bureau of tourism is involved in this one. megyn: i do not know. bill: first time in a while. you are learning. megyn: go to foxnews.com. "happening now" starts now. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- jon: the vice president is in iraq as the president calls for more goods on the ground in afghanistan. we will bring new video to you any minute. jane: what police were looking for in a terror raid in new york city. one man under surveillance came to the city over the weekend. now he is gone. who is he? jon: in boston, at least 15 people and a train accident workers. we are getting details on what happened there. jane: new developments in the

murder of a young graduate student at yale university named annie le. we are waiting for autopsy results. on sunday, the day she was to be married, her body was found in a secure building accessible only to students and staff. her murder was not a random attack. they are talking about suspect. rick leventhal is in new haven for us. what did they tell you? >> officer joe avery of the new haven police department just came out to brief reporters. he emphatically says that there are no arrests plans today, and no press conferences, either. he said there are no arrests imminent. when i asked him if there was a possibility, he said anything was possible. when i asked whether these media stories are hoping -- hampering the investigation, he said "god, i hope not."

the victim is described as -- a suspect is described as a technician and employee of the university who worked in the same lab as annie le. he had scratches on his face and filled a lie-detector test. but again, the police chief says that the stories are not helping the investigation. people here obviously want a quick resolution to the case. but for the most part, they do not feel unsafe on campus. even though crime is an issue in new haven, they do not necessarily feel less safe because of what happened. meanwhile, yale will increase security because of what happened. there was also a candlelight vigil, with hundreds of people showing up for close to an hour, lighting candles in solidarity. we heard from her roommate, who described her as a good -- as as

good a person as you would want to meet. >> this is incomprehensible. but that it happened to her, i think, is infinitely more so. >> in the meantime, police have interviewed well over 100 people. they say that le was targeted and other students are not in danger. but at this hour, an arrest is not imminent. jane: interesting. rick will let us know if anything else develops in new haven at yale university. thanks, rick. jon: today, talks to blue-collar workers in ohio and pennsylvania by the president. right now he is meeting with workers at a general motors plant in ohio, taking some credit for helping save their jobs. mike is live in pittsburgh, where the president will appear

at an afl-cio convention. he is talking to workers in ohio. what does he have to say? >> well, he is going to talk about the economy, and jobs, and what his administration has done to revive the economy. quite likely to talk about the improvement in the auto industry from cash for clunkers, something that obviously has a direct impact on the people there in georgetown, ohio. we will talk to the worker shortly. we are meeting at a roundtable with them right now. jon: and a bit of good news for autoworkers? tell us about that. >> right. they are recalling several hundred workers at that plant to revive the gm kobolds, which was very popular during -- the gm cobalt, was very popular during

cash for clunkers. he will be happy to speak to those people and talk about how cash for clockers is good for them. jon: is on the agenda -- what is on the agenda in pittsburgh? >> she will talk to -- he will talk about the economy, jobs, and, of course, health care. not surprising to hear him talk about health care, and here, checking out at foxnews.com. keep your tv on, of course. jane: let's see how wall street is reacting to the president. what is going on, jenna? >> despite the fact that the dowel is not too exciting today, we are seeing no stocks like apple and google hitting a high -- despite the fact that the dow jones is not exciting today, we

are seeing familiar stocks like apple and google hitting highs. ben bernanke in the headlines moments ago was saying that he believes the recession is likely over at this time, but we will see a weak economy for some time. technically, you can end a recession, but as far as recovery, we might not feel that for a while now. regulation is still being discussed. we're hearing from city group that they are trying to unwind development in the company -- citigroup is trying to unwind government control in the company over the next six weeks. pretty impressive, considering that we were reporting a collapse very recently. jon: just getting word of a commuter train accidents -- accident in boston.

a train officials said the train was moving at a slow speed when it slammed into a barrier. people were standing, waiting to get off the train. we are told that they suffered minor injuries. jane: joe biden is making a surprise trip to iraq, his third trip this year. we are told that the mission is meant to show that the white house remains focused on the iraq war, despite pullbacks there and increase tension in afghanistan. -- increased tension in afghanistan. we are waiting for new video on the ground there. as soon as we get it, we will bring it to you. jon: a debate over the right mix of forces to counter the taliban insurgency will be held in coming weeks. admiral mullen says he does not know how many troops the

commanding generals will request, but he does ask for more time and patience to turn the war ground. jane: this just coming in. fbi and homeland security are mourning the local police to look out for materials that could be yet -- warning that the local police -- warning of the local police to look out for materials that could be used to make explosives. they stormed residences in queens, new york. investigators say that the homes were visited over the weekend by this man with possible links to al qaeda. david lee miller is on the story for us today. >> the warning you mentioned, the fbi and homeland security has local police departments on the lookout for materials that could be used for explosives. they released the warning on monday, the same day that these raids took place in queens, new york. we have talked repeatedly with

the fbi and the official version of events is that there were no arrests. possibly a person was detained, but no weapons or by making equipment was found. through a variety of different sources, it is believed that authorities were, in fact, looking for bomb making equipment. that is what the information on the search warrants reportedly obtained. we are also led to believe that authorities began the search after discovering a man of afghan descent was visiting queens, new york, a man suspected to have ties to al qaeda. he has reportedly left new york and returned to his home in denver, and it was after that point that the raids began. the fbi did tell me that at that -- at this time, they are not looking for any one individual. obviously, this is an ongoing

investigation. they still know a great deal more information than at this time they are willing to rely -- release. members of congress were briefed about parades, and i believe that is one reason this -- members of congress were briefed about the raids, and that is one reason this is receiving attention. charles schumer released a statement saying that there was no imminent threat, that the raids were preventive, and then he went on to say that local authorities have a good idea what to do when faced with a potential menace. congressman peter king of new york underscored the fact that they are treating this matter very seriously. it is clear that authorities are concerned. exactly about what, aside from the fact that somebody might be trying to make explosives, they will not elaborate.

