minutes here. martha: one of our favorite times of the week. bill: we don't know where brian's head is. martha: "happening now" starts right now. we'll see you back here tomorrow. have a good day. jon: top democratic strategists record thely out with a new warning. the president's campaign message, they say, not resonating with voters. karl rove is here with his take. jenna: jon, how did one wall street firm manage to lose $2 billion in a matter of days? that is the big question. head of jpmorgan chase taking tough questions on capitol hill. what jamie dimon is saying about the health of our country's big banks. jon: also a nice hike ruined big-time. a man severely mauled by alaska's version of a grizzly bear. we have the chilling 911 call and the whole scary story. all that plus breaking news "happening now.". a fox news alert. right now on waking up

without a home. that is the devastating reality for hundreds of families out west where those wildfires continue raging out of control in several states. good morning to you, i'm jon scott. jenna: we've been covering the story for you. one of our top stories last couple days. they can't get a handle on it. jon: so dry out there. jenna: hi, everybody, i'm jenna lee. those deadly fires burning near fort collins, colorado, are barely contained. it has already burned through an area the size of washington, d.c. we have new video from high park. crews are working round-the-clock to put out flames that destroyed at least 100 structures already and took the life of one woman. also you have just thousands of residents being driven from their homes. take a listen. >> if it crosses over the river and it might already, the puter and gets on the backside of glacier view, we have big problems. all the dead timber as you

can see will go up. >> you know it is serious. it's a monster. jenna: it's a monster. hundreds of miles to the south firefighters in central new mexico battling another massive inferno there. some 37,000 acres already gone. more than 200 homes destroyed and more people left with nowhere to go. >> it was hard to believe that it was standing three hours before and then it was gone. >> just total devastation. a lifetime of work. it's, and at other age it's going to be hard to physically redo it. >> that thought, you know, you just cry. jenna: just breaks your heart, doesn't it? our thoughts and prayers are with all affected by the fires. anita vogel joining us from los angeles with more on this. anita? >> reporter: hi, there, jenna. it is that time of year. there are fires burning all over the west. 19 fires in nine different

states. the most troubling one is the one that you mentioned that high park fire. that is burning just to the west of fort collins, colorado. it started saturday apparently from a lightning strike. so far it has spread to 68 square miles, destroying about 100 structures. also killing one person, a 62-year-old woman who died in her cabin unable to escape the flames. her relatives say she didn't receive the evacuation order in time. now containment is low but firefighters say they're optimistic for the first time. >> we've got 10% containment and that's where it starts. every day that containment number will go up as we begin to tie the lines together. crews are working very hard. in particular our structure protection group. today interior burn, they were actually able to save homes. >> we feel we're getting our feet solidly under us. i can tell you as the county sheriff i breathed a sigh of relief today as i saw the progress the crews made. the 10% containment you heard about.

this fire still has a lot of potential but that is certainly welcome news. >> reporter: to the south in new mexico what is being called the little bear fire in the southern part of the state has already charred 56 square miles and destroyed miles and destroyed 224 homes in an area called the lincoln national forest. this one also started from a lightning strike over the weekend. firefighters may be getting the upper hand on this blaze. as of last night it was 35% contained and they're looking to make more progress today. we know that president obama has reached out to the colorado governor to assure him that federal aid would be on the way. we also understand he tried to reach out to new mexico's governor, suzanna martinez but he was unable to connect with her because of poor conditions in the fire zone, jenna. so hopefully that will improve today and they will be able to connect over the phone. back to you. jenna: we definitely hope for improvements on this. more developments as we get them. anita, thank you very much. jon: right now the chief

executive of america's largest bank is testifying on capitol hill. jamie dimon explaining how jpmorgan chase lost more than $2 billion on risky trades and whether the bank failed to properly manage those risks. the hearing delayed by some protesters angry about foreclosures. we're told six of them are under arrest now. dimon expected to tell the panel the bank has taken steps to prevent such losses from happening again and a new executive is running the investment operation responsible for losing all that money. the bank is also investigating what went wrong. if you want to watch his testimony live it's streaming for you on foxnews.com. we are your election headquarters here at fox news channel and today we hear a top democratic strategists sounding the alarm saying the president's economic message is out of touch with voters and could spell real trouble for mr. obama's re-election chances. a memo from democracy core,

a research group headed among others a guy that helped get bill clinton elected, jims carville reads we will face an impossible headwind in november if we do not move to at that new narrative one that contextalizes the recovery and more importantly focus on what we will do to make a better future for the middle class. we know there is new normal where life is a struggle and convincing things good enough for those that found jobs is a fool's errand. karl rove, former senior advisor and deputy chief of staff to president george w. bush. he is also a fox news contributor. what do you think about james carville's ad there, karl? >> i thought it was interesting. it let ace put this in context. the president's team is following basically a message that has two elements to it. one is, things are getting better and the steps we took are helping to get better. the second one is you can't

trust mitt romney because he is looted and pillaged companies when he was a private equity guy. what carville and greenberg are saying is, drop the emphasis on your performance, mr. president and instead say, look i realize things are really, really tough and here is what i will do in the future to make them less tough. incidentally, mitt romney is out of touch as they tested three different messages the one that carville and greenberg think work best is accuse romney wanting to end medicaid and medicaid and social security. to eliminate teachers, firemen and policemen at the local level and to change, to cut medicaid deeply. i mean you know, there is difference in nuance here but they both have the same message which is, you know, gut romney and try and find some way to explain yourself out of the bad economic condition we're in. jon: the president is supposed to sort of hit the economic reset button

tomorrow with this speech he plans to make in ohio. that's where we hear he is going to argue he needs more time to effectuate change. will voters give it to him? >> well, that is the big question of the election and the point of the democracy corp memo, it is available online, president don't say things are getting better, tell us what the heck it is you're going to do. this advice came to the president earlier this year from rahm emanuel, mayor of chicago and his former steve of staff said it is not simply enough to blame other people for difficulties you're in and tell people what you've done. you have to tell people what you will do for them in the future. jon: what about, isn't this the same president who said on national television in 2009 that if the things don't improve in the economy, he will be a one-term president? >> yeah. that's right. look, he has a couple of things he is going up against. one is, you're right he said we would get better and made a series of specific promises. for example he said on

january 10th of 2009, if you know exactly, if you want to know exactly what will happen if we pass the stimulus take a look at this report from jared bernstein, christine romer, two of my staffers on incoming white house staff. it projected unemployment today would be 5.7%. you know, he said if we spend the trillion dollars it will give a big jump-start to the economy. we have the most anemic recovery of any 10 recessions since world war ii. we are about $4500 per capita gdp below where we would be if we had average recovery. we've got about 13 million fewer people working. and then, you know, just the reality where we are. one out of every six americans is unemployed, working part-time but desfratly trying to get full-time work or so disgorged they dropped out the workforce. we know some of these people. they're friends, family, neighbors, former business colleagues. we know people find themselves in that situation. so is hard for the president to run against reality to say i've done my best.

