popping up on computers. you don't even know about. and they're back! america's most famous party crashers, now get what they always wanted. how their white house security breach has landed them their dream role. we'll explain. we get this hour started with the white house announcing new help for homeowners, a multi billion dollar plan to head off foreclosures for millions. the question now, what happened to the last plan? in the past 12 months, the first white house initiative to modify mortgages helped about 170,000 homeowners, 170,000. nearly 4 million people filed for foreclosure. or at least faced foreclosure. and foreclosure filings actually increased 6 percent. eric bolling of the fox business network joins me

now. eric, all right, it sounds great that they're going to help home own now -- homeowners now but what happened to the last plan? >> it doesn't sound great to everyone, certainly not great to the people who make the loans. remember the biggest problem we've had over the last 18-2 four-months is banks won't lend money, okay? so what's the administration done? they've thrown more money in the form of t.a.r.p., in the form of stimulus. megyn: here's money, you give it away. >> let's see if we throw a bunch of money out there, we'll loan it. banks said you know what, i'm not going to do it, we're going to hold it, earn interest on the money and make our balance sheet a lot more and -- lot better and never loaned it. if you throw it into the mix, you're a big bank that loans money out to homeowners, right, if your homeowner can now renegotiate that loan with you, you're not going to make that loan the next time, you're going to say forget it. megyn: nothing is real. the contracts aren't worth the paper they're printed on. >> not worth the paper, not worth the risk.

if you're a bang and you loan money, pairp being paid for risk. now they're saying we're getting out of the home loan miss and everybody is going to the federal government, fha, fannie, freddie, because they're the only companies that loan it. megyn: like you and me, looking for mortgages. >> you and me, we want to loan -- want a loan, where do you go, can't go to citi, morgan stanley, the local neighborhood bank, you got to go to the open arms of the federal government that says don't worry, we'll give you this loan, we'll give you this loan at a low rate and if you get your loan through someone else and need to dwawl, it's okay, we're going to take care of it, we're going to mitigate that mortgage, we're going to drop the rate, in some cases, we're even going to drop the amount you owe to that bank. megyn: it's the federal government doing that, is it taxpayer dollars helping, in other words, if you're under water on your mortgage or help getting a mortgage you shouldn't be given and go to fannie or freddie and get it, am i as a responsible taxpayer helping you? >> not only are you doing

that, the indication you're giving to everyone is it's okay to default on your mortgage, it's okay if you get under water, to walk away, foreclose on your house, maybe if things get better, you'll go ahead and start making payments, get another mortgage and that's the problem. people are more than willing now to walk away, foreclose on a property, deal with it later. it sounds quirky, but they're making it less of a thing to -- less of a sting, a lot easier to walk away instead of really trying it make it happen, make it work. megyn: the thing is, they announced this program more than a year ago, they said it was going to help 3-4 million people, we found out this week it helped 170,000 people, and that maybe a million more were sort of in progress. >> you know why? megyn: it hasn't helped. you are telling me it's not working and in your view it's really not fiscally sound policy. >> it's not working, because they're making it easier to default on your loan and foreclose than to stay in your loan, work it out, the 140,000 people said you know what, let's work this out,

bank, you and i, the 4 million said i don't know, the government says it's okay for me to walk away, i'm walking, i'm under water. i think 24 percent of all homes right now in the united states are technically under water, in other words, they owe more than what it's actually worth, the market price has gone down so low. megyn: i have that home in virginia. >> what are you going to do? megyn: i called the bank and i said can we renegotiate, help me out and the answer was no. what did i do? i paid the mortgage! i didn't look to the government to bail me out. >> and that's the way it should be. that's what should happen. unfortunately a lot of people are opting the other way, saying it's less of a stigma to walk away from my mortgage and they walk away and go into foreclosure. mig and enter the feds again. >> for more help, throw more money on the fire. megyn: eric bolling, thank you. what do you think about that, folks, should we be dolling out money to help troubled mortgage holders, let me know, kelly foxnews.com. if you are one in trouble with a mortgage, new evidence it pays to look

live you leap into loan modifications. a pair of long island firms now under investigation by the new york state attorney general, he says they have already ripped off hundreds of people across the country, demanding money up front, claiming to negotiate with banks on better mortgage terms for struggling homeowners. way to kick you when you're down. most folks don't find out it's a scam until the home auction notice shows up in the mail. >> this is my home, this is my safety net, this is where my children are, this is their home, and their back yard. and i don't know where i'm going. >> money-back guarantee, nine # percent success rate, sounds great, just a come of problems, there is no money back guarantee and no 98 percent success rate. >> that is problematic. megyn: new york's top prosecutor now suing both companies, doing business as the national modification service, and infinity funding of bohema. watch out for those names.

