health care law. in five minutes, we'll see if this is about to become a new big thing on the campaign trailment. and we are now just a couple of minutes away from the big news conference on one of hollywood's biggest mysteries. police holding a news conference on the death of actress natalie wood more than 30 years ago. she drowned during a night on a

yacht with then-husband robert wagner and actor christopher walken. police will explain why they've reopened a criminal investigation right after this break. at bank of america, we're lending and investing in communities across the country, from helping to revitalize a neighborhood in brooklyn to financing industries that are creating jobs in boston or providing funding for the expansion of a local business serving a diverse seattle community and supporting training programs for tomorrow's workforce in los angeles. because the more we can do in local neighborhoods and communities, the more we can help make opportunity possible. the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projectsn the world. enough power for a city the size of singapore for 50 years. what's it going to do to thplanet? natural gas is the cleanest conventional fuel there is.

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where your doctor wants? ask your doctor if crestor is right for you. [ female announcer ] if you can't afford your medication, astra zeneca may be able to help. megyn: fox news alert. a news conference set to begin any moment now on the stunning new investigation into the death of a hollywood screen legend, natalie wood. welcome to a brand-new hour of "america live." megyn kelly. talk about things you'd never thought you'd be leading the newscast with. indeed folks this is big news. a lot of folks are paying attention to this. we are hoping to learn more about why detectives out in california have suddenly reopened this criminal case nearly 30 years later. natalie wood's death was ruled an accidental drowning back in 1981. it happened after a night of drinking with her husband, actor robert wagner. they were on their yacht off the southern california coast when natalie wood somehow ended up in the water. the boat's captain is dropping a

bombshell blaming robert wagner for the star's mysterious death. we are going to go to the news conference now. >> we deem it to be credible and reliable, if so we are not opposed to acting upon it. recently we have received information, which we felt was substantial enough to make us take another look at this case. the case has been assigned to two sheriff's homicide investigators who will be following up on additional information, as well as any other additional information that may develop. any questions? >> is robert wagner a suspect? >> no. [inaudible question] >> i'm not really going to comment on the type of information we have, the evidence or statements we are getting from people. [inaudible question] >> we have several sources that have come forward with

additional information. as i said we have found it to be credible enough to go ahead and take another look at the case. [inaudible question] >> anybody else? [inaudible question] >> at this point it's an on going investigation. at this point in this investigation can you rule out that she was murdered? >> her death was ruled an accident, an accidental drowning, and that's what it is. if our investigation, at the end ever it points to something else, then, well, we'll address that. right now her death is an accidental drowning. >> can you rul rule that out at this point in your investigation. >> it was ruled to be an accidental drowning. but the information we received made us want to take a look at the other case. [inaudible question]

>> are we planning to go to hawaii to take a look at the boat? we'll go wherever the investigation is going to take us. >> lieutenant the captain said on national tv that he lied to your investigators 30 years ago, your reaction to that, and will he face any charges for lying to police officers? >> that i can't say. we'll end up talking to the captain sooner or later. once we talk to him we'll assess what he has to say and what happened then and now. [inaudible question] >> she's asking about someone who is remembering things from 30 years ago and there is a book being written. i don't know, i'm not concerned with the book, that's not our concern. just having already just the media attention we've received already on this. we've generated calls, and people who have remembered things from back then, or back then didn't talk to the police,

and now wanted to tell their story, so already people are coming forward and wanting to talk to us. >> lieutenant why wasn't a more extensive investigation conducted in 1981. >> i didn't say there wasn't a substantial investigation. this information made us want to take a look at the case. ahs r-r. >> that's inconsequential to us. we are not concerned with the anniversary date. it may have jarred other people's minds, it was in the media and they started coming forth with the information. >> isn't it standard procedure to contact the victim's family to tell them an investigation would be opened. robert wagner issued a statement saying he had not been contacted by your office about this