be satisfied with what you've got. jon: karl rove, carl, thank you. >> you bet. [explosions] jenna: right now new amateur video out of syria showing the city of homs once again under attack. rockets ripping through buildings there. rebels are still clinging to the city while activists say week of shelling on another city forced the opposition out. syria is accusing our country, the united states, of interfering after washington expressed concern that the assad regime is planning yet another massacre of civilians. if that hasn't already happened. connor powell live in jerusalem with more. conor? >> reporter: jenna, both sides appear to be gaining new equipment in the fight in syria. u.s. secretary of state hillary clinton accusing russia of sending attack helicopters to the assad regime to use on syrian civilians and the rebel

groups in syria. now the assad regime and russia deny they're using these type of tactics, targeting civilians and things like that in syria but syria is basically saying to the united states to stay out of the internal affairs of syria and to stay out of this conflict. now it appears also that the rebels are getting new equipment. there are reports of new aks and anti-tank missiles that they're using on the syrian military. part of the reason why the syrian military is starting to rely more and more on helicopters is to reduce ground casualties for the syrian military. all of this comes as the united nations is declaring that syria is in a civil war. that is a term both the rebels and the assad regime both really do not like. the assad regime think it cheapens what they're doing. they argue they are essentially trying to secure the country and that they're fighting terrorists. the rebels don't like the word civil war because they think it pits two equal

sides against each other. they say they are essentially outmanned and they're not an equal against the assad regime because they're fighting a dictator. but the u.n. is declaring it a civil war. and u.n. peacekeepers have been attacked in syria in the past 24 hours. they were trying to get to the site to check on a possible attack there. u.n. peacekeepers were attacked. they had rocks thrown at them and they were turned away. all of this has created an atmosphere where more weapons are entering into syria. the u.n. is being attacked. there are real fears, the eyes and ears, the u.n. who have only access to the country they may not be able to bring information out of syria and attacks and mass curse will only continue and get worse. jenna. jenna: regardless of the word choice, there is something happening inside the country, isn't there, conor, and people are dying. conor powell thank you very much for that. we'll talk a little bit about the money trail.

there is a lot of money flowing into syria and a lot of questions about who that money is coming from and where it's going. we'll talk a little bit about that in about 10 minutes from now. jon: look forward to that. also president obama prepping for a key economic speech. what will he say? how do americans feel about the president's performance on the economy? we have some numbers and a fair and balanced debate coming up. jenna: those numbers have dollar signs attached to it. there is painful testimony still going on and will be going on for the next several weeks of the trial of jerry sandusky. a young accuser breaks down on the stand and so do some of the jurors. we'll have a live update from the courthouse coming up. jon: also a bear attacked him and he survived. what happened when a hiker wandered a little too close to a mama bear and her cub. >> i was mauled by a brown bear. >> do you need an ambulance? >> yes. i'm bleeding bad. >> okay. where are you bleeding from? >> my back, my neck and my lower back.

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jenna: what a story we have for you next. a chilling plea for help. 9-1-1 tapes just released of an alaska man mauled by a brown bear. rick folbaum is live in our newsroom with more on this. rick? >> reporter: this is something, jenna. not the kind of hike the guy had on his mind when he left sunday morning. he went on a local trail not far from his home in anchorage. he was three miles into the hike when he came face-to-face with a brown bear and her baby cub. he tried to kept his distance with a ski pole. he was mauled by the animal, suffering serious wounds. when the bear backed away he quickly climbed up the tree. he got 30 feet up and fished for his cell phone and call 911. he tells the operator where

he is. that he has been mauled. he need an ambulance and then the call drops off. he loses the call. so he called back. take a listen. >> 911, where is your emergency? >> hi, i'm the guy just got mauled by a brown bear. >> okay. we're getting paramedics on the way. they will come start -- >> i can hear the brown bear still huffing in the trees. i was able to climb a tree so i'm high up in a tree as i can get. >> okay. go ahead and stay in the tree. okay, stay in the tree if you can hear it, okay? >> how long do you think it will be until they get here? >> it will be a probably a little while. we have no troopers on but he will come as quick as he can. >> i think i'm bleeding quite a bit. >> reporter: no troopers on is not what he wanted to hear. they eventually got to him in two hours. he needed a lot of stitches to cover up the wounds. he will be okay. he was lucky to be alive and

lucky to have the cell phone on him. jenna: a lot of luck in the story. not lucky stumbling upon the bear. >> reporter: everything after finding the bear was lucky. jenna: the initial, not so good. lucky after. we're glad he is okay. rick, thank you. jon: right now testimony is underway on day three of the alexander sex abuse trial. father of mike mccreary heading through the witness entrance this morning. yesterday his son testified in no uncertain terms he saw the former penn state football coach assaulting a child in the locker room showers there. david lee miller is in the courthouse in bell font, pennsylvania. with the latest. >> reporter: jon, mike mccreary was a very effective witness for the prosecution. he was on of the stand yesterday for 2 1/2 hours. we have to keep in mind he has a unique role in this trier. it was mike mccreary who went to joe paterno and described seeing a sexual assault involving sandusky.

that led to a series of events at penn state including the fire of the coach. yesterday mccreary told jurors what he saw. he left nothing to the imagination. he said and i quote him now, speaking about sandusky and child he was with. quote, both saw me. we looked directly into each other's eyes. at that point i left the locker room. the boys with prepubescent and came up to my chest height and was 10 to 12 years old. the defense was ineffect i've trying to discredit mccreary. short time ago his father testified essentially corroborating the story. he called his father after witnessing that alleged sexual assault. just a short time ago on the witness stand, jon, another alleged victim of sexual abuse. this victim testified to something we have not heard before in this trial. he said that jerry sandusky told him if you ever tell anyone what happened i will make sure you never see your family again. jon? jon: wow! david lee miller in pennsylvania.

david, thank you. well the fighting in syria, some are calling it an all-out civil war. a day after the united states accuses russia of arming the assad regime with helicopters to use against their own people. russia denies that. hitting back with accusations of its own. a look where this battle could be heading. jenna: a big question after 15 months of all that fighting. also, that's a plane on a highway. that is not your plane, is it? jon: no, it is not. jenna: where were you yesterday afternoon? jon: it wasn't me. jenna: we'll get that answer from jon. how did the aircraft end up here next up on "happening now." so anyway, i've been to a lot of places.

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jenna: just a little bit of

a money trail to follow here in this next story. so we'll try to walk through it as easily as we can. the foreign minister of russia came out a few moments ago is now denying that his country is sending attack helicopters to syria. this as moscow is accusing the united states of arming the rebels there on the ground. this follows the day after the obama administration accused russia of supplying helicopters to the assad regime. secretary of state hillary clinton is very concerned about what that could lead to. >> we are concerned about the latest information we have that there are attack helicopters on the way from russia to syria, which will escalate the conflict quite dramatically. jenna: we reached out to the state department real quick here to get clarity on that statement. russia has been supplying helicopters to syria for years. whether the secretary of state meant new equipment or supplies that is another question. jonathan schanzer with the

foundation for defense of democracies. he is the author of, al qaeda's arm miss. nice to have you with us. this is a big topic. let's follow the money here. why is russia involved with syria to begin with? >> syria is the russian's cash cow. russia has been losing arms markets around the region. toppling of libya. ussr was prime purveyor of arms until the united states came in in 1991 toppled iraq. last real remaining base the russians have is in the western town of tartose a part on the mediterranean coast in syria. the russians have 600 people there refurbishing that base. this is their primary client and they do not want to lose it. jenna: as we mentioned we know russia has been doing this for a long time though. secretary of state coming out yesterday saying she is concerned about this. do you think there is a strategy involved?

