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>> brian: bye, everybody. bill: they are not done yet. talk of another tax increase looming large in washington as congress goes back to work today. and the white house wanting republicans to accept higher taxes as part of a long-term debt deal. how is that going to go down? good morning. hope you had a great weekend everybody. i'm bill hemmer. welcome here to "america's newsroom". martha: it just keeps going. good morning, bill. good morning, everybody at home. i'm martha maccallum. the republicans are demanding spending cuts instead. watch this from the weekend. >> we would promise the american people we would do this year-and-a-half ago. here we are already talk walking away from spending reductions we promised to make without tax increases the president signed just a year and a half ago. so i think the american people need to know that we have a spending addiction in washington. we're exploding our spending. we've added $6 trillion in the national debt in just four years. bill: wow!.

martha: this as new reports show that the tax bill for one group of americans is at a 30-year high right now already. bill: starting that coverage now, stu varney, host of "varney & company", fox business network. good morning to you, stuart. >> good morning bill. bill: what is the story there. >> that is from a tax policy center research group in washington. they say that upper income people are paying a bigger proportion of their income in federal tax now that at any time in 30 years. i'll break it down for you. that top 20%, this year, will pay a 27% tax rate. they will lose 27% of their income to the federal government. the middle 20%, they earn roughly $46,000 a year. that middle 20% will pay 13% to the feds and the bottom 20%, will pay nothing at all. if you look at this overa period of time, upper income people this year will be paying a higher proportion than at any time in 30 years and the middle class and the poor will be paying less. bill: many would argue they

are the job creators here. now the rich pay a bigger share because they're taking a bigger share of the income. isn't that reasonable explanation? >> that is and at least a chunk of the truth here but now follow this through, bill. if you continue to tax them more heavily, then you will hurt the economy because that, and that will hurt the middle class and the poor. look what we've done. we have raised taxes as of january the 1st on everybody and upper income people. and the economy has slowed noticeably. we're on the edge of recession. raise taxes on upper income people even more, and they account for a big chunk of the spending in this country, you raise taxes some more, and you will hurt the middle class and the poor even more. bill: you know over the last three days, john boehner was emphatic on and so is mitch mcconnell as we just heard. they say they're going to hold their ground. do you expect that? >> i think it is fair to say that taxes, the tax issue is now become central to this budget-cutting, these budget debates. the republicans say they

will not raise taxes anymore. the president is insisting just that. bill: just to drill down just one more point on this, what the president said over the weekend was tax rates won't change. >> right. bill: which, pay attention to that. that phrasing there. however, you bo after the loopholes, whether it is, interest rate deduction, whether charity deductions will stay on the table or not. do you see any of that being mixed into this current debate? >> yes it is, very much is in the debate but if you cut deductions, the president calls them loopholes, if you cut deductions those deductions are used primarily by upper income people. they will in the end pay a lot more money in tax. that is form of tax increase. and then you have this tax rate question. if we get the "buffett rule", which the president is pushing for, that would be a change in the top tax rate as well as a closing of loopholes and deductions. bill: we'll see how they

negotiate in the coming months or month. thank you, sir. see you at 9:20 on fbn. martha. martha: how much exactly do the top 10% of american households pay in taxes? according to the tax foundation the top 1% pay about 37.38% of the total tax burden renn in this country. more than a third, close to 40%. the top 1% earn around $370,000 or more. so that is who falls into that big group. bill: we're in sequester land right now. martha: we are. how do you like it so far? bill: i'm doing okay. the sun came up. martha: so far, so good. bill: house speaker john boehner says do not blame him for failure to avert across the board spending cuts. he went all-out to find common ground before with the white house before sequestration kicked in. listen to this from nbc. >> there is no one who tried harder to come to an agreement with the president to deal with the long-term spending problem, no one. it is unfortunate and we have not been able to come

to an agreement. bill: and we do not know when they will meet again. friday was the first time congressional leaders and the president talked face-to-face on this. mr. boehner also saying he is focus on getting runaway spending under control. martha. martha: well those sweeping across the board budget jet cuts taking effect topping the agenda at white house. in a few hours the president obama will hold a cabinet meeting what to do next from here. wendell goler live reporting from the white house. wendell, what do we expect he will tell them? >> reporter: well, martha, it is not clear because it appear cabinet secretaries and agency heads don't have as much flexibility in the budgets as they did in the 1980s when the gramm-rudman hollings budget cutting bill went into effect. that was the model for the sequester. the white house is warning workers here and at the capitol would be furloughed. the architect at the capitol says that is not the case. but the president's economic advisor says they will still feel a pinch.

>> well, first of all, those capitol january norse -- january, to will not get as much overtime. taking less pay home does hurt. i think the real issue this is as the president said, a slow grind. >> reporter: gene sperling says the sequester could cost 3/4 of a million jobs. the white house is counting on public pressure from the pain of the sequester to push republicans to compromise on a deficit cutting bill. martha: a matter who blinks first, wepd dole? >> reporter: republicans agree to use tax revenue to reduce the deficit or the president agreeing to all cuts in government spend. mr. obama said that would put a burden on the poor and middle class. house speaker john boehner says he has already gotten his tax hike. >> i've been here 22 years. i watched presidents from both parties, leaders from both parties, kick the can down the road and kick it down the road and kick the down the road. we're out of road to kick the can down. >> reporter: there is

another deadline looming at the end. month, when the two sides, republicans and democrats have to agree on a spending plan to avoid a government shutdown. be prepared for that. martha: that is one beat up can. wendell thank you. bill: find it on google maps. we're awaiting a big announcement from president obama today, expected to tap sylvia matthews burr well, i think i said that right. she is currently president of the wal-mart foundation. she worked in the clinton white house as the deputy director of the office of management and budget. if confirmed by the senate, she would be the only second woman to hold the budget director post. we'll see how that goes down in washington. martha: we're getting started on this monday morning as we get things rolling along here in "america's newsroom." secretary of state john kerry announcing over the weekend a hefty financial aid package for egypt. think about that in the context of this sequester, right? is that smart money to be spending right now? bill: a good question. a big chunk of that exclusive chris wallace had

with mitt romney and his wife ann. how he is weighing in now on the current tax debate. >> so, how would president romney at this moment be handling your opposition in congress, the congressional democrats? >> well, first of all, i can go back to my experience as a governor, that is, you don't attack the opposition when you need to sit down and work with them. e new griddle-melts to your usual breakfast sandwich. a lot more flavor. [ anouncer ] ihop's new griddle melts... made fresh and hot! hand crafted just for you. it's like a sexy sandwich. [ anouncer ] compare new griddle melts yourself. just $4. it's like a sexy sandwich. it's an epic breakfast sandwich. your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing.

