jenna: on the campaign trail there are many creative ways to fund raise, jon, but this one might be geared more towards you than me. jon: well, maybe. our carl cameron, taking a look at rick santorum's sweater vests. jenna: $100 each. jon: whatever. jenna: thanks for joining us, everybody. "america live" starts right now. megyn: fox news alert on a new white house effort to downplay president obama's re-election bid despite evidence that the president's campaign is already in full swing. welcome to "america live," everyone, i'm megyn kelly. with the election now just over ten months away, the white house is telling the american public that president obama is not quite ready to campaign. despite the fact that his fundraising numbers might suggest otherwise. in the second quarter of 2011, the president raised $86 million. in quarter three, $70 million. and in the fourth quarter,

fundraising evened $68 million bringing the

. >> the only way that that can be true is if you so narrowly define re-election as, essentially, things that are specifically under fec rules, minutes spent doing that. but remember, let's think back to all of the swing state visits. "wall street journal," our cousins at "the wall street journal" did a great piece where they looked at the dozens of official visits to swing states that the president's made. we remember the bus tour that he took through iowa, virginia and north carolina, all swing states. the president, it's not just his official campaigning and the fundraising, but the whole campaign has seeped into, in very large part, everything that he's doing. we saw this week, as a matter of fact, at the same time republicans were bashing mitt romney, the president just happened to have an event on the same topic.

so it all bleeds into each other. megyn: why is he saying this? it's not unusual for a president to spend some time campaigning. why are they saying this when there's nothing wrong with doing that? >> well, one thing is there's been more of it than before. all presidents do it, it's something that every incumbent does, and the things bleed into each other versus how much time you're doing this and governing. i believe it was the late, great tony snow was the president was the president everywhere he goes. he's the president all the time. washington has been totally stalled. there's been nothing happening, essentially, since the midterm elections which were a strong rebuke to the president and his party. washington's been stalled, the president needs to look busy, not just running across the country trying to get reelected. megyn: but how much of it is an attempt to look above it all? we saw him on letterman saying i'll start paying attention to the gop field once everybody's

been voted off the island. and then he suggest he didn't watch the returns in iowa or new hampshire, you know, why do they want the american public to believe that he is not interested as any incumbent president would legitimately be in who his opponent would be? >> well, that's -- you've nailed it, and the whole answer is, basically, this: that what barack obama wants to be is the man, and he wants to have mitt romney or whomever the republicans to be some dude. he wants to be the guy while this republican is the survivor of an unfitting and an undignified process. so you're right, barack obama wants to elevate himself above the game. but the downside, and there is a real downside here s that it kind of sounds bogus when the president acts that way because he's a political animal. he's spent, that's his career, his life is being in politics and doing this from a relatively young age. so, you know, it doesn't, it doesn't wash. many. megyn: yeah. clearly, his campaign effort has been attacking mitt romney, but it's a question of what he's

done, i guess. chris stirewalt, thank you, sir. >> you bet. megyn: yesterday the president invited ceos and business leaders to a white house event focused on bringing jobs back to america, but as this picture from politico.com suggests, there were quite a few no-shows. in fact, that guy you see sitting by himself, that's vice president biden. coming up, why this picture may be worth a thousand worries for the president's re-election effort. meantime, in the republican presidential race in south carolina mitt romney is facing relentless attacks from his rivals as they attack his time at bain capital. romney says the investment firm he headed came to the rescue of several big-name companies and created more than 100,000 jobs. he calls that proof that he knows something about getting people back to work. >> pretty straightforward. just look at those companies i mentioned -- staples, let's see, steel dynamics and the sports authority -- and you can just go on their web sites.

you can see they're well over 100,000, and then there are a number of businesses which have been evaluated over the years by the media, and they've put down the number of job losses and documented that. that data is available, and it's a few thousand of reductions compared to well over 100,000 in additions. so the net-net is over 100,000. megyn: governor romney also believes his chances in south carolina are better now than they were four years ago when he finished fourth in the gop primary. saying it's now about the economy, and the economy is his, quote, wheelhouse. and speaking of romney's business experience, stu varney joins us in less than ten minutes right here for a closer look at the real story behind bain capital, its successes and its failures. you'll want to see that. ♪ some new economic numbers out today. unemployment claims spiking last week to the highest level in six weeks. in i numbers from the labor department today show 399,000 people filed first-time jobless claims.

economists predicted a smaller rise to just 375,000. december sales also missing expectations, they were up just one-tenth of 1% from november. obviously, christmas and the other holidays in december usually lead to more sales. those numbers this month were much less than analysts predicted. and realty trac is promising a larger number of foreclosure in 2012. the lowest level since the recession began in late 2007 last year. significant new developments in a food safety story we told you about yesterday. the fda quietly issuing an order stopping and screening all shipments of imported orange juice into this country. the agency testing the juice for an illegal feng side. any shipments containing even low levels of the toxin will be destroyed. trace gallagher has more. trace?

>> reporter: it's been known to cause higher cancer rates in animals, and actually coca-cola blew the whistle on this telling the fda that they had evidence that growers in brazil were spraying their crops. when the fda tested some of the oj that came from brazil, they did find trace amounts. it's a big deal because one out of every six glasses of oj that's consumed in this country is from brazil. brazil is now protesting saying that the pesticide is widely accepted for a lot of other crops, including apples, and they don't get what the big deal is about frozen oj. even the fda acknowledges that the levels found in the brazilian oj are thousands of times lower than levels that are considered harmful, but the feds apparently taking a better safe than sorry approach on this. the fda is also testing oj that's already in this country making sure that it, too, is also safe. but it's important to point out they haven't ordered any recalls

at all, and they're not telling any of us not to drink the frozen oj that we have. but it's certainly affecting the price of oj. the futures are the highest now than they've been, megyn, in five years. so, clearly, people are worried about this. megyn: dr. segal was on yesterday saying they detected was this fungicide in 25 parts per billion over in europe and brazil. they drink it a 200 parts per billion. he said don't worry, but i guess they're looking at this sort of more caution is better than less caution is the fda's approach. >> reporter: sure. megyn: trace, thank you. he also said he'd have his kids drink oj, but you have to watch the sugary drinks, that's what he was saying. mitt romney being attacked for that bain capital private equity firm, but we did our own digging, and in three minutes we'll show you how this firm actually worked, who it has helped or, in some cases, who it hurt. and she's a ski champion who

lobbied to get freestyle skiing as an olympic event, but now sarah burke is in a medically-induced coma. see what happens. plus, new reporting on a fascinating story out of north korea. we'll tell you why these people, some people are facing jail sentences for not breathing -- not grieving enough when kim jung-il died. wake up! that's good morning, veggie style. hmmm. for half the calories plus veggie nutrition. could've had a v8.

