steve: that wraps up another week. peter: thank you. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- megyn: new this morning, big indication the economy may have turned a corner. the unemployment rate unexpectedly dipped, right now at 9.4%. economists expected to rise to 9.6%. double digit unemployment kept at bay, at least for now. that is a nice way to begin the morning. good morning, it is friday. bill: the labor department also

reported that employers cut 247,000 jobs in july. that is the fewest amount in about one year, killing back to august 2008, and a sign that -- going back to august 2008, and a sign that the economy is getting better. megyn: however, there is a silver lining. there are still 6 million people still unemployed and these latest numbers do not include the most recent people who have fallen off government benefits, applied for an insurance, and now it has expired. stu varney is here to put it in perspective. let's start with the good news. >> wall street is going to take this as a positive.

the trend in jobs is less bad. it is a signal that the recession is winding down, however, if you look at the impact on main street, it is still grappling with what i would call a grim reality. will you -- lose a quarter million jobs in one quarter, that is tough to spin positive. by the way, there are still 5.5 million people unemployed for more than six months. in all, wall street likes this, but main street is looking at continuing job losses for the rest of the year, will not start creating jobs until next year, which means we may take three years to get back to where we were in the employment in the summer of 2007. if we return to the good old prosperous days of the quarter

century, you are looking to return to 6 percent unemployment. it could be a couple of years before we see that. -- 6% unemployment. however, the u.s. is getting out of the recession better than europe and japan. megyn: thank you. bill: is the recession on the way out? we have a senior economist from the "wall street journal." how do we read between the lines? >> i agree it is much better than we thought. some people still believe unemployment will go up to 10%. i am sure in the white house today they were very nervous about this. bill: you wonder if they had any indication yesterday or last night that the numbers would be better.

however, we also heard from the economic team. christina romer will be our guest in the next hour. she said the stimulus program had likely lifted economic activity by two percentage points in the last quarter. >> i do not see any evidence of that. i think you would have to declare the economic stimulus a failure so far. there are 2 million more unemployed people today than when we started the program. do not forget, they told us that if we passed stimulus plan, we would have unemployment less than 8%. when you have 250,000 additional job losses, that is still kind of lousy, especially for those people who are losing their jobs. we need to have an increase in jobs to keep up with labor.

it seems we are suffering from reduced expectations. bill: talk about these health care town hall meetings. >> people are upset, they feel like they were sold something different from the campaign. as someone who has attended a lot of those meetings, covered them, i do not believe that they are manufactured. they are real people who are frustrated with the economy. bill: you have gone to these town hall meetings? where? >> every state from wisconsin. i was at the one in front of the white house, the one in maine.

attendees were spontaneous, not organized by washington insiders. the other point i would make, what is interesting on this job to report, guess where we had an increase? on a manufacturing. maybe cash for clunkers is starting to pay off. -- auto manufacturing. i want to take note of what the "new york times" said today. the tax cuts that you mention have had less of an impact because people tended to save the money were used to pay down their own personal debt, rather than spending. what a novel idea. >> it would not be such a bad thing if the government did that. we are borrowing $2 trillion this year.

small businessmen, the reason they cannot hire is because they cannot get credit, and that is because the government is hogging it all. bill: thank you. megyn: this is a fox news alert. reports from pakistan. the man known as the leader of taliban in pakistan is dead. reports confirming baltullah mehsud was killed in an air strike. he led a violent campaign of homicide attacks in the region, and according to the u.s., was responsible for the assassination of former prime minister benazir bhutto. we are live from pakistan with the latest. >> we got confirmation from a commander from the main taliban

the umbrella group here. baltullah mehsud was killed on wednesday. the administration is not 100 percent in confirming that he is killed and are looking for evidence. now they will be dispatching a team down there to get some physical evidence. that will be a tall order because it is very difficult terrain and because of taliban militants, but the government here is not confirming until they see that physical evidence. however, you did mention that the commander announced this. megyn: how big of a blow is this to the taliban? >> it is pretty big, and a feather in the cap of the pakistani military. there had been a lot of support for anti-taliban operations. this adds to that, but this --

will this be a major blow to the taliban? they are already holding meetings to announce a successor. we may be hearing who will follow him. we expect to see a dip in the tax on soft targets, both government and military targets, over the next few weeks. after that, it will be back to business as normal. although he was taken out, and it is a big thing, but it does not mean that the fight is over. bill: in a moment, going green is supposed to benefit all of us, right? maybe night -- not. megyn: and is aarp trying to set a health care agenda that its members do not want? take a look at this response

from one representative when senior citizens raised questions about reform. >> we will have time for question and answer. megyn: they were just trying to get some questions and answers. this was just a portion. the representative eventually canceled the listening opportunity, and walks out of the room. the aarp response. bill: he can climb trees. after new discoveries, why this dinosaur was so special.

