start the day. simple. captioned by the national captioning institute -- www.ncicap.org -- >> we're the oak ridge boys. you are watching "fox & friends." steve: that's right. we got the oak ridge boys with us. also ainsley and clay. we start with a fox news alert. pope benedict xvi taken to the hospital after he slipped and fell during his vacation. right now we've got the very latest from our own greg burke. what happened to the pope? where was he? i see you're in rome right now, i believe. >> i'm in rome. we've never been able to convince our bosses that we should go on vacation with the pope. a lot of italians do that and once in a while some news happens like this. they're telling us the pope slipped overnight in his chalet in northern italy.

he had just left for vacation on monday. a lot of alarm bells going off because the pope is 82 years old. howeverring, they are telling us it's nothing serious. they're going to keep him in the hospital for a couple of hours. we understand a slight fracture on his list. the good news, people seeing him going into the hospital, said he walked in on his own with the help of an aide. but he is being checked over completely there. it appears that the worst that's happened is on the wrist. 82 years old. a lot of alarm bells going off, but it's clear he didn't fall and knock his head or anything like that. people relieved. however, it is the hope and his age what it is and people are concerned. steve: all right, greg burke with the latest on the pope. we thank you, sir. ainsley: another break news story. a pair of deadly bombings kills at least eight people in jakarta, indonesia. at least one american is among the dead. suspected suicide bombers set off powerful blasts at two luxury hotels, one through the

ritz carlton. minutes later the marriott was hit. no group so far has claimed responsibility but investigators say it does have the hallmarks of an al qaeda-affiliated group. also, the top republican on the senate judiciary committee expects judge sotomayor to be confirmed quickly for the supreme court. jeff sessions of alabama says it will happen before congress goes on vacation next month. after three days of grilling, sotomayor won praise for both republicans and democrats. tom coburn of oklahoma says he remains deeply troubled. also unhappy, some firefighters in new haven connecticut believe that judge sotomayor decided against their promotion case on racial grounds. two of those firefighters will join us next hour to talk all about it. and families of september 11 victims are urging president obama to reverse his decision to close the guantanamo bay prison saying it would only delay the effort to prosecute the men responsible for the plot.

>> to mr. obama, senators and representatives, please keep guantanamo bay open and the commission hearings continuing. you must pursue justice. ainsley. the u.s. now holds about 130 men at guantanamo. the cheel military prosecutor said he is prepared to file war crime charges against about 60 of those guys. and two people killed when a stage being built for madonna's world tour collapses. the sellout tour was supposed to kick off in france this coming sunday. now it has been canceled. one worker was killed instantly and a second died later from his injuries. at least eight others were injured as well. investigators are trying to figure out how this all happened. also, starbucks getting an extreme makeover and a double shot now will take on a whole new meaning, guys. because they are going to serve alcohol. steve: starbucks? ainsley: yes! steve: i'm going right now. ainsley: it's an experiment that they're trying in seattle

if if it all goes well, it could come to a starbucks near you. they're not going underground but they are ditching their logo at those stores. and the new names will reflect the neighborhoods that they are in. steve: this is not surprising. they have that starbucks liquor. ainsley: that you buy at the liquor store? clayton: yeah. not that i go. but they have it so this is not surprising. let's talk a little bit about this. looking at the e-mail, we he know that you are concerned about the amount of money that the federal government is spending right now. and the president says, you know, this is going to get us out of that hole we're in. well, it turns out joe biden was scheduled yesterday to go and speak at a community college down in richmond, virginia. well, that particular area is the congressional district for eric cantor, an uprising republican in the house of representatives. and mr. cantor sently had a premeditative attack. before joe biden showed up, he wanted to remind people, you

know what, this stimulus thing is not working. he told reporters, mr. cantor did, that the stimulus plan will destroy small businesses and deepen unemployment. so that was the stage that was set before joe biden sailed into town yesterday of. clayton: the mistake was putting out the remarks ahead of his speech. "the washington post" had parts of those remarks. cantor gets parts of these remarks in his own home district and comes out with this preemptive attempt. steve: point biby point. >> we're going to go bankrupt as a nation. so when i say that people say what are you talking about, joe? you're telling me we got to go spend money to keep from going bankrupt? the answer, yes, i'm telling you. clayton: yes, spend more money to make jobs. steve: we have to spend more money to keep from going bankrupt. wait. i remember in college that whole economics thing that i took. if you keep spending money, you

do go bankrupt. so how do you spend money to keep from going bankrupt? ainsley: it's that old adage, in order to make money, you spend money. right? spend money to make money? clayton: that's what i learned. ainsley: that's what i'm telling my credit card company. clayton: he also in the speech went on to say -- he kept regurgitating his whole line over and over again that they inherited this from the bush administration. no one doubts they inherited a mess. but the experts agree the way out is not to spend more money. this is on their watch, the obama administration watch, keep spending more and more money, printing basically monopoly money out of thin air when there's nothing to back it up anymore. steve: did he get a warm reception in richmond. perhaps part of the fact is i do believe he announced that richmond police would get $1.6 million more in stimulus money. and by the way, not only is it working, but it's going to work here because here's $1.6 million.

ainsley: he's saying more law enforcement are getting more jobs, teachers, health care individuals because of the stimulus package. so he's saying it's working. clayton: cantor has been leading the charge, as pointed out, on the message. the only message that has stuck on the bomb obama administration, saying we're creating jobs, cantor saying, where are these jobs, we don't see them. steve: these are government jobs. how many jobs are being created in the private sector? not so much. over the last week we've been talking as well about the health care initiatives because it has passed the house and now there's trouble in the senate, apparently with some democrats. but early this friday morning the ways and means committee passed health care reform by a margin of 23 to 18. interestingly enough, three democrats said, we can't go along with this. so three democrats jumped onboard with every republican on the committee. they said we can't go along with

this. in fact, here is one of the democrats. >> we're very concerned about how we're paying for this relate care reform. it's one of those important priorities. but we have to make sure we're not just doing it on the backs of small business. the concern is for the surcharge, 5.4%, the 8% tax. that really adds up for small business and puts them at a disadvantage to corporate america and multinational corporations. it's something we've got to fix from the bell. clayton: some of the specifics is a little bit different than the senate. but they can agree on one thing. they don't know how to pay for it. steve: they just want it. clayton: they just want it. they don't know how to pay for it. the bill would impose $544 billion on new taxes on families making more than $350,000 a year, yet they can't figure out how to define the coverage for those uninsured which was a major part of the obama campaign, we want everyone insured. that one caveat is the thing they can't figure out how to

cover yet. ainsley: the director of the nonpartisan congressional budget office even said this is not going to work, this is a nonpartisan. he's saying it could make the nation's bleak budget even worse. steve: that's right. in fact, the president during the campaign said the whole idea, we can drive costs down. so the congressional budget office looked at it. they're just trying to figure out, you know, what it's going to cost down the road. they said this could actually drive prices up so one of the very basic arguments of the president is being disproved by the congressional budget office. clayton: and on the campaign, he said we need to listen to the congressional budget office. steve: unless they say that. ainsley: unless they say it's not going to work. clayton: in fact, responses -- he said, i don't know, what why he just run for congress then if he knows. why doesn't he run for congress? steve: and a cautionary note. if you were reading foxnews.com

and saw it yesterday, there was a headline that in new york -- if this goes through this surtax on america's most successful, if it goes through, here in new york where we are sitting, talking to you right now, the combined tax rate for federal, state, local and the surtax is close to 60%. so 60% of what you make if you're in this particular range, goes to the various governments. ainsley: e-mail us and tell us what you think. we're curious. clayton: at least things aren't expensive here in the city like $10 for a sandwich at mcdonald's. steve: how much is a double shot at starbucks? clayton: $12. it's expensive in the city. when the cops got that call for britney spears a few years ago, having to be whisked away to a hospital under weird circumstances -- steve: had she shaved her head at that point? cloit cloi i think she had. she was on her way to the psych

ward. now mischa barton had made a call and had authorities come to her house where she looked odd and bloated and was whisked off it a psych ward, using the same police code that was used for britney spears. ainsley: it just allows the authorities to hold you for you will to 72 hours if they think you are a danger to yourself. last year she was arrested for d.u.i. and for marijuana possession, checked into rehab as well. clayton: she was supposed to be going to a movie premiere here in new york city. steve: they were called to her house yesterday afternoon. her -- ainsley: wednesday. steve: that's right. publicist says -- and this is reported by "the new york post" page 6, police were involved due to ms. barton's celebrity status to safely transfer her to medical treatment as per doctor's orders. she is ok now and resting.

clayton: they said she was bloated and looked odds. her handlers, they said it was because she just had a wisdom tooth taken out. steve: and you call the police for that? clayton: apparently. steve: straight ahead on this friday telecast. ainsley: pricetag for the obama care, it appears the middle class could get the squeeze as well. clayton: and a school bang cell phones. it's charging students for violating that policy. some parents now steaming about it. we're going to talk to one family who's so mad they paid their fine in pennies. ( conversation )

garth, you're up. hold on, i'm at capitalone.com picking a photo... for my credit card. here's one from my prom. oh, what memories. how 'bout one from our golf outing? ( shouting ) i know, maybe one of my first-born son. dad, mom says the boys gotta go.

personalize your card by uploading... your own photo at capitalone.com. what's in your wallet? ♪ ♪ so blessed with inspiration ♪ ♪ i don't know much ♪ but i know i love you ♪ and that may be ♪ all i need ♪ to know (announcer) customers love ge aircraft engines almost as much as we love making them. innovation today for america's tomorrow.

steve: welcome back to "fox & friends." clayton: here's some news stories. the u.s. army wants you, the pentagon, considering plans to expand the ranks of soldiers by 30,000. operations in iraq and afghanistan have drained stateside units and the army wants a temporary increase to offset that. france's first laided will be playing radio city music call. karla bruin yi is joining an all -- bruni is joining them. french president sarkozy will be in the audience. steve: president obama suggested taxing the wealthy for health care. take a look at this poll we've got on the big screen right there. a lot in the middle class think that they will wind up footing the bill because a new poll suggests that 78% of u.s. voters believe taxes will be raised on the middle class eventually in order to pay for health care. what would it do to the economy?

for this let's talk to our political panel. we have the former governor of maryland, robert ehrlich, also "the new york post" columnist kirsten powers, and the chief business correspondent for "u.s. news & world record," rick newman. you're an economist guy, right? >> yes. steve: you ever hear anybody like joe biden saying we have to spend more money to keep from going bankrupt? >> the money is flowing from every direction. one of the reasons people are so suspicious of the health care plan is because we know how much it's going to cost, at least $1 trillion, we hear $100 billion a year for 10 years, but we're not hearing how much it's going to save. we hear let's spend more and the dubious savings. steve: governor, when you look at this big graphic right here, according to rasmus and the new poll, 78% say it's somewhat likely that the middle class will wind up paying for this. right now they're saying only the rich are going to have to

pay for it. but a lot of people -- >> thank god for the rich, by the way. that's the problem. we need more of them. but there seems to be this policy attack. the bottom line is a lot of people are acclimated to washington in phony numbers. they're not buying necessarily the numbers they see from washington. c.b.o. is neutral. it's nonpartisan. and now the democratic leadership decides not to pay attention to those numbers. steve: kirsten, why is he wrong? why is the governor wrong? >> never! >> it's the perception by the middle class that this is going to happen. i think one of the problems -- and wrote a column about this, i think last week, that obama has not done a good job of selling this to the middle class. mostly what democrats talk about is we're going to cover the uninsured. well, most middle class people have health insurance and most middle class people are happy with their health insurance so i think that this sort of reflects a skepticism of what's going on? what's in it for he?

am i going to end up paying for something? steve: the congressional budget offices say the president says it's going to save money but could cost us more money. that flies in the face of what he's been saying. >> essential with their argument has been that they have to get health care done in order to get the deficit under control. this is what their economic advisors are telling them. there's a lot of disagreement over whether that's true or not. but that is central to their argument. steve: political panel, stay put for a minute. we're going to continue the conversation. does president obama need a political do-over? should he hit the reset button? and are his campaign trail promises not holding up? quality and reliability...

are more than words here. it's personal. i have diabetes. rodney's kid too. so we're so proud to manufacture... the accu-chek® aviva meters and test strips... here in the u.s.a. plus, we've proven you'll waste 50% fewer strips... when you use our meter, which means greater savings... for people with diabetes, like me.

