favorite segment was the taser. bill: he is welcome back any time. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- jane: good morning. we want to take you straight to washington d.c., where the transportation secretary has just begun an announcement about distracted driving, specifically using a cellular phone to send text messages while driving. let's take a listen. >> as a result, 25 people were killed, and 135 were injured. if it were up to me, i would ban drivers from texting immediately. but we have learned from our efforts to get people to wear seat belts and persuade people not to drink and drive that laws are not always enough. often, you must combine education but enforcement to get results.

that is why i have decided to convene a summit of senior transportation officials, safety advocates, law enforcement representatives, members of congress, and academics who study these matters. the will meet next month to discuss how to put an end to the rash of accidents and fatalities that have cropped up because of distracted driving. when we are done, i expect a list of concrete steps to announce. the bottom line is that we need to put an end to unsafe cellular phone use, typing on blackberries, and other activities requiring drivers to take their eyes off the road and focus away from driving. i said from the day i was confirmed as transportation secretary that safety is our number one priority. we all know that texting while driving is dangerous, and i promise you we will do something

about it so that responsible drivers do not have to worry every time they or a loved one get on the road. this is a huge problem in america, and we have worried that a model for solving problems like this is .08. we hope our summit will provide the type of recommendations we can take to the people to solve this very, very important problem. jane: transportation secretary ray lahood talking about the dangers of using your cellular phone to text while driving your car. catherine herridge is in d.c. he said earlier that if it was his choice, he would ban texting while driving altogether.

why not just ban it? is congress considering that? >> there are a number of issues. there is a growing body of evidence to you increase the risk of an accident if you text or are distracted. a study last week from virginia tech said that drivers who text are 23 times as likely as those who do not to have an accident. even if you are just using an electronic advice -- device, you are still six times more likely to have an accident. the second point is that the transportation secretary has got to find a way to incentivize people not to use these devices, which are so convenient. last week, chuck schumer introduced legislation giving us a window on what some lawmakers may see as the way to do it. they will use money as the incentives. they will say to th state,, "--

they will say to the state that they will withhold federal money for highway construction if the states do not enact legislation to this issue. they are moving towards the same goal, ultimately, but the problem is how to implement it. how do you incentivize people and states and law enforcement to deal with the rules and recommendations that the summit comes up with? jon: some other news happening now. breaking developments on bill clinton's trip to north korea. the former president just meeting with kim jong il, hoping to free the two american journalists held there since march. jane: in wisconsin, a brush carrying -- a bus carrying two special olympians crashes. jon: and suspects in cup city --

custody for breaking in and kidnapping. jane: the dallas up three points. more americans are spending more of their -- the dow is up three points. more americans are spending more of their paychecks. >> we know that consumer spending is a stimulus all of its own. the more we get, the more momentum it gives the economy. people are going out there and spending more, but the increase is not due to handbags and shoes. it has to do with gasoline prices going up. that is why we see a blip in consumer spending. as far as what is going in, personal income is down. you saw the biggest month-over- month drop from may to june that we have seen in years.

this reflects a tough labor market. the markets are hanging in there because of pending home sales. those are deals that look like they might close, but have not closed yet. so what we're showing is that consumers may not be spending money necessarily on all of these discretionary items, but they are not hibernating. they are out there somewhere, and that is a positive sign for the economy. jane: all right, jenna. thank you. we will continue to watch this. revenue is expected to drop 18% this year, the biggest single- year drop since the great depression, bad news for a government spending billions of dollars on bailouts and health care. individual income-tax receipts are down 22% from a year ago,

corporate taxes down a whopping 57%. jon: his wife is the secretary of state, but today, bill clinton is working diplomatic channels overseas. the former president is in north korea right now, having already met with kim jong il. we are learning a deal essentially has been hammered out to free those two journalists in jail there. they work for couragetv, -- currenttv, founded by ex vice- president al gore. the women were sentenced to 12 years of hard labor for trespassing back in june. let's talk about it now with jim

walsh, mass. institute of technology security expert specializing in iran and north korea. how do things like this work? bill clinton does not just hop on a plane and go to north korea without some guarantee of success, right? >> absolutely. what i have heard this morning is that this has been in the works for a couple of weeks. and you are right, president clinton is a careful politician, even if he is retired, and he will not set himself up for failure. he would have wanted some signal from north koreans that it would be worth his while to go over there. he would not want to show up and have nothing to show in return. so it may not be a guaranteed, done deal, but it is close enough that he feels confident to go, and that means we will have some good news about the journalists. jon: 4 north korea, is it just another moment in the some of the world stage with the former

leader of the free world? >> yes, they are concerned about their prestige, status, their domestic audience, especially during a time of transition. most of us have talked about the fact that kim jong il may not be on the stage much longer and his youngest son may take over, so this is something useful for domestic politics in north korea. and somewhat, their isolation -- they can say, "look, we have a visit from an important guy." it is also important because clinton and kim jong il had a face-to-face meeting today. i do not expect them to roll over and change their regime, but if they want to change the trajectory of relations, they can do it with a wave of hand. so this face-to-face meeting is very unusual. it may be important in and of itself.