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martha: well the man accused of a deadly shooting on the las vegas strip will appear before a judge today. ammar harris due in court to los angeles. he faces extradition from california to nevada. he was arrested in l.a. last thursday ending a week-long manhunt we covered here extensively that was going on. he is accused after shooting that ended in a fiery crash that killed three people and injured five other people. what a scene that was on the vegas strip. >> here is real money too. secretary of state john kerry meeting with egyptian president morz morse morse

promising to restore millions in aid. between the 1948 and 2012 the u.s. gave egypt $7 billion in foreign aid. that is the 1.3 billion in military aid from today to present day. michael singh, national security affairs and washington institute for near east policy and good morning to you. >> welcome, bill. bill: $250 million at a time when sequestration just kicks in. i think a lot of people are shaking their head on this. is this smart money, michael? >> well, no, bill. it is absolutely not. i think that this is a symbolic gesture by the united states. in fact, egypt's needs, the egypt's external financing needs number tens of billions of dollars. in order to get that kind of money they need to make a deal with the imf the imf will not make a deal with the muslim bother hood government until they show a

commitment to economic reform. this is meant to show as a friend to egypt. frankly allies with egypt and egyptian opposition think we've been too supportive of this muslim brotherhood government and therefore this type of gesture isn't needed. bill: keep in mind we don't know how they will govern. that story has not played out just yet. ultimately the risk there, john kerry said over the weekend, he said i expect a lot from you when talking to the egyptian defense minister. are they listening to us? >> well, remember, bill, this government now has been in power for a while. so we do have some indication how they're going to govern. they haven't yet shown that they're able to move, the muslim brotherhood i'm talking about here, from act movement, to islamist movement to being a real political party to govern egypt. they haven't shown they can make the tough calls on economic rerecall to. they haven't shown, for example, they can reconcile with other political parties and govern by consensus rather than by imposing their own will. that is why this sort of money goes straight into the budget, straight into the coffers of the government

there is simply not at good investment at this time of american foreign aid. bill: you wonder where egypt would be without this money. 1.3 billion to the military aid. m 1-a tanks and f-15 fighters. is this smart to do this now or should we a freeze on it? put a freeze on it to see how they act and conduct themselves? because the ultimate fear the egyptian government takes our military hardware and uses it against israel either as a threat or in a war and secondly against us? >> well i think that's right, bill. it is important to remember, first of all, this money is different, the 1.3 billion in military is different that it is spent in the united states on u.s. defense contractors. at least it is staying in the american economy. i think the question about it though is, number one, can we really trust this sort of unstable government with this kind of military assistance? and second, is it the right military assistance? remember the types of threats egypt faces now are the smuggling of arms through the sinai,

terrorists in the sinai and along the sudanese border and frankly tanks and jets don't help to counter those threats. those are used against armies. i don't think they're a big threat to israel or other u.s. allies in the region because our allies like israel have much better equipment, frankly. but the fact they don't do much to accomplish our interests or egypt's interests. bill: this goes back to 1979. you have to understand the history and we brokered and helped buy peace between the egyptians and israelis. do you see any of that policy changing now? i do not, do you? >> well, you know, i don't see any of that changing right now. in part because look, there's a lot of inertia behind this military assistance. they're very sort of strong interests here in the united states that support this aid. there are strong interests in egypt and the in the region that support this aid. there are big obstacles to doing anything to change this. but i think look, over time we need to seriously look at least reorienting aid, to take on the counterterrorism

threats and the arms smuggling threats which are the real threats in this region today. bill: when you think about the budget battles that are on the front page of every website and newspaper in america, this is really in the national conscience now, to think about how much money we're spending s this the type of thing that should be given a fair review? >> you know there is a certain irony, bill, i was going to egypt and pressing them for economic reforms and political consensus but look, i think that foreign aid is going to remain important to u.s. national security. woe may need to like in every other area look where we can cut and where it is being spent wisely and where it is not. that is the question about egypt. no is foreign aid a good idea but what are we getting for the foreign aid? is this a smart investment? i think that is something at that that's awfully difficult to show vis-a-vis egypt. bill: that is smart point at the end. michael singh out of washington. >> thank you, bill. bill: martha? martha: winter is still howling out there. there is another big winter storm right now. gosh, every single week we've had another one and a

wallop is coming at us again. we'll show you where it is headed. bill: winter is coming. president obama's home state is making to look it tougher to get a gun. >> if it breaks you can't give it to a gun smith even to fix it. you can't hand it to your son to use. it is all, it is all now outlawed because of 2012, the bill governor hickenlooper said he is going to sign. dentures are very different to real teeth.

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bill: talk about splitting hairs, and seconds, this is how a high school playoff game ended. two point game now when this happened. >> tosses it. it is knocked around and they will hold on and win. hold on, one second, oh goodness. bill: it's good! new york's

new rochelle beat mount vernon on the crazy play. they intercepted the pass and threw a 60-foot buzz shot as buzzer sounded. the refs were hustled off the court for crowd protection. the ball in his hand is, .02 and .01. so it is like 1/100 of a second. martha: that is beautiful. >> just gets off his fingertips. he will not forget that moment, nor anybody that whole stadium. bill: see an inbounds pass and heat it up and guy makes it. go from one pass to another and back again. martha: 60-61. congratulations new rochelle. back to this now issue of gun control which is front and center in president obama's home state of illinois. mike tobin is live in chicago. mike, what are they doing with the gun laws where they have had so much gun violence over the past couple years? >> reporter: you know, martha, what they're going

after now is mandatory minimum sentencing. what is interesting the focus with this latest push is really on the illegal weapons. with gun violence part of almost every night in chicago, the mayor, police superintendent, district attorney, want to increase the penalty for illegal gun possession to 3 1/2 years. they also are pushing for truth in sentencing, to guaranty that a convict does not do just a fraction of his time. >> when you commit a serious gun offense you should serve the time. the victims deserve it, the public demands it, and the criminal justice system should deliver it. report or the now high-profile community activity father michael flager is in sync with city leaders and he says unabashedly that they are seizing on the emotion of little haditha pendleton the girl killed after performing at at president's inauguration and sandy hook elementary to further an

agenda that was preexisting. >> rahm emanuel has had a tough tenure there. since newtown we know they have some of the toughest gun laws in the country. now that they moved to this sentencing strategy and truth in sentencing is the feeling is that that is going to work? >> reporter: you really hit the nail right on the head because the prisons are down state in illinois. the prisons are already overcrowded. so you may get some pushback, if you make the sentences stiffer, ultimately you will have more convicts in more prison beds. and the rest of illinois has to foot the bill. so you may get the pushback from lawmakers down state. unfunded mandate and you know the state of illinois is in a budget problem of course. we're trying to cut corners and do everything we can to balance the budget. >> reporter: now the governor of illinois recently decided to close two prisons. they're so overcrowded, in six different prisons you have prisoners bunking in the gyms. you may not have a lot of sympathy for them but the

prison guards are saying they are at risk because they're so badly outnumbered. martha: what a mess. we'll see where that guys. mike, thank you. bill: talk about this and another dangerous storm is heading east. which cities are on watch for this one? a lot of snow is packed in there too. martha: part of the exclusive chris wallace romney interview that you did not see over the weekend. what the former presidential nominee is saying about taxes. >> well, two things. he won but a majority of republicans were elected to the house, the people's chamber. so they also won. they ran on a platform of saying not to raise taxes. michael, tell us why you used priceline express deals

