president obama to take the stage this hour in kansas and deliver what he calls a make-or-break speech for america's middle class. welcome to "america live," everyone, i'm megyn kelly. the president following in the footsteps he says of theodore roosevelt, set to speak in the same town where roosevelt delivered a controversial address more than a century ago. he then called for a major expansion in government, which drew a lot of harsh criticism, tr did, so the big question today is what can we expect president obama to call for. chris stirewalt is our digital politics editor and he's with us. they suggested that the president follow in the footsteps of teddy roosevelt and lo and behold he appears to be attempting to do exactly that. the place of the speech has direct parallels but it may

cause a shiver down the spine of some tea party members. >> reporter: they are in line in terms of their theories about what government ought to do and what it ought to be in terms of the progressive movement. what teddy roosevelt did, remember this was right as he was leaving the republican party, he would form his own party the bull months party that would run against republican, william howard taft his successor and hand the election to progressive hero woodrow wilson. what teddy roosevelt was calling for as you a socialistic nationalism in which the government would take things away from people who got things, that he didn't think they should have, give it to the working man. they talked about the square deal, fairness, all of these new man dates for government, something the republican party has walked away from in very decided fashion certainly since the reagan era in terms of what the role and purpose of government is. this is obama embracing a republican icon of a by gone

era. megyn: putting aside whether people understand the party affiliations, bull months, he was a republican, he wasn't, it was a progressive idea, i think what americans might understand is teddy roosevelt was calling for something akin to a socialist nationalism. why would president obama want to do anything to associate himself with that word socialist which has been used against him by so many of the current republican presidential candidates, among others. >> i think the biggest thing he's trying to do is shame the republicans. he's saying, look even one of your own, a great her oef yours that was on mount rushmore he was a socialist. why are you people not being like him, why are you not following in his footsteps in obviously this is not a good thing for the president to line up with this sort of progress is eupl and liberal is eupl and socialism that has become so much maligned and so much

disliked in the modern american political discourse. megyn: is this the big push, chris. we've seen the independent polling numbers fall and full and fall is this a big push to rally base support? not to be cynical about whether it's a campaign event, because the president does have an agenda he is trying to get through in congress now that he's not seeing a lot of luck with, is this the big push to rally democratic base voters, eleven or so months before the next election? >> the biggest push, the biggest and most important thing that the president is doing now, make no mistake is to try to be seen as the do something activist president in the mold of teddy roosevelt who changed the world, who changed american politics who was this incredible force for proceein america. and not what chris christie said about him as it related to the debt related supercommittee, what the hell are we paying you

for, a president seen lacking and on the side lines and unwilling to change events as roosevelt did. megyn: we'll have to see what effect this will have on others outside the democratic base. today's economy very different from how it was from president roosevelt's time in 1910. it wasn't until the ratification of the 16th amendment in 1913 that the government was allowed to tax the income of individuals. back when he made those remarks there was no personal income tax. when he went out there and called for shared burden via taxes he was talking about something a little bit different than what we have today. even after the ratification of the 16th amendment the income tax was only 7%. today the top rate is 35%. unemployment at that time was also lower. in 1910 it was about 5.8%, today 8.6. we're going to take a closer

look at the president's economic speech today. joining us in our next hour to react will be republican presidential candidate michelle bachmann. she will join us from the campaign trail straight to our studios to weigh in on what she hears as we all listen today. back in washington a epic political showdown as the gloves come off between two former house speakers. it started when nancy pelosi lobed a bomb at newt gingrich's campaign, pelosi hinting she would spill some of the dirt she claims she learned when investigating gingrich back in the 1990s. but gingrich pointed out that if pelosi talked about things she learned during closed door ethic meetings it would be speaker pelosi who would be in real trouble. trace gallagher has more on the dustup. >> reporter: leader pelosi is changing her tune maybe even adjusting the lyrics a bit. i want to put this on the screen, this is what she said, i'm quoting here, one of these

days, she said, i'll have a conversation about newt gingrich, and then she went onto say, and i'm quoting, i know a lot about him, i served on the investigative committee that investigated him for four years -- or for of us, rather locked in a room in an undisclosed location for a year, a thousand pages of his stuff. well then newt gingrich responded by saying this. listen. >> if she is suggesting she is going to use material that she developed while she was on the ethics committee that is a fundamental violation of the rules of the house and i would hope that members would immediately file charges against her the second she does it. we turned over a million pages of material. we had a huge report. the total 83 charges were repudiated. >> reporter: now just for accuracy and context, the investigation of newt gingrich was for using tax exempt money to teach a college course, 83 of

the 84 allegations were in fact dropped. and the 84th involved contradictory documents that he gave and statements that he gave the committee. the irs also found there was no violation of the laws. as for now the's claim that pelosi would be violating house rules if she disclosed anything from that investigation, in fact rule seven does say that it is a confidentiality agreement so she could not do that. then pelosi's camp came out and her spokesman said and i'm quoting, leader pelosi was clearly referring to the extensive amount of information that is in the public record, including the comprehensive committee report with which the public may not fully be aware. the bottom line here, megyn is we don't expect any juicy details from former speaker pelosi, now leader pelosi about newt gingrich and that committee any time soon. megyn: but are we wrong about that? because she has made this sort of tint lating promise to

some. that will be the subject of today's "kelly's court." if she comes out with something against newt gingrich how do we determine if she is revealing confidential information? if she does reveal something she is not supposed to reveal what is newt gingrich talking about how the media should file charges. we'll take up that case in today's "kelly's court," battle of the former speakers. former illinois governor blagojevich is in court to find out if he spends the next two two decades behind bars. he was convicted of corruption for a number of schemes including trying to sell president obama's former senate seat. mike tobin live at the federal courthouse in chicago. mike. >> reporter: you know the interesting thing is despite the conviction on 18 counts of corruption all of the arguments that you're hearing now in pre-sentencing sound like they are still making a case for

blago's innocence. the defense attorney who is speaking today is saying that the advisers were running the show, blago was taking directives from them, he was not giving them directives. they also say this a harsh sentence should a employ to extensive criminal activity, not extensive talk. now the government, the prosecutor has a different take on things e. says that blagojevich always knew what he wanted that he was making directives. he gave an example of the appointment of valerie jarrett to the seat which was to happen in exchange for him being appointed to the cabinet secretary post. he never got that or got the moan was asking for in different cases. the government says that is irrelevant. now one witness is being brought in to talk about blagojevich's character and the positive impact he had during the time he was governor. most of the arguments still sound like we are talking about guilt or in sense at a time when a convict will generally be throwing himself on the phers seion the mercy of the court

begging for leniency from the judge. megyn: new questions today about america's relationship with israel and how it could affect the 2012 election. in three minutes we'll look at whether the obama administration is in new trouble with jewish voters. the justice department releasing hundreds of documents in the fast and furious gun running sting gone bad. why hasn't any one been fired? we'll debate. new questions after the parents of little lisa irwin in missouri ask those holding vigils for her we'll speak with the father of this little gl w was abducted and killed back in 1993. why he says this request is just appalling. >> he told us if we said anything he'd slit our throats, and to lay down face down on the

