>> steve: they were able to rae something like $200,000, 220-mile trek from hershey, pennsylvania to our plaza. congratulations. >> gretchen: have a great day. bill: all right, here we tkpwoerbgs a whole new week anmonday morning, new details already on a worldwide alert for americans overseas. new reports saying that terror plots could focus on three security screening areas at five major airports in europe, that could be like the curbside check-in or before you go through the actual security area. good morning, everybody. kind of a different look around here. can you guess what is different? good morning, martha. martha: good morning, good to see you g. morning, everybody, i'm martha maccallum. has a big story, security officials in the u.s. and europe say they believe that al-qaeda and other terror groups are planning a strike and that has prompted the warning for americans in britain, in france and in germany in particular. bill: u.s. citizens told to take precaution and be on

high alert. what does this mean to you? greg palkot with a report on the possible targets. what la -- what are they? hello. >> reporter: good morning. there are been -- there have been warnings but rarely a warning that covers an entire country. at the state department, they're spelling it out, telling americans here in europe of the potential for terror attacks and also to take safety measures to protect themselves when traveling, specifically as we've been reporting for the last several days, al-qaeda said to be planning a series of commando-style attacks on spots free kwebt dollars by foreigners, men's, like the eiffel tower, landmarks in berlin, the check-in, exterior areas of airports. the government in the past 24 hours has followed the u.s. lead, there is already a severe terror threat here and warning travelers will going to germany and high alert, france, germany, as for the yankees across

london and europe, we've had a fox team out, sampling opinion among tourists and business people, most of them quite stoic. here is a bit of a sampling. >> of course it's in the back of our mind, but i don't think that it was -- i had a wonderful time and will come back again. >> i did not change any of my travel plans. i'm here on business, and i come here quite a bit. so i'll just keep my eyes open and hopefully, things will work out. >> the state department underscores they are not telling americans not to come to europe, just to be careful, apparently americans taking the cue, bill. bill: what are the particulars on this plot, where did it come from, who was talking? >> we're getting more details by the day, bill. as we first reported last week, it seems the center on an afghan german fellow who trained with al-qaeda and was captured by americans in afghanistan, new reporting today says that he was told by a high level al-qaeda

figure in an al-qaeda stronghold in pakistan up against the border with pakistan that none other than osama bin laden has signed off on this plot, even providing funding for it and the plot is aiming at these serious targets which he named. that info, apparently added to other information that the u.s. has, made it very clear to washington that they had to move, had to move now. we've been seeing confirmation of that, via the state department warning. bill: much more on this, greg palkot, thanks for that, leading our coverage from london. martha has more. martha: let's take a look at the recent terror warnings and see if all of this adds up. september 14th, police evacuated eiffel tower and the park that surrounds it, it's a paris landmark and they had a bomb alert and that's what provoked that, two weeks later they did it again, evacuate thank entire area, on september 20th, france on alert for possible terrorist attacks after receiving a tip that a female suicide bomber was plan to go target the

transport system there. then on september 29th, just a few days a. western security officials said that a terror plot to wage mumbai-style shooting sprees or other attacks in britain, france and germany was an active plot. we want to hear from you, what you're thinking about all of this. log on to the website, fox news.com, answer the you decide question of the day. we're asking how alert are you when you're traveling, would this change your feelings about going anywhere, on a scale of 1-10, with 10 being the highest, how alert are you to possible terror alerts when you are traveling. log in, weighing in, a lot of people are voting and we'll get you a feel on all of it. bill: we are getting now new reports that militants have attacked at least 20 tankers carrying fuel to the war effort in afghanistan, this for u.s. and nailo forces. -- and nato forces. what they're looking at is the cop voy that is burning in the night, the pakistani taliban claiming

responsibility for that fire, killing four, injuring seven, others, military officials, saying it happened near a reportedly guarded terminal. it's the third attack on tankers in as many days. it seems to be the latest maneuver, and believed that two of the recent plots are in retaliation for drone strikes and nato attacks inside pakistan. martha: what a mess in the housing market. we knew it was bad. now, it is worse. the number of banks, have you heard about this, are putting a stop to the foreclosure process, and in some cases, lenders are even considering giving homes back to people after they have been evicted. what is all of this about? stuart varney, fox business network, joins united states -- joins us almost every day >> it's a total mess, it's gotten worse. it started with allied bank, then j.p. morgan, now it's bank of america. as you said, they've halted the foreclosure process,

hundreds of thousands of foreclosures are at issue, halted. lousy paperwork is the problem. false signatures, wrong signatures, missing documents, missing records of various kinds. the lawyers sued and said you can't go through with this foreclosure. it's a problematic foreclosure. well, now it's been halted for hundreds of thousands, and you raised the right question there, martha, looking back, the foreclosure that is have already taken place and the homeowner is out on the street, where you now -- will you now have to go back, look at that foreclosure all over again and maybe try to put that homeowner back into the house because it was a false foreclosure in the first place? that's looking backwards, and that is a possibility. now look forward, and you have to think what's the government going to do about this? can we have this situation get much, much worse with this really -- where there's really millions of foreclosures upended and stalled, will they have to call a halt to all foreclosures in the future

while the mess is sorted out? it's a terrible mess, with -- look at it this way, almost 10 percent of the population is affected. martha: wow. >> 9.6% of all mortgages are 90 days late or more. they're in delinquency status, okay? so there are loads of people affected by this. martha: when you think about what it does to the process, just phruts brakes on the proesand the process is what allows foreclosures to happen or not happen and the properties can be bought up by somebody or the person who is foreclosed upon, to work out their financial situation. stagnate thank has to be a huge negative. >> it's a huge negative. what about those people that want to buy a foreclosed home? why should they? if that foreclosure is not a proper foreclosure and it's going to be upupset after you bought it -- >> martha: it's not your house after all, right? have to give it back. unbelievable. stuart varney, always good to see you, sir.

bill: checking the calendar, 29 days away, folks, with the heated three-way senate race, charlie crist, running as independent, shrugging off the competitors. >> it's not some stars from outside florida that wins this, it's floridians. they're so significance and tired of people who run for office and all they look at what the republican right wants to do or the democratic left -- democratic left. what about the florida middle? >> we want somebody who will stand up for what he believes and stand up for it and stick to it and do the right thing for the people that need help. that is kendrick meeks. bill: al gore, stumping for the crist democratic competitor, kendrick meek, and mitt romney hitting the trail with marco rubio. rubio leads by more than ten points at a recent polling in the sunshine state. martha: well, if they're in,

i'm voting them out, those are the words from one voter in massachusetts that says duvall patrick has his work cut out for him in the race in massachusetts, the republican candidates, charlie baker is closing in on the governor. he's now trailing patrick, but only by a few points. just a few days ago, listen to this story, he picked up an unexpected endorsement in massachusetts, the former running mate of the independent candidate, he's the third candidate in this race, tim cahill, bailed out on the guy he's supposed on the ticket with and said no, i'm going to support charlie baker in this. this is a huge upheaval. we'll talk about the endorsement, the race, and about what he would plan to do as governor of massachusetts if he could pull this off. he's coming up in a little while. bill: what are we, 29 days, so tomorrow is 28, that makes four-weeks! martha: that's right, bill hemmer. bill: holy cow. i can add, too, some days!

a report that a major cell phone company tacked on mysterious fees to your phone bill. we'll tell you about the investigation and what you need to know, and everybody needs to know this. martha: is president obama starting to downsize his plans, his agenda? we're going to tell you what the white house plans to do if democrats do not take control of congress come november, according to political prognosticators out there. bill: a specific warning for americans vacationing near mexico after this u.s. couple was ambushed, the man offs the right was killed bay suspected drug gang in mexican waters. details on that moments away. and listen here: >> hello? yes. >> okay. are you sure that your husband got shot? >> yes. in his head. >> okay. >> yeah.

