television cameras up there on the japanese lab. gretchen: it is great to be back here on the couch. see you tomorrow. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- bill: this is a fox news alert. we begin with new developments in the effort to control health care. five days until the house goes on recess, and nancy pelosi promised a vote on health care this week. now the cbo is releasing a proposal to cut medicare cost, and said that it will save only $2 billion -- now the cbo is releasing a report saying that the president's health-care plan will only save $2 million a year.

good morning. megyn: we had a surprise baby shower from our friends at the beach this weekend. they made us play games where we had to change diapers on teddy bears. bill: i heard you came in second place. megyn: you had to change their diaper, and then redress them. bill: hang in there, doug. megyn: back to this breaking news. moderate democrats have been blocking progress on this bill because theyç are worried about the price tag. you hear that it is the republicans, that it is not, it is the moderate democrats. new criticism from the congressional budget office.

the white house, say says, howe, -- bill: with that as a backdrop, we have stu varney with the numbers. what does this mean for the debate in washington? >> it is a big deal because people are now saying, dream on. cost savings in the medical business will not happen. so the white house changes their tone in the debate. this council of medical providers could change the type of treatment that we get, and it will not work. it could save $4 billion over 10 years.

then the white house comes back with peter orzag and says, this idea of a council of providers, we know that it is not going to cut the cost dramatically. it is going to reduce the cost of the increase. we will merely slow down the rate of increase. any way you slice it, if you socialize medicine, it cost you hundreds of billions of dollars, if not a trillion. no, that is why they cannot get this bill to that -- bill: that is why they cannot get this bill to the floor. ç>> that is the sticking point. it is always about money. bill: thank you.

megyn: so how are americans feeling about health care reform? according to a new gallup poll, 40% of americans want some reform by the end of the year. 30% want reform, but not by this year. 24% are against any kind of reform. that could be affecting the president's latest numbers itself. the same poll says 29% strongly approve of the way obama is doing his job. çthe 40% strongly disapproved. that is the first time the president's negative numbers have reached double digits. bill: last friday, we did not know what what happened that afternoon, but new details in

the story from massachusetts. police now on the 911 that led to the arrest of henry louis gates. the woman who reported the break in never reported race and only saw on the backs of the men on his porch. that led to the rest by james crowley. that created a nationwide firestorm. crowley, a white officer, cited gates for disorderly conduct. this is video of him going back to work today. the president, as controversy when he said that those police officers acted stupidly by arresting him. now we are hearing about a makeup session with gates and crowley, for a beer. this is what robert gibbs said about it on sunday. >> it is our hope that this can

be part of a teachable moment, that we can create a better dialogue between communities and police and help everyone to their jobs better. the president hopes that both can come to talk about the issues and perhaps have a beer. bill: that would be an çinteresting photographs. a bit later, we must talk about the opinion that president obama is wasting time. megyn: in the murder of the u.s. border agent is not yet solved, but officials are identifying one suspect. a father of two was shot to death saturday night. mexican police say this man -- can you look at this? what is different from the way

that we have been in the states? is this how they do in mexico? çbill: how about that gun? megyn: anyway, police say that he is the trigger man. he was captured on friday, and he was carrying a border patrol- issued pistol. we have more from our reporter. >> the flying is still at half staff as they continue to search for answers. take a look at this video coming to us from mexico. the men are accused of killing border agent robert rosa.

mexican authorities announced the arrest over the weekend, saying that he is the main suspect in the killing. mexican authorities also say he was carrying a border patrol- issued a pistol at the time of his arrest, but officials will not confirm if they are responsible for the killing. the fbi is still offering a reward for information in the case. in the meantime, rosa's family is still searching for answers. >> heç was the best father to s kids. that was the number one thing. he was always there for his kids. >> rosa is the first border agent to be killed in the line of duty from this office in a

decade. megyn: our condolences to his family. that was our affiliate reporting. bill: we made light of that mug shotç -- you have to compare tt 12 kick nolte. -- that one to nick nolte. he looked like he arrived in a convertible. megyn: you wonder why they have different pictures. bill, was he first? -- bill: was he frisked? megyn: nonetheless, we will see if they get justice. bill, the number one -- bill:

the number one concern for most americans it is health care. will it change the treatment you receive? the short answer might be yes. we will talk to a real doctor who sees real patients. megyn: and we will tell you why some scientists are worried about the possibility of machines taking over mankind. nothing beats walmart's unbeatable prices... but now they have new areas where i can find the brands i use every day-- and save even more.

