cougars. you don't mean older women, do you. have a great weekend. we'll see you monday. bill: a "fox news alert" bill: fox news live as that happens overseas. another "fox news alert," world of business, get this, gm said to emerge from bankruptcy today. live look at gm headquarters, detroit, michigan, there you go, the ceo will lay out his vision for the new gm in a matter of moments. the quicker than expected exit out of chapter 11 comes only 40 days after the biggest industrial failure in u.s.

history. there's the new ceo. good morning, everybody. megyn: company executives have a lot riding on this turn-around, right? don't you want to know what's going to happen with your $50 billion? bill: a new green logo and a highly touted electric car. stu varney leads our coverage. good morning. >> good morning, bill. bill: they're going to sell what, the pontiac?

they're going to sell the cadillac and the buick, the pontiac is gone, the hummer is gone. say hello to the chevy volt. >> that's the focus. that's going to be the main focus of the new general motors. the chevy volt is essentially an experimental electric car. price tag, i've heard in the region of $40,000, not on the market yet but coming to a dealership near you in a couple of years. big question. will we shell out $40,000 on a limited range all electric car? this is the new focus of the new general motors. new, and its new focus on fuel efficient, small cars.

we have seen in other countries where they are taking the bait. when do we get our money back? >> the theory is in general motors will sell parts of itself back -- later in 2012. the government wants to be out of general motors by 2013. we have $50 billion in there now, another $7 million from the energy department, and there will be billions more because they have to retool new factories to build these fuel- efficient small cars. bill: you thought gm would be in bankruptcy for a long period of time. it lasted 40 days. what do you think now? will they make it?

>> there challenges are enormous. number one, americans faced competition from foreign makers. you have done these 40 belsen dollar volt, and will they sell? we are not quite sure. gasoline is coming down in price again. will be cast aside those s.u.v.'s, comfortable cars, and go for smaller cars, when gas is much cheaper? bill: i know where your money is on that. you are thinking we will take the bigger ones. thank you. megyn: she would be the nation's third female supreme court justice, the second to be on the court right now, and the first

hispanic. that is one reason why some are predicting some republicans will go easy on sonia sotomayor in her confirmation hearing next week. republican alabama senator jeff sessions is the ranking member of the senate judiciary committee. that means he will be doing the questioning this tuesday. good morning, senator. monday morning, we get to see her opening statement, we get to hear your opening statement, and others on the committee, who will get to cross-examine this historic nominee. it is a big moment, not just for sonia sotomayor. is there anything, at this point, that could derail her nomination? >> i think there are things that could, often you have the events and things that could change in the hearings, we will see.

you are a lawyer, you know these things, that we are at a legal crossroads. there is a philosophy, they're not to just that judges can allow their personal, ideological views to affect their decision making. she has written quite a number of things that suggests she believes her background ancan legitimate impact her decision making. that is contrary to what we believe a judge should be able to do. megyn: some are saying republican will be easy on her because she is a hispanic woman, particularly because the hispanic bone will be critical to republicans in the upcoming elections. lawmakers are saying, you go hard that her at your own peril. what is your feeling?

>> i do not necessarily agree. every nominee deserves a fair process. she is a hard worker, she has great integrity, but she has a judicial philosophy that we have to inquire into. if we do that and determined that we have a competent judge, we have committed fairness to all parties, regardless of her political views, and she will serve the public well. in fact, to date, those of us on the republican side have carried this to a pretty high level in terms of the issues being raised so far. megyn: she needs one vote from republicans on the republican side to get out of committee.

many would say it comes down to how the post in the judiciary committee. q you believe in could wind up not a single republican member boats yay? >> -- votes yay? >> i am not sure that is accurate. we will make sure that she gets a feafair hearing. megyn: you are the ranking member. does she need one vote from the minority? >> that has not been the rule in recent years. senator hatch was chairman of that, and we did not agree to that rule in the past. we have disputed over town of breaux has been interpreted. megyn: interesting. that is good news for sonia sotomayor. one issue that could get in the

way of her confirmation is her position on gun rights. this is a big issue for a lot of people in the country, especially those in the end or a. she issued a controversial decision that said the second amendment, the right to bear arms, does not apply at the state level. how big of an issue does this get to be, and how powerful are the nra in terms of lobbying people like you and others in the senate? >> this is a huge issue. if the supreme court holds, as she did, that the second amendment does not apply to states, that means americans will be denied their right to bear arms. that is unthinkable the way the constitution is written because it is the right of the people.

she will need to explain that. she relied on some old authority to come to her decision, and it raises real questions about the future, and what the supreme court will be deciding. megyn: the decision was 5-4, a close decision. what is the one thing we should be watching for next week as these hearings begin? >> we need to look closely to make sure that this nominee is committed to a non-political objective judgeship. that she will be a neutral on player in the ball game, not take sides -- umpire in the ball game, not take sides. megyn: thank you for being here.

we look forward to watching. stay with us this weekend as we prepare for the hearings. bret baier and i will co-host a special this weekend "the judging sotomayor." we have been working on this for several weeks. you will learn facts about her that you have not heard anywhere, some of which are fine-opening. -- eye-opening. we will have wall-to-wall coverage starting for you next week. bill: good luck, sunday night. in washington, they are also talking about a possible second stimulus. opponents of the first plan had another idea. they say small business provides