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megyn: president obama's policy regarding israel is coming under fire today. republicans say the president is being disloyal to a longtime and important ally. mitt romney saying israel has been thrown under the bus time and again. the president disputing that saying in a fund-raiser last week, quote i try in the to pat myself too much on the back but this administration has done more for the security of the state of israel than any previous administration. joining me now former clinton pollster doug schoen and a former ambassador to the united nations. gentlemen, thank you for being here. there are a few controversies erupting. first of all, the defense secretary leon panetta came out and suggested that israel may bear some responsibility for

increasing its own isolation. then they had the u.s. ambassador to belgium come out and say that one of the reasons we can't find peace in the middle east is because of israel's policies, and that, you know, every rocket shot over the border, every new settlement announced in israel leads to additional hatred and bigotry, and many members of the jewish faith and folks from israel came out and said, what is america doing? what are these leading representatives of america doing blaming israel? obama came out with a forceful defense. dan, healt let me start with you, ambassador, your reaction to this. >> well, i certainly think the comments made by the u.s. ambassador to belgium are unfortunate. but i also believe very strongly that unfortunately there is a very serious erosion not only in the support of the jewish community anjou i shal and

jewish backers who as you know have voted overwhelmingly for president obama and some of whom have helped to make him president by their backing, there is erosion not only in the support but in their trust of the president, because over the last few years the president has really distanced himself from israel. he seems to have bought into the palestinian narrative. he has visited the region, including a famous beach in cairo and a bow to the saudi king and not even bothered to visit israel. he has made the rift between israel and the united states more public than it ever was before. we've had our differences before, at this time the president has really created the rift, which is manipulated by your enemies, by the u.s.'s enemies and by our enemies and many countries around the wormed woularound the world would not

behave the way they do if they thought there was a strong america president and if they thought the bond between israel and the united states was as strong as ever. we see erosion not in the support but in the trust, i believe of the jewish community in the president, which i think unfortunately the president has earned over these few years by distancing himself from israel and by his treatment of israel and by making demands of israel, which we believe were unnecessary and unhelpful as well. megyn: doug, do the polls suggest that there is an erosion of support in the jewish vote for this president. there was a special election in new york for the seat that was vacated b by anthony weiner, it went to a republican. he ran on saying president obama had alienated jewish voters in israel. is there any truth to that?

>> i think there is, megyn. the gallop poll shows a 20, 25% decline in approval by jews down to 54%. the ninth district of new york that you cited is proof positive that the president's support particularly with orthodox jews is declining precipitously. you have states like florida, pennsylvania, ohio and nevada which will be key swing states where the jewish vote could be decisive. based on what i'm hearing when i'm out talking to organized jewish groups, megyn, the decline is real, pallable and it's intense. megyn: does it matter, doug, even though the support has declined, you're still talking 54% supports the president. >> he got close to 80% last time. if he loses 25, 30% that could be enough in a state like florida, which as we've seen previously can turn on a few thousand votes, that could be enough to swing the election. pennsylvania is close, ohio is close, so the jewish vote

literally could be decisive in 2012 and right now it's going in the wrong direction for the president. megyn: now the white house came out quickly after this ambassador's comments and said look we condemn antisepl advertise anytime all its forms. they don't want to be seen as condoning this. they say there is no justification fear prejudice. then the ambassador, earlier last week president obama made the remark that we said to you. this administration has done more for the security of israel than any previous administration, do you believe that is true? >> well, megyn, i believe that the security, defense, military, and other cooperations between israel and the united states continue, and i do believe that this president has been as committed to israel's security

as other presidents. i don't think more, but probably no less. but this goes far beyond security. this goes into a very, very long friendship. israel truly is the united state's only friend, and i will venture to say something very far reaching, not only in the region, but one of the few friends the united states has in the world today. it's certainly its for most and strongest and most loyal ally in the world and in the region. and it deserves, i truly believe, better treatment by the president of the united states, better understanding, better -- more support, and as to the jewish vote i want to make one thing very clear, i believe and i have many, many friends in the united states, i believe that the jews in the united states are americans first, and i believe that their concern comes not only because they believe israel is mistreated, but because i believe they think

this is also bad for the united ates and for its standing in the world, including other mistakes the president may have made. but i believe they feel very strongly that israel has been mistreated. israel has always been the canary in the coal mine. israel is the only outpost and this is magnified by the arab spring that has become the arab awakening, the islamic uprising. at times like this the support should be much, much stronger and the bond should be much, much tighter than it is. megyn: ambassador, doug schoen, thank you v. i want to tell our viewers that both mitt romney and newt gingrich have called on the president to fire this ambassador. the white house now standing behind him. he misplaced $1.2 billion in investors money. somehow john corzine is a free man. stay tuned, new developments on his situation at the top of the hour. it is the mugshot that says it all, a would be crook asks an