investigation. isn't it standard procedure to contact the victim's family. >> that's correct. we just opened the investigation. we are starting to reinvestigate the case. sooner or later we will be contacting his family. [inaudible question] >> well, you know, we do what we do, investigations. we are going to follow-up on the leads we have. we are going to reinterview some people. interview some new people. talk to people and reevaluate some of the evidence. [inaudible question] >> like i said, her death was ruled an accidental drowning. that's what it is until we find something that says it isn't, until that time it's still an accidental drowning. >> by definition by reopening this investigation aren't you insinuating that there is a possibility that it in fact was not an accident. >> not at all. what we're doing is, we get new information we deem to be credible we are not afraid to go out there and act upon that information, that's what we are

doing. >> does the new information conflict with the information investigators had 30 years ago when they made the accidental determination. >> i'm not going to comment on that and what the information is. [inaudible question] >> we want to talk to you, if you saw something back then you have some information about what happened back in 1981 give us a call at the sheriff's headquarters bureau. >> mr. christopher walken be interviewed? >> i'm not going to going to be talked to, who is not going to be talked to. i think you can speculate on that. i'm not going to talk about what witnesses we will talk to or who we haven't talked to. >> just for clarification, outside of the captain do you have additional information or additional people coming forward? >> she's asking if we have additional information outside of the captain. i'm not going to comment on who has talked to us or who told us what. >> was a toxicology report ever

been done. >> i'm not going to comment on the coroner's report. i think it was already released, i'm not going to get into that. [inaudible question] >> whatever is available to us we'll use, yes. >> you're asking people if they remember something from 1981. [inaudible question] >> i'm not saying we are basing the case on that, but it does help obviously if the people know something that happened back then to give us a call. like i said, we will reevaluate what they have to say. if we find it to be credible, reliable we may use it or disregard it. >> any chance natalie wood's body will be exhumed? >> i'm not going to comment on that. i don't know if we're going to do that or not. >> will somebody face charges

for lying? >> like i said, this right now is an accidental drowning, that's what it is. just the information we have, we felt it was responsible -- we should be responsible enough to go ahead and follow-up on it and that's what we are doing. >> if someone admits they lied to you could they face charges? if i said i lied to you 30 years ago could i face charges as the captain said to you that he lied to your investigators. >> if they are inhibiting the investigation they could be arrested or charged with a crime. >> he admitted on national television today that he lied to investigators. >> i'm not going to talk about planning on arresting anything or doing anything to anyone. we just want to talk to people right now, follow-up on the information we have in the -- it's a further investigation. >> you won't say you've interviewed the captain? >> i'm not going to talk about who we've talked to. >> how does his lying affect his credibility in your investigation? >> i'm not going to comment on his credibility.

that's okay. that's it. thank you very much. thank you. >> thank you all for coming. thank you very much. megyn: an extraordinary announcement, as you heard there from the l.a. sheriff's office talking about reopening this investigation into the death of actress natalie wood, saying that several sources, that was his word, came forward with additional information. we had been led to believe that it might be the captain of the boat and perhaps the woman who coauthored a book with him. we don't know whether that has changed but he said the book is not our concern. he went onto say that her death was ruled an accident, but we'll be reinvestigating it. we could reach a different conclusion. the information received from these several sources made us want to take another look at the case, and he said he would not comment on whether they have plans to exhume the body of natalie wood. trace gallagher joining me live from l.a. geraldo is walking on the set

who actually knows a lot of the players in this case but i want to go to trace first. trace, that was the big headline out of this is the confirmation that they are reopening it and they are basing it on the reports of quote, several sources. >> reporter: that is the big phrase right there, megyn is several sources. we all know there were only four people on board that boat. natalie wood, robert wagner the actor christopher walken and the captain named dennis davern. he came out today saying he lied to investigators 30 years ago, did not tell them the whole story and he believes that robert wagner was in fact involved in his wife's death. he wouldn't go into specifics about that nor would the sheriffs. if there were only four people on that boat they have not yet talked to christopher walken. robert wagner's family has not been notified of this at all. in fact we only have a couple other people, one of them is dead being natalie wood. they were all drinking on board that boat that night and the coroner's report said natalie wood slipped, fell, hit her

