-- jon for that! jon: thank you for joining us, stay out of dangerous restaurants. jenna: keep it straight! "america live" starts right now. megyn: thanks guys, we begin "america live" with a fox news alert, i'm megyn kelly, hello everyone, military officials is confirming to fox news that iran has captured one of our top secret stealth drones, the rq1-70 sentinel stealth drone, built with very sophisticated technology. it's the sail kind of stealth plane that was monitoring the u.s. raid on usama bin laden's compound in pakistan. iranian state tv claims the drone was shot down and recovered almost completely in tact, not good news. national security correspondent jennifer griffin is live at the pentagon with the breaking details. >> reporter: hi megyn. u.s. military sources have confirmed to me that they are missing an rq-170 sentinel drone. that is the same kind of drone that the iranians

claim to have shot down over the weekend. there are very few images of the rq-170 sentinel, other than those that were taken at kandahar air base in 2009. this is a $6 million stealth aircraft manufactured by lockheed martin, the rq in its name i'm told means it's unarmed and some industry experts who have written about the sentinel say its design makes it more of an operational platform, not an intelligence gathering aircraft. it was used as you mentioned to fly support during the bin laden raid. here's all that nato officials have said publicly about the missing unmanned aerial vehicle. quote, the uav to which the iranians are referring may be a u.s. unarmed reconnaissance aircraft that had been flying a mission over western afghanistan late last week. the operators of the uav lost control of the aircraft and have been working to determine its status. iran has a long border with afghanistan, and nato monitors it for weapons smuggling into afghanistan.

three years ago the iranians claimed they designed their own drone that had a six munich mile range and could reach israel. so far the iranians have not shown video or still photo evidence to support their claim that they shot down the american rq-170 drone, but now that fox news has confirmed with military sources a u.s. sentinel drone is missing there is concern at the pentagon that the missing drone is in iranian hands and could be reverse-engineered, megyn. megyn: wow. thank you, and folks, if you'd like to learn details about this news and this drone, what it does and why it's so important, go to foxnews.com, it is there for you right now. brand new developments on the european debt crisis today and the potential threat to our economy right here. u.s. treasury secretary timothy geithner heads overseas now to work on a major deal as leaders in german and france demand that europe een nations take a tough new stand on spending before they get any bailout money.

fox business network was stu varney of fbn joins me now. stu, why are we going there? why is our treasury secretary going over there and what is likely to happen, if anything, with american dollars? >> okay. america does not want to see the euro crash. if the euro crashes, if these insolvent countries cannot pay any of their debts, that entire continent goes into a depression. not just a recession. a depression. if that happens, it washes over our shores and affects our economy very, very badly, therefore, the administration will move heaven and earth to make sure there is some kind of bailout, some kind of time frame, that allows breathing space so the euro does not crash. that's why treasury secretary geithner is in frankfurt, he'll be holding talks starting tomorrow with all the top financial leaders of europe. he wants to make sure that a euro bailout is in place. it will be at least a

trillion dollars, probably $2 trillion. the question is, where does that money come from. will america contribute anything via the imf? if so, how much? it's all open questions at this point. megyn: of course that's the international monetary fund. >> sorry, yes. megyn: we're the biggest shareholder. if we decided we wanted to help significantly with a bailout or whatever you want to call it to save your and its currency but the imf, and they're not going to come directly to congress or the american taxpayers, there's no way people would support that is the way i'm told, if we do so through the imf, how would we do it, who would be able to decide that? is it geithner, is it bernanke? who decides the purse string controls for americans when it comes to our imf role? >> america rules the roost in the imf. if we want to commit money to europe in a bailout, we do it. that's it. now, we provide 17 percent of the budget of the imf, the international monetary

fund, so that any money that goes from -- from the imf to the european bailout, part of it will come from the american taxpayer. it was committed back in 2009. now, the administration says no more american taxpayer money to the -- for the imf, we're not going to do this bailout with new taxpayer money. now, whether that sticks, we don't know at this point, because they are truly desperate for a trillion dollars. they've got to have it. megyn: let me just jump in on the numbers, because what we're being told is italy itself alone needs $600 billion. just italy. >> yes. mig it's obviously not the only country inurope that's in serious financial trouble, so the imf right now is $500 billion. >> right. megyn: it's going to need more, isn't it stu? we, the imf, i should say, is going to backstop the loan to southerly europe's problems, aren't they going to need more american dollars? >> hold on a second. what they need in total is

trillions. not all of that would come from the imf. there are other sources of money. they could print t they've got a europe een central bank. they could print some euro, they could take some money off the member countries at the eurozone and use that to back up loans. they could do all of the above. they've got to get together a trillion dollars. if they don't, they crash. now, the germans, they've got the money. they're saying yet, we're not too happy about this bailout but look, if you do it, we are going to have to take our authority on how much you pay in taxes, and how much you pend on pensions, and all the rest of it. the bottom line, megyn, is you're looking at the end of the european social model. it's over. megyn: stu varney, thank you, sir. >> sure. megyn: well, president obama is taking a page out of theodore roosevelt's book. he plans to speak on the economy tomorrow in the same kansas town where teddy roosevelt delivered the new nationalism address back in 1910. this is so interesting. this is like a week or two

off doris kearns goodwin had president obama should paint himself in the lines of teddy roosevelt, now what does he do? exactly that. the speech is -- his speech, teddy roosevelt's, called for a bigger government role in helping the underprivileged and similarly president obama, we are told, will talk about what he calls a make or break moment for the american middle class. roosevelt's critics labeled his speech socialistic, even communistic while others hailed it as the greatest oration ever given on american soil. lou dobbs with what to expect on the president's speech tomorrow and will it have the same effect as teddy roosevelt's remarks did? herman cain's camp is denying a report that he will endorse fellow republican newt gingrich for president later today. his spokesman says mr. cain will stick to his original schedule of appearances in oklahoma. cain, suspending his run for the white house over the weekend, as we get news on

that, we'll bring it to you. >> speaking of newt gingrich, he is set to speak to the media in new york city later, following his sit-down with donald trump, a must stop it appears forgate gop presidential candidates these days. mr. gingrich would not take questions about that report of herman cain maybe getting ready to endorse him, but he did say he would welcome the donald's backing. >> gingrich is launching his first tv ad in the state of iowa, where he is topping mitt romney in the polls. >> we can regain the world's respect by standing strong again, being true to our faith, and respecting one another. we can return power to the people, and to the states we live in, so we'll all have more freedom, opportunity, and control of our lives. megyn: i think they used that same music when mary went blind on "little house on the prairie", it's ringing a bell, i'm not sure