70% of the jobs. eric cantor want to see more investment and help from that sector. >> now is not the time to say, we need more of the same, because we know it did not work. this economy is owned by barack obama. this is the prescription that the obama administration brought forward in january, nearly $800 billion strong, and plan has not worked. it is focused on working families and trying to get people back into the game. putting more of their money to work for themselves. bill: he has much more to say about this, including reaction to joe biden's remarks yesterday. megyn: a.i.g. wants to dole out millions more in bonuses to top executives. this is the company that already owes taxpayers more than $170

billion. forget the bonuses, where is our money? bill: is it safe to go back to the beach? apparently, but not for the reason you think. is nature's perfect predators becoming prey?

bill: a.i.g. was bailed out with $180 billion in your taxpayer money, but now they are paying bonuses to their executives. you might remember when they floor a lot of people by offering exorbitant bonuses to their executives. this time, it is not near enough, but the company says that they need to soften the

blow of the economy before they seek approval from the government. >> we will have to wait and see. what recession bill? the insurance giant's federal package stands at $180 billion. this time around, the payments which are due next week include $2.4 million in bonuses for 40 high-ranking officers. that number is actually significantly less than the bonus is the seed in the spring, totaling $9.6 million. if you are wondering why a government would allow a firm, who received that money, to hand out this money, it is because they do not really need permission. many of these bonuses were promised a long before the bailout program.

bill: thank you for the analysis. now we have elisabeth mcdonald from us -- with us from the fox business network. $2.4 million in bonuses for 40 high-ranking corporate officers. that is about $60,000 per person. >> julie hit the nail on the head, and the administration cannot really do anything about that because these apply to 2008 bonuses. we could be up to $450 million for all of the bonuses for all of the executives, including the investment of a financial products service. bill: is $60,000 a lot of money to work in new york city, if you

are a high-ranking police had a worldwide firm? >> of course, no, it is not, but we are talking about a bonus pool of up to $450 million. the company is saying that these are contractually-based bonuses, and if we break that promise, they could walk away. it is a serious issue. they need to pay these bonuses under contractual plot. that is what a.i.g. and the government is up against. -- under contractual law. some estimates had it at $180 billion. right now citigroup is saying

that the stock is worth less. the issue now for the white house is if the taxpayer will ever see their investment back on a.i.g. the likely interest is, no. bill: really? that could tick a lot of people off. thank you very much. megyn: are you headed to the beach this weekend? we may have good news for you from the world of oil and gas. bill: one creature you do not want to encounter when swimming in the ocean. but should we be afraid of that thing? i was always going

having to go in the middle of traffic and just starting and stopping. having to go in the middle of a ballgame and then not being able to go once i got there. and going at night. i thought i had a going problem. my doctor said i had a growing problem. it wasn't my bladder. my prostate was growing. i had an enlarging prostate that was causing my urinary symptoms. my doctor prescribed avodart. (announcer) over time, avodart actually

shrinks the prostate and improves urinary symptoms. so i can go more easily when i need to go and go less often. (announcer) avodart is for men only. women should not take or handle avodart due to risk of a specific birth defect. do not donate blood until 6 months after stopping avodart. tell your doctor if you have liver disease. rarely sexual side effects, swelling or tenderness of the breasts can occur. only your health care provider can tell if symptoms are from an enlarged prostate and not a more serious

bill: an absolute tragic story in florida. there was a couple that with well-known throughout the state for adopting kids, but now the couple has been shot to death. they were the victims of a home invasion. they took in many kids with

down's syndrome, and they had four children of their own. several kids were in the home when police arrived, and investigators are looking for three men in a red van. more on this developing story, as we get it. megyn: there are violent protests right now under way on the west bank. and our board and a palestinian village. weekly protests that with severe force from the israeli military, some say excessive. reena ninan found herself in the middle of it. she is with us now. what are they put testing? what do we mean by weekly friday protests? >> this is over the territory issue.

palestinians say that this severely cuts through their land, making it difficult to farm. if you have property there, it is a big hassle. we found ourselves in the middle of one of these protests. at one point, you could not see because of the tear gas and water cannons. >> these are israeli military clashing with israeli and palestinian peace activist spirit they are protesting the separation barrier. take a look behind me. the barrier housetops quite a few suicide bombings, but the problem is that cuts through palestinian territory. palestinians would like to open up to date and perhaps cross over. you can see the tear-gas coming

out now. police are also using a water cannon. right now they are firing tear gas. i cannot see. >> it was so intense. you hear me calling out to our bureau chief. it is so paralyzing, if you have never experienced teargas. it feels like you are submerged under water and you cannot see anything. this goes on every week and the protesters said that they did not come with weapons, and felt like it was an excessive use of force by the israeli army. megyn: good to know that you are ok. i wonder if you are feeling well? >> yes, but i have to tell you

the smell as we walk ied back here. it really remains with you. the point of this is that you do not return because in is an intense smell that past four days. -- lasts for days. there are israeli and palestinian peace activist coming here every week, and now it is becoming even more crucial as the white house determine whether or not to create a palestinian state. megyn: these stories seem so far away but you do not get a feeling for what happens on a day to day basis. seeing what goes on there between these two groups is

really helpful to westerners, to bring in all home. i'm sorry you found yourself in that, but great reporting. bill: she is tough. and ellie? if you follow him, you will find the action. some in washington are not just defending the stimulus package, some are saying it is time for a second one. a republican with some other ideas. he has reaction. megyn: and ever wish you had a photographic memory? some scientists say that this could be available to you, in a pill.

