two months of his wife's death. the point was to show contrary to earlier testimony adam and lena had a troubled marriage. the trial resumes monday with closing arguments from both sides. megyn: thank you. jon: thank you for joining us today. >> nerc live starts right now -- america live starts right now. >> new report shows a growing jobs crisis in this country and that could spell new trouble for president obama's re-election hopes. welcome to "america live", everyone. i'm megyn kelly. may's unemployment report shows payrolls rose 69,000 jobs last month. that is less than half what was expected. once more the may une employment rate unexpectedly went up to 8.2%. up i say. that is the first increase in the monthly rate in nearly a year. when you combine unemployment and underemployment, folks who want to be working more than they are the numbers are even worse. 14.8% total unemployment

calculated that way. the underemployed again include a lot of folks who are not normally counted when they do these figures, including those who have stopped looking for work and those who have been forced to work part tile, taking a job at starbucks, et cetera while looking for a job in their chosen profession. we're waiting to see if president obama will comment on the numbers. he is in golden valley, minnesota right now, touring a honeywell facility. earlier today the white house tried to put a positive spin on the numbers, noting the economy added private sector jobs for 20 straight months. matt mccall, penn financial group joins us now with some perspective on this. matt, we added 69,000 jobs in may but they actually revised numbers that they gave us for april and for march. we were told in april we added 115. now it is down to 77,000 for april. and so the numbers are going in the wrong direction not

just for may but for the preceding two months. put it in perspective. >> well the 69,000 is a bad number. obviously the stock market sold off immediately after that was released before the bell open. but looking back, megyn, revised down from 115 to 77,000, that is a major revision on the downside. we've seen now a trend for the last few months job creation continually going down. we've seen revisions almost every month, looking back, taking numbers down even further. i have to tell you, it is extremely troubling. we talked about this last month. i wasn't happy with 115. now with only 69,000 jobs created it kind of blows my mind. look at another number shoots out at me too, you now have 5.4 million people out of work at least six months. that jumped up from 5.1 million just last month. these are people basically getting close to giving up on work. this is extremely troubling. eventually unemployment benefits are going to run out. then what happens? we see welfare increase.

to me i see nothing good coming out of this number this morning. >> 69,000 jobs added what they tell us right now for the month of may. with a downward revision of the numbers we've seen for the past two months one has to worry the may numbers could be further revised in a month or two and the numbers are going in the wrong direction. matt, what does this mean? i mean, what, why in january, if we have the chart, i don't know if we have the graphic, but in january they added 275,000 jobs. fenn, 259,000. then it started to go down in march, april and now may. why? >> well there will is a couple reasons out there. i think the obama administration will come out and say, listen we created a lot of jobs at beginning of the year because the weather was warmer than expected throughout the country so we cannibalized some of the jobs created through april and may. i don't buy that to be honest with you, if that was the situation means the economy is getting better, we should see job creation at least 100,000 at a very minimum. i truly believe the fact a lot of people out there, small businesses and large

corporations look to the future when they hire. you hire based on the fact that if you have increased, increased demand for your products or services you must hire people to supply the products and services. we do not see increased demand. we see economy talling. we see gdp getting worse. manufacturing numbers are getting worse. with everything else backing up the fact the economy is slowing dramatically why would any corporation or small business go out on a him and bring in new employees right now? now the stock market, the dow jones industrial average erased all of the gains for the year on today's drop. that now has effect on people to sit on cash even more. that means less demand for goods and services which tells me this trend is not going to end anytime soon. megyn: all this, plus we had sluggish growth report for the first quarter of 2012 that came out earlier this week. if you were advising president obama, matt, he says to you i got to get this turned around, i know you would say you have to loosen up regulations on companies, so on, so forth, keep taxes low permanently. that is how you feel but

we're talking about, you know, early june now and politically this needs to turn around for the president within the next few months. is there anything he can do that we should expect him to do short term to turn these numbers in the right direction? >> i think it will be extremely difficult for him to turn this around, again, when you hire you're not hiring on short-term. you're not bringing on 10 new employees because you have demand pick up for two months because the government put some type of stimulus into the economy. only thing he can do, i've been saying this for months, megyn, instill confidence back into the american consumer, the american voter, taxpayer, whatever you want to call them. if you have that confidence come back you are now going to spend money. keep in mind corporations in the u.s. have more cash on hand than they ever had. if things aren't that bad, the problem if you're not going to spend that money because of the unknowns, because of the taxes coming up, end of the year, "taxmageddon", there are so many things out there he can reinstill confidence that things are okay, i don't

think he will take that direction. i think he will take the direction of once again the blame game. blaming that he took on this bad economy, blaming europe. and i think, if he says that i'm going to laugh and fall out of my chair. megyn: the white house already put out a statement saying the problems in this job market were long in the making. will not be solved overnight. much more work remains to be done to repair the damage caused by the financial crisis that began at end of 2007. and then, you know it went on from there. >> megyn how long can you keep writing that? 2007, five years ago we had five million less fewer jobs than five years ago. the trend is not going in the right direction. most recessions we come out of we're creating much more jobs right now. it is nothing we've seen in the past. this is really troubling. megyn: you say that the president needs to encourage more confidence, maybe at his remarks shortly we'll hear, you're good enough, you're smart enough and you should spend more. matt, thank you. >> thanks. megyn: we're going to take a look at that chart one more time because it has to worry

the economists and the white house frankly, these monthly job gains, have steadily gone down every month this year. look at latest precipitous fall. we add 275 in january, jobs and here we're at 69,000 in may before there is revision to the number. it is somewhat alarming they keep downward revising numbers after they give them to us, a month or some for the last two years we heard president obama repeatedly promise that we are turning the corner on jobs. here's a sample. >> today is an encouraging day. we learned that the economy actually produced a substantial number of jobs instead of losing a substantial number of jobs. [applause] we are beginning to turn the corner. the economy added 1.3 million jobs last year. and each quarter was stronger than the previous