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places more sanctions on its oil exports. we will have more in our next hour. ♪ it has become the hottest political story of the republican primary, mitt romney and bain capital. so much of what voters are learning about romney's time as head of the investment firm has been through attack ads and from the democratic national committee. so we did our own digging about governor romney's years as bain, its successes, its failures and how the business of private equity actually works. for a look at the facts, we're joined now by fox business network's stu varney who's anchor of fbn's very think and company. let's separate the fact from the fiction. most people don't even know what private equity firms do, but they essentially swoop in with big, big dollars and invest in companies and see if they can make money, correct? >> that's what they do. it's private money which goes into a company which may be

troubled or have a good idea to develop that company, make it more efficient, produce the best products at the lowest price employing the most people. megyn: what was bain's record at turning companies around? >> it has a very good record, okay? it is not an asset stripper. that's the old brutal capitalists that walk into a company -- megyn: gordon gecko. >> exactly. precisely right. they find out what's valuable, sell it, fire everybody else, walk away with the money. that's brutal, inhuman, predatory capitalism. bain is not like that at all. they are the creative capitalists. they're the ones who went in to turn around domino's pizza, for example. they're the ones who created the idea or went with the idea for staples and for bright horizons. developing a good idea, developing the company, putting your money at risk, walking away with a nice product, but making america more efficient. many meg according to "the wall street journal," they say that about 30% of the companies turned out to be losers, and i

don't mean that in a pejorative way, but in terms of if and company didn't make an investment, 70% turned out to be winners, which how does that compare to the industry? >> that's a very good record, very good, indeed. normally, with this kind of venture capital activity, you might get one or two big winners out of ten ideas. so a 70% pretty good success record, that's good -- megyn: so the notion that romney and bain were going in and raiding and bankrupting these companies and leaving with the spoils -- >> no. megyn: do the facts bear that out? >> i reject that on the grounds that they were not predatory capitalists, they were trying to develop capital, develop private enterprise. megyn: all right. let me ask you about two specific examples. first, there's ampad, all right? american pad and paper company which is a company that bain bought in 2002, and i believe it is featured in this gingrich/pac-backed movie where they have a lot of folks complaining about mitt romney. i think we have a sound bite from the movie.

let's watch. >> mitt romney became ceo of bain capital the day the company was formed. his mission? to reap massive rewards for himself and his investors. >> mitt romney and them guys, they don't care who i am. >> he's for small businesses, no, he isn't. he's not. >> you're going to be on the hit list, you know that? megyn: so what is the story with ampad? did bain raid that firm? >> no, they did not. that's not an accurate adjective to use. bain bought them in 1992. they expanded the company through acquisitions. they wanted to make them -- it's an office products company. they wanted to make them more efficient. they tried to cut operating costs. megyn: one of the companies they tried to fold in -- >> correct. they failed to turn around the labor situation and, ultimately, they went bankrupt. this is ampad. they went bankrupt in the year 2000. now, bain did walk away with

$100 l million from that company over the eight years that they worked with them. and yet they were a failure. i would not say that they were predatory capitalists, they at least tried. they didn't -- megyn: but the allegation seems to be they went in there, they took that $100 million, basically, from these women and these guys we're seeing and left them with a carcass. and that's why the company went bankrupt. is that true? how does bain walk away with $100 million out of a company that's about to go bankrupt? >> well, there were management fees. the company did go public, and bain made $60 million when those shares were sold to the public. it just was not a sound company. megyn: so is that sucking money out of the company, or is that getting money -- >> those are pejorative words. when you say sucking money out of the company, they gave it eight years where they tried to turn this ainge around. and the individuals you saw in the video, clearly, they were hurt, they'll casualties of this situation, but it was not an

intentional -- megyn: they were part of a union that couldn't reach a deal with management. >> i believe so. megyn: i don't know if those particular or peopleere, but those were the issues. all right, i want to talk to you about newt gingrich who's going hard on romney about a medical diagnostics firm acquired by bain. if you look at "the wall street journal" piece, it appears to match exactly the allegations that gingrich is listening. listen to gingrich and what he told me earlier this week. >> let me give you an example from "the wall street journal" yesterday. there was a company that they invested $30 million in. they then took $180 million out and a couple years later was bankrupted. now, that's six to one. if they'd only taken, say, 120 million out, the company might have survived. and they have a real fiduciary responsibility. megyn: first let me ask you about that notion. did they have a fiduciary responsibility to the workers there to take out less than they did? is that how it works with private equity firms?

>> no, i don't believe that is the case. i think mr. gingrich there objects to the sheer volume of profit as if taking out 180 million when you put 30 million in is somehow bogus and wrong. if you look at the long-term effects on dade of bain's management and the long-term effect on that company, you'll see this: they bought into them in the late 1990s, they reorganized this company, they put in a lot more money, they recapitalized it, but dade went bankrupt in 2002. three years after mitt romney had left. however, they were only in bankruptcy for a couple of months. subsequently, they were bought out by siemens for $6 billion. so you've got a company that goes from 30 million to six billion with wayne managing it in the -- bain managing it in the meantime. bain took out 150 million pure profit. now, i call that a success story. that company was turned around, made very wealthy and made whole and made dynamic.

i call that a success. megyn: stu varney, very interesting. i bet most of how -- our viewers never thought we'd be getting to this discussion in a presidential race, but it's become a big deal. >> capitalism is not a charity. we pursue profit. there is risk, and some people do get hurt. overall, we become much more efficient and dynamic. the place we want to live. megyn: stu varney, thank you, sir. always a pleasure. well, coming up, we are hearing new warnings that the republican race is going to get very ugly in south carolina. former prcial candidate senator john mccain knows that all too well. he was the target of some dirty politics back in 2000, went through it again back in 2008. the senator is here today on what's to come in the fight to win the palmetto state. plus, new fallout from one of the large bankruptcy filings in u.s. history. a group of americans who made their living from the land are now suing former governor of new jersey jon corzine over billions

in missing money. and remember this? grieving north koreans crying a bit too hard after the death of dictator kim jung-il? now some people are being jailed because they weren't grieving hard enough. our correspondent just returned from the region, he is here liv next. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

megyn: new reports out of north korea saying the government there is now punishing folks who did not shed enough tears or display enough sadness following the death of the leader, kim jung-il. seriously. jail time for not crying hard enough. that explains scenes like this, does it not? fred talcott just -- greg talcott just returned from north korea, he joins us live. seriously? >> reporter: megyn, the reports we were getting are based on defectors and informants. apparently, the north korean

