gretchen: and join us for the after the show show. have a fabulous thursday. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- bill: this is a fox news alert. new weekly jobless numbers, and they raise questions about the stimulus efforts now underway. 500 to 2000 americans seeking first-time unemployment benefits. -- 560,000 americans seeking first-time unemployment benefits. that is good news because investors were expecting more. good morning, everybody. megyn: good morning. the unemployment rate stands at 9.8%, but not only counts those who are collecting unemployment checks, not the hundreds of

thousands, if not millions, that have dropped from that roster and have stopped looking for work. bill: stu varney is here to tell us why this has become the national debate. analyzed the data. >> the march towards the 10% unemployment is on track. the number of people filing for unemployment was a bit lower than expected, but the big picture is this -- 10% unemployment very soon. well over a half million people every week are making that first trip to the unemployment offices to claim their benefits. that was last week, a shortened holiday week. as you point help, 6,833,000 people are receiving benefits. by the way, that number changes when people change the eligibility of employment, but

that number is still rising. so we have a record number of people receiving the benefits. 10% unemployment, here we come. we are not supposed to be here right now with the stimulus plan in place. bill: i imagine the discussion is getting a lot of heat. we cannot say that we are at a bottom now. >> no, if you are grasping at straws, you can say that the numbers are less bad than we thought they would be, but they are still that. -- bad. how can you say we are near a bottom when we have over half a million people making that trip to the unemployment office? bill: joe biden has said that public opinion is starting to turn around. >> i believe president obama has

dropped 14. in approval ratings in ohio in the last two months, and jobs is the reason. jon: thank you. megyn: -- bill: thank you. megyn: questions over whether political payback is in play. "usa today" reporting of the $70 billion doled out, so far counties that supported candidate obama have received $69 per person. compare that to the county's of people who voted for john mccain, getting $34 per person. blue america seems to be getting double the stimulus dough. the white house denies any deliberate action here. you can be sure there will be more questions about this report.

bill: we have the price tag from michael jackson's memorial service. the city of los angeles pay $1.4 million. nearly all of them go into overtime to police officers to secure all of the areas in the city. they receive private donations through a website but the website kept on crashing. there were about 1000 people outside of the arena but they were expecting about tens of thousands. megyn: democratic leaders in congress are confident health care reform is intact, but there is a split over how to pay for the plan. now there is support for a tax

on health benefits, but it could be in the operating. so what is the problem? what is wrong with tax and employer-provided employer benefits? >> the problem is is an additional tax on working americans. anyone who in place people and provide health care would have to pay more. everyone would get hit, but it would also still an enormous hole in funding health care reform. megyn: they have decided that is not politically palatable. we are talking about maybe $1 trillion. they have to pay for it somehow. >> some are talking about only raising benefits over a certain amount. instead of tax benefits, some are -- instead of taxing health

benefits, some are considering raising the income tax. some say they should also cut medicaid benefits and to insure fewer people as part of the plan. megyn: the problem is, the unions have sweetheart plants, and they are a key constituent for the democrats. suddenly, democrats on the hill said, everyone but the unions, which has been rather controversial. now they are targeting the so- called rich by saying, we've attached an additional income tax. once again, that puts small business owners in the cross hairs, the people we depend on for jobs. >> that is pretty much what has been happening on capitol hill for the past few days. politically, it is easier to

raise taxes on people raising $250,000 a year or more, first of all, because it was promised in the campaign, and you are not going against the people who supported you. megyn: it has already been done. they were already facing increases. the question now is if there is an additional 2% on top of those numbers. thank you. bill: you wonder how tough it is to get anything done in washington, especially with the economy the way it is. especially when you do not read anything. anything that looks like it will cost you more money is having a hard time going through. megyn: he cannot have his plan until he taxes people. business owners would then be in a tough position.

that is when the obama administration is reaching out to the hospitals, executives, and others, saying that you need to find cost savings. bill: i want to show you some video tape from florida. the population of burmese pythons is exploding. they say 150,000 and growing in that state alone. the snake defenders are fighting back. and there is this -- >> in all the years that i have heard the gao reports, that is the broadest indictment of the agency in the federal government. megyn: senator lieberman not happy about this story. remember this? a security breach fallout.

what happens now? senator lieberman is not happy. he is with us after the break.

bill: we have another wrinkle from california where the nation's biggest banks do not want their ious. citigroup and other banks telling the state that tomorrow is the last day they will except them. california issuing $3 billion in ious.

this is certainly going to put more pressure on governor schwarzenegger and lawmakers as they try to figure out how to close the deficit. they were hoping the ious, carrying a 3.7% interest rate, payable august 2 would buy them more time. megyn: it was shocking video scenes around the world. -- seen around the world. >> i told you you are under arrest. >> ok. >> you are under arrest. megyn: a police officer in oklahoma choking a paramedic against his own ambulance after a traffic stop those that. inside the ambulance there is a patient needing to get to the hospital.

it was her son who filmed this. now we get a new perspective on what happened. fox news has tracked down the woman inside the ambulance when this went down. we are learning new details about officers and paramedic. brian wilson has been working on this story. this is part of our know where to hide series. good morning. >> we are at oklahoma highway patrol headquarters. they have not yet decided what they will do with the trooper. for the first time, the family of the patient in the ambulance had spoken to us, and they have some ideas. >> by now, you have seen the video.

