lots of ways to reach us. we need your questions. the gov. ric: nice to be with you, "america live" starts right now. megyn: thanks, guys, this is a fox news extreme weather alert, the east coast is under assault by mother nature right now. tornado watches from north carolina to new jersey. flood warnings are stretching all the way up to maine. evacuations, massive amounts of rain falling. this is "america live," i'm megyn kelly, hi, everybody. take a good look at that radar, what is left of tropical storm nicole is combining with a low pressure system to make for one awful storm. flooding up and down the east coast, nearly 21-inchess falling since sunday on wilmington, north carolina. nearly 2 feet of rain in three days. that tops hurricane floyd's five day mark of 19 inches set back

in 1999, topping the hurricane. many lost their lives by driving through water during that storm. so this time around authorities are warning the folks, don't even think about it. from the southeast to new england it is bad and getting worse, and we are working and watching it all. janice dean our meteorologist on over time today already in the fox weather center. >> reporter: thank goodness for our hair and make up team. megyn: god bless those geniuses. >> reporter: tropical storm nicole was only a tropical storm for six hours, megyn. we are getting a tremendous amount of moisture from the tropics. jamaica over 8 inches of rain, several people are dead, many are missing right now, and millions of dollars worth of damage because of this tropical storm. we are still getting that feed of moisture all up and down the east coast. there is the radar right now you can see the heaviest of rain moving towards the ou outer bans and the interior sections of the northeast. what you can't see on the radar, the winds. winds in excess of 30 even close

to 50 miles per hour. all of that saturated ground and all of those trees we could easily see those branches ripped apart and we could also see the power outages up and down the east coast. there is wilmington as megyn mentioned, incredible, historic rain for them over a four to five day period. still getting the stream of moisture. and the cold front that is also moving across the northeast, megyn is going to push all of this moisture along the coast. even though parts of new york and philly, you're getting a drying out period right now, more rain on the way, and then we're dealing with winds. let's take a look at the wind gusts right now. we are talking about wind gusts in excess of 20 even 30 miles per hour along the coast, taking a look at 6:00 p-rpbgs m -- pm today, 30 to 50-mile per hour winds and that will stay with us through the overnight hours, all along the east coast. look at long island over 50-mile per hour winds. that's the other part of the storm that we're not talking about, the incredible rainfall and the winds that will stay with us throughout the evening,

overnight tonight and into tomorrow. a quick look at the future radar, more of that rain streaming in overnight into tomorrow. we are not done yet. we'll be reporting on this throughout the afternoon, the overnight and unfortunately into friday. megyn: what a situation the even spire east coast there. thank you so much. folks, this is making for a nightmare travel situation in large twaths of the country. a live look at the new york metropolitan area. airports experiencing delays. when that happens there is typically a ripple effect all across the country. peter is live outside our headquarters with a firsthand look at the messy conditions. this weather was bad this morning and it's getting worse this morning. how is it faring for travelers. >> reporter: people traveling by planes, trains or automobiles are all being affected by wet weather, particularly people who are flying at airports ufp and down the east coast. those airports have been particularly messy all this morning. the delays at those airports are

chaining by the minute with the weather. i can tell you down in wilmington north carolina a lot of flights heading north to new york or philadelphia have been delayed or canceled. here in new york flights into jfk are backed up 2 1/2 hours already. and flights in laguardia are delayed an hour and a half. amtrak passengers in the northeast are having scattered delays because of tree branches on the tracks and high water but no cancellations there yet. down in north carolina officials said this morning there were too many flooded roads to count and many are impassible. some cars got stuck. to avoid further problems dozens of school district down in the tar heel state are closed today and dozens more had delayed option. further north some schools in maryland and fairfield, connecticut are going to send the kids home early from school and power is out for thousands along the east coast. megyn: you have to watch out for

hydroplaning on the highways. it may not be flooded but you can hydroplane. peter thank you so much. fox news alert. new reporting this hour on the international manhunt underway for terror suspects. these are the guys linked to an al-qaida plot targeting american tourists in hotels in paris, london and other hot spots. trace gallagher has more info. >> reporter: we have covered a number of terror threats over the years but with so little information to go on i can't remember authorities scrambling to stop what they believe is the real deal. intelligence experts say they believe this is a hit group of about ten people. they believe they are trying to go after unprotected areas in the united kingdom, as well as france and germany. now pakistani intelligence believes this group is headed by two british brothers along with eight germans. they think one of the british brothers might have been killed in a drone strike earlier this

month. remember the united states has upped the number of drone strikes in pakistan so they could disrupt these terror cells. authorities do believe this hit group, so to speak, is hiding out in the tribal areas monitoring chatter and phone calls coming out of there about logistics and facilitators. they are afraid of the real possibility, the very real possibility that some cells are apparently already in place, because they have left the tribal areas, they have snuck through turkey and iran and are now in europe. they believe they are planning a mumbai-style attack to use arms. we are talking guns over bombs because they can maximize the damage, the death they can do in-crowded places. remember the eiffel tower has been evacuated twice. megyn: i'm sorry trace, breaking news out of the white house where we expect rahm emanuel's departure is being announced. let's take a listen to robert

gibbs. >> we will save the specifics for then and we'll be happy to get into a long conversation on that. i don't have any news on that. i read your paper, i've read a number of papers. i'm here to tell you the president will have a personal announcement tomorrow. at that point he will deliver that news. >> reports are correct? >> unintelligible. >> i'm not going to get into that. >> sometimes you make personal announcements, why is this not rising to the level of a personal announcement by the president? >> i -- without getting into what the announcement will be -- >> people listen to this, it sounds like a game, we are talking about rahm emanuel to run for the mayor of chicago. >> lynn, come up here, you should brief and -- look guys.

>> i'm trying to move the ball along here. >> we all have deadlines, i understand that. i'm happy to talk about a whole host of subjects today. i am not going to move a whole lot on what i've already said. >> the news report is accurate that he is leaving to run for mayor. >> i'm not running for mayor. >> i'm talking about rahm emanuel. >> will he also possibly have two announcement, somebody coming, somebody going? >> i would bet on having two announcements, yes. >> will we here from the personnel? >> some of them, question. >> if he were to leave what effect would that have? >> a lot of people are leaving. there are reports about general jones, secretary gates, it's a good time for him to leave. key members of the national security team and the economic team, could you just comment on

that? >> yeah, i've said this a number of times, look, i think two years in -- if you look back historically, is a time in which people have come into government service at the beginning of an administration and leave to go back to academia or business, or to retire and go into other pursuits. i think it is in many ways the normal rhythm of an administration to do. we have -- i think i've said this to a number of you all, folks that have worked in here for the last two years have managed to pack four or six or eight or ten years worth of work into those two. the economic team has dealt with the type of series of crisis from housing to financial facility, to the recovery act, to unemployment.