>> they say there is an enthusiasm gap, and that the same republicans and the same polices that left our economy in a shambles and the middle class struggling, year after year, that those folks might all ride back into power. we have to move this country forward for you and your future. so there better not be an enthusiasm gap, people! bill: president obama trying to fire up the folks, supporters, to get democrats to the polls.

twenty-nine days, there are reports the white house has plans to stkaeul back its approach on the big legislative issues -- scale back its approach on the big legislative issues, hoping smaller scale victories will help the president make good on the campaign promises. will that work? bob beckel, andrea santaros, columnist, and both fox news contributors. nice to see you both. in a moment, i want to you tell us the biggest surprise we'll stphaoe 29 days. first on this topic, andrea, smaller bites, does this work? >> well, it does work, but i find it hard to believe that this is the strategy that barack obama is actually going to pursue. i think, bill, actions speak much louder than his words, and i think that his style of governing before has given us any indication he's not going to operate this way, but bill, he doesn't have a choice but to try to manage expectations and try and scale back, because

whether republicans retake the house or the senate, a lot of the conservative blue dog democrats will not be returning to congress and obama will have to deal with a very smaller caucus in both houses and a more liberal caucus. so as i see it, bill, i don't see him getting any of the stuff he's saying he's going to do. bill: nothing? >> republicans will be very unwilling to compromise on anything that doesn't have to do with the economy, and i just think obama having to deal with, bill, either his base, which is republicans -- >> bill: hey, it's a big old goose egg. what about that bob? >> as if republicans have been compromising already. they haven't compromised sin the beginning of this term. there's nothing new about this. there is going to be a smaller democratic caucus in the house and senate and even if republicans take the house there's going to be a period of gridlock here which is going to be enormous. because if you saw gridlock in the last congress, where the democrats have the margins they did, imagine this one. let's keep in mind, there's a lame duck session of

congress that has to happen after the november elections, with the current congress coming back to vote on the bush tax cuts. that's going to be very interesting to see huh that plays out. bill: climate change is out there, immigration out there, immigration, terrorism, all that to be debated. republicans need in the house 39 seats to gain the majority, republicans need in the senate, ten seats to gain the majority. they had virtually 60 votes on the democratic side for the past two years, andrea. you take 58 democratic senators and two independents -- yeah, and that's why they were able to get a lot of this stuff through. that's why the argument that republicans didn't come along with us doesn't hold water, bill. they never needed republicans. that's why they didn't pass tax cuts because they didn't have democrats to go along with it. so look, i don't don't see like i said obama getting any winds on all of this. i see wars on everything he wants to do. bill: that means gridlock, then. >> but gridlock isn't necessarily such a bad thing, particularly when you look back to the last two

years. the market wished we had gridlock. i think gridlock at least signifies certainty that we're not going to have these massive reforms. let's take time, chill out a little bit. what he just did, i wish there was more gridlock in the last two years. bill: what you find, you go back to the '90s, americans like it when there's a divided bottom. we'll see if that's the case now. bob, you and i were talking about this a week ago, 1998, a former wrestling champion, jesse ventura, stunned the world when he became governor of minnesota. that was 12 short years ago. remember that night? everybody was surprised by this. a fearless prediction. there will be surprises in 29 days that no one can forget. can you forget one -- can you predict one of them? >> i've got a couple in mind. one is governor perry of texas will be upset by white, which would be an enormous upset if it were to happen. the other thing that i think will happen is russ feingold, who is behind

right now, considerably in the polls, will come back and shock everybody and win that seat back. bill: you're on record. perry is leading in the polls in texas, eight points on average. and remarks do you have a shocker for america that you can predict now? >> since you brought up jesse ventura, that triggered the wrestling in my mind, linda mcmahon in connecticut, i say watch her, bill, i think that she has appeal with women and blue collar voters. bill: that race is getting tighter. do we have the shot of jesse the body? do we have the shot, i think it's in the makeup, and maybe likeo throw we go, a nice, yellow boa. >> it looks like bob! >> thank you very much, andrea! i'm coming up that way, so be careful. bill: so we've all been warned. bob, thank you. andrea, thanks, have a great week. >> thanks bill. martha: well, don't forget about the governor's races out there, folks, massachusetts is a very big state, of course, but could

another scott brown-style upset be in the works this time, this time in the governor's mansion? republican candidate charlie baker joins us next. bill: ever look at your phone bill and say what's that doing there? grab your bill, one company now giving $90 million in extra fees back to the american consumer.

bill: want to get you down to north carolina right now, the governor, beverly purdue, getting a good look at this, crippling the

state. tropical storm nick nicole, sweeping through last week and many homes are under water, roads are blocked, schools are closed, hundreds have been evacuated. there are reports of at least five storm-related deaths in north carolina alone. state officials say parts of eastern north carolina experienced the worst flooding they have seen, going back to 1999, and when hurricane floyd came ashore. martha: it's not usual that a cell phone company pays you, but that's what verizon wireless is doing, they're taking the heat for reportedly overcharging customers, the company agreeing to make one of the largest refunds in history, paying up to $90 million, so they must -- there must have been no other way out of this one. shibani joins us for this. what happened? >> >> reporter: over the last three years verizon has been erroneously charging its customers, when signed

-- who signed up one point # nine for accidently accessing the werbgs these customers contacted verizon, asking for a refund and got flat out denied. they took their claims to the ftc, the ftc investigated and realized this is a wide enough spread problem, forcing verizon to make retribution and as far as who gets the money, verizon customers are going to see a credit on october and november bills. former verizon customers are going to get a check in the mail but don't expect a big payday, the average check will be between $2, and $6. martha: starbucks, right? is this a big hit for the company? >> of course you got to worry about that, certainly with what's going on on wall street. taking a look at verizon shares ahead of the market open, the shares are down slightly but keep in mind, martha, this company made $60 billion in terms of revenue last year, so $50 million is just a little drop in the pan for them. martha: sounds like they're doing the right thing, so that's a good thing for them.

shibani, thank you very much. bill: that thingon euroo on your bill, like what's that. martha: need to be diligent, look at that bill. bill: blame your husband. martha: why didn't you see it! bill: more details on this heartbreaking story along the mexican border, a widow, a day turns deadly at the hands allegedly of drug runners. he'll hear the # 11 call and a warning to americans there. martha: a neck and neck race, shaping up to be, for the governor's mansion? massachusetts. republican charie baker is going to join us live when we come back, next.

bill: so the gloves officially are off in the california race for governor and this will be a good race, and a very fiery debate over the weekend, former governor engineer oh brown, former ebay ceo meg whitman fighting it out over

immigration, specifically over recent claims that whitman knowingly hired a housekeeper who was in the u.s. illegal. here's how it went. >> after november 2nd, no one was looking out for nicky diaz and jerry you should be ashamed, you and your surrogates put her deportation at risk, you put her out there, and you should be ashamed for sacrificing nicky diaz on the altar of your political ambitions. >> you have blamed her, blamed me, blamed the left, blamed the unions but you don't take accountability and you can't be a leader unless you're willing to stand there and say yeah, i made a mistake, i'm going on from here. bill: nicky diaz is the housekeeper, whitman is calling the claim is coordinated political attack at the hands of brown. our political panel looks into the accusations and also how it may help or hurt either candidate this morning. it's hot out there. martha: very hot out there. speaking of that let's look at the big battle shaping up in the bay state where voters are going to pick a governor in four

short weeks. it's getting a bit tighter there between republican charie baker and democratic incumbent governor duval patrick, and tim cahill, whom you see here, is running as an independent and according to the latest poll, patrick is leading baker by 4-7 points is the sort of average. patrick is up 5 percent, charlie baker, republican, running for governor of massachusetts is here with us, good to have you with us, welcome. >> how are you? martha: doing just fine, thank you very much. interesting development here, with cahill, the independent candidate in this race, his running mate bailed out on him and is now endorsing you. that's a strange turn of events. what impact does that have on your campaign? stpwhrao i think it's emblematic of the message we've been getting from voters for the past couple of months, we've gotten closer to closer to the governor as the campaign has gone on and people have checked in and people believe this race is between governor patrick and me and