jon: interesting because mr. clinton's wife, the secretary of state, is not over there. you have his former ambassador, bill richardson, and he is not over there, either. why not send bill richardson? >> well, first of all, you are right to say that there are layers of irony. you remember that bill clinton and jimmy carter went over before, and he was miffed about that, but it worked out in the end. bill richardson, governor of new mexico, has been to north korea on more than one occasion, and i thought he would want to go, but with hillary as secretary of state and maybe some bad blood between the clintons and richardson -- jon: yes, richards and endorsed barack obama, despite working in the clinton administration -- richardson endorsed barack obama, despite working for the

clintons. >> right. and they probably get the most pay off having a visit from him as opposed to other candidates. jon: so how long before we hear some news? >> that is the thing to watch. if this was a short, 1-off meeting, i do not expect much to come from it. but if they have repeated meetings that go on for an hour, two hours, that is the prelude to something more significant down the road. but i do not expect him to stay more than a couple of days at most before returning. we will know, because he certainly will have a press conference on the ground, likely stopping in south korea or china. that is what you do when you go to north korea, you stop at these places on your way back. we will have more details on the way back. jon: and these journalists were

working for al gore. anyway, we will hope that the former president brings them home. jim walsh, from mit. jane: a swat team on a rescue operation, with 20 cops swarming a house. we will explain what happened here. also, some videotape just in with seven terror suspects from north carolina in federal court this morning. the indictment coming for the ring leader, a 39-year-old named daniel boyd. his two sons are also named to. to improve joint comfort in as little as six days. six days, that's fast! (announcer) joint supplement pills are history, because elations powerful formula is more absorbable than pills, delivering clinically proven levels of glucosamine and chondroitin in a great-tasting drink

you enjoy every day. it tastes absolutely delicious. goodbye horse pills. i've got it working for me. (announcer) elations. the new standard in joint health.

spend 10 minutes a month with natural instincts. it's the healthier way to blend away gray and give you color that shines on. how? the antioxidant rich ammonia-free formula feels good and looks even better. in fact the more often you use natural instincts, the healthier your hair looks. it's the healthy-looking color that shines

in just ten minutes' time. natural instincts, it's all good. look for natural instincts new champagne indulgence collection. from clairol. jon: it is our question of the day. the cash for clunkers program, the senate voting on whether or not to spend $2 billion more on the program.

there era -- are indications it could get even bigger. donald trump plaza casino gets the new boss, same as the old boss. and consumer spending is up. jane: wait until you see what i got for you. you will not be disappointed. the confirmation of judge sotomayor is expected to begin sometime after lunch today. her confirmation is expected, making her the first hispanic justice and at the third woman to be on the court. some argue she is an activist judge. if confirmed, she would replace retiring justice david souter. jon: arlen specter is facing a new challenge in the primary. a former navy vice admiral plans to run against him.

arlen specter removed his ties to the republican party earlier in the year, hoping to change election results. jane: 3 more are under arrest after a dramatic rescue operation in riverside, california. a swat team arrived, surprising kidnappers, and they stormed the home. they ended up negotiating a peaceful surrender. the man inside had been a hostage for four days. they also found a large amount of drugs. the victim is said to be in stable condition at this morning at a hospital. jon: 8 toxic leak in a trash facility sent more than 102 the hospital. investigators are returning to the scene today, trying to figure out what caused toxic fumes. 119 people hospitalized, and two are in more than critical

condition. they are trying to figure out whether this was an accident or not. jane: in california, three teenagers slammed a stolen car into a house. it was a carjacked vehicle. all three of them are hurt, but they are expected to live. they are now under arrest, and thankfully, nobody was inside the home at the time of the accident. jon: depending on who you ask, is a wildly popular program -- cash for clunkers. reporter say it is boosting the economy and saving automakers, helping the environment, boosting jobs. why would anyone be against it? we will talk to one senator says that this plan is a bad idea.

my name is chef michael. and when i come home from my restaurant, i love showing bailey how special she is.

yes, you are. i know exactly what you love, don't i? - [ barks ] - mmm. aromas like rotisserie chicken. and filet mignon. yeah, that's what inspired a very special dry dog food. [ woman ] introducing chef michael's canine creations. so tasty and nutritious it's hard to believe it's dry dog food. chef-inspired. dog-desired. chef michael's canine creations. are more than words here. it's personal. i have diabetes. rodney's kid too. so we're so proud to manufacture... the accu-chek® aviva meters and test strips... here in the u.s.a. plus, we've proven you'll waste 50% fewer strips... when you use our meter, which means greater savings... for people with diabetes, like me.

jon: australian police arrested for terror suspects and a plaque to -- for -- four terror suspects in a plot to attack a key army base in that country. cops have been trailing the suspects for months and think that an attack was imminent. all four are australian citizens of somalia or lebanese descent. jane: take a look at apple based -- a poll from rasmussen about cash for clunkers. this is a program that pays you for trading in old gas guzzlers for a fuel-efficient car. just 33% believe that congress should authorize additional funding. new york at senator chuck schumer explains hear why he --

new york senator chuck schumer explains why he supports the program. >> if it is not broken, do not fix it. it is working in every way. what we need to do here is not put on the brakes, but step on the gas. jane: not everyone else agrees. i understand you are in the 64% opposing more money. why? >> americans are smart shoppers, and they know a good deal when they see one. to get $4,000 off a car that is $15,000 is an amazing incentive. but what else would you pay for? only in washington would you consider a program spending money 10 times faster than it would -- was supposed to to be a success. this was supposed to last

months, and they were out of money in a week. jane: statistics tell us that 61% more fuel efficient cars are these purchases, and most of what have been traded in our pickups and suvs. that is hard to fight. >> it is tough to say. there have been articles today in the papers as saying this is not doing what they want for the environment. but look at a cost. the question is, where does the next $2 billion come from? does it come from stimulus money? because i have great concerns for our automobile dealers. not the manufacturers -- i voted against those bailouts -- but i have concerns for car dealers across the country. you want people in the showroom,

but i'm saying, where is it coming from? we're spending $100 million a day just on the interest on the debt from this package. i do not think we need to put more money into this. jane: some dealers are concerned at this point, saying, what if the senate does not pass this? i will be on the hook for this money. >> that shows what happens when washington gets involved in a program like this. sphere -- the people who wrote this legislation did not want to rewrite health care. i have grave concerns about congress having the ability to get this right. jon: it is a hot item on capitol hill.

