gretchen: geraldo rivera and the new miss universe will be here, miss venezuela. brian: it will be fantastic. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- gregg: this is a fox news alert. new numbers from the economy supporting claims that say this recession is over. the numbers show a 1% contraction in ever gdp in this -- in our gdp in the second quarter. compare that to be 6.4% drop in the first quarter. it seems we are on the way, but can we get our stimulus money back? good morning, everyone. megyn: hello, everyone. welcome to "america's newsroom." our research team looked at this this morning.

only 11% of the stimulus has been sent out so far. $700 billion is still sitting in the bank, and now some folks at town hall meetings are starting to ask -- in the words of the cartoon character -- for a refund, a refund. remember that? gregg: stu varney has a wonderful way of putting everything in perspective for us. >> you have not got a prayer. it is never going to happen. when was the last time a politician took $1 trillion of your money, did not spend it, and gave it back? >gregg: but if people start demanding that they are repaid -- let's take a look at this

poll number. 72% say, return it to the taxpayers. that translates into the vocal demands that we are hearing across the country. could this help our recovery? >> yes, if we give this money back, it could make an improvement in american's finances. the fact is, the recession is just about over and our economy has self-corrected. we did not get much help from the stimulus plan, but you will hear from politicians that we are on the right track but there is work to be done. the idea that we should not spend and give the money back is practically out of the question, no matter what the voters say. gregg: thank you. megyn: one day after the passing

of ted kennedy, nancy pelosi now mentioning his death as a rallying call around health care reform. she said -- but his absence means one fewer votes on health care. at this point, it is not clear how his death will affect the debate. republicans have made little reference to it when expressing their condolences, and we wait to see how things will be resolved in the senate. gregg: and john mccain last night meeting with a passion in crown about health care. he told his constituents that he

is fighting for health care reform, but not for president obama's plan to create a government auction. he pointed to a recent government program as evidence of all this. -- government option. >> the so-called public option is not a public option. it is a government takeover. [applause] i do not believe that the government runs the health care program in america any better than they could cash for clunkers. [applause] megyn: in the last few days we have seen senator mccain meeting with seniors who are worried about what may happen with medicare, if health care reform goes through.

the president says he can pay for this overhaul plan by cutting waste from medicare, without touching benefits. here's how he described it to aarp. >> i think a misperception that has been held there, that somehow there is any discussion about reducing medicare benefits. no one is talking about reducing medicare benefits. medicare benefits are there because people contributed to this system. it works. we do not want to change it. megyn: the people at the town hall meetings do not seem to be buying that. should they? we have some thought on that with karl rove. it is interesting to see the consternation of these seniors. democrats have said, what are they complaining about, they are

already under government-run health care? why do they care if we have reform? you point out that they have good reason to be concerned. >> president obama has outlined $622 billion in cuts in medicare. this is not simply reducing future growth. he wants to cut $177 billion from medicare advantage. this is a plan under medicare that allows people to use medicare money to buy private insurance policy that is better than what they can get from medicare. one of five seniors in america have a medicare advantage plan and there are 10.2 million people as of this march. if president obama has his way, that program will be gutted and they will no longer be able to take advantage of the same

program. megyn: medicare advantage is a good deal if you can afford it. you get better health insurance. >> but some of them have no premium option. if you meet certain conditions, you do not even pay a premium. megyn: it is a nice plan. barack obama has said that we should stop subsidizing companies to participate in medicare and vantage -- advantage. he seems to make clear that that is the group that he is going after. how many seniors are taking the advantage of this? >> 10.2 million as of march. that is roughly 23,000 seniors per congressional district. if you are a member of congress or a senator, and you have that

amount of people who are risking losing coverage, you have to be worried about that. seniors are registered, and seniors vote. people love their medicare and vantage. -- advantage. this is political dynamite that the president is playing with, and he is being disingenuous. david axelrod said doubt that now famous, viral e-mail one day before the president went to montana. this was just before they spelled out how they would have cost savings. megyn: what do you realistically predict for these seniors, as a result of these potential cuts?