>> there are a lot of republicans out there who i think are disenchanted with what's happened over the last seven, eight years. they, too, want change. and part of my job as president will be to reach across the aisle and say to these folks, you know what? we may have differences but if we disagree on 10% of stuff and we agree on 90%, let's work on the stuff we agree on. legalities move this country forward -- let's move this country forward. let's get this thing gooding. steve: that was the president during the campaign. but is the man we have in the office today the same guy who promises to bring the country back together? does he need a political do-over. should they, as hillary clinton brought out, hit the reset button? kirsten, this is not the same guy we heard on the trail. >> well, he has reached out. i don't think the republicans are that interested, frankly, in coming together. so i think we initially saw all of this outreach that he did and

the reality is that people don't -- republicans have a point of view that's different than democrats. steve: but why is it with stuff like cap and trade, energy reform and even the health care stuff -- i think with the debate yesterday in the house ways and means -- or on the senate side, there were so many republican amendments. at the end of the day they didn't vote on any of them. they all went down in defeat so if they want to listen to republicans why don't they take some of their hints? >> the fact is i agree with you, by the way, he just has a fundamentally different view. there's nothing about his history, his voting record in the state legislature, in the united states senate, his rhetoric on the campaign trail was pretty far left. that is the agenda that they're following. that's what he believes. his appointees reflect it. so i think it's consistent with what he's always been about. steve: rick, during the campaign people were saying here's a guy who could be president, who has no executive experience, when

does he become president, will he be able to implement these dreams? >> but now he's an implementer and one of the most ambitious implementers in the last 100 years, trying to rival f.d.r. with this huge slate of programs. >> think he's just trying to do too much in too short a time i think voters are overwhelmed. we've been hearing about one program after another. no one can remember the names of these things. financial reform. steve: wasn't it hugo chavez who says i hope he keeps coming up with these great ideas because america is going to go bankrupt? >> cap and trade probably is the capper at this point. nobody understands this. we need to focus on sort one thing at a time. everybody knows we need to get the economy fixed. to talk about something that might, it's not clear. will it cause jobs? it's going to cost money. this is the wrong time to be talking about things that might -- when the economy is growing at 4% again, that's a good time maybe to start talking about this. steve: so maybe now, governor is a good time to hit america's most successful with a 5.4% tax.

>> it's always a bad time to do that. there's also another element. there's a bunch of blue notes that got elected. they're scared to death. they don't buy into cap and trade. they don't buy into the stimulus. they voted for it. they're not gooing to buy into taxes into stimulus, too. but the fact is they're between their leadership, nancy pelosi and harry reid, which is a difficult place to be in politics. >> think about these programs. voters aren't sitting around with a check list reading about these. they got a lot of work to do. some people are now working two jobs, whatever they have to do. who has time to figure this out. steve: the president's big problem is not the republicans, it's the democrats. it's those moderate democrats who say this is too much right now. >> but the question is whether in the end -- they make a lot of noise, but in the end will they go with the president? i think oftentimes they do -- steve: jumped on the republican side. >> they tried to get things changed around the margins and

to reflect it. but are they going to be willing to stop the president's agenda? >> bunch that do will be walking out of congress. steve: you think that's going to happen? >> i hope sox. steve: he is the former governor of the commonwealth of maryland, robert ehrlich, kirsten powers, rick newman. thanks very much. >> pleasure. steve: now that we're done with that, bring on the dancing girls! that's right, government employees get treated to a fancy trip on your dime. we're going to tell what you your tax dollars are spent on. also, somebody came in to give a funny talk. then talk about tackling a tough assignment. hear how a reporter becomes part of the story of three boys who disappeared. and happy birthday to the hoff, david hasselhoff today is 57. 57 candles to blow yo out. taking its rightful place

in a long line of amazing performance machines. this is the new e-coupe. this is mercedes-benz.

[ door closes ] [ footsteps ] [ man sighs ] whew! a lot goes through your mind after an accident. but with liberty mutual, insurance issues won't. man: man! because we offer unlimited rental coverage, new car replacement, and accident forgiveness to help ease your mind. and that's our policy.

liberty mutual insurance. just don't feel like they used to. are you one of them? remember when you had more energy... for 18 holes with your buddies? more passion for the one you love? more fun with your family and friends? could be an easily treatable condition called low t. c'mon, stop living in the shadows. you've got a life to live. so don't blame it on aging. go to isitlowt.com to find out more. i had a great time. me too. you know, i just got out of a bad relatio... it's okay. thanks. goodnight. goodnight. (door crashes in, alarm sounds) get out! (phone rings) hello? this is rick with broadview security. is everything all right? no, my ex-boyfriend just kicked in the front door.

i'm sending help right now. thank you. (announcer) brink's home security is now broadview security. call now to install the standard system for just $99. the proven technology of a broadview security system delivers rapid response from highly-trained professionals, 24 hours a day. call now to get the $99 installation, plus a second keypad installed free. and, you could save up to 20% on your homeowner's insurance. call now-- and get the system installed for just $99. broadview security for your home or business - the next generation of brink's home security. call now. >> ♪ ♪ dig a little deeper in the well, boys dig a little deeper in the well you've got to dig a little deeper in the well dig a little deeper in the well

♪ clayton: rocking our plaza for our friday all-american concert series, the oak ridge boys out there live right now. whoa. steve: they've come out with i think they're 30th studio album. it's called "boys are back." and the oak ridge boys are back on "fox & friends" on this friday in july. ainsley: it makes me want to sing that ♪ oom bop ♪ my heart's on fire♪ steve: that is the lovely and talented ainsley ear hart in for gretchen. i said maryland was a commonwealth. the governor said thanks for making us a commonwealth. i got into an argument. you are commonwealth along with -- oh, wait. i was thinking of virginia. they're right next to each other. sorry. clayton: don't pick on his state. here's a big story. you know who can party big time?

steve: oak ridge boys. clayton: oak ridge boys and social security agency. these guys throw a heck of a bash. it's the government agency that's supposed to be nearly insolvent. they're bordering on collapse. steve: the fund. clayton: the fund in the sses administration so what do they do? they fly everyone out, all of these executives for the agency, 600 of them, out to arizona, throw a big, lavish party that cost nearly $1 million at thability more resort. they're allowed to bring spouses, dancing afterwards. steve: what's their motivation? clayton: they need to have this conference and say we can't do it over teleconferencing. ainsley: a motivational conference for the managers. hey, i could throw a big party, too, if i had $700,000 of your money. clayton: exactly. taxpayer money. it's not money out of their own pockets. we're paying for them to go there and have a face-to-face

meeting. steve: i think according to my sources some were able to take family members. in addition they went to the casinos and had a dance party afterwards. clayton: that's what i love. the best part is they spent all of this money on a 20-minute dance party following the conference. steve: maybe they were winded. at my age i can only dance for about 20 minutes before i have to sit down. clayton: don't you think for us tall, lanky white guys it takes us 20 minutes just to go out and dance. steve: usually two drinks. ainsley: i'd like to see that. the person who turned this big party, they said, why did you do this? they said we couldn't do it over teleconferencing. we had to be face-to-face. it was very important. steve: let me get this straight. the president of the united states has said famously we are out of money. but then again, as we highlighted today, joe biden yesterday said that we've got to spend money to keep from going bankrupt. so essentially -- ainsley: that's what they're doing.

steve: exactly. i do know the people in the travel and leisure industry are having a tough time. they're stimulating the economy out there. ainsley: remember when the banks got in trouble for doing this very same thing? clayton: because we were bailing them out. steve: such a good point. let's watch and see how many of your mainstream media news outlets actually cover this story. the federal government had this great big perka palooza. clayton: don't hold your breath. we're going to get the video of you dancing at the christmas party. steve: i thought we destroyed that. we got a fox news alert. pope benedict xvi on vacation in italy apparently took a fall and wound up in a nearby hospital. the 82-year-old pontiff apparently fractured his wrist. but the vatican said the injury does not appear to be serious. didn't hit his head. apparently just broke his wrist.

clayton: the florida couple of 17 children who were murdered in his their own home will be laid to rest today. most of the suspects now under arrest were day laborers. it's believed they spent 30 days training for this attack which was planned, except for one small problem. the person whose job it was to disable that surveillance system that caught them on video appears to have backed out at the last minute. people are wondering why. cold feet? officers still looking for him and perhaps one other suspect involved. ainsley: well, he is accused of withdrawing millions of dollars. now the "money" about to cut a deal. the feds telling the judge they plan to let him plead guilty instead of being indicted. one of the people that bernie scammed, a parentally is trying to reverse the damage that was done. robert lafin is giving $5 million of his own money to restore the pension fund of his employees. nice guy. clayton: talk about a tv

reporter getting the scoop. jennifer was work on a story who went missing. that's when she noticed three kids sitting on a sidewalk. she immediately called police. it turns out the boys were trying to hide from searchers because they thought their parents might punish them for stay willing out passed curfew. the boys are now back home with their families safe and sound. ainsley: didn't want to get in trouble. well, there's bat night, cat night, and now one team ordering up a special delivery for pregnant women. the brooklyn cyclones now hosting pregnancy night. the bellies in baseball promotion includes a contest called, get this, base foot and press nant. expectant moms can run the bases without their shoes on and watch the game. there's offering ice cream, pizza and pick sphldz, too, to the pregnant women who want more than just a hotdog. clayton: and word next year they're doing breast-feeding night. ainsley: you'll be there. clayton: no.