larry saab bo, politics at university of virginia, thank you for joining me. none of these ads are the same without the swan song in these ads. in iowa, you tell me, larry, if gingrich gears up as he's been in iowa and if he wins the iowa caucuses, how significant is it? >> it's very significant. just to go back to that ad for a second, megyn, the ad that most resembles is ron add reagan's morning again in america spot from 1984. of course reagan was an incumbent president running for reelection. he did win 49 states. but go back and look at morning again in america. that is very similar. it's different music, but it's the same kind of effect on the viewer. megyn: right, because that was before mary went blind so they didn't have that available when reagan was in. let's talk about this, gingrich is focused on iowa,

all these candidates are focused on iowa, santorum has been in every county in iowa, but this year, the calendar is much different and the delegates, the way you get delegate, is much different for these gop candidates, larry. so is it or is it not true that you could have gingrich winning iowa, come in first and second in new hampshire, doing well in south carolina and florida, and still not be the gop nominee? >> that is absolutely correct, megyn. it's a very different system than the one that john mccain used four years ago, when he won new hampshire, south carolina, florida, with about one third of the vote in each one of those three primaries, and then was effectively the nominee. this year, you have a long drawn out process including some proportional representation, meaning in many places, you can't win all the delegates simply by getting one more vote than all the other candidates. so there's a good chance this will be a long term

battle. that obviously favors the better organized candidates. by the way that's not just mitt romney, it's also ron paul, doing surprisingly well in that demoines register poll that came out over the weekend. megyn: if you're somebody who wins, you come in first in one state, third in another, first in another, fourth in another, you may be in a worse position than someone who continually comes in second, second, second, in all the battles we're about to watch. >> yes, although eventually, you have to win something in order to actually get the nomination. you would have to have a combination of first, second and third places in many of these primaries and caucuses in order to actually get the nomination. but you know, this comes in stages. we've got a dead february, because in january, we've got iowa and south carolina, iowa, new hampshire, south carolina, florida, then you have very few contest *s in all of february, and we start up again with supertuesday in early march. so you're going to see this campaign play out very differently than republicans

in particular are used to. megyn: quickly, before i let you ask you, smart of gingrich to meet so publicly with trump? >> absolutely. i'm of the view that ronald reagan took, when you accept peoples' meetings or endorsements or anything else, they are agreeing to meet with you or endorse you. you're not necessarily endorsing everything they stand for. megyn: larry sabato, thank you sir. >> thanks megyn. megyn: isn't that interesting how it's going play out so much differently this time? and we'll be ko*frg it all on fox news. president obama channeling his inner teddy roosevelt tomorrow in what he calls a make or break speech for america's middle class. but is it fair to compare mr. obama's proposals to those that teddy roosevelt was pushing? lou dobbs joins us with his take. a former school official in philadelphia, the superintendent, she was, is now under heavy fire after she filed for unemployment when she had just collected almost a million dollars in a contract buyout. that's taxpayers dollars, folks. her case, just ahead.

and country singer mindy mccreedy facing a judge after police found her hiding in a closet with her five-year-old son. could she face charges? we'll have a live report, after this break. ♪ the weather outside is frightful ♪

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megyn: president obama attempting to follow in footsteps of theodore roosevelt, as we reported moments ago he will deliver a speech on the economy tomorrow in the very same kansas town where president roosevelt delivered the new nationalism address 101 years ago. teddy roosevelt's speech drew strong praise, as well as harsh criticism, with labels like communistic and socialistic from some. so what can we expect from mr. obama tomorrow? joining we now, lou sto*bs. teddy roosevelt and president obama, this is so interesting. >> two names that go toergs don't they? >> megyn: do they? you tell me. is he going channel his inner teddy roosevelt and is this country in the same position now as it was when

teddy roosevelt made his remark necessary kansas tomorrow? >> in 1910. there is absolute me no correlation whatsoever between the condition of the country, the safety net structure or the issues that face the nation now. megyn: talking about fairness, we need more fairness. >> we need fairness and that means in this presidency so far, we need fair distribution of wealth, rather than creation of wealth and fairness in the creation of opportunity to create wealth. megyn: how is that different from what roosevelt said? >> roosevelt in 1910 was putting forward a very radical idea, concerned -- and that was the era of the sherman antitrust legislation of the as a matter of fact, in 1910 the economy was slowing down because the market had been hit by this trust busting mentality that swept the country under the roosevelt administration. the country was actually in the third year of a roosevelt administration because his hand-picked successor was william howard

taft, and one of the anomalies in all of this, megyn, this president, apparently and his scissors from the sunday talk show hosts who had -- >> megyn: the apartment -- professor goodwin who suggested he should emulate teddy roosevelt and now he's making an announcement he's doing just that. >> i think that's a bully idea, as teddy would have said. the problem is, he didn't start three years ago. that would have been helpful. megyn: here's my question to you. the president is going to say the new theme will be everyone engage necessary fair play, everyo does their fair share, everyone gets a fair shot. when teddy roosevelt was president at the time, there wasn't income federal tax, there wasn't much of a regulatory scheme, today, it's a very different story. i know the occupy folks think it's unfair and so on but can he really make the same art about the rich not paying their fair share and so on when you've got the stat itsics about what --

statistics about what the rich are paying in taxes? >> obviously he's taking this fm the talk shows, and the move nationwide in the occupy movement driven by a british columbia vancouver movement. this is madness. politically, ideologically. >> megyn: politically is it madness? >> oh -- megyn: is that message, most americans overwhelmingly support raising taxes on the rich. if he goes out there and say it's not fair, the inequality isn't fair and tap into -- granted we're not in a position where there's no federal income tax. >> we're sure not. megyn: can he spin this along with theoesoes. >> he can spin -- >> megyn: but that message isn't work is it not? >> i don't think so, and all i gather is empirical evidence in that regard, and let's take the president's job approval ratings right now, in the latest, today's gallup presidential tracking poll, the president is at

43 percent. that is lower than jimmy carter at this point in his presidency. he has pierced the floor as established by jimmy quarter. this is not working. it is a continuation of a stlategm that is not working. class warfare is not working, divisiveness is not working. partisanship is not working for this president. he's got to return to at least some semblance of pragmatism and centrism in truth, not in terms of spend. megyn: he's not listening to you. >> he's done that before! >> mig lou, thank you. >> that's tomorrow folks, the president making those remarks. >> coming up, baby lisa irwin has been hissing for two months, her disappearance the centerpiece of america's most wanted, so why are lisa's parents now making a very bizarre request of those who are conducting the vigils outside of their home?