face. that's how she apparently died, she fell into the water and then she drowned. that's not been disputed at all. what goes on next they have to talk to the different people involved and see what they couple with. very little information out of the sheriff's office. megyn: thank you trace. joining me now is geraldo rivera who did a lot of investigation into the case, including interviewing this captain. >> reporter: it seems to me the story what's sroflg. i interviewed him on or around the 10th anniversary of the death in 1991. this is the 30th anniversary of the death. i don't know if the anniversaries are playing any role here. megyn: almost to the day it was thanksgiving weekend. >> reporter: essentially what happened as it was officially discussed. they did go ashore, they did party. they came back, they were drinking, there was an argument between christopher walken and robert wagner over christopher walken who was starring with natalie wood in what would be her last movie, getting a little too chummy.

there was an argument and the captain has been consistent with that. with the argument, christopher walken goes down below, he goes to sleep, is not heard from again. then according to the official story natalie wood goes on deck and somehow she has the accident, she falls and then they are kind of questionable in terms of whether or not they pursued, you know, frantically looked for her body or whether they waited. that has always been the story. but what is different is, now the captain is saying that after christopher walken went to bed rj, robert wagner and natalie wood had a terrible fight on the fan tail of that boat, and it was shortly after that fight that natalie wood disappeared. megyn: this is the first we're hearing of his ability to account for this fight? >> reporter: it's not the first we're hearing about it. you know, i don't know if you have a clip from my old interview. megyn: we do. i'll play it later.

i i want to hear from you right now. >> reporter: there are a lot of murky details in this captain's ever evolving story. he also had a terrible alcohol problem at the time. i have him and the author on tape speaking, not knowing they are being taped about how their story can evolve and we can make billions on a book. so this guy is kind of hinky. and if he's the source that the l.a. sheriff is relying on i say this investigation goes nowhere. they said several sources. it can't be christopher walken. megyn: why can't it? he was a sleep. >> reporter: he was a sleep, he was out of it, and 30 years later he's not going to suddenly surface. i really don't know. cbs48 hours is doing a recreation of the mystery, and i believe that there may be some communication between the producers of that program and the sheriff's department, and i'm not sure about the symbosis.

megyn: we'll play the clip coming up. new details unfolding in the penn state case. we'll have those for you after this break. film of the jfk assassination digitally enhanced. could there be new clues? [ gong ] strawberry banana! [ male announcer ] for a smoothie with real fruit plus veggie nutrition new v8 v-fusion smoothie. could've had a v8.

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megyn: fox news alert, new developments in the penn state sex-abuse scandal. we are starting to get new details on coach jerry sandusky's likely defense. he is of course facing criminal charges for allegedly raping and molesting at least eight boys. the main eyewitness in the case thus far is a guy named mike mcqueary who was a grad assistant at the time who told the grand jury he wilted one of the rapes. and now this week that guy, mike mcqueary, has changed his story a little bit, at least with respect to his own behavior, trying to say contrary to earlier reports he did call police, an did stop the rape. here is sandusky's attorney just hours ago.

>> i think there is a serious credibility issue here. and quite frankly what i'm hoping is that if there is that the folks from penn state who have been totally, totally destroyed by this mess will be vindicated at an early stage rather than at a later stage of this process. megyn: ellis cannon is a former trial attorney. it appears he will be teague up this guy mcqueary who sent this email out trying to rehabilitate himself this week and may have really harmed the case in doing so, tell us. >> he does open himself up to credibility questions, megyn. that is something he'll have to deal with. we have to go back to the very beginning. of course his criminality and a determination of that really turned on whether or not he roertd or provided notice. obviously the grand jury felt that he satisfied that a. megyn: that's mcqueary. we are talking about sandusky's defense. we hear from the lawyer today they are going to go after this guy mike mcqueary, that's how it

