met in the woods and the soviet union was no more. from new york, good night america! >> gregg: i'm gregg jarrett and welcome to america's news headquarters. >> julie: i'm julie banderas. a major mess at one of the nation's busiest airports after an evacuation of la guardia. what happened and who police say was responsible for a headache for thousands of travelers. >> gregg: and a cash for clunkers program, well it's not going away quite yet. so much will you be able to trade in your wheels. >> julie: we're going to find out. >> a plan to change held care in america on its way to a vote by the house of representatives after late night maneuvering to get conservative democrats on board.

molly henneberg is live in washington. what happens in the house now? >> molly: three committees in the house have passed bills the ways and means committee, education and labor and late last night the energy and commerce committee. so now democratic leaders will take those three bills and combine them in one big piece of legislation. democrats say they are ready to get it to a floor for a vote in september. listen to this. >> today it's a matter of economic necessity for the people and the country. we cannot afford to compete in in world while we're carrying this burden. >> molly: five democrats voted against the measure last night indicates that democrats may not be united or unanimous in the final vote expected in the fall. >> julie: but molly, republicans in the house say it's good to be bad for health care and bad for individual states. >> molly: part of the legislation calls for cuts in medicare and medicaid to pay for

a health insurance plan. republicans in the house and senate say it's going to put a new burden on the states. take a listen. >> in my home state of south dakota the new medicaid requirement could require $45 million a year in new state spending. that may not sound like much but are for a small state that is required by law needs to balance its budgeted every year, its lot that means higher taxes or cuts to other priorities. >> molly: the senator says the government run option could lead to quoted, delay and denial of treatment. the president says he is pleased before leaving forts summer recess and heading for camp david. he put on a statement saying that the bill will lower costs and improve care and strengthen consumer protections and choice. he urged lawmakers to, quote,

build upon the historic consensus that has been forged and doo do the hard work necessary to seize this unprecedented opportunity for the future of our economy and health of our families. >> julie: thank you very much. >> gregg: some people might call it a victory for the president but the war certainly isn't over next battlefield is the senate for the big health care reform. where democrats are split, republicans smell blood. so what can we.expects once congress gets back to work this fall? joining me is a staff writer for role call. where is this heading right now? >> it's a matter of opinion. lawmakers from both parties on both sides of chilly are going home after the break and guik duke it out. they are going to hear from constituents on how people feel about health care reform around the state of the upcoming debated in the fall. what house members and senators hear at home is going to

determine in part what happens in september and october. >> gregg: let me stop you. there i may have talked to a lot of congressmen and they all say they are going to get an ear load from their constituents and most are talking about costs? >> that's correct. what polls have shown us. people are month more concerned of cost of health care overall and the desire, they north concerned was w access to health care or the quality of health care. they are really concerned that costs keep going up and they don't get any more for paying more. what necessity real wanted to see is what they like about the health care system preserved and what they don't like, costs, lowered. its old jock about congress, everybody hates congress but they love their congressman. that is how people feel about health care in this country. >> gregg: are people saying,

look i don't buy the presidents argument it's not going to cost us something. he claims this is going to be monetarily neutral, it's not going going to increase the deficit. people don't buy that, do they? >> no, not in part. and the president is concerned that we have a rising deficit and the president is asking the country to spend more money. she saying spend that go money in the short term is going to save the country money in the long term, but there is more anxiety about the deficit than i can recall in the last 20 years. people are is a seeing the deficit sort of at a level they have never seen before. it's concerning them more than i've ever seen. that is one of the things that he has to deal with is convincing people that his argument is correct. and he hasn't been helped by the nonpartisan budget office have scored the bills as cost tipping the countrymen money and not

saving money. >> gregg: look at all the polls. people are uin versionly in agreement on these three things, first of all taxes are going up, benefits will diminish. third they may actually lose their coverage to a government run program wneesmt how the government has done in running programs in the past? >> that is correct. in fact if you saw president obama in the past few days, he was at a townhall meeting and he was explanation to people that one of his biggest tasks is convincing the country that the government won't make a mess of this. if people could only understand that the government isn't the enemy here and you can trust the government, it would be lot easier to get it done. that is the problem. he is having. people look what the government has done with well meaning programs and cash for clunkers program that ran out of money, and they are just hesitant. they want to believe the

president that his plan will lower costs, improve accesses. they are not entirely happy with the overall health care system, but they don't see anything from congress that the governmental can get the job done. >> gregg: something in the end may pass but it may likely be watered down version of what he promised. if that happens, politically what is the impact of that? >> it could go either way. he could score a victory by passing something or the liberal base of his party could be upset he didn't do something stronger. republicans could benefit if people perceive what passes as being bad for the country and not improving things. overall it's a big political mess as we head into the fall. we won't really know how people feel about it until it reaches conclusion. >> gregg: david, thanks so much for your insights. >> julie: speaking of cash for clunkers, the government is assuring car buyers cash for

clunkers will continue through the weekend but it could be coming to the end of the road for the popular rebate program. if congress doesn't approve more cash to keep this thing going. a lot of people signed up for this. >> people wanted to get cash for the clungers better get off their couch now. the program was is toss through the fall but was so popular they blew through the billion in a week. if you trade in for a more efficient vehicle you can get up to $4500. submitting the paperwork online is nightmare and sings they pay the rebate on the spot they don't get reimbursed. dealers worry they are on the hook for the money. they rushed to put another $2 billion in the program and senate takes up that measure next weeks. conservatives say its government handout. >> if you are given three money, you like it and you won't more. that is what this program is.

>> the clunkers program is working too well the rest of the economy shrank but less than predicted. governmental reports that it contracted by 1%, better than 1.5% predicted. here is the president's take on it this morning. >> history shows that you need to have economic growth before you have job growth. report yesterday on economy is an important sign that we are headed in the right direction. >> he warned the monthly jobs report out next week that the country is still losing far too many jobs. >> julie: thanks. >> gregg: police in new york say a man carrying a fake bomb caused today's evacuation at la guardia disrupting travel plans for thousands of folks. people say 32-year-old man was carrying batteries and wires intended to look just like a bomb. they received several calls about his behavior before he even got to the check pointed. she facing several charges, place ago false bomb in the transportation facility, making

terrorist threats. >> julie: police in boise, idaho pulling out all the stops for a missing boy. robert manwel is only 8 years old. here is a picture. he vanished yuas week ago. he was last seen near his apartment building. they say his disappearance is suspicious and fear that he may be the victim of a tragedy. massive search continues for this little boy. they are carefully searching the home of robert's mother and then zeroing on a house in boise and digging up the yard. police didn't say what led them to the house. another focus on the search is nearby landfill. much more to come on this developing story. >> gregg: in tens of thousands of people are now back home in the state of texas today after a chemical fire forced them to get out, to evacuate. the massive fire started on thursday at a chemical warehouse in bryan, texas.