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bill: getting a check on wall street now. do not want to be going that way, do we? down 52 points at the opening. we have continued strains on the economy and concerns over whether the stimulus package is doing its job of turning the

economy around. eric cantor hess if you ideas about that, and he will be with us. -- has a few ideas about that, and he will be with us. megyn: the news is not all bad because oil prices are going down, supply is going up, and that means good news for you at the pump. the price of oil slipping below $60. gas prices, which were climbing, analysts now believe that the prices will go down. the average price right now is $2.57 per gallon. that is down one penny from yesterday. it is down $1.50 from one year ago.

bill: remember people in california paying overtime dollars? megyn: good news and bad news in california. -- paying over $5? bill: the above administration defending their spending today. -- obama administration defending their spending today. here is joe biden. >> the recovery act was not designed to help the economy back to it's full potential on its own. it was to provide the boost necessary to stop the freefall. it was designed to get people spending again. it was designed to save jobs and create new ones. bill: some people are talking about a second stimulus idea but republicans are putting on their own plan to turn around the economy.

eric cantor of virginia is with me this morning. i want to dissect what he said there. he said stimulus was necessary to stop the freefall. one could argue that we were in the free fall earlier this year. can you agree now that the economy is no longer in free fall? >> absolutely not. if you ask anyone out there working, what ever sector it is, everyone is worried about their job. when we began talking about the stimulus in january, the president made the commitment and said, if congress passes this $800 billion bill, we would stay off the job loss and prevent unemployment from reaching 8.5%.

now the unemployment is approaching 10%, and in many states, it is much higher than that. we have lost 3 million jobs almost. we should not be thinking about spending more in the same way, to try to reverse this job loss. we need to be smart about this and work together to point back to the small businesses which are the true job generators. bill: what is the idea that could gain traction to do that? >> what we need to do first is stop all of this enormous borrowing and spending. the essence of how jobs had been created in the country is you have small business people willing to put their money to work to hire folks. that is what we need to be

doing, creating tax incentives, creating the situation where the credit markets can flow again. bill: from here, it appears that you will need a major conversion on capitol hill to get that done. >> it is interesting you say that. in the introduction of the stimulus bill, i remember handing the president of the republican plan, along with don maynard. do you know what he said to me? he said there is nothing crazy in here but we have a difference on how we go about stimulating the economy, and i won. he is right, this is his economy, controlled by the democratic congress, but their plan had failed. it is time for us to do it the right wing down. bill: if the white house was here, they would ask for another

six months because it is still moving through the system. robert gibbs said that it will have a big impact over the next two years. are we being too impatient? >> remember the context from which we took this stimulus bill. it was passed almost in the dark of night, 1100 pages. no one read the bill. the urgency was such that the president said we needed to act now. if so, we would stave off the job loss. that has not happened. so what are we spending all this money if we did not expect it to go out years later? that is not how we should be operating. we need to stop this bill from passing and we need to be smart again. bill: so you want to pull itback >

>> -- it back? >> the effort should be used focused on the small business people, helping capital form again so that we can see jobs created. we need innovation and often ignores to engage in this -- entrepreneurs to engage in the economy again. bill: thank you. megyn: some call them signs of progress. others say it is stimulus money being flushed down the toilet. road signs with the american reinvestment and recovery act logo going up across the country. this may sound like a drop in the bucket in terms of the whole package, but consider new jersey, which has only spend 3%

of its stimulus fund, and they have given 5% of that on these signs. new york has spent $1 million on stimulus signs alone. that is one expensive pat on the back. bill: how many potholes can you fill 4 $1 million? how many roads can you pave? we wanted to update you on a story with the michael jackson investigation. police say they are waiting for toxicology results from the autopsy before deciding whether to pursue a criminal case. detectives said to be investigating five of his doctors, including his personal physician and dermatologist. they are looking through his prescription drug history.

the fda and state of california attorney general's office are involved in the investigation. tmz.com was reported this from the beginning, and they have been ahead of everybody. you should see the number of bottles of pills that they found. megyn: two guard rich taxable. -- garbage bags full. if i came to your house, and combine all of your medicine, including advil, could i still up two bags? bill: not at all. they are young chickens, however.

megyn: i am not implying that they are old -- just when you thought it was safe to look at your 401k statement, there are growing fears over inflation, deficits, and what it could mean for your retirement. bill: scientists say that you could get a photographic memory just by taking a pill. we have the analyst in the house with all the information. nothing beats walmart's 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.