quarter, which means that the pace of hiring is beginning to pick up. we're also seeing more optimistic economic forecasts for the year ahead, in part due to the package of tax cuts i signed last month. we've created over four million jobs in the last 26 months. more than one million of those in the last six months alone. [applause] megyn: again, when the president remarks on jobs in a few minutes we'll bring you that news and next hour, our panel will debate what all of this means for the presidential election. it could change the internet as we know it. a proposed u.n. takeover of the worldwide web with ideas for its management coming from countries like china, russia and iran. oh joy. trace gallagher, live from our los angeles newsroom. that's what i want. i want ahmadinejad telling

me what i can search for on the webb report report is that what you want, megyn? countries are pushing hard for international guidelines to control the net, those are countries that often don't allow their own people to freely search the web. they want to push that on the rest of us. they base the whole power play, international agreement set up in the u.n. 25 years ago to regulate international telephone service, ma bell, the baby bells and so forth, international rates. that was when mark zuckerberg was like four years old. they want to use that agreement to control and tax international content, which means somebody in india uses google or microsoft and netflix and those companies would then be taxed on a per click basis. all that money would be gathered up and used to build a broadband system around the globe. the fcc, lawmakers on both side of the aisle in this country oppose that. listen. >> now does anyone here today believe that these countries proposals would

encourage the continued proliferation of an open and freedom-enhancing internet? or would such constructs make it easier for "thor" tearian regimes to identify and silence political dissidents? >> reporter: the problem is there are some 193 countries voting at this u.n. conference gathering which is in december in dubai on this international regulation. unless the u.s. and its allies can block this all together, there is very good chance the internet could be changing a bit. megyn. megyn: unbelievable. trace, thank you. >> reporter: okay. megyn: the justice department challenging one state's efforts to purge 40,000 names from the voter rolls. why this fight could have a big impact on the 2012 presidential race. plus -- >> you can't handle the truth my friends. that is the problem. you can handle the truth, you quiet down. megyn: it was definitely a rip-off of jack nicholson,

but said at an event with one of president obama's top campaign strategists and a lot of anti-president obama folks. hecklers drowning out david axelrod's message. we will debate whether this incident could be a sign of a bigger issue. two girls believed to have been murdered by their own father in a so-called honor killing, now, after years on the lamb, a private investigator believes that the father beliefed to have pulled the trigger, may be hiding in plain sight in a major american city. we will speak to that pi about the family feud that turned fatal. >> in our cab stand there are two people inside the cab. one of the people in the cab looks like she is hunched over. there is blood coming from her ear. she doesn't look like she is breathing ng the perfect swing begins with back pain and a choice.

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megyn: new information today on a lunch room controversy you heard about right here. the north carolina state senate unanimously approving legislation yesterday that says child care workers can not give food to children who came to school with a bag lunch packed by their parents. it all started with a teacher who decided she would replace her student's bagged lunch with cafeteria yaw meerls she believed to be healthier. turned out the cafeteria yaw food she was giving children included chicken nuggets as opposed to a turkey sandwich. so she decided what was healthy and now the state legislature has decided no, she was wrong. >> we have a big story developing today in a state that could tip the presidential election. eric holder's justice department demanding that florida halt its push to remove thousands of allegedly ineligible voters

from the voter rolls. all this just months before the presidential election. and in a state where the bush v. gore fight in the 2000 election wound up being decided by a margin of just 537 votes. david rifkin is a constitutional law attorney and former white house counsel under presidents reagan and george h.w. bush. david, thank you very much for being here. florida decided it would clean up the voter rolls. try to get dead people off and noncitizens off in advance of the big election. eric holder's justice department writes florida and says, knock it off. you're in violation potentially voting rights act which says you can't do voter roll maintenance 90 days before the general election. their primary is august 14th. he is saying they're violating federal law. does he have a point? >> he doesn't have much of a point, megyn, florida has been asking for close to ten months. the department of homeland

security maintains a database on individuals, not a complete database but a fairly detailed database on individuals in this country illegally because they overstayed their status. what we have here is part and parcel of broader efforts by this administration that is desperate to win re-election, in part because of bad economic news we were talking about earlier, that is trying to engage in very crass political games in a number of states, in arizona, in texas and florida, pushing across a range of issues. voter i.d., purging voter rolls, redistricting, whatever you call it. and what is appalling to me that it is being driven by the attorney general. look, we have not had such politicization of a attorney general which is chief law enforcement officer in the country since days of nixon. attorney general mitchell was head of committee to elect the president. megyn: his justice department, says it is state of florida, the republican governor down there that is

poe lit sighsing this -- election. you're kicking alleged noncitizens offer the voter rolls. you demand they provide proof of citizenship because you ran records and didn't check out. they say a, you're targeting real citizens which is hassle and overwhelmingly targeting hispanic voters, 58% of those flagged as potential noncitizens are hispanics and that could be a problem. >> megyn, can we all agree, to me unacceptable proposition just as deplorable to prevent somebody from voting who has a right to vote, allowing people to vote fraudulently don't have the right to vote devalues franchise of those, citizenship of those who vote. there is nothing wrong with florida, and other states have been trying for a long time to deal with this issue. what we're talking about is giving individuals an opportunity to prove that they're elgible to vote. and look, this is the same administration that simultaneously preventing

the department of homeland security to provide data to the state of florida and other states that would be more definitive resolving who is in this country legally and at the same time, preventing them from going forward. no, this is, this is a very crass political play that they will lose in court but hoping basically to get beyond november. again, you put it in broad context. this is the same attorney general that spends time going to a number of black pastors and giving them speeches in fact amount to electioneering, telling them supposedly this is what you can say to your parishioners, there is effort to disenfranchise you. think about how close to the elections this is and what his mayesage is and his selection activity? megyn: is that unusual though? when you look at past attorney generals, alberto gonzales, john ashcroft, they don't necessarily seem like moderate, you know, middle of the road, nonpartisan guys. they're, the nation's chief

law enforcement officer but we should be surprised? is eric holder any further left than john ashcroft was right and one more guilty of being political or inappropriately political than the other? >> megyn, this is an excellent question but let facts speak for themselves. my point is this, not since the days of john mitchell have we had an attorney general that involved in clearly political activities this close to elections. i'm not talking about the idealogical composition, how right or left they are. the two attorney generals you mentioned, everybody else i can think about, again, going back to the post-nixon times, has ever been involved in something like this. the media would be in an uproar if republican attorney general done half of that. can you imagine, for example, a republican attorney general selecting a group of friendly pastors, not all pastors, not all preachers, people of faith but friendly pastors and sat down with them several months before the elections in effect to

give them a speech that is 100% identical to the campaign message of his boss? that would have been "new york times" would have been screaming for his impeachment. megyn: the department of justice doesn't see its behavior in florida as political. i thinks that the governor there has gotten political and they are righting that wrong. time will tell how this plays out. david rifkin, a pleasure sir. thank you so much. >> great to be with you. megyn: a devastating new twist in the case of a missing young girl. what could be a key piece of evidence in ayla reynolds disappearance found in her own father's home. why investigators still have not made an arrest although now they believe this child has died. tribute to america's fallen heroes at risk of fading away. hear a world war ii veteran's emotional reaction that he can no longer maintain a cross he built in tribute for his brothers in arms. >> for over 31 years i've been climbing the mountain