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bill: we came across this frightening fear tape that shows a shootout in jersey city. two suspects seen outside of this car, and then there are seen firing at officers in a cruiser. police went to the scene to investigate a stolen car. one officer killed, five injured. now the police chief defending the actions of his officers. he was at a press conference thursday afternoon. >> excuse me, i would appreciate it if you could keep your comments quite as are members respond. -- quiet as our members respond.

i'm done. >> ladies and john and, thank you. -- and gentlemen, thank you. >> this health-care plan is a boondoggle, and a threat against all of us. megyn: that is footage from and aarp listening meeting. the listening did not work so well. by the end of the meeting, many in the rooms had that they were canceling their membership and demanding their dues back. so does aarp have obtained and that in its debate? is this any way to keep -- have an agenda in its debate? is this any way to treat your

members? the one that was supposed to be run in the listening for left after being frustrated with the audience. is this any way to treat your members? >> when we look at this video, we need to realize we have been having dozens and dozens of these across the country, and all of them have gone over smoothly. the meeting actually went on for 30 minutes before it closed down. unfortunately, you had a few people who wanted to be disruptive to the point where they did not want to have a dialogue. aarp is having these meetings, and will continue to, because we want to have this kind of dialogue. two days after this event, they had another event with the same moderator and a lot of the same

people, including the people who did not agree with a party. there was dissent in the room, but there was an engagement and discussion. -- did not agree with the aarp. megyn: really? we hear that it was because she was rude and took issue with these people. take a look at the following clip. >> you are not running the meeting, so we are going to continue. >> do you work for us, or do we work for you? megyn: there is more. >> i think we can all agree that our current health care system is unsustainable. i would appreciate if everyone could keep their comments quiet.

we will have a question and answer session. this might be fun for you, but that is not what we are doing today. megyn: she sounds snarky. >> i think she is frustrated after this meeting. she tried to keep the meeting going for 30 minutes. we actually received apologies with a lot of the people who did not disagree but wanted to hear the give and take. they said things got out of control, we are sorry, we wanted to have this dialogue. now i am happy to report that they did. megyn: but some people are still very unhappy, including those people who have resolved to cancel their membership. the reason they are upset is because she said thethe

current system is unsustainable. not everyone agrees with that. >> that is not entirely true. megyn: and she would not listen. are they refusing her apology? >> aarp will listen to any dissent. that was not a very orderly discussion. it was a bunch of yelling. megyn: no, it was not. she took the microphone. she laughed. >> perhaps after a half hour. the meeting did occur -- megyn: you already said that three times. my point is, are you going to apologize? >> i am not going to apologize for that. megyn: ok, than the aarp members watching this can make up their own mind. >> and hopefully they can come

to our town hall meeting to do so. megyn: now they know what to expect. bill: so much for a slow summer. >> i have a question for this young man! >> they are calling this had manufactured outrage. megyn: what do you think? do you think aarp owes them an apology? foxnews.com. a push to create more solar energy in california. >> california's lead into solar power melts as new age energy me to old-style union tactics.

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bill: welcome back. in california is all about being green. we talk about their push for green energy, and the state has been fast tracking many of these projects, but we are finding out a few may be stalling. william la jeunesse is in california. >> you have heard of blackmail? greenmail works similarly, and it is happening at places like this. you want to build a solar plant? you want a low bid. then you get a phone call from a

group called concerned unions of reliable energy. they say unless you used union labor, we will bear year in paperwork. we will use environmental laws to tie you up in the process. most companies see the leverage that the unions have, and they signed a deal that stipulates the use union labor, and if not, the proposed non-union members have to join, pay the initiation fee, and you have to pay into the union health and pension fund regardless of who you use. that is what is kind of these projects. bill: i assume where you are today is an example of that? >> yes, we are 100 miles north of los angeles. this is a perfect site for solar

power. the state got some proposals but at the last minute they've received questions about how they would clean chemicals, how they would mitigate the dust from movement. another facility nearby said on the last day of preparing, they were hit with a 140-page report asking about the engines, the types of fuel they would be using, using all of these dubious claims to tie up the process. it has worked in many cases and it is adding months and millions of dollars to these projects. they have taken this up to the legislator, and four times it has died, the court sided with the unions. bill, thank you.