toxic smoke covering most of the town. crews were afraid that it might ignited explosive ammonium nitrate. >> julie: a in tennessee, a minor earthquake rattling the mountains, north carolina and even georgia. it happened around 11:00 this morning. the epicenter of a magnitude 3.2 quake, about 55 miles east of chattanooga, so far no reports of damage or injuries but local there has, it goes without saying, they were surprised to say the least. >> gregg: some good news, the worst of the heat wave is over in the pacific northwest and not a moment as to. folks in seattle not to mention animals are used to rain. city breaking record this week

for the hottest day in its history. mercury topping 013 degrees on wednesday. fortunately these animals beat the heat with wet towels and fans but for the rest of the countries, the wild weather is on the way. >> i love that effect. meteorologist domenica davis is in. >> hi guys. yes, the heat wave have technically ended but we've seen all-time record breakers. we do have some problems, in the upper 80s and 90s tomorrow. so we still do have some heat warnings in and around. there are fire watches which will stay around through the weekend because of the dry air and wind is picking up. we do have increased fire threat

hear here the nasty weather, we do have a cold front that is pushing through the tennessee valley. that means we have a chance of severe weather for the rest of the nephew afternoon into this evening as the cold front continues to push off to the east. dallas, memphis, you are going to be looking at not only a chance for thunderstorms and gusty winds will be one of the biggest threats, but also flash flooding, especially in the eastern corner there of texas. that is when where we could see some pretty nasty flooding by the end of today and tomorrow. and also in arkansas, they are like eight plus inches for the month, fairly through the summer over eight inches too much too much. so the rain has been coming down in this area.

hundreds of thousands of demonstrators have taken to the streets since the nation defeated presidential election. iran's hard line government is brutally suppressing these

ongoing protests. >> julie: and pakistan slum, mobs of muslims descending on christian neighborhoods in the city setting fires to homes and clark with police. today one man, four women and one child all reported dead. the violence set off by allegations that koran was defaced. a federal official accusing some of the violence. police getting pretty aggressive firing tear gas and streets covered in smoking debris. >> gregg: congress's cash for clunkers program, they actually ran out of money in four days. it was supposed to last until november. congress is dishing out billions more to keep it running. that is your money, by the way. so is the program a disaster waiting to happen. find out coming up next. my digestive system didn't always behave.

"thunder and cracks of lightning." whatever i did my digestive upsets came back. but then came align with bifantis. the only probiotic clinically proven to provide ongoing protection against episodes of constipation, diarrhea, urgency, gas & bloating. align brings peace to my digestive system and to me. try align and discover a world of digestive peace. to be a great dad is the most important job in a man's life, but it doesn't have to be hard. all it takes is a few minutes of your time.

>> gregg: welcome back. taking a look at the top stories. la guardia reopening after an early morning security scare. police say a man walked up to a security carrying a fake bomb in a bag. he was taken into custody. >> a minor earthquake rattling southeastern tennessee, north carolina, georgia the epicenter, 3.2 magnitude quake. there are no reports of injuries or damages. michael phelps setting a world record in bulleter fly, winning time is under 50 seconds. they say an interior swimsuit is slowing him down. >> julie: government cash for

clunkers program proving to be very popular. so popular the house has signed off on an additional $2 billion to fund the automotive incentive program. but is that a sign that its huge success or a financial zaflt in the making? joining us is a lauren fix an automotive expert. cash for clunkers, if i could borrow a word from our presidential, stupid idea? >> i've never been a big fan of it because i think a lot of people have been excluded and there is other solutions to get the cars off the lot. >> julie: where did the $2 billion come from? >> well that is part of that lovely tarp fund and everything else they've got funded for helping the economy, boost itself back. but what unfortunately they did they didn't draw new interest in buying cars, they had people

waiting. if you look at the sales, april, may and june, it was dismal. considering what they could have been. people that needed cars, my lease is due and extend it a month and then they waited to pounce on a $4500 credit. >> julie: you have to look at this on the other side. let's say one of those people that signed up for this rebate. the government's website set up a rebate that gives you up to $4500 per new car. talk about pumping life back into the economy. that is what this whole $787 billion stimulus was supposed to do. everybody is complaining, where is the money, show me the jobs. here is the government is trying to give back to the people and we're complaining about it. >> well, if you lease a car you are excluded. you've been wise about getting good fuel efficient cars you are excluded. if you don't have a credit to get a new vehicle, you can't

afford additional payments, you are excluded. i suggest instead that we give every single driver a credit toward a thousand dollar check toward a new car or car maintenance. cover a transmission or tires. that would help better cars get on the road and helped the economy, as well. making a restricted number of people because a people that were eligible became ineligible in the opening for the cash for clunkers policy. >> julie: what does it do with the local mom and pop car dealer shpsz. big three received a massive bailout and many have to go bankrupt. there are many that are hanging on by a string, what does it do for them? >> they are loving it, getting rid of the 2008 and 2009's because 2010 is sitting around the corner. timing was excellent because you are getting those cars off the lot. if you look at the cars they are

buying and you have been saying in this all morning, there is a lot of luxury cars under the number. if you look at the sales number that is what they are buying. they are stepping up to a nicer car. but how did we get here in the first place by more than we can afford. >> julie: this is a fact. people that are down in the dumps, driving a nice car, a luxury car psych lodge day kli -- i know this because i've done segments on this. this could potentially luxury cars more affordable for families of never owning a bhbmw why not? >> i agree, my opinion you are what you drive. people feel great when they drive a great car. but there is some back lashes we forget about. once the quarter million cars go through, if they put $2 billion in the fund, do you believe half

million more people are going to half million cars are going to be sold? i don't know. that is a lot of cars. yes it would be great for the auto industry to break ten million in sales. you look at the big picture. you got a lot of scrap and environmental issue that no one thought about. all the recyclers are buried in tons of expenses. they are making no money. cars are being delivered on trade ins without doors and hoods. without seats. it's crazy. people are taking advantage and there is no one, is it is going to be used car czar next? >> julie: lauren, thank you very much. you are what you drive. i kind of like that. i'm not going to disclose what i drive. but i remember the vom, wagon i used to drive. it was a diesel and every time i would step on the gas.

>> gregg: the neighbors hated you. >> julie: i went to boston and all these people were driving feraris. we used to screech out of there and leave them in a cloud of smoke. >> gregg: that is how i started my volkswagen on camper van and it wouldn't start. what you do is you pop the clutch as it's going downhill and it starts the engine. >> molly: winter times were bad. i used to have my friends roll me down the avenue there. i really do. i have no shame. >> gregg: all right. we've been hearing more and more reports of accidents involving folks texting while driving. >> julie: we didn't have that in college. >> gregg: you didn't have anything in college. among the latest this tow truck crashing into a pool. driver was occupied but not one, but two phones. government is looking to crack

down on those that text behind the wheel. what lawmakers are proposing to improve safety. applebee's 2 for $20! real food at the right price! this is the primo stuff. one appetizer and two premium entrees. just twenty bucks-every day. genuine food. generous portions. genius price. 2 for $20! only at applebee's. my daughter was with me. i took a bayer aspirin out of my purse and chewed it. my doctor said the bayer aspirin saved my life. please talk to your doctor about aspirin and your heart. i'm going to be grandma for a long time.

