>> nice to be with you, martha even if it wasn't double boxes. martha: rick, good to be with you this morning. see our friends down here in the bureau. "happening now" starts right now. jon: a massive wildfire in colorado turns deadly as authorities find a woman's body. more than 100 structures burned. firefighters are bracing for hotter temps and hotter winds. we are live on the ground. jenna: the president's health care law a big rallying cry for conservatives. what would it mean for governor romney if the supreme court strikes it down? may not be so obvious. we have a fair and balanced debate coming up. jon: the attorney general heads for capitol hill for another round of grilling. he faces a vote to hold him in contempt of congress and independent investigation into all those intelligence leaks. those stories plus breaking news, all "happening now."

jon: also brand new developments this morning in the race for the white house. good moing to you, i'm joan scott. jenna: seems like everyday there is new developments. is that the way it will be until november? jon: i think it is. jenna: that's okay. i could take new news every day, right, everybody? nice to have you with us. i'm jenna lee. governor romney is a launching a swing state tour. the first stop, the state that decided the 2000 election, the state of florida. it is his fifth trip there. it comes as the president's team releases a new campaign ad in florida and other battleground states. that ad attacks mr. romney's record as massachusetts governor. chief political correspondent carl cameron is following it all live from washington. over the past several days the president caught heat for saying the private sector is okay. mitt romney caught heat when he wants to do with police, firefighting jobs, teacher jobs. where is that at this time? >> reporter: it has been a

debate over what they said and whether it was in and out of context but really fundamentally a debate more about stimulus money from the federal level to the states. rom nil was not weighing anyone low call governments should not add more debt to bail out states as the president said in his latest stimulus proposes. romney made that again. >> this was not one line taken out of context. he went on to describe why he believes therefore we should provide another stimulus to hire government workers. and it's very clear he does think things are just fine and in the private sector even though as you know the rate of growth of our economy and the first quarter was only 1.9%. and we have almost 15% of americans that are out of work or stopped looking for work. >> reporter: and so romney is saying when the president said the private sector is doing just fine he is not twisting his words or taking it out of context. that is what the president believes give the policy proposals following statement. romney today stepped his

attacks on the president's health care reform. he accused obama of not realizing the health care act is hurting small is about. romney slammed the president saying it is another kpanl pell of being out of touch and he vows to replace the obamacare no matter what the supreme court decides. romney is making example of bomb care is another of the president's policies making it harder for the economy to recover. jenna: that is some of romney's argue mains that he is making. what about obama camp? >> reporter: you were talking about there is news every day, a lot of what really is compounding an compiling or piling on even on the attack ads. this is the latest one. it is not changing. the obama campaign will continue to go after his record in business and as governor of massachusetts. the latest ad goes after the record. hear is the latest about massachusetts when mitt romney ran it. >> when mitt romney was governor, massachusetts was number one, number one in

state debt. $18 billion in debt. more debt per person than any other state in the country. at the same time, massachusetts fell to 47th in job creation. >> reporter: so the romney campaign calls the ad entirely false. romney balanced four state budgets, eliminate ad short fall of $3 billion and created a rainy bay surplus of $2 billion. massachusetts had its credit rating upgraded while he was governor. romney campaign points out since the president took office the national debt increases 5 trillion dollars and the u.s. credit rating has been downgraded. all this argument. when you talk about the mammas mass debt obama campaign is talking about. those are bond related projects that the legislature and governor agreed to do and borrow money on particular projects particularly in transportation. there wasn't debt at end of romney administration although they borrowed money for long-term economist zoos. jenna: you sound more like an economist every day. that is what the election

requires. >> reporter: you have to know the romney side, obama side, congressional side. all will play out in five months. jenna: carl cameron, nice to have you sir, thank you. >> reporter: you bet. jon: except maybe in arizona where it will play out tomorrow when we see rule results of the polls today. they're choosing a replacement for former congresswoman gabrielle giffords. she resigned in january to continue recovery from the gunshot wound to the head. the special election pits, ron barber, giffords former aide against republican jesse cali. some analysts say this race could tell us a lot how president obama will fair with independent voters in november. erin mcpike a national reporter for "real clear politics" and joins us now. jesse kelly ran against gabriel giffords last time around. came within a few thousand votes defeating her. obviously she won. how does it look this time around? >> reese poll the ron barber the democrat is beating jesse kelly by 12 points.

part of that is based on goodwill for gabrielle giffords and her staff. looks like the democrat will come out a victor tonight. it will not say a ton about this fall i don't think because we wouldn't expect that democrats will outperform republicans by 12 points, let's say this fall in arizona. jon: ron barber, her aide running to replace her was wounded in the attack on her. he was there at the shopping center that day she was shot. he i am self was grazed in the cheek by a bullet. >> that's exactly right. that is to the point that good wil still remains for not only gabrielle giffords but her staff and ron barber himself. as this campaign moves forward we see there is a lot of goodwill in the district for that whole team. it looks like they're headed for victory tomorrow but arizona this fall may be a swing state. at this time the obama campaign is not spending very much money there. they're not advertising there. however what they are doing is registering voters which is something they did not do

in arizona in 2008. so they're trying to make it more competitive and trying to get the romney campaign to spend money in arizona the we have yet to see if that is going to go anywhere. jon: one week ago today republicans were energized when the wisconsin recall failed to turn scott walker out of office. so if ron barrer -- barber wins in arizona and the polls seem to suggest that he might retain that seat for the democrats are democrats going to be energized in the same way? >> they will to some degree but it is a different case. this is a very special case and while they will be energized and maybe that would spark democrats to spend more money in arizona, it won't pack the same punch let's say as the wisconsin recall election did for republicans. jon: it's almost a preview for november because whoever wins this seat today is only going to serve out the remainder of her term which is five months. and then in november we do it all over again. >> that's right. we do.

but under this current election, we haven't had redistricting take effect. that will be the case though this fall, that a new district will be drawn, and it is supposed to be a more democratic district once those lines are redrawn and that takes effect this fall. jon: so whoever wins the seat today, if, say ron barber wins it today he has a better shot probably next time around, first of all because of the power of incumbency and also redistricting giving him more democratic residents in that district? >> that's absolutely right. he does. jon: we'll con to watch arizona where gabrielle giffords seat is up today after her resignation. erin mcpike. thank you. jenna: attorney general eric holder is back in a familiar place and in a familiar seat on capitol hill testifying before the senate judiciary committee. that is senator feinstein from california on your screen there. many of the questions so far have been about the "fast

and furious" gun-running scandal including concerns some senators have that eric holder is with holding potential evidence in the case. take a listen. >> i want to make it very clear i am offering to sit down, i myself, am offering to sit down with the speaker, with the chairman, with you, whoever to try to work our way in this in an attempt to avoid a constitutional crisis and come up with ways, creative ways which we can make this material available. but i have to have a willing partner. i have extended my hand and i'm waiting to hear back. jenna: all this comes one day after a house panel scheduled to vote for next week on holding the attorney general in contempt of congress. william la jeunesse is live in los angeles with more on this. william? >> reporter: well, jenna, senator charles grassley today lit into the attorney general. in his opening statement saying doj was stonewalling obstructing forcing the house to pursue contempt of congress charges against the attorney general. >> here we are, one year later, and the terry family

