brian: slogan comes to us from melissa in georgia. she says the show reminds her of wake up in the morning and who desee it's "fox & friends"' fabulous three. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- dave: not exactly identical. if you thought brian and i were wearing the same suit, they are close, gretchen. gretchen: they are very close. i'm sitting next to two pinstriped men. dave briggs is in for steve doocy. we have purple and gold going on. with the tie is what sets a man apart. brian: later the dog story. but, first a fox news alert. gretchen: right now president obama meeting with world leaders in italy for day two of thegate summit. this morning he met with brazil's president who gave president obama a soccer jersey signed by brazil's national team. brian: who beat us 3-2. gretchen: issues on the table today global recession and

trade. leaders agreed to a nonbinding goal to reduce greenhouse emissions by 15% by 2050. guess who didn't commit two of the world's biggest polluters india and china. both house closing in on complete plans for the healthcare system. house dems suspected to propose a tax on individuals making more than $200,000 and couples over $250,000. that's always the magic number. in the senate a stark contrast though. dems now edging away from their goal of passing legislation by early august because of partisan controversy over those tax increases. specifically a lot of high ranking democrats who are senators do not believe that americans should be taxed more for health care. count down clock ticking kennedy space center. liftoff scheduled for 7 3506r789 9 eastern. two earlier launch were scrubbed because of hydrogen fuel leaks. officers seized 350 dogs and

seeded 2 dozen people in what's being called the largest dogfighting crack down ever. facing charges of animal cruelty including denying medical treatment and shooting dogs in the head when they didn't fight well. dogfighting is a felony in all 50 states. maliyah obama seems to have a message for world leaders. get rid of nukes. just two days after president obama agreed to reduce our stockpile of nuclear weapons, his oldest daughter wore this t-shirt while touring rome it shows the campaign for nuclear disarmament symbol. wildly used as a peace sign and for antiwar protests. brian: i think it means no nukes nukes. gretchen: when i see that it's a peace. maybe its initial beginning had something to do. brian: maybe iran will get the message now. that will certainly help. gretchen: 11-year-old wore the shirt? brian: as dave was reading to you in the open fox

this book is 150 pages. it's called guide to the laws regarding muslim spies. the washington-based with middle east media research institute also known as memory, they found this posting online. the book talks about the spy network of people who have tipped off the u.s. and where taliban members are they say it's time to attack these so-called spies. it says they might be a, quote, decrep bid hunched back old man who can hardly walk two steps or infirm woman sitting in her house. adolescent a doctor, flowers, a preacher. show as high level of paranoia and distress at the top levels of al qaeda it was written by a top al qaeda commander it actually has introduction by

ayman al zawahiri that's osama bin laden's number two guy. dave: paranoia and stress you bring up. what about about desperation? that is so mainstream. doesn't it show they are getting desperate? >> i think it does, dave. frod tore drone attacks are the single tool in destructive operations in northern pakistan. the book mentions it. it's been translated by memory. the book refers to the leveling of homes by planes that are unheard, unseen, and unknown. it also says spies have spread throughout the land like locusts it definitely shows she's drone attacks are working. gretchen: how effective can this web book be? i'm sort of wondering personally this morning why they would even put it down in print. >> that's interesting, gretchen. if you are a regular taliban member sitting in waziristan you don't have the internet but your leaders might. the book specifically tries to find leniency around sure real law, muslim law to deal with the

spies. if it leads to decrep bid old money and women being ripped out of their home, that's disturbing but some things in this book are. brian: there was a bunch of drone attacks very effective one that almost killed a key commander in that swat region. we will talk to you again. keep reading. >> will do. brian: five minutes after the hour. what could you do with 18 million bucks? gretchen: well, put a lot of people back in jobs, i think might be the first thing but instead they're going to retool that web site that vice president joe biden is in charge of. do you remember this web site? it's recovery.gov. brian: because he didn't when he announced it. gretchen: he didn't remember what the name of it was. here is where you are supposed to be able to go as a taxpayer and figure out where all of your dollars have been going since we started giving all of these bailouts. the only problem is i don't think you could see specifically where the money was going. now they are going to spend 18 million more dollars so you can figure out where your

initial millions were going. it doesn't make sense. dave: perhaps now joe biden can remember the name of this thing. let's bring you back where joe biden was discussing the recovery.gov. >> by the way, do you know the web site. >> by the -- i'm embarrassed do you know the web site number? i should have it in front of me. excuse me, it is recovery.gov. recover.gov. dave: he got it the problem. gretchen: his aides were like sitting there with cue cards recovery.gov. dave: $18 million a lot of money for a web site. another problem with that 18 million is like the stimulus. not spent right away. we want to know right now where the stimulus money is going. the 18 million won't be spent half of it up until 2014. like the stimulus it takes too long to roll out. by the time that money is spent let's hope the recovery is already done.

brian: i can get two 12-year-olds to do it for $100. to redo a web site they do it everyday. 9. a million spend through january and 18 million to be spent by 2014. you don't need all that money to redo a web site. you have got to be kidding me. gretchen: almost like a double -- it says recovery.gov 2.0 will use innovative technology to help taxpayers see where their dollars are being spent. so i need to spend 18 million more of my tax dollars. when you think it through it doesn't make sense. make a simple pie chart. here is where 10 gazillion, went and 20 gazillion dollars went. brian: it's certainly helping somebody out there. brian: smart enough to get a contract. dave: california could use some of that money. they are in a might mayor budget situation. considering now arnold schwarzenegger the governor says is he considering opening up

their budget talks to a reality show, to television, to a web cast. which would be very good if they were televising this past week. because instead of arguing over the budget, three of the things they were discussing were blue berries, pomegranates and honey. you can imagine how good that episode would have been? what do you think this episode ought to be named? gretchen: isn't government supposed to be transparent anyway in the idea that wee might learn something more from a reality show to me, aren't we supposed to be getting the true answer without seeing the reality show and suddenly cameras are there so they are going to start telling the truth? i don't know. brian: it would be great. because you can't storm out of a meeting and say i have a reporter or account why such and such stormed out of the meeting have. their take on the situation. sit there and watch these talks happen. knowing they are on television. be forced to have results on any given day. come back and say why did you take a three hour lunch? why weren't you talking about the 363 billion-dollar budget

gap? why haven't you gotten anything done? it doesn't seem like the democrats or republicans are doing enough. why wasn't governor schwarzenegger at that meeting? all these things would be like putting everybody in a glass bubble. i think it would be fantastic and john travolta was brilliant in boy in a bubble back in the 1970s. gretchen: sadly, i remember that movie. brian: arnold schwarzenegger the governor says legislators so far seem willing to try it. dave: why not? i'm with you. i love. this. gretchen: come to this that we need to put the state of california on a reality tv show so we can find out why we may end up bailing them out? that is simply ludicrous. dave: gretchen, you haven't watched reality tv lately. this t. is bad out there. gretchen: they should have personal responsibility without needing cameras there to know how to spend our tax dollars. brian: it worked in 2005 in new york. pataki used something very similar. let's look at some sample names. we are going to need music and sell commercials and look at some of the titles the real

world sacramento. dave: what happens when politicians stop arguing and start acting real a few more. has been survivor california outwit, outlast, outspend. pretty solid effort this morning. i think we have one more. i have got one more. if arnold is the star of the show, i'm a republican, get me out of here. gretchen: he hasn't been acting so much like a republican. dave: that's impressive. but we know the most successful reality series is survivor and survivor 1 was the most popular. the reason why it was so popular because a naked gay guy won it. gretchen: the first time around. brian: he ended up in jail. that's the reality of it. that's what could really launch it. gretchen: instant analysis. brian: see if we could get some characters. gretchen: schwarzenegger there some kind of a fitness kind of reality show. anyway, let us know if you have

any better ideas for california or if you think it's nuts like i do. brian: we talked about the first round of stimulus money. now the administration mauling over another stimulus plan that would cost taxpayers even more. what about a plan that would cost us more and help revive the economy. i like the second idea. dave: airline busted his guitar and refused to pay for repairs. he fought back with this hilarious song on youtube about how the airline stinks. hear the song and meet the singer coming right up. ♪ united ♪ united ♪ you broke my taylor guitar ♪ united ♪

[ female announcer ] the results are in. beauty editors and research institutes are seeing results. [ male announcer ] best cleanser, essence magazine. hydrates better than the $350 cream. [ female announcer ] most importantly, women are seeing results. and still no drastic measures. olay regenerist. brian: here is what is coming your way.

former d.c. mayor marion barry in the clear this morning. stalking charges against him have now been dropped. barry arrested saturday for allegedly stalking his ex-girlfriend. his lawyer denied the allegations saying barry had dined with the same woman that same day. the prosecutor's office looked at the evidence and will not pursue the charges. finally five people missing this morning after their plane went down off the florida's gulf coast. the twin engine plane, it's cessna, took off from mckinney texas. it lost radio and radar contact after reporting turbulence. >> town home we used to say there is no education in the second kick of a mule. why in the world there would be any conclusion reached after looking at the results of the first stomach columbus that the way to deal with that is to pass yet another one is mind boggling. gretchen: that was senate minority leader mitch mcconnell

reacting to the idea of a second stimulus plan. what about an alternative. if the government spurred the economy from the ground up by encouraging people to buy and invest in real estate. dave: interesting. personal financial advisor jordan goodman is the author of "fast profits in hard times." >> good to be with you. dave: you suggesting allowing people to take money out of 401(k)'s, penalty free tax free. inen encouraging people to invest in own homes. why is that a good idea. >> if you do real estate right. it's a fantastic investment right now. rents rupp. it could have positive cash flow it makes economic sense to do it if you are in a place to have a decent rental. getting this huge amount of capital tied up in 40 1 k's or ira's. 10% penalty plus state and federal tax penalties people are not going to do it. stimulates the economy. gretchen: argument would be from

some financial advisors you shouldn't use retirement money currently now. but, so many people argue that the housing market was the key to this whole crumbling. until you fix that problem, you don't fix the economy. >> housing is what made the economy go up from 2003 to 2006 and what's leading the economy down. first subprime and now it's prime mortgages as well. that's the driver up and the driver down. now we can make it drive up again. gretchen: what about the retirement money for folks. more important to use it in present daytime than to save it for retirement. >> it could be a good investment for your retirement. you have the money in that ira growing for you. if you were renting it out and having positive income, it's like having a bond working for you. dave: if in fact the real estate market holds solid. wouldn't this be bad on the market as a whole if had you all these people running on ira's and 401(k)'s? >> not that many people are going to be doing it people are going to be doing it for their own homes. a lot of people want to buy homes out there and lot of homes

available but not the capital to put the two of them together. we talked about this before, this has nothing to do with the government. if people do one of these mortgage equity axle ler rarts they can pay their mortgages off in five to seven years instead of 30 years that will stimulate the comedian as well. truth in equity.com. it's helped a lot of your viewers in the past. pay your mortgage off much faster. gretchen: what does it dooncht home equity line of credit. put your income into it. pay your expenses out of it every day that goes by you pay off some of your principle as opposed to paying for 30 years. the first 10 to 15 years is almost all interest. empowers people and save tens of thousands of dollars on their mortgage. that's money that can be used on the economy instead of paying interest. dave: not that many people know about it fast profits in hard times jordan goodman. thanks for being here this morning. >> good to be with you. gretchen: we will link that web site to our web site. >> very good. greff gretchen her nephew was killed in afghanistan the same

day michael jackson died. his death was largely ignored. she will join us live to share her nephew's story. dave: then, how the mighty have fallen. ruth madoff trading in her penthouse. we will show you the very tiny dig she is checking out now. . ♪ singer: buckle up, everybody 'cause we're taking a ride ♪