is there a precursor to potentially a no-fly zone being established? what do you think is behind this concern now? >> i think now that they have specific intelligence i think it has a little bit more poignancy to it. let's put this in perspective. the russians provided 78% of all arms to the syrians between 2007 and 2011. that included fighter aircraft, light aircraft, missile systems. so what we have right now is a specific and credible report that the u.s. can release that sort of shames the russians. i'm not sure it will work though. jenna: jonathan, if we cut off russia from syria, i don't even know if that's possible, if that relationship is broken, would the assad regime fall? >> well i think it is a serious crutch for the syrian regime. i don't know how we can cut off the russians. the russians are pretty brazen about this. they're not interested in curtailing this relationship because it is so lucrative. but the other crutch that the syrians lean on is the

iranians. they have been providing assistance on the ground, personnel and even some fighters. the irgc in particular. that is the other leg we need to kick out from under the syrians if this is to stop. jenna: let me ask you about another item that the secretary of state covered yesterday. she said she is increasingly concerned about obviously what is happening in syria but that there is a lot of money just flowing into the country and she said there's many arab countries involved that are also arming the rebels. if russia is arming syria, and you mentioned iran also arming the government of syria who is at play with rebels? is what russia said about us today is true or is there somewhere else we should be looking? >> we haven't seen the united states providing direct support for the syrian opposition. we've seen reticence from the white house. we're seeing qatar and particularly saudi arabia, i published a piece in the "weekly standard" we note there is campaign underway saudi clerics are raising millions of dollars

funneling it through terrorist organizations and going to the syrian opposition. i think you will see a lot of arab money flowing there. don't forget. the saudis are not fans of the russians. this is proxy battle between the saudis and russians. jenna: real quick, if all the saudi money is flowing into terrorist organizations any threat to our national security? >> remember the saudis funded the mujahadeen in afghanistan in the 1980s. imagine if this is the new front and they're pouring money and personnel into syria you have a potentially dangerous skree hadi front brewing in syria and this is a major concern. jenna: that brings us to a whole new conversation what we do next. we'll have you back for that conversation. i appreciate your insights as always. thank you so much. >> thank you. jon: new information on a dramatic emergency landing as a small plane touches down near a highway in florida just a couple hours ago. the pilot saying he had mechanical issues. that's what prompted this emergency landing. amazingly the single engine

plane did not hit any cars. no one hurt. all turned out well. president obama set to speak out on the economy as new numbers show a lot of americans are feeling left out of the so-called recovery. will a new speech help or hurt mr. obama with voters? we'll get into a fair and balanced debate next. burger king serving up a barbecue menu for the summer. how does that look, jenna? jenna: it actually looks pretty good. is that bacon? jon: that is bacon. how about it? jenna: how many calories are in that thing? jon: what about mayor bloomberg

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? jon: president obama set to make a key campaign speech on the economy tomorrow in ohio. our own ed henry reporting there will be no new policies laid out in what the campaign is calling a framing speech. mr. obama expected to say he needs more time to fix the economy. now compare that to what he said back in 2009. >> at the start of my administration, one nice thing about the situation i find myself in is that i will be held accountable. you know i have got four years. i think people are going to see that we're starting to make some progress but, there is still going to be some pain out there. if i don't have this done in

three years then there will be a one-term proposition. jon: this comes just after we learned the net worth of american families plummeted over the last few years. and a piece in the "national journal" questions whether middle class americans are feeling neglected by the president. it says the perception of the president is that he is spending a lot more time coddling the very poor, uninsured and very rich, wall street than he is the middle class. also a new poll find mr. obama's economic plan is viewed unfavorably by 50% of those polled. compared with 47% for governor romney's plan. so let's get into a debate here. mary cat lynn ham -- katherine ham with "the daily caller". and juan williams, a fox news political analyst. juan, the question all this raises is, has the president lost the confidence of the middle class? >> not by a large margin. as you saw in the poll numbers, the american people are worried about the economy and have anxieties

about their own standing their job, their pension plans, what is going on with the european debt crisis. everybody is a little nervous about the economy. the question is how can the president distance himself from mitt romney? mitt romney has been climbing, jon, in terms of the perception that he is the one that can handle economic issues and do so better than barack obama. in this speech that he will give thursday at cuyahoga community college in cleveland he has got to make the case that he is about retraining. that is why he is going to a community college. he is about educating america. he is about making sure that there are jobs for americans. he is about lending. getting banks to lend. that is focus on middle class you will see coming from the president tomorrow. jon: interesting, mary katherine, right track, wrong track surveys, generally most americans think the country is on the wrong track. the president's job approval ratings are not, well, they're below 50% generally. >> yes. jon: but most americans still like him.

can he turn that personal magism or whatever you can't to call it, can he turn that into a victory at the polls? >> people are generally receptive to obama. he always had a good record being able to talk well on the stump and make con vin some of those folks. things are really, really tough. they have skepticism about mitt romney but barack obama found out in the general election it picked up this is about him and his record. people look at their lives and they do not see the forward momentum that he feels in the economy, that he talked about when he talked about the private sector allegedly doing fine. that is why that is a problematic statement for him because people don't feel it in their lives. there is this new report out from, from james carville and greenberg, i think they have done him a favor, giving outside voice and some research to what tends to be a bubblized obama team sometimes and say look, your message isn't working. he has to refine it. i'm not sure this is going

to cut it. what i'm hearing from the preview of the speech doesn't sound like a big change of the narrative. jon: juan, what about the wisdom of that? going to ohio, obviously a very important state. seems like you have to win ohio these days if you want to win the presidency. going back to ohio for the umteenth time to make a speech but according to ed henry, our chief white house correspondent, the speech will not contain anything new? >> i don't think there is a need for something new or radical. i think it would smack of desperation at this point here. the key here is the president to make the case we're on upward path. the trajectory is in the right direction. the american people, again especially middle class can anticipate things are getting better. in baltimore the other day the president said the recovery is apace. it is in fact just about the same rate that we saw back in '91 or 01 when when economy hit slumps there. the hole has been a deeper hole. that's why that piece of tape you showed at start of this he said it is a three-year proposition to turn it around.

i think everybody knows this recession has had a major impact on us all. it has been far deeper than we thought it was going to be and far slower getting out. jon: mary katherine i don't want to disagree with my friend juan williams he said things are headed in the right direction. if i read those unemployment numbers recently that doesn't look like the direction we want to head in. >> i think that is the problem for the president because he wants to say look, there are markers doing better. my plans have worked in some way. he wants to make that argument but what he is losing to middle class people who go, i'm looking around and this is not on the upswing for me. that is genuine problem for people in battleground states like ohio. if you look at the studies people don't believe things are going up. health care prices have gone up since he passed obamacare. their grocery prices have gone up partly due to quantitative easing. the fact that commodity prices have gone up. gasoline prices have gone up. he refuses to do anything with keystone. people see a link between those. they go look, he is not doing what will help me and i think greenberg and

carville argue talking about how things are moving up may not help him. he needs to focus romney is bad and things will be bad in the future if you elect him. that is not exactly hope and change. jon: we'll see what the speech brings tomorrow from the president. juan williams, mary katherine ham, always good to have you on. >> thanks. jenna: a very popular former congresswoman campaigned for him and he won. gabrielle giffords former aide, democrat ron barber winning a special election in arizona to serve out the remainder of her term. giffords who was critically injured in the shooting last year resigned in january to continue her recovery. now her former aide is heading to washington. even just for a little bit. claudia cowan has more of these details. claudia? >> reporter: hi, jenna. that's right, democrat ron barber who was himself seriously wounded on the attack on gabrielle giffords won yesterday's special election to succeed here by seven percentage points. he defeated republican jesse