still is waiting for answers. they're still waiting for justice. the fbi doesn't have the shooter in custody. and the justice department still defying congressional subpoena for information about how all this happened. since last year at this time a lot has happened. >> reporter: now the latest controversy involves affidavits for wiretaps where atf agent would lay out in detail why they need to tap a suspect's phone. the department of justice in washington spends a week reviewing those before submitting them to a judge. the former atf director, ken melson read the affidavits and concluded "fast and furious" was out of control and that indeed his agent are were helping walk guns to mexico. last week holder read the same affidavits and disagreed of the saying they don't precisely describe the tactics of gun walking. today grassley sided with melson. >> we still don't have a decent explanation why it

took so long to acknowledge the truth. now i've had a chance to review some of the details of those affidavits. all i can say is that mr. melson was right and the attorney general is wrong. >> reporter: now melson wrote an e-mail describing his misgivings that justice has not released that. grassley asked why. holder claims that number one he is not required to give over documents in ongoing investigation or deliberative documents used to make a decision. jenna over the last 18 months there is not a lot more that we know now than we did then. and when this started, you know, often seemed that the department of justice was only giving enough information according to the investigators required to comply with the oversight committee without turning over the store. a waiting game if you will that issa would eventually run out of political gas. this decision to hold a contempt vote shows they still have some guns if you will to inflict damage.

now the attorney general says he is willing to compromise and minutes ago the ranking democrat, elijah cummins urged issa to sit down with the deputy attorney general and discuss these outstanding issues to forego a contempt hearing which is scheduled for wednesday of next week. jenna: we'll continue to follow the live tom today and follow this story as it develops through the next couple hours. william la jeunesse following that story. jon: lots of fireworks own capitol hill these days, aren't there? jenna: keep having those hearings this is just fodder for it, right? jon: yeah. also some brand new information on that killer wildfire raging in colorado. the flames are spreading damaging dozens of homes, sparking evacuation. as crews brace for windy weather some progress to report. jenna: also more powerful testimony in the trial of jerry sandusky. the teenager who sparked a grand jury investigation with his account in this case breaks down on the

stand. we're live at the courthouse with more on that. jon: also in los angeles police with a real mystery on their hands, trying to find out how a pair of lungs, yes, lungs, ended up on the sidewalk. we're live at the breaking news desk with the latest on a very bizarre discovery. [ male announcer ] it's back again at red lobster, but not for long! your very own four course seafood feast for jt $14.99. start your feast with a soup, like our hearty new england clam chowder. next, enjoy a salad with unlimited cheddar bay biscuits. then get your choice of one of 7 entrees. like new coconut and pineapple shrimp shrimp and scallops alfredo or new honey bbq shrimp. then finish with something sweet. your complete four course seafood feast jus$14.99 come into red lobster and sea food diffently.

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jenna: now this fox news alert. a raging wildfire in northern colorado turns deadly. the body of a 62-year-old woman found in her burned out hyde park home. a disaster declaration looking for resources to fight the fast-moving flames as hundreds of people are forced to leave everything they own behind and get out of this danger zone. joining us on the phone, steve sagen with the u.s. forest service. we understand the fire still has zero percent

containment. why is this fire so difficult to get a handle on? >> one of the issues we faced at least early on in the fire was wind. what we have here along the prong range of colorado are extremely strong winds and the fire grows exponentially. that is one of the issues. the other issue is a lot of homes are in there what we call the wild urban interface. unfortunately we're in reactive mode, getting in there to protect structures and helping evacuation. now, actually things are looking a little better. winds are not as bad today. crews are making a little bit of progress. jenna: that is good to hear. we're looking at images on the screen. we understand how thankful folks out there are for everyone trying to protect their homes and any structures on the property. that certainly can become an obstacle. now that the conditions are little better what is the gameplan for today? >> the fire, on the eastern flank of the fire it has moved out of timber and

brush to grass lan and agricultural area. that gives crews the opportunity to construct a fire line up to the edge. fire. on the north side of the fire it is running up into the river, however on the western side of the fire, southern side of the fire where the homes are, still a lot of open fire out there. we're talking 43,000 acres. so, you know, it is just getting crews in place making quite a challenge. jenna: steve a quick final thought, how are the crews holding up? do you need reinforcement from other states? >> we already brought in fire fighters from all across the country. our goal is to relief those initial responders, those volunteer fire departments, those locals there fighting the fire. get them rotated out and get them rest and back home as we continue to move both state and federal firefighting crews into the fire. jenna: we appreciate all the work you and your team are doing, steve. we wish you the best of luck with that fire. >> thank you. jenna: we look forward to having you back.

we appreciate it viewers sent images from news happening in your area. this photo from the massive wildfire near fort collins, colorado. the smoke is completely covering the sky. the fire is near homes which is never a good thing. safely snap a photo what is newsworthy in your neighborhood. up load it to foxnews.co foxnews.com/ureport. and you may see it on tv. jon: one of jerry sandusky's accusers breaks down on the witness stand on day two of the sandusky sex abuse trial. the 18-year-old witness saying the former penn state coach forced himself on him when he was a child. one the other victims say sandusky treated him like a girlfriend when no others were around. david lee miller from bellefonte. >> reporter: jerry sandusky facing more accusations.

this victim like most of the others said he met jerry sandusky through the second mile charity. the alleged victim said he stayed at the sandusky home 100 if not more times. he said he was sexually assaulted more than two dozen times while staying in a basement bedroom. all the while, he said while these assaults took place, jerry sandusky's wife, dottie was upstairs. he says he became so scared at times that he actually hid in that home under a pool table. at one point he did confide in his mother, telling her that he wanted to know if there was a website he could turn to look up individuals who might harm children. his mother, then, reluctant to speak directly to sandusky had her son speak to a guidance counselor after the local school. after that took place. the mother was brought in. she asked the police be notified. the school's initial reaction, and this is very disturbing, the school's initial reaction, someone at the school said, jerry sandusky has a heart of gold. there was disbelief.

ultimately though the school did take appropriate action, called the police. the young man testified before the grand jury. because of his testimony, because of his testimony, then other victims came forward. that's why jerry sandusky is in the courtroom behind me today. sandusky stared directly at the witness as he testified, occasionally taking notes. that witness now being cross-examined. the defense trying to destroy his credibility. jon? jon: just an awful trial all the way around. david lee miller. thank you. jenna: well, some of the country's biggest banks bracing for possible bad news a possible downgrade from one of the three rating agencies. we'll have more what that means for all of us coming up. jon: doesn't sound good. jenna: doesn't feel good. jon: yeah. eric holder also testifying on capitol hill today. the attorney general could soon face a vote that would hold him in contempt of congress over the "fast and furious" scandal. judge andrew napolitano joins us live to discuss it.