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dave: it's now time to check out foxnation.com. maybe wait until the break. it leads you read stories that americans truly care about. first up on the foxnation.com. should david letterman still be taking shots at sarah palin? well, he did again last night how does the president think he

can actually control the earth's temperature? now that is an aspiring goal. and might there be another czar on the way? could be a great lakes czar? what is that story all about and you can check it out on the foxnation.com. brian, gretch? brian: 23 minutes after the hour. june 25th michael jackson died. mainstream median 00 story with wall-to-wall coverage including us. gretchen: someone else died that day this lt. brian bradshaw he was killed by roadside bombs. his death got zero coverage. brian's aunt martha gillas joins us this morning. we would like to extend our sincere condolences to you for the loss in your family. >> thank you. gretchen: this came to light because you decided to put a pen to paper and you wrote something to a newspaper in washington, d.c. to say where has the

coverage been for my loved one who was killed in afghanistan in a war that by the way we are still fighting? >> right. exactly. and i want to speak for the 4,000 other families as well who have lost someone in two wars that have virtually disappeared off the front pages of the newspapers. brian: and you said as you find -- you wanted to find out about brian who was covering it and came across another family, who lost a loved one in battle in afghanistan at the dover air base and decided i'm going to put something in the "the washington post." what's the response been since then? >> it's actually been rather startling. i didn't quite know that i was going to shake the media tree quite so much. i got back from brian's funeral to a voice mail full of media inquiries. but, also, with messages from complete strangers offering

support and condolences. and a few people had even tracked down my address and sent cards and letters. so the people are interested in supportive if they know. gretchen: your claim, martha, was not that michael jackson's death should not have been covered by the media. >> no, not at all. gretchen: but the deafening silence of no coverage for servicemen and women who are dying for this country on the exact same day? >> yes. exactly. go ahead, martha. >> i just wanted to say that it's called military service for a reason. they serve us. and for us to let that service go unnoticed is wrong. brian: martha, it's no coincidence, it's not a last-second decision for brian to go into the military.

you said his whole life he has always talked about service. and it wasn't surprising for you or your sister or the family that he ended up doing this? >> no. not at all. brian was a remarkable young man. he wrote an essay when he was just a junior in high school, only 17 in which he stated in terms i couldn't have written when i was 30 his commitment to a life of service. he said that without service -- gretchen: we have a quote from that march that and as you clear your throat i want to read from this thing that he wrote. this wonderful essay when he was a young man. >> yes. gretchen: this from a young man. how old did you say he was at that time? >> 17.

and this from a guy who on the surface seemed to be a complete clown. but, you know, when you put him in with the other -- to us, that's remarkable. but when you put him in with his military buddies, he is not that unusual. the 4,000 other families who have lost people or who have had someone come back with wounds, they all have stories to tell. and i -- people will pay $10 to go see a movie but b. world war ii or vietnam war and so the interest is out there if you tell the stories of these young men and women as, you know, human beings. and what they are trying to do. brian went to afghanistan to try to help the afghani people. he wanted them to enjoy the same security that they take for granted here in the united states. he asked us to send him crayons

and markers and things like that that he could hand out to the local children as part of the effort to win the hearts and minds of the afghani people because he saw that as the road to peace. brian: march that you did a great thing writing that letter. he was a great guy. you are talking about him and that takes it even more special. now the west of the world knows his story. martha gill his. thank you for joining us and condolences to your sister and the entire family. >> thank you. brian: 28 minutes past the hour. gretchen: have you ever had an airline break or lose something? then you are going to want to watch this video because it's heating up on youtube and it might actually make you feel better after you watch it. brian: bottled or tap water? what's better for you. a watch group wants to end all of that we will explain. you heard brian bradshaw's story. we want to honor the other 22 who have lost their lives in

iraq and afghanistan since that date that brian lost his life. take a look at these names. ♪ stand in six different ways? introducing listerine® total care. everything you need to strengthen teeth, help prevent cavities, and kill germs. introducing 6 in 1 listerine® total care. the most complete mouthwash. and to complete your oral care routine add superior plaque removal in places that are hard to reach with reach® toothbrush and floss. get the complete routine, reach® and listerine total care.

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>> last night after less than a week using fertility drugs he was ejected for arguing with the umpire. the argument started when he forgot my birthday. dave: manny with the female fertility drug is he going to get a lot of abuse when he goes on the road and here in new york. no exception. brian: dave, i tell you, he was cheered in the minor leagues, he was comeerd -- cheered. gretchen: his apology was one of the longest on record, it was three words. brian: longest interview. dave: from manny to madoff. gretchen: two guys that begin with m. dave: bernie will not appeal 150 year jail sentence. either way madoff recognizes that even if that is reduced say

30, 40 years, he still is going to spend the rest of his life in prison. meanwhile, ruth is going to have to trade down a little bit in terms of her digs. gretchen: she was left with 2. a million dollars that's what the government deemed the money that had no fraud associated with it. that's what they left to her. apparently the government will sell their $7 million penthouse here in new york. not sure what it will get in today's economy. then she is left to go out and search for a new place to live. reports here in new york it's been very tough for her to find a place. because when she says hi, my name is ruth madoff. people do not necessarily want to rent or sell to her. could it be true that she is looking at a simple 481 square foot apartment compared to the 4,000 square foot apartment she had going from 4 bedrooms to 1 bedroom and to an apartment that needs a lot of work. dave: sure. gretchen: compared to -- those are the reports out this morning that she is going to down size to this one bedroom apartment.

brian: a fixer-upper. if this apartment is right over on east 90th go there and say hello. $770 a month. neighbors weren't thrilled that she was looking at it get some spackle and paint and live on 2.5 million. i don't know how do you that dave: in new york it is not easy. five bedrooms to one bedroom. ultimate challenge for ruth. why does she stay here in new york? she has got to get out of here. one city besides palm beach that everybody knows her. everybody hates her. get out of this city, ruth. she is even using her maiden name some say to get an apartment. gretchen: the prosecutors say they are north going to indict her on any kind of charges. dave: yet. gretchen: they pretty much said they gave her her passport back. i don't know if we'll ever know if she knew what was going on but let's say she didn't, then i don't think we should malign her to the point that she can't find a place to live. if she did. then it's a different story. brian: who knows. during dinner no one ever brought up ponsy.

even though she was a bookkeeper for the business. government decided she is a little old. give me the monday talk place. give me the apartment. come clean on check book. >> we will let you keep something that will allow to you live. dave: if you live in a building in new york i don't want her living with you? no, because the paparazzi is going to stakeout. brian: i would not want ruth in. gretchen: headlines this morning south korea on high alert for more cyber attack thts out north korea is being eyed for the recent wave of attacks there and in the u.s. more than two dozen web sites including the u.s. state department were attacked over the past few days. a rare public appearance. check this out. north korean leader kim jong il was at a memorial for his father who died 15 years ago. where is he exactly? because i read in the accounts that he was very thin. brian: is that it or is this generic footage? gretchen: he look as little fat

there. final resting place for michael jackson remains a mystery this morning. there are reports three of his brothers want jackson buried at neverland ranch but his mom catherine says know. we do know that the jackson's dermatologist has been questioned about prescribing the dangerous drug dip pro-van. dr. klein says he never gave jackson that drug and doesn't know how he got it police are questioning klein over the possibility he is the dad of two of the three kids. custody hearing is set for monday to decide who gets guardianship. right now catherine is taking care of the kids. dave: police now confirming exnfl star steve mcnair's 20-year-old girlfriend shot him four times before turning the gun on herself. girlfriend may have suspected that he was actually seeing yet another woman. they also say she was becoming increasingly upset over her financial situation. meantime, fans paying trinity to the former super bowl quarterback, the titans, opened

up l.p. field for a two-day memorial. gretch? gretchen: a border collie named cowboy is more than just man's best friend. his owner says this dog is a genius. can he open fences. pick up tools, even play basketball. he even went to work with his owner on coon destruction site where he helped retrieve tools. his owner says the dog was given to him as a gift and that he was never trained to do these amazing things. dave: he will do something short brian could never do slam dunk. brian: that's absolutely true. can you dave? is your game above the rim? dave: you just put me to the test. only a tennis ball. brian: big barkers got to get used to hearing news. musician connecting from chicago to omaha when he noticed his guitar case had been thrown around by airline baggage handlers. he found his guitar smashed. dave: but united airlines refused to take any responsibility for the damage,

so he decided to fight back with some unforgettable tunes. listen. >> you broke it. you should fisks it you are libel just admit it i should have flown with someone else or gone by car. ♪ ♪ because you united breaks guitars ♪ gretchen: i guess that's the team of the song. dave carol of the band maxwell is on the phone with us. good morning to you, dave. >> good morning. gretchen: i used to be a serious violinist. when i would travel with my violin i would never dream of putting it in luggage, dave. why did you put your guitar in luggage? >> couldn't put it in the overhead bin. people get away with it but i was never able to. and with this guitar six times never had an issue. dave: you landed, dave, someone looks out the window. what do you see? >> i didn'ti didn't see the guir

getting thrown. a passenger behind us she didn't know -- she threw -- said oh my god they're throwing guitars outside. gretchen: so the other passenger saw your guitar being man handled by the baggage claim people and so she tried to get flight attendants' attention they didn't seem to be interested. when you get to your concert you figure out your guitar is smaciousd, right? >> pretty much, yeah. i travel with two did i give tar sois was able to play the show. the guitar was damaged pretty bad. brian: dave, the song you wrote in response is brilliant. united airlines has taken note. they say. this this has struck a chord with us. we are in conversations with one another to make what happened right. while we mutually agree that this should have been fixed much sooner. dave carroll's excellent video provides united with a unique learning opportunity that wield like to use for training purposes to ensure all customers receive better service from us.