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megyn: a late night stick up ends with a full on beat down for one would-be mugger in california. that is anthony miranda's mugshot, and his face says it all. almost. the man he tried to mug, an ultimate fighter. talk about picking your battles. trace gallagher with a little, i don't know, justice here? >> reporter: yeah. the ultimate fighter's name is justin, that is all he goes by, megyn. 11:30 at night he's sitting in his car he gets a knock on the window. someone asks him if he has a light for a smoke, he says i don't spoke. the would be mugger puts a gun

against his head and justin says, he asked me for his wallet, my phone and keys, i told him i don't have a wallet, i only have cash. he cursed me like mf. he gave him $30. he wasn't satisfied. he said look it's a hollow-point, i'll blow your brains out. he ordered justin out of the car. big mistake mr. mugger. when the mugger put the gun to justin's chest he said, quote, i put him down to the ground, he was fighting, he didn't want to get up, he was begging me to let him go e says he has a baby. this is what anthony miranda, the would be mugger looked like after he was forced to the ground. not a very pretty picture. keep in mind the ultimate fighter is 6'2", 250 pounds. the would be mugger 5'5", 148 pounds. this is what he's supposed to look like, megyn in case you're wondering what anthony miranda

looked like before that beat down. megyn: oh, boy, anthony. >> reporter: you see that, you see that, that is crime does not pay. by the way justin was asked what his secrets were and he would only reveal these cryptic phra phrases, former military. high-risk training, hostage rescue. megyn: why do we think he's an ultimate fighter. >> reporter: he said he was, a mixed martial arts specialist. megyn: why don't we know his last name. >> reporter: he wouldn't let people take pictures of his body. megyn: can we get a picture of your abs? no. >> reporter: how about your chest? you bet. megyn: you know, for journalistic purposes, important. coming up fast and furious fallout, more of it today. a new document dump shows top doj officials either can't do their jobs or may have flat out lied to congress. and yet nobody, nobody has been

handed a pink slip. two of our favorite attorneys weigh in with both sides next. the parents of missing baby lisa irwin asking supporters to stop holdin vigils outside of their home. but the family of polyklass a little girl kidnapped 18 years ago said that is the last thing a family would do. the father of polyjoins me live to talk about his experience. >> we are not going to give up until we find poly, and honey, hang on, we are coming to get you. almost tastes like one of jack's als. fiber one. h, forgot jack cereal. [ jack ] what's for breakfast? um... try the number one! [ jack ] yeah, ts is pretty good. [ male announcer ]alf a day's worth of fiber. fiber one.

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megyn: fox news alert. we are waiting to hear from president obama. he's expected to speak about the economy and his push for extending middle class tax cuts. he's speaking in the same town where teddy roosevelt delivered his new century speech. we'll have michele bachmann here live to react. new documents released by the justice department raising questions about whether some top department of justice officials lied to congress about the botched gun running sting "operation fast & furious." attorney general eric holder is expected to testify again this week about what he knew.

now thanks to a late friday document dump by the doj we learn some at the top levels of justice knew more than they let on while testifying before congress or some of it would appear. john flannery, the former federal prosecutor for new york. gentlemen, thank you both for being here. this is a startling document dump as we call it in the law, the doj releasing internal memos and correspondence. chuck grassley the senator got involved early on and said did you let guns walk or didn't you? the doj had to respond to that. there was fierce back and forth. and the u.s. attorney for arizona and others. but how to respond to this letter? i want to talk to you about lanny brewer.

this -- he is high up within the department of justice. this guy testified before the senate in november that he could not say for sure whether he saw a draft of this letter. it appears to be full of inacross a is. the doj withdrew it it was so riddled with inaccuracies. he said in written testimony i have month recollection of seeing it before it was sent. the document dump shows brewer forwarded versions of the letter from his personal gmail and his deputy was deeply involved in the drafting of it and brewer praised him on it saying great work as usual. what should be done with brewer. neither he nor anybody else has been fired or disciplined. >> you hit it on head. the fact of the matter is no one has been disexplained or terminated. they reassigned the atf people.

but no one has taken responsibility. what congress is doing is right. calling on this white house to have somebody stake responsibility. in private life if you make a false statement to congress you go to jail. you don't get to send a letter saying it was inaccurate, when withdraw it. you dent goat to withdraw it. you end up being indicted. there has to be responsibility. lenny brewer praising the author of the primary author of the letter. he says he can't remember read it. he forward it to his own gmail account not once, but twice. eric holder has a lot of explaining to do. i think this is about to become fast and furious. i have been hesitant calling for eric holder's re is nation. but i see why people are --

holder's resignation. megyn: one thing if this wasn't a big deal. but the document dump shows it was a big deal. they didn't know how to respond. now this guy brewer we find out he forwarded this to his own gmail. then he goes before congress an says, you know, i can't remember whether i reviewed it. it just stinks, john. >> it does stink. i thought last presentation was so convincing i textsed him to call my office because i think he needs outside counsel. megyn: you are coming from the left and you say that. >> i don't come from the right or the left. here you have a department charged to protect us from drugs and laundering money and it's doing both in the dea and the atf. we should have the atf in

receivership. instead of fast and furious it should be dumb and dangerous. the concern i have, you said a moment ago mob has lost their job. you the u.s. attorney burke resigned. megyn: resigned and now he's working in legal advisory services. >> it what is probably succeed he leave. but he seemed to be a hard charger and pleasing what he was being told. and i don't know that he believed what he said or not. but he's obviously the first person i would speak to in an investigation. it's great for the hill to investigate but they don't do it the right way. we need an independent investigation of this thing top to bottom. a special counsel. i believe so. megyn: do you think that's in order, jay in some have called for that. burke resigned. he didn't get fired.

he resigned. he was the arizona u.s. attorney. the letters he's trying to defend -- if these letters where they are saying how should we respond to grassley, burke said defend the atf, what are you talking about? it's not true. either he was persuasive even though he didn't believe it or he genuinely didn't know. it doesn't sounds like he knew. what about atf director ken melton, now he's in the office of legal affairs. he's still getting a federal paycheck. >> let me take one step further here. i think that because of the difficulty in self-investigation within the justice department's office of inspector general, that's not reality that will go on in the justice department. it's limited to what they can do. they are pushing hard. this is one of those times where a special investigator may well be necessary because the

conflicting data statements coming out of the justice department are being contradicted by their own documents. and now they are dumping those documents late on a friday in order to do what? you think the american people weren't paying attention to it? this is serious stuff. megyn: how long can eric holder say, i didn't know? somebody has got to take responsibility, no? >> i think the a.g. has to. this is like three strikes and you are out. we had the atf, way cone and ruby ridge. it's refreshing that jay and i agree. but i don't think they should be investigating themselves. even if the attorney general didn't know, he should have known. it's not acceptable to be in charge and have such a large offense occur and not be held responsible. the u.s. attorney for whatever reason he resigned ahead of the atf. these are serious concerns. puts aside the partisan by play *.

this can't stand. this can't be allowed to happen. megyn: it's interesting that you both agree, normally you don't. >> this is pretty serious. >> i thought i heard "the national anthem" when jay was talking a few moments ago. nice being with you. megyn: new concerns in the search for lisa irwin. her parents pulling the plug on vigils at their home. coming up we'll speak with the father of murder victim polly klaas about why this move may be the worst thing to happen at this point in the case. and we have new information on why the parents did it. the tragedy in texas. why this model's near-death encounter with an airplane propeller is raising questions. cranberry juice? wake up!