breaking just in the last hour, the president, talking about a landmark new deal with russia to cut back on nuclear weapons. president obama and his russian counterpart announcing they will sign the nuclear arms deal next month. it will make deep cuts to the nuclear stockpiles in both countries, the two leaders finished the arrangement in a phone call this morning. we are live in moscow a little later this hour with what some in the security field are now saying about this deal. what has been a bad week for israel, getting a little worse this hour. an israeli army patrol coming under attack in gaza a couple of hours ago from gunmen belonging to the islamic group hamas. two israeli soldiers are reported dead and two of the attackers were reportedly killed when israeli troops returned the fire. it all comes as we are getting new details about the meeting this week between prime minister benjamin netanyahu and president obama. netanyahu went to the white house to talk mideast peace concerns, but not only did

the israeli leader not get the traditional photo op granted to any head of state, now we're hearing he was left to cool his heels in a meeting room for over an hour while president obama walked out to have dinner with his family, which some are saying is an extraordinary breach of protocol. rina nynan is live in jerusalem. how is this playing in the israeli media? >> well, megyn, you might think okay, this leader of the country here, went and was left to cool his heels, as you mentioned, people might be upset but it's opposite. the media here are very critical of netanyahu and the fact that he has jeopardized the relationship between israel and the u.s. they look at him as a man without a plan, and they feel he's siding with the right wing and not looking at israeli interests first. if you want to look at it, it's only been maybe about an year in office for him and already his approval ratings for the first time megyn have fallen below 50 percent, while his disapproval ratings have increased 50 percent, megyn.

megyn: where do we go from here, rina? it's so extraordinary to see this sort of tension between the united states and its closest ally, israel, the only democracy in the middle east. where do we go next in dealing with this tension? >> you know, people who follow israel and the middle east closely have told me today, this is unprecedented, megyn. they have never seen this in 30 years' time or so in the history of israel's existence, i would go so far to say both the white house and israel are at odds like this. there are some things the white house can do. the united states provides $3 billion in aid to help israel's security. not to say that the white house would cut that off, but the large percentage of israel's budget goes towards security, so you could imagine the strain here on the country, on the government, on the people, if suddenly they were to lose that money or any sort of military support from the u.s. because we know israel's greatest ally is america and that is what

makes people nervous and upset with netanyahu, that that relationship is jeopardized, megyn. megyn: rina, thank you very much. fox news alert on drama on the high seas, right now south korea's government is downplaying reports that one of its navy ships will sink in a north korean torpedo attack. the reports are that one of the south korea's ships has been -- well, is under water at this moment, the south korean navy ship went down a couple of hours ago, with more than 100 people on board. now a presidential spokesman there saying, quote, it is not clear whether north korea's involved, they have not ruled it out all together. was this some sort of attack on a south korean ship? we are following this developing story. we're going to bring you the details as soon as they come into us. when we have them, you will too. high speed chases do not get any more intense than this. a truck reaching speeds of up to 100 miles an hour in the dark, with no head

lights. imagine the shock they got when cops finally saw who was behind the wheel. >> what are you doing? >> trying to call my mom. >> trying to call your mom? are you crazy, boy? >> yeah, a 12-year-old boy. a 12-year-old. but that's not all they find. lawmakers -- we'll have more on that. okay, in any event, lawmakers on both sides are getting frightening threats since health care was passed into law. now, at least one political group sees dollar signs in the danger. how they are using the threats against our u.s. lawmakers to actually raise money. next. >> congressman stupak, you are one big piece of human -- and think about this, there are millions of people across the country who wish you ill. >> jeanne schmidt, when you got hit by that car, you should have broke your back. you and boehner, mitch

mcconnell, all you raciest republicans, why don't you just change your party name to racist?

>> pouring more and more gasoline on the names, that is irresponsible. >> dccc chair chris van hollen and dny chairman tim kaine in particular are dangerously fanning the flames. >> it's time there be some adult supervision within the republican party. >> it is reckless to use these incidents as media vehicles for political gain. >> it's not led by example. in fact, they're doing the opposite. >> to use such threats as political weapons is repry pens i believe -- reprehensible. >> enough is enough. >> enough is enough! mig well, that is just a sample of the intense war of words we've been seeing between democratic and republican house leaders over recent threats against lawmakers on both sides of

the aisle in this health care fight. d.c. insiders will tell you that the threats are nothing new. whenever a controversial piece of legislation guess passed unfortunately some crazies out there start threatening our lawmakers, but now a group that fundraises for the president, organizing for america, is using the threats as a fundraising tool. allen coombs is host of the allen goombs radio show. it's organizing for america. the e-mail is info at barack obama.com, sending out a letter saying please chip in $5 or more to defend health reform and citing these instances of violence as a means of doing it. >> he's getting up there and he's using -- he's pointing fingers atand saying we should use this to advance the republican agenda, how dare eric crntor -- cantor get up there at the same time he's accusing democrats of doing one thing and he's doing it. randy newtbauer, the guy who

yelled out baby killer is the one who also put out a fundraising letter and is using this for fundraising. don't act like it's only the president who does it. megyn: i'm not acting lying anything. i'm just saying you got an organization that does fundraising for the white house, trying to capitalize on threats against congress? >> and randy nuegebauer uses it to fundraise, eric cantor uses it. >> is it okay for the white house to do it? >> it's okay for one party to do it as the other party does it. if you're going to be critical of one doing it, don't be critical of the other one. megyn: you don't think the white house should say stop that, i think that -- >> i think that republicans ought to watch their mouths, i think the right has gone absolutely crazy in this country. you have a list of things, a number of people have gotten death threats and i know it's not just people on the left, it's both sides, literally, but it's been more intense from the right to the left, it's been a bunch of angry tea partyers, right -- >> megyn: how do you know? >> because look at the --

