become available. and this could be watergate two. who knows? that's all the time we have for. we'll see you hopefully back here tomorrow night. thanks for being with us. tonight, who would have guessed it's even possible? haven't they already found every way? nope, the federal government finding new and more ridiculous ways to waste your money. >> we're just throwing money thinking it will stick on the wall. >> it's laughable what they're doing. >> 679 different renewable energy programs. >> nobody knows what's going on there. >> the new eye-opening report about wasteful government spending just out. >> we're talking literally hundreds of billions of dollars here. why you would want to duplicate any of them is beyond me. >> looking over the reports are always fascinating. as a boy from north georgia growing up, i didn't realize catfish needed that much.

>> there are three government offices that inspect catfish. the gao thinks that could be slimmed down to one catfish inspection program. >> like when my child -- i tell him to do something and he says, it's hard, daddy, i don't want to do, and gives up. this is the part most americans don't understand. >> you have 381 recommendations since 2011 i think. what's the total estimated ballpark figure of savings to the government if all 381 were implemented? >> the estimate is tens of billions of dollars. >> i'm trying to figure out why it took $400,000 to redo the navy uniform when they actually looked like the other. that's -- i'd of done it for a lot less than that. >> we can't afford to continue to operate the way we're operating. and it needs fundamental re-examination. we can do better, and we have to. >> you're right, three different agencies inspecting catfish. 679 overlapping renewable energy programs. seven camouflaged uniforms for the military, all colors and patterns, of course.

sound like a waste of your tax dollars? the government accountability office says yes, it is. they say they can save billions, billions with a "b" by cutting wasteful overlap. and your thoughts tonight about the report, sir? >> it's a reality that unless we reengineer government we're going to continue to see this. to a great extent, this is similar to what we had last year and the year before. very few of these changes were implemented. about 20%. >> that's the insanity of it. why are we even spending money to have the gao go out and do these reports if wye don't do anything about it? we're wasting more money by having the gao do a study that we're never going to do anything about. >> the gao is a bargain. you get about $106 back in implemented savings for every dollar they spend. >> do they need the extra work to do reports, to try to figure out what was wasted so we can use last year's? >> they in fact build on last year. greta, you're exactly right. if we cannot get to where this

is what guess on instead of sequestration, the american people have a right to be fed up. truth is that many of the cuts that people are upset about are cuts across the board that only slightly touch bad and duplicate programs. in fact, we could save a tremendous amount. a good example is, in fact, the department of defense and those unifoermts. what's the point of having a secretary of defense and a staff if in fact he lets little fiefdoms in parts of the military do their thing again and again? it isn't sexy, but what's interesting is how many times we bought the same mapping programs simply because one agency didn't bother to see if somebody else was already essentially mapping the world. >> or they could go on line and google it probably. don't have to probably go out and hire somebody. >> and -- one of the things that came out was many of these are completely within the authority of the office of management and budget. these are things they simply have to do the job they've been told to do and agreed to do, including the fact that under

sworn testimony we were told that our earlier figure of about $80 billion in i.t. spending is certainly at least $100 billion if you include the fact that omb hasn't gotten everyone to report what they spent. it's those kinds of changes to cause us -- waste that causes us to want real legislative changes. the data act to mandate a reporting structure so we can see what is there and force it to change. >> all right. here are the two questions -- it's annoying that we're having this conversation one year later and that virtually nothing was done. all this money has been wasted one more year. a lot of hard-working american people are trying to make ends meted. that is the first one. the second promise, this oversight is always after it's wasted. we never -- we never decided to do oversight to make sure people are doing their jobs in the first place so they don't have the opportunity to waste. all we do is have hearings, discover they're having huge conferences and spending ridiculous amounts of money for, you know, as i would say the bathtub picture was my favorite where the two glasses of wine

don't match, we pay almost a million in a senate conference. really, we depend on you and your committee to do the oversight so that we don't have these problems. we have to sit and watch and are horrified. >> this is one of the reasons we're still working on fast and furious, so it doesn't happen again. we're still working on benghazi so it doesn't happen again. we're looking at a half a billion dollars of really wrongful procurement that went on with the irs that in fact they're standing behind a procurement that essentially claims a special set-aside for disadvantaged people. and there are no disadvantaged people in the whole company. >> let's talk about benghazi. you picked that one up. that's one that your party is upset in the house about. but you have the authority to issue a subpoena and order people to come and answer questions. doesn't get done. if you want -- if you want to hear from somebody, you want to hear from someone on the ground when it happened, the best way is to drop a subpoena on somebody. if you don't know their names, drop on someone at the state department, demand the names. drop it to get the employment record. they can get the information. you have the power to subpoena.