government was running sort of truth sessions, really hard sessions with individuals that they feel did not perform well enough. that is, did not cry, did not cry enough or did not show up at the events, tried to get out of town, tried to use mobile phones. the punishment? according to these reports -- again, just reports but coming from defectors and informants -- as much as six months in the political gulags in north korea. we know for a fact that those gulags are there and tens of thousands, maybe hundreds of thousands of north koreans are there as well. megyn: wait, were people told before the funeral, okay, you could go to jail if you don't cry hard enough? is that why these people are so hysterical, do we believe, greg? >> reporter: it is really a complicated answer to that question. again, we talked to a lot of people on the ground who knew the situation. some people may be genuinely crying. there is a cultural pattern there in the korean peninsula of open grief. other people crying because they lost a people who they depended

on for a lot of different luxuries, etc. there is a thinking about group think -- megyn: look at these guys. they'll go to jail. >> reporter: again, there is a lot of coercion. the former prime minister said to me very bluntly, it is coercion. finally the major memorial we saw there was crying outright for the individual, the next day another public show of strength by the public, absolutely none when the attention was shifted onto the son. megyn: it's amazing how you can go down the line. jail, not jail. jail, free. greg, another day to be glad you live in america. thank you. >> reporter: thank you, megyn. megyn: can you believe? what are your thoughts on it? kelly@foxnews.com. well, a picture that could speak volumes towards president obama's tough road to re-election. dozens of empty chairs after a big event at the white house. they had extended the invitation to a bunch of ceos. where were they? coming up, why this picture may

twine -- define the president's real re-election challenge. plus, a star skier is now in a coma fighting for her life. a live report on what happened and new information on her condition. and a loud uproar in mississippi after governor haley barbour pardons more than 200 convicts, some of them killers and rapists. now a new move to block some of those pardons and not allow these criminals to go free. a live report. >> i call on governor bryant to do what it takes and lead both parties in mississippi, and let's get some of this stuff changed where nobody else has to go through this. phillips' lady! we have to thank you for the advice on phillips' caplets. magnesium, right? you bet! phillips' caplets use magnesium. works more naturally than smulant laxatives... for gentle relief of occasional constipation. can i get an autograph? [ female announcer ] live the regular life. phillips'. [ female announcer ] live the regular life. the best approach to food is tkeep it whole for better nutrition. that's what they do with great grains cereal. they steam and bake the actual whole grain

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the 2012 motor trend car of the year. ♪ seek your way and go megyn: a major figure in the world of sports is in a medically induced coma today. sarah burke is a free style ski champion and a trailblazer for women in the winter olympics. she suffered a serious head injure in utah and her prognosis is unclear. trace gallagher has more from our west coast newsroom. >> reporter: sarah burke is the top female half pipe athlete in the world. those who don't know the sport, it's a continuous series of flips and gainers, and multiple 360s. the training run she was on was in park city outside of utah. those who witnessed the accident say it didn't appear to be that bad of a crash. now we know it was. she tore an artery at the base of her neck which led to

bleeding on the brain. she is in critical condition, she is on a breathing tube. but as has previously reported she is not in a coma. her husband who is also a proskier calls her a very strong woman who says will certainly fit to recover and she is strong. she's won the x games four times. she is instrumental in getting the half pipe added to the 2014 winter olympics in russia, and if she is healthy she will compete for gold there. thousands of facebook and twitter posts wishing her well. we are told her family will come out with a statement some time very soon. if we get the statement, megyn we'll pass it along to her. if you don't know her, her athletic ability, pull her up on youtube, she really is an amazing athlete. megyn: our best wishes for a quick recovery for her. trace, thank you. you know the saying, a picture is worth a thousand words, there is one picture that may be worth a thousand worries or president obama, or is it? yesterday the president invited ceo's and business leaders to a

white house event focused on bringing jobs back to america. as this picture from politico.com suggests there were a few no shows. the guy sitting there by himself, we believe it was joe biden, he took a seat by himself in one of the empty rows. the suggestion now is that this may point to a deep divide between the white house and leaders in the business community. is that fair? simon rosenberg is director of the new democrat network and former clinton campaign adviser, and rich lowry is editor of national review and fox news contributor. megyn: the house normally carefully orchestrates these things so there aren't a lot of empty seats at this event. what happened here? >> reporter: at least vice president biden was there attentively paying attention, which is really what is most important. >> generous of you, rich. >> i don't know how much to read into this particular event.

i don't know why a ceo would want to go to an event that is clearly a media event, meant to make a political point. the white house has scheduled two things now after both the iowa caucuses and the new hampshire primary, one was the very controversial appointment of rich cordray to that consumer board, which was meant to say, hey, look i'm the president here, i'm looking out for the middle class, and this event which is meant to portray him as trying to bring jobs back into the united states which no one can oppose. megyn: simon, do we make too much of this? >> if we took a picture of your studio now it would be completely empty and yet you're reaching millions of people. megyn: that's true, can we get a wide shot? >> i've been there with you, it's a big studio there. megyn: that's just me. everybody is starting to scramble, look. >> they nailed you. [laughter] >> i think yesterday that event, you know, had dozens of ceo's and the president of the united states, it reached tens of

millions of people. if they want to fill the room in the white house, they can fill the room. i think clearly they weren't tying. the key thing here though is what this election is going to be about in 2012 is that for eleven years the economy has worked very well for people at the top and not so well for people in the middle. the candidate who can convince the american people that they have a plan to get folks ahead who are in the middle will be our president in 2012. that will be the focus of the debate this year. megyn: the report was according to a white house spokesperson they had invited many business and community leaders, at the last minute they said they were unable to attend. there is a suggestion that they tried to fill the chairs and actually could not do so because of these cancellations. i want to ask you whether there is something big going on here, rich. we've heard the president criticized for calling them wall street fat cats and throwing a line of support to the occupy wall street protesters.