let's check in with steve who is outside. steve: yes. i'm out here by the oak ridge boys tour buses. look who's right next to me. i'd like to introduce to you sergeant first class brad turner. if you get the pentagon channel, you probably recognize him from the tv show "the grill sergeant." >> that's right. good morning. steve: thank you for your service. what are you going to serve us today? >> some gumbo. steve: really? >> oh, yeah. steve: gumbo is great in the summer. >> well, gumbo is any season food. steve: what is special about your gumbo? i understand you are one of the top chefs at the pentagon and you've cooked all over the military. >> especially if i tell the story. yes. yes, i am. this particular recipe i made so anybody can make gumbo. anybody. steve: and many people watching right now. how do we start? >> well what we started with, there's a party going on in the pot right now. steve: i've heard that. >> there's a party going on. i just want to give you a little glimpse of that see how things

are working together? steve: it is. >> yeah. we started with the cajun, the peppers, celery, onion. got everything all nice and chopped up and everything. and then we have some shrimp in there, some crab meat in there, some chicken stock. and a beautiful root. you got to have the right kind. steve: the rue is butter and flour? >> butter and flour, vegetable oil and flour. steve: legalities get to chopping. do some stuff. >> i'm telling you. this is a beautiful thing going on right here today. i want to thank y'all for having me out here today. if you want the recipes, i have a beautiful vegetarian gumbo. you know, for the vegetarian american. and you can find that at pentagonchannel point meal. steve: what other shows do they have on the pentagon channel? >> there are wonderful shows for the new soldiers.

we do segments on how to tour new york. steve: on leave? >> yeah when they come here on leave. steve: have them stop by fox news channel. we support the military. >> not a problem. i'm sure they'll put it on the cycle if they have access to it. then we have recon and other documentaries. steve: weren't you in a cookoff or something with bobby flay? >> yes, i was. steve: he asked for seconds. >> let's just say he enjoyed my chicken. he enjoyed my food. that was just a wonderful thing for me. steve: i know good gumbo takes a little while to prepare. so, sergeant, you continue to do some chopping and we'll do some talking. let's go back inside to our buddies. clayton: do you ever get to sit down? you're standing up for these politic segments, outside with gumbo. steve: i lost my chair. clayton: tough new rules against cell phone use in schools. the schools where they're not

only -- i don't know. they don't have the right to confiscate them. they may have the right to confiscate them but they're also charging students if they want them back. is this a bit much? we are going to talk to one angry family who got fined about this. ainsley: and he can now wiggle his finger and grab a tennis ball. we'll tell what you the man who got the first two hand transplant really wants to do most. clayton: and rocking our plaza. the oak ridge boys. take it away. >> ♪ the one that i love from the u.s.a. sitting next to me my baby is american-made born and bread in the u.s.a. from her hair to her hot legs

my baby is american-made ♪ what's up, smart? being smart. yep. just booked my 10th night on hotels.com, so i get a night free. you are smart. accumulate 10 nights and get a night free anywhere. welcome rewards. smart. so smart. if we don't act, medical bills will wipe out their savings. if we don't act, she'll be denied coverage because of a pre-existing condition. and he won't get the chemotherapy he needs. if we don't act, health care costs will rise 70%. and he'll have to cut benefits for his employees. but we can act. the president and congress have a plan to lower your costs and stop denials for pre-existing conditions.

steve: welcome back. the family of convicted killer scott peterson is asking the public to help pay for his appeal. peterson is now on death row for murdering his pregnant wife laci and their unborn son six years ago. on the family website they are asking for $95,000 for an investigation to support the appeal. and wall street is on death watch for c.i.t. group, one of the nation's biggest commercial lenders. it has hired new york's largest law firm, apparently to put together a bankruptcy filing. the bank got $2.3 billion in bailout money but has refused any more -- been refused anymore by the government.

and apparently they need it. clayton? clayton: some students heading back to school will face a classroom crackdown on cell phones. one texas school district students will pay a fine for confiscated phones so far over $100,000 has been collected in one community. ainsley: well, donna is not happy about the fine. she had to pay them in a unique way, she says. she's joins us now with her kids. thanks for joining us and to your children as well. >> thank you for having us. ainsley: you're welcome. you've had to pay the fines. your kids' cell phones have been taken away four times what do you say to those folks out there, your neighbors, or people in your community that are asking why the kids even have cell phones at school? >> well, i got my kids cell phones because in junior high they had activities after school. and after they were done their activity, they'd go to th to the

to call me to pick them up. the office started complaining that the children were using the phones and were no longer allowed to use the phones to call home. so that's why i got my kids cell phones to call me after their activities. clayton: what your mom says, she had the cell phone for use to be using after school. tell us what happened when you had your cell phone taken away from you in the hallway. >> i was standing in the hallway and i was getting a number for a project that we had to do, that was due next week. i got the number and i was putting it in my phone. and the principal tap on hi showld -- my shoulder and said give me your phone. i explained to him what i was doing and i wasn't using it, i was just putting the number in there. he took it. clayton: took it away, too. and t.j., what happened to you when your phone was taken away? >> just tapped me on my shoulder and took it from me. i asked him why he was taking my

phone. i had to get a number because my mom was trying to get in contact with me to tell me she was picking me up. and then he took it and i had to go to the office after school and call my mom and she never picked up, so i had to walk home in the rain. it was like 4:30, i think. i had to walk home in the rain. i was soaking wet. ainsley: ashley, my question for you is, could we just turn the phone off and keep it in the backpack in case there is an emergency, you can pull the phone out then? from what i understand i know you think the administrators are going overboard, but couldn't you just have it turned off in your backpack and only pull it out if you needed it? >> yes, ma'am. but i don't think can you even pull it out even if it was off. ainsley: you're saying anytime you pull it out, they grab it? >> yes, ma'am. clayton: it sounds like the school has made a lot of money. donna, you're so fed up with these fines that what did you

do? >> well, the first time i got the -- the kids told me their phone was taken away, i wasn't about to wait until the next day to get it, so the bank was already closed. so i went up and got a jug of change that we keep in the house and just dumped it out and started counting. well then, the second time it happened, i was angrier because when ashley got her phone taken away, the day before a student in the same class got hers confiscated but was given it back. clayton: seems to be a double standard. so the school's making a lot of money off of this. >> correct. clayton: i guess the moral is keep the phones in your bags. donna green, ashley, t.j., thanks. we appreciate it. >> thank you. clayton: i'll call you later. keep your phones on. ainsley: after hours. he claims it saved the banking industry from great peril but did treasury secretary henry

paulson commit a crime? the grilling from the lawmakers coming up next. ♪ well i was shopping for a new car, ♪ ♪ which one's me - a cool convertible or an suv? ♪ ♪ too bad i didn't know my credit was whack ♪ ♪ 'cause now i'm driving off the lot in a used sub-compact. ♪ ♪ f-r-e-e, that spells free credit report dot com, baby. ♪ ♪ saw their ads on my tv ♪ thought about going but was too lazy ♪ ♪ now instead of looking fly and rollin' phat ♪ ♪ my legs are sticking to the vinyl ♪ ♪ and my posse's getting laughed at. ♪ ♪ f-r-e-e, that spells free- credit report dot com, baby. ♪ it's what doctors recommend most for headaches. for arthritis pain... in your hands... knees... and back. for little bodies with fevers.. and big bodies on high blood pressure medicine. tylenol works with your body...

in a way other pain relievers don't... so you feel better... knowing doctors recommend tylenol...

steve: did former secretary of treasury, henry paulson, cross the line in pushing bank of america to buy merrill lynch even though it looks like merrill needed billions and billions and billions of dollars to survive? that's what congress wanted to know. listen. >> ken lewis didn't characterize it as a threat. >> actually, he did characterize it as a threat. he managed to say that he didn't feel threatened while receiving a threat. >> i prefer to characterize it as exploiting the fed soup -- explaining the fed supervisory authorities to him. steve: oh, really? fox news senior judicial analyst

judge andrew i napolitano joinss right now. ainsley: good morning. steve: it sounds like he's saying, yeah, we pressured him, strong-armed him but it all worked out. >> the government says to bank of america, we want you to buy merrill lynch, we'll give you the cash with which to do it. the merrill lynch name is golden, we can't let it fail so they sign a contract for $50 billion. the contract has a 30-daytime period in which bank of america can decide is it really worth $50 billion? they have an option to get out. it's called the material adverse change clause,

clayton: the mere fact that he said anything to them, you say, rises to the level of extortion. >> it's worse than that, clayton. these are the people that are supposed to enforce the laws of the country. the secretary of the treasury. sheila bayer, the head of the commission, ben bernanke, head of the reserve. among those laws is if a corporation is going to waste money or engage in some risky behavior like buy something for $50 billion that's worth $33 billion, the shareholders have to be told and can say don't do it. so not only did bernanke and company acknowledge this yesterday, not only did they say you must buy this, they said you may not tell anyone that you think it's worth $17 billion. it depends how do you the numbers. it was either taxpayer money or

shareholder monday. but the $17 billion is gone. ainsley: do you think ken lewis should be at fault as well? >> absolutely. if the government says be silent when the law says speak, government made me do it. clayton: i'm going to start using that defense. >> the government made me do it. it won't get you very far. steve: don't tell anybody. and yesterday, of course, they were telling everybody. >> as the congressman said, it wasn't a threat but i felt threatened. steve: the judge will be on two hours and four minutes from now. >> and two of your favorites. geraldo rivera and chris wallace. steve: both on this channel. clayton: developing news. the pope taken to the hospital. the latest on his condition, live from itity at the top of the hour. ainsley: and another breaking story. at least one american injured in the bombing of two luxury hotels in indonesia. and the suspects, believed to be

guests in the hotel, might have links to terrorists group. steve: the treasury department is hiring. but you need to know how to draw cartoons. clayton: you're kidding? steve: i'm not. 4l kelly saunder's nature valley, the place that inspires her to go faster... and slower,

elk mountains, colorado. where's yours? 100% natural nature valley granola bars. the taste nature intended. here's one for your skin that's clinically proven. olay professional pro-x wrinkle protocol is as effective as the leading wrinkle prescription brand at reducing the look of wrinkles. that's because olay has teamed with a highly specialized group of dermatologists and created a wrinkle protocol that gives you the results of the leading wrinkle prescription brand, without a prescription. olay professional pro-x. this is a guarantee you're guaranteed to love.

when morning comes in the middle of the night... rooster crow. ...it affects your entire day. to get a good night's sleep, try 2-layer ambien cr. the first layer dissolves quickly to help you fall asleep. and unlike other sleep aids, a second dissolves slowly to help you stay asleep. when taking ambien cr, don't drive or operate machinery. sleepwalking, and eating or driving while not fully awake with memory loss for the event as well as abnormal behaviors such as being more outgoing or aggressive than normal, confusion, agitation and halluciations may occur. don't take it with alcohol as it may increase these behaviors. allergic reactions such as shortness of breath, swelling of your tongue or throat may occur and in rare cases may be fatal. side effects may include next-day drowsiness, dizziness, and headache. in patients with depression, worsening of depression, including risk of suicide may occur.