you're the majority. >> greta, we use the power of subpoena, we have received several thousand documents. we've had to go over them manually on paper. my people have gone through page by page. we've gleaned many of the people we want to talk to. we are contacting whistleblowers, whistle blowers are contacting us. we're not giving up on it. we're not going to give up on dead people that shouldn't be dead. and all those men and women in the state department, cia, out there wondering if the same thing happens to them, there be a plan to save them. there wasn't at benghazi. >> let me go to fisker automotive. you're planning to have april 24 hearings. that's another investment where we've -- apparently $192 million just down the drain of taxpayer money. >> and was predictably going to be down the drain. understand, this was a design shop who came in with a pretty car design but no ability to make cars and said "give me money" when nobody else would give money. one of the daughtery secrets about fisker is they were paid a million dollars by tesla, another electric car company, to design something. they basically hijacked that

design and went off and got their own government money. >> we get our money back, get ahead of the line in the creditors? >> you know, i'd love to if we could. as you and i know, we respect the bankruptcy laws. and in some cases our government has screwed up enough and first in line. in the case of fisker, we will be relatively first in line, but there won't be much there because there never was anything there, greta. this was a pretty design and a company that was formed around it. that's not how you build new industries. especially when you have other options. you understand that fisker is essentially a pretty version of a preus. it is an electric hybrid and it was money for something that was already being made. >> i look forward to the april 24 hearing, sir. nice to see you. always nice to see you. >> thank you. another giant surprise by obama care. this time it is the health and human services secretary who is surprised. kathleen sebelius saying she did not expect it to be so hard to implement the national health care law.

she's blaming the states. congressman trey gaudy joins us. nice to see you. and she's blaming, i should add, politics. i'm surprised that she's surprised that there's going to be a problem when it's 2,800 pages with 20,000 regulations and unhappy states. your thought on what she said. >> the last time i saw madam secretary, she was also surprised at the first amendment implications of her hhs mandate. i'm not surprised that she's surprised. 13,000 regulations already. this is what -- this is what you get when you don't have a single republican vote in an effort to remake 1/5 of your economy. the states weren't consulted. physicians -- i don't know a physician that thinks obama care is a good idea. so this was a top-down remedy to 1/5 of our economy. 13,000 regulations. the bad news is she's just getting started. so the state are not going to participate in the federal exchange which means the federal

government's going to have to come in and learn the intricacies of 50 different state insurance systems. john roberts should have done them the favor of throwing out obama care. and my prediction is in hindsight she's going to wish that they had. >> i don't know how in the world -- they haven't got these federal exchanges set up -- the states that opted out, the fed has to step in and create exchanges as of october 1. they're not set up. but i mean, it's stunning that they're even surprised that there's a problem. and why they thought that the government was so efficient and could handle these things is beyond me. there's relatively little history of it. >> well, i don't want to seem on, vrtly political, and i don't want to seem more cynical than former prosecutors are. you had to get past the election in 2012. it's not politically popular. so -- >> come is appalling. >> well, i'm just -- i'm being honest with you. the more people get to know obama care the less they like it. we're going to put it off beyond november, 2012.

now they put off the small business exchange until 2015. pretty soon they're going to shift it into whoever the next president is. here's what will happen. they'll blame the republicans even though not a single republican voted for obama care. they'll blame john edwards -- >> the republican governors of the states refusing to sets up the exchanges, saying -- >> how about the democrat governors that are also not going to set up -- >> most republicans who -- >> i think two were democrats. but the reality is, when you don't consult the states in the first place, when -- when you dictate to states that this is what you're going to do, lay aside the fact it violates federalism and the 10th amendment. you're not going to get a good result. and what you have with obama care is implementation, exchange problems, premium problems, 13,000 regulations, and oh, by the way, not one word on tort reform or defensive medicine. >> there's another big problem. we covered it the other night. how because of chemotherapy under medicare for elderly comes