looks. >> absolutely. he is such a pivotal figure to him. it has to be placed into the context of recognizing he is an absolutely critical witness for the prosecution. so he was not charged by the grand jury, or by the attorney general, conveniently or otherwise he is critical as a witness going forward in the says against sandusky, and certainly you can understand why any defense will focus on him at least preliminarily. megyn: you know, ellis, do me a favor. stand by for a minute. i want to bring in gregg jarrett. he's covering this for a fox news special. we'll go to gregg and come back towel is. gregg. >> reporter: i would say mcqueary is a very, very important witness. remember you'll have half a dozen alleged victims who are going to be telling very similar stories of molestation and sexual abuse and rape, and those are the principle witnesses in this case. so can prosecutors do without

mcqueary? probably. and remember this just because you've got sandusky lawyer throwing cold water on mcqueary that doesn't mean in the end he's not a credible witness. megyn: ellis the thing about mcqueary is, they'll do to these alleged victims, you know, the old you want to sue penn state, which is a deep pocket. you only came forward now. this is what they do. but mcqueary, unlike these others, what reason does he have? he was a tkpwr-d assistant at the time. think about him what you will. these coaches were like gods, why would he make something up like this about a coach that at the time we presume he respected. >> obviously that is exactly what the brothers kwaougs is going to say as they build up his credibility. that credibility has been extend ford a number of years with him on the side lines representing the university in one capacity or the other. so, absolutely. i mean, this is sort of why the last couple of times you and i talked i've tried to place him into the context of recognizing

his significance in the case going forward. he is going to be important, he is a piece of the puzzle. i don't think it really helps the prosecution in the case to relitigate the morality he what he did or didn't do ten years ago. megyn: i'm sure it doesn't. obviously in the news we talk about all aspects of the case and we are not here to help or hurt the prosecution. gregg. >> reporter: the only thing we've seen or read, this grand jury report is 23 pages long. it's only an outline, a sketch of mcqueary said. if we see the transcript of what he told the grand jury it could be consistent with his emails. he may be a very credible important witness. megyn: we'll find out. thank you. you can see more of gregg's reporting in a crisis at penn state. it's hosted by john roberts and it's saturday night fox news channel 10:00pm eastern time. we will be back in three minutes with the new look at the kennedy assassination. they have enhanced the films.

wait until you see this.

>> we have suffered a loss that canno cannot be believed. for me it is a deep, personal tragedy. i know that the world shares the sorrow that mrs. kennedy and her family bear. megyn: lyndon johnson, almost 50 years ago. now there are new details emerging on one of the most questioned events in american history. the assassination of president john f. kennedy. national geographic collected and remastered a number of home movies taken that terrible day, and the producers say they have unearthed new evidence about lee harvey oswald's movements.

james rosen live in washington with more on this. >> reporter: in the 48 years that have passed since november 22nd, 1963 we've seen so many investigations, studies, reviews and re-enactments that you might think we've reached the point that nothing knew can be learned about the assassination of president kennedy. enter a team of historians, retired secret service officers and it specialists. they claim to have established that lee harry oswald had twice as long, 11 seconds, not the famous six seconds in dallas that we've always heard about to assassinate the president. their conclusion is based in part on digital upgrades to home movies taken that day. these home movies include amateur footage of the president's motorcade taken by robert hughes a customs agent situated at the southeast corner of daily plaza. it enables us to see a shadowy

figure moving about inside the 6th floor of the texas school book depository building. that shadow is believed to be lee harvey oswald aiming a rifle at the president. they upgraded the 26 seconds of silent color footage taken by abraham zapruder. that film represents the only realtime record of the killing of john f. kennedy. today that film is housed in a temperature-controlled archives facility in college park, maryland and it is placed in a new context by max holland, lead historian for a documentary called jfk the last bullet. >> we have to break the stranglehold that the zapruder film has on our sense of what happened. the film is no graphic, disturbing, that it became more of our prospective on the assassination than even the perspective of the assassin