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? ♪

>> julie: it's the bottom of the hour, time for top of the news, president obama praise ago house committee on health care legislation, calling it an historic step. he says the country has never been closer to such a major overhaul of health care and urges lawmakers to keep moving

forward. >> gregg: deadly violence in afghanistan, roadside bombs kill three american troops on patrol in the southern part of the city. a french soldier killed in the capital of kabul. >> julie: five more u.s. banks have failed bringing to the total number to 69. fdic closing on banks on oklahoma, illinois, ohio, new jersey and florida. they expect it will cost the federal government $70 billion over the next five years. >> gregg: american tourists hiking along the mountainous northern border of iraq finding themselves in the hands of iranian government. this coming out of the regional kurdish government. now confirmed by the iran media. the hikers accidentally cross in order iran without permission. david piper on the ground with the latest. >> state run media says they were arrested north of the

country and state department says they are well. they are aware of the situation. they were staying at hotel and visiting a local waterfall. iran state tv they crossed the border were arrested by border guards after refusing to heed warnings. they have confirmed the arrests. they loss contact with their friend, presumably by phone in which they said they were surrounded. in the timing of u.s.-iran relations with tensions high and controversial elections there. in iraq, it's safe to travel and regular flights from turkey. i'm david piper. back to you. >> julie: rising unemployment forcing more and more people to turn to free clinics for medical treatment. the extra workload is strange

the system also suffering from a steep drop-off in financial support. laura ingle is live about details. officials estimate that up to eight million patients will head to a free clinic. a large group of them of people who had a job a year ago and never thought they would be in a position to need this type of free service. the medical centers receive very little state or federal funding. they are run solely by volunteers. as millions turn to the free clinics there is a new problem. funding has dropped, approximately 20%. >> free clinics rely on community support. we are the community's answer to the health care needs. we receive very little state or federal funding. we rely on grants, foundation support and obviously community donations. >> so there is a couple rules here. not everyone can use these centers. in order to qualify you need to be uninsured, low income and depending on your state must

live in the area. we visited a free clinic in bridge post and they provide checkups and membership patients get lab done, x-ray visits and prescribe prescription drugs at no cost. they call eight godsend. >> just the medication alone is saving me $150 a month. lab work, i don't have any idea how much it would cost. doctors' visits i'm sure that over hundred dollars a month. so 250 to 350 a month if not more. >> and they are saving money for patients but also saving strain on the system. if some patients were treated they would likely wind up in the e.r. so it's saving a lot of people money. >> julie: thank you very much. >> gregg: a new warning for the centers for disease control concerning swine flu cases in the united states.

this is the military taking action to stop the spread of the virus among soldiers. live in the atlanta bureau, maryanne what prompted the u.s. military to stopping the spread of this? >> so far the military has confirmed more than 2300 cases of swine flu in active duty personnel and if you count military families that puts the number over 38900. the reason for this they think, military personnel, they often live in close approximate it immaterial and eat in the same places and bunk side by side. they want to make sure they stop this now. it's very similar to the kids at summer camp, hundreds of sick were all eating together. >> gregg: what is being done to stop the spread? what steps are they taking? >> the military is recommending things like, the troops sleeping head to toe, so they won't be

coughing or sneezing in each other's faces. to urge them to move their bunks away from them. the military has offered to step in with h1n1 testing and they would offer troops and support, anything that is necessary. they wanted to mike sure they stop the spread among troops so they are ready and able if they are needed. >> gregg: mary ann silber, thanks for the update. >> julie: this week we've been hearing about dangers of texting while driving. a new york state tow truck driver that slammed into a car and then a swimming pool. they say he had been texting on one cell phone and talking on another at the same time. there is a new push in the senate that would require states to pass laws that ban texting while driving or faces a possibility of losing out on some highway funding. here to talk about this is russ wader a spokesperson for highway

safety. thanks very much nor talking to us. we were just joking around when we were school we didn't have cell phones and the only accidents i ever got in to was not while i was text messaging. cell phones need to be banned. you can't prevent them from being carried in the car. what can you do to prevent people from either talking or texting or doing both at the same time like this guy in new york? >> texting has been in the headlines this week, but politicians who want to legislate on this need to look at the broader research. broader research shows think kind of cell phone use behind the wheel is a risk. texting is probably worse because you are not only taking your mind off the road but you are taking your eyes off the road. research shows a cell phone conversation is in itself a risk and can increase your risk of crashing four-fold. question is how do we enforce this as you led off in the

segment. that is tough. >> julie: what if, let's say, drivers out there are going to it anyway and they don't believe they are going to be ticketed, so they are going to go ahead and text message. it's hard for law enforcement to then give them a ticket and accuse them of doing that. how can a cop pull over a car, pull somebody over and give them a ticket, how can they prove that person was text messaging? >> that is the key question. if i've got my phone in the car and carrying a conversation like this, that is obvious. but if i'm texting and driving that is less obvious. if i'm on a hands free phone, an officer can't spot that. if drivers don't believe that there is a high likelihood that if they engage in these behaviors they are going to be spotted and ticketed they are unlikely to put down their phones. what we need is not just laws, laws can help but they are

unlikely to be effective unless we have a way to really visibly and strongly enforce these laws, like we did with safety belt laws or drinking and driving laws. if we're not prepared to that that, it's unlikely we'll change their behavior. >> julie: what changes then. what you need to do is educate them to change or at least learn the rate way to drive and safe way to drive before they go and do it. do we have the go back to driver's school, all of us? >> if we're going to have a law against cell phone use or texting, we need to have two-pronged approach where there is an education component, a publicity component and a strong enforcement component. driving requires our full attention, but these days the road has a lot of competition. it's going to be tough to change

that. >> julie: you don't want to text and drive, either at the same time. here in new york city they are strict about that. i've been pulled over myself for talking on my cell phone. what about talking on a speaker. they are holding the phone and they have their hand on one wheel? >> fumbling with the phone and dialing, that is an obvious distraction. but the research is now saying that the conversation itself is the major part of the distraction. the risks that i talked about earlier four times the crash risk when you are carrying a conversation on the phone. that is the same whether it's hands on or hands free. so banning hand-held cell phone use but that is not addressing the problem because you are saying hands free is safe and we know it's not. >> julie: and what about teenagers because they are mad

texters? >> teenagers is a really significant problem. they are more likely to be using the mobile devices. we did a study in north carolina where they banned cell phone use for teens. what we found is proof positive of what we've been talking about here. cell phone use among teens in north carolina edged out after the law took effect. >> gregg: while she was talking to you, is she was typing on her laptop but she was usesing this little device here. >> julie: i actually was checking a text message and talking with my producer all at the same time. >> at least you are not driving. >> julie: i a.m. multi-tasker. >> gregg: it could be more dangerous than on the wheel. and attitudes of drivers, drivers think they are above average. they can multi-task. just fine but it's all the other

drivers that are the problem. >> gregg: you were texting me on my laptop about a completely different -- i don't know how you do it. she really was paying attention to you. >> julie: i was asking my producer a question because he wanted me to ask you about the factor, is that what you wanted me to ask? >> all the questions were good. >> julie: all right. >> gregg: now they are irritated. back to 20 years ago, where were you in 1989? don't tell me you were not born. >> julie: i was in diapers. >> gregg: coming up, we'll tell you what happened back then that could help signal the end of the current recession. do you know the answer?