as people want four -- if people want four more years of higher taxes and spending they can vote for the governor but most are looking for someone with private sector, real world experience and is going to cut spending and cut taxes and get people back to work and that's why people are coming in our direction. martha: massachusetts is a very blue state, and i looked at a number of the blogs with this campaign, you're a health care executive, having run harvard pilgrim, people are coming after you about raising premiums 150 percent, at harvard pilgrim, a lot of those kind of health care related issues are coming up. would you as governor have your attorney general go after this health care reform and would you try to block it in the state of massachusetts? >> the attorney general as you may know runs separately from the governor ph massachusetts. it's not quite my call but what i can say the federal reform plan and i said it on the day it passed was bad for massachusetts and the country and there's nothing

to change my mind about that over the course of the past few months. let's face it, nobody knows how to pay for it, nobody knows how to put it together, so at the end of the day it will cost voters, tax pairs, far more than expected -- expected and it's not going to do anything about what you raised, health care costs. if anything it will make it worse. martha: talk to me about the decifit, the $3 billion decifit in massachusetts, unemployment, 9.4% unemployment. you've seen a couple of new governors in virginia and new jersey, republican governors who are really trying to take on the unions. do you have what it takes to take on the unions and renegotiate pension agreements and tenure in massachusetts, it's very tough there. >> we've put out very specific proposals to go after reigning in the cost of state government to deal with many of the issues you're talking about and i think, look, massachusetts is a terrific place to live, i love being here and after 15 months on the campaign trail, the people of massachusetts n. my opinion,

deserve far better out of the state government than they're getting and i think part of the reason my message is resonate, i make it clear, i'm a private sector guy, know how to make tough decision and cut spending and reform and structure organization and that's what's going to happen in massachusetts if we're going to get those 300,000 people out of work here back to work and yes, that means taking on everybody on beacon hill, all the special interests, the works. there's no other way to get from here to there and that's got to be part of the plan. martha: one of the polls i looked at said they're trailing with women in massachusetts. why do you think that is, why do they seem to like patrick more than new. >> i know my mother and my wife will both vote for me. one is a democrat and the other is an independent! i guess what i would say, look, i think we have seen lots of people coming our way as they pay attention to this race and we expect the numbers across the board to continue to improve. remember, i was a private sector guy for the last ten years, i got into this with no name i.d. at all, running against an incumbent governor and treasurer and

if people look at this race and look at what i'm bringing to the table and what the two incumbents are bringing, they're coming our way and that will be true for men and women. >> do you see yourself in the band of a mitt romney or william wells, whose administrations you worked in and if so -- if so, how are you different from them? >> look, i think a republican governor can soror be the check and balance against a democratic legislature in massachusetts. it was a good thing. if you look at the romney years, the state never raised taxes over that period of time, governor patrick gets elected, he starts proposing tax increases as soon as he wins, major -- raises taxes eight times over the course of the last four years, over a billion dollars in new taxes, and that's despite the fact that he had a $2 billion rainy day fund, and billions in federal stimulus money to help him weather the storm. what they say to me is look, i didn't understand this balance thing so i didn't have it anymore, i want it back and i think that's why they're coming our way. martha: tell me specifically, what would you

cut from the budget? >> we've made a billion dollars worth of proposal necessary terms of restructuring government. we're the only candidate putting reforms on the table about what we would do. we need to consolidate state agencies, reduce the number of people who work in state government, and i say that as a guy who likes and admyers a lot of the people who work there, but the whole thing is too complicated t. works against itself and it's about the most underperforming organizational structure you could imagine. i've also talked about doing significant things to reform what i now call patrickcare, because for all intents and purposes he's been implementing the health care reform bill for the past four years, we've made signature -- significant properlies -- proposals with regard to construction and labor agreements. we have many ideas on the table. they're the only ones real in the race so far and we're going to chase him off. martha: what's the tea party element in this race? >> the tea party people of massachusetts, i've met with a lot of them, they care about the same stuff i do, jobs, taxes, spending, they're pocketbook people in

massachusetts, they think taxes are too high, spending is too high and the state is not doing enough to create jobs. i agree with them. martha: charlie baker, thank you very much. >> thank you, martha. martha: and we've reached out to duval patrick, we hope to speak to him later this week. thank you, charlie baker. we're looking at all the races across this country and each one is very significant. >> thank you. >> martha: thanks a lot mr. baker, good to talk to you. very interesting. all the hot political developments heading into november's mid terms at your fingertips, wherever you are, all you need to do is download america's election headquarters iphone app, it's very cool and on our website, fox news.cole or stop by and pick it up at the old app store. bill: have you done that yet? >> i'm not an iphone person. but i'm doing it online. bill: fox news alert, just hearing now a new federal audit saying our nuclear power plants are at risk of terrorism. according to a federal audit, this comes out of washington now, security needs to be beefed up to

prevent, quote, infiltration, the audit suggests rescreening of employees as one upgrade. more details on this are expected to be released a bit later today. part of the concerns stem from information they had where an al-qaeda suspect had worked at a nuclear power plant in the state of new jersey for about a period of six years. they believe he is back in yemen now and, hence, the warning that we're getting right now. so it's just crossing the wires now. when we get more, you'll hear it first here on "america's newsroom". martha: all right. coming up, the tea party under attack in a new editorial, a scathing piece accusing the tea party of disliking america, saying they don't like america the way it is, i guess. a chief strategist joins with us his response to that in moments. bill: a tragic story, a texas couple heading out to sight see in a lake along the u.s.-mexico border, he is dead, shot in the head. the wife's desperate call to police and the warning that's now going out for that area.

>> we were jet skiing, i was going to pick him up. >> were you shot at? on the mexican or the u.s. side? so it was the mexicoan side. okay, did you see anybody? >> there were three boats.

martha: the republican national committee's fire pelosi bus tour, rolling into souix city. this is just the latest stop

of this 6-week, 117 city tour that leads up to election day. steele says while the tour focuses on ousting pelosi, the nevada stop also targets senator harry reid while there. they said they covered that base as well. bill: it was a day of fun. that was the intention. now an american couple, jet skiing on a lake in texas, police say mexican drug run ners turned their day into a nightmare. this is a man who was shot and killed. it happened an lake falcon on the mexico border, 60 miles outside of laredo, tiffany and david hartley were enjoy ago day on the water when david was shot in the head, tiffany was force to run on her jet ski, forcing her to leave her husband's body behind. a good samaritan called police. this is the 911 train now. >> are you sure your husband got shot? tkpwhrao yes. >> was he felony out of the

jet ski that he's in the water? >> he was felony off the jet ski and i was going to pick him up to get him on mine. >> then were you shot at on that the mexican side or the u.s. side? so it was the mexicoan side? okay, did you see anybody? >> there were three boats. >> is the lady, is she okay? is she injured in any way? >> no, she's not injured. she's just in shock. bill: what happened here? ray walter is senior policy analyst for the latin american heritage foundation, also served at the state department's office in mexico, and sir, good monday morning. what's going on here? mexican pirates on a jet ski >> this is a body of water that is used frequently for recreation. bill: sure. >> i was not aware of it, but it's a very large lake, used by boaters, by fishers, a very popular fishing hole

and apparently this is not the first incident in which pirates, people who basically -- basically drug criminals using water transportation have gone out, intimidated people, robbed them, taken them down. this is the first fatality that's occurred. this is a situation that all along the border, we are seeing little flare-ups and it's not an every day occurrence, but this is a tragedy that really should not happen. bill: on this lake, there have been five incidents this year alone. you suspect that the motivation here is simply cash? it's like a robbery to get money? >> you don't know whether those smugglers were planning a night run or something like that. they probably moved drugs at night across the lake or even smugglers. you know, these people, they might have thought, were police or some sort of -- but again, there's not a clear demarcation, what were the mexican authorities doing on it, why were these