i would point out, done so in a way if you look at the news today on aig, we are -- megyn: there you see robert gibbs refusing actually to confirm or comment on reports, including in the "wall street journal," that rahm emanuel will be announcing his retirement or his leaving his position as chief of staff tomorrow, and that he will be meeting with con state units and potential important political groups over the weekend in chicago before he begins to run in earnest for the position of chicago mayor on monday. those are the reports. robert gibbs refusing to directly confirm or deny. you heard one of the reporters say, why are you elevating this to such a big deal where you won't even confirm what has been suspected and reported by a number of outlets. it's not a shock that rahm emanuel might want to leave the white house and run for chicago mayor. now it's a question of the timing and who would be his

replacement. robert gibbs loathe to get into the specifics there, not sure why. talking about two years that's sort of the normal departure park, it's a hard job. mike emanuel is with us to put sper tebgt tiff into this. am i wrong the questions are when he's leaving and who his replacement is going to be. >> reporter: i've been told by sources outside this building that it is going to be rahm emanuel's departure announced tomorrow at 11:05 in the east room. gibbs hinted there would be two announcements made. my understand thap pete rorouse will be chief of staff. he was once chief to senator barack obama. clear hraoet president is comfortable with him. he has been an insider with this president for quite a longtime. winds he will be named as the

interim chief of staff tomorrow. clearly they did not want to role it out at the briefing with robert gibbs today. people i've talked to outside the building say the field is getting crowded for mayor of chicago. he's not going to be rubber stamped the next mayor of chicago, he needs to get there, get on the ground and start working con sit unit -- con state unit sees. he is feeling pressure to leave they wants to be mayor of chicago, not because the president wants him to leave but because of the next job he wants to have. megyn: perhaps the real headline here is what happens at this white house when rahm emanuel is no longer a part of it. i mean the political reports, those in the know say that the president doesn't make a decision without robert gibbs, valerie jarrett and rahm emanuel in the room. you can add david axelrod to that too. one of his core team is leaving the white house. he's known for his fiery temper but also for getting things down. some on the left really hate

rahm emanuel because he's advocated for some positions in the middle. he's wanted president obama to strike more of a moderate tone on issues like healthcare, much to the dismay of the left. nonetheless he is leaving now. what does that mean for this president and his decision-making process. david axelrod is the president's senior adviser and he said he's likely to leave to go work on barack obama's re-election campaign some time soon. >> reporter: that's right he is expected to leave to work on the re-election bid. this is a period of great transition at this white house. some would suggest it's an opportunity for fresh blood to come in. obviously the president does not like to have complete strangers in these key roles. that's why it seems to make sense that a guy like pete rouse who has been with him since he was a united states senator might be a shoo-in to stay a while longer, perhaps for the rest of this term to be the chief of staff. we'll make the president to make the announcement how he

qualifies and how long he will stay in the role. since he was chief of staff when he was ez senator, this is someone president obama trusts greatly. megyn: he'll have a lot of responsibility when and if he takes over. you can see that tomorrow on fox news. mike, thanks. also from washington and speaking of the white house and healthcare, the white house is getting involved in reports that the fast food giant and huge american employer mcdonald's, threatening to drop the health insurance plans of nearly 30,000 employees, all because of a new regulation courtesy of the president's healthcare overhaul. here is how the thing got started. around 8:20 p.m. yesterday the "wall street journal" reports that mcdonald's may drop healthcare for those tens of thousands of workers. less than two hours later mcdonald's responds saying that news is false, not specifically denying the allegation but saying, the reports were false

and full of, quote, speculation. and then this morning a spokeswoman for health and human services says that the paper and mcdonald's are both wrong. mcdonald's is wrong about its own plan. brian sullivan is with the fox news network and he's my guest now if mcdonald is dropping 30,000 people from the healthcare rolls that's huge. tell us why. >> reporter: it directly strikes at the healthcare plan. this is almost exactly what it was designed to prevent. and if this happens, listen the "wall street journal" got a hold of a memo. unless the memo from mcdonald's on their stationary was forged to hhs the "wall street journal" is standing behind its story. megyn: because once this report hit mcdonald says oh, my goodness, the white house says oh, my goodness. i've read that mcdonald's statement as a lawyer and said where is the explicit denial it's not in here. they say the report is false, that could mean any part of the report, and they said it's full

of speculation, well that doesn't mean we are not going to do it. then the "wall street journal" to back up its own reporting comes out and says we are basing this on mcdonald's own memos to the white house. >> reporter: to hhs, health and human services. it's a big deal, because listen, mcdonald's in this memo that reportedly does not exist at the "wall street journal," obtained megyn basically says look under this new plan we can't spend more than 80, 85% on sort of marketing. we've got to 0 spend it on the premiums for the 30,000 workers. they said we can't do it because you know fast-food restaurants have a lot of turn over it's man power intensive. we're just not going to meet it so we'll have to drop this so so-called mini med coverage for our workers. they are small plans but it strikes right at the heart of obamacare and what was exactly not supposed to happen. megyn: if mcdonald's has to drop the healthcare workers who picks up that tab. >> reporter: here is the rub. maybe this is good for mcdonald's.

think about it, if they drop these workers, okay, theoretically they could then get picked up not by the government but they would get government subjec subsidies. according to the kaiser foundation a well respected institute. a family of four making 150 p-% of the poverty level if they don't get healthcare paid for by their employer would get a tax credit. if the employer does pay for plans they'd get zero. megyn: they get a tax credit from the feds, from uncle sam. >> reporter: from you and me. tax credits come from somewhere. megyn: the people out there watching have a stake in this because it's not just mow and brian, trust me, you too will have to a pay for the subsidy that the workers are going to get. which is why they are saying its not true, it's speculation, it may or may not happen. what is health and human services saying. they are saying both mctkopld mc mcdonald's and the "wall street journal" shall wrong, why? give me the bottom line, we are not

business people, we are news channel people. >> reporter: the bottom line is this, they have to come to some agreement on this 80% spending on premiums. mcdonald says no according to the memo that doesn't exist -- megyn: there is an argument whether they have to pay that or not basically. >> reporter: they have labor turn over. people have to fill out forms all the time. megyn: they are haggling, negotiating we'll see if suddenly there is an exception given to mcdonald's given the publicity given to the "wall street journal." >> reporter: to the phantom memo that doesn't exist. megyn: i never saw the memo in my life. i don't know how that memo got to the "wall street journal." thank you. new developments today into an investigation of the department of justice -- into the department of justice t- on accusations that race and politics are playing a critical role in deciding voter intimidation cases. you know this case now. frank wolf of virginia is warning the attorney general ever the united states eric