if you experience any of these behaviors or reactions contact your doctor immediately. wake up ready for your day-ask your healthcare provider for 2-layer ambien cr. ainsley: good morning. it is friday. it's july 17 or almost, i should say. vice president joe biden is using some fuzzy math when it comes to fixing the economy. >> so when i say that, people say what are you talking about, joe? you're telling me we got to go spend money to keep from going bankrupt? the answer, yes, i'm telling you. ainsley: you have to spend money to make money is what he's saying. right? steve: kind of. ainsley: but the not so funny part, well it it seems congress is listening. we'll talk about it. clayton: and someone is targeting the red, white and blue. military veteran's military

flagged torched for the second time. he joins us live to tell us what's going on. steve: and she ruled against him, but connecticut firefighter frank ricci got to have the last word to judge sonia sotomayor yesterday. >> have the right to go into our federal courts and have their cases judged based on the constitution and our laws in the on politics or personal feelings. steve: ricci will join us live on this friday "fox & friends." meanwhile, our slogan from jackie in ohio. "up every morning at the break of dawn, can't start my day until "fox & friends" is on." >> we're the oak ridge boys. >> to the men and women serving our country everywhere, thank you for your service and god bless you. steve: the grill sergeant is with us from the pentagon channel outside. also today we've got the oak ridge boys. it's part of our friday summer concert series. and we've got, collate and

ainsley in for -- clayton and ainsley in. we've also got a good friday nugget from joe biden. clayton: the vice president not disappointing us this week. he was down in richmond yesterday. of course, addressing what's going on about this jobs issue and going out there, trying to make these speeches now and counter some of the criticism which has been out there and leveled by republicans, one of these things that's been sticking to the obama administration, which is, where are the jobs? you've been promising us jobs. vice president biden saying these jobs are here. he also says something weird, that we need to spend money to make money. take a listen. >> we're gooding to go bankrupt as a nation. so when i say that people look at me and say, what are you talking about, joe? you're telling me we've got to go spend money to keep from going bankrupt? the answer is, yes, i'm telling you. clayton: the government actually doesn't make money. steve: he's saying we've got to spend the money to stimulate the economy.

of course, this on charges by eric cantor whose congressional district is where joe biden was speaking from yesterday. joe was at a community college in the richmond area. mr. cantor had said the day before, look, the stimulus thing is not working. that $787 billion, only a drop in the bucket has been actually spent thus far and where are the jobs? we heard yesterday, once again, hundreds of thousands of people have lost their jobs. clayton: higher jobless numbers this month. ainsley: biden saying the recovery package solved the credit freeze and saved jobs of public ploys. clayton: he's saying it opened up credit so banks are able to provide loans now, people are able to get these loans. i don't know because we're still seeing foreclosures rocking at a record pace, people losing their homes at a record pace, unable to get these loan modifications right now. and we heard earlier this week

the obama administration now considering turning your home into a rental property as an excuse. steve: if you can't make your mortgage payment, somehow the ownership gets transferred to the government and you rent it from the government. that's a great idea. here's the thing. you just mentioned, you know, talking about the number of jobs, that the administration has saved. we had karl rove on this program about a month ago. and he revealed that that number is a phony number. because he was in government for a long time. and i think it's the department of labor does not keep a number that shows how many jobs were saved. ainsley: so where are they getting the number then? clayton: good question. steve: fortune cookie. you saw how many people lost jobs, how many jobs were created, but can you not show how many jobs were saved. ainsley: you can look at the unemployment. it's skyrocketed, 10% now? 9.5%? steve: right on the verge.

clayton: and warren buffett warning it may go as high as 10%. do we need a wake-up call? no. steve: we are going to need -- clayton: we're going to feed an audio feed into the shuttle and wake them up. this is my favorite story of the morning. if you're looking for a job -- steve: not right now. ainsley: i hope not. clayton: i might be. if you're out there looking for a job, you may want to consider what the treasury department put up. steve: this is no joke. clayton: they're looking for jokesters to literally walk around. one of the job qualifications, they're not allowed to use any foul language but they must experience demonstrations of cartoons being created on the spot. so this guy has to walk down the hallway presume whether i ensay, make me a cartoon. that's the job description. steve: it sounds like what they're going to do is apparently have two three-hour

programs, members of the department of treasury are going to come in and sit around. how important it is to have humor. clayton: this is absurd. steve: joe biden says a lot of funny stuff. would he be available? ainsley: that's good. clayton: why not have him go over? if he needs a second job. steve: the department of treasury is right next door to the white house. ainsley: are these our tax dollars paying for this job? steve: absolutely. so at a time when we are on the verge -- the president has made it clear, we are out of money. plus you look at the unemployment. ainsley: they're trying to create jobs. steve: the deficit is over $1 trillion already. your department of treasury is going to pay somebody probably thousands of dollars to do this, how to be funny at work thing. clayton: why not just hire a clown? they're probably out of work clowns. steve: could they find a clown in washington? clayton: no, that would be a

difficult thing to find. steve: e-mail us. what do you think about this, that they're spending money on this in a time of great financial peril. already you were heating up the e-mail machine regarding those kids in texas who were fined $15 if they catch you with a cell phone in school because we had a mom on with two kids who had their phones taken away four times. clayton: apparently the kids needed to have the phones in school. steve: i understand. kids should have phones so that they can tell their parents when to pick them up and if there's trouble at school. ainsley: but do they need to be on? steve: no. absolutely not. e-mail us. ainsley: do they really need phones? we survived. steve: we did survive. but these days with logistics, doing so much stuff i think so. ainsley: clayton's on his phone. i'm going to tell you the headlines. we're starting with a fox news alert. pope benedict xvi takes a fall while on vacation in northern italy in the alps. he ends up in a nearby hospital.

the 82-year-old pontiff fractured his wrist. but the vatican says that the injury does not appear to be serious. the pope's reportedly undergoing surgery to reduce the fracture, but the vatican has not confirmed that. despite the accident the pope celebrated sunday mass and had breakfast before going to the hospital. tough guy. another developing story, at least one american is among the dozens of people injured after two luxury hotels in indonesia were bombed. the suspected suicide bomber set off the powerful blast, one explosion ripped through the ritz carlton. minutes later, ripped through the marriott. no group so far has claimed responsibility for these attacks. but investigators say that it has the hallmarks of an al qaeda-affiliated group. well, it's rise and shine time for the crew of the space shuttle endeavor. they're getting their wake-up call right now. as they head toward the international space station. nasa says the insulation that broke off during the launch is

not cause for alarm. didn't they used to wake them up with music? clayton: we fed in some oak ridge boys. ainsley: they admit it's a mystery. they're determined to find out more. that's why pictures will be taken at the shuttle dock later today. tomorrow is the mission's first spacewalk. and in other space news, nasa says the original tapes of the 1969 moon landing has been taped over. clayton: they taped a cooking show over it. ainsley: all isn't lost. they're taking television footage, enhancing it with modern technology. how does that happen? that is something i would have done. steve: has anybody seen the apollo moon landing? clayton: who taped over our wedding? why is there a football game on this tape? ainsley: that is something i would have done. ok, executives are getting support from the house.

last night a spending bill was passed that includes a provision that re-open hundreds of dealership and prevent the closing of 2,000 more it would force the auto companies to get dealers targeted foreclosure a, quote, decent review process and decent appeals process. the white house doesn't approve of this measure, a parnltdly. and the senate senate leadership indicates that it might not get around to it. and the pulitzer prize-winning author of "angela's ashes" is seriously ill. the author's brother says he is not expected to survive. he's suffer from skin cancer and meningitis. and he's in a new york hospice right now. he is 78 years old. you're looking at the first successful double hand transplant recipient in the nation. let's take a look. there he is. 57-year-old air force veteran originally lost his hands and feet because of a severe infection. he says he can't feel anything yet but looks forward to feeling his wife's hands when he's able

to hold them. how sweet. doctors say it will be at least a year before he has full use of his hands. isn't that amazing what we can do now adays? and zach fought off pirates single-handedly, braved gail force winds for days on end and became the youngest person to sail around the world by himself all at the age of 17. got a well deserved welcome home for his dramatic journey which took him 13 months. fewer than 250 people have ever done this. zach says he's just getting started with his challenges. next, climbing mount h everest. clayton: when i was 17, i was working at a mcdonald's. steve: the gal that the department of treasury wants to hire to be funny, somebody typed in, "isn't al franken now in washington?" and also, somebody else wants to know would that person be the humor czar? clayton: number 33.

coming up, we want to know what life with universal health care will be like. just take a look at massachusetts. you'll discover the state is in big trouble this morning. we're going to break down their problems. steve: a military veteran needs your help. someone burned his american flag not once but twice. and police have yet to catch the pinhead who did it. ainsley: and our all-american summer coul concert series. the oak ridge boys here all morning. steve: drop by, folks. >> ♪ start taking those crazy chances she said, daughter, forget the trouble and kind it's all gone before you know it it will be long gone before you know it ♪

♪

steve: late last night the house ways and means committee passed a plan to revamp health care approving massive tax increases on america's most successful. the idea to push the plan for universal health care coverage. right now massachusetts is the only state in the country that has a similar program to universal care. how's it working? it's not. what would happen if the idea were expanded nationwide? molly is live in boston right now. there are troubles in the commonwealth of massachusetts. aren't there? >> yeah. since the very beginning since this universal health care program was implemented here in massachusetts, the big question has been, how are they going to pay for it? more people signed up in massachusetts for health

insurance. only less than 3% of massachusetts residents don't have health care. and that's compared to about 15% nationwide so that goal was accomplished. but now paying for all of this is the big challenge of the legislature. they've actually started cutting people out of the program. about 30,000 legal, tax-paying immigrants, are now being cut from the state's commonwealth care, their state subsidized program in massachusetts. that's expected to save the state about $130 million. the governor has proposed still covering this population to a lesser degree and to a lesser extent to save a little bit of money. the reason this population of particular is being cut out is because they don't receive matching federal funds to cover that population. immigrant advocates, health care add row sats -- advocates say they'd still to have this covered. they believe it will be more expensive. these people are still going to go to hospitals, still going to get sick. and then the burden will fall to the hospitals. administrators at one major hospital here in boston are

actually suing the state now, suing because they believe that the state isn't actually funding the program. and if they're baring the brunt paying for that cost. boston medical center argue that they're required by law to pay for low-income residents but the state is leaving them in a bit of a lurch, under funding the hospital by $181 million a year. so the political will here is still there to keep this program in place, but finding the money has proven to be a tough job. steve: all right, molly in beantown where the bean counters say they're out of money. joining us live in studio e. is steve forbes. steve, house way and means passed this last night. so it is rolling along down there in the congress. and what they're doing is essentially they're saying, steve forbes, rich guys like you are going to have to pay for this. >> well what they're doing is not just taxing the rich, they're taxing small and medium-sized businesses. most businesses are taxed at the

personal tax rate. steve: because a lot of small business firms, got a in charge, but that on his personal income. >> that's right. you're hitting a soft spot of job creation. how do they define rich? anyone above, say, $200,000, $300,000? that's when this thing starts to get going, we'll get more money, so they'll keep lowering that? they're talking about an 8% payroll tax on small businesses that don't offer health care. they're going to slam job creation. steve: we are sitting right now in a studio in new york city. and new york city is on the verge, if you are one of america's most successful people. you will find up paying how much in taxes? >> almost 60% tax bracket what they don't understand is taxes just don't raise revenues. taxes are also a price and burden. if you punish risk taking, success, productive work, you're going to get less of those things. we should have learned that from

the 1970's. steve: you said during the break that apparently in a year or two that could actually go up even higher? >> next year it will be 45% just on the federal level. you throw in states like new jersey and california and others, they're all going to be in the 60% bracket. it's the old thing. with the i.r.s., how much do you make? next line, send it in. steve: no wonder they're looking for a joker in washington. >> go to congress. they can get all the jokers they want. steve: they got one. you're right. it's not just the rich who are going to have to pay for obama care. if you're a small business owner, just getting by, get out the pink slips. steve touched on this. he's going to stick around and explain that. plus, he got the final say. a connecticut firefighter who sonia sotomayor ruled against joins us live. he lost his promotion because of her decision but the supreme court turned that around.