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megyn: a wrong way driver causing a horrific wreck on a new york highway. there is nothing left of the vehicle. a woman driving a mini van carrying five children got on the highway heading the wrong direction. it smashed into an s.u.v. and then slammed into another s.u.v.. the driver was killed along with four people in the minivan.

there is a child in critical condition today. he lost his mother, sister, and three cousins. authorities are still investigating how the driver got going the wrong way in the first place. bill: same highway, same day, another runwawrong way car. you can bet they will change the sign into. now to other news. the chief ofç staff's brother says that health care treatment should be denied to some people who does not need it. he includes those people who are unable to be participating

citizens. in other words, your relationship with your doctor could change. i want to bring in a doctor of internal medicine. good morning. i want to talk about)this idea of ration care. how would care came under this system? >> -- change under this system? >> last thing i want in my office is a government official supervising me. it is unbelievable to me. this may be with the way i practice medicine. bill: in terms of practicality, would you be given 100 cat scans a year and then after that it is no more? is that the way it would work? >> no, we are going to have

rationing. there is no way to take care of more people and spend less money without rationing. a computer-based program will be telling me what works best here and there, based on data. so they are going to try to tell us doctors, after spending years with education, how to do our job. i may as well leave my office, locked the door, and walk away. the day that i cannot consult with my patients, ithat is the day that i walk away. bill: what kind of guidelines would tellç you how you could d

could not operate? >> you would have to look at their age, diagnosis coverage, whether it's a test is available. let us say want a cat scan, but there are not available because they have shut down. you have to remember, there are other countries where this occurs. people from canada and great britain come to this country for medical practices. çbill: sometimes people do not need these procedures, and that is where you can save money. that is the argument. >> look at the life of senior citizens. we have increase the quality of their life through so many technologies. look at the improvements in medical care. you have to leave it up to the doctor. i always try to use my best

judgment when i see a patient. rationing cannot stand in place of my judgment. bill: i understand your position. you are against the rationing care, but it is really a system that is strapped for cash. what is your plan for saving health-care money in america done? >> -- then? >> that is a great question. 85% of the people in the country are happy with their plan. we need to look at the other 15%, increase access, and look bat tortç reform. we need to do this piece by piece. bill: there are some who believe

that health care is dead in the water. thank you for getting up early in the morning with us. megyn: new concerns from the los angeles county coroner's office. they are in the hot seat. bill: and the fed's discovering aç massive corruption scandal n new jersey. our first look at the black market for a legal organs. -- illegal organs. ♪ what are you doing for lunch? how about crispy beer-battered shrimp and chips at red lobster? or maybe one of our coastal... soup and grilled shrimp salad combinations. our wood-grilled salmon blt. or chicken and your favorite shrimp.

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bill, the los angeles county sheriff's office lookingç into the investigation of michael jackson. the coroner's office could have

leaked information related to the pop star's death. there was a report that at least half a dozen workers had improperly viewed his death certificate online. megyn: a massive political corruption scandal uncovered in new jersey. federal agents arrested more than 30 people, and they are not your average citizens. three mayors, two state lawmakers, and five rabbis, not to mention the building inspector. it does not end there. it also includes an international organ smuggling ring. çwe have this unbelievable reports.

>> for these people, corruption was a way of life. >> the disgraced mayor walking out of the court room without a word, along with other public officials. ç>> this case is not about politics, religion, but it is about corruption and arrogance. it is about a betrayal of the public trust. >> fbi agents arrested more than 40 people including the mayors of hoboken and ridgefield. there were so many people, they had to be loaded on a buses. >> it is unprecedented because of the combination and number of individuals involved, the level of criminality through the state, and the broad range of

crimes. >> mayor peter cammarano accused of accepting $25,000 in bribes in exchange for building approval. >> he is innocent of the charges. >> one man is accused of illegally sellingç organs. >> the case records both video and audio. >> the investigation began three years ago when this man was arrested. in his plea deal, he became an fbi operatives. he posed as aç businessman and the suspects played right to his story. megyn: there is so much to this.

the story is so disturbing. we made a phone call to one of the country's top organ donors to look at the scope of the war in black market here in the country. what do you think they're going cost for a kidney is? do not go on line, just take a guess. how much do you pay? bill, how much are you willing to pay? -- bill: how much are you willing to pay? megyn: one of them had a baby face. maybe they were 31 years old. çbill, coming up, part of texas

-- bill, coming up, parts of texas -- bill: coming up, parts of texas in such a bad drought, they could be lucky to have drinking water. megyn: and president obama and bitesç professor gates and officer crowley over for a beer to talk out their discussions. is this necessary? apparently, the year is the solution to race issues. ♪

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bill: the state of texas suffering from a dangerous water shortage.