holder to come clean about the decisions driving the case in question. there are whistle blowers from the department of justice saying that the department of justice is basically flat out racist and unwilling to protect white voters, period. that they don't believe the voting rights laws apply to white victims, and they don't plan on enforcing voting rights violations if the victims are white. that's what the two whistle blowers have said. there is hostility within the doj. mr. wolf is saying he may want a congressional investigation into this. shannon bream is live in washington. shannon you spoke with congressman wolfment he told you there is much more to this case. what more could there be? >> reporter: well, this is interesting, megyn. in addition to the two whistle blowers that you talked about he told me that there are a number of other people who still work at the department of justice, they are worried for their jobs, want to remain anonymous. they have told him stories of being harassed and intimidated

by higher ups when they raise concerns about race-based enforcement decisions. here is what he told me. >> i think there is a political agenda to not being race newt tral at the justice department. if there is any department, any department that that ought not take place, and it should take place in no department, but particularly the justice department whose job it is to enforce the law. >> reporter: and he told me he said i never thought i'd see the day that the department of justice wasn't complying with legitimate subpoenas. he says he's worried the attorney general eric holder isn't coming clean. he says he has a moral and legal obligation to the american people to come forward and clear up this situation to make sure that laws are being enforced and that nobody is being harassed in the department if they are speaking up about this. wolf says that he and other members have repeatedly gone to the house jew dish recommittee, congressman john conyers asking him to launch an investigation. that has not happened. i asked if they win in number is

that going to happen. he says i don't care what happens in november, i'm going to keep pushing. i spoke with an officer there. he tpaoupbdz it interesting that the names have not been refield by the doj. that speaks volume. here is a letter that he sent to the commission in a general response to the allegation. he says since pw-blging theassistant attorney jenna cornerstone of my message to the entire division is that we must recommit the division to enforcing all the laws on the books that we are empowered to enforce and we must not pick and choose among them. there is no policy of celebrity tiff enforcement and our actions bear this out. now we wait to see if that congressional investigation is launched at some point in the future. megyn: the inspector general of the doj, glen fine is investigating some of these allegations which is a major about face. we'll see how his investigation

turns out as well. shannon thanks so much. >> reporter: good to see you. megyn: likewise. breaking news from the fox news polling team. see what happens when we asked america are you better off now than you were two years ago? you may be stunned by the results. plus, two weather systems, combining to wreak havoc on the eastern seaboard. new watches and warnings going up at this moment. new developments in the epic face off between new york gubinatorial candidate carl paldino and a feisty reporter. paladino will be on this broadcast tomorrow, folks. the breaking news ahead. >> at the appropriate time you'll get it. >> this guy is the attorney general of new york. >> and you're his stalking horse. >> you made the charge. >> you send another goon to my daughter's house and i'll take you out buddy. >> how are you going to do that. >> watch. >> are you threatening me?

megyn: fox news alert, brand-new fox news opinion dynamics polls just out, i mean moments ago with stunning numbers on the mood in america. an overwhelming 89%, nearly 9 out of ten people say they are worse off or at best the same as they were two years ago. for a president who ran on hope and change that can't be good news so close to the midterm elections. joining me now susanness streupblg -- susan estridge, a fox news contributor. susan thank you for being here. 37% say they are worse off. 32% say they are the same. 11% say they are better off than two years ago when president obama took office. >> reporter: first of all i'm not sure who the 11% are. i've gone back to practicing

law, so i guess i'm better off. actually i have to be honest when i first heard the question without the numbers -rpbgs -- numbers, because as you say we just got the numbers. i thought this is going to be really bad. the fact that 52% says they are about the same is a little bit encouraging. i thought it would be worse. megyn: when you look at it in the abstract you can see your point. two years ago we were not in good shape. it was the peak of the recession, and it was not a good time in this country, the crisis had hit. the mortgage meltdown was upon us and so on. you you have to wonder if the 52% are happy about being in the same position or not. >> reporter: oh, no. megyn: president obama wanted to come in here and turn things around and didn't. the economy even though he says it's getting better, the mood from the people appears to be, we don't see the change. >> reporter: oh, there is no question you're right, megyn. i mean the democrats are in trouble this fall, and the tea

party is taking off, not simply because there is energy in the tea party and good organization but because people are frustrated and they don't think the country is headed in the right direction. and all these studies saying, oh but the recession ended a year ago, it sure doesn't feel like that. consumer confidence is lousy. this is a tough time in america. and, you know i was joking, but only after in jest to say i'm happy that more people don't think they are worse off, because the unemployment numbers have if anything been getting worse, and without jobs there is no recovery. megyn: you know, susan i'm going to talk about this with dana perino in the next hour. the president has been on a blitz lately with backyard barbecues and interviews with rolling stone magazine. he seems to be doing everything he can to get democrats fired up and out to vote in november.

he only has a little over a month until we get to november 2nd. how can he do it with these economic numbers and the mood of the country and numbers like this, 89% worse off or the same, how on earth ke overcome that in the next few weeks? >> reporter: well because even though politics may not be all local any more. we are not talking about one national election. if barack obama were running for re-election in five weeks i'd be much more nervous if i were him. he's not running for two years. so you've got all these individual races across the count tree, and even though as bill clinton said everything is national these days, you get individual candidates and i'll try to say this nicely, who may not be the best standard bearers in certain races. so it's not a matter of coming in and voting up or down on barack obama, it's a matter of deciding between, you know, andrew cuomo and carl paladino, or in california barbara boxer,

or carly fiorina. and in those individual races i think you've got a lot of democrats either running away from obama or running better than him. megyn: yeah, joe biden whispered in the president's ear, this is a big fing deal when the healthcare was signed but yet there isn't a single democrat campaigning on that. that tells you what they think of it. >> reporter: maybe in two years or four years it will look like a great accomplishment, but for right now with the concern with the deficit, and jobs, and with the benefits of the healthcare law yet to really kick in for most people, it's not a platform to many democrats in trouble are standing on. megyn: i'll show you this other poll from fox news dynamics. 34% say they mean to express support for the president's policy when they vote. 41% will express opposition and

21% say those policies will not be a factor. you can see the trend there not necessarily in favor of the administration. susan thank you so much for being here. we'll have more on this as i mentioned with dana perino in about 45 minutes. the water is rising up and down the east coast. massive amounts of rain falling right now, new watches and warnings just ahead. plus these two teen ablers are accused of invading a fellow students' privacy in a real heinous way. broadcasting his private sexual encounter online and then the target of their antics jumped off the george washington bridge killing himself. up next the problem for the prosecutors who are now going after these two, not to mention the campus that is dealing with the fallout. >> once these things get on the internet everyone has access to this. what do this students parents must think? it's mortifying.