>> gregg: she's the best, isn't she? remember that. top hit for tina turner, back in 1989. >> julie: where were you? >> gregg: i don't want to say. >> julie: ways freshman in high school with bad bangs and frizzy hair. >> gregg: curly hair. >> julie: it was bad. i asked my mom to send me a photo so maybe next weekend. >> gregg: 20 years ago this

month it was also a best for wall street. dow achieving the strongest run in july on record until now. dow surging 725 points, more than 8.5% this month and combine that about the news of the u.s. incompetent shrank less than expected. are we over the hump? >> patricia powell may have the answer for us. what is the answer. are we over the hump. not

so where we were over 700,000 last january, we came in at 320,000 last month and 400,000 this monday mo. so the numbers are getting less bad. >> gregg: listen, the thing that all of us deal with who own homes is the drop in valuation. talk to us about that? >> you know the s&p came in for the first time in three years, positive number. this was the first swing in the other direction. now granted if you look at the 12-month number you still have

17% decline in the index and that is a price index for houses. that is not about inventory or how many houses is sold it's a pricing index of 20 markets. you know what a positive number is very good news. i think what is happening here. market is starting to see and look ahead and see the numbers are getting legs and less, even bernake is cautiously optimistic that we'll be out of recession by the end of the year. economists are saying we may be coming out of the third quarter and we're in the third quarter now. >> gregg: i have lived three several recessions and julie lived through the great depression but recessions don't last forever. >> that is the thing to keep in mind. recessions don't last forever, if you think this is a bona fide recovery, keep in mind 19% the

low where we were last time 35% off high. there is still room to make some money. >> gregg: patricia powell, thanks so much. did you vote for hoover? >> julie: i don't use vacuum cleaners. >> why can't alcohol contain vitamins? can booze boost your health? that would be something to drink to. we'll explain next. ♪ ♪ ♪ ♪ one hundred potato chips, or one hundred pringles.

both cost the same. but only the new pringles super stack can makes everything pop. same cost, but a lot more fun. everything pops with the new pringles super stack can.

♪ ♪ ♪ ♪ >> gregg: i thought we were playing the white house song. >> next time you kickback for a drink you may be boosting your health. we know that alcohol can drain yourself of century vitamins now they are adding vitamins with the idea of replenishing of what you lost. >> gregg: why can't they tout their benefits. so can happy hour be good to your health? let's put the question to

dr. mark siegle. the people that drink a lot are deficient in one? >> it's mainly deficient in vitamin about's and zinc and vitamin c. a lot of vitamins. >> julie: so what benefits can we get from alcohol? >> we get calories from alcohol but i want to the idea that you can add your vitamins back to alcohol bothers me. what alcohol does is "a" it damages your liver, "b" it damages your digestive system so you cannot absorb vitamins. even if you put the vitamins back in the alcohol, by the way, alcohol they need more vitamins to do their daily function. you are not absorbing it and if you do absorb it it doesn't work, as well. it's very problematic. it's bad advertising. >> gregg: i thought there was a study that looked into this. >> there was a study in 2006 in

great britain where maybe they were popping a too many begin necessary. >> julie: which is by the way, beginness necessary is low in calories, because it's less fattening beer. >> and but you have to develop a taste for it. here is the problem for that or any other drink. don't think you can have a lot of beer now and add vitamins to it. the problem is, first you get dehydrated and you have a problem with absorbs. you can't add the vitamins back. so you aren't getting the vitamins in the food. >> julie: so a lot of people get a their calories and food in martinis. you're going to bake up dehydrated and deficient of vitamins that we need. >> legal let me tell you, the vitamins are very important to the brain.

you stop thinking clearly and it's involved with the sensations with the hand and feet. some of this irreparable. i wanted to change course a little and say if you had a little bit in your drink, notices going hurt you. i'm not saying that adding it to the alcohol is bad for you. what i'm worried about is people are going to say, i don't need to eat. i don't need a vitamin pill. i can just drink alcohol. >> gregg: the cameramen are laughing about psychotic and mentally deficient because they would like to hoist one now and then but moderation. >> julie: they are all drunk right now. >> in this segment, it went on too long with the scene in the bar before they got to us. a few drinks here and there are not a problem, one or two, even one or two a day, we talked about it before. in terms of chemicals that are in it. more than one or two drinks a

day can apple's be addictive. don't say i'll get my vitamins that way and it's a lot of calories also. >> gregg: one of the great mysteries may now be solved. missing minutes of richard nixon's oval office conversations in the days before the watergate scandal broke. they may now see the light of day. the long hidden sea krets of nixon's white house is coming up next. off my car and you'll take care of everything? yep, even the rental. what if i'm stuck at the office? if you can't come to us, we'll come to you in one of our immediate response vehicles! what if mother won't let me drive? then you probably wouldn't have had an accident in the first place. and we're walkin'! and we're walkin'... making it all a bit easier -- now that's progressive!

call or click today. s who need assistance getting around their homes. there is a medicare benefit that may qualify you for a new power chair or scooter at little or no cost to you. imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen ... your power chair will be paid in full. the scooter store. hi i'm doug harrison. we're experts at getting you the power chair or scooter you need. in fact, if we qualify you for medicare reimbursement and medicare denies your claim, we'll give you your new power chair or scooter free. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. call the number on your screen for free information.

23 million, all you will get is seven bedrooms? >> yeah. >> i would expect more. >> you get the carriage house. >> bitter fight over taxes pitting the city of columbus, georgia against the travel web site, expedia. now the details. >> you might not pay much attention to the occupancy tax on your hotel bill, but it's at the heart of a dispute between some cities and on-line travel services. in georgia, they ruled in favor of the city of columbus as it tries to collect more taxes from expedia.com. >> we want uniformity and fairness in our tax collection. >> expedia and other on-line travel services buy hotel rooms in bulk and pay occupancy taxes based on the wholesale rate. the georgia supreme court ruled the tacks must instead reflect

the retail rate expedia charges its customers. in a written statement, officials with the company say, the decisions that no impact because expedia ceased doing business in the city of columbus in 2008. >> if you search expedia for lodging in columbus, georgia, it will stead show you the names of hotels in nearby alabama. that's because expedia and other major on-line travel sites have delisted columbus as a result of the tax dispute. although independent web sites account for a fraction of hotel reservations, experts say consumers often use them to research travel destinations. >> there are significant and increasingly significant. >> hotel managers say so far they've seen little, if any, effect. >> folks are going to find here. they'll find other avenues. >> reporter: the dispute is in no way unique to columbus, but unfolding in san francisco, new york and other cities in between

and for cash strapped cities, the idea of millions of dollars in new revenue makes this a battle worth waging. in columbus, georgia, fox news. >> hello, again. i'm gregg jarrett. >> i'm julie banderas. did intelligence officials for one of america's biggest allies unwittingly recruit al-qaeda sympathizers? we have brand-new information on what may have been a frightening mistake. >> and it is one of the greatest mysteries of the 20th century. what was on the 18 minutes of audio tape erased by the nixon administration? rose mary woods, security expert and former -- it's good to be joining us to see why we may uncover one of the biggest mysteries in the watergate case.