megyn: the last time you flew, were you on time?

it turns out, airlines are doing a better job getting you to your destination on time. the country's largest 19 airlines cut their flights on time. -- got a 80% of their flights on time. 79% in april. maybe they did not include laguardia. bill: ever wish you had a photographic memory? a group of spanish scientists have isolated a protein that could boost your memory by 1500 times. so far they say it is working like a charm in the lab, and eventually you could see the benefits in an over the counter tell. with me now is a scientific analyst.

the spanish scientists isolated a protein, and what did it do to the brain? >> it is in the visual cortex. rats had a much stronger memories after taking this. bill: so before, and their memory was only good for 45 minutes, but later on, they were able to remember? this is a visual memory? >> that is right. we have lots of different kinds of memories. this was for the visual area. bill: so i could look across the room and remember what people are wearing? >> that is right. bill: specifically with the study, it was just what you see. what a great idea for a multi tasker.

>> or you could look at a map, and theoretically, you would not have to look at it again. bill come my friend megyn has a tough time with directions. >> i feel her pain. it stands to reason that some day this could be used as a memory in hansard. a lot more research is required. bill: why is it that we are always testing on rats and mice? >> genetically, we are pretty similar, and for obvious reasons, do not want to test on humans. bill: in the meantime, what is your own advice to improving your memory? >> getting a good night's sleep

is the best advice. you have a better chance of remembering any information. bill: what about crossword puzzles? >> that research has been a bit overblown. the brain is plastic, so the more you use it, the more you are able to usexpand your brain power. bill: thank you. anyhow, this could be in our medicine cabinet soon. megyn: thanks to you, bill, i do not need to remember any directions because you got me the garmin. i'd love it. i am a walking advertisement for it.

except, her voice gets little annoying after a while. bill: some people find her sexy. megyn: wonder what is happening with health care reform? democrats have come up with a way to pay for it. tax -- tax to oblivion. bill: and is there a new concern and lurking in the ocean, for the shark? are you receiving a payout from a legal settlement 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.

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bill: thousands of iranians in the streets of tehran, protesting the election, still to this day. it is the first large demonstration we have seen in two weeks' time. the video you are seeing is posted online. we cannot verify the authenticity of its, but we have seen countless images similar to it, indicating how volatile the situation is. security, meanwhile, in very tight around the vatican city

ahead of president obama's trip there. we will see him with the pope. megyn: do you fear a shark attack when you swim in the ocean? apparently, you can fear a little bit less. one study says one third of all sharks could soon be extinct, including the great white. phil keating is in florida. we have covered a lot of shark attacks off of that beach. what are the sharks in danger? >> we are primarily talking about deep water, open ocean sharks. there are a number of short --

charpoy tear because of -- there are a number of shark bites here because of a wildlife and loss of surfers. one study found one-third of shark species are headed to extension, and that has great impact formerly ecosystems because they are the top predator. research has found, without that predator, ecosystems will be depleted and die. megyn: why are they headed to distinct -- extinction? >> officials are pointing to a large, industrial fisheries. a lot of times sharks accidentally get caught in their match, and historically, they have been considered a buy cast.

also at issue is the legal fin hunting. once they are caught, they cut off their fins and the rest of the carcass is thrown back in the ocean to die. they are a delicacy in the east, but many people do not agree with the practice. megyn: what do scientists say need to be done? why do we need them, and how can we protect them? >> when you take the shark out of the equation, coral reefs will die off. the largest printer makes that much of a difference. -- predator makes that much of a difference. a similar situation occurred in

the 1980's because of the unbridled whaling. now experts are tracking shark populations, and they are noticing that overfishing is contributing to the decline of the population. megyn: thank you very much. he has worked to do. bill: this is a fox news alert. awaiting president obama to appear with pope benedict xvi. it will be an historic meeting, the 12th time that an american president has met with the sitting pope. there are agreements on issues, and disagreements on others, clearly. including the speech on commencement day at border dame

-- notre dame. we are reporting from italy. >> that is right, and the president will be here for about one hour. you are right about some points of disagreement and agreement. most notably, abortion and stem cells. i think the vatican is going out of its way to show respect for the american president here. you will definitely see that from pope benedict here, not being a person who likes to bang his fist on the table. it would be interesting, should they meet for longer than scheduled, it would be interesting to hear them talk about that notre dame speech, where he made a point of looking for dialogue and common ground.

we should be getting started in a minute. probably one of the main topics was the pope's letter on economics, helping to open up the market to developing countries, making sure that globalization does not contribute to the difference between the rich and poor. bill: by the way, polling numbers suggest a number of catholics -- majority number of catholics voted for obama, but now that support could be slipping. we will speak to a former ambassador to the vatican about that topic. megyn: a mother charged with breast feeding her baby while she was intoxicated. is that actually a crime? does it justify five years in prison?