there is a guy who does hedge funds and he told me personally he donated a lot of money to the president this time. he got call this time and said to the person calling him, you know it feels like there is a bit of the witch hunt going on and i'm the witch. i'm not in the mood to donate. >> a lot of business feels that way. insourcing is a great thing. we'll hear more about it as labor costs in china continue to rise. if you want companies to keep operations and jobs here you have to cut the corporate tax rate, one of the highest in the world, pare back and regulations and make it reasonable and deal with healthcare costs among other things. this administration has pushed in the wrong direction in all of those directions, a massive regulatory tsunami, a massive healthcare bill that will do nothing on costs and a massive amount of debt that is going to have to be paid for with more taxes down the line. megyn: simon, they may be making money down in wall street, the business leaders, but there has been sort of a class warfare narrative, whatever you want to

call it, income inequality, that discussion has really been coming to a head in this country. is that what happens as a result, they don't show up? >> i think this is now a bi-partisan effort. in the last couple of weeks this attack on people at the top have been led by rick perry and newt gingrich in the republican primary, and i think this has now become a bi-partisan effort to really try to make sense of what's happened to the american economy. i applaud rich for the way he was describing what has gone on. some of the things he said with i don't disagree w. we've add an unprecedented economic event happen over the last decade. we had strong growth in the bush era but wages and income went down. we've had eleven years now where regular people haven't got even a raise. we are in tough economic circumstances here and i think what the country is looking for is not about pitting one against the other they are looking for a plan. remember, this week the president replaced his chief of staff bill daley with another chief of staff. that chief of staff was a senior

executive at citigroup who has more international business experience at a major corporation than mitt romney did at bain capital. this idea that somehow the democrat are against business it's right-wing silliness. we are going to be focusing on what the plans are of the two candidates in this election and i think it will be an incredible contest. >> let's not read too much into newt gingrich and rick perry. they are in fourth and fifth place finishers who are desperate to get any traction against mitt romney. they are going hard on the bain attack. look, simon you have to be delighted. i think every democrat in the country is delighted, but this will be a line attack in the fall and mitt romney has to get his message out on it and he has a good story to tell, i believe. the companies, the ones that went out of business were going to go out of business any way. bain was there in an attempt to save them. and mitt romney does understand much more about the private economy than a former community organizer does, and president

obama -- we've seen this antibusiness rhetoric because he wants to blame anyone for his poor performance and distract attention from it. megyn: all right, guys. i wonder what happens when you get the invitation to the white house and you say you'll be there and you cancel last minute, probably not a good way to be invited back. >> one word, audit. megyn: thank you both so much. >> thanks, megyn. megyn: with the threat of new sanctions looming iran's president is in south america right now meeting with allies like hugo chavez in oil-rich venezuela. what could this mean for us? look at the pictures we get. we'll have a closer look and more pictures like this just ahead. [laughter] megyn: plus a group of farm owners suing john corzine after millions of their dollars just disappeared after the collapse of mf global. we will speak to two of them about the massive class action lawsuit they've just filed next. >> i will repeat, i certainly would never intend to direct or

have segregated funds moved. i simply do not know where the money is, or why the accounts have not been reconciled to date. @=h

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megyn: presidential ads everywhere these days, even in the public restrooms. mitt romney's team reportedly launching ads slapped on hand dryers. they read, quote, please presents button to hear brief message from the president. get it? an anonymous mitt romney spokesperson is telling reuters the stickers have been placed in most major airport restrooms, and fast-food restaurants nationwide. the campaign has not made an official announcement on niece. new fallout today from the collapse of the financial firm mf global, a group of american farmers now suing former new jersey governor and ceo of mf global, john corzine for losing

their money. initial reports put the mg global losses at $600 million but regulators have since upped the estimate to $1.2 billion, gone. investigators only found 60% of those customer funds, that means a whole lot more money is missing. martin klinker is a montana farm owner and the lead plaintiff in the class action against corzine. and we have the attorney representing all the farmers in the lawsuit. we emailed governor corzine's attorney for a statement or response, the law firm received the message but we have heard no response yet. we'd be happy to put it on the air if they get back to us. gentlemen, thank you so much for being here. martin you're a farmer and you need to invest your money some place to keep your farm going and you decided to put it in mf global. now you've been told what about your money, your hundreds of thousands of dollars? >> yeah, that's maybe a little bit misunderstood. i'm not really an investor in mf global, i have a segregated

account which backs my trades, which is a requirement of the cftc for anybody who takes a position on the market. mf global was just the fcm, the futures commission merchant who was transacting positions within my account and other accounts similar to mine. so when mf global went bankrupt our accounts were swept into the bankruptcy, freezing us out of our accounts. megyn: have you heard any explanation, martin, other than what we all heard when john corzine testified before congress saying, i don't know where the money went, have you heard any explanation other than that? >> no, there's been no explanation. we are two and a half months past the bankruptcy, there has been no information from anywhere other than what you read in the media, which doesn't look good for the surrogate account holders. we are frozen out, and we have -- it appears we have no position at the bankruptcy table. we are not being protected.

so this was our way of i guess getting ourselves taken care of. there are institutional barriers that were broken. megyn: i want to bring mark in on that. mark, just so our viewers know, basically mf global had two sides. one side was supposed to have the segregated client account and the other side that did the investments and they invested a bunch of bad european debt, we all know that is bad now and the allegation is that they started taking from the accounts, the client accounts like martin's and moving the money over here to cover the bad investments, is that right? >> yeah, that's basically right. and that's the real tragedy of what is going on here. it's not bad enough that they were using their own brokerage firm money to make these risky bets, but they were apparently dipping into the brokerage customer accounts, the marty klinkers of the world, the 38,000 farmers they were handling funds for to use the funds to make the investments or to back them up when the calls came due.

that's what is so tragic here. i think these farmers, it's no different than you and i go to the bank and the bank tells us half your money is missing, and we can't find it. that is literally the situation that these farmers find themselves in. megyn: what does this mean for you, martin? how much money did you lose and what does it mean for you? >> well i am currently out close to $200,000 that i'm frozen out of, but it's tied up some place in a bankruptcy. that isn't even my bankruptcy. that account shouldn't be in the bankruptcy. beyond that i've lost confidence in the market. if my funds can be taken out of my segregated account in the middle of the night with a swipe of a keyboard with john corzine betting the farm in the european debt, then i don't know if i should put money into a different -- with a different fcm. so i liquidated a hundred thousand bushel hedge that the market is now about a buck 40

under what the position was. that means $140,000 is lost out of my operation, and like today the market is down 35-cents alone, is an unprotected asset that i have, i can't go with confidence and purchase fertilizer and fuel and lock in a profit. that also impacts small town america. megyn: mark, you allege in the lawsuit that corzine had, and these are allegations, that's how it works in litigation, you make allegations, and a complaint and then corzine will get the opportunity to respond, but right now you are alleging that he had a single-minded obsession when he took over mf global back in 2010, and what was that obsession? >> well, i mean mf global had existed for decades as a commodities brokerage firm. when he came in he wanted to turn this into the next goldman sachs. there was this get rich quick mentality that corzine and others like him came on, and