kelly, a former marine who narrowly lost to giffords. she was shot in the head at a arizona shopping center while meeting with constituents. barber was her long-term district director. giffords resigned a year later to focus on her recovery. she made it clear she wanted barber to take her place and campaigning on his behalf an voting with him yesterday. in the victory speech he noted life takes unexpected turns. 66-year-old barber gave special thanks to his former boss and predecessor. >> we love you and we're -- [applause] and we are so grateful for your leadership and your dedication to our community. >> reporter: the politically moderate district in arizona saw a hard fought race with a lot of money spent by both sides. republicans in fact outspending democrats more than two to one. the win gives democrats a psychological boost after the failed effort to recall

wisconsin's gop governor scott walker. democratic officials argue the victory sets the stage for them to win back control of the house but barber won't get to celebrate for two long. that house seat and a ful full-two-year term up for grabs again in november. jenna: we do it all over again. claudia, thank you. jon: bacon, might be a tasty breakfast food. jenna: sounds pretty good right now, right? jon: yeah, for breakfast. maybe on a hamburger but burger king hopes to lure in customers by adding bacon to dessert. jenna: is it that size? the size that is behind us? or smaller? jon: sundae with a side of bacon. vanilla soft serve ice cream, fudge, carmel, crumbles and a big strip of bacon. 510 calories. 18 grams of fat. 61 grams of sugar. but oh, the taste. if you want to get online now the pork-based sundaes hit the menu at bk tomorrow.

jenna: will you try it? what do you think? you have to think about it? i can't believe you have to think about it. of course you have to try it. how could you not try it? jon: i like my ice cream with ice cream. jenna: take the ice cream with more ice cream. jon: why are you laughing over there? jenna: everyone in the crew saying of course they would try this. have to buy the crews sundaes. jon: i'll try one, sure. jenna: replace the vanilla with chocolate right, both? jon: now the entire control room in my ear. they're all cheering. they think we're buying them sundaes. jenna: we'll see how the show goes tomorrow. jon: can we expense that? jenna: we'll see how we can work it out. leading lawmakers want a special counsel appointed to investigate those national security leaks we've been talking so much about. why others are saying an independent investigation could actually do more harm than good. we have general jack keane here with his perspective on this, a unique take coming up. wake up!

that's good morning, veggie style. hmmm. fohalf the calories plus vgie nutrition. could've had a v8. that's a good thing,

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jenna: there is some new

controversy over the investigation into intelligence leaks on the these of attorney general eric holder's testimony before a senate committee. holder is refusing to appoint a special counsel to investigate the leaks on national security operations including the raid that killed usama bin laden and the cyber attacks on iran's nuclear program. he says he has every confidence in the u.s. attorneys he chose to lead the investigation but some senators including john mccain, strongly disagree. >> we need a special counsel because the american people need to know. and i do not believe that anyone who has to report to the attorney general of the united states would be considered as objective. jenna: joining us now, general jack keane, a retired four-star general. former vice chief of staff the army and fox news military analyst. nice to have you with us. >> thanks, jenna. jenna: the conversation about the leaks it has been bipartisan in many aspects, the debate over the leaks and what should be done as

far as the investigation that we neglected to talk to someone that could tell us a little bit about the consequences of these leaks to the military. how would you handicap it? >> well, first of all at the outset these are the most serious and egregious breaches of security that i have ever observed. quite frankly to out a double agent and also to expose ongoing covert espionage operations against an adversary as part of a hole listic program that we're conducting is somewhat unprecedented. you know, the only thing that is comparable to it when we've had u.s. spies and traitors reveal information, you know, to our adversaris. so the consequences are pretty serious. certainly the iranians antenna is up, way up now in terms of what other things we may be doing and certainly they're all over that. jenna: has that decreased our options potentially on the table when dealing with iran? >> we have a great capability, jenna. i don't want to minimize it.

the fact of the matter is that capability is still there. it just may make the more challenging for is, let's put it that way. in terms of our impact on the american people, the iranians are, it's a fact, they're an eye for an eye government and they now know unequivocally that we have done this to them. they will try to do something to us. that is right out of their playbook. that is why they have been trying to kill israeli officials in other countries because they believe the israelis have been responsible for the assassination of some of their nuclear scientist. >> general keane, do you think we're more focused on the process of the investigation of these leaks and not enough focus potentially on the retaliation from folks like the iranians? >> no, i don't think so. the people that deal with this, i've actually spoken to a couple of the leaders that are directly involved in protecting the united states from cyberattack and their antenna is up in this country certainly. and they are certainly on their guard. they understand what the

iranians are all about here. the other consequence of this is certainly the obvious. what it impacts on our allies and their ability to trust us with very sensitive information. can you imagine what is going on inside the mossad and the israeli leadership when they saw this kind of exposure. and also our agents out there are more at risk obviously. jenna: there are so many different variables at play. i have only about 30 seconds here but there's been these calls for a special investigation. what are your thoughts on that in resolving this issue one way or the other? >> well, i'm not a lawyer, jenna but this much i do know. i've watched two special prosecutors, just like the american people have, in the last two administration and i think they were less than satisfactory what they accomplished. i don't think there is any panacea in a special prosecutor. i'm comforted by this. the fbi is conducting this investigation and reporting to special prosecutors. they're an apolitical organization. i know that they will turn in the results of a very

thorough, comprehensive, investigation. i will make the assumption that the special prosecutors will make the right judgment in terms of what to do about it. not special prosecutors but the ones that the attorney general has appointed. jenna: thank you very much. sir. we'll be right back. >> you're welcome

jon: have you seen one of those freaky looking sleep apnea masks? there is new study that suggests they might cure more than sleeping problems. researchers say they could ease depression. why is that? let's ask dr. manny alvarez one of our fox news medical a-team. sleep apnea, you don't sleep well because your body doesn't get oxygen. >> sleep apnea is one of the main problems because of obesity problem. it is linked to heart

disease, stroke. you name it. you get no oxygen to your body for a minute or so during the night. when you look at what oxygen is, it is the fuel of the brain. jon: sure. >> what you correlate sleep apnea you will find there is high incidence of depression. they looked at effect of treating sleep apnea. what they saw significant reduction in depression. this tells you significance of getting a good night's sleep. last week we reported on association of lack of sleep with strokes. this falls into the same vein. i think it is very important for people to take sleep apnea seriously and get the treatment that they need. jon: but how do you know? i mean how do i know if i'm sleeping well? >> you know because you begin to have, you wake up in the morning with a headache. you feel like you're tired all the time. maybe you have depression. all these things. and if you're married or have a significant other, they will tell you make noises in the middle of the night that are not normal you actually stop breathing. so what you have to do, you have to go to a sleeping

center. most teaching hospitals around the country do have a sleeping center where you go and actually sleep there and they can test you and if you need treatment you better get it. jon: and the idea is sleep apnea, if you can whip the sleep apnea and cure a lot of these other things? >> absolutely. it is very important. read the whole story on foxnews.com. we have a lot of good stuff today, jon. jon: dr. manny, always good to have you in the house. jenna. jenna: there is lot of good stuff on there. i can confirm that. dr. manny. >> thank you, jenna. jenna: what are americans saying about the 2012 election and a host of other key issues. scott rasmussen is up next with us do you see it ?

