>> jon: have yourself a great weekend. jenna: "america live" starts right now. megyn: this is fox news alert, big news on the intelligence front. you will see it right here moments away. president obama about to announce another high profile shakeup of his team. you're looking at live pictures from the rose garden where a news conference is about to begin just hours after fox news confirmed that the commander-in-chief's top national security adviser general james jones is stepping down. the president expected to announce that the deputy national security adviser tom donilon will be jones' replacement. that news and what it means. just the lateness a rash of departures we've had. rahm emanuel. christina romer. larry summers, and on it goes. you'll see it here moments away.

another fox news alert, the nation's largest bank is now halting foreclosures in all 50 states, all 50 states. and it could have a huge impact on the economy, the housing market, and you the taxpayer. welcome to "america live," everyone on a friday, i'm megyn kelly. this is becoming one of the biggest financial stories since the near total collapse of the u.s. economy, with billions, perhaps trillions on the line the foreclosure process appears to be melting down at this hour. stu varney, anchor of varney & co explains why this is such a big deal. what exactly is bank of america doing, stu. >> reporter: halting all foreclosure proceedings in all 50 states period. calling a halt, that's it stopping it. jenna: not just the -- megyn: not just the 23 states where there were issues with the paperwork. >> reporter: no, every state. it looks imminent, a general nationwide freeze on all foreclosures. that looks to be something that is about to happen.

if it does happen i think it will, that would drastically slow and already slow, very important real estate market. remember, megyn, one-third of all the homes for sale at this moment are homes which have been foreclosed on. as we speak the housing agencies are sending out emails saying, take those homes off the market, thousands of those emails are going out. that means those homes are no longer for sale. you have frozen a big chunk of the real estate market with significant implications for realtors, real estate agency companies, title insurers, for home buyers, for banks, for taxpayers. it will have an impact on the overall market, the overall economy i should say, slow it down, just on a day when we've lost 95,000 jobs. megyn: we keep looking at the economic numbers and it all keeps coming back to housing, the housing market has not recovered, nothing close to it.

and as soon as that tax exemption for first time home buyers expired back in the spring the housing market really dovetailed downward. the numbers over the summer were horrible. how does this play in? >> reporter: yes, let me give you a couple of numbers here. so far this year 700,000 houses have been repossessed. that means those people are out on the street, the banks have taken them back, they are gone. they've been repo sewed by lenders. a freeze on foreclosure proceedings means that many of those homes will not be for sale. we are repossessing 2,954 homes each and every day. megyn: wow. >> reporter: if that process is now halted, then the people in those homes right now will probably get to stay in for an extra year or maybe less, but it will be a significant period of time. megyn: who takes a hit on that? the reason they are being looked at for for close is they are not paying. who takes the hit? the bank sits there and doesn't get paid month after month after

month while this foreclosure halt is in place? >> reporter: yes, if the bank has possession of the home they cannot sell that home so they can't get anything on that home, it sits on their books as a declining asset. megyn: how does that affect other mortgage owners that are with the bank. the banks don't like to hold the hit they like to pass it along. >> reporter: that's a stretch to say that other mortgage holders within the same bank will be directly affected. i'm not sure about that: the bank's books will take a hit. if those mortgages that are owned by the taxpayers through the agencies, fannie and freddie, then the taxpayer takes a hit because there are no monies coming in on the mortgages and it's no longer being repaid and they are not being sold. megyn: it's a big deal to take somebody's house from them, on the other hand they've gone the opposite extreme. >> reporter: there is no he's he solution to this, there is no

quick fix. it doesn't exist. this foreclosure freeze is inevitable, because the paperwork in many cases is faulty. if you're going to go through the legal process you've got to do it right. that's why they are stopping these foreclosures. there is no fix to this, can't do it quickly. megyn: would have been nice if they could have got even it right from the begin. that's wishful thinking. stu, thank you. fox news alert we are going to the white house now in the rose garden where we expect the president to make the announcement that general james jones is calling it quits and we have a new national security adviser coming in. >> restore american leadership in the world. over the past 20 months that is exactly what we've done. during this time i've relied every day on the advice and counsel of my national security adviser general gym jones. when i talked to jim about taking this job shortly after the election it was a difficult decision for him.