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bill: you can put the thoughts of spring on hold. another major storm is crossing the u.s. it is packing snow levels that rival anything we have seen this winter. meteorologist maria molina live in the fox extreme weather center. how much? >> bill, does not look too good. depends where you live. in minneapolis you could look at amounts just shy of a foot. chicago this could be the biggest snowstorm so far this entire season. you could pick up well over six inches of snow. washington, d.c. as we head into wednesday you need to watch the system very closely. we're under a winter storm watch because you could pick up five inches of snow. we're in a snow deficit across-sections of the mid-atlantic including you in d.c. and baltimore and philadelphia. we do actually need a little

bit of snow. the area of low pressure is centered across the state of montana. well ahead of system we're picking up snow in north dakota, minnesota and parts of wisconsin, all the way down into illinois. we're starting to see some of that snow coming down. winner storm warnings in effect from minneapolis all the way into the city of chicago. it is not just how much snow we're going to get is an issue. it is also the winds that will be gusting 20 to 30 miles an hour at time. it will produce blowing snow, whiteout conditions and dangerous traveling conditions. it is not recommended in portions of minnesota and down through portions of illinois especially when we head into tomorrow when the storm starts to intensify. by wednesday we expect it across-sections of the mid-atlantic. still unearned where the exact center of storm will go. these are snow totals for particular cities. d.c. you could see over five inches of snow. some rain will mix n. parts of west virgina, bill, higher he will is cans --

elevations could see the ten inches of snow. bill: that is the march line. >> good for ski others. bill: that's true. thank you, maria. martha: former presidential nominee mitt romney weighing in on the tax debate gripping the country. anchor of "fox news sunday" chris wallace talked to mr. romney and his wife ann in interview we saw most of it over the weekend. he joins us with what you didn't see on sunday. good morning chris. >> that is exactly right, martha. we ran a lost interview but he had more things to say. one. key issues was the ski questionster and the mandate that the president got with his victory over romney in november. take a look. the president said he won a mandate to raise taxes on wealthy. >> on tuesday night we found out that the majority of americans agree with my approach. >> do you agree voters sent that missage, gave him that mandate? >> two things. he won but a majority of republicans were elected to

the house, the people's chamber. so they also won. they ran on a platform of saying not to raise taxes. but the president won. and he got what he wanted. now he is saying i want to do it again, i want to do more. i don't think that is the right course because that will hurt the economy, make it more difficult for jobs to be created for the people that need those jobs. >> so how would president romney, at this moment, be handling your opposition in congress, the congressional democrats? >> well, first of all i can go back to my experience as a governor, and that is you don't attack the opposition when you need to sit down and work with them. number two, you show trust. you don't change the deal. you don't move the goalposts. bob woodward said the president has moved the goalposts on sequestration. the currency in politics is trust. number three, you have to spend time with them. instead of being out with campaigning which causes people to retrench. i think republicans feel

that the president may be more interested in getting nothing done in these next two years and trying to replace republicans in the house so he can have it all democrat house and senate and then be able to run the field. and he really doesn't want to get the job done. i think there is growing feeling that may be the case. of course if you're a republican you're going to say, whoa, we better, we better be careful here and so the interests of the american people are being held hostage by politics. >> during the campaign the obama team hammered you for having investments in the cayman islands. >> out of touch. a prospect of a president with a swiss bank account and a retirement investments in the cayman islands? >> it now turns out that the new secretary of the treasury, jack lew, had investments in the cayman islands. >> so did the president. the president had investments in the cayman islands. now this is a normal structure for investing in private equity and venture

capitalism. by the way people pay full u.s. taxes whether they have that vehicle or not. but look, the president's campaign was not one of laying out fairness. they tried to attack me and demonize me. that is the nature of a campaign. they couldn't talk about the president's record on the economy so they went after me personally and did it effectively. >> what do you think of the eight republican governors, including people like chris christie and john kasich, who opposed obamacare but now decided to accept federal funding to expand medicaid in their states? are they making a mistake? >> i think each governor has to assess what is right for his or her respective state and i'm not going to second-guess them state by state. if i were governor of massachusetts, i would have to look at what our citizens needed, what was best for them. it may hurt them politically, i don't know but i think that those governors are doing what they think is right for the people of their state. that is what they were elect to do. >> more than 80 republican

leaders, including some of your former top advisors and donors have now signed a legal brief calling for a constitutional right to marriage for same-sex couples when the issue comes up before the supreme court. has your position on that evolved at all? >> no. i believe that marriage is a relationship between a man and a woman and that is because i believe the ideal setting for raising a child is where there is a mother and a father in the home. other people have differing views and i respect that, whether that is in my party or in the democratic party but these are very personal matters. my hope is that when we discuss things of this nature, we show respect for people who have differing views. >> you know, i want to pick up, martha, on one thing that romney said earlier in that interview when he suggested that perhaps obama doesn't want a deal. that he wants to make this a campaign issue for 2014 so that he can end his time in the presidency with a democratic majority in the house and senate the way he

began it with a victory, with a majority of the house and senate. that is growing feeling among republicans that you heard mitt romney express in our interview. martha: it certainly is. it was very interesting to hear how he answered your question, chris, what he would be doing. how he would approach it as a leader which he is clearly think the president is not doing. he said number one, don't attack. number two, show trust. and number three spend time with your opposition. those are three things clearly the president really has not been doing, right? >> i couldn't agree with you more. i thought that was just fascinating and you know i think that is the thing that frustrated him most as he said in the interview we ran on "fox news sunday." it kills him to think could be a golden moment to make a big deal to solve the country's physical problems. to be wasted on politics. owe think is the president all about campaigning and not doing hard work as a leader which is to get the guys together in private rooms, no attacks, no

politics and just work and work and work to make a deal and he said if you're out campaigning and bashing these guys, you can't then play the inside game as well because it destroys any trust. >> yeah. it's a big gamble really when you look at it that way for president obama, whether or not the legacy helping to usher in democrats to have a democratic congress in the last part of his presidency will outweigh what he would have gained if he had as mitt romney suggests, shown leadership and been able to pull people together that is political gamble. i do want to ask you about this other thing i thought was really interesting when you asked him about same-sex marriage because i think about the next presidential election and what will will hear from a possible gop candidate because clearly mitt romney did not resonate with a lot of groups out there, with hispanics, with people in favor of same zacks sex marriage. he was seen out of touch on a number about those fronts and he seems to be sort of sticking to the way that he presented himself then. >> well, that's right. so interesting, because in

the interview he talks about the fact that we didn't communicate with people. he talks particularly about minorities. you have a lot of issues that are of greatest importance to minorities like, in the case of hispanics, illegal immigration. whether there should be a path to citizenship. obamacare, a program very important to people that don't have health care and also in this case about same-sex marriage for another constituency. he is not changing his views. so the question is, well, if you want to reach out to these people but you're not going to change your views, how do you have anymore success than you had in november of 2012? martha: yeah. and the other thing is, how successful the obama campaign was in portraying him as out of touch, and you know, you spent a great deal of time with them. a number of people spent time with them over the course of the campaign as well. they come across in a different way than they were portrayed. we saw that joe biden thought. they were very successful looking back at pinning him that way, weren't they? >> well, interestingly enough, one of the things,

one of the keys to the election was that between april, when he became in effect the nominee in august, he was out of money and that is when the obama campaign really bashed him both on tax returns, and also bain capital. and i asked him about that. i said i know you didn't have money but couldn't you have done more to blunt that? you know, we tried and we did have a money problem, we did try to do it but it never moved the meter when we would do things like that. the only thing that would move meter in our polling when we, the romneys attacked obama on his programs so, you know on the one hand i think he feels badly bit but i'm not sure he think it is would have made a difference in the election. martha: so interesting to see somebody who has been through this process and who is licking their wounds from the things that went right and things that went wrong and what they do next. chris, thank you so much. fascinating interview. >> thank you, martha we were talking on friday just previewing that for the show on sunday. it has been four months since we heard from him. fascinating now to look back

not just over the campaign but also how he views the way washington is working. martha: if you don't go right back in, senator mccain went right back in as a senator. he always said he would be perfectly happy to return to that role. he loves being in the senate but it is very tough for folks in mitt romney's position to figure out how you go on, what you are going to do next. bill: good point. there is a new report out, martha, about iran's nuclear desire and what this move means for that regime's program now. we'll tell you about that in a moment. martha: this is an awful story. a nursing homeworker refuses to help a woman, who is dying at that nursing home. the shocking 911 call. what happened here? >> hand the phone to the passer-by. >> anybody there can do cpr. give them the phone please. >> i understand if your facility is not willing to do that. give the phone to that passer-by, that stranger. i need, this woman is not breathing enough. she will die if we don't get this started.