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megyn: major developments today in the case of a missing toddler in maine. police now say it is quote, highly unlikely that little ayla reynolds will be found alive. she was just 20 months old when she vanished it seems from her father's home just before christmas. jamie colby, live in our new york city newsroom with the disturbing update today. >> reporter: it is, megyn, not what the family really wanted to hear. ayla reynolds you recall vanished from her father he is home right before christmas. police haven't named a suspect or a motive in the case. they do believe foul play was involved. now news they no longer believe the toddler is alive. >> the searches, the dives and the evidence gathered at

this point, we think it is highly unlikely that ayla reynolds will be found alive. nothing points in that direction. >> reporter: well, cops say ayla's father refuses to cooperate even though he, his girlfriend and another friend were all home at the time that he claims ayla disappeared. police have been searching for the toddler more than five months. they renewed their plea in the press conference to the public to report any additional leads about her disappearance. her mother's family, the rohn nolted -- reynolds who have been fully cooperating with authorities say they are devastated about this development belief justin knows what happens. >> face me like a man, justin, tell me where my granddaughter is. you want to see someone pissed off now, look at me, justin. >> the news i wouldn't want any parent to find out. i think like my worst

nightmare has really come true. what hurts the most i don't even know where she is at. >> reporter: neither do police. the $30,000 reward only remains until june 0th. she was last seen with a cast on her broken left arm, wearing polka dot pajamas with the words, daddy's princess on them. if anybody has information, megyn, authorities hope they will call 911. megyn: thank you very much. i want to tell our viewers we'll be discussing the case in today's "kelly's court". there was her blood found in her father's home. she believe she is dead and he was last one seen with her. the cops are openly saying they believe the father is knows more than he is saying. why is there no arrest in this case? what more can or should be done. we'll talk about it with our "kelly's court" panel just about an hour. there is new questions about an ugly confrontation on the campaign trail. did you see this. >> you can't handle the truth, my friends.

you quiet down. >> president's re-election team is now complaining after getting heckled by romney supporters. in three minutes what this could mean for the campaign trail ahead. plus a possible break in the case of a man accused of murdering his two young teenage daughters in a so-called, honor killing. this is such a distishing case. he took them in the backs of his cab, according to the 911 calls and authorities and he killed them. they called 911 as they were dying and thin the father went on the lamb. it happened in texas but now we'll speak to a private investigator who has been tracking the case and beliefs the man is hiding in a major u.s. city in plain sight. stay tuned. >> oh, my god. >> stop it. stop it. >> after that call, we sent units to the area and saturated the area we thought the call was coming from. >> ma'am, are you still there? ma'am, are you still

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megyn: president obama is responding to what may become a major source of trouble for his reelection campaign at least for today. the unemployment ticking up for the first time in nearly a year. american employers only creating 69,000 jobs in may. and look at this chart. you can see in january we had

275,000 jobs added and it slowed down every no since then. here is president obama moment ago touring a fortune 100 company and touting his jobs initiative. >> today we are still fighting our way back from the worst economic crisis since the great depression. the economy is growing again but it's not growing as fast as we want it to grow. our businesses created almost 4.3 million new jobs over the past 27 months, but we are not creating as fast as we want. just like this time last year, our economy is still facing some serious head winds. megyn: coming up in our next hour, a detailed look at how the jobs crisis that appears to be growing to impact an election just five months away.

the obama campaign waging political war on governor mitt romney's home tougher and his team apparently fighting back. yesterday's event on the massachusetts statehouse hosted by david axlerod did not go exactly as planned. instead axlerod, one of the president's top campaign guys was drowned out byrum any supporters and democrats are not too happy about it. take a look. >> we are here today because governor romney's singular claim to the presidency is that his experience in business em burkes ed him with the ability to grow

jobs and reduce debt. megyn: it went on from there. dan gerstein and lars larson both join me now. you have got obama campaign calling this juvenile and you have got governor romney himself coming out and saying, something about sauce for the goose and the gander. >> i noticed we have gone to a number of events and you have been with us as well. most of the events i go to or many of the events i go to there are large groups of obama supporters there heckling me. at some point you say what's sauce for the goose is sauce for the gander. if they are going to be heckling us we are not going to sit back

and play by different rules. if the president will have people coming to my rallies and heckling, we'll show that we conservatives have the same capacity he does. megyn: good news? >> i never defended the thought of drowning out speakers. but this has been a tactic of the left forever. i'm not defending the actions of those people who drowned out david axlerod. i would like to hear his spin on the summer of recovery 3. but i don't defend drowning out a speaker. but they have to understand if they are going to ask the republicans and conservatives to rein in the palpable anger americans are feeling then they should rein in their supporters as well. megyn: axlerod staged this as a kickoff for the campaign's new

assault on his record as governor it was in massachusetts. that's why they were going to mitt romney's home turf to go after him. what do you make of the romney camp's response? >> the whole thing is pathetic. i'm glad the hear what lars said, i couldn't agree more. you want to know why people hate politics? this event encapsulate it. the country is desperate for joanup leadership. what do they get here? they get a rumble between the hacks and the flacks. what is he doing being a spokesman for the obama campaign? he doesn't have the credibility. it's crazy this is what it devolved to. then you have a bunch of folks coming in who should be having serious debates and shouting them down. we have gone from juvenile to infantile. megyn: there is a question about