>> megyn: because they haven't made it public doesn't mean it's not happening. >> we haveo whether it's getting powd an envelope or a woman in pennsylvania saying you'll never sleep at night, an address given out by a tea partyer. plig plig there's no question it's been done to both sides of the aisle. >> it's not equal. megyn: how do you know that? let me make my point. just because the republicans haven't all come out and said this happened to me doesn't mean it hasn't happened. a lot of these lawmakers feel, as eric cantor said he did, they don't want to make it public because it inspires other crazies. >> if eric cantor was sincere and not a hypocrite he wouldn't give a news conference to advance his agenda. megyn: he was responding to politicizing it. >> there was no reason to hold that news conference except to point finishers atand not take personal responsibility for what his side has done. megyn: he said he didn't

appreciate that people like van hollen and tim contain had been coming out and trying to tar the entire republican party. >> they're not tarring the entire republican party. and i think he'll continue to say that eric cantor is a hypocrite to do the very same thing he's accusing the others of doing, which allen greyson came on my radio show the other night and called for the resignation of eric cantor. megyn: why? because he had a bullet shot through his office and complained? >> the fbi reports that the bullet was shot in the air and grazed a window. megyn: so it doesn't count. it was just shot in the air. toughen up, cantor! >> this is much more a problem for the right wing, they've gone off a cliff, they're insane, they're behaving a way that will never get them elected. you're going to win states this way? megyn: let me ask you something, you're a big star at fox news. >> no, i'm not. you are. megyn: have you ever received threats? >> you know, it happens. it happens to all of us. megyn: you don't go public with them, right?

>> i think we are talking about a concentrated period of time, with a concentrated group of people, with the threats for the most party coming from angry right wingers. megyn: why don't you get out there and say i've been threatened. >> i don't think it's something i would particularly talk about. mig right! right. and that was the point that eric cantor was trying to make. >> but to issue a report because of the vandalism at the house of the brother of a congressman because two tea partyers put that address on a website, that is a news story, that's legitimate news. mig hig -- megyn: there's no question that those who does this, they're crazy, lunatics, people who threaten lawmakers, i don't care what your politics are, but that's wrong. why are you -- why politicize it, why can't you say don't -- why not condemn the lunatics who fired a bullet into eric cantor? >> me politicizing it? why aren't you yelling at eric cantor for politicizing it. exactly what he did. why aren't you taking him to task? i want you to bring cantor

on and yell at him for doing the same thing. >> i invited him on, and he rejected us. >> i'm willing to show up? >> thank you, allen. what do you folks think? we love allen, don't threaten him. let us know what you think about the debate. we told you about a terror plot to attack oil facilities in saudi arabia, dozens of al-qaeda suspects rounded up, over 100 of them, actually, and now we're getting troubling new details on who likely gave the orders. also -- >> mr. and mrs. salayie. >> america's most infamous party crashers now cashing in on their bad behavior! their new adventure, straight ahead.

megyn: a texas judge today ordering a 12-year-old boy to stay behind bars. this as police investigate a 100-mile an hour truck chase monday. look at this. this is a 12-year-old behind the wheel. officers responding to an emergency call of a vehicle driving erratically, without its head lights on. they pulled over the car, and a 12-year-old boy walks out, saying he was trying to call his mother. police found a handgun and marijuana in the car. luckily, no one was hurt. fox news alert, back to our story about a south korea navy ship that sunk near north korean waters, the ship went down a couple of hours ago with more than 100 people on board. right now south korea's government is downplaying reports that that ship was brought down by a north korean torpedo attack. mike emanuel, live at the pentagon for us. mike, they're not ruling out

a north korean role in this thing. >> reporter: you're right, megyn. and here at the pentagon, what we know is they're describing it as a coastal patrol crash, slightly smaller than a u.s. navy destroyer, carries about 100 sailors on board. the u.s. military is saying there was an explosion on board but they are allowing the south koreans to say precisely what that explosion was. it's not clear if it was mechanical different of the ship or perhaps whether it was a north korean torpedo but obviously relations between north korea and south korea are incredibly tense, and so any time there's any type of military altercation, everybody takes notice of that because relations are very difficult. just today on state- controlled television, a state news reader from north korea threatened a nuclear attack on south korea and the united states because the regime is feeling threatened by south korea in the u.s., and so relations are very tense. we know that south korean

naval vessels rushed to the scene and helped rescue sailors. it's not clear how many casualties there may be, megyn. megyn: i'm just getting word in my mere now they've rescued 58 sailors so far. we don't know whether there are more or where they are trying to get but the number we've been given so far is 58 according to korean officials. mike emanuel is following this breaking news at the pentagon. come back when you get more info. >> reporter: we'll do. megyn: very soon, you could see less in your paycheck. a little health care surprise is coming. what we are told will be a $1500 a year hit to everyone's paycheck. but you may be able to avoid the charge. stay tuned. and this man could be put in a position of power that influences every job in the united states. the senate has already denied him that position, three times, however. he could now receive this position in just days, nonetheless, the reason, and why people are so upset about it, coming up.

we are just getting new details about a horrific, horrific, highway crash. the death toll rising after a church van clydes with a truck. stay tuned.

megyn: 1:30 in the east and by the way, it's a friday. a look at the stories we're following for you, president obama and russian president medvedev signing the most compromisein arms agreement in two decades, making sharp cuts to nuclear arsenals.

violence in the gaza strip, two israelis dmild an explosion, and now the artillery is targeting palestinian militants. >> a horrific accident in kentucky, the death toll rising to 11 after a church van collided with a tractor trailer. well, here's a little health care surprise we didn't see coming. we are now just learning about a $1500 a year charge to everyone's paycheck. it is supposed to guarantee money for a certain kind of coverage as we age. but there is a way to get out of it if perhaps you don't want to spend $1500 a year. william la jeunesse is live in los angeles with an explanation. hi william. >> reporter: megyn, when you are young you think you're immort tal, when you're old, you realize it's too late and can't afford those services that keep you at home, eating -- help with ething, bathing, dressing.