and the cell phone video that shows the struggle between the trooper daniel martin and a paramedic. lost in the discussion is the fact that there was an elderly heart patient and ambulance that day. she can be heard screaming in the ambulance. that woman was stella jordan, who these days is a very fragile and nervous individual. she would not talk to us on camera, but her sister remembers how upset she was. >> it was to the point where she was just screaming and she was getting exhausted. i just held her and said it would be all right. i just started to pray, and i said, please let her be all right. >> the final report on the incident has been sitting on the desk of the chief of police

four weeks, leading many to wonder when this matter will be determined. they say it takes time for complicated personnel issues to work out. >> there is absolutely something happening. there are state laws that says that we cannot really talk about what we are doing. we have to protect state employee rights. >> after the incident, after the patient was delivered safely, the trooper offered an apology to the family for his behavior. they believe more needs to be done. >> they need to take his badge and gun because the next person may not be as fortunate. >> since we were last in oklahoma, it is reported that the paramedic was fired from a previous job for unprofessional behavior. the trooper was reprimanded and later fired from another police

department in fairfax, oklahoma. they did not give any details but said that it was in the best interest of the department. megyn: so right now this case is under review. refresh our memory, what was wrong with the patient in the first place? >> she had passed out and her blood pressure was through the roof. during that incident, she actually passed and again. -- out again. megyn: think you so much, brian. bill: a fourth of july fireworks display turned into a horror show. have you seen this? a pedestrian bridge collapses as the festivities begin. now fingers are pointing.

we will hear who is blaming whom. megyn: and when officials checked security at federal buildings, among the things that they found was this security guard, supposedly on the jump, but this week, thanks to prescription medications. that is just the beginning. you have questions. who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions. morgan stanley smith barney. a new wealth management firm with over 130 years of experience.

megyn: the victims of a pedestrian crash -- pedestrian bridge crashed in indiana are blaming the police. the bridge collapsed after a fireworks show. they just on the lawsuit saying that the bridge was overcrowded, and claimed officers at both sides of the bridge failed to allow too many people from being on the bridge at one time. bill: if you watched yesterday, you saw the news about breaches of security buildings. investigators from the government accountability office reporting they were able to smuggle a bomb components through checkpoints, undetected, and 10 times. the perfect tan for 10 -- ten for 10.

neighbor also able to -- they were also able to walk around the buildings with the bombs. one security guard was asleep. another was looking at pornography. the people in charge of protecting these buildings is the federal protective service. they had some explaining to do yesterday at a senate hearing. >> when we received the gao report, it cost us great concern. we have all worked very hard and we are taken aback on receipt of this disturbing news. we knew we had challenges ahead of, and coincidentally, we have initiated corrective actions to address these shortcomings. bill: joe lieberman was at the hearings. he is my guest this morning. welcome back. this is not cool. what are we going to do about

this? >> you are right, it is not cool. it was john dropping, infuriating. the federal protective service agency, which employs 50,000 security guards to protect 9000 federal buildings across the country, in which hundreds of thousands of federal employees work, and millions of americans visit, it is a sick -- is a sick agency. they need some help. what are we going to do? we put the agency on our high risk list. we are asking for a monthly meetings. we are asking the secretary of homeland security to get personally involved. they need more money, but frankly, until we see that the

agency is better managed, we are not going to give them money, because it would be wasted. bill: do you feel safe when you walk into a federal building, after seeing this? >> i did, until this investigation. let us say the obvious. post-9/11. islamic terrorists planning on how to attack us again, not only to kill people, but to achieve maximum psychological impact. federal buildings are a natural target. the pentagon was hit on 9/11. we believe they were trying to go after the capital were white house. this is unacceptable. -- or white house.

bill: you mention the money in the first answer. some have argued that they need more money, more manpower. in this case, it appears that neighbor just not doing their job. >> if i felt it was money alone that would do it, i would be fighting for that. i think this is an agency that has been terribly managed. to carry the guards have not been adequately trained. -- security guards have not been adequately trained. some of them have domestic abuse in their background. about 60% of them did not have adequate certification. their behavior showed it to. we have to shape this up quickly. -- their behavior showed it to.

-- showed it. >> i met one of the security guards the other day, and he was a great guy come on but they need to be held accountable. --, but they need to be held accountable. this agency ended up under the immigration customs enforcement division. that makes no sense. the first thing we will do is move it to the national protection division which deals with protecting critical infrastructure. bill: at least for the sake of our conversation, you are not calling for someone's head? >> i am calling for a radical shake-up of the agency. i believe it up to the secretary

of homeland security. this agency's sickness in danger is a lot of americans, and they need to get well quickly. bill: thank you for your time. we hope for the sake of you, other lawmakers, and the hundreds of thousands of people who work in federal buildings, are safe as a result of this investigation. thank you. megyn: a memorial service is over but the controversy is just beginning. in congress woman wants to honor the king of pop with a house resolution. now there is talk in washington about a commemoratives stamp. some in congress are saying not so fast. a new participant in the fight and joins next. bill: who is telling the truth about spies in congress? is it nancy pelosi or the on panetta? there is a new letter from leon

panetta that poured gasoline on this battle royale.