they are going to come up with something, dave howvment do you feel about making united a better place? >> i think it's pretty cool to think this could end up being better for passengers on a daily basis is pretty gratifying. in terms of compensation for myself. i'm not looking for anything at all. i'm happy to be sharing the story. back in november and guitar has been fixed. dave: what a weapon this is for the future, man. if you have a bum deal with the rental car company, bad experience at the grocery store, you just write a tune, right? >> yeah. i have been getting inundated with offers to write for miles of causes. gretchen: maybe you will be writing a theme song for united airlines soon. dave carroll, thanks so much for sharing your story this morning. and good job on the video. dave: it is great. check it out on youtube. you don't want to miss that. gretchen: i can't believe he doesn't even want compensation? it cost him 1500 bucks to fix that guitar.

brian: they are going to write him a check don't be surprised. one czar, two czars, three czars. the obama administration has 33. who are they? what makes them qualified to be in charge? our next guest says not too much. gretchen: next hour, a dom minnow kidney transplant very first of its kind. one donor gives to a recipient another one gives to someone else so on and so on eight times over it was successful. we talk to one of the donors and one of the recipients. ♪ she drives me crazy ♪ roasted chicken recipe? - savory rice and lamb stew. - [ barks ] you're right. tonight is a beef stew kind of night. [ announcer ] beneful prepared meals. another healthful, flavorful beneful. featuring our all-new real sliders. give your taste buds a little tlc. with our real french dip or crispy southern chicken. plus, over 75 other combinations starting at just $5.99.

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dave: 350 fighters and seven helicopters are closing in on containing a huge blaze neither

getty's center art complex in los angeles. it's about 90% contained. the fire became so intense the center's 800 employees were evacuated. the equipment used by a brush clearance crew sparked the fire. and he is not even yet old enough to vote but he is giving big car companies a run for their money, believe it or not, 17-year-old andrew loader bought a 199 a ford escort before it went to the junkyard. then he transformed it into a homemade electric car. he had never worked on cars before this and got his only help from the internet. his net goal san electric pickup truck. brilliant. guys? gretchen: thanks, dave. could the obama that administration be going czar crazy? now reportedly 33 special envoys, maybe 34. none of them have to go through a confirmation process and that has our next guest steamed. congressman jack kingston introduced legislation that would require czars to be confirmed by congress like

cabinet post right congressman? >> that is a constitutional duty. it's article 2 section 2 of the constitution says that key advisors to the president have to be named with the consent and advice of the u.s. senate. and that's why they vote on not just cabinet members but subcabinet members. deputy assistant secretary. there is all kinds of people that never made headlines but the u.s. senate has a crack at them so they can get get their background and vet them a little bit. gretchen: this has become the new thing in the obama administration by your numbers 34 czars. lets's give folks information this morning. how much money do they make? by your accounts $172,000 ayear. is that across the board? >> yes. and now and we don't know how many staffers they have, too. if you just think in terms of 33 czars plus 10 staffs, 330 people people, at decent salaries, that's a big bureaucracy that we

are creating outside of the knowledge and the realm of congress because they don't come before us for their budgets. they don't come to us reports on what they're doing on regulations on cars, on the great lakes, on everything else. gretchen: you bring up cars. the auto task force czar has no car experience. i believe nobody on the entire auto task force has auto experience. so that's one issue. second issue is they are doing parallel work are they not to the cabinet position? >> we have terrorism czars, we have quan tan know closure czars. we have sudan czars. you have to ask yourself what is secretary gates the secretary of defense supposed to be doing or secretary gator or secretary of the army if you have all of these czars out of their realm. as we pointed out we don't know what their background is if you are the guantanamo closure czar, what is your expertise that's better than anything that's already existing inside the pentagon? gretchen: what is your analysis of why the obama administration is doing this?

>> i think they are going around congress so that they can have their own flexibility and get things done. and i think it's just basically an end around and, unfortunately, they are totally unchecked because harry reid and nancy pelosi will basically rubber stamp anything the administration wants done. the other day when we were having this debate, i asked all the chairman of the subcommittee of appropriation, how many of you, and these are the guys in charge of spending the money, watching the budgets. i asked how many of you have ever had one of these czars in front of your committee to review his or her budget and ask them what they are doing and how many staffs they need and what their expenses are. not one hand has went up. not one people has seen these people in front of congress. one thing we still are fairly good at on the hill is oversight. we like to raise cane. gretchen: according to historical staffs. russia had 18 yards in 18 years. in three or four months obama

gone above that jack kingston, republican from georgia. thank you for joining us this morning. >> thank you, gretchen. gretchen: we all drinked bottled water, right? many of us do. do you know what's actually in it? how could you because the labels don't reveal much at all. that could all change now. you can't have a vanity plate that says 9 mm gun but you can have shotgun. why? who knows. that's why the aclu is slamming the state of colorado for censors these custom plates. is this a violation of your freedom of expression? we report and you decide. (announcer) we speak car. and guess what? the car listens. you say call nina, you get nina. you say play puccini, 12 sony speakers... play puccini. you say get me to the game, you get there step by step.

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dave: which do you think is safe forever you bottled or tap water. researchers and congressional

are questioning the purity of bottled water. brian: hanson water expert with consumers unions. michael, what's better for you? >> what the tests show is bottled water isn't necessarily any safer than tap water. in fact, the regulations on tap water are more stringent than for bottled water. dave: because they are regulated by two different agencies. this by one and this by another. tell us about that. >> yes. tap water is regulated by the environmental protection agency. bottled water is regulated by the f.d.a. and with tap water, the e.p.a. requires that all tap water has to be tested for contaminants using certified laboratories and they have to report that to the public. dave: what about this? >> there are standards but they are not required to use certified laboratories and not required to report to have the public. every year people get it's called consumer confidence report. your municipal water system has

to send that to you. it has to report all the contaminants that are in there. we looked at 25 of them and 22 out of the 25 they had problems with led or ee.coli or chlorine. in fact, some of the samples from boston had 345 times the led limit. brian: what bottle was this? >> that was in municipal tap water. brian: you are saying in that case tap was bad but we tested and knew it. >> right. that's what consumers should do is they can get a copy of this consumer confidence report. we can tell you how to analyze it and if you have a problem in your area, you can actually use a filter. filters are cheaper than bottled waters. brian: i'm anti-e.coli and so is dave. we are going to stay away from the water in that area. how do we know what to buy and what to use? we get that test. what about bottled water? is there anything you would feel comfortable, michael, having? >> the problem with bottled

water is there is no requirement for them to test using federal laboratories or to report if there is a problem. we did testing in 2000 and the big five gallon jugs that are made out of polycarbonate, eight out of 10 of them had traces of bpa and there is a big concern about this chemical now because it's an endocrine disrupter. dave: brian, you can have that one. brian: joel? we will see if joel survivors. that's our tester. we will find out. michael hansen. good job. >> thanks. dave: the president meeting with world leaders g-8 summit all week. they agreed to slash greenhouse emissions by 50%. guess who did not commit? we are live at the top of the hour. brian: who brought the snow? then the pentagon refuses a flyover for god and country rally for the first time in 42 years is it because the christian nature of the event? we will report it. you will decide it. ♪ kelly saunder's nature valley,

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call now. gretchen: great thursday morning so far. july th, 2008. thanks for sharing your time with us. joe biden says reform is coming to health care in america. at what cost to you and your health? and how will we pay for it all? 1 trillion bucks. why even democrats now can't seem to agree. brian: you a personalized license plate. if you live in colorado, you are allowed to have one that says get naked. but you can't have one that says nudist. why? who knows. dave is very disappointed about this. the aclu now lashing out at the censorship. who so who decides what's ok and what is not? dave: and what's on my vanity plate. plus a domino kidney transplant, the very first of its kind a bunch of donors giving to recipients 8 times over. that is 16 participants.