>> it's very sad that somebody that you're going to trust is going to do that to you. and i feel very bad about this. . it was a real shock. i remember being at the hospital thinking, "i should have done more to take care of myself." you should've. that's why i'm exercising more now. eating healthier. and i also trust my heart to lipitor. [ male announcer ] when diet and exercise are not enough, adding lipitor may help. lipitor is a cholesterol-lowering medication that is fda approved to reduce the risk of heart attack and stroke in patients o have heart disease or risk factors for heart disease. lipitor is backed by over 18 years of research. lipitor is not for everyone, including people with liver problems and women who are nursing, pregnant, or may become pregnant. you need sime blood tests to check for liver problems. tell your doctor if you are taking other mecations, or if you have any muscle pain or weakness. this may be a sign of a rare but serious side effect. dean will never forget what he went through. don't take your health for granted.

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turns 95 tomorrow, yea, nana95. she says ain't that revolting? update on that tomorrow. outrage and horror today over a college freshman's suicide. authorities are now trying to determine if a body found near new york's george washington bridge belongs to this teenager. tyler clemente said he was going to jump after his private life was invaded in the most horrific way. two classmates accused of setting up a web cam in his room, one of these was his roommate and broadcasting his private sexual encounter with another man online for all the world to see. trace gallagher live with more. trace. >> reporter: you talk about starting a national conversation about privacy and sexuality this is a peeping tom case that ended tragically. 19-year-old tyler clemente outed online live.

he was apparently in his dorm room as you said having a same-sex encounter. his roommate, an 18-year-old then activated the web cam in their dorm room. then police say robby went to a friend's room. he then streamed that encounter live on the internet. and then robee reportedly even tweeted about the encounter and i'm quoting here, roommate asked for the room until midnight. i went into molly's room and turned on my web cam. i saw him making out with a dude, yea. tyler clemente found out he had been outed this way. he went to the bridge, he ended his life. molly whey and rob robee are facing two counts. you mention they did find a body in the hudson river.

they do believe it is tyler's because his personal things were there, his id and so forth, still have not yet identified that body. megyn: trace thank you. for more on this story i'm joined my fred, a former prosecutor. you gave us thoeuts on this before we came on and i thought what you had to say was so fascinated -- fascinating. your first instinct like all of ours are is throw the book at these two teenagers who had no right to invade his privacy and broadcast it live online. >> reporter: when i read this story this morning i was enraged and i'm heartbroken. the former fred ral prosecutor in me wanted to put these two in jail for so long by the time they got out of prison it would be a space station. when i calmed down and put aside kind of the passion that comes from my mediterranean grandfather and started to look at the law, unfortunately the law doesn't help us do that in this case.

they are not guilty of reckless endangerment or reckless homicide or manslaughter in new jersey. in new jersey you have to show extreme indifference to human life. yes what they did was reckless, it may have been arguably foreseeable. even given the fact that young, gay children are four times more likely to commit suicide i don't think you can tie what they did on a criminal sense to this suicide, which is just very, very frustrating to me as a former prosecutor. megyn: now, what, seriously, what realistically are these two facing? a, do you think they'll go to prison at all? we don't know if they have any records. i'm going to assume they have no record. b, if they go to prison, for how long? >> reporter: now, it's interesting. your left with charging them with invasion of privacy in new jersey which is a fourth degree felony punishable by up to five years. megyn: and the guy on the left, robby, he's facing more than

just reckless endangerment -- more than invasion of privacy because he's the one that broadcast it. >> reporter: when you transmit that makes it a third degree felony which ups the charges a little bit more. on the criminal side that's it as far as criminal tkharpblgs. -- charges. i don't think either one of them have a record. you could raise a real issue as to whether or not you could sentence them to the max given what happened here. i would think some 0 smart defense lawyer would say wait a minute. an invasion dash tkaurb can't sentence somebody basically for manslaughter and try to give as much time as humanly months because you couldn't get them on the manslaughter charge. megyn: can robby get out of the charges by saying it's my room, it's my web camera, i'm allowed to put it on. >> reporter: no he can't. the statute talks about some of the instances. the fact is it was a private act in a private room, and mr. clemente had every reasonable expectation of privacy in his dorm room. i don't think he can. they may try and argue that, i think he's got a better chance

of going to the moon with that one. megyn: what kids have to worry about today, a camera on a roommate's laptop videotaping every private moment they have. got to give you the last word. >> reporter: it's horrible. the technology -- we have a school district down here that is getting creamed because they sent home compute thaers have cameras on them. kids in general we have to teach our kids to be smart with this technology. quite frankly we're going to see too much more of this. megyn: and to be more sensitive to their fellow human beings, gay, straight, whatever they are, no one wants their privacy invaded like this, awful, fred, thank you. >> reporter: it's horrible, horrible, thanks for having me. megyn: well, shifting gears, why does a republican like christine o'donnell get hammered for talking witchcraft when she was in high school, while a democrat like patti murray who is a senator out of washington state gets a pass for saying osama bin laden is outbuilding daycare centers. something she said after 9/11.

we'll debate politics and double standards with meghan mccain next. hidden cameras turned up on our border, the outraged reaction after we showed the tape to a formal top official at homeland security. and did the times square bomb err have help -- bomber have help trying to pull off his attack. we'll show you what would have hand if that bomb had gone off.

megyn: fox news extreme weather alert for you now. driving rain and down the east coast at this morning. reports of airport delays and high water and tree limbs fall into train tracks leading to amtrak delays as well. tornado and flash flood warnings

are in effect for parts of the mid-atlantic region. 9 inches of rain fell in one north carolina county in just six hours. incredible. here is a question for you, is there a double standard when it comes to women and politics? that's a question being raised by some conservatives about media coverage of, for example, these two candidates. patti murray is the incumbent democratic senator from the state of washington. christine o'donnell is the republican running for senate in delaware. o'donnell taking a lot of heat in recent weeks on her stand on sex and marriage and comments she made about experimenting with witchcraft when she was in high school. but has this comment from a sitting u.s. senator, murray from back in 2002, has this got even as much attention? >> he's been out of the countries for decades, building

schools, roads, inch stra structures, healthcare facilities. the people are extremely grateful to make their lives better. we have not done that. megyn: she was talking about osama bin laden in case you didn't know. my next guest has a lot of experience dealing with this. she has a brand-new book, dirty sectionee politics. she is sitting on top of an elephant. thank you for being here meghan. there is a double standard. when this patti murray thing broke it was after 9/11. we knew what osama bin laden was capable of. thee says, look he's a terrorist a bad guy. she talks about how he is building daycare centers and healthcare centers, which, i mean, come on, really osama bin laden daycare centers? and so it got some coverage back then. the point is, as she runs

against dean owe rossi, he's shown one point ahead since being 7 points behind, not a word has been spoken. christine o'donnell has she been held to a different standard? has a woman like sarah palin be held to a double standard. >> the fact i had never heard the statement until literally when i was coming on the show and they showed me the clip from it. i definitely think there is a double standard. any time a republican woman says anything they are going to get hit three times harder and three times different ways. with christine o'donnell i think it's a new obsession, and she said things that i don't necessarily agree with but when it's on "saturday night live" it probably wouldn't happen if it was a machine or democrat. megyn: we talked about this a little bit when the christine o'donnell criticism started and sarah palin felt some of it.

