we hope have you a great night and a happy, happy new year. see you in 2012. big year >> heather: i'm heather childers and welcome a brand-new in our ho zbluirg happy new year to everybody else. i'm gregg jarrett. topping the news, new reaction to an iranian claim that is shocking the world. their scientists is produced their first nuclear fuel rod. that is a major accomplish anltd that would move them a giant step closer to building a bomb. they test fired a new missile designed to evade radar, also designed to threaten a critical oil supply the are a manhunt under way on los angeles, is

there a serial arsonist under ort loose. and to help the new housing industry. critics say it benefits the banks. >> heather: at first, we are 48 hours away from the first big test of the 2012 presidential elections. the iowa caucuses and "des moines register" poll those shows mitt romney is a virtual tie with congressman ron paul. other candidates are surging and there is a remarkable number of undecided voters that could change the race. here is how the contest looks. this new poll landed mitt romney in the top spot. ron paul a close second and santorum is gaining and gingrich and perry and michele bachmann. carl cameron is live in des moines, iowa with more. hi, carl. >> reporter: for those iowans

who have yet decided or changing their minds, there is something in the neighborhood of three dozen or so candidate events in iowa today because all six of the major candidates have fanned out across the state to try to get support. a lot what you see on the ground romney has an edge. romney run wants before in 2009. he has a good organization that speaks to the economic and jobs problem. he talked about his business experience. ron paul in many minds is particularly republican rivals, is he has very strong following. a big strong organization to go with it. what happens tuesday night, ron paul could pull out a victory here. rick santorum could get the award for the come from behind guy. though come out early and

campaign in relative obscurity. then the last few minutes, last two days of the campaign, social conservatives flex their muscles in iowa and it looks like they are beefing up for rick santorum. it suggests it will be very interesting race in three days. rick perry the texas governor that did lead the polls at one point back in august is now scrambling to hang on to fourth. he is talking about bringing his campaign to south carolina which would skip ahead of new hampshire. he says he has the infrastructure and money with the battle against romney. bachmann won the straw poll has seen an awful lot of defections going on none other than her own state party chairman. then there is a newt gingrich. he got a little snippy. he suggested that mitt romney is trying to buy the election.

that is tough medicine in iowa where retail politics matters. gingrich is running a campaign debt and hasn't been able to compete on the air very much. the barrage of attack ads needed to be responded to and he didn't have the money in order to do that. there is a battle for the back of the pack. we're less than almost 52 hours away, iowa caucuses will have a turnout of somewhere in the neighborhood of 120,000. so remember heather, 40,000 or 50,000 votes could make a difference that will not make you a mayor in most towns. >> and how many events today, 12? >> with the six candidates, we're doing three and four events, there is three dozen events happening in iowa today. the candidates also did their own church appearances which is

politicking, going church this morning was part of that. >> heather: thank you so much. we appreciate it. >> gregg: don't estimate the power of the pulpit because some ministers endorsing candidates today. also of note is the "des moines register" poll. if you look at the final two days of the four-day survey the numbers show that rick santorum is building momentum big time, elbowing past ron paul for second place. what does it mean for santorum's chances of winning in iowa? doug is senior advisor to the republican party. good see you. there are several headlines here, but wouldn't that may be most important is this one. i want to focus on this first. 41% of iowans who are going to be caucus-goers say, i might switch. i am undecided. what does that mean? does it mean this is anybody's guess?

>> it means two things. one, the race is wide open. but it also means the last minute organizing and organization is really what key is in iowa in past elections is what matters right now the most for candidates. what i mean by that, we have 1774 precincts throughout the state. those campaigns that have representatives at each of those or the many as possible that make the closing arguments, but the closing minutes of the iowa caucus are the ones that are going to best serve their candidacy and move forward from iowa to other states. >> gregg: rick santorum took up residency in iowa moving his family there a lot of the time. i think he has his own zip code. look, he is vault to go second place if you look only at the last two days. how do you handicap his chances? >> i think his chances are good. we'll see how the trend lines continue. we won't know until after the

caucus is said and done. in iowa, there is an expression, organize, organize and get hot at the end. we've seen that with rick santorum and also with mitt romney. the organization in the state has been unto represented. it speaks to the differences of uniqueness of the iowa caucus. in primaries in new hampshire, voters vote and make their voices heard. caucus, they make their presence felt. at that last minute, speaking up for candidates at 1774 precincts throughout state. >> is it no coincidence that the top three have the best ground games in iowa? >> no, i don't think so. if you look historically those campaigns best organized have won. bush won in 2000, barack obama won in 2008. we like to to say in iowa the state that launched barack obama

is the state that is going to remove him. we've had under republican chairman matt strong 33 straight months of republican gains against the iowa democratic party. they are hemorrhaging voters at a time they should be growing so iowa is going to tell the story for obama because this is a battleground state he barely won last time. >> gregg: is santorum's surge romney's gain because essentially he knocks off newt gingrich? >> there is a lot of political cue husband to be made. it's clear that rick santorum has strength had his campaign in the last few days. depending how he comes out of this, he'll be in a better position to campaign in new hampshire and south carolina and florida as the campaign goes on. that is why iowa is really the epicenter of politics. it's so exciting to be in here.

i hope everybody will tune in to find the results on tuesday night. >> gregg: gingrich had a huge lead a month ago. it has now evaporated. why? >> i think we've seen it with a lot of candidates. herman cain was the flavor of the month. there was a lot of discussion whether sarah palin would run, mitch daniels, chris christie, the race has been fluid and as we're seeing tighten up in the last days of the campaign it's still fluid anyone's gain. >> gregg: happy new year. >> remember, fox news is the home base for the first in the nation iowa caucuses tonight 8:00 p.m. eastern time live from iowa, an american election headquarters special previewing with brett baier and megyn kelly. plus our special coverage of the caucuses beginning tuesday, 6:00 earn eastern time right here on the fox news channel.

>> heather: new reaction to iranian claims they have crossed a dangerous new nuclear threshold. their scientists allegedly producing a nuclear fuel rod containing enriched uranium. they say it's for peaceful purposes. it's the same merle need today to build a nuclear weapon. former ambassador john bolton weighs in on the air today. he says this is a troubling development. >> this shows that the command over the entire nuclear fuel cycle is growing and scientific and technical sophistication growing too. >> heather: according to iranian state tv, iranian navy testing a new surface to air optimistically. it's part of the -- surface to air missile. what can we make of the latest

developments. now a report from washington. >> reporter: it was last thursday that a state department spokesman suggested that the weight of international sanctions may be causing iran to lash out. it lends creed tones that tear, too. after announcing a postponement of a test, they carried out the test today. it's designed to evade radar. at the same time they announced that the nuclear scientists produced the first nuclear fuel rod. it provides fuel for nuclear reactors, that is an achievement that many western experts that iran was not capable of. john bolton says it narrows the window of time for west to act. >> a month or so, he could have a nuclear weapon than less than a year. i spes speck it could be less than that. it could be very important year if israel reads the situation

the same as leon panetta, the time they have time to take action against the nuclear weapons program is very short. >> reporter: the announcement of construction of nuclear fuel rods is day after president obama's signing a bill to reduce the oil revenue from iran. many believe that sanctions are the toughest imposed. upon news, the iran's currency slipped to a record low today. >> heather: thanks, doug. >> gregg: quite a year. epic natural disasters, changing leadership and a royal wedding as well as international scandals. gregg burke has a wrap of the headlines beyond our borders in 2011. >> reporter: japan hit by an enormous 9.0 earthquake triggering a monster tsunami. death tolls reach 16,000, 4,000