boats there without some mexican police presence. you know, it's going to raise a lot of questions on the u.s. side regarding the vigilance in this particular area. bill: let me show our viewers where this is. we showed a map early. here's another glance at this lake. it's fairly large, it was used to dam up the arrive, the rio grande, right there along the texas-mexican border near laredo, it was an area that was created in 154, straddles the border, as i mentioned, five incident sos far this year. the governor of texas, rick perry, has already called for federal help. do the feds need to stop this, is that their job here? >> i think it is. their job is to secure the border, their job is to work closely with the mexicans, to go after the people responsible for this, their job is to see that adequate resources and attention are given to this threat. you know, i find it ironic that we're worrying al-qaeda in europe and travel, that's sort of dominating the headlines, yet incidents

like this are occurring very close to home. bill: if this was an act of terrorism, maybe that parallel works, but so far as we know right now, this was local crime. what do we need to do in your view, ray? >> well, clearly, again, as i said, we need to make sure that adequate resources are given to upgrading border security. clearly, here's a lake, is there not -- >> bill: what about pressing mexico to do their share? >> is there cooperation between the mexicans to secure this area? we need to look at that. certainly we need additional resources all along the border, and we need to review our assistance programs, we need to press the mexicans clearly on doing their part, and secondly, we need to look at our assistance programs which are flowing sluggish, happen hard -- haphazardly to assist the mexicans. bill: thank you for your input from the heritage

foundation. thank you sir. go to foxnews.com/"america's newsroom", click on the bya box and leave a question. a lot of questions these days dealing with immigration, dealing with the economy and the finances of our country. shoot me an e-mail, hemmer, foxnews.com or follow me on twitter, bill hemmer, because you asked, bya. had great questions last week. we encourage you viewers, wherever you are, keep sending them, we appreciate it. martha: it might be the nastiest race. there are a lot of nasty races throughout but in new york we might have the nastiest race,or carl paladino and and recuomo, who is now being fired between these two gentlemen is coming up. bull bill another round? stay tuned. as we head to break, check out which stories are clicking, foxnews.com, click the most read tabs, and see what's hot if you're just waking up on this monday morning. we are back in a moment onpayout "america's newsroom".

bill: yet another fox news alert now, reports of a 6.4 quake near okinawa, japan, a tsunami warning has gone into effect, okinawa is a southern island, home to a military base. we should know soon about the tsunami warning and judge then whether anything comes from it. we will keep an eye on this story, just crossing the wires now. more on that, an earthquake near okinawa, a tsunami warning is out. we'll check on that in a matter of minutes on fox. martha: let's get a look at some of the other stories we're following on this monday morning. a massive wildfire is burning in northern colorado. state officials are warning people to get ready to evacuate in those areas. federal investigators,

trying to examine what caused bp's gulf coast explosion. the april 20th explosion killed 11 woerbgs and led to an oil spill of about 206 million gallons. bill: still now, the drama is getting a bit deeper, in new york's governor race, democratic candidate and row cuomo responding to allegations that he cheated on his wife, the accusation coming from rival and republican candidate carl pal dean oerbgs cuomo telling reporters that rumors of the alleged affair hurt his family butsy focusing on his campaign. listen here: >> [inaudible] >> i said at the beginning i will not campaign because he started with name calling, and all sorts of beginning of the campaign, i will not encourage the name calling,

i will not be brought into the -- >> bill: last week paladino got into this argument with a new york post editor, paladino accusing fred dicker of sending photographers after his ten-year-old daughter. what did you say areaer? it's getting hot out there. personal, and that race, and so many areas. martha: and saying he didn't have any evidence to back up that accusation and that was on friday. so who knows if these guys are going to call a truce on the personal stuff but it's not getting them anywhere. bill: my guess, two new yorkers, ain't going to be no truce! >> march maybe not. the tough economy taking a toll on state budgets across this country and one case in point is georgia, the state department of transportation is getting creative there, they're using corporate sponsors on their 511 information signs, among other things. raising big bucks for the cash strapped state but one watchdog group says it may not be such a good thing in the end.

jonathan serrie, it looks like every strayedum -- stadium has a corporate nail on it and now down to little street signs. >> increasing in popularity. here in atlanta, keeping traffic moving efficiently is never an easy task. the georgia gop has had to get especially creative during these tough economic times. >> when the recession threatened its popular highway emergency assistance system in metro atlanta the georgia department of transportation looked beyond conventional sores of revenue. >> necessity is the mother of invention. if we're not broke we're suppose led going to get to it and we've got to try and find ways to maximize resources. >> now they carry state farm logos which brings the dot $1.7 million a year, essentially covering georgia's share of the federally subsidized program. state farm sponsors similar efforts in pennsylvania and colorado. >> states with budget shortfalls, state governments are looking to the private sector for funding solutions. here in georgia, these 511

signs acknowledge commercial sponsorses that help pay for the program. and the peach state actually makes money by outsourcing these highway exit logo signs, a program the dot used to operate on its own at a loss. >> we brought a private sector partner that that quite frankly knows how to do this considerably better than we did and they're making money, we're making money. >> government watchdog groups caution that partnerships require absolute transparency. >> it's a conflict of interest, it says favoritism, if there is money shoveled out the door without any oversight, taxpayers are going to get wind of that and that's going to be a major problem in the long run. >> if run properly, what began as economic necessity could become the new normal. martha. martha: all right jonathan serrie in atlanta, thank you very much, jonathan. bill: and we mentioned this story, 60 minutes ago, there is new information on a terror alert for americans. the latest on this overseas

plot, where terrorists plan to strike, and what we are learning about the target. stay tuned for that, top of the hour. martha: a scathing new editorial takes aim at the tea party, saying members of the movement don't like america the way it is. a closer look at this speech. we'll get reaction from a chief tea party strategist.

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martha: we're getting brand new details on specific threats of terror across the pond. now, reports say that airport lobbies, the pre-security areas of airports are among the leading targets they are concerned about now. for an attack on europe and, it is believed to be in planning phases in a number of different spots. extremists possibly plotting a small arms ambush, on those pre-security screening areas, also, as you have heard the eiffel tower, is one of the big concerns, the tower of london and the royal family, as ce har list, all linked to usama bin laden and you see a picture here, and, they are talking about giving the royal family, in particular prince harry, because he fought in afghanistan, extra protection to do all of this. that is how we start a brand new hour on a busy monday morning on "america's newsroom," i'm martha maccallum. bill: i'm bill hemmer, good morning to you, good weekend.

martha: good weekend, how about you. bill: i think it went by in 12 hours. martha: yours is only 14 hours! bill: here we go! 6 heavily armed guards shadowing the prince of wales, we are told it is more than double the norm, governments of the u.s., u.k. and now, japan, all warning their travellers, citizens, overseas to be on high alert. >> no, i did to the change my plans, any of my travel plans, i'm her on business and i come here quite a bit and i'll keep my eyes open and hopefully things will work out. >> we will be a little cautious now getting on the train and, you know, in the airport. >> i live en london, we just get used to it. just the way we live now. martha: a terrorism analyst and reporter for the telegraph joins us, good to have you back today. >> good morning. martha: good morning to you, it is interesting, because, last week the word out was that there was a thwarted terror plot discovered based on the investigation of siddiqui,

caught an interrogated by officials and now it seems like there is more in the works they are concerned about and it is a developing and ongoing threat. what are you hearing? >> well, the terror threat here in london, today, is severe. which means that the intelligence and security services believe that there is a terrorist cell on the loose, that wants to carry out a mumbai-style attack, either here in the u.k., or in france and germany, basically bin laden's terror cells want to punish the european nations that are fighting in afghanistan. martha: what are you hearing about how they are trying to thwart these attacks, how much information they really have, how many people they may have their eyes on at this point? >> well, the initial terror cell was actually attacked by an american predator drone, last month. and i'm told about 20 people involved in planning these