jane: david, thanks. jon: a high-tech weapon for the border patrol in the battle against smuggling. an ex way -- x-ray machine that scans for drugs, guns, even illegal immigrants. they are testing the system at checkpoints. the machine sits on a truck bed, driving slowly passed a car. it takes about two minutes to completely scan a vehicle. the system can do a thorough search of 125 linear feet. borders say the traditional questioning of drivers will still continue. jane: no more funding for the community group known as acorn after undercover cameras caught them giving advice on how to cheat on taxes. why is the group not worried?

jane: i want to take you live to warren, ohio, where the president is talking to autoworkers in a hard-hit area of northern ohio. he is at a general motors plant where they have been able to start a second production line at because of the cash from the -- a second production line because of the proceeds from the cash for clunkers program. obama's speech will be streaming live at foxnews.com on the internet. jon: shoplifting happens all the time. sometimes, it is even caught on tape. but this is no ordinary five- finger discount. this tape shows a woman taking inexpensive way off of a shelf at a beauty supply shop. then at sheet -- then, she meets

up with the child and puts the wig under his shirt. security whort surprised that someone would use a child to help -- security were surprised that someone could use a child to help them steal stuff. the woman is in trouble, not necessarily the child. jane: the senate voted last night overwhelmingly to deny funding for the acorn housing group. acorn employees were caught on videotape, appearing to advise a couple who were posing as a pimp and hooker on how to cheat the system. they say that acorn says the tapes were doctored? >> they do, and as far as what might happen now, it may be a more contentious issue in the house than it was in the senate.

the measure to prevent them from getting funding past 83-7. steve king has tried at least five times in committee this year to do the same thing in the house, and his amendment has failed five times. some liberal groups in the house, such as the congressional black caucus, have been supportive of acorn, and they and acorn both say that the group helps hundreds of thousands of poor americans register to vote and get housing and mortgages. acorn says, yes, the video is made by a conservative, activist filmmaker. of the videos are doctored and it -- they say that the videos are doctored and edited. but they have fired employees over it. and they also say that funding will have little impact over

their operations. it has been called a rare and potentially convenient step. jane: molly henneberg in washington for us. jon: we put kids on school buses, expecting them to be safe. that did not happen in this case. a brutal attack on a bus caught on tape. a student attacked, not once, but twice. ♪ well i was shopping for a new car, ♪ ♪ which one's me - a cool convertible or an suv? ♪ ♪ too bad i didn't know my credit was whack ♪ ♪ 'cause now i'm driving off the lot in a used sub-compact. ♪ ♪ f-r-e-e, that spells free credit report dot com, baby. ♪ ♪ saw their ads on my tv ♪ thought about going but was too lazy ♪ ♪ now instead of looking fly and rollin' phat ♪ ♪ my legs are sticking to the vinyl ♪ ♪ and my posse's getting laughed at. ♪ ♪ f-r-e-e, that spells free- credit report dot com, baby. ♪

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jon: president obama turning his attention from health care back to the economy. right now, he is meeting with autoworkers in warren, ohio, after visiting wall street yesterday. his speech is streaming live right now on foxnews.com, if you

would like to catch it. do people think the president is doing a good job getting the economy back on track? a new poll finds that 61% approve of the way he is handling the economy, 46% disapprove. let's talk to the deputy assistant to president bush. jeff has been a speechwriter for al gore and joe biden. jeff, can he look at workers and say, "listen, if the economy is on the mend, things are going to get better"? >>'s. the toughest argument to make is that things could have been worse, and the second-toughest is that things are going to get better. the president basically inherited an economy that was like a cancer patient with a gunshot wound.

the gunshot wound was the burst of the housing bubble and the financial crisis. so the president is going to argue that he took the unpopular but necessary steps of rescuing banks. even the stimulus bill is a little unpopular. but right now we are looking at a house that is half built. and these poll numbers we're talking about are saying that people are sort of reserving judgment right now. they are nervous, but they are reserving judgment. jon: i do not know about the definition of a little bit unpopular. one of the concerns a lot of manufacturers expressed is that these automakers are going back to work because cash for clunkers did such a great job of stimulating sales, but who knows how long that is going to last? the program is over, auto sales could take a dive again. >> there are two big concerns coming out of the white house, which is what president obama is focusing on with congress.

ben bernanke said that the recession may be over today, but we all know that unemployment lags well, well, well into the future. so you could have a real dynamic with the recession technically being over, but you still have one in 10 americans out of work. that is going to scare democrats. second, another thing driving the pushed towards wall street is that wall street to be flying again next summer, and you could have a disconnect with big bonuses and everybody feeling good about the market with mainstream america, still suffering 10% unemployment. so there could be a big backlash with congressional democrats facing voters next september. jon: 61% like the way the president is handling the economy right now. that is barely a majority. those are not great numbers for a president who came in on such a wave of optimism, are they?