they didn't want to make money the old fashioned way, the way everyone else does it, they wanted to do it quickly an wanted to turn this into the next big bank on wall street. he ultimately apparently used customer funds to drive that obsession. this isn't a complicated case, it's about something you learn as kids. you don't take money that doesn't belong to you, and when you're caught you take responsibility and pay them back. you have 38,000 farmers who rely on this money, it's their money and they can't get the money back, $1.2 billion, where is the money. megyn: he has says he never misused the funds, never directed anybody to misuse the funds and was unaware of it. van a tee fair will report next month that he made over $16 million and went shopping for a chateau in france two weeks before mf global filed for bankruptcy. thank you, gentlemen. he went to new york city to celebrate new year's eve and what happened next is a

mystery. new clues in the search for college student iam burnett. pardons by hayley pwaerb, a new movhayley barbour, a new move to block some of those pardons. we'll have a live report. [ female announcer ] this is not a prescription. this is mary... who has a million things to pick up each nth on top of her prescriptions. so she was thrilled that her walgreens pharmacist recommended a 3-month supply and would always be there to answer questions about her health. now mary gets 3 refills in one and for 3 months, she's done. more or less. ask your pharmacist about a 90 day supply today. walgreens. there's a way to stay well. 8% every 10 years.age 40, we can start losing muscle -- wow. wow. but you can help fight muscle loss with exercise and ensure muscle health.

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megyn: if you saw our new year's eve show you know it was a record year for crowds in new york. more than a million and a half folks estimated just in the times square area now we are getting word this a virginia college student who was supposed to be in that crowd has disappeared without a trace. the family half 22-year-old iam burnett says that he traveled to new york and then his last contacts with friends was on december 30th. anna coiman who is the latest member of the fair & balanced family joins us with a live

report. >> reporter: the family half 292-year-old is returning to new york city searching for him and begging the community for any answers they can give. ian's brother jaime and father mark have been hanging these missing persons signs and hanging out flyers as well. the last communication that anyone had with the virginia commonwealth student was back on december the 30th. ian was visiting new york with the intention of sight seeing and celebrating the new year. we are told he was staying with friends in a northern manhattan apartment. when his family arrived to gather more clues they found almost all of his belongings inside, even his cellphone. the only thing missing was his license, subway pass and a credit card. it was last used at this burger king you see on december 31st. ian they say had no reason to runaway and are telling fox they are mystified. they gathered for a candlelight vigil. his female roommate said the

text mass average she received from him talked about the sites he had seen and going to central park and making plans for his return to school. a facebook page has been created with almost 2300 members now. he's 5'8", 130, green eyes and dark brown curly hair. authorities in virginia are working with new york city police here. ian's father says hundreds of volunteers in new york and new jersey have been helping in the search as well. we do have phone calls into authorities and will bring you any new information as we get it, megyn. megyn: thanks soeufp. coming up a u.s. aircraft carrier strike force entering the arabian saerbgs another on its way. the showdown between the u.s. and iran five minutes away. plus senator john mccain on "america live." he tells us why he's behind mitt romney and shares his own stories about sufficient and tumble times down in the south carolina primary. [ male announcer ] say goodbye to "ho-hum,"

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megyn: outrage by a by a popular governor in the south. i'm megyn kelly. outgoing mississippi governor haley barber under fire from the left and the right for pardoning 200 convicted criminals. a judge just blocked many of the releases saying the state did not provide the mandatory notices. some have already been set free and their victims have outrages. >> the governor himself should look me in the eye and said i will let this guy go. but there wasn't any of that. this has given mississippi a black eye. i call on governor bryant to do what it takes to get some of this stuff changes where nobody

else has to go through this. if i live to be 89 years old and there is nothing done about it, i'm going to continue to fight. >> reporter: just so we are clear on the math. governor bar bore issues releases for 189 convicts. of the 26 that remain. 5 have been released. a judge has stopped release of the remaining 21 because the attorney general says barbour may have violated the law. they need to publish the release in the newspaper 30 days before the release. the a.g.'s office is making the

calls. hahly bar bore has not responded to why he freed four convicted killers but he said 90% of his pardons were recommended by the parole board. the families of the victims are irate but the attorney general says they are watching the killers and watching out for the victim's families. >> we have our law enforcement officers watching the ones that we think are a danger that have been released. they will be fine. just be careful. >> reporter: the attorney general is a democrat. but even very staunch haley barber supporters are saying this was a bad move by the governor. four of them convicted killers they believe this gives mississippi a black eye, megyn. megyn: whether it was morally wrong or right, the pardons may violate the state constitution.

we'll debate that just ahead in "kelly's court." new reaction to the air war raging in south carolina. political ads blanketing tv screens down in the palmetto state. some are downright nasty while others are more positive. the first in the south primary is nine days away and the stakes are very high. south carolina may be a make or break contest for some campaigns. joining us for a look at the latest ads is pollster frank luntz. you took a look at some of the positive ones. >> i took a look at all of them and decided to bring to you just the positive ones. megyn: you had enough, too? >> it's just everywhere. you can't swing a dead cat and

not hit a political ad on television but i have three good ones. the first one from rick santorum. one of the best tested of the entire campaign so far. let's take a look. >> he's rick santorum. loving husband, devoted father, home schooler and a man of deep faith. he wrote the law that banned partial-birth abortions, overhauled america's welfare system and no one has done more to protect america from iran's growing threat than rick santorum it's no wonder palin, beck and huckabee are singing his praises. now it's your turn to join the fight. >> i'm rick santorum and i approve this message. >> that's a focus on the things he has done, the things he believes in. there is an economic and social component. it's got a higher than average unemployment rate but they are social conservatives. the next one is from newt gingrich. it's the best tested ad because

it focuses on his strength. let's take a look. >> the american people create jobs, not government. because -- [applause] it's simple. lower taxes, less regulation and american energy plan and actually be positive the people create jobs. the opposite of the obama plan. nothing will turn america around more than election night when barack obama loses. i'm newt gingrich and i approve this message. frank * the lines just disappear. when newt gingrich is in a debate, that's not only his strength, people listen and say that's what i like. they don't like the negative and they don't like the attacks. so there is that balance for him. that's the best tested ad. megyn: they like the pacs do the neccessary tough. >> he went from 33 to 13 in 17

days. megyn: he said i have had enough of the positive. let's get to the last one. >> this is run of mitt romney's best ads so far. >> i'm going to do something to government. i'm going to make it simpler and smaller and smarter, getting rid of programs, turning programs back to states and finally making government itself more efficient. i'm going to get rid of obama-care it many a moral imperative for america to stop spending more money than it takes in. it's killing our jobs and keeping our kids from having the bright prospects they deserve. i'm mitt romney and i approve this message. megyn: how important is the music. >> it's important. the simpler, smaller and smart were is what the american people want from government. megyn: does anybody remember these ads?