77 of their 254 counties are in extreme or exceptional drought. many are following strict water guidelines, because there may not be enough drinking water. we have a doctor in texas. how bad is it? >> it is dry. [laughter] about 17% of the state is in exceptional drought. in many areas, theç driest measures ever since record- keeping began. bill, how about the drinking water, is that in vain -- bill: how about the drinking water, is that in danger yet? >> it depends on the area. we areç seeing significant deflations in water supplies and

now we are going into our drought contingency plan. that means every water system is based on a contingency plan, where they have to ration more and more of that water. bill: when was the last time you got rain? >> we got a little bit a few weeks ago, but nothing that has brought significant relief. bill: it is probably 100 degrees as well? >> that is right, about 25 to greet -- days above 100 degrees this month. bill: we have had a ton of rain here in the northeast. we would be glad to share some

with you if it does not work out. megyn: washington has taken an art form by taking interesting topics and giving them boring topics -- titles. it is the first strategic economic dialogue between u.s. and china. u.s. officials will be sitting down with chinese counterparts to discuss trade and budget deficits. that is important, so why such a lame name? çbill, that is pretty fascinating. -- bill: that is pretty fascinating. take a look at the big board.

treading water right now. investors are waiting for more earnings reports, and that will give us a better gauge of the economy. are we really in a turnaround? we have been up and down, but in the past month, we have been on a tear. çmegyn: at the white house, the keg is cooling. he invited professor gates and officer crowley to the white house for a beer to put the incident behind them. the president did not help last week with his comments when he said that when police reported to be home after reports of a break-in and arrested a professor, calling their actions

stupid. but is this enough to solve the issue? with me now is bill kristol. former white house press secretary dana perino said, it is fine to come down and say what you want to, but do not prolonged the thing. that is just keeping the spotlight on him. many feel like that did not bode well for the president. >> the president is free to say what he wants. it is a teachable moment, however. i think, in aç way, everyone

wants to move on to more important issues, but it is interesting what has happened. there seems to be a reaction to president obama. i hope professor gates and reflects on how he behaves that night as well, and citizens around the country can really think about where race relations really are. megyn: even when the president tried to dial things back, he çstill accused the police officers of overreacting. that is something they have denied. again, the president says he does not know all the facts, but he believed they overreacted. is there a bias on behalf of the

president? some have said that this is a classic example of race relations. >> i think what president obama said reflects a kind of limitation in his understanding of the country. also what he said about doctors is pretty revealing. megyn: that has not been getting a lot of press. update us on that. >> he said current reimbursement rates forced us to go to the doctor or a minor -- for minor

things. the number of tonsillectomies has gone down since we were kids, so who cares about the details, but it isç just revealing about how he sees this issue. it is a broader characterization of how these doctors should feel. i think it shows his willingness and perhaps condescension to a lot of people in america that are working hard. megyn: it is interesting that you bring up that idea. i was reading an article in the ç"new republic" that talked abt the reason that president obama had to do this. this not only touches on issues of race, but also issues of

class. this was not a favorable piste to conservatives, but they say the favorite line of attack among post-push conservatives is the aggrieved white guy. first we had do with a plumber, the sotomayor case, and now this. the president cannot be on the wrong side of these class-race issues. >> i do not think it was an attack. it is just a fact, she discriminated in new haven. i think the class issue here is important. i think the president will try to bring us together by serving everyone dear.

-- beer. even for saying this, i will be attacked for being harsh and using class as aç weapon againt president obama, but there are issues like this in the country, and i believe that he is something of an elitist. i do not think that is a criticism. megyn: back in the day, i was a pretty big fan. çbill: do people still drink ad beethat beer? [laughter] it is a program called the cash

for clunkers. if you want to buy a new car, now is the chance to save a lot of money. but the rules are very confusing. we will show you how it works. megyn: and hollywood has an obsession of machines taking over the world, but now scientists are releasing a warning of machines getting too smart. should we be worried? (male announcer) if you've had a heart attack caused by a completely blocked artery, other heart attack could be rking, waiting to strike. a heart attack caused by a clot, one that could be fatal. but plavix helps save lives. plavix, taken with other heart medicines goes beyond what other heart medicines do alone

to provide greater protection against heart attack or stroke and even death by helping to keep blood platelets from sticking together and forming clots. ask your doctor about plavix, protection that helps save lives. (female announcer) if you have stomach ulcer or other condition that causes bleeding, you should not use plavix. when taking plavix alone or with some other medicines including aspirin, the risk of bleeding may increase so tell your doctor before planning surgery. and always talk to your doctor before taking aspirin or other medicines with plavix, especially if you've had a stroke. if you develop fever or unexplained weakness or confusion, tell your doctor promptly as these may be signs of a rare but potentially life-threatening condition called ttp, which has been reported rarely, sometimes in less than two weeks after starting therapy. other rare but serious side effects may occur. (male announcer) if you take plavix with other heart medicines continuing to do so will help increase your protection against a future heart attack or stroke beyond your other heart medicines alone. you may be feeling better but your risk never goes away. help stay protected, stay with plavix.