>> a deal is struck in the house on health care reform. molly has the latest. >> this is the last of three bills that had to pass three different house committees and this one passed ever so narrowly 31-28. now house democratic leaders will have to figure out how to meld the three bills into one and get it to the floor for a vote in september. president obama called the passage of that final bill out of the house energy commerce committee a historic step that puts the u.s. closer to health care reform than ever before. you can see them leaving the white house heading to camp david. not all democrats are on board that vote. five of them voted with all of the republicans on the committee against the measure. and democratic leaders say they may not be able to keep their caucus together for a final floor vote either. >> i think that we may not get every democrat and i don't think

the republicans will be able to hold all of theirs either because some of their members will want to vote for this health care reform bill. we'll dot best we can working with our leadership to get a bill that will pass when they come back in september. >> the house legislation would require all americans to have health insurance and would raise taxes on businesses that don't provide it for employees. in addition, it would set autopsy government-run health insurance plan that republicans say would drive private plans out of business. >> americans dope want to lose their high quality health care and definitely don't want to pay trillions of dollars for a government takeover of health care that could lead to the same denial and delay and rationed treatment we see in other countries that have gone down this path. >> now the push with constituents begin. they will use the five week summer recess to go home and try to build support for or against

this legislation. julie and gregg. >> thank you very much. coming up, we'll be talking with lawmakers from both sides on this issue. we'll find out how they plan to sell health care reform to voters. >> the government may have to put the brakes on the cash for clunkers program. the new one. the popular rebates were supposed to be available until the fall. actually through october. unless congress puts more of your cash into the program t could end after this weekend. now more. >> people better get off their couches and head for the dealer right now. as of this weekend, the program may be ending. >> the program was supposed to last through the fall, but was so popular t went through the money in a week. you can get up to 4500 bucks. the paperwork is a nightmare.

dealers worry they might be on the hook for the money. yesterday the house rushed to put another $2 billion into the program. the senate takes that measure up next week. the conservatives say it's a government handout. >> maybe we should have a cash for cluckers program and pay people to eat chicken. then we can have a program to pay people to buy tv's and then a program to pay people to buy lumber. >> the clunkers program is working perhaps too well. the rest of the economy shrank, but less than predicted. the government reports the economy contracted by 1% in the second quarter, better than the 1 1/2 predicted. here is the president's take on it. >> it's showing signs of stabilizing. this means eventually businesses will start growing and hiring again. >> the. >> caroline, thanks.

>> a bomb scare at one of the nation's busiest airports this week, la guardia airport evacuated for hours today, causing flight delays all across the country. the trouble began when a man started acting suspicious. they searched his bag and what they found was alarming. batteries and wires that they believe were meant to look like a bomb. the man, 32-year-old, has been arrested. he faces a number of charges, including making terror threats. a 3.2 magnitude earthquake shaking tennessee today. not california. tennessee. there you see it, 55 miles east of chattanooga. people in the area said it shook the buildings. so far here is the good news. no reports of any damage or injuries. the quake was also felt in north carolina as well as georgia. >> in texas, one of the worst droughts in the state's history is taking a toll on farmers there and nearly every day in july saw triple digit

temperatures, meaning huge loss force people ho work the land. but the agriculture department says farmers will have to wait until the fall for their share of the $3 billion in assistance they're owed. for many it's been one of the worst suppers in memory. >> we had a drought in the 50s, but didn't compare to this drought that's devastating. it's disaster. >> even when the federal money comes, it will only pay for 60% of the farmers' losses. is there any relief in sight? >> the rain, unfortunately, is not going to the place where is it's needed in texas. but out to the east, eastern part of texas and northern part of texas, that's where we are looking at flash flood warnings and watches that will extend through this weekend. plenty of rain coming down for the eastern north part of texas into the tennessee valley. what we have the greens, that's

our flash flood watch. the reds are a warning. because we have storms moving through today. today no exception to the past couple of days here. the front continues to push to the east. we're looking at pretty good showers and thunderstorms and again, that threat for flooding ponding on the roadways where many places are well over their rainfall for the month of july. some cases, five to eight-inches above what they should get. that's a problem there. out to the west, we are looking at extreme heat in places like phoenix, 103. it's 76 in seattle. they had record heat. that has come down a little bit. tomorrow it will be about 10 degrees warmer than it is now with the upper 80s, low 90s. also looking at a threat of fire concern there. we have red flag warnings out toward the pacific northwest. >> we're beginning to learn more about the three american tourists reportedly being held in iran. the two men and a woman,

arrested while hiking along the border between iraq and iran. the fourth man stayed behind in a resort in the kurdish area where they were staying. according to that man, his friends called him to say they had mistakenly wandered into iranian territory and they were surrounded immediately by troops. the u.s. state department is asking the swiss in tehran to confirm the report and seek abscess to the detained americans. a string of coordinated bombings ripped across iraq's capital, killing 30 people nearly. the attack, striking five shiite mosques in baghdad targeting the followers of al-sadr. he's a former militia leader who police blame for some of iraq's violence. the blasts con siding with the religious services. the aftermath shows bloody prayer rugs and debris all over the streets. this violence breaks a relative

calm in the city. many worry the withdrawal of american troops will lead to escalating bloodshed. >> in london, there is concern, serious concern that the british secret service recruited al-qaeda sympathizers. demanding an investigation, claiming two recruits actually attended al-qaeda training camps in pakistan. he says the secret service, known as m.a.'s -- m.i., gave them the boot after several weeks of training. four other recruits were rejected because of unexplained blanks in their files. he blames the incident on a rush to beef up security after the 2005 london transit bombs. # as we mentioned a few minutes ago, the house closer to a consensus on health care

reform. this as lawmakers get ready to head home to summer recess. to spend face time with voters. how will they sell health care reform to constituents. here is a member of the republican committee working to prevent waste, fraud and abuse and elliott ingle of new york. thank you very much for talking to us both. first of all, i want to go to congressman ingle, you were one of the democrats that is in the energy and commerce committee. i want to know how you will plan on selling this vote to your constituents. >> well, i'm saying what i've been saying, that the american health care system is in trouble. we have 47 million americans who are uninsured and that number is going to grow with each passing day. the current system is unsustainable because the costs are escalating so high. people with preexisting

conditions can't get health insurance. people that lose their jobs live in constant fear of having no health insurance at all. so we need to make sure that every american has health insurance, that the insurance companies cannot -- because you have a preexisting condition, they exclude you and not allowed to cherry pick, which is only offering a contracts or policies to people who are well. everyone needs to be covered and that's what we want to do. i think president obama is right with his vision of saying that every american needs to be covered and that if you like the health care coverage you have now, you can keep it. you can keep your doctors. no one is going to force you to change. but 47 million americans uninsured is going to be a thing of the past. >> congressman franks, i want to hear what you have to say 'cause i would imagine you're not going to be selling the same story to your constituents. >> no, you're right about that. republicans want health care reform as well. we want something where every individual owns their own health care where they have the choice of insurance companies, the choice of doctors and for those

who can't afford it, government could always offer a draft to allow them to buy the insurance of their choice. that would spur growth. that would empower the patient and encourage the dignity of the patient, that would help the quality of care and would drive down the price. under this bill, it will cost $800 billion new in taxes that the democrats are pushing forward. very few people understand what they are trying to do and it takes more and more people that understand it have a greater and greater disdain for it. it could cost us 5 million jobs and push 118 million people off their existing insurance policy, and everywhere where we've seen government take over in other countries, it caused the price to rise. the quality suffered because when people have a cold in england or canada, they call the doctor. when they have cancer or diabetes, they call a travel agent and want to come to america because we still have the best system in the world. >> you took the words out of my mouth. congressman ingle, when it comes to quality, that's what many

americans fear, those who are currently insured, will their quality go down when you've got so many people and so little doctors, will they become overwhelmed and will we be seeing more and more patients waiting in long, long lines waiting to see a doctor to be treated for such serious illnesses such as cancer? >> no, not at all. i think that what my friend and colleague has said is the same confusion that frankly the republican party has been saying for years to confuse people, to scare people, to tell people that they're going to not have coverage. what we know right now is this, there are 47 million americans and 80% of those people are working people and their families. they have no coverage whatsoever. that is going to grow because the health care costs have been growing far beyond the rate of inflation. so we will find if we sit and do nothing and think we can just not do any changes, we will find