missing in the worst nuclear crisis since chernobyl. >> in tunisia, civil resistance leads to the ouster of the long time president. massive demonstrations bring the end to the rule of hosni mubarak. protests in libya escalate into a full scale rebellion. khadafy captured and later killed. >> in syria, an uprising erupted against assad. despite international pressure, the bloody crackdowns continue. >> the eyes of the world on westminister abbey as an estimated three billion people watched the royal wedding. >> in what may be the biggest news story of the year. >> the united states has conducted an operation that killed osama bin laden, leader of al-qaeda. >> u.s. navy seals shoot and

kill the terror leader in a compound in pakistan. >> the director of the imf for allegedly assaulting a hotel made. charges against dominique strauss-kahn is later dropped. >> at large for 15 years, the former bosnian serb general responsible for the massacre of thousands of muslims is arrested. >> a deadly e. coli outbreak in europe killing about 45. >> after 50 years of struggle, sudan declares it's independence. >> british newspaper news of the world closes after allegations that journalists hacked into voicemail accounts. >> in norway a man describing himself as a resistance leader bombing a government building and carrying out a shooting rampage killing 77. >> japan beats the u.s.a. being

the first asian county to win the world cup. >> london suffering widespread rioting after a police shooting of a man. >> deadly loss of forces in the decade long afghanistan war, a helicopter crashes killing 30 u.s. service members most of them elite navy seals. >> more than ten million people in east africa hit by the worst drought in six decades. somalia is the epicenter of the famine. >> two hikers arrested in 2009 in iran after being accused of spying. they finally return home after their female friend was released. >> in a direct challenge to the u.s. palestinian request statehood recognition at the (u). anwar al-awlaki a senior al-qaeda leader is killed. >> italian jury clears amanned do carbon monoxide of murder for

allegedly killing her roommate in italy. >> israel releases over one thousand prisoners in exchange for one kidnapped israel soldier. >> a powerful earthquake rocks eastern turkey killing about 600 people. >> asked italy about their concerns, europe's debt crisis is one of big ones despite the bail on scrourt money, the economy in 2012 promises to be a major headline. >> gregg: thanks very much. >> fresh opposition for a government plan to rent foreclosed homes. this proposal benefits the very same banks that caused the housing crisis to begin with. >> heather: and search is on for suspects after three straight nights of arson attacks hitting hollywood. dozens of cars torched, homes damaged and a city shaken. newest clues and what police are

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>> heather: welcome back. time for a look at today's other headlines, tokyo breathing a sigh of relief, 7.0 magnitude hit the area but no damage reported. >> pope benedict xvi praised youth saying they will be the builders of peace if properly educated. >> prince philip and out and about with the family following heart surgery. the 90-year-old was hospitalized just before christmas with chest

pains. >> gregg: there is new controversy over a federal government plan to boost the struggling american housing industry. turn more than 100,000 foreclosed homes into rentals. critics say the proposals benefit the banks that caused the housing crisis to begin with. here is brenda butner host of bulls and bears. happy new year's. i wrote this down because i was so bulled over by it. 6 million homes with a current market value of $750 billion will be repossessed by banks or sold at distressed prices in the next four years. >> it's a sign that the housing market, the problems are far from over. this is key to our recovery. until we start to build housing prices we cannot see a recovery, basically it won't stabilize

neighborhoods. there are big problems with this issue. >> gregg: let's put on three of the options that are being proposed. option one, sell homes in bulk to investors who agree to repair properties. number two, hire managers to oversee the rentals to be sold. structure transactions so the government and investors share revenues. good idea? >> none of these are radical. some of nonprofits are upset about this because banks who were involved with the how go bubble might be profiting from some of this. they are not radical. in some places they are actually happening and working. the only issue i think would be with number two because sometimes property managers tend to take better care of homes that are in better neighbors than one in poorer neighbors which tend to be

african-american or tend to be ethic minorities. >> gregg: what strikes me that would be bad, banks and companies, all of a sudden, let's buy up all the surplus foreclosed homes and we're going to dump them on the marketplace just to make, i don't know, 20 cents on the dollar. wouldn't that really hurt neighborhoods and devalue itself a are still owned by individuals? >> i did some research. one sale of one foreclosed home in a neighborhood can bring the property values so much that it would be almost impossible to sell some of the other homes for anything. you couldn't get close to your money back, one foreclosed home in a neighborhood. these kinds of numbers, it could really devastate the housing market. >> gregg: here a model in "new

york times," cbs news did, in merced, california, there is the university of california merced. it's very expensive for students to pay for room and board. what they did was, banks decided we're going to rent them out, 20 40 cents on the dollar to the student. here is what happened. mortgage lender gets money which is better than nothing and the property itself is better off because somebody is living there and maintaining it and students win because they are paying less for room and board. >> i that i is the creative options that need to be looked at. i'm ready for something like that compared to when i was a student. places not just like merced but they are looking for the homes that are going into foreclosure

first. >> gregg: here is the thing. this is costing you and me, the taxpayers. here is why. fannie mae has 122,000 foreclosed homes that carry value on that is $11 billion. >> and taxpayers are bailing them out. >> gregg: freddy has half as many, explain that? >> it's are very difficult. they are government sponsored entities that are basically backing up mortgages. nine out of ten mortgages are backed up by fannie and freddie. one issue is one of the banks, one of the entities that is coming up with some of these recommendations was the ceo of fannie, he is now being sued by the s.e.c.. i don't have problem with banks making a on profit if it gets

rid of the issue. >> gregg: banks need to make money back so they can lend more to individuals and small businesses. all right. thanks very much. >> heather: just two days to go until the leadoff iowa caucuses, it comes down to the ground game. so which republican contender has the manpower to push them across the finish line? >> gregg: police in the state of maine stepping up the search for this beautiful missing toddler, little girl's grandfather making a very emotional plea for help. >> heather: new information about a string of bizarre arson attacks. new evidence in the case as police launch an all-out search for suspects. we'll have a live report with all the details. >> by the time i got out there, the whole carport was engulfed. probably one of the craziest things i've ever heard, engulfed completely. 

>> gregg: time for the top of the news, iran claiming it has created the first nuclear rod which contains enriched uranium. key come peopt for nuclear bomb. meanwhile, test firing a new missile designed to go undid he tktd by radar. >> heather: peace negotiators planning to meet for the first time for a year. no formal negotiations are

expected but they will discuss key issues. >> gregg: bus king ting a college student from china. she tried to carry a stun gun on to a plane in new york city. >> heather: america's election headquarters, it is a last minute scramble on the ground in iowa. the republican caucus is now less than two days away. big number of undecided voters may hold the keys to one candidate's victory. steve brown is live for us in urbandale iowa. happy new year. what are we talking about when we are talking about when it comes to a caucus ground game. >> reporter: at every event, at the end of the event there are some supporters or some staff they're is trying to collect names, e-mail addresses and phone numbers as possible. that information is critical stuff. it is the gold of the caucus

campaign because that is turned into a phone calls. attempts to get people engaged in telephone town halls, attempts to get other people at other campaign events, attempts to be a supporter and become a caucus captain or a campaign county chair. all of this information is really critical. moving that along and keeping that information, that is really the goal. that is how you get your ground game going out in iowa. >> heather: who does that nuts and bolts grounding? >> they say it's ron paul's campaign. they have been at it for months. oftentimes you will see them registering people for the event but taking down their personal data and using some sort of laptop, ipad or tablet to try and get that stuff transmitted out to headquarters, that is logged in and use for phone banking and other contact information for the events i was talking about. the funny part is, ron paul is

very secretive about talking about what it is they do that makes their ground game so strong. they like to talk about the intensity of support for the candidate and among the supporters. but in terms of tactics, and there aren't a whole lot of new wrinkles but in terms of tactics or caucus captains they have, the ron paul campaign unlike other campaigns these days isn't talking about that stuff. they are playing their cards close. they are up at the top and don't want to tip off anybody as to what it is they got going on. they are letters ah more secretive than others. >> heather: with good reason. he is right up there at the top of the polls. thank you very much. steve brown reporting live for us from iowa. >> gregg: while his republican rivals are very busy on the campaign trail, president obama enjoying down time in beautiful hawaii with his family. while the commander in chief may object vacation, his reelection team, they are keeping an eye