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megyn: country singer ph*eupdy mccreedy is in court in arkansas after police found her hiding in a bedroom closet with our five-year-old son at her boyfriend's home, she had been on the run several days after refuse to go return her little tpwoeu her mother, child's grandmother, who has legal custody of

this child. julie bandaras -- banderas. >> reporter: it's a convoluted case, according to an official in arkansas the mccre. dy case is underway. it's in juvenile court and is a closed session. what we know is mindy mccre. dy is in the courtroom and according to her father, zander, the child is in foster care and will be returned to his maternal grandmother in florida. when police found her and her son in the closet one sheriff said she was, quote, distraught but didn't put all fight. the troubled country music singer had been in the midst of a custody battle with her mother who had been the boy's guardian since 2007. according to one report, mccre. dy accused her mother of abusing him, saying the grand -- accusations the grandmother denies. she says her son texted mccready saying her mother would never see her again, the family incredibly

relieved when they learned the boy was found safe. >> it was a big relief and i immediately was kpwerpbd mindy, how she feels, because that is her son, and then i was concerned with vander, if he was traumatized or afraid, because you know, he's five years old. it's a lot for a five-year-old to go through. >> reporter: we spoke with the grandmother and she is asking to not have interviews. she is afraid they won't return vander to her if the cameras are outside her home. it's unclear whether or not mccready could face criminal charges. we'll learn more on that later. megyn: julie banderas, thank you very much. republicans launching a new round of attacks on the president with ads like this one: >> productivity of american workers is actually dropping >> we aren't out there hungry, selling america. we've been a little lazy over the last couple of decades. >> the symptoms of this crisis -- >> megyn: and the obama campaign is now pushing back.

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mig fox news alert. we have a bit of breaking news from capitol hill on a matter that affects many americans. president obama is now set to hold an unexpected news conference at the white house in moments. now, white house officials are saying thatly urge republicans to work with democrats to extend payroll tax cuts and avoid a tax increase on the middle class next year.

but this morning we heard of a compromise deal already reached. so what is the president actually going to say? is there really a reason to be focused on the republicans right now and will he be? our chief white house correspondent ed henry is live in washington. ed, what's going on here? >> megyn, what's going on in terms of why the president would come out now is he's sensing an opportunity to go back to last thursday night in the senate. for the first time in this job debate the president had an overwhelming majority of senators in both parties on his side. you had a grand total of 70 senators in both parties supporting some version of a payroll tax cut extension. the president hasn't really had much of a breakthrough throughout this entire debate like that, and what that means is senate republicans were split on what to move forward on. there was a democratic plan and republican plan. if you took both votes in sum, there was an overwhelming majority of senators in both parties who wanted to do something in terms of extending the payroll tax cut. they had differences on the

details. and so what they're trying to do in terms of that compromise you mentioned is harry reid on the democratic side, mitch mcconnell on the republican side, talking about scaling back the size of it. i think it's now going to dip under to $180 billion instead of $265 billion. the current plan, and it's still evolving, of course, is that this would only apply to a payroll tax extension for employees, not expand it to employers as well as the president has wanted. and then the other big question, of course, is how do you pay for all this or there are some democrats saying let's use savings from the war in iraq to pay for it, you've had another plan, surtax, on millionaires. the way we're hearing it now, there's going to be some sort of revised version of that tax on millionaires to make it more palatable for republicans and make take ideas from the supercommittee that failed. but remember, republicans did put tax changes on the table during that previous debate. i think he very bottom line is there's an emerging compromise in the senate that would suggest the president is going to get a

victory on this but the final details have not been written so he wants to get out there and talk directly to the american people and say look, it's time to finish this megyn. megyn: is this about talking to the american people and saying it's time to finish this, or is this a political move, ed? like he thinks he's going to get a deal so he's going to come out and say i want a deal before the deal is reached? >> let's see how he frames it but there's no doubt about it, during the jobs debate, the skpr committee debate, we've also seen both parties laying out what their messages are in terms of how they want to create jobs. megyn: let me just jump in, ed. this is what i'm trying to ask you. you're the expert, but this morning we got a message from trish turner, our senate producer, saying it looked like there was a possible deal, right, that some senate democratic aide was saying there will be a deal, 2:00 him floor speech from senator reid, expect to make reference to the quote compromise but not detail, and there was information about what this deal on tax breaks for the middle class, or the extension of the payroll tax holiday, would

look like, then we get news that the president is going to come out and start calling for a deal. but it's not like the president doesn't talk to harry reid so i'm wondering what's really going on, why would he be in fact doing this if there was a deal? >> sure. clearly he's been talking to senator reid. i think republicans have been complaining the president hasn't called him over in recent weeks to try to hash it out with them directly, so republicans on the hill no doubt will see this as a sort of victory lap for the president before there's even a compromise, when in fact it's the lawmakers doing it. from the white house perspective, the fact of the matter is while there's an emerging compromise, this thing is still not done yet, so they certainly believe the president has every right to come out here and continue to make his case, megyn. megyn: tell the woman next to you to pipe down! everyone is watching fox news channel, not that other channel, and she needs to use her inside voice! >> i'll do that! megyn: thanks ed. well, nice unemployment if you can get it. a former superintendent in

philadelphia's school system is stirring controversy, as she defend apply fog jobless benefits, i.e. unemployment payments, after she gets a cool $900,000 in a contract buyout of philadelphia taxpayers' dough. she's coming out swinging in her defense. >> reporter: yeah, yeah, i mean, her name is arlene acerman, former philadelphia superintendent, she was very highly recruited in 2007, she signed a five-year deal with the philadelphia schools and this tenure has been bumpy to say the very least. this past summer, she and the district worked out a deal for her to leave her contract, two years early, but including salary and vacation and sick time. her buyout was for $905,000. after she got the buyout, she promptly went down to the unemployment office and filed for benefits, and now the philadelphia mayor, michael nutter, is a little surprised. listen: >> given the size of the

settlement that was agreed to by the former superintendent, to now try to come back and get more money, it's perplexing. >> reporter: perplexing. now dr. ackerman is coming back, she's fighting, saying, i'm quoting here, i am furious that the mayor claims to be outraged when he helped broker the buyout package and made it public to the media. as you know, the philadelphia media has never tried to be fair or balanced when reporting on my tenure as superintendent. acerman also claims she gave back one year of that buyout salary to the philadelphia school district to help with special needs kids, and she says she left a very coveted job to take this one, and lost her benefits in the process, and she claims the reason she went down and filed for unemployment benefits is because she's unemployed. but now apparently the city is going to try and have negotiations with her over this, megyn. megyn: she says it's just a

nutter reason to be upset with the mayor! i'm sorry! listen, her point is interesting, because she's saying it's fine for him to express outrage now, but he agreed, he agreed not 20 -- he agreed to my filing the unemployment benefits. and now he's outraged. we'll discuss that. thank you for not audibly growing! if you did it at home, it's fine, i can't hear you. >> sorry meg! >> thanks john. again, when president obama comes out to talk about this effort to reach a tax cut deal, it's the extension of the payroll tax holiday that he and the congress agreed on a year ago, and now he wants to extend t. and the question about whether or not it willer extended because some republicans have said well, we can extend it but we have to pay for it, the democrats say let's pay for it with a surtax on mitton airs, the

republicans say that's not the way out, and they're trying to reach a deal. president obama is going to speak to something and we'll keep you abreast of the developments here. the major changes impacting your mail, the u.s. postal service releasing statements about how your mail service is about to change as it tries to save millions. >> and the new developments in the case of baby lisa irwin, america's most wanted dedicating an entire show to the search for her, so why are lisa's parents now doing something that is outraging neighbors, supporters, and the people who have given so much of their time to help find this baby girl?

