old school "fox & friends." gloo see you back. [captioning made possible by fox news channel] bill: trying to win over a skeptical public. the debate over healthcare reform goes west. president obama hitting the road to try to sell his plan to a tougher audience only days after a mild reception at a town hall in new hampshire. the national conversation started there at the white house. it has continued to every district at any city and every state in the country chug yours. good morning on a friday. purple friday. megyn: happy times. folks are already lining up for the first-come, first-served event with the president. mr. obama expected to address with the white house untruths about health care reform including claims of death panels an government run healthcare. bill: the event is important

because it takes place in the home state of democratic senator max baucus. he is the chairman of the senate finance committee and right now they are negotiating this bill during the recess -- he will be a key player in getting healthcare reform passed. no small irony that his home state is targeted today. what does the white house expect or what can we expect from the crowd in montana? >> we are hearing that outside this airport hangar there will be demonstrations. a local tea party group predicts hundreds rallying against this legislation but there are at least one group supporting healthcare reform that will be there. in new hampshire outside there was a little bit of a rally but inside a more sympathetic crowd than we have seen at the confrontational town halls. the white house said nobody was preselected, that not all town

halls are screaming matches. tuesday in new hampshire this was done by an onstar hotline lottery. today it is a line-up of first-come, first-served so we expect the dynamic could be different. as you mentioned senator max baucus will be attending. his home state. he is the key figure. he is part of the gang of six a bipartisan group, three republicans, lee democrats trying to negotiate in the senate a compromise deal. so a key figure. bill: polling shows a drop in the support of the healthcare reform bill. how is the white house reacting to that? >> we had a relevant poll out yesterday from fox news for you. 34% of the public favoring the health reform plan under consideration but 49% opposed. that is a 15-point spread. a few weeks ago it was just 11 points so you see the numbers softening. here is what the white house had to say. >> poll something a snapshot in

time. the debate continues and we will see whether numbers move or change as a result of the continuing debate. >> and gibbs saying that there are so many misconceptions about the plan and that is what is contributing to the drop in poll numbers. bill: we will watch from here. megyn: a heated exchange yesterday fox's major garrett asking press secretary gibbs about e-mails sent out by the administration as part of its healthcare push. major said he has received reports of people getting e-mails even though they have never signed up for any white house e-mail list. those e-mails are from organizing america the president's political group. take a listen to the exchange. >> whether obama for america or organizing for america has nothing to do with, never has had anything to do with what if

you sign up for through white house.gov to receive e-mails so let's just -- the reason i interrupted you is because i want you to rephrase the question so doesn't continue to assume something is violating the law and mixing political -- >> some people who never signed up for anything related to the white house, nor obama as a candidate or anything. and have received e-mails from david axelrod. how could that be? >> i would have to look at who you said got the e-mails. host: major garrett joins us later in the show with the latest in what has now become an ongoing back and forth with the white house on this. bill: as away search for enss we get e-mails from viewers and we have gotten several who said i sent an e-mail to flag the white house.gov. we want to answer your questions how the white house posed it. they would send up to 10 e-mails and not get an answer but in return they would get the e-mail

from david axelrod which has raised some of the suspicion as to why the white house would take in this information and send out their own e-mail perhaps pushing the healthcare reform package. megyn: we are keeping a list of all of your e-mails and we intend to e-mail you when our new year's eve comes up to be with us. just kidding. bill: no, we are not. americans have some ideas for the white house when this comes to the economy. latest opinion dynamic polling shows a growing number, 44%, think the worst is over when it comes to the economy. but since things are getting better there is a big chunk of stimulus money not yet spent. a whopping 72% think returning the unused portion of the $787 billion stimulus would be better for the economy tan having the government spend it. megy that crossed party lines. democrats, republicans and independents. shocker, huh? not so much. megyn: an anxious night and

morning in california for thousands of people as an out of control wildfire threatens 1,000 homes in santa cruz county. look at the pictures. there is something eerie about seeing that. that is live. firefighters using helicopters, planes, ground crews. but the fire has burned about 3,000 acres so far and is si citigroup growing. it is burning in an area known for redwoods and wineries. the firefighters ordering all 2,000 people to leave their homes. we have a report from davenport. what is happening? >> we are in stanton canyon where 400 residents were evacuated when the fire broke out wednesday night. this is the western edge of the fire. just on that ridge behind me perhaps you can see under the smoke flames are burning in rucked terrain fueled by trees and burush.

last night gusts pushed the flames toward bonnie dune where 2,000 have been evacuated. no reports of any damage to structures or any injuries so far. we are expecting to get updated numbers in a couple of hours. at last report 2,800 acres, about 3 1/2 times the size of value pa central park. megyn: do they have any idea what started it? >> the cause is still under investigation. megyn: there are always questions of arson or a lightning strike. when that breaks we will have it. bill: about 6:00 in the morning out there. megyn: it eerie. and oddly beautiful, you know? it is a pretty picture in a weird way even though it is devastating, which is one of the ironies of the situation as you

watch the fires burn and these poor people having to leave their houses not knowing whether they will still be stand being when they come back. bill: that smoke is traveling off. that means this are winds out there. that is the worst thing you can get in a situation like that. megyn: and a lot of times they set intentional fires to shut down a fire line. sound like they have a lot of resources on the ground. if you live in the santa cruz area and you have pictures you can send them to us at u report at-bat at-bat foxnews.co at foxnews.com. bill: the cap and trade bill is designed to control green house emissions many argue it will cost american jobs. in a recession does that mean it is dead on arrival? megyn: and killer asteroids may

