>> pete tweeted i think it is finally time to real in out-of-control spending, crony capitalism, wasteful subsidies and cut the debt and don says i think it is great. the president and democrats are out of touch with america and we need a wake up call so honest negotiations can start. >> all right. "fox & friends" starts now. bye. >>elisabeth: good morning. it is tuesday, october 1. i'm elisabeth hasselbeck. we begin with a fox news alert. for the first time in 17 years the u.s. government is shut down. what happened while you were sleeping. how will this affect you? and how long will this last? we are covering all the angles straight ahead. >>steve: the government may be partially closed but obamacare is officially open for business today, on october 1. you can sign up for the exchanges starting today, but do you need to? and do you know how to do it? we're here to help. we've got somebody just over our shoulder at the computer standing by. >>brian: a terrifying story. a family attacked by bikers

in broad daylight. the bikers got away but the whole thing is caught on camera through a helmet cam now released available for your viewing. we will share it. "fox & friends" starts now. ♪ ♪ >>elisabeth: good morning. two big stories happening right now for you. the federal government is shut down for the first time in 17 years, and kpwoepl is open for -- and obamacare is open for business. >>brian: at midnight we went dark. congress missed a deadline to pass a crucial spending bill. lawmakers went back and forth and back and forth and in the end got nowhere. >>steve: but obamacare is going to kick off today. you now can log on and sign up for exchanges but what the heck does all that mean? we're covering both these stories in depth this morning, but first let's start with the shutdown.

it happened just about right at midnight. officially the federal government is partially shut down. although, you know, for most people it might be an inconvenience you're not going to see a lot of stuff that is happening. a lot of it has to do with the national parks and stuff like that. but what is clear is both side are in agreement, it's the other side's fault. they got us here. >>brian: one thing is clear. democrats didn't budge and the republicans did. they came out. at first they said let's defund the entire thing. i'm talking about obamacare. to move forward. they added other things, even the x.l. pipeline. but the time it got to the zero hour it got to defund obamacare to let's delay the entire thing for a year, clearly not remembered, and that was denied. so in the end we went past midnight and nothing was done. >>steve: so after the deny, it was let's just delay it, and that was denied. then there was a third suggestion, and that is lawmakers and their staffs are winding up with very

rich subsidies to pay for their health care, but at the end, that too was denied by the u.s. senate. >>elisabeth: they were asking government officials to be treated the same way americans are going to be treated. shocking. indeed, the american people who did not want obamacare, did not want a shutdown and republicans were compromising to bring americans what they wanted. not well received. >>brian: here are both sides weighing in from their point of view. >> they got some jerry rigged thing about going to conference. madam president, it is embarrassing that these people who are elected to represent the country are representing the tea party, the anarchists of the country. the majority of the republicans in the house are following every step of the way. >> the house has made its position known very clearly. we believe that we should fund the government and we think there ought to be basic fairness for all americans under obamacare.

>>brian: what he was referring to in the first sound bite, harry reid, was an offer to conference. the republicans even named conferees in order to sit down with the senate and work this out. but now it seems as though the house has zero leverage. their leverage comes in in a couple of weeks when the debt ceiling comes in. the president knows they have no hand to play. harry reid knows they have no hand to play. so they will sit there because currently the poll numbers show the american people blame republicans slightly more than democrats and the president of the united states. >>elisabeth: the last time a shutdown occurred i believe it cost the government $2.1 billion. so we're looking at a high cost there. we're looking at at least $800,000 not able to be working for the american people. so we're certainly in a near crisis situation. >>steve: and if you've been watching the news, you've heard the republicans are going to get blamed as they did last time. but i was reading an analysis last night about how 17 years ago mainstream media did say it was the

republicans' fault, and did they pay at the polls? no. they retained their majorities in both of the houses. and in fact, picked up two senate seats. but bill clinton was reelected president. >>brian: trounced bob dole. >>steve: the question every american is asking this morning, how is it going to affect you? for a detailed look at what is delayed, suspended or completely turned off, let's go to the capitol dome. >> lights are on but not much is happening. good morning. the impact of a government shutdown will be felt all across the country as 800,000 nonessential federal workers will be off the job. the landmark monuments and museums in washington, d.c. will be shut down, possibly taking a big toll on tourism in the nation's capital. some congressional and white house offices will also be closed. though some employees will report to work today to wrap things up and close things down. nationwide here's what you can expect.