he says he is reducing inefficiencies, so what would happen? >> the program would simply go away. no insurance company making 20% profit on this program would continue this. this program would go away and seniors would no longer have -- i suspect every medicare advantage holder would lose their plan overnight. megyn: how do we know what to believe? you are telling us this, and president obama has said repeatedly that he will not cut benefits, that his plan will strengthen medicare and reduce abuse. as well, they are going to put $240 billion more into medicare to ensure physician payment are not cut. who can we believe? >> people just need to apply

logic. if you cut a program by 20%, it boggles the imagination that the program can still exist -- that assumes that profit margins from insurance companies are 20%. you would have to be in microsoft or google to have that kind of profit margins. just think about it. it is cut 20%, is it likely that that program can still exist? president obama does not like this plan. he has said from the beginning that he does not like the plan. it is hard to understand why. consumers are in charge. it is a private plan. if you want to have rationing, and if you want to control cost, you do not want a private plan. but the president has been

misleading in a lot of things over this debate, and this is one of them. he said we could keep our plan, that this would be paid for, that this would not add to the deficit. all of this stuff has been blown up by third parties and respected research groups. this is just his latest misleading statement. if you like medicare, you have to fear obamacare. we have to stop this. megyn: you also say that we have to keep an eye out if you are a congress member. seniors vote. stay with us because we want to ask you about these cia investigations. gregg: and we are going to take you to white tail, montana where three people a day use the border crossing.

now congress is planning to spend millions of dollars there. megyn: and then there is this. ouch. holy angry home owner, batman. we will speak to the reporter on the receiving end of this garden hoe. gregg: a hoe! great looking skin... it's in the dna. [ female announcer ] new regenerist dna cream with spf 25 doesn't just correct. it helps protect your dna without a $200 department store price tag. olay regenerist.

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at red lobster. gregg: new revelations in the ongoing controversy over cia interrogation.

reports say cia operatives used sleep depravation techniques to question a top terror suspect. the justice department is launching a new probe in what critics are calling torture, others say that it is worth it when you or saving american lives. it is not just sleep deprivation -- which i have had since my daughters were born -- but they are talking about potential prosecutions for things like blowing cigar smoke in their face or showing the prisoner a fake dead body can print name that person with bodily harm. are we really going to prosecute people for such things like blowing smoke in their face? >> i hope not, but it is reprehensible that this administration and attorney- general are launching criminal

probes into the actions of men and women who protected america in one of our darkest and most dangerous space. i cannot tell you help. i am about this. gregg: -- i cannot tell you how outraged i am about this. gregg: the investigation turned over the findings to the department of justice five years ago. career prosecutors look into bed and said that we will not prosecute, except for one case. are you concerned that suddenly now a career prosecutor is being overruled by a political appointee, eric holder? >> absolutely. he is acting on an ideological agenda. he does not have security of the country at his heart, and he may do damage to our intelligence

gathering capabilities. i want you to think about this. these men and women did things that were authorized after the cia met with the justice department, defense department, outside experts, and they blessed in this use of technique. as well, with the awareness of congress. now we are looking back and saying, you did something wrong. how will that affect future behavior? are you going to look for a tough assignment, are you going to do something within the law? i cannot tell you -- let's just a back further amended. these techniques were used on jose padilla, who was going to

blow up buildings with natural gas. khalid sheikh mohammed, the information that we got from him is so vital, it remains classified. think about the plots that have been publicly discussed that we know that we have stopped because of these interrogations'. the line in the airplane into heathrow, attacking america's trains, blowing up gas stations, flying an airplane into the liberty tower. if anyone needs to figure on whether or not these worked, read in the inspector general's report. it is clear these techniques kept america safer. gregg: i have read these reports and i was laughing at it, you are going to base this on here say?

karl rove, thank you. >> one more point. this is not approved by the american people. 60% of respondents said that they did not want this to happen. by a two to one margin, americans oppose doing this. gregg: thank goodness you were able to get that white board in there. >> this was from our high-tech department. [laughter] gregg: chris wallace will have an interview with dick cheney on sunday this weekend. you can bet that will be part of the subject matter. megyn: reporters never know who will be behind a door when they try to dig into a story. this is what we do.

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megyn: you cannot blame them a fox affiliate for wanting to investigate this story. two under age girls busted for dancing at a club illegally. but our reporter did not expect this reaction when they look for a response from one of the girl's relatives. >> get out of my house! [unintelligible] >> wait a minute!

megyn: and that is not good. holly bristow was the reporter in the white suit. ok, she was very angry. as our producer pointed out, it is never a good sign when they have the hoe inside the house ready when you ring the doorbell. >> i guess i am glad i can laugh about this incident. i was there to do my job. her granddaughter was pulled dancing at a strip club. -- poledancing at a strip club. did you know she had this job? i mean, there were just a lot of unanswered questions. i was hoping to get some answers. megyn: she is a very angry

woman. she does not want to see you. is that your photographer getting the receiving end of the hoe? >> no, my cameraman was the one shooting. i thought maybe she would calm down, but it was on. the first thing going through my mind when i saw her was that i need to get away from striking distance. all i had to defend myself was a ball point pen and heels. megyn: who is the woman in the purple dress who also got caught up in the crossfire? >> she was from another station. no one had the right address. one neighbor told me that this is where i have to go.

we started walking up to the door and then all the neighbors started coming out. the cameraman is fine. he works for one of our competing stations. they had him file a police report. he was asking me if i should press charges. you feel bad for these people. this family has a granddaughter stripping at a club and they are all the emotional about this, but you do not want to set a precedent that you can come after a television crew like that. i do not know what would have happened if she had hit him and not the camera. megyn: we are glad to hear that you are ok. you are and intrepid reporter. thank you.