that's why we have this federal program. you can opt out, but critics say it's not a federal responsibility and a bureaucratic nightmare. >> unfortunately when we're young and working, we never think about getting old. >> doleres lives in their home but others aren't so lucky. >> a lot of people give up their homes or apartments and move in and pay for a decent home, it's four, five, $6000 a month. >> reporter: but most can't afford that and a new health care provision aims to help by deducting from americans' paychecks money for long-term care in the you opt out? >> this is a really scary proposition where the government passed a huge new entitlement program with gimmicks and tricks and the american people don't know they're going to be automatically enrolled in this by their employer if they don't watch out. >> the government expects premiums to average $146 a month. on retirement, enrollees could receive $75 a day in benefits. >> $75 a day in flexible

cash will be enough for most people who need long term care and who are at home now to stay at home, which is where they want to be. >> supporters say this puts the burden of paying for long term care where it belongs. on each individual. >> we are convinced that a cash benefit is the best way for consumers to get what they thought, where they want it, and when they need it. >> but opponents say the fine print tells another story. unless modifications are made, analysts say, the program will add to future federal budget deficits in a large and growing fashion. >> in the early years, there will be money in it, but at the end of the day, there won't be enough money to cover the problem. >> reporter: now, this deduction, if you will, was supposed to take effect in january. it will probably be 2012, megyn. again, you're automatically in unless you opt out. but i've seen estimates that this could be $240 a month, not $140 a month. but this was very under the radar in this whole health care debate. megyn: uh-huh, all right. william la jeunesse, thank

you. opposition from both sides of the aisle now to the president's pick for a key labor position. meet craig becker, he's a strong union advocate, and he is president obama's nominee for the national labor relations board. this is called the nlrb, and it oversees critical union matters. critics of this guy call him radical and his nomination failed last month in the senate but now we are hearing president obama could still install him as a recess appointment next week while congress is on spring break and whoa, has that gotten some people upset. joining us now, mary marsh, a democratic strategist and former adviser to senator john kerry and justin safey, a republican strategist who is spokesman for former florida governor jeb bush. this guy, craig becker, all 41 republicans wrote a letter to president obama, pleading with him not to appoint this guy to the 5-member nlrb and even some democrats now are objecting to him, mary ann.

do you see this as a big deal? >> no. you know what megyn, the constitution permits it, every president does it, and the fact is the party out of power always hates it. barack obama is going to probably make a recess appointment like george bush did 179 times, bill clinton did 131 times, and to the same board ronald reagan made an appointment. the political cross currents here are all the republicans oppose it and only a couple of democrats oppose it like a blanche lincoln who is in a state where labor isn't the most popular thing and she's in a very tough fight and i understand that. >> mary ann -- >> megyn: i'll get to you justin. lot mer finish her thought. >> my last thought on this is when you look at the leadership of the instruments, it is instrumental to democrats and obama getting elected. megyn: sure are. >> in the scott brown race, 50 percent of union households voted for scott brown. in an irony, the first vote in the united states senate was against crig becker.

megyn: justin, labor unions spent $450 million to help elect democrats to the white house and congress in 2008. is this payback? >> absolutely it's payback. if president obama were to recess an appointment after all the bruising battles, partisan battlings we've seen in congress in the last few weeks over health care reform, to do a recess appointment would fly in the face of his desire to do bipartisanship, it doesn't make sense other than from a political payback perspective to the labor unions and special interests that pumped hundreds of millions of dollars to help the democrats control congress and to get barack obama in the white house. megyn: justin, tell us why becker is so controversial. >> he's controversial because the national labor relations board is supposed to decide disputes between employers and employees, and he has been a staller -- scholar who's written extensively on labor issues and one of the things he believes, he's stated before in his writings, is that employers should have no role in union organizing

elections at all. we all know about the car check -- card check bill that was proposed earlier this year and it was discussed where there would be no more secret ballot in the union organizing electricals. his previous views stated employers wouldn't be allowed to communicate or participate and have any role in those elections at all. megyn: it's true that presidents have used recess appointments but this guy is extremely controversial. he's a strong advocate for the seiu, the nation's largest union, he was also a top lawyer for the afl-cio, and you know, there's a real question about whether he would be in the pocket of unions were he to ascend the nlrb which is possessed to be this independent body overseeing labor disputes. do you really think this guy could be impartial if he gets this recess appointment? >> no. >> i think a lot of people would question will the nrlb has ever been truly partial -- impartial, it's always depended upon the president in the white house and their

apoims. ronald reagan a-- appointed a conservative businessman, you go through all of them, bush appointed a lot of controversial judges and ambassadors. it's always from the side of the street you're standing on. in this case it's president obama's prerogative and he's going to obviously, seiu and a lot of the labor unions were key to him getting elected but they're especially important in 2010 in terms of reelecting as many democrats to congress as possible, and i think the real question going into 2010 is not that labor is going to support democrats with their money in the organization, but will the membership follow the leadership, and that's the split you saw in massachusetts, and i think that's the most interesting thing. but there's no question this appointment is going to go through and obama will do it. megyn: it's already been rejected. the thing about appointments to the nlrb, they normally have to be approved, the senate has to approve them. this guy has been rejected reet peed -- repeatedly and now he comes in thanks to a recess appointment and the labor secretary said march 3rd, quote, the afl-cio, the largest union