megyn: this is a fox news alert. we are moments away from a meeting between the leader of the free world and leader of the catholic church. president obama and michelle obama are set to sit down with the pope any minute now. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- good morning, everyone. great news, we have both president obama and pope benedict. bill: match that! the commander in chief says the disagreements will not stand between the two. we will be watching for that. megyn: major garrett is reporting from l'aquila, but he has gone -- he has gone to the

vatican now. what is the latest? >> pope benedict will be speaking about globalization and what he describes as a world authority to accomplish goals, redistribution of wealth, regulations for the financial markets, which he describes as overly in touch with it with profit and not concerned with the betterment of human beings. i was told by senior officials that he has read the entire report from the pope. he also told me that he wanted to discuss it with the pope. i also asked the president, what are your thoughts about government achieving social justice, and the pope's thought on that subject? this is a bit of that interview in moscow. >> social justice derived from

individuals having the freedom to pursue their own ideas of happiness, prosperity, using the blood, sweat, and tears. >> you will notice the contrast between individual and justice, and the "'s focus on individual world order. -- pope's focus on individual world order. megyn: there has been criticism of president obama and his commitment to religion. he has not picked a church in washington. there was that history with reverend jeremiah wright. he played down the national day of prayer compared to president bush. how does this compare to his meeting today?

>> quickly on that national day of prayer -- the white house feels as if president bush elevated that day above the previous level. on this meeting, the white house treats it as a head of state visit. of course, there is a religious component when you meet with the pope. what i have heard it is -- is he has grown up in the art of catholic teaching. -- arc of catholic teaching. the president has said that that has been something that has motivated him in his personal life and politics. however, he has not become very conspicuous in terms of his religious observance.

he says, over time, they will find a community church in the city. megyn: we are seeing the president arrived in an historic moment. do we have sound? can we listen in? we have sound, but no one is mic'ed up. bill: what a great day for them. megyn: meeting with heads of state, trying to iron out differences between the

president and the pope. bill: the vatican has severe protocol. everything is supposed to happen at an exact moment, according to tradition. this meeting is taking place in the late afternoon. most of the time, the meetings are in the morning. the vatican altered their schedule for president obama, coming out of the g-8 meeting, which shows the level of interest that both men have been talking with one another. pope benedict certainly raising issues such as middle east peace. both have also talked about the reduction of nuclear arms. the issue of abortion? not only in this country, but worldwide, as well as a stem cell research, clearly two areas of disagreement. as we move away from that story,

back in the u.s., the victims of bernie madoff finally getting some of their money back. according to reports, investors have been receiving checks. in all, $231 million will be sent out to compensate hundreds of victims. another 200 million could be sent out in the future, if money can be secured. megyn: it was tough to see, but it looked like one of the cardinals reading the pope. i just needed to correct myself. -- greeting the pope. in the meantime, making money from california. the state has issued 90,000

ious, and ads are popping up on the internet, offering to buy them. some are offering 80 cents on the dollar. the california state treasurer spokesperson says that it is all legal, and with an estimated $3 billion floating around, there is a lot of money to be made. bill: for awhile we had some hope in the stock market, but we cannot look at our 401k without cringing. we are down yet again this morning. the price of oil is rather intriguing because it is dropping, which would seem to indicate that investors are worried about the strength of the economy. also, talk of a second stimulus

plan. what does it mean for you? stu varney is back with us. >> for taxpayers, the administration is desperate for tax revenue. their solution is to tax the rich. if you tax everything from those making more than $500,000 or more, you still do not raise enough to balance the budget, so as taxpayers, we are likely looking at some form of consumption tax. that could be probable. as for those of us with investment accounts, 401k's, ira's, we are in for some tough times. the dow may fall below 8000. it has lost 600 points in the last few weeks. that is because the deficit is

growing, the corporate tax which is looming could reduce the performance of companies. taxpayers could be coughing up more money for washington. investment holders could expect a rough patch in the future. bill: we are not quite there yet, so this is all hypothetical. but if we do, what is the psychological impact of dropping below 8000? >> that would be a pretty big deal for most investors because it is a benchmark. it would be much bigger if we fell below 7000 and approached our low of 6500, which we reached in march.

bill: thank you. have a great weekend. >> i do not like to be the bearer of bad news, especially on friday. and i like your tie. megyn: stay with us this weekend as we prepare for the judge sotomayor confirmation hearings. this sunday night at 8:00 p.m., i will be co hosting a special. we will look ahead to these hearings which will begin monday morning. we are going to give you a preview, some background on her growing up in the bronx, and on from there, and how this may affect not only her hearings, and that even her decisions, if she is nominated. stay tuned for that.

in the meantime, the last major earthquake to strike california, 1994. seismologists have been trying to predict the big one for years, and now a study shows it may not just the overdue, but close. bill: a box office blockbuster. is that helping gm find its way out of bankruptcy? "transformers" could be the reason. megyn: and a possible health tax benefits. who is going to get taxed?

bill: something californians do

not need. the big one could be close. a new study showing a spike in the underground rumblings' along the san andreas fault. they are looking at times been activity and there have been over 2000 tremors in the past four years, producing earthquakes. the scary part is the frequency increased sixfold after those quakes. that means that an earthquake threat could be building faster than expected. the last major earthquake was in '94, and 72 people were killed. megyn: house democrats looking to a few americans to pay for health care reform for all. the idea is floating around congress. the idea is to oppose an income tax surcharge on individuals earning more than $250,000, --