martha: well horrific multicar crash in kentucky leaves six people dead. it happened on interstate 65 just south of louisville. two crashes took place within minutes of each other in the same spot. six people were killed in the first accident when a tractor-trailer rear-ended an suv in the second wreck, among the five people hurt, greg loman. drummer for country music star kellie pickler. he remains in serious condition. we'll keep you posted on that and update you when it comes in. bill: there is troubling news out of iran. that country's media suggesting it is closer than ever to going nuclear. iran claiming that it produces more than 3,000 advanced centrifuges used to make iran why -- iran yum. kt mark far lapped, former deputy of secretary of defense in the reagan administration. >> good morning. bill: the number,000, is that important, is that significant? is that a hoed line?

>> it is not significant in itself but significant what happened last two or three weeks with iran. there are a indications they decided they made the decision they're going for it and nothing is going to stop them. what are those indications?. these new centrifuge. a centrifuge is basically like the spin cycle in the washing machine. you spin it a little bit you get the clothes a little dry. that is the uranium you use for medical research. bill: faster you spin the higher the quality? >> got it. you spin then you get enriched-uranium. bill: last week on foxnews.com, it was reporting a leading nuclear scientist from iran traveled to north korea to watch its latest nuclear test. now is there any doubt these two countries are working together in your mind. >> no. that is not the first time that happened. the north koreans tested missiles for example. they call them the taepodong missile. they cast it and sell it to iran. all of sudden the iranians get it. they paint the side of it. they call it a shahab

business missile. i think they were working in conjunction. why is that significant? iran says, north korea, that pipsqueak after country, nobody stopped their nuclear program. they tested missiles. they tested nuclear devices. they talked about nuking new york. nobody stopped them. we're a much more bigger and powerful country. bill: they're taking cues on reaction and so far the reaction has been very little? >> yeah. bill: if iran were to announce it was nuclear tomorrow or a week from now, what would change? >> well, i think the whole world changes and that's why they will be very reluctant to stop their nuclear program at this point. first of all, what happens, iran becomes a dominant country in that is right. world, in the persian gulf, 40% of the world's exported oil comes from. secondly, they have nuclear weapons to threaten israel. now they talk about doing it all the time. maybe they don't want to go nuke tel aviv but the fact they talk about it, if you're israel, you can not take that idlely and lightly.

you think somebody who talks about incinerating your people and has the ability to do so has to be taken seriously. then the third thing, the one i think affects us there is nuclear arms race in that part of the world, the most dangerous, unstable part of the world that has the world's oil. bill: now you mentioned israel. there is lot of talk, parlor talk or perhaps it is real about striking iran first. >> yes. bill: short of bombing iran, what are the three things the united states could do? >> okay. i never wanted to be in this position where you either let iran get the bomb or bomb iran. i think that there is still not much time but there is still a little bit of time. i would do three things. one, get our own oil. build that keystone pipeline. develop u.s. oil resources in north america. to the point where we are independent then. we don't need to rely on the middle east oil. we don't need to be pulled into every middle east conflict. bill: sounds logical. >> sounds logical. cyber weapons. we've seen the cyber attacks that stuxnet worm, flame, the ones that we think we've not admitted it but we think

the united states probably and israel have done against iranians. they were very effective. bill: setting the program back. >> don't stop it. but set it back. so you buy a little bit of time. i think third thing we failed it do and reagan did to such effect talk directly to the iranian people. tell them we want you to be a great power. we don't mind you have nuclear weapons. we mind this iran, this leadership. they talk about threating the world and nuking throughout the region. bill: you would speak directly to the iranian people. >> absolutely. bill: didn't a top leader reject a request from joe biden to talk directly? >> that's why you talk directly to them because the supreme leader of iran, you're so smart to point this out, he is the guy that really makes the decision. he just rebuffed vice president biden's request for direct negotiations. what the united states should do, our leaders, go over the head of the iranian government directly to the iranian people. let them have the arab spring one more time. bill: wow, appreciate your input. thank you, kt talk to you later in the week.

>> thank you. bill: kt macfarland here. 12 minutes before the hour. martha? martha: back here at home a financial meltdown in a major u.s. city. why unions could be part of the problem. also breaking news just moments ago out of london, on queen elizabeth. we'll be right back after this.

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bill: so the dark night rises in england. literally. check it out a real life batman. a potbelly caped crusader dragged a burglar into the station. he is trying anyway, right? martha: boy. bill: never revealed his identity, telling officers, quote, i've got this one for. >> awesome. bill: before vanishing into that dark night. martha: all right.

from one hero to another. brand new video showing queen elizabeth the ii, leaving the hospital. look how good she looks. she is walking down the steps in her nice red dress. she is fine as evidenced by video. she was in the hospital after overnight. i am mow between lloyd webber is a entertainment reporter. she joins me now and well-schooled. good to have you here. as we anticipated she is tough, she is fine, right. >> absolutely. she is infamous for robust help, even news of boeing into the hospital. she is 86 years old. only been in the hospital five times in her entire life. martha: how many of those were for babies? >> first time since 1982. and then of course, she just been hospitalized but is out and doing absolutely fine. yeah. martha: it is fascinating to watch here. she is 86 years old. >> yeah. martha: i think a lot of people talked to jubilee whether or not she would be able to exceed queen

victoria, the longest reign in british history which is 64 years. you know, certainly good genes run in her family, right? >> her mother lived to 101. she will certainly be hanging on. she hasn't been in the hospital for ten years. she is opening a lot of hospitals but hasn't been in one. that has to be a question mark though. she did 425 official engagements in 2012. she is 86 years old. her husband is 92. there has to come a point perhaps we're asking a little bit too much of them. she is not the "bionic woman." maybe we'll see the younger royals stepping up even more. i think only a matter of time before a prince william become as full-time working royal. martha: feels like they started to move in that direction. to bring them in more. the birth of their child will be happening over the summer. that will be important as well. there is always so much discussion, let's pull up a quote if we could from when queen elizabeth was 21, when she took on the job. you have the pope stepping down, unprecedented. first time in 600 years.

this is a picture it of queen elizabeth on her 21st birthday, when she was about to become queen. she said we must giving noing less than the whole of ourselves. there is a notory which has been borne by many of my ancestors, a noble motto. i serve and declare before you and all, my whole life whether shall be long or short will be devoted to the service and service of our great imperial family which we all belong. she doesn't believe in stepping down. >> she absolutely doesn't. she is figurehead to 2 billion people. what happens to her affect as third of the world population. this is why it is news when she goes into the hospital. she made an oath to god. she won't be stepping down but younger members will step up more. we've screen younger royals doing overseas tours a bit more. but long may she reign. martha: there was a, some of the web sites, sort of popping up pictures of charles as the next king and raising the question again, would she overstep charles and want william to exceed her, also highly unlike.