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megyn: an oklahomaç man stands accused of killing two sheriff's deputies. he is being held on first-degree murder charges. investigators said that he gunned them down while the police were serving a domestic dispute. one of the deputies died at the scene, another at the hospital. another woman was also hit by a stray bullet. she remains in serious condition. >>ç this is the voice of unity.

we are one. after reviewing all personnel files, i have decided to serve you as long as you wish. bill: that was from "colossus." our man in charge of everything computer-related says it is a terrific movie. a super computer designed to protect us from nuclear war instead takes over the world. the group of scientists debating over the weekend about machines doing just that. with me now is a physicist professor. good morning, professor. you are a little dubious about this. a lot of people think the fusion between man and machine is

around the corner. what do you think? >> let us have a reality check. our most advanced computer right now has the intelligence of a cockroach, aç retarded cockroa. bill: mentally challenged. >> that is right. they are as smart as a cockroach. they bump into walls and fall over all the time. every 25 years, scientists say thatç the robots are coming, ad then they do not, and then we say, the next 25 years. bill: we have predator drones in afghanistan, cars that do not

need a driver. >> that is right, but they are drones with someone controlling it. looking at cars that drive themselves, they follow the road map with gps. they are nothing without us. i shook hands with one robot, and it took three hours to set up that action. bill: so it is just like a cockroach? >> that is right. i spoke with them privately, and they said that it has the intelligence of a cockroach. in the coming decade, maybe something as smart as a mouse. at the end of the century, maybe

a robot as smart as a monday. at that point,ç -- as a monkey. at that point, we need to install certain measures to shut them down. bill: we are showing some clips from a movie talking about the fusion between man and robot, in the next 25 years. his argument is simple. the ark of technology is so steep, that even we do not have the ability to control that movement. >> there is a loophole there. the doublingç of technology wil come to a halt. this exponential rise will immigrant -- eventually slow down and crashed. silicon valley could become a

rust belt later on. we are working on a replacement for the silicon transistor, which may end up in the museum. there is a problem with the doubling time of computers. bill: we understand, we are out of time, but you admit that it will happen at some point? >> if that happens, we can install a chip in their brain to turn them off. megyn: the alaskan governor has left the state house, but true to form, she did not go quietly. >> democracy depends on you. that is why our troops are willing to die for you. so how about in honor of the american soldier, you quit making things up. are you receiving a payout from a legal settlement

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bill: a couple of big stories coming from israel. strong words against the iranian nuclear program. they say no option is off the table. meanwhile, the monsoon season is breaking on the coast of africa. a statement issued today warned of increased pirate activity. we have that to look forward to. also, from paris, french president nicolas sarkozy back to work after being released from the hospital today. he became dizzy after jogging during a hot day. doctors say he will be back again in a few days. megyn: the world can be a tough day -- thing for returning

veterans. one man is helping, by giving service dogs to people who need them. tell us what this program is about, phil keating. >> the program is designed to provide emotional and physical support to wounded veterans coming home. they can provide emotional support for these soldiers, many of whom suffer from ptsd. we met up with one veteran in atlanta. his dog is trained to pick up items that he cannot. there is another story of a returning veteran who had a seizure, and his do

tell, and started barking and barking until someone else came over. megyn: it is amazing what they can do. how big is the need for these dogs? >> pretty big, according to everyone involved. there is one veteran in florida that we met up with. one company called vet dogs depend on donations. some lawmakers are starting to bring up this idea and appropriate a bit of money for this. training can cost a bit of money. but according to the betterment to have them say that they are just absolutely indispensable. megyn: it is great to see them doing their best to help our soldiers in need who are too

often forgotten. if people want to help the organization, what can they do? >> they can certainly contact vet dogs. if congress appropriated this money, hundreds and hundreds of veterans could be given a dog. many times, dogs will accompany the veterans at walter reed during their rehabilitation. for many of these individuals, like the individual in florida, he cannot say enough about how much emotional and physical support his dog has provided. megyn: i read not long ago of a veteran of iraq that woulhave ag

that would protect him on the subway when people got too close to him. it is amazing. çbill: thank you. what started as political corruption has turned into something much darker. an international black market of human organs. megyn: and imagine waking up one day and hearing reports that you are dead. it happened to one mixed marshall arts fighter. now he is upset because asç it turns out, he is alive and well. he needed everything for college: towels, sheets and then there was the stuff he wanted... like a new microwave. and because of walmart's unbeatable prices, we were able to get it all. ...and then some.