should congress put in more money to extend the cash for clunkers program? send us your e-mail, and we will read some of it on the air. jane: most dog owners and think that their dog is the cutest in the country. can your puppy compete? take a look at these pictures. isn't that cute?

diabetics on medicare. hello, i'm john fox---you may know that i'm a professional bass fisherman. but you may not know that i have diabetes. and it's never slowed me down thanks to the good folks at liberty medical. i've been a liberty medical patient for years and have relied on them for all my diabetic needs. and, if you call now you'll receive a free meter. it's easy to use with fast results. even the shipping is free and medicare may cover the cost of your other supplies. liberty medical keeps you on track by delivering diabetic supplies right to your door. they even take care of the paperwork, file your claims and send you a free meter.

call right now and they'll also send you a free diabetic cookbook. diabetes doesn't have to slow you down. join me and over a million people who trust liberty medical. jane: your local post office will not be closing its doors, but hundreds are on the chopping block. why? we will tell you what it means for you. jon: ruth madoff is used to a life of luxury, with yachts, a villa in france. but since her husband's fraud conviction, life has changed for her. he will not believe what she has to do now before she can even spend $100.

jane: hitting a guard rail and rolling over. we will give you an update on this accident. jon: president obama is turning 48 today. he is trying to get his plans for health care reform done before the august recess. health care and the economy are expected to be hot topics today. what else is on the agenda? >> you are right. the president is expected to make a push for more money for cash for clunkers. now the president's is expecting him to sell that. we expect 57 senate democrats to be here, the exceptions being senator kennedy, and senator byrd. three will be out for health reasons. jon: let's talk about cash for

clunkers. the senate wants the house authorize more money for the program, right? >> you are right, and the white house makes the case that they think this is an effective example of the economic stimulus package working, at least for that sector. they say that people have taken advantage of the program and it has been good for drivers and taxpayers and auto dealerships, and good for the bottom line of the auto companies. they say based on those reasons that should be reauthorized. jon: i suppose that this is more about doing business than wishing the president happy birthday. will we hear from some of the senators? >> we do expect to hear from the leadership after they leave the meeting. we do not expect to hear from obama at this time. one might expect a little bit of happy birthday and perhaps a

cake, but the white house so far has been vague about what the official birthday plans have been. but we will get a readout from some key senators after they meet with the president. jon: all right. mike emanuel at the white house. mike, thank you. jane: harris has more from the three newsdesk about the seven terror suspects from north carolina. >> there is an fbi agent on the stand right now in the hearing, and they are talking about the main suspect, daniel boyd, who the indictment claims was the ringleader of this group of seven suspects. the agency as saying that when he talks to boyd, this is what boy told him -- that he had attended terror camps in connecticut in the late-1980's, and three more in pakistan, where he learned about hand-to- can combat and the use of

firearms. so again, daniel boyd, a suspected ringleader of this group that promised to carry out jihad against so-called nonbelievers in islam. and still on the stand, the agent is saying that the main suspect, daniel boyd, said he was carrying his identification card with him, suggesting membership in pakistani terror groups. the cards said, "monotheism, jihad, power." two children of the ringleader are also implicated in this. as more news breaks, we will bring it to you right here in the newsroom, of course. jane: a little news on donald

trump. he is rolling the dice once again. they are taking back the atlantic city casino company bearing his name. what is going on? >> this represents what is going on in the real-estate market overall. you have, entertainment, owning three casinos in atlantic city. -- you have trump entertainment, which owns three casinos in atlantic city. and then you have a satellite position, and quite frankly, donald trump and trump entertainment did not always get along. if we go back a couple of months when the crisis hit, trump was on the verge of filing for bankruptcy. trump entertainment would not allow donald trump to buy them. so here we are, late summer, but donald trump is back again, working with the bank of nevada, and he is stepping in to

buy these casinos and be involved directly this time. so how does this reflect what is going on in the environment? it shows that as property falls to disarray and bidders step back from the table, there are deals to be had. it is hard to tell if this is a good deal, because we do not know how much money is being put forward. but he says, quoting from the press release? "we will make this city hot once more." jon: a missing dog, and a search for a million-dollar dog. courtney friel has the scoop. >> seriously, animals are always big klicks online. imagine losing your dog because

it wandered off, and someone finds it nine years later? mussy the much was reunited with her owners in australia today. she was found sleeping in a cardboard box 1,200 miles away, but luckily she had a microchip, and the family will never take their eyes off her again. you can read all about it on foxnews.com. do you have the cutest dog in the nation? you could win a million dollars. the all-american pet co. just started its cutest dog competition at the website cutestdogcompetition.com. photos can be submitted, and the top four with the most votes will win $5,000. a panel of judges will choose the grand prize, $1 million awarded on thanksgiving.

the website has been really busy. they have had more than 4000 photographs posted. i want to enter my poppy right now. we were at an animal fashion show, and he is worth $1 million. the deadline is 11:59 on october 23. you want to write that down. and next hour, i will be back with your tech rap. i addressed my dog up in that photograph with clothing meant for eight fastens show. all the proceeds from this contest go to the humane society, by the way. jon: the only thing my dog ever

wore was a backpack so he could carry his own food on hikes. jane: because you refuse to feed him. thanks, courtney. we will see you next hour. now, more drastic measures are being made to take money, and we're getting informational on what post office could be closing soon. he ran off with his secretary! she's 23 years old! - oh, come on. - enough! you get half. and you get half. ( chirp ) team three, boathouse? ( chirp ) oh yeah. his and hers. - ( crowd gasps ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion? - ( chirp ) good to go. ( grunts ) timber! ( chirp ) boss? what do we do with the shih-tzu? - ( chirp ) joint custody. - dog: phew... announcer: get work done now. communicate in less

than a second with nextel direct connect. only on the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com. you can make a positive change in your career. you can make a greater contribution to the greater good. and you can start today, by earning your degree online... at walden university. where advanced degrees advance the quality of life.