squarely on iowa. this is new video of the president's campaign office as his team crack crafts its own campaign strategy. doug is live with the president. >> reporter: what a contrast he is about to leave sunny hawaii and head back to washington, getting back to the political grind. now, the white house says the president is going to be spending a fair amount of time on the road in 2012. that will start away. next week he is making what will probably be a campaign style appearance in cleveland, ohio. to talk jobs and economy. he will also through the course of the year try to distance himself from the deeply unpopular congress. as far as this vacation is concerned, the first family is out and about today. they are visiting a cultural center here in hawaii. otherwise we really haven't seen a whole lot of him during the course of the trip. as far as iowa, he seems content

to sit back and watch it play out. >> it's not a terrible idea for the president to get out of away and let the focus be on the republicans. there will be a lot of attacking against republicans, as well. >> reporter: obviously the president is keenly interested in who wins the iowa caucuses. it's something he will be watching very closely. a white house official says do not look for any kind of congratulatory phone call whoever winner is be. >> gregg: it's so beautiful there. thanks of. i can tell you, notices fake it's very real. i don't look forward to coming back. >> gregg: stick around for a couple weeks there. why not? keep it right here for the first in nation iowa caucuses, tune in

tonight, 8:00 p.m. eastern and a special previewing the big race with brett baier and megyn kelly. special coverage of the caucuses begins this tuesday, 6:00 p.m. eastern time right here on the fox news channel. >> heather: an emotional new plea from the grandfather of a missing maine toddler, 20 month old vanishing more than two weeks ago from her father's home in waterville. state police now declaring her disappearance a criminal investigation. investigators scouring her home for clues, also getting additional help from state detectives and now the grandfather is asking the girl's father to do more to help with the search. >> he would be up in front and in the public eye right now. he would do everything that we are doing. talking to the media, asking people, begging, pleading with people if they know anything,

please come forth and say something. what would i say to him? i would look the man in the face i would say how could you not be responsible for her? how could you not check on her at night? how could you not do that? >> heather: police say they have received about 500 tips so far. >> gregg: a u.s. soldier facing federal charges now for allegedly trying to bring explosives on board a plane. f.b.i. identifying that suspect, 30-year-old troy atwater. they stopped him yesterday morning at midland international airport in texas discovering explosives in military grade wrapping inside his carry-on bag. what he and his family had been visiting relatives and was on his way back to his base in north carolina. he will be arraigned on tuesday. >> heather: arm robbers killing an off-duty federal agent in

new york. a gunman entered a pharmacy demanding cash and painkillers. when the suspect tried to escape three men confronted him. an agent and off-duty police officer and a retired officer. witnesses say that is when the shooting started. >> apparently one was shot. >> to think he could walk into town. it's crazy. >> heather: atf agent was shot and kd killed. two officers were treated for trauma. the gunman was also killed. an investigation is under way. >> gregg: new details of the manhunt underway in los angeles. police searching for suspects behind a string of bizarre arson attacks. dozens of cars torched in the middle of the night three straight days of destruction putting entire city on edge. casey stegall is live from

los angeles. >> reporter: los angeles police tell us they are enhancing surveillance tape that has been recovered near one of crime scenes. they believe that an individual's face will be visible in it. the hope, of course, it will lead them whoever is responsible for this string of arsons. investigators say that multiple suspects are involved here. they are also looking for a white or cream colored lexus. dozens of suspicious fires break-in and around hollywood. each one has the same m.o. vehicles and carports being torched and the flames spreading to some neighboring homes and apartment buildings. multiple agencies involved, including the feds working to tie everything together. >> they are looking at each one of these individually. they are looking at them as a whole, as an umbrella to see how they all relate.

>> my car was parked directly behind the fire that started first. >> what did you do? >> i got my keys and moved my car. >> reporter: now fortunately nobody has been seriously injured and officials are say it will be hard to keep it that way. extra police patrols are looking for anything suspicious, additional investigators have been brought in. multiple cities across southern california on high alert. meantime, a $60,000 reward being offered to anyone that can provide police with information to help get the fire bug or fire bugs behind bars. >> gregg: casey stegall live in l.a. thanks. >> heather: police in one state cracking down on underage drinking targeting moms and dads if their kids are caught in the act. we'll tell you about this strict new law. one of world's top ones under attack, is nike really

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>> heather: welcome back. a prominent virginia lawmaker slamming his state for a proposal to demand loyalty oaths at the polls. republicans would be required to sign a pledge. vases stated delegate bob marshal says that is a big mistake, so is a loyalty oath a bad idea? here is former president of the women's media center and angela

anddine and fox news contributor. thanks so much for coming back. two days in a row. >> so i'll begin with you, good idea or bad idea? >> it's a bit of a ludicrous idea. the fact that the obama campaign basically tko'd the virginia republicans but i'm not surprised across the country republican parties have been trying to disenfranchise communities, senior citizens, poor people, left and right. >> it's unamerican to limit the vote. >> i'm surprised they came up with this. the reason they came up with this oath, if ron paul and mitt

romney are the only ones on the ballot you can have democrats vote ron paul to win virginia. however, the attorney general has said he is going to pass the legislation to put most of the republicans hopeful on the ballot. >> that is a responsible statement. republicans are trying to disenfranchise voter i.d. laws. credibility of our election system has nothing to do with disenfranchise go people. >>. >> it is unamerican in this day and age to disenfranchise anyone. >> my parents fought heavily for civil rights.

>> are you saying people can't change their minds? when you have a front runner the republican party and he has changed on every single issue from women's issues to climate change and everything in between. >> it's an honor system. >> it's very symbol zbluk i disagree witness. this isn't the cub scouts. if they want to change the system, they need to change the system, have only registered republicans vote during the primary, do the same thing for democrats. this has nothing to do with disenfranchising people, absolutely not. >> heather: next topic. you guys disagree. they are calling for a ban on nike jordan air retro sneakers. after last week, the sale of shoes went violent.

aat the very least, michael jordan should say something. the company should say something lower the price as well, they are saying. >> if you look at the video, it's people of color. it really angers me that you have community leaders coming out and saying it's the fault of nike. michael jordan. we need to be responsible for individual responsibility of what we do. these people could not control themselves. >> we have a really serious problem in our country. it's the breakdown of moral values in our country. as you pointed out there are a lot of black individuals who are involved in these instances. these ministers and these activists, where were they when the flash mobs were taking place across last year in the black community? why weren't they speaking out then. this issue with the sneaker doesn't have anything to do with nike or michael jordan.

>> where are they on education? >> i think it's ridiculous for them to ask for michael jordan's help on this or nike to come out. reality is whether a teenager or someone that is sticky financial situation, spend $200. it's crazy. when i opened up her closet, never had a job, never gone to college and she has some of those. >> they were black men. >> it's what has led that folks will spend so much of their hard-earned dollars on a pair of shoes.

you don't think it would be a bad thing for michael jordan to come out and comment. [ talking over each other ] >> it's a horrible action. >> what we need is a moral surge especially in the black community to get education, kids to get quality education to not act like this because it's very irresponsible. >> if michael jordan comes out it gives an excuse that these folks are second class citizens that can't make decisions like regular people. >> i don't know if it's necessarily a black-white issue, it's not a racial issue. >> when you see the ministers come out. some black leaders, they only come out when they getting get special attention. this is one of these times. where were they? >> you have to look at the facts. people just a few weeks were pepper-sprayed for video games

and cabbage patch kids when i was young, people were beating each other up for cabbage patch. >> heather: if you are drinking law for moms and dad, they will have some explaining to do. they may be digging teep deep into their pockets. we'll tell you about that up next. forty years ago, he wasn't worried about retirement. he'd yet to hear of mutual funds, iras, or annuities. back then, he had something more important to do. he wasn't focused on his future but fortunately, somebody else was. at usaa we provide retirement solutions for our military, veterans and their families. from investments... to life insurance... to health care options. learn more with our free usaa retirement guide. call 877-242-usaa. ♪ ooh baby, (what) can i do for you today? ♪

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>> heather: welcome back. new law in washington state targeting underage drinking but holds moms and dads liable if children are caught drinking on their property even if the parents are not home at the time. here with us is our panel. how do we feel about this one?