under part b, it's physician administered, it is subject to the sequestration cuts. as a consequence, a lot of these community cancer centers are not going to be able to give chemotherapy to seniors or even some already getting chemotherapy. they're terrified. requires an exemption from congress so that these people who have for decades been paying taxes, paying medicaid -- medicare taxes, can get chemotherapy. will you at least look into that for them? >> yes. and i'll prove it to you. the last time i was on your show, you highlighted how sequestration was going to affect the ability of veterans and their children to college. within 48 hours, it was fixed because you highlighted it. yes. patients, senior citizens, young people should not be impacted because politicians in washington can't get their act together. yes, ma'am, i did promise you that. >> the "washington post" is where i spotted a small blog -- >> i'm going to give you credit if it's okay. >> you give me credit. i'll give it to the "washington post" since i stole it from them. whoever can fix, it hallelujah. i'll take anybody. you are the co-sponsor of a

resolution coined for a select committee to investigate benghazi. why do you want a select committee? >> a committee process -- we had a good hearing in october of 2012. then the next hearing was when secretary clinton famously said what difference does it make. and i haven't seen or heard of a hearing since then. so it will be seven months this thursday. >> you guys are in the majority. you get to -- >> we are. and you should ask every single one of us why we have not subpoenaed survivors, why we don't -- >> why haven't you subpoenaed survivors? >> i'm going to give you an explanation that's going to sound like an excuse. i'm a private. you need to ask the generals. and if you want a hierarchy of who's in leadership in the house gop -- >> i think i know the names. >> i think you do, too. >> see, for the life of me -- this would have been over. whatever happened, you know, happened to get to the bottom, the gamesmanship, it's easy. you're a foreign prosecutor, you send a subpoena on people who will talk.

>> there is absolutely no excuse for us to be seven months into this and be no closer to the truth than we were on september 12 -- 2012. and i hope the next time you're at the capitol, because that's where most of these offices are, i hope you will ask everyone in the leadership and house gop, you asked senator graham a couple weeks ago. he's in the minority. he doesn't have subpoena power. i saw you ask congressman chavitz. you need to ask why you're not subpoenaing survivors, the accountability review board, secretary dlit, suzanne rice. those with knowledge, put a subpoena in their hand. bring them back before committees that actually know how to ask questions because the last committee hearing i heard, a sixth grade civics class could have done a better chance asking questions. >> pretty weak. congressman, nice to see you, thank you very much. tomorrow night, congressman paul ryan will be here. the house budget chairman will tell you what he thinks about president obama's budget plan which the president releases

tomorrow. paul ryan goes on the record tomorrow at 10:00 p.m. eastern. right now, fighting the feds. unhappy taxpayers in at least one state may have a new way to fight back against the federal government. but it is going to cost them. oklahoma attorney general scott prewitt joins us. nice to see you, sir. >> how are you? >> i'm very well. apparently -- explain what happened. it started out as i think a democrat made a suggestion that a lot of people, a lot of republicans and voters is seized upon. what was the suggestion? >> well, i think as the representative introduced this bill, perhaps he was trying to make light of what we're doing and seeing across the country on responding to federal overreach. and the legislature responded, people responded favorably. i think it passed overwhelmingly in the house. it will pass in the senate. i think it's reflective of a concern that's existed across the country, that this administration, agencies in washington, d.c., are acting in ways inconsistent with what the constitution says.

as attorneys general, that's our responsibility to respond when you see a federal agency or an administration exceed their authority. i think this is reflective of the very tremendous concern that citizens have across the country. >> so in oklahoma, on your state tax form, if it passes, it passed one branch of your legislature but has not yet been voted on the other. and so it needs the signature of the gompt as i understand it, you can check off on your state tax return to donate some the refund that you would otherwise get to a particular fund to fight any state, federal issue? >> issues involving federalism. statutes that are passed by the state of oklahoma. that are challenged by third parties or other -- others, individuals, or even the federal government at times. this is -- this is about making sure that statutes are passed. as the federal government engages in activity and you just had -- obviously a focus on how hhs is responding and implementation of the affordable care act. oklahoma along with other states have been involved in responding

to implementation. we have a lawsuit in oklahoma presently challenging the irs on the implementation of the employer mandate tax. >> so is it -- in other words, almost to expand the budget of the state attorney general's office, is that what it is, letting citizens take more -- that they have more of a say in how much your budget is, essentially? >> essentially. we established in my office something called the federalism unit. as you know, greta, federalism is just fundamentally vertical checks and balances. the federal unit is dedicated to making sure it's the epa, hhs, irs, and affordable act, various agencies, as they exceed their authority outside of the congress mandate or the constitution, we are responding. we've had two successes against the epa involving the cross state air pollution rule and the regional hayes case that we have in the 10th circuit. we are seeing tremendous success responding to the federal government exceeding its authority. >> all right. if this new bill passes, your state senate i believe still