megyn: fox news alert. another voice just heard from on reports that the senate could be close to a deal on extending tax cut for u.s. workers. president obama is expected to speak about this in moments, and we just got an e-mail from mitch mcconnell's office, senate

minority leader, top republican in the senate and it said, quote, there is a proposal written by democrats with no gop input that we just found out about in the press. it includes a tax hike, and then -- and the only thing bipartisan about that is the opposition to it. so it does not look like there is a deal on the extension of this payroll tax cut. as i mentioned earlier, the big debate has been how are you going to pay for it, and it appears the president will speak to this moments from now. you'll see it right here. meantime, the obama reelection campaign is stepping up its defense of faith in america, as the republicans raise questions about president obama's patriotism. candidates on the campaign trail launching new attacks on the president, repeatedly, they have been, for supposedly insulting americans and calling them lazy. rick perry even releasing this ad: >> productivity of american workers is actually dropping. >> we aren't out there

hungry, selling america. >> we've been a little bit lazy i think over the last couple of decades. >> the symptoms of this crisis of the american spirit are all around us. we've lost our ambition, our imagination. megyn: well, now, president obama is striking back. joining me mou now, brad blakeman, former assistant to george w. bush and dick harpoutlan, democratic chair. apparently the hoopla has gotten a little loud because the president came out as a fund-raiser last week, and quote, sometimes the pundits and newspapers and tv commentators like to talk about how america is slipping and america is in decline. that's not what you feel when you're in asia and he goes on to talk about why, then talks about how we are special and we are exception al. is this a reversal for the president brad and does he state it right when he says it's pundits, newspapers, tv

commentators talking about how america is slip something. >> no, it's using the president's own words when he says in a public forum we're lays kwrefplt we have a defeatist president who believes the best times in america are long since past and we don't have a very bright future. we do have a bright future once we get rid of a a defeatist president. in the '70s we had the carter malaise and now we have the obama funk. there is no clarity in policy, there is no confidence in the marketplace, and when you see 75 percent of americans across the board, regardless of whether they're republican,, independents, rich, poor, middle class, 75 percent megyn believe in an america today, that we are headed down the wrong track and believe they're going to blame this president for it. megyn: it's interesting to hear it's the tv commentators paupbdits who love to talk about how america is slipping when we have samples like this from the president himself. watch it: >> there are a lot of things that make foreign investors

see the u.s. as a great opportunity, our stability, our openness, our innovative free market culture. but we've been a little bit lazy over the last couple of decades. we've kind of taken it for granted people want to come here and we aren't out there hungry, selling america. >> we've lost our ambition, our imagination, and our willingness to do the things that built the golden gate bridge and hoover dam and unleashed all the potential in this country. megyn: and of course, also said that america has gone soft. what do you think, brad? the president has said some of that. is it unfair for him to say it's others who are saying he's the defender of america? >> he is hard will -- >> i'm sorry, that was for dick. >> i'm sorry, is it me? >> you, dick. >> okay, thank you. two things. first of all, i think the president is being critical of the american corporate society that has not done a

good job of selling america overseas. let's point out this. when the city of -- or the state of california decided to rebuild the bay bridge, they needed new steel, they ordered that steel from china. not from the united states of america. from china. the steel that's building one of the biggest and best bridges in this country was built in the wpa by american workers, using american steel, is now being fabricated with chinese steel. and the reason for that is people like jeffrey immelt who are outsourcing our jobs, or mitt romney, sending our jobs overseas, where in china, if they get $250 a month, they're lucky because they're living in a swayed society and that's where we're competing with these folks, and what the president is saying, the corporate work e. not the american worker, but corporate america has gotten lazy because all they want to do is make the money and have no investment in this country and no corporate patriotism, like jeffrey

*eult elt said, his allusion is not to this country, it's not to the country where it was born and lives but to the stockholders, to the international stockholders. that's what's wrong with this country. >> is he on point? it seems to me the president made the remarks that became controversial, and now he's come out and said some people in this country think america is in decline, is slipping, some people think that. that's not what you feel when you're in asia. we're exceptional. we're special. it seems like a direct response, without saying so, to the critics that he has to his own critics. >> of course. he got such blow back for the comments he made as president of the united states, disparaging the american worker and the american economy and the american work ethic. the president is, again, flipflopping. what he really meant to say is what he said, that he believes americans -- it's not his problem as a leader. it's our problem. we are the problem. and we can't understand or appreciate the greatness of

this president. it's always somebody else's problem. let me make a prediction. the few in a -- the president in a few minutes is going to come to the american people. he'sot going to lead and say we have a deal, he's not cloistered trying to get a deal with the congressional leaders. what he's -- what he's going to do, he's going lecture us, tell us it's the hill's problem. it's the president's problem. it's his failure to lead and get a deal together. he should be announce ago deal with the leaders behind him and what's he going to dork tell the american people it's not his fault, it's congress' fault. mig last word, dick. >> let me say this, to get the congressional leadership, republicans standing behind him, i'd be afraid i'd get a shim in the back. these guys aren't going to give anything this president wants because they're concerned about the next election. >> nonsense. >> wait a minute. to say the president has not attempted to broker a deal isn't consistent with the facts. he's talked to congressional leadership, time and time again, even took john boehner for a golf match. >> why is mc-- mitch

mcconnell have to learn in the press what the white house position is? >> republicans are white wing idealogue tea party people and will not bend at all. mig all right guys, i have to leave it at that. but it's interesting point -- it's an interesting point and that's what mcconnellconnels office is saying, they're learning about this deal with the -- through the press. that's interesting, if there is a deal. we're waiting for the president's comment and when he does, we'll take through live to show you what he has to say about a deal or no deal. >> that little car insurance lizard might have a heart attack if he cues up this video. millions of dollars in very expensive sports cars reduced to junk. wait until you hear what caused it. >> the justice department has just released hundreds of pages of documents late on friday in the fast & furious gun running scandal that show either some really clueless people work there or that some people lied to members of congress. this is a difficult position