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bill: a misery on the high seas. where is the russian cargo ship. search is under way for the arctic sea which was scheduled to arrive in algeria on august 4 4, 10 days ago. he last left the english channel. one theory is it was seized by pirates. if that of the case that would be a rare move in this area. heavy rain causing landslides in eastern china. according to state media out of beijing one landslide devoured a

le three-story home. nine bodies have been pulled from the rubble. megyn: as the president's healthcare plan loses support so does another key initiative. his cap and trade bill. the house passed a bill designed to cap green house gas emissions. this is something they call a cap and trade and the opponent call a cap and tax. support for the bill in the senate where it has yet to be passed is coming into certifies question. listen to one voter at a town hall hosted by republican support chuck grassley two days ago. >> we as a country can't afford it. we had congress and thank goodness it didn't get to the senate on cap and trade. if the green movement or whatever they are, if this is so important why can't we just pass tougher regulations like they did in the 1970's? nobody has to get rich off my back, nobody in washington needs

to keep taking our money. megyn: now we learn that some senate democrats are also questioning this legislation. as a key trade group predicts it will cost millions of american jobs. jay timmons is the executive vice president of the national association of manufacturers. that is a group that has come one that prediction. good morning, jay. >> good morning. megyn: for people's edification, when we say manufacturers what groups are talking about and what kind of job losses are you predicting? >> we are talking about job losses in all parts of the economy by about 200 nearly 2.5 million jobs fewer than would be the case if this was not enact the. about two -- thirds are manufacturing. megyn: what type of manufacturing? >> all manufacturing. all cross the board. if you think about every manufacturing sector from autos, high tech manufacturing. all types of manufacturing in this country which is really the

life blood of the american economy. megyn: tell us how it is in your view and according to your study if cap and trade passes in the senate, which as i point out is looking more doubtful, it will cost jobs? >> the bottom line is this bill basically sits on the american economy and creates an onerous set of regulations that will be very difficult for many businesses to comply. so, if you are driving up the cost of doing business in the united states you are by extension driving them out of this country. add to that and this doesn't take into account additional taxes, regulatory policy that are being discussed right now in washington. so, this is really just focused on the wax mman-marwaxman-marke trade bill. megyn: this is a couple of million jobs but it is not immediate. you say the mechanics 20

careers. >> it is in the year 2030 you are looking at about 2.5 million fewer jobs. megyn: but let me ask you this because people may say you know what, it is worth it. we have to clean up the environment. it is a mess. we have global warming which is what a lot of people cite in support of the cap and trade bill. and two million jobs the next 20 years we can live with. your response. >> i come from ohio and it is a town has a lot of manufacturing presence and the reason the town was able to rise in the earlier part of the last decade or middle part of the last century, pardon me, was because of that manufacturing presence. i don't think anybody could go become to that town and say by the way your job may not be around in the your 2030 or your kids' jobs may not be here then particularly when we are in a recession the deepest of which we have had since the great depression. i don't think any lawmaker wants to say i'm going to vote for a

bill that will cause job loss. we all agree that clean air is a good goal. but there are other ways to get there whether tax since to create new technologies, erasing the regulatory burden on creating nuclear facilities. megyn: a lot of people, even people who are opposed to cap and trade say you got to have something passed in the senate. you cannot just defeat this bill because if you defeat this bill it will be left up to the e.p.a. environmental protection agency, which has said we have jurisdiction over this. so if nothing gets done we can do it and you will have a worse result some predict. >> if it passed they still could do that but there is a question as to how much regulatory authority the e.p.a. has. could had he impose something as stringent as the waxman-marky bill. aed if we are going to pass something the senate ought to have incentives to create new

technology without punishing american businesses. we are disarm. this doesn't do anything to regulate the emissions in china, india or other countries so why uni unilaterally disarm our own economy without doing other things. host: we could cut way back and china and india could step up and we could have the same amount of global warming only putting american manufacturers at disadvantage. it is going -- >> more jobs there and less here. host: they are considering some sort of modified proposal on capitol that would maybe not focus on cap and trade so much as focusing on pushing people to find more renewable energy sources like wind and solar. we will see if they come up with a compromise. thanks for being here. >> thank you. appreciate it. bill: i wish i were anywhere but here file will is this. that plane should be flying,

folks, not bobbing in the water. megyn: hitting the stores, spending cash. new retail numbers in. the news is not god. what does it mean for the supposed economic recovery? they say the recession is over.

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in the irish sea. this video shot by members of a british roe tew team who saw a e makage emergency landing and called the coast guard. you see the helicopter come in over the downed plane and start to pull the pilot out. how lucky was this pilot that crew team was there? he was treated for hypothermi. a nice job by all involved and nice hat. bill: some bad news on the economic front this week. the u.s. labor department reporting unemployment up compared it a week previous. sales at retailers unexpectedly fell in july. purchases fell by .1%. it is the first drop in they months and many argue it could stall the recovery. what bothers you more, that jobs

number i mentioned or the retail sales numbers? >> they are both pretty bad but the retail sales number is the bad one. you see the big switch in the mat mood. if you said monday or tuesday is the recession over yes. then came wednesday and thursday and a triple whammy. retail sales numbers. they didn't go up. went down. number of people jobless claims went up. not down. then the big one, the really big one. foreclosures. record number of foreclosures in july. bill, i will tell you this. we are on pace right now to foreclose on a million homes every 12 weeks. bill: that is remarkable. you mentioned foreclosures. we have this from a viewer.