>> no, and it has been a steep drop from when he came in. part of it is understandable, but the patience of the american electorate is running out. i agree with michael that barack obama did inherit that the recovery. -- he did inherit the recovery. but at some point, we may pass a trillion dollar health care plan which will hit consumers spending more -- consumer spending more. and this will all be at the doorstep of democrats. jon: how about it, jeff? do numbers have no way to go but up from here? >> they will go up. just a couple of days ago, joe biden mentioned that we are

only a third of the way in the recovery act. president obama is talking to autoworkers today, where cash for clunkers has got another line going and people are going back to work. good news, but just part of the story. the recovery act has massive investments making sure that of workers can build electric vehicles of the future. electric drive trains. there are immediate things taking place right now, and you are seeing what the markets is telling us, -- are telling us, that things are getting better. trend is exactly right. there is a lag in a disconnect, and a dangerous one, between what happens on wall street and what happens on main street. but what you are seeing obama focus on is seen the main street waif come out right alongside the wall street wave -- seeing

the main street wave come out right alongside the wall street wave. jane: we spent hundreds of millions of taxpayer dollars bailing out fannie mae and freddie mac. you will not believe what they are doing now. and patrick swayze is remembered for his chick flicks, but he was a hit with the guys, also.

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jane: we want to get you an update of boston. a train accident this morning happened, with 16 people hurt. this hour, they are saying that the operator had been in error and was at fault for the accident. the conductor told investigators that he misjudged the distance between the train and the bumper as the train was coming in and coming to a stop. thankfully, the estimated speed was only about 1 mile an hour. you may recall an earlier story about a conductor using a cellular phone to send text messages. the standard procedure is to have this conductor undergo drug and alcohol testing. again, that is standard

procedure. we will let you know if we know more. jon: the bailout of fannie mae and freddie mac cost taxpayers hundreds of millions of dollars. now there is word that a chunk of the money is going to legal fees to to defend the shady actions of some of the top executives of those organizations. they are accused of taking more than $100 million in bonuses that they did not deserve, and when they left the company, fannie mae was supposed to cover their legal costs. those bills are now yours and mine to pay, and they cover more than $6 million. this just has so many levels of irony. our government, to whom we pay taxes, sued them to try and collect these bonuses back. they get defended by $6 million worth of lawyers, and we pay for

that, also? >> right, and the government subsidized it to begin with. the only thing that changed was that the government took over fannie and freddie, so as a result, they are now picking up the tab for what the company was originally going to be paying. even more taxpayer money is going in to this situation, which is ridiculous. jon: i would not feel bad if we got our bonus money back. any news on that front? >> court room fees are continuing to pile up, so as a result, taxpayers are getting screwed even more. jon: who were talking about in particular? the whole cadre of leaders at fannie mae. the whole problem is that these people were churning the results, making them look more positive so they could get more money out of the bonuses.

jon: and we wonder why the housing market collapsed. then there is our good old letter carrier. i like mine. he is a good old guy. but you found interesting evidence of outrage at the postal service. >> more than a million dollars a week, according to what i have here, is to spend having postal workers and letter carriers sit and do nothing -- is spent having postal workers and letter carrier sit and do nothing. they have all of these employees, and they cannot fire them because of strict union rules. the only thing they can do is put them on what they call standby time, where they put them in small rooms, sometimes even the size of a closet, where they sit around and cannot even do anything because they are not allowed to do anything they could not do during work. they cannot read.

they cannot even read a training manual, because that is training time. this is a different kind of time, standby time. this is equal to 1125 workers standing idle, which costs about $50 million a year to the american taxpayer. jon: and they cannot send to another post office across the country because the union rules do not allow it? >> they're looking into how to move them around, but that is a lot bulkier. they have too many workers, and not enough to do. jon: why do they not lay them off? that is what private enterprise is doing these days. >> the union is not fond of private enterprise. instead, they are trying to negotiate more flexibility for management, but they have not been able to budge. jon: think of that next time you buy those 44-cent stamps.

thank you. jane: positive signs for the economy as we check on wall street and see how the dow is doing. retail sales jumped more than expected last month. the dow is still weak today, down three points. i know that jon will make a joke about us shopping. but look at that. >> it has nothing to do with undie, unless we traded in our car. -- it has nothing to do with you and i, unless we traded in our clunkers. cash for clunkers definitely worked, it definitely spark sales, and it did not do what economists thought it would do, which is to cannibalize from other areas. as far as back-to-school shopping and shopping for electronics, those are higher

than expected. seasonality is very important and retail sales. it brings us to the next story, because toys r us are setting up pop-up stores across the country, 350 of them. if you have visions of going christmas shopping and waiting for the parking lot in your area, this may change things. they are looking to send a smaller, boutique stores in malls where stores are shutting down. they are going to be hiring about 1000 workers. so that is the news for the job market. they are trying to take a little bit of a risk during recession and see if they can drum up sales. we will expect better-than- expected retail. jon: a brutal beating on a school bus all caught on tape.