jenna: we have some new information in the search of a suspect in the tate tall shooting of three people near auburn university in alabama. this after s.w.a.t. teams swarmed a home they believed the gunman was hiding in. but apparently they were not correct about that. julie banderas is live in our newsroom with more? >> reporter: hi, jenna. police not only swarmed the wrong house they believed a murder suspect was in, they ransacked the place, spending hours firing tear gas into the home and using thermal imaging and sending tactical teams inside and drilled holes and tore through police of the house. police in montgomery, alabama, were looking for this guy, desmonte leonard. he is charged with three counts of capital murder

during a pool party saturday night. he accused wounding three others. the two of dead were former auburn football players. thermal imaging showed there was and some one in the@tic of the house and they heard coughing and movement. after midnight they acknowledged they didn't hear the noises for several hours and law enforcement agent left the home without comment. they were led there because of a 911 call saying something someone that looked like leonard or was nearby. they promise to rebuild the home or reimburse the owner for the damage they caused. jenna: i can't imagine if you were the homeowner. hopefully they find the suspect in this case. julie, thank you. >> sure. jon: big banks in this country bracing for very bad news. moody's expected to slash ratings for up to 17 of them as early as today. here to tell us what it all means to the banks and you, liz macdonald from the fox

business network. so which banks are looking at the possibility of downgrades, liz and what's moody's saying about all this? >> reporter: out of the top 17 global banks we're looking at possible ratings downgrades. it could come later in the month. it could come also in two weeks time. bank of america, citigroup, morgan stanley, goldman sachs, jpmorgan chase, all face ratings downgrades and in fact what we're hearing from the banks is that, look, this is immaterial but they're saying also to fox business we do have to set aside more in what is called our cookie jar reserves, meaning our capital cushions to support our lending and derivatives trades. this is a tricky thing for states and towns who use these, the banks to help them borrow. it could cost the cities and towns to raise their own borrowing rates. and also money market funds, you have to plunk a lot of money into money market funds into aaa paper. top-rated paper. if the banks get downgraded the funds will have to start

to look to other banks to get their paper from. jon: that doesn't sound good for banks but what about our individual viewers, how does it affect them? >> reporter: how it affects them when the banks get downgraded the banks are essentially being told look, you're a riskier bet than we previously thought. so you have to set aside more in terms of reserves to support their lending. that means borrowing rates could go up. if they have to set aside more collateral they have to charge more and loan rates would go up. for towns and cities, the muni bonds they borrow to build schools an bridges those costs go up too. the thing is this has been baked into the market though. we've been expecting this since february t has been rattling bank shares but the eurozone crisis rattled bank shares. moody's has taken that into account. moody's tell fox business they are taking into account jpmorgan chase's, 2 billion to 5 billion possibility in trading losses. low trend gdp growth, all

parade of horribles that moody's is taking into account in the coming downgrades. we're watching how it affects trading revenues at the banks. the bank stocks how they trade and also the lending rates consumers get at the banks, whether or not the banks will pass it along and cost for towns and cities as well. back to you, jon. jon: sounds like a mixed, mostly big bag of bad news i guess you would say. elizabeth, thank you. >> reporter: sure. jenna: liz said the parade of horribles. we have to work that into the show. jon: parade of horribles. jenna: not because we want horrible things to happen. jon: right across the set. jenna: the supreme court set to rule on the health care law any day now. it is june. that is when we're supposed to get the decision. if the high court strikes the law down many suggest it will spell trouble for the president but now there's talk it could cause even more problems potentially for governor romney. we'll debate this issue coming up next. a dramatic mayday call that a yacht exploded.

passengers jumping into lifeboats. some suffering severe burns from the fire. now fear has that report may all be a hoax. what the coast guard is doing about it today, next.

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we're going to be live with that story and latest out of syria. just how bad was the great recession? the net worth of american families plummeting to levels not seen in a few decades. we have grim new numbers from the fed. we'll go a little deeper in that. a key hearing in the effort to ban big sugary drinks in new york city but would that really put a dent in the obesity problem? we'll talk to a few doctors on this coming up. jon: it is president obama's signature legislative achievement. mr. obama campaign on the health care law. worked hard to get it passed and signed it into law. well just days from now the supreme court could issue its decision on that controversial law. the white house of course says it wants the law upheld. governor romney today on "fox and friends" criticized the law from an economic standpoint. listen. >> obamacare is one of the

worst offenders in making it difficult for small businesses to go to the back to the business of hiring people and expanding. jon: so who gets hurt if the law is struck down? some political analysts think it could really hurt governor romney's campaign by taking a big rallying point for conservatives off the table. joining us now for a fair and balanced debate. angela mcglowan, fox news political analyst, and san teeth at that jackson, radio talk show host and fox news contributor. angela, what about that, the supposition is that if obamacare goes away, governor romney lose one of his big points to run against? >> jon, this is one political analyst who does not think the striking down of obama care would hurt mitt romney. this election is not about romney care. it is the fact that obamacare as you heard about, was obama's signature legislation. but it is also about a president who has had failed

policies. added $5 trillion to the deficit and this administration has been about payouts, bailouts, and has not created more jobs for the american people. so that is what this election is going to be about. jon: santi it a, a president obama gets up there, look we tried and it rallies his supporters to the polls. does it work that way? >> very interesting argument. obamacare is romney-care. this is the, this is the policy instituted by governor romney in massachusetts. the sticking point of course will be the mandate. which governor romney was for before candidate romney became against it. president obama was against it, before he was for it. either way i think that americans really need to understand that some kind of national health care plan is here or coming. the aca, affordable care act, is in effect.

now governor romney has said that when he becomes president romney he is going to dismantle this plan but he will institute his own. what will that be? we need to know. >> it is not going to be romney-care. the great thing about an experienced public official is that you learn from the policies of the past. the great thing about mitt romney is, not only did he learn from romney-care. also he learned about being at bain capital and creating jobs. when americans go to the ballot box they're not going to be thinking about romney-care. they're thinking am i better off today than four years ago when barack obama took office and the answer is no. it is time for change. time for mitt romney change. jon: let's stay focused on the issue of -- >> i want to know what is the plan? jon: hold on, santita. >> i'm sorry, jon. jon: let's stay focused on the issue what happens at the ballot box if obamacare does get struck down by the supreme court. does it become a political embarassment for the president? >> no, it does not.

either way i think politicians can conform these arguments to win. this is plan that both of these elected officials were for. i want to translate this argument into a political argument into a practical discussion on the practical needs of american people. far too many american people are uninsured, underinsured or they are uncovered. what is going to happen? president obama -- >> santita? >> angela, governor romney said he will have some kind of plan. i want him to give us a plan. >> governor romney is against obama care. governor romney is against obama care. jon: hold on. >> i don't know how he can be because it is his plan. >> president obama --. jon: wait a minute. >> president obama is still for obamacare and you have the highest court in the land, santita, that might consider his legislation is unconstitutional. this will put a dark cloud over this president. >> only on the individual mandate. i'm sorry, angela. >> a dark cloud over the

president's chances for re-election. it does not hurt mitt romney. it hurts obama. >> i think jon laid it out perfectly. i'm sorry. jon: under the constitution, governors are allowed to or states are allowed to try things independently that the national government is not necessarily allowed to try. isn't that the difference between the possible unconstitutionality of a national health care plan versus a state health care plan? >> i don't know. because he is antonin scalia said he has not read the whole thing. he is not going to. i want to see what the decision is going to be. i do really believe the sticking point will be the individual mandate, which as i said before, governor romney was for before he was against it. and president obama was against the before he was before. i want to know what the plan will be. jon: angela, what about that? some republicans are uncomfortable with the health care plan governor romney instituted in massachusetts. >> no question, jon, some republicans are uncomfortable. that's why we had a spirited

primary debate surrounding mitt romney is the nominee. the bottom line he is our nominee and conservatives are rallying around him and romney-care, only impacted 8% of the country, which was the state of massachusetts. but again, santita, the sign of a true leader is that you pass policies and that you learn from them and, i think that when we have president mitt romney we will have a better health care system than what we have right now. jon: we're going to see. >> i think the sign of a true leader who cares for the least of these. who will cover the people who are not covered? jon: obviously a lot of this depends, a lot of this argument depends what the supreme court rules. will it throw out the entire law. will it affirm the entire law? will it throw out part of the law? we'll see. santita jackson, angela ma glou wanl. thank you both. jenna: we have more debates. jon: that is our job. jenna: i might need your help with the next story. not even jon scott has seen something quite like this.