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>> reporter: rick folbaum in the happening now control room. brand-new stories we are working we are ba barreling towards

november, one of them is wisconsin, and a brand-new poll who shows how mitt romney is doing in the state. possible charges against a dad who did the man allegedly in the act of molesting his young daughter, the latest on that. wait until you hear the latest in the miss universe pageant, yet another contestant is coming forward to say it's rigged. is there any proof? we've got that, and breaking news as the second hour of "happening now" starts right now. jon: is wall street in the congressional crosshairs? good morning to you -- i guess it's none on the east coast, right. jenna: it is. jon: i'm jon scott. jenna: i'm jenna lee. jpmorgan ceo jaime dimon is on the hot seat. he has to explain how they lost

in bad trading bets and what he's doing to keep it from happening again. jon: you overdraw your account, you pay a $30 fine to the bank, they lose $2 billion, who cares? jenna: they say there was no actual economic on the overall economy, it was a bad loss to the bank and that it was embarrassing. jon: chief congressional correspondent mike emanuel joins us from capitol hill. he's tracking this live. >> reporter: that $2 billion trading loss was disclosed may the 10th. today before the senate banking committee ceo jamie dimon expressed regret and explained what happened. >> this portfolio porphed into something that rather than protect the firm created a larger risk. we let a lot of people down and we are very sorry for it. >> reporter: it did not threaten the bank or financial system. jpmorgan is one of the largest banks and one of the strongest. the shareholders lost but

taxpayers and customers did not. lawmakers are worried about what would happen if this had happened at a smaller or weaker bank. the top republican on the committee asked mr. dimon what went wrong and what's been learned. >> what have you learned from this problem, this debacle? >> i think that no matter how good you are, how competent people are, never, ever get complacent in risk. challenge everything, maybe sure people in risk tkpheut tear committees are always asking questions. in the rest of the companies we have those disciplines in place. we didn't have it here, and that's what caused the problem. >> jim demint says every time there is a problem there is a temptation to add regulations. mr. dimon talking about regulations asked for a clone and simple regulatory system. jon. jon: mike emanuel in the capitol

building. thank you. jenna: we are going to turn now to the campaign trail, and right now governor mitt romney addressing the influential business roundtable in washington. that is an association of ceo's whose companies employ more than 14 million people. that is a live picture of mitt romney. president obama has court thed very same, very attractive group to have on your side. chief political correspondent carl cameron is live in washington with more on this. >> reporter: governor mitt romney is talking about president obama's assertion that the private sector is doing fine, and that what is necessary is more government hiring in the form of police, firemen and teachers, which plays to the obama campaign's attack suggesting that mr. romney wants to cut all those jobs. it's all about stimulus money and economic planning. while mr. romney today is talking to the roundtable in d.c. it's a quarterly meeting that the president has also spoken to. what has happened in the last couple of days on the campaign

trail is a remarkable escalation of the sort of rapid response muscle that both sides are flexing. today the obama campaign and the democratic national committee both released video, attack ads essentially whacking mitt romney for his business record and some of the things he said on the campaign trail in the last couple of weeks, and both the romney campaign and the republican national committee, separate and uncoordinated, but right on message, pounding the democrats. so we are seeing now for the first time really very, very aggressive attacking on both sides, jenna. jenna: carl cameron in d.c., thank you. jon: new fallout for attorney general eric holder after yesterday's heated questioning by the senate kwraou dish airy committee over the botched fast and furious gun running sting. holder offered a compromise, listen. >> i, myself, am offering to sit down with the speaker, the chairman, with you, whoever to try to work our way through this in an attempt to avoid a constitutional crisis. jon: with a looming contempt of

congress vote in the house and even key senators calling for holder's resignation is a compromise even possible? with us now chief congressional correspondent for the washington examiner, suzanne furchio. susan, what about it? he doesn't seem like a guy inclined to step down, especially on the say so of republicans. >> and he made it very clear yesterday that he has absolutely no intention reef signing and that he heard the president say that he had full confidence in people. i don't picture him resigning right now. however i don't think he has really a lot of wriggle room when he talks about compromise and negotiating with the republicans. they've already run out of patience with him because they've been waiting since october 2011 for a lot of these documents. and they are particularly irstated with finding out through whistle-blowers that it looks as though some of these wiretapping affidavits that they are seeking show that high ranking doj officials knew about the gunning running operation and let it continue. at least that's what the a*fdz seem to indicate. there is a lot of frustration withhold der from republicans.

so you had someone like senator cor nyne calling for his resignation. jon: if you've lost his support as an attorney general that is a pretty big loss, isn't it? >> it is but he's also in with the republican leadership and he walks pretty much in lock step with that. i think it does signal a real elevation in the frustration level. even the senate minority leader mitch mcconnell wasn't ready to go that far calling for rest eugs nation. h resignation. he says he was listening. for holder that means this will not give him a lot of wiggle room. he'll have to turn over what republicans are looking for and not big stacks of documents that are heavily redacted. they want some good stuff. jon: the whistle-blower information that the house has,

darrell issa has seen the wire tab requests, which have to be approved at the highest levels of the justice department, right? >> that's right. holder has argued that even though it may indicate some of what was going on with the gun running operation, he was saying that these officials really don't study these affidavits in detail, that they are sort of cursory and it didn't really signal to them the debacle that was to come. and so holder is still saying that nobody in his office really did anything wrong. and that is frustrating republicans as well them. want someone to be held accountable within the department of justice who knew this was happening, let it continue, and of course it resulted in the death of border patrol agent brian terry. jon: that is a little bit like richard tphaeubgs o nixon saying i didn't tell anybody to break into the watergate building. >> that is part of their frustration. they feel holder is not taking real responsibility. he says he's the one that put an end to the gun-walking operation

and he's called for his own independent investigation into the gun-running program although everybody thinks that that is a little bit like -- how effective is that going to be if it's his own people investigating his own department. jon: he didn't specifically say that he put an end or ordered an end to fast and furious, right? he was talking about the previous operation that had some similar elements to it. >> no, i think he was saying that he -- the original gun-walking operation actually originated in the previous administration. he argues that he actually put an end to the entire thing, that he stopped the whole operation and that it was he who decided to cull for an investigation. he's trying to take credit for that. but of course republicans want to know how long did they know this was going on for, and what did they do to stop it, and whether or not they tried to really punish the whistle-blowers who came forward after brian terry's death and shed light on this whole operation. jon: when we started this

segment talking about the compromise he has offered, it seems what would satisfy darrell issa's committee, at least on the house side is to get all the documents they asked for. >> there are up to 80,000 documents that they want to get a close look at. they've got about 7600 pages, a lot of it redacted, a lot of it they've already seen. holder said he might be willing to turn over more of the wiretap affidavits that would really show what the department officials were looking at and how much detail, how much knowledge they may have had in this operation. now, holder said that would be an extraordinary move, but i got the sense that he's ready to turn over something significant just to stave off an embarrassing contempt vote against him. jon: lots of shoes left to drop in this investigation. >> absolutely. jon: susan frecchio from the washington examiner. thank you. jenna: a hospital is in lockdown after a woman there is shot and killed. we have new details on a suspect

who is still on the loose. plus, we're watching those raging wildfires in the west. authorities just wrapping up a news conference a few moments ago. we will update you on the progress just ahead. [ female announcer ] you can make macaroni & cheese without freshly-made pasta. you could also cut corners by making it without 100% real cheddar cheese. but then...it wouldn't be stouffer's mac & cheese. just one of over 70 satisfying recipes for one from stouffer's.