i have to climb stairs 20-30 times a day. now joint comfort is easier with new triple flex liquid softgels. the first liquid softgel joint supplement

>> if the economy is good for folks from the bottom up, it's going to be good for everybody. right now everybody's so pinched that business is bad for everybody. i think when you spread the wealth around, it's good for everybody. steve: deja vu all over again. clayton: president obama promising joe the plumber that small businesses would be ok under his tax plan. now he's changing his tune. when democrats say they want the wealthy to pay, they mean small business owners. steve: steve forbes, is that right? >> absolutely. most small businesses are taxed at personal tax rates so businesses of 20 or more people are going to fall into this tax bracket. and these businesses don't have big profit margins. so you slam plus the recession, hundreds of thousands of

businesses are going to have to shut their doors, certainly engage in layoffs. ainsley: what kind of tax increase? >> on the top level from 35% now to 45%. next year the tax increase -- tax cuts of 2003 go out the window. you put in this surtax, you're 45% on the federal level, state and city level, here you're going to see 57%, over 60%. steve: luckily it will be money well spent. >> the government always spends money well. you can see with the post office, amtrak, medicare, medicaid, social security. what an impressive list of financial achievements. clayton: i don't think anyone would disagree this is in a shambles. something needs to be fixed. what is the answer though? moderate democrats backing out of in a little bit. this could be the reason why this doesn't pass after all in the senate. and come the fall of the year so what needs change for everyone to be happy? >> we have to go in the opposite direction and have genuine free enterprise. we don't have that today. you don't control the dollars. so various things they could do.

allow you to shop for insurance across state lines. that's now illegal. allow small businesses to ban together to get better rates. have equal tax treatment if you're an individual, you don't get a tax deduction for it. businesses do. so you do some of those basic things. tort reform so you don't spend hundreds of billions of defense and medicine each year. you'll start to see a positive. lasix surgery cost a third less in terms of real dollars than 10 years ago because you have consumerism at work. we have to get that through all of health care. stoipt president said on the -- steve: the president said government will get involved and it will drive costs down. but yesterday the congressional budget office, which is not partisan -- you know, they don't take sides. they said it could actually drive costs up. you're telling us during a time-out that you were speaking to a smawz businessman -- small

businessman yesterday and he looked at these proposals and said what? >> will have to lay off almost half of his people. he has about 32, 35 people on a small payroll, already business is tough. going to have to engage in major layoffs. steve: so when people say this would only affect people makin making $300,000, $500,000, you're talking about the people working for them. >> you're destroying jobs. this is not a static thing. you're going to put huge burdens on. we're all going to pay the price for it. the way government lowers prices is they have less of it. soviet union, prices are very cheap. couldn't get anything. you look at canada, you have theoretically insurance but try to stand in line for several months to get your brain tumor fixed. in england, above 5erbgs you have kidney -- above 55, you have kidney problems, they're not going to give you dialysis. so you'll have insurance but won't get the care. clayton: waiting nine months to get arthritis care in england.

ainsley: i have a friend, her next door neighbor, tore the knee. she went to the hospital and they said come back in six months for an x-ray. that was in the u.k. >> that's shortages. so do you what you do in the rest of the economy, turn scarcities into abundances. if you allow entrepreneurs the freedom in health care, we can get productivity change. it's positive ones. steve: steve forbes, from "forbes" magazine. you have that "forbes 400" it might be the forbes four before you know it. >> or the definition. have the $400? steve: some day i'll make it there. thank you. clayton: he put his life on the line for this country and proudly hung the american flag outside his home. but for a second time, yes, a second time, vandals burned that flag down. we're going to talk to the former marine next. ainsley: and it's the little league of rodeos. call it kid versus beast.

clayton: that's great. ainsley: cute. i love it. steve: plus, he had a food fight with bobby flay and the culinary king asked for seconds on his dish. our grill sergeant out cooking gumbo on the plaza. s yeaaaahhhh! find out more at aflac!... ...forbusiness.com (laughter) ♪ she does. obviously they do. ♪ oh, and her.

♪ steve: it's a friday in the summer. we have our concert series here at "fox & friends." today we are delighted that the oak ridge boys are dropping by at our world headquarters. drop by. they're going to do a big number coming up just about an hour and 10 minutes from right now. ainsley: we live in the greatest city. isn't it fun to walk down the streets of new york and have a concert? clayton: did you realize what you just said? steve: we're on tv. sometimes you have to edit. ainsley: what do you mean?

clayton: want to thank our grill sergeant outside who provided this delicious gumbo. ainsley: nothing like gumbo at 6:30 in the morning. steve: ainsley's goo going out in a minute. ainsley: is there shrimp in there? steve: we had on a woman from texas who the schools down there, if your kid is caught with a cell phone in class, they can actually confiscate them. and then fine the kid $15. well, we asked you whether or not you thought this was a good or bad idea. and overwhelmingly you think that it is a good idea. that particular woman we had on said her kids had the phones taken away four times. clayton: and she's paid $15 in fines. she did so with change, dimes, nickels and pennies and paid it on the counter. the school system there has already made over $100,000 from these fines.

karen writes, "kids do not need to take cell phones to school or really even have them. i did not have one growing up it probably kept me out of a lot of trouble. i got my first one at age 34 and only used it for driving emergencies. why not put the good old pay phone in the school?" ainsley: mary says -- steve: peter, a correspondent for the fox news channel, trying to look at the other side. he said, "hey, dad what do adults do all day long? they blackberry. kids often need to text things recommended to their work, assignments, extra curriculars, and like you said, rides. if a kid has no ride, how are

they supposed to find their way home? what would happen to adults with no blackberry in this era "ser?" clayton: i agree. but they're all collaborating these days. they're using facebook, social networking. but don't have it on during class. steve: right. one problem with these phones, they've got a camera. i remember not long ago some schools were concerned about i'm taking a test, i'm going to take a picture of the test and have my answers and send it over to that kid right there. clayton: one said, "i'm a teacher. i can tell you cell phones are a huge problem because kids are cheating with them." steve: our kids all got phones after 9/11. but they kept them in their backpacks turned off. ainsley: when we were in the school, we didn't have the cell phones but we had the

calculators. remember in calculus they were concerned because you could load answers and cheat. clayton: e-mail us, twitter. we'll read those. we start with a fox news alert. pope benedict xvi suffer from a fall in a bathtub while on vacation in northern italy. he was taken to a nearby hospital. fortunately aides say he suffered no serious injuries. witnesses say the 82-year-old, benedict, was able to walk into the hospital by himself. did someone take him to the hospital? reports he injured his wrist. may be broken. ainsley: president obama warning foam rise above their circumstances in life. speaking to the 100th meeting of the naacp last night, he said he did not buy typical arguments of poverty and crime. >> your destiny is in your hands. you cannot forget that. that's what we have to teach all of our children. no excuses.

ainsley: the president has said without the civil right work of the naacp he would not be in the white house today. but he said more work still needs to be done. steve: i heard from people there, they said he gave an inspiring talk. meanwhile, the obama administration sidelining speculations. hillary clinton in front. clinton heading to india and later to thailand. this is her first trip overseas since breaking her elbow on june 17. in an op-ed piece secretary clinton says they need to work toward a nuclear-free world. she said, i broke my arm, not my larynx. clayton: crimes motivated by race, ethnicity or religion. the original law enacted after the assassination of martin luther king jr. the new law expands to protect those physically attacked because of their gender, sexual

orientation or a disability. ainsley: he's accused of withdrawing millions of dollars right before the ponzi scheme was uncovered. the accountant will be in court this morning where he's expected to plead guilty to avoid being indicted. meanwhile, one of the people that bernie scammed is trying to reverse the damage done. a boston philanthropist is giving $5 million of his own money to restore the pension fund of his employees. steve: wow. feeling bad. meanwhile, a fox news alert. bank of america has just announced that they posted a $2.42 billion profit for the second quarter. business is good at the banks. just like goldman sachs and j.p. morgan chase, earlier it reported a handsome profit from its trading businesses, but the company, one of the most troubled big banks, says, quote, difficult challenges lie ahead so they're up $2 billion. i wonder if they paid back the billions of tarp money.

clayton: i don't know but they're my bank. hope they don't go under. they call it muffin busting. the best video. just a few years out of diapers. cowboy up to ride sheep. just like the big old boy dozen with bulls. it's not a competition but for parents who want their kids to be professional bull riders. the kids had no choice. they just stick them on sheep and the kids can't say anything about it. steve: as long as they don't have a cell phone. meanwhile, a dangerous meeting. a terror group calling for the rise of militant islam. this terror group is having a recruitment conference. no, not over there. here. in the united states. at a hilton hotel in the chicago area. apparently their goal is to take down our way of life, indoctrinate americans into supporting jihad. ainsley: and the group is reportedly linked to some of the most dangerous al qaeda terrorists. diane, tell us what's going on. tell us more about this.

steve: chicago? >> in chicago. the group is reportedly linked to terrorists including the former leader of al qaeda in iraq and the confessed 9/11 mastermind. now, the group has operated in the u.s. discreetly for the past few decades, holding events like this under different names. this is the first time they're going to be holding an event like this under their own name. the name of the event is called the fall of capitalism and the rise of islam. it's going to be hosted at the hilton hotel in oaklawn a suburb outside of chicago. the group itself insists it does not engage in terrorism and is not recognized by the state department as a known terror group. but some experts say they are more dangerous than some groups that are. the way they say the group works is basically they equate the group to a hitler organization so rather than actually training people to go out and commit terror acts, they're

indoctrinating younger folks. and the groups saying that they prepare the infantry for groups like al qaeda. steve: so this pro terror group is having this thing in chicago on sunday. i understand for any pro terror people who want to attend, they have free baby-sitting. >> yes, they do. they have free baby-sitting at the event. there's i think supposed to be free drinks and food supplied as well. i spoke to the hilton hotel about the event. it was originally supposed to be hosted at an islamic school. that school said that the group misrepresented the event originally and once they found out the true nature of it, they wanted to back out. the hotel said that the group reserve it had under their name openly and was open about the nature of event. what they said is that the group is legal and the hotel can't discriminate against who it's going to rent space to. they say as long as it doesn't jeopardize the privacy and security of their guests, then they can host it. clayton: tourism bureau right now is in trouble?