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megyn: this is a fox news alert. some congressional fans trying to pass a reform bill on health care are bringing up the idea of insuring -- taxing insurance companies. don't mean them? it turns out, there is a downside? e. >> if you tax and insurance companies, and will affect the cost of every policy. megyn: and that is where we begin on this morning. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- bill: more and more in congress taking heat for the math behind

the plan to pay for health care reform. megyn: after all this criticism of how they are going to pay for this, now the latestç is how about taxing insurance companies? >> that is right. this is under consideration by the senate finance committee. an alternative to taxing employee health care plans. this would tax the gold-plated offers, the best plans. you have heard some say thatç e cost would just be passed on to individuals, and not surprisingly, insurance companies are not for it either. megyn: how do the democrats feel about this? >> the leader of the blue dog

democrats seemed to be supportive, calling it an interesting and promising development. >> it is a free country. you should be able to buy what ever plan you want to with your own money, but you should not be able to subsidize through these luxury plans. >> some are receiving the benefits of these expensive health care plans, but because nobody is paying taxes on them, it constitutes for others paying for it. megyn: this is a big headline from the cbo. they took a look at these plans, and they said a key part of the democrats' plan, the

medical oversight board -- this was the group that must going to oversee medicare, public health care and the siddecide what is e efficient. now the cbo is saying, not going to have locked in savings. what do we know about this? -- a lotç in savings. >> that is right. they said that enacting this board could only save about $4 billion in the next 10 years. of course, that is a drop in the bucket. white house director peter orszag responded on sunday saying that the proposal was never meant to create savings, just to reduce costs.

he took a swipe at the report, saying that he knows the organization sometimes has a bias of exaggerating cost and the ulster andç -- under estimated savings. -- underestimating savings. bill: nancy pelosi this weekend said that this plan was supposed to improve care, and should be seen as economic stimulus. >> health care is basically a stimulus package. the energy bill was meant to create new jobs. bill: she also says she expects a final bill before the house before the august recess. that begins in five days. megyn: how would you like some

good news? august vacation is on the way, and good news for drivers. the price of gas is down 7 cents. the national average is $2.50. fell off while you can, because analysts -- fill up while you can, because analysts believe that the price could be going back up. who goes to the gas station to horde gasoline? bill: how about more good news? a 11% increase in new-home sales. in the meantime, sarah palin is looking for a new home. the former governor handing over powers to the lieutenant governor. çduring her farewell speech, se

had strong words for the media. >> first, some straight talk for some in the media. you have such important jobs, reporting facts, and exerting power to influence. you represent what could and should be a respected and honest profession, that could and should be a cornerstone of our democracy. democracy depends on you. thatç is why our troops are willing to die for you. how about in honor of the american soldier, you quit making things up. bill: we are live in alaska. how was this received by the folks in alaska? >> those comments were red meat

to a crowd who was pretty angry over her treatment in the media. this was a pro-palin crowd of about 500. many were hoping to get a picture of her. this was also a speech aimed at a larger audience from a woman who clearly has national ambitions, at least an ambition to have an influence. without saying so specifically, she took a shot at president obama and democrats for their role in overreaching government. >> be wary of accepting the government largess. often, it is not free. >> she went on to say that

alaskans know best. freedom comes from god's grace. the people who lift themselves up by the bootstraps, that is the type of people that americans should be, not the type of people who are waiting in line with their hands open. bill: was there any clue in her speech about her future? >> not at all. we know she has a book that she is working on. that will be releasedç next ye. she has also been invited to speak at the reagan library. we do not know if she has accepted or not. we also know that she will try to be relevant, keep her face

out there, but we just do not know if that includes a run for the white house. bill: 6:00 in the morning there? look at how light it is. thank you. a beautiful time this time of year. lots of mosquitos, though. people who always gets bitten. bill: the most shocking allegations coming to life about organ trafficking. the black market and the incredible prices behind it. megyn: we will update you. also, a professional fighter, kimo leopoldo, fights and then in the ring, but how about

reports that you are dead? bill: the cash for clunkers program. how you can get paid.