>> i think i may wear my running shoes next time. gregg: somehow a hoe is funny. maybe she is doing some planting on the inside of her home. on another note, friends and colleagues prepared to say goodbye to a political legend. we will tell you exactly how officials expect his absence see to be filled. megyn: and a democratic headquarters was vandalized. gregg: you let your char water flow down the drain, but that is a huge waste. grab a glass from the kitchen and drink up.

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megyn: forecasters are keeping an eye on tropical storm danny. the storm is strengthening, packing 60 mile per hour wind as it moves closer to the east

coast. over the next 24 hours, conditions will become more favorable for the storm to strengthen. its path is much closer to the u.s. than hurricane bill was. we will be watching it. gregg: $22 million has been set aside to improve security at the border crossings, but not a good size of that is going to a sweeping montana town that he's about $3 a day on average. here is the town, wachtell, montana. this is one of many canadian crossings, but the government reached this area as marginal. so why is it getting $15 million of your money? -- white tail, montana.

remember, under the stimulus plan, there was supposed to be transparency and no earmarks. we understand a powerful congressman pushed that. we will be investigating. megyn: a shocking crime at the democratic headquarters in denver. someone smashed windows displaying health care reform when thosposters. they initially blamed people who were against the type of reform, but she should have been looking closer to home. apparently it was the work of a democratic activist. we have someone in denver with us. so please have this person in

custody. he is apparently a democrat, someone who has been arrested before because of his democratic causes? >> he worked for one of those 527 groups that spent all of that money in colorado. the democratic chairwoman immediately blamed this act on people who oppose president obama's health care reform plan. i was disappointed and disgusted when she did it because she basically described the evil motives for anyone who opposes the plan. megyn: you can understand why she would assume it was an opponent of health care reform. the problem for her is that even when it comes out that it is this guy, she is standing by her

comments, blaming opponents of health care. you think it is outrageous? you believe she should apologize? >> i do think so. i am not going to do the same thing she did. i am not going to prescribe those motives for anyone who supports the president's plan. there are sincere people who support his plan and just because someone who did support the plan did this act, it does not mean everyone who supports this is a bad person. i was appalled by her comments. she should apologize to all of the american to legitimately oppose this plan from president obama. megyn: the irony is that after we find out that it is this guy, who also cause problems at the democratic national convention.

but she stands by her statement and says -- don't you find it ironic that she would be saying that, under these circumstances? many would say that she is adding fuel to the hate fire. >> you are right, and we are hearing the same thing from democratic officials. steny hoyer said that these people showing up at town hall meetings were mobsters. these are well meaning, sincere citizens who want to register their discontent. it is amazing that she continues to stand by her comments.

she owes the country an apology for contriving this kind of vandalism. megyn: who is this woman? >> she is actually a respected, democratic leader. this is her third term as the chairwoman of the party. i think she just let her rhetoric get out of control, and now is trying to get away from it. megyn: i think you are right to give her a pass on her initial comments, given the evidence, but we would love to have her on the show to explain her standing fast. by the way, two people did this. the other man is still at large. gregg: when you take a shower, what happened to the precious water? do you let it go down the drain?

you should not do so. the eco-shower uses the water to grow grass. this reminds us of another green technology, the toilet-sync. you can wash your hands and then that dirty water goes into the toilet. not the other way around. gregg: you remember the episode of "seinfeld" when kramer starts to cook in his shower? megyn: that may not be too far off. remember this?

we told you about a facility in california that turned sewer water into trouble water. -- drinking water. william la jeunesse actually gave it a try. megyn: go for it? dw! -- ew! >> it tastes fine. get over it, because this is the future. megyn: if you say so. gregg: he has been hospitalized ever since that day. [laughter] megyn: i have to confess, when i take a shower and the water goes down the drain, i never think about it again. i guess we are not green enough. gregg: new estimates on how much health care could cost small

businesses, and how it could impact you. megyn: and someone has been secretly showing pictures of cia agents to terror suspect at guantanamo. we will tell you why the justice department is investigating that possibility.