>> that wouldn't happen. william wouldn't allow it. his father will probably have a very short reign. take over in his 80s and then it goes to william. the queen will not be stepping down. prince charles will inherit the throne and william and baby bump. martha: the baby will be auld talked about in july. >> yes. martha: boy or girl, it will be next in line. >> absolutely. it is, we know women make great monarchs. queen victoria, queen elizabeth the i and queen elizabeth ii. martha: we're glad she is out of the hospital. she looked great. always good to see you too. bill: she is not retiring? martha: no. bill: she is staying on the job. >> for life. martha: for life. bill: cardinals from around the world getting ready to pick the new pope. what they are deciding in a critical meeting today. we'll tell you about that. martha: emdid legs going on right now where a sinkhole swallowed an entire bedroom of a house and killed a man. this is an unbelievable

story at the end of last week. the threat of experts now say this sinkhole is causing to the entire neighborhood. >> my father's retired navy. he spent 20 plus years and, we were afraid that a lot of his memorabilia from being in the service was lost. i mean i know i could replace it. it is just not the same as the original. 4ñyñ9s÷xq

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martha: all eyes are on rome this morning where the cardinals from around the world are gathering for their first round of talks. they will decide when they'll decide about the next pope. welcome to a brand-new hour on this monday morning in "america's newsroom." great to see you, everybody, i'm martha maccallum. >> i'm bill hemmer. they have to make a decision soon. today's meetings will help identify the top candidates to lead the world's 1.2 billion candidates, a field that remains

wide open from candidates from every corning are corner of the globe. martha faces will look very familiar to everybody soon. amy kellogg joins us live in room. what more do we know about the exciting happenings there today, amy? >> reporter: i have to say, martha the scenes outside of st. peters square today were not really consistent with the solemn undertaking that was about to begin. it was actually crazy with paparazzi getting their camera lenses into the faces of the cardinals as they made their way to the hall, the reporters absolutely mobbing every cardinal as he made his way to his meeting. it was reminiscent of a skaep scene outside of a courtroom. they took it well, they smiled, but they revealed absolutely nothing.

the meeting got underway today and they had an afternoon break. we had a briefing from some of the u.s. cardinals who said so far it's been about logistics and nothing more. they have taken the solemn oath to keep the proceedings of the conclave secret once that begins. we spoke to cardinal whirl about what he hopes will be achieved here in rome. >> the call is to see someone who sees the work of the church today is to get the gospel out there, to invite people to experience god all over again, to invite people into that wonderful relationship with god all over again. we have too many people that i believe haven't really had that invitation, people who may feel they know what the church has to say, and it doesn't have much meaning to them. we need a pope who keeps reminding us there is such a beautiful, spiritual side to life and we need to share it with people.

>> cardinal george from chicago cited saint thomas aquinos today and said they hope they will be quick in miking their decision. martha: how does the conclave actually work, amy. >> the meeting now, the kapbg tkpwaeugs i congregation is a chance for people to say what is on your mind. people over 80 can give their insight. it is appraiser full, martha they have to take an oath before they cast each vote each time. i believe that is in latin. what is understanding about this is they have to disguise their handwriting as best they can when they cast the secret ballots because they want this to be completely confidential. martha: so understanding, amy it

will be fascinating to watch this process. there are so much high hopes i think in terms of the selection. we will be watching you all the time, amy. thanks so much from the vatican. bill: they call in the sweet sistine, the sweet sixteen, the top 16 candidates, who might be the next pope. the conclave date not set but expected to be decided once all the cardinals ae arrive in rome. benedict the 16 r- xvi will not take part in it. martha: bigger numbers of americans than ever in this process of electing the pope. eleven american electors will be in the conclave, all under the age of 80. you may recognize tim dolan the cardinal from the new york area. cardinal wirl, cardinal from the

d.c. area. they were both elevated in 2012. you wonder if they will vote as a block, if they will sort of get together and decide who they want to support. it's going to be really interesting. i think there is so much hope for somebody -- bill: oftentimes i like even it to a fraternity. when you socialize you try and influence toward one person perhaps away from another or maybe even be on your own behalf. all this is possible now as they get together and decide the next leader. do you like sweet sistine. martha: or the animal house reference better as to what is happening in rome. bill: four minutes past the hour. potentially ground-breaking medical achievement. doctors claiming they have, quote, cured a baby born with hiv. jaime colby live here now with more. what do we know about the baby,. jamie: knee. >> it's exciting news to say the least, bill, but her hiv mom didn't have proper prenatal care

and didn't even know she was hiv positive. in this case not wanting to wait for test results the baby's doctor decided to use an aggressive course of treatment, more than normal for hiv infected inc infants. two and a half years later the doctors have said the disease is undetectable, and said she is cured. she didn't return for childcare, and the mom had stopped the testing. upon retesting the virus was gone. she went back and looked at the tests when the preventative treatment began and they were all positive for hiv. >> my first thought was to panic. i thought, oh my goodness, i have been treating a child not actually infected. >> there is one other reported

case of an hiv patient learning their virus had been turned. it was an hiv positive san francisco man who had leukemia and a bone marrow transplant. bill: what can this mean in the world's fight against pea at trick aid and that issue. >> reporter: an estimated 300 to 400,000 infants born globally each year with the infection. 90% of them are in resource-poor countries in africa. in the u.s. we are seeing dramatically fewer hiv births. scientists will do more research. they need to see if the what the doctor prescribed for her infant will work. what makes this case, bill, even more unique is you may know hiv patients undergo treatment for

the rest of their lives. this baby had stopped, no virus. bill: incredible. a huge breakthrough if it holds. >> reporter: we are happy to hear it. martha: casey anthony is heading back to court today, the florida mom acquitted in the 2011 killing of her two waoerld daughte-year-old daughter caylee. steve harrigan joins us live as she is back in the news again. >> good morning, back in the news. it's not clear whether or not we will stul here se actually see the 26-year-old as she enters or leaves the bankruptcy court. it gets started at 1:30. there are no cameras allowed in the courtroom. casey anthony has largely been in hiding since her 2011 acquit alon the charges of murdering her 2-year-old daughter kale leave. she has been ranked among the most hated people in the united state. people will know where she is in

tampa this afternoon. martha: we are looking at pictures of the acquittal that was a shock being moment. how has she survived over the couple of years and no job and claims to have only had a thousand dollars in that time period. >> there is going to be close questioning of her finances by the bankruptcy judge. she claims to have a thousand dollars in assets, no employment and $792,000 in debt, mostly to her attorney, jose bias. one poe tepbg alsna potential snag could be if she has a book deal o or a potential book deal. the judge might look into that in the proceedings today. bill: an american city buried in huge amounts of debt and high unmoment, now at risk of a state take over. how the republican governor is planning to turn things around there. we'll take you there. martha: how weird is this.

former nba star dennis rodman speaking about his bizarre visit and what he calls his new friend, in north korea. bill: a nursing home under fire for refusin a nurse not performing cpr on a patient there. >> is there anybody there that is willing to help this lady and not help her die? [ loud party sounds ] hi, i'm ensure clear... clear, huh? i'm not juice or fancy water. i've gotine grams of protein. that's three times more than me! [ female announcer ] ensure clear. nine grams protein. zero fat. in blueberry/pomegranate and peach.