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video tape of the hydroplane racer who says he is ready to get back on the water after this frightening crash. he flipped in the air, rotated, and landed upside down. he was able to get out on his own. his team says that he is ready çto drive this weekend. wow. megyn: sadly, there is a lot of corruption with politicians in new jersey. the arrests last week of over 30 people, including several politicians, three mayors, city councilman, shocked even some of the mostç cynical here. this guy is accused of buying kidneys and reselling them on

the black market. levi rosenbaum is accused of being the middleman in what is being called the kidney mafia. poor people in countries like india, for example, are paid $2,000 for a kidney. then the buyer sells them here for as much as $180,000. with me now is a resident scholar at the american enterprise institute. she is also an author. good morning. i know this is something near and dear to you because you have had a kidney transplant. >> yes, i had a wonderful friend who gave me her kidney in 2006. but that almost did not happen and i would have gone on dialysis.

the quality of life that you have on dialysis, for many people, it is quite miserable. i can certainly understand from a patient's point of view, why they would engage with someone like mr. rosenbaum. megyn:ç honestly, if you have e money, and you are told you need a kidney or you will die, you will have to consider it. unfortunately, you have people like this rabbi who intended to take advantage of the donors. there was recently a bust for this operation of people having

their kidneys remove without theirç will to be sold on the black market. this trade is in existence, alive and well. >> with 1.8 million people around the globe in need of a kidney, this market will simply derived because supply is not enough. even though they are trying to crack down in china, there are one of the most notorious places. organs will come and they come from executed prisoners, gang members. it happens in egypt, the philippines. megyn: it costs $6,000 in iran, and even less in india. what was this guy doing? he was getting kidneys from

people in india, and then doing what? trying to find the highest bidder? i am hearing the donor that tend thousand dollars, and the rabbi got the remaining of the $160,000 cost. >> every situation is different, but that type of the asymmetry is common in the black market. my understanding of what he did was he brought together people from israel. i have a feeling many of them were not citizens because he said they often did not speak english. they would come here and would be coached to say to the transplant center, i am a friend of mr. smith, i am here

and i want to give him my kidney. çmy donor was investigated. they want to make sure that you know what you are getting into, make sure you understand the risk. although, there are some people -- about 100 every year -- called good samaritan donors, who are so moved by these types of stories, they give freely. megyn: the story is so salacious. you have feelings about how we we can cut down on the black market as well as people waiting for organs. >> you are right.

the only way to get rid of the black market is to create a legal exchange. people who are willing to give a kidney while they are alive, they would offer it to a list, and in return would get a tax credit, contribution to their 401k, some type of reward -- not cash, because we want to discourage people who want to do this just for the money. right now you can decide that you can give your organ to the next person in line. the only difference now is there would be a benefit to you. megyn: they already allow egg and sperm donation. with that, i will leave it there. thank you. bill: he worked with al qaeda,

was sentenced to 30 years in prison, but now in virginia a va judge wants to have a conversation with him. megyn: and two tested positive for h1n1 at buckingham palace? is what i need

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bill: swine flu has apparently spread to buckingham palace. they are under new cleaning

words after some workers tested positive for h1n1. we are live in london. >> we do need to emphasize that at this time, it is just a scare. buckingham palace employs about 1000 people with so many different jobs, officials say it is likely that someone contract of swine flu. they have not released any other details. i have to emphasize, we are not hearing that any of the royals has contracted this disease. bill: has anyone in london died because of this? >> yes, we believe 33 people have died from the illness. again, i have to stress, many of those people had underlying health problems, could have

been weakened by another illness, but officials are putting on one clear message. if you start to see symptoms, call a hot line and there is a system in place to getç vaccin. bill: we are hearing warnings over here than in the fall we could see a return of it. we hope that is not the case. thank you. megyn: sad news from the world of sports. one of the most popular fighters in the world's most fastest growing sports is dead. that was news to him as he was watching withç his girlfriend. now comes the lawsuit. bill: is your gas guzzlers sitting in the driveway? if you turn in now, you can get

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megyn: this is a fox news alert. we are getting some unbelievable reports of violence in the west bank. some have said that the mother is seeing an uptick between the -- have said and that they are seeing an uptick in violence between palestinians and israelis. mikeç tobin, what is happening? >> it was an act of the anti- western people. they are a group known as helicopters, a kid to grew up in these areas of the west bank. if you look at the video, you see this shoving match with the

police and these groups of settlers. it may look silly to you, how canç this act to a bold defiane against the u.s.? i will tell you what ultimately happens. these small homes or ultimately give away to any legal settlements. -- an illegal settlement. however, there is a road that has been built, including power lines. they get power from the israeli electrical grid. this is all nationalized, said that is the reason that it is "illegal." soldiers have been taking them down, that you can bet that they are creeping up on the backside

of the hill. the reason this is an act of defiance it because the u.s., among other countries around the world, are supporting a two state solution. the palestinians want this land in the west. if you support a two state solution, it would be contrary to what they want. it is no accident that they are doing this while the u.s. is your. -- is here. megyn: thank you. bill:ç in the meantime, the rel estate agents -- we are going to get to this story.