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bill: is suspected -- is suspected that there could be another wave of cyber attacks in south korea. they are under high alert. this comes at the same time cyber attacks hit the u.s. over the fourth of july weekend. targets included the white house, pentagon, york stock exchange, and countless others. experts say that north korea could be to blame, but it will be tough to track them down quickly. megyn: it is the start of the trading day on wall street. we have a positive number to report. over all, though, the dow is down for the week. new economic data including that

drop in unemployment claims. 565,000 americans seeking first- time unemployment aid. that number should be compared with the overall number, which is unfortunately at a record level, nearly 6.9 million. meantime, retailers are reporting weak sales for the month of june. however, dell futures were up ahead of the opening bell. we are encouraged by better than expected earnings reports from aluminum maker alcoa, and the market is responding. bill: there are new questions about how your stimulus tax dollars are being spent. i mentioned this story yesterday. our assignment desk tracked down this state -- tape showing pennsylvania state workers rebuilding kurds and

intersections hardly ever used. there are no sidewalks there. still, you will find newly painted crosswalks, what signals, handicapped-accessible sidewalk ramps. leaders in the county say they have no idea why this happened. apparently there was some law where the state department of transportation has $13 million in stimulus money, earmarked for nearly 4000 other ramps. chester county, pa. megyn: texas lawmaker sheila jackson lee introducing a resolution to recognize michael jackson as a global humanitarian and a noted leader and the fight to end world hunger and medical crises. the rev. al sharpton is now calling for a michael jackson

stamp. these are exactly the tributes that have other lawmakers riled up. peter king of new york first went on to youtube to blast all of this media coverage. then he went on o'reilly. >> i had to hear 10 days of this onslaught where he was being made out to be a saint, a hero. i want to get right to the point. he was a child molester. by his own admission, he slept with young boys. megyn: michael burgess also from texas is with us. sheila jackson lee was at the memorial service and purported to speak on behalf of the congress. we read that her staff called the obituaries for funerals where she can speak. she got the invitation from the jackson camp, showed up, and now

wants a resolution in his honor. how do you feel about it? >> i cannot believe this is something that they want to be so -- that the other side wants to be talking about. we have north korea, the jobs going away, we have a health care bill that my son has not even seen, and we are marking in up in committee next week. these are big issues that we have to deal with, and now we are talking about this? i do not think the democrats even want to talk about this. here is the resolution that she is introducing. she got this done in one day. we have 50 amendments to the health care bill. i cannot get that for the legislative council because of the backlog.

how did she get this through in record time? the democrats cannot even give us a copy of their health care bill because legislative council is so backed up. how did she get this through in such a short time? megyn: she did not have it through. it is just drafted and you have to vote on it. normally they will do a voice vote in congress, for this type of thing, but i am thinking that you or peter king will be asking for an actual vote. that may not go over well. >> who knows. the fact that the legislation have to spend drafted and now we are looking at this resolution -- we have a huge job to do in congress. we need to look at this bill. we did not read the stimulus bill, we did not get cap and trade.

this is a huge problem. how do you get something like this through so fast? i cannot believe the speaker is going to touch this with a 10- foot pole. megyn: let me ask you about this michael jackson mania. you had sheila jackson trying to honor him. al sharpton also says that he deserves a commemorative stamp. that is an honor reserved for certain americans. he also says this is a disgusting double standard, the news coverage of his death verses the entertainers like elvis and frank sinatra. people in the media should see him in the same way that they were. do you see a comparison with them? >> i was not here when frank

sinatra died. i am just a regular guy trying to do my job. this is offensive to me that we will rush this through when we do not even consider a stamp honoring the veterans who are sacrificing for our country. we have our priorities mixed up. people see that, and that is one of the problems we have our low approval ratings. megyn: congressman peter king has come under fire for that. he said that this media coverage is ridiculous. he called him a pedophile, child molester. then others came out and criticize him. -- criticized him. there was another congressman

who said some things, and the antique -- naacp called him a racist. al sharpton tried to tell us why we should be revering him in this way. here is what he said. >> i said michael jackson, in his career, pop culture, broke down racial barriers. he was the first black to have a music video on mtv. he was the first black on the cover of "rolling stone." he brought people together. this is a fact. megyn: he says it is time to honor him by perhaps creating in postage stamp. >> do we not have the other american to have done something just as dramatic? we have all of eternity to

indict a contribution of michael jackson to society. there should be no rush this week to get a postage stamp past. we have big issues to tackle for the american people first. that is what i am here for. they do not want me here spending time worrying about the legacy of someone who had some good things and had some bad things. that is where we all are, isn't it? megyn: thank you. bill: scientists may have discovered the fountain of youth in a tiny till. -- pill. they have been able to dramatically increase the life span of animals in the lab. will this work for humans? megyn: after the break, we will hear from one man who owns more than 100 snakes.

the response to the lawmaker who is not so big on that idea. >> they strike and grab their prey with their fangs. it is just a matter of time before one of these snakes gets to a visitor in the florida everglades. unbeatable prices... but now they have new areas where i can find the brands i use every day-- and save even more. so that's what they mean by unbeatable. save money. live better. walmart. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

bill: so much for the rally. we have come down on the markets. look at where we are. 8179. the other day i was thinking, are we going to go back below 8000? what are the psychological impacts? megyn: the dow has dropped 7% in the last few weeks. bill: alcoa is giving the market

to some reason to cheer. they did not lose as much money as people thought they will it. megyn: that is putting a lot of pressure on them. bill: also, the jobs number. that was not great. megyn: police in miami are searching for two armed men who pulled off a armed robbery at a beauty supply store. watch the video. can you imagine? at one point, they dragged a customer on the floor like a moth. they cleaned out the minister and took a shopper's wallets. police say that the thieves looked like they have done this before. can you imagine being in a beauty supply store trying to get your hair spray, and this person comes in and forces you to the ground at gunpoint?