maybe it's women poll situations -- politicians in general. some of our guests believe it's republican women politicians to derive them as either, nuts or sluts, pardon the term. sarah palin, for example, people said she was crazy or stupid. christine o'donnell they say she is crazy, stupid, it's like a narrative that starts emerging. ann coulter had a piece saying no more criticizing sarah palin or christine o'donnell when you have wednesday day murphy out there saying osama bin laden is building daycare centers. fair? >> i think it's fair, yes. these women are also very beautiful. i think it's interesting that christine o'donnell is getting hit for not being married and not having children. all things you wouldn't get if you were a man or maybe a

democrat. megyn: speaking of women in politics hold on one second. -rp we going to whitman now? we've got breaking news here out of california. this is gubinatorial candidate megyn who is eupl pwraeuld in -- eupl pwroeud in a scandal with her made. listen to what she says. >> as efficiently as you can, and then you can go home. with regard to mileage, she never asked us for mileage, you know, she ran a fewer rapbdz around menlo park, but she never asked us for my apblg. on her maternity leave she came to me and said i'm pregnant with my third child, and i have solved this problem for you. i have a friend who would like to work in my place. and if that's all right with you that would be great for me. and when i'm ready to come back my friend will go back to her job, and i'll come back to work for you. and i said, gosh that sounds great.

>> [unintelligible] >> absolutely not true. neither my husband or i received any letter from the social security administration. if there is a letter out there i don't know how they got it. it's not in our house. and so, you know, somehow it ended up in jerry brown's hands or gloria allred's hands. we never saw that letter. as i understand the process normally if that was to happen they would have sent a letter first to the employee, then two weeks later to the employer. i think there is a question whether employers with less than ten employees actually got such a letter. megyn: a few weeks advance of

the election is going against gloria allred. whitman says she didn't know the made was illegal until the made came to me a couple of weeks ago and said i'm illegal, help me be legal. she is saying she exploited her at $23 an hour. we'll have more on "kelly's court," stay tuned. i'm rejoined my meghan mccain. >> i think that whole thing is absurd, i watched a press conference yesterday. i cannot believe how that woman is crying. i know meg whitman, it's a total smear campaign. they are trying to ruin her, it's ridiculous and gloria allred should be ashamed of herself. megyn: there you go. i want to talk about the book a little bit. i think you're known for this how much you hate being called a rhino, a republican in name only. >> i do.

megyn: and you've been a lightning rod because even though your senator mccain's daughter you don't share all of his views. you are a republican now, but you haven't always voted weapon. you said you voted for john kerry, and you don't follow the party line, you're not an eye deowe log. do you feel vulnerable because of that. >> yeah from both sides. i'm not conservative enough for extreme conservatives and not liberal enough for any liberals. i'm somewhere in the middle. i think it's very post generation al. i'm 25. if i was a little bit older maybe i would be more conservative. this is how i feel. in colleges a lot of people are definitely on the same page with me. megyn: how do you feel being made into a target or are you used to that because you're senator mccain's daughter. you don't follow the party lines. what do they care if you don't feel the same way they do. >> every once in a while there

will be a zincker, i'm like ouch that really hurt. i am here for a cause. i wouldn't keep doing this if i didn't believe in it. megyn: we have seen barack obama go out recently and try to target the youth vote and the latest polls show there is more enthusiasm among young republican voters than there is among young democratic voters. he's trying to to turn that around by sitting down with rolling stone. >> ridiculous. megyn: why is that ridiculous. >> i don't necessarily think that's the right publication to speak out about things like that. i think he was on the cover, correct me in i'm wrong two or three times during the election. really not the publication i would choose to get the message out. standing with the youth vote it doesn't surprise me. one election day i remember thinking now he has to do something, now he has to be president because he promised everything, that's where the messiah charm came from. why i dislike him right now is

because he's disinch chanted an entirely generation of young voters from the political process. he promised everything, he didn't deliver. we have another jaded generati generation. megyn: all these independents really helped sweep him into office that are feeling a different way, how hard is it for you to think that things would have been different if your dad won. >> i definitely think far and beyond he would have been a better president. i think this is a great lesson in many things. maybe the next election should hadn't be like "american idol," who has what on their ipod and who place basketball better unfortunately i think the media fell in love with the idea of him and that's how he got elected. obviously people liked him as well. megyn: i've got to go but why dirty, sectionee politics. >> the dirty part is from all the scandals and things that happened during the election. and sectionee i keep quoting

henry kissing skwrer. megyn: what a pleasure. during the campaign, only two people in the world call me meg, my husband and john mccain. we have meghan mccain. meg whitman and megyn kelly. >> i used to live in-hous in hod i thought i'd seen a lot of rain there, but this is incredible *rbgs i've never seen flooding like this. megyn: new watches and warnings on a epic storm that has soaked part of the east coast with more than a -- with more than a foot of rain. a face off between carl paladino and a feisty, feisty reporter.

breaking news just ahead. >> what evidence do you have? >> come on. hey, stay away from me. don't touch me. @=h [ male announcer ] this is steven, a busy man.

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so freestyle lite test strips make testing... [ man ] easy? easy. [ man ] greatcall or click we'll send you strips and a meter, free. fr is good. [ man ] freestyle lite te strs. call or click today. megyn: fox news alert. stunned reaction from a former senior immigration official after watching hidden camera video showing illegal aliens rolling across the southern border. you saw this incredible footage yesterday on "america live." truck loads of illegal immigrants being shipped across the border rolling right past ominous signs warning americans to stay away from the transient smuggling route. we showed the tape to the former assistant to homeland security. >> reporter: this was actually

taken 80 miles away from the border in the casa grande sector in arizona it was on federal land. watch this. we have truckload after truckload of suspected illegal immigrants. if you count it there are 15-20 in each truck. this is all on hidden camera put out about it center for immigration studies. the hidden cameras also showed drug smugglers. this was taken in thermal imaging. this is a night camera triggered by motion sensors. nighttime video about 2:30 in the morning shows the drug smugglers. but it wasn't just in the dark of night these drugs were being smuggled. it happened in broad daylight. take a look at this. you have suspected illegals carrying bails of marijuana,60,