hasn't voted on it. do you expect that the governor will sign it so that people in oklahoma can do a check on their refunds so you'll have a little bigger budget for that? >> i think both the governor and the legislature are dedicated to making sure that the attorneys general office is equipped to respond to this administration, who seems intent on making sure that federalism is not respected in certain instances. yes, i think the governor would sign that in a quick fashion. >> attorney general, thank you. we'll be watching to see what happens in your state. thank you, sir. >> thanks, greta. now tonight's issue -- would you give part of your state tax refund back to your state to help fight the federal government? yes or no? vote in our poll. and straight ahead, more disturbing news tonight from the korean peninsula. we're going to take you there live. that's next. and also senator rand paul says senior citizens are getting squeezed by president obama's budget. what does he mean by that? senator rand paul is here to tell you coming up. plus, did you hear what

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north korea is not backing

down. in fact, it is stepping up the threat. it is warning it is on the brink of nuclear war with sea. and today the north urging foreigners and tourist in south korea to get out. so are there any signs of any imminent attack or missile launch? jason struther is live in seoul, south korea, with the latest. tell me, is there any sign at all that north korea has stepped up its aggression toward south korea? >> well, great athe only thing that's going on right now above the 30th parallel is that north korea appears to be readying a medium range missile for what observers believe is a test. aside from that, there's been no unusual troop movements. there's no real sense of threat here in seoul. whether it be south koreans or the ex-pats here. no one's buying plane tickets to get out. but south korea's government may -- did increase its surveillance level to watch this potential missile launch. >> they say they believe it is a test, and they don't believe that i guess it's seriously

pointed toward seoul. what did they make -- they make their -- reach their opinion because i tell you a lot of countries have missed out on north korea when they did nuclear tests. we didn't know those were coming. why do they think it's so smart in determining the missile was just a test? >> well, no one really believes that north korea is going to set up a missile and actually strike seoul, tokyo, or any of the u.s. bases throughout the pacific that it could be in range of. this type of movement, north korea frequently tests missiles, but usually it does them unannounced. so it is quite rare that it makes this announcement that it is going to -- it is preparing to launch missiles. but surveillance imagery doesn't seem to indicate that there's actually any warheads attached to the front of this medium range rocket. >> that's the best of what the satellite imagery shows. you know, everyone says that no

one believes north korea would really do it, but they have a new leader who has been rather aggressive. you know, i hope everybody's right, that north korea won't act. but you know, north korea's made so many threats that it hasn't acted on. i think that we tend to sort of shrug them off. so there's little change or little fear in south korea, is that a fair way to say it, among the people? will. >> you know, greta, it's one of the things that i've always found funny here. south koreans more or less shrug l shoulders every time -- shrug their shoulders every time a threat comes from pyongyang. for years, south korea, north korea has been at war. two years ago in 2010, things got really heated up. north korea shelled south korean island and killed four people. they're blamed for torpedoing a naval ship, kill 44 sailors. when people live in the south and hear people say -- we're going to turn seoul into a sea of fire, they've heard it all

before. north korea's brought down planes before. they've sent commandos into the streets of the capital here. so when -- the threats and rhetoric alone doesn't really resonate with the people. >> except what's also different, you have a new head of north korea, but you also have a brand new president in south korea. and your former president took so much heat for not taking any sort of action when those 46 sailors did die, when that ship was shelled. so i mean, what's the new -- what's the rhetoric, or what are the statements coming from the new president of south korea about north korea? >> that's exactly right, greta. the former president, he did take a lot of heat. the new president who just took office, little over a month ago, she is really talking tough. she does not want to make the same mistakes that her predecessor did. many south koreans say that south korea should have responded more forcefully after yongbyon was bombed in 2010. she has given the military cart

blanch to handle north korea however it seems fit. of course in the north launches a provocation. and with the way the u.s./south korea treaties go, if south korea requests the u.s. help for backup to strike missile batteries in north korea, the u.s. is more or less obligated to come to the south's aid. >> jason, thank you. good luck, sir. >> thank you. coming up, the crisis on a college compass. a stabbing spree. more than 12 people wounded. hear from a student who helped catch the stabbing suspect. that's next. also, cher fans, they are flying into a frenzy. the twitter-verse lighting up with tweets about the superstar. it doesn't matter where a good idea comes from, it only matters that it shows up and makes things better. in that spirit, verizon is proud to announce the powerful answers award. 10 million dollars in prizes for the best ideas. ideas so big, they have the power to change everything. whether it's our inspiration, or yours,