this is wrong. bill: getting good news on one of the country's premier art institutions. fire fighters are now getting control of the fire threatening the getty art complex. it houses priceless art from artists such as vincent van gogh, claude monet. the weather is in their favor right now. by the way, the fire scorched 80 acres of yards of nearby homes, but they got away with a close one. megyn: when do we have python man? he is not quite ready. bill: he has 130 snakes in his home. he admits it is an obsession of

his own. he credits his girlfriend and uncle for turning him onto this. he believes it is ok to have a burmese python in the house. he will explain how to keep it safe, and all of those comments made on the senate floor do not apply to him. megyn: this all started when a 2-year-old girl died in florida. her father had a pipe on in the home, and escaped in the middle of the night and killed her. bill: now lawmakers are paying attention to this. senator bill nelson was on the floor of the senate, showing the size of the snake. he unrolled the skin of a 17-

foot python that had been killed in the everglades. there are more than 150,000 of them living in the area today, and he explained why the population is so hard to control. >> the reason they are so prolific is because they killed a 16-footer female, and inside were 56 eggs ready to hatch. you see how it has become such an invasive species, and it is taking over anything that is natural to the everglades. >> i agree with what he said, whenever that is worth. bill: not everyone agrees, by the way. the web manager of

fireballpython.com is with us today. who did you bring today? >> i brought a normal ball python, and my albinus make. bill: how big are they? >> they are about 3 feet long. bill: do you own a burmese python? >> i do not. bill: but you know how big they can get. how can you make sure that they stay safe in their cage? >> my changes are designed to be escape-proof. they are all in customs systems that i built. i have got 130 snakes and have not had an escape yet. bill: it is now a public safety issue after this little girl was killed. has that made you reconsider your collection?

>> no, sir, not at all. i am sad to hear about that little girl, but i know that my changes are safe. my ball python would not be able to hurt her. bill: really? i might beg to differ. you say that your changes are escape-proof. how do you know? >> snakes are nocturnal. they like to look around at night. you can go in there at night and there are over 100 snakes looking at you, exploring their cage. bill: you describe this as a crazy obsession on your website. explain to us your obsession. >> i was never taught to go halfway with anything. i got one, and then on saw that

there were so many other variations. it is fun and exciting to get into. you've read these snakes, they lay eggs, you breed for color and pattern, and you hope that you can get that special snake. bill: what makes them special? >> the color and pattern. it is just like any other pet. they rely on me for all of their needs. i give them everything they need. bill: but a honda you had. there is a push to ban the importation of a specially pythons. -- what a hobby you passed. would you begin it -- willing to get rid of those if it passes? >> i cannot read or selznicks if it passes. i would have to just keep them. -- breed or sell snakes if it

passes. i cannot keep all of them, so the only choice would be to put them down. bill: we were searching for some answers, and i have more questions, but we are all the time. he is a steak lover across the board. good luck to you. -- snake lover across the board. megyn: is like a scene from "indiana jones." on another note, craigslist can be a great way to find an apartment or a new car, but watch out because more groups -- crooks are using the website to learn in their victims. bill: did you hear this press

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bill: a truck bomb explosion in afghanistan kills 25, including 12 school children.

there are several new military bases in the province as part of this new military offensive. chinese forces have moved into the capital city to stop more violence. the government is not threatening writers with execution. 156 so far are reportedly dead, as the minority uighers clash with the chinese majority. megyn: when craigslist first came out, it was the internet darling. you could find just about anything. now there are growing concerns that it is also where crooks are finding their victims. and julie banderas has more. >> the criminals are listing things on craigslist, and then the victims take the bait,

contact them, and then they need at a location. when they arrive, there is no car but someone holding a gun, and they get robbed. that happened in philadelphia. they went to a vacant lot can sheba's robbed at gunpoint. -- and she was robbed at gunpoint. megyn: where is this happening? >> this was philadelphia, texas, missouri, washington, d.c., montana, and north carolina. it is pretty widespread. megyn: you need to be careful. what does craigslist say about it? >> they say to use common sense. they also point out -- "the

overwhelming majority of users are well intentioned, and although there is no way to see how many of these transactions go bad, it is up to you to do your homework." megyn: if i ever buy anything on craigslist, i am taking you with me. bill: do your research. am i the only one creeped down by the snakes? megyn: no, you are not. why were they so little and the ones in florida are bigger? what is bernie's? bill: that is right. -- they are burmese? cia director leon panetta

dropping a bomb in the situation over what pelosi knew about interrogations'. megyn: police looked away in this spring break down, but not this time. college students boston for making a movie that went too far. what's in a triscuit? simple ingredients like soft white winter wheat gathered together for 22 grams of whole grain goodness. it's what makes triscuit worth every bite. triscuit. weave some wonder.