a 17-year-old high-school student in illinois is attacked. the video shows him getting choked and punched at least 15 times in 15 seconds. police say that the fight was over a seat, and race was a factor. other students were seen laughing as the victim was being beaten. some even took pictures on their cellular phones. police arrested two teenage suspects. the victim is expected to be eighth -- make a full recovery. jane: patrick swayze died at 57 yesterday after a public battle with pancreatic cancer. phil, what is the reaction so far? >> we heard from his co-stars. we have also had comments from those who worked with him, other people who worked with him, and those who had been inspired by

him, including singer kelly clarkson. >> he was one of the first people i met after winning. he saw me out, he said hello and was supportive. there was a lot of backlash i was getting at the time for being on a reality show, and he was a super nice and supportive. it is really nice to look back on a classy guy in the industry. >> whoopi goldberg also says that he is a funny man to whom she owes much that she cannot really repay. among the many celebrities speaking out this morning on patrick swayze. jane: his movies were iconic, i guess you could say. >> that is right. fans are gathering at his star on the hollywood walk of fame, and one fan said, i really loved him. is just terrible. -- it is just terrible. another fan mentioned his solid

marriage of 30 years, and that he never got divorced. he and his wife married in 1975 and stayed together for the rest of his life. jon: he did seem like a good guy. it could be a game-changer in the battle for health care reform. the bipartisan effort from max baucus and the so-called "gang of six." a closed-door meeting on the issue was held last night. we will talk to a lawmaker who was there. also, fallout from a rowdy brawl at a nightclub. what happens to the club owners? geatmagi reen f a..

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jon: video of a rowdy brawl inside a san jose nightclub prompted police to yank their entertainment license. this happened over labor day weekend. the video clip, posted on

youtube, shows multiple fights breaking out and a member of the security team holding what appeared to be a stun gun. the license private club from having a disk jockey or dancing for the next 30 days. jane: we are learning details of the bipartisan proposal set to be unveiled tomorrow by the so- called "gang of six" in the senate, headed by max baucus. in this plan, there is no government-run health care or public option. everyone in the country would be required to have insurance. and the proposed cost is $880 billion. we have the senator from delaware who sits on the finance committee joining us now. thank you for your time. senator baucus has said that there will be debate on this, there will be changes, that there are still issues to be ironed out. do you think this is a deal

breaker? >> we have just seen footage from a brawl in a nightclub in san jose. one of the reasons we have been working so hard for months is to come as close as we can to this kind of bill. we are agreeing on about 80% of it. i think we actually agree on more of it now, to where we have come to the point where tomorrow, when senator baucus lays down his proposal, we will have the opportunity to debate and hopefully present a bipartisan bill to the senate towards the end of next week or the beginning of the following week. jane: will democrats be on board with that? >> at the end of the day, we have a huge challenge in this country. we spend way more money for health care than any other nation on earth and do not get better results.

47 million people do not have health care at all. you see big companies like gm and chrysler and a lot of little companies going out of business. when we pay our premiums, we cover folks without anything at all prints of the idea -- which cover folks without anything at all. so the idea of doing nothing will not work. we have to come together, and we have to come together now. jane: one critic put it this way today -- this is like a middle- class tax increase. the only difference is, you are paying the insurance companies, as opposed to directly paying the federal government. >> actually, we are in significant negotiations with insurance companies. i went to a cleveland clinic a week ago. they deliver better health care, get better results, and do it for less money. part of what we would like to do

in the legislation is to use them as part of the model for a delivery system. we're not talking about $800 billion of extra debt. the president says he will not sign a bill that does not rein in health-care costs. i say, "good. i will not vote for a bill that does not rein in costs or lower the deficit." we need to encourage this. jane: ok. senator carper, thanks for your time. jon: something strange in the arizona desert right now. what are space vehicles doing running around? we will tell you what the south west is looking like a lunar landscape -- why the south west is looking like a lunar landscape these days. and a warning comes after a terror raid on three new york

city apartments. but the main guy they are looking for is still at large. we will talk to the congressman who got a briefing from anti- terror agents, next.

jane: the fbi and homeland and -- the fbi and homeland security are today warning departments around the country to watch out for materials that could be made explosive. this comes after a raid to date in new york city on three different -- a rate today in new york city on three different apartments in flushing, queens. what were explosive materials doing there? that is the question being asked. peter king is a congressperson

from new york, and he serves on the intelligence committee. thank you for joining us. the story is, correct me if i am wrong, that there are specific -- there was a specific terrorist in new york city in a queens apartment over the weekend, and after he left the city is when the feds went in. is that right? >> there is a lot of information on the public record. i can tell you that there is an ongoing investigation, and the nypd felt strongly that action had to be taken. sunday and monday, they carried out what had to be done. but they would have not acted the way they did if they did not think the threat was serious. i do know that the fbi and homeland security, all the agents, especially the nypd, are still taking this seriously, especially because it is ongoing. i'm confident they did the right

thing. i am also very confident that they will confront this situation right now. jane: it is someone who is been under surveillance? they know where he is right now? >> i cannot comment weatherperson is now. -- i cannot comment on where the person is now. based on the information they have, the terrorism task force thought it was important to go ahead with the raid. jane: they are telling police departments around the country to look for people who might be putting weapons together. can you tell me if any weapons were found yesterday? >> i cannot comment on what was taken. everything is being looked at and analyzed. again, i cannot comment on an ongoing investigation. i can comment on what went up to the raid, but as for yesterday,

that is ongoing, and i cannot comment on that. jane: catherine herridge has been hearing from some of resources in law enforcement that they are furious any of this leak out. the investigation is ongoing, and they're pouring gas on a raging fire. >> again, i know on television last night there was actual footage showing the nypd and fbi carrying out the raids. i assume that came from law enforcement itself. i did see the person taken into custody by the fbi on television last night. it goes both ways. the fact is, i know that early in the day, there is a lot of information out there. i know absolutely everything i heard about the raids yesterday i knew long before i got a briefing from the fbi.