it is called cash for clunkers. you are going to find out about it. [laughter] thank you very much, guys. çmegyn: and just so you know, about five different stores are showing up on his teleprompter. bill: if you are driving a gas guzzler right now, you can take advantage of a government program. you can exchange it for a more fuel-efficient vehicle. making the deal more attractive, take thousands of dollars off the sticker price. so what does this mean for car dealerships? we have an automotive expert with us this morning. good morning to you. >> good morning to you. how are you?

bill: start with this grand marquee. why is this defined as a clunker? >> it has been on the road for a few years. the criteria it is it needs to get a combined 18 miles per gallon or less. the key is starting with the internet. do your research and learn as much as you can about this program. this is a good and website, p @ this is the 1995 grand marquee. bill: what is its mile per gallon? >> 18 mpg. and it is an older model.

but if you qualify, you can put in your information, and it will tell you how much money you can get. çif you were to trade that vehicle in, you would get $4,500 from the government to move you into something like this, the fusion. i want to move over to this vehicle now. this is the patriot. you can get the $4,500 with this one, and you will also get more money from the company. it is intended to get people in the dealership. i went to one location the other weekend, and there is little

information about the program, but they are excited for it to come along. the best part about it is, even with the government incentive, you can still get a rebate from the dealership. bill: u.n. to two locations, and what happened? -- you went to two locations, and what happened? >>ç i asked for their clunkers specialist, and i spoke to two people, but they did not have very much information yet. however, they had consumers coming in who were excited about the program. bill: so they did not have enough information to explain to their customers? >> that is right. the government has notç providd

all the details yet, but it is forthcoming in the next few days. bill: the whole program goes back to two things, fuel efficiency and age of the vehicle. you need to determine that in order to qualify. >> that is correct. 18 mpg, you need to get better than that. it also needs to be less than 25 years old. the key component to the program is really working to eliminate some of these less-friendly eecy cars. bill: by the way, the for fusion, you get $4,500 -- ford

fusion, and you could $4,500. the jeep patriot, $9,000. the need to visit these web sites in order to see how you can best take advantage of this program. çthe commercials are starting o run on just about every station here in new york. thank you. megyn: real estate agents say location is everything. now homeland security wants to build a research lab in reno, kansas. the problem is, that is also known as tornado alley. ç-- greenville, kan. critics say in the lab should be built somewhere else, worried

about hitting the facility and releasing viruses held with them. -- within. bill: their horrific crash for a hydroplaner. megyn: and a mixed martial arts fighter announced that. at a press conference, he said that he was pretty sure he was alive. that story is in kelly's court. (voice 1) we've detected an anomaly...

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index science nutrisystem d works. satisfaction guaranteed or your money back! new! nutrisystem d. lose weight. live better. call or click today. gregg: coming up on "happening now" the former governor of çalaska, sarah palin, is -- wht is next for her? health care back on capitol hill today. poor people are going to get discounts and subsidies. what about modest, middle income people? megyn: kelly's court is back in session. rumors of his demise were greatly exaggerated. last week, kimo leopoldo was

widely reported as dead by some media outlets. that came as a surprise to him, who later held a press conference asserting his aliveness. >> i am here to reassure the condition of myself, to my family and fans. i want to apologize to my loved ones who were affected and heard by these rumors. megyn: now his manager says that he is getting ready to suit. how can something like this happen? does he have a case? çlet me ask our panel. good morning, a panepanel. not just a sports web sites, but tmz confirmed that he was dam.

a lot of you may not know who he is, but he is a big star in the ufc. people were upset. now he is getting ready to sue. >> he is going after tmz. he is going after them, and they are in big target right now. they were the ones who reported about michael jackson first. people believe what they say. if they are going to break news, they have to get it right. it could be a costly lesson for them. his son was upset. family members could not reach him. megyn: there were reports

earlier that he had a problem with drug addiction and so on. by the way, after we showed his photo, we showed a man from tulsa who apparently originally çstarted the rumor. look how happy he is. this is after she was arrested for public intoxication. apparently he is behind it. can timo sue him? >>ç everyone seems to think tht there is an automatic suit for liable in cases like this. when there any damage to his future prospects? absolutely not. if anything, it kick started his

career. i can see it now -- that from the dead. -- back from the dead. megyn: what about that? could this be a boon to his career? >> it could be, but tmz should be held accountable. how much money he gets in damages is relevant, because he may not be able to recover that much, but at the very least, he is owed an apology. megyn: i do not mean to be a cynic, but is there any possibility that he and his people are behind this? >> i am going to give them the benefit of the doubt.