bill: at the moment president obama about to name sylvia matthews burwell as the new white house budget khaoefrbgs the woman who would be the director of the office of management and budget known as the omb. currently the head of the walmart foundation. it's confirmed by the senate she would be the second woman to hold this post. all this streaming live right now at foxnews.com. you can check it out online now. >> a california nursing home is now defending a nurse who refused to perform cpr on an 8

seven-year-old patient. shear is the 911 call. you can hear the operator practically begging the nurse to step in and begin cpr for this elderly woman. listen to this. >> yeah, we can't do cpr -- >> hand the phone to the the passerby, anybody there can do cpr. give them the phone, please. i understand if your facility is not willing to do that, give the phone to that passerby, that stranger to have it then. this woman is not breathing enough she is going to die if we don't get this started. >> i don't know where he is, but she's yelling at me and saying we have to have one of our other residents perform cpr and so instruct, and i'm not going to do that. >> you're going to let this lady die? >> that's why we are calling the 11, i'm sorry. >> we can't wait, it's a human being. is there anybody there willing to help this lady and not let her die? >> not at this time. martha: not at this time. i mean that is a stunning moment to witness on that tape.

that patient ended up tkoeu dying at the hospital. i'm joined by dr. marc siegl, professor at langon medical center. seth barronstein is louisiana aur, you can beat there are legal issues that prompted this for sure. what is your reaction to that. >> i'm shocked about that. delay is the issue. it is so absurd to be calling 911 to get emergency medical personnel into a facility that in my opinion always should have that. the nurse that is there should be trained in cpr. the idea of a passerby doing it, what about the nurse? all facilities like that should have crash carts, emergency carts or at least defib r defibrillators that they can used if the heart stops bleeding. if you delay until the ambulance arrives your chances are of

survival are less than a%. if you use cpr and a defibrillator if needed you can go up to a success rate of up to 75%. that is really the issue. they shouldn't be making a decision by the way of who is going to want to be resuscitated and who isn't. if they don't have a dnr order there they should resus state everyone. martha: the legal side of this is what this is all about. this is what their policy is according to the executive director. in the event of a health emergency at this independent living community our practice is to immediately call emergency medical personnel for assistance and to wait for the individual -- wait with that individual needing attention until such personnel arrives and that is the protocol that we followed. it's also worth mentions that this is the home's independent living community. they also have two other facilities, they have an adjacent assisted living

facility, and a skilled nursing facility. they say the policies are different in those two. when they sign up to live independently they know this is the policy. let's go to our lawyer, what do you think? >> i think the situation is obviously outrageous. this is the perfect storm of bad judgment. this facility made a bad decision by apparently telling their nurses, who are clearly nor by and within the zone of assistance that not only should they not immediately provide assistance but that they are disqualified and they should have hands-off. that is an absolutely outrageous application of the policy. this nurse had terrible judgment. she stood there and apparently watched this woman gradually die. this is the perfect form of bad decision and at the end of the day legally although a company, an employer has broad latitude and discretion to provide policies they can't do it in way that puts their clients and customers at clear reus be. risk. even summer lifeguards know how

to apply cpr. she abandoned her training. there is no justification with regard to either the facility or nurse in my opinion. >> martha, this is an independent living facility. plenty of people have medical problems here and by report she supposedly still had some breathing at the beginning. the idea is people are going to be prone to this kind of thing and they need to have a policy, medically, legally where they have to intervene in a situation like this because there could be a possibility to save this woman. martha: it's just stunning to listen to this woman standby. i wonder what it says about our society. because she's standing there and she's saying this is our policy. she's saying this woman on the phone is telling me i have to do something or we have to grab one of the other people who lives here to do something. i feel like we have in some places in society become exempt from human feeling and the need to forget all that and jump in and help out. >> you can't stand on legal ceremony while a person is in front of you dying. i think that this nurse did

constitute trained medical personnel. if she didn't fall within the policy, then what she was doing there and why was the facility telling her that she was prohibited from applying life-saving medical care. absolutely outrageous, no factual or legal reason for this. >> this is really very disturbing. the policy of the place needs to be changed immediately. martha: gentlemen, thank you. i guess this is a warning for anyone who has a loved one in this kind of place to check out what the policy is and make sure you're very familiar witness and you understand the circumstances because this is a very unfortunate situation and very sad. thank you very much, gentlemen. bill: that operator tried and of oftentimes we report on stories where the operator dropped the ball. not in this case. martha: she said just grab anybody. even a little bit of pressure on that heart in that situation

might have got even her the time she needed until they got there. bill: a man pulled to his death by a sinkhole. we have brand-new reaction now from the man's family. why they say more could have been done. >> i love my mom and dad with all my heart, and i just want my mom and dad to know that i love you and i tried to save your son, i tried my hardest.

thyou eat less...ing weiyou lose weight.et. it's a great plan... until you get hungry. that's the time to take slimful. one tasty 90-calorie slimful and a glass of water satisfies hunger for hours making it easier to eat smaller meals, and resist snacking. your friends might think you found the secret to losing weight. but it's no secret... it's slimful. eating less is a beautiful thing. the first woman allowed to come both at an nfl regional combine. lauren silverman's big moment was short. she lasted only 19 yards. she blamed it on a quad injury she was suffering. while prepping for her try out this.

>> i wanted to work through it and i certainly tried to, but she couldn't do it today. i know i can do a lot more. it's too bad that this happened. but i had to do what is right for my body, so i did the right thing so i can come out and keep kicking in the future. martha: here that, don't count her out. 28-year-old silberman is not done yet. as to the questions of whether or not it was a publicity stunt the nfl says she was invited for her athletic ability. shy did play club sock tpher college. bill: she won a kicking contest too. martha: she didn't win one that day. bill: correct. martha: keep hanging in there. bill: staunch opposition, lawmakers in two states say they are considering extending the kind of in-state tuition benefits that are typically reserved for legal residents, and extending those benefits to

illegal immigrants. dan springer is in our seattle bureau on this. are republicans changing their position on this story? >> reporter: well, bill, it's a big question, but in general it seems that there is an effort to move the party to a softer stance on what to do with people who are in the country illegally. you've got the marco rubio task force looking for a path to citizenship and two states who have long opposed tuition states for illegals are poised to pass them. it will mean undocumented students who have been in oregon and colorado and five years and graduated from a high school there will be able to pay in-state tuition, and it's a huge savings, $21,000 a year difference in oregon between in-state and out of state tuition. for carla who is a high school junior in portland and an illegal immigrant who came here from mexico at 4 years old it means a legitimate shot at a college degree. republicans this both states helped put the bills over-the-top. >> it's been too easy to cast

republicans aside and say they don't care about this. i think we are showing that we do share similarities with the hispanic community and our values are very closely aligned. >> reporter: the democratic governors in both states say they will sign the tuition equity bills into law. bill: not everyone, i'd imagine is happy about this shift. explain that, dan. >> reporter: well, no, we interviewed a college student at oregon state university who is paying out of state tuition because she grew up in california. she can't understand why someone who is in the country illegally is getting what amounts to a great state subsidy and she is paying north of 22 grand a year. 13 states already allow illegal to pay in-state tuition rates. opponents call it pandering by republicans that will not help come election time. >> you should stand on what is right. to give special benefits to people who are illegally in the country, to the detriment of citizens is flat out wrong.