which never should have happened. >> reporter: jfk heirs this sunday night at 9 eastern. large numbers of americans continue to believe that president kennedy was killed as a result of a conspiracy. megyn kelly are you among them? >> you know, i'm not sure. i talked to arlen spector about this once and he called it not just the single bullet theory, but the single bullet conclusion, because he was on the warren commission and he told a pretty per sways tiff tale. you're the historian, what do you think. >> reporter: i used to be a conspiracy buff, then i entered a 12-step program. i believe oswald acted alone. he killed a police officer elsewhere in dallas shortly after the assassination, and to my mind it makes it very likely that he was guilty of the original crime of killing president kennedy. megyn: i defy any of the viewers to ever catch james rosen without an intelligence, informed answer to everything. good afternoon my friend.

>> reporter: thank you, you too. megyn: with the so-called super committee trying to fix america's budget problems. jim demint having a critical question. are we going to be a socialist european country, or are we going to be america sth that's how he phrases it. that debate is next. plus, a closed case suddenly reopened. you heard it here yourself. a legendary actress is at the center of it. what investigators just said about the death of natalie wood. was it accidental, or something more sinister, and that geraldo case is coming up as well. >> we are doing what we do in investigations. we are going to follow-up on the leads we have. we are going to reinterview some people, interview some new people. talk to people and reevaluate some of the evidence. let's go to vegas. alright, let's do it.

let's do it, let's go to vegas. asy!

megyn: fox news alert the u.s. house of representatives just voted down a balanced budget amendment to the constitution. the tally 261-165. it required a two-thirds majority for passage. the amendment would dictate that the government cannot spend more than it collects in revenue. the vote comes as the so-called super committee says it is deadlocked over how to cut spending, raise taxes and dig us out of our budget hole. jim demint talked about the budget crisis yesterday saying, quote, america is going to decide what kind of country it's going to be. are we going to be a socialist european country or are we going to be america?

so is that the choice in front of us right now? joining me now, republican political analyst and campaign come sul want, tony saeg. daniel henneberg is an edda for for the "wall street journal." and we have a pollster. that is the question that demint has posed. are we going to be a socialist european country, or are we going to be america. what kind of country are we going to be, and is he right that is in part what they are debating on capitol hill. >> we've got 100% gdp to our ratio. 25% of what we produce in our gdp goes to funding the government. yes, sta advertis statistically that is where we are heading.

i'd like to be more positive and say we are the country of capitalism where the government allows our system as a free market to drive, and we can pull ourselves out of it through the private economy. the direction we've seen this government go in the last three years lends many to fear that that's where we are heading that european style system. megyn: do you see such a dived in the ideology between the two sides that it is more than about cutting 1.2 trillion. >> absolutely. i think senator demint is right. the differences between the two parties are absolutely profound. and it's beginning to sink into everybody in washington that this is not merely about fighting over budget accounts and taxes, that these two par tears in entirely different places. they have been going there for a longtime. i pw would date it back to 1965. when lbj passed the great society. medicaid on top of social security. this was a debate over the

weekend, saying they wanted to rewrite the tax code to spur economic growth. and them saying republicans have an idea that the tax policy has something to do with economic growth, they are dreaming. which is to say the democrat think taxes are to feed the level of spending that the government produces while the republicans are saying it should be intended to spur economic growth in the private economy. the democrats are in the public economy, the republicans are in the private economy, this bridge will not be crossed until the presidential election determines that. megyn: bernard you've heard the republican presidential candidates come out repeatedly and say we don't have an income problem in this country -- we don't have a revenue problem, we have a spending problem. we spend too much. they keep pointing back to the deal reagan made years ago. he said okay i'll take $3 in spending cuts for a dollar worth of tax hikes. he said he got the tax hikes but never the spending cuts. that's why the republicans say they are no entrenched.