government research facilities will not be accepting new patients. i.r.s. tax refunds will be suspended. new home loans from the federal housing administration won't be processed. just as housing is struggling to recover. homeland security will suspend that e verify program and the nation's 400 national parks will be shut down. some things will stay open. active duty military remain on the job and receive their paychecks. air traffic controllers will keep the nation's airports running. the u.s. postal service will keep operating and social security and medicare checks will go out on time. and the food stamp program remains operating as well. for those things that are shutting down, the longer the shutdown, the bigger the impact on millions of americans. back to you. >>brian: here's the thing. right now today obamacare, the biggest piece of legislation, the most pervasive and massive to pass since medicare is an absolute mess. the president of the united states says 19 different parts of this have to be

suspended, put on hiatus, put into delay or flatout waived. we should be talking about if it is chaotic or not and looking at day one of obamacare where the young aren't signing up and the old don't know what to do. but instead we're talking about a shutdown because it seems as though the g.o.p. went moo this without an end -- went into this without an end game. i don't see any way for them to come out of this unless there is a magical legislative maneuver for them to have any leverage except for to throw up their hands right now. >>steve: it does look -- privately senior republicans are saying they believe the shutdown will last five days. senior democrats say they think that if it lasts into the weekend, what's going to happen is they're going to wind up rolling it in with the debt ceiling talks. and that is essentially the nuclear option. that's where everybody, you know, the threat of defaulting on the national debt, you know, even though the president of the united states says he's not going to negotiate with that. >>elisabeth: we're in the

first half. you're mentioning what's going to go on in the second part of the game. who knows who will come out victoriously. people have questions too in terms of obamacare and in terms of the shutdown. we keep hearing about the c.d.c. a lot of moms are wondering about the flu shots. the shutdown is all over, which kicks in today. do you need to sign up? do you know how? we're going to keep you posted on all those details today because i think the questions that every american has going forward is how is this affecting me? but yet government shutting down, yet i need to sign up. i think everyone is in a state of paralysis. >>steve: ready or not, obamacare exchanges officially opened at midnight hast night. the -- last night. the president wants everybody to sign up who needs to. >>brian: according to recent survey, up to 51% of americans still unclear about obamacare. each day of this week we are helping you out. >>steve: here this morning, live in her special corner is the author of "beating

obamacare: your handbook for surviving the new health care law" and former lieutenant governor of the great state new york, betsy mccoy. she's got the actual health care bill on her lap. famously she brings it every time. she will be answering questions you've got about obamacare. >>brian: how do we get in touch with betsy? i could yell over there. >>steve: e-mail us at friends@foxnews.com. >>elisabeth: we're going to be answering your obamacare questions this morning. before you sign up for exchanges and you want information, you can e-mail us at friends@foxnews.com or tweet us at "fox & friends" or find us on facebook. we'll be taking real-life questions. >>brian: also we'll be taking tweets and e-mails about the shutdown, how you think it's heading, who is to blame. because bob woodward points out, of all people, he says the president of the united states maybe looks like his poll numbers make him look as though he's not in the

clear but less to blame. but as president of the united states in history, no one is going to remember the speaker. they are e -- they're going to remember who was president during this time and why is it okay not to talk at all. how could you not have conferences? >>elisabeth: why can you be on the phone with iran and not our own people? why are you reaching outward and not inward? why are you not taking care of your own backyard first before reaching out? imminent disaster on our soil. >>steve: we've got so much to talk about on this tuesday morning. sit back, relax. if you're furloughed today, you might as well watch all three hours. >>brian: and you're essential to us if not the government. as is heather. >> this is unbelievable. an extreme act of road rage caught on camera. a father driving his vehicle with his wife and two-year-old daughter chased 50 blocks by a gang of motorcyclists through the busy streets of new york city.