whether these folks drowning him out would have felt as comfortable doing that to the candidate himself. the president of the united states. is there a risk in sending out your top political guy to the candidates? >> there is. i don't get this at all. either side. neither side -- >> it would be nice to see both sides grow up and demands some real answers. but frankly, megyn, i understand why people are this angry. we have seen anger all around the world about economic conditions. what we have now is a president who has never held a real job in his life, who has no record of success as president and he's trying to attack a man who has created tens of thousands of jobs. the folks who support romney and say he would make a better president believe this guy has a track record of creating jobs and saving broken companies. in some cases they couldn't be saved. the president has no record of

this but his spin meisters like axlerod say we are growing jobs. we aren't. we have net fewer jobs than we did four years ago. women have lost 3/4 million of the jobs that have been lost. megyn: there is some argument that this makes governor romney look bad. some suggest he sent these people there. i couldn't tell if that was the case or whether he supported what they did. the criticism is it makes him look bad to have done that at all. but at end of the day one tell me. you had supporters of mitt romney there shouting at david axlerod, a guy who is clearly in charge of the president's reelection campaign. rather than saying these are folks on the other side, axlerod -- you heard the clip, you can't handle the truth, my friends, you can't handle it.

did he miss an opportunity to look like the classy guy in this situation? >> you can say that. but this is all meaningless and has no relevance to the american people and totally misses the point. people are angry. but they are not just angry at president obama. they are angry at the state of our economy that it many totally imbalanced. there is concentration of wealth. the middle class is suffering and the reality is neither side has a credible answer. not just how to stop the bleeding but to create long-term growth. both sides will engage in these trivial games, finger pointing, the reality is this is hard work. but they don't have the answers. if they don't have the answers all they can do is tear other guy down. megyn: the campaigns have put out a no bullying rule and they are trying to educate the public

on the damage this kind of heckling can do. for the past few years we have been tracking developments in a horrific family tragedy. two beautiful sisters murder and the chief suspect is their own father. up next what could be a major development in the effort to bring him to justice. he fled after it happened. the touching tribute to our fallen heroes is at risk of fading from view. the food police on a new mission to downsize your drinks. it's sparking a fierce debate with our focus group. >> some places banned transfats. school lunches are regulated. still we are getting father and father and it's because of the evil things in cups like this. i never thought to use aspirin for muscle pain.

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megyn: a possible break in a fatal family feud we reported on it's not a family feud it's an alleged honor killing. a private investigators hired by the family say the egyptian-born far it could be hiding in plain sight as a cabbie in new york city. trace gallagher has more. >> reporter: after allegedly killing his two daughters yaser said fled texas with his egyptian passport. but the lawyer believes he went to new york city and took up the on job he ever knew, which is

driving a taxi. he's among the fbi's 10 most wanted and new york cab drivers are supposed to undergo background checks. but even the taxi authority says he could rent a cab from somebody else or drive illegally. there are 10,000 illegal cabs in new york. three years asaid said was sharing a p.o. box with his brother who lives in west chester county north of new york city. gregg jarrett confronted that brother. >> reporter: may i speak to you on camera? do you know where your brother is? >> reporter: said's 17 and 18-year-old daughters fled their

home initially because they were afraid their father would kill them. they were with their mom when they died. the mom coached them back to texas. then their father took them to a remote area and shot them multiple times. remember this horrifying 911 call. >> what's going on, man. >> i'm dying. ma'am, are you still there? >> reporter: they are calling on the mother to be brought in for investigation. they believe the mother brought them from illinois to texas and put them in danger putting them in contact with their father who put them in that cab and drove

them away. megyn: the private investigator may have the break the cops are looking for. bill, you have been looking into this case and i think america wants to see this guy brought to justice. these two girls left to die. said to have been murdered by their own father. you heard them pleading for their lives. they knew they were dying. why do you believe he may be in the new york city area possibly posing as a cabbie? >> before the incident happened in january 2008 when the two girls were murdered. yasser and two other brothers set up various p.o. boxes across the country, texas and new york state. very strange they would do this 45 days before the murder of the two girls. i gave this information to the police during 2008, and followed up since. when i saw the video when gregg

jarrett went up to new york to confront the brother, that reaction was way over the top. he was acting like he was hiding somebody that day. who knows. yaser could have been in the house when that guy was there. this thing was coordinated between the four brothers. i believe they are hiding this man possibly in the jersey city area or queens which has large egyptian enclaves. it needs to be followed up on. megyn: i know you bleach yaser said couldn't get a job on his own. he would have needed somebody to help him. you base that on his handwriting on a police report which we'll show to the viewers. tell us how you connect those dots. >> that look like a crazy person wrote that.

yaser said was obviously emotionally distraught when he wrote this. it looks like a 4-year-old. all the words are spelled incorrectly. the crossout words, somebody like this with that kind of education couldn't possibly get a job anywhere else other than if he knew somebody in the metro area to get a job. all he know you how to do is drive a cab and that's it. megyn: do we know if this mother should be arrested or looked into by police? >> there is complicity. she brought those children back to him. megyn: what should the viewers be looking for? >> look at the pictures of yaser said. look at what he looks like. he probably didn't change his appearance that much. probably a little more balding. 6'2", 190 pounds.

megyn: thank you for all your good work on this. the fbi wants this man in custody. you might be able to help. we'll be back with an amazing story about a world war ii vet. don't go away. steam meal so tasty. actually, the milk from my farm makes it so creamy, right dad. dad can see... boys! don't you think stouffer's steam perfect bag should get some credit? my carrots. my milk. [ female announcer ] new from stouffer's. farmers' harvest steam meals taste so good we'll bet the farm on it. [ music plays, record skips ] hi, i'm new ensure clear. clear, huh? my nutritional standards are high. i'm not juice or fancy water, i'm different. i've got nine grams of protein. twist my lid. that's three times more than me! twenty-one vitamins and minerals and zero fat! hmmm. you'll bring a lot to the party.