he had just retired from the military, had a wide range of family obligations, but because of his patriotism, his dedication to keeping america safe we were able to agree that he would serve. we asked that he would serve for about two years. i am extraordinarily thankful to both he and his wife diane that they agreed to make the additional sacrifice to our country. jim has decided to step aside as national security adviser later this month and he will be succeeded by his very capable deputy tom donilon. the american people owe jim an unbelievable debt of gratitude for a lifetime of service. as a marine in vietnam he risked his life for our country and was highly decorated for his courage. as commandant of the marine

corps he led our marines into the 21st century and won widespread admiration within the corp and beyond. he helped the nato alliance prepare for the new pheugs of our time. given the multiple crises that we inherited jim has drawn on all of these experiences as national security advisers. the list of challenges that our country has faced these last two years is daunting. since my administration took office we have removed nearly a hundred thousand troops and ended our combat mission in iraq. we've refocussed on the war against al-qaida and subjected its leadership to relentless pressure. we are pursuing a new strategy to devote the resources we need in the fight against extremism in afghanistan and pakistan. we've reestablished relations with russia and signed a historic new start treat tree. we have build a broad coalition

to hold iran accountable and applied pressure through top new sanctions. we have renewed the push for piece in the middle east, and reestablished our leadership in the pacific rim by take being the lead in forcing a response at the global level to the economic crisis. in between we've responded to a range of crises like haiti, and the floods now in pakistan that are required from us as leaders in the world. in short we've spared no effort to keep the american people safe while also repairing old alliances, building new partnerships and restoring america's leadership in the 21st century. through these challenges jim has always been a steady voice in situation room sessions, daily briefings, and in meetings with foreign leaders. also representing our country

abroad with allies and partners in every region of the world. at the same time he has led an unprecedented reform of our national security staff here at the white house reflecting the new challenges are our time, he put new emphasis on siper -- cyber security, development and climate change and made sure that homeland security is fully integrated into our efforts. serving as national security adviser is one of the most difficult jobs in our government, but through it all jim, like the marine he has always been, has been a dedicated public servant, and a friend to me. after a lifetime of service i know this was also an enormous sacrifice for the jones family. many of them are here today and i want to thank them as well. jim, like your father, and uncle and generations of jones' who served before you you complete this assignment knowing that

your country is safer and stronger. i thank you and the american people thank you. i am also proud to announce that general jones will be succeeded by his deputy and one of my closes advisers, tom donilon. tom has a wealth of experience that will serve him well in this new assignment. he has served three presidents, and been immerse ned our national security for decades. over last two years there is not a single critical national security issue that has not crossed tom's desk. he has helped manage our national security team and the policy-making process, and won the respect and admiration of his colleagues in the white house and across the administration. he has a probing intellect and a remarkable work ethic although it's one that depends on a seemingly limitless quantity of diet coke. tom, however, is not the only valuable member of the donilon team who works at the white house. his wife kathy who is here has

done an extraordinary job as joe biden's chief of staff. i'm grateful to the donilon family for all the work that they've already done for our nation and for agreeing to take on this additional responsibility. we have some huge challenges ahead. we remain a nation at war. we will not rest in our efforts to disrupt, dismantle and defeat al-qaida, and above all we are committed to tpoerpbling the kind of american leadership that can shape the world in the 21st century just as we shaped the world in the 20th, a world of greater peace, a world of growing markets and expanding prosperity. a world of shared security, a world where american leadership enlists the support of old allies and knew partners while advancing the values that helped keep us safe and make america the beacon of the world. that is the kind of american leadership that jim jones has always stood for and the kind of

leadership that tom and my national security team will work for in the years to come. i want to once again personally thank jim for his outstanding service and ask him to say a few words. megyn: you have the president making the news there. we will stream this live on foxnews.com if you'd like to hear the remarks from mr. donilon and general jones. the president saying goodbye to general jim jones a friend and a loyal servant for a couple of years now at the white house and saying hello to tom donilon who will take over as the national security adviser. what does this tell us? what is the real story behind this shift? james is here with the heritage foundation and an expert on homeland security and counterterrorism. james, than that you for being here. the story is that general jones he needed to go, he's tired, two years into the administration, it's not that unusual for staffers to get tired and want to move on. there are other reports that this is about jones' views on

public policy including the war in afghanistan sro*s those of donilon. >> well, i mean, this is not a new story. we are chaining the cast of characters but the script is the same. there is an obama doctrine, most observers believe general jones was never a central pivotal influential, donilon is much more influential. there is a small group that really make all the decisions, they focus on their pet issues and ignore everything else. the fact that he's no longer there, boy in terms of how we do foreign policy, national security not much is going to change. megyn: do you think it's truly irrelevant that it's basically jones wants to go? if kt mcfarland who is a fox news contributor and worked in several administrations says she thinks this is signaling a policy shakeup because particularly the news in afghanistan has not been good. this guy jones was somebody who

had supported a reinforced troop presence there where as donilon seems to feel very differently about our presence in afghanistan. >> yeah, i think general jones, quite honestly was there because most observers would say because he was a sorry tired military finger -- figure. but he wasn't terribly influential. there are a couple things that matter when you're the adviser. one is the secretary of state and secretary of defense. we have two figures that are powerful in gates and clinton and very inch few even shall and get along together very well. when that happens the adviser becomes less important. and the nfc adviser is not looked at as someone who is driving the agenda. this is a guy who was a four-star general, he commanded all kinds of things e. was in charge of everybody and now he's just basically a suit that they send around doing stuff. so, you know, not surprising that it wasn't a good fit. megyn: there you have it.

james is telling us it's really no news, it's a shift, it's not going to change policy. on that note, james i bid you ado breaking news in the case of this american couple allegedly attacked by drug cartels on the border ten days ago. we are now learning that state troopers happened to stop the couple who came under fire just hours before the incident. kris gutierrez is in texas where the search for the body is underway. this new headline is a little strange. does it this i anything to do with what happened on the lake, the fact they were stopped a couple hours earlier. >> reporter: let me put it in perspective for you meg pheug. we learned from our sources down in houston the heart lease were pulled over because they were driving a pick up truck that had mexican license plates while they were pulling a trailer with two jet skis that had texas plates. that became suspicious.

the heart lease lived in reynosa, so they lived in mexico, so they would have had the mexican plates. everything added up. the state troopers went on his way, the heart lease continued on their way. according to the dash cam video that we are trying to get our hands on right now it shows that timeframe would have been roughly an hour and a half before the alleged shooting took place on the lake behind me. speaking of that lake yesterday i went out with the county sheriff gonzalez out to the area of the international boundary. we didn't see a single mexican boat on that side searching for david hartley and the sheriff suspects he knows why, watch that. >> just beyond that pillar right now is the mexican side of falcon lake. u.s. authorities cannot legally venture into those areas to search, however that is the area that tiffany hartley says she and her husband david were jetskiing last week. officials down here in texas say that is a known area for cartel members. in fact the sheriff here is actually reaching out to the

zeta cartel for assistance. >> through print media, through television, in english and spanish telling these people, all we want is a body, that's all we want. we can't prosecute, it happened in another country. it didn't happen in another county or state it happened in another country, we can't prosecute. >> reporter: back to the video i want to highlight that i'm told according to the texas department of public safety no sigh takes were given because they apparently didn't do anything wrong. again it's all on video. we're trying to get our hands on it. when we do we'll bring it to you live. megyn: that was an hour and a half prior to the time in which tiffany hartley says her husband was shot on the lake? >> reporter: you're exactly right. and rio grand city is roughly an hour from our location. it takes five minutes to get over to that side of the border. megyn: yes interesting that -- very interesting that will become important. new complaints from the president that conservative groups are funneling millions in secret donations to help republicans in the midterms.

we did some digging on what the liberal groups are doing. the other side of the story ahead. this duke university student put out a powerpoint presentation ranking the 13 men she slept with while at duke in great detail. it's gone viral with their names. what rights do these young men now have? plus, you have never seen a police chase like this before. when the cop catches up the suspect reaches for his gun, what happens next is truly unbelievable. three minutes away.

megyn: fox news alert a rescue

now underway in broward county for two private contractors who are injured and trapped inside of a water tower. look at this picture. harris faulkner has the news, she is at the breaking news desk. >> reporter: 150 feet into the wear that water tank had been emptied so maintenance work could go on by the private contractors. they were on scaffolding inside the tank and it gave way. they were working with sandblasting materials, dangerous chemicals, and what the city officials have explained to me is that this is a complicated and dangerous rescue because of the curvature of the walls inside the tank. once they lower some of broward county and hollywood city's best rescue workers into this tower they'll have to then climb along the curved walls to the guys who are down at the bottom. those two workers are down at the bottom and rescue them and bring them out. their injuries are serious. one has a leg injury. the one who had been unconscious for over an hour is now conscious. both men are conscious, that is

the good news but the rescue attempt goes on as these men have climbed 150 into the air to be lowered into that tower. fingers crossed that they can reach them. they have been able to ventilate some of the chemicals out of there and get water down to the men but it's touch and go. megyn: what a task they have in front of them on friday afternoon, harris, thank you. new details on what is being called a sweetheart healthcare deal for one of president obama's key political backers. teachers unions, will now be exempted from some of the new rules over the healthcare overhaul. what about the rest of the country? alan colmes is host of the alan colmes show and my guest now. this is the united federation of teachers. it is one of his key political backers. they have come to president obama to the health and human services secretary, and said can we please have a waiver from parts of the healthcare law and the answer was yes you can and the accusation is it's political bay pack. >> this is a one year waiver

that goes to a million people not just in this union also fast-food restaurants like mcdonald's and jack-in-the-box where the insurance companies are offering limited benefit plans and basically would have given the consumer, either raised rates or not given them any insurance. this is to protect the consumer. it is not simply to those who gave money to the obama campaign. it's only for a year until such time as 2014 when the rest of the plan kicks in. i would prefer the whole plan kick in right now. this is for consumer protection. it's not a give back only to those who gave money to the obama campaign. megyn: the reason the administration is granting the waivers is because these unions and mcdonald's and jack-in-the-box have come to the obama administration and said we are going to have to drop our healthcare. >> it's the insurance companies that are doing this. megyn: this is well published last week mcdonald's went to the administration and said we are going to have 115,000 people we will kickoff the medical plans unless we get these waivers. >> wait the insurance company is

doing it not mcdonald's. megyn: whoever it doing it the obama administration is persuaded. solis even the criticism has been the healthcare plan is essentially falling apart before it even gets started. there are so many problems with the bill we already have millions of people, hundreds of thousands who are getting exemptions under it. >> this is a temporary fix to handle the insurance companies, this is why i favored a single payer plan or a public option to compete with these insurance companies. megyn: sorry but that is gone it didn't happen. >> i am making the argument that this is what should have happened. from a progressive point of view many of us oppose what has happened because we would have had a better plan the other way. the insurance companies that handle jack-in-the-box and some of these unions are saying we're going to raise rate and not insure the temporary workers. the administration is stepping in and saying we are going to protect these consumers from the insurance companies who are falsely saying we are going to

jack up rates. megyn: the insurance companies are lying and the obama administration is going along with it. >> where the real death panels are they need to have regulation. megyn: if you do say so. >> i do say so. megyn: i'll give you the last word. >> thank you. megyn: kathleen sebelius is coming under fire because she was speaking to an aarp conference and she said that next year, quote, there will be more medicare advantage plan for you to choose from. >> right. megyn: well that is not true. >> correct. megyn: senator chuck grassley sent her a note saying that is not true and what are you going to do about it. and instead of saying i'm sorry i messed up they quietly went on the web and changed the version of the speech to accurately state there will be more meaningful choices instead of there will be more medicare advantage plans. now they've changed that again from instead of there will be more choices there will be better choices. all quietly done. >> not quietly i don't agree

with that. wait a minute people make mistakes. they acknowledged the miss take. the hhs is saying the fact that the speech has been updated hud have been clearly indicated on the website we are in the process of updating the website as quickly as possible. this is knit picking. megyn: no the critics say this speaks to a greater lack of transparency when it comes to the healthcare overhaul. they find a problem in particular one that is going to affect seniors. they misstate the facts then when caught in it they don't say you know what aarp we screwed up we said there would be more medicare advantage plans and that is true. >> i totally disagree with how it's being framed. they said we screwed up, they acknowledged it. megyn: after they were caught. >> when they realized they had made a mistake they responded. megyn: after it hit the press after grassley raisette -- raised it with them. grassley is saying they should issue a prompt correction. >> he is playing politics.

megyn: shouldn't she go back to the seniors she misled. >> i don't think it's purposef purposeful. >> reporter: the aarp members may not have time to check the website. kathleen sebelius had said all along you don't like the healthcare form because you're mismiss informed, uri lying on misstatements of the critics of this bill. she made a misstatement. >> they corrected the mistake, it's public, it's on the website, they changed the language, said they are sorry and they correct edit. it's never going to be enough, never enough. megyn: we'll see it it's enough for chuck grassley. >> i hope it's enough for us. megyn: i've had enough of you. >> i'm sure you have. megyn: thanks for being on. an israeli driver being attacked by stone throwers, nowhere to go. one of these palestinian children gets hit by the car. live on the scene just ahead with what happens next. for the second time this week a

stunning look at police coming under fire on the job. trace gallagher next with one of the most powerful stories and videos of the day. host: could switching to geico really save you 15% or more on car insurance? did the little piggy cry wee wee wee all the way home? piggy: weeeeeee, weeeeeee, weeeeeee, weeeee weeeeeeee.

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to help reduce attacks, lower your uric acid. uloric lowers uric acid levels indults with gout. it's not for the treatment of high uric acid without a history of gout. uloric reduces uric acid to help you reach a healthy level. [ female announcer ] don't take uloric if you are taking azathioprine, mercaptopurine, or theophylline. gout may flare when starting uloric. don't stop taking it. your doctor may give you other medicines to help prevent flares. a small number of heart attacks, strokes, and heart-related deaths were seen in studies. it's not certain uloric caused them. certain tests to check liver function may be required. tell your doctor about liver or kidney problems, or history of heart disease or stroke. the most common side effects are liver problems, nausea, gout flares, joint pain, and rash. [ male announcer ] if you have gout, ask your doctor about uloric. megyn: for the second time in a week, stunning video of a police officer almost getting killed on

the job. this comes from missouri where officers are pursuing a guy suspected of two carjackings. trace gallagher picks up the story from there. >> reporter: i'll show you the entire dash cam video. let me set the scene. the suspect just finished his second carjacking. the police officer's name is steven bohl. this is being taken from a cruiser approaching the scene. this is the suspect nick that waller. offscreen is the police officer, raymond bowles. he has fallen down on his right side so he cannot access his gun. now roll this. [gunshots]

>> fired. he fired. report require want to tell you steven bowles was able to get up on his knees and fire. every shot the suspect fired missed. and bowles hit him in the chest. then the officer in the car with the dash cam actually ran over the suspect. as you watch this again, he ran over the suspect. you see -- listen to what steven bowles had to say. >> i thought my life was over when i started take the gunshots and couldn't get my gun. >> reporter: the dash cam

video was taken by a police officer. next to him he had an 18-year-old female student who was ride along with him. can you imagine being in a shootout. you are worried about someone with you. he ran over the suspect as well. dramatic dash cam video. the suspect its sentenced to 30 years in prison for that attack. megyn: the suspect survived that. now he's facing prison time. >> reporter: he survived. he was hit in the chest. now the's been sentenced to 30 years in prison. the officers both cleared of this. megyn: just so brazen to have been caught and look at him trying to take it life of that police officer. it just -- cops misbehave sometimes, we all know that. but it's just something some keep in mind the next time you see police caught on video benaifg a way you have got questions about. this is what they face out