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gregg: a controversy is brewing involving the aclu and possibly aiding and abetting terrorism. they are accused of secretly taking photographs of 45 cia employees, at times of time of their homes, and then showing those photographs to terror suspects connected to 9/11.

any laws by lenin, perhaps compromised the investigation? -- and violated, perhaps compromising the investigation -- violated, perhaps compromising the investigation? we did contact the aclu to join us, but no one was available to speak with us. we have a special guest. the aclu has vigorously opposed the domestic surveillance program, a legal program, by the way, to infiltrate terrorism. is it ironic that the aclu is accused of doing its own spying on spys? >> their web site says that they are protecting the rule of law,

and you cannot protect that buy violating the rule of law. and valerie plame was not covered by the act, and we could get into that, but i'm not sure if the justice department is conducting a criminal investigation. it seemed to be a national security issue. one question we should ask here is if the cia is making a criminal referral. gregg: i was asking if there was any violation of federal law. >> no. gregg: is it not in violation of law to provide sources and

material to terrorist organizations? the last time i checked, al qaeda is listed. >> let's not treat it lightly that they are putting these cia employees at jeopardy by publishing these pictures, but look at the facts, gregg. valerie plame was not covert at all, and these people are. that is an important factor for violation of the law. also, they know their employees are covert. armitage had no idea that plame was a covert, and you need to have that knowledge. most of the people who work for the cia or not. but i have an important

question, where is the press? gregg: yes, the mainstream media were apoplectic about the identity of plame being disclosed. now essentially you have 45 of them. we just got a statement from the aclu -- i will be part of it, it is too long. >> but they do not think that anyone at guantanamo has violated the law, that they were mistaken people who were taken up from the battlefield. the newspaper has committed journalistic harry carey by demanding that reporters be

investigated. newspapers had no idea what they were talking about. now they are being said they can strangely silent. gregg: thank you. megyn: we told you about cash for convicts. thousands of inmates getting your tax dollars. it turned out the latest pay out was not the first one. wait until you hear where the numbers are. why can't the government stop this type of thing? brian: and the best museum in florida dedicated to everything burt reynolds could be going down the tubes. megyn: no! - ( rock music playing ) - ♪ oh!

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>> i am a strong guy, you know what i mean? how long do i have? >> i would say about a year. >> no! gregg: [laughter] that never gets old. sorry, folks. the burt reynolds museum facing the wrecking ball. the complex test that there is a chance they could relocate to a new municipal complex.

it is up to the state council to decide. it is billed as the largest liberty museum in the state. megyn: my husband travels down there a lot, and he had been inside it. i called him during a commercial break ask him about it. he remembers burt's new wife. she was in there, and apparently she helps run the thing or she was just there. there are pictures from wall to ceiling. i would spend a couple dollars to go in there. gregg: about $1. megyn: fox news is tracking h1n1, as you know. defense officials are now

scrambling to get ahead of the virus. and they could be at an advantage after what happened last month when more than 100 cadets came down with swine flu in the first week of basic training in colorado. alicia acuna is in colorado. why would that put officials at and advantage? >> they learned quite a bit about how the air force academy handled the outbreak. they ended up with 143 confirmed cases but the isolated 245. they took no chances, sealed the outbreak as quickly as possible, and you will be hearing from and lieutenant- colonel, the doctor who headed up the medical side of the outbreak. it took an extremely conservative approach. >> we based our initial

intervention on a very high degree of suspicion that this was h1n1, and we moved forward with that high degree of suspicion and we did not wait for confirmatory test. >> that is why they took 245 cadets in total and isolated them to two floors in one dorm. they made sure that they stayed put. megyn: thank you. be sure to add to our website, foxnews.com, where you can click on the h1n1 survival link. you will get all the essential facts, as well as the spelling all the myths. -- dispelling all the myths. gregg: surveillance camera catching officers get a suspect,

but we will show you more of the video that may change your mind. megyn: in virginia at these town hall meetings, it takes your identification. wait until you see what this congress mandated. now you can get unbeatable prices on the latest name-brand cell phones where you already save. well, actually just a few rows over in walmart's expanded electronics department. your new, fully-activated