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in the letter, they say to the director, you came in and told us in may that is not cia policy to mislead congress, and then you came back in recently and told us that top cia officials had concealed significant actions from all members of congress and misled members for a number of years from 2001 to this week. do you follow this? they say that leon panetta reversed himself, went to congress, and admitted that they misled congress more than once. the timing of this release is likely not an accident, and republicans are saying this is politics. where is the truth? [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org--

bill: we are going to get more on this later on. republicans were ready to corner nancy pelosi, demanding truth -- proved that she was misled about waterboarding. megyn: bill sammon is in washington to put this in perspective for us. it is not a letter from leon panetta. it is from democrats to leon panetta which they say was not official communication, but in a letter they say that the cia has been lying for years. now what do they want him to do? >> you have to understand this is part of a political game and they are playing. republicans were thinking about bringing up this controversy where she called the cia lawyers -- they planned on resurrecting that today when the house took up the cia authorization bill. in order to have backed off,

democrats basically said, if you resurrect that, we are going to resurrect this thing and we are going to throw the bush cia era under the bus which shows that the cia misled congress. the idea was that democrats were trying to get republicans not to go after nancy pelosi. and then they would not go after nancy pelosi, and they could just pass this authorization bill. megyn: a lot of our viewers watched her accusations and there was a lot of controversy. then we saw her awkward press conference where she was digging herself into her hole. does this now vindicate her?

the democrats know something that we do not know about an admission that leon panetta made? >> it may do that. it is hard to tell without anyone telling us what exactly the nature of what was withheld from lawmakers, allegedly. it seems to bolster nancy pelosi's case. when she first made the charge, everyone thought she was crazy. now you have not only these democrats calling the cia lawyers, but also the head of the intelligence committee, congressman reyes rating to congressman hoekstra, saying that we were -- writing to congressman hoekstra, saying that we were lied to.

he said that this will probably end up in the full committee investigation. in other words, what leon panetta told us that we were misled on, that will now need an investigation. megyn: two questions. how does this get released? leon panetta gives them classified testimony, so how does this get leaked ? >> you have to suspect there was political motivation for this. we do not want to see a nancy pelosi thrown under the bus, so we are going to make this a valid, and it is going to make the bush administration look bad. the other thing that is interesting. this authorization bill coming before congress includes a

measure that instead of requiring the cia to brief a group of eight, and top republicans and democrats, it would expand that to all members of intelligence committees which would greatly increase the chance of leaks in the future. the obama administration last night issued a veto option. interestingly, that puts him on the side of bush and may open him up to criticism from the left, from people who want more openness. megyn: do we need to hear from leon panetta? according to the democrats, he threw his agency under the bus, misleading congress. and do we expect this? should the american people demand to hear from him?

>> i think so. the ball is in his court. the cia released a point -- a statement saying that leon panetta stood by his point. i think more is required now. megyn: right, because that does not answer the question. it may not be there policy, but they did it. now the american people will want to know the truth. thank you. in the meantime, nancy pelosi is said to give her a weekly media briefing 30 minutes from now. it was at one of those briefings when she touched the initial fire storm, claiming she did not know the cia was using waterboarding, and that the cia misleads congress all the time. it is hard to imagine this issue will not come up today. we will be watching. bill: a key swing state going

from home town to may be hostile territory for the obama administration. here is cincinnati, ohio. joe biden is in ohio. he will be talking about defending the president's stimulus package, but ohio is often considered the most crucial state in presidential elections, and it seems that they could be turning away from president obama. his approval rating in may was 62%. right now, 49%. changing political fortunes in ohio. megyn: an update on those two american journalists who were sentenced to 12 years of hard labor in north korea. laura ling and euna lee or on

assignment when they were arrested and convicted of illegal entry and hostile acts. now laura's sister, lisa ling, says that she admitted to her that they broke north korean law by entering the country without permission. she said that her sister need help from the government to get amnesty. keep in mind, people routinely die in these prison camps. it is not normal prison. they were reportedly working for current tv, a san francisco- based television station. bill: al qaeda now saying the military tactic of using credit turn drones is putting pressure on terrorist groups in places like pakistan and afghanistan. that was from a book called -- from a book from al qaeda. analysts say that the book is

authentic. so how did we get a hold of that? catherine herridge has an exclusive. >> this is a copy of the book. it translates loosely as "the spies among us." it was first brought to our attention by a middle east media research institute. one of the significant things about the book is the introduction that wasn't written by ayman al-zawahri. in the introduction, he is paranoid that there are spies among them, providing intelligence to the u.s., or pakistan, and this is allowing us to successfully decimate their leadership. bill: what is contained in there that would tell us to the spies are, and how they are operating? >> it is clear they believe they

are among their own people. there is one section in the manual that provides some photographs, working theories, of how the u.s. and pakistan are able to target these camps. there is a theory of infrared homing devices. they are being planted in safe houses, and that is what allows a predator drone to identify the target and strike the target. whatever the truth, is an example of how paranoid they have become because the campaign of tracking against them has become so successful. this has become a controversial campaign, however, for a number of reasons. the current administration has decided to continue this campaign in tribal areas. the intelligence community is not commenting on the record,