70-pound bags in burlap and sugar cane sacks. if you think this is unknown to the feds, this is a surprise, well, it's not because they went out after they got this hidden video and they got these signs put up by the federal government warning people in arizona not to stay in these area because they are dangerous because they are filled with drug smugglers. we showed this to the former director of i.c.e. under g.w. bush, julie myers. here is her take on the signs in particular. >> i thought the signs were the most sobering parts of that video. not only beware u.s. citizens, but welcome criminals and drug smugglers. this is your territory. the implicit message of those signs. >> reporter: dhs tells us the

border is more secure than before. julie myers says the only way to secure that is with a partnership with the local state police and the feds. instead of a partnership the federal government decided to sue arizona instead. it's pretty telling video. megyn: it's pretty disturbing. we asked our research team to pull some numbers on the war going on at border. mexico's president deployed the army to fight cartels back in 2006. since then more than 26,000 people have been killed in the drug violence. so far this month an average of 36 people were killed every day in cartel-related bloodshed. these cartels are not going quietly. 3/4 of the suspected arrests since president calderon took office have already been freed. so the battle goes on. fox news extreme weather as

tornado watches were extended until 7:00 p.m. tonight along the center part of the east coast. you can see the huge span of this storm live on this satellite feed. the remnants of tropical storm nicole and the low pressure system joining forces to make one nasty, awful mess. for travelers across the country the picture could get uglier. live pictures from atlanta hartsfield-jackson airport. some of the delays as long as 90 minutes. now we hear amtrak has been affects, too. a brewing storm of discontent from american voters. brand-new fox news opinion dynamics polls just released this hour shows 46% of voters polled want the healthcare law repealed. that number growing in the past two weeks.

42% say they oppose repealing the law. support is growing for the main issues the tea party has raised. lower taxes and less government. 70% say they have support those things. 22% oppose. it's important to note 13% of those questioned say they consider themselves part of the tea party movement. that's interesting. it doesn't jibe with the polling scott last miewns has been showing us which says it's a bigger number. i guess it depends on what part of the country you ask. we are getting new reaction from carl paladino. this tape is what bill hemmer and i used to call caliente. with "new york post" editor fred dicker. paladino on the one hands and "new york post" fred dicker. paladino says he's deeply

concerned about the privacy of his children and he's accusing the "new york post" of sending a photographer after his 10-year-old daughter. the campaign manager says the photographer attempted to take pictures of her through a window and followed her to a playground. >> you should think twice about trying to characterize me. >> you are a lawyer. >> i'm also a lawyer. >> host people would consider it a smear. >> i want to know why you extent your goons after my daughter. >> you have evidence against kuomo? >> i have a daughter, too. >> i have a daughter. >> stay away from me [bleep]. what evidence do you have? >> one more time.

come on. don't threaten me. who are you? i'm asking a question. do you have evidence to the charge you made? a simple question. >> at the appropriate time you will get it. >> you are work for cuomo. >> that's not true. >> what evidence do you have? you have work for cuomo. and you are a terrible journalist. >> thank you very much. when the pendulum swing -- you are way out of line. >> i didn't send him. >> yes, you did. >> i wish i had the power. >> i don't have the power.

>> if your photographer takes a picture of a 10-year-old again -- why doesn't he talk about it openly. >> you are such a biased person. you are off our campaign's list. you get nothing more from us. you go back to covering cuomo and kissing his butt. >> you are so out of line. >> thank you very much. >> you are so out of line. >> i'm telling you what, get it of my face. megyn: how exactly did that whole thing get started? eric shawn is live in our new york newsroom. >> reporter: i guess you can call it the new york governor's race gone wild. republican candidate, an outspoken buffalo businessman, carl paladino, he has been accusing reporters of not dig into the past of his opponent.

reports are that paladino had affairs. and he accused the new york media and reporters much ignoring that while they write about the 10-year-old daughter hat was borne out of his affair. dicker asked him this. this guy is the attorney general of new york. >> you are stalking. you are his bird dog. i'll take i out, buddy. >> how are you going to do that? >> $watch. >> reporter: he says he is a fair reporter. i interviewed paladino monday and he accused the cuomo campaign of using the media against him.

>> over the weekend he had some of his buddies in the press go out and take after my family. it's going to get -- we are going to vet you -- we are going to vette you and let the people know who you are. >> reporter: in response to paladinos claim that the photographer shoot into the house. mr. allen says the photographer was not from the "new york post" and he noticed paladino has invited public scrutiny of his personal life by choosing to run for goofn speaking openly about his mistress and love child. megyn: the "new york post" has an obligation to report on the political candidates, in particular gubernatorial ones. interesting story.

thanks so much. make sure to tune into this broadcast tomorrow. carl paladino, your gubernatorial candidate will join me right here on "america live." i'll ask him fairly about that confrontation and what was behind it, not to mention his race for the governor's seat which nobody thought a republican could win this time around. yet some polls show him in a tight race with andrew cuomo. the captain comes over the p.a. system and tells the cabin brace for impact. that's one thing you never want to hear. today the pilot who put her down nice and easy tells his story. some folks think there is a way to make money off the mid-term elections. a lot of money. have you been keeping an eye on wall street? the president was hoping for

warm and fuzzy feelings in iowa. but the hawkeye state did not exactly deliver. and dana perino has some thoughts on the reasons why. >> i have a 24-year-old son who campaigned fiercely for you and was inspired by your message of hope. he graduated from college about a year and a half ago with honors and he's struggling to find a full-time job. [ male announcer ] if you have type 2 diabetes,

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megyn: the white house communications team may be nursing a bit of a headache. president obama speak live in a series of backyard chat looking to energize the base and show he can connect with real middle class voters. but message may have been lost in translation.

"new york times" where, sceptical audience greets obama. "wall street journal." obama struggles to reconnects. "l.a. times" faces tough questions. these are not the headlines he was hoping for. dana perino who was press secretary under george w. bush joins me now. >> i thought the backyard barbeque idea was a good format because it would get him into a smaller setting. but i think they tried to do too many of them too close together. so the national media picked up on all these stories that said he's cool, he's detached, and we catched from reality and he isn't connecting with people. that's a theme reporters have picked up on and he can't seem to break that streak.

i agree they are probably popping headache pills today. megyn: is watched him in the backyard setting. yesterday he tried to reassure one female voters about the healthcare law and explained to her she won't have to buy a government-run healthcare plan and there is nothing in the healthcare plan that will impact whether her mother could get heart surgery if she needed it. but there is such a scepticism. this is not a random town hall. they were preselected by the wythe house. it just seemed like they were buying it. the president's word may not have the power it used to have. >> i think that that's true. for any politician at some point people start to tune you out. it's surprising people have started tuning out president obama earlier than most presidents. take it to july, the biggest part of the bp oil crisis in the

gulf. that's when people started to pull away and stop listening. remember, megyn, this week senator john kerry said something to the effect that voters are not that informed. it was more insignatur -- it wae insulting than that. i think it's the opposite. i think voters are more informed than ever before. it's not connecting, the dots seem so far apart there can't be a way to connect them. that's a dangerous place to be. i remember going through some of this when we struggled before the surge in the war in iraq when when i was at the white hoe and it is difficult to break out of. megyn: what can you say at this point? there is such an exasperation in

see you what. 55 per of likely see you what voters disapprove of his performance and 59% don't like his handling of the economy. the question i have is can he go to as many backyard as there are in the united states of america, but with 9.6% unemployment and people believing he mishandled the economy, what can he say at this point? >> necessary's willing to change the policy there is probably nothing he can say. my free advice which is worth as much as you can pay for it, they should stop talking for a couple days. he has shown he is willing to fight for these democratic raise. he's not on the ballot. but some people say it's a referendum on his policies. he's probably at this point hurting democratic candidates because he's on national news every night and it's not going that well.