200 that -- $200,000, couples earning above $250,000. is this fair? and joining me now is the vice chairman -- chairwoman of the house committee. this is the way that you have come up to pay for this, a surcharge on the rich. is that fair? >> first of all, we are looking for have come if not more, coming from savings in different government programs. we are looking at medicare, medicaid, and look at improving cost savings. we are looking at about $600 billion coming out of that. most of the money is coming from within the program. megyn: and the other half comes

from taxes? you were going to have an income tax on the rich, are you not? >> not necessarily. one of the option is a surtax on welfare americans. we are looking at what that number might be. you have talked about $250,000 of adjusted gross income, but it could actually end up being higher than that. the fact is, is going to cost all of us more, if we do not do anything now. we're looking to get some savings through some new revenues to bring down the cost of health care, improve quality, and make sure all americans have access. it is an ambitious goal that we believe will save all americans money. megyn: correct me if i am wrong, but every single report i have read said that the number one

plan being considered by house democrats to pay for this, in part, is an income tax surcharge. are you telling me now that every report that i read this morning is wrong, and that is just one item on the table, and you are not leading to an income tax surcharge? >> i am saying that it is definitely one of the options, no question, but it is not going to pay for the whole thing. that is what you are suggesting. saving money matters a lot to americans. megyn: i understand that. you always said that. -- already said that. i want to talk about this tax. you know better than i do, when you talk about taxing americans, they get upset. people who make $250,000 a year,

who do not feel rich at all, in particular, people in california and new york, they do not feel like it is fair at all. here you have a family making $250,000 a year, and that could be a teacher. it could be a first year of professional. now they may have to pay an extra 3.5% income tax to pay for people who do not have health insurance? they do not want to do it. >> first of all, i agree with you that we need to make sure that this affects as little people as possible. i am trying to make sure that the income tax is not 3%, 4%, also. we need to do some work to see how high and how low we can go

with the income tax. i should say that right now we are all paying for the uninsured already. insurance premiums have been rising. we have seen health benefits -- those people you are talking about -- doubling in the last three years. that is not sustainable. if we can reduce these costs by $2,000 a year, that is dollars that can be spent in other ways. we are looking for some trade off. we are paying for it now, but this is the most efficient way to deal with this problem. megyn: some are worried about this public auction. i know lot of republicans have been criticizing this. we had your colleague from the house on the program yesterday, and he was against the public auction, talking about your plan, and he said the following.

he said, under the democrats' plan, if you like what you have, it is going away because the government auction will effectively eliminate your private options. they will not be able to compete. how do you respond to that? >> that is certainly not true. this exchange with a public auction functions on a level playing field. i am working with people who are very concerned about that. if you get a subsidy from the government because you are a lower income family, then you can take anywhere. but in many markets, the fact is, there is no competition, so we need a marketplace. the public auction is just one of them. options will be based on premiums. i believe the insurance industry can respond and create products that they can jump to -- still to this new group of newly

insured people. we are talking about 16 million people who will be looking for insurance. that is a big market for the private insurance carriers. i do not see why they cannot compete with the public auction. if they do not want to injure them because they cannot be profitable, there is a public auction. megyn kelly there is a push by this group to have all the members of the house and senate to pledge to personally read the legislation they are voting on. is that something that you will do? >> i am on a committee that has been meeting for hours and hours on the detail. we always know what we are voting on. megyn: are you going to read every word? >> i have gone over the bill line by line, and i am proud of my understanding of this

legislation. megyn: i did not hear a yes./ thank you. we have to go. because of one word, imagination and reality have merged. because of one word, a new generation-- a fifth generation-- of fighter aircraft has been born. because of one word, america's air dominance for the next forty years is assured. that one word... is how.

bill: breaking news from rome. we are seeing the first images of the president and the pope together. shaking hands during the commercial break, giving a

chance to the photographers. >> [inaudible] >> [inaudible] bill: the two of them will have a private meeting, and then we believe they will meet with the full family.

it is a wonderful, ornate, and such an historical place. we will talk to ambassador flynn in a minute about his visit. megyn: and then the plane crashed near detroit. an amtrak passenger train collided with a car at a crossing, pushing it down the tracks for almost 1 mile. all five people in the vehicle were killed. police say they were all young people. no one on the train was hurt and the crossing had a gate and flashing lights, and they say that it was working during the time of the impact. bill: say hello to the new gm.

the automotive giant emerging from bankruptcy in 40 days. now the government owns 61% of the company. jeff flock is with us on the scene. are they feeling hopeful, more optimistic? >> gm has its lineup here, and has its management team around. we had ed whitaker, the former ceo of at&t, and day test drove these cars. i think they were stunned. there was criticism about changing their logo to green. you do not see any green cards here today. this is the chevy camaro. -- green cars here today.

bill: we wish them the best, and we wish we can get our money back. thank you. doing great work. the world's most powerful political and religious leaders meeting at the vatican right now. we will speak to ed american catholic leader on how the administration is or is not appealing to american catholics. megyn: and a legal debate is buzzing over in north dakota mother busted for breast feeding her child while a drunk. then she is facing five years in prison. does the punishment fit the cut -- fit the crime?