bill: will home values continue to drop? that is the question? do we know? >> classic theory would tell you they will continue to fall because you are in a downward spiral. all the foreclosures means homes going on the market. there is a huge number. millions of homes unsold on the market. that is the supply of holes. not many are buying so the price has to go down a bit more. bill: we found in july 87,000 homes foreclosed. if you consider an avenlg of 2.6 people per household that is about 226,000 people. that is a town the size of baton rouge, louisiana, and birmingham, alabama. significant. >> that was just in july and that is people taken out of the home. they are gone. it is foreclosed on. it is over, finished. the 360,000 foreclosure was notices. that is people who are going to be pushed out of those homes in the months to come. one million every 12 weeks.

we have never seen a before. bill: thank you, stu. you will be back next hour. don't go far. we are on line ready for your questions about the news. megyn: one ar of health care reform you didn't hear the white house talking about is tort reform. how much exactly are frivolous lawsuits costing our healthcare system? numbers just in from do we sue 'em and how. bill: thanks for that. there is new video of a midair collision last saturday in the hudson river in new york. what the two pilots were doing at the time of collision. how this new evidence will lead investigators to hopefully find a resolution. megyn: you can go to fox news.com and click on the story to find out more about close

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davenport, california. they are trying to keep it under control. keep the weekend down, a bit of moisture and you will have some success. live view and new video at america's newsroom. megyn: stunning individual yes showing the midair collision over the hudson river this past weekend much as we learned that the f.a.a. has suspended two employees at teeter proceterbor. this was shot by an italian tourist in new york harbor. we are told the tourist bore some relation to the tourists on the helicopter. it clearly shows the helicopter and small plane colliding over the hudson river. you can see why they said the folks on board had no chance of survival after this happened. it turns out that an air traffic controller at teterboro airport was on the phone talking to his

girlfriend when the crash took place. his supervisor was not even in the building. the plane it just taken off. david lee miller joins us from the new york newsroom. all week we have been reporting that this air space was not controlled by air traffic controllers and that these pilots were on visual flight control because apparently the level from the surface of the hudson to 1,100 they switch to visual site control that the air traffic control relies on pilots. why now are we looking at air traffic control? >> you explained it well. to crystallize the point, 1,100 feet the pilots have the responsibility of looking for other aircraft. not the responsibility of the tower. so the aircraft were presumably below that ceiling and the pilots were supposed to look out for other aircraft. whatever the reason, something went terribly wrong here and

this collision resulted. that said, now it has been revealed that two employees working at the tower have been put on administrative leave with pay. the reason for that is simple my a phone call. it has now been made public that one of the air traffic controllers, the one in contact with the piper aircraft, the single-engine aircraft, was simultaneously on the phone with a woman who is now thought to be his girlfriend. to what extent, if any, that may have contributed to the accident is being investigated. i will tell you more in a moment. his supervisor was not even in the building when this took place. the f.a.a. has released a statement. we will bring it up on the screen so you can see a portion of it. it siays --

>> allegedly two workers were breaking the rules. to what extent that contributed to the accident not entirely clear. the f.a.a. says at this time no reason to think it contributed but again this is an ongoing investigation. megyn: sounds like a belts and suspenders approach where, if they can't communicate with the pilots below 1,100 they want them to use sight control but that doesn't relieve the air traffic controlers to keep an eye on the flight which they apparently didn't do. this morning on "fox & friends" geraldo, who knew the pilot of the plane, was very upset. but he was calling for a manslaughter investigation. is there anybody else pushing for a deeper investigation or is it just in the hands of the f.a.a. and no criminal authorities are involved? >> as best i know there is no call for a criminal investigation at this time. i think that most people would say it is simply too early, premature to determine what

caused the accident. it may have been sfrp have beent error. was the chopper might minister responsible than -- more responsible than the aircraft pilot? we don't know. more may be learned from looking at the video that captures the moment of impact. that is a really horrific video in the age of youtube sometimes we forget what we are looking at here are the deaths of nine individuals captured by this italian tourist who coincidentally was recording this. megyn: david lee miller, thank you. >> things i would like to see done, ok, are tort reform. yes, tort reform. bill: question about what you would do to change the system the answer came.

tort reform many argue would reduce the number of frivolous lawsuits against doctors and hospitals and save a bundle of money. in 2007 doctors spent more than $30 billion in malpractice legal costs that related to tort reform. that is not currently part of the healthcare reform proposal. but we found this from our friend bock beb beckel this got attention. >> i think that you may be shocked but i think you may see the obama administration offer up tort reform. >> i'm choking. because i -- >> i know, but you watch. you heard it here first. bill: that got our attention. bob, organic to you. where did that statement come from? >> let me make it clear. it didn't come directly from the white house. it may have come from conversations i had with some people outside the white house.

but president obama has been on the record saying before the american medical association he is not for caps on pain and suffering malpractice suits. having said that, so is max baucus who was my client many years when i was in the campaign business. but having said that, the numbers you come up with and enough data is out there that there is an awful lot of money involved in the tort reform business. and the real question is how much has it helped patients? a lot of information that patients -- lawyers get wealthy. 30% to 40% of the fees. but -- bill: it is the lawyers that are fighting against it. but is it a trump card the white house is holding to get it done ultimately? >> let me put it this way. i think it is a trump card because you always want to upset expect taste and get boonth every and the republicans have used this issue of no tort reform on this over and over and have raised significant savings.