hilton says, we need a conference, why not have this? steve: thank you very much. clayton: home invader phase an eldierly -- elderly couple hostage. what do these savvy senior citizens do? they served them iced tea. how they talked sense into a thug. steve: a great story. ainsley: it's an absolute disgrace. vandals spitting in the face of an american veteran by burning his flag down not once but twice. as you can expect, this marine isn't taking it lightly. what he's doing to protect old glory, next. steve: plus the oak ridge boys performing live. and this guy, the grill sergeant, cooking up some gumbo. stick around. 

clayton: it happened for a second time. vandals burn an american flag that was hanging outside the home of a veteran in dallas. steve: that man you see in the picture right there ed jordan. served our nation proudly. he joins us to tell us what happened. good morning, ed. >> good morning. steve: somebody burned down your flag? >> yes, they did. twice. clayton: you've put up another flag and you were out of town and your neighbor came to tell you that there was charred remains of the flag. who do you think is responsible for this? >> i really don't have any idea horne i suspect that it might be kids just pulling pranks. i don't think it's anything beyond that. steve: the flag is hooked on to your house.

it's a good thing they didn't burn the house down. so they torched your flag twice and another neighbor's flag as well. it sounds like somebody in the neighborhood has got a problem with the american flag. >> that's a possibility. i'm not aware of it. i'm the homeowner's president of the homeowners' association. i'm not aware of anyone. quite a few of the people do display their flags on appropriate days. i don't know. steve: it's not as if somebody's going down burning down laundry on the clothesline. they're burning down flags. >> that's true. that's true. it's curious. clayton: after your first flag was burned down this caused quite a stir. and a lot of people wanted to help you. right? >> a lot of people have. yes. uh-huh. gathering of eagles is one organization. clayton: you named the organization. some remember ritts wanted to help as -- celebrities wanted to

help as well, right? >> that's true. kid rock offered to do whatever i'd like to do. i've talked with his agent. i'm going to get back in touch with him. i've been out of town. i'm going to get some information to pass on to him. steve: aunderstand that apparently somebody who heard -- i understand apparently an iraq war veteran donated a special flag that flew over a base over there and that wound up at your house. >> yes, he did. it was patrick best. he lives here in dallas. he gave me the flag that flew over the base in iraq. very generous gesture on his part. clayton: the police haven't yet been able to tie these things together. we hope they catch whoever is doing this. ed jordan being retired marine. thanks for joining us. steve: and thank you tore your service, sir. >> you're welcome. thanks for having me.

steve: straight ahead, connecticut firefighter frank ricci joins with us his message for sonia sotomayor. but first, on this date in history, june 17, 1955. disneyland was dedicated in anaheim, california. it's the only disney property actually designed and built by walt disney. steve: didn't know that. clayton: and on this date in 1995, duran-duran had the number one hit of the title song for the james bond movie. . you are one person, but you can move a nation. you can walk with a purpose to end alzheimer's...

by joining us for memory walk. [ man ] you invite three people. [ woman ] and they'll invite three people. and before you know it, you have a team. more than 5 million americans... may not be able to stop the progression of alzheimer's. but we can. step up. move a nation to end alzheimer's. start a team today. go to alz.org.

. . . . >> americans have the right to go into our federal courts to have their cases judged based on the constitution and our laws, not on politics or personal

feelings. ainsley: that's frank richie at the center of one of the most controversial rulings made by judge sonia sotomayor. testifyingiest during her confirmation hearing. steve: the highest court eventually overturned sotomayor's court decision in the reverse discrimination case and frank joins us along with fellow new haven firefighter matthew markrelli. >> good morning, steve, good morning, ainsley. >> if i could just say real quick, thanks to ed for the service to his country and all our servicemen and women across the world. steve: that's nice of you to say to ed jordan down there in texas who had his flag burned if folks missed it. in this particular case, you were denied advancement. you had, frank, studied really hard to become a higher rank in the fire department, and because enough minorities did not pass

the test, would it be safe to say you were denied an advancement because of the color of your skin? >> yes, all 20 plaintiffs and all the individuals that passed the test based on merit and their qualifications were denied promotion strictly just because we were all viewed as a racial statistic instead of individuals. steve: and a lower court said that that -- agreed were the city and said you didn't get the advancement, and sotomayor's group also said -- agreed with the lower court, and the supreme court said this is just wrong and reversed the decision. why did you want to talk in front of the panel yesterday with sotomayor there? matthew? >> well, actually, i didn't testify, but what i will say -- steve: you appeared. >> frank and ben's purpose of testifying was to tell the story of what happened to us, not necessarily to take a position on whether we agree with the

selection of judge sotomayor. i will say that when she goes to bed tonight, judge sotomayor can be rest assured that with the hearings that took place over this week she can be sure that she was treated much more fairly than we were in her courtroom. ainsley: what's your reaction to the confirmation hearing so far. what is it like to be in that room? because we're just watching it from a distance on tv. >> well, it was an amazing experience, to see our system of government at work ensuring that we get judges on the supreme court who will ultimately become justices are selected appropriately for that position. steve: the supreme court has said that you are entitled to your advancement, and you're eventually going to get it in the next six months or so, but in the meantime the lefty blogs have really attacked you guys. >> well, the left blogs, they

never let the truth get in the way of a good story, so i'm not even going to credit any of them by giving their names or -- it's not worth it. it's just -- it shows how important the real press is what fox news does and what other news agencies do because they have an editor, they can check their facts because the facts weren't checked in these cases, and this was insulting. steve: you got your day at the supreme court. ainsley: and we covered this story for sean hannity's show months ago. matthew, you had the top score, right? >> yeah, frank took the test for lieutenant, and i took the test for captain, and i ranked in the number 1 position. steve: you hung in there, and now you're going to get your new rank shortly, frank and matthew, we thank you both for joining us live. >> thanks. ainsley: held hostage in their own home, and they are over 80 years old. these seniors didn't have any fear.

in fact, they had faith, so they served the crooks some cereal and left the rest to god. steve: geraldo rivera is going to join us shortly. ainsley: and this country band has been around for sometime since 1945. the oak ridge boys. quality and reliability...

are more than words here. it's personal. i have diabetes. rodney's kid too. so we're so proud to manufacture... the accu-chek® aviva meters and test strips... here in the u.s.a. plus, we've proven you'll waste 50% fewer strips... when you use our meter, which means greater savings... for people with diabetes, like me. now that's a true american value. accu-chek® aviva. born in the u.s.a.

for me to keep my bones strong but even with calcium, vitamin d, and exercise, i still got osteoporosis. i never thought i could do more than stop my bone loss. then my doctor told me i could, with once-monthly boniva. boniva works with your body to help stop and reverse bone loss. studies show, after one year on boniva, nine out of ten women stopped and reversed their bone loss. i know i did. (announcer) don't take boniva if you have low blood calcium, severe kidney disease or can't sit or stand for at least one hour. follow dosing instructions carefully. stop taking boniva

and tell your doctor if you have difficult or painful swallowing, chest pain or severe or continuing heartburn, as these may be signs of serious upper digestive problems. if jaw problems or severe bone, joint, and/or muscle pain develop, tell your doctor. i've got this one body, and this one life, so i wanted to stop my bone loss. but i did more. i reversed it with boniva. ask your doctor if boniva can help you stop losing, and start reversing. (announcer) for a free trial offer, call 1-800-4-boniva. ainsley: it's friday, good morning, it is july 17, 2009, this is a "fox news alert." overnight explosions ripped through two luxury hotels leaving eight people dead and 50 injures, the work of terrorists. steve: the price tag for obama care, will it really be the wealthy footing the bill? the middle class could get

squeezed, and even some democrats are unhappy with it. clayton: how much would you pay for a pack of cigarettes? how about over $23 quadrillion? meet the man who was way overcharged on his credit card and how he's getting his money back. our slogan comes from michael in michigan. what do you know, what do you say, "fox & friends," go ahead, make my day. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- steve: welcome aboard on this friday morning, we start with a "fox news alert." let's tell you a little bit about this. apparently pope benedict has been at his vacation spot in northern italy, and he was taken to a hospital in the last eight hours or so, apparently he slipped and fell in the bathroom, perhaps in the tub. there are reports out that perhaps he injured his wrist, he

could have broken his wrist, anyway, details coming out of the vatican. they say aside from perhaps a broken wrist, the pope is absolutely fine. he did not according to our sources hit his head or anything like that. clayton: apparently he walked himself to the hospital, because i have to wonder, isn't there anybody to take care of him? ainsley: after the mass. clayton: the pope is expected to be fine as he's recovering this morning. steve: that's good. ainsley: another developing story this morning, two suicide bombers are said to be behind those deadly explosions in indonesia, at least eight people were killed in the twin bombings at two luxury hotels, 50 people injured in the attacks, including several americans. families of september 11th victims are urging president obama to reverse his decision to close the guantanamo bay prison. the closure would only delay the prosecution of the men who claimed responsibility for the

plot. >> to mr. obama, senators, and representatives, please keep guantanamo bay open and the commission hearings continuing. you must pursue justice. ainsley: the u.s. now holds 230 men at guantanamo. the chief military prosecutor says he's prepared to file war crime charges against 60 of them. and talk about a tv reporter getting the scoop. jennifer kabbalah was working on a story about three boys who went missing overnight in washington state, and that's when she noticed three little kids sitting on the sidewalk. she immediately called the police, turns out the boys were trying to hide from the searchers because they thought their parents might punish them for staying out after their curfew. the boys are back safe and sound. i remember when we were kids they said would you ever run away, and i said no, i'd be too scared to come home to my dad.

misha barton is in a hospital under california's involuntary hold law, this happened just hours before she was to fly to new york for "homecoming." she was in rehab last year. she's doing a-ok this morning, we're being told. she was scheduled to move to new york city next week. the double shot will take a whole new meaning. they're getting an extreme makeover. some stores will drop the starbucks name and start serving alcohol. geraldo: woo hoo! ainsley: geraldo likes that. they're ditching the logo at some of these stores, and the new names will reflect the neighborhoods that they're in. steve: and they're in all the neighborhoods and many locations just like geraldo rivera, wherever there's news, geraldo is at it.