>> i have deep concerns about this. parents, it's a tough thing. kids are always going to try to drink but it's not the right thing to punish the parents. not only that what if a friend brings the alcohol over to the home. and friends are bringing in the alcohol. i don't think it's right to punish the parents. >> heather: city council is trying to show that parental responsibility doesn't end when you leave the house. >> i have step-children and teenagers they are 20 and graduated from college when they would bring friends over to come over like visit, i would check their bags. when they would leave i would give them a breathalyzer. because they would bring it in the house. you have to make sure, you are

held responsible. what if they drive home and have a than an accident. law enforcement should hold parents liable now. >> you are absolutely right. parental responsibility doesn't end when you leave the home, but i think there is a bigger issue here. the culture of drinking in america, i think needs to be addressed in a different way besides criminalizing the parents. there has to be an approach that we understand that young people are going to drink under the age 21. we understand the consequences of it from drunk driving and all of the deaths that happen. you try to really hold back anything from children from young people, they are going to go above and beyond. they are going extreme. you don't see the same type of addiction to alcohol the same types of problem in drinking a and drivers in european countries where there is a different approach. >> to get to the root of the

problem but the parents are responsible at the end of the day and they need to get breathalyzers. >> it's the same with my house. you knew it was not going to happen in my house. >> heather: ugly truth is out. "time magazine" top ten commonly broken new year's resolution. number ten, drink less, less stress, spend more time with family. number five, get out of debt. save money. eat healthier and diet. quit smoking and number one, lose weight and get fit. that was my resolution again this year, number. i started before the new year began. what about you guys in the terms of the ones you keep or don't

keep? >> all of the above. i'm going to convert -- >> but this year my resolutions because i'm turning 40 this year i want to be in the best shape possible. >> my new year's resolution i wanted to be a better person than i was yesterday. hopefully that is one i can do. >> my is develop more patience, less stress and meditate more. >> heather: thank you so much. happy new year to all of you. this is great weekend. yesterday, you said you don't keep them. >> but i like number two, quit smoking, since i don't smoke, that would be really easy for

me. >> gregg: two days from the critical iowa caucuses, it's game on for the gop presidential candidates. at this point it's anyone's race we're live across the state and brand-new poll. who is in the lead? breaking news, a shooting at mounted rainer. we'll have the latest on that. stick around for that. d gives you a 50% annual bonus! so you earn 50% more cash. according to research, everybody likes more cash. well, almost everybody... ♪ would you like 50% more cash? no! but it's more money. [ male announcer ] the new capital one cash rewards card. the card for people who want 50% more cash. what's in your wallet? woah! [ giggles ]

>> gregg: a "fox news alert." we're getting new word now on the manhunt underway in washington state. there is the map, a 34-year-old female park service ranger got and killed during a routine traffic stop. a suspect on the loose in mount ranier national park and the news tribune reports it happened just before 11:00 a.m. near the longmire ranger station in the

central part of the park and we'll bring you any updates as we get them. >> heather: two days until the republican candidates' final show down in the iowa caucuses and now, it is looking like anybody's race, hello, thanks for staying with us, i'm heather childers. >> gregg: i'm gregg jarrett, welcome to a new hour of america's news headquarters them. "des moines register" poll has been the poll to watch. really, since 1943, believe it or not. the latest survey shows mitt romney is ahead, not by a whole lot. ron paul, a close second. rick santorum, surging to third place, but with nearly half of the voters saying they could change their minds, well the winner is anybody's guess. here now is anchor of special report, bret baier. bret? >> bret: "the des moines register" poll is definitely making waves here, in iowa. and, it is changing the dynamic in the race, you see a surge in the last two days of the poll, for rick santorum, a big surge.

you also see some sliding, continued sliding for newt gingrich. he's 11%, 12%, but has had a barrage of negative attacks, launched against him and i went to event up the road in ames, iowa, and talked to newt gingrich and he said to the crowd they need to choose the most conservative candidate they can and i asked whether he thought mitt romney was a true conservative. >> no. he's a massachusetts moderate at best. he registered as a democrat to vote for paul tsongas, the most liberal guy in 1992 running and called himself a moderate running for governor in 2002. and signed a bill to pay tax paid abortions and planned parenthood, with an official position in romney care. those aren't conservative positions. some people look at rick

santorum now, according to the polls, as surging. do you buy that surge? and what do you thing of that. >> first of all, rick is a very good guy and i admire him, i like him. he's exactly right on iran and in contrast, ron paul is exactly wrong on iran. h he has dedicated an immense amount of time in iowa and should do well and probably will do well and has nad no negative ads against him and at a time when i'm getting beaten up, there is this my who is not getting beaten up and he's getting a good residual benefit. i admire him and he has great discipline and great focus of trying to do the world good. >> new conventional wisdom, there are four tickets out of iowa. if you come in 5th, what happens. >> then there are five tickets out of iowa. there are no circumstances where somebody, who is at the top integral lup and other national

polls, disappears. >> reporter: he says he'll fight another day even if he doesn't finish well in the iowa caucuses and he says his firewall is south carolina and went into detail about the charges against him, a little later in the interview and we'll bring you that, later. that "des moines register" poll, seen as the gold standard here, so, people are looking at those numbers, very closely. >> gregg: it has been said that ron paul has the best ground game there. should ron paul pull off a win, what does it do to the race? how does it change the equation for any of the future races, bret? >> bret: it changes the equation. i think the romney campaign is looking at it as an okay alternative, they would even if ron paul beats mitt romney urich santorum beats mitt romney, 1, 2 or 3, the romney campaign sees the long picture as fighting the battle down the road in the long

term and think they can beat ron paul, going away. with both money and organization and other states. and, it also would show that as you point out, ground game matters. and, both ron paul and rick santorum have been working the ground game in iowa, pretty vigorously. >> gregg: unlike four years ago, the primary season is back loaded which means it could go in a march, april and may and even june, so, it could be a long campaign season. bret baier, many thanks. >> bret: thanks. >> gregg: and remember, fox news is your home base for the first in the nation iowa caucuses, tonight at 8:00 p.m. eastern time, live, from iowa, in america's election headquarters, a special, previewing the big race with bret baier and megyn kelly and our special coverage of the caucuses begins tuesday, 6:00 p.m. eastern, right here, on the fox news channel. >> heather: a last ditch effort for votes, some republican candidates are pushing social issues, to appeal to undecided

iowans. but, at owuone town the economy job number one, john roberts is live with more on that. >> reporter: heather, how are you? you think with the unemployment rate of 5.7% the economy wouldn't be an issue here in i was, particularly in a town like pella, that has two major factory corporations, employing a lot of people but on one side of pella, you have the vermeer corporation and it is adding 100 jobs, over the last year and the other side of town, the traditional largest employer in town, pella windows and doors is beset by the housing clams and shuttered factories in south carolina and laying off a lot of people and one of those people is loretta, and we met her and her husband yesterday, both worked for pella 14 years and she was laid off in november and look at their finances, they have one child in college and