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bill: has been pointed out, an historic moment with president obama meeting with pope. we have that many of the meeting at the back and -- the vatican. it is also the first time they have met since that notre dame controversy. many criticized the university for inviting the president to speak and giving him an honorary degree. the president's views on stem

cell research and abortion are far away from the views of the vatican. with a noun is a former ambassador to the vatican. a majority of catholics voted for the president in november. is that support still there? >> i think it is shifting a little bit because of the fact that a lot of catholics do not believe barack obama has been open to many of the things he talked about in the campaign in terms of reaching up to catholics, the more accommodating, respecting their point of view, -- he may try to do that today, and it is a wonderful opportunity, but he will try to reach common ground on issues they agree on. not on issues that are substantively and pour into the catholic church, such as life issues, and brianna stem cell

research -- embryonic stem cell research issues. there have been a number of these high profile meetings between the president and poker, and of course, it is in the vatican's interest to have good relations with the u.s. but also not compromising their positions and values. on the other hand, it is important that the president, who won the support of the catholic vote, maintained that good relationship. that was the deciding vote that got the democrats and president obama elected. bill: have you been a party to these talks before? have you been in the room? >> yes, i have. when president clinton met with and john paul in denver,

colorado, i was there. i was at the white house when president bush met with pope benedict xvi. bill: give me a sense of how pope benedict runs his meetings? >> he is a very straightforward, very dogmatic, sincere about the raft man. heat -- but direct man. he will not try to spin the news comes as the white house does. --, as the white house does. you almost wish that they had the meeting open to the press, then you could really find out what was happening, rather than someone spinning the news, telling you what happened.

bill: it is the notre dame a share something that comes up today? is that just an american catholic church issue? >> i do not think it will come up. it is a problem of the american catholic church, and particularly universities, have to come to agreement on. this pope, and john paul, were very clear enougabout their relationship with those who do not adhere to church policy. but the vatican does not play those out in public. that is something that is done behind the scenes. with notre dame, that is pretty much a local issue. quite frankly, i wish it was more of a public issue, and i

wish they would discuss it, because that is the only way to have a strong catholic boys in the united states, -- voice in the united states. bill: to whom is this meeting more important? >> i wish more press asked the question. it is far more important for barack obama as president of the united states. his livelihood depends on boats, in large part, things to catholics. he may be talking to pope benedict xvi, but he is really trying to reach out to a catholic voters. bill: thank you.

megyn: this is a fox news alert. we are taking a large -- a look at a large fire in london. we can barely see it from the monitor, but i am hearing that there is a plume of smoke, and it has 60 firefighters tackling it, 12 fire engines. it is taking place in a building on dean street in soho. it is tough to see anything here. we are trying to get a better look. it looks like a bunch of clowns in the sky. -- clouds in the sky. bill: "the new york times" is

beginning to consider a $5 fee for access to their website. they are asking subscription holders to pay $2.50. they are looking for additional sources of revenue in this tough time. megyn: a new way to cut spending in california. los angeles wants to stop providing child care services to parents. is that right? anita vogel is reporting. >> this is all part of the cal works program, the welfare to work program. los angeles county says it is too expensive for the county to prevent -- to continue to provide in-home child care for

mothers receiving welfare. county officials have approved this, and basically they say they do not have enough money to do it. megyn: let me clarify. if you are on welfare, and you are a mother in california, you can get your welfare check, as well as child care, as you look for a job? >> they licensed, exempt state worker will come into your home to take care of your children. as a welfare participant, you can then participate in job- training or spend some time getting a job. the goal is to get off of welfare. in these tough times, they are saying that they do not have enough time for these county workers. it would be cheaper for you to stay home and take care of your child. megyn: i think a lot of mothers are shaking their head.

the old system was, in a way, an incentive to stay on welfare because you get free child care, and you just need to look for a job. some would call it the way to milk the system. >> yes, there are some that would say that, but the goal of the program is to get people off of welfare. proponents of the program say that it has been very successful, moving a lot of people from assistance into the work force. they even cited a couple of examples to me of the women who went on to become lawyers. they say by taking away this program, you are taking away the spirit of the program, but they have to make cuts somewhere. megyn: thank you. she called police after a

domestic dispute with her boyfriend. police arrived and she is breast-feeding her baby, and police arrested her. but there is a catch. she is facing five years behind bars. bill: what happens when elsie realizes she is on the way to the steak house? >> this is an emergency.

bill: if you are squeamish, do not watch this. gored to death at the running of the bulls in pamplona. witnesses say one bull made its

way from the pack and started charging backwards. paramedics hetry to save the man, but it was too late. apparently there is a videotape and pictures of this. 15 people have been killed since they kept track. record keeping has happened since 1924. megyn: facing hard time for bruising while breast-feeding. please respond to domestic dispute in north dakota. they arrived to find this woman nursing her six-month old baby. at the time, they say she was clearly intoxicated. now she has plead guilty to child neglect and is looking at five years behind bars. is that fair?