jane: congressman peter king of new york. thank you. jon: a plan for studying how clouds form is underway, but on the ground, they are practicing moonwalks. this lunar rover there is not scampering around the moon, but in the desert of arizona. we are live in flagstaff. what are these simulations all about? >> hello. nasa just wrapped up its mission along this lunar -- with this lunar rover. they had two crew members living of -- aboard the rover four two weeks, conducting all sorts of tests. joining me is one of the astronauts, mike bernhard. it is pretty tiny in here. what was it like to live in here

for two weeks? >> it was a lot of fun. it is well laid out, so the small space was not a factor. >> is there a bathroom? a shower? what is going on? >> we have everything we need. we have a bathroom, a shower, and our own private spaces. >> the ultimate goal is to one they have a vehicle like this on the moon. what do you think about that? >> i think that we need to go do it. the plan is to have two of these vehicles, two astronauts in each one. if one breaks, all four can get in the other one and come home. and we actually simulated that during this mission, where we had the other rover fail, we went and rescued them, and we spent 24 hours driving back. it went fine. i think that we should -- i

think 2018 is doable. i would love to see us get there then. >> we will watch for that. back to you. jane: a compromise bill to reform health care is close to being unveiled. but there is still a lot of grumbling drawing fire from a couple of different directions. we will update you from capitol hill on what is in the bill, and does this have the potential to be the ultimate end game? [dejectedly] oh. [screeching] [barks] (man) if you think about it, this is what makes the ladders different from other job-search sites. [screeching] we only work with the big talent. [all coughing] welcome to the ladders-- a premium job site for only $100k-plus jobs and only $100k-plus talent.

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sfwhen you own a business,g saving sounds good. so hear this: regions makes it simple to save money and time with lifegreen checking and savings for business, free convenient e-services and regions quick deposit, so you can deposit checks right from your desk. so switch to regions and start saving. plus, get a business financial review through a regions cashcor analysis. it's how business gets into the rhythm of saving. regions - it's time to expect more. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- jane: developing news this hour on our security in this country. a top official says we are safer from an al qaeda attack today because of our information. dennis blair just ended a conference call with reporters in which he laid out the priorities and objectives of the intelligence community over the next four years of this

administration. catherine herridge is here. i know you have had the chance to analyze this administration versus the previous one. what have you found? >> you cannot help but look at the documents and see that there are differences in regard to local terrorism, but as you could expect, there is no mention of the war on terror. he also made a real effort to distinguish this administration from the previous one in terms of eit's, the advanced interrogations program that was ended by president obama. the statement reads in part, " the intelligence community must exemplify america's values,

operating under the rule of law, consistent with americans' expectations for protection of privacy and civil liberties, respectful of human rights, in a matter that retains the trust of the american people is out of the intelligence community is very focused on what they call non-state actors. this means people who do not necessarily carry a passport. they are not with a military. they do not have the specific nationality. but they can move freely across borders, and increasingly we have been seeing them in pakistan, yemen, and somalia. part of this new document reads, "violent extremist groups are planning to use terrorism, including nuclear devices, if they can acquire them, to attack the united states is out of it is -- to attack the united states is out of -- to attack

the united states." jane: before i let you go, there is news today about the color- coded system of terror warning in this country. what is it? >> this the five-bar system that americans are used to. there has been a review by homeland security, and at 5 eastern, we will have a conference call. my understanding is that they did not reach a consensus on how to deal with the system in the future. secretary of peloton a will come to a recommendation after reviewing -- secretary napolitano will come to a recommendation after reviewing the discussion. jon: a new warning issued related to the recent terror raids in new york city. local police nationwide are being instructed to look out for

explosives and other suspicious materials. this all comes as agents and the nypd investigated a possible al qaeda associates and his ties to three apartments in queens. jane: new developments in the push for health-care reform. sweeping health care legislation could soon come out of a key senate committee. the finance chairman, max baucus, is expected to release his proposal tomorrow. he has a bipartisan group, known as the "gang of six," could have been trying to come up with a plan to make both republicans and democrats happy. be glad that is not your job. some democrats are not happy. why not? >> because they are beginning to think that mandatory health insurance coverage could be too expensive for some middle-income families. that is why you see all the

reporters chasing senator it is a very big deal. one of the concerns is that in order to have mandatory health insurance, they will have to cap premiums. there will be a lot of people who have to pay all themselves. it will be capped at 13% of income. particularly liberal democrats are thinking about that in the context of a family of four making $80,000 or so. that would be in excess of $10,000 just for premiums. that is an awful lot of money, and that could break the bank. so there is a lot of concern that the agreement being closed right now could be a problem. jane: as i understand it, the public option is not in it. >> it is out. the government insurance option is not in the baucus plan. we have known that for a long time.