it certainly sells likçsmells t could. megyn: is there any evidence of this? i am only asking because i know that there is. according to what i read, supposedly, his manager said that we are going to hold a press conference today. the reports wereç asking, is he alive or dead? he said, we will get back to you. >> he would have told his family members. they are the ones who could be dealing with the emotional distress. if you find out that your loved one is dead through tmz, i would imagine that he would have told his family first.

>> tmz may try to frame the story that way. megyn: how can he sue tmz? you have to be able to prove that the person who defamed you actually had malice. they got it wrong, but how are they going to prove malice? >> that will be a problem. but in terms of just not following up, 16 minutes after they posted the story, they discovered that he was alive in his home. they said then they confirmed the story. thereç were about 200 phone cas trying to confirm this.

other people that relied on tmz. you have to verify your sources. megyn: this guyç says that he posts nonsense all the time, and has connections with other fighters. look how happy he is, though. >> i think it was actual goofiness, rather than malice. i think they just need to get together and have a beer. >> he is going to be here on wednesday with mike straka. megyn: and that should be interesting to watch. just in case you cartooning and, -- are tuning in, kimo

leopoldo is alive and well. one final word, he has no case against tmz, who seems to have reported this information in good faith, but erroneously. unless people report with actual malice when commenting on a publicç figure, he has no case. he could have a case against this alleged blogger. although, he does not have deep pockets, so what is the point? bill: just go to the source. pickup the phone. ça dare devil trying to break a world record, but it goes incredibly wrong. thankfully, he survives. wait until you hear what she was trying to do. -- he was trying to dupe.

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megyn: and virginia man accused of plotting to assassinate president bush sent back into court today. he will be reese sentenced -- he will be sentenced again. this guy is from falls church, virginia. he was convicted back in 2005 for those alleged acts. he joined al qaeda while attending college over in saudi arabia and received training to carry out the assassination plot. bill: that protest coming because the mall gave the boot to a conservative kiosk.

brian from our felli it has that story now. >> they think opinions are offensive. >> about 100 people lined in protest. >> i am 80 years old. i just decided if not me, too? who will stand up for the freedoms that we're losing. >> i think it is amazing. this is an emotionally, one of the most touching days that i can remember. >> the owner decided not to extend the lease. >> where it has been twisted is that one person does not like it and therefore house to go because we cannot offend anybody. >> he claimed it was a knee-jerk reaction after a letter to the editor complained about the

kiosk, saying that the product support ideas such as racism, sexism, and even slavery. a week later, it was reformed that -- he was informed that his lease would not be extended. >> i would like to remain. >> protesters cry that it is a double standard. >> if you throw this guy out, it is hypocrisy of the worst sort. >> we also learned that the person who wrote the letter was not a customer of the mall, but actually an employee of a neighboring kiosk. the clerk says that the person no longer works there as of last week. >> protesters vowed to continue the protest. >> my biggest concern is to keep myself and my people employed. bill: the story on going in charlotte, north carolina. megyn: daredevil drivers, do not try this at home.

a world record attempt comes up dangerously close to -- dangerously short. bill: we told you about the program that gives you cash for the old guzzler in your driveway. gecko vo: geico's the third-largest car insurance company in the nation. but, it's not like we're kicking back, now, havin' a cuppa tea. gecko vo: takes lots of sweat to become that big. gecko vo: 'course, geckos don't literally sweat... it's just not our thing... gecko vo: ...but i do work hard, mind you. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad, 'specially if it's marked "the gecko." come on people.

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a comet or asteroid plowed into the planet jupiter back on july 19, leaving a scar the size of the planet earth. nasa says that these pictures were captured by the hubble space telescope. the impact crater is said to be several football fields long. an amateur astronomer discovered the collision. these pictures are significant because astronauts made repairs to the hubble telescope. bill: he came up a little bit short. he went head on into a ramp, his car bursting into flames. the crowd fell silent. paramedics worked to pull him out of the vehicle. he was treated for head and knee injuries. attempting to break a world record jump of 200 feet in his car with a car on fire.