56, 60, 80 million americans without health coverage. people will lose their jobs, not have any kind of coverage, people who have cancer, which may be a preexisting condition, will find themselves without coverage. all we are attempt to go do is this, to insure that every american has coverage, to make sure that the insurance companies cannot decide who they want to cover and who they don't want to cover. i don't think the insurance companies left to their own volition, has any incentive to keep the premiums low. we're saying if there is a public option and the public option keeps the premiums low, the insurance companies will be forced to keep premiums low. >> it's scary to me. what's scary to me is how we've got countries like australia, countries like canada and it is a fact that they leave their countries when they are in need of good quality health care. what does that mean to all the americans in need of good quality health care here in this country? does that mean we'll have to, in

other words, go overseas in order to get good quality health care because the entire public is insured, therefore the, the quality -- the an i'm arguing is because a lot of decisions are being made in washington where it seems the research isn't necessarily there and then by the time we realize it, it's too late. you have to admit that there have been many bills passed in washington where congressmen like yourself didn't get the chance to read the bill before we thought if it would be good. i'm concerned about the whole -- the president want to go rush this whole thing and whether or not it might backfire. >> we're not rushing it. it's actually being slowed down a bit. when you're talking about canada and australia, you're talk being a single payer plan of the that's not what we're talking about. this is not a single player plan of the this makes sure every american is insured and if you lose your job, you continue to be insured. you can keep the doctor you have now. you can keep the insurance policy you have now.

it's not going to make it harder to get insurance and not going to lessen the quality of insurance. to do nothing will absolutely lessen the quality because we can no longer sustain the situation. the health care costs are growing by leaps and bounds. >> congressman frank, i'll give you the final word. >> julie, i have a great deal of respect for my friend here, when he says i'm trying to scare the american people, i say honestly i'm scared. i'm scared for my two little babies, turning a year old in a few days. i think the american people should be scared to see government take over health care is one of the most dangerous things that we could do for them and senior citizens should especially be scared because if this happens, the clunkers bill cost $1 billion, they said, ended up cost 300000:00:00. what happens to this one trillion dollars price tag? it could be 3 trillion. i don't want the same people that are doing all these bailout here's lately running the health care insurance. i want that to be a free choice for my children and for the people in the future in this

country. >> congressman ingle and frank, thank you very much for talking to us. thank you. >> all right. it is one of the great mysteries of the 20th century. what happened to the 18 minutes of erased tapes from the nixon white house? the tapes were thought to be lost forever and may hold clues to nixon'srole in in wheergate scandal. now we may have put this piece of the puzzle together. we'll talk to a guy who may know, coming up.

let's look stories topping the headlines this hour. president obama is calling a house energy and commerce committee's vote on the health care overhaul an historic step. despite opposition from

republicans, the president urged lawmakers to do the hard work necessary to protect the health care of the american people. police here in new york say a man trying to sneak a fake bomb onto a plane triggered an evacuation at the la guardia airport. it disrupted travel plans for thousands of passengers. about 100 defendants are being tried together in iran, including a former iranian vice president and a former speaker of iran's parliament. >> this is one of the great political mysteries of all time. what did president nixon say during that infamous 18-minute gap that was erased from the watergate tapes? it comes from a 79-minute conversation between nixon and his chief of staff. just days after the watergate break-in, the discovery of that gap shook the nixon presidency. many wondering if that tape

contained evidence that incriminated the white house. now we may be on the brink of knowing just what was on that tape. joining me now is the chief secretary nothing officer for tourists and an amateur watergate investigators. good to see you. i always thought it was preposterous that rose mary woods leaned over on the telephone call and she would have had to have a 20-foot leg to erase the tape. >> she didn't do it. so how might we actually find out what's on the tape? >> it sort of started by accident. doing some research about sort of watching the news and doing research, i started doing time lines ionosol of the individuals who were suspected of being deep throat at one time.

>> the society f.b.i. director at the time was deep throat. >> right. but this was before that time as i started doing these time lines, i started to realize the sequence of events p and who i thought was involved. as i tried to get deeper and deeper to get more confirming evidence, i actually went and looked at the original notes and realized that -- >> haldeman's notes. >> yes. it appeared that the notes had actual pages missing from what i expected to see. i put what was told -- >> these are haldeman's notes on the screen right now so viewers know what they're looking at. these aren't all of his notes, are they? >> no. this is just the second page of the notes from the meeting. >> is there something missing? >> no. what you see is the first page there and on all the topics before the watergate discussion

started, and that was confirmed by rose mary woods, when you look at the second page, you see sort of a summation of action items from the watergate meeting and if you go into the national archives and you find rose mary woods' notes from her files that were discovered in 1992, woods said that the notes from the meeting could only have lasted one or two minutes during the conversation. >> what do you conclude? >> that the other seven minutes or so -- 17 minutes or so of notes are potentially missing. >> somewhere? where would they be? >> they're gone. >> somebody lifted them? >> no. somebody didn't lift them. they were probably destroyed back then by -- unclear. >> who do you think? >> i have no idea. possibly haldeman. >> yeah, right.

>> when i discovered the second page missing, or these pages missing, i realized that through forensic techniques there was a possibility we could actually recover the impressions made on the missing pages of notes that might have leaked through to the last existing page of notes that still remain. >> are you trying to get those impressions? >> absolutely. what i did was i after the national archives researchers showed me the documents, i wrote up a ten-page report, put all the evidence i had together. i sent that to national archives requesting that they perform what's called an analysis on the second page to recover the previous pages of now missing notes. the technique is able to recover up to three or four missing pages ever notes. >> it hasn't happened yet? >> no. it's in the process. we're expecting that, from what the national of a kind ofs tells me t should be done before the

october time frame. >> what do you think it's going to germ? >> well, i think if you look carefully at the tapes, i believe the first 4 1/2 minutes were erased by rose mary woods. on the tape it's a loud buzz eray sure. i believe that actually involved the nixon white house -- >> so somebody else came in and did the additional erasers beyond rose mary wood, right? maybe haldeman or maybe nixon? >> actually there is a good probability that it's probably the white house lawyer and we've actually narrowed the -- >> any idea who? >> absolutely. >> who? >> i want to wait -- >> come on. >> i want to wait for the notes -- i'm not trying to jump the gun here, but i think the notes, when they're recovered l implicate a white house lawyer.