-- bill: thank you. megyn: it's a bird, it's a plane, what is it? bill: and the training of our troops is changing. we are reporting from west point. "forms" magazine says that west point is the best school in america. megyn: they are mad and not going away. how top lawmakers are handling the outrage. >> kill the bill!

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dizziness, and headache. in patients with depression, worsening of depression, including risk of suicide may occur. if you experience any of these behaviors or reactions contact your doctor immediately. wake up ready for your day-ask your healthcare provider for 2-layer ambien cr. bill: this is a fox news alert. we are up 65 points at the dow jones. the jobs numbers were better than we thought today. jobless numbers did not increase as expected. and actually decreased to 9.4%. investors are looking that news. are we at the bottom of the recession? we may find out. >> i have a question for this

young man. >> i have a question! megyn: more outbursts from people who are worried about the democrats' health care plan. that one was in michigan. here is the congressman the reaction to the meeting later. >> the meeting has been heavily infiltrated by folks who wish to make trouble, as you saw. they were very diligent and effective in the matter. megyn: are they just troublemakers or are they raising a point? with me now is a republican consultant. she addresses that on our website. he had a terrible policy and was making a point saying that he did not believe this plan was going to help his son.

nancy pelosi said that these people were manufactured. on and on it goes. harry reid calling them shrill. many people believe that this is not the way to have the discretion. you think barack obama need to come to their defense? >> he is an outrage manufacturer himself. there was a piece published in 2007 talking about his history of being a community organizer. one of his fellow organizers said the method that he used -- megyn: one of the original community organizers. >> exactly. he said that they needed to make them feel rotten about their life, from the source of discontent. he goes on to say that barack obama was one of the best at

doing this. how can the white house say that this is wrong, when they actually have the same sort of thing in the president? he spent most of his career doing this, organizing to do this type of thing. megyn: he did a similar thing in the campaign to encourage similar tactics. >> he encouraged us to have a discussion. all of a sudden now that it is opposing their leftist dog month, they are proposing it. this is part of a bigger agenda. homeland to care recalling people on the right radical extremists. megyn: barbara boxer said that she was impressed to see them so well dressed. >> somehow, liberals do not recognize what real outrage is. megyn: do they have any point? getting to these town hall

meetings, which is supposed to provide a forum for discussion, all of this shouting is not productive. that means that people are using are not productive. >> people are furious, and they should be. for congress to say that this is manufactured, the numbers back it up. look at 2003, 2004. code pink, moveon.org, voicing their upgrade about iraq. republican members still had those meetings because that is their job. megyn: nancy pelosi was objecting because she said that she saw swastikas at these events. when president bush was president, you literally had people coming out with pictures of george bush looking like a

nzi. nazi. what is fair for the goose should be fair for the gander. >> they love grass roots when those roots are planted in liberal ground. when it is seated in opposition, they love to fight it. but this is not just conservatives. 60% of independents completely opposed barack obama is healthcare plan. megyn: do you think this will alienate more of them? >> i think they are discounting this outrage. they're independent, conservative democrats, american people. how can congress look at the last six months and say that they have done anything correct? there congressional approval

rating, 60% of americans disapproved. megyn: doesn't even matter if they are organized? if they come from tea bag organizations, and does it matter? >> i know congress has not read their bills lightly, but maybe they should be the constitution. it is called freedom of assembly. there is nothing wrong with getting together and boys in your opinion, in a civil way. megyn: thank you. bill: find a way, claire mccaskill is our guest. she says that calling them manufactured is a mistake. in the meantime, "forbes magazine" calls it the best college in the nation, but what they learned that college is carried over to the combat line. the cadets are receiving specialized training for a whole

new kind of war. what are the senior cadets learning in this training? >> good morning. they are learning how to do with even more complex ethical and political some areas in the field, talking about cultural traditions and values. this is a new cadet leader- training program. it is part of the reason why west point was rated the no. 1 college in america. the general here is being credited as helping it to achieve in number one status. new trading procedures include some areas such as storm and a village occupied by civilians, insurgents, and insurgents posing as civilians, which leaves holders with a complex mix.