if you look at it that way and say let's buy into the republicans talking about savings and bring this and change the entire dynamic of the debate it may just save something that for 50 years we have been afterwards which is universal healthcare coverage and if the trial lawyers feel they have to be thrown under the bus for everybody being insured sobeit. bill: tom daschle was supposed to be the point man and he said you ought to bring in a real doctor. sees patients every day. what would tort reform mean for the way you do business, practice? >> i think tort reform is really important but i think it should be independent of this bill. i don't think it should be a sweetener on a bitter pill. let me explain tort reform. it isn't just capping pain and suffering. it is the fact that 40% of the suits that are brought are nuisance suits leading to 15% of the payouts. we practice in a culture of fear

because we are afraid when will we be called in the lawyer office. it is a culture. then we practice defensively. we order more tests. i want to see a change so nuisance suits are addressed and see a change so we don't have to keep seeing more patients. if we see reimbursements to medicare and other insurance we will have to see more patients and there will be more medical mistakes. all of that should be in advance of healthcare reform which is why this is being rushed. bill: would you be better able to run your business if you had caps and what a lot of doctors argue would be protection? >> i think caps are important but i want to tell you in 1980's in california when they instituted mandatory caps the insurance companies saved money. they had to put in a second law that said give the money back in terms of premiums so i want this to be handled carefully. i want tort reform but i want it to be done now, right away with all of these issues. caps, nuisance suits and also by

the way insurance companies and government are not liable if they turn down a test. how about that? if i order a test and the government or medicare says you can't have it or private insurance says you can't have it i'm liable. not the insurance. bill: i have you. yes or no answer. if you got what you wanted would you support the bill? >> no, there are too many things wrong from the patient's perspective. bill: bob, if you are right in the end we will give you your props. >> thank you. doctor you don't have a prayer's chance in hell without putting in this healthcare reform. >> i want tort reform. >> i know, you won't get it. bill: thank you. megyn: it is nasa's job to watch out for asteroids oh comets that could come crashing to earth. with the potential to end life as we know it. a new report says nasa is asleep at the helm. bill: tense moments with one lawmaker and his constituents.

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megyn: democrat ben card en of maryland is having a tough time at the town halls. it got rowdy. people were fired up on both sides. inside however it was mostly seniors who raised calmly some pointed issues. take a listen. >> when you say all of the bills will reduce costs, i think you are not informed. your own congressional budget office has said that this bill in particularly will

dramatically increase costs. >> why on earth are you producing a health care bill that has so many pages in it and such complex wording that we can't understand it and we quite frankly don't trust you all to be honest with us. megyn: carden says he would like to see the legislation take final form so congress can vote on it. bill? bil

bill: i'm scared. megyn: me, too. bill: that was from a movie 11 years ago. a massive comet making its way toward earth that could wipe out all life on the planet. it is nasa's watch out for it but a new report shows nasa is not in the game because they don't have the money to do the job. we have a physics professor and author of a book physics of the impossible. nice to see you. >> i felt very good until i saw that story. bill: seriously, you take this seriously. this concerns you. there are objects out there circling our planet or coming near to earth that are only 460 feet across. that is the size of the super dome in new orleans. if we were to take a hit from one them what happens? >> it would knock out not just new york city but the entire northeast. an object the size of a two-story apartment building will take out new york city

that. is a city buster. something like that hits us once every 100 years. it usually lands in the ocean but in 1908 in hit siberia yafrment i think it is inevitable. one day we will get hit. everyone is talking about health insurance but what about insurance for the earth? the earth needs health insurance. bill: there is a law, right that tells nasa to look out for these things but we have found that nasa can't do it because they don't have the money. explain that. >> it is a catch 22 situation. in 2005 congressman dated that nasa track 90% of the 20,000 objects out there larger than the super bowl but they found out this is no money coming in. so how is mast going to track 20,000 objects out there which can cross the orbit of the planet earth? bill: amateurs are doing it right now? remember the image we talked about a week ago planet

supervise terror hit by an asteroid and left a bruise on the planet. >> a black eye. astronomers were caught with their pants down. it was an amateur in australia, we didn't see it coming. it came from behind and caught us off guard and an object caused a fireball on jupiter the size of the planet earth. bill: there it is. convince me, because i'm reading here that five objects in one million have a chance of hitting earth. i think our odds are pretty good right now. >> and it is chump change to track them. we are only talking about $100 milli million. chump change to track them except congress will not fund nasa. bill: i know you believe in this. i took out an asteroid fund a month ago. how do you get people to care? >> there is no lobbying effort behind nasa's effort to track

these. that is the thing. we have lobbyists for this group, for that group but no group of scientists lobbying for this pocket change to have this insurance policy so that we don't get hit by an asteroid. bill: nasa has a voice in this. >> yes and it will have to rearrange priorities because at the end of the month this panel will be giving president obama a major, major recommendation as to whether we go to mars, the moon, and i say we tack this on this bill. this is easy to do. bill: more spending, huh? the one point to be made here is that the united states is the only country even in this business. we are the only ones that care about tracking it. >> most of the trackers are amateurs and you could fit all of them in a mcdonald's restaurant. that is how few people are tracking these things every day. it is a thankless job. they go out, photograph the night sky, compare with the previous night. bill: let's hope we don't super

size that guy. in a moment we will go back out to california. the fires are making news. back to santa cruz as the sun comes up the dawn of another day where they have tripled in size. megyn: john edwards reportedly set to drop a bombshell about his former lover's baby. just days after that love are reille hunter spent nine hours testifying in front of a federal grand jury. is john edwards possibly headed for prison? . my guys brush their teeth like they clean their room. i'm glad anticavity listerine® smart rinse™ attracts stuff like a magnet, then shows it in the sink. ewww. gross. cool!