jon: no. jenna: no. okay. this happened in los angeles. police fine what appears to be lungs on the sidewalk. julie, do you want to take it away from there? >> reporter: yes, no, but i have to. it is my job. a pair of lungs. let's be specific here. complete pair of lungs something you don't see every day or ever. now the coroner's office in l.a. is trying to determine if the lungs belong to a human or animal. the bizarre find, a first even for l.a. according to authorities who say never before have a pair of lungs have been found on the streets of los angeles, let alone on a sidewalk. imagine being the woman walking along and made the discovery? >> i look in the road. maybe water or maybe blood in the streets. only looking one, one is package. >> and it was red? >> i looking red. >> every time we walk we

don't want to go to that side because we're scared. we don't know what is going to happen. >> reporter: the core rower and crime lab responded to collect the lungs or any other evidence and they will use blood and tissue samples to determine if the lungs belong to a human or animal. some believe this could be a hoax or maybe a publicity stunt related to the latest zombie craze. investigators are not commenting until they know more. we'll have to wait and see. am big hoax if it is indeed a hoax. jenna: there is nothing left to say. we've covered lungs on the sidewalk in los angeles. so we can call it a day. >> reporter: that's a wrap. jon: let's take you to the floor of the u.s. senate where more civilized things we hope are going on. jenna: we hope. i think that is a good disblamer. -- disclaimer. jon: this is senator john mccain is asking for a special counsel to be appointed because of the number of leaks that have been pouring out of, well, he assumes the

administration and accuses the administration of leaking intelligence matters for its own good. also there, the attorney general, eric holder. also a decades-old mystery about a baby, her mother and a dingo, a wild dog, finally solved. what happened in the australian outback more than 30 years ago. ♪ we all need it. to move. to keep warm. to keep us fed. to make clay piggies. but to keep doing these things in the future... at shell, we believe the world needs a broader mix of energies.

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jenna: we'll take you back to capitol hill where you will be seeing attorney general eric holder in just a moment. he is testifying before the senate judiciary committee and just a few minutes ago senator cornyn, who will be our guest next hour we should mention, just called for the attorney general's resignation. that is what is happening now in the senate. a separate house committee is looking into the "fast and furious" gun-running scandal scheduled a vote for next week on whether to hold the attorney general in contempt of congress for

with holding documents in the ways they want to see. judge andrew napolitano is fox news senior judicial analyst and joins us now. we'll continue to dip in and out of the testimony. >> sure. jenna: judge, explain to us the process when a panel will vote to hold someone in contempt, what happens? >> well the vote by the panel merely sends that vote to the floor of the house. then it is up to speaker john boehner whether or not he wants to permit the entire house to vote on the citation of contempt. if he says yes and the vote is affirmative, then the house has voted to hold the attorney general in contempt. that alone has no legal ramifications whatsoever. ordinarily when the congress votes to hold someone in contempt the attorney general assigns a federal prosecutor to prosecute the person whom the congress has held in contempt. jenna: why? >> because contempt is a criminal act and one is only guilty of contempt after having been found guilty by a judge or jury. prior to that it is just political. so for a republican-dominated house

committee and a republican-dominated house of representatives to hold him in contempt probably will not cause him any sleepless nights at all. the republicans did that to one of his predecessors, january neat reno. the full house didn't vote but the committee did. jenna: how long does it take, if the goal is to get the documents to solve a problem some republicans believe is a problem what is the timeline we're looking at? >> that is the very interesting part, jenna. if the goal is to get the documents the threat of holding him in contempt will probably spring lose the documents. if the goal is to prosecute and convict him for contempt, that will take a couple of years and that will require a judge to appoint a special prosecutor to prosecute the attorney general and that process will punish him but probably will not spring lose the documents.

jenna: he said i'm willing to work this out. let's do this face-to-face. he said he will not get an answer or getting an answer on that. as a judge, someone that could do mediation, do you think that is the path to go or do you think this threat of contempt is now where this has gone? >> i think the path to go would be for a federal judge to review the documents in secret. and decide which are relevant to congress's inquiry, which are lawful for congress to have rather than --. jenna: when will that happen? does that have to be ordered by the attorney general to have a federal judge to do that? >> no. the congress could file a lawsuit against the attorney general and the lawsuit could go before a federal judge and the federal judge could say, you know what, bring the documents into my courtroom and i will decide what you get. the attorney general wouldn't be deciding and the house of representatives wouldn't be deciding. >> there are a couple of paths. >> there are a couple of paths here. i'm sure he wants to avoid the citation of contempt. it is an unpleasant thing but will not probably pry

lose the documents. >> thank you very much, jenna. jenna: a member of the senate judiciary committee, senator john cornyn. he is the one who called for the resignation of the attorney general and join us. we'll ask him about what the judge said. is a lawsuit the smarter path, jon if the attempt is to get the documents?. jon: interesting to hear what he has to say, jenna. a terrifying hit-and-run to tell you about. a driver veers off the road and slams into a pedestrian. now police say it may have been deliberate. ♪

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jenna: welcome back, everyone. right now police in california are asking for the public's help after a

terrifying hit-and-run caught on tape. take a look at this. you have two friends walking in buena park. out of nowhere this car veers off the road and appears to go gunning for one of the men, hitting straight on. you can see him on the street. the victim says he didn't recognize the person that was driving, a hispanic male or the female passenger. the car appears to be a gold mitsubishi galant with tinted windows. the 20-year-old victim suffered significant injuries. he was released from the hospital which is a good thing but they're still trying to figure out what happened there. jon: the coast guard just raising the reward for information on a bizarre yacht explosion that is now believed to be a hoax. a may-day call coming in yesterday claiming a yacht exploded off the coast of new jersey, forcing survivors to abandon ship but rescuers couldn't find any sign of trouble. they dispatched all kinds of help. laura ingle is on it. she has details from new

york. >> reporter: this appears it was in fact a hoax, a very expensive hoax that took several hours of valuable time and resources away from potential real emergencies. and whoever faked this sos could face fines and jail time. now the coast guard received the first of two emergency radio calls around 4:20 p.m. yesterday. someone claiming to be the captain of a yacht named the blind date, said there was explosion on board near sandy hook new jersey. the caller said seven people were hurt and 21 people were abandoning ship into lifeboats. the coast guard nearby, police and fire departments deployed boats and helicopters to search roughly 640 area nautical miles. >> when they arrived on scene, they should have seen life rafts which are orange and red in color. they would have seen smoke and probably an oil slick. >> reporter: coast guard investigators say it looks like radio calls came from land. making a false distress call

is federal felony punishable by five to 10 years in prison and $250,000 fine. the reward to find those responsible is now 3,000 bucks. >> what we'll do is go out and engage with people in the maritime community along that line of bearing, see if they heard anything. see if they recognized voices. maybe someone said something. any sled that we can find and run those into ground and hopefully find the guy that did it. >> reporter: coincidentally a similar call came in almost exactly a year ago costing the coast guard $88,000. no one has been charged yet. if you have information on either of these cases you're urged to call the coast guard. 646, 872-5774. jon? jon: really appalling if someone is calling in hoaxes like that. thank you. jenna: a public hearing on the "stand your ground" law, the centerpiece of george zimmerman's defense in the trayvon martin murder case. could we see the rule change? a legal panel talks about

this and significance of it coming up. in colorado a fast-moving fire burning almost out of control. 1200 homes are devoid or damaged. we're home on the fire line next.