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megyn: he has been honoring his fallen brothers in arms for decade. now a 94-year-old world war ii vet has to call it quits forced by a new property owner to let this world war ii landscape fade back into the hillside. >> reporter: arnold built this cross 50 years ago. >> this cross to me is a love

symbol. there is too much hate in the world. he can't talk about it without breaking down. he says he created the cross in 1981 as a tribute to those who died in world war ii, gathering 3,000 rocks. he would hike a half-hour to take care of it for three decades. >> maybe that's why i'm 94 years old. for over 30 years i have been climbing the hill and placing stones. the new owner says he's concerned about liability if something should happen to the man. >> it's a nice hillside and that

breaks up part of it. >> it's unique. >> reporter: he says in time vegetation will cover the cross and it will fade from view. megyn: our thanks to rob ross for that report. thing about that generation is they are not that sue happy. they are not the folks you generally need to worry about suing you if something happens. one questions the foundation for the liability concerns. the latest polls show a strong majority of americans do not like the healthcare overhaul. so why do we hear the president has big plans for a possible new healthcare push in his second term? it relates to what the supreme court might do and we have that story for you after the break. details in one man's heroic actions. we'll show you how one average guy may have saved many lives.

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megyn: fox news alert. reports of white house talk about a healthcare do over. if the supreme court shoots down all or part of president obama's healthcare law this month. brand-new hour of "america live." i'm megyn kelly. bloomberg media reporting president obama is concerned about the fate of his healthcare law and what his plans will be if it gets struck down in whole or in part. 51% of those asked say they favor repeal of the law all together. 3 tase% oppose. -- 38% oppose. chris, the report is that the president despite his public

professions of extreme confidence that the supreme court is going to uphold this law is behind the scenes make contingency plans to have another go at the healthcare law if he wins a second term. and that is a headline because many people believe that the supreme court struck this down, he would move on, given those polls and given the amount of political cap tale had to spend to get it passed in the first place. >> we are not surprised to hear him say sure this will be upheld. so that's a public utterance from a a politician. internally when he's talking to democratic donors and the group that bloomberg is talking about, the bloomberg news organization is talking about are well-heeled

wall streeters, big money democrat, he's saying if the supreme court takes this away i'm going to come back and push this through. the white house disputes. but this matches up with things other democrats have said. you can gather that the president would be serious about coming up with something if this goes down. megyn: how would he do that if the current makeup of the congress stays the same or basically the same? >> he would not, at least not successfully. the issue for the president and the most pressing issue for the president is if the electorate gets a sense that the president is serious about doing this and going back to this unpopular consistently unpopular measure, if he has to go back and talk about that between now and november, he's going to turn a lot of people off. they are not going to want to hear him talking about that, especially if what the supreme court has just done has said, no, you may not. if he said yes, i will, that

will be a big turnoff and it will be a big problem. megyn: what is the advantage to him? apparently he was at this $38,000 a plate dibber talking to private donors and it's reportedly to those donors he was saying don't worry, i'm on it. if the supreme court strikes it down we'll have surround two in my second term. what is the benefit to him doing that given the poll numbers out there. if anything opinion has solidified against this law. >> this is the motif of the president's reelection. when he talks about forward is his slogan for the second term and why we need to do this, a lot of it is promising different con city been is who were frustrated or disappointed with what the first term brought that in a second term he will have more flexibility to do things that he will be able to go forward and be a different kind of president. megyn: i have been talking to a

democratic donors. as fate would have it i met a lot of top democrats, wealthy guys who helps president obama get elected the first time around. the complaint i have heard from them is not so much they hate healthcare law. but that it was a distraction, and when he needed that capital to get things done he couldn't. are those times of people who would be at a dinner like this. $38,000 a plate. do they want to hear about wound two on healthcare? >> he may just be stubborn. i don't know. it's not just wealthy democrats who feel that way. moderate democrats and other people, spur suedable voters in the middle field, it was a distraction. the reason why healthcare is his biggest liability is because it would seem to be a distraction for a year and a half where people were concerned about the economy seeing numbers like the ones we were seeing now, that

the president was doing that. i doubt that the black stone crew would be interested in seeing the president do this. maybe he is stubborn, i don't know. but maybe it's part of a larger plan to say term two i'll be able to deliver. megyn: whatever the supreme court rules. the fight is not over. the right will continue to fight and talk about appeal if it gets upheld. but one of the interesting things out of the bloomberg report is that they are talking about a planning memo that was discussed with white house officials in attendance, though not authored by white house officials talking about how importance it is to project confidence and talking about how they will respond when the supreme court issues its ruling saying the best way to demonstrate public outrage or celebration about the decision is stage an event that shows average people responding to the news. so they give as you peek behind

the curtain on how these things work. whatever they rule, we'll see groups like the seiu and others doing something that part after coordinated effort to convince all of us how their side feels. >> you can count on that. take it to the bank. megyn: i will. it could happen as soon as next week. >> it will reset presidential race when it does. megyn: chris, thank you. house minority leader nancy pelosi is getting attention for making a bold prediction on the pending court ruralling on the healthcare law. she predicts the court will not tomorrow uphold the constitutionality of that law but they will do it by a vote of 6-3. listen. >> 6-3. 6-3. because i know the constitution. this bill is ironclad. nobody was frivolous with the

constitution and the health of the american people in writing the bill. so that's where my confidence springs from. the merits of the bill and the nature of the constitution. the makeup of the court, we'll see. megyn: 6-3. that's bold. you have got four conservatives, four liberals and one center right justice on the court. that's an interesting handicap. you can remember the constitutionality of this law brought into question after attorneys general from two dozen states challenged a key pro vision of it, that all americans must obtain halt insurance by 2014 or pay a fine. the landmark decision is expected this month. exciting. we are tracking a new twist in wisconsin's big recall election which is four days away. some big guns showed up in the

badger state. bill clinton campaigning with the democrat challenging government. the republican governor scott walker. and the unions want him recalled after he went after the unions to try to close the state's budget gap. now he's in a fight to keep his position an is slightly ahead in a very close race. that could -- the race itself could depend on who has the better ground game to get out the vote. mike tobin live in milwaukee, wisconsin, the resources being thrown at this race are pretty staggering. >> reporter: it's remarkable. you talk about the ground game. wisconsin is long past the point where anyone can be persuade. focus is getting people out to the polls. motivating the base. that's why the democrats pulled out one of their big guns, former president clinton. he painted up this recall election as a struggle went