jenna: right now, some more information on a new york hospital on lockdown, rick. >> reporter: this is upstate new york, jenna, it's an active crime scene that is just outside of a big city medical center in buffalo, new york. it's the eerie county medical center remains on lockdown. there are reports this morning that a woman was shot to death out in front of the hospital about 8:15 this morning. the shooting just outside one of the hospital's buildings. no word on whether the shooter has been caught, and that could be why we just saw that helicopter flying over the scene. the s.w.a.t. team apparently still there as of a couple of minutes ago. we are trying to get the latest information. once again, this hospital is in a lockdown situation, roped off

to the general public. as we get more information we'll pass it along. jenna: sounds good, rick, thank you. jon: a raging colorado wildfire forcing more evacuations today. a small army of firefighters on the ground and in the air working desperately to try to contain a huge fire that has already claimed one life. meteorologist janice dean is in our fox weather center now. jd. >> reporter: so scary and every year we look at potential wildfire danger across the west, this year being no exception. taking a look at the forecast we could get a little bit of relief, in terms of rain. the bad news is we are going to see some thunderstorms with that, and that could actually ignite fires or spread them with all of the winds . so there is the fort collins area where we just saw video. we are looking at the potential for some gusty winds with the potential for thunderstorms throughout the rest of the work week. today it's warm, it remain dry and again any rain is going to be little bit of good news, but the gusty winds and the lightning could threaten more

wildfires. taking a look at our fire index across much of the west especially the four quarters, the peak of it will be tonight. the west of the rec and into the weekend things will settle down, so the wind should calm for the most part. we are still dealing with very dry and warm conditions. that will continue and be on going for the rest of the work week. in terms of fire dangers, these are our red flag warnings, conditions are favorable for the starting or spreading of wil wildfires. this is the region we're looking at. here is fort collins. north of that area west is where we're dealing with the high fire danger. we'll see a little bit of relief, maybe a little bit of rain but we have to watch the potential for thunderstorms and lightning attached to that. for the rest of your forecast across the nation looking at large hail, damaging winds and even isolated tornadoes for the northern plains, that includes the dakotas and onwards down towards the texas and oklahoma pan handles. hail, damaging winds, isolated tornadoes for this region.

so we'll keep things busy here in the fox weather center. i know we'd love to donate some of our rain in the northeast to folks across the four corners if we only could. jon: it's been a wet one here and so dry out west. those are the vagu vagaries of the jet stream. jenna: casey anthony speaking out after her very high profile murder trial. she is a free woman. what is she doing with her free time? who is she talking to? that is coming up. pollster scott rasmussen weighs in also, just ahead. are you receiving a payout from a legal settlement

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jon: right now, new information on crime stories we are keeping an eye on. in alabama the shooting suspect

in a sphraoe tha spree that took place near auburn university send tkerd to police. surrendered to police. casey anthony is speaking out, the florida woman found not guilty of killing her two-year-old daughter caylee says in an interview she now lives in a different kind of prison. anthony says she's afraid to leave the house and insists she did not kill little caylee. infamous mobster henry hill whose life story played out in the movie "good fellas" has died. he was an f.b.i. informant who began his career with the new york mafia at 12 years old. he died of an undisclosed illness in los angeles at the age of 69. jenna: the latest snapshot for the race of the white house is this according to "real clear politics," president obama edg

edging governor mitt romney by two points. according to brand-new numbers from rasmussen.com governor romney is making a move in a key battleground state of wisconsin following that recall election there. scott rasmussen is an independent pollster and president of rasmussen.com and author of the people's money. scott, a lot was made of the exit polls in wisconsin. what did you find? >> right now, one week after that wisconsin recall governor romney is at 47% in wisconsin, president obama at 44%. compared to a month ago romney has gained a little bit of ground. but the real big story president obama has lost five points, slipping in support there. jenna: is there any reason for that? what would be a more -- an explanation for why that happened? >> well, part of it is the president's job approval, most voters in the state are disapproving of the way he's doing his job. 44% strongly disapprove. i suspect like everywhere else the economy is the key issue,

and what is really interesting here, wisconsin voters are actually a little more optimistic about the economy than people around the country, still only 27% say their own finances are getting better, 39% say they are getting worse. jenna: that is interesting. we actually have that polling. we'll bring it up for some of our viewers. as you mentioned 27% said that things are looking better for them, but you have 39% say worse, 33% say about the same. i want to bring that into another question that you ask, and it's a big question for so many pundits out there, about how enthusiastic the american people are about this election. are they really up for it this time? is it like the midterms or not? this is what you found. if there is a choice between president obama and governor romney, is it a choice you're excited about or will you simply be voting for the lesser of two evils. 58% say it's a choice they actually will be excited about. >> that is right. that is much higher than the national average.

only 34% say it's the lessesser of two ef ills. it's worth pointing out, jenna that people who say they are excited about the choice are more likely to vote for president obama. people who say it's the lesser of two evils more likely to go to governor romney. this is a pattern we are seeing around the country. president obama is the defining feature in this election for a lot of republicans, they are more interested in removing obama than they are in supporting romney. jenna: let's talk a little bit about what you've seen across the few different states as far as enthusiasm scott, voters overall. what is your sense of it? >> when we talked to voters about how closely they are following the campaign, which is a good measure of their intensity of interest, republicans far more excited about this election than democrats. older americans following it far more closely than people under 40. and white voters tend to follow it more closely than minority voters. some of this may change by the fall, but every indication we have right now says that while

democrats are a little more excited about their candidate and the choice that they have, republicans are more interested in the campaign that will probably develop into a turn out advantage for the g.o.p. jenna: it will be interesting to see what actually happens in november. i'd just like to get your thoughts in general, scott, taking a big step away from the numbers, i know you've done a lot of these elections, what strikes you most this week about some of the trends that you're seeing for this election of november 2012? >> what we're starting to see first of all is a growing belief that it's possible for president obama to lose. a couple of weeks ago the national consensus was no, there is no way that governor romney can pull this off. the second thing that we're seeing is the impact of the economy. the president's numbers have been slipping a little bit. we had a bad jobs report a couple of weeks ago. consumer confidence is down a little bit. and we can talk all day long about campaign strategy and speeches, if the economy does not improve president obama has a tough hill to climb to keep

his job. jenna: back to the economy yet again. scott, nice to have you as always. thank you so much. >> thanks, jenna. jon: there is new fallout from the miss usa pageant, why another contestant claims the competition is rigged. this all stems from something miss florida says she saw backstage before the pageant even began. plus, in texas jurors set to deliberate the fate of a man on trial for fatally shooting his neighbor over a loud party. ro*ul rodriguez is using the state's stand your ground law as his defense. did rodriguez show he was in fear for his life, or is this law being pushed to the limits? >> look, i'm in fear for my life now. that's why i bring my weapon. i'm in fear for my life. please help me now. they are going to kill me. wake up! that's good morning, veggie style. hmmm.