another a senior in humane society high school, about to go to college and are counting their pennies to be sure their children can get an education and they'll be, when they go to caucus on tuesday night looking for a candidate who is thinking the same think they are, here's loretta. >> if we can find somebody who can do just exactly what my family is doing and that is, to control our spending and live within your means, that is what we'll be looking for. >> reporter: in the 2008 caucuses they really went for values in terms of the votes at the caucuses, electing mike huck buy, voting for him -- huckabee and mitt romney was a distant second and the question this year, will they vote their wallets instead of their hearts and, we also hear, the idea of electability, who is the most electable candidate and "the des moines register" poll found mitt romney was believed to be by the most number of iowans, to be the most electable candidate and tim sprung has a different idea, it

is how they relate to the voters that makes him electable. here's tim. >> as more people get past, sake, who is just electable and saying, let's get behind the right person with the same ideas and values i have, i think electability can be for anybody. >> reporter: those are the ideas they will be taking into the caucuses on tuesday night and there is not much question how people in pella and marion county, where it is, will vote in the general election, they went for john mccain in 2008. iowa, itself, though, went for barack obama. so, the big question in november will be, iowa, is a critical swing state, will it vote democratic again or go republican? >> heather: we'll see, john roberts, live for us in pella, iowa. >> gregg: a manhunt underway in los angeles after a string of arson attacks there. last night l.a. firefighters took on 7 car fires bringing the total in and around the city to 39. all in the last four days, casey

steegel joins us live from los angeles. >> reporter: yes, gregg and what is more, investigators believe multiple people may be responsible for these, police say they have interviewed dozens of witnesses, but, no -- so far no solid leads have emerged. now, all of these blazes have eerie similarities. a vehicle is intentionally set on fire, most of them parked in car ports, under residential units, and, the flames race to nearby homes, and apartment buildings. several hundred thousand dollars of damage already reported. the total estimates, still coming in, but, foreclosures there have been no serious injuries. these fires happening in a pretty small area, hollywood, and neighboring west hollywood. even spilling north into the san fernando valley, dozens of people sent running from their homes in the dark of night. >> we were in bed, my wife heard some popping noises, and, looked around, and we heard through the fires and, she ran outside and

said, hey, our neighbor's house is on fire. we just ran over, i got a hose and started putting it out and she called the police, and luckily, it was just a car and didn't get to the house. >> reporter: the reward keeps going up, up to $60,000, now, being offered to anyone who can help nab the suspect or suspects. a tactical alert has been issued, giving the police and fire departments here the ability to bring in more resources in terms of investigators and patrols. and there is an increased police presence in the area, all eyes peeled for anything suspicious. authorities also asking on the public for help and are telling residents of the densely populated areas to be on the lookout and call any suspicious activity in, to 911, very important that we get the -- whoever is responsible, behind bars. because, as the city is on edge. >> gregg: it has to be frightening in hollywood, right now. casey steegel live in l.a., thanks. heather? >> heather: new york city police have their work cut out for

them, last night authorities say dozens of occupy wall street protesters faced off with police, and it happened just before midnight. they tore down barricades, surrounding a city park and 68 people were arrested, during the scuffle. most of the charges were for trespassing and disorderly conduct. and, at least one demonstrator was accused of assaulting a police officer. a new year and nearly 40,000 new state laws going on the books. new restrictions ranging on abortions in new hampshire to cell phone use in nevada. julie bandaras is live in our new york city newsroom with more on that. hi. >> reporter: that's right many laws reflect the nation's concerns over immigration, as worker verification, in fact, alabama, was the country's toughest immigration law, will require all employers who do business with any government entity, to use the federal system, known as e-verify to ensure all are in the country

legally and, california is also addressinging illegal immigration and the california dream act expands eligibility for private scholarships for students brought to the country illegally when they were infants and also in california, gays, lesbians and people with disabilities are added to the list of social an ethnic groups whose contributions must be taught in history lessons in public schools and more accountability for young people, a new hampshire law is reinstated to require girls seeking abortions to tell their parents or a judge first and, georg georgia and if you live in a city that allows you to drive your golf cart onto roads, safety requirements go to infect which includes, brakes, reverse warning devices and a harness. and there are several new federal rules, including a social security increase amounting to $450 a year for the average recipient and, stiff fines up to $2700, per offense for truckers and bus drivers caught using handheld cell phones while driving.

8 states, by the way, are also raising the minimum wage which include arizona, oregon, washington, montana, colorado, ohio, veteran and florida. got all of this? and san francisco will be the first city to raise the minimum wage above $10 an hour and utah, new laws making any daily drink specials illegal. essentially, banning happy hour. one more reason why gregg should never move to utah. >> heather: whew! quite a list. >> gregg: i love utah. >> reporter: you can't drink there. >> gregg: a great place to ski! >> reporter: sober! >> heather: important and i like the horn on the golf cart as well. >> gregg: there you go. >> heather: thanks. >> gregg: the republican battle for the airwaves, taking a nasty turn. what kind of impact do scathing commercials have on the voters? we'll talk about that. >> heather: and starting this year you might see a small increase on your insurance plan, we'll tell you why it is actually meant to keep costs down and why some say it could

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>> gregg: supreme court justices speaking out on a growing controversy over legal challenges to the health care overhaul. chief justice john roberts, jr. defending all of his colleagues when it comes to the matter of recusing himself. justices clarence thomas and elena kagan have been urged to withdraw from the health care case due to possible conflicts of interest. roberts says supreme court does not sit in judgment of its own

members' decisions. >> heather: this year a new plan to keep your health care costs low. a new fee on your insurance plan aimed at weeding out overpriced prescriptions, but, could it be used against the president? here now, david nelson, chief strategist with bellpoint asset management, and he joins us to talk you a little more about this fee which ranges from a dollar to $2, when it begins, which will be in 2012. >> it seems to be $1 to $2 and the issue is whether or not it is' tax or not and fit is, it is a modest one and will not have an economic impact on the economy and the real issue, here, is government yet again. we are making another government agency and actually, congress labeled it as a nonprofit organization, and, yet is funded by taxes. >> heather: and the agency is this patient centered outcomes

research institute ni. >> i long name, yes. and it seems odd, if it is funded by taxes in my book it is a government agency and if it is a government agency, government 101 tells us they will try to expand their power and influence and to do that they'll expand their budget and it may appear to be insignificant costs now, down the road -- >> heather: the $1 to $2 fee will end up being more expensive. >> probably. >> heather: and their given the task of doing this research. to determine whether or not a prescription is valid or as good or better? >> i think the battle ground is really, you know, generics versus branded drugs and clearly most of the medical research show, we get now comes from drug companies and obviously, that is tainted because they have an economic benefit from the drugs they are either recommending or not recommending. and, on the other side of the coin you have insurance companies who are probably doing a lot of the work, right now, because it is in their economic benefit to do so, but, of course we don't trust them. i don't really think that that

is the issue. i think the really issue here is the fear that insurance companies will somehow use in the future to deny health care to you or me or anyone else. >> heather: that is the question. how do we avoid that becoming reality. >> i'm not sure and it is hard to criticize an agency that has not done anything yet and they haven't had the first head-to-head comparison and generally i like to see a market-based approach, i'm a market advocate, so to speak, but, you know, i think the jury is out on this and we have to wait and see how it pans out. >> heather: and they haven't even done the first study yet but they are receiving funding. when do we expect it to start happening? >> they seem to want to do this right away, and, apparently, at least according to some government agencies we will not see the economic hit on that, for probably another year or more. so, we'll see what their first outcome looks like. >> heather: so, because they haven't done anything yet, you aren't comfortable saying whether or not the research institute will be a success? >> you know, i personally think the insurance company could