instead, they try for a government-initiated co-op system. $880 billion is the working price. it does not have the government- run public option involved because it does have the co op -- it does not have the government run public option involved. it does have the co-ops. it would also severely limit medical malpractice lawsuits. toward reform, it is called. it is a reform of the legal system. and we're waiting on the nonpartisan congressional budget office to come up with an analysis. that could be released at some time today. it would be big news, because the president has repeatedly said he would not sign a bill that would raise the deficit. there are three bills now, and all of them would raise the deficit. if this one does not, it may be

possible that they have found the sweet spot. but then they have to get issue -- get around the issue of the cost of the premium. jane: will republicans back this version? orrin hatch will be joining us in a couple of minutes and we will get his take. jon: president obama meeting with recall that gm workers at an assembly plant in ohio just a moment ago. he speaks next to an afl-cio convention in pittsburgh, and rounds out his day at a fund- raiser for former republican senator turned democrat arlen specter. major garrett is there for us. is the president defending the taxpayer takeover of gm and chrysler, saying that it is paying dividends? >> saying it is paying

dividends. but when you bring workers at to a plant in ohio, you are talking about a small amount of workers. on the way to ohio, the president said nevertheless that intervention, tens of billions of dollars for rescue, is worth it. let's take a quick lesson. >> we intervene for one -- intervened for one reason. your survival and the success of our economy depended on making sure that we got the automobile industry back on its feet. there are some people who said, "you cannot do it." but it would be good for american workers, it would be good for american manufacturing, it would be good for america's

economy. >> president obama el -- obama also said that the stimulus plan is about to shift into high gear, and he predicted more autoworkers will find their way back to assembly lines by the end of the year. jon: but what about the workers? there are clashes there, right? >> indeed. they support reform of health care, but they also support a robust public option. as carl cameron just pointed out, the max baucus senate finance committee bill does not have it in there. what is in there is a tax on generous health-care benefits. some labor unions approached -- opposed that, because they have been trading for better health benefits throughout the years. that could cause friction between the white house and unions on an issue that typically has united them in the past.

jon: as the relationship with unions improved -- has the relationship the president has with unions improved after he slammed a tariffs on chinese tires? >> maybe you give something back. the afl-cio has been very complimentary of this president for putting tariffs on lower- grade chinese imports that have been surging into the u.s. market to the detriment of workers. in that respect, i am sure the president will get applause for mentioning it. that is how it goes in a trade. a little give and take. jon: we want to know you think. go to foxnews.com. our question of today, is the u.s. economy back on track? foxnews.com. you can take our unscientific

poll right there. jane: annie le's body was found on what was to be her wedding day this sunday. the medical examiner has results, but he is waiting to release them. if you're taking 8 extra-strength tylenol... a day on the days that you have arthritis pain, you could end up taking 4 times the number... of pills compared to aleve. choose aleve and you could start taking fewer pills. just 2 aleve have the strength... to relieve arthritis pain all day.

jane: awaiting results of an autopsy on the yale graduate student named annie le. she was the one his body was found on the day she was going to be married, on sunday. the corner will not reveal the cause of death until maybe later today -- the coroner will not release results with the cause of death until later today. no suspects are in custody, but they do have somebody they are

looking at. annie le's friends talked about her last night at a vigil on campus. >> she was always kind, generous, honest. caring and -- caring. the list keeps at -- keeps going. jane: now we will speak to matt, was on the campus of yale university and has been covering the story today. the suspect is said to be a student with some unexplained scratches on his chest. what do you know about that? can you confirm that? >> what i can confirm is that despite a police announcement recently, not only did they not have a suspect in custody, they are not questioning anybody. but they know who their man is,

and they are keeping a close eye on him. sources tell me that the clothing in the laboratory with blood on it does belong to this suspects, who is believed -- does belong to this suspect, but leaves to be a -- believed to be a lab technician. jane: we could potentially have somebody in custody? >> i believe so. but we're getting some contradictory reports from the police department, call on one hand is saying they are not pulling the trigger on the suspect, but university officials art reassuring students that a killer is not on -- are reassuring students that a killer is not on a loose. -- on the loose. jane: some people have said that this was a student, not necessarily a yale student.

very few people would have access to that building. do we know what his relationship was with annie? >> we do not know the relationship. but to get into the building, you need one form of identification. to get to the basement, you need another form of identification. there is no question that the police know everybody who has been in the building and everybody who has been in the basement. jane: matt, thank you for your time and your information. >> thank you, jane. jon: last week, president obama mentioned his own name to congress as examples of what a bipartisan effort can accomplish. >> those of us who knew teddy and worked with him here, people of both parties, know that what drove him was something more.

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jon: health care reform is the domestic priority for president obama. we are waiting for a new proposal from a key senate committee expected out tomorrow. a bipartisan group of senators and the finance committee has been working on this bill for months. max baucus says he hopes that republicans are with him. new polls show that americans do, as well. americans think president obama and congressional democrats should adjust the bill to bring more republicans on board.

another poll says that americans remain almost deadlocked. 48% oppose the changes. but the government-run insurance option has become the major point of contention. without it, 57% of americans back the rest of the bill, but a sizable 42% oppose it, which are without the public option. -- with or without the public option. orrin hatch joins us now. thank you for being here with us. he said sunday that you do not expect bipartisan support -- you said sunday that you do not expect bipartisan support from the bill that comes out of max baucus' finance committee.