we talked to one of the donors and one of the recipients coming up. our slogan comes from jimmy in georgia out running with the dogs, they are faster than me then watch "fox & friends," the best of morning tv. well done, jimmy. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- >> hi, everyone. this is leann rimes and you are watching "fox & friends." dave: good thursday morning, everybody. thanks for having out. i'm in for steve and the super stars to my left. gretchen: very good to have the pin-striped twins on both sides of me today. brian: we're waiting for the blood tests to see if he would related. keep your fingers crossed. coming up next hour. dave: we will see. gretchen: busy thursday a lot of discussion going on about health care reform. where is the president? he is still overseas meeting with world leaders at the g-8 summit today. peter barnes is live for us in l'quila, italy with the very latest. good morning or good afternoon, i guess. what you can tell us about today's meeting so far? >> well, climate change is back on the agenda here front and

center with the president and the other leaders of the g-8 just wrapping up a meeting with china, india, mexico, brazil, and south africa. the so-called g-a developing countries. the president and other leaders are hoping to make progress on reaching a global deal to cut greenhouse gases. a global deal on climate change. so far however these countries have resisted signing on to some kind of big plan. they worry that aggressive targets for reducing carbon emissions could hurt their economies, among other things. they want money and technology from developed countries from industrial companies to help them as they go forward with cutting carbon emissions. the president will also chair later today another big meeting on this issue of climate change with the g-8 leaders as well as the developing countries. gretchen? gretchen: a lot of people are wondering what the gift was that president obama received from brazil's president lula. >> president lula and president

obama met this morning and president lula gave president obama an autographed soccer jersey from the brazilian team. now, the back story on this is, much to everybody's surprise, the u.s. soccer team made it to a big international soccer tournament called the con federation's cup. and believe it or not was playing brazil in the final, leading 2-0. the brazilians came back and won the match 3-2. the brazilians won the trophy cup. the americans, we got a signed jersey. [ laughter ] the president said -- president obama warned president lula that next time they are not go to blow a 2-0 lead. it. brian: that's good the president knew that because his daughter plays soccer. i'm sure he is all over the soccer scene. peter in south africa. good job. >> ok. brian: amazing we have to pay china and india and developing countries it lien up their stuff so they want incentives to clean

up their air and to be echo logically conscience? dave: by 2050 not exactly in the next two or three years. plenty of time to to do it and they still refuse. gretchen: another subject is health care reform right back here domestically. that fight continues today on capitol hill. some very interesting developments are coming out of this fight. because if you thought that all the democrats were going to agree on the fact that we should tax health care benefits for people in america, nope, that's not the case. here are the democrats who are now on the fence with. this maybe they have been hearing from their constituents. ben nelson. mary landrieu, blanche lincoln, evan bayh, joe lieberman. all of these are senators. it looks like the house will be able to get enough democrats to support this taxation but maybe not in the senate. and that's important because a lot of people thought with al franken coming in from minnesota as a democrat that that would be filibuster-proof. brian: see, this plan needs a trillion dollars. how do you get a trillion

dollars and go by what the president says and not touch the deficit? what do you is cut. if you can cut to get the health care reform, shouldn't you cut anyway? the hospital said we are going to cut 224 billion voluntarily. upon further review, they knocked it down to 155 billion. so they get a chance to exhale. now, where else are they going to get this money? medicare and medicaid, which are already running at a deficit. they think they got a savings up to $940 billion. but the hospitals say yeah, i will help you out. you are going to help me out in the illegals and uninsured? by the way is, there going to be a public option? people like left-wing organizations like moveon.org says you have to have public insurance. everyone has to be on public insurance. rahm emanuel says maybe we will put the public insurance out there as incentive to keep private insurance offering the lowest rate possible and that drove the liberals crazy. dave: there are also things on the table like the house dems taxing the wealthy, those who make over $200,000 as an individual. 250,000 as a couple.

little things on the table like soda and sugary beverage taxes which would obviously blow the president's promise of no new taxes for those making less than 200,000 because that would certainly hit low income people in this country. gretchen: we should say this with more fer vowr. the idea that they would have a surcharge on people who make over $200,000 as a single person or $250,000 as a couple, there is not going to be any money left in this country if you continue to tax these people who are working hard and earning a buck. if you are going to tax them now on health care, too, there is not going to be any money left in this country for it to all go around. so this is why some of the democrats in the senate are saying wait a minute, my constituents may not like this plan. brian: the other thing is what the heck is the rush? got to get a plan by september? immigration by october. reforming wall street should have been done yesterday. it's impossible to digest all these things in the rate in which he is offering them.

dave: fortunately the senate is backing off of the august deadline they talked about at the beginning. they say by the end of the year they should have legislation. karl rove says the president cannot be trusted with numbers. doesn't have much of a track record karl rove says. he points to things like this stimulus bill when he says more money will be spent from 2011 through 2000 19 than will be spent this year in the first fiscal year of the stimulus bill. he says why should we trust him with this one when he hasn't lived up to other promises when it comes to numbers? gretchen: and the main thing is that first stimulus package only 10% of the money supposedly already being put into the communities so far so how would we then have a second stimulus bill? karl rove will be here in the next hour to break down the numbers for us. brian: his column is in the "wall street journal" today. but, tell us what else is happening. we will talk some more. gretchen: now the rest of the headlines, fox news alert new cyber attacks being reported in both the u.s. and south korea this morning. south korea's spy agency says these attacks are coming from

the north. the attacks were anticipated and counter measures now are in place. however, that didn't prevent all the attacks, including one on the state department and the peck right here at home. south korean banks were also targeted. hackers overloading access requests overwhelming the software. an intelligence bill faces a house vote today as dems accuse cia director leon panetta of misleading congress. in the letter to the intelligence committee, seven house democrats say panetta told lawmakers in may that the cia didn't mislead congress but then in june panetta told the committee that the agency did mislead congress. some republicans claim the letter is an attempt to take heat off of speaker nancy pelosi and her comments about the cia but dems deny it. >> our national security is about the most serious thing that we deal with here on capitol hill. at least i think so. and it shouldn't be politicized. gretchen: the cia itself says the agency does not mislead congress and panetta stands by

his may statement. green peace members challenge president obama to step it up by scaling up mount rushmore. members climbed the back of the 5700 mountain to unveil this barn it was up for about an hour before the national park service got there and took it down. green peace members pulled off the stunt to protest president obama's position on global warming. a dozen arrests have been made but no one yet has been charged. take a look at this. you are watching a 14-year-old's joy ride crash his dad's car. thankfully he and his 12-year-old cousin who was in the car with him were not seriously hurt. the boys say they were just going out for some ice cream but when police saw them make an illegal turn coming out of a dairy queen. the chase was on. speeds got up to 110 miles per hour. the boy confessed later. i panicked. dave: that is a testament to whatever car they are driving. i hope it's an american car because no serious injuries? that is impressive. gretchen: that's why some states don't do those chases anymore

because of situations like that. dave: let's talk about vanity plates. i know brian had mr. cool on his mustang? his 1969 mustang? brian: i probably would have done that had i had the patients to -- patience to go to motor vehicle and wait in line. dave: never had a vanity plate. in the state of clorlgd in my own state they have turned down some plates that you wouldn't think. they allow some license plates. they don't allow other things. it basically goes through committee. we will put together a game for you and for us. which do you think of these license plates was turned down and which do you think was allowed, guys? brian: not free or free? what was turned down? what was censored? all right, not censored. dave: i'm going to say not free was censored. gretchen: true. they did not allow that. dave: why? gretchen: the aclu is come to the defense of the people whose license plates were denied. basically the aclu, this time

around, is saying that colorado was -- you know, playing bias to certain license plates and not to others. let's take a look at some of the other ones. like this one. well, crap or no crap. dave: crap or no crap. which was censored and why? i say crap was censored. brian: i would say that too. dave: answer? crap. why no crap allowed? brian: they ruled that there wasn't. [ laughter ] brian: let's look at the next one. satan or s 8 n? dave: i would guess that satan with the 8 s. was allowed because it's more cryptic. gretchen: you were wrong on that one. it spells out the word and the other one brian can't even figure out. why would they alou that one. gretchen: you can deck him. dave: you are between us.

brian: runnakd or. gretchen: skin naked. dave: ski naked. no that gets cold. ski naked was allow. gretchen: you are right. dave: yes, skinakd was allowed. perhaps it's more flagrant when you run naked. perhaps it's less attractive. i don't know. not a pretty picture anyway. gretchen: i never had the vanity plates either dave. brian: we could do this as a home game. milton bradley will be calling us, there is nine more intriguing ones. let's talk stimulus. we haven't spent all the money in the first stimulus. guess what? it was supposed to create jobs and it hasn't. now the government is talking about a second one. it's money we don't have. what is that about? we talk to the administration's tarp cop next. gretchen: web site robbers beware robbers using craigslist. ambushing them and ripping them

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gretchen: new congressional report out this week shows that some of the stimulus money given to states is being misspent. those are just the facts. and now with talk of a second stimulus, and the obama administration admitting the economic crisis is worse than expected, should would he be worried about the $7 billion allocated to the tarp program? brian: elizabeth warren is the chair of the tarp program congressional oversight panel. welcome, elizabeth. appreciate you joining us. >> i'm always glad to be here. brian: first off, what is your hunch from what you have seen already? should we feel good about where this tarp money is going? >> you know, i guess i'm a professional worier. my job is to see how they are

spending the money. that's what congressional oversight panel is trying to do. but you have to remember. when this money was handed out last october and november, it was handed out largely on a no strings attached basis. here, take the money. we said to the banks. and so the whole notion of whether or not they have misspent it is a pretty tough one here. we didn't ask for any restrictions on it. and so there aren't any. gretchen: that was amazing that that actually happened that way, elizabeth. because then after the fact, everyone was like hey, how can we not account for those billions that went to those banks and what the heck did they do with it by the way? and the same thing goes for the automakers, right? >> well, it's the same at least with the automakers. we have to say they got a little smarter by the time they moved to doing this with the automakers. they asked for some real changes and for a business plan. so there is a little bit more control over how the money is being spent. but with the banks, it really was blank checks. brian: first off, do you know how much is left?

>> well, there is a little dispute over how much is left. based on the accounting. you wouldn't be surprised. it's in the neighborhood of about $100 billion that's left. and you remember now some money is slated to start coming back in. gretchen: i'm sure we will be able to find out from that $1 million we are going to put into that new recovery.gov program to make that better for taxpayers exactly where that 100 billion is going to go. let me ask you this, elizabeth, do you agree with vice president joe biden's comments over the weekend where he said that the obama administration misread the economic information they were provided? >> you know, i have been saying from the very beginning on this, we obviously cannot run an economy without a banking system and it's important that we intervene and try to make sure that we have a stable banking system. but it's really about the underlying economy. ultimately, everything is going to turn on unemployment and what happens in this housing market,

whether or not we can stop the mortgage foreclosures and kind of get the housing market stabilized. it f. we don't have an underlying economy, we don't have consumers to go out and purchase goods and services. we don't have people doing jobs. we can't rebuild this system. so, the tarp money has really been about infusing dollars at the very top. but ultimately, this is going to be about whether or not the economy recovers. not whether or not a handful of banks get richer. brian: good point. all right, try to spend 100 billion left wisely or make sure they spend it wisely elizabeth warren. thanks for joining us and hopefully you will get some more money paid back from other people that borrowed it. elizabeth, thanks. >> thank you. brian: 19 minutes after the hour. gretchen: this man was caught speaking spanish while on the job. enough to he is in trouble with the law. we'll explain. brian: and an amazing medical feat. one donor gives to recipient and another one gives to someone