for the department of justice to northbound. they either have to say somebody told them direct untruths or somebody didn't do their home work in getting to the bottom of what the real story was. why hasn't anyone been fired? we'll debate it. >> we're not -- you're not subjecting, are you, general holder, that it's not your responsibility to have known about this operation, is it? >> well, there are 115,000 employees in the united states department of justice there are -- >> and the buck stops with you. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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megyn: well, it was two-months ago yesterday that baby lisa irwin of missouri seemingly disappeared. this is her parentso though as her parents make a shocking decision to end all

prayer vigils outside her home on the two month anniversary of her disappearance. rod wheeler, a fox news contributor, they decide to mark the two-months point by telling the people who have been conducting vigils, one day a week, please go, it's disturbing to us, it's disturbing to their son, and they don't want them there. you tell me, is this not violation of rule number one in a missing persons case, keep attention on the case? >> exactly. i mean, if this isn't a tell tale accident air other here, what is? nine times out of ten, mo parents, especially in a case of a missing child, would want people to be there, would want people to come and have a prayer vigil or what have you. these folks are saying it's time to move on with our lives, get out of my driveway, get out of my yard and move somewhere else. what does that tell you? what it tells me as a homicide investigator, it tells me that the kansas city police department has been correct in focusing on these two people, and i'm

talking the mother and the stepfather here. megyn: i guess they say that it's bothering their -- they have a six-year-old and eight-year-old boy and and that it's disturbing, they don't understand what are these people doing out there. i don't know. is there an argument to be made that that is legitimate, that the sons are disturbed and these parents want to stop obsessing over the disappearance of their child? >> no. absolutely not. that argument doesn't make any sense whatsoever, if that is the argument, that they are using -- they're saying it's time move on with their lives. look, these two kids are the same two children, the same two boys that the parents were reluctant to have the police interrogator talk to at first, if you remember. so none of what they're saying makes any sense whatsoever. but again, it's another tell tale sign the police are strictly looking at these two individuals. megyn: it's interesting, the case was featured on america's most wanted friday night in a big episode and that's good for a missing persons case to get that kind of exposure ow john walsh in an interview with

kctv5 went off them -- after them for not cooperating with the investigators, urging them to work with authorities this is what you do when you have a mission child and he should know, you cooperate with police fully, do all the media you can, and if they had nothing to do with their daughter's disappearance they need to be the face of this baby, saying you're every day at the police station saying what can i do, what can i do. do you find that behavior inconsistent with that advice? >> absolutely, their behavior is very inconsistent. john walsh is very correct in what he was saying, these parents need to cooperate more with the police department, megyn. megyn: there are still no answers in this case, two months later, rod. thank you. >> thank you megyn. megyn: the wait for that check in the mail is about to get longer, the cut backs at the postoffice who will impact every american who still has a mailbox. that's next. some of the most radical islamist parties making big gains in egypt's elections. are we seeing the worst case

scenario that we were warned about in arab's spring? ambassador john bolton coming up next.

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because the moree can do in local neighborhoods and communities, the more we can help make opportunity possible. megyn: new documents show senior officials at the department of justice may have lied about the botched gun-running scheme known as "operation fast & furious." attorney general eric holder set to testify before congress. the doj dump a stack of records indicating that doj officials were either incompetent or gave false information knowingly when congress started to ask questions. >> we got a deceptive letter sent to senator grassley saying

there is nothing to look at, there is nothing wrong, there is nothing to worry about and that is a flat-out lie. it's not acceptable. megyn: william lajeunesse with more. >> reporter: that information was in a letter to senator grassley. three agencies prepared the letter. the assistant attorney general on behalf all three said we didn't knowingly let illegal guns go to mexico and none of our guns showed up at terry's murder scene. brewer blamed the atf acting director and agent in charge saying that he relied on their unequivocal denials. but is the attorney general's

office entirely blameless? many don't think so. 25 people reviewed that letter before it went out, including brewer and several deputy attorneys general. people in justice knew that letter going to congress contained inaccuracies and they signed off it anyway. plus they released this nasty email throwing burke under the bus. i'm quoting. what is so offensive is grassley's staff acted as willing stooges for the gun lobby. there could be payback coming because i'm told burke will be appearing before congressional investigators sometime next week, and he may want to release some emails of his own.

also eric holder's chief of staff. sources said he knew about this program yet he signed off on a letter as well. i'm told there are some videotapes out there with these straw buyers buying guns. the atf and the doj don't want to us see those tapes. and i'm being told the investigation may be expanding. megyn: this lanny brewer is high up in the justice department. didn't he say i don't remember seeing that letter sent to senator grassley. now it turns out he did review this? there is evidence in these documents that that testimony was either intentionally misleading or at the very least, not true? >> reporter: i can tell you the letter was reviewed -- brewer was in mexico city at the time but he did see drafts of the letter before it came out.

he did deny saying i didn't make the connection between gun walking in wide receiver and gun walking in fast and furious. i don't recall if he did deny seeing this letter before. megyn: i think that's what he said, i don't recall. i'll look into it. my information is he testified i don't recall. now we find out it was sent to him and as you points out, 25 people reviewed the letter before it went out. now the department of justice has had to withdraw their letter to a u.s. senator which is very, very rare. william, thank you. congressman darrell issa is leading the investigation into "operation fast & furious" in the house. he is with me now. congressman issa, thank you for being here. and let me ask you that question. the story of lanny brewer. he's high up in the department of justice. he's the one who testified before congress on this. what is his position on this letter, are these fingerprints

on it? my information was he testified he didn't remember seeing it. >> lanny brewer is the responsible individual when you go up the chain of command. after three years on the job, he's the one responsible for successes or failures and policies and he reports directly to eric holder as did grindler who is the number two and now chief of staff. we are back to starting over again in many ways. we are going back to interviewing, we'll have former u.s. attorney burke in there next week to follow up a lot of new questions. but this is one of those challenges where we are almost a year into this investigation. what we discover is we were misled, the word "lie" is always a tough one. ron wise may have told us what he thought was the truth, but

people told him things that were not true an passed them on in letters and testimony. so we'll be talking about all the individuals just at a time in which under the same leadership, under u.s. justice, we have this expanding scandal of the dea participating in money lounge dering in order to find out where the money goes in violation of agreements with mexico, in violation of u.s. law. clearly this is more about can the justice be trusted to conduct investigations according to the law or do they believe the even justifies the mean and these means both the dea and fast and furious are not means the american people want to see. that's what we want to get to the bottom of. there should be damage in this justice and there doesn't seem to be. megyn: one of holder's key deputies total the senate

judiciary committee, i can't say for sure whether i saw a draft of that letter and he said he had no recollection of seeing that letter before it was sent. these documents include evidence that he forwarded versions of that very letter from his official email to his gmail account on three occasions. once before it was sent and twice after. there is a question of who knew what when, and the doj instead of taking responsibility for this program did its best to interfere with the investigation. >> this was an attempt to push grassl aside. but they participated with knowingly false information. when you look at lanny brewer as one of the keys, what you see is somebody who played fast and loose with doing their job, supervising, knowing what was going on. yet they obviously had a will