jenna: and now this fox news alert at high noon here on the east coast, attorney general eric holder facing some very tough questions and some very tough requests on capitol hill today. take a listen. >> mr. attorney general, it's more with sorrow than regret -- than anger that i would say you leave me no alternative but to join those that call upon you to resign your office. americans deserve an attorney general who will be honest with them, they deserve an attorney general who will uphold the basic standards of political independence and accountability. you've proven time and time again, sadly, that you're unwilling to do so. the american people deserve better, they deserve an attorney general who is accountable and

independent, they deserve an attorney general who puts justice before politics, and it's my sincere hope that president obama will replace you with someone who is up to that challenge. jenna: holder testifying before the senate judiciary committee right now. you're seeing some live pictures. there's senator schumer. eric holder's answering questions from national security leaks to what he knew about the fast if furious gun-running scandal. we've got the man who you just heard call for attorney general holder's resignation, senator john cornyn, coming up in about ten minutes on "happening now". jon: syrian forces release a new and relentless wave of violence. women and children trapped in one town, and reports that syrian forces are using them as human shields. we have a live report on the growing crisis there. plus, we'll take a look at whether measures like banning big cups of sugary soda can stop america's obesity epidemic.

and a stunning new rule on the one of the most controversial cases in the world, did a dingo take a baby girl in the australian outback more than 30 years ago? jon: first, though, american families feeling the pinch of the recession. a new report revealing the housing crunch all but wiped out nearly 20 years of family savings and investments. some bad news to begin today. i'm jon scott. jenna: partying like 1992, says the fed. jon: yeah. jenna: remember where you were in 1992? jon: yes, i do. jenna: well, we'll get jon's full disclaimer coming up. we're glad you're with us, i'm jenna lee, and we welcome you to a brand new hour of "happening now." the stunning numbers from the federal reserve say it all. the average american family taking a huge hit, seeing a drastic drop in net worth from 2007 to 2010. jim angle's going to sort all

this out for us. he's live in washington with more. jim, do you remember where you were in 1992? >> reporter: oh, i'm afraid i do, but it was pre-fox years, so they don't really count. [laughter] the federal reserve study you're talking about looked at three years up to 2010 and found the net worth of american families has fallen dramatically as a result of the recession, down 39%, back to the levels, as you said, of the early 1990s. a full three-quarters of the drop was from housing which for many families is the biggest asset. the value plunged just as many had taken advantage of easy financing to buy more, in some cases, than they could afford. the fed estimates american lost $7 trillion worth of home equity over three years, and as mitt romney noted today, that's wreaking havoc with families trying to plan for retirement. listen. >> i was with a couple in wisconsin, they had a couple of duplexes they were relying upon to sell for their retirement,

but the values have collapsed. they wonder what they're going to do. with a barber who couldn't retire even though he's in his 70s because because of the losse net worth he had. >> reporter: the president, he said, needs to find out what's happening. median income for a family right in the middle of the income scale has fallen about 8% while retirement accounts based on stock investments have fallen 7%. there's one interesting comparison here, jenna, that is that incomes are 5.9% lower than when the recession officially ended in june 2009. and incomes have fallen more since the recession ended than they did during the recession itself. analysts say the decline is larger and longer than the one after the recession of 2000 when family incomes had fully recovered within 18 months. jenna? jenna: some interesting things to consider there, jim. we're going to be talking to one of the president's top economic advisers, gene sperling, later

on in the show. we thank jim for that round-up. the pre-fox years just don't count, jon. jon: i was working with bill o'reilly, i will give you that as a hint. jenna: interesting. [laughter] jon: now this fox news alert, the attorney general of the united states back on the hot seat for a second time this week. eric holder testifying before the senate judiciary committee right now facing tough questions over the botched fast and furious gun-walking operation among other things. as well as the pending vote in the house that could end with the attorney general held in contempt of congress. our chief congressional correspondent mike emanuel is live on capitol hill with all of that. mike? >> reporter: hi, jon. you guys played it just moments ago, senator john cornyn calling for attorney general eric holder to resign, holder made it clear he is not planning to resign anytime soon on the fast and furious investigation just yesterday, of course, he had chairman darrell issa in the

house saying his committee is going to move forward with a contempt of congress action against the attorney general. there was some discussion about that. take a listen. >> on what legal ground are you withholding that e-mail? the president can't claim executive privilege to withhold that e-mail. is that correct? >> i myself am offering to sit down with the speak beer, the chairman, with you, whoever, to try to work our way through this in an attempt to avoid a constitutional crisis. >> reporter: and so the attorney general said he was willing to compromise to see if he could work something out to head off that vote on contempt of congress in that congressional committee next wednesday. another hot topic, of course, has been all the national security leaks. a lot of critical national security information ending up on the front page of "the new york times" and elsewhere. republican lindsey graham of south carolina talked a little bit about the investigation into those leaks that's been

appointed. check this out. >> and all i'm asking for is for you to find be a lawyer in this country that all of us can say, virtually all of us can say that is the right person to do this job rather than you picking two people and telling us about how great they are. >> reporter: graham and senator john mccain of arizona have called for a special prosecutor, somebody not working for the federal government right now, somebody completely independent to look into these leaks, to follow them where they may. things got a little testy, some democrats defended attorney general holder. graham said when the shoe was on the other foot when the bush administration was in office, you were howling about national security leaks, you wanted special prosecutors, so why not now? jon? jon: oh, the debate goes on. interesting. thanks very much, mike emanuel, on capitol hill. jenna: well, we move from d.c. to a special election in arizona to fill the seat vacated by

former congresswoman gabby giffords. a former aide to giffords, democrat ron barber, is facing jest key kelly. barr we are was by giffords side when she was shot back in january of 2011. anita vogel's live in l.a. with more on all of this. >> reporter: hi, jenna. a big election really for so many reasons. first of all, it's a high-profile seat, secondly, it is the last congressional election before november, so the heat is on the democrats here to try to keep this seat. running as a democrat to replace giffords is her former district director ron barber. as you said, he was with giffords on the day she was shot and was one of 13 injured, having been shot in the face and the thigh. he says he's a moderate just like giffords and would focus on issues important to her. >> huing forward with employment and ending the foreclosure of

problems that we have in this region particularly, making sure that seniors on medicare and social security really do have the social security and medicare protected and not privatized as my opponent would like to do. >> reporter: barber's opponent is 30-year-old jesse kelly, a former marine and iraq war veteran who narrowly lost to giffords back in 2010 by 4,000 votes. he has in the past talked about privatizing social security but has scaled that talk back and really focused this time on attacking president obama. and in this rather unusual clip from the campaign trail over the weekend, he seemed to take aim at the barber campaign for emphasizing the link to gabrielle giffords. listen. >> try to exploit a tragedy to win an election is one of the saddest things i've ever heard or seen in my life. >> do you think that's what they've done? >> that's exactly what they've done. >> reporter: and we're not really sure exactly what he meant by that, but you heard the reporter ask, "is that what you've done?