>> reporter: but others argue the g.o.p. has to do better with hispanics at election time. governor romney as you know got just 27% of the hispanic vote in the 2012 election and republicans say they cannot survive in the changing demographics with that type of number. bill: we'll see what comes with this. thank you, dan. dan springer live in seattle, the pacific north wets. martha northwest. martha: former congresswoman's gabrielle giffords' husband is taking his fight to a new state. bill: former nba start dennis rodman talking about his visit to north korea. why he says the leader, kim jong un wants president obama to do one thing, only one thing he said.

martha: the husband of former congresswoman gabrielle giffords expected to testify in support of a key gun control measure in colorado. a lee alicialicia acuna live from denver. what are they looking at today. >> they are actually debating seven different gun control measures today. four of them have already been approved by the colorado state house. former shuttle commander mark kelly will be in denver to testify in support of one those

measures which calls for mandatory background checks on all private gun sales and transfers. kelly testified before congress earlier this year you'll remember and the woman who tackled the tucson gunman who shot kelly's wife, congresswoman gabrielle giffords will also testify in support of another bill that will ban high capacity magazines of more than 15 rounds. >> i'm a republican and i want to see these bills passed, because they are the right thing to do. >> we are allowing politics to take away the safety of our community, because people are afraid of the nra. it's ridiculous. nothing gets done, i tell you, these legislators are going to be responsible for what happens beyond here. >> reporter: and we are being told the debate will probably go well into the night if you can imagine. martha: it's become quite heated in colorado. it's a real battleground for this debate isn't it? >> reporter: it rao*el i is. at times the vitriol has become

pap pabl. both houses of the colorado legislature are controlled by democrats, on the senate side it's tighter. things are quite personal when it comes to gun control in the state of colorado, in particular there is one representative, rhonda fields who lost her son, she is a democrat, she lost her son to gun violence. she's been in a heated battle with gun rights advocates. she also represents the district of ahh roa auroia. one ban has passed the house. it could bana shotgun. the governor says he's going to sign it. >> they are coming after the standard shotgun. hrupbs ohundreds of thousands of pheasant minute hunters will be carrying around a gun they won't be able to replace after july of this year. >> others testifying this week in the state of colorado are those affected by the columbine shooting. the aurora theater shooting and

the sandy hook shooting. martha. martha: thank you very much. bill: the white house appears to be dialing back the doom and gloom ple predictions but they are not backing down on whose fault this is, that would be house republicans. near is senior white house adviser jean sperling on that. >> nobody suggested which this harmful sequester which the speaker himself would be devastating to national security would have all its impact in the first few days. it is a slow grind. make no mistake about it, you can't cut $42 billion from defense in seven months ab not hurt jobs, veterans, veterans are often those who work in civilian military jobs. you're going to hurt a lot of people. bill: the phrase there was a slow grind. tony sakes, and kirstin powers, both fox news contribute *ers contributors, how are you

doing? the president on friday was predicting that job cuts would come immediately on capitol hill and that did not appear to be the case just yet, tony. was sperling talking with the same tongue that the president was or not? >> even "the new york times" last week warned the president not to be the president who cried wolf. he had obviously taken to the stage to create the impression that she's cuts were going to be so drier and drastic it was almost a doomsday scenario. arne duncan came out, and said teachers were being furniture load in a west virginia county. the president the day of his meeting with congressional leaders said janitors on capitol hill were going to be having their hours cut. that was proven falls. bill: they said that will not be the case. you're starting to see these articles written about a credibility issue for the president. if it doesn't happen, what is your view of that and how that affects him? >> you know, i don't really understand why they are making up stories about people losing

their jobs bike the janitors, when in fact people are going to lose their jobs. the reality is it's not necessarily going to be an apocalypse but it's going to be bad. if cbo says it could be 700, 750,000 people losing their jobs in a very fragile economy. that is not a minor thing. and so by exaggerating it it actually detracts from the message which is that this is actually serous. bill: that whole point about layoffs, you wonder why it has to be that way. because we're spending all this money, 3.5 trillion this year, i mean somewhere you can go in there and save extense spencess. tk-rbg roy murdoch wrote this over the weekend. imagine that your boss nicked your pay 2.4%. would you dodge next month's rent, skip your insulin purchases or unplug your refrigerator. you'd most likely untphrug your

refrigerator to lower your power bill. president obama would make premium cable over paying his landlords. >> the most inexplicable thing to me is that okay, we got to the sequester, blame to be shared as we always say in washington. there are structural problems with the kay things are getting done. but the republicans a week ago decided to give the presidenttyd these drastic bad cuts and select what he would replace the cuts with in the sequester. remember, the president wanted this exact power to avoid a debt ceiling showdown back in september. when the republicans gave him the chance and said okay let's not cut money toys aeubld kids, military families, poor children, first responders. bill: he said he did not want that. keurs teen, whkirsten why would

he not won't that? >> i don't know. the only real explanation is that he want withed the sequester to take effect in the way it's been structured, which will be the most damaging. both parties supported the sequester, you know, the republicans voted for it. i guess now they are trying to fix the problem, and the president should agree to this. i mean, they should give the flexibility to the departments to make the cuts where they need to be made. bill: he's not going with it so far. >> i suspect he's going to come around on it, because it's not -- there is no defense for it really, that i can think of. bill: one more point to make on this. for five years americans outside of government, i mean they've been rearranging their lives in make ends meet, and the first of the year he had social security tax go up 2%. for the first time the federal government is starting to feel what the rest of america has gone through. i have 20 second left for both of you. tony, take that. >> bill, this is the exact poi point.

republicans are compromising. we don't want defense cuts, it's been sacrosanct for republicans not to put the pentagon. we under in order to get our deficit and debt under control we have to give in on something and we gave in on defense cuts for the president. it's a good sign of compromise and he should take that good faith and compromise himself. bill: >> i don't think the republicans are acting in good faith at all. the argument about moving the goal post is completely skwhrufpbl. juvenile. there is no reason why they can't give a little on closing loopholes, something they say they have supported in the mast and mid a real deal with the president. bill: you're in washington, you'll see how the city changes or not. you'll be our eyes and ears on the ground, all right, powers? >> we are on it. martha: former nba star dennis rodman speaking out about his bizarre visit to north korea last week and his meeting with its leader, kim jong un. he spoke to george stephanopoulos and he says he

doesn't want to make any excuses for the man that he describes as, quote, a friend now. and he says kim is open to building a relationship with the united states. this is so weird, listen to this. >> you called them great leaders, do you really believe that? >> i saw in that country, i saw in that country, and i saw people respect him, and his family, that's what i mean about that. >> aren't they forced to? >> well, i say no, because i think he's going to change something, he's just a different view. i sat with him for two days and the one thing he asked me to give obama something to say and do one thing. he want obama to do one thing, call him. martha: i'm sure he's going to jump right on that advice, right. bill: i doubt it. martha: if i had known he wanted me to call him i would have called him a loaning time ago. bill: you know what i was thinking after i was watching sir dennis here. we should wear sunglasses in the studio because the lights are really bright. welcome home dennis, home you had a great trip over there.

martha: a nice guy. bill: the motor city is in need of a state take over, is that what is about to happen in michigan? are unions the reason for the big meltdown? we'll look at that fair & balanced. martha: that you can about being in the right place at the right time. the amazing story of a construction worker who saved the day for that little boy. >> i saw women crying, and they were shocked. i don't know how -- i was like -- i was socked too seeing this so i pulled over to the right shoulder.