it's not a revenue problem, the answer isn't to raise taxes and it doesn't seem like the two sides will ever agree on that. so why are we to believe that they will make any progress in this super committee or beyond? >> actually i don't think that we will. unfortunately we are going to see the mandatory cuts. the problem is we have a reality problem. the american people are way out in front of the pol politicians on this. the american people are very, very clear. they want to see a mix of spending cuts, tax increases, two-thirds of them want to see the wealthy who have done the best in this economy actually pay a little bit more to help fund programs to create jobs. the american people, two-thirds of them want to see defense cuts. why? because we need a leaner, meaner military that is morey hraoeupbt on technological innovation and superiority. less reliant on man power that costs the most. i think leon panetta has gone over to the dark side on this. we've got to cut military spending. we have to deal with

entitlements. social security is the obvious one. why? because the american people i think are ready to accept a gradual increase in the retirement age. we are living much longer lives, much healthier lives and much less physically demanding jobs overall now than when this program was put in place in the 30s and 40s. it makes common-sense gee does raise a good point when you poll the american people they are in favor of raising the taxes on the wealthy. just as touching social security is anathama to the democrats. those on capitol hill seem to be digging in their heels, tony. >> we need to raise more revenue. the republicans any you have a dynamic economy that when it grows creates more tax revenue. under the bush tax cuts we had the highest receipts of revenue to the federal government in the history of -- megyn: the idea is if you lower taxes on the rich -- >> knots the rich.

you stimulate economic growth, the basin creases. you eliminate loopholes and deductions, you create more sources from where taxes come. megyn: what do the democrats say to that? >> you simply cannot afford to give tax cuts to those people who have done better off than anybody over the economic downfall. >> rich and poor has never been great tpher this country. and corporate profits are at record highs, yet corporations cannot manage to create jobs. >> corporations? what about guys who own their own companies? the republicans were talking recently about dropping the corporate rate in the super committee from 35 to 25%. that creates a differential between the top marginal rate and the corporate rate, which is to say between corporations and guys who own their own businesses, of which there are millions in this country. and to say that raising their rates as part of the super rich in the 1% is going to create

jobs in the country is obviously a contradiction. >> the idea that allowing the 1% to pay a little bit more, because they've done better will somehow cripple small business is absurd, it's just not true. most small businesses do not make millions and millions of dollars. >> this is the whole c u.n. ard bernard, no pun intended. when you say raising taxes, you're talking about people who you're talking about, those who make $200,000 or more. you call them the rich but in essence they are not really the rich. you've created this smokescreen by saying really it's only the top 1%. that is nonsense. even if you confiscated all of the wealth of the top 1% you would not make a dent in our deficit. to propose that to people and say, well if we just did that we would be better off, it's illogical. >> in conjunction with entitlement reform. military cuts. megyn: i tell you what they really need. they need more cupcakes and go

lean bars from senator kerry. this is how they are going after it. gentlemen, thank you so much. interesting discussion. taking your thoughts on it as well at kelly at foxx news.com. the sheriff's taking a new look alternate the mysterious death of hollywood icon natalie wood. they are reopening the case 30 years after her death. what geraldo learned from the key figure in this new probe, up next in "kelly's court." [inaudible question] >> her death was ruled an accidental drowning. that's what it is until we find something that says it isn't, until that time it's still an accidental drowning. nnouncer ] how are we going to make this season better than the last? how about making it brighter. more colorful. ♪ and putting all our helpers to work? so we can build on our favorite traditions by adding a few new ones. we've all got garlands and budgets to stretch.