jane: raising the stamps' priced by a couple of pennies, the post office is facing millions in losses this year. now, 700 post offices are said to be on the chopping block,

attempting to cut costs. how big a problem is this, and how much money could they save by doing this? >> the postal service is considering closing local offices, because there could be $7 billion in debt this year. a spokesman tells me that maybe 300 of them are likely to be shut down in the end. no decisions are final yet. the agency is also considering reducing service from six days a week to five days a week, but no changes are expected before the end of the fiscal year on september 30. some have reservations about closing offices or going to the five-day delivery schedule. we talked to susan collins from the postal delivery service, and here is what she has to say. >> its scenes like this will only cost the postal -- it seems like this will only cause the

postal service to lose more customers. so i am asking a lot of questions about that proposal. >> and they say that cutting service is a last resort. but i was told that they already aggressively slashed costs over the last fiscal year, including eliminating 1400 supervisory and management positions, offering early retirement to under 50,000 workers, cutting hours, and instituting a hiring freeze. jane: when will we figure out if our neighborhood office is being dropped? >> well, no final decisions until september 30. it also has to be approved by congress. the biggest factor here is the recession and all of the volume they have lost, especially advertising mail, a junk mail. apparently, that pays the bills. jon: a effective immediately, the marine corps is banning

social networking sites like facebook and my space from their computer systems, fearing that they could expose confidential information. the study should be done by the end of the month, and marines are still allowed to use the sites from their personal computers, as long as it is outside of work. jane: a new study about depression and children finds that children as young as three could be depressed. in the past, it was thought that preschoolers were too emotionally immature to experience it, but the study claims that it is not the case. jon: scientists are coming closer to understanding one of the world's most devastating diseases. researchers say they may have tracked down the origins of malaria to chimpanzees. it is believed to have jumped

from chimps to humans thousands, possibly millions of years ago. more than 1 million people die from malaria exposure each year. jane: her husband is the biggest swindler of all-time, bilking clients out of billions. and while he is behind bars, his wife is now on a tight budget. she has to clear anything she buys that is over $100. sandra smith has the details. tell us about the details. >> she can say goodbye to all of those giorgio are many suits she was known for buying -- giorgio armani suits she was known for buying. the court-appointed trustee is now requiring ruth madoff, the wife of the ponzi schemer, to

clear all purchases exceeding $100. that could be anything from a hair cut on the upper east side of manhattan to a trip to the grocery store. jane: and what about her legal fees? >> the trusty is seen -- saying that she can commit to reasonable legal fees, as it is worded on the court documents. she has been given 2.5 million from the u.s. government in the settlement of all of this, but that is it. no property. and she can spend up to $589,000 on legal fees and living expenses. jon: this just in. some pretty scary stuff in illinois. a tornado warning for parts of that state. we will update you. anytime you see that deep magenta, that is never good.

we will have an update for you from the fox weather center. also, in wisconsin, a bus carrying special olympic athletes crashes, rolls over. . .

jon: some scary weather right now in illinois and parts of indiana right out. -- right now. >> yes, a tornado warning for northern crawford county. it looks like we're seeing damaging straight line went -- winds, and we're starting to see rotation on doppler radar.

we have severe thunderstorm warnings over the next several minutes, a very dangerous thunderstorms just crossing the border to indiana. thunderstorm watches are also in affect for the next several hours for parts of illinois and indiana. we also have incredible flooding right now across portions of kentucky. louisville is under a flood emergency. over 6 inches of rain this morning. fox 41, our local affiliate, is actually taking on water. flash flooding in louisville, kentucky, happening right now. the squall line, the actual thunderstorm line has pushed through the region, but it has left motorists stranded and they are doing high water rescues. live pictures are coming in from fox 41 to demonstrate the

danger with some of this flooding across the region. back to you. jane: now to wisconsin, where a bus carrying athletes from the special olympics crashed and rolled over earlier this morning. joining us now is the sheriff. how many people were hurt? >> well, 22 occupants were taken to local hospitals for of -- observation and treatment. right now, two remain hospitalized with serious injuries, but not life- threatening. they were the softball and golf team returning from the state of nebraska. jane: is it possible that the driver fell asleep? >> well, we do know that the bus

veered off to the side of the road and struck a guard will -- rail. jane: there was one report out there that a tire actually blue. is that true? >> well, when a vehicle crashes, tires can be blown, but it is not clear if it was causation. jane: there was a special olympic athlete injured? >> yes, one was evacuated with injuries and the driver had injuries and was taken to the hospital. but they are both expected to make a full recovery. jon: it seems like everyone you talk too has economic worries

right now in these days of swindlers and ponzi schemes. who can you trust? researchers in china found that people trust prostitutes more than politicians. 3000 people took place in the study. farmers, religious leaders came in first and second, respectively. them prostitutes, scientists, and teachers. politicians were way at the bottom, along with entertainers and directors. jane: he wears a women's clothing when he starts out on his robberies, but in the end, he is not wearing anything. there is a shot from the surveillance camera. chocolatey taste in 60 calories? ♪ ♪ oh, so delicious who cares? jell-o sugar free pudding. every diet needs a little wiggle room.

recently turned 65. glad he's now got medicare on his side. but jack knows that medicare part b covers only... 80% of medical expenses. so, he got himself an aarp...

medicare supplement insurance plan -- insured by unitedhealthcare insurance company. a medicare supplement plan... lets you to keep your own doctor, helps you budget medical costs, and it picks up some of that 20%, potentially saving you thousands of dollars... out of your own pocket. if you're turning 65, or are 65 already, call now for this free information kit... and medicare guide. learn more about aarp medicare supplement insurance, and its wide range of coverage options, competitive pricing, and, plans that travel with you nationwide. so call now, just like jack and millions of others have done. because when it comes to medicare, we should all be on a roll. call now for your free information kit... and medicare guide. ♪