little guys and uncompromising tyrants on the right who answer only to big money. >> ordinarily i'm against recall elections. i went to try to fight one in california. but sometimes it is the only way to avoid a disastrous course. >> reporter: the politicking is one-on-one. the conservative group americans for prosperity has been here going door to door speaking with the voters face to face. just about all of the voters are getting some kind of personal attention. there is a union backed group sending vans out into the poor areas. they pick voters up from their doors and drive them to the polling places. one woman says this is the first time she has cast a ballot. she was 54 years old. megyn: bad job numbers out we told you about. in three minutes we'll look at what might happen next with the

presidential election just five months away. new questions in the search for little ayla reynolds. as investigators say for the first time they believe this child is likely dead. and some family members believe and the police believe her father knows more than he's saying. >> come and face me like a man, justin, and tell me where my grand daughter is. you want to see someone pissed off now? look at me, justin. megyn: what is next in this case and why has there been no arrest? "kelly's court" takes a look just ahead. as the big apple bans the big gulp or looks to, new york is ought the only place where the food police may be going too far. we'll have a fierce debate with our focus panel just ahead. >> they are going to serve all our plates in restaurants -- >> if government ... joe comes in a paper cup at the drive-thru.

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>> today we are still fighting our way back from the worst economic crisis since the great depression. the economy is growing again but it's not growing as fast as we want it to grow. our businesses created 4.3 million new jobs the last 27 months. but as we learned in today's jobs report we are not creating them as fast as we want. just like this time last year, our economy is still face something serious head winds. megyn: that was president obama respond a half-hour ago to today's dissmall jobs reports. employers creating 69,000 jobs in may. that's significantly below where they believe the number would be which was projected to be low. but not this low. motley unemployment rate rising up to 8.2%.

then there is what some are calling the real unemployment rate. counting every one who is out of work plus those forced to work part time who would prefer to be working full time. that number is working up to 14.8% and said to include about 23 million americans. joining me to discuss the political implications of this. kirsten powers and ben ferguson. thank you very much for being here. these numbers -- regardless of your political stripes, isn't this depressing? when you hear the numbers. 23 million americans out of work. and what the white house said, they put it out on their blog. you heard president obama say, the economy added private sector jobs for a total of 4.3 million payroll jobs. we don't like this number. we need to do better, but we are

going in the right direction. >> look at this president. i think it was a few months ago they were saying we were in a robust recovery. joe biden said look how we saved things. they have been selling us, the economy was so bad but we were able to get us through the hurricane and the storm. we are seeing that the storm that we are in is there own storm and they are still trying to blame george bush for it. i think it average american voter isn't going to buy it. you are only going to claim you are good at driving the ship through the storm if it's a good storage in i don't buy it. megyn: if you look at job growth from january to now, whatever the spin is, that's in the wrong direction. look at the tide. >> most polls show voter do still blame george bush for this. but it doesn't matter because right now they are concerned

about the future. it is on obama's watch. his argument is i'm the guy who got us out of it and got us on the right track. he needs this number to be going down. he needs people to be getting jobs and feeling positive about the economy. i think that the timing of this is particularly bad for them because this is coming right on the heels of this debate over who can create jobs. the whole bain debate where obama was undermined by other democrats, like president clinton saying romney had a sterling business experience. i think it comes together and is not a great picture for the obama administration. megyn: president obama needs to rethink those surrogates going out there. you don't need clinton calling him sterling. it's the beginning of june. there are some things that the

president can to to turn these numbers around. they can go back to the money tree and start printing more money. there is a suggestion that might improve the numbers. how relevant is the month of june through the november election? >> i think what you have to look at is the president in all reality had a very large blank check and multiple blank checks he has been able to write to implement his idea of how to recover this economy. now it's proven they are just not working. you may see a stimulus but it's like a college kid saying i overdrafted my account, can you fix it? three months from now if you still need money from mom and dad, are you on your known the answer is no. the economy is got to be on its own. i think the average voter is looking, going, maybe this guy doesn't know how to fix the economy, maybe hope and chain isn't so great this country.

megyn: the numbers have not been good. the april's numbers were revised. march numbers were not good either. so we have been a couple months with low job gains. but the race is neck and neck. in the swing states that are going to decide this election, in many cases they favor the president. why? >> he is the incumbent. incumbents even when things aren't going well enjoy some advantage as long as people like them. and people do like obama. and up until now there has been a sense the economy is turning around. i actually believe it is still turning around, i just think it's very slow. megyn: it's doing a 360. >> i think what matters is what the numbers are leading up to the election and what they are on election day. so we don't really know that at this point. also, it's not enough for obama

to be doing a bad job. romney has to convince people that he can do a good job. megyn: he has the help of bill clinton. >> i was going to say, i think one of the things romney has got to do is he has got to walk out there and be an attack dog which he is not normally used to doing. he attacks private business that is creating jobs. the government is not fixing it. i'm the guy who knows how to help people create jobs. if he does that well you will see his numbers come up. megyn: i thank you so much for being here. the mayor of new york is leading a new charge against obesity. and he is not the only one just in case you think you are safe in your city. is bigger government the best approach to dealing with bigger waistlines?

do you ever order room service and you don't get the little chicken. you get 10 ounces and two breasts and people think they are supposed to clear their plates because people are suffering in africa. >> close your mouth and exercise self-restraint and you won't gain 1,000 pounds. megyn: our focus group debates. plus, the deadly shooting rampage inside a coffee shop could have been far more tragic if not for one man. details on the hero who when facing death said i will not hide. >> he put his life at risk. he was sitting next to the suspect when the suspect started shooting. and the suspect had two guns. like scanning a barcode to get detailed stock quotes to voice recognition. e-trade leads the way in wherever, whenever investing. download the ultimate in mobile investing apps, free,

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megyn: new details in a deadly shooting rampage at a seattle cafe. the gunman shot five people, killing four of them. police say it could have been far worse if not for a hero who risked his own life. >> reporter: seattle police say this is the most horrifying scenario they had seen in 30 years. the gunman had been kicked out of that cafe for good. he walked bang side and shot five people. and he finally shot himself. when he first entered that cafe there were more people inside there and his plan was to kill as many people as possible. here is the man who originally called 911. >> i'm at roosevelt and 59th. cafe racer. somebody came in and shot a bunch of people.