but from my own reporting, particularly with an interview with the previous cia director, they believe this is the most important weapon of keeping the taliban away from pakistan and decimating the middle managers of the organization, those who actually get things done. bill: thank you. megyn: the democrats' plan to nationalize health care could cost $1 trillion. what about a plan that would not raise any taxes on the middle- class, or perhaps on anyone? we will look at a republican idea that just came out. bill: we are going to take a look at what cost this woman to murder steve been there, and then kill herself. my friends of the mistress say that she was spending. megyn: you know what spring break is about. apparently this is fine with

police, but when a group of college students decided to build a class project on the beach, they wound up behind bars. what they did that pushed police over the edge. gecko vo: geico's the third-largest car insurance company in the nation. but, it's not like we're kicking back, now, havin' a cuppa tea. gecko vo: takes lots of sweat to become that big. gecko vo: 'course, geckos don't literally sweat... it's just not our thing... gecko vo: ...but i do work hard, mind you. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad,

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bill: this is from downtown los angeles where we have been watching this building fire. there are not making much progress. this is a commercial building. no injuries reported. apparently they received the call at 6:00 a.m. pacific time. this is south santa fe ave. now the fire department is on the scene.

we will keep an eye on this for you. megyn: harry reid telling democrats on capitol hill to forget bipartisanship can try to get health care reform passed. the government health care option, the option of raising taxes, particularly on the middle-class, and other proposals, simply do not have gop support, as well as support from moderate democrats. and now a brand new plan from republicans. the congressman from arizona is my guest this morning. you have got the white hat on in your riding in on your white course, and you are going to save health care reform. what are you proposing that the other plans do not propose? >> it is called improving health

care for all americans act. what it does for americans is that it gives you the individual choice in health care. it does provide the ability for every american, regardless of income, to buy a health care plan of their choice. those who can afford it will buy it with their own money and get a tax offset for doing so. those who cannot will get a tax hike and to buy a plan, but a plan of their choice. the reason for that is we want to promote competition in health care market and we want to give individuals a choice. right now, your employer controls or health care. your employer selects your health care plan. you are cut out of the process. in the absence of competition, if prices keep on going up and up and quality goes down. megyn: these people getting government money, who are too poor to afford it on their own,

they are not going to have a government auction? it will all be from a private or a co-op in a server? >> they will have many more choices. we create more insurance pools so that you would not need to take the insurance offered by your employer. you could take it from the daughters of america's association, the rotary club, etc. megyn: the democrats really want this public auction. barack obama opened up the door to not having a government auction the other day. then there was so much outrage from liberals that there was the president of russia issuing a statement -- from russia issuing a statement that he still wanted his public plan. >> getting our planned through

would only work if the american people speak up. they do not want a government bureaucrat telling them what kind of health care they should have. you are right, democrats are saying there must be a public plan, but more than that, they believe the government should decide. i believe we can summarize their plan with one sentence. if you like what you have right now, be prepared to lose it. the house bill says every plan in america will change within five years because they will have to be approved by a government bureaucracy that will say what your plan has to look like. megyn: is this going to happen? you are in the minority party. your bill is probably not going to go through. however, our viewers are worried about the democrats' bill going through. do you think that this

democrats' bill will go through in the summer? >> it will be the most sweeping piece of legislation in decades. yet, the majority party and the white house is saying that it must happen. they are saying they may have to put off the august recess to make it happen. again, if you like what you have, be prepared to lose it. the only way that this will not happen, to overcome the majorities that the democrats have, is if the americans get a chance to see the bill and speak up. right now they are rushing through this so quickly, there is little chance americans will be able to see what is in the bill. megyn: we appreciate you coming here. bill: this is a fox news alert. word from dhs. they say -- dhhs.

they say they will allocate $8.5 billion to fight the swine flu. some updates on that as we get more information. also, did you watch this press conference? who is this young girlfriend found dead next to nfl quarterback steve mcnair? megyn: racy photographs from her facebook page give us some clues. shell v-power. our most advanced fuel ever.

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megyn: we are getting some unbelievable video. yet another train operator in washington, d.c. has fallen asleep at the wheel. this video was taken by a 14- year-old boy. he noticed that the train conductor was not paying attention. this is how he described it. at first, he is dozing off. then i see him doze off and his

head goes lead. he asks permission to record this, and then they provided to metro officials, filing a complaint. and do you know what a spokesperson says? this is a wake-up call. they say they are now reviewing the incident and say they need to give their drivers better training. bill: they have two video tapes in two days. the other day we had the man text messaging. we had los angeles, boston? the offering were using text messaging. megyn: i know that they are on autopilot, but that is not always foolproof. bill: or the track indicators working? we do not know?

megyn: if there are automatic, when you need a conductor? obviously, they need to be alert to. -- alert. bill: we are looking deeper into the case of steve mcnair. police say saleh kazemi shot steve mcnair, and then killed herself. police believe that she was concerned that she was being cheated on with another woman. here are pictures of her taken from her facebook page. friends say that sheba's paint -- she was making payments on two cars and was just getting by. this is from yesterday afternoon. >> because there is a lack of

physical evidence of a struggle, his position on the sofa, trajectory of the blood pattern, we believe it is likely iazemkai killed the mayor before shooting herself. -- mcnaie before shooting herself. this happened on the fourth of july. there is some video tape from the third, showing her getting pulled over for dui. he was in the car with her. then he gets out and sets on the side of the road. he went home and eventually and later telephoned her.