[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- senate jane: democrats are trying to get republicans on board to extend the cash for clockers program. some are wondering if air conditioners and refrigerators are next. jon: lawmakers getting an earful back, about health care reform. jane: he is caught on tape dressing like a woman, then at dressing down. we mean way down. jon: a mission to free two capture journalists in north korea. bill clinton is there, landing on a visit that was announced. he has already met with the leader of the regime, kim jong il. the extremely rare meeting comes during a tense international standoff over the nuclear program. a senior official tells fox news that a deal has been worked out

to release the journalists. the journalists were arrested for crossing the border, convicted, and sentenced for 12 years of hard labor back in june. not much is said about the clinton trip, except that he is on a private mission and they do not want to jeopardize his success. jennifer griffin is at the pentagon for us. what do we know so far? >> north koreans are treating this as an extremely high- profile visit, as much as the white house is downplaying it, and the caribbean state news agency released informations saying that president clinton had a courteous mention, saying that he was on a private message mission, without a message from obama.

but north koreans say they had a light -- wide range of talks. you're seeing clinton being drawn into a propaganda who with the north koreans. jon: what was the reason behind sending clinton? >> everyone knew when the journalists were sentenced to that it would take a high- profile visit by an american that was respected by north korea to appeal for amnesty and their release. the problem is that it comes at an awkward time in terms of the u.s. and others trying to pressure north korea on its nuclear program. you can rest assured that iran will be watching how this plays out, because they have three americans in their custody right now and they are going to be expecting something in return. it will raise questions as to what message did bill clinton deliver. it is a bitter twist of irony, because when clinton was the president, jimmy carter went on

a free-lance mission to north korea and negotiated with them, and that led to a compromise is being made on the north's nuclear program. of course, bill clinton was chosen, and his wife is secretary of state. but the north koreas will play this for all it is worth. jon: iran confirmed the arrest of the three americans jenifer just mentioned for illegally entering that country. state media reports that two men and women were arrested. their case is said to being used as propaganda. hillary clinton akh has called to release them immediately. we will keep you updated as story continues to develop. story continues to develop.

jane: hard to understand, but there was a lot of opposition there. the meeting got so big that they could not get into the room. they're holding a couple more later this week. back in washington, congress is trying to figure it out. james rosen is on the hill for us. when we state revenues are tanking, how deep are we going? >> it is not surprising that in team midst of a recession, it is

striking to people. you still see a tax revenue, and this is said to be the worst since the great depression. total receipts down by 18% over last year. individual income tax receipts for the government down 22%, and corporate revenues are said to be scheduled 57% over this time last year. all in all, you tally up, and it is the worst since 1932. it has been a long time since we had this kind of weakness. jane: they also say it is possible that they might just

roll over them. >> this talk came out yesterday courtesy of a conference call involving chuck schumer. let's listen. >> if we cannot produce a bipartisan solution, you have to wonder if they will ever be willing to agree to anything. >> when senator schumer said that reconciliation is on the table, what he is referring to as a parliamentary maneuver that democrats are thinking about using if democrats do not fall into line.

the reconciliation is only generally used with the budget bills and has basically required just a simple majority, not 60 votes to pass. republicans are certain to put up a big fight about the use of this procedure, which is normally only used for budget bills. it would not be easy, but it could possibly be done. jon: hundreds of officers involved in an australian terror grade. turning us on the phone is a reporter with channel 7 in australia. what can you tell us about this plan the attack?

>> we have never seen anything like it. these men were arrested in raids that were unprecedented in counter-terrorism history. simultaneously going to swoop down, and intelligence agencies heard something that made him decide they could not wait any longer. there was an imminent attack on troops here in sydney. so far, five are behind bars, and they are not ruling out any arrests. jon: what do what? >> they are all australian citizens of somalia or lebanese descent. one is charged with conspiring to prepare a terrorist attack, and to stand before a council, one of them refused, saying he

will only stand before his own god. they are members of an islamic terror group in somalia aligned with al qaeda that has been involved. it is claimed that they want a religious ruling so they can die in the attacks and become martyrs and they want to achieve the spread of terror across australia. 95 australians have been killed since 2002, and most recently, three of them were killed. many of them have been killed, and they are linked to al qaeda. since 9/11 we have been on a medium trip for counter- terrorism and been targets, especially because of involvement in iraq and

afghanistan, and it is quite possible that these men are simply radicals intent on revenge. jane: we want to show you pictures coming into our newsroom for new jersey. a school bus has crashed there. it happened at a religious school. police are confirming only that it happened, not telling us any details about people on board. local reports say that children can be seen placed on those flat boards and treated at the scene. harris will have more after the break.

i never thought i would have a heart attack, but i did. you need to talk to your doctor about aspirin. you need to be your own advocate. be sure to talk to your doctor before you begin an aspirin regimen. you take care of your kids, now it's time to take care of yourself. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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

jon: caught on tape, a bizarre situation, to say the least, in pennsylvania. and naked burglar -- a naked burglar caught on tape entering an apartment in a blouse and skirt, and then he leaves completely naked. police are taking the crime

seriously, saying that there are indications that he could be dangerous. join on the phone is the deputy chief for abington township. you suspect that this guy also exposed himself to a woman, right? >> that is correct. jon: then what happened? >> we started investigating the burglaries. if first occurred at the apartment complex, where a female residents of a naked mail -- saw a naked man running through. she called police, who investigated and found the crime. jon: and he left creepy messages inside these apartments? >> after this burglary, he apparently went almost across the street.