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brian news by the numbers now. $1.4 million that's how much the mikial sack son memorial cost cash-strapped los angeles. next 26% of americans obese according to a new government report. that's two thirds of everyone. look to the left and look to the right and then look in the mirror. and 1200, that's how much laptop exriewrts lost at los angeles national airport every week. dave? dave: thanks, brian a new twist in the case against an employee at a texas state employee for the developmentally challenged. he was filming the fight club

videos. although they have been making their way around the internet. the judge is ruling they will not be admissible at the trial. gretchen: where does that leave the case? fox legal analyst peter johnson jr. is here to explain. peter: good morning, how are you? they are on the internet and youtube and disgusting vial videos. and so i guess the decision was made this morning not to actually show them. but what's going on is the court is saying listen, these videos, about 20 of them on a cell phone were found, perhaps stolen from the defendant, mr. dixon in this case. and the judge is outraged texas by saying now no, i'm not going to allow these into evidence. even though thousands and thousands of people have seen these videos of these despicable acts. dave: did the defendant, mr. dixon say they had been stolen or had this cell phone in fact been left behind? >> absolutely. that's an interesting issue. a controversy about whether it was stolen, whether it was lost. whether it was taken from his

person. and so the judge is making this kind of arcane evidentiary ruling that somehow it was a seizure that he was not responsible for. not really in the illegal seizure not obtained properly. therefore the jury is not going to hear it. what the prosecution is saying is we are not going to appeal it fine. we are bring golden globe to bring the people who in did this and saw this and be the best evidence as to what happened. even if the jury can't see this video, we will hear from live witnesses. gretchen: so technically this video, disabled people being set up to fight each other. we have seen teenagers do this. and then the organizers allegedly, at this particular home in texas had these disabled people do. this. >> right. gretchen: i always thought, peter that if had you evidence of a crime that no matter how you gotcha evidence that

sometimes that would supersede whatever the law was because it was such good evidence? >> you should have gone right from stanford to stanford law school because you are right. gretchen: big mistake. >> i don't think you made any mistakes. i think you are absolutely right. i think the judge has made the wrong decision in this case. and what we are having in texas and it's incredible issue. there are 13 and 14 facilities for the mentally challenged. over the last couple of years, dozens of people have died in those facilities from abuse. not from fights like this. what we saw here was the equivalent of a developmental disability facility version of saw. people being pitted against each over to really kill each other. dave: that's cruel. >> it's vial and brutal and disgusting. this is something that geraldo rivera 30 years ago uncovered here in willow brook here in new york state and changed the system in new york state. texas is undergoing that at this

point. this will go to an appeals court and appellate court will decide whether this evidence comes in or not. i hope the prosecution mounts an effective appeal. dave: with or without this cell phone video, there will be changes made in that system in texas. >> absolutely changes being made. in this case one person has pled guilty and turned state's evidence already. dave: good deal. >> there will be trials of these other folks. i think the people have to watch this very, very closely because this is the shame of our society. this going on. this is a horror show. gretchen: thank you, peter. >> judge wrong. wrong. gretchen: calling out the judge. >> wrong. dave: thanks peter. craigslist users beware. criminals are targeting the site to rob people. how you may become a victim and what you can do to avoid it we'll have a live report in just two minutes. gretchen: check out this video. he may look like he is sleeping. this washington, d.c. train operator actually texting on the job.

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and start reversing. (announcer) for a free trial offer, call 1-800-4-boniva. gretchen: welcome back, everyone. i guess we are going to take a look at a cartoon depiction of president obama and robert gibbs, his spokesperson in a

press conference. if you have the 2020 spectacle vision. >> the president says before we start the press conference, which one is the fox news guy and gibbs says the one not gen genuflecting. brian: that is probably major garrett. gretchen: which one is the fox news guy? the one with the follow-up question. brian: if he is allowed to have one. dave: the one you are not calling on. brian: the day before telling him you are not calling on. very funny cartoon. in the headlines, some californians think they can help solve the state's 26.3 billion-dollar budget crisis by watching this tv ad by the -- watch this tv ad by the marijuana policy project. watch. >> instead of being treated like criminals for using a substance safer than alcohol. we want to pay our fair share. taxes from california's marijuana industry could pay the salaries of 20,000 teachers.

isn't it time? brian: there you go. to legalize pot and balance your budget. the group hopes to legalize and tax the use of marijuana in an effort to help california's crippled economy. in fact, it's so bad in california the state has begun paying bills with iou's now some banks say they won't accept the iou's after friday. some of the banks are the very ones that received buildings in bailout money. they may pressure the banks to continue accepting the iou's up until october. gretchen: that's the cat calling the kettle black. house minority leader says trying to pass the buck on the economy isn't going to work. republican john boehner of ohio is complaining about vice president biden. claims the administration didn't know how bad economic conditions were. >> now, this is the greatest fabrication i have seen since i have been in congress. i have sat through those meetings they white house with the president and the vice president. now, trust me, there is not one person that sat in those rooms

that didn't know how serious our economic crisis was. gretchen: congressman boehner says despite the administration's point of view allowing people who spend their money instead of taxing it away from them will stimulate the economy faster than any government program. dave: all right, well, you can find apartments, buy and sell your stuff. but now a new warning about craigslist. police say scammers may be using the site to rip you off. julie van der was is here with the details. good morning, julie this is a scary story. >> people find couches and apartments on craigslist. you have got to be very careful because police say cyber thieves are finding their prey online by claiming they want to buy an item on craigslist. when they arrive to complete the deal, that's where the seller turns out to be the robber there are several craigslist corroboration as cases are being reported from state to state. the first three cases reported in philadelphia. and now craigslist related robberies have popped up in

texas, missouri, washington, d.c., washington state, ohio, indiana and north carolina. now, unlike ebay, guys, many items on craigslist, which you know, have separate pages and cities around the country. they aren't shipped. instead, they are picked up in person. sort of a local benefit to this whole thing. but one victim in philadelphia says that she had found a car for sale on the site and the seller offered to drive the victims to an auto tag story. according to that victim, the store turned out to be vacant and she was robbed at gunpoint. another reported victim found a computer sale and was basically told by the sell tore meet at a particular street when the victim arrived. he was ambushed at gun point. a third victim apparently agreed to meet at a home after finding a television on craigslist and, as you guessed it, the home turned out to be vacant and the victim was robbed of $800. even craigslist advises people never to respond to private homes. police say would-be buyers should take the warning on craigslist seriously. use common sense.

when you go to meet those potential sellers, obviously bring a friend. do it somewhere in public. you know what to document the majority of the cases obviously do not turn out this way fortunately. you have got to surf at your own risk these days. guys? dave: it's scary. you have got to have somebody bring a guy along or ladies if you are home alone make sure someone else is with you. this is a frightening thing. thanks, julie. brian: new jersey truck driver is shocked at $1,000 ticket he received. lopez was pulled over at a truck inspection point find for driving and not speaking english. you know him. lopez has been in the country illegally for seven years but hasn't had a problem with driving until now. now maryland state law says that if you drive a commercial vehicle. you have to be able to speak english. gretchen: all right. he was caught on youtube. this washington, d.c. train operator appears to be sleeping. check this out. look closely. but is he actually texting guess what he is driving the train.

train on particular control. prohibits texting on the job. the operator was given one week suspension without pay for the violation. the incident happened just a few days before that deadly crash in d.c. last month. gretchen: all right, brian, let's talk a little sports. brian: let's talk biking. a fraction of a second. that's how much time still separates 37-year-old lance armstrong from the tour de france leader fabian after stage 5. now 37-year-old armstrong looking for eighth tour victory. the race ends july 26th. now they head to the mountains which i hear is uphill. check out this defensive play by the mets murphy against the dodgers. they're using mits. they should be better now. very nice. answered is not an actual first baseman. seventh inning hot shot. very good for mr. murphy. donald trump likes it and he is still married to that woman which the whole thing -- that's

his daughter ivana is the other one. that's what's happening with the mets. they did -- more important they scored a run. dave: they did score a run. some of them are going to the all-star game if you can believe that so too are we. less than a week away from the major league baseball all-star game. i'll be in st. louis. you can catch the all-star game on july 149 at 8:00 eastern only fox. we will be there for the home run derby. behind the scenes look. i will get one. brian: jeerd will be in that game. gretchen: gearing up for next season's "american idol." auditions going on in orlando. thousands of people are lining up for their chance at stardom. david martin is live with all of the crowds. all right, david. let's be honest. you have heard anyone with a good voice yet? >> that's a tough question. no. yes. this is -- we are in orlando as you said. we are 20 miles northeast of

walt disney world at the amway arena in downtown, orlando. i'm kind of quiet right now because they are in the middle of the television show production. they have got crane cameras. they have got the producers on mega phones telling people to say you know this is "american idol" and screaming and shouting and whatnot. let me bring in somebody from your neck of the woods. statin island boy rob, how are you? >> good how are you? >> this is "fox & friends." what could you have around your neck. >> i have a keytar around my neck. >> is that the secret to winning that show. >> we will find out. >> you can't play that inside that building. >> what are you going to sing for the producers. >> i don't want to be. >> give a shot for america ♪ i don't want to be anything other than what i have been trying to be lately ♪ but all i have to do ♪ is think of me ♪ and i'll have peace of mind >> that sounds great. i take back my comment at the beginning of the shot here. that's a good voice, that's a great voice. he sings howl at the moon here in orlando every night. you are kind of a professional aren't you. >> i don't know about that bebb

but maybe a little bit. >> hopefully give you some edge there inside. not too hot. [cheers] >> there it is. step around for a moment. that's that classic shot you see at the beginning of the show in january. season 9, "american idol" in production right here in orlando. back to you guys in new york. gretchen: i thought all that applause was for you. brian: i thought so, too. of course david doesn't need a cue. i'm following ryan scree secrest on twitter. gretchen: name dropper. brian: 9,000 people at the amway arena. he just did a radio show. he said it's a huge crowd there. dave: every time you think this show is going to die out it comes back strong with another year. i am interested in the bloopers. what's the piano guitar. 1983. brian: you can bring an instrument. dave: you can? brian: absolutely. the guy who won chris played the guitar.

dave: is this a new rule? brian: i was keeping it from you. gretchen: i didn't think you could bring it in the audition. like had you auditioned you could bring your clarinet? brian: yes, but i can't sing at the same time. you don't want to be blowing into something and sing. you have to have a band. i'm sorry, simon, i don't sing, i blow. [ laughter ] dave: and there it is. brian: 19 minutes before the top of the hour. the first stimulus was supposed to create jobs. that didn't happen. now a second stimulus. karl rove is here. i follow him on twitter too. dave: does he follow you? brian: i'm not sure. gretchen: pentagon says no to a flyover for god and country rally. first in 42 years. we brought this story two days ago. a lot of people are still steamed. what is behind it? is it a move against christianity? you will find out. oof!