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bill: this is a fox news alert.

we are getting word that thousands of evacuations will begin now in the area of the santa cruz mountains. thousands forced to their homes which will add to the numbers from yesterday. that is a live image above santa cruz. megyn: i cannot look at that without thinking of shepard smith. çbill: we will get our own version. megyn: him in any event, now to this serious report. çparents in the u.s. are taking serious questions to prevent this h1n1 virus from spreading. in the meantime, questions are being raised on how to treat the

flu if your child does cap it, swine flu, that is. amy kellog is with us now. apparently, the british are finding out that there is a problem with giving the young children the medication that treats the virus? >> there has been a lot of controversy over how best to treat h1n1, especially among young kids. and oxford study said that the side effects possibly not win the benefits compared to the, the anti-viral. here in the u.k., another issue of concern among the authors of the study is that you can effectively get an on-line diagnosis of swine flu, here in the u.k., and that is in order to take the pressure off of

physicians from people who do not feel well. then you can get a prescription for tamiflu, other traditional medicines. doctors say it may be best for children to have some sort of interaction with a physician because the side effects, such as vomiting, which occurs in some people, could lead to çdehydration and could mean the situation worse, rather than better. megyn: thank you. bill, we showed you part of that exchange between major garrett and robert gibbs. çthe issue was over unsolicited e-mails. you will see more of that any matter of minutes. we will see if the white house is trying to hide something. megyn: four years ago this weekend, 40,000 people got together for woodstock.

coming up, we'd take a look back at the famous festival. racheting up slowly ) ( whooshing, riders cheering ) combines two powerful medicines for fast relief of your diarrhea symptoms, so you can get back out there. imodium. get back out there.

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megyn: this is a fox news alert. you are looking at the white house. the question on the morning, it is press secretary robert gibbs checking in e-mail list this moment, or isn't he? that is what he said he would do after our own major garrett and hand were in a heated debate. he asked why folks inç the country are getting unsolicited e-mails from the white house on health care. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org--

>> never signed up for anything related toç this, white house,s a candidate, anything. how could that be? >> i would be interested to see who you got that e-mail from. >> i need to give you these people's e-mails. >> are asking me if there are on their list. if you can figure out a different way to check -- >> they never asked for e-mails from the white house. >> i appreciate the fact that i have omnipotent clarity as to what you receive in your e-mail box today. >> i am telling you what i have. i never asked for anything. >> let me go somewhere else that

might be more constructive. megyn: tempers flaring. that is our topic. good morning, everyone. bill: how about the way that major was looking at him? good morning. tensions are high inside the briefing room. major garrett and really never got an answer to his question. megyn: thankfully, heç is live coming from the white house. what a fascinating exchange. i have had these types of exchanges for you and i know you do not back downç. the problem was you could not get a straight answer. you were trying to figure out how these people were getting unsolicited e-mail from the white house. at this hour, do we have an answer? >> we do not. you heard robert gibbs asked me

for e-mails. i was not trying to grandstand, as i have been accused of. i did not have permission of the people who sent me these e-mails to send them to the white house. in many cases, now i do. we have received a lot of comments saying that people have seen these e-mails. my own personal and box has seen a lot of people saying that they received these e-mails. one thing i want to make clear, i am not so internet dense that i do not understand that e-mails can be forwarded. i understand that. i am talking about peopleç who represent to me credibly that they did not have the same now afforded to them, that they were sent directly from the white house.

i also said to robert gibbs, i have these e-mails, if you ask for them, i amç prepared to gie them to you. i just want some sense of his answers. i hope the situation changes. i am not looking for a confrontation. megyn: we have gotten scores and scores of e-mails supporting the tough questioning that we saw from you. you did not get a lot of fallout from the rest of the white house press corps, but kudos to our viewers. now robert gibbs, he is the one that made the offer. give me the e-mails, i will compare them. so far he is not taking your phone calls or is ignoring you all together? what is happening with the communications? >> once i for -- obtain some of the permission from the

mailers, i contacted him but i have not heard anything back. megyn: i know that you will stay on this. we will as well. bill: that is enough to stay tuned for all day. when is he going to come back? megyn: you have to ask questions. that is their job. bill: some at these town hall meetings are talking about what they call government-controlledç death panels. caroline shively has that story from washington. this was a truck grassley in iowa who was blasting this part of the bill.3 >> in a statement he said that we would drop and of life provisions entirely because of the way they could be misinterpreted and implemented

incorrectly. as you mentioned, he was even more forceful in a town hall on wednesday. >> i do not have any problem with living wills, but they ought to be done within the family. we should not have a government program that determines your are going to pull the plug on grandma. >> keep in mind, he is one of the key negotiators on the senate finance committee and one of the few republicans at the table. if he is having these problems, it will be a rough time. bill: the administration has made it clear that they need about a republican supporters. in the meantime, they are making deals with pharmaceutical companies? >>ç they agreed to cut $80

billion in prescription drug costs, but what did they get in exchange? robertç gibbs denies a report that they agreed to a post that congressional effort to bargain for lower drug prices, or get medicare rebates that would cost pharmaceutical companies millions. listen to him yesterday. >> nothing was promised? >> i was simply responding to a question. >> have you answered that question? can you say for sure they were promised nothing in return? >> i can assure you that we have come to an agreement to seek savings from the pharmaceutical industry. bill, we are going to show one of these ads running right now to see. thank you. megyn: people in grand junction,