is" and he said, that's exactly what they've done. so we never got a follow-up, not sure what he meant by that. in any case, he is trailing ron barber in the polls by double digits although remember, jenna, this is a republican district there, so analysts think perhaps it's going to be a little closer by the end of the night. jenna: we'll wait for those results, anita, thank you. jon: more bloodshed in syria raising concerns that government forces are preparing to launch another massacre. u.n. monitors in the region are trying to reach one very hard-hit town where many women and children reportedly are still trapped. conor powell is keeping an eye on it live from jerusalem. >> reporter: intense tighting continues across syria, particularly in the rebel stronghold of homs where u.n. officials say there are women and children trapped, and they are in the crossfire of the fighting that has just taken on new and more violent proportions every single day, particularly in the last few weeks with

rebels. u.n. officials say the violence in syria is intensifying daily. now, the u.n. also warning that syrian troops in pro-assad homes are using children as human shields, children as young as 8 and 9 years old are reportedly being forced to march along with syrian troops as they go house to house looking for rebels. there are also reports they've been brought aboard on military vehicles and military buses as syrian troops move around the country, that they're being used as human shields there, and there are also reported according to the u.n. that syrian troops and the syrian government are abusing and attacking and torturing children as young as age 9, 10 years old using whips and cables and in some situations even electrifying them. now, the british foreign minister, william hague, has said that military intervention does not seem like it's a possibility, it's still pretty much off the table according to him and other international

governmental officials from the u.n. and other countries. kofi annan, is u.n. special envoy, is still pushing a peace agreement, but that so far has not gone anywhere, and now he's trying to bring together the u.s., britain, france, russia and some other countries. he also wallets to include iran in a new contact group with these cups as well -- countries as well. however, the u.s. and other countries are reluctant to engage in conversations with iran. so right now the violence continues, jon, but there appears to be no diplomatic solution to it or solution to end the violence in syria. jon: it's really awful to watch that slaughter continuing, those people at the hands of their own government. it's just awful. thanks very much, conor powell. jenna: back closer to home, attorney general eric holder facing tough questions right now on capitol hill as senate lawmakers trying to get to the bottom of the failed gun-running scheme fast and furious and a string of national security leaks. up next, senator john cornyn who

just called for holder's resignation. he's going to be live with us right after the commercial break. jon: major developments in the trayvon martin shooting case as a special task force takes up florida's controversial stand your ground law. our legal panel weighs in on that coming up. >> now, since stand your ground there is no duty to retreat. this is a tremendous change in the law. ♪

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and in schools, replacing full-calorie soft drinks with lower-calorie options. with more choices and fewer calories, america's beverage companies are delivering. jenna: right now on capitol hill attorney general eric holder facing a barrage of questions from the senate judiciary committee about the failed fast and furious gun-running sting. this after a house panel scheduled a vote for next week that could end with the attorney general being held in contempt of congress. there's some limits of what, actually, that means. we talked about that a little bit with judge napolitano, and joining us now is texas senator john cornyn who just called for the attorney general's resignation. so, senator cornyn, why now?

>> well, unfortunately, it's been the culmination of stonewalling by the attorney general on the investigation into fast and furious, but now culminating with his attempt to place an obama campaign volunteer in the investigation of these leaks, these national security leaks that could well go to the very top of this administration. and the attorney general agreed with me that we need someone independent and nonpartisan to conduct this very sensitive investigation into two of our most classified programs dealing with iran and dealing with terrorism. but unfortunately, they all report to him, eric holder, and he's shown himself incapable of separating himself as a arm of the obama administration and an independent attorney general that's supposed to be the chief law enforcement for the country. jenna: so, senator -- >> so i think it's time for him to go. jenna: let me just stop you there because you have such a background in the legal field.

when you say something like you ask for someone's resignation, you know the consequence of asking for a resignation. you served a texas supreme court justice, and i just want to be clear on this, are you asking for the attorney general's resignation because of fast and furious, because of the national leaks, because of a combination of the way that he's attempting to handle the two? what's the reason? >> well, it's a combination of things. i worried that when attorney general holder was nominated that his conduct during the clinton justice department would won in strait his -- would demonstrate his inability to separate himself from covering for the politics of the administration, and i questioned his ability to demonstrate independence when it was called for as the chief law enforcement officer of the government. and unfortunately, everything i've seen since he was confirmed by the senate has demonstrated that my worst fears, in fact, have become true. because he's, basically, providing political cover for this administration rather than

doing the sort of nonpartisan, independent investigations. and now he appoints a political crony of the president, somebody who worked in his own administration and claims that it's an independent investigation, high-level, sensitive classified security leaks, and it's not. it's, in essence, part of the cover up, and it's unacceptable. jenna: let me play the response of the attorney general when you asked for his resignation. here's what he had to say. >> if you want to talk about fast and furious, i'm the attorney general that put an end to the misguided tactics that were used in fast and furious, an attorney general who i suppose you would hold in higher regard was briefed on these kinds of tactics in an operation called wide receiver and did nothing to stop them. nothing. 300 guns at least walked in that instance. i'm also the attorney general who called on an inspector general to look into this matter to investigate this matter.

i'm also the attorney general who made personnel changes at atf and in the u.s. attorney's office that was involved, have overseen the changes of processes and procedures within atf to make sure that this doesn't happen ever again. so i don't have any intention of resigning. jenna: the attorney general there talking about mostly about fast and furious. if the intention, senator, is to solve the questions left unanswered that some have about fast and furious and to solve the questions about the implications of these national leaks that are taking place, then how will eric holder's resignation solve those issues for you? >> well, if eric holder won't conduct an independent and nonpartisan investigation into things like fast and furious and these national security leaks, then it's time for him to quit and let president obama appoint someone who will. eric holder has refused to cooperate with a congressional oversight investigation conducted by chairman issa and

senator grassley. in fact, they've misled congress by claiming that the fast and furious program did not exist in february 2011, and it took them nine months for them to come back and correct that and acknowledge it existed. but they've still refused to produce documents which we know will demonstrate knowledge of this gnawed program of letting 2,000 -- this flawed program of letting 2,000 high-caliber weapons walk into the hands of the drug cartels. we can demonstrate that high-level justice department officials know about it, but there's been no accountability and, unfortunately, he's just obstructed the congressional investigation to get to the bottom of it. jenna: so, senator, of course, we've talked about this house panel potentially holding eric holder in contempt of congress. judge napolitano was on our show last hour, and he said if the attempt is to get the documents in question, there might be an easier way to do that. right after the break, we'll talk about that. thank you, sir, we'll be right