the to do with making sure that wide receiver was revised in this fast and furious operation. remember wide receiver was a program under president bush that was found to be a file our and shut down. so if anything this should have been a lesson learned that it didn't work when it was done comparatively well, and didn't work under president bush. starting this again was a huge mistake on lanny brewer's watch. megyn: all those involved in this, the ones we know were involved in this have been reassigned, moved to another government paid position. but no firing. should somebody have been or be fired in the wake of this? >> people should be held accountable. in the case of lying to congress or causing false information to go to congress, that's a criminal violation. as we explore this we may be referring to justice for criminal prosecution people who

knowingly allowed false information to come to congress. it's not just going before us and raising your right handle. it's causing information to come to congress which is deceptive or flat untrue and clearly these emails, this document dump shows that happened with multiple individuals. that's where our investigation will continue as it expands to look at other wrongdoing. but, megyn, i hope one thing your listeners and viewers understand is we have to bring about change so this doesn't happen again. so farb we are a long way of getting by this should never again happen in our country and it, perhaps even occurring today. megyn: eric holder says he aggrieves with you on that point. big cuts coming to a post office near you. the u.s. postal services trying to stay out of bankruptcy. so it's slowing down delivery after the first of the year. you will have to wait a bit longer for your paycheck, mail

orlandoer prescription and for your magazines. doug mche willway in virginia. >> reporter: the postal service has been hemorrhaging money for the past few years. in 2000, only 10% of americans pay their bills on line. dates's 60%. today we got our first glimpse of how the postal service plans to make the cuts it's facing. it's going to be shuting down almost half of its sorting facilities from 480 to 275. that will result in the loss of 35,000 jobs. megyn: we are going to go to the white house and president obama. >> see an increase in their taxes january 1. a year ago at this time both parties came together to cut payroll taxes for the typical

american family by $1,000. as soon as this year end, so does that tax cut. if congress fails to renew that tax cut that same family will see a tax hike of $1,000 a year. there are many noacts middle class or those trying to get into the middle class who can afford to give up $1,000. not right now. that's why congress must account. though the unemployment rate went down last month, our recovery is still fragile. the situation in europe added to thawnt certainty. that's why the majority of economists believe it's important to extend the payroll tax cut. and those same economists would lower their growth estimates for our economy if it doesn't happen. not only is extending the payroll tax cut important for the economy as a whole, it's important for individual families. it's important insurance for them against the unexpected. it will help families pay their

bills. it will spur spending, it will spur hiring, and it, the right thing to do. that's why my jobs bill i propose extending the tax cut but expanding it to give the typical working family a tax cut of $1,500 next year. it was paid for by asking a little more from million airs, and billionaires. a few hundred thousand people paying a little more will extend the existing pay cut and expand it. last week virtually every senate republican voted against that tax cut. i know many republicans have sworn an south never to raise taxes as long as they live. how can it be the only time there is a catch is when it comes to raising taxes on middle class families? how can you fight tooth and nail to protect high-end tax breaks for the wealthiest americans yet barely lift a finger to prevent

taxes going up for 160 million americans who need the help. it doesn't make sense. now, the good news is i think the american people's voices are starting to get through in this town. i know last week speaker boehner said this tax cut helps the economy because it allows every working american to keep more of their money. over the weekend senate republican leaders said we shouldn't raise taxes on working people going into next year. i couldn't agree more. i hope the rest of their republican colleagues come around and join democrats to pass these tax cuts and put money back in the pock else of working americans. some republicans who have pushed back against the idea have said that we have got to pay for these tax cuts. and i just point out that they haven't always felt that way. over the last decade, they didn't feel the need to pay for massive tax cuts for the

wealthiest americans which is one of the reasons we face such large deficits. indeed when the republicans took over the house at the beginning of this year they changed the rules to say tax cuts don't have to be paid for. so forgive me a little bit of confusion when i hear folks insisting on tax cuts being paid for. having said that, we all recognize we have to make progress on the deficit and i'm willing to work with republicans to extend the payroll tax cut in a responsible way. what i'm not willing to do is pay for the extension in a way that hurts the economy. and as americans are well aware this summer i signed into law nearly $1 trillion in spending cuts and another $1 trillion in cuts in the pipeline. it would be irresponsible to now make additional deep cuts in areas like education, or innovation, or basic safety net that are critical to the economy

in order to pay for an extension of the payroll tax cut. we are not going to do that. nor are we going to undo the budget agreement i signed just a few short months ago. finally the millions of americans still looking for work. it would and terrible mistake for congress to go home for the holidays without extending unemployment insurance. if that happens, in january they will be leaving 1.3 million americans out in the cold. a lot of families, this emergency insurance is the last line of defense between hardship and catastrophy. taking that money out of the economy now would do extraordinary harm to the economy. if you believe that the government shouldn't take money out of people's pockets, i hope members of congress realize it's even worse when you take its out of the pockets of people who are unemployed and pounding the pavement looking for work. we are going through what is

still an extraordinary time in this country and in this economy. and i get letters every single day and i talk to people who say to me, this unemployment insurance is what allowed me to keep my house give was able to find another job. this is what allowed me to put gas in the tank to take my kids to school. we cannot play games with unemployment insurance when we still have an unemployment rate that is way too high. i put forward a whole range of ideas for reform of the unemployment insurance system and i'm happy to work with republicans on those issues. but the most important thing is making sure that gets sternldsed as well. this isn't just something i wants. this isn't just a political fight. independent economists, some of whom who have in the past worked for have you cans agreed if we don't extend the payroll tax cut

and don't extend unemployment insurance, it will hurt our economy. the economy won't grow as fast and we won't see hiring improve as quickly. it will take money out of the pockets of americans at a time when they need it. it will hurt americans who need it at a time when the economy is trying to get some traction in this recovery. it will hurt all of us and it will be a self-inflicted wound. sow my message to congress is this. keep your word to the american people and don't raise taxes on them right now. now is not the time to slam on the brakes, now is the time to step on the gas. now is the time to keep growing the economy to type creating jobs, to keep giving working americans the boost that they need. now is the time to make a real difference in the lives of the people who sent us here. let many get to work. thank you very much. megyn: there you have it.

there is no deal as of yet. the president calling on republicans to make one. they are at issue over whether to extend payroll tax holiday. it amounts to $1,5 a year for a family that makes $50,000 a year if i have got my numbers correct. this passed last year as a new tax break it was suppose to be somewhat temporary now the president and the democrats would like to extend it. the relationship cans said they are open to that but they want to see sit paid for. and the democrats have respond by saying let's do that with a surtax on millionaires. you want to add a permanent tax to pay for a temporary band aid. they have gone back and forth about what to do. the president said the republicans didn't always feel so committed to paying for tax cuts. also speaking to the need to

extend unemployment benefits set to expire for some at the end of this year. the package to extend that payroll tax would cost $180 billion to the americans and there is a question -- very big question about whether he can get support in the house for that. coming up. she vanished the day she appeared in an episode of the "people's court." michelle parker's father speaks out on his daughter's disappearance. members of the radical muslim brotherhood poised to assume control of the government in egypt. did the arab spring actually set the middle east back 30 years? we'll ask ambassador john bolton about that. how much is too much for a public employee's salary. a school official who made more than the president, then she jumped on the unemployment line when the district bought out her contract for almost a million dollars in "kelly's court."