he tried a number of stores, enter the apartment, and he was closed at that time. when he came out, he was naked, carrying his clothes in one arm and a laptop in his other hand. as a result of extensive media coverage, we're getting a lot of tips on this, and we're working through those. in addition, we have communicated with an attorney believing he will be able to surrender an individual who did this later today. jon: we're seeing some video -- that is what the actual neighbors. the video is clear, seeming to suggest, you know, it should have a good idea who you are

looking for. >> absolutely. the video has resulted in a lot of people being able to give us identification. jon: when i first heard, i had to laugh, but you are concerned about the potential for what could happen here. >> yes, without question. there's a strong sexual connotation and all tier, both from the fact he takes off his clothes while he commits the crime as well as the fact that he goes through women's underwear drawers, taking items out, moving them to different locations in the residences. couple those things together, and our concern is, should he happened to burglarize a place and someone be home, what would occur. jon: well, some pretty creepy messages left. this is hot line. if you have informations, abington township, pa., police would like to hear from you.

chief john life and good. sent you. jane: -- thank you. jane: cash for clunkers. the house has already approved 2 billion more for the program. we asked you if the senate should be approving it, as well. we are getting a lot of answers on our blog. many americans cannot afford creatures, much less a new car. the president -- government is paying to have good cars destroyed. this seems to be the only stimulus so far that has produced immediate results. i'm robert shapiro. over a million people have discovered how easy it is to use legalzoom for important legal documents. at legalzoom, we'll help you incorporate your business,

file a patent, make a will and more. you can complete our online questions in minutes. then we'll prepare your legal documents and deliver them directly to you. so start your business, protect your family, launch your dreams. at legalzoom.com we put the law on your side.

jane: new developments in the cash for clunkers program. this is the program offering hundreds in rebates for trading in your gas guzzler for more fuel efficient models. so many people took advantage in the first week that the program burned through its billion dollars in funding. the house had already approved another 2 billion for the program, and it is up to the senate. cash for clunkers could disappear friday if it is not refunded. we have a former speechwriter for bill clinton. i want to put on this poll from rasmussen reports this morning. 54% oppose more money. what does this say? >> i think ultimately the senate will pass it, because is a program that works, a short term, it has led to many more

vehicles sold. this is the kind of program our country needs. short-term cash and a pocket to the american people to get more green vehicles on the road. they will save 45 million gallons of gasoline. i do not know why republicans are opposed to this. jane: why not just give us tax rebates and we can spend them on different industries? >> that is something we should have done. i think in some ways, when the plan is going to 10%, you have exploding deficits, serious economic problems, so to be celebrating this is like the kid faulty math, science, and education saying he got an a in physical education. the reason this is opposed is because people want groceries and close, to put food on the table. jane: rich lowry said this --

jane: rich lowry said this -- >> i think republicans can always find a reason to say no to congress. but if you look at what this program does, it actually gets more automobiles on the road, increasing jobs, getting stimulus into the economy. it was pointed out that we need to create jobs and turn the economy around and this will help it, is a step in the right direction. and second, we're trying to get off the fuel efficient vehicles and bring more efficient vehicles into the country, and this does both things. it is a great program and a short-term stimulus.

republicans always talk about wanting to cash immediately infused into the economy, like george bush said, and this is a way to do that. it will get our economy moving. jane: there are two viewpoints, and could not be clearer. some see it as a successful program, and others think is a disaster, the way it has been managed, and that raises a question. if we're talking about putting the government in charge of health care, are we in for more of this? >> i think so. it is not just republicans expressing reservations about this program. john warner today expressed serious doubts about what you just mentioned, which is that this is a runaway program. this program has tripled in spending in one week, and this will only help maybe a couple hundred thousand american people. not to say they do not need it, but when you look at health care, we were talking about

making a free for 80 million americans -- what will that do to the exploding cost of health care? the costs will keep going up, just like this program. >> i would say it has done well because it is working. looking at sales year over year , is stimulus money to get things going again, and that is what you always hear complaints about. jon: the program has awarded many people for trading in their old cars in exchange for new, fuel-efficient ones, but it does, the cost. we asked you earlier if you think the senate approve those 2 billion extra dollars to extend the program. kevin from colorado rights yes, it is a good idea, it helps the general public, mostly middle- and-lower-class, who need help, the carmakers, and the environment. another says we should not find

it because it is a whimsical, poorly thought out schoolboy's solution which just like stimulus is unfair, and productive, and reckless. another says, if they continue to subsidize the auto industry, the least they could do is to make the program available only for vehicles that are actually built in america. this thing has lighted up today. go to our website and click on the link. jane: harris has more on the school bus crash. what do we know? >> it actually eight synagogue in lee sonya, new jersey, just across the hudson river. you cross over the george washington bridge, and you hit this summer, a beautiful area. what a fox affiliate in new york is reporting is that a school

driver put the bus and reverse and hit the back of the synagogue. they do not know if he was distracted or what the problem was, but kids got hurt, four or five of them on stretchers outside the synagogue, and they have been transported to area hospitals. we do not know the severity of their injuries. but they were serious enough to go ahead and transport them out. what was going on? a summer camp was operating out of the synagogue, and kids were getting ready to go to a nearby bowling alley on a field trip. obviously, they will not be going bowling today. jane: some crazy glue, a motel room, and some women who were scorned, hatching a plan to get back at a guy who cheated on them. one guy versus four women who are very, very mad. limb: dude that was sick!

i've been hangin' up there for, what, like, forty years? and then - wham - here i am smacking the pretty off that windshield of yours. oh, what you're looking for an apology? well, toss another coin in the wishing well, pal. it's not happenin'. limb: hey, what's up, donnie? how you been? anncr: accidents are bad. anncr:but geico's good ding! with onsite windshield replacement.