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this is a fox news laertd. a wild stabbing spree on a college campus, and moments ago police releasing the name of the suspect. 20-year-old student dylan quick. today in texas. at least 14 people wounded in the rampage at the lone star community college. police say the suspect went room to room, from building to building, slashing everyone in his path. many of the victims stabbed in the neck and head. one of them was michelle alvarez. >> the adrenaline -- i didn't feel the cut. but then i heard people screaming behind me where he was running at. >> you didn't feel the cut? >> i didn't -- i heard people behind me, i just -- i was like, no, i have to go running to my room and get safety. >> police officers and students chasing down the suspect. and finally a group of students

tackling him. one of those students telling fox's shepherd smith how they caught the suspect. >> we were together and one of the gentlemen grabbed him -- grabbed him by his backpack that he had on. he pulled him. me and this other kid, james, i got his name afterwards, jail grabbed his arm. i pushed him down. i looked, and he's on his back. and i -- his hands are up in the air. he said, "i give up." his hands were in the air and he says he gives up. >> he said it twice. did he say anything else during the chase the rest of the time? >> no. >> did you say, "dude, why are you stabbing people?" >> i was screaming at this guy. i was -- why, why would you do this to girls? why? >> how hard was he to get down? >> very easy. he gave up right away. he laid on his back. he knew what -- he saw what was coming. >> all he ever said was, "i give up, i give up,"? >> did he seem upset? >> not at all. that's the thing, too. only thing he could worry about

was his -- her earpiece as far as -- his hearing aid. >> stay with us for the latest on this developing story. well, it's about time. president obama finally sending his budget to congress. that will make the president's budget more than two months late. so is it better late than never, or is it already dead on arrival? we spoke with republican senator rand paul a short time ago. nice to see you, sir. >> glad to be here. >> tomorrow the president's going to deliver his budget to capitol hill. better late than never i assume you think? >> yeah. i'm not sure i'd have a lot of confidence that it will do much good for the country. i think his ideas for making the country are better are raising taxes, adding new regulations to the economy. and i disagree with both. >> cpi which is aanything to the base in his party that he is apparently in his budget conceding to it or agreed to, i should say that, is that something that you see as an olive branch by the president to the republicans? >> you know, i think senior citizens are squeezed, and

they're squeezed because their check stays the same and their prices rise. can you squeeze some money out of seniors by doing all these manipulations to the cpi? you might be able to. but why don't we get an economy that grows so not everybody's so squeezed. you know, we're growing at less than 1% on average for the last four years. the last quarter we actually were shrinking. the jobs report last week was abysmal. so really what we need is a reagan-esque type of recovery, and we're not getting it. >> what would you do? >> what i would do is, there are things you have to do demographically to social security to make it sound. what i would do to make the economy grow is i would have an enormous tax cut. i wouldn't piddle around with revenue neutral. i think republicans mistake have been, oh, we'll cut your taxes and we'll raise my taxes or vice verse amp we'll shift the tax burden around. the president plays some of that game also. what i would do is i would shift money from washington to the private sector in an enormous way. i would have a 17% flat income

tax for corporations and for business. everybody pays the same. there would be very few deductions, but there would be an enormous amount of money infused in the private economy. when reagan cut taxes, we had eight million jobs created. the way -- as big as the economy is now, i think you'd have 1 million, 12 million jobs created. >> we wouldn't have the revenue into the feshl treasury to finance a lot of the parts of the government. i'm curious with money being so -- money's cheap now. the interest rates are so low. why aren't the businesses borrowing that money and revving up the economy that way rather than looking to have the revenue, the added revenue by having their income tax go down? >> well, there's a good look -- a year or two ago, there's a book called "the forgotten man." she talks about fdr and says businesses were terrified of him. i think it's the exact same scenario. businesses are terrified of this president. they're terrified of what new regulations will come, what the epa upon will promulgate, what government will do next.