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megyn: new information in the case of the search for missing baby lisa irwin. her parents have told people to stop holding vigils on their hands. that's raising questions with some people, including the parents of this little girl. 12-year-old polly klaas was abducted from her own bedroom in 1993. she was later found murdered. marc klaas, i appreciate you coming to weigh in on this. the parents of a missing baby girl to tell the people, keeping media attention on this case -- please go away, we have had enough, we want to get back to normal. >> first let me just remind people it was actually 18 years

ago yesterday that polly's remains were found. one of the collateral damages of this action of theirs is law enforcement has closed down on some of their investigation. they reassigned detectives on to other cases. which is the last thing the world the parents should want. they should be out there full force advocating for their child, doing everything they can to encourage people to look for their child. and keep law enforcement task force as a full component so this thing can ultimately be solved. but that doesn't seem to be the direction they want to go. megyn: a source close to the parents wants to point out debora bradley helped organize these prayer vigils at the outset, but her young boys starting feeling insecure with people on the lawn and they found one of these village attendees had begun using the vigils to spy for the press or

funnel information about the family to the press which led in part to them saying please don't do the vigils anymore. does that soften your feeling any? >> it seems to be these children are being used as an excuse or justification for not cooperating with law enforcement or not wanting the public involved. it seems to me if i were an 1-year-old or little boy would i want to do everything i can to help my little sister. i would want to be the superhero that came in and solved the case. i would want to make sure if i were kidnapped that mommy and daddy would want to do everything they could to bring me back. but that's not what's happening. i'm concerned about what's going on in the minds of these children. i have the feeling they feel abandoned themselves. megyn: they said we cut off contact with the police because they became accuse torry. we have hours who say couldn't

sit down with them. they will use it against you. megyn: does that make sense to you? >> of course that speaks to me. if you are going to be listening to lawyers instead of listening to your heart you probably deserve to be in a courtroom. the reality is that the vast majority -- something like 82% of abduction cases involved a family member. of course, the police are going to be look at you. therefore you you have to do everything you can to eliminate yourself as a suspect. another thing that's exasperating this case is the shifting stories. remember at the beginning deborah bradley said she put the baby to sleep at 10:30. now it turns out she was drunk out of her miernl at 10:30. the last time she remembers seeing the baby was at 6:30. instead of shifting their stories and refusing to speak to law enforcement, they should be spend every day with the cops conferring with the cops, making

sure that the cops are following up on every lead and dem straight together world that they are their children's bested a voa cat and we are not seeing that out of these folks. megyn: how important is it to keep media attention on the case in the case of a missing child which vigils help do? >> i think it many incredibly important, particularly local media. the reason it many important is law enforcement need an excuse to move on to other issues. they are not well funded anymore. they aren't well resourced as when were even when my daughter was missing, therefore it becomes problematic to keep a full task force going all the time. the best way to encourage that honesty in law enforcement is through media coverage. get people invested in your child so law enforce 789 has no choice -- so law enforcement has no choice but to move forward on all front.

given the fact that they have limited resources and they are investigating various investigations of the family investigation, the stranger, the sex offender investigation, the peripheral contact investigation. they won't be able to direct the full force of that investigation until they eliminate the various possibilities and lisa -- i'm sorry, jeremy and debra are not doing that. their actions are taking them in the other direction. they are forcing law enforcement to continue to investigate their own involvement in this situation. megyn: marc klaas, thank you for coming on with your perspective, sir. we are just moments away from what the president calls a make or break speech for america's middle class. michele bachmann will join us afterwards with her take on today's address in kansas. there is $1.2 billion missing

from the fund managed by jon corzine. why isn't he charged with something? we'll investigate. "kelly's court" takes on the showdown between two former house speakers. speaker pelosi versus speaker gingrich in an ethics brawl that may cost one of them in a big way. >> she is suggesting she is going to use material she developed while she is on the ethics committee. that's a fundamental violation of the rules of the house and i hope they immediately file charges against her the second she does it. i habe a cohd. and i toog nyguil bud i'm stild stubbed up. [ male announcer ] sorry, buddy. truth is, nyquil doesn't un-stuff your nose. what? [ male announcer ] it doesn't have a decongestant. really? [ male announcer ] you need a more complete cold formula, like alka-seltzer plus liquid gels. it's specially formulated to fight your worst cold symptoms, plus relieve your stuffy nose. [ deep breath ] thank you!

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megyn: fox news alert.

president obama moments away from taking the stage in kansas, where he is expected to make a speech on the economy. rich lowry is editor of the national revue and a fox news contributor. the president -- it's so interesting, doris good win says he ought to start channeling theodore roosevelt by emulating his appeal for a square deal an does it. i'm sure it was pure coincidence. what are the risks of the president doing this. >> he had the big stick, he wrote lots of books, he shot big game.

but this is an inside game. no one out there in the country is going to say i feel much bet better economy because the president is associating himself with testifiedy roosevelt it's casting about for a theoretical construct for his political positioning which is about tax can the rich and preserving this payroll tax cut. he's trying to leverage the tax on the rich on every single issue. he says we can't reduce the deficit unless we raise tax on the rich. it polls well so he's holding onto that issue. you talk about fairness, shared burd shall. the question is will americans look past the rhetoric. in in comparing what teddy roosevelt was talking about in 1910, there was no personal income tax back then. it was completely disa --

disparate. so it's one thing for t.r. to talk about fairness and having the rich support the poor a little bit more. but today we have a 36% income tax rate and that's federal alone. with the state and local you are up to 50%. >> t.r. was a foundational progressive. he laid the foundation stones for the kind of administrative and welfare state we have today if you were going to bring him forward 100 years he would be shocked i believe at scale of it where this massively progressive tax system with the top rates 50%, this huge entitlement state that will bankrupt the country if it keeps on going the what it is, and regulations that are much more widespread and denser than he could have imagined and affirmative dam --a -- damper on

the creation of jobs in this country. megyn: historically the republicans are in favor of lowering taxes. now this payroll tax that helps the middle class. the tax break. they say, we can't do that until we pay for it. the president is saying you want all these tax breaks you want to extend except the one that helps out the middle class? >> politically it's a gimm perks for -- it's a gimme for him. that's why you saw some oppose it categorically. now they backed off and they want to pay for it in a certain way. sow i imagine it will work out. but from my perspective at end of the day the president doesn't have an agenda for the middle class. if you have a state this large taking 25% of the gdp and