organization, quote, will be very pleased by what obama is planning. you know, is this a consequence of an election, justin? president obama won, he gets to make the recess appointment. >> yeah, well, obviously the labor secretary telegraphed that but it's not about the appointment, it's about the fact that he both vice president biden are both former senators, yet in this appointment he's going to disrespect the senate, not respect the role the senate has in confirming these apoims. that's what i find so baffling and iranic. megyn: the afl-c -- sorry, the nlrb, national labor relations board that he's going to get to appointment to reportedly, it has five members, right now there's two and crnt -- you know, are those opinions worth anything. they need another appointment on there. president obama saying i got to get somebody on there, i'm going to put my guy on. >> absolutely. why doesn't he do what 41 senators sent him in a letter, there's a democratic nominee and there's also a

republican nominee, the republican senator sent a letter to president obama saying we will confirm those two if you decide to withdraw the becker apoilt and then you can have another republican, another democrat, and then we'll have someone else other than mr. becker, who is obviously outside the mainstream on these labor issues. megyn: why isn't that fair, mary ann? then i got to go. >> it normally would be fair, megyn, but i think what we've seen over the last few months, it takes two to tango and the democrats would argue the republicans haven't been willing to go to the dance so on this one obama is going to put his guy on the board, every president does it, obama is going to do it. megyn: looks like it's going to happen, at least according to the labor secretary, she says they're going to be very pleased, behind hint! we picked up on it, we understand what she means, and we'll wait and see if it happens. mary, just ips, thank you. health experts say there are huge savings in electronic health records, putting all your health records on line. but at what cost to patients?

a doctor joins us next with some must-hear words of warning about your most private information. and meet winston! your friendly neighborhood pit bull-boxer mix. this is what happens when winston is angry! very angry! wait until you see where this story goes next. we'll bring it to you.

megyn: after an 8-month deployment, u.s.s. nimitz is headed home, along with three ships that support the carrier, home port, san diego, also returning are two guided missile destroyers, and a guided missile frigot, the nimitz carrier strike group left san diego last july, during the deployment the ships took part in military operations in afghanistan,

the persian gulf, and in the indian ocean. well, at the heart of the health care overhaul is the question about cost and privacy. you may know now that with this health care law, your medical records are about to go online, and they are going to become available to all doctors. it is a move that is supposed to improve your care. but now we are hearing about some new worries with this plan. dr. deborah peele is a psychiatrist and founder of patient privacy rights. dr. pe. le, i read your opinion piece in the "wall street journal" and i got to tell you, it really scared me. i think medical privacy is something that is of the utmost importance to every american, and you have some real concerns about whether we are going to have that once our records go online. tell us why. >> exactly. well, what the public doesn't understand is that their right to control sensitive information from

prescriptions to dna has not been required for electronic health records, that every american is going to be required to have by 2014. so this is a huge problem, because if we can't trust that our doctors are going to protect our most sensitive information, people are going to lie, they're going to avoid treatment, and we're going to have bad data, so we won't be able to do the kind of breakthrough research we need to improve health care. megyn: right, because people, if they think their privacy is going to be compromised, they may not tell their doctors about certain conditions, or you know, i mean, that's -- when peopleo this happened when people first started getting diagnosed with hiv, they were worried they would lose their jobs. why about this stuff online, making it electronic, that would bother, because right now doctors have our information and that could be leaked or stolen.

>> not in the same kind of way. in a paper system, in the paper world, doctors used to get our permission before they disclosed or shared our information with someone else. now, because we no longer have that control over electronic records, they can share the information, hospitals can share the information, pharmacies share the informs, labratories, all of these companies and government agencies that hold our information can use it and do things with it without our permission. megyn: they can? >> that's very, very different. megyn: but what about, i thought when you go to the doctor, they make you sign that hipa form which seems to say your information is private, and you know, we're going to protect you. >> actually, it doesn't, huh-uh. megyn: what doesn't it do? >> well, actually, that's only a notice that tells you, if you read it closely, how they're going to use and share your information. it's not asking your permission. they're telling you that they're going to share your information with anyone else in the health care system

for any purpose virtually that they want to use it for. megyn: are you saying that if we go electronic that's going to get even bigger, that the sharing is going to get even bigger, and be able to more people? >> absolutely, all the thousands of employees in a hospital system, all the -- >> megyn: can see it. >> yes. megyn: really? >> sure. you read the stories about george gloony and britney spears and octomom, where thousands of staffers looked at their records. that's because these systems are not built with controls for patients to decide who can see and use their sensitive information. those technologies exist. we need to put them in place so that we have a trusted system. megyn: this is really scary, because i think of somebody like joe the plumber, who found himself confronting president obama, then-senator obama in a rope line and some democrat in ohio decided she was going to do opposition research on joe the plumber, next thing

you know, we knew about his tax liens. if somebody pops up again, maybe somebody in a hospital does a search and we know joe the plumber's medical history as well. >> that's exactly right. >> what can you done? >> i've got to tell you -- well, we have started an online campaign called the do not disclose petition, and we want everyone to come and express their wishes to congress, to pass a law so that if your name is on that list, anyone that holds your information has to check with you before using our sharing your information, and the list will also give you the chance to choose to share your information for research with your doctor or for your own ways of planning your health and care. but we need to have control, the same kind of control that we had in the paper system in the new electronic health system. megyn: you know, the sad thing is, even if that goes into effect, and it sounds