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the father, that he had gone to help take care of some horses on the property. the young girl and her little brother were also helping the dad too, they were feeding chickens when apparently the attack on the girl took place. the brother went to tell his dad. the dad went to look for the two, and when he found them he saw the man allegedly molesting his young girl. here is the local sheriff. >> during the course of him trying to rescue his daughter he struck the individual several times, and the individual ended up dying. he had remorse that the individual had died. i mean it wasn't his intent. he was just protecting his daughter. >> reporter: that young girl was treated and released, jon, from a local hospital, and the county prosecutor says once the investigation is done the case will be presented to the grand jury. back to you. jon: what a story. rick, thank you. so should this dad face any criminal charges?

it's still a possibility, apparently. or was this justifiable homicide? let's talk about it with joey jackson a former prosecutor and a criminal defense attorney, doug burns, also a criminal defense attorney and a former federal prosecutor. so what do you think, joey? i mean so far no charges filed. is there any possibility that a jury would -- or that the prosecutor would file charges against this father? >> you know what, jon, very sympathetic case, right? if you think about it here is a person who sees a four-year-old, his daughter, the love of his life under attack. what is he going to do? what any father would do. i think the prosecution is doing the absolute right thing. you investigate the case, determine what is what, bring it to a grand jury and ultimately let them make the determination n. saying that, jon, what they will have to look at, that is the grand jury and the investigation, is was this something retalitory. in other words, i didn't like what you were doing i'm going to engage in street justice here,

or whether it was justifiable, he was doing it to protect his daughter. jon: what he told prosecutors -- investigators, he didn't -- he didn't go at him with a shovel, with an axe, he used his hands, he says he landed three or four blows and the guy is dead. >> it's a highly, highly defensible case with zero jury appeal because the guy is molesting his 4-year-old daughter. he called into the authorities, that is number one. he expressed tremendous remorse, he had no intent to kill the person, an was defending his daughter against what he perceived to be a serious sexual attack. i think joey is right, they should present it to the grand jury. let's also look at the autopsy and the toxicology to the extent that that can tell us what may or may not have happened in terms of who was in fear for their life. again the case has absolutely, as we trial lawyers say, zero jury appeal. jon: i have daughters and sons as well. >> i have two sons. jon: jurors are deliberating the

case of a man who is using the stand your ground law as his defense. here is the accused. we saw his video snippet a little bit earlier. raul rodriguez charged with fatally shooting a neighbor after a fight over a party that he thought was too loud. rodriguez is a retired houston firefighter. he was the only person with a gun. he also had a video camera so he went over, he started -- there is the gun. he started recording this conversation, or this encounter that he had with the neighbors, joey, and said, i'm standing my ground here. you hear him say that. then somebody apparently reaches for the camera, and then the gunshot goes off. >> jon, i think this is problematic for mr. rodriguez, the defendant, and here is why. what happens is he doesn't like the noise of his neighbors.

how is he going to resolve it? he's going to grab his home, go over to the home, be agitated, have a video tape to record it. in the videotape what is he doing? he's setting up his defense. i feel like i'm in danger, i'm fearing for my safety. i'm in fear now, this doesn't have to happen. there is another issue whether stand your ground applies. why? he was not in his home or vehicle which it has been expanded to and he was not even in his place of business. on that ground to go over there in an agitated state, you know bad things will happen, i think this is problematic for the defense. jon: there was testimony, doug, as i understand it that he has told people in the past, oh, you can shoot somebody and get away with it if you claim, stand your ground for a defense. >> i don't necessarily disagree that there aren't problems. you have to lock at some of the facts. he went over there but that doesn't necessarily make him t the agreethe a agreesthe agrees

or. the stand your ground ends up to be confusing. everybody in the country is talking about stand your ground. jon: in connection with the trayvon martin case of course. >> historically in first year law school they teach us, if you can retreat you have to except in your house. now the stand your ground laws say you don't have to repeat even if you're not in your house, however it's still the same analysis, the force has to be commensurate with that which is presented. if you're threatening me with that pen, well i can't pull out a gun and shoot you, it has to be commensurate, so we don't really know, joey what specifically took place after he knocked on the door and said that the music was too loud. >> we don't. i think that the concern here, jon is that too many people are using stand your ground as an excuse and justification to kill and that is not what the intent is. as doug was talking about what you learn is that you have a duty to retreat. we know stand your ground says that eliminates that duty. but if you're in reasonable fear for your safety, nan this particular case there is a real question as to whether that reasonable fear existed or whether he was there to tell his

neighbor you know what, your days are numbered, your life is gone. jon: this party was a birth day party for the woman of her house, her five-year-old daughter and her husband, a 31 tpaoerld physician education teacher. he's now dead as a result of this. >> the defense sounds a little too contrived. you know, loud party next door i'm going to grab my video calm are and gun and go -- >> and say things while i'm at it. i'm fearful now, i'm fearful. >> i will say this, i think that stand your ground on many levels a lot of legal scholars are saying it should be revisited. was it could have cause many more even continue ters. >> i think that's what we're going to see, dog. i think we will not only see it in texas where this occurred but nationally there will be a reevaluation of whether the laws are workable or not. jon: and you do hear on the tape somebody says, i'm going to go

in the house and get my gun. jeez, you know, the neighbor shows up with a gun. >> if the music is too loud you don't necessarily knock on the door and say, hi, i'm here with a gun, i have a camera and by the way i'm citing the stand your ground law. that is pob louisianamatic. by the same token i would just revert back to i don't want to be a broken record. we don't know whether or not the homeowner confronted him with some violent behavior, jon. jon: there could be some other facts at play here. the jury as we said is about to get the case. we'll let our viewers know what happens in that one. doug burns, joey jackson, thank you both. jenna: we got a little first year law school there, didn't we. jon: i know. i was thinking about night school, but i'm getting my schooling during the day. jenna: you have to tune into "happening now," look what you learn. great conversation. listen to this. actually look at this. there is a little girl that is thrown from this car during a high-speed chase, and it's all caught on tape. look at her. we are going to tell you what is

behind this disturbing story and video straight ahead. plus, jpmorgan chase ceo jaime dimon explaining his bank's massive trading loss or trying to on capitol hill. he's also saying we simply haven't done what needs to be done to fix our economy. coming up ben stein joins us with his take on this. and why he believes we have to get more involved in europe's financial crisis, or face the consequences here at home. [ male announcer ] research suggests the health of our cells plays a key role

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the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful. he would never give up on any of us. jon: scary video released today of a high-speed car case that ended with a toddler being thrown from a car. take a look. police chasing a suspected purse snatcher, or snatchers in lubbock, texas. their car flips over tossing a one-year-old girl out of that rolling suv. she stands up, stumbles and chases after the car. someone finally grabs the little girlment police say she walked away with just minor injuries.

jenna: that is scary to watch, right? jon: unbelievable. two teenagers in that car under arrest. >> the biggest disappointment i've had is that we never actually sat down, republicans, democrats, businesses and had real detailed conversations about what went wrong, what needs to be fixed. to focus on what actually needs to be fixed. jenna: there are major fireworks on capitol hill right now as senate lawmakers grill jpmorgan chase ceo jaime dimon. jpmorgan managed to lose more than $2 billion in bad trade and that's what the whole conversation is surrounding. the dow has been quiet today. a lot of folks are watching this testimony and what jaime dimon has to say. there are more am news sign ominous signs that the debt crisis is reaching a tipping

point. our next guest says we should look how we handle our banks in the 2008 financial crisis as a potential model of what we should do with europe. if we tkoepbt learn from the past those mistakes will come back to haunt us. we will be a little more specific about this. ben stein is an economist, also author of "what would ben stein do." ben, nice to have you with us today. >> honor to be here of course. jenna: let me be a little more specific about what we're talking about the 2008 financial crisis. you said we made a crucial error by not bailing out lehman brothers. >> it was a gigantic error. jenna: you say we're repeating the same mistake in europe, how so? >> it won't be quite as big as lehman bros., it will be awfully big. if there is a total default of the greek government. if the spanish banks fail or a large, large, large debacle with spanish government trading and borrowing it will affect the bonds of spain, it will greatly affect the bonds of greece and the bonds of the banks of those