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megyn: just because your car can go 150 miles an hour doesn't mean it should. some wealthy car owners finding out the hard way. 15 super cars including 8 custom ferraris and lamborghinis colliding on the way to a car show in japan. 10 drivers were hospitalized for minor injuries. police estimate damages at well

over $1 million. controversial tax break proposal in san francisco up for a vote about it board of supervisors. the plan is to bring convicted felons back into the workforce, saving businesses who hire them a whole lot of cash, and giving felons a chance to turn their lives around. but not everyone is happy with the proposal. >> reporter: the law is modeled after a similar program in philadelphia that motivates businesses to hire a felon by giving them a $10,000 tax break. as california releases thousands of inmates as part of a move to balance the state budget, they say the many critical to help these people find jobs in the private sector so they are less likely to re-offend. >> people are coming out of the prison system and jail system.

they have done their time. they are not getting access to house or employment. we need to try to incentivize the private sector to help us employ people. >> reporter: but critics like victims' rights advocates says it's wrong to give felons special treatment. >> it's wrong for people to be displaced because the city is paying someone else to get hired. >> reporter: he worries the program will turn san francisco into a mag that for criminals. some genuinely look for jobs, others not so much. other cities have not seen a lot of success. so if the idea is approved the supporters plan to launch a marketing campaign to encourage employers to participate.

even as many law abiding citizens and crime victims are out there looking for work. megyn? megyn: members of the radical islamic political groups poised to have a role in the egyptian government. did ascrap spring set the middle east back 30 years? we'll ask former ambassador john bolton that question after this break. state employees are under investigation accused of lying to get free handouts from the federal government at a time when people were struggling. we solved the mystery behind the theme music in newt gingrich's presidential ad. what famous movie this score is from. and the mess and campaign may be trying to send. >> we can return fourth people and the states we live in so we'll all have more freedom,

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megyn: new questions about fraud in the wake of hurricane irene. there was a lot of damage in connecticut. but an investigation is underway continue allegations that some state employees lied about their income levels in order to get extra money from the federal

government. trace gallagher following this one for us. >> reporter: in the wake of hurricane eileen there were hundreds of thousands of people in connecticut who were out of power. if you lose the power you lose the food inside your refrigerator. so the state put a program into place, food stamps offering $200 to $900 per family depending on your income. 24,000 people applied for that money. they did on the honor system and didn't initially verify the income. thousand they verified the applicants' income and a lot of people including a large chunk of state employees did not qualmify for those food stamps. his to the governor. >> i can honestly say if i look angry i am. if we find out that state employees or anyone else used

the occurrence of hurricane irene to defraud the assistance program, the consequences will be immediate and severe. >> reporter: this is is the same governor who just pushed a massive tax increase in connecticut so state workers could keep their jobs. megyn: it will be months before we get the final results of egypt's elections, but what we have seen so far is very troubling to some. members of one of the most radical islamic groups gang seats in parliament, threatening to destabilize the region. it raises questions about whether the u.s. made a mistake by not supporting hosni mubarak during the uprising. the israeli defense minister said the results so far are very, very disturbing, saying they are very concerned.

should they be? >> yes, absolutely. every indication is that both the parliamentary elections and next year's presidential elections will put great pressure on egypt concerning the camp david accords. their peace treaty with israel. to have a new govnment where candidates are talking about major major changes to camp david, which was the original land for peace deal. that's why these egyptian election results have a profound impact on america, but camp david has been the a see jim rock of foundation upon which our policy in the middle east and our efforts for greater stability in the region with been based 30 years. if that come unstuck, a lot could change and none of it for the good. megyn: what is happening in egypt that is worrying israel and should worry us. what i read is the muslim brotherhood has a 10% lead over

the more radical group. that causes concern to think that the muslim brotherhood is the less radical group. >> the islamist parties got 5% of the vote. we still have a long way to go. but more elections are going to come in the rural areas where many people think the islamists will do better. the democratic parties quote-unquote got 20% or less. probably 50 per of that vote is coptic christians who are per concerned about sharia law being imposed by the new majority. 30 years ago it was muslim brotherhood members who assassinated president anwar

sadat. so the question whether the moderate face they put on for western journalists to try and avoid repression from the mubarak government and if they gain power they will rule much like the more radical group. the muslim brotherhood you mentioned -- do we believe their rhetoric? they say they are committed to earn egypt that's civil, democratic, modern and constitutional. sounds great. buto -- but do we believe them? >> this is something the mainstream media have misreport for a year. they assume that the facebook media is a view of the population.

we have seen that is not the case by this vote counting. it under underlines why being to quick to slow mubarak under the bus could come back to haunt us. the presidential elections where many of the top candidates have already called for the camp david acodes to be substantially modified and even the military government has warmed relations with the regime in tehran and iran which is obviously been very threatening to american interests for a long time. megyn: it puts a different perspective of the video we saw of people dancing in the streets as mubarak fell and it felt like the dawn of the beginning of democracy celebrated by many in this country and the news media. you were sitting there saying just hold on. because this may not be a wonderful day for the united states. it may be a wonderful day for

many egyptians. but it may not be a wonderful day for america or israel. what are your redirections now about if the camp david accords are severely modified and perhaps ignored. what happens with respect to us and our interests in the middle east? >> israel will be substantially threatened, and i think the jordanian peace agreement with israel would almost come unstuck as well. when you look at the violence we see in syria and iran's efforts to bring other middle eastern governments unsway. when you look at its support for terrorism and its support for nuclear weapons. a deteriorating environment for israel is bad news for our other allies. what happens in egypt can affect other arab states in the middle east as well. the consequences for america, for israel, for our arab friend in the region could be quite

dramatic. this is not overstating it. this could happen very soon right up to and including next year. megyn: ambassador john bolton, thank you, sir. she was paid $900,000 to leave her taxpayer-funded job in the several school system. she was the superintendent. then she applied for unemployment. did she get what was rightfully hers or did she scam the taxpayers. nearly three weeks since michelle parker vanished. today her father talks about the chief suspect in the case. >> michelle is a survivor just like me. she is a tough girl. she ain't going down without a fight. michelle, i'm looking for you. ♪