>> 8 trillion dollar bill that can -- a trillion dollar bill that can insure all americans, not increase the deficit, and meet budgetary standards is a bridge to failure. the way they are doing this is more and more taxes. you either have to increase taxes or cut back benefits to resolve these problems. what they are doing is they are increasing taxes, not cutting benefits, and trying to put through a government plan one way or the other so we have everything run by a guy in washington. it just does not work that way. jon: president obama said in his big speech that this would not increase the deficit by one dime. >> already, it is a quarter of a billion dollars short. senator baucus, who i admire, is

trying to come up with something that will please the administration and everybody else, but he cannot. more taxes, more expenditures, less care, and even excise taxes on device manufacturers and others -- everything from -- cap stands to to tips -- cat scans from q-tips is being taxed. and then they want an employee mandate. that means if you make over $65,000 a year and do not have health care, it will cost to $3,800. that is what it is going to be

tomorrow. the next day, it will be even more. those are the ideas they are coming up with in this administration, and it just is wrong. jon: the president says that the sky is falling with health care. he says that we have to pass this bill right away. but it was pointed out last week that none of these changes would take effect until 2013, the year after which obama would have -- the year after obama will have run for reelection. >> it does not really, fully come into effect until 2013. if you put a 10-year measure on it, it is almost two trillion dollars. that is on top of the 2.4 trillion dollars we are already spending. our country cannot afford that. we can solve these problems if we do block grants to the states and let them solve their own problems within their own demographics.

admittedly, some democrats want the federal government to bail them out. the states are doing a good job to help pay for the state's -- the states who are doing a good job are helping to pay for those who are not. we need to look at every state and see what works and what does not, and in the end, we will have a health care system that might save us money, work better, and help the american people. jon: i would love to talk health care with you for another hour, senator, but unfortunately, we have to say goodbye. thank you. jane: reports from baghdad at this hour that four mortar shells have been fired into the greens on -- green zone. that is where joe biden has been today. four mortar shells fired from the east bank of the tigris river.

no reports of damage or injuries. as we get more, we will bring it to you. we will also take you live to afghanistan where oliver north has just returned from a raid. because of one word, imagination and reality have merged. because of one word, a new generation-- a fifth generation-- of fighter aircraft has been born. because of one word, america's air dominance for the next forty years

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jane: we want to bring you more news from baghdad. the associated press reports four mortar shells have been fired into the area known as the green zone. that is where there are

government offices, british and u.s. embassies, as well as other offices. joe biden is on the ground in baghdad, having made an unannounced visit there today. the ap reports that four mortar shells have been fired into the green zone. a lot of times, they actually just land near the zone. people on the ground are working their hardest to get more details. as soon as we get them, we will bring them straight to you. jon: the drug enforcement agency is striking a blow to afghanistan, conducting raids to seize all kinds of opium poppy compounds. oliver north is live for us in, will -- in kabul, afghanistan. what can you tell us? >> last night, we went on a

high-risk raid just 10 kilometers from the afghanistan- pakistan border. the force consisted of u.s. drug enforcement agents, a nato swat team, and commandos. the u.s. d.e.a has a unique ability to gather information and exploit it with direct action. this raid is a perfect example. we headed east of jalalabad, not far from the border with pakistan. d.a. informants led us to be -- drug enforcement agency informants led us to the first target. the investigator found exactly what he was looking for. opium, morphine, and pure

heroin. >> we see those poppy's -- >> it is a lot of narcotics. >> the taliban get their finances from the money from the crops. >> the drugs and chemicals were destroyed with an explosive charge. then, it was back to the landing zone for a flight to the second objective, a drug processing lab. occupants had fled, leaving their children behind. the agent describe what this location was targeted. >> it belongs to a significant organization with ties to the taliban. >> chemicals. opium. heroin. >> they are supported today by

the opium trade. with the lab owner taken into custody, we headed home. the estimated street value of the drugs today is $3 million. one step closer to bankrupting the taliban. jon: the d.a. is going along on these military raids -- the drug enforcement agency is going along on these military raids? or are they running them? >> they are running the raids. the taliban is supported by the opium trade, and connections are inescapable. when it comes up to shutting down the flow of drugs and funds to terror organizations, nobody does it better than them. they love what they do and how they do it, and nobody does it better. the intelligence they correct --

collect, and the ability to take action. jon: colonel oliver north. thank you. jane: a tough fight is shaping up for senate majority leader harry reid. a recent poll shows him in a virtual tie with his republican challenger, danny tarkanian. i know you sat down with tarkanian. why does he think senator reid is so vulnerable? >> he says he is out of touch and more worried about his party than his people. the polling is very good with arcadian, including with on groupie knows will be crucial -- the polling is very good with tarkanian, including one group he knows will be crucial. it could be the key to their race. tarkanian admits that the race

is a long way off. he says that no one should be surprised when he beats reid. those were his words today, jane. jane: in some ways, reid is the victim of his own success. >> yes. people in power are closely tied to their policies, and if the bills are not popular, you are in trouble. there is another potential challenger pulling ahead of harry reid. but harry reid will say that he can simply get more done for his folks as a powerful member of his party. jane: what about the economy? >> it is tough in nevada, because it has one of the highest rates of employment -- unemployment and foreclosure anywhere in the country. here is how one analyst predicts that issue will play out.