i'm hiding in the bathroom. >> reporter: we are learn being a brand-new hero inside the cafe. he's only being identified as lawrence. as the gunman opened fire, lawrence grabbed a bar stool and threw it at the gunman. lawrence said he looked at me like he didn't care at all. he was on a mission to killed my friend. so lawrence grabbed another bar stool and hit him between. here is police. >> during that time two or possibly three people made their escape who were -- and the suspect was between them and the door. so he saved three lives. >> reporter: lawrence says he did it because his brother was killed in the attacks of 9/11 and he made a vow to himself if he was ever in a dangerous situation like that he would stand and fight, he would not run and hide. he stood and fought.

megyn: trace, thank you. amazing, right? you always wonder if you would have it in you to do that in an emergency situation and they do say having a plan, answering the question of what you would do will help you do it when the time comes. just ahead we have new questions in the case of a missing toddler and questions about why police have not yet charged the man who appears at his point to be their prior mayy suspect. plus new reaction to a plan to deal with big waistlines by banning sugary drinks in america's big city. >> the fact of the matter is, mayor boom lettering is the even -- mayor bloomberg is the enemy of liberty. anyone who wants to tell you what you can eat or drink is interfering with your simple pleasures. most women may not be properly absorbing

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megyn: new reaction on a proposed ban on cups of big, sugary drinks. new york mayor michael bloomberg has called to ban the sale of sugary drinks over 16 ounces in size. reaction from both sides this argument has not stopped. in new york, it's not the only place the food police are cracking down. we put together a focus panel on

this issue. they join me on set. we have folks from all stripes. some who are into nutrition and have strong opinions on this. mayor bloomberg says he needs to help us save us from ourselves. obesity is an epidemic. he's sick and tired of the new york city taxpayers paying for it. you are a fitness expert. what say you? >> i think it's a great idea. it's costing america billions in healthcare. plus it might be a little bit better if he regulates -- asked the manufacturers to regulate how much sugar they put in their drinks. megyn: change the products. >> when consumers have a choice for something healthier or when they are kept from something that's not good for them they don't do it. it's a little bit after police state but we need it now. megyn: we have an obesity

epidemic. our kids are getting fatter, people are dying younger and we don't seem to care. why shouldn't we have the state save us. >> i think it as good idea. but the question is is there a direct line to the outcome that's desired. could we have done this by incentivizing restaurants to cut down on the amount they put in the glasses? does it obviate the need for government intervention? if we are talking about this in the context of obesity are we cutting down on the other stuff kids are eating? megyn: they are trying. lunches are regulated more than they were when we were growing up. but we are getting father and fatter and it's because of the evil things that are in cups like this. >> it's about moderation. as the mother of 3 little ones

i'll tell you it starts in the home. it's not the government's job what to feed my children and how much i can have. i never drank something that magnitude. megyn: lots of people are doing it. >> well, people need to take responsibility for themselves. megyn: mayor bloomberg says they don't. if you like this you are a dumb dumb and mayor bloomberg is going to save you from yourself. >> you will just buy more smaller ones. megyn: no, you won't, you are too lazy. >> if you want to stop it you will put a tax on it to deter people from using it. megyn: studies have proofen that a tax on a product like this does deter people from buying it. is that the answer? marcie clark, why is it mayor bloomberg's business if i want to drink myself silly with a

sugary soda? >> because we can't afford it. megyn: he doesn't pay for my illness. >> the government pays for a lot of people's health insurance. we can't afford the health effects of the 32-ounce big gulp someone has every day. megyn: why does mayor bloomberg say i can't have it, i'm a regular sized person. >> in the 40s, 4-ounces was a serving. now we have 32 ounces is the large regular serving size and we are getting fat. megyn: have you ever ordered room service in you don't get the chicken that's a five ouncer. you get two breasts and people think they are supposed to clear their plates because people are

suffering in africa. >> close your mouth and exercise self-restraint and you won't gain 1,000 pounds. megyn: but they are not doing it. eat less, drink less. they are not listening so do we need mayor bloomberg? >> we do. in america we always think about bigger and better. you should not double your today -- double your caloric intake. megyn: when you have that popcorn in the movie theater. >> it's 2,000 calories. which is a full day's worth of calories. one of the reasons is because we drink sooch soda. the first thing doctors will tell you is sugary soda. megyn: you are a nutrition and you are in favor of this ban. do you see any hypocrisy on the

part of the mayor as he celebrates international donut day as he tells us we can't have our soda. >> i think what we need to understand is sodas don't just cause obesity. they cause detear yaiftion our bones and organs. we are deteriorating because of these substances. megyn: where does the banning start. >> it's a small step. we need to take responsibility and we need to start raising alarm bells because people aren't paying attention. megyn: look at butter. birth is not good for you, but julia child put so much butter on everything and she lived to be in her 90s. my own nana 97 years old almost. she says my sister drank herself

to death and i'm going to eat myself to death. she'll be 97 in october. >> soda is the number one source of added sugar in our diets. it's not the natural shu gawr find in truth and milk. it's added soda. back to what you were saying about you are thin you don't have to worry about it. megyn: i didn't put it quite that way. >> but for people who are thin. it is a problem it can raise your ldl, bad cholesterol levels. megyn: but in moderation shouldn't americans be able to make choices for themselves? even thin, healthy people can have an unhealthy choice and have lots of pizza or full fat ice cream. >> absolutely. mayor bloomberg is the enemy of liberty. anyone who wants to tell you or

anyone else what you can eat or drink is really interfering with your simple pleasures. he moms longer content to be the mayor. he would rather be a rothchild or emperor or some individual of that stripe. megyn: the other question is as i mentioned a moment ago. where does this stop. you say the's first step. how many steps are we going to take? jon stewart made this point. >> then i can go from there right over to hooters for a quick basket of chicken wings, battered, with melted butter served with a bowl of cheese. top it off with a frozen hot chocolate. all of this is legal in new york city. until god forbid i want to wash

it down with a little pure and refreshing -- megyn: you wrote the book and naked calories. what do you think? does he have a point? >> we have to ask the question, who will watch the watchers. nobody is more passionate than i am about helping to fix the obesity epidemic. we cannot take away the funding amountal rights of an individual, what america was founded on. if we start to take away our ability to make choices as to what size soda. maybe next time it's what size steak. next time can i raise my child as a vegetarian. we do not need government telling us how to handle our nutrition. >> if governments are taking money out of schools and not allowing kids to become part of

phys-ed programs, then government has to do something. >> we ask government to regulate food so there is no arsenic or pesticides in certain foods. we ask government to do that. you can look at sugar as toxic. a recent paper, researchers proposed sugar be regulated like a toxic substance. megyn: just a salad with no dressing. >> he's just saying you can't have 30 ounces at one time. megyn: here is my question to you. isn't it -- they are already regulating so you have to put the calories on the front of the product. isn't that the answer? give them the information so they know, go ahead and drink it if you want --