megyn: police said that he was pretty angry at her. she was the one driving. just one of the offense that led to this inclusion. initially, police said it was a murder-suicide. then they said that the cast. family was casting doubt on that, saying that she was not suicidal. however, they came out again and said that those who knew her well confirmed that she will was falling apart. they say the straw that broke the camel's back was that she believed he was having yet another affair. remember, he was already married. bill: police described how they

believe she shot him. megyn: at least he was asleep when she shot him. that did better than the terror of seeing someone come at you with a gun. also, some of his friends from his team said that you do not know the pressure that these athletes are under when they leave the spotlight. he believes that him having these affairs could have been related to that, making it feel like he still mattered. bill: we have been talking about this controversy in washington. leon panetta question over whether he or nancy pelosi is lying. megyn: ever want to turn back the clock and stay younger?

medical researchers making progress in a brand new drug that could prevent aging.

megyn: this is a fox news alert. we are awaiting a news conference and nancy pelosi. she has these press conferences every week where she made herself available and comments

on those things she feels important, and that reporters ask her questions. she may be getting some support now because, according to seven democrats in congress, they have written a letter to leon panetta, purporting to recount his june 24 testimony to the house intelligence committee, in which they claim he confirmed nancy pelosi's allegations. we are waiting to hear what the house speaker has to say about this, and we know some of the reporters -- especially our own reporters -- will be asking about this. bill: it smells like a good one is cooking up medical researchers taking a step to finding the fountain of youth.

an organ transplant drug has apparently boosted the life span of mice. could it be applied to us? with me now is our fox news medical contributor. the antibiotic, what is it? >> it is something that works directly on cells. anything that grows rapidly gets worn out. protein to stimulate the cells to grow. this drug blocks of that growth, so cells to do not grow as rapidly, and therefore, do not die as rapidly. bill: this drug essentially blocks in, like a canal shutting

down. >> that is right. they have studied this before. this is the first big study in mammals. they have been looking at this and other species. two dozen mice were studied in this. the results -- 2000 bytes were studied in this. the results were published. -- 2000 mice were studied in this. bill: my first question, why do i want to stop growing? >> i think men and is already taking it. how do you stay so young? -- megyn is already taking it. the downside is we do not know the side effects. i do not know what is going to happen but i believe they will

stay longer -- stay alive longer. bill: our average age is 75 years. what is the average for a mouse? >> only about a year, and that is why it is profound if they can give them a few more months. by the way, it is also being studied as an anti-cancer drug. as cells grow and do more functioning, they are likely to be cancerous. bill: life span increased by 40% in females, 9% in males. -- 14% in females, 9% in males. >> by doing this they did block immune functions, so you could be more vulnerable to other problems.

bill: another thing to worry about, this help the immune system, it does affect that. any time you are messing with that, you have to be careful. >> we have been looking at that. there are a lot of drugs on the market that do that. you are right, we need that immune system to fight off things. i am worried about that. this is still early in the study, so everyone out there, if you want to look like bill hemmer and megyn kelly, exercise, sleep right. bill: and make sure you hit the makeup room before you go on television. especially in high definition. thank you. it is always impressive to hear you say that you are impressed by some thing. awaiting what could be a

showdown in washington now -- looking at capitol hill, we are awaiting nancy pelosi. this is her scheduled a media briefing, but there are questions about what she knew about cia interrogations', and fingers are pointing to the cia director. megyn: and there is no shortage of sex and skin on the beach during spring break. a group of students not the setting would make a great place for a class project, but apparently they were acting too good.

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megyn: kelly's court is back in session. simulated sex on the beach landing eight college students in jail. there were busted for shooting a racy project in myrtle beach, south carolina. and not a spring break scene with the woman appearing to provide a sexual favor. the problem is, a grandmother comes walking along, sees what is happening, and asks what is happening. the grandmother goes ballistic hand the next thing you know the police are on the scene and everyone gets arrested. $10,000 bail for each one, even though it was just an act and nobody got naked. so can this charges -- and the charges stick? good morning, a panel. doesn't this take you back your spring break days, kimberly?

[laughter] what are they thinking? they did not have any permanence, they start stimulating sex acts. apparently, this girl was the actress. so now, are they headed for prison? >> they should know spend spring break at the library, like i did. instead they had to do this. yes, they are in trouble. they are in violation of south carolina in decency laws. it is pretty clear. it does not matter that they did not get naked. the actual act of simulating a sexual act like that is not ok. they had a film crew but no permit, they offended visitors.

megyn: what about it, mark? does this require nudity to be indecent exposure, or is simulating a sex act enough? >> and they need dentils. the police do not have gentles in this case. -- they need genitals. the police do not have genitals in this case. they need probable cause for each charge. they do not have that. if the law allows you to arrest people for indecent exposure, then any teenager acting on the beach, acting like they are stimulating laepfrog could be

arrested. megyn: anyone who has seen spring break videos knows that there is indecent exposure all the time. my husband and i were on a honeymoon and at a nearby restaurant, we saw a competition where boys and girls -- that was the goal -- they were supposed to engage in simulating sex acts and then switch bidding suits in the ocean. >> victim and breaking the law means that you go to jail. maybe you will pay fines to the state. also, maybe a misdemeanor. are they going to go to jail forever? no, but they will have to pay a fine. the law is clear. they had a film crew, they were trying to make this movie, and i'd that their parents are proud of them.