>> in 2008, you could blame it all on bush. he is out of office now, and the democrats have majorities. democrats might say, look, they have not done enough to revive the economy here in nevada. >> and, of course, there is a lot of time left to turn things around, both economically and politically. but this is a key race, and it would be a big loss for democrats that the senate majority leader lost his seat. -- if the senate majority leader lost his seat. jon: each year, billions of taxpayer dollars go to projects that do not seem to make sense. we are breaking down the worst of the worst with these projects. i hesitate to ask, william. what do you have today? >> they might make sense, but they do not work. we know that government wastes money.

the hard part is getting people to agree on cuts. we talked to the office of budget management and congressional budget office and put them together where they agreed. here are three programs they say deserve elimination. the safe and drug-free schools program. it spends $300 million a year to stop violence and drug use, but it is so poorly managed that the white house calls the program a fraud, and the cbo says there is no evidence it produces violence or drug use. number two, the largest effort -- even start. they say that this $56 million program is ineffective. half of the families quick after 10 months -- quit after 10

months, and the rest failed to succeed. they say that these vehicles being developed are less reliable and more vulnerable than the vehicles we currently have. we could save $25 billion. they say it is time to cut it. the bottom line is that congress comes back and they have two weeks to finalize a budget. will they have the courage to cut the programs that their own auditors say do not work? back to you. jon: what are the odds on congress been able to cut that? >> as you know, some of their contractors -- not really good. i apologize. jon: we will see how the vote goes. jane: take a look at this.

pictures from dallas. more than a foot of rain. flood warnings are in effect for texas, arkansas, louisiana, and mississippi. is there relief in sight? >> this is the last official week of summer. enjoy it. we have been talking about the drought across texas. this is a good news story, but it is a good thing. it has been hanging out for days and three incredible amounts of moisture. dallas-fort worth is close to over a foot in some regions, so that continues to spin across the region, bringing more gulf moisture. an extreme-to-exceptional drought across parts of texas. in the short term, it will mean

a bit of flooding. we have watches and warnings in effect four regions of texas through arkansas and louisiana. there is your estimate of the last seven days. in some cases, as much as a foot in portions of central, northern, and coastal texas into louisiana. your daytime high is lower than average as the low continues to spin. 83 in shreveport. we will continue to monitor that low-pressure system that will continue to meander over the next several days, bringing much-needed moisture. the tropics have been quiet. can you believe it is peak season and we do not have any named storms happening in the atlantic? this is what is left of fred. we have a burst of convection here and a wave off of the african coast that we are monitoring. both of these systems could regenerate, and we could see a depression.

if we have time, we just want to show you today's highs. a c in minneapolis, 81 in dallas. in some cases -- 80 in minneapolis, 81 in dallas. in some cases, cooler in the south. jon: it is the worst thing if you have a child overseas to get bored that they have been killed. >> they said he was dead, and i just fell on the floor. jon: in this case, the heart- stopping news turned out to be a mistake.

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martha: coming up, just when we thought we had seen it all in these acorn tapes, i wonder what

we will see in the next one. it is the force. trace: we are going to show you video of a security person at o'hare airport asleep. i mean and out. we will show that to you at the top of the hour on "the live desk." jane: it is hard to imagine. you're the parent of a soldier serving overseas, praying every day they will come back safely, and then you get a phone call telling you that, indeed, your son has been killed. and then you find out that heartbreaking news was all a mistake. that is what happens to this family. the father says that he is the one who got this phone call telling him that his son was killed. they started to make plans and then found out that he was very much alive. raymond jasper joins us on the

phone now. you heard from a civilian support group. what do you remember them saying to you? >> when i first got the message, it came over my phone as an alert. it was an urgent call. so i called the person back. i have an urgent message that i need to dictate to you. on september 12, sgt jesse jasper was killed in afghanistan. jane: and she told you two names. one of them being your son.

>> yes. jane: what did you do? >> i dropped the phone and i fell on the floor. jane: you were out of town when you got the phone call. you did not know if they had the chance to come to your door or not. >> exactly. we were under the impression they may have already been to the house, and that is why they could not get in touch with us in person. jane: how did you find out your son was alive? >> my niece's put on the enter net -- my nieces put up memorial updates on facebook, and his girlfriend happened to see it. once she saw it, she said, "my

god, they think he is dead." she had just hung up the phone with him. jane: the army said that the call came from a civilian liaison. the army says they cannot confirm how you interpreted the message. they say at this point that just one person was killed, and it was not your son. >> my wife was asking, was he hurt? how bad? i wanted her to repeat it, and she repeated it.

jane: you are 100% sure that is what you were told. as you know, it is not so good for the other sergeant's family. they're investigating how such miscommunication can be avoided in the future. thank you for your time. jon: in baghdad, it is confirmed that two mortars have been fired in the green zone. we heard from the associated press about that earlier today. the green zone is where the embassies are, and it is known that vice president joe biden is in baghdad today, trying to show his support for the efforts there. no word if they hit any . there are many "ifs" in you family's life.

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jon: there is potentially new fallout to tell you about for congressman joe wilson. the house democratic leadership taking up a resolution of disapproval against him after his untimely outburst against president a trap -- obama. jim angle is with us from our washington bureau. i thought he apologized, the white house accepted it, and the matter was put to rest? >> it seemed that he did and the president accepted it. that seemed to be the end of it. in addition, nancy pelosi considered the episode over as well, only saying it was unfortunate.

now democrats have decided they want another round and have insisted he apologizes again in front of the house itself, or be sanctioned. jon: what kind of action are they talking about? >> a resolution of disapproval, a mild scolding. it was not actually a house debate, so the rules are not exactly the same. there are some things you can say and some things that you cannot. you can even say that the president is a liar, outside of congress, but inside, it is against the rules. jon: what do republicans say about this? >> they understand that he

acted irresponsibly and say that it should be over. the republican national committee has responded with a statement -- a strong letter, but no apology to follow. jon: keep us posted. jane: you may remember this video of a horrible as you the crash. a little boy was trapped inside when the as to be turned over. we are getting an update on at 5-year-old. it is good news.

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