attacks were killed. of course a lot of the ground soldiers, are actually based in europe. they have already got their orders and i think the concern now is even though the leadership has been taken out, whether the footsoldiers can still carry out with their plans to conduct terror attacks in europe. martha: it is frightening and one of the scary things about it, it seems to have usama bin laden's fingerprints on it and we haven't heard that kind of direct connection and we have heard people trying to pull things off to make their own names, in the terrorism business and a direct link to him, we haven't heard in a while. >> quite and i think usama bin laden is quite keen to try and reclaim his leadership, in this movement, as you said, he has had to lie low and is the world's moist wanted man and is difficult to give leadership to the terror groups, but it seems he is directly leading this and wants to make a -- basically get

al qaeda back on the front pages, and wants a big attack to go off, of course the recent attacks by al qaeda in times square and the detroit plane bombing attempt at christmas, all failed, so, usama bin laden and al qaeda, now have something to prove. martha: indeed they do. and, nobody wants them to prove it. talk to me about the royal family and prince harry and the -- how good the intelligence is on that front. >> martha, prince harry in particular, has been a high profile target for al qaeda since he served in the british army in afghanistan a couple of years ago. now, prince harry is traveling at the moment, and, the security authorities have decided to double his security. they are also doubling the security of other members of the british royal family as they have senior british politicians, a big political conference is taking place here in britain with the conservatives, and, security has been stepped up,

considerably, david cameron and the other political leaders in the country. martha: what is it like at the big tourist sites in london, big ben and all the places americans love to go? >> big ben is just behind me and you can probably see it and i was passing through it today and it is busy and we actually have a tube strike here, the tube drivers have walked out and a lot of people are on the streets anyway and it looks like business as normal here in london today. martha: all right, good to hear, always great to have your in sight on these stories and we hope they are wrong and can thwart everything before it happens and everyone needs to be aware. thank you, sir. >> see you, martha. bill: taurerrorists repeatedly targeted europe, the past ten years, 2004, ten bombs exploded in madrid's train system killing 191 people and wounding 1800 other and '05, you remember on the streets of london, homicide bombers attacking three subway cars and a bus in london, and 52 rush hour commuters were

murdered. since then, there were at least five other major cases on the continent where arrests were made across europe. martha: the state department's travel warning for u.p. could have a major economic impact, in 2009 america spent $2 billion in travel in europe and june, roughly 1.6 million americans got on planes and traveled to europe with a total of 5.6 million americans, visiting europe since january, of this year, and, everybody has become comfortable over these last few years and when look back at what happened in spain and in the subway systems of london, it is a memory that is long gone now, and it brings it back to the forefront, so, it raises a question, how alert are you when you are traveling? does it change your feeling about going places? on a scale of 1-10, 10 the highest, how alert are you to possible acts of terror when you are traveling here at home, abroad, have you become come place sentence? are you not worrying about it? 53% of people, this is the response, saying they are always

alert, probably have since september 11th, you can weigh in. log onto foxnews.com and take the nonscientific survey or twitter us and get on the e-mail and we'd love to hear from you. bill: we are 29 days away from midterms and former wrestling executive linda mcmahaon going to the mat tonight against connecticut attorney general richard blumehthal, the first debate in connecticut's contentious u.s. senate race and there's a lot riding on this one, too, latest quinnipiac university poll released the past week has her three points behind blumehthal. and nearly obliterating the 41-point lead he had in january. our chief political correspondent, carl cameron is live in hartford, this morning and they go in the ring, they do, carl, both candidates, i guess giving voters a lot to think about and talk about in this. so far, have they not? >> reporter: colorful candidates, bill, colorful

candidates in connecticut. the u.s. senate seat vacated by chris dodd who announced his retirement and started this anything off and you are right. when the race began, it was widely considered richard blumehthal, who continues to have a high favorability rating and is popular that's state's attorney general would walk away with the race, but in the past 7 months, linda mcmahaon, the wwe executive, world wrestling impresario, has come over the course of the last, oh, several million dollars, in several months to a dead-even tie and hasn't just spent it on attack ads and commercials, he has put together a statewide organization in connecticut that makes her really quite formidable and a real possibility for republicans to pick up a u.s. senate seat, chris dodd's seat was always vulnerable and blumehthal has been criticized for inflating his resume and misrepresented and suggested that he had served in vietnam when he had not and linda mcmahaon because of her

time as the ceo of the wwe has an awful lot of controversy about that particular industry and form of entertainment. so, voters do have a lot to think about in the contest and it is dead-even. bill: there's a question here, rather generic, but, i am certain that you can find suitable way of answering it. what do we expect tonight, to see them go up head-to-head, face-to-face? >> reporter: well, linda mcmahaon has been aggressive and has been the aggressor in the race, combative going after blumehthal as what many would describe as a classic democratic from connecticut who is accused of going to washington and supporting the obama agenda and there are issues on which blumehthal and the president differ but she's likely to be the aggressor and there is more riding on it for richard blumehthal. he watched his lead vap kuwaeva and we he was at the apple fest and his campaign style is frenetic and he was running around, trying to shake hands

and talk to as many people as possible and is criticized for not running a particularly aggressive campaign and tonight is potentially his best opportunity to turn what has been a tide for linda mcmahaon back in his direction. whether or not he pulls that off, and whether or not he's the kind of candidate who can really fight hard, remains to be seen. he promises to be a fighter, but, some of his critics suggest he has not been fighting linda mcmahaon as aggressively as he should. bill: looking forward to later tonight, carl cameron in connecticut today, bret baier, anchor of "special report" moderates the debate tonight in partnership with the hartford newspaper, you can watch it live, and watch it or watch it in connecticut on our affiliate, wtic, at 7:00 p.m., how is it... in this corner... ring the bell. martha: our wwf references and we have the wonderful debates going on, and they are happening, we saw one yesterday, on fox news sunday with kentucky's candidates for senate. they went head-to-head there

with chris wallace and republican rand paul challenging democrat jack conway on whether or not he supports president obama's agenda. check it out: >> he needs to do is, defend his president or run away, and so far he's running away from president obama and the agenda. >> look i'm a democrat and a proud democrat and i will not be to the left of barack obama and will put kentucky first. martha: conway says he opposes the president on cap-and-trade legislation, to encourage businesses to reduce greenhouse gas emiss a mismissions and tha, big issue in kentucky where the coal industry employs thousands of people and paul is against cap-and-trade and accuses conway of flip-flopping on the issue. bill: "fox news alert," on the economy, now, and, brand new economic indicators, just into "america's newsroom" on home sales. rising for the month of august. signed contracts to buy a home up 4.3%, according to the national association of realtors and still that is 20% lower than they were a year ago at this

same time. getting a jump on that. some neighborhoods and some parts of the country. but, still, not where they were. martha: coming up, a scathing attack on the tea party, claiming the political movement is opposed to any kind of progress. a tea party leader responds to that, after the break. bill: also, he's campaigning on the streets of chicago this morning, leaving the white house for the windy city. rahm emanuel, he wants to be mayor of chicago. and forget about winning. he may not be allowed to run? martha: i heard about that. all right. and a botched bank heist claiming the life of a brinks armored truck driver. one suspect caught a few blocks from the scene after crashing his own car, now the hunt has just begun. yeah, sometimes i worry. sometimes i worry. what if something bad happens?