>> every leader needs to go into a village or an area of population and be prepared to deal with anything from a hand grenade to a handshake. >> we call these more ethical dilemmas. initially, i thought that we could go in, guns blazing. >> this training is so incredibly important. as many people will tell you, it is critical for them to get this new training. they will be the men and women on the front lines in the years to come and they need to learn these skills of working under stress, making decisions. they want them to make any mistakes now, if they are going to be made, before they go off to combat. bill, quite an honor to be number one.

-- bill: quite an honor to be number one. >> indeed. behind me you can see the cadet parachute team falling down from the sky. just one of the great programs happening here. bill: a beautiful day to be on the campus. megyn: a kelly's court update for you. we told you about charles perez and how he was demoted for being too gy. new information that broke late yesterday. bill: why this ancient dinosaur is so special. we have the man who knows. we have the man who knows. shh sh sh

>> are you all right? bill: i think that was the part of the film i wish to it would end quickly. megyn: was that 3? bill: scientists say they have

evidence of a new type of bird- like creature that could do everything. it is called the terasaur. we have the regional paleontologist. good morning to you, scott. what is so important about this new discovery? >> we have known about them for quite some time, but this new one has a special hair on it. they also have claws to climb trees, and what is particularly fascinating is the triple membrane of its wing. it could change the shape of its

wings microscopically during flight. bill: how would that help the animal fly? what does that mean in a practical sense? >> imagine being able to adjust to perhaps a wind gust, change in pressure. that would allow this to fly very well. it also tells us that these animals were much more diverse than we thought. recent discoveries of eggs, skulls that they have done a cat scans on. they are probably much more nimble than an f-16 or something. bill: you said something interesting. and they could climb trees? >> yes, it appears so. it is also a misnomer to think of them as dinosaurs or birds.

they were really flying reptiles. some have been found in south america that seem to be similar. bill: why does this matter? >> it tells us while we have birds around today, there were animals back then that were doing all sorts of different things. bill: just looking at the size of him, you would have to eat lunch of insects. >> they were incredibly diverse in size.

bill: anything that comes close on our planet today? any distant relatives? >> i would say the closest living relative is the crocodile. there were some fantastic images, but it is a unique animal that is extent today. only now are we able to construct it in three dimensions. bill: you are giving movie producers some great ideas. have a great weekend. megyn: feast your eyes on this bad boy. can you see it? look at the size of it. it is a big fish, but wait until you hear how big its price tag is. bill, and some are calling

these town hall meetings, town hell meetings. some turning into screaming contest. some are calling them manufactured. they live report, as well as some fascinating media.

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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. megyn: less than 24 hours after we did the segment, a kelly scored update. -- kelly'scour court update. charles press filed a lawsuit

saying that he was demoted for being too gay. there was a domestic dispute that was getting a bit of attention that put his sexual orientation into the news. then his boss told them that he smiled too much and he and his female anchors acted too much like girlfriends. he filed a complaint and as of yesterday he is out of a job. originally he was just demoted, but now he has been fired. he says it is in retaliation of his complaint. station officials said that they did not have a choice making cutbacks. his boss is gay, too. bill: do you think he was watching "america's newsroom?" megyn: all we did was report on it. [laughter]

bill: a record set in marlon weighing over 1,000 pounds. take a look at him. it breaks a 20-year-old state record. the man who, it was 63 years old. it took him three hours to get it on the boat. it is estimated to be worth about $550,000. megyn: really? why would you pay $550,000 for that? bill: you can filet that and sell the meat. megyn: the cdc issuing new

guidelines on how to handle the swine flu. they have tracked 353 deaths from this one flu so far. there are concerns it could make a strong comeback this fall. marianne silber heis in atlanta, at a press conference. what are they telling us? >> we heard from the cdc director, and janet napolitano, and they said the same thing. the decision to close schools due to a possible public should be made at a local level. she said when you're talking about closing schools, there is a ripple effect. parents need to make arrangements for their kids to stay at home. keep your kids at home. they're telling the school to make arrangements. if children are displaying symptoms, had a quarantine room

ready. take steps and be ready. the education secretary is also handing out pamphlets to all of the schools so that they know what to do. any to make sure that both schools and parents are flexible and that they have a plan, in case there is an outbreak. megyn: thank you. we will be tracking the h1n1 virus. if you are looking for the latest reports, or for example, do you remember the symptoms? foxnews.com and search for h1n1, and that will bring up the latest information. bill: i know what my meeting this weekend. marlin. the big story this hour is the jobs number. we are still shedding jobs. just not as many.