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megyn: "kelly's court" is back in session. double dipping on the taxpayers' dime. arlene ackerman was brought in personally by the governor and mayor to lead the city's school reform initiative. but things went south after three years. so the city bought her out of that contract to the tune of $900,000, plus sick and personal time. no sooner than she said good-bye, she hopped on the unemployment line and filed for benefits. here is one man's reactions. >> she applied for unemployment. >> that doesn't surprise me. megyn: joining me now mark eiglarsh and gill -- and kimberly guilfoyle.

she is taking a beating in the press for doing this. kimberly, why should she have not filed for unemployment after she was given this pay out. >> how about greed? it am not so good. this is a woman milking the system and take advantage of it. she was pushed out because she wasn't doing her job fairly or adequately. she received and negotiated a very high settlement in the form of $900,000. it's adding insult to injury. she doesn't care about the children in that school district that she wants to milk it pore more money. she continues to feel even titled tone titlements she doesn't deserve. megyn: she earned $346,000 a year, but the payout she got was almost a million dollars. now she could get $2,000 a month on top 6 her severance package.

what is her defense? >> let many start off legally. it's probably easier for me to defend m fake client on legal grounds. there is nothing unlawful. the school district in her separation agreement section 3a specifically states the district will not contest her obtaining unemployment benefits, so they knew about it. megyn: that's why she is so ticked off that the mayor came out and said i'm dumb founded. she has a point. his school district agreed to this, so don't blame her. it was the school district who agreed she could do this. >> now on to the moral ground. number one, she doe nateed a year of her salary to the city's academic program that they have there. she didn't have to. but she did. if we are doing a moral judgment. let, have all the facts out on the table.

the performance was better than how kimberly represented. apparently test scores went up all three years she was there. school violence down 29% and graduation rates up 7%. megyn: there were questions about whether she adequately responded to difficult race relations in the school district and a question about whether she gave a contract to a minority company over a company that was the lowest bidder. >> they did an investigation on that. the fact that the test scores are up are not directly attributed to dr. ackerman. prior to her even arriving there. you can't say it's a proximate cause. she is an example of exactly why we need major overhaul in the school educational system. people who aren't putting the interests of the children first. she has been accused of unfair practices in terms of aouring contracts to other people.

megyn: can anything be done to top her from applying for the unemployment? >> legally speaking she is able to. that's why it calls to a larger moral and ethical question as to whether she has received fair compensation and she has. people suffering who can't put food on the table who have lost their job and been laid off. those are the people who should be collecting unemployment benefits. not this woman. megyn: they already paid her a million dollars. should they be paying another $2,000 a month? >> did kimberly say mark was right? aren't we done? megyn: you have a good point. >> not legally. check me out on that one. megyn: but she has not been approved so it suggests there is some additional step that needs to be taken. >> she is going to get it's she

is unemployed. morally everyone is free to have their own judgment. but she left her prior job with the understanding she would work for five years. her prior job would have paid her thousands 6 doll narls retirement benefits. she forewent those to come here. all things being equal she is looking to get that extra compensation. >> how about the merit system for teachers who do a great job a and aren't under investigation. they didn't want her either, believe me. megyn: isn't there anything that can be done? because it seems strange, i think to most our viewers to find out you got a payout from the philadelphia school system. they gave you a payout on your contract. why can you also get unemployment. unemployment is to help those unemployed cross the bridge between jobs. but she has already done that.

she has been made hole. >> double compensated. megyn: why can't she be forced to wait for unemployment. >> that's what -- me first? listen, that's what i would want her to do if i'm a citizen looking at this in this city that's cash strapped. but here is the analysis. is there anything that precludes her from doing this and taking what is legally hers? the answer is no. >> dr. ackerman broke the bank of the school district and she should be preclude from serving double compensation to the end of that 2-year period. that's the right thing. we are here say shame on her. she shouldn't do it. she knows what the right thing to do. the school system is broke. megyn: if she needed to extract an agreement from the school board not to contest her

unemployment benefits, if those benefits knead to be approved by the department of labor, doesn't it suggest to you there is some sort of decision making process that goes on in the department of labor and could all this hubbub -- should it play into that decision making? >> i think it should. there should be an appeals process. look at that woman. trust me, milking the system. the school district of philadelphia is her cash cow and she is going to go after that until she gets the money. it's a done deal. she is outraged. i hope they fight it and block her from getting its and establish a precedence. megyn: she had been confrontational with the school board daring them to fire her. >> i would, too, fire me. megyn: she did give back a full year's salary to this program which she didn't have to do. a question is whether she is as

bad as some people would have you believe. a good debate. coming up, a florida mother vanishes without a trace the day she appears on a popular tv show with her ex-fiance. now michelle parker's father is speaking out. plus, what was that theme song in the newt gingrich ad? and from which theme of which movie did they get it? only one calcium supplement does that in one daily dose. citracal slow release... continuously releases calcium plus d for the efficient absorption my body needs. citracal. you noticed! these clothes are too big, so i'm donating them.

megyn: the head of the faa mass left his job temporarily following a drunk driving arrest. he was pulled over in fairfax, virginia for driving on the wrong side of the road. he was alone in the car and there was no accidents. also from our driving under the

influence file. new troubles for 2010 miss usa. the 26-year-old beauty queen tbusd for -- for us pigs much -- for suspicion of drunk driving. her attorney confirmed the details after she denied them. her attorney said she is saddened and apologetic for the situation she was in. new developments in the case of missing florida mom michelle parker. the father of her children appeared on the show with her at the time. he's said to be the prime suspect in the case. trace gallagher. >> reporter: this case did appear to be slowing way down. now it's back in full throttle. not only is the search for michelle parker back on, it's now expanding with authorities involved as well as volunteers.

you see the sheriff's dive team is searching a retention pond near the home of dale smith's father. the ex-fee and you save parker, he's the last person known to have seen her. he refuses to take a lie detector test. and police say's the prime suspect. now michelle parker's family is turning against dale smith. her father is saying he, the number one guy. he can't run, he can't hide, and we are coming after you. here is a plea from dad. listen. >> i used to cry, mad, now name mad and i'm fighting. and i want to find michelle. i know michelle is a survivor just like me. she is a tough girl, you know. she ain't going down with a fight. >> reporter: the command post has shifted to the barn. that many the bar that's

michelle parker worked at. she was on her way to work and she never showed up. they shifted the command post. she went missing hours after she and her ex-fiance appeared on people's court over an engagement ring. who was going to pay for it. still no sign of her. megyn: on and much lighter note. coming up after this break. the answer to what movie newt gingrich's folks may have poached this music from. >> we can regain respect by remaining true to usual ro our faith. we can return power to the states. medicare. it doesn't cover everything.

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