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bill: a granny made attack terrorizing residents outside of mexico's third largest city over the weekend. 15 people injured including 6 children. the latest victims of escalating drug violence, the youngest child, three years old. police say the attackers tossed a grenade into a crowded square and fortunately no one was killed an mexican police say drug cartels are targeting civilians more and more in one of the country's wealthiest towns. martha: a scathing attack today on the tea party from senator sharon brown and that is printed in u.s.a. today, the ohio democrat saying the movement's vision for america is to, quote,

gut medicare and social security, to ignore the minimum wage and scale back consumer protections, and regulations. linking the tea party directly to the g.o.p. claiming that if you want to, quote, bring back preexisting conditions, meaning, you know, what the -- with the health care reform and what that is supposed to eliminate, vote republican. and, joining us, a chief strategist for the tea party express, sal, welcome, good to have you here today. >> thank you for having me. martha: the gist of this editorial, vice chairman brown, the democrat from ohio, is, basically saying, you know, the tea partiers like yourself are not happy with america and don't like the country. the way it is, and that it is build and, you know, built into our system to protect people through these things like medicare and social security. and, that you guys don't like that? >> well, i think what the senator did is, he threw out every red herring that the liberals in washington have got and what he does do is eignores the reality of the situation we

face in america and that is, that we have this growing intrusiveness in the federal government. we have higher taxes, we have higher regulations, our annual deficits are higher than ever. our national debt is skyrocketing, the problem with liberal democrats is they want to spend and tax and spend and tax and don't realize there is a limit to it. not only there is a limit to it, and we are seeing it this year, much like we did during the carter years, when you start raising taxes and getting the government more involved in the economy, you shut off the private sector, creating jobs and the investment that causes the economy to grow. you know, we're not... i haven't heard anybody say anything about destroying social security which is just a ridiculous red herring. in reality the democrats have gone out there and spent every nickel that is coming in, in social security. there is no lock box, and, our tea party people are saying, look, let's get responsible and make social security work. martha: i hear what you are saying, and it will be very

interesting, sal, to watch over the next four weeks, because a number of tea party candidates made it to the nomination in most cases of the republican party, okay? and the tea parrty candidates ae in there and we'll find out whether or in the they have the ability to win election and in the ensuing weeks you'll see a number of editorials like this and, appeal to american voters so say they want to take everything away from you and are not compassionate and are against the american way which is basically, to hold a hand out to folks who need it. that will be their argument. >> i don't think americans will be fooled. i mean, you know, every family has to deal with the financial realities they face. you know? they may want a new plasma tv or new car and recognize they cannot afford it at this point. and that is certainly where we are in washington. look at the economic recovery that we are supposed to be in, it just is dragging and why? because, the government is

sucking up so much money in taxes and regulations and involving themselves in our economic life, all we of have to is unlike the american economy like reagan did in 1981, that is how congress sustained economic growth and not taxing and spending and growing the government. martha: the tea party movement, it was asked of folks, your 2010 vote will, in terms of the tea party, express support, that got 21% of the vote, express opposition to the tea party, got 13%, and, 57% said, the tea party is not a factor. what do you think about that? >> well, you know, i think what people are responding to is the tea party issues, sometimes people are reluctant to identify with one group or another, but, if you look at what the polls are, the candidates that are articulating clearly, the tea party message, are running across the state. not only red states but are winning in blue states, so, if

you look back, 18 months ago, where we were, where democrats thought they were going to win house and senate seats, and look today, the only thing that has changed is we have 2 million more people from the tea party movement, that are engaged in the political process. so, i think americans are waking up and i think you will see a big reaction in november. martha: thank you. >> and, taxing and spending... martha: we will see, sal, thank you very much and we'll see what happens and how the candidates do in the general election, it will be quite an interesting four weeks, thank you very much. bill: he's probably living through the most interesting political time in his life, right. martha: fascinating and it will be a referendum, it can -- can you imagine the political pundits on every network in the country and the folks around the dinner table will talk about whether or not the tea party has the stuff to make it happen when push comes to shove and how many of their numbers will be going to washington and taking part in... bill: america sits back and watches and sees what the candidates can do and how they

can make... martha: exactly. bill: there will be stunners. martha: yeah, there will. bill: four weeks from tomorrow. martha: why we have to be there. bill: it will be a night to watch. martha: you will be punching the board up there, showing us what is going on around the country with the polling, talking about what people are voting on and what issues matter to them. it will be a really big night. bill: two of the best jobs going, we get the information before everybody else. martha: our finger on the pulse. bill: being the junkies we are... decision time for a jury, one of the most brutal murder cases in recent history. a husband, father, dealing with the loss of his family, and one of the most gruesome ways possible, how awaits the fate of o one of the men accused of doing it. we're live outside the courthouse. martha: and he left the white house to run for mayor of chicago. there are questions about whether or not he can legally do that. interesting little loophole, in illinois law that you need to know about. this is the aarp...

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martha: check out the new video, he isn't letting any time pass here, folks, this came in to us, rahm emanuel meeting with potential voters at a chicago train station, this morning, getting cell phone pictures snapped with the folks on their way to work and stepped down from his post as president obama's chief of staff, declaring his bid for the mayor of the windy city was under way and, two of chicago's top election attorneys are now saying that he may not be eligible to be a candidate, it has been floating around a couple of days and the municipal code is crystal-clear, you must reside, quote, in the city, for a year, before the election. claiming it is not simply enough to own a home and rent it out which is what they did... bill: before you can be a candidate. martha: according to -- >> before the vote. martha: reside there, for a year

before the vote, i believe. bill: that makes sense. that is why he hightailed it when he did. wow. martha: he has to meet 12 months. bill: the el in chicago. martha: yes. bill: 24 minutes past the hour, an awful crime and a father/husband is hoping justice is served today, moments ago dr. william petit and his family arrived at a courthouse in connecticut and jurors will deliberate the fate of one of the two men charged in the horrific murders of his wife and two daughters. prosecutors say steven hayes on the left here, admits to raping and murdering the family's mother, he's also accused of torching the house which killed the two teenage girls. and laura ingle is live outside the courthouse, new haven, connecticut. what charges does he face, laura? >> reporter: right now, bill, the judge is standing in front of the jury, and instructing them on how they are to legally

handle the 17 charges against steven hayes. 6 of them include capital felony charges including murder, and sexual assault. he has already admitted to killing, himself, the mother in the family, jennifer, and there was a change in one of the charges, this is where we are waiting to find out how one of the charges has been reduced in the case, during the second week of the trial, there was a reduction on the charges of the assault of the lone survivor, who was dr. william petit and the charge went from first degree assault to second degree assault. and you remember, he was badly beaten with a baseball bat during the home invasion before his wife and daughters were killed and the charge, reduction of that has not been able to be discussed, with the attorneys, there is a gag order in the case and maybe today we have a producer inside the courtroom, and we'll let you know when we find out an explanation as to why that charge was reduced. bill? bill: you wonder how the man has gone through all of this and you think of what he has had to

listen to throughout the course of the trial, is today another day like that of devastating testimony? >> reporter: well, what we will hear is when the jury is charged, the judge will go over all of the 17 charges, and, this is expected to take hours, we have been told this morning. there are 46 pages, in the charging document, then there are 200 exhibits, that will be put into the jury room, when they start deliberations, the judge already warned the family to get through this portion of hearing the charging of the jury will take a couple of hours, and he does not expect a verdict today. you know, we have all watched jurors for a very long time, always very hard to predict how long they will take, remember, hayes admitted to most of these charges, but, not all of them and those jurors will have to decide his fate on all 17 over the next few days. bill: laura ingle, thank you, deliberations set there, martha. martha: hard to believe it has been six months since health care law was signed and we are still seeing fallout from how it all shakes out, how the overhaul

is causing employers in some cases not to hire new employees. eric bolling joins us to find out, explain to us what is going on with that. bill: and what should have been a solemn remembrance for a soldier dying in the line of duty, becoming a platform for protesters holding signs like thank god for dead soldierses and god hates you. cruel talk? or free speech? the supreme court will decide. [ male announcer ] when it comes to energy bills, let's see how low we can go. let's do some little things... that help us save big. add some insulation here. a little weather stripping there. maybe an energy star-rated appliance, or two. let's save mey on the things that keep saving money. that way, we can turn a little energy into a loof savings. more saving.ore doing. that's the power of the home depot. we're lowering the cost of staying at room temperature with owens corning insulation -- st $10.44 per roll. on our car insurance. great! at progressive,