you don't remember what they say but you remember how they made you feel. that one makes you feel good about mitt romney. member * the popup videos, rick santorum, was that a good ad? >> no. i remember testing. that ad never got above a 30. people thought it was too hard to read, too hard to follow, they didn't want to do it. megyn: we are hearing new warnings that the republican race is going to get ugly in south carolina. former presidential candidate senator john mccain knows that all too well. he was the target of dirty politics himself. fox news alert. major military moves amid rising tensions with iran. as the u.s. naval strike group arrivals in the arabian sea. this comes on the heels of iran's war games in the persian gulf. iran's threat to block a major

oil route and a day after a top nuclear scientist was assassinated in iran. iran claims the west is behind it. catherine herridge live in washington with more. >> reporter: pentagon officials are confirming a new aircraft carrier strike group has entered the arabian sea and a six on its way. they are emphasizing there is no connection between the fleet movements and iran's threat to block the strait of hormuz. secretary of state hillary clinton is warning tehran about the consequences. >> it's part of the lifeline that keeps oil and gas moving around the world. and it's also important to speak as clearly as we can to the iranians about the dangers of this kind of provocation.

>> reporter: the vineo -- the vinsen was warned by iran not to return to the persian gulf last week. the u.s. has seeds upon these rescues, including the iranian fishermen. you can see some of the men on deck. this is clearly meant to undercut any of the iranian propaganda that the u.s. is always an aggressor in the gulf. megyn: thanks so much. south carolina redefined dirty politics back in 2000. john mccain and george w. bush at the time. senator mccain, three minutes away on what to expect in this year's dog fight. and when we look to the palmetto state. >> campaigns are tough. megyn, you know that. to somehow go back in the past,

sure. in 2008 you could find clips between me and mitt romney where -- you expect it. it is not a contact sport, it's a collision sport. [ sniffs ] i have a cold. [ sniffs ] i took dayquil but my nose is still runny. [ male announcer ] truth is, dayquil doesn't treat that. really? [ male announcer ] alka-seltzer plus fights your worst cold symptoms, plus it relieves your runny nose. [ deep breath] awesome. [ male announcer ] yes, it is. that's the cold truth!

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megyn: the republican presidential candidates spreading across south carolina today. south carolina cementing its reputation for bare knuckle politics in the state's 2000 primary between then texas governor george w. bush and arizona senator john mccain. >> let me tell what you happened. there was an ad run against me. we ran a counter ad in new hampshire governor bush took the ad down and i was beat up very badly by all of his surrogates.

called a hypocrite. here in south carolina. you have seen it. turn on the radio. turn on the television. pick up the telephone and you will hear a negative attack against john mccain. you should be ashamed. >> let me say one thing about all this business. >> i pulled them owl down. >> you didn't pull this one down. this an attack piece. >> that is not by my campaign. >> it says paid for by john mccain. megyn: joining me now is arizona senator john mccain. >> a trip down memory lane, thank you for that. campaigns are tough. you know that. and to somehow go back -- in 2008 could you find clips also between me and mitt romney where look you expect it. it is not a contact sport.

it's a collision sport. >> it got so ugly back in 2000, you said he attacked me soy went negative in response. so i'm done with that now. i don't like the effect's having on kids. i'm going to go positive and it may cost me. do you think you have got to go negative? >> the kind of attack campaigns that work, the question is whether they are legitimate or not. i think you could attack governor romney on certain issues, social issues or changes and all that. but attacking him on bain capital which created thousands of jobs i don't think is going to work. so i think you have to have a fundamental basis. megyn: it's happening right now. newt gingrich's pac is coming out with this long movie, 30 minutes answer mitt romney describing him as a corporate predator. >> funded by a casino owner.

funded by a guy who runs casinos. i'm not making it up. megyn: do you think it will backfire? this is going into a state that's struggling with unemployment. it talks about him going in there. real people saying they don't like mitt romney. and bain capital bankrupted their company. does that work? >> i don't think it does. people have gotten to know mitt romney. you can't take anything for granted obviously in these campaigns. and i'm sure there will be responses to it. but i think that mitt romney has a basis of support in south carolina that i think will carry him on. and in all due respect to newt gingrich and especially, this is a desperate act. these are desperate times for the gingrich campaign. and it is what it is. megyn: you have endorsed mitt romney so you are for him in this race. you came out this morning and

suggested there is an alternative to the way bain does business and it's called communism where everybody gets a fair share. >> every industry, no matter how bad it is -- unfortunately it doesn't work. nobody feels worse than someone who is involved tonight when you have to lay people off. but the fact is that there are so many times when you have to improve, you have to cut back, you have to do things. well, let's have another example. remember when general motors was bailed out and they had to close dealerships all over america. they had to lay off workers. now general motors is coming back and hiring more people. they had to go through tough times. that's what -- that's how capitalism works in the world. megyn: when you were running against mitt romney. you made an issue of bain as well and pointed out he preside

over this company that laid off thousands of workers. some of your surrogates went father than you did. >> that's why you have surrogates. megyn: is it legit? >> it's legit to examine what anybody's past record is. but you will find mitt romney's record is pro business, pro growth and obviously one of the reasons why our economy continues to stumble along is because there is no real vision for the future of our economy articulated by the president of the united states. that unfortunately will be the issue in this campaign. i hope national security will come into it sometime because i think we are failing all over the world. >> you mentioned desperation. that appears to be the counter punch the romney camp is about to run. gingrich -- his campaign -- nose affiliated with him have come out with an ad attacking mitt

romney over how he traveled with his dog. he said he put him in an airtight container. >> i remember the story. megyn: is that desperate? >> is there any sign of desperation than talking about something that happened how many years ago when his some was very small. chris wallace was asking about it. he discuss asking mitt romney why he would do it to his dog. he said the dog loved it. has the race gone to the dog? >> the race has gone too long when you are arguing about something that happened with romney's dog several years ago. i think the voters of south carolina are more interested -- 9.3% unemployment. i believe mitt romney has the right message at the right time. megyn: he's ahead in south carolina right now. about it many famously more conservative than new hampshire