spending it. over the long term you cannot balance that just on the backs of the rich. you will have to reach down into the middle class for tax increases. on top of the problem the economy has, ultimately you will have to tax the folks struggling as well. megyn: you think this is a distraction because the president hasn't been able to help the middle class in any way. so he seized on this issue. they say it's worth $1,500 if you are a family making $50,000 a year. he will seize on that. >> reporter: look at the bush tax cuts which were such a big issue. obama supports the vast majority of them. he just want to repeal the bush tax cuts at the top end. that gets you $70 billion a year. we have a $1.3 trillion deficit. $70 billion is a drop in the bucket. if you want to get the money you have to go further count income

scale into the middle and repeal the tax cuts in their entirety which he is not willing to advocate for because that would be unpopular. megyn: the other side is spending and entitlement reform. the president and the white house said we tried on that. we submitted a plan to congress saying why don't we make certain cuts to med i care and keep the tax cut going. is that fair? does the president have a point? >> he offered a budget that spent more. he says behind closed doors he's offering entitlement reform proposals but we have never seen them in the light of day. if you wanted to break the logjam on this issue if the president would endorse specific entitlement savings republicans would pass those the next day. megyn: he couples them with a tax hike that requires some compromise. >> he couples them with a tax

increase and then specifies what the supposed reforms and savings are. megyn: you hear the "pomp and circumstance"? as we wait for him to say his hellos. is there a risk to the president in sounding -- we used the word earlier -- socialistic. it is criticism the republicans have used against him. >> it will be highly combative and partisan and he wants to ran that around a beloved american figure. he will say t.r. used this harsh rhetoric as well. megyn: we'll have to his to the president, both his words and meaning. we'll have michele bachmann standing by as we take a listen to barack obama talking about the economy and what he calls fairness. >> good afternoon, everybody. well, i want to start by thanking a few folks who joined

us today. we have the mayor, phil dudley is here. we have your superintendent gary french in the house. and we have the principal of osawatomie high, doug chisholm. and i have brought your former governor who is doing an outstanding job as secretary of health and human services, kathleen sebelius is in the house. [applause] we love kathleen.

it is great to be back in the state of texas -- whoops -- state of kansas. i was giving bill a hard time. he was here a while back. as many of you know -- i have roots here. i am ... [applause] i'm sure you are all familiar with the obamas in osawatomie. actually i like to say i got my name from my father, but i got my accent and my values from my mother. she was born in wichita. her mother grew up in agus -- in

augustus. her father was from el dorado. so mys roots run deep. my grandfather served during world war ii. he was a soldier in patton's army. she was a work on a bomb assembly line. together they haded the optimism a nation at triumphed over fascisim. hard work paid off and responsibility was reward and anyone would make it if they tried, no matter who you were, no matter where you came from, no matter how you started out. [applause]

and these values gave rise to the largest middle class and the strongest economy the world has ever known. it was here in america that the most productive workers, the most innovative companies turned out the best products on earth. you know what? every american shared in that pride man that success. from those in the executive suites to those in middle manage to the those on the factory floor. [applause] soy could have some confidence if you gave it your all you would take enough home to raise your family and send your kids to school and have your healthcare covered. put a little away for retirement. today we are still home to the world's most productive workers, we are still home to the world's

most innovative companies. but for most americans the basic bargain that made this country great has eroded. long before the recession hit, hard work stopped paying off for too many people. fewer and fewer of the folks who contributed to the success of our economy actually benefited from that success. those at the very top grew wealthier from their incomes and investments. wealthier than ever before. but everybody else struggled with costs that were growing and paychecks that weren't. and too many families found themselves racking up more and more debt just to keep up. for many years credit cards and home equity loans papered over this harsh reality.

but in 2008 the house of card collapsed. we all know the story by now. mort beiges sold to people who couldn't afford them or even sometimes understand them. banks and investors packaging the risk and selling its off. huge bets and huge bonuses made with other people's money on the line. regulators who were supposed to warn us about the dangers of all this looked the other way. or didn't have the authority to look at all. it was wrong. it combined the breathtaking greed of a few with irresponsibility all across the system. and it plunged our economy and the world into a crisis from which we are still fighting to recover. it claimed the jobs and the homes and the basic security

millions of people. innocent, hard working americans who had met their responsibilities but were still left holding the bag. ever since, there has been a raging dough bait over the best way to restore growth and prosperity, restore balance, restore fairness. throughout the country it sparked protests and political movements from the tea party to the people who have been occupying the streets new york and other cities. it left washington in a near constant state of gridlock. it's been the topic of heated and sometimes colorful discussion among the men and women running for president. but this is not just another political debate. this is the defining issue of our time. this is a make or break moment

for the middle class and for all those fighting to get into the middle class. because what's at stakes whether this will be a country where working people can earn enough to raise a family, build a nottest savings, own a home, secure their retirement. in the midst of this debate, there are some who seem to be suffering from a kind of collective amnesia. after the worst economic crisis and financial crisis since the great depression, they want to return to the same practices that got us into this mess. in fact they want to go back to the same policies that stacked the deck against middle class americans for way too many years. and their philosophy is simple. wore better off when everybody is left to find for themselves and play by their own rules.

i'm here to say they are wrong. [applause] i'm here in kansas to reaffirm my deep conviction that we are greater together than we are on our own. i believe that this country succeeds when everyone gets a fair shot. when everyone does their fair share. when everyone plays by the same rules.

[applause] these aren't democratic vues or republican values? these aren't 1% values or 99% values. they are american values. and we have to reclaim them. [applause] you see, this isn't the first time america has faced this choice. at the turn of the last century when a nation of farmers was transitioning to become the world's industrial giants, we had to decide what we celt for a country where most of the new railroads and factories were being controlled by a few monopolies that kept wages high and prices low? would we allow our citizens and children to work-up godly hours in conditions that were unsafe

and unsanitary? would what restricts education to the privileged few? because there were people who thought massive inequality and exploitation of people was just the price you paid for progress. theodore roosevelt disagreed. he was the republican son of a wealthy family. he praised what the titans of industry had done to create jobs and grow the economy. he believed then what we know is true today, that the free market is the greatest force for economic progress in human history. it led to a prosperity and standard of living unmatched by the rest of the world. but roosevelt also knew that the free market has never been a free license to take whatever you can from whomever you can.