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diabetes doesn't have to slow you down. join me and over a million people who trust liberty medical. megyn: this is a fox news alert. win one for teddy. the new battle cry for democrats on capitol hill. already invoking his name in the push for overhaul in health care. they say, in honor of senator kennedy, let's stop the shouting, and pass this thing. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- gregg: nancy pelosi said senator kennedy's dream for health care for every american will -- and that is the operative word -- become a reality, because of his

inspiration. megyn: now there is even talk about naming the final version of the bill after him. mike emanuel is at the white house. so democrats are already using his legacy in their push for reform? >> absolutely. we have heard republicans basically regret the difference that he could have meant to the health-care debate. already this morning john mccain said that he feels like lawmakers could still follow his example. >> ted kennedy has a long history of being involved in this issue, in a variety of ways. i would hope that his example of working together, coming together in the spirit of compromise, for the good of the american people, would have some effect. >> of course, kennedy was known for reaching across the aisle in

causes that he really believed in. some wonder how it would have been different, had he been able to participate this time around? -- this time around. if he becomes -- megyn: if he becomes a rallying point on this, will he had a big impact? >> you could say that the people who loved ted kennedy loved his policies and may have already been on board with health care reform. a lot of people who do not like this effort say that we respect him, a legend in washington, but that does not mean that we will necessarily get on board with reform. megyn: thank you. gregg: things are going south big time at a health-care forum for a one time when house hopeful, howard dean. speaking to a packed house in virginia. we tried to bring this to you

yesterday. the breaking news of senator kennedy took this place, so we are bringing it to you today. >> we are fortunate to have a real expert and a grass-roots leader on health care -- >> boo! [applause] >> this is going to be a fun night. let me get back to the statement. thank you. >> the last time i was in front of the ground this size, i was doing the screening. -- crowd this size, i was doing the screaming.

i just want to say a few words. >> [yelling and chanting] how about a round of applause for jim moran? >> i cannot even hear the governor and i am sitting next to him. that means there are hundreds of people in this and gymnasium who cannot hear because of a handful of people. these folks are not from the eighth district. they do not belong here. i am going to ask them to leave. gregg: that was jim moran doing the introduction. eventually, the crowd quieted down enough to have a tough -- a few questions. we will be looking into who those people were that he referred to. were they people from out son?

-- outside? megyn: karl rove was with us in the last hour explaining how one challenge for democrats is calling the concern that seniors have over medicare cuts. 34% of seniors support health care reform plans, that is all. president obama's plan for reform calls for chopping half a trillion dollars in medicare spending in the next 10 years. but the president insists it not affect actual coverage or benefits. instead, he will simply curb waste and abused and inefficiencies. democrats say any argument for

the opposite is peer monitoring. you can take a look at the interview if you missed this at foxnews.com. gregg: of course, the democrats hoping to pass health care in the senate now have 59 votes with the passing of senator kennedy. they are already expressing concern about getting back to their super majority. carl cameron is on capitol hill tracking that question of succession. explain what is going on. >> there are some issues on how fast they can appoint a successor. the laws that currently stand, which was offered by senator kennedy, makes it not possible

to appoint an interim at the moment. democrats were worried that kerry could win the presidency, but a republican woodwind that seat, giving them a majority. that law was changed, and now there are giving to change it back. before he passed, he wrote a letter to legislative leaders and said, let's think about allowing an interim successor. they are considering looking at that when they come back from recess. gregg: basically favoring democrats. who is looking to fill the seat? >> it is a sensitive issue. memorial services have not even begun, but the truth is, the jockeying for this position began when his brain cancer was disclosed a year ago or so.

at the top of the lynclist is stephen lynch. he is a catholic from south boston, pro-life. another likely contender, and this special election, is a martha: plea, the state attorney general. -- martha coakley, the state attorney general. hojoe kennedy could also get in the race, and that could change things. many republicans have even been talking about curt schilling. megyn: as you saw, things got

started on a bumpy start for our indian engine ran. they accused much of the crowd for not belong in there at all. wait until you see what happens when he tries to prove that. gregg: and police for when a suspect into a wall. now the suspect is suing. wait until you see the picture that may change your mind. megyn: did you get a stimulus check? hundreds of prisoners did. prisoners. what the fed's are telling us about how this happened. racheting up slowly ) ( whooshing, riders cheering )