tell us a little bit about this health care thing. last night when we were all snoozing the ways and means committee passed it through, and once again it is the soak the successful thing where people who earn over $280,000 will have to pay 1% more, if you are lucky enough to make $1 million a year, you're going to have that 5.4% surtax. what do you think of this thing? a lot of democrats are saying this is a bad idea. >> the reason i don't like it is because i do think it is a soak the rich tax, and i don't think there's anything particularly wrong with soaking the rich, people like us. steve: speak for yourself. geraldo: there has to be fairness. for example, let's take the general motors case. the most lavish health care benefits ever existing. people getting in replaced and that replaced and all kinds of elective surgeries all paid for by the company, that health benefit should have been taxed. if you're going to soak the high

end earners who are paying most of the taxes that make the government go, then why shouldn't you tax health care benefits that accrue to people like union members and others? i think that is income, it is a -- it's the same thing. if you get $100 worth of health care, it's like $100 worth of income, and it should be taxed. if we shared the burden, obviously the wealthy paying more in terms of the bulk amount of the money funding the program, but everybody sharing the burden, if the concept is, and i totally agree with universal health care for all americans, poor people shouldn't have to call 911 if they want to go to the doctor, they shouldn't have to go to the emergency room if if kid's got the flu, they should have access to internists also. we have to increase amazingly in a very aggressive way the number of doctors we have out there, we need 100,000 more doctors, and we have to share the burden. i think the president is copping to the left of his own party by

this following charlie rangel, a dear friend of mines, the house ways and means' committee chairman. they have to spread the pain a little bit for a great social benefit, but let's really truly be democrat in the small "d" sense of that word. clayton: small business owners, and the burden falling unfortunately to small business to have to deal with this instead of these large companies. the other side of this is what president obama said on the campaign trail is going after those who are uninsured. how are they going to pay for it? the only agreement they have between the senate and the house is they don't know how yet to pay for that, which is the uninsured, so they're not in agreement on any of this, trying to get this moved through, this might not even pass come the fall. >> i believe you have to not jam the idea down someone's throat. i talked to my doctor i've had

for years and years, thankfully i'm in good health, i hardly ever go. he says now the elderly have universal health care, people 65 and over. the women -- men and women who come so his office, they come all dressed up, they have a doctor's appointment on wednesday, it's a social event, hi, doctor, and they sit there and they've got their purse and they're all dressed up, and it's a social event, two or three hours, the disproportionate drain on the health care system when things are free, they tend -- they have a free ice cream truck on the corner, kids are going to be eating too much ice cream. you've got to have an approach that makes sense and shares the burden, health care is enormously expensive, we've got to cop to that, and you've got to -- i think by giving tremendous amounts of scholarships, you want doctors to be interns, you don't want it to be plastic surgeons. steve: we're going to talk about

how the congressional budget office says this plan will accelerate costs. >> and that's a democrat, that guy. steve: he's supposed to be nonpartisan. hillary clinton. >> love hillary. steve: i know you love her, but we have not heard much from her lately, and people have said they've muzzled her. >> she broke her elbow, so she was out of pocket for a while. steve: she even said i broke my elbow, not my larynx. >> she was definitely conva lessing. and you've had the president with these very high profile foreign trips, he's gone no the middle east. steve: why isn't she with him? >> i think that may have been a miscalculation, maybe -- you know, we're all responding to -- t tina brown saying obama should take the burka off hillary clinton, but henry kissinger

said there should be 0 space between the secretary of state and the president of the united states. they can't have a wit's worth of difference in terms of policy, even rhetoric, their message has to be the same, so that is a difficult balancing act. you've got the president's national security council in the white house, they're next door, and she's over at the state department. clayton: is she happy? "the new york times" had a great piece on her, and her aids are saying this is the happiest they've ever seen her. steve: that sounds like spin. >> i don't know, but what i would advocate is hillary clinton going to the middle east, sitting with the israelis and the palestinians and making peace. no one has more clout than hillary and her husband, they should sit, come on, let's get this together, with tremendous

prestige, we can do the secret whispering stuff, but i would use her in that specific mission. that is so critical to everything that happens, and the other thing which he is getting involved in is the india-pakistan nonnuclear proliferation, but i don't know if she's been muzzled, it's also summer, so who knows, maybe she's at the pool. ainsley: what about this florida double murder investigation? >> i do not believe that anyone watching this program really believes that these eight losers who met in a car wash would get this spontaneous idea to go rob this rich family and then train for 30 days -- i call it the red neck ocean's 11, they train to pull off this thing for 30 days, they get ninja outfits and masks, for what, a home invasion robbery? get out of here. clayton: there's way more to do.

>> what was in the safe? what do you have the dea involved? why are these big time federal investigative agencies involved? i think the sheriff has been less than frank. steve: they'd say there was a lot of money. >> home invasion, you've got 13 kids there, three of whom are very high functioning kids who can call 911, and to think that they'd do a home invasion and kill the mother and father and leave the children? why do you kill the mother and father? why don't you just gag them and tie them up? there's something more. these losers have more to tell us. i want to know what wiggins' involvement is, i want to know did they know these victims, and if so under what basis. steve: geraldo is on the case. >> we're going to raise hell in pensacola. clayton: the campaign is over, he's been to the white house for over six months, but is president obama still trying too hard to please his party? how obama is playing politics

with his energy policy. ainsley: they've been around too long to let some young thug take what's theirs. how their faith set them free. my doctor told me something i never knew. as we get older, our bodies become... less able to absorb calcium. he recommended citracal. it's a different kind of calcium. calcium citrate. with vitamin d... for unsurpassed absorption, to nourish your bones. i'm working on my digestive health. whatcha eatin'? yoplus. it's a yogurt for digestive health. here... blackberry pomegranate. i can't find my hand. (announcer) yoplus... a delicious alternative for digestive health... ...from yoplait.

clayton: welcome back to "fox & friends." is politics dictating the obama administration's approach to the environment? carol browner reportedly told negotiators between the white house and the auto industry to put nothing in writing, ever, during these negotiations. wisconsin congressman james sensenbrenner joins me this morning from the cannon rotunda in washington. good morning. >> good morning, clayton.

clayton: do you believe there should be an investigation into what went on on at the environmental protection agency? >> well, the administration's playing dirty to go green, and browner telling the negotiators that the cafe or fuel efficiency standards not to put anything down is a clear violation of the presidential records act. if there's litigation that ensues, it's important that everybody know, including the court, exactly what went into a decision that was being made for a regulatory action that is going to have vast consequences to every american who drives a car. clayton: there are critics who say look, the republicans are being hypothetical here, what about dick cheney, these private meetings off the record, developing energy policy during the bush administration? what do you say to those critics? >> two wrongs don't make a

right. the democrats justifiably criticized cheney and the white house. now they're not practicing whatthy preach. i'm concerned about all these czars that they have in the white house. the czar system does not allow congress to get any information of any decision that a czar is involved in, and that ends up having secret decisions being made that does not have the type of public input that we need to have or consensus. i'm kind of a student of history, and obama has appointed more czars in six months than russia had in 200 years. clayton: 32 of them now. we're still waiting for the 33rd to pop up any time soon. according to reports carol browner quietly orchestrated these discussions with these auto industry officials behind closed doors, and we said nothing written down, and then we're getting environmental energy policy coming out of these meetings. how can we have any accountability if we don't know what was on the paper?

>> there's none, and that was a deliberate decision that was made by czar browner, and i assume with the concurrence of president obama. it's pretty hard to have an arm's length negotiation with gm and chrysler when the government owned over half of each of the corporations. czars in russia ended up dictating policy, and i have a feeling that if things were written down, they would show that browner dictated the policy and didn't get any pushback from the auto executives on whether it could be done or not. clayton: so much for transparency, congressman james sensenbrenner, thank you for joining us this morning. coming up on the show one pack of cigarettes cost him more than the u.s. national debt. they were some expensive smokes. we talk to the guy who bought them and hear his fight to get his money back. plus forget the seventh inning stretch. one baseball team thinks this is good entertainment. barefoot and pregnant women

running the bases. if that's not enough here's more. joe biden offering more brilliant advice to the american people, we need to spend money to keep from going bankrupt. f i never thought it could happen to me...

a heart attack at 53. i had felt fine. but turns out... my cholesterol and other risk factors... increased my chance of a heart attack. i should've done something. now, i trust my heart to lipitor. when diet and exercise are not enough, adding lipitor may help. unlike some other cholesterol lowering medications, lipitor is fda approved to reduce the risk... of heart attack, stroke, and certain kinds of heart surgeries... in patients with several common risk factors... or heart disease. lipitor has been extensively studied... with over 16 years of research. lipitor is not for everyone, including people with liver problems... and women who are nursing, pregnant, or may become pregnant. you need simple blood tests to check for liver problems. tell your doctor if you are taking other medications, or if you have any muscle pain or weakness. this may be a sign of a rare but serious side effect. i was caught off-guard. but maybe you can learn from my story. have a heart to heart with your doctor... about your risk. and about lipitor.

[baby dinosaurs laugh] sid: [laughs] ha ha, no, stop, stop. clayton: we are back. it's time for your "news by the numbers." $27,350, that was the winning bid for the check that neil armstrong wrote the day he blasted off for the moon. it was for $10.50 and was never cashed. i'm still trying to figure out what he paid for. 1,000. that's how many jobs are being cut at harley-davidson because of lower demand. $41 million, the fbi says virginia restaurant owner atari owes that much in loans but has

skipped town, possibly to jordan. ainsley: here's a number for you. $23 quadrillion. how many numbers are in that? steve: 17. ainsley: that's how much our next guest was charged on his debit card. steve: that was an expensive pack of smokes that josh bought, and he joins us live today. thanks for joining us from boston, josh. >> thanks for having me. steve: on sunday, you go, and you buy a pack of cigarettes for six bucks, and the next day you get a call from the bank, and what do they say? >> i got an email saying my bank account was in the negative, so i logged on real quick because that should not have been the case, and there i see the astounding number of $23 quadrillion. steve: purchase of goods or services, $23 billion? ainsley: did you laugh or did your heart sink? >> right away my heart sank, after a couple hours i thought

it was funny. ainsley: you probably thought identity theft or something. >> oh, yeah. steve: josh, when you saw that, you probably figured well where maybe the clerk put in the wrong number, but -- and i understand the bank blames visa did something. this has happened to other people? >> correct, yeah, i've read quite a few stories on line about it happening all across the united states. ainsley: what gets me, josh, is that you were charged the $15 overdraft fee as well. did they give you back your $15? >> yeah, they gave me back if $15, but they decided to kick me when i was down. steve: so the bank has completely fixed it, they realize that cigarette pack wasn't $23 quadrillion. have you thought about quitting smoking? >> yes, i definitely have, but

that day i smoked more than usual. steve: pay cash next time. >> from now on. ainsley: chris wallace is up next. don't worry about the sharks. be afraid of the sand. steve: and what beats some country music on a summer friday? the oak ridge boys perform all morning long.

right now, all over the country, discover card customers are getting 5% cashback bonus at the pump. now more than ever, it pays to discover.