like a great idea, right, you have to specifically con fent for them to share your information, even if that goes into effect, once things are online, it's hackable, or who knows if they are going to respect whether you said it's okay or not. it seems like we're at a point, where if you don't want it to be public, maybe you are in a position where you have to lie or not tell your doctor or beg your doctor to keep your records in paper form. what should the average american do? >> well, i think what your average american needs to do is first of all understand this problem exists, and then tell congress either by writing or calling congressional offices or signing our petition to tell them, look, let's build a trustworthy system, let's do this the right way, because we can have modern technologies that don't permit thousands of staffers to see your records just because you've gone to the hospital. we need modern, effective, innovative technology that gets the data to the right

place and at the right time. >> got it. got to go, doctor. megyn: got a hard break. that's very interesting. >> sorry. megyn: next, breaking news out of saudi arabia. doctor, thank you.camp

megyn: updating our fox news alert for you about a south korean navy ship brought down near north korean waters by some sort of explosion, a news report says a number of south korean sailors died when their military ship sank off of an island not far from north korea. a south korean news agency cites an unidentified naval official as saying there have been some deaths. now, the military says it cannot confirm the report but it says that 58 of the 104 crew members on board the ship are safe. there is a question about whether this was some sort of mechanical malfunction,

an explosion on board the ship or whether, perhaps, this ship was brought down by a torpedo, those reports being denied but it's not clear at this moment what happened. we're following it for you. in the meantime, there is this, new details today on saudi arabia. breaking up a major terror plot by al-qaeda, over 100 suspected terrorists arrested. according to the saudis, al-qaeda was targeting key oil and security facilities, and today we're learning more about how this plot came together. national correspondent catherine herridge live in our d.c. bureau with more on that. what are we learning on this? >> reporter: the saudi authorities characterize this as a very significant plot, they are saying they were plotting a suicide attack with car bombs or truck bombs at these oil facilities in the eastern part of the kingdom and also the security facilities. what the saudis are saying today is that they picked up about 110 operatives and half of those operatives they say came from yemen and

that is not a surprise because about two years ago there was a crackdown in the kingdom on al-qaeda and this led to a flood of al-qaeda operatives into yemen and that really laid the foundation or planted the seeds for the creation of a group called aqap, or al-qaeda in the ribban peninsula, and that is a familiar name to you because that was the group that claimed responsibility for the attempted christmas day bombing. the bottom line in this recent plot in saudi is its must example of how al-qaeda wants to hit economic targets in an effort to disrupt the world's economy and especially the u.s. economy if possible. megyn: if they had been successful, that would have had effects far and away out of saudi arabia. >> reporter: but it's pretty heavily fortified, the saudis are kind of on to it. it would be hard to do but they keep trying. megyn: catherine, thank you very much. we have big news out of washington where the white house announced we are on the brink of a brand new deal with the russians,

president obama and russian president medvedev agreeing to limit the use of arsenals but what's hidden inside the treatie could have a drastin impact on american missile defense. that is next. stay tuned. can i eat heart healthy without giving up taste?

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meg rr "the o'reilly. megyn: fox news alert. a controversial provision in the arms treaty between russia and the united states. president obama and russian president dmitry medvedev agreeing to sharp cuts in nuclear ars nals in both nations. in the agreement both sides would reduce their deployed nuclear warheads to just over 1,500 each. right now the u.s. has 2,200 and russia has 2,700. now we are learning more about what else is in this new nuke

deal. report essentially the a -- >> reporter: the agreement deals with and reduces by half. it's important for the u.s. that there are no restrictions in this treaty on the american triad system which means they can use those warheads on missiles on the ground, bombers or subject marines. so america is free to do with that as it sees fit. also important, new details that came out of russia in the last couple hours. the foreign minister has confirmed what we have been reporting earlier that there is a legal reference in the agreement. he used the word specifically a legal reference in the agreement that there is a link between missile defense and this new treaty. this is something the russians and americans have been arguing

for months. my sources say they agreed on these numbers a long time ago. they have gone back and forth on missile defense because the russians wanted it in the treaty, the americans did not. it will be in the preamble of the agreement, but the defense secretary gates and the white house is generally saying it will not limit america's ability to develop missile defense. so it many in the treaty but american white house is saying it will not limit missile defense in the future. that's a very important selling point for the senate and we'll have to see how the senators look at the treaty. megyn: thank you so much. we are also keeping a close watch on the middle east right now. deadly clashes between israeli soldiers and palestinians in southern gaza. two soldiers killed in a gun battle with palestinian militants.

soldiers apparently caught the a spinnans planting explosives. tensions run high between israel rail and the united states, two close allies. we'll have a close are look at what is happening between the united states and israel. the last chapter in the bitter healthcare reform debate drawing to a close. house democrats sending a second so-called fix-it bill to the white house for signature after the president signed his hassive overhaul -- his massive overhaul into law. >> today we had the opportunity in the house to send this legislation to the president of the united states for his signature. we calmly reviewed the events of

the last week or so which brought us to victory in passing the base bill, the senate bill. essential to its passage was a passage of a second bill which would make significant improvements on the senate bill. megyn: as the president prepared for the final bill signing, new concerns over what congress put in that 2,700 page document. and how the changes we are seeing to the healthcare system will impact businesses and workers. james rosen has more on this. how can companies tell if they are going to be effected by this -- aeffected by this bill? >> reporter: they are drafting thousands of pages of regulatory guidelines. one provisions certain indeed.

and it has led caterpillar, the construction equipment giant and other companies to estimate they will be taking a $265 million hit this year. it eliminates a corporate tax writeoff for government stubs zis which has helped companies provide prescription drug coverage for retirees. they will be able to write off the cost, but not the subsidy. >> they will drop their retiree prescription drug coverage and put the cost onto the taxpayer. there is no incentive to have a cordial relationship with the retirees continuing to pay most of the cost of their drugs. >> reporter: the move is expected to generate $4.5 billion in savings. megyn: the white house says this closed a big fat loophole.