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actually, with flat rate boxes you don't need to weigh anything under 70 pounds. if it fits, it ships for a low flat rate. ok, but i ship all over the country. you can ship anywhere in the country for a low flat rate. ship international, too. yes, but i ship hundreds of things, in all sizes. great, because flat rate boxes come in four sizes. call and we'll send a free supply, plus up to $160 in offers. when you're ready to ship, we'll even pick them up for free, no matter how many you have. priority mail flat rate boxes only from the postal service. a simpler way to ship. call or go online now to get started. gregg: did you see this chaos at

a town hall meeting in virginia? jim ran quickly lost control of the event, questioned the identities of some of his critics and the audience, accusing some of them on not even living in the district. he even checked one man's identification card. >> could you please sit down? >> what does this say? [unintelligible] >> let me see your id! gregg: he later apologized -- maybe someone told him to do so -- for questioning his identity. he repeated his support for a government-run insurance plan

and said he does not believe the alternative plan, or co-ops, will help. megyn: that is just not helpful, accusing the objectors of being plants. gregg: democrats have been saying, these people are organizing outside the district, and maybe they are, but most of these people are in genuine, concerned constituents. megyn: can you imagine how you would feel if you go down to this town hall and you are demanded to show your identification, accused as a plant? gregg: what do want to bet that he has lost some votes. megyn: the passage of the stimulus bill, $787 billion, president obama's said joe biden when guard against wasteful spending. you see, a couple thousand

prisoners got some money from you. we are talking about rapists, murderers, you name it. they are going to town on your dime now. now the fed's says, don't worry, we are trying to get the money back. one state actually stopped these checks, texas. with me now is a former court attorney judge. we cannot get over this story. it is too unbelievable to be made up. the social security administration started sending out these checks. at first, "the boston herald" reported that 23 convicts had received a payment. that was not the end of the world, but it turned out there were about 4000 who should not have gotten it. many in texas were shut down.

how did they stop it? >> they just caught it early. we are calling it cash for convicts are around here. megyn: unfortunately, the same thing did not have been in other states. now we are left with this. the fed's and social security administration releasing a statement trying to explain how this happened. this is what they tell us, in part -- do you have faith that the social security administration will be able to recover those payments? >> no, and it is amazing that they would make this mistake at a time when we're talking about

the government taking over our economy. they make this kind of mistake? you wonder why these crowds are saying we do not want government-run health care systems. i know when they can do with that money. they can use it for restitution for the victims of these criminals. megyn: if they can get the money back. when you send a prisoner a $200 check, they will spend it. we have lost that money, have we not? >> i would say so. megyn: so what can we do? the average american citizen sitting at home knows that they get up every morning, plus their kids through school, goes to work, and they keep on seeing their tax dollars go off to these projects, many of which they do not support. the stimulus bill was

controversial. now we find out that half a million of that money has gone to convicts? what is a citizen to do? >> it has a certain amount of humor, but it is serious. i am sure they are pretty upset, as they should be. i thought it was ridiculous that that would even be thought of. megyn: so what is the solution? it feels like they are out of control. how do they stop this type of thing? every administration makes a mistake, but there was all of this pressure to get this bill out. we have not spent very much of the stimulus, what we have spent, it seems that there were mistakes. >> it was probably all done by

computer. someone probably saw that it was going to the state prison system. i guess joe biden was not doing his job. megyn: the department of corrections in massachusetts said that they tried to contact the social security administration in number of times, so they finally delivered the checks. in texas, they decided not to. by the way, we asked to have a response from the social security administration and they refused to take part in such an interview. we appreciate your time. gregg: what a surprise. megyn: if you make a mistake, own up to it. gregg: you might expect to see some nudity in some finer pieces of art, i do at least, but some

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call now or go to lifelock.com. ♪ gregg: a new snapshot at the health of our economy. the government said the gdp shrank 1% in the first quarter. that was a drop, but all lot less than previous quarters. -- a lot less than previous quarters.

these numbers seem to support claims that the recession is over. that brings us to our ongoing series, the road to recovery. we wanted to check in with a shipping company whose business typically heat up this time of year. cowan systems in maryland has 2700 trailers and tractors that it shipped across the east coast. the owner of the company says it is the worst economy he has ever seen. but he actually had a briefing here in 2006, although he calls 2009 the mother lode of badness. brian wilson is in maryland. >> if you had a coca-cola recently and you lived on the east coast, it probably came off

of one of these trucks. joe cowan is with us now. how has it been for your company? >> economy really started deteriorating in 2007. >> you will see the upturn quicker? >> we were leading in the downturn, so hopefully we will lead the upturn. it won on the navy-shaped recovery. i believe it will be u-shaped. >> these trucks behind you are a sign of what you have had to do to adjust? >> we have to reduce our fleet of trucks because we do not have the business to support them. but we are hopeful. our economy can overturn. >> one of the leading economic

indicators in our country is the trucking industry. right now we are not the bottom and hopes we can move the town of this soon. megyn: turning to durable-goods, we found out that those orders rose last month by the largest amount in two years. that is good news, so we wanted to check back in with a wisconsin company that we visited a month ago. since we last visited there have been no layoffs, they offered voluntary furloughs, a 5% pay cut for all employees is still in effect, although i hope to reverse that soon. in some divisions, they have seen an uptick in business. steve brown is live at the company in wisconsin.

how are they doing? >> pretty well, and they are crossing their fingers for a snowy winter. they are putting together their deluxe model, their top of snow thrower -- the line snow thrower. how are you doing right now? >> based on last year's weather, we were out of supplies due to engine supplier. we switched suppliers and we are seeing an increase in sales this year. >> that means that you will be

able to keep on working here, as your family has been doing for generations. is there enough business to keep these people here through november? >> we did what we could to make sure that we could stay employed through the summer. we started our production in early may, which is earlier than normal. we feel confident that the orders will hold together all the way through thanksgiving. we have some early snow, which we think we will, we expect an increase in orders, so we are confident. >> we are up here in green bay, brett favre is a minnesota vikings. good thing or bad thing? >> he is a good player, let's leave it at that. megyn: what a diplomat they had.

by the way, i will be talking to my parents. they will order one of them. it is a practical way to see how things are going at wiehl cos. you can go to foxnews.com and searched for road to the recovery. then you can see all of the videos and other pieces of information we have available. gregg: police chase is suspect for several blocks. now he is doing police for $25 million. the picture that explains why. megyn: and grab your kids from the sand and run, danger, sandcastles! 11 group says that they are in big time danger to the help of your children. -- health of your children.

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megyn: where is shepard smith when we need him? whenever the music comes on, he says, we are tracking h1n1.

i cannot do it as good as him. tests on adults for the h1n1 vaccine started weeks ago, but now children are getting the test shots, too. vaccines tested on children? jonathan serrie is at emory university. is this safe? >> researchers are confident that it is safe. they are the same manufacturers as seasonal flu vaccines, and they gave the green light to this study after one week of adult trials showed no dangers. by the way, some great singing. megyn: i am no shepard smith. [laughter] parents voluntarily put their child in this program, but how exactly does it occur? >> experts will determine whether you can determine the

vaccine -- administered the vaccine at the same time as the seasonal flu vaccine and produce the same immune response. there are other locations around the country and will try to determine the proper dosage, whether or not kids will need to receive two separate 15 microgram doses. megyn: they say that kids and a pregnant women are that most danger of forgetting the swine flu. why is that? >> experts believe that seniors may have had exposure to similar virus that was in circulation in the country between 1918 all the way to the middle of the 20th century, but people born after that, particularly children, have no exposure to any kind of h1n1 virus. megyn: makes sense.

thank you. for complete coverage, foxnews.com. in particular, we have a poll. take our survey. which you think is a greater risk? taking the vaccine or not taking it? right now, 16,000 people have weighed in. they say taking the vaccine is more risky. gregg: building sand castles could make you really sick. this is according to a study from the university of north carolina and the epa. dead and ask for that -- get a mask for that kid. they say it could be a hazard because kids are prone to get sand in their mouth and there is

more the coli bacteria in the sand than in the water. you probably will not feel it until the next day, and you may not realize that you got it from the beach. when you think about it, all the stuff then ends up in the sand -- megyn: that is a good point. gregg: kids that do not have diapers that showed? senior citizens -- just kidding. megyn: you put your hands in the sand, all of these people getting buried. what a great time! you might be covered with more than you know. after the break, police chase a robbery suspect. he runs from the crime scene and

this is how it ended. now the man's family is demanding $25 million. it sounds ridiculous, doesn't it? wait until you see what he looks like today. gregg: and more from a virginia town hall where jim moran got an earful from constituents. >> i know a lot of people are here because they think it is a good bill. believe me, this is not a health care bill. it is about a massive government power grab. [applause] my name is chef michael.

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jane: good morning, everyone. we are covering a story from oklahoma. a pastor killed as she prepares

for a sunday sermon. investigators tell us they are haunted by the method of her killing. jon: in we have learned the body of ted kennedy will lie in oppose at the jfk library for two days. we will be on that story live on "happening now." megyn: kelly's court is back in session. a police take down forever changing the life of man and -- of an innocent man. a man runs into the frame after several blocks of being chased by police. then police pushes him into the wall. he was shopping at a convenience store. a robbery apparently occurred at the store. witnesses told police that he was one of the robbers. he ran, but we do not know why. it turns out, he was not one of

the robbers. it all ended with the bodycheck. the deputy follow procedure, according to authorities. it sounds like he has no case, until you see this. take a look at christopher harris today. he is in a coma, has suffered permanent brain damage, and his condition is irreversible. he was not even involved in the assault at the convenience store. now there is a big lawsuit against the sheriff's department. do they have a case? good morning, johandngentlemen. i have to tell you, i heard he ran from the police, they chased him, and it ended in this.