lower your bad cholesterol but your good cholesterol and triglycerides are still out of line? then you may not be seeing the whole picture. ask your doctor about trilipix. if you're at high risk of heart disease and taking a statin to lower bad cholesterol, along with diet, adding trilipix can lower fatty triglycerides and raise good cholesterol to help improve all three cholesterol numbers. trilipix has not been shown to prevent heart attacks or stroke more than a statin alone. trilipix is not for everyone, including people with liver, gallbladder, or severe kidney disease,

or nursing women. tell your doctor about all the medicines you take and if you are pregnant or may become pregnant. blood tests are needed before and during treatment to check for liver problems. contact your doctor if you develop unexplained muscle pain or weakness, as this can be a sign of a rare but serious side effect. this risk may be increased when trilipix is used with a statin. if you cannot afford your medication, call 1-866-4-trilipix for more information. trilipix. there's more to cholesterol. get the picture. jane: we are now getting word from washington that the full senate debate about the supreme court nominee sonia sotomayor has been delayed. it was scheduled for one hour ago, but now they are debating a bill. shannon, the confirmation of judge sotomayor seems sure, but some are still holding out. >> yes, they are.

we have heard from a number of republicans, and to give you an overall tally, we have 33 yes votes and 27 no votes overall, but that is deceiving, because it will not be that close. six republicans have said they will cross over and vote yes for her to take a c. she will probably do better than the most for -- republican nominee, but it is not sure. jane: they are expecting a strong bipartisan reaction for this. what happened? >> she was praised on the floor of the senate, with people talking about her qualities. but in the end, her detractors

say they cannot see someone like her succeeding of viewing the lot the way she does. a number of republicans will say that this is not bipartisanship. it is how you view the philosophy, and how you will vote on the law. they get lifetime appointment and there is no accountability, and senator mccain said that was a bridge he could not cross. jon: we heard last hour about terrible/floods in louisville, ky. the studio down there is taking on water. jennifer, describe it for us. >> we were able to get all the water. we're using vacuums to get it out. but this morning, we were doing our show and water started coming into the newsroom and offices, and we have to take every implement we have to clean

up. a lot of water at one time came through the storm, so obviously we are fighting back. and we had an official tell us it was not a drainage problem, they were just taking on so much water at one time. we did have some water rescues here, but the good news out of this entire situation was that nobody died. we have thousands go without power, and mainly it is this global area where surrounding counties are not suffering a lot. jon: when that blogger is on top of the city, that must be what caused the problem. it looks like this guy has cleared up by now.

>> you see video of the rescue, and police were actually arresting people because vehicles were going down around the barricades, going through this water, and they just did not understand. police arrested them. they were not able to save their vehicles, but because the water came up so quickly -- jon: jennifer bailey, we're glad you got a station dried out there. thank you for joining us. jane: the dow had been flat, but now it is up 25 points or so. jenna lee is here with news about the mortgage modification program. what are we hearing? >> a few different things about

this program. first, they put forward this report about how banks are or are not modifying different mortgages, and what it showed is that about 90% have received some sort of loan modification. what they did was then went through and looked at the low modification bank plan, and here are the banks that are not doing it quite quickly enough. so i wanted to look at some of the numbers to see if you could compare, and bank of america and j.p. morgan, you compare them and you could say they're operating under similar conditions, so you can compare the two loans that were not modified. bank of america, according to the treasury, at 800,000 different loans.

if you compare the rate of modification to j.p. morgan chase, they show 20% of the potential loans were modified. that seems like such a big difference, that j.p. morgan is doing way more business than bank of america. but if you look at the amount of mortgages they were looking through, it is really have a total of bank of america's total eligible loans. so it does not seem that you can do a comparison. different banks are doing different modifications at different rates than others. but it is tough to know. there are mixed messages to this. it is hard to look at it. but the administration says that overall, based on incentives that they are giving the banks, they believe that they are going to be able to modify 3 million to 4 million different mortgages out there, and that will be a successful program for them. so we will continue to watch

this. there are mixed messages out there, and we have to be careful about comparing these banks to each other. jane: you know what they say about a woman scorned? what if there are four of them? one wife, three girlfriends. they want to get revenge. there they are. her husband is a victim of a crime, so we're not identifying him. but we found out that this same casanova had been courting all of them at the same time. authorities say that these women hatched a plan to get back at him. in all happened in wisconsin, where authorities say one women lured the man into a hotel room for a night of a little romance, she tied him up, blindfolded him, texting on the phone for others to join her, and that is when things got ugly. he was punched, he was threatened, and crazy glue was involved on his sensitive parts. now the women face punishment and possible jail time.

joining us now is the district attorney for the county, who is handling the case. your point in this filing was that this is not a spur-of-the- moment thing. it was planned. >> that is true. four women were involved in hatching this scheme. i know that the wife had found out about the other three women and notified them of this individual's marriage status, and then a plan was concocted to lure him to the hotel room, and as you said before, that is when things obviously got out of control. jane: one woman had a gun, and she was pointing at his head and private parts? what's the allegation by the

victim is that a gun was involved. during the investigation, we look for a weapon, we could not corroborate the existence of one. but as i am sure you and your viewers can understand, it is not going to take very much for a situation like this, such a volatile situation, to really spiral out of control and something serious could come from it. jane: who is in the most trouble? the lady with a crazy -- probabl.

the lady with the crazy glue is a person who not only tied our victim up but also physically assaulted and humiliated him. it might be suggested that the man deserves this, good for them, and this goes up to seven years for each of the ladies that have been involved for incarceration potential. jane: what i heard from the man is, alex, how is he doing? -- what i heard from the man i talked to is, ouch, how is he doing? >> he is ok. every time you take a confrontation for infidelity or any other charged matter and have physical injury, that takes it to a level that requires conflict.