probably do a pretty good job, they are right in the line of the food chain to get the job done but we have this... maybe we need oversight but do we need another government agency? voters will answer that. >> >> heather: who should be responsible for it then. >> with a host of health care agency that's we have in this country today, do we need to create a brand new one, more bureaucracy? i suspect we don't. and probably can do with funding and can do it with the organizations we have, right now. >> heather: that would be the pharmaceutical companies that are doing it or the insurance -- >> no. >> heather: that is who is doing it now. >> no, they are doing it and insurance companies are also doing it and i think the insurance companies are a better line of defense, and certainly -- than the drug companies and the drug companies have a vested interest in the outcome and the insurance companies, on the other hand, i.t's to their economic benefit and, they need to come out with the right solution. >> heather: ultimately what will

it end up costing if you were to guess? >> i don't know. i can tell you this: if this is around for a number of years, whatever we are paying today you can bet will be more in the future. >> heather: and they readily admit it will go up, beginning at $1 and the next year, $2 and adjusted... >> being a government agency, it is -- its role will be expanded as all government agencies are and i think that is what a lot of people are trying to fight against, that kind of expansion of the government approach or government solution to all things. >> heather: and, as we wrap up, because we mentioned in the intro to the segments, do you think that president obama will be held accountable for it, come election time? >> it is 2012, the iowa caucus, less than two days away and you can bet it will be used as a weapon against the campaign. >> heather: and called and obama care tax versus a new fee. >> i think so. >> heather: thanks, appreciate your input. gregg? >> gregg: down to the wire in iowa. presidential contenders, in the final push for the votes there. what they are doing right now, a

live report coming up, and... have you noticed all of the political attack ads on television these days? new details on who is behind those and how they may have a big impact on the iowa caucuses. next. >> collected at least $37 million, from major health care... it's not the bayer aspirin you know. it's different. first...it's been re-engineered with micro-particles. second, it enters the bloodstream fast, and rushes relief to the site of your tough pain. the best part? it's proven to relieve pain twice as fast as before. bayer advanced aspirin. see how fast it works for you. get a coupon in this sunday's papers.

>> heather: counting down to the iowa caucuses, the republican candidates for president making a big push between now and

tuesday, going after those undecided voters. rick santorum, picking up support in the polls, in the northwest, michelle bachmann, newt gingrich, rick perry, all near the center of the state. and, mitt romney is stumping in the southwest. steve brown is live for us in iowa. steve, can he turn the momentum into caucus votes? >> reporter: that is the key question and it appears to be beginning to come his way, santorum is in over 370 events, as of today, all in iowa, and the question is, has the campaign taken down all the data, of the people that were there, who would give up the information, stayed in touch with him and got them to become activist for his particular campaign and the santorum campaign, at least representatives of it, also suggest they will need a little help organically, the people organizing and communicating amongst themselves, independent of the campaign, will be a factor, if they are going to be successful.

>> heather: steve, in terms of boots on the ground, who has them in iowa? >> reporter: the most impressive display of just numbers, on the ground, boots on the ground, has been the rick perry campaign. i flew in with a gentleman on monday, and he identified himself from florida and talked about a strike force of 200, since then, rick perry talked about 350 folks coming up from texas and there were other accounts and we haven't been able to confirm, suggesting as many as 500 volunteers, have come into the state of i was, all to help with the last week push, with the caucuses, knocking on doors an organizing and the campaign says, yeah, there are a lot of people here but i don't necessarily know that they have an exact count of how many but it is an impressive number. >> heather:nd i'm impressed with the words, strike force, boots on the ground, a battle underway there in iowa. thank you very much, steve. >> reporter: no doubt. >> heather: appreciate it. >> welcome. >> gregg: newt gingrich's poll numbers taking a plunge in iowa,

many point to an onslaught of recent attack ads like this one: >> hi, i'm nancy pelosi. >> we do agree, our country must take action to address climate change. if enough of us demand action from our leaders. >> together we can do this. >> gregg: thanks to loopholes in the campaign finance law it is anybody's guess who is actually behind the ads, super pacs can remain anonymous until after the votes are cast in the first four primary and caucus contests, so, how is this impacting the voting process? joining us live, john fund, senior editor with american spectator. john, good to see you. the original intent, as i understand it, of the law allowing the so-called super pac, spending all the unlimited

money and campaign advertising was to disclose the financing, and the donors, full disclosure, truthfulness and so forth. but, reporting rules as they are designed, seem to allow disclosure after the ads run, does that make any sense to you? >> look, i'm in favor of transparency, but, unless you have real-time reporting of every donation, you simply would have the super pacs do the bulk of their ads with the most suspicious donors, just before the election. so, you are going to have to somehow find a way to make the reporting gel with the election calendar and, remember the republican pacs that we're talking about are eventually going to report all of their donors, the democratic super pac, priorities u.s.a., run by aides to president obama is not reporting anything and everyone is anonymous who reports to that organization. >> gregg: all because of the -- since the supreme court decision

the first amendment allowing for unlimited advertising by individuals, corporations, and unions, but, you know, john, isn't it important or relevant for voters to know who is behind the ads? arguably the information would allow voters to discount the negative ads that slandered or biased or untruthful in some cases? >> well, of course the ads are slanted and biased, that is why they are on the air. more importantly than the donors we should look at the ads and say, is it truthful? the ads you have shown, which has newt gingrich and his own voice appearing with nancy pelosi, endorsing climate change legislation is about as accurate as you can get. i mean, he did it. and, he said it is this dumbest thing he ever did in politics. so i agree we should have donor transparency but we shouldn't make an obsession of it, but, remember, if you make donor transparency the major issue rather than the content of the ads, you will have a bunch of people who are subject to harassment or intimidation by people who may not like the ads.

rather than focus on the donors you have to focus on the overall message, that is certainly fair game. >> gregg: and that was the ad, we were playing, that contains -- actually an attack ad containing an ad which newt gingrich ran with nancy pelosi and look, his former press secretary, who is now a top advisor to the pro gingrich super pac, he has one of those, said the following and i'll put that up on the screen. it is ridiculous that we have the ability to raise unlimited money and direct the message of the campaign when the candidates themselves don't have this. rick tyler, the former gingrich press secretary. kind of a fair point, isn't it? >> yes. i think we have to have congress revisit this and somehow make the laws more equitable, have a level playing field but at the same time it is a big improvement, because, before citizens united we had the federal government, which is supposed to not make any laws based on free speech, the

federal government was stepping in and saying you cannot run certain ads, 30 days before an election or 60 days before an election, that was an incredible violation of free speech. so, while we have to get the transparency issue resolved at the same time, i am glad the supreme court did citizens united because it means we're not going to have the government playing nanny, and dictator of who is speaking. >> gregg: but the loopholes, though, are vexing, and, here's another one, for you. i think. there is also a caucus exemption to this. which means, essentially, the rules are more relaxed in the primaries, than they are in the caucuses. does that make any sense? >> no, that is ludicrous, and it is a primary run under different rules and, iowas is getting more attention, probably more than new hampshire will, that is insane. >> gregg: there was a disclosure by a pro mitt romney pac showing $1 million came from i think in the end, an untraceable shell

corporation and under pressure it was revealed that it came from a former official with mitt romney's investment firm. that is the kind of thing we're talking about, duplicitous and deceptive. >> we have to have transparency and we shouldn't make it the sole point of our discussion. because, remember, unless we have real time reporting of everything that goes into the super pacs, they have to report on the internet within hours you will delay the worst and most suspicious political contributions until 24 or 48 hours before the leck and there is no obvious solution. i think we have to rationalize this and congress, clearly failed to do that, citizen unite was over a year ago and congress failed to resolve the loopholes and anomalies and they should go back to that and do it but, too late for this election. >> gregg: and i don't mean to be picking on the g.o.p. here, but the pro romney pac claims -- if i have it right, a pro obama pac run by former aides to the