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martha: here's what is happening now, "america's newsroom," three people, dead from flooding in vietnam. and torrential rain, another thousands of villagers there, homeless, at least three other people have been reported missing, raging waters wiping out entire towns. and, robert edwards, the man who developed in vitro fertilization takes home the 2010 nobel prize in medicine, 85 years and is teaching at the university of cambridge and began his research

in the 1950s and, a convoy of tankers carrying fuel to coalition forces in afghanistan is now charred wreckage. members of the taliban in pakistan claiming responsibility for the attack on our supply lines, about 20 trucks, sentence up in flames killing at least four people. bill: we have breaking news alert now on these two suspected bank robbers, still on the loose after a deadly armored truck heist on the weekend, the suspects killed a guard outside of a south florida bank, and the fbi announcing one arrest and also staying tight-lipped about details. this is new now. >> i will confirm that there were two vehicles, used by this group, we have recovered both vehicles. you are aware of the one at the scene and we recovered another vehicle and we processed that. i will not disclose how much money was taken during the robbery, however, i will tell you, that all of the money has been recovered. bill: phil keating is on the story, live in miami, how did

the heist go you on, phil. >> it all went down as a brazen ambush, friday at around noon and keep in mind, the breaking news out of the fbi, they are still looking for two of the four suspects and this are described as, quote, very, very dangerous and around noon on friday, as the brinks armored truck, the driver was walking out of the bank of america with his bag full of cash, the fbi says a gang ambushed him, shooting him point blank in the back of the head, killing the driver right on the spot and then one of the getaway vehicles crashed into a dumpster, fbi says there was driven by 31-year-old nathaniel moss who botched his get away, and was arrested shortly thereafter and 37-year-old terence brown had been sought by the fbi all weekend long and the fbi just saying now they are no longer looking for him, however he's not in custody, as it appears they do know where he is, the

fbi spokeswoman says they have only made phone contact with him and still looking for two other unidentified suspects. bill: in cases like these in the past, sometimes is there an inside job, i'm not quite certain that is even speculated or whether they talked about that. is that a possibility, how many suspects were involved, ultimately, phil. >> reporter: law enforcement and the fbi local as well looking at the possibility of inside jobs, down in south florida, one of the leading regions of the country for this type of robbery where the robbers try and hijack or ambush an armored truck as it leaves a bank. they don't believe it was an inside job, by all appearances, right now but they are looking for these two guys, described as, like i said, very, very dangerous. bill: phil, thank you for that, it is braking news, stay on it, okay? when there is more, we'll bring you back. thank you, phil. martha: a day of first at the supreme court, first day of the new session which starts today, of course and the first time

you'll have three women sitting on the high court. and, one of the big cases on the docket is going to get a lot of attention, it is a controversial case, dealing with the first amendment. whether these grave side protests at military funerals where soldiers are buried in the country, these are the signs the church has been holding up and the question is whether or not these signs are protected under free speech. it is a very emotional, hot button issue, james rosen joins us live, tell us more about this issue. >> reporter: good morning, it is a free speech case essentially and is one of 53 that the supreme court has agreed to hear, 53 cases on the docket and we expect more cases to be added to the docket, and it will be heard by a full court including the newest associate, justice elena kagan. who was escorted down the famous front steps of the high court on friday, by chief justice john roberts, following her formal

seating. on the court. she will help starting on wednesday when the case is heard, she will help decide snyder versus phelps and the court will address the question of whether the father of a fallen marine can sue a kansas church whose members protested at his son's funeral, they carried messages, god hates fags, aimed at the federal government, and its policies toward homosexuals and not at the marines, who wasn't gay and $11 million reward in this case to the father, by a lower court, was struck down, martha, by an appellate court. martha: a fascinating case and, an emotional one, one we will be watching closely, but, of course a lot of eyes will be on elena kagan. she is the new supreme court justice and takes a seat on the bench and what will we be watching for there, james. >> reporter: she stands poised to begin her term and the term is under way and the court is hearing cases now but she'll

only hear so far 25 of the 53 cases the court agreed to hear and had to recuse herself or withdraw from the rest of the cases because she served that's obama administration's solicitor general. that is the lawyer who represents the united states government in cases that come before the supreme court. one has to go back to 1967, when then solicitor general thurgood marshall was seated on the high court to find a justice who recused himself from so many cases. 75 in the case of justice marshall in the fall of 1967, and 53 of those were due to his service as solicitor general. we spoke with another former solicitor general, who explained to us why justice kagan is sitting out as many cases as she is in this, her first term. >> people may have thought the universe of the cases where the u.s. filed a brief but even if the u.s. thought about filing a brief and the solicitor general made the decision not to file, it seems like a case where the

justice probably has to recuse herself and i think that may have driven the numbers up a little bit. >> reporter: one final note. i have the high privilege of sitting in the courtroom when the nine justices appeared at the stroke of ten, and when the marshal in toned the famous term "god save the united states and this honorable court and justice kagan seemed at home, staring serenely ahead. martha: thanks for being with us this morning, we'll see you soon. bill: the key part of the country's health care reform law, insurance companies can no longer deny coverage to people who have preexisting conditionses. but, since the part of that law went into affect, the expectations have fallen short, at the moment, woefully short. now, why is that? eric bolling, anchor of money rocks from the fox business network with me. good morning to you, fine sir. >> good morning. bill: how short? >> well, i have my card here, why? here's the answer, the law of unintended consequences, costs have gone up, the kaiser

institute says between 2009 and 2010, health care premiums have actually gone up, not down and remember the promise that -- >> the price... >> prices are going up 14% on an individual basis, 3% on a family basis, and, what it has done is actually put the onus on insurance companies to go ahead and insure people who have preexisting conditions and the problem is what the insurance companies are doing, if you are a kid, under 26 years old, the new definition of a child in the health care bill, under 26 they say, if you have a preexisting condition, we'll insure you, but it will cost you a heck of a lot more. bill: you think that is scaring people away, because in california, they have money for 20,000 californians now and have received 450 applications. in texas, they enrolled 200 as of early september. wisconsin has room for 8,000 and they have gotten 300 applications.

it is... >> what happens when you rush legislation through, remember how important it was to get it done and done quickly and pelosi said she was going to parachute in and we'll find what is in it later. the bottom line is costs are going up and availability is going down and here's the big one, you guys, businesses aren't hiring because they aren't sure what the cost structure will look like going forward and instead they say, maybe i could put a few more workers out, i will not do it now, because, we may be -- it may cost a lot more to do that. bill: the suggestion then, maybe this is one example, maybe a fair example and a good one, does it foreshadow the issues of the legislation still to come. >> look back, not only foreshadow, and when they put the help for mortgage mitt gaign and expected hundreds of thousands of application and got a few hundred and the administration said, we need it, they need it, the best way to go and the bottom line, the free market is always the answer.

bill: it is said we are off to a decent and orderly start. >> to what. bill: signing these kids -- >> tell people under 26 with a preexisting condition who cannot get it and will stay on the parents' health care plan because they're allowed to, up to 26 and tell it to the average american worker, paying 14% more this year, for health care than he did last year. bill: point taken, follow the money with eric bolling, catch him every night on money rocks, 8:00, eastern time on the fox business network. don't miss it tonight. martha, what is next. martha: a knock down, drag out politics going on in the golden state, look at this. >> the fact that your campaign, two weeks ago, was talking about this issue, the fact that you are joined at the hip with gloria allred, it was a political stunt... >> what happened here? you are the one who falsely defamed the woman by saying she stole your mail and it turned out it is not true. martha: ringing the bell on what could be one of the ugliest races in america now,

whitman-brown, round one after the break. bill: also iran claiming a hacker from the west, nearly took down one of this nuke clear plants and the islamic republic says it has the proof. does it? that is next, three minutes away. host: could switching to geico really save you 15% or more on car insurance? is a bird in the hand worth 2 in the bush? appraiser: well you rarely see them in this good of shape. appraiser: for example the fingers are perfect. appraiser: the bird is in mint condition. appraiser: and i would say if this were to go to auction today,

appraiser: conservatively it would be worth 2 in the bush. woman: really? appraiser: it's just beautiful, thank you so much for bringing it in. woman: unbelievable anncr: geico. 15 minutes could save you 15% or more.