and there is a theory that he might do well because the conservative vote is split among so many candidates. i want to ask you about this. mike huckabee who had won iowa back in '08, lost in new hampshire. then you went down to south carolina for the big battle. he says he thinks you convinced fred thompson to stay in the race and you won south carolina that way. >> mr. huckabee hung in for a long period of time. wouldn't accept defeat. but that's totally false. for him to say something like that maybe makes him feel better, but it's not the truth. the fact is it is not necessarily so that he took all of huckabee's votes. all i can say to governor huckabee, good truck in your programming on fox in not telling the truth. megyn: do you want to give me a

prediction for south carolina? >> i think he wins. romney wins. and i think he has a lot of wind at his back. he has already had an historic wind win. i think his credentials on the economy are very important. south carolina is a very patriotic state. a lot of service members, a lot of military bases. i think those people will gravitate towards his campaign as well. megyn: is it painful watching and not being in it. >> no, not at all. i enjoyed going back to new hampshire and south carolina. megyn: the pressure is off. >> it's good seeing old friend. it's being called a tour of tyrants as iran's president visits venezuela. what's on the agenda for jid *

and hugo chavez. a judge blocking the get out of jail free cards given by hally barbour. that's good morning, veggie style. hmmm. for half the calories plus veggie nutrition. could've had a v8.

megyn: new tension between the u.s. and iran -- there is new evening went u.s. and iran. easy for me to say. but the president of iran is actually in south america right now. mahmoud ahmadinejad meeting with hugo chavez.

steve harrigan is live from the miami bureau with more. >> reporter: the u.s. state department is calling this an act of desperation. the tour of tyrants as it's called by one congresswoman began with a visit to hugo chavez. he has gone to cuba, this morning he land in ecuador. they repeated the same mantra. that iran has no ambitions for nuclear weapons. the key alliance here which concerns u.s. policy makers is iran and venezuela. venezuela of course a major oil supplier to the u.s. and that relationship has gotten extremely close not just commercially, but militarily as well. the real question is how far chavez will go to support his quote iranian brother.

they joked with denying rumors that they would unite in an attack against the united states. >> we are going to take aim at washington with some big cannons and missiles are going to pop out and we are going to attack washington is almost what they are saying. >> reporter: chavez also made jokes about the two nations building an an atomic bomb together. he said that hill will up on and a bomb will come out. because of reckless statement like this people tend to dismiss chavez. but there are suspicions iran is starting to mine some of venezuela's rich uranium deposits. megyn: outgoing governor haley barbour pardoning 200 criminals. did those pardons violate the state constitution? >> the governor himself should

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megyn: a cleanup in north carolina after a severe storm, and possibly tornadoes ripped through the state. mortgage rates hit a record low. the 30-year fixed mortgage

dropping to 3.8%. a new search in the hunt for ayla reynolds as divers search for any sign of the toddler. she has been missing for three weeks now. early edition of "kelly's court," on the docket today, violent felons set free by a political superstar in the south. mississippi's outgoing governor haley barbour pardoning 200 criminals in his final official move, including kirls and rapists. >> we have our law enforcement officers out watching the ones that we think are a danger that have been released. i think they will be fine. just be careful. megyn: at least five inmates have been released from prison. but a judge just blocked the rest of them saying their pardons may have violated the state constitution because the inmates did not provide

mandatory public notice that they were attempting to have their records cleared. but the victims say that's not enough. >> i call on government bryant to do what it takes to get some of this stuff changes where nobody else has to get through this. megyn: did the governor make the right move? joining me now form prosecutor and cohost of "the five," kimberly guilfoyle, and mark eiglarsh. these victims are outraged. the governor said 90% of these folks were out of prison and i cleared their names by giving them a pardon. what's the big deal? >> this is an extraordinariness carriage of justice. david gatlin walked up to his estranged wife as she lept holding their young baby and shot her in the head. killed her and then turned the gun on her friend and shot him in an attempt to kill him.

fortunately he survived. he and the family members are petrified because this guy david gat therein vowed he would finish -- david gatlin vowed he would finish what he started. megyn: the five people who have been released thus far, they all worked through their prison responsibilities at governor's mansion. the first five to get let out worked at governor's mansion. coincidence? >> to become a trustee you earn special privileges by showing -- demonstrating during the course of your incarceration that you are to be trusted and you can be assigned a detail like that. that's why those pen were select. this is in no way to diminish the horrific nature of the crime. they have a proven record of rehabilitation and the fact they can be in a position like that. the government felt he had a lot of time with these individual

and he felt comfortable with giving them the pardon. the moral issuer is separate from the legal issue, whether the publication, 30-day notice to the public to say these men are attempting to clear their record. if they did that then he's well within his legal rights to issue these particular pardons. megyn: the reason they require the inmates have to do this, that they are trying to get a pardon, mark, is they want people to come in and object. one of the governor's defends is the parole board recommended these pardons. can the parole board do that when only one side has been heard? >> they nailed this instance. let's go back to the gilbert case. december 27 he came up before the parole board. in a letter dated january 24 of this year the parole board said we are not going to give him parole. the family was told the next time we be appearing before the parole board was october of

2012. the system failed the family and continues to do so. megyn: if they find that the notice was insufficient, in particular on this guy we are talking about now, tammy gatlin's killer. what can be done? can the pardon be erased? >> that the problem. they will have to do a hearing. that's why it's so important the judge issued this now. there is a question of fact before the judge as to whether the remaining 21 that are still being blocked and held back regarding the 30-day notice, and there is an additional victim's notice of 48 hours they are supposed to come forward and make a case. with this guy, good luck, where is he now? megyn: he objected. you have got the turn general arguing with the governor. what do you think is going on

here, why would haley barbour do this? he was known as tough on crime during his time in office. he only granted five pardons and now he's about to leave office and grants 200, which is out of the norm when you look at at past governors of the state. what's going on. >> if i said what i really felt i would probably get sued. brett favre's brother got pardoned even though he got drunk and drove in front of a train and killed his passenger. megyn: that's manslaughter. >> we are talking about pardoning. he could have commuted the sentences. you have done enough time. you cleaned the mansion real nice. your brother is a good friend of mine. but he pardoned as if to say i never did this. i didn't do anything. to me that stinks. morally, legally. megyn: is that true? you are no longer a convicted felon once you get pardoned.