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with a full serving of vegetables, a full serving of fruit and antioxidants a, c and e. you get vegetable nutrition we all need but what you taste is the fruit. try new goji raspberry and passionfruit tangerine flavors. v8 v-fusion an easy, delicious way to get more vegetables. brand power. helping you buy better. gretchen: 45 minutes after the top of the hour. flyovers have ban highlight at the annual god and country festival in idaho since the event started back in 1967. for the first time in 42 years, the pentagon grounded the flyover citing the festival's christian nature this year. dave: patty sim is of the god and country festival's board. she is upset about the one that has denied this flyover.

she son the phone with us from wilder, idaho this morning. good morning to you, patty. >> good morning. dave: for the first time in over 40 years you have been denied this air force flyover at the god and country festival. why do you feel that they have denied you this opportunity. >> it's not a feeling. i was specifically told why. that's why we were denied. we were denied because when they looked up our web site, it showed a promotion of christianity. we are all about god and country. and our web site definitely promotes that we offer christian ministry booth and they felt that that was -- well, basically what that gentleman told me on the phone when i called him back after i received the denial was, ma'am, it would be a great event. in fact, i personally would love to come if i could, but unfortunately because your main focus appears to be a christian event, we can't support a

flyover. gretchen: patti, there is a couple issues. have you been doing this 42 years you have always been a christian event. >> absolutely. gretchen: nothing changed there. >>. no. gretchen: you are also honoring the troops at this event. it's not strictfully 100% about christianity. one might ask this question. what has changed between the last 41 years and this year? >> you know, i don't really know. you know, we actually really tried to do the paperwork correctly. you know, we submitted to the f.a.a. they gave us approval. we pushed this forward and that's part of the reason why i called. we -- there should not have been a reason. and, in fact, i actually got a call yesterday from a gal who is a public affairs office on an air force base. she said i just want you to know that you should not have been turned down, that really truly there was no reason.

she cited me the regulations and she said if it is open to the public, if it is in honor of a military event within seven days of a -- she said there is no reason that it should have been turned down. dave: we should read a quote from the pentagon denial email. dave: this seems to go into the heart of the matter separation of church and state. why are you not ok with their final decision? >> well, i mean, ok. so if it's any special interest group, would we eliminate any of our football teams? because obviously that's going to benefit them and i guess getting back to the true point is we didn't ask for the flyover because we are a christian event. we asked for the flyover because we are god and country and have been so since the inception.

we have a huge military -- gretchen: this was in honor of the military. the last time i checked we have god on our money, still. and some people might ask that there has been a change in the way that we handle these political corrective things in our society. but, patti, keep on doing the fight. i have a feeling you might get that flyover next year. >> that's our hope. dave: good luck to you, pattie. >> thank you. dave: 16 patients, 8 transplants and successful domino kidney swap. we talk to one of the donors and one of the recipients next. gretchen: first your day in history on july 9, 1846 the navy told the citizens of pacific coast down that they were now americans. from there the town changed his name to san francisco. in 2002 was boos from the fan for baseball all-star game ended in 7-7 tie. on this date in 19 2 number one on the charts "don't you want me

baby" by the human league ♪ i still love you ♪ but now i think it's time ♪ i lived my life on my own. . . %%%%%%%%%%%%%%%%

gretchen: tom hanks is the answer to the aflac trivia question of the day. >> six kidney transplants and six or's all at the same time. pair matching kidney donations. six people donate kidneys to total strangers, six people get kidneys from total strangers, 12 people walk away happy. >> the domino surgery. >> that makes for great tv drama, but the fact that it happened in real life is even better. the first successful 16-patient kidney swap was just completed,

eight donors from six different states. the largest chain of donations in history. lisa brinkman and her husband, bob, were two links in that surgery. >> good morning. gretchen: bob, you found out recently that you were sick, that your kidneys were not going to function on their own. your wife was not a suitable donor for you. pick up the story for me. >> we had gone to johns hopkins, this is one of the leaders, and applied and gotten in their paired kidney exchange program where lisa's kidney would go to someone, and i would get a paired kidney. gretchen: lisa, you gave your kidney to somebody else in this chain of donations, so your kidney is now in a man in detroit, right? >> it is.

it is. it's very unusual. my kidney was one of the first ones that went to detroit, they just started working with them, but according to my surgeon, he's doing great, so it was very worthwhile. gretchen: you both look amazing. let me turn to dr. montgomery. what an amazing feat. is this the brain child of the doctors at st. johns? >> we're in the midst of a crisis in organ transplantation. we've got 80,000 people that are waiting for kidneys, and only about a fifth of them will be transplanted this year, so people are waiting five years for a kidney transplant. about a third of the donors, the live donors, who want to give a kidney to their loved one are unable to do so because of incompatibilities, so this is --

the domino transplant is a way of getting more of those people transplanted and expanding the number of patients who could be transplanted every year by as much as 1,500. gretchen: it's amazing because everyone is aware of the crisis of being able to find an organ that's compatible. bob, you said almost instantaneously when you woke up from surgery, you felt better? >> that's right. the last couple of years as i had gone through kidney failure and then switched to dialysis, once i got on dialysis, i felt better, but there was something a little off, your stomach was off, there was fatigue, and i woke up the next morning, and it was gone. i hadn't felt that good in two years even though i had

abdominal surgery. it was just truly amazing. gretchen: lisa, you must feel like you gave somebody a shot at life, and somebody gave your husband a shot at life, and doctor, hats off to you for putting this all together. thank you for being my guests. >> thank you. gretchen: president obama has already taxed us to the hills some say, and now some say he wants to tax us to pay for his health care reform. karl rove says the president can't be trusted with his numbers and his math skills. when students' lives are at stake should teachers follow their instincts or follow the rules? [ female announcer ] does your dishwasher suffer

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from? north korea. again, and the state department and the pentagon were targeted. how worried should we be? karl rove is going to weigh in on that. dave: and recovery.gov, that's the web site to track how the stimulus money is being spent, and now you can track even more of it because the government is actually spending $18 million to revamp the very web site. brian: how the mighty have fallen, ruth madoff trading in her penthouse. we'll show you the very tiny digs she's checking out now. our slogan comes from delores in ohio. early to bed, early to rise, turn on "fox & friends" as soon as i open my eyes. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- >> this is paula deen, and you all are watching "fox & friends," the news machine. gretchen: thank you very much, dave briggs in for steve doocy, welcome for our final hours. we have a "fox news alert,"

president obama meeting with world leaders in italy for day two of the g-8 summit. he met with brazil's president who gave president obama a soccer jersey signed by brazil's national team. the two discussed brazil's influence with iran to change its nuclear policy. the leaders wrapped up a working lunch where they were set to discuss the global recession and trade, and yesterday they talked about climate change, and the leaders agreed to a nonbinding goal to reduce green house emissions by 50% by 2050, but guess who didn't commit? india and china. did the organizations getting federal bailout money including the banks and states misspend those billions? some are saying yes, but the head of the panel that oversees the spending says there is a problem. earlier on our show she said guess what? we didn't give them any rules to follow. >> when this money was handed out last october and november, it was handed out largely on a

no strings attached basis. here, take the money, we said to the banks. and so the whole notion of whether or not they've misspent it is a pretty tough one here. gretchen: warren says whether the banks and auto companies make any money out of this is not important. she says what's important is whether ordinary consumers get back on their feet and start spending again. officers seized at least 350 dogs and arrested two dozen people in what's being called the largest dogfighting crackdown ever in u.s. history. 26 people facing charges of animal cruelty including denying medical treatment and shooting dogs in the head when they didn't fight well. dogfighting is a felony in all 50 states. new developments in the shooting death of steve mcnair. this dash cam video shot two days before he was killed shows his girlfriend sahel kazemi.

police are confirming she shot him four times before turning the gun on herself. mcnair's girlfriend may have suspected that he was seeing actually another woman. they also say she was becoming increasingly upset over her financial situation. malia obama seems to have a message for world leaders. get rid of world weapons, at least observe peace. his oldest daughter wore this t-shirt while touring rome. it shows the campaign for nuclear disarmament symbol known as the peace symbol, it's wildly used as an antiwar protest symbol. those are your headlines. brian: we'll see if that works. karl rove is one of our favorite people. he is with us, and, karl, i had no idea you were going to be there when i said that. today you have that column in the "wall street journal" talking about can we believe the numbers that barack obama's administration puts out, but

let's first talk about first stimulus. is it working? shall we have a second? >> well, it's not working. in fact, my column talks about that this morning. they promised us that it would lead immediately to the creation of jobs and economic growth, that it would jump-start the economy. that's not happened. the unemployment rate is 20% higher than the obama administration said it would be at this point in the stimulus program was put in place, in fact, the unemployment rate is higher today than what they said in february it would be if we did nothing. my former colleague keith hennessey pointed this out on his blog. think about that. the unemployment rate is higher than what the administration forecasted would happen if we did nothing, and part of the reason is because it's so badly designed. it is not designed, it was not designed to get the economy going, the $279 billion that was appropriated for federal agencies, only $56 billion of that has even been paid out. that doesn't even mean it's been spent. it may be sitting in someone

else's bank account, and we ought to be cautious about giving the guys who gave us this turkey the opportunity to give us another. dave: plenty of democrats are against it including claire mccaskill and harry reid, but only roughly 10% has been spent. how do you argue that we haven't spent enough of the money to judge it and then on the other hand talk about a second stimulus? what they really need is a do-over, isn't it? >> well, look, this was poorly designed. when you design a program as badly as this one is, you can't rescue it here. look, this has money in there for obesity counselors and smoking cessation counselors. i don't know too many unemployed smoking cessation counselors. only 5% is for infrastructure. i know a lot of people in construction are out of work, but this program only had 5% aimed at that, 95% aimed at something else.