colorado all have the type of health care that people in d.c. say that there won for the rest of us. doctors treat people for one pentecost compared to other cities. no surprise hpresident obama is holding a town hall there. what can learn from them? çalicia acuna, one-third the care? how do they do that? >> about 40% of the population falls underç an hmo plan. daughters and administrators say that it comes down to four things. we have a high number of family physicians who know their patients and follow their progress from the office, or at home. the other thing is communication. everyone talked to each other. you have doctors talking to

hospitals, there's is talking to everyone, there is constant communication, and they have a central data center where all the data goes. so in lead can see if a test was done at a doctor's office to avoid duplication. it is also a non-profit. one of the biggest items they mentioned to us is transitional care. megyn: so this is a small town. could this kind of thing work in a city like new york, chicago? >> they get that question constantly. talking to the ceo,hhe said it is possible, but it will take patience and communication. health care can be so fragmentedç, meaning that not always communication are open. they have this conditional care idea where interest follows the patient and makes sure that there is not ending that can cost insurance companies more money.

doing that in a big city is a challenge but not impossible, according to the people we talked to. megyn: thank you very much. i see that you received the memo of wearing purple every week that bill send. bill: at first we admired his bravery. he captured a burmese python. but now his story is changing. megyn: once a rising star in the democratic party, he wanted to be president. now john and were dropping off the national stage after admitting to an extramarital affair. he has denied fathering a child with his former mistress. that could change today. bicycle, i've missed you.

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bill: the chinese government closing a factory suspected of causing leadç poisoning in 300 children. it opened in 2006 and apparently accountsç for 17% of china's g. the chinese government is in the process of relocating hundreds of families living nearby and apparently the program is years behind schedule. three children by now in the hospital suffering from lead poisoning. megyn: is the lighthouse clock e-mails of those who disagree with health care policy? first, the white house asked americans to ford to them the e-

mails of those who raised fishy claims about health care. two days ago i asked the deputy white house spokesperson what they do with the e-mails of those people who are complaining. here is part of the exchange. are you purging and deleting those e-mails? you are not answering. >> you are flabbergasting, have to say. megyn: onç the heels of that, robert gibbs asked major garrett about a report that say that people who never gave their e-mail address isç getting e- mails from the white house. >> i would be interested to see who you got those e-mails from. >> i need to give them to you to check them on the list? >> you are asking me if they

are on a list. if you can think of a better way of checking this out without asking me -- >> but they never asked you for an e-mail. >> i will have to look and see -- >> you have no explanation on why no one ever signed up to get an e-mail from the white house is getting one? megyn: is the white house hiding something? joining me now is bill sammon, our washington managing editor. are they hiding something, and if not, then my such a difficult time to relatively straightforward questions? >>ç i think the base of this ad irritability demonstrated by them tell me that it looks like they areç hiding something. i was there when house correspondent for a decade and i

have asked a lot of questions of people at the white house press office, and it looks like they are hiding something. can you imagine how the press would be going crazy this president bush and cheney were compiling an enemies list and all of a sudden people contacting -- could never contacted the white house was getting messages from karl rove? megyn: when i spoke to burton, he said that we did not have an enemies list. who cares what it is called. the point is, the white house has a data base of e-mails of people who have complained about health care reform efforts. so are they then using the database to market its own personal message, or is it just

keeping it in storage when it will eventually become a political record? isn't that the point? ç-- public record? >> if your are compiling a list of people who dissent from your policies, you could call éh@t an adversary's list. second, it raises all kinds of implications. if they have a list of people who disagree with them and they are looking at the things that these people have written about them, what is to say that they will not turn the irs loose on them, or using these other powers that you get in the white house? megyn: they would say that is ridiculous. we are just asking for those fishy e-mails, so that we can respond. we are not going to do anything with their e-mail addresses.

but now they are not answering major garrett's question. they would say that claim is a bunch of baloney. >> forgets about fox news for a minute. look at the aclu, of all people. they recently filed paperwork objecting to the fact that the obama white house in the reversal a longstanding policy now wants to advocate the use of cookies and other web tracking technology to monitor federal website. the obama web site wants to be able to use these things so that when people visit federal websites you can follow them, track every click of the mouse, figure out where they are going. in many cases, obtain their e- mails. oftentimes when they go to different websites, they use their e-mail, and so on, and so forth.

that would allow them to get a list. if theç aclu and fox news is up said, there is probably something there. bill: thank you, bill sammon. ç-- megyn: thank you, bill sammon. bill: this is a fox news alert. a woman who was a former disciple of charles manson has been released from federal prison in fort worth, texas at the age of 60. your governor is supposed to use stimulus money to create jobs. now some of that money is reportedly being used to buy cigarettes, beer, and cell phones. so when kids in the state of new york? megyn: do you see a family resemblance between john edwards and this baby? he admitted to having an affair with this woman. is he ready to admit that he is

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bill: here in new york david paterson is giving $100 million from stimulus to families on welfare to help buy school supplies. on the surface it sound like a great idea but now we are learning many of those people found other uses for the money. stu varney has been tracking this. the governor, mayor, and george stores came out and they were giving out money? >> yes, $140 million given to welfare recipients for back-to- school supplies. about 2 $1 per family. george soros donated $30 million

of his own money. -- about $200 per family. we had an executive telling us that she was fielding calls from wal-mart why these people were lining up trying to bite but gas station owners saying there on beer and cigarettes with welfare money. that is $140 million in one state, all cash for back-to- school supplies. bill: 1 not team up with staples? create a voucher system to make sure that the money is spent appropriately. >> the money arrived in the dead accounts on tuesday. there was an immediate rumor on when it was for. there was in line around the

block western union offices around the city of people trying to lock in that money so that they could spend it. very badly administered and the massive amount of your money. bill: thank you. back-to-school we go. megyn: brand new ads are hitting the airwaves today, millions being spent to push for an overhaul of our health-care system and to fight back against the bad p.r. of these town halls across the nation. will it be enough to sway the simple numbers on health care reform? bill, not religion? a new study on americans and their faith. rewrite your hair's past and give it a whole new life.