president, called priorities u.s.a. is now using secret money to attack romney. that's right? >> as far as i know the obama supporting pac doesn't really disclose nearly as much as some of these other pax and remember, president obama entered the 2008 election as a candidate sake i'm all for public financing and dropped the public financing and went to financing his campaign through private donation only, and, under $200, there was no reporting at all and we later found there were a lot of people from the foreign addresses and foreign associations, that apparently have been reporting, or making multiple contribution under $200, so the obama administration has absolutely no track record of -- to be proud of on transparency. >> gregg: i always thought americans win when there is transparency and truth. you know, and to delay reporting and hide reporting and financing indo nors a donors and so fovrt

be anathema... >> it is more information for people. >> gregg: exactly. good to see you and remember, fox news is your home base for the first in the nation iowa caucuses, tonight, 8:00 p.m. eastern, live from iowa. america's election headquarters special, previewing the big race with bret baier and megyn kelly and our special coverage of the caucuses, beginning tuesday, 6:00 p.m. eastern, right here on the fox news channel. >> heather: north korea's new leader wasting little time assuming the role of his nation's military head. these pictures just out of north korea showing kim jong-un visiting a tank division new year's day, his first military field inspection since the death of his father, kim jong-il, at the same time the government releasing a new year's message, vowing to bolster its military. and defend the newly apoints supreme leader. or ruler, quote, unto death.

the statement did not include north korea's usual criticism of the u.s., nor was there any mention of the north's nuclear ambitions. >> gregg: tehran ringing in the new year with a shocking announcement about the nuclear program, iranian scientists now saying thigh have produced the country's first nuclear fuel rod. that gives them the material needed to build a nuclear weapon and this comes the same day iran test fires a missile designed to evade radar. doug mcelway has more from washington. doug? >> reporter: it was last thursday, a state department spokesman, suggested that the weight of international sanctions may be causing iran to, quote, lash out, and today's new provocations lend credence to the theory, after announcing a postponement of a missile test yesterday they carried it out today, a medium range sea-to-air missile designed to evade radar and at the same time iran announced the nuclear scientist produced the nation's first nuclear fuel rod. a tube containing pellets of

enriched uranium to provide fuel for nuclear reactors, an achievement western experts believe iran was not yet capable of and john bolton says this narrows the window of time, for the west to act, before iran becomes a nuclear power. >> panetta said he thought they'd have a nuclear weapon within a year and i suspect it is less and i think 2012 could be a very important year if israel reads the situation the same way as secretary panetta, the time in which they have to take military action against the iranian nuclear weapons program is very, very short. >> reporter: the missile test and the announcement of construction of nuclear fuel rods comes a day after president obama signed a measure that is designed to reduce iran's oil revenues by penalizing foreign financial institutions, doing business with iran's central bank. many believe such a sanction would be the toughest yet imposed on iran, and, indeed upon news of the new sanction, iran's currency slipped to a record low today. in washington, doug mcelway, fox news. >> gregg: thanks.

heather? >> heather: the brand new polling shows that nearly 3/4 of the american people think that the u.s. is heading in the wrong direction. so, now, as the american people prepare to choose our next president, how do we face the challenge while many are losing faith in or leaders? here now, fox news contributor father jonathan morris, he's a roman catholic priest and author of the book "god wants you happy." and i always like it when you are here. you give us positive feelings, tell us now, we have the economy and we have the wrestling matches in washington, how do we make the country happy again? >> you know, 3/4 is a lot of people saying the country is going in the wrong direction, but as we were waiting for the segment and, looking at all of those wrestling matches you were mentioning in washington and iowa, you know, i don't think things are that bad. and, in other words, if people are actually expressing the country is going in the wrong

direction, it means they have some sort of confidence that the country can actually change. otherwise they don't bother to even manifest their disgust. think about what is going on in iran. think of what is going on in north korea. that is called total desperation. and that is why the voice nissan, is silence, heather, there are tough things but the fact we care this much about it and we trust or election process, and, in the end, in the end, actually, politics is -- as much as -- heated as it gets will not solve all of our problems and i think that is the ultimate sign of hope. >> heather: and, that is a hopeful message and i didn't think of it that way, obviously people think it can be better, otherwise they wouldn't be saying it is going in the wrong direction. >> absolutely, and, i was thinking, also, about why is it that we might say politics and the economy, things are going in the wrong direction. remember the hope and the change -- >> heather: and the change. >> and spirit of positivism, among many people prior to the

election of president obama. there was this groundswell of new interest in voters and, why? because they had confidence for some or another reason, that this person or this administration or this new group of people was going to bring about a bet your life for them. now, i think that is based on a character that they believed. they believed that this guy would actually carry out the wonderful things that he said he was going to do and you know what? right now, i think we need to look for leaders with character. and, also, with policy, that is helpful in the respect of the dignity of every, single human person. i think there is great hope. i really do. people are involved, people are interested. and, i think we have to say, who is it that is going to allow us, not to solve all of our problems, but, take one more step. if we're waiting on the federal government to solve our problems we are looking in the wrong direction. let's begin with family,

individual character, individual honesty and, heather the most important thing, if we are going to make a new roaryear's resolu, today this is day, start with character. >> heather: how do you determine if someone has good character. >> start in your own life. write down, what are the things i need to work on, rather than, i'll try and lose five pounds, that is a wonderful thing but that is not what our country is based on, beautiful people. the country is based on people with character and people we can trust and banks that have heads that we can trust. politicians that we can trust. fathers and mothers that we can trust and even trusting ourselves. to do the right thing in tough times. >> heather: confidence, hope, trust and character. >> real confidence, real trust. that begins with a solid foundation of character. hurricane and begins within yourself. airport, thank you so much. we appreciate it. and happy new year. >> happy new year to you as well. thank you very much. >> heather: great message for everyone at home. so, gregg? >> gregg: 2011, one for the

record books, if you are keeping track of the most ridiculous lawsuits filed in this country, hang onto your hats. one mom going after a pizza mascot for encouraging gambling and another lawsuit for $5 million, over an 80 cents refund. our legal panel weighs in on the crazy court cases, coming up next. this new at&t 4g lte is fast. did you hear sam... ...got promoted to director? so 12 seconds ago. we should get him a present.

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>> gregg: america lands of the free and home of the lawyers. now one legal reform group list the most ridiculous lawsuits of 2011. let's bring in our legal panel, mercedes colwin, and joey jackson, and, former prosecutor. all right, let's begin the year with ladies first, mercedes. this first lawsuit was a total runaway winner, getting 54% of the votes, on-line. it happens in kansas.

a guy, jesse, he kidnaps the newlyweds, jared and linda rowley, the couple is suing him, that is understandable. but, then, the kidnapper, counter sues, claiming that the rowleys breached an oral contract to hide him, resulting in him being shot by police. all right, what do you think of that, mercedes? >> i had to stop myself from laughing. happy new year, first of all, gregg, great to be on the show with you and joey but i was -- it was amissing, what he said is, hey they said they would hide me and it didn't matter i burst into their home and had a knife and, although he doesn't admit that, but threatened them and he was on the run from the authorities, for allegations for murder and something we have this oral contract as we're sitting back and chatting, and they said they would hide me from the police and suddenly the police burst in and shot me in the back and of course it is all

the rowleys fault, not mine at all. please, can someone wake the person up? thankfully, unlike the other cases we'll talk about, he doesn't have a lawyer that is sitting there, writing down his counter suit. he wrote it all himself. in his own penmanship. >> gregg: and pretty bad been penmanship. i looked at it. and, the kicker here, joey is, the guy was already wanted for murder. he was a fugitive. >> yeah, it is really shameful and, there is a saving grace and i know everyone hates lawyers until you need us but the saving grace is mercedes alloweded ude and, he different have one and it wasn't a clever lawyer, he came up with the bright idea to sue because you breach your oral contract. it is nonsense and wouldn't hold up in court and they are under duress and no claim it will be dismissed. >> gregg: i'll run through one each for you. a new york woman, mercedes, claims century 21, the store in new york and elsewhere, ripped her off on a $5 coupon, and