megyn: the message seems to be coming out of the white house where it was this week from president obama, buck up, democrats. he called them irresponsible if they were going to sit on the sidelines. joe bind said quit whining. john kerry called voters ignorant if they don't support the democrats. >> it's not inspiring or confidence induce. in some ways when people ask you why you are in such a bad mood, this puts you in a worst mood. one mistake they made from a tactical standpoint with yesterday in the house representative boehner forced a vote on the adjournment issue. he said if you vote to ajirnt's a tax on all americans. speaker pelosi had to come down to the floor and cast the tie

vote to show how disenchanted her caucus is on these issues. it's just astounding. megyn: the latest "wall street journal" nbc poll, three weeks ago the gop had a lead of 9 points. are the democrats making some progress? >> you can expect anything to tighten up after labor day. the most important thing you will see personal tax increase on both sides of the aisle and you will see extreme get out the vote measures. turnout is key for this election. megyn: thank you so much. it's an incredible story. this woman threw acid in her own face. she suggested it was somebody else who did it, but she was the

one behind it. thought to have been a desperate attempt to get attention. but now she is facing the music. how did she plead to the theft charges for taking the doe nations of well wishers? a big time attorney grabs a housekeeper and tries to take down the woman who wants to run the state of california. nicky diaz shown there. that's on "kelly's court" today. >> you can expect a call very soon from my lawyer, gloria allred. diabetes testing? what else is new?

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it's a not guilty below in court from the woman who admitted to an acid attack hoax. she pled not guilty to theft

charges after being accused of spending $1,500 in donations from well wishers after she claimed a stranger threw acid in her face. turns out she did herself. >> reporter: remember that press conference she gave detailing that attack saying a woman walked up to her at the starr bucs and said, "hey, pretty lady," then threw acid in her face. after that the money started rolling in. the country i am a thied with her and she had $28,000 in donation. she bought apple computer accessories, clothing, plane tickets for her parents. she pled not guilty, but now she has admitted she fabricated the information about the attack. she actually rubbed drain

cleaner on her face. she is back on a federal facility not so much because of the scars, but undergoing mental counseling. doctors say those scars will mostly go away. her parents say they will pay back money and the prosecutor says he will take that into account as he's considering the charges against her. megyn: that will help her on the civil claim but it won't excuse her on the criminal charges. a hero pilot is speaking out about the emergency landing he was forced to make and new questions about what went wrong in the first place. meet the new captain sully. a dramatic last-minute effort on the house floor for a vote on the tax cut extension. why the democrats chose to duck out on the vote they were pushing for in the first place. >> the american people sent us here to do their work. we are not here to do our work to get reelected.

and i'm going to ask all of my colleagues, vote no on this adjournment resolution. [ commentator ] lindsey vonn! she stays tough! earlier, she had an all-over achy cold... what's her advantage? it's speedy alka-seltzer! [ male announcer ] alka-seltzer plus rushes relief for all-over achy colds. the official cold medicine of the u.s. ski team. alka-seltzer plus.

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the only medicare supplement plans endorsed by aarp. when they told me these plans were endorsed by aarp... i had only one thing to say... sign me up. call the number on your screen now... and find out about an aarp medicare supplement insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. megyn: a new sign from the white house that president obama's chief of staff rahm emanuel is stepping down. the white house saying the president will make a personnel announcement at that time. the "wall street journal" reports that he's leaving to campaign for the job of chicago

mayor. people applying for first-time unemployment benefits fell by 16,000. the father-son attorney team that defended rob blagojevich in the corruption trial has withdrawn from the case. they asked the judge to be released before blagojevich is retried on corruption charges. it was suppose to be a lifeline for democrats floundering in the mid terms. an extension of the middle class tax cut. but democrats in congress decided to tread water essentially voting not to vote before adjourning last night. they went home to campaign, prompting this reaction from minority leader john boehner. >> the idea that we are going to leave here and not extend all of the current tax rates to end the uncertainty is an

irresponsibility on the part of this congress. and how any member can vote to adjourn and put this into a lame duck session, i think is putting your election above the needs of your constituents. megyn: the big question, did democrats just snatch defeat from the jaws of victory by duck out on this? mike gallagher is a fox show host and fox news contributor. nancy skinner is a talk show host. it's become a political issue, they punted on these tax cuts and they are not willing to take this vote in front of the american people until after they have saved hair jobs or lost them. nancy, let me start with you as the democrat. cowardice? the "boston globe" saying it's an example of government

ineptitude and cowardice. >> as a democrat -- yes, it was an acts of cowardice. because this would have been an important argument going into the campaign season. the extension of the tax cuts -- if we did nothing everyone's taxes would raise. who did that? george bush and his congress voted in 2001 voted to increase the taxes in 2010, in the next president's term. we didn't do this. george bush and those guys voted to raise your taxes in 2001. now we are going to lower your taxes. whose taxes can we afford to lower and whose do we have to go to deficit reduction. that would have been a winning argument and they didn't do it. megyn: there is a question about whether they had the democratic votes for that middle class tax

cut. >> i have to confess watching a democrat like nancy scold her fellow democrats for punting on the issue pichts's a dumb and dumber. they had an opportunity to advance their old class warfare argument. let's punish the job creators who make $250,000 a year or more and let's show we care for the middle class and they punted. this is what it looks like when you are a political party that's desperate. this is a party that knows they are going to get their clocks cleaned november 2. they are trying to avoid anything that could rock -- that could roil the waters. for us republicans, it's the gift that just keeps on giving because they can't get it right. megyn: it appears they didn't want to take the vote. there were democrats in the senate who weren't ready to sign

on for only the middle class, they wanted it for everybody. nancy, if you get 31 democrats in the house who said we want it for everybody, and the 6 or 8 democrats or independent in the senate who say we want it for everybody, now they go home and they campaign, and they campaign on that among other things and then they come back, what makes nancy pelosi and harry reid believe they will reverse themselves on what they have been telling their constituents? will they come back to the congress and say i lied, i'm going to vote for a tax increase on the rich? >> i don't know what those -- that small group will say. but i think it's not a smart strategy. but mike before you get too self-satisfied, if the vote actually went through and the republicans -- if they had to say we are going to raise everyone's taxes, 98%, just