jane: quite a story. thank you very much. jon: in the waters off of new york city, a massive the drill is under way, with multiple agencies training to keep the biggest city safe from terrorists. they are hoping to keep up strategies to avoid a dirty bomb ever reaching land here. we are streaming live near the verazzano bridge. rick? >> it is part of a securing the safety initiative funded by $30 million from homeland security, given to new york city to help protect the waterways and create a ring around the city to keep a nuclear device from entering the water. we went out a couple of hours ago with the nypd, and this is one of the boats they took us out on. there are police boats out and the water as well, stopping pleasure craft, making them go into sort of a gate way in which

they are tested for the possibility of any kind of radioactive material on board. the point of the exercise is to demonstrate the equipment, to make sure everything goes well. for the purposes of this exercise, they did outfit four undercover coast guard boats with radioactive material, and while we were out there, we saw some of those boats, there were hits on the equipment, they pulled alongside a police boat, they boarded the boat, got readings on it, and sent the information back to washington for further analysis. today is an exercise, but the nypd told us that they believed the threat of this device is real, that is why they have a program, and that they're asking the federal government for more money to keep it going.

jane: pretty incredible coming up. a routine flight that went wrong for a couple in california. they survived a harrowing idea of -- or deal. jon: the engine quit at 10,000 feet. so, what's the problem? these are hot. we're shipping 'em everywhere. but we can't predict our shipping costs. dallas. detroit. different rates. well with us, it's the same flat rate. same flat rate. boston. boise? same flat rate. alabama. alaska? with priority mail flat rate boxes from the postal service. if it fits, it ships anywhere in the country for a low flat rate. dude's good. dude's real good.

dudes. priority mail flat rate boxes only from the postal service. a simpler way to ship. a day on the days that you have arthritis pain, you could end up taking 4 times the number... of pills compared to aleve. choose aleve and you could start taking fewer pills. just 2 aleve have the strength... to relieve arthritis pain all day. it doesn't cover everything. and what it doesn't cover can cost you some money. that's why you should consider... an aarp medicare supplement insurance plan... insured by united healthcare insurance company. it can help cover some of what medicare doesn't...

so you could save up to thousands of dollars... in out-of-pocket expenses. call now for this free information kit... and medicare guide. if you're turning 65 or you're already on medicare, you should know about this card; it's the only one of its kind... that carries the aarp name -- see if it's right for you. you choose your doctor. you choose your hospital. there are no networks and no referrals needed. help protect yourself from some of what medicare doesn't cover. save up to thousands of dollars... on potential out-of-pocket expenses... with an aarp medicare supplement insurance plan... insured by united healthcare insurance company. call now for your free information kit... and medicare guide and find out... how you could start saving.

jon: if you know salt lake city, you know it is ringed by jagged peaks. not a great place to have the engine go out on your plane when you are 10,000 feet off the ground. that is what happened to charles mcdermott and his girlfriend, carol vargas. they were flying from wisconsin

back to california, when the engine quit 10,000 feet up. but the pilot kept his cool, calling for help. his passenger pulled out a camera as they crash landed. >> i've never been so thankful in my entire life. thank goodness. we crashed. we crashed. we are alive. thank you, god. we are alive. >> mayday, mayday. it was my may 1 day in 40 years of flying. jon: it was a picture-perfect lange being -- landing. unfortunately, the plane did hit a ditch, and that caused quite iraq is on the ground. they were just short of salt lake international airport but did not have enough gliding distance to get there.

they are going to tell us the story now. carol r. guest joins us live on the phone from the airport. what did charles say to you when the engine quit? >> i thought he was switching fuel tanks. i try to think that, even though it did not sound right. i asked him what happened, and he said catastrophic engine failure. my heart sank, but he took control. i held the map on my leg, i was shaking so hard, and he said mayday, and we started gliding down. jon: you are fond of using twister and things like that. i guess you actually tried to shoot inside the plane.

>> yes, i did, and i do not know whether it was the impact hitting the camera lens that made an error, or i did not push it right, maybe i pushed it two times. jon: what was the impact like? >> i thought it would be ok. i thought we were going to make it when i saw the field. i knew we were going to be ok. and just before touching down, the ditch came into view. but the plane was not going to fly anymore and we just caught that opposite edge of that bitch, just a foot below the rim -- we just caught the opposite edge of the ditch, right below the rim. just hundreds of feet. everything went forward, but laptop went into the back seat, mike iphone went out the plane and ended up under the tail.

jon: you got out of it alive, and that is a good thing. good to talk to you. good job, charles. . . there are many ifs in your family's life. if your kids can go onward and upward, no matter what. . the most essential insurances, term life and disability,

in one surprisingly affordable package. creating a personal safety net that's bursting with guarantees for the if in life.

jane: wanted back to this pricking weather news. janice dean has the details. >> this is an extreme situation because we have another line of thunderstorms on top of the 6 inches of rain that they have received in one hour. people are urged to stay indoors. we have high water rescues going on, the university of louisville this shutdown. -- is shut down/

. people are being urged not to go outside. there is another system that could be moving into the region. our local affiliate station had to shut down because the station was taking on water. people are urged not to go outside. do not travel on interstate 65. most of that is shut down. the radar shows us the storm has moved through. we got 6 inches of rain in one hour, which is a record. look at that car submerged. incredible amounts of rain. all of this moisture is coming

and to louisville. emergency officials are urging everyone to stay inside. this line of thunderstorms should arrive between 2:00 and 3:00 p.m. we do not want anyone to get injured, but we will take your pictures, ureport@foxnews.com. again, and lot of buildings and businesses are shut down. people cannot travel right now. it is a dangerous situation. as you can imagine, they have declared a flooding emergency. much more on this and the risk for severe weather later on. jon: why did the goose cross the road? because a good samaritan help him. a good samaritan helps this gaggle of geese across the

street.

(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. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

jon: he thought he was doing the right thing. a virginia man helps a gaggle of geese, but the police give him a ticket. he crossed with the geese, but the police gave him a ticket for jaywalking. >> i saw them on the road, about 11 of them, and it surprised me. jon: in the good news is, the judge threw out the ticket the police wrote. he says he would do it over again. jane: "the live desk" is up next. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- martha: