-- troy aikmen. gretchen: coming up tomorrow, it is september 11. eight years, we will be remembering tomorrow. have a fabulous day. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- bill: this is a fox news alert. we have new and spending questions about a left-wing group known as acorn. fox news have it -- has obtained it in video camera tape showing the organization telling a prostitute had to change her job title on her taxes. they also ask a filmmaker to claim under age girls working as prostitutes as dependents. the video also claims to arrange a home loan for a home that could be used as a brothel.

over the next two hours, we will play selective parts of the video tape. we have a reporter knocking on the door of the acorn office in baltimore where this happened, as well as the man who tracked down the story. this is a fox news alert. we are waiting on remarks from the white house and president on health care reform the morning after the big speech. president obama delivering a speech before congress, but the morning after even some left leaning lawmakers say that the president did not answer all questions about the overhaul. some say the president was not forthcoming about actual policy changes, cuts to medicare, and abortion funding tied to the democratic bills. much more on that. welcome to "america's newsroom. -- "america's newsroom."

megyn: the cost of overhaul was a major factor in this effort. he said getting rid of health care waste and inefficiencies will cover the bulk of the $900 billion plan, but even that raises doubts. bill: richard lowry is the editor of the "national review. we were polled on this question yesterday about americans being less confused after the president's speech. so, are they? >> he probably helped himself in the near term. he is just such a a-list performer when he gets in front of a teleprompter. i think the problem with his speech, the white house and obama think they have day lying problem when they really have a tax problem. the facts do not line up. -- a facts problem.

he says no one is going to lose their coverage, but that is not true. he said there will be no deficit spending. well, with the planned on the hill, that is not true. bill: both of those points were pointed out in the article that i read, too. >> also, offering the most elaborate free lunch in the country, if you believe what he said. we are going to cover more people. everyone who has coverage, your coverage will improve, and it is not for the cost anyone anything. and he is going to pay for this parley with hundreds of millions of dollars in medicare cuts. he said that this is not going to affect seniors, but they are going to be worried about this because it does not make sense that you can cut this much out

of the program and it will not have any axe. bill: -- any effects. bill: apparently there are millions of dollars already being wasted, so i am all for that kind of reform. >> if you can really do that, use it to save medicare. his contradiction -- he says medicare is one of the greatest government programs ever, but at the same time, he says it is wasting money. bill: i listen to everyone up and down the line and i come back to the same three points. the price tag has not changed, republicans are not in on the deal, and democrats are still divided. so one could argue that we are in the same place that we were yesterday. megyn: critics suggest that he delivered a not so subtle

message to republicans last night masked in political code. was this the president making it clear that the democrats can and should use the process of reconciliation? that would be pushing the bill through with just 51 votes. >> i will not waste time with those who have made a calculation that it is better politics to kill this plan than to improve it. [applause] i will not stand by while the special interests use the same tactics to keep things exactly the way they are. if you misrepresent what is in the plan, we will call you out. [applause]

and i will not accept the status quo as a solution, not this time, not now. megyn: using reconciliation to get this health care were film rigid reform bill would be a political hot button, to say the least -- reform bill would be a political hot button, to say the least. bill: in the meantime, there are still serious questions about what kind of bill the democratic house could pass. we just mentioned this. there is a split between the moderate and liberal democrats, and that is posing a problem for nancy pelosi. so far, 44 house democrats are on the record saying they oppose the health care bill in their current forms. many of them on known as blue dogs. they oppose the government option in the house bill, but 57

liberal democrats say they will not vote for a bill that does not include the public option. there is a split on the democratic side, and we have been talking about that a lot on our network. this is democrats versus democrats. megyn: this is a fox news alert. we have breaking news on the left-wing group acorn, the association of community organizations for reform now. this is shocking and disturbing video coming out this morning. this is undercover video from an office in baltimore, maryland. eric sean is with us to explain what you are seeing and what its significance is. >> workers caught on camera

telling a supposed prostitute to hide her occupation, classified under age girls that could be working as prostitutes as dependents, and willing to arrange a housing loan for a home that could be used as a brothel, and yes, please join us for $120. those were the claims from man undercover investigative filmmaker. the film maker is a 25-year-old who pretended to be a law student. he went to the office with his associate and they said that she was a prostitute. they wanted to get a loan to buy a home for their business because banks have turned them down. then one tax specialist said that her occupation could be described as performance artist, for tax reasons. >> the type of business -- let me see if there is a code for

it. >> for prostitution? >> i need a name and a code number. i am going to look into it. >> then we can get the right tax code? >> your business is a performing artist, which you are. you are not lying. so stop saying prostitution. >> there were 13 under age girls who were apparently going to be imported from el salvador to turn tricks. she said that they should be classified as dependents or exchange students. and they were told while prostitution was illegal in maryland, those girls should be going to school. >> i was prepared to call the police and army out of the

office. i wanted them to help me every way they could. they did everything they could to help us. i was shocked. >> they have harsh words for thin response -- by the way, those tax forms were never filed and they said they did not join the organization. one of the workers encouraged them to be quiet about their business, saying loose lips sink ships. megyn: unbelievable report. thank you. if you want to see more of the video, we will have more for you in about 20 minutes.

we will give you some more of with an extensive report, including clips that you have not seen. we will also have the man behind that the website to talk about what is on these tapes, and what this could mean. we will also be discussing the legal implications. bill: shannon bream is at the acorn office in the city of baltimore. we will see what she is learning today. in the meantime, talk about a disturbing tape. high-school students taping run- up -- takinping brass knuckle brawls.

>> i am not the first president to take up this cause, but i am determined to be the last.

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megyn: in the president last night making a push for health- care reform of for more information on how of his plan would work, and how to pay for it, but still, the president remains the specifics remain fuzzy. >> improving health care only works only if everyone does their part. well there are significant details to be ironed of -- [laughter] i believe a broad consensus exists for the plan i just outlined, consumer protections for those with insurance, and a change that allows individuals and small businesses to purchase affordable coverage, and the

requirement that if you can afford insurance, to get injuresured. megyn: so what exactly are those details to be ironed out? joining me now is gov. ed rendell. the president said we had a lot of details to work out. here is how i plan on denali funding this. don't worry, i will not touch medicare. -- here is how i plan on funding this. will there be service cuts? >> interestingly, i think we need to look at everything that the president said. talking about fees against cadillac plant. secondly, the trigger. there could be upcoming spending

cuts. you are right, the details need to be ironed out, but this is a big commitment he is making to financial stability. as far as saving money and getting rid of waste, in medicare, or any other part of the health-care system, megyn, it can be done. let me give you an example. in 2006 in pennsylvania our health care system spent $3.8 billion on the cost of treating hospital-acquired infections. in 2006 we passed a tough bill that regulated how hospitals had to do with those infections. in one year we cut 8% of those costs and saved $358 million in charges going out to businesses and people who pay for health care. that is one little example. don't tell me and my fellow governors that we cannot render a tremendous amount of savings

over time. the trick is, those savings will take several years to kick in, and the issue is how we bridge the gap. megyn: lots of people are wondering -- let me ask you this question. if there are so many savings to be found in medicare inefficiencies, how come we are not just doing that? forget about this bill. then president obama and everyone else can work on clearing of these problems. why tie that to health care reform? >> there is a reason we have to act now. if you lose your job, and what you are looking for another one, you develop breast cancer -- megyn: i understand the argument president obama made. >> you cannot get covered, we cannot tolerate that.

megyn: i know that. >> we cannot tolerate it. if you get sick in this country, you lose your coverage. we cannot tolerate that. megyn: we listen to the president and heard him for about one hour -- we are not interested in a repeat of his speech. >> but it is true. megyn: but everyone already heard that. if we can find all of these savings in medicare and medicaid, why not do it now? mine does it need to be tied to all of these reforms -- why does it need to be tied to all of these reforms? >> i disagree that most people believe this is controversial. we need to fix this system. people are losing health care every day in this country. 560,000 people were dropped from

the employer health care last year in pennsylvania. the chamber of commerce, ama, they are all for reform. they know that we have to do it now. the president is trying to be responsible, is trying to develop a plan that will not add to the deficit, and may actually reduce the deficit. as you know, health care is the biggest driver of our deficit. megyn: we appreciate you being on. bill: and that is still short of the t.a.r.p. plan? sooner or later, it is going to be real money. we showed you some of the disturbing allegations about acorn. workers telling an undercover film maker that they could use homes for a prostitution home. megyn: and this is not staged.

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megyn: in massachusetts each reopens after a great white sharks were spotted off the coast. the beaches at chatam, however, remain closed. the marine biologists tagged five great white off the coast, the first time they have done so off the atlantic. i have a sister-in-law who lives

on the cape and i was like, all these great white sharks! she said no one is talking about it. [laughter] bill: how to get ready for anthe possible h1n1 of brick. molly henneberg has more. -- outbreak. >> so far everything is going pretty good, it seems. we spoke to help officials in boston and new york city. some are expecting h1n1 to hit harder in these types of cities because of the cold weather and some many people packed together. so far, preparations are being

made. >> we know how difficult the budget situation is for states and localities. it is clear the government is taking this seriously by making sure resources are not in question and it comes to protecting the public. >> she says the guidance they are getting about the flu and indicate that it may hit a lot of people, but so far, it seems to be a moderate form. bill, so the federal government is communicating with -- bill: so the federal government is communicating with states? what are they hearing back? >> states and local governments are the ground force for keeping track of the flu. the white house is hearing from them in person. take a listen. >> white house officials invited a group of local health commissioners, myself included,

and some state health commissioner, to talk about what we were seeing on the ground level, what kind of support we were looking for, where we were anticipating there could be challenges. >> the city of boston is expected to get $3 million in federal grant money to help with vaccination and awareness campaigns. bill: thank you. also, for the latest on the flu, go to foxnews.com. in the search page, type in h1n1, and we will separate fact from fiction for you. megyn: president obama on offense last night, talking about a bogus claims made by radio talk-show host, cable television personalities, and even lawmakers.

so what is the response? bill: and we are three minutes away from more highlights from this undercover video from acorn workers. one of this offering tax advice to the supposed prostitute. >> basically make sure you have someone you know who you trust. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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bill: we mention this at the top of hour. we have obtained it in camera videotape showing acorn workers telling a supposed prostitute had to change her job title on her taxes. they also tell the undercover filmmaker how to claim under age girls who could be working as prostitutes, claiming them as dependents. shannon bream is reporting from the baltimore office. she has more. what have you found?

>> office is just a few doors down from here. so far no one has shown up this morning, but we have plenty of questions for them. we will bring you that tape as soon as we can confront them. first of all, they say that this office can give you some tax assistance, and they will help you figure out the earned income tax credit. they also claim to help you on certain programs like food stamps. housing services also. that came to play in that hit in video. they talk about mortgage counseling, first-time buying class, and closing costs. -- hidden video. of course, that is what they claim. we will be confronting them on the other things.

bill: alleged prostitution? >> that's right, a couple of people went into the office asking for a home loan. they also talked about bringing in under eight women from out of the country to buy a house and set them up to turn tircks. -- tricks. here is one of the workers. >> what if they are making money because they are turning tricks? >> i do not think you should let anybody know about that. >> that is what we said to the bank, and they kicked us out. >> they were advised to report them as independent -- depen

dents. we will be asking them when they open up. we hope it is not too long. megyn: this is unbelievable. we are going to move on, but the state is incredible. do you realize what you are seeing? this group receives taxpayer money. your money is going to acorn. did you see what was happening? we are going to have more on it. in the meantime, president obama saying he wants the bickering to stop in his push for health-care reform, but will comments like this one help? >> the claims made by not just the radio and talk show hosts, but by prominent politicians,

that we intend to set up panels of bureaucrats with the panel -- power to kill all senior citizens. such a charge would be laughable if it was not so cynical and irresponsible. it is a lie, plain and simple. [applause] megyn: some pretty strong accusations, so how are those on the right responding? jeb hensarling is my guest now. good morning. misinformation and lies from republicans in congress, a cable tv, radio. you fall into one of the categories. how do you respond? >> i do not think the president could figure out if he wanted to call us names or sit down and negotiate with us in good faith. it was not a particularly helpful tone.

the bottom line is, a government-run system, whether it is in canada or the uk, people die waiting for service. i know that is not the intent, but it is happening. that is why you have such outrage from the american people. megyn: so that is you addressing the death panels. he also took issue with criticism for providing insurance for illegal immigrants. he says we are not doing that. is anybody still maintaining that they are covered by these proposals from democrats? >> absolutely. i'm not questioning their purpose or intent, but on the one hand they say illegal immigrants cannot get this

health care, but on the other hand, they take away verification of citizenship. republicans in the committee offered an amendment that said if you are going to get government benefits, at least prove you are a citizen. that was voted down on party lines. megyn: this is an interesting point. fish and illegal is in the country and they believe government health care is good for them, what do they need to show to get it? proof of citizenship, a green card? nothing? >> republicans are trying to inshore -- ensure that that does not happen. basically, i am an american, give me the benefits. any human being walking into an

emergency room with a legitimate problem -- we are going to take care of them, but we cannot have this magnet of free health care and take away the enforcement mechanisms. with all due respect to the president, the american people do not believe it. megyn: what about some of these items where he reached across the aisle, like tort reform? you have to stop the lawsuits against all of these doctors. it is driving up their cost and is making insurance unaffordable. the president finally said that he is at least going to push for states to experiment with this to see what could be done. it is bad enough for you? >> -- is that enough for you? >> we have been tried to meet with the president since may to

negotiate this. talk to any doctor in america. they will tell you a quarter of the practicmedicine they practis defensive. we need real reform legislation, but what we heard last night was, i am willing to study the other ideas. that is not exactly needing us half way, but i guess it is a baby step. but given the fact that trial and personal injury attorneys are such a huge part of the financial base of the democratic party, i have a hard time believing that it makes its way into the law. megyn: even howard dean said that that is the reason that it is not in the bill. not me ask you this. people were saying president

obama needed a hail mary last night to change the poll numbers, to change the american perception, even to get moderate lawmakers on his side. did he do it? >> i don't think so. what i heard from the american people, particularly, over the last couple of months, was an overwhelming force that they do not want government getting in between them, their families, and their doctor. i do not think the president hears that message. he is a great speakers. -- he is a great speaker. i understand that, but last night, he had a larger megaphone than usual. megyn: you cannot see the monitor but we are awaiting the remarks from the president on health care reform. apparently he is going to make some additional remarks at 10:15

eastern time. we will see if the president believes he got it done. thank you. folks, we would love to know what you thought. go to our website, foxnews.com, and click on the youdecide link. has the president changed your mind on health care? 8% say that it did. 91% of you say, nope, it did not do anything. bill: this has nothing to do with congress or the white house. meet the merkel dr. that works with the new york giants. -- miracle doctor networks with the new york giants. megyn: did you see this yesterday? a hijacker holding an airplane

with more than 100 people at bay with a juice can. you cannot make this up. what is weirder, why he had to take over the plane at insurance. nice work, everyone. exec: well, it's easy for him. he's a cute little lizard. gecko: ah, gecko, actually - exec: with all due respect, if i was tiny and green and had a british accent i'd have more folks paying attention to me too... i mean - (faux english accent) "save money! pip pip cheerio!" exec 2: british? i thought you were australian. gecko: well, it's funny you should ask. 'cause actually, i'm from - anncr: geico. fifteen minutes could save you fifteen percent or more on car insurance.

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can to take over the plane. bill: juice can, folks. all this talk about health care reform, do not wait for it. if you have chronic pain, you have taken painkillers, maybe even surgery. forget about it. dr. robert stefano works for the new york giants. the players call him a miracle worker. you have a new book called "muscle madison." full disclosure three years ago, i could not pick up a phone book with my left arm. my shoulder was messed up. i found this guy and within one month, you gave me free range of motion. >> in health care right now we

have amazing diagnostic ability. we are able to see things in the joint that we were not able to before, but with that ability we are also picking up things that could be incidental, things are not as important to the movement of the muscle. sometimes people are scared to look for surgery when we find these things, and it is not that they are unnecessary surgery, but it is avoidable. bill: how much more physical therapy will i have to go through before i get back to my old self? you say often not the muscle get overlooked. what can you do to make sure that you get good range of motion? >> often, when a muscle is injured, it shortens and tightened. so what we do is we put pressure on the muscle and we went and it. -- lengthen it.

bill: what are the people doing more of this thing? >> there is not as much treatment between the doctor and patient right now, the art of manual manipulation. bill: so you say there is hope. there is not end until that does not -- an adult that does not complain about some joint problem. this book helps to do it, but i am dubious because i do not think people read this stuff. i think it is based on the discipline of the individual. how can you convince them? >> you still need a physician or a chiropractor to help you understand exactly what is wrong with you. this book is a supplemental book that can help you with the

treatment you are getting. we believe this can help you take control of your own health and do some of the treatment yourself. bill: we have a senior producer who is popping advil every day. go into the control room and fix his ankle. . it can be tough living with copd... but i try not to let it slow me down. i go down to the pool for a swim... get out and dance... even play a little hide-n-seek. i'm breathing better... with spiriva. announcer: spiriva is the only once-daily inhaled maintenance treatment for both forms of copd, which includes chronic bronchitis and emphysema. i take it every day. it keeps my airways open... to help me breathe better all day long. and it's not a steroid. announcer: spiriva does not replace fast-acting inhalers for sudden symptoms.

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megyn: cellphone technology surely back-to-school is not what it used to be. take a look at this. kids being boliviating the livig daylights out of each other. this is just outside of memphis.

40 students participated in a fight straight out of the movie "bfight club." what is going on? >> 28 memphis area teenagers have been summoned. three will be charged as an adult because ithey are 18. all because they wanted a few minutes of fame on youtube. >> me after school fights are nothing new, but there is a growing trend. probie doyou are watching one sh school fight to the finish. it will not end until one of the two fighters is knocked unconscious or seriously injured

>> this is the park in tennessee where the fight took place. some parents were surprised to learn that their teenagers were involved in an underground fight club, just like the one in the movie. >> the first rule of fight club is you do not talk about the cyclops. >> they were filming them. there was some level of competition to see how many hits you could get on the youtube site. >> everybody was talking about getting money. >> there was money involved? >> yes. >> and also branching rights on youtube. >> 115-year-old faces aggravated assault charges -- one 15-year- old base is aggravated assault charges.

>> my grandson was defending himself. >> he did not start the fight? >> to my knowledge, no, sir. >> he was not active in the fight club? >> no. >> the fights have been removed from youtube. you can find hundreds of examples of other back-to-school beat downs across the country. what is driving teenagers to do this? >> we have created a culture where we have essentially encouraged to these kind of behavior is because people will do anything to get attention. attention is the metric by which they value themselves. >> the 15-year-old pacing and aggravated assault charges will appear in this court in just a little while with his grandmother. we will find out if the court vice his story -- buys his

story. bill: so much hasn't changed since we were in high school, except for cameras, computers. after years of raising questions about voting fraud and other criminal enterprises, acorn face a more doubts. the leftwing group caught on camera. you will it next. art. just two times a week saves my family over $500 a year. save money. live better. walmart.

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- megyn: this is a fox news alert. did the president to get it done last night in his big push for health care reform? he may not think so. he is about to give another address moments from now. a new round of from marks on the battle for health care reform. that is where we began this morning in a brand new hour of "america's newsroom." i am megyn kelly. bill: i am bill hemmer. things are popping. megyn: [laughter]

what have you heard? bill: last night, president obama laid out his game plan for a health-care overhaul. we're not sure exactly what the president has to say this morning. in a few minutes, we will know. we will take you back to the white house. megyn: in the meantime, this is a fox news alert. back to the acorn workers caught on undercover videotape telling a prostitute how to hide her occupation on her tax forms. and apparently willing to help arrange an acorn housing loan for a house that could be used as a brothel. acorn workers were caught on camera. we will roll that for you in a moment. in the meantime, we are joined

by the man behind the posting of this thing online. he was the person who first got his hands on this videotape. he will tell us more about the circumstances. andrew, i'm glad to see you. we will show about two minutes of this tape. first, i want you to set it up for us. to the extent that you can tell us, how did you get your hands on this? what exactly do we believe is happening on the tape? >> james is a 25-year-old independent filmmaker. the best i can describe him is he is a cross between morley safer and sasha barron cohen. he played the role of a pimp with a prostitute and went to

the baltimore acorn office to try to get help in getting housing to run a brothel for under age prostitutes. megyn: he is expecting that he will get bounced out on his ear. he is telling them flat out. he said, i have more than a dozen girls coming in from all salvador. they are under age. how do i take care of them and how do i get my business classified in a way that i can get a home loan? that is what he is asking. >> and every step of the way, he telegraphs what he is doing. it is pretty extraordinary to watch the video. it is at biggovernment.com. every step of the way, he says

that he is a pimp and that she is a prostitute, and they have been discriminated against at banks, and they're coming to acorn for help. megyn: take a look at part of the clips. we will show you just did a bit. >> is it against the law in maryland, prostitution? i want to know specifically. >> anything -- it is always against the law. >> let's see what we have here.

you're going to have to name this something else. let's see. independent artists. you could be that. dancing? >> it is not dancing, trust me. sex is kind of like dancing, right? >> i am thinking -- what is the name of the place downtown? these usually go under performing arts. yes, these will go on the performing arts. that is what you are. $9,600 for the year. you have to have a certain clothing so we can write off.

you have to have certain crew grooming, ok. do you provide gifts or some kind of incentive to your clients? >> how many condoms did you buy it last month? >> you don't travel? >> they travel to her. >> we could write off at least $7,000. megyn: this is in an acorn office. by the way, is that a toddler a year in the background? >> you can hear at least a single child. megyn: this is inside the baltimore acorn offices?

>> this is in the housing division, not the voting division. megyn: acorn spokesman has said that they have tried this elsewhere and they got thrown out. we played your edited version of part of the tape. he seems to be suggesting the you have misled or have sliced and diced it in a way that would lead to misleading. >> in the spirit of transparency -- james came to me and i saw the edited version. i said, in order for us to put us on the web site, we were going to provide to the public a full airing of the audio, the beginning, middle, and and, and

a full transcript at big government.com. you can hear everything. it is extraordinary. you do not seek any one fla inch. they seem excited to try to help turn this business into a legitimate business. they know it is a prostitution ring. they're trying to figure out how to turn it into a legitimate business so they can use government property in order to run a prostitution ring with underage girls from all salvador. megyn: acorn receives taxpayer money. since 1994, they have received more than $53 million in federal funds. and under the new stimulus bill, they are eligible to receive another $8.5 billion

worth of stimulus funds because this group ostensibly helps lower and moderate income people obtain housing loans, among other services. it is not set up to help prostitution rings. andrew, has this date been turned over to the authorities? do we know anything about potential criminal charges? >> james is the film maker and the producer of the film. biggovernment.com has no relation to the video. we are not the producers. megyn: this is the first day of a significant new website. and the entire tapes are posted now. >> the audiotape and the

transcript. you can see james' video, the edited version. most people will probably not listen to the full hour of the audiotapes. megyn: we will have our legal panel weigh in on what this could potentially mean for acorn. thank you very much for being here. bill: this is a fox news alert. breaking news from the white house. in a matter of moments, we will hear from president obama on health care. what is the next message after the major address last night? major garrett is at the white house. what is this all about this morning? >> you do not give a big speech to a joint session unless you spend the next a reinforcing it. the president will reinforce many of the most memorable themes.

he will also stand next to the american nurses association. they will give their endorsement to his plan. that is not new news. the american nurses association did the same thing in the rose garden just a few days ago. we are getting a replay of their support for the president's overhaul on health care. he will also introduce new government statistics. the white house says it will underscore the need to move rapidly on health care reform. bill: just to be clear, is he highlighting his themes from last night, or will there truly be new material? >> this will not be new material. the speech last night is the new material. it will be the new material for a good long while. it is designed to move legislation and move it more rapidly than democrats were contemplating before, and to elevate the political numbers behind what the white house now

hopes the country will believe is the obama plan, not necessarily the congressional democratic plan. what he is for and what he wants congress to do, having laid out those markers last night. bill: you may remember the mention of tort reform. the republican congressmen who deliver the republican reaction is a part surgeon. charles boustany is a guest on our program today. he will talk to us. maybe we will do it just like last night. the president leaves and the stehe will follow. he is accused of design in the attacks behind 9/11. we have only seen two images of khalid shaikh mohammed. this is the image from 2003. what does it six years at gitmo

due to you? you will see. megyn: acorn workers caught on tape giving tax advice to a couple reportedly looking to set up a brothel using underage girls. shannon bream as at the office where this happened. she has an update. we will ask our legal panel about this. can someone here -- could the group itself face criminal char? >> i do not care. i really do not care. >> no one else has helped us. you're the one who will allow us to do this. that is why we're so grateful. no one else will help us. >> you will live in this house. >> it is my house and these are just guests who will come.

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we are waiting on the president. we expect him to comment on health care reform. we will bring that to you in a matter of minutes. what will he say today? we will let you know when president obama appears. tort reform, they must for republicans, got at least a mention last night. >> i do not believe malpractice reform is a silver bullet, but i talked to enough doctors to know that defensive medicine may be contributing to unnecessary cost. [applause] so i am proposing that we move forward on a range of ideas on how to put patients' safety first and let the doctors focus on practicing medicine. [laughter] i know that the bush administration considered authorizing demonstration projects in individual states to test these ideas. i think that is a good idea.

i have directed my secretary of health and human services to move forward on this initiative today. bill: louisiana congressman charles boustany is a heart surgeon. he delivered to the republican response last night. good morning to you. you have defended yourself in malpractice lawsuits three times in two decades. you know about this tort reform. how did you receive the message last night? >> he did give lip service to tort reform. we need to know if he is really serious about this. it is a real issue. it is one of the cost drivers. doctors practice defensive medicine regardless of where they are or what specialty. a drive up the cost. it is a real issue and needs to be addressed. bill: he mentioned this pilot program that started in the bush administration.

how did the experiment turned out? >> we know a number of states have moved forward on the tort reform measures. some of them have been very successful. we need some direction from the president on this. he needs to be more definitive about what we're going to do. tort reform, medical liability reform needs to be a part of any package. hr-3200 makes no mention of liability reform. bill: are you dubious? you know this topic as well as anybody. do you honestly think the white house is serious about this? >> i do not think so at this stage. we're hearing the service about the issue. we need to see action. the problem is that the president says one thing in the speech. we have a bill in front of us in congress which has already gotten through three committees in the house, and it is slated to come to the floor for a full

vote. that is the legislative vehicle we are looking at. this needs to be a serious effort. as i said last night, let's get back to the drawing board. let's get a good bipartisan broad consensus piece of legislation together that the american people can be proud of. bill: i heard your address last night. we have 20 seconds left. if you want to get a bill passed in the house, and some democrats say i'm not going for this deal, and some say i'm not going for the deal. you need the republican votes to get it passed. if you put the tort reform in there, would it get republicans to support it? >> if you put tort reform in the bill and get out the government- run plan, now we have room for some compromise. bill: you heard it here. charles boustany, thank you. megyn: we are tracking your

taxes. today that takes us to william la jeunesse in santa monica, calif. >> congress has dumped about $3 billion of your tax dollars onto the beach only to have the money washed away. that story is coming up achoo!

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bill: we have new photos of khalid shaikh mohammed, a self- proclaimed mastermind behind 9/11. the red cross took these pictures on july 2 they were never intended to be released to the public. this image shows him wearing a white robe and a bread headscarf -- red head scarf.

many are more familiar with this picture. megyn: we used to call it our earmark of the day. now we're tracking exactly where your money has gone. places like the beaches of our southern coast. since 1997, commerce has poured $100 million -- congress has poured $100 million per year into beach erosion projects in san diego and miami beach. william la jeunesse is tracking your taxes. >> the sad part is every time that taxpayers paid to d rag sand from out there to here.

>> it is the worst type of pork barrel projects. >> congress dollars of to $100 million in sand onto american beaches every year, only to have it washed away again. from new england to florida, north carolina to california, coastal communities lobby congress for money to buff up pages. >> this is another part of maintaining an absolutely critical asset and basically the reason why most of us move to the coast in the first place. >> the beach in california cost taxpayers $14 million. the mayor says it is worth it. >> when you think about how important the beach is to people's quality of life, is money well spent.

>> taxpayers put $4.5 million into one beach in mississippi. the first winter storm took it all away. megyn: william la jeunesse, thank you very much. bill: he always gets the worst place to report. as promised, we are watching the white house. president obama is in the room now. he will deliver remarks in a matter of minutes. major garrett tells us that a group of american nurses have gathered there. the president will try to drive home the message that he drove home last night. and the american people cannot wait. we will see the president in a matter of minutes. this is the morning after a major speech last night. millions of americans watched to find out what is in it for them. in a matter of minutes, we will find out the poll up message live from the white house.

>> the plan that the president presented will help address these injustices. they will improve our ability to give care, and will bring greater stability and security to all americans. those who have health insurance today, and those that do not. we believe a health-care system that his patient centered, accessible, and delivers quality care for all is something that should not be bipartisan or political issue. nor the target a scare tactics that no medical professioprofesl should support and condoned to the only thing america should fear is that another year my past -- another year might past without these needed reforms. on behalf of america's nurses

and the patients that we serve, thank you, president obama, for speaking out for the millions better left behind by our nation's broken system. thank you for fighting for meaningful health insurance reform. nurses will stay on the front line of reform because the cost of inaction is just too great. it is now my great honor to introduce to you, of the president of the united states, barack obama. [applause] >> hey, guys. thank you. thank you. thank you. thank you so much. it is good to be with all of

you. please sit down, everybody. it is just great to be with the nurses again. it is great to be with becky. i want to make sure i get them in order. this is linda. that is sonia. i want to thank all of them. i want to acknowledge dr. mary wakefield, our highest ranking nurse in the administration. [applause] thank you, becky, for your leadership on behalf of nurses. i want to thank you for leading an extraordinary organization, the american nurses association. [applause]

i was mentioning the first time we met when i was in the state legislature. one of my strongest allies in springfield, ill. was the american nurses association and we did a lot of work together to make sure nurses were being treated properly, getting paid properly, getting the overtime that they needed, getting the time off that they needed. i have a wonderful pastry working side-by-side with all of you to make sure we get the best health-care system world. as a consequence, i want to say thank you for all the support you are providing for health insurance reform for the american people. i'm so pleased to be joined by all of you. i just love nurses. [applause] i do not know what it is.

i love nurses. michelle knows about it. [laughter] it is ok. i will never forget how compassionate and health professional and help dedicated nurses have been to michelle and i when we needed it the most. when our daughters were born, one of our best friends is an ob/gyn. the truth of the matter is, we only saw her for 10 minutes. this is one of our best friends. the rest of the time, we spent with the nurses. the major michelle was doing all right and cared for our newborn babies. when our youngest daughter was diagnosed with meningitis when she was just three months old, it was one of the serious

moments of my life could we had to have a spinal tap administered. she was in the hospital for three or four days. we did not know if she would be permanently affected by it. it was the nurses who walked us through what was happening and make sure that sasha was ok. that continues in the joy of birth, and also in tougher times, when my mother passed away from cancer, and when my grandmother passed away. each time, the nurses were there and provided extraordinary care and extraordinary support. i am thankful for that. as a father and as a son and as a grandson, i will forever be in debt to the women and men of your profession. i know that millions of families

feel the same light. you are the bedrock of our medical profession. you are on the front lines. [laughter] [applause] you are on the front line of health care and small clinics and large hospitals all across this country. few people understand as well as you like today's health care system so badly needs reform. [applause] one part of the problem is the uninsured. this morning the census bureau released new data showing not only does the poverty rate increased last year at the highest rate since the early 1990's, but also that the number of uninsured rose in 2008. we know from more up-to-date surveys but since the recession intensified last september, the situation has grown worse. over the last 12 months, the

ranks of the uninsured has swelled by nearly 6 million people. the 17,000 men and women every single day. we know that during this period of time, the number of adults who get their coverage of the workplace has dropped by 8 million people. i do not have to tell you about all the problems that have plagued the health-care system, and the fact that they do not just affect the uninsured. most americans do have insurance. they're subject to the whims of health insurance companies. many people fear that they will lose their health insurance if they move, or if they lose their job, or if they change jobs, where the insurance just will not cover them when they need it the most. insurance companies can deny coverage if a person has a pre- existing condition. there's no cap on how much a person can pay in out-of-pocket

expenses each year, many others fear that a single illness will leave them in financial ruin, even if they have insurance. i get letters from people every day. i just got a letter from a woman two days ago who had been changing jobs. she had just gone to sign up for her new blue cross blue shield policy, but in january, before she had taken her new job, she felt a lump. she was referred to get a mammogram. she found out she had breast cancer. the new insurance policies said this is a pre-existing condition and would not cover it. this happens all the time, all across the country could we see this every day. it is heartbreaking. it is wrong. nobody should be treated that way in the united states. [applause]

the reason i need nurses so badly is because now is the time to act. i will not permit reform to be postponed by the usual ideological diversions. [applause] we do not need more partisan distractions. if there are real concerns about any aspect of my plan, let's address them. if there are real differences, let's resolve them. we have talked to this issue to death a year after year, decade after decade, and the time for talk is winding down. the time for the three house passed. we are not the first generation to pick up this cause, but we have to be the last. -- the time for the trbickerings past. [applause] >> so just in case folks were

not ttuned in last night, if they were watching "so you think you can dance -- "-- [laughter] let me explain what it will need for most americans. as folks go about their everyday lives, one thing they will not have to worry about as much as their health care. it will provide more stability and security to those who have health insurance. it will provide health insurance to those who do not treat it will slow the cost for our families and businesses and our government. for the hundreds of millions of americans who have health insurance, nothing in this plan will require you or your employer to change the coverage or the doctor you have. nothing will change for you if you have insurance.

nothing in the plan will require any changes. this plan will make the insurance that you have worked better for you. it will put in place strong consumer protections that will make it illegal for insurance companies to deny a person coverage on the basis of pre- existing conditions. [applause] we will make sure that we place a limit on how much folks have to pay for out-of-pocket expenses. for the tens of millions of americans who are uninsured, we will create a new insurance exchange, a marketplace where uninsured americans and small businesses can choose health insurance at competitive prices from a number of different options. by pooling them together as one big group, we give insurance companies an incentive. as i've said from the outset, and repeated last night, one way

to give people a real choice when it comes to their health care and keep insurance companies honest is by making one of the options available in such a marketplace and not for profit public option. [applause] but let me just repeat because this is the source of the rumor that we are plotting some government takeover of health care, it would just be one option among many. no one would be forced to choose it. the vast majority of people will still be getting their health care through private insurance. will cost $90 billion per year. that is real money, but it is far less than we have spent on the iraq and afghanistan wars. [applause] and it is less than the tax cuts

for the wealthiest few americans that congress passed at the beginning of the previous administration. the cost of this plan will not add to our deficit. the middle class will be rewarded with greater security, not higher taxes. if we're able to slow the growth of health-care costs by just a fraction of 1% each year, we will reduce the deficit by $4 trillion over the long term. by the way, when we stop spending money on things that do not improve quality, then we can start spending money on things that do improve quality. [applause] for example, we can start paying our nursing professors more money to train more nurses so that we can actually have the quality of care that we need. [applause] just a random example that i chose. [laughter] amid all the chatter and the

noise on radio and tv, with all the falsehoods that are promoted by not just talk show host, but sometimes prominent politicians, sometimes it can be easy to lose sight of what the debate is all about. it is about stores like the one told by an oncology nurse. a few weeks ago, she wrote a blog post about a patient in his 60s, a recent grandfather, a steelers fan. [applause] he spent the last three months of his life worrying about medical bills. she said, open, my patient thought he had planned well for his health care needs. he never thought he would wake up with a diagnosis of leukemia, but which of us does? she said, that is why we need health care reform. that is why we need health care reform. i am absolutely confident that

if you continue to do your part, nurses, you guys have a lot of credibility. people trust you. if you are out there saying it is time for us to act, we need to go ahead and make a change. if all of us do our parts across the country, we will bid farewell to the days when our health care system was a source of worry to families, and america will finally joined the ranks of every other advanced nation by providing quality, affordable health insurance to all of its citizens. that is our goal. we will need it this year with your help. thank you very much, everybody. god bless you. [applause] bill: some of the same things we heard last night in the speech before a joint session of congress. a new fact, the number of americans that lose their insurance every day, according to the president, they say about 17,000 americans lose their insurance every day.

there was no reason given. that was one of the new facts given by the white house. we want to know what you think. go to our web site, foxnews.com. click on the you decide link. we are asking if the speech from last night helped to enjoy mind on health care. right now, more than 61,000 votes are in. 8% said yes. 92% say no. megyn: a lot of newnurses are riding in to this one says that the american nurses association is only 180,000 while there are 2.9 million nurses in the united states.

in the meantime, there's this. kelly's court is back in session. on the docket today, acorn workers caught on camera, appearing to tell a suppose a prostitute how to hide her occupation for tax purposes. also, how to classify it under age prostitutes as dependents, and willing to arrange an acorn housing loan for a house that could be used as a brothel. >> you're not going to issue them w2's. they are under 16. so you do not worry about that. you can use them as a dependent. >> ok. >> you can use them as a dependent because they live in your house, especially because they're under 16.

you are taking care of them. >> yeah. what if they are making money? they are performing tricks, too. >> you should not let anyone know, anyway. >> that is what happens. we told the bankers and they kicked us out. megyn: after running video like all of that all morning, shannon bream knocked on the door of the acorn office in baltimore where this happened. >> we just wanted to see if we could get a response about the video. >> if you have any questions, contact our national communications person. >> ok, thank you. megyn: that national communications person issued a statement that said that this is

false and defamatory. the film crew tried this and other offices and failed. acorn wants to see the full video before commenting further. these are potential crimes shown on the state. should criminal charges be in store? let's ask our panel. and defense attorney and a trial attorney join us. we are going to do something unusual. we're going to talk a little bit and then go to break and then we will bring you back to this is a big story that deserves proper attention. you have only seen what we have shown the be worse. we're all trying to get our arms around the legal significance. mark, let me start with you. what are the potential crimes that we have seen in the videotape we have run this morning from what you have seen?

>> i have read a lot more than what you just showed your viewers. it is all fact sensitive. we have not seen everything. from what i have seen and what i've read, assuming that to be true, there are potentially conspiracy charges. conspiracy requires an agreement to do something unlawful and asking further. there's an agreement to assist in creating the brothel, in tax evasion, and a number of other offenses. other than this discussion, now there's a fee. there's no question conspiracy would apply. megyn: do you agree? is there any question that if they truly believe these people were peddling child prostitutes to come to the united states and live in a brothel, and wanted acorn to help them get a loan for housing.

>> i think this is repulsive, disgusting behavior. i just do not know that there's a crime here. let me explain. you need to make out the elements of a crime. i do not necessarily know that you have that here. said two guys go hunting. say i want to kill him because i cannot take the debating. i go out into the woods. unbeknownst to me, a disgruntled client of his has the same idea. wheat separate and date disgruntled client gets him first and tells him. i come upon mark and i think she is sleeping and i shoot him. is that murder? the answer is no. for aiding and abetting tax evasion, for aiding and abetting child prostitution, you

need the actual crime. you need the child prostitution. that is what is missing. megyn: hold that thought. we will bring you back in two minutes. we will hear much more about this. do not go away. . . 90s slacker hip-hop. ♪ singer: buckle up, everybody 'cause we're taking a ride ♪ ♪ that can strain your relationships and hurt your pride ♪ ♪ it's the credit roller coaster ♪ ♪ and as you can see it kinda bites! ♪

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megyn: to pick up on the point you were making before break, your point was that just discussing the aiding and abetting of child prostitution, setting up a fraudulent tax scheme, is not a crime? >> for certain crimes, all that is required is speaking. for example, solicitation of prostitution is defined as even if you solicit a prostitute, that is enough.

the person who went in with this camera is not an actual parent, and he did not have a prostitute with him. no tax return was filed. of course it is disgusting. she does not say get out of here, i'm bored to call the cops. she acted as if it is commonplace. but every day, they act like this, and she is actually good at it. >> no one is suggesting that she is guilty of aiding and abetting. union actual crime. of course her behavior is propulsive. -- you need an actual crime, and of course her baby -- behavior

is propulsive. conspiracy does not require a complete defense. it is getting together and discussing a crime. obviously she believes these people want to commit this offense. she does not just speak of it, she acts in furtherance. i think the prosecutor in this conservative climate would go ahead. >> he is wrong. conspiracy requires a meeting of the minds. you only have one mind there, the person we are looking at now. the other person is faking it. that is not a conspiracy. you need an actual agreement between two people. megyn: how do you have a conspiracy with just one actor in the conspiracy? >> how do you clap with one hand? just say i am right. [laughter] >> listen, i read the

transcripts and there is potential conspiracy there. maybe you are right. megyn: what about fraud? this is a group that has taken $52 million. they are on deck to receive billions more to help lower- income people obtain loans. obviously, that is not what is happening on the tape. is there a potential fraud charge here? >> i do not see it. ultimately they want to say that this is an isolated incident restricted to one worker who did what she did on her own. bad day for pr. 11 indicted for fraud out of a corn today. >> for friday underrepresentation. that would mean that the guy had no reason for reliance. he knew what he was doing and getting.

>> one final word -- this group needs to be investigated. not just by the cops, but by u.s. congress. it is time. john conyers pushed for a hearing and then backed off, blaming the powers that be. they need to rethink this. take a look. the people deserve no less. ..xn0] (pouring rain)

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