i think businesses are sitting on the sidelines, and they're worried about what government will do to them next. >> what do you think is going to happen? the president's budget will come to capitol hill. probably the democratic senate will embrace it and not be totally happy with it. take me through the scenario you predict. >> you know, i'm not sure really there is a reconciliation because we're so far apart. the republicans passed a budget that doesn't raise taxes. the democrats passed a budget that raises taxes a trillion and a half. you know, what are we going do, split the difference there? i'm not for raising $750 billion worth of taxes. i'm not for raising taxes. you heard me. i'm for cutting taxes. i think you stimulate the economy by leaving more money in the hands of those who earn it. they make wiser decisions. freeman always made the statement, "nobody spends someone else's money as wisely as they spend their own." that's why you want to leave money with those who earn it. they spend more wisely. >> no reconciliation. that means more continuing resolutions, kick the can down -- the road further. we're never going to get any resolution. >> one of the things we could do

is we could have individual appropriations bills. i think there's essentially 12 appropriations bills that run and fund government. why don't we do them individually and vote one at a time? i'm a big believer that part of the reason we have such an impasse in washington is everything's stuck together. we have to agree on a thousand things. you and i might not agree on a thousand things but might agree on ten. let's put the ten things we agree or put one appropriations bill out and pass appropriations for defense. let's pass the appropriations for veterans' affairs, let's pass the appropriations for all the departments individually instead of doing it as a continuing resolution which is a mess. and we never get anything fixed. >> you're giving a speech at howard university predominantly african-american here in washington? why are you going there? >> i think the republican party needs to expand. we need to compete for every vote. i think for too long we haven't been showing up to african-american audiences. my staff told me i might be the first republican to go there

since colin powell in the 1990s. that means we're not showing up. we've got to show up in all venues and ask people for their vote. and i used to think this was corny. i'm a physician. when i ran for office, i thought you just told people what you were for and they might vote for you. people say, no, ask for their vote. and i think symbolically there's some truth to that. you have to show up to an african-american college, a historically black college, and ask for their vote. for the republican party, me, whoever it's for, you have to ask them for the vote and talk about issues that might appeal to them. i had a guy that -- there's a lot of things that i believe in that have crossed over, appeal to people who have been voting for the democrat party. >> i suspect they might want to hear president fact that the unemployment rate for african-americans is about 13.3%, which is deplorable. >> right. >> so the opportunities seem to be much less for african-americans compared to the white unemployment rate which is well below the average in. >> you're stealing my stuff, greta. that's going to be in my speech tomorrow. the african-american rate of unemployment is twice the average. unfortunately it's been that way for a long time, but it hasn't

gotten any better under this president. one in six people are living in poverty. we have made and ruined the lives of a lot of young, not only african-americans but whites, young people in general by putting them in jail for nonviolent drug crimes. we have a foreign policy i think that needs to be something more appealing to a broad section of people. not just african-americans but young people, independents and i think that foreign policy should be one that we believe in a strong defense, but it doesn't have to be an overly aggressive foreign policy. >> well, i'm anxious to hear your speech tomorrow. good luck, senator. thank you. >> thanks for having me. coming up, what happens when a big city goes bankrupt? small businesses take the hit. a stockton, california, business owner is here to tell you what is going with her business up next. and in two minutes, they may be the royal couple, but jay-z and beyonce at the center of a wicked hot controversy. wicked hot controversy. and mark

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tonight's superstar couple, jay-z and beyonce, maybe wish thag had gone some-- wishing they had gone somewhere else to celebrate their anniversary but cuba. the investigation of whether the the investigation of whether the >> lawmakers, including florida senator marco rubio are demanding more information about the cuba visit by jay-z and beyonce. it was licensed as a cultural exchange. but senator rubio says the government used the visit as propaganda and he wants answers from the white house. he says that the obama administration should explain how the trip complies with u.s. law. the beyonce/jay-z trip comes after the controversial trip -- yes, the trip of dennis rodman's visit to north korea. who is a better ambassador for the u.s -- dennis rodman in north korea and beionsy and jay-z in cuba? tell us on gretawire.com.