i thought, this is what happens when you run from the police, but then i saw the picture. that changes things. do we even consider the injuries here? >> no, the problem is when you looked at what the officer did. i am not an officer, and they face difficult challenges every day, but i do not not any police academy that teaches a police officer to take down a suspect utilized for nfl linebackers. my seven-year old knows that when you slam 270 pounds into 180 pounds next to a solid concrete wall, it is foreseeable in injury could result. even worse, i did not need to see that photograph of the person in the bed. i saw the officer flip the man over after he posed no threat.

megyn: but the police did not know that. he is trying to complete the arrest. at this point, he did not know that he was a quadriplegic at this point. he realized after word and call the magic. we have a spot shadow. police say that moment he is hit, he throws something. ok, you cannot really see that there. moments before he is taken down, he throws something away. they say, he ran, what were we supposed to do? >> if we could everyone just a little bit, there was a fight going on. merchandize was taken from a store, and it was basically a

melee. they were following everything on the radio. one woman told her that she knew who did it. she identifies the young man. then the police pursue him. as you said, he did not stop. they start chasing him, but here is where i disagree. we have been on this show watching police conduct that is thousands of times more egregious than a push. we have seen nightsticks, flashlights being used as weapons. >> it does not make it any that -- less negligence. >> he pushed a fleeing suspect. >> you are a very good lawyer to look at the camera with a straight face -- megyn: the police believe with good reason that this man was

involved in the robbery that left three people bloody in a convenience store. they asked him to stop. they chased him for several blocks. what is so excessive about shoving him to end at the foot chase? >> again, calling it a shove or push is not what i'm talking about, he ran into him like a linebacker. that is not what he is trained to do. i do not disagree. he should have stopped. and again, some witnesses are suggesting one thing, and apparently he did not know the police were after him. the police saw him running, and i understand that, but why? >> you are filibustering right now. it is one push. he did not pistol whip him.

he pushed him one time. it is not the felons fault that the officer was 250 pounds. yes, you look at the picture and it is horrible. everyone regrets this. it is unfortunate, but it was an accident. >> i never thought i saw an action -- i would see action where i would think, boy, i wish they had used a tasered instead. megyn: the lawyer representing the victim said that he was slowing down and was trying to put his hands up. >> he did not pose a threat. megyn: take a look at the video. does he put his hand up?

one final word, and then we have to go. >> he cannot walk, he cannot talk, he does not recognize his family. you think they could have used another procedure. >> this was heavily investigated and the police did not do anything criminally wrong. will he get a settlement from the government? yes, his enormous -- medical costs are enormous. megyn: one final word, normally you determine if there is liability. if the answer is yes, do you normally get to the injuries and damages. if a jury goes that route, the plaintiff will likely lose, but if they see the condition that he is in, in the course of the trial, they will decide that the city will pay big. a settlement seemed in order, although there are no villians here.

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megyn: the lapd and lindsay lohan are hoping for your help. images and video of three people accused of breaking into her hollywood hills home, caught on tape. police are called to the scene sunday. suspects are described as two women and one man, ages 18-25. detectives believe that the trio got inside iran on locked door and ransacked the home and took property. there was an attempted burglary

also in may. gregg: seats walking into museums and walking out with priceless works of art. many of the pieces and of being sold right here in the united states. that is not the only way people are getting ripped off when it comes to higher priced art. the fbi now has a task force fighting back. adam is live in los angeles with more. >> our work is safe here. that is the sexy thing to think, about art thieves across the globe. what we found, the fbi has a task force. they go after art thieves and also art fraud, and you brought

up some pieces here that are amazing. explain what we have. >> this is a fake picasso that was confiscated during an investigation by the fbi. it was a $20 million scheme where the perpetrators were selling art on television, live television, in a live auction format, and they sold thousands of pieces to tens of thousands of victims. this is just a piece, an example, the face picasso that was sold for $5,000 or so, and it was probably only worth the paper it was written on. >> what can someone do? what can someone do to protect themselves? >> obviously, when this was being sold on tv, it looked

nice, it was on an easel. what people need to do is find an expert, do due diligence, and save time and effort. gregg: the frames were nice, though. thank you very much. megyn: art is in the eye of the beholder, but some people going to the metropolitan had to cover their children's eyes. we will show you why, next. what's our favorite part of honey bunches of oats? the sparkly flakes. the honey-baked bunches! the magic's in the mix. my favorite part? eating it. honey bunches of oats. taste the joy we put in every spoonful.

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