>> reporter: the white house and the democratic leadership in congress argue under the old law companies were getting two deductions because they were able to deduct from the taxes they pay the amount of the subsidy that the government was giving these companies to help them out. so the government was getting double build. robert gibbs told reporters to insure that this is not something that's done without any time period or planning this doesn't go into effect until 2013. gibbs point out there is $10 billion in healthcare reform for support for businesses with early retirees. i have difficulty figuring out how the government is establishing a net savings when the closure of the loophole is supposed to save when they are giving companies money to help with this.

megyn: thank you, buddy. arizona senator john mccain is said to be in the toughest reelection battle of his career. he gets some help from his former running-mate, sarah palin. she'll be joining mccain in arizona shortly. he's facing a challenge from j.d. hayworth. how much will sarah palin actually help mccain in arizona? >> reporter: that's a good question. one thing she do is draw a crowd. a lot of people here today. they are expecting close to 3,000 people. so she brings the national spotlight. the national media. she is a great campaigner and she can certainly help john mccain raise money. another sthing john mccain said

she can do is help with certain groups of arizona voters. >> she is popular with the republican party and with our supporters. the tea partyers said they are not getting into this race. i just had a town hall meeting in prescott, arizona with the tea partyers. i'm happy with where we are and where we are going. >> reporter: the tea partyers may not be getting involved, but we have seen john mccain move to the right over the course of last year, criticizing the bank bailouts he once backed. and leading the charge in washington over the healthcare legislation and the cuts to medicare. megyn: there were reports from mccain's staff criticizing palin an went on "the tonight show" rsh and failed to mention her as one of the top contenders for the presidency. this is a very tight race for

the man who wanted to be president a short time ago. >> reporter: that's right. pundits will say this will be the toughest challenge john mccain has ever faced. he's facing a challenge from former arizona congressman j.d. hay worth. he's also a conservative talk show host here. he's saying john mccain is too moderate for arizona. we'll have to see. but we will see john mccain and sarah palin on the stage together once again in an hour from now. megyn: if you want to see not just john mccain and sarah palin but if you want to see j.d. hay worth you can. today on the neil cavuto show. by the way, on our web site at

foxnews.com anita will be posting updates throughout the afternoon. log on to foxnews.com/liveshots. staggering new numbers out on the deficit and the national debt. the cbo says the problem is bigger and worse than we previously thought. governor mike huckabee is here next with a warning on how this will affect your family. most dogs just chase cars occasionally. this guy eats them.

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megyn: what may be the last word on the south korean ship that sunk earlier today. we were told exploding

ammunition on the ship caused this to go down. something explode and the ship went down. there was speculation whether it was a north korean missile. now they are saying it wasn't. a number of south korean sailors died when that ship went down in waters near north korea. this is video of rescue teams head to the scene. can you imagine, you know the ship has gone down, many men lost their lives. we are told 58 sailors have been rescued. that is fortunate. south korean limit spokesperson saying north korea had no involvement in this incident. president obama's new budget sending the nation deeper into the red than originally thought. now the cbo says the president's

2011 budge -- budget will generate $10 trillion. you can't get your mind around that. but our next guest is trying to. hike huckabee, thank you for being here. >> those zeros are eye popping. we don't even have the capacity to think in terms of trillion. used to be a billion was a big number. now that's chunk change. megyn: it's out of control. >> we'll hit 90% of our gdp in terms of debt by 2020. at the ends of 2008 the average american owed $56,000 per household.

that's a lot of money. after a year of president obama we owe $72,000. by the we are 020 with the -- by the year2020. each household will owe $170,000. megyn: how are we ever going to pay that back. >> we won't. that's the point. if you were living that way in your household. then you would be so under water, you wouldn't be able to afford a car, a wash machine. how could you buy groceries. no one under any kind of economic scenario whether business or the private moments of your home can run your household or small business oag 90% of the -- owing 90% of the money you take in.

megyn: critics argue we don't have the money to spend, a trillion or more on healthcare reform at this moment. it's not fiscally responsible. the white house respond it's the only fiscally responsible move because we are bleeding money on healthcare. charles krauthammer is predicting the white house cannot pay for this healthcare overhaul and what we'll see is a national sales tax that we are all going to have to pay to chip in to try to get these numbers in more decent territory. is that likely? >> let's hope not. that's what europe has done. and a lot of the things we are doing is european. i expect us to be carrying shoulder bags soon because we are going european. i'm not. i want you to know. megyn: some of the best men carry them. >> here is what i do think may

be proposed. the v.a.t., value added tax used all over europe is problematic because it's still a hidden tax. each stage of manufacturing a product a tax is add it's added as the value inkreetss of a product. let's say you take some components to make a pair of shoes. the basic leather you tax it. once it gets to another stage you tax it and with it's retailed you tax it again. most of the tax is invisible, it's not transparent to the payer. i favor a consumption tax but that eliminates the other taxes. that's called a fair tax. it's transparent and it doesn't add to a tax, it eliminates all of taxes on corporate and personal income, investment savings and inheritance. it gets rid of everything except a consumption tax. megyn: how would this affect the