the problem is today. less money will be spent in this fiscal year than will be spent between october 1 of 2011 and september 30th of 2019, there will be more money spent then. the house republicans put forward a comprehensive plan that was actually much, much better, they used a model of the obama white house, and using the obama's white house own model the republican house program costs less than half as much and generated jobs much more quickly and generated 50% more jobs, and we should have gone that direction which was aimed at stimulating the economy rather than growing the government which is what we've got here. gretchen: next on the plate, karl, is health care reform, so now based with this stimulus money debacle some argue should we trust the number crunching of this administration when it comes to health care? >> well, i think it's even more fundamental than number crunching. my point today was they

deliberately misled the american people with promises of results they never intended to keep, so when they sit there and say we're going to have $2 trillion worth of savings from health care groups which we can't tell you what they are or how they're going to be achieved and everybody says they're skeptical, and when they say $80 billion worth of savings with the pharmaceutical companies with similar skepticism by the pharmaceutical companies, and yesterday's announcement $150 billion savings from hospitals, and incidentally, health care reform will pay for it. we should be very skeptical. they have made promises which they had no intention of keeping. they promised results which they knew were unattainable. gretchen: one of the concerns that taxpayers may have is they're talking about taxing the health care benefits of individuals in america, but what i found interesting is a lot of the democratic senators say

they're not going to go along with that. >> there's a reason why. this has to do with where you put a cap on the tax deductability to companies of their health care plans for employees, and there's a case to be made for this that you ought to limit the deductability. we do it for homes, for example. you begin to lose your interest deduction when the value of your mortgage is i think $1 million or more, and this question is should we have a similar cap on health care plans, but what has happened is unions have gotten gold plated health care plans on behalf of their employees, so they tend to be the people that have the $20,000 health insurance plan when the average plan is $12,000, and the question is should you do something about that, but, again, they told us during the campaign we're never going to tax anybody that makes less than $250,000, and they attacked john mccain for proposing this during the campaign, and now they turn around and follow it. brian: the last subject here before we move on and talk about a recent poll which i know

you'll find interesting and heartening is the fact that he's having problems with his left wing. moveon.org doesn't like the fact that some of the things he's proposing about not having a public alternative or national health care plan, putting it in the wings for not might not be in this package. you predicted that. >> yeah, look, rahm emanuel went out on monday and said the so called public option which is a government-run health plan which would squash private insurance in america, that's negotiable, we're interested in how do we keep insurance companies honest. literally moveon.org threw a hissy fit and from moscow president obama breaks away from his meetings with the russians in order to issue a statement setting the record straight and slapping down his chief of staff rahm emanuel. it was a long distance slapdown showing the power of these left-wingers inside the democratic apparatus inside the white house. dave: we've got to ask you about

this surprising poll from gallop. it shows more americans are becoming more conservative than they are becoming more liberal, possibly because of some of the policies we've talked about this morning. could it suggest that the country voted for a person more so than they voted for his policies? >> i think it does, but i want to give you a cautionary note. i was watching when you said ugly things about my man kilmeade's basketball skills. you're a guest. don't be dis'ing kilmeade. show a little respect. gretchen: speaking is of slapdown. that's a rove slapdown. >> you were starting to look like clayton on saturdays and sundays. dave: you mean to suggest he can dunk? brian: maybe. >> when people have challenges like that, don't draw attention, be kind, man, show a little compassion for kilmeade. he's a really good guy. he likes you. treat him with respect.

brian: karl, this is a man who replaced my cuff links. he knew i was a man that went french were the cuffs, and he stepped up big time. thank you very much, karl. you're still wearing them. dave: so much chemistry. brian: and because of that we're going to tell the person in the b block, they're now canceled. dave: i'm not laying off of him. maybe you and i should play some hoops. what do you think? gretchen: that's after karl and i enjoy our swedish buffet. karl, stick around, we want to talk about these spy attacks. how vulnerable are we? brian: should california legalize marijuana? and collect tax on it? want to squeeze more out of the things you buy?

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dave: we're back now with karl rove, and before he decided to defend little brian over here we talked about a poll, and it shows more americans are becoming more conservative than liberal. it's one of two things. either they're getting tired of these policies for president obama or they voted for a person in november and not necessarily his policies. what do you think? >> i think both. i think during the campaign barack obama smartly ran as a centrist emphasizing fiscal conservatism and constraint. he called government run health care extreme with one of his biggest buys of television advertising, so he ran as something he turns out not to

be. some people voted for him because they thought his was an historic figure who was more centrist than he's turned out to be, and people's reaction to this rising river of debt and the expansion of government power and all these czars and his foreign policy views are causing people to become somewhat more conservative. it was a pretty interesting -- between january and may the american people became significantly more conservative in their views, and those that were conservative felt much more strongly about -- felt they were becoming more strong in their views by a pretty hefty margin. gretchen: what was important was even moderates determined now that they will lean more to the right, so here's a look at those numbers. more conservative, 33%, more liberal 18%, it's interesting to

see that because people thought you ywould never see that. >> that's a very smart insight. what matters even more than this conservatives feeling more conservative is that moderates are drifting away from him, and you're seeing in individual polls where independents and self-described moderates are becoming more opposed to the obama policies over time, and if i were in the white house, i'd be troubled about that. brian: something disturbing happened over the weekend, and it's actually happened. north korea shows they can infiltrate our computers with cyber attacks. south korea and the u.s. were hit over the weekend by north korea. did you think they were capable of this, and what's been going on that we're that vulnerable? >> these kind of attack goes on all the time. this is a pretty -- this is a denial of service attack where they attempt to overwhelm the

public web sites of agencies, in this instance they overwhelmed the federal trade commission and the treasury department. you can defend against thee things. what's even more disturbing is that the cyber attacks that are underneath the surface that are more difficult to detect which are designed to figure out the weaknesses in our government's internet connections and to get secret information or confidential information out of those web sites, and those are more dangerous and more difficult, but the united states of america's government computer systems are under attack virtually all the time, particularly our defense and national security and national intelligence. brian: these are the times that you wish al gore didn't invent it. >> if you need help with snarky digs, just let me know. brian: 1-800-rove. i've got you on my speed dial.

gretchen: teachers are responsible for their students, but what if those students are too afraid to break the rules? should they go by the book or not? dave: down sizing from riches to not quite rags, but ruth madoff is trading in her penthouse for much smaller digs. unlock a supreme seafood experience with yellowfin

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gretchen: 23 minutes after the top of the hour. dave, i guess i'm going to do a couple of quick headlines first. the countdown is ticking at the space center in florida. nasa will attempt to launch endeavour for the third time. liftoff scheduled for 7:39 eastern. take a look at this.

a 14-year-old's joyride crash with his dad's car. thankfully he and his 12-year-old cousin who was in the car with him, they weren't hurt, but the boys say they were just going out for ice cream, but when police saw them making an illegal turn coming out of dairy queen, the chase was on. speeds up to 110 miles an hour. the boys confession? i panicked. dave: yesterday we introduced you to a teacher who was allegedly fired for calling the cops and reporting a student's hit list, so what should teachers do when they want to report a problem like that at school? and they think the administrators aren't actually doing enough. joining me this morning, derek randall, and randall collins is the former president of the american association of school administrators, and he's a current school superintendent. good morning to both of you. >> good morning, dave. >> good morning, dave. dave: we will start with you. what is the current climate out there in our schools?

are teachers afraid to report things going on in their schools and why? >> unfortunately they are because they're not getting the support from the administrators. being an administrator is a very tough job. they walk a fine line, but that's no excuse for them shooting the messenger like they did with that lady yesterday. the teachers -- dave: apparently we have lost derek, so we will go right to randall collins. randall, are you still with thus morning? >> i am. dave: are you suggesting that teachers are afraid to report things because like we showed yesterday, a woman claimed she was fired for releasing what was called a hit list. is this an institutional problem? >> no, absolutely not. the clip that i saw yesterday was perplexing at best because if i recall correctly, and i can't speak specifically to the case, she said she reported it on may 29th and was fired on june 18th.

that just doesn't happen in the world that i know. i've been a superintendent for three decades and traveled extensively around the country, and i've yet to see a case that was depicted as yesterday on fox news. dave: so what should the teachers do? if they see any sign of bullying derek suggests some of them go straight to the police. you say this is not a good solution. why? >> i didn't say that wasn't a good solution. the yesterday yesterday was not bullying per se, it was a hit list. what teachers or any employee should do is if they get information that is putting the staff or the students in danger is they should report it immediately to their principal or their supervisor. dave: my point is if he don't do anything, then what? >> well, if they don't do anything then of course the administration can't follow through and investigate the claim and god forbid if something happened to injure one of the students or staff members. dave: ok, randall collins, we appreciate you joining us this

morning, sorry we lost derek randall for the other side of the debate. a "fox news alert" now, the weekly jobless numbers will be out in a matter of minutes. we'll bring you those as soon as possible we get them. plus the budding debate as you might call it. can a marijuana tax help pull the state of california out of a budget free-fall? and move over michael jordan. check out this pooch.

gretchen: half past the hour, and we want to bring you some headlines. the final resting place for michael jackson remains a misstry this morning. there are reports that three of his brothers want jackson buried at neverland, but his mom is against that idea. and we all know that dr. klein has been questioned about prescribi prescribing diprivan. police are questioning klein over the possibility that he fathered jackson's two oldest children. a hearing set for who will get guardianship, right now, katherine taking care of those

kids. brian: some military families feel the death of michael jackson is overshadowing the military. this man's death got zero coverage. we talked to his aunt earlier on our show. >> i just wanted to say that it's called military service for a reason. they serve us. and for us to let that service go unnoticed is wrong. brian: a recent pew research poll says 64% of americans say coverage of michael jackson was too excessive. dave: the labor department just releasing the new weekly jobless numbers, and they are down significantly. new unemployment claims last week were 565,000, 40,000 less than expected, good news. right now 6.88 million americans

are out of work. gretchen: half of all americans believe that bottled water is safer than tap water. cities and town have to show their water is safe. bottlers don't. the committee has asked 13 companies to show where their water comes from and what safety measures they are using. dave. dave: move over lassie. this border collie is more than just man's best friend. his owners say he's a genius. cowboy can actually play hoops, open fences, pick up tools, and even open fences. he went to work with his owner on a construction site where he helped retrieve tools. his owners say the dog was given to him as a gift, and that he was never actually trained to do these amazing things. brian, what's going on in sports? brian: first off if you're doing steroids and playing baseball, you can be in a lot more trouble than you think. the world antidoping agency urging major league baseball to adopt tougher penalties for

players who cheat. wada saying they want baseball to implement rules of a two-year suspension when you do something like manny ramirez and get tested to be taking steroids or masking agents. there's even a lifetime ban for a second offense. no comment from the commissioner. he was our guest, and now he's in trouble. lenny dykstra declaring bankruptcy. a federal court says he's more than $31 million in debt. he owns a jet and a rolls royce. at least two dozen lawsuits over his business and financial dealings have been filed. lenny's in some trouble, but confident he can get out of it. and watch this from his ex-team. daniel murphy against the dodgers. watch this toss. behind the back.