>> a white house lawyer. okay. everybody was a lawyer in the white house back then, if i recall. >> just about. >> could be anybody. i got a couple hunches. you sure you don't want to pretend i'm connie chung and whisper in my ear. >> if you were connie chung, i would whisper in your ear. i would like to wait for the notes. >> will you let us know when you get it, 'cause we would love to be the first to break it and we will have you on? >> oh, very kind to have me on. of course i will let you know. >> phil, the watergate sleuth. thank you for being with us. it's fascinating. like our producer, i'm sort of a watergate geek. i was fascinated by watergate. i watched the hearings late at night that they replayed. it was great. >> our producers extending to our guest will buy awe beer if you tell us. >> we'll have a beer summit. >> i don't know. >> we'll up it to a martini.

>> imagine paying for something on-line only to have it taken away without your consent. amazon on the hot seat, folks, after it deleted whole books, like 1984 from customers kindle. those are the devices you can download books like you download music on your i pod. amazon is in the legal hot seat, but who is protected here? the company that produces the data or you the customer that paid for it? the geek squad next.

it's the bottom of the hour. time for the top of the news. the state department looking into the three american tourists detained in iran. they apparently wandered there while hiking in a kurdish area of iraq. >> cleanup efforts underway in north carolina after a severe storm. it downed trees, power lines in the eastern part of the state. no reports of any injuries. >> and michael phelps racing the word record in the men's 100-meter butterfly today. finishing in under 50 seconds at the word championships in rome. the centers for disease control wrapping up preps for

this fall's flu season, the swine flu. officials saying those already at high risk are students returning to school and members of the u.s. military. mary ann is in atlanta with the latest on this. what steps are being taken to stop the spread among military personnel? >> hi again. one thing they're doing, because military personnel are in such close contact with each other, they often live and sleep together in the same quarters, they're asking them to do, if they're sleeping on bunk, sleep head to toe so they're not sneezing or cough not guilty each other's faces and move their bunks far away. the military offered to help with medical resources, with getting vaccines out once they've been developed, and also they want to help with testing for h1n1. they want to make sure they stop the spread among the ranks now so they can focus on other

things they may need to focus on later. >> what prompted the u.s. military to act on stopping the spread of this? >> gregg, the military has confirmed that there has been over 2300 cases of swine flu among active duty military personnel. if you add in the families of some of those personnel, that puts the number over 3800. so that is cause for concern. again, with military personnel often living in close contact with each other, in bunking together, there is concern the virus would spread quickly and get out of hand. >> fewer people have died so far from the h1n1 than usually die during the regular flu season. and yet, cdc officials warning people not to let their guard down. >> that's correct. usually during a normal flu season you see quite a few deaths. that's why people are told to get their flu vaccines. with regard to swine flu, there were 353 deaths overall.

over 5500 people have been hospitalized. some may say that's not that many. but no, take precautions. they're expecting the number of cases to go up, to surpass what we saw in the spring when kids go back to school, because they'll be in close contact with each other, like the sids in the -- kids we saw in the summer camp in the summer. >> thanks very much. >> if you get headaches, maybe you should go and get a face lift. that's what you're about to learn. i'm not saying you need one, but most people have plastic surgery to look better. >> what a relief. i was going to go like this. >> there is a new study that actually says that apparently a little nip and tuck might ease your migraines. >> is that right? >> yes yeah. a number of migraine sufferers have taken part in the clinical trials and the results? almost 84% reported a reduction in migraines and more than half

said the debilitating headaches completely disappeared. doctors warn more research is needed. >> three more board directors out at bank of america. their will he significant nations put in the number of departing board members. no word from the company on the situation, but a filing with the securities and exchange commission says their decisions were not due to any disagreement with the corporation or management. the board has been under intense scrutiny over the handling of the bank's takeover of merrill lynch. >> you can chalk up five more bank failures to the recession. banks in new jersey, ohio, florida and oklahoma and illinois forced to shut down. the new closures bring has total of failed banks to 69 so far this year. they cost the federal insurance fund over $911 million. regulators are closing banks at the fastest pace in 17 years.

there is a gadget and it's called kindle. it's like an i pod, but for books. users download whatever they want and they can read it off the kindle wherever they go. >> yeah. but now amazon, the company behind the kindle, is being sued. seems it didn't have the rights to some of the books that they had, so they remotely deleted them from customer's kindles without notifying them first. among those suing is a student who lost some of his class work in the process. take a listen. >> i have a kindle and bought it thinking i would own these books like i would a regular paperbook and what amazon did proves that you don't and i want to be involved in somebody that would set a precedent to move the industry forward so something like this couldn't happen again. >> how much money are you looking for? >> i'm not looking for money. >> amazon did refund the money, by the way.

it has apologized. but did it even have the right to delete the books in the first place? let's ask our legal panel, a former prosecutor and professor at media law at seaton hall. paul, you and i say this in the sweetest way, are gadget geeks. he's got every gadget. >> he's got one right there. >> he's got his kindle right here. show everybody, camera 2, what your kindle looks like and what you use it for. >> that's a kindle. basically this device will store 1500 books as well as ongoing subscription to things like the "new york times," "wall street journal," the economist, whatever you want to subscribe to. >> then if you're a student and you're using that, gone are the days of the encyclopedias. let's say you're using using itt all your notes in there. you've got an exam coming up and all of a sudden, it's gone. amazon, do they have the right to do that? in this day and age with this sort of modern technology --

>> i bet there is some license agreement that says they can do it, yes, there is. is probably why he gets migraine headaches from time to time because he sits around thinking about things like this. that's exactly true. you're allowed to download a book. you buy a book from amazon. they charge 9 bucks. you go into barnes & noble, you might have to pay as much as $20 for the book. or you can buy a textbook. that then gets stored in your virtual library. so if i lose this or i buy a new device three years from now, i can download the books theoretically. what amazon did in this case was they just went and deleted the book this kid bought. >> maybe they were legally entitled to do that, but i think as a lawyer they shouldn't have. >> i agree. and you mentioned licensing agreements. who really reads those? the license agreement -- the average consumer probably doesn't read it. i took a look at it, being a lawyer, and it said that when

the consumer purchases a book, they have the right to permanently own it. so their licensing agreement may have been a breach of contract. >> sounds like big brother to me of the if you're going to develop this -- and i think it's great idea and it's fantastic, but once you buy -- it's their mistake. they shoot have put the book on there. why is it the student's fault? >> it's not his fault. but the student has hire add lawyer and filed a class action lawsuit. thousands of people across the country now are going to be suing amazon.com and kindle because they deleted his book. by the way, they refunded his money and i just checked with kindle. 1984 is back in their. they must have negotiated rights. >> the problem with the student is that his notes, he had notes in there for his homework assignment. so it's not just about the book that was deleted, but his notes were there.

and if they would have gave a proper warning, maybe he could have backed them up. >> let me just explain something about the kindle with respect to the notes. when you're reading a book, you can annotate it, put notes in the margin and that gets saved on the computer. amazon saved his notes. they deleted the book. but they can go and print out his notes. his lawyer says, well, that really doesn't count because he's got a note there, he doesn't know what paragraph in the book it refers to. i think the kid can figure it out. >> i believe he should -- also i think because there was no warning, that these notes and the book were going to be deleted, there should be either compensatory or consequential damage. >> what are his damages? >> he failed a class. what would he have to prove -- >> he would have to be emotionally damaged forever. >> oh, please, you lawyers. >> he will have to redo the whole assignment. >> so he's going to do better on the exam.

he's going to read 1984 again. eag ace it. >> that's a whole semester worth of work. >> it would be different if i was damaged. i would have a lawsuit. >> oh, a double standard. >> she raise has real point. if as a professor, for instance, i did all my planning on the kindle and it got wiped out, i'd be angry about that. but i guarantee you getting back to greg's point, the licensing agreement that i signed doesn't guarantee me the right to consequential damages. >> bottom line, can you get the notes back or is that gone? >> he can get his notes back. >> amazon has the notes. >> he can't figure out what paragraphs his notes refer to. >> the kindle also has an amazingly convenient little feature to it. you could put pictures on it. >> i took the graph with my i phone. i e-mail it to my kindle because i knew we would be getting together. >> i hope amazon doesn't grab the picture of us with our

starbucks coffee, because that's worth a fortune. >> thank you so much. more and more folks are finding themselves out of a job and it's very -- in this very tough economy. but unemployment is fewing some folks' entrepreneurial spirit. that's a hard word. streaming their hobbies into cash during the resession. >> we've got a massive recall to tell you about. a potentially deadly defect involving automobile air bags. are you in danger? we'll have the car affected straight ahead.