when we come back, we will find out what the white house thinks when christina romer joins us. megyn: and doesn't this picture say it all? the controversy at the fitness club that landed one man in trouble.

bill: this is a fox news alert. unemployment rate dipping to 9.4%, that was better than expected. job losses slowing down to 247,000. analysts expected it to be much higher, closer to 300,000. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- those numbers are perhaps a sign that we are hitting the bottom. new reaction from the chair of the white house of economic advisers, christina romer. she is coming up in a few minutes.

in the meantime, this -- >> kill the bill! bill: this is a fox news alert. growing up position now to president obama's pushed to universal health care. this time, congressman john dingell, mich. ambushed by angry constituents demanding answers on the insurance overhaul. he is not the only one. welcome back, everyone. megyn: things went from not down to mosh pit as one -- at one town hall in tampa. >> hear our voice! megyn: 1 congresswoman was inside the meeting and some citizen were held out son of the room. bill: the crown pushing and

shoving to get in the doors, so the white house seem to be shrugging off the public outcry. mike emanuel is at the white house. what concerns do they have at these meetings, what are they telling democratic lawmakers? >> several white house aides had meetings with senators as they prepared to go to recess. part of the message is, if you are hit, we will hit back twice as hard. we will be watching you on these. they are also telling them to make sure you are on your toes and make sure you are prepared like never before because questioning may be tough. they have shown that some of this video and said that this is what you should be ready for. for those who have insurance, you need to sell them on what this will mean for them. bill: what challenges today face as they go to recess?

surely they will be meeting with constituents. things appear to be changing. tell us about that. >> you are right. they have seen these videos. they know that they are dealing with some hostile folks at town hall meetings. the other thing is if you are asked tough questions about what is in the plan, that is not complete, so can you look in the constituent and say that this will definitely not be in the plan? they definitely know that they have to sell it, but also concerned about the reaction they will get, and what it may look like on the news if they've received a harsh reaction. bill, claire mccaskill will be our guest to talk about this. megyn: president obama just

signed the extension for the cash for clunkers program, and $2 billion shot in on. -- in the arm. it provides tax rebates to anyone trading in a gas guzzlers for a fuel-efficient vehicle. it is designed to be environmentally friendly. the original $1 billion ran out in four days. bill: we have a victory in the war on terror. pakistani taliban chief baltullah mehsud was killed in a military strike in pakistan. his wife also among the dead. he was suspected of planning numerous attacks, including the assassination of benazir bhutto. his death will have a major impact on the afghan side of the border, especially in the

helmand province. that is where we have greg palkot embedded with u.s. forces. what is the reaction? >> the leader might be dead, but i tell you, taliban here in afghanistan is unfortunately very much alive. behind me is a marine company. behind them is the mountains that they have to face full of taliban fighters. to get here we have to drive through taliban country. we were part of a convoy providing very important supplies for some of these men and women. it is 45 miles from campus to

hear, and believe it or not, we took 20 hours to get here because we have to avoid roadside bombs, and to do that, you have to go well off the road. it is very rough on the trucks, as well as the men and women. the stream bed is where the taliban really like to lay these bonds, so now the marines are fanning held across the area with mine detectors along with tractors to dig a new road for the convoys to travel through. i am happy to report that there were no explosions or casualties today. unfortunately, though, other

casualties to report elsewhere. four soldiers killed in the southern province by these treacherous ied's, as well as three british soldiers. bill: stay safe. thank you. megyn: this is a fox news alert. we had a big news on unemployment. numbers are better than expected. now we hear this from the white house. unemployment at 9.6%. it was expected to be higher. -- unemployment at 9.4%. it was expected to be higher. the white house says that this is a sign that we have pulled away from the brink of recession, but they cautioned it will be some time before we see sustained job growth. still, it is good news. we are joined by the chair of the council of white house

economic advisers, christina romer. thank you for being here. i'm sure you take this as good news. >> the way i have been describing it is the least bad day we have had in a while. we are still losing jobs, unemployment is still 9.4%, but as you put it, better than expected. certainly, i like the trajectory we are on. i am just waiting for the day that we start adding jobs. megyn: the president saying it will be some time before we see "sustained job growth." what is our best prediction on what time frame it will be before we can see that? >> most believe we can see positive gdp growth by the end of this year.