>> yes. megyn: you don't have to put down that you are a convicted felon on your employment application? >> you can tieskt your record. you can get it expunged. it's as if you have never been arrested. >> 90% of the cases were already -- they did their time, they served it. so what he said is they should be able to seek meaningful employment without it on their record. they should be able to get a gun license to hunt and should be able to vote. that's the legal effect of giving them that sentence. megyn: just so we are on the same page. this guy david gatlin who murdered tammy gatlin when she was holding a 6-week-old baby in her sleep. this guy will be able to get a gun as if he never got convicted of murder in the first place? is that the case, mark? >> yes. >> and vote. >> period, end of story, yes.

megyn: you are doing a good jock of defending this guy. but does that shock everyone here? >> this case does offend me as a victim's right advocate. but i'm telling you what he did is permissible. so it was a good idea for someone held in such high regard, a potential presidential candidate who is known as a law and order guy who gave how many, zero pardons or clemency to death row inmates. this is a little bit puzzling but perhaps he's a human being like the rest us and felt a personal connection to those people living and working with him in his home. it doesn't justify it. megyn: i understand. kimberly is saying and i think mark will agree, if the notice procedures are correct he's on solid ground, but it doesn't

answer the question whether it's right morally or whether it will come back to haunt him politically. >> i think the legislators need to change the law. you cannot give a governor unbridled discretion to let murderers out when jurors are voting for life as opposed to capital punishment because they think these people will stay in prison for the rest of their lives. megyn: the governor issued a statement. we'll post it on our web site if you care to read it. coming up, mitt romney says the coming election is a choice between two americas. he says you can choose what he calls the president's european style-entitlement society or you can choose an america that's a free and prosperous land of opportunity. that debate 3 minutes away. >> this election is a choice between two very different destinies. president obama wants to fundamentally transform america. we want to restore america to the founding principles that

made this country great. he wants to turn america into a european style social welfare state. we want to make sure we remain a free and prosperous land of opportunity.

megyn: all eyes may be on south carolina's primary, but the presumptive front runner already look ahead to the general election. for mitt romney that race comes down to what he calls two visions for america. his and president obama's. during his victory speech tuesday night in new hampshire he laid out how he sees the choice for voters. >> this election is a choice between two very different defendant any. president obama wants to fundamentally transform america, we want to restore this america to the principles had meat it great. he wants to turn it into a

european-style welfare state. this president takes his inspiration from the capitals of europe. we look to the cities and towns of america for our inspiration. this president puts his faith in government, we put our faith if people. megyn: jehmu greene and tucker carlson. thank you for being here. it seems this mitt romney has found a theme he wants to keep pounding on going into south carolina and should he become the nominee. effective? and is it new. >> it's not new. i think it could be effective. it's certainly true. i can't speak to romney's vision. but he describes the president's vision. i don't know why the obama people would disagree that they are trying to turn america into some replica of the european welfare state.

a lot of liberals don't have a problem with that. you can't look at obama and say he's for free enterprise. it's not necessarily an attack, it's merely a description that i think is accurate. megyn: how does obama respond to this. the president's campaign going after romney but not the president directly. does he respond? does he say i don't want a european entitlement society? dose ignore it and let the attacks go unanswered? >> i think he will respond by continuing to put forward this vision of america, and he's done that effectively yesterday with his jobs event focusing on in-sourcing of jobs. i think it was a nice contrast to a lot of the messaging we saw around new hampshire, and bain outsourcing and those issues

that reflect poorly on governor romney. this isn't a new argument. this is an argument governor romney is trying to tap into that tirk and many conservatives talking heads are been promoting effectively for some time now. but as we get deeper into this election, and if it is going to be governor romney up against president obama, i do think those two americas are going to be very distinct. and president obama has a lot of room to talk about how he -- this plan is to hold wall street accountable. to give americans their fair share. megyn: it seems to be the answer to president obama's talk about income inequality. the response is you want socialism. will that work? >> i'm not sure it's a complete answer to the questions raised about romney's conduct at bain.

i'm not sure it needs to be. this is an election about the last four years, about the incumbent and his record. we have seen a massive transfer of wealth from the private sector to the public sector. when the president talks about jobs he's talking primarily about subject sector jobs. but a shanking number of people are -- shrinking number of people are paying for everybody else. he's on the side who takes from the smaller group. romney is left with the other half. but i don't think this is an argument or rhetorical case it's mathematical reality. >> how is it a mathematical reality if you look at governor romney's 59-point economic plan, the tax policy center came out with a detailed analysis that shows if you make under $100,000 and you have children, your taxes would increase under

romney's plan. 55% of people making under $50,000, their taxes would increase. where is the benefit in this plan? it goes to the richest 1%. when you break down their policies it will be very clear on one hand governor romney is playing to protect the rich wsht wealthiest, the folks on wall street and president obama laid out a plan where we can both keep entitlements and give a fair share to the people. >> that's a joke, fix entitlements? we have seen the program. we have seen obama-care. does that fix entitlements? that's not even worthy as a talking point. everybody ought to pay something. if you pay nothing into the system, are you really a full-fledged citizen? obama is making the case that

people shouldn't have to pay anything in. and a lot of republicans seem to agree with him. but there are some who insist that everybody has an obligation to pay something in. that's what the debate is about. leaving aside this campaign. >> a $6 trillion for romney temperatures wall street counterparts. they understand that's what his plan boils down to. megyn: thank you both so much. wondering what the next must-have high-tech gadget may be? adam housley may know. >> reporter: we are rolling the told school boombox here. this is my iphone. this is from i home. it's one of the cool gadgets you will find here. from the old school to the new school we have the samsung it many called the note. it's part tablet, part cell phone coming out soon from samsung. you can see all this stuff coming up here from the consumer

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>> it's a gadget lover's dream as the consumer technology trade show is underway in vegas. adam housley got the lucky assignment. he joins us live. >> reporter: it's our 7th year in a row. it's all about affordability. we'll start with the head phones. you can get good-sounding headphones for $39. there are a bunch of different companies out there. also sonos. it was $1,000 at the time. now it's $299.

this arcos. it connects wirelessly to your alarm clock. this is from zector. you can automate your home and not break the bank. >> one of the technologies become more afeernld is home automation. a couple years ago these systems were $5,000, $,000. you can control this from your ipad, your android, from your kindle. even wirelessly with the control in your house you can change the temperature upstairs, downstairs. you can go to a pad on the wall, the same one would you use on your ipad or kindle to control the lighting. say you want to turn the lights off in the room, you push a button the lights go down. this is $300. you push a button.

it goes right up. the batteries last for a few years. this shade can be upgraded to connect to the control 4 system. you can be away from home and put the shades up so when you get home your house is ready. everybody has tablets. but a few years ago they were up and coming. the ice cream sandwich is the new operating system for android it's 4.0. you can see the different sizes. this is for the non-apple users, that's the next big thing. koby and others have it as well. megyn: i can have fun with that on-off thing with my husband. it's 3:00 in the morning. honey? >> reporter: jay was going to roll this down the street and play the thompson twins.

megyn: see you right after this break. so, this is delicious

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