let us ask our panel. i do not know what it is about this panel, but we are often talking about breasts. [laughter] this woman has a long criminal history, only 26 years old. lis, did they do the right thing? >> absolutely. she greeted the door breastfeeding, holding the baby upside down by its lead. -- leg. the breast feeding was just the icing on the cake. no one is saying that if you breastfeed well you are drunk, you are going to jail. not only that, she was abusing her child in front of the police. megyn: they did not administer a

blood alcohol test, just observed her and made the conclusion. >> police come to conclusions all the time. if you are exhibiting signs that you are drunk when you are driving, probably you are drunk. this woman needs some resources to become a better mother, obviously. megyn: she needs help, not prison. >> at this point, she can get both, but that baby is in danger. by definition, you cannot take care of a 6-month-old child when you were drunk and intoxicated. megyn: i am all for helping this

woman, but you look at her rap sheet -- she is 26 years old. since she turned 18, she has been cited for violating the law 27 times. theft, forgery, contempt of court, now child neglect, which she has pleaded guilty to. there is a question that she should be allowed to be anyone's parents. >> not remember parenthood is all lot like the assumption of innocence. you'll are presumed to be a fit parent until proven otherwise. it would not be a bad idea for cps to get involved. this is a good idea. she need to learn how to be a good parent, and that does not

have been in jail. megyn: we are not talking about arresting a woman that has a glass of wine and then breast feed her baby. but it is a sliding scale. when we were born, our mothers were drinking and smoking. >> do not talk about my mom. [laughter] megyn: and the argument was that they just did not know. when you drink alcohol and breast feed, we understand that it gets passed along to the baby. >> the mother is directly providing alcohol to the baby. these days, everyone knows --

not even in moderation -- but when you are pregnant, absolutely not. megyn: even today, in europe, women regularly drink alcohol when they are pregnant. over there, it is expected to have a drink or two. where do we draw the line? >> i do not know, honestly. in a case like this where you have someone who is visibly intoxicated, holding their baby by one ankle, speaking to the police because he just punched you, it is time to get some help. megyn: i do not anyone thinks five years, but should she go to jail? >> i think she should go for six months. a bit of shock therapy. you get some rehabilitation, and

then you can be a fit mother. >> i do not like separating babies from their mother. i am going to suggest a lot of help instead. megyn: the police did the right thing interesting this woman. she had no business in danger and her child and has repeatedly shown in this regard for the law, but five years in jail? no. parental training, supervised visits, some training, and maybe some jail time? perhaps. bill: breaking news from london. we now have pictures of this fire which it is said to be enormous along dean street. 12 fire engines are surrounding the area, trying to put the fire out. part of a four-story building

is in flames. much more after this. . 90s slacker hip-hop. ♪ singer: buckle up, everybody 'cause we're taking a ride ♪ ♪ that can strain your relationships and hurt your pride ♪ ♪ it's the credit roller aster ♪ ♪ and as you can see it kinda bites! ♪ ♪ so sing the lyrics with me: ♪ when your debt goes up your score goes down ♪ ♪ when you pay a little off it goes the other way 'round ♪ ♪ it's just the same for everybody, every boy and girl ♪ ♪ the credit roller coaster makes you wanna hurl ♪ ♪ so throw your hands in the air, and wave 'em around ♪ ♪ like a wanna-be frat boy trying to get down ♪

bill: it is tradition for the pope and president to exchange gifts, and oftentimes we are kept in the dark as to what they will be. but greg has his hands on some

information from the vatican. what is going on? >> they are at a head of state meeting right now. they are exchanging gifts and photographs. the president will bring a gift. the gift to the pope is pretty typical. he is giving a copy of his most recent book. the president's chose a good one on this one. the fund or broke of -- they found a relic of saint john, and missionary going to the united states, they had a stole, a thing that goes ready priests soldier -- goes around a priest shoulder as he administered

sacraments. that is a present that will be appreciated here in the vatican. the meeting is going on longer than expected. we expect him to come out now after 25 minutes together. it has now been about half an hour, and obama is little to leave within five or six minutes. -- obama is scheduled to leave within five or six minutes. it could take longer than that. bill: thank you. we will pass on developments. megyn: one of three service members use tobaccos. pentagon officials want to change that. bill: did you ever lose your cool with a 911 dispatcher, trying to figure out what you're talking about? while this is about a weight workout. we report.

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bill: from central london in the soho district, the aerial picture we have been waiting on. more than 60 firefighters, 12 fire trucks have been sent to the scene, about 4:00 in the afternoon in london. in the middle of the day, they are doing battle with this fire. we will get updates to make sure no one is injured down below. megyn: 8 wisconsin woman really wants a wayward cow call. here is the 91 col. -- 911 calle. -- 911 calle. megyn: she is very, very upset

about the cows, bill. [laughter] bill: i think you are right about that. i do not know if the cows are so we were as much as she is wayward. wayward. ♪ ♪ bill: next week, we can call

this guy up and get him on television. megyn: just so you know, that 91 woman was cited by the cops were misusing 911. we have got to go. that was a good ending. have a wonderful vacation. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- --www.ncicap.org--