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bill: there are new battle lines being drawn in the battle over health care. that and you are about to see is playing in states across the country from a group called americans for stable quality care. >> what does help enter trephine mean for you? it means putting health care decisions in the hands of you and your doctor. it means lower cost. tough new rules to cut waste and red tape. bill: that is a 12 million- dollar campaign airing in nine dozen states, so who is this group?

tucker carlson is a senior fellow at the cato institute and a fox news contributor. nice to see you, old friend. who makes up this group? what are they after? >> money, of course. [laughter] when you look at who supports this plan, it is people who will benefit from it, by the people who do not have health insurance, people who are going to make a lot more money if the government for the regulates the industry, and then everyone else. 80% of americans are satisfied with the health care coverage they have. one example, pharmaceutical companies will benefit under this plan. çyou can see why. if health care coverage is mandated, that means more money for people who provide care, and that means drug companies. there are pretty obvious motives.

bill:ç unions are behind in, ad drug law and ears, the federation of american hospitals. it sounds like everyone has their fingers and the spot. >> this is an enormous percentage of the economy. here is the truth about part of what this is going to do. if health insurance companies are prohibited from denying coverage, required to cover things they do not currently covered, and are prohibited for charging people more for the coverage, it is obvious what will happen. they cannot turn a profit but they have to exist because our system is based on them. pretty soon, the federal government will be using tax dollars to prop up health insurance. bill: so even insurance companies will be supplemented by the taxpayer? >> they have to be. if the plan becomes law, the way that the president has denied -- described it, then the system

cannot work. companies who do not make money go under or they are bailed out by taxpayers. bill: we have seen a lot of that lately. by the way, virginia, colorado, and the montana -- montana. those are three states where the president will be visiting. they are key states. but me see the president later today in montana, what do you think the white house wants out of this? do they won a reprieve from new hampshire? >> i think in some ways they want to see a repeat of new hampshire which is in docile audience,ç in the wreck we screened by the white house -- indirectly screened by the white house. it is also a larger name of the

democrats, taking aim on the rocky mountain area. çwinningis key, but looking ahead to the next presidential election, they will be focusing on those areas. bill: thank you. we will see what happens of those town halls. megyn: the fastest growing religion group in the u.s. is none of the above. more and more people identify themselves as a unaffiliated. does that mean that churches are giving up on expanding? anita vogel is with us now. what are churches doing? >> let's talk about the survey first. the q research group interviewed 35,000 people, and it is exactly what you said, 16% of people consider themselves unaffiliated.

there are a variety of factors here, ranging from gradually drifting away from the church, to people changing their minds about the teachings of the church. megyn: established churches cannot be happy with that -- with those numbers, but they are not going down without a fight. >> that is right. these churches were aware of this trend before this study came out. now they are trying to spend a lot of money to bring people back. the methodist church in catholic church are spending a lot of money on marketing campaigns. we are talking about print ads, television commercials, and other means. they tell me that it is working. >> the vast majority actually does not have a reason. they're not upset, but they just got out of habit. çthey are thankful that we are reminded them that god loves

them and he has a plan for them. >> tom peterson from the catholicscomehome.orgç says tht they are bringing people back at less than $2 a soul. megyn: also, you got bill's purple friday memo. nice job. you look great. megyn: he admitted to having an affair with a staffer on his presidential campaign but john edwards has steadfastly insisted he is not the father of rielle hunter's baby. is he about to change his tune? could he be behind bars soon? bill: i wonder when rick leventhal is wearing today.

-- what rick leventhal is wearing today. where were you 40 years ago today? >> that all, new york. three days of sex, drugs, peace, and the music. it all started here in bethel, new york, at woodstock. we will have a special guest coming up. gecko: uh, you wanted to see me sir? boss: come on in, i had some other things you can tell people out geico - great claims service and a 97% customer satisfaction rate. show people really trust us. gecko: yeah right, that makes sense. boss: trust is key when talking about geico. you gotta feel it. why don't you and i practice that with a little exercise where i fall backwards and you catch me. gecko: uh no sir, honestly... uh...i don't think...uh... boss: no, no. we can do this. gecko: oh dear.

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yellowstone before they make çthat stop in grand junction. there will be a town hall meeting there, and then tomorrow in denver. you will see that here on the fox news channel. megyn: kelly's court is back in session. onç the docket, a new chapter n the fall from grace from a white house hopeful. reports say former senator john edwards is set now to admit that he fathered the child with his former mistress, photographer rielle hunter. she was hired to document his bid for the white house. after denying it, he finally admitted to having an extramarital affair, but has been vehemently denied being the baby's father. >> the report was published that

the baby of ms. hunter is yours. true? >> not true. probably in a supermarket tabloid. that is not true. >> does elisabeth think it is possible yours? >> of course not. she knows it is not. >> how does she know? >> the same reason i do, it is not possible. megyn: now television station says that he took a secret paternity test -- keep in mind, there is a grand jury proceeding on him rightç now to see if he misused campaign funds -- and now he is expecting to confess that the little girl is his. how does that affect the pending grand jury case against him? let's ask our panel. good morning. he is in a lot of trouble. çlis, the headline from the

beginning. he has lied at every turn. he dismissed it all to tabloid reports, and right or wrong, they have been dead on. they, too, say that he has proven to be the author. how does this affect the criminal case against him, or rather, that may be brought against him. -- him? >> the fact that he lied at the beginning shows a motive. the grand jury is looking at whether or not campaign public funds were misappropriated. if so, did he know about it? if he lied about having an affair and having a child, that is certainly motive to have the money spent.