>> if you want to drink yourself to death, it's your business. you are not blowing smoke in my face. go ahead. >> we have addictive substances in this country and we control them. soda has tons of sodium as well as sugar. you drink it and you get thirstier. megyn: a ton of sodium. maybe mayor bloomberg should crack down on that. the question is where does it end. great discussion. wasn't that interesting? we are taking your thoughts on it. this is from susan from north contractual. boom berg wants to ban large cokes? down here we are still trying to figure out how to deep fry them. follow us on twitter at megyn kelly and we'll continue the conversation. up next, "kelly's court." new questions in the case of a missing toddler in maine and

angry grandfather. a heartbroken mother and the father who appears to be the focus of suspicion. >> he is a coward an has no father. a father would not allow this to happen to a child. a father would speak for his child. [ male announcer ] what's in your energy drink? ♪ wer surge, let it blow your mind. [ male announcer ] for fruits, veggies and natural green tea energy... new v8 v-fusion plus energy. could've had a v8.

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meg already george zimmerman. megyn: a judge just revoked george zimmerman's bail. he's charged with second degree murder in the killing of trayvon martin. the prosecutors after bail was set for zimmerman went back into court and asked the judge to revoke it, arguing mr. zimmerman and his family misled the court about his finances when he testified during a bail hearing and talked about his limited means.

the prosecutor argued that court was led to believe mr. zimmerman didn't have a single penny. they said it was misleading. we don't know what words to use other than that was a blatant lie because zimmerman and his relatives testified they had limited funds. as it turns out zimmerman's attorney said he discovered zimmerman had raised $200,000 from a web site he set up to help him with his defense. the judge apparently not happy about that belated disclosure and is according to the wires avoakd his bond. there were reports earlier the prosecutors were asking for the judge to do it. now we get across the wires the judge has done it. he has 48 hours to surrender himself and go to jail pending trial. "kelly's court" is back in

session. a disturbing new revelation in the disappearance of a maine toddler. ayla reynolds was 21 months old when she vanished from her father's home just before christmas. investigators are saying they do not believe she is still alive. they are going to revoke the $30,000 reward that's been offered for her and they believe her father knows more than he is letting on. and they are not alone in that belief. here is ayla's grandfather and mother lashing out at the father. >> come and face me like a man, justin and tell me where my granddaughter is. you want to see someone pissed off? look at me, justin. honestly. look at me tonight when you are on tv. you want to see somebody upset. i'm her papa. i'm her papa.

i am her blood. you understand? you have taken something from me. >> justin is a coward and he is no father. a father would not allow this to happen to a child. a father would say something and speak for his child if he loved ayla in any way at all would speaker to her and say what happened. he wouldn't be the coward that he is. megyn: why no arrests in this case? there is much more the police are saying as well. joining us to skits, jonna spilbor and arthur aidala. both are defendants attorneys. it's so emotional to hear the mother and the granted father. they have got -- the police say they have got the little girl's blood found inside the father's home. they believe she is no longer alive. they believe the father is not being straight with them. where is the arrest? >> they don't need much to

arrest so it's possible that an arrest will be coming. all they need is probable cause. this little 2-year-old didn't hitchhike to six flags. somebody in that house had to get her out of the house and either she has been giver on another family or she is dead. we don't know what they can aread him for. they don't have enough to get a conviction but they are putting the pressure on this father. megyn: he claimed she was abducted. she was with him when she disappeared. the police say there is no evidence of an abduction. they can dust for fingerprint, they can check the house to see if an intrude i are has gotten inside. these cops don't believe this guy. but there are two other people inside that house and none of the three are talking. >> his sister, that would be her aunt, and his girlfriend. what i really would love to know is what made them make this

proclamation that now they believe she is dead. megyn: i find out we are five seconds from a hard break. we are holding you over. we'll be right back.

bla.

megyn: mr. aidala. >> what i want to know is why did the police change their theory that she was alive and now she's dead in my opinion the most obvious thing that happened here, there is no evidence of an intried. is that the child was sold. megyn: what about her blood that was found inside her father's home. >> i was watching my nephew and he fell and cut his hand. if you went to my home there

would be trace of his blood. megyn: jonna, what does it take? you have got three people in there which could be an advantage in terms of turning someone. >> here is an interesting theory. what if arthur is right. what if the father did sell the child and the police know this but they are putting pressure on the daughter to say i didn't kill her, i just sold her. that's why he's saying we think she's dead. it could be a way to put pressure on all three of the people in the house. megyn: the mother is saying i don't know why they are revoking the $30,000 reward. this is not normal. >> i think they may be totally frustrated and they are using any means -- they using their imagination. they are being creative. what can we doth to shake this tree? megyn: i want to talk to you about zimmerman. what do you make of the judge

revoking bail. >> i'm not surprised because this is the biggest case in the nation. you have an attorney who is a well-known attorney who comes in and makes a bail argument then the next day says, by the way, judge, everything we told you that you based your decision upon which is everyone is broke, is wrong. megyn: it could have been an honest mistake that donors who want to help zimmerman were furnl together web site. could he get this reversed and get back on bail? >> the judge got this wrong. the money he was raising was to go towards attorney's fees it wasn't george zimmerman's mop money. this is another way to get some more media hype. >> i don't know if it was that clear it's a legal defense fund. it doesn't necessarily mean it can only be used for attorney's fees. megyn: the judge is not happy they weren't told about it. thank you so much. we'll be right back.

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