[applause] he under the free market only -- he understood the free market only works when there are rules of the road that make sure competition is free and open and honest. so he busted up monopolies forcing those companies to compete for better services and prices. and today they still must. he fought to make sure businesses couldn't profit by exploiting children or selling food or medicine that wasn't safe. and today they still can't. in 1910, teddy roosevelt came here to osawatomie, and he laid out his vision for what he called a new nationalism.

our country he said means nothing unless it means the triumph of a real democracy, an economic system under which each man shall be guaranteed the opportunity to show the best that there is in him. [applause] now, for this roosevelt was called a radical. he was called a socialist ... even a communist. but today we are a richer nation and a stronger democracy because of what he fought for in his last campaign. 8-hour workday. a minimum wage for women. insurance for the unemployed. and for the elderly, and those

with disabilities. political reform. a progressive income tax. [applause] today over 100 years later our economy has gone through another transformation. over the last few decade huge advances in technology have allowed businesses to do more with less. it's made it easier for them to set up shop and hire workers anywhere they want in the world. many of you know firsthand the painful disruptions this caused for a lot of americans. factories where people thought they would retire suddenly picked up and went overseas where workers were cheaper. steel mills that needed 100 or 1,000 employees are now able to

do the same work with 100 employees. so layoffs too often became permanent. not just a temporary part of the business cycle. these changes didn't just affect blue collar workers. if you were a bank teller, or a phone operator, or a travel agent, you saw many in your profession replaced by atms and the internet. today even higher still jobs like accountants and middle management can be outsourced to china and india. if you are somebody whose job can be done cheaper by computer or someone in another country, you don't have a lot of leverage with your employer when it comes to asking for better wages or benefits especially since fewer americans are parts of a union. now, just as there was in teddy roosevelt's time, there is a certain crowd in who for the

past few decade has said let's respond to the economic alcohol evening the same old tune. the market will take care of everything they tell us. if we just cut more regulations and cut more taxes, especially for the wealthy, our economy will grow stronger. sure they say there will be winners and losers. but if the winners do really well, then jobs and prosperity will eventually trickle down to everybody else. and they argue even if prosperity doesn't trickle down, that many the price of liberty. it's a simple theory. and we have to admit it's one that speaks to our rugged individualism. and our healthy scepticism of too much government. that's in america's dna.

and that theory fits well on a bumper sticker. but here is the problem. it doesn't work. it has never worked. [applause] it didn't work when it was tried in the decade before the great depression. it's not what led to the incredible post-war booments of the 50s and 60s. and it didn't work when we tried it during the last decade. [applause] understand it's not as if we haven't tried this theory. remember in those years in 2001

and 2003, congress passed two of the most expensive tax cuts for the wealthy in history. and what did it get us? the slowest job growth in half a century. massive deficits that have made it much harder to pay for the investments that built his country and provided for the basic security to help americans reach and stay in the middle class, things like education and infrastructure, medicare and social securities. remember in those same years thanks to some of the same folks who are now running congress, we had weak regulations, we had little oversight, and what did it get us? insurance companies that jacked up people's premiums with impugnity and denied coverage to

people who were sick. mortgage companies that tricked people into mortgages they couldn't afford. it nearly destroyed our entire economy. we simply cannot return to this brand of you are on your own economics if we are serious about rebuilding the middle class in this country. [applause] we know that it doesn't result in a strong economy. it result in economics that invest too little in its people. and in its future. we know it doesn't result in a prosperity that trickles down. it results in a prosperity that is enjoyed by fewer and fewer of our citizens. look at the statistics.

in the last few decades the average income of the top 1% has gone up by more than 250%. to $1.2 million per year. i'm not talking about millionaires, people who have a million dollars. i'm talking about peoe who make a million dollars every single year. for the top 1/100 of 1%. the average income is $27 million per year. the typical ceo who used to earn 30 times more than his or her worker now earns 110 times more. and yet over the last decade the incomes of most americans have actually fallen by 6%. this kind of inequality, a level

that we haven't seen since the great depression, hurts us all. when middle class families can no longer afford to buy the goods and services businesses are selling, when people are slipping out of the middle class, it drags down the entire economy from top to bottom. america was built on the idea of broad-based prosperity, a strong consumers all across the country. that's why a ceo like henry ford made it his mission to pay his workers enough so they could buy the cars he made. it's also why a recent study showed countries with less inequality tend to have stronger and steadier economic growth over the long run. inequality also distorts our democracy. it gives an outside voice to the

few who can afford high-priced lobbyists. and it runs the risk of selling out our democracy to the highest bidder. [applause] megyn: we'll streamed the rest of president obama's remarks on web, if you care to hissen to the remainder. payroll tax cuts and unemployment benefits lead to some of the issues he's concerned about. but the president says he believes this is a make or break moment for the middle class, talking about how this time, this election, this debate we are having in washington is about the middle class getting a fair shot at success. and this is the theme we'll hear from the president over and over again. you heard the republican candidates for president who would like his job talk about it

as well. my guest siting here on the set with me is author of "core of conviction, my story." motor republican congresswoman michele bachmann who is a 2012 presidential candidate. for our viewers who didn't watch all the remarks. i want to tee up the sound bite that spells out where the president seems to be going with the difference he was painting between himself and the republicans in general. >> in the midst of this debate there are some who seem to be suffering from a kind of collective amnesia. after all the tasks, after the worst financial crisis since the great depression, they want to return to the same practices that got us into this mess. in fact they want to go back to the same policies that stacked the deck against middle class americans for way too many years. and their philosophy is simple.

we are better off when whenever is left to fend for themselves and play by their own rules. megyn: your thoughts? >> he was talking about the mess we are in. well, as though we are out of it. we are not out of it. we are deep into this mess than ever before. and he's talking about blame. who do we blame. he's saying don't blame me, blame the republicans. it's same song, second verse. this is exactly barack obama where he's always blaming someone else. for 34 months we have had unemployment above 8%. when he came in as president unemployment was 7%. with the smulus and the government take over of industry after industry, his formula is not work so he's blaming the other guys but he's not coming up with a formula that works. all he wants is more of the same. megyn: he's hitting this message that the run cans, you, other

candidates on that stage, what you are about is having people fend for themselves. let the people fend for themselves that's america. how the democrats and he are for helping the middle class. is that working for him? how do you respond to that to the people listening saying, yeah, that's not good. i'm in the middle class. >> he's playing into the idea that all of us are feeling that the economy isn't working rights now. but he's not taking responsibility. he's blaming other people and saying the reason we are in this is because of these policies that happened before. it has nothing to do with him. if you look at the facts were obama-care the government took over 1 -- took over 18% of the economy. under the obama the government took over student loans, they took over the automobile industry and financial services industry. these are highly unusual events that occurred under his watch.