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megyn: wow, that was of course academy award-nominated actress natalie wood in one of her most famous roles in maria in west side story although that wasn't really her singing. a new investigation into her mysterious death is on the docket in "kelly's court." we just learned from the los angeles sheriff's department what prompted detectives to reopen the case. listen here. >> recently we have received information, which we felt was substantial, enough to make us take another look at this case. the case has been assigned to two sheriff's homicide investigators who will be following up on the additional information, as well as any other additional information that may develop. megyn: so, is this a good idea? joining me now defense attorney david wool and former prosecutor and cohost of the 5 right here on fox news channel.

kimberly gilfoyle. is it a good idea to reopen the case 30 years after they died. >> i've worked very closely with the sheriff's department and the los angeles district attorney's office will be involved as well. they don't open cases just because it seems like a good idea or there is an anniversary. they will only reopen a case that has been closed because there is sufficient and significant information that has been brought forward that directly con detectives a fact pattern that they were acting on previously. megyn: was the evidence that this is not an accidental drowning. >> the captain is making new statements. they can be questioned because he's trying to push a book and there is perhaps a financial motive involved in it. they are going to have to sort that out. think about the technology, the crime solving advances that we have now that weren't available 30 years ago. they are going to go and take another look at the boat, that tells me there is something

about the actual, physical crime scene. megyn: good luck finding any evidence on that thing. 30 years ago. david, as i see it at the time, what we knew, 20, 30 years ago, what we no now, natalie wood's family said she with us not a swimmer, she hated the ocean. she was on camera saying her biggest fear was the dark, deep sea. her sister came out and said she didn't even know how to swim. she would never go to another boat, not get in a dinghy as robert wagner claimed. and not dress in a nightgown and socks which he claims she got in this dinghy for a midnight row. that wasn't enough to look at him more seriously 30 years ago. why is it now? >> i found it striking that the lieutenant in the press conference said he's not concerned about the credibility issues such as this statement being completely contradictory to previous statements and the fact that this book is being released and they are trying to publicize it. the bottom line is prosecutors will be concerned with it. if there is a report forwarded

by the l.a. sheriff's department to prosecutors they are going to look at all of these issues of credibility before they decide to file any type of charges. megyn: this is the dinghy by the way in the circle. >> they are going to need extrinsic evidence from the boat. maybe dna from the exhugh phaeugs of the body. i wouldn't be surprised a at all. could there be dna underwood r-r's fingernails that could possibly survive this long and show a struggle. megyn: how on earth would they not look for that. the coroner would have looked at that. there were several bruises all over her body at the time that were consistent with falling off, two dozen bruises on her body. facial abrasions on her left cheek. it comes down to the captain. the police department says sources, several sources. all we're hearing about so far is the captain and his cohort who are writing the book. the captain now claims in an interview with nbc news that the question was, was the fight between natalie wood and her husband robert wagner what ultimately led to her death? yes the captain told david

gregory. how so? like i said that will be up to the investigators he says. listen to that captain and what he told geraldo years ago. this is 1991. >> i know natalee won't voluntary step in the dingy and leave the boat. i said let's turn the flood light on, the flood light on and look. he said, no let's wait. >> he did say something that was not reported to the police. >> what happened in the half hour that rj went down and looked for natalee, they got into an argument. i don't know if i can tell you that. megyn: he couldn't really tell you too much about that exchange. when geraldo interviewed him he couldn't really tie robert wagner to the death other than to say he really didn't look too hard for her. now he's coming out kimberly and saying, yes, in response to was that fight what ultimately led

to her death? is that enough to reopen a case? >> it is if he told them additional information that he is not sharing publicly and they are not telling us. it's significant that they are reopening it. they have something that they feel is important that they have to take a second look. has passed. maybe this captain wants to unburden himself when at the time these three powerful movie stars were there. people like to make things go away. time has passed, you're moving on in years. maybe you want to get things off your chest and give a few more details. >> come on, kim, it's all about the book. >> i've had cases like that. >> he's selling a book. for him to make a statement like that 20 years ago then make this statement. the d.a. is going to look at this case, you know, kim you were a top-line prosecutor. they have to prove this case beyond a reasonable doubt. if there is a recommendation of any kind of homicide charges, and i don't think under all these circumstances with the credibility issues they'll ever

file charges. megyn: they better g have more than that if they are going to go after robert wagner who welcomes the investigation. panel, thank you, david and kimber leave. we'll be right back.

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