usually employment takes awhile after, being a lagging indicator. we are in for a number of months for continued job loss before we see what we all want to see, which is sustained, robust job growth. megyn: will these numbers put an end to talk of perhaps a second stimulus? >> what it should really put an end to this the stimulus, the action that we have taken, is not working. we have seen that the actions that we have taken -- as you said, we are coming back from a very severe decline. we are optimistic it is working and doing what it means to do, but we will still be watching the economy. we feel we have the right plan in place. most of the stimulus package is

still in the pipeline ready to go out the door. megyn: there is still a lot of money left over, which brings me back to my first question. given that you still have 9% of stimulus to spend, and you have already seen progress, will this shutdown discussion about a second stimulus? >> we think it is doing great so far. like a good doctor, we monitor our patients. the president has always said we need to turn the economy around and create jobs. megyn: so you are not ruling it out? >> we are just going to focus on what is happening now. megyn: just to clarify, i need to ask you again. you are not ruling in found? >> we are not discussing it now.

we believe we are doing the right thing. that is where we are. megyn: there is a question about doing that. people are worried about the deficit spending we have been engaged in, partially in the bush administration, but also in the obama administration. many people do not believe we can handle another stimulus package. they do not want to see another $1 trillion go out the door for stimulus. your response to us who are worried about this deficit? >> first, i cannot emphasize enough we inherited a terrible deficit. the action that we have taken have been money well spent. like you and your viewers, we are all worried about the deficit. that is why the president is focusing on health care reform. if you read the studies by the

cbo, the number one thing contributing to the deficit is rising health-care costs. reform is crucial. megyn: but that could also potentially add to the deficit with questions on how to fund it. you mentioned you inherited a bad deficit, which is true, but you also added $1 trillion. with all these government programs, record deficits, how are we going to get the cost under control? is it going to be more taxes? does the president plan on cutting back on entitlement spending? >> what the president has said it is anything we do to expand coverage, to put in place reforms, we are of absolutely going to pay for. that is why he has focused so hard on the game changers, as we call them. it is important that they are in the health care reform packages

that come through congress because that is what is going to lower the growth rate of spending over time. that is crucial for getting the deficit under control. megyn: and let me ask specifically, any chance of a middle-class tax hike? >> but we have said from the beginning is no one is talking about a tax hike on middle-class people. we know they have gotten the short end of the stick for the last 10 years, and that is why we gave them a tax cut in the recovery act. megyn: so no one is talking about it. thank you for coming on the show, christina romer. all the best. bill: think you are tired after a 15-hour flight? what about the man stayed awake in the cockpit? perhaps the biggest threat to airline safety.

now the faa has what some consider a bizarre solution. megyn (pouring rain)

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bill: there are new questions being raised about safety in the skies. the tea and long schedules are forcing our pilots to get some sleep in what are called crash pads. some are giving it is compromising their health. how do these crash pads work? >> there is no way to quantify the number of them in the country, but what we know from pilots and flight attendant is that it is pretty common. weaver able to locate one. this is near dulles international airport.

that is one of the main international hubs. the crash pad is sterling, va., a short jump away. pilots told us that they like to use these areas because they can share the ride, it is pretty economical for them, and they do nocan bring in a family. critics have called them flophouses and there is no way that they can get adequate rest at these places. bill: without it, what kind of condition would they be facing? the pilots say it is all coming down to money. >> one of the pilots at capitol hill today, he said when you look at the data, it is clear is

about money. the first co-pilot on these flights typically starts at $20,000. the top wage looking down the line is $30,000. if you are earning that much with a family, sometimes these families are on food stamps, and there is no way to bring them closer to these major hubs, which would negate the purpose of the crash pads. megyn: coming up, we will be joined by democratic senator who has a warning for her fellow democrats in the way they are holding these town hall meetings. bill: and hello cow. how many times have we played this song? several dozen times. megyn: now, you will know their names. bill: we will make them famous, actually. [laughter]

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megyn: president obama karlan to virginia, attending a rally for state senator cree deeds, but with approval ratings dipping, how well his presence affect all of the upcoming midterm elections? wendell goler is at the white house. is he going to be helpful or not? [laughter] >> of course, that remains to be

seen. but with his approval ratings near 40%, republicans are trying to make a statement here. they have given bob macdonald a lot of money and a platform. last night the president campaigned for cree deeds for the first time, attending some health care forums. deeds is behind mcdonald by about 15 points. megyn: where else is the traveling? >> republicans would say new jersey. the republican is winning over john corzine, and perhaps no president could help john corzine. of course, he campaigned for him last month, and that is also

when dozens of political officials were arrested. the republican candidate lead doubled in that time. porcine supporters are now seen as less likely to make it to the polls -- corzine supporters are now seen as less likely to make it to the polls. bill: we have a lot of fun in the summertime, but nothing like this. we think he is from germany. we also think he is crazy. and we think it is real. in full disclosure, we cannot figure it out. megyn: how could he have faked it? you see him on camera all the time.