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jenna: what you're seeing there on your screen is attorney general eric holder testifying again in front of the senate judiciary committee. rejoining us now, senator john cornyn. i left off with this question, i'll set it up for our viewers. lawmakers want additional pages from the department of justice fast and furious, the doj isn't providing them. this is why some of your colleagues in the house are threatening to hold eric holder in con cement of congress. as you know as a judge, it could take jeer years for the doj to cough up those documents. why not ask a federal judge to examine which documents the public should see with the hope that we'll all have answers faster? why not try that route? >> well, i do believe that the

obstruction we've seen from the attorney general is an attempt to delay the truth coming out until after the election. so it is politically motivated. i think another lawsuit would actually take longer, ultimately, you know, as you said given my background as a judge for 13 years. so i think the easiest and most expeditious way to get to the bottom of this would be for eric holder to come clean. so far he's defied the subpoenas of the house of representatives. today for the first time he said rather than have a constitutional crisis, then, you know, i'll sit down and work this out with the house of representatives and with the senate. it won't with a constitutional -- jenna: he is offering to sit down now and talk to anyone face to face. so do you think this has gotten too personal and too emotional to be effective, to solve this situation effectively just between adults? >> it's not personal. it may be emotion here because i

think people are genuinely angry, and i'm one of them, that the attorney general has held no one accountable for this gun-walking operation that took the life of brian terry, a u.s. law enforcement agent and perhaps many other people as well. and he won't hold himself accountable. and that's what we're talking about here, is accountability. jenna: senator cornyn, a pleasure to have you today. thank you for stepping out of the hearing for us, we appreciate it. >> thank you. jenna: jon? jon: a proposal to ban large sugary drinks in the big apple. the board of health holding the first public hearing today on that measure proposed by mayor michael bloomberg. it's really just the tip of the iceberg of government efforts to fight obesity, but would this kind of ban really make a difference in the battle the country is facing? the dr. richard fur shine is an author and the director of ther if shine center for comprehensive medicine here in new york city. the idea is that you ban drinks, doctor, what the hay your wants the board of health to do, ban

sugary drinks larger than 16 ounces. do you think it's a good idea? >> with when you start to think about -- when you start to think about how much sugar is in these drinks, yeah, it makes some sense. in one 16 ounce o container of sugar, there's over 16 teaspoons of sugar. when you look at these big gulp, these large 54-ounce sugary drinks, they can have 50 teaspoons of sugar. i don't think most people understand how serious it is. but what they're doing now is making a statement saying we need to start somewhere, and we need to educate people on the problems that we face as a nation. jon: the california school board or the legislature in california mandated that that state reduce the amount of junk food that its students eat, and as a result california teens are now consuming, according to the study, 160 fewer calories a day, roughly equivalent to a small bag of potato chips. clearly, these kinds of efforts

can help, but it's not the be all, end all of the problem. i mean, parents have a role here too, don't they? >> well, they have a huge role in this problem. when you come home, that's when most of the food consumption actually fall into sort of total disarray. we need to educate parents on how to teach their children how to eat, we need to make sure that people understand what their calories mean. one of the studies that was done, one of the studies at johns hopkins public school of health, they actually provided people with information they could use. they put up posters and said if you eat this much food or consume this much sugary drinks, particularly, for instance, one can of coke, you would have to exercise about an hour to burn that off. and i think when they did that, they found there was a 50% reduction in the amount of calories that those people consumedded. so if we educate people in terms of what exactly it is that they're consuming, if we find out the ways that we can educate people, i think we can make a big difference. jon: in december of '06, this

city, new york city, put in a ban on trans fats, using trans fats to deep fry foods, for instance. according to the city, restaurant trans fat use dropped from about 50% of fried products to less than 2%. new york sort of has become the leader in this kind of thing. all kinds of other states and municipalities have followed on, you know, despite the complaints that this is nanny government. >> right. jon: is it ultimately going to -- >> yeah. it's going to make a big difference. the ban on trans fats, this is an artificial form of fat that was put into our food. it had a certain flavor texture that food producers liked, but it increased levels of heart disease and diabetes. this is not the kind of food that we want to be consuming. we want to educate people not only about the things they shouldn't be eating, but also the things they should be eating, more greens, more fruits ask vegetables, healthy grains.

jon: okay. then why not educate them and let them make their own choices? >> we are doing that. and i think part of the process is putting it out into the public and saying this is the amount of sugar that's in a container of soda. at that point there is a public debate, and we do have a chance to sit back and say, well, is this something we want to do as a society or don't we? i think people are becoming educated, and when they hear how much sugar is actually in there, you know, i was in a restaurant the other day the entire -- for the table there were about 20 packets of sugar in one of those little containers on the side, and you think about someone containing 50 packets in one soft drink, i don't think people understand how difficult it is to get that sugar off once your body has converted it to fat. jon: yeah. >> your body takes sugar, turns it into fat -- are. jon: and then you've got to live with it. doctor, good information, thank you. jenna: the wildfire in northern colorado continues to spread today.

adam houseley is live at the scene. adam? >> reporter: yeah, jenna. more than 43,000 acres have now burned. by tomorrow nearly 800 firefighters will be on the lines, but there is some good news coming for fort collins, colorado, and we'll have that coming up after the break. ...more talk on social security... ...but washington isn't talking to the american people. [ female announcer ] when it comes to the future of medicare and social security, you've earned the right to know. ♪ ...so what does it mean for you and your family? [ female announcer ] you've earned the facts. ♪ washington may not like straight talk, but i do. [ female announcer ] and you've earned a say. get the facts and make your voice heard on medicare and social security at earnedasay.org.

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>> they do you have empathy for those in the path of this fire. take a listen. >> that remains our primary concern. a lot of people have been displaced there their homes, evacuations have been significant on this fire. and so just want to pass on my sympathy and empathy for those folks and recognize that that is our priority. they are working with us to get information out to those folks. >> reporter: meantime, the other major fire burning in the west, there are 18 fires, two of them major. the little bear fire, firefighters there are also making good headway thanks to better temperatures and lower winds, jenna, but as you can tell already a major fire season in the west. states are providing support for colorado and new mexico, but at the same time they're watching their own backyards. jenna: adam, thank you very much. jon: new developments related to the trayvon martin shooting case. a task force set up by florida's governor rick scott is holding its first public hearing on the so-called stand your ground law,

the law at the center of george zimmerman's defense states that a person can use deadly force if he believes that his life is in danger. trayvon martin's parents attended the hearing and demanded the law be repealed or modified. lis wiehl is a fox news legal analyst, defense attorney rebecca rose woodland also joins us. lis, what did the law do or offer to people that wasn't available in the law before? >> right. what it means, jon, is in florida and many other states as you just said, if you are in if a public place -- not just a private place, not just your home, something else, a public place -- and you feel like someone is coming to you, being aggressive to you, you do not have to retreat. that's the keyword, you do not have to retreat. you can fight aggression with aggression, and that's what they're talking about in these hearings. jon: but, rebecca, i just wonder

if now is the time to be holding them. shouldn't we let the trayvon martin case, the george zimmerman case be adjudicated? >> you know, it's a great question and a big issue down in florida. there had been another haring held by senator -- hearing held by senator chris smith of florida. now the governor, governor rick scott, has decided there's so much public outcry, he'd like to hear from the people, hold a hearing. apparently, according to the trayvon martin family they have 300,000 e-mails asking for repeal. signatures on a petition, e-mails supporting that. don't know if that's true, but i think he feels now is the time to at least get some public interest and sentiments and at some point thereafter they'll look at repealing or modifying the law. >> but the law's still applicable. >> yes. >> what happened that night, we don't know what happened, we can't adjudicate it on television, whatever happened that nigh, the stand your ground law applies. as lax as it was, it doesn't