we are seeing the economy can't recover because the government so heavy on regulations and taxes. everybody knows this and he's trying to sayon't look at that man behind the curtain and he's trying to put a shiny bauble up to distract people but people aren't biepg it. megyn: he seems to be shifting his focus. he wants to talk about this middle class tax cut. an extension of the pay are tax holiday. many republicans don't want it if it's not paid for. this has become a talking points and issue on the campaign trail. the democrats are saying we want to extend tax breaks for the middle class. republicans have never seen a tax break they don't like until they see this one. elect us the democrats. we fight for the middle class, the republicans fight for the rich. >> a couple things there. on cutting the payroll tax.

barack obama said this would create jobs. even his own administration says there isn't a shred of evidence that one job was created by the reduction. it blue a hole of $111 million in the social security trust fund. this is very serious. that means $111 billion less in the social security trust fund. social security is running in the red. which means it's not even some vents. they have to go into the general treasury which is broke to get money to send those checks out. we have to send south the checks to senior citizens. barack obama ised a voa kateing we take $111 billion away from senior citizens. i wouldn't do that as a member of congress and that's what he's advocating. megyn: he says why support those that weren't paid for and he's against these.

he. >> he demonized keeping the tax low on the job create towards. if we increase taxes on job create towards we'll have fewer jobs than now. we just aren't seeing the level of jobs being key as it. the answer is add more regulatory burdens. answer is add more taxes to job create towards. we'll get fewer jobs with his formula and it many shocking this is what he'sed a voa kateing because he doesn't to get reelected as president and the economy is only going to go down hill if he gets his way even more than it is now. megyn: you came out earlier and said you believe newt gingrich and mitt romney have significant flaws and you believer that you can win this race still. because obviously we have been all over the board. it's bin and down one day. neil cavuto refers to wall streets as civil.

you say they have significant flaws. what do you think are their significant flaws and do you think they are deal breakers in terms of in one or more of them become the republican candidate for president? >> they have significant flaws and they are the greats pretenders, they are trying to pretend and talk and walk like they are conservatives when they have a conservative record. both them have problems with the pro life issue. they supported the wall street bailout and they were in favor of this climate change legislation. they were advocating for freddie mac. he was on the take when i was fighting against them. and there were serious problems on obama-care on other issues. they were the father and grandfather of the obama-care legislation. trust me. we can't have it by nominee. people in favor of the government takeover of healthcare because i will tell

you it isn't just republicans that want to get rid of obama-care it's independents and democrats. they want nothing to do with it because it's costing money and giving less service and killing jobs right now. megyn: what do you think is going to happen with newt gingrich. he's the latest republican to rise an seems to b ahead of mitt romney. do you think he will follow in the same footsteps at herman cain and rick perry. others who have gone to the front and dropped out? >> i think he will. we are in the middle of the vetting process. i defend this process it's a tougher process. before it should be. we are vying to be the leader of the free world. we have to pull back the layers. that's why i believe i'm positioned where i need to be because i'm the only core consistent conservative in this race. within 30 days the first election will be held. i think what people are going to see as they look around at these candidates, they want someone who will fight for them. they want a core consistent

conservative. i'm it. and we have to have something very different next time. and i can beat barack obama in every election i have run. people say she can't win. i won every single time because we need a stark contrast between our candidate and barack obama. i'm the only one who is not compromised. there is no political surprises in my background and that what's we need. someone who is a core consistent conservative. megyn: michele bachmann, it's a pleasure. see you next thursday at the big fox news debate. coming up. the administration keeps promising america will not bail out europe. so why is treasury secretary tim geithner meeting with some of the leaders on the continent. neither jon corzine nor federal investigators can track down $1.2 billion he was suppose to be managing. so why is he still walking

around. >> i asked her if she could hear me squeeze my hand and she did. 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

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megyn: we are watching a senate committee voting to seen a jon corzine over the ms global scandal. this troubled financial firm

tumbled into bankruptcy in october after betting on european bonds. now? corzine is accused of ignoring all of the warning signs and it's leading to trouble with congress, among other places. doug mcelway live in washington with more. >> reporter: we should know whether the senate agricultural committee will seen a jon corzine. if it does so it will be the second congressional committee to compel the former democratic u.s. senator and governor new jersey to testify. he's also set to appear this thursday before the house agriculture committee where he's expected to plead the fifth amendment against self-incrimination. adding fuel to the anticipated fire of his expected appearance, a report in the "wall street journal" says corzine and ms global ignored risks.

that betting on europe's sovereign debt was too risky. global's exposure blah loaned to $6.3 billion just before the company declared bankrupy in late october and hundreds of millions of dollars in customer funds went missing. money that remains unaccounted for today. in other mf global developments it has come to life former president clinton's advisory firm was paid $50,000 a month to advice corzine on improving his image at mf global. the contract was ended after corzine re-signed. megyn: we are getting conflicting information on whether they did vote to issue that subpoena or we are still waiting on it. we apologize. thank you, sir.

midday trading fluctuating as standard and poor's -- treasury secretary tim geithner tours the continent trying to reassure europeans of america's promise to help and urging europeans to reach a deal. >> reporter: secretary geithner hopscotching across europe. he's stepping up lobbying them to fix the european debt crisis before it spreads across the continent and across the atlantic and hurt the u.s. economy. a top aide says he's pushing officials to complete work on a bigger more powerful rescue plan for europe. europeans are talk about increasing the size of a financial stability bailout fund to help italy, greece and portugal. there is talk of a bigger role

for the european central bank to buy more debt in these countries. and fiscal unity to control budget and bring in the international monetary fund as well. americans call this a fire wall to contain the crisis. some analysts call it a big what -- a big bazooka. >> i'm very encouraged by the developments in europe of the past few weeks. including the reform commitments made about it new governments of italy and spain and greece. and the new steps you heard this week about progress towards a fiscal compact for the eurozone. >> reporter: geithner aides continue to express the administration has no plans to ask for more taxpayer money to

assist europe saying the imf has $400 billion in available resources to help europe if need be. guider in shooting down a german newspaper report that the u.s. federal reserve is getting ready to assist in the bailouts. megyn: tragedy for a beautiful young model seriously injured after walk into a plane propeller. how it happened and the latest on her condition. newt gingrich in a meteoric rise to the top of the republican pack. but nancy pelosi says she has enough dirt to sink his rice. >> to see a political tainted ethics operation nancy pelosi is engaged in. really? 25 grams of protein. what do we have?