bill: there is one part of it where he goes below the grass level. bill: maybe he is already standing in the water. hang on. no go back! either way, it was awesome. megyn: people at these town hall meetings are fired up, but some democrats like nancy pelosi calling in manufactured. my one top democrat is telling her colleagues to wise up and listen to them. bill: and richard simmons sweating to the oldies in some

short shorts. if it is ok for him, why is this other guy getting booted from his gym? megyn: wait until you see this other guy.

megyn: this is a fox news alert. good news from the markets, up 90 points one hour from the start of trading. european market to rebound as well. u.s. markets performing well on news that the jobs scenario is better than expected. but we will take it as good news. just a bit of sunshine for you. bill: when you think we were at 6500 a few months ago, it is fantastic. back to these town hall meetings. today is the last day for the senate before it goes into recess. we have been seeing some video tape from house members in state after state. my next guest, claire mccaskill, is about to go on a

tour of her own. how are you? good morning. do you think it was a smart idea for your democratic colleagues to call these people -- actually infer that they were nazis? >> no, just as bad for people to show up and cause a disruption. both sides at -- have passion. we need to show everyone respects. bill: i think this might be in your home state of missouri. this is what you are going home to. my more pointed question is this, have democrats misread the protesters? >> i do not want to characterize

any of my colleague's statements. i just know from my perspective , i know people are upset, there is a lot of misinformation out there. i plan to go home and perhaps clear up some of this information. i believe everyone wants to perform in the insurance industry. there is a lot we agree on. this is a great opportunity to find middle ground. bill, the white house once called these manufactured events. you tweeted earlier this week -- was the white house wrong to use that word? >> i do not think "manufactured" is the right word. i think both sides are

organizing. people who strongly believe in health care reform are organizing. those on the left that want to push more to government involvement are organizing, and those on the far right who think we should not have government anywhere near health care. what has happened here is, once again, the two edges are screaming at each other and we need to focus on the metal. the one's screaming the loudest for the people against it and they were not letting others talk. that is just poor manners and is not persuasive. i hope everyone takes a deep breath, stopped yelling, both sides, talk and discuss these proposals, and your questions, and be polite with one another. bill: i agree with you. i think that they will have to meet somewhere. i hope you are right that they do not resort to violence.

>> or yelling. bill: i think yelling is ok. >> you think it is ok to interrupt people? >> i do not think -- bill: i do not think it is wrong, but you should not be rude. one congressman had over 200 people show up at one meeting in indiana. hundreds of people are showing up, which proves the passion for this. what did the white house and buys you of yesterday on how to handle this? >> i did not get any advice. bill: were you not at the meeting? >> it was not advice, just discussing what is out there, the various proposals. people need to understand there is no bill to be for or against

right now. there are five different proposals on the table and we are trying to find the best way forward on insurance market reform, doing something about cost for the american people. we need to provide some accessibility and predictability about the price of health care. i have to tell you -- bill: you were not at the meeting with david axelrod then? what did he say? >> yes, i was there, but we did not get marching orders. he talked about the vast amount of disagreement out there. most people are sick of the pre- existing condition -- bill: he did not talk about what you may encounter back at home? nothing? then he talked about the message and what we're trying to do, -- >> he talked about the message and what we were trying to do.

bill: what are you going to try to do in missouri? >> we had one of the largest turnout in the country for president obama last year. i had some huge turnouts for town hall meetings. i expect this to be the same. i hope so. bill, how many will you hold? -- bill: how many will you hold? >> between 10 and 15. bill: we will talk to you when you come back. thank you. megyn: karl rove was our guest yesterday, and now he is on telephone. you wanted to clear something up so badly, you called us. >> i misspoke yesterday by saying rep steve israel would not be doing any town hall

meetings in august. i misspoke, it is his neighboring long island democratic official. my error was brought to my attention by his office and i want to set the record straight. megyn: so he is on for town hall meetings. >> that is right. it was his neighbor who was not have been these meetings. megyn: i am glad to hear that his staffers are watching and listening to you. thank you for clarifying. bill: i think this is our favorite song around here. finally today, you will meet the husband and wife team behind "hello cow." megyn: i will not miss this.

besides taking fashion faux pas to a new level -- you have to see this. do you see anything wrong with this picture? how this outfit landed this man in kelly's court. some lunch.