steve: welcome back. we should point out ainsley is in for gretch, and clayton is in for brian, they're on vacation. clayton: vice president joe biden never disappoints, and he does this so every week, and let's bring in chris wallace on "fox news sunday" to talk about this. steve: on the other side of this soundbite. clayton: let's hear what he had to say first. >> we're going to go bankrupt as a nation. now, people say when i say that people look at me and say what are you talking about, joe? you're telling me we have to go

spend money to keep from going bankrupt? the answer is yes, i'm telling you that. steve: joining me is economics professor chris wallace. chris, you have to spend money to keep from going bankrupt. isn't the spending money thing how you go bankrupt? >> well, in fact, as there often is with joe biden, there is a certain amount of logic. you guys took economics, and they say that in a recession you've got to prime the pump, you've got to spend money to try to restart the economy, and that brings in revenue, and that ends up making the economy stronger. having said that i don't think that the vice president said it in necessarily the best way. clayton: and eric cantor was there in virginia talking about jobs, trying to do a preemptive strike, eric cantor coming out, got a copy of the speech ahead of time, what he was going to say about jobs, and canter

saying where are all of these jobs that the obama administration promises us? >> that's a problem. and i think it's reflecting itself now in the whole debate over health care because of course that was the first thing the president did when he came in to office was say we need this plan, we're going to turn a crisis into a catastrophe if we pass the $787 billion stimulus, it's going to keep unemployment at around 8%, he got what he wanted, and it hasn't worked the way he said it was going to work, we're at 9.5%, the fed is saying it's going to be over 10%, the projection is for all of next year, at the end of next year, it's going to be between 9.5 and 9.8%. so the argument could be made we gave you one plan, this is what you guys said how it was going to work, it didn't, why should we trust you again? steve: early today the house ways and means committee passed this health care version, and

it's the soak the successful thing. the congressional budget office, which is supposed to be nonpartisan and is, looked at this proposal, and even though the president said on the stump when we get government involved in this it's going to drive down the cost, and we're going to save money, but, in fact, the cbo says it could actually have the opposite effect and wind up costing more. that's going to be a problem for the president. >> absolutely. it's interesting, to watch it in the "washington post they said that testimony was devastating to the president's plan. it talks about $500 billion in cuts, we're talking about what the government spends on health care, but $1 trillion in spending increases, and although i only got a c in economics in college, i think that means a

negative $500 billion. there are a lot of -- not only republicans but moderate democrats who just don't like this bill. thinks it doesn't provide enough coverage, increasing the coverage to the uninsured, it doesn't cut costs enough, it's too expensive. the rangel bill would increase taxes on a big money maker like you, steve, to about 58% in new york city, so they don't like it to begin with, and this gives them political cover to say we've got to go back and to basics and start writing this all over again. steve: how about a plug for your weekend show? >> we're going to be talking about this, and boy is he going to have some explaining to do to the head of the president's bud jed, the head of the office management and budget peter orszag, and we're going to talk to judd gregg who was going to be the republican commerce secretary for barack obama, and because it's the 40th anniversary of apollo 11, we're going to talk to one of those

first men on the moon, buzz aldrin, and as a space junky, i couldn't be more excited to sit down with him. clayton: when you talk to buzz, can you ask him where nasa put those tapes? ainsley: they recorded over the tapes, did you hear about that? >> i did, but fortunately they've got all the tv tapes. those new digital video rendering of them, that's fabulous. you really get to see it in a whole new way. steve: two hours of stuff that they recorded at an earth station in australia are missing and apparently the story is that nasa taped over them and put "the beltway boys" over them. what are the odds? chris wallace, thanks for joining us. >> mort and fred? those are like the first two men on the moon. ainsley: thanks, chris. steve: we have a "fox news alert." bank of america and citigroup are reporting their second quarter profits.

they're way up. citigroup says it made $3 billion in the second quarter, bank of america says its earnings are up 20%, this follows positive news and in sharp contrast to the numbers banks were generating six months ago, nonetheless they got all that tarp money which they have not apparently paid back, but they're doing well. when will they pay it back? ainsley: more breaking news, pope benedict xvi undergoing surgery today for a fractured wrist after falling while on vacation in the italian alps. the vatican is saying that the injury does not appear to be serious, he is 82 and celebrated mass and had breakfast before going to the hospital. clayton: the crew of endeavour getting their wake-up call. the tunes courtesy of the beatles. finally a good musical choice. ♪ here comes the sun ♪ here comes the sun

♪ it's all right clayton: the insulation that broke off during endeavour's launch nothing to worry about, but they admit it's a bit of a misstry, and that's why they're going to take pictures later today. steve: debbie rowe is suing a woman for allegedly starting custody rumors. rebecca white says rowe is willing to surrender her custody rights over her two children with jackson for millions of dollars. white says that's got it in writing in an email. rowe says no way, and, in fact, will be in court on monday for a custody hearing. apparently what she said was just no way, and she's going to be from court for a custody hearing. ainsley. ainsley: if you're going to the beach stay away from the sand. a new government study says you risk getting sick if you build sand castles.

did you ever get sick when you were a kick? they didn't watch to put a damper on everyone's summer fun, but they did want to warn people and encourage people to wash their hands after playing in the sand. clayton: also you've got to watch out now for land sharks. with this fright from the white house to andrews air force because major jennifer grieves ended her 14-month tour as the first female pilot of marine one. she took president obama to andrews for his flight to new york. to celebrate her last day, an all female crew was assigned. steve: for the first time. clayton: she's been the presidential helicopter pilot since may of last year. steve: you're about to hear about the greatest promotion of this baseball season. the brooklyn cyclones sell brace the miracle of birth.

the mets' minor league team now hosting pregnancy night. the bellies in baseball promotion includes a contest called barefoot and pregnant -- barefoot baseball and pregnant where expectant moms can run the bases with no shoes on before the game. there's also a craving station offering pickles, ice cream, and pizza to pregnant women who want more than a hot dog. ainsley: well, look at this. these little guys, they're nursing -- wait. those are not their babies? are those what i think they are? a zoo in china a mother panda abandoned her cups, so workers turned to the dogs because they knew she had recently given birth herself. steve: this tastes like dog milk. ainsley: the baby bears have yet to open their eyes and have doubled in length. clayton: i love our producers.

they were looking at the story count, and they said we've got pregnant ladies running bases, let's take a dog nursing pandas and put those stories next to each other. steve: that is why this is america's number one morning cable news show thanks to our producer. ainsley: that's dangerous to have a pregnant lady running the bases. what if she slips and falls or slides into home base. clayton: a home invader takes this elderly couple hostage, but they kept their cool, and they even served the intruder iced tea and cereal. how they talked some sense into the thug and left the rest up to god. ainsley: the oak ridge boys are going strong. úb 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. are more than words here. it's personal. i have diabetes. rodney's kid too. so we're so proud to manufacture... the accu-chek® aviva meters and test strips... here in the u.s.a. plus, we've proven you'll waste 50% fewer strips... when you use our meter, which means greater savings... for people with diabetes, like me. now that's a true american value.

accu-chek® aviva. born in the u.s.a. steve: that man right there, william spencer of baltimore, went on a crime spree across leesburg, virginia, a week ago today. he pulled a gun in a jewelry store and escaped in a stolen vehicle and ended up in a home where he held up an elderly couple for nine hours. he burst into the house and said "give me all your money." ainsley: that couple says it's their faith in god that helped end that standoff. they're joining us live from their home. good morning to you guys. i am so glad that you're safe. tell us what happened. were you sitting right where you were when this guy entered your house? >> yes. ainsley: what happened. >> we just finished lunch.

>> yes, he did. i was watching tv, and a nice friendly neighborhood we have here, i didn't lock the door, and he came through with a pistol in his hand. steve: and, francis, i understand when you saw the guy in your house with the pistol in his hand, and he said "give me all your money," what did you think in your head, and what did you think was going to help you? >> i said "god, this is it. this is going to be it." steve: and you -- >> "i'll be with you, i guess." steve: you thought that was it, and you were trusting god would help you out of the situation? >> yes. >> absolutely. >> i knew he would. ainsley: i understand that you said to this intruder -- you tried to offer him cereal. most people would panic, and you guys offered him serial and tried to talk to him about god

and lead him to god. is that right? and what did you say to him? >> i said to him do you know jesus, and he said when i was very young, but he said he's left me messed up bad, he'll never be with me anymore. and i said that's where you're wrong because he doesn't leave you, you left him, and you can ask forgiveness. steve: during the course of when he held you guys hostage, robert, i see next to you is a pitcher of tea. he wound up going through an entire pitcher of tea and had some cereal as well. >> yes, he did. steve: i understand he went into your bedroom or a place where you kept stuff, and he came out, and he had in his hand three rings. he had your wedding ring, he had your engagement ring, and he had a ring that you were given for your 50th anniversary.

when you saw that guy with those rings, you didn't like it. what did you tell him, and what did he do? >> i said "those are mine." and he said they're pretty. and i said "they're sacred to me." and i told him what they meant to me. and i said "you can't have them. you'll have to put them back." steve: and what did he do? >> he put them back. >> everybody minds my wife. ainsley: everyone is smart to mind the wife. robert, after you and your wife started talking to him about god, we're looking at video of s.w.a.t. coming to your house. how did we get from that point to this video when the police officers and the s.w.a.t. team arrived? >> i had a cell phone in my pocket, i had to untie my hands, they were behind my back.

it took a while. i knew it was something i in to do. steve: he did surrender after she summoned the police, was in the bathroom, and called them, and we're glad that it all turned out great. ainsley: and gave the couple $140 from his pocket. steve: we thank you very much for joining us from leesburg, what a story they have to tell. >> praise god. ainsley: cute little couple aren't they? steve: the oak ridge boys perform a song off their latest cd next. . (announcer) this is nine generations

of the world's most revered luxury sedan. .rs... endurance. and one of the most technologically advanced automobiles on the planet. this is the 9th generation e-class.

fox fo steve: it is an all-american summer and today put your hands together, the ok ridge boys.

>> the ok ridge boys on fox and friends. new york city. >>♪ i'm going to fight them off a seven-nation army couldn't hold me back they are going to rip it off taking their time right behind my back and i'm talking to myself at night because i can't forget back and forward through my mind behind a cigarette♪ ♪and the band is coming from my eyes saying leave me alone

♪don't want to hear about it every single has a story to tell everyone knows about it from the queen of england to the hounds of hell and if i catch it coming back my way i'm going to serve it to you and that ain't what you want to hear but that's what i'll do and the message coming from my

bon bones, bom, bom, bom, bom, bom. bom, bom, bom, bom, bom, bom, bom, bom, bom, bom♪ ♪ >>bom, bom, bom, bom, bom, bom, bom >> i'm going to work this crowd

and make the sweat drip out of every pore, and --♪ steve: we will meet the oak ridge boys when we continue on f fox. f

the dodge chrysler and jeep summer clearance is here, and it's the best time to get some of the best deals. get in now and get the chrysler town & country with a generous cash allowance, or 0% financing for 60 months. the trail rated jeep grand cherokee also comes with a cash allowance or 0% financing for 60 months. or choose a hard working all new dodge ram truck with a cash allowance that's tough to beat. all with our best in the business lifetime powertrain warranty. so hurry come see the deals we've built for you at the dodge chrysler and jeep summer clearance.

steve: the oak ridge boys. clayton: you guys will be performing saturday night at ocean grove. they spend over 160 days a year on the road. do you have a routine down? who packs your clothes? >> we do that individually. ainsley: and you live in the that boyses? >> we travel in the buses. we live at home but we live a lot on the road, too. we have tell equipped with everything. steve: you come out with your 30th studio album the boys are back available now everywhere. by the way, the oak ridge boys will join us i