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to help protect your eye health as you age... would you take it? well, there is. [ male announcer ] it's called ocuvite. a vitamin totally dedicated to your eyes, from the eye care experts at bausch + lomb. as you age, eyes can lose vital nutrients. ocuvite helps replenish key eye nutrients. ocuvite has a unique formula not found in your multivitamin to help protect your eye health. now that's a pill worth taking. [ male announcer ] ocuvite. help protect your eye health. bill: a california maintenance worker is a hero, saving a toddler who had a seizure and stopped breathing. this man is joe thomas. he says he was on his way home from work when he saw two women crying and waving for help on the side of the road. that's when joe thomas pulled over and went into action. here he is. >> the white stuff that was on his face, and i started doing my

compressions on his chest, and his back. bill: wow, it worked. five minutes later the little boy started making gasping noises and breathing on his own. doctors say the seizure was probably brought on by a fever that that little guy had been fighting. he's okay, though. martha: so financially-strapped detroit, michigan is now one step closer to being taken over by the state after the governor declared a national emergency in the motor city. latest unemployment rate in detroit, look at that, 18.2%. it has averaged that number for the last year. 36% of people in detroit live under the poverty level, and they have lost one quarter of their population, dropping to 707,000 rest den. joined now by two gentlemen that will take a look at this with

us. steven moore a senior writer, and matt mccall. president of penn. this is a big american city that has fallen on incredible tough times, steve. >> you mentioned the population down a third in the last decade, it's down by more than half over the last 25, 30 years. this was once one of the five biggest seattles in america. i would make the case for you martha, remember this is what happened to new york city back in the 1970s when it couldn't pay its bills. this might be the right solution. what is really bang rupgt the city right now is those outrageous lee inflated pension and healthcare benefits to retired workers from the city that aren't even working any more, rant providing city services. martha: there's about 50 unions that have hold over various parts of the economy in detroit, and a lot of people are pointing at that as one of the biggest

problems, matt, because they have promised way more than they can ever afford to pay. that is the basic math of it, isn't it? >> absolutely. you come up with one reason why detroit is in and, it's the unions. it's clear and similar tell. the unions are destroying detroit and many other industries. this ties into the autoindustry. what was the problem mr., the unions. you have 48 unions they have to deal with. billions in dollars in unfunded pensions and health costs. where is the money going to come from? the politicians in detroit now aren't going to do that. you have to bring in somebody from the outside to take care of that. martha: you bring somebody in what power does that manager have to fix those union contracts? is that possible? >> the reason a lot of these major cities, you know, a lot of cities in california that are also facing bankruptcy, are looking at either a receivership or the bankruptcy option, is this may be the only way,

martha, to get out from under those enormous contracts and those obligations, because once they file for bankruptcy then all the contracts are null and void and they can be renegotiated. that's what a lot of city managers are looking at doing right now, because if they stay on the path they are on right now, martha, one out of every three tax dollars collected from a shrinking tax base would go not for services, schools and roads and parks and emergency services, but to pay for pensions of people who are retired. you just can't run a city that way. martha: you know, mat matt back to the election and president obama talking about saving detroit and how the car industry was one of the great victories of the first term of president obama. how does that play into what we're talking about here, or does it? >> if it was a great victory you'd have a lot of people wanting to move to detroit for an expanding auto industry. unfortunately our auto industry is not expanding. the only reason gm and ford are doing see sent is because of overseas sales. there is nothing to do with domestically right now.

taking a look at detroit, the economy is based on the autoindependent straoerbgs let's get real. the fact that the auto industry is not doing well means detroit is not doing well. it's a failure. the top five largest cities in our country is about to go bankrupt, he didn't say anything, the auto industry or detroit. >> the auto industry actually is doing pretty well, it's just not in michigan any more. >> it's not in detroit. >> exactly. the motor city isn't the motor city any more. it's states like tennessee, texas and alabama that are making the cars. martha: what drove them away? it's because they didn't have to deal with the unions in those states. >> exactly and right-to-work laws. michigan should become a right-to-work law, that would bring some of the jobs back. martha: here is the list, the u.s. cities going broke. stockton, california. detroit, michigan, pontiac michigan, central falls, rhode island, the story of

manufacturing tha. bill: what is happening jon scott standing by. jon: there are new warnings out there of a massive cyber attack if you use online banking. we'll tell you what you need to know, plus a patient collapses at a retirement home and a nursery fuses to give cpr. now the woman is deed and the facility is defending the nurse's actions. we'll discuss the legal fallout sure to come. march coming in like a lion, forget spring. another winter wallop is on the way. we'll tell you where all on "happening now." see you in about 11 minutes. bill: see you in 1 minutes. 11 minutes. there was tragedy for the family of a florida man, swallowed whole by a sin sing sinkhole.

>> my two-year-old daughter keeps asking, where is jeff? let's go get jeff. let's dig jeff out of the hole. mommy and dadee let' daddy let's go home. and i have no home to go to. hey, our salads. [ bop ] [ bop ] [ bop ] you can do that all you want, i don't like v8 juice. [ male announcer ] how about v8 v-fusion. a full serving of vegetables, a full serving of fruit. but what you taste is the fruit. so even you... could've had a v8. i started playing football when i was 7 years old. following my junior season in college, i was diagnosed with cancer. the doctors told me that i would not be able to play football again. during recovery, i wanted to give it everything i had, from training to a good rest. i had tweeted i couldn't wait to get in my tempur-pedic. the company had seen it.

they said, "are you really a tempur-pedic owner?" i said, "yes, i am, and i'm very proud of it." i can't imagine living without my bed. my name is mark herzlich. i'm a professional football champion, a cancer survivor, and a tempur-pedic owner. when i take a picture of this check, it goes straight to the bank. oh. oh look the lion is out! no mommy no! don't worry honey, it only works on checks. deposit checks from your smartphone with chase quickdeposit. just snap a picture, hit send and done. take a step forward and chase what matters.

you might ask yourself, who is that with all that huge number of photographers around, that is casey anthony as she went into a tampa courtroom, her head covered, the paparazzi all surrounding this young lady who was acquitted of murdering her 2-year-old child in a case that gripped the nation. she's been pretty much in hiding, nobody sees much of

casey anthony. today she is back out and that is the situation that greeted her. she is in bankruptcy proceedings trying to prove to the court that she has no money, so that she can file bankruptcy. bill: who knew, right? also in florida, demolition resumes this morning at the home of the florida man swallowed alive by a sinkhole. fox tampa and april kellogg has this story. >> demolition crews are now back on scene at this home in eastern hillsborough county, the plan today to bring down this house. that's when engineers should be able to determine exactly how large this sinkhole is, how stable or unstable the ground is and if it's safe for some of the residents to move back into their homes. in the meantime family members trying to salvage any sort blankses they can from this house, that is coming down piece by piece. think built, it is their family house for nearly 40 years for some of these residents, now the calls are coming down. the search was called off over the weekend for their loved one

jeffery bush e. he was the man sucked into the ground when the sinkhole opened up underneath his bedroom thursday night. the goal yesterday was to open up the front of the house from a safe distance so that the bush family could retrieve as many values as possible, pictures, a family bible, we're told, whatever wasn't destroyed. today it is about getting this house down so we can learn more about the sinkhole. once the house is gone that's when they can probably look into filling up the whole and determining whether it's safe for residents to come back into their houses. there were two families evacuated and staying at hotels and getting assistance from red cross. we should be getting a lot more answers as the day goes on. april kellogg, fox news. bill: thank you for that. absolutely bizarre they have not been able to find his body in that earth. martha: crazy story that is. so sad, you can just see that family going through the heartache of what has happened there. and also there is this growing

controversy over the number of illegal immigrants who were set free. what the department of homeland security is saying about this now. we'll be right back. america's news room.