because we want to for the wealthiest 2%, that would be a losing issue. the democrats at large would run on that issue. we are for tax cuts for the middle class. it will still be in play. >> woulda, coulda, shoulda. this is the problem your party has. you can't expect to handle these massive spending increases and huge deficits without raising tax on everybody it won't be just the top 2% that can bear the brunt for these trillion dollar programs your side has come up with. democrats know nobody wants a tax increase for any category at this time in our nation's economy. you guys have to figure out a way to pay for all this stuff. it won't come from the money tree. >> you want to raise the

deficit, borrow money from the chinese to give it to people who make a quarter million dollars. megyn: okay. whatever you say -- i'm rubber, you are glue. mike, nancy, thank you. folks, speaking of tax and the economy, the stock market is two hours away from finishing its best september. it seems strange considering the bad news on unemployment and housing. some folks are suggest we could be seeing the start of a mid the term rally. that would be nice if it's true. is it true? >> let's give credit where credit is due. a month ago, three weeks ago, 31 house democrats sent a letter to pelosi, why don't we extend the bush tax credits and what did we have? we had a huge rally. september and october, the two worst months for the stock

market. september bucks the trend. now 40 house democrats saying they would be interested in extending the bush tax credits for everyone. 7 senators may also be interested. therein lies your stock market rally. now that they will adjourn and not get this passed through it may be a lame duck session. i suspect october will be a bloodbath for the stock market. >> both sides of the aisle have been talking about the uncertainty. they hate uncertainty. they talked about a bloomberg survey of american investors who thought 70% thoug president obama was antibusiness. they said they were holding back capital because of concerns about a pending tax increase. it's the uncertainty on this

issue. >> we have to be very, very careful in america to buy what they are selling. if we do get a bunch of of house democrats and senators saying we'll extend the bush tax credits for one year, be wary of that. that won't help. you make long-term decision when you hire, when you buy a car, when you buy a machine for your business, it has to be a five-year window, not a one-year window. taxes are going up for every one rsh. don't let them fool you whether it's a tax credit for a child or the marriage penalty or capital gains dividends taxes. january 1, unless there is an extraordinary sessions in congress you will see higher taxes across the board. megyn: don't get married, don't have children, don't invest, don't die, and don't make over $250,000. >> the estate tax is going to go up. don't do any of those things

unless you are prepared to pay more taxes. >> give us five years, don't give us a year. megyn: you can catch eric every week night on money rocks. airing on the fox business network. it's a good show. thanks, eric. she wants to lead california, running for governor in the golden state. but meg whitman's campaign is facing one of its biggest challenges from her former housekeeper. the story? the celebrity attorney and allegations of dirty politics. next in "kelly's court." you can check out the facts behind this case on foxnews.com/layer today live. >> i don't have papers to work here and i need her help. i want her to help me get an

immigration attorney. miss whitman just laughed. @k@k

megyn: "kelly's court" is back on session. on the docket a celebrity shark, a heartbroken housekeeper and the governor's mansion. nicky diaz worked for nine years in the home of meg whitman. california's republican candidate for governor. now diaz with help from humble hollywood attorney gloria allred is claiming whitman knew all along she was an illegal immigrant and abused diaz for the better part of the decade. >> she treated me as if i was not a human being. i'm doing this because i know

there are a lot out there who are mistreating the nickies who work so hard for them. megyn: whitman responding to those tears a few minutes ago saying it's a political hit job, a big smear by her opponent jerry brown who gets some big-time financial support from guess who, nicky's lawyer, gloria allred. >> perhaps jerry brown has been in politics too long to know any other way to do politics. this is a baseless smear attack and he should be ashamed of himself. i feel bad for nicky. she is being used by cynical people. brown and his supporters care nothing about her and i'm sorry she has been nut this position. megyn: how.this case play out? let's ask our panel is, lis

weihl and arthur aidala. she is suing forback wages they claim with itman didn't claim. -- whitman didn't pay. does she have a case? >> she has a case. i think the bigger picture is about the political aspect of this and whether she is credible. megyn: do you have think there is a political edge here? >> is she credible? that many the whole nine yards. did her employer, who she lived with for nine years, in and out of her house take care of her children, did her employer know the paperwork -- did she know she was not legal in this country? it will be like any other case we worked none this show. who do you believe? he said, she said. in this case it's she said, she said. i don't think gloria allred is going to stake her reputation on

someone gloria doesn't believe. megyn: let's get to the facts. meg whitman -- i think both parties agreet woman filled out a w4, filled out the paperwork. but she filled it out falsely. she used her sister's social security number and her name. she claims meg whitman got notified by the department of social security over the course of the employment that they didn't may have and there was a problem and meg whitman knew and ignored. >> i have her w4 in front of me. maybe it was fraud cents but how would you know. i have got a social security card. i have got her california driver's license. i have her u.s. department of justice eligibility ever if i case form in front of me. and it wasn't just diaz giving this directly it was through an employment agency. really everything was done correctly here.

megyn: what are you supposed to doos an employer? i have a nanny. i hired her. i'm certain she is legal. she provide all the paperwork. we have the taxes taken outs. but do you hire anna private investigator? >> the other layer of the each employment agency. you pay thousands of dollars. >> you are correct. however, where you lose credibility or where the governor loses credibility is this woman who has been quote-unquote -- she was part of our family. she was there all the time. you learn about people. and people over the course of nine years it would have slipped out. there is that letter. megyn: she claims it could all come down to this letter she claims social security extent meg whitman notifying her about

these problems, the document not matching you have.

you. megyn: rejoining me, lis weihl and arthur aidala. it comes down to whether she got one of these letters from social security what it said. >> whether the nanny actually got the letter and whether whitman actually got the letter. social security is saying they will not confirm or deny any letter was sent out. they said they ended this program of sending out no-match letters in 2007. and the pre-2007 letters were confidential. that means maybe diaz got that letter and whitman did not as

the employer. how can you impugn on whitman the responsibility of know being that social security mismatch. megyn: let's grants lis's points. let's say she didn't know. she is claiming she was abused. she was not treated well. she only got paid $23 an hour. and she didn't get paid for her extra time -- she wasn't rei am burd for her mileage. this gloria allred claims was exploiting, disrespecting within humiliating and emotionally and financially exploiting nicky diaz. $23? minimum wage is $7. >> i don't think that's the abuse they were citing. they were citing swroafe -- theg overtime charges. it's like every other case. if she has records, it will

never get that far. >> if the conditions were so horrible over 9 years, why would she -- >> does she say i'll help you get back on your feet? megyn: we have a shard wrap. thanks so much. we called meg whitman a democrat. she is a republican. i don't know if meg whitman knew this woman was illegal or not. but this lawsuit smacks of politics. to me $23 an hour is not ex-ploy tie tough or abusive and i'll bet this maid didn't think so either.

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