cheating her out of... she's suing for $5 million, over 80 cents. >> that reminded me of the judge that said his pants were ruined by the laundromat and he sued for several million dollars though he lost a pair of pants. that is the craziness and i don't know what will happen but certainly the judge will say, where are you coming from? thinking that sow your coupon is worth $5 million, and, thankfully the new york court system are conservative and you have judges out there that may hammer here, depending on the judge and say, get out of court. >> gregg: let's hope for the best on that one. >> take your coupon somewhere else. >> gregg: illinois. two adults suing their mother for sending card without gifts. and, for playing favorites, bad mother, and the boy didn't get a birthday present and the girl didn't get a homecoming dress and the case went to the court of appeals? how could it. >> amazing, because there is that thing, negligent infliction

of emotional distress, when you send your kids cards, goodness forbid if you don't have gifts in them and for the prom they need a dress and the mother treats me wrong and badly and it shouldn't have gone anywhere. it was entertained by the courts, former, wiser minds, you know, are prevailing in this case and they have no claim. but to sue your mom at that and, a lawyer taking on the claim? come on! >> gregg: shame on you for suing your mom. >> moms should get amnesty. >> gregg: i have to hit chuck-e-cheese, a mother sues chuck-e-cheese, mercedes, claiming many of the games intended for kids are actually illegal gambling devices like slot machines and she wants $5 million on that one. >> i love it, it reminds me of the mother that said mcdonald's made her kid fat because of the toy in the happy meal? please, give us a break. i mean, obviously, the case will be out the door and there is no correlation and if that were the

case, you'd have to ban all the toys that look like slot machines and no chance, no how, leave the chuck-e-cheese -- by the way, i love it. >> gregg: a children's arcade game, is it a criminal act. >> of course not but the other thing, if you don't like the games in chuck-e-cheese, don't go. there is individual responsibility here, if you don't like a product, don't like a store, don't like what they are doing, the message they send, stay home. >> gregg: all right. we're out of time but i'm going to leave our viewers with this one, we will not talk about it. pennsylvania man, illegally brings a gun into a bar, he gets injured in a fight, and sues the bar for not searching him for a weapon and stopping him. okay. that is my favorite. >> unbelievable. >> gregg: happy new year, good to see you both. >> happy new year. bye. >> thanks, gregg. >> bye, happy new year, heather. >> heather: to you, too, mercedes. we have tips for keeping those new year's resolutions, coming

up, the secret to improving your overall physical, mental and emotional health. in 2012.

>> heather: europeans plunging into the new year in style. you could say. an annual tradition, going back more than 6 decades, divers leaping from rome's bridge en to the icy river -- into the icy river, a height of 50 feet. that's all -- and the cap stayed on. they have been doing this for a while. but, the river can be shallow this time of year. not to be out done the germans discovering their cure for a hangover, swimmers meeting every january 1st at a lake where temperatures dip near freezing and germans claim winter bathing

as it is called is good for the mind and the body. >> gregg: i'm thinking of cardiac arrest there. don't try that at home, kids. all right. >> heather: you probably heard now... stop while the music plays and, perhaps say to yourself, the new year, a new you, you swear this is the year you will finally lose the weight and stop drinking and quite smoking, all worthy goals, of course. >> gregg: of course, how many of us stick with those resolutions? let's talk about it. and getting in shape and staying healthy this year, with our fox news medical a-team, dr. marc siegel. happy new year, good to see you. >> that is not on the list, swimming in icy water. >> gregg: you don't recommend that? >> no. >> gregg: cause a heart attack. the first recommendation you have is, set specific and modest goals you can stick to. make sense? >> absolutely and by the way it starts with not saying i'll do it in april, i'm joining the

club, a health club and we're doing it in march. that never works, you have to start now on january 1. and the good news is, the studies back me up on this. exercising 20 minutes a day, is probably enough. we used to think it had to be 45 minutes a day and if you literally run a mile, mile-and-a-half, or walk or bicycle, something to be active, 20 or 30 minutes a day, every day, is a great place to start. >> heather: do something and what about quitting smoking and drinking less alcohol? >> that is hard to do but i'm so, so interested in that. i have to tell everyone out there, if you stop smoking, you will cut down on anything relating to health. do you know lung cancer, 9 out of 10 lung cancer patients are smokers? smoking and the great news is, if you quit smoking this year in 2012, your risks of heart disease go down dramatically within one year, your risks of lung disease and lung cancer go down dramatically within five years. do it now and drinking, keep track of hutch you are drinking because a lot of people when they come to see me say, i am

having 4, 5 drinks a day, cut it down to one at the most. >> gregg: okay. this i'm going to try. drink more party to improve metabolic function and suppress hunger. >> that is my secret cure. water decreases the hormones in your brain that cause you to be hungry? go on the treadmill 20 minutes and drink water, afterwards, and you are not as likely to eat something. and, it is good for you and it flushes outer kidneys and, let's replace soda pop with water or seltzer, something without those calories in it. >> heather: and you talked about the exercise, modest goals for exercise, 20 minutes per day of cardiovascular. so running, biking, anything like that. and avoid prolonged sitting. >> i want to add that to it. this year a big study came out, 2011, i should say, last year, a study came out that showed, not sitting on your duff, getting around the office and walking to the supermarket, don't say my 20 minutes is done. now i'm going to sit the rest of the day.

get around. >> gregg: winston churchill had a standing desk, not a sitting one and he wrote all of his beautiful columns standing desk. >> same with hemmingway. >> heather: i wouldn't go that far. >> gregg: 7 hours or more sleep per night. >> people are cutting that all the time, 5, 6 hours and studies have shown, cut down on your risk of heart disease, stroke, diabetes, if you sleep 7 hours, it doesn't have to be 9 hours, if you are an adult but go for the 7, being the magic nup. >> heather: and also helps with stress management which is your next one. >> absolutely, the more you sleep, the less stressed you are and the more sleepless you are, the more stressed you are and basically you have to start with the discipline to cut down on stress. think about, what is in your life that causes you to be stressed? is it your children? your spouse? the workplace? >> gregg: all of the above. >> really, distance yourself from the things that are provoking you. >> gregg: decrease carbs and fat and eat protein and vegetables separately from carbs. >> a nice little trick. diets should be separate.

you want to lose weight, don't have a little bit of a carb and don't have your fish and your broccoli and add your rice to it. keep the carbs separate, if you have a carb, don't have it with your main meal hurricane and be positive. focus on positive things. if you can. >> and what you love about people. let's have a love fest. you know? don't fight with your family all the time. hug them, a hug a day. a kiss a day. that is what you've got to do. >> gregg: my wife is big on schedules and writes everything out and, you know, a to-do list and sticks to it. people should do that, right. >> make it a modest listing. i want people to start today. write the list, what exercise you'll done and how much sleep will get and what you will eat. it doesn't have to be a huge journal, a list telling you what to do tomorrow is something you are more likely to follow. put it on the refrigerator with a magnet. >> heather: finally, incentive. >> it works the best of all. we found in the business place, figure out something to get you to lose weight. i do that with my little guy,

bought him a "back to the future" car, a little delorean, if he read five books. give a reward. >> gregg: happy new year. [ male announcer ] this is lara. her morning begins with arthritis pain. that's a coffee and two pills. the afternoon tour begins with more pain and more pills. the evening guests arrive. back to sore knees. back to more pills. the day is done but hang on... her doctor recommended aleve. just 2 pills can keep arthritis pain away all day with fewer pills than tylenol. this is lara who chose 2 aleve and fewer pills for a day free of pain. [ female announcer ] get an aleve coupon in this sunday's paper.