>> they should be. i cannot believe they are facing three years in prison for exercising bad judgment. i read that statute, kimberly. three years of prison. megyn: they should not go to prison for this. >> i do not think they need to go to prison. they may just pay a fine. they still broke the law, what do you want me to do? do you want me to look the other way? >> it is now up to officer friendly to determine whether the action of two teenagers, let us say, dancing in a sexual manner -- somehow it is up to him to decide whether or not they should be arrested.

megyn: if that was the case, there would be no one left on the beaches. >> kimberly is ok with that. >> this i like. i think this is a swimming class. megyn: it is more than just filling without a permit. -- filming without a permit. >> that is just a technicality. they were filming sex acts. they were making a pornographic movie. >> they were not making a pornographic movie. >> boxers is not self-contained steel, if you know what i mean. i do not think i need to draw

the picture. it is against the law. >> it is against your moral law, not criminal law. all elements must be reached before police make an arrest. they should not be stripped of their liberty. >> read it and weep. it is the law. megyn: is he the only one that calls you kim? i think it is cute. one final word, the students broke the law by not getting a permit, but the charge could be a stretch. by all accounts it was not an actual sex act. it was simulation. everyone remained fully closed. is it obscene as the law defines

it? to me, it seems like an overreaction from police. they should have cited the students, which they did, find them, which they did, but jail time? they are stupid, not criminals. bill: this is a fox news alert. we are awaiting nancy pelosi. this is shaping up to be a battle between democrats and leon panetta. a letter was released yesterday late-afternoon by six democratic members who claim the cia director testified that "top cia officials had concealed significant actions and misled members of congress going back to 2001." however, the cia director said, let me be clear, it is not our policy or practice to mislead congress. democrats apparently won a

clarification now what is happening. we expect this to be the top of the questioning when nancy pelosi told her weekly press conference -- holds her weekly press conference. here is a preview of what we can expect. james rosen, good morning. >> at issue is a simple concept. as the cia been systematically deceiving members of congress for the last eight years? up until last month as well. that is the allegation by these democrats who sent a letter to leon panetta in june, demanding that he acknowledged this publicly. the contention is that leon panetta privately acknowledged this two days earlier in closed testimony to the intelligence committee. why this relates to speaker pelosi? in may, she charged that she herself had been misled by the

central intelligence agency with regard to whether she knew and what she was told about enhance interrogation techniques, aka waterboarding. at that time, speaker pelosi said that shebas' misled by the cia. at that time, leon panetta said that it was not the practice of their organization to mislead congress. now we have seven separate democrats asking that he acknowledges these allegations. bill: the point is, it would vindicate nancy pelosi. >> that is right. there are indications, despite democrats claiming that he admitted this, that he ever -- denied ever saying any of those things. bill: standby. let us get a quick commercial break. nancy pelosi when we come back. .

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she will stand for it, even during the height of the controversy. today she may want to. according to seven democrats in congress, democrats other than nancy pelosi, she has been vindicated in her charge that the cia repeatedly misled congress. according to the senate democrats, who did not make this official, it is out there. cia director leon panetta gave closed-door testimony that backed up nancy pelosi in some manner. now we want to hear from leon panetta. the american people want to hear from him. in the meantime, we'll wait nancy pelosi. it will happen in a matter of moments. do not miss it. bill: in the largest simultaneous raid police, seized dozens of stodogs. some unspeakable acts of

cruelty. why did they make the move now on the bust? >> it was the culmination of a multi agency investigation, which was apparently very widespread toward the middle portion of the country. texas, arkansas, missouri, iowa, and nebraska. dog kennels existed primarily for preparing dogs for dogfighting. once the feds finally put this together along with state and local agencies, they decided to execute those warrants. bill: how many people were involved? >> so far, we are talking about 26 arrests. the federal indictment, which triggered this raid yesterday,

named five people. 26 people have been arrested. up to 400 dogs have been recovered from all seven states. bill: what happens to the dogs? >> they are evidence in this criminal case. it is a multistate conspiracy to break laws in regards to help animals should be held. they will be evidence. later, there will be an evaluation. the losing dogs in a lot of these dogfights were often shot. bill: what part of the country? >> the investigation is out of the u.s. attorney's office in st. louis. we're talking about texas, oklahoma, iowa, missouri, and nebraska. they think they have a solid case.

bill: steve brown, thank you. megyn: that is sick. good for the authorities for cracking down on this. you can contact the authorities and ominously foxnews.com -- you can contact the authorities anonymously. we're still waiting for house speaker nancy pelosi of one. they're what they are talking about behind closed doors. we are ready to ask questions. you will see it right here. geico's been saving people money on car insurance for over 70 years.

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megyn: iranian police have fired into the air on thursday trying to dispersed pro-reform demonstrators who have taken back to the streets in central tehran. the witness also said he salt police detaining several

protesters. this is final tape. the latest protest out of tehran. megyn: this is important news. listen up. ladies, we are not the only ones squeezing interest in the jeans. designers are slimming down the men's department, too. the problem is, men may have some trouble adjusting to the snug fit. levis and gap are adding elastic. you can still have those skinny little legs. bill: do i have the option to pass on that? megyn: i cannot think of anything less sexy. anything less sexy.