average american? would they know it's in there or would the price of goods just go up. >> everything would go up. they wouldn't understand that it wasn't that shoes cost more, what they would see is the prices sharply went up. and they were paying more which means with this 90% debt. you combine huge national debt plus this price increase from the v.a.t. and it spells economic disaster. megyn: a lot of people are worried. they see those numbers, they are worried about their kids and their future and what will happen with this country in terms of the red we are going deeper into. forget partisan politics. how do we get ourselves out of this. >> part of it is through the election process. i'm as not as gloom and doom as a lot of people. i know they are trying to clear

the track. we changed the process and push back hard against those in washington. this is not just a democratic problem. i'm a republican, everybody knows that. but i'm not going to give the republicans a free ride. we as republicans help contribute to this massive spending without responsibility. what we need to do is quit saying let's have winners and losers. let's say are there some solutions to the real problems we face? the answer is yes. but it will require statesmanship and not the partisanship. megyn: they can catch you on the weekends. >> 8:00 eastern, 7 central, we have a great show. james baker the former secretary of state will be with us. megyn: thanks, governor. he's the king of tv shrinks, but

dr. phil is in the dog house with a federal judge. why she called him a terrible, terrible man. we'll explain in "kelly's court." buckle up for the rrived your life. -- for the ride of your life. kris gutierrez is live with the blue angels. >> reporter: the air show starts tomorrow and they are giving us a sneak peek. we'll talk about that coming up right after this. [ woman ] with my diabetes... i make my efforts count... so i switched to the freestyle promise® program...

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megyn: kris gutierrez got a first-hand look at what it's like to fly. you already took the ride? how was it? >> reporter: i'm so lucky. if you haven't done this yet, i'll put your name on the list to make sure you get the vip treatment. i made it out without having to use this. i'm on the ground without passing out or losing my lunch. i think the people outside are clapping because of that. one plane just landover there. the air show starts in a couple days.

they took me up in the blue angel plane a few hours ago this morning. it is amazing because what you do is you feel that g-force. when we took off, we hit 6gs from the runway. went straightforward vertical and we were up in a number of seconds. our abs are tight, hands, knees, quads, calves. we sit 7gs at one point. that means my body weight 165 times 7, i felt 1,100 pounds of pressure. the men and women who fly in the blue angels do this day in and day out. then they go to the gym and work out. they are in tip top shape. megyn: on a scale of 1 to 10 how terrifying was it? >> reporter: 11.

it was scary. these air shows are so popular. it's completely free because it's at a military installation. 30% of all the blue angels shows are at a military installation because it's free. >> you can bring the family of five or six out. your admission is free. all you spend is what you buy for food and drinks. so you can't beat the deal it's a great family event. >> reporter: is a great family event. the blue angels take part in 60 shows a year. they will tour the country. it takes 130 sailors and marines to get the blue angels from show to show and they do a good job representing marines and sailors across the country serving our country. megyn: it's a beautiful thing to watch.

after putting my name on the list i'll barely fly american airlines, never mind the blue angels. thank you so much. i'm a chicken in the air. all those pilots out there who told me it's going to be okay. i salute you and thank you very much. no photo op, no news conference, not even dinner. president obama skipped out on a meeting with israeli prime minister netanyahu. why it is the united states that could even up paying a price for this in the end. and talk about a bad dog. winston chewed through two fence and attacked four different cars. two police cruisers. winston, bad boy. he's back on the streets and we'll explain why. >> a lot of places close to here we have seen where dogs have done a lot less and have been

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megyn: a quick look at top stories. the u.s. army reportedly planning to keep the suspect in the fort hood shooting free behind bars for the next six months. nadal hasan is still in a san antonio military hospital. video from last month's massive

earthquake that rattled chile. look at this. this is closed circuit television showing the destruction from inside a hotel. would you look at that video? have you ever seen anything like that? wow! today -- just today chile getting shaken by another quaisk a 6.2 magnitude. new details today on how strained relations are between two countries known for their strong friendship. israeli media playing up reports that president obama snubbed israeli prime minister benjamin netanyahu. the president reportedly cutting short the meeting to eat dinner with the first lady and no invitation to netanyahu was extended.

ralph, thanks so much for being with us. this is getting more and more attention. israel is our strongest ally and particular in the middle east. and a lot of people don't understand how we have gone from that situation to this tense and very strained position with them. how do we find ourselves here? >> the answer is two words. president obama. his treatment of benjamin netanyahu, israel's prime minister was disgraceful. we treat our enemies with greater courtesy. and it's utterly counterproductive. all this vendetta from the white house does is even current the palestinians and their backers to make wilder demands israel can't possibly fulfill. this is not a peace process or diplomacy. this is something about a chip on the president's shoulder.

megyn: the white house is ticked off because they don't want i will raise building more settlements. and building settlements in jerusalem. that's where the showdown got off the rails on policy. is the white house policy such a departure from what we have seen under past administrations? >> absolutely. this goes back to last year's cairo speech. will president obama attempting to appease muslims in the middle east and he raised palestinian-arab expectations. and in the past under president clinton, under president bush we have had face-to-face negotiations. the palestinians were offered one deal after another and it was always the palestinians who

walked away.