>> i'm jenna lee, along with jon scott, more on the terror threat and a list of phones targets and

we are your election headquarters and have a close look at the increasingly tight connecticut senate race, it is getting ugly and a possible scaled back obama agenda if the g.o.p. takes control of the house. what does it mean? see you in a few minutes on "happening now", toe-to-toe under the bright lights after a political attack gone south, you might say, meg whitman, california's republican candidate for governor coming face-to-face with jerry brown this weekend. days after gloria allred came out swinging for the brown campaign, claiming whitman knew that her housekeeper has an illegal immigrant and that she abused and then fired her. >> jerry, you know, you should be ashamed, you and your surrogates, put her deportation at risk, you put her out there, and you should be ashamed for sacrificing nicky diaz on the altar of your political ambitions. >> don't run for governor if you

cannot stand up on your own two feet and say i made a mistake, i'm sorry, you blamed her, blamed me, blamed the left, blamed the unions, but, you don't take accountability. martha: well, this is getting very interesting. doug burns is a former federal prosecutor and sean miller, a campaign reporter for the hill. sean, let me go to you first. what is the read in california? has it back-fired on jerry brown and gloria allred? >> the last vote was taken before the news broke last week and the candidates were neck and neck and it is unclear if jerry brown will get any blow-back for this and his campaign is saying that this is not -- this is not something that they orchestrated, that it was something that nicky diaz did independently and the timing, of course, is quite interesting and the first candidate debate was tuesday, and nicky diaz and her lawyer held the press conference on wednesday, to announce the news, so, it certainly is interesting timing.

but, you know, the fallout from the campaign is unclear, as of now. martha: that is is a great question, why did she not come out with this a long time ago? as soon as she was fired, why didn't she file the complain and let's look at gloria allred on with greta van susteren on the record. >> a multi-millionaire, somehow doesn't think when the government -- >> that is blackmail, you do you know, that this is problem, glare yeah, if you are blackmailing, because she looks like the creep because she's the rich person against the person who is here illegally, who is going to... >> hold on, hold on. >> a political gun to her head. martha: our political expert, doug burns, is it legal blackmail as greta accused gloria allred of. >> common sense tells us no person will step forward particularly on the advice of a lawyer who has criminal exposure for immigration fraud, no one will step forward and say i was mistreated because they are putting themselves directly in

harm's way and obviously, my question is, has the woman been exploited ironically, by gloria allred and everybody else, in a political context, that is the real core question, and i'd like to know if she was paid any money. martha: you think she might have been paid by who. >> possible. they could turn around and say here's an advance against your ultimate recovery in the discrimination. martha: by gloria allred. >> which is a big euphemism. who knows, i'm not making a specific allegation but you can see right through this, it is ridiculous. martha: sean, it is interesting, we watch the back and forth between meg whitman and jerry brown there, and he basically says, you are the one in the wrong and you are blaming everybody else, meg whitman but every lawyer we talked to said she is not in the long, no matter how you look at it illegally, has he politically barked up the wrong tree and it is about the latino vote which is huge and meg whitman says she cannot live without it. >> the latino vote is 20% of the

electorate in california and is important and meg whitman has done a lot of latino outreach in her campaign and ran ads in spanish and tried to focus on issues like education, you know, job creation, that are important for latino voters and this is the situation, though, where, the brown campaign says, look, she is being hypocritical during tuesday's debate before the news broke she emphasized the need for employers, to be held accountable, and, if they are employing, you know, undocumented workers, and... martha: is that a problem for her? that is politically, that is the one area where she may have put herself in a difficult situation and said employers must be held accountable if they are hired illegal workers and perhaps, this is an opportunity for her to say, look, i got snookered by somebody who gave me the false documentation and we need a better way, you know, to know what you are getting is the real thing. >> right. and martha, one of jerry brown's

best lines in saturday's debate was when he said, look, if you are calling for a correct down on employers, you should crack down on yourself. as well. and, i mean, it is a situation where, meg whitman said, look, i have documentation, and, from nicky diaz and had a drivers license and a social security number, and, you know, they are going back and forth now about whether or not a letter from the social security administration, that came to whitman's household, whether or not that. martha: right. all right, thanks -- sean, thank you so much, obviously we have to see the new polls that come out to see how it shakes out for her, doug burns, thanks for the legal expertise on this, sean, good to have you with us today, guys, thanks very much. >> a pleasure. bill: "fox news alert," we promised you we'd go back to okinawa in japan, an earthquake rattled the island. there is a tsunami warning out there, we don't know how severe, just yet. hopefully, everything is okay. there is a large u.s. military presence there, and has been a base there for years and so, we will let you know as soon as we get more, hopefully, just a tame

little wave that kind of comes and goes and, a new york mosque in ground zero, what will it looks like? we are seeing early designs and you'll see them, too in a matter of moments. martha: the biggest union in one of the biggest states in this country is pushing an initiative to legalize pot and you will never believe who else is getting on board with that. i kid you not when we come back.

martha: iran is claiming it is arrested several nuclear spies after a cyber wars attacks on a nuclear plant, the intelligence minister not saying how many people they took into custody, and accuses the west of launching an attack on the reactor and the computer virus

infected more than 30,000 computers, in various industrial sites and that is quite a story. bill: sure is. california's largest and most powerful unions throwing its support behind the efforts to legalize marijuana. the governor, arnold schwarzenegger, does not support the ballot measure but signed a bill that would reduce the penalties for marijuana possession, anita vogel is live with the story and what they're big groups backing prop 19, anita? >> reporter: hi there, bill, the measure seems to be gaining steam and most polls show californians support the idea of legalizing marijuana and as you said there are influential groups backing the measure, the service employees international union and united food and commercial workers union, two of the largest in the state, now the uscw in particular tells us they believe, legalizing pot will go a long way towards raising important tax revenues

and creating jobs. listen. >> we have a $20 billion deficit, and, we have the potential, according to the board of equalization in california, we have the potential just in the first year for $1.4 billion and that is just in excise taxes and those are the state's numbers, not the campaign's numbers. >> reporter: and the union believes in excess of 70,000 jobs could be created here in california, that union in particular is talk about jobs like grocery store workers, agriculture workers and greenhouse related jobs, those are jobs, they say with pensions and health benefits attached to them, bill? bill: there are heavy hitters warning that the initiative has a lot of problems. who are they and what are they saying? >> reporter: there are, most notably, a group of police chiefs and some former national drug enforcement officials, nine former administrators of the dea, drug enforcement agency, have put together a letter to eric holder, urging him to take a look at this, and, to be

prepared to look at having it overturned if it passes out here, because in their view it would be a clear violation of federal law, which bans the sail of illegal drugs like marijuana, robert bonner, former dea administrator in particular, tells us, he believes the people behind prop 19 know this, and he says they are committing a hoax on the people of california, trying to tell people of california that there will be tax revenues raised and he wants to get the message out there and, it is an interesting debate, bill, and we are watching it closely here. bill: a big vote, too, anita vogel live in l.a. today, thank you, martha. martha: when you thought it was over, and you didn't want to hear any more about this, the anna nicole smith sag gace back in the spotlight, why her former boyfriend and two doctors are now heading to court. bill: and if they build it, what will it looks like? our first glimpse of the proposed mosque in ground zero is now out. let me tell you about a very important phone call i made.

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