take a look at this. at least 30 bikers swarming this range rover. you can see it on the right. they went to harass the driver. one of the bike riders slows down, stopping short, causing the s.u.v. to tap him and it ends up breaking one of the cyclists legs. the group then started attacking the car, and the man fearing for his own life speeds off and then the real chase ensues. they then caught up to him. one biker. in just a moment you'll see this. one of the bikers tries opening the door of the man's car, the s.u.v., then takes off once again and eventually gets trapped in traffic. here's what happens next. you see that as a man

smashes the driver's window. drags him out of the car. this you don't see. the driver is beaten as his wife and two-year-old daughter are forced to watch. he received stitches on his chest and in his face. we're talking about the driver here. no arrests have been made just yet. unbelievable. another highway horror. this time in the state of kentucky. a man says he was trying to take video of this reckless driver right here. but watch. as he pulls up next to the car, the driver rolls down his window, pulls out a gun and takes aim. >> it was really scary. i hit the brake. at the time, you know, at the time when you first see the gun, you think the guy is not going to do anything with it. then you hear the shot and it's like oh, my god, i could have been hit. >> thankfully that victim was not hurt. police eventually arresting that driver in indiana. how terrifying. other news. cnn and nbc dropping

controversial projects about hillary clinton. nbc was planning a mini series. cnn was also planning a documentary about the secretary of state and first lady. executive releasing this statement. i discovered nobody -- and i mean nobody -- was interested in helping me make this film. not democrats, not republicans, and certainly nobody who works with the clintons. how about that? you know, amazing, in a city where everyone likes to be on camera, nobody wants any part of this. >>steve: when you get the call, you're not cooperating with them, are you? no. >> what does that tell you? >>brian: two networks lost their debates. now they will probably get them back. the shutdown just happened but already being blamed on republicans by some and by the media just about everywhere you go. the straight story coming your way. >>elisabeth: the mikes went off and the speakers went out before a baseball game but wait until you see how this crowd saved "the

star-spangled banner." >>brian: it was a soccer game. ♪ land of ♪ the free ♪ and the home ♪ of brave

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your aging loved ones so they can stay happy at home. comfort keepers. keeping the comforts of home. ll comfort keepers now to arn more. >>steve: a fox news alert. the federal government is partially shut down today. it happened at midnight but it's already being blamed on republicans. by the mainstream media. >> cnn says that house bill, for example, to keep the government open while delaying obama was, quote, a move that makes a shutdown more likely. later cnn described the bill simply as a quote proposal to derail obamacare. "politico" speaks of house republicans as deciding whether to -- quote -- "careen into a government shutdown." even the "wall street journal" this morning said the simplest path to avoiding a shutdown would be for the house to immediately pass the senate funding bill. it would just as simple for

the president to pass a house bill and send it to the president to sign. >>steve: they don't remind you of that. check out this paper today here in the new york city area. reportedly fair and balanced; right? i don't think so. what do we make of this? joining us is elizabeth mineke. thank you for joining us. >> my pleasure. democrats talk about this like it's a hostage situation, talk about anarchists. the media is portraying it like it is a hostage situation because they neglected to say when you have a piece of legislation you really want it is par for the course to attach it to something like this. if democrats worked in good faith over the past four years to pass a budget we wouldn't be in this predicament any way because the c.r. funds the

government. >>steve: we kind of got a taste of how the media would portray this with the way they handled ted cruz's very long almost a filibuster filibuster. >> someone on twitter showed a huffing ton post headline from when wendy davis had her filibuster was filibuster heard around the world and when ted cruz did it the headline was ted cruz hijacks the senate. >>steve: there are two parties involved here. you've got the democrats and the republicans. it was a failure on the part of the democrats to negotiate in any fashion for anything to get done. but if you find that in your newspaper today i'd be amazed. i looked at five. i couldn't find it anywhere. >> i couldn't find it either. i think the important thing is the g.o.p. needs to start fighting back on this narrative. i think ted cruz is doing a berate job with that. i thought they -- is doing