murphy with a nice toss blindly behind the back there. donald trump loves it, tells his wife you're not fired. joe torre's dodgers's best record in major league baseball. he has no interest in going over to yankee stadium and seeing the new place. gretchen: really. a little pk by donald truck there. brian: he likes to go to baseball games. gretchen: let's talk about that web site that you were supposed to go to as a taxpayer called recovery.gov. it's getting a face lift already even though i don't think it was giving you all the details just yet with the first edition. $18 million is going to to web site to make it better, flashier, more colorful. dave: this is the web site that was supposed to give transparency to the whole stimulus situation. a web site joe biden has been responsible for, a web site joe biden could not exactly recall when asked about it.

>> by the way, do you know the web site? >> you know, i'm embarrassed. do you know the web site number? i should have it in front of me, and i don't. i'm actually embarrassed. >> i'm going to call your office. >> it is recovery.gov. dave: and it's web site address, not web site number, to be picky, but $18 million spent on this, and half of that $18 million won't be spent up until the latter years, all the way up through 2014 at which point we hope the recovery is well finished. so it seems like a big waste of money once again. brian: spending money, so we find out where our money is going that we don't have. congratulations to this company in maryland. they have a gig until 2014. let's talk about ruth madoff. she's going to need a job soon. he has to scale down by selling her montauk mansion and her

penthouse in manhattan and cut a deal where she doesn't get tr prosecuted. gretchen: she's been looking for one bedroom apartments. that's what she had, and now she might be looking for 400 square feet. you decide where you are on this. do you think she knew about the ponzi scheme, and if so then maybe she deserves some of the scrutiny that she's facing here. if she didn't know anything about it, should she? dave: i'm sure she's not thrilled going from a $7 million pad to a $400,000 pad. would you want her in your building? some people don't want her in there. you've got co-op boards here in new york. i can understand why people

wouldn't want her in their building because paparazzi is going to be staked out. i'm surprised she goes to new york. get out of here. go join the uighurs in palau. gretchen: you're so harsh, dave. dave: she was the bookkeeper for this man for years and years. gretchen: the government doesn't feel like they're going to prosecute her. dave: i'm not saying they have evidence. gretchen: we don't know, so i'm not going to send her over to the uighurs. dave: you can understand why people are angry. bernie madoff will not appeal his 150 year jail sentence. he knows either way even if it was reduced he would still spend the rest of his life behind bars. brian: let's take a time-out. the party's not yet over. it looks like there's still momentum brewing for tea parties across the country. michelle malkin is going to be here live. gretchen: should california

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they even take care of the paperwork, file your claims and send you a free meter. call right now and they'll also send you a free diabetic cookbook. diabetes doesn't have to slow you down. join me and over a million people who trust liberty medical. brian: your animal update. a debate over who the most famous polar bear is, it's knut. he was born in berlin in that zoo, and another german zoo says knut's father belonged to them, and they should also own his offspring. the two zoos fought a legal battle. today it's settled.

the berlin zoo will pay $600,000 to keep knut. you may remember him from his modeling days when he was just a baby. back here in the states, it's a panda birthday party. tai shan is celebrating his fourth birthday made of water, bamboo, shredded beets, and beet juice. gretchen: a second wave of tea parties. check out this video. it swept the nation on the fourth of july. in dallas 37,000 people rallied to protest big government and celebrate america. dave: now that the tea party movement is gaining steam, who will they do next? michelle malkin was down at that tea party in dallas. that was a huge turnout. how successful was it? >> it was hugely successful.

in dallas they do things big, and as you mentioned there were 37,000 people there over the course of eight or nine hours. it was hot. and it wasn't just the temperature that was hot. there are grass roots activists across the country that were motivated by things like the porkulous bill and now there's talk of another one, all of these bailouts, and i think one of the messages, at least from dallas and from many of these tea parties across the country is this is not a partisan thing. there are many clueless tea party bashers on cable tv that have no idea what is motivating these people. this is a movement that is bound by people who truly believe that we should have people in washington who practice fiscal responsibility and personal responsibility and who believe in the sovereignty of this country. and of course they are continuing to do their work out of the spotlight, they're not in the headlines, but they're organizing at the very micro

level, they're gathering email addresses, getting people involved in politics for the first time, and at the national level there are two things they're focussing on. the next big wave is happening on july 17th when a lot of these grass roots gather at congressional offices around the company to protest the cap and trade monstrosity. gretchen: it's interesting they were dis'd the first time around, on most mainstream media outlets, but on this new poll that we're seeing today, michelle, and i don't know if you've had a chance to see it, this gallup poll, there seems to be a movement in the tea party direction where people are thinking of themselves as more conservative, and especially moderates seem to be moving in that direction. >> yeah, that's right. i blogged about the gallup poll a couple of days ago. more people are identifying with conservative causes and the conservative agenda, and i think

there is a backlash against the excessive and reckless spending that's going on in washington. and as i say, this is not just about protesting against the white house and obama and the democrats. in fact, at many of these tea parties over the last couple of months and on july 4th what you saw were grass roots activists booing a lot of these republicans who themselves have forgotten where they came from and what they supposedly stood for. in austin john cornyn who is very good on many issues, but who voted on tarp, for example, he was greeted by boos and reminders that he had voted for that bailout that basically let the floodgates open, and i think that the grass roots motivation that started all of this -- and remember this started in february. it was before it was even called a tea party, the first tax revolts that came days before the first porkulous bill was

signed. people have not forgotten, and that message has to get to washington. dave: with 1,500 cities hosting tea parties where do you go next? >> well, grass root activists will be protesting cap and trade and health care, but the second stimulus is going to motivate people to get up and out of their seats and get active, and i think that's a good thing. you would think that a lot of people who are bashing this would cheer the fact that people believe in deliberative democracy. when you've got steny hoyer laughing at the prospect of somebody questions them whether they're going to read bills before they pass them, that's a good thing that people are getting involved in the process and making transparency as fiscal responsibility something that belongs at the top of the agenda. gretchen: michelle malkin, thanks for sharing your thoughts on the july fourth tea parties and where they go from here. we'll see you again soon.

>> take care. dave: how to dig california out of an enormous debt. here's one idea. tax marijuana. good move or should it go up in smoke? a fair and balanced debate next. gretchen: let's check in with hemmer. bill: good morning to you. coming up in 12 minutes, stuart varney is going to measure the strength of the economy. how does a homemade bomb make it past security guards in federal buildings? why is a baby put through a x-ray machine. joe lieberman is here live. want to take years off your life? and meet a man who has 130 pet pythons. see you at the top of the hour. taking its rightful place

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>> we're marijuana consumers. instead of being treated like

criminals, we want to pay our fair share. taxes from california's marijuana industry could pay the industry of 20,000 teachers. brian: sounds reasonable. that was part of a tv ad paid for by the marijuana policy project. the group wants to legalize pot in california and tax it and help get the state through its enormous debt and deficit. good idea or up in smoke? dan is with the marijuana policy penalty and john represents california's peace officer's association. dan, how do you feel about this? >> well, obviously marijuana prohibition has failed for 70 years. we're throwing away money on this problem, and we're giving the process to drug car tells, and they're not even being taxed. brian: how much money do you think you can make by taxing pot and legalizing it?

>> over $1 billion. brian: you could use $1 billion in california, don't you think? >> yes, except that's not true. it would be a $50 surcharge. you'll go to a store, you'll pay street price plus $50. you'll do that once, and then you'll find out well, gee, i can go to john, the dope dealer down the street, and he'll only charge me street, so people will not be buying from the lawful markets, instead it's going to drive the black market, and you won't have the revenues that you expect, and the larger question is look, we have enough social problems already created by alcohol, by illicit use of pharmaceuticals, and by tobacco, which like marijuana. why do we want to add yet another product to the array of

products that harm people? brian: that's the point. why not just legalize pot? >> we already have marijuana on the market. it's unregulated. we don't know how to deal with it. we've been through this before with alcohol prohibition, and in fact we saw that liquor went up 700% under prohibition, so i'm not really sure that we're going to see a problem with prices, but the fact is we have a reality with marijuana. we are trying to ignore it. brian: isn't it true that a lot of these states have gambling, and we're still offering lotters in states. >> that's a very good point. just like mare juijuana, the lotteries have not raised the moneys that the states were hoping for and have created corresponding social problems. you will have the same thing if

you make marijuana available to anyone at any time. the social problems created by the drug will far exceed any speculative revenues that are raised. brian: dan and john, thanks so much for this debate. i know arnold schwarzenegger wants to close the budget, and even though he's caught on camera smoking pot, he says i am not in favor of legalizing it in my state. thanks, guys. i'll take that as a thank you. straight ahead if they don't legalize pot we're going to talk about a reality show in california where you can see the budget process actually being hatched. is that something you would watch? the real world sacramento. what happens when politicians stop arguing and start acting. more on that in two minutes. .

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reality show here are some of the ideas that we came up with. survivor-california. brian: nobody is getting any work done, so if the cameras are on, maybe they would start to work. >> the amazing disgrace. the california edition. gretchen: they should be able to do this without having cameras in front of them. shouldn't they have personal responsibility? brian: i find c-span reading, so we should do that. [laughter] the all-american summer concert series will continue. series will continue.