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megyn: "kelly's court" is back in session. on the docket today a secret stash of political mud with gingrich's name on it? nancy pelosi claims to there a treasure controversy of damaging information about gingrich. he resigned from the house after a tax fraud investigation by the house ethics committee. congresswoman pelosi was a key member of the panel that investigated newt. saying quote one of these days we'll have a conversation about newt gingrich when the time is right. i know a lot about him. i served on the investigative exit he that investigated us. four us locked in a room in an undisclosed row laying for a year. 1,000 pages of his stuff. mr. gingrich responded this way. >> i want to thank speaker pelosi for what i regard as an

early christmas gift. if she is suggesting she will use information she gathered during her membership on the ethics committee should explain a great deal about what happened in the ethics process when nancy pelosi was at the heart of it and is now prepared to totally abuse the house process. panel, gingrich comes out and says she could face charges. he's talking about inside the house of representatives. if she does this. if she comes out and releases any confidential information about him learned during the investigation. the ethics committee investigation. is he right? could she be brought up on charges if she does that? >> undoubtedly. rules of congress specifically says if members disclose classified information, she admits it was an undisclosed location, she spent a year with three other members.

it was obviously cloaked in secrecy and she is going to come forward and say i have got a lot of information on youth gingrich that is classified information and it's dead-on a violation. she tries to back pedal. saying i'm not going to disclose information. i may even give some sort of opinion. that's still -- megyn: she came out through an aide and said -- there was this blowback by newt begin privilege saying that will and clear violation of house rules. she said through an aide. speaker pelosi was referring to the extensive amount of information in the public record including the comprehensive committee report for which the public may not be aware. i ask you joey if she was referring to information that's already public and posted online why did she say, why did she say, hold on, not right now. when the time is right. not right here. when the time is right. i will share this information

with you and talked about how four us locked in a room in an undisclosed location for a year, 1,000 pages of this stuff and so on. >> i love politics. i love the way these things are spun. but we have to look and examine what she did now. she has a first amendment right to speak year mind about anything. the point is that congress historically is a public institution. if she is referring to documents that are public in nature that everyone knows about anyway that we converse about on a regular basis, then there is no violation at all. megyn: with all due respect, counselor. if it was already public we know she can talk about it. the implication was she had something else she was going the share when the time was right and everybody online says once she gets the nomination. but the question is, mercedes if she really means that. would we be able to tell what

wassonfidential versus what has been posted online? how would we go through that analysis? >> someone has to do some investigation. if charges are brought against pelosi a committee would be formed and in would be an investigation. megyn: who would make a complaints against her? >> a member of congress. >> this goes back to 101, charging someone. you have to have the mental state and the active act. right now she made perhaps a vial threat about what she might do, but she has done nothing that would rise to that level. >> it's undoubtedly dirt on newt gingrich, it's not in the public form. otherwise she wouldn't be saying when the time is right i'm going to be disclosing this. meg reports other thing that successes she thinks she has something more. newt gingrich was exonerated on 83 of the 84 charges.

he was exonerated. and the last one was a slap on the wrist. the full house did vote to admonish him on an paid a $300,000 fine. but the question is whether when 83 of the charges were repudiated and just one stuck, do we believe she meant she was going to blow the lid off that one charge? >> newt gingrich gives a plausible explanation. he says i relied on an attorney. he misspoke to the ethics committee. megyn: when they were investigating him he said something he shouldn't have said. >> prosecutors constantly charge multi-count indictments. and if there is only one that sticks, that's enough. it was an ethical violation. there was a $300,000 fine that was paid. and hay will be made about this

when the time is right. megyn: why can't we know what went none the confidential investigation. we know what the result was. we know -- why can't the american people know what their representatives are doing? >> i think part of it is, it's about a chilling effect. we don't want to taint the investigation. we want to keep it in its purest form. if we allow the public there may be constituents who will come forward and say this is what's being discussed about news gingrich and there is that pressure on the committee. if it's cloaked in secrecy all the information is contained in the investigation and it comes through in its purest form. >> i agree weather underlying premise that you want to protect the integrity of the investigation. i still say, however, that she has done at this particular time she has done nothing wrong. megyn: i think we all agree on that. but newt gingrich seems to be

ready to have somebody file a charge against letter if she decide to go that route. it's always interesting. newt says it's an earth christmas present. what do you think? kelly at foxnews.com. hey, the new guy is loaded with protein! really? 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong.

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megyn: the postmaster general look at new ways to cut cost in order to avoid bankruptcy. he says customers can expect big changes in march like slower delivery of first class mail. you can email and make online payment for a lot of their problems. >> people aren't using first class mail to transact business like they did a generation ago, it's many changed so we have to change. megyn: the postal service is on track to lose $7 billion this year. a young model work on a career

as a fashion magazine editor seriously injured when she walked into the propeller of a small plane. she had just come off of a private flight to view holiday lights in the dallas area. >> reporter: just an awful story. lauren is showing signs of improvement but this will be a long road for her recovery. she came back from viewing those holiday lights and for some reason when she got pout of the plane she was going to switch out with another passenger, and when she got out of the plane, instead of walking straight out of the side of the plane ear walking towards the back, for some reason walked into the pro pegger. it damaged the left side of her body. she had head wounds, brain wounds, a scar, and it severed

her left hand. the question is why was that propeller still moving. the ntsb will investigate that. doctors are hoping have much to save lauren's left eye. here now are her parents. listen. >> this afternoon she is moving around in the bed which is really good. she is uncomfortable but she is moving which is a good thing. >> reporter: along with being the model and edover an online fashion magazine, she also worked on the show "gossip girl" in the wardrobe depth. there is a chance maybe she left the plane and was coming back to thank the pilot for taking her up who was a friend of hers and that's when she might have hit the propeller. megyn: we wish her well. back in court today, former illinois governor blagojevich.

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