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>> i do not where the regulation uniform. i wear these shorts. i had to argue the sheriff's office to wear these. megyn: [laughter] they apparently work for him, but not so much on the stairmaster. on the docket today, the family jewels at the family gym.

a computer science professor by day, pilates and yoga teacher by night. he is paris to care. he was already warned twice about the length of his shorts. city officials say that they are too revealing. now he is fighting back, claiming it is discrimination. does he have a point? let's ask the panel. he loves his gym helped it, and is not planning to change. giada, should he be allowed to wear these charts? >> absolutely. there are two things happening here. there is definitely a double standard. if a woman walks into yoga class

in a bikini top candidate on, no one is going to kick her out. if a man comes in wearing these shorts, and some attractive stocks, it does not fly. megyn: here he is in a different outfit. apparently, women are claiming that one pair is too tight, and the other are too loose, if you know what i'm saying. >> let us face it, he needs a bit of support. i do not want to see that at the gym. it is not a double standard. women coming to the gym in thongs? of course there are going to get in trouble. megyn: this picture is obscene. we were considering blurring

this out. should he be allowed to prance around a public again in this? >> gym-goers are not exactly bastions of hygiene. in society we have a problem with people who are not attractive. we have laws that protect against sex discrimination, discrimination, but nothing against ugly people. if george clooney is close to me in my yoga class, i am not going to complain. megyn: i see. it is not that he is showing too much, it is that we do not want to see him. >> frankly, i do not want to

see anyone next to me. megyn: if you saw some of the office that the women wear at the gym, not only short shorts, -- hear is the picture, actually. those look pretty fine. there are very revealing of pets, as you know. >> if nobody complained, then that is fine. i do not think women should be rolled over a dress code either. megyn: who am i kidding, i have not been to the gym in months. >> there have been many complaints with this guy. come on.

megyn: these are like a marathon runner shorts. they do not wear much more than this. >> that is because they perform a function. he bought them at wal-mart. he did not adjust them to be extra short. perhaps they are working for him in the gym. megyn: i misspoke. they were not $7, $5. he says he would rather rescind his membership than buy new clothes. he says this is how they dress in bangladesh. >> i am not against getting a deal, there is nothing wrong with that, but get some more support. cultural defense? i do not think so. megyn: the policy is pretty

clear at this public jim. it says all patrons must wear clothing suitable for the activity. he is doing yoga, is an instructor. shouldn't he know what is suitable for the activity? every time i go into yoga class, everyone is in tight spandex. >> perhaps it is more comfortable for him. here is the last thing. if this is not intentional, he should not be punished. if something is revealed occasionally, a different story. megyn: when i used to teach aerobics, there was one man who would always take the class in his underwear, and it was my job to tell him that he needed one more layer.

[laughter] >> and he is a teacher. megyn: thank you. one final word, he cannot point to women's short shorts as defense, the same as a woman could not point to men going topless. those shorts are wrong. they are a fashion emergency. the jim is doing you a favor. -- gym is doing you a favor. bill: breaking news in the political world. mel martinez will resign his position earlier than anticipated. in fact, you will not come back to the said after the august break. that will enable the republican governor of florida charlie crist to name a replacement.

we have confirmed this news in florida moments ago. in the meantime, the creators of "hello cow." .

a child who needs you is waiting. please call. bill: all right. because you asked. the "cow song." you have heard it many times.

it is one of our favorites. many people have some it. who wrote the song? joal and jackie beach out of london, england. through our extensive research, we found you were hiking with your brother alexander cozens tim along a country road, and what happened? >> a calloused its head over -- a cow stuck its head over a wall. when we got back, we were asked

to write a song. [laughter] bill: is this really happening? jackie, you have made hundreds of songs, and i do not want to offend you in any way, but we use this a lot. >> we love cows, and would love goats. bill: do you have a problem with us using your creation? >> no, no. go for it. anything you like. absolutely. bill: you have a website, rathergood.com.

you see like a lovely couple, and we're so happy we track you down. you play instruments, right? >> yes. i brought my ukulele for you. bill: all right. we will allow the two of you to play us to break on this friday. ♪ >> cows like to talk but they don't talk like you. cows like to say moo moo moo moo moo cow, hello, cow, how are you?

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