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stockton, california. the nation's biggest city so far to go bankrupt. and now it is the small business owners who are feeling the pain. chrissy dejoyos owns commerce spa and boutique. she says her business took a hit during the bankruptcy crisis. she joins us. nice to see you. >> how are you? >> very well. so tell me, since stockton has filed for its reorganization bankruptcy, has it had an impact on your business? first, tell me what your business is. >> we have a spa in the miracle mile. if anybody is familiar with the mile, it's a wonderful place to visit. a lot of mom and pop shops. no big franchise, no big businesses in there. we did take a hit in the beginning of them announcing the bankruptcy. we had a lot of city officials,

retired city works who definitely had to cut back on their services with us at the spa. so financially, we did feel the crunch. >> i suppose it depends on the nature of your business who's going to feel a bigger crunch. if you tend to have a business that's sort of more of a luxury item, like a spa compared to like a grocery store for food, you're more likely to take a hit first. do you agree with that? >> exactly. exactly. we -- of course, you know, as women -- or men -- we are a luxury. we get the first cut back. >> all right. is there any way you can sort of recover from this? are you doing any reorganization, or -- what are you planning to do? the bankruptcy is going forward. >> we are recovering from it. i think people are kind of -- now that they know what's going on, i think people are -- if you can say coming out of the shell now, and getting back to their

normal life. a lot of us businesses on the mile have pulled together and kind of are working our own little specials or promotions that we can do to promote each other's businesses. >> if someone leaves your employment, you know, are you likely to replace that person, or is that sort of another way that you're dealing it, as sort of downsizing? >> no, we can replace them. i mean, there are lots of cosmetologists out there, massage therapists. they can be replaced -- >> but did you afford to replace them sell what i mean? if someone leaves in light of stockton going bankrupt, you know, can you afford to replace that person if someone leaves your employment? >> no. no. as far as the tax part of it, us small businesses do take a hit on that. and i know personally just have fromming a small busine-- just a small business, i can't speak

for other types of businesses, but in my field we definitely are getting taxed too heavy. >> all right. we're going to -- >> it makes it hard for our businesses. >> indeed. and i can only imagine that it's very tough for people in stockton and the people in the -- the immediate area. chrissy, thank you, and good luck with your business. >> thank you very much. straight ahead, say it isn't so. cher fans fly into a panic. what caused a massive twitter frenzy about cher? you'll see for yourself next. ♪

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this is a fox news alertment we're getting more information from the suspect in the college stabbing spree in texas. today, 14 people were wounded in the rampage at lone star community college. and tonight, 20-year-old dylan quick is charged with aggravated assault. police say quick used a razor-type knife to cut his victims. they say quick told investigators he's had fantasies about stabbing people to death since he was in elementary school and had been planning this attack for some time. we'll bring you more information as we get it. time to hash it out. talk about a twit fit. this is really bizarre. twitter ends up smack in the middle of a hash tag mixup. the "wall street journal" reporting confused cher fans

worried after seeing hash tag now that cher's dead. okay. did you see the problem? look at the hash tag again. it reads -- nowthochersdead. not now that cher is dead. cher fans were confused by the tweet thinking the star had died instead of british prime minister margaret thatcher. cher fans can breathe easy. she's fine. and prince william's wife kate middleton is a godmother. no, not what you think. enews reporting pregnant kate middleton to become godmother of princess cruise ship. the duchess named godmother to a cruise ship. we have nothing to add to that one. and it's malawi versus madonna. the material girl going head to head with the african country. the "new york post" reporting the president of the malawi slams madonna. she came unannounced and made poor people dance for her. sources say malawi's president is actually miffed that madonna

pulled out of a building of an all girls school in the country. either way, we wonder if the material girl is no longer welcome over malawi's borderline. did you get that one? borderline? you should have. and this is not another lance armstrong story. but buyer beware. yahoo! news reporting man who thought he bought a pair of poodles later found out they were actually ferrets on steroids. yes, steroids. we can't make this up. a veteran telling a man his poodles were ferrets on strides. there's nothing else to say here about this one. and louisville coach rick pitino might want a do-over. no, not on the ncaa championship game but on a bet he made. cbs news tweeting out, after winning national championship, louisville's rick pitino now has to get a tattoo. yes, the championship-winning coach made a promise that if his team won it all he would get a

tattoo. now the coach has to own up to his promise. what's it going to be, coach, and where? we have our own suggestion. and a message to president bill clinton -- i'm following you, on twitter that s. the former president sending out his inaugural tweet. just spent amazing time with colbert s. he sane? he is cool. here's the catch -- the president didn't sign himself up for twitter, stephen colbert did. even giving him the presidential twitter handle o of @presbillyjeff. i guess the handle bill clinton was already taken. welcome to twitter, mr. president. and you can hash it out with us. follow me at twitter. and coming up, it is certainly not your everyday prom invite. you will see the ♪

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