countries. it looks like italy will be next. the bonds and security of those countries are owned by big, french, german banks, those in turn are owned by u.s. banks. that means the u.s. banks will take a big, big hit which is just what we do not need as we are desperately trying to get out of the recession. the recession was brought on in large part of the freezing, cardiac arrest of credit in the united states after the collapse of lehman. we do not need a big financial collapse, that is the last thing we need. jenna: no one wants to go become to those days. that is a thing that probably has bi-partisan support and support from our viewers as well. question becomes, listen we are in so much debt right now. we have our own financial issues, how do we help europe more directly if that is something we should do? >> there is a giant organization in that organization called the international monetary fund. it is like a gigantic combination of bank, treasury and federal reserve for the whole word. it's called the international

monetary fund, it's not called the international dog pound. it's the monetary fund. and they can put out enough money to buy up the greek debt, to stabilize the greek currency and government. they can do the same thing in spain. they can do the same thing in italy. i don't know why they are not doing it. there is all this talk about, they made their own mistakes, let them pay for it. no, i don't care if the italians or spaniards pay for it. i don't want the guy in sand point, idaho to pay for it or silver springs maryland to pay for it. it doesn't have to be hang at all. jenna: wouldn't they be paying for it through the ims because we are the biggest part of the ims? >> no, the taxpayers don't pay a cent for that. that is all paid for. they can essentially it's a little more complicated than that, they can essentially create their own money just by writing checks, by going to the federal reserve can. that is not going to cost the

taxpayers a penny. jenna: there are the moral issues as well. we talk about the logistical ways we would do it. some say if you're sharing losses and debt that actually gives permission to grab more debt in the future, for the people, or the countries that have been so far in debt already to begin with. that it really doesn't solve the issue if you try to share it. you disagree. >> that argument about moral hazard is always the argument the governments use, bankers use when they are about to let a big bank fail or let a government fail and catapult the whole country into recession and depression. that exact same argument was used about lehman bros., and use ned 1931 about the bank of the united states which was a giant factor in creating the great depression, letting that bank fail. let's -- we don't need to hear about that moral hazard. i don't want to hear about punishing the bankers. i want to hear about getting people back to work and getting spaul small businesses to be able to get loans moral hazard and moral issues have no place

at this moment. right now we are facing a crisis that could lead to a world-wide recession or even a world-wide degrees. let's not hear about these moral issues of punishing people who borrowed too much, let's get the rescue done and we can talk about the moral issues and put the kids in greece to bed without their dinner some other time. jenna: it's interesting when we're talking about greece. we everee been talking about it for two years now. when we say there is a crisis that is coming it feels like that slow moving storm that you see off the coast of florida, and everyone says it's going to hit florida, it's going to be massive and then it doesn't. then you get another warning, oh, it's going to hit this time and it doesn't. the public has been told this is going to be such a big issue for more than a year now. how close do you think we really are to europe really becoming the issue that tips over and brings our own economy into a place we don't want to go? >> well, it has already had an effect, it's had an enormous affect on raising borrowing

costs throughout european that affects borrowing costs that would be otherwise in a position to buy our goods and services. it is calculated by economic institutions. it's already having an effect on the u.s. economy. in effect the outer parts of the storm have already hit the united states. jenna: today, ben, what would ben stein do in. >> ben stein would go to the imf with a bullwhip and he would lash them into making whatever the right moves are to stabilize greece and spain, and if necessary italy and then worry about the moral problems later. moral issues have nothing to do right now with saving the american economy. we can worry about them tomorrow, let's worry about saving the economy and saving europe right now. jenna: just to be clear that is the international monetary funneled not the international dog pound ace mentioned earlier. >> we do love dogs though. jenna: we certainly do. jon: he's not shy about expressing himself.

jenna: some argue, be more proactive and less reactive. that is a big conversation happening as well. the moral one about whether or not we should simply be more aggressive on a lot of fronts when it comes to policy, economic, and otherwise. interesting conversation. jon: there is more controversy over the miss usa beauty pageant. another contestant is coming forward claiming she heard the names of all the finalists before they were announced. plus, a brand-new career for a former russian spy ahead the latest on a woman dubbed the months could he tpep fem fatale. jenna: what happened to her red hair? i don't know i kind of liked her as a redhead. ann a get your bottle. yoo-hoo. hello. it's water from the drinking fountain at the mall.

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>> reporter: we have been reporting on the story of miss pennsylvania who went onto her facebook page to accuse pageant officials of rigging the thing. she says that miss florida was talking backstage about seeing a list of the finalists before the pageant had even begun. she posted this about her mid-pageant exchange with his florida. she hesitantly said to me and another contestant that she knew who the top five were. i said who do you think they'll be? she said she didn't think, she knew, because she saw the list that mourn. she relayed whose names were on the list and after it was indeed the top five i knew the show must be rigged. the florida contestant, karina brez denies the story but

another contestant who is keeping her name secret for now says that it is true. she tells our colleagues at foxnews.com that the version of events is in fact the truth, that other contestants know it too and that they are too scared to come forward. pageant owner donald trump is threatening to sue for defamation. if it goes to trial the unnamed contestant says others will come forward and testify about what really happened. you can read more about this from our colleagues at foxnews.com. back to you. jon: like you said, pretty ugly for a pageant. >> reporter: yep. jon: rick, thank you. jenna: new worries about europe's debt crisis now. we talked about it a little bit with ben stein. our very own greg burke is overseas with the latest. greg. >> reporter: that's right. if the economy were as good as the weather in italy we'd be in good shape, but that is not the case, and certainly there are war rows that the problems in spain from last week and over the weekend are spreading to italy. they saw the borrowing rate

shoot up today. lots of concern in italy that it could go the way of spain. it's bigger than spain and would be a lot more pob louisianamatic. the italian prime minister bleeding with the parliament to pass reforms, he says the country needs growth. it's saddled with a huge public debt, that's why the borrowing rates are so high. growth is not something it lie has seen a lot of in recent years and there is no reason that they can expect to turn it around any time quickly. they have been hit with austerity measures, a lot of taxes and other things which certainly don't put you in a mood to buy a house or start a business. the world bank putting out a report yesterday saying that the quote, high income countries around the globe will be growing at only about 1.4% this year, that is nothing, and even worse they say the problems are going to continue for several years. finally, jenna, you know sometimes it seems for americans like european europe's problems are so far away. that will no longer shall the case now that europe is in such

crisis. it will start hurting americans in the pocketbooks. the theme here is basically save european save the world. jenna. jenna: greg burke, thank you. jon: new details in the jerry sandusky child sex-abuse trial. do newly released documents prove someone tried to cover up the former football coach's alleged crimes? i'm breathing better so now i can take the lead on a science adventure. advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator, workintogether to help improve ur lung function all day. advair won't replace fast-acting inhalersor sudden symptoms and should not be used more than twice a day people with copd taking advair may have a higher chance of pneumonia

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jon: wouldn't happen this way to james bond. steamy new pictures of a former russian spy turned international celebrity. anna chapman strutting her stuff at a fashion show in turkey flanked by those two guys who seem to be bodyguards. the ex-russian spy was deported from the u.s., alongwith nine other russian agent. look at that dress. what do you think, jenna? >> looks quite glamorous to be honest with you.