>> new information on the story of a woman falsely arrested in hollywood, florida. police officer under investigation in the case. on thursday, you may recall investigators discovering a tape in which several officers discussed just how to place the blame on that woman for a collision whose car was rear-ended by a police car. the police chief now asking for patience. >> i realize and i understand those that feel a sense of betrayal over this incident and i ask each and every one of you to allow this investigative process to run its course and have confidence that this will be investigated accurately and professionally. >> on wednesday, the state attorney's office dropped all of the charges against that woman.

>> trouble sparking a new batch of american entrepreneurs. i got a chance to speak to some of these survivors about turning life long hobbies into real life careers. >> with a show room on his front yard, bob is making much needed cash on the side. this recently laid off city inspector from providence, rhode island, is also a golf enthusiast. >> there is nothing ear that exceeds 95. >> reporter: and says he makes an average of $150 a day in sales by buying used clubs, fixing they will up and selling them. >> it doesn't pay any mortgages. but it does put food on the table and pays the electric bill. >> and he's not alone. calls from people wanting to start small businesses are up, some 20% at the small business

development center outside of new york city. >> put 3 1/2 ounces of the product inside. >> brian works for a popcorn company before being laid off and is now trying to start his own in new york. >> i always wanted to do something on my own. i guess you could say it's the perfect time to do it. >> reporter: it's a growing trend for those who have lost their jobs and are facing an uncertain job market and economy. >> in some cases, the layoff represents an opportunity for somebody. >> and that's the silver lining many entrepreneurs have discovered in these tough times. >> out of all your many talents, if you were to have to start a small business, what would it be? >> i like the golf idea. i think that was a great idea. >> you don't even have to be a good golfer. that would be profitable for you. >> i do okay. >> you're not bad. >> i'm pretty good.

we played together. we'll have to show that tape again. >> go to you tube. >> honda announcing a major recall involving some of its most popular cars. the potentially lethal defect with the vehicle's air bag. information that could save your life. for that and somebody you love, straight ahead.

imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen... your power chair will be paid in full. the scooter store. hi i'm dan weston. we're experts at getting you the scooter or power chair you need. in fact, if we pre-qualify you for medicare reimbursement and medicare denies your claim, we'll give you your new power chair or scooter free. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. call the number on your screen for free information.

time for a quick check of the headlines. president obama react to go a house committee vote on health care legislation, saying it is an historic step in moving closer to major health care insurance changes than ever before. new york la guard airport evacuated after a bomb scare. the incident lead to go major delays in the air. one man has been arrested. about hundred political activists and protesters put on trial in iran. state run media saying they are

accused of conspiring against the ruling party. >> this is a scary recall we got to tell you about. honda recalling 440,000 vehicles that may contain a potentially deadly air bag defect. the auto maker saying air bag inflators on some of the vehicles could burst due to too much pressure, spraying metal fragments inside the car. >> these include certain 2001 and 2002 honda accords, some 2002 and 2003 acura tl sedans and the 2001 honda civics. so how can you know if your air bag is working properly before you actually need it? joining us now to talk about it is detroit free press auto critic. mark, tell us about this problem. what is it exactly? >> air bags are triggered by an explosive, something blows up

the bag to protect you. some of these bags apparently have too much explosive and they shatter the container the bag was in and sent metal flying into the car where they injured some people and apparently killed at least one person. this is an auto maker's nightmare, a safety system that malfunctions and actually does more damage than good. >> this is a nightmare because, first of all, most of us have never seen the air bag being deployed in our car. and certainly we don't want it to be too late before we discover whether or not our air bag is working in the first place. how do we know if our air bags are operable? >> you really can't test it yourself. they're like parachutes. they only work once you and need them to work the first time, which is why the auto maker's reputation and the reliability of the system are paramount. if you have the information that your vehicle is one of the ones affected by this recall, i would get in touch with my dealer

immediately. but there is really no way a consumer can test it themselves. you don't know if you're air bag works until you need it. >> could honda handled this situation a bit better, do you think? >> that's a very good question. they recalled some of these vehicles for the same problem late last year and to have a bigger recall now after more injuries and one death is the kind of thing that can give people the idea that a company was perhaps trying to save on costs more than it was worried about customers and that kind of thing can be devastating. >> i'm curious, i have heard sometimes air bags can do more harm than good and, in fact, they can cause injury. is that true? >> not really. if you're wearing your seatbelt, as everyone always should, an air bag at worst might have enough impact to give you a broken nose and that is better than the -- >> it can. >> it can. plus the alternative is being

propelled into the windshield at 60 miles an hour. i'll take the broken nose any day. and relatively few injuries at all and those are much less than a properly -- without a properly functioned air bag. >> honda makes pretty good cars, i must say. i owned one in the past. ran like a top. it was a great car. has honda been afflicted with this before and what about other car makers as well and their air bags? i'm sure people are looking at our tv screen going, wow, what about my air bag. >> this particular problem i have never heard of before. air bags, because they are so important, they are your last line of defense, one of the most rigorously tested, carefully watched systems in a car. i never heard of anything like this happening before for honda or any other auto maker. >> that's what i thought. i hadn't heard that before. mark, with the detroit free press, thanks for being with us. appreciate it.

>> honda says for owners of those makes and models we just listed, you can go to their web site. i think this is important for anyone out there who own has honda. find out what to do if you own one. >> a custom made ten speed harley-davidson making its debut in wisconsin. i'm not kidding. take a look at this. 24 feet long. this hog is the brain child of motorcycle creator steve hopkins. features seven different engines, some which date back 100 years. >> like a rolling history of harley-davidson engines from 1909 to present, they came out with the first v twin and that's what this bike reflects is the first v twin on up through the brand-new twin cam. >> hopkins and nine friends are taking the special bike on a

900-mile road trip. the destination this year's storm surgent motorcycle rally in south dakota. >> okay. police officers were on the streets to protect and serve, but what are 911 dispatchers doing? in this case, something they're probably not supposed to. >> before you complete a traffic stop, i need to call you. that vehicle belongs to a worker here. >> 911 operator accused of hindering police work where it's happening and what's being done about it. we'll have guests on the set next with the details. >> i'll see you all on the fox report.

we begin with a fox news alert.