apply to zimmerman. if i'm prosecuting, i say because zimmerman went beyond that. he did not just not retreat, he went after trayvon martin, and that's the key legal question. jon: all right. we're going to have to leave that one there and see what florida decides and what comes out of this public testimony. but we wanted to bring up this other case. it's about the girlfriend of accused mobster james whitey bulger. she faces sentencing today for helping to hide one of the fbi's ten most wanted fugitives. katherine cregg was captured, pleaded guilty to charges including harboring a fugitive. she faces a maximum of 15 years in prison. bulger is still behind bars awaiting trial this fall on charges that he participated in 19 murders. her attorneys are saying 27 months would be more like an appropriate sentence. rebecca, your thoughts? >> my thoughts are here we just had the hearing, apparently the

judge took a bit of a break. he says that the maximum sentencing now he's reduced to nine years, but he is considering looking at the guidelines which would bring it between 27 and 36 months. the defense is arguing she pled guilty, she did not try to back off from the situation. she was in love with a man who she believed was robin hood. he did not believe he did any of the negative criminal things, she thought he was just running and moving money from the bad to the good. is that true? i don't know. but she did plead guilty, so the defense is basically saying, look, give us the guidelines anyone else would get in this case. don't look at whitey bulger. she didn't do anything, he did. she just lived with him and loved him. >> no, and she did not plead guilty until after 16 years of the feds trying to find him. now, if they want to shed it down from 10 to 9 years, i'm okay with that. you've got to send a message.

she knew what he was doing, rebecca, come on. >> you know, lis, she's saying she wasn't with him at the time of all the alleged murders and criminal activity. she was with him in the last ten years -- >> ten years of hiding. >> ten years of hiding, but she wasn't with him during the time he committed all the alleged murders and criminal activity. >> she pled guilty. jon: lots of murders attributed

to that guy, and be i would have loved to have heard their conversations. no, don't -- you can't use your real name on a check. anyway -- lis, rebecca, thank you both. jenna: for more than three decades one australian couple insisted that their infant daughter was dragged away by a wild dog. now a final ruling in this 30-year-old mystery. we have a live report with that update just ahead. c'mon dad!

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jenna: it's a missing baby case that inspired a movie, and sent a mother to prison, but now 32 years after a nine week old girl vanished from her parents' tent in the australian out back the mystery is finally solved. julie banderas is live with the story now. juliet: >> reporter: it turns out a dingo did take the baby. investigators finally coming to that conclusion, unraveling a more than 30-year-old mystery today. the missing infant case baffled

investigators, divided australians and eventually landed the mother of a nine-week old baby in prison. the case became famous internationally through this movie in 1988, it was called "a cry in the dark" in which meryl streep played the mother. her parents maintained from the very beginning that their baby had been take friend a dingo after she vanished from an out back campsite back in 1980. the first inquest in 1981 also blamed a dingo, but a second inquest a year later charged chamberlain with murder. they convicted lyndy of slashing her daughter's throat and making it look like a dingo attacked. she served three years in prison after the verdict was overturned. a third inquest left the cause of death open.

a coroner today determined that a dingo or wild dog took the baby in the desert. it brought lyndy to tears telling reporters outside the court, we are relieved and delighted to come to the end of this saga. jenna: 30 years in the making. jon: americans lost a huge portion of their personal wealth over the last few years. how do we get it back? one of the president's top economic advisers joins us live next. [ male announcer ] it's back again at red lobster,

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jenna: back to one of our top stories today being the economy of course. a new report revealing just how hard americans were hit by the housing crisis and by the recession. the median net worth of an average family dropping to levels we haven't seen since the

early 1990s, that's if we look from 2007 to 2010. we look like we have wealth levels of what we saw in 1992. so let's remind you of what was happening back in 1992 in this country. unforgiven won best pictures at the oscars. eric clapton's "tears in heaven" was the song of the year at the grammys. the average price of gas $1.87. an average price for a new home adjusted for inflation over $236,000. we tried to find a picture of your next guest back in 1992 but facebook did not exist back then. jean sperling is director of the economic council and assistant to the president for economic policy. probably best to not have any of our pictures from 1992 up on the screen. >> i would love to have a picture of me from 1992, i would be 20 pounds thinner, and my hair was dark. jenna: we look forward to sharing that with our viewers any time. any time you want to share that

photo we'll take it. a group was looking at this and analyzing some of the numbers and they said as recen recently as april household income was 6% lower than when the recession ended. we are still not repairing what happened during the last couple of years. how do we fix that? what do we do? >> let me make two very important points. obviously the numbers you are talking about are a tough and brutal snapshot of this financial crisis and housing bubble that this president inherited, and it shows, it's just another sign of how much damage was done from the recklessness that took place in our financial system previously to typical american families. it is important to note that that is a snapshot of what took place up until 2010. the federal reserve also has additional information in their flow of funds that looks at what's happened to household net wealth since the end of 2010,

and while it's not good enough, there is good news that you have seen a substantial share of what you've reported as lost wealth recaptured over the last year and a half, and that really just shows, getting to your second point, that we've got to fight this on all fronts. first of all, one thing we should not be doing is we should not be trying to repeal wall street reform as some of our republican friends are, so that we make sure something this devastating never happens again. and secondly, we ned t need to do everything within our power to help more families recapture the wealth that was lost. there is some other positive news, ira's and 401k's the total amount is higher than it was before the crisis. i'll give you an example where we could all come together on and help. the president is supported universal refinancing. jenna: i'm going to run out of time and i'll let you bring up that thought in a second.

the president has expressed frustration with congress for not doing more on the job plans he's out out there and job proposals. congress seems to be acting the way it is. what is the back-up plan? if congress doesn't take up some of this stuff, what are the new ideas? >> i think one of the things is to press people on the things that are so bi-partisan, so common-sense that it's too hard for them to say no. and the one i'm just speaking of, universal refinance, i don't know any republican families paying 7% on their more tpwapblg thamortgage that won't rather save 3 or $4,000 baby 3.5%, 4% on their mortgage. we offer taking the barriers away from refinancing, that would help this economy. the president last year proposed cutting payroll taxes in half for small businesses. that's been supported by people like michelle bachmann before. that would have an instant on job growth and wages and our economy right now. the president has another proposal to cut taxes for small

businesses for the additional amount that they are hiring, or adding wages this year. proposals like that that are absolutely bi-partisan, have often been endorsed by republicans. we are supporting those together and also bringing teachers back. how can people who say they are concerned about the economy say no to every idea, no matter how common-sense or bi-partisan or even proposals at one point proposed by republicans. jenna: we have heard some of those ideas, we look forward to having you back to talk about them. the president has a big address in ohio. one of the big questions is whether there may be new ideas presented by the president or not. we look forward to having you back, maybe even this week to talk about those ideas. thank you for your time today and we'll be right back with "happening now." >> thank you. wake up!

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jon: sad news about a hollywood icon, one of the last surviving members of the cast of "gone with the wind" has passe