a great job with that. they sent out a press report yesterday saying he would donate his salary to charity during the shutdown. the g.o.p. need to learn from ted cruz's play book. >>steve: elisabeth joining us from town hall. thank you very much. you're the first one up in the gateway city today. >> thank you. >>steve: it is now 20 minutes after the top of the hour. what do you think about that? how the mainstream media already blamed the republicans. e-mail us at friends@foxnews.com. coming up, a fascination angle on the shutdown. what advise would margaret thatcher give republicans in washington, d.c. this morning? you're about to find out what the iron lady would say. plus the dramatic moment a cop pulls a woman from a burning car. the entire thing caught on camera. ♪ ♪

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>>steve: quick headlines for you on this tuesday. u.s. postal service not delivering when it comes to paying their bills. the agency apparently defaulted on a mandated prepayment for their health care of its future retirees. that's a $5 billion annual payment. oops. they both went into the game undefeated, but there could be only one winner. drew breeze leading the new orleans saints to win over the dolphins last night. breez passed for 414 yards. a victory over miami.

congratulations. elisabeth over to you and the sports guy. >>elisabeth: when margaret thatcher became print's prime minister in 1999 the u.k. was faced with an economy about to collapse. >>brian: what lessons could phargt rhett thatcher have -- could margaret thatcher have today. joining us is the coauthor of margaret thatcher on leadership. first off, nile, is this the right bite for american conservatives -- the right fight for conservatives today? >> i think it is. american conservatives have to stand up for principle, have to stand up for the united states. i think obamacare is a huge disaster for this country. it is a big-government project, hugely unpopular with the american people. it reminds me of european-style socialism

being imposed from above. i think it is right conservatives are taking a stance against this. spwroeup -- >>elisabeth: in 1979 they called it the british disease. we're now in a situation where the president doesn't want to talk with conservatives about this. what would margaret thatcher say? >> i think she would be appalled. this is a big-government presidency. i think obamacare is a massive albatross around the necks of the american people. it is hugely, vastly expensive. it is antibusiness. she would have fought tooth and nail against it. this is a president who is now seeking to negotiate with iran, a terrorist sponsor, a huge enemy of the united states, yet he will not negotiate with republicans. that really says it all. i do think the united states needs strong leadership based upon the

principles of the founding fathers, based upon limited government, based upon economic freedom. we're simply not seeing that at the moment. >>brian: you're not seeing it in terms of leadership on foreign policy. how is the rest of the world responding? we get a lot of blow back because we try to do too much in too many places. now that we've pulled back everywhere, what's the response been? >> i do think there is exception on the world stage that u.s. leadership is in decline. i do think president obama's leadership has disastrous for the united states. it's leading from behind. it is the antithesis, i think, of everything that margaret thatcher and ronald reagan stood for. margaret thatcher believed in very powerful american leadership on the world stage. we're simply not seeing that. president obama certainly is the weakest leader since jimmy carter. in fact, he may even be weaker than jimmy carter himself. i do think there is a sense of american decline on the world stage with the obama

administration. that is simply a terrible development for the world superpower. >>elisabeth: margaret thatcher on leadership: a lesson for american conservatives today. it is here. they did a movie, now they got your book out. congratulations. next on our rundown, should you be worried about your 401(k) this morning? and how the shutdown could impact your wallet. stuart varney's got a money clip. we'll find out how much he's got with him and what it means to you. >>elisabeth: there's something missing from the obamacare website. wait till you see what was just removed. >>brian: but first happy birthday to julie andrews. she's 78 and has a very good voice. ♪ me ♪ a name i ♪ call myself ♪ fa ♪ a long, long up in alaska, we find the best, sweetest crab for red lobster