megyn: on the other hand, giada, pa lot of married people who get caught having an affair lie about it. could he say that the reason he wasç lying is because he was embarrassed as a married man and was not trying to cover up a criminal misty? >> it is not terribly unusual for a man involvedç in extramarital affair to deny being a father. if so, maury povich would not have been done. perhaps he honestly did not know whether the baby was his, and that is why he denied in in the beginning. >> there is another car here. megyn: hang on, this is videotape from 1 rielle hunter was called to testify. the crew she brings with her, the 1-year-old daughter.

she testified for nine hours. why did she bring her daughter with her to the grand jury room? >> because the town is at issue here. she brought it into the test -- into the court room. she probably contest to what happened. i do want to bring in this andrew young card. he was made for senator edward. he is the one that came out and said that it is not senator edward child, but it is my child. if he went in front of the grand jury and he recanted -- again, we do not know what happened -- but if he recanted that statement, all bets are off. çhe is the one that could be flipped by prosecutors. if you lied about this, you could be in trouble. again, it goes to the motive for

covering it up. megyn: it is one thing to lie to theç press. tamil reports, do not listen to them. it is quite another thing to lie under oath. we do not know if that happened, but if he was ordered to take a paternity test -- and now we are hearing that he did -- and he is the child's father, could there be criminal charges if he misled the grand jury on that fact? >> only if he lied under oath or obstructed justice. that is not a slam-dunk either. it goes back to the excuse that he did honestly -- did not know, honestly, until he took the test. megyn: if so, why was he visiting rielle hunter and the baby on the child's birthday?

>> babies do not come up with their father's name tattooed on the body, so he could have been holding onto hope that a bad situation just got worse. megyn: when she found herself pregnant, she did not call him off and say i have some news to share. and look at the child. it is anecdotal, but she looks awful lot like him. >> çand you asked why she would bring the child to the grand jury. i hate to say it, but the exhibit saa. the other thing that is funny about this paternity test, we are subsuming he obliged. it could have been surreptitious. çreporters could have been able to get some dna from him and they came up with a paternity test. and may not have even been

something that she wanted to give over, but something that he is forced into doing. also, elisabeth is apparently coming up with a book that has a lot of details. megyn: two interesting books. she went on oprah and said that she did not know if that little girl was her husband's baby. all she said was that she did not take a family resemblance. she did rep on rielle hunter. and andrew young, who claims to be a friend of and birds, he is coming up with a book as well. apparently he is prepared to say that he is not the father. >> he is coming out with a book, but he is not speaking to reporters, and to the grand jury, and when you put all that together, it sounds like it will be a pretty steamy book. megyn: to me, it seems that perhaps it is a tawdry rumor,

social affairs to discuss, but i do not know if it plays into a legal matter. >> i have a problem with km for profit, and it appearsç that hunter is doing that. megyn: one final word, if he used campaign might to buy his mistress's silence or to support that little girl, that is a crime. if his friendç came forward and pay up the mistress, supported the child, did not use any campaign money, that is another matter. until the grand jury decides, keep an open mind on this. and take this as a reminder of how important it is to be a truthful person. everyone makes mistakes. bill: speaking of being truthful, we thought he was being straight with us. he had the proof and the picture. now his story is changing, too. and the contour and that defined

a generation. three days of love and music. rick leventhal is on standby. . imodium multi-symptom relief combines two powerful medicines for fast relief of your diarrhea symptoms, so you can get back out there. imodium. get back out there. sfx: chear that?can shaking that's the sound of people saving. saving money, saving time, and saving for the future. regions makes it simple - starting with lifegreen checking and savings - featuring free convenient e-services,

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megyn: it was said to be one of the largest pythons captured. florida declared open season on these creatures, running while down there. justin matthew said he cost 814- foot snake last month, but now he admits faking the whole thing. he just wanted media attention. he said he did it for good reason -- to raise awareness about pythons after the strangling death of a little girl by her family's python a few months back. officials are now considering charges and fines against justin.

bill: even if you're not old enough to remember the show, you have heard the music. janis joplin, jimmy hendrix, joan baez -- it went on and on. playing concerts' around the weekend, remembering the festival known as three days of peace and music. rick leventhal was that. -- was there. he is in bethel, new york. >> i did see the movie, my parents did not bring me to woodstock. i am sure in the very -- here in the very spot where the acts performed. we want to show you then and now. you can see the field we're standing on, covered with

people enjoying the music. i am not sure who is on stage at that time. as we dissolve from the old to the new, you see this field used to be part of the dairy farm -- it has been cultivated, fenced in, and is now open for visitors. a man who was here back in the day, duke devlin, is here as a site interpreter, whatever that means. you are like a tour guide. >> yes. i point out things. >> you hitchhiked from texas. do you remember any of that? >> pieces of it. i got here. >> and you have never bought a ticket. >> never bought a ticket in my life. >> tell us what this was like for you. this right here, 500,000 people work here.

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bill: our respects to les paul, dead 94. dave works with us. he is going back to utah. he is going back to utah.