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>>steve: let's get to our fox news alert at 6:32 in the morning eastern time. you're waking up with your federal government partially shut down for the first time in 17 years. >>elisabeth: despite working up until the final minute, house republicans and senate democrats unable to agree on a spending deal to keep the government open. so how is wall street

reacting? stuart varney following the markets and joins us now. good morning. stuart? >> not the way you might think. >>elisabeth: i know everyone would think maybe down. >> yesterday we were down. that's before the news of the shutdown arrives. >>elisabeth: because of the uncertainty? >> yes, because of the uncertainty. but then midnight arrives, bingo, we are going to shut down. overseas markets, japan, germany, france, all of europe, all of them going up. now look at how the dow jones average here in america, how that's going to open, up about 55 points. >>elisabeth: why? >> there is a very limited economic impact from this shutdown. i don't know how many millions of dollars a day it is costing but it's not that big a deal economically speaking. yet. if it goes on for a month, that's a different story. but if it's a few days or a week or two, the impact economically is not that great. plus there have been 17 shutdowns since 1976

ranging from 1 to 21 days. on no occasion was there ever a stock market meltdown because of those shutdowns. >>steve: when ronald reagan was president, he and tip o'neal came to loggerheads a bunch of times. there would be government shutdowns for a day, or two, a week. then they would get stuff done. a little different than things are right now. what's different about this equation is we're so close to the debt ceiling debate, there are some democrats who say if this particular shutdown runs through the weekend, they'll probably roll it all together. >> that's where president obama comes in, and i think he's been to some degree misleading the american people. >>steve: he said he will not negotiate. >> wait a second. he's con tphraeuting two issues -- conflating issues. the shutdown is about the government's ability to spend more money. the issue that comes up on october 17 is our ability to borrow more money. that's the debt ceiling. if we go past that, that's

serious because way down the road, october 17, way down the road we might run out of money and default on our obligations. but that is way down the road. >>brian: you're saying there's things the treasury could do to maneuver things to allow us to negotiate on the debt ceiling past that date? >> of course. we've got tax revenue coming in all the time. you use that tax revenue to pay the principal on your debt and the interest on your debt. you do not default. >>brian: you understand legislatively why people say the g.o.p. has leverage on the debt ceiling but not in this debate? >> if we go past the debt ceiling, that is a much bigger problem for president obama. president obama is the c.e.o. of america. it is his job to organize our finances. if he goes up to that deadline, doesn't negotiate and we go cross that deadline, the blame falls, i think, largely on him. >>steve: so it would be in the democrats' best interest to get things done

quickly, wrap up this shutdown as quickly as possible. whereas if they get together, they merge, both of the debates, that would be better for republicans? >> it is a political calculation, who gets the blame. who gets the blame for the shutdown? >>brian: antileadership. >>elisabeth: leading up to the 17th, the market will be where? >> i don't know. elisabeth, if i could tell you that, i would be worth a couple of billion dollars. >>elisabeth: that is another set of uncertain time. obviously you would anticipate things looking great? >> the market looks like it will go up 50, 60 points today at the opening bell. down the road, different story. as we approach the debt ceiling, that will change entirely. >>brian: i'll give you cavuto's extension. he'll know. >>steve: we'll be running varney and company today at 9:20. >> i am open for business. move on, brian.

>>elisabeth: stuart, i love having you here. >> thank you, elisabeth. >>elisabeth: someone else we love, heather nauert is here. >> stuart is the c.e.o. of the economy. god headlines. in a rare move the u.s. marine corps forcing two generals into retirement. the corps deciding that major general charles gerganis and major general greg swordovan failed to protect their base in afghanistan. this morning investigators in chicago are trying to figure out how on earth an empty train broke free from a yard and slammed into a commuter train that was loaded with passengers. dozens of people were hurt. but what's curious about this is that in order to start a train someone would need a special key and to know how to use it. a police officer this

morning being hailed a real hero after this daring rescue. take a look. >> i got you! i got you! >> that is officer armando rodriguez as he pulled a woman out of a burning car in california. the car burst into flames after it hit a telephone pole. the woman is in stable condition. the officer suffering minor burns. no word yet on what caused this accident. it could have been an absolute disaster. the microphone system failed when the singer tried to belt