there. they put their lives on the line. it's not like your job or my job. >> reporter: bowles says every time he pulls over somebody, even if they e a pedestrian, he thinks, what's going to happen now. you are always wondering, does he have a gun. he turns around and started firing and the officer had fallen down, couldn't get his gun out. megyn: they have wives and husbands and children they need to worry about. not to excuse bad behavior, but another perspective. trace, thanks. >> reporter: you bet. megyn: a big fight is getting uglier on the campaign trail. president obama ramping up complaints that conservative groups are secretly funneling tens of millions into the elections and democrats are being outsent 7 to 1.

but a report says liberal groups have compiled $250 million for the democrats. what about that? jason lewis is a her to of "power divided is power checke checked." this has been like an increasing narrative we have seen with president obama and nancy pelosi. president obama says the democrats are getting outspent 7-1. nancy pelosi says it's 8-1. and she actually said they were being outspent $200 million to $7 million. the republicans were spenting $200 million. and the outside groups were only spending $7 million and it turns out this is not true. >> this would make a strawman blush. the afl-cio and seiu announced their campaign pledge of $88 million for this cycle alone. in is running around saying we

are only going to spend $7 million? i mean, seriously, folks. of course, the new report you mentioned anywhere from $200 million to $250 million total coming from democrats. the campaign media analysis group says democrats have spent far more on actual advertising than republicans. so you have to wonder where are they getting this money. maybe they are borrowing the money, but i doubt it. megyn: it doesn't seem like if you look at these numbers, it does not seem like democrats are being outspent 7-1 or 8-1. >> the real issue is the hijacking of our democracy by shadow groups. nobody knows where that money is coming from. it's coming from oil companies and hedge funds. the supposedly grassroots tea party group is being bankrolled.

the big story here i think is the fact that the right wing fat cats abandoned the republican party. they are fun can the tea party and those folks together with a billion dollar corporation are going to spend $300 million in this election which is something 2/3 of the american public are against. >> 527 groups coming out of the failed mccain feingold did disclose their billions. that was coming from george soros and others on the left hijacking democracy. the league of women voters which is a left wing group, and they lobby and they campaign. so i don't know where you get this sort of monopoly on hijacking democracy when you have got a litany of 527 groups funded by left wing billion

airs. you have the league of women voters together same tax status and the karl rove groups. >> are the unions spending money? you bet they are. it's the only way hard working teachers and firemen and get their voice heard. megyn: it's fine for hem to get their voices heard. but you have got the president obama and the speaker of the house of representatives saying it's not so. that they are being outspent 7-1 or 8-1 and blaming the nefarious conservative groups for trying to buy the election when the facts are that you have got unions on record already saying they are experiencing between $200 million to $250 million. >> the right wing groups spent early money putting together a barrage of tv advertisements that we are quite sick of hearing. the labor unions are waiting to spend their money, they are holding out for the ground game to get out the vote.

megyn: they have chosen a different strategy. >> it's about when that money is being spent. megyn: you are not speaking to my point. the president and nancy pelosi may be misleading the american people on this. >> i think it's when the money is being spent. >> the democratic governor's association in 2009 raised $223 million mostly from corporations including exxon mobil. until until this year goldman sachs has give up more money to democrats than republicans. let's back off this whole corporate takeover of democracy. you need to look in your own backyard it, your party subsidizing wall street or bailing out gm. come on. >megyn: got to leave it at that. i know you clearly have more to say on both sides.

thank you so much. for decades now we have seen stone throwing in the middle east. but we have never seen an incident quit like this one. just ahead we'll show what happened after things got really bad here. tiffany hartley says her husband was killed by mexican drug gangs and says she may be willing to take a lie detector test. wendy you are in if i says there is very good reason to doubt her story. she is here right after this break. >> are you sure your husband got shot? >> yes. tylenol 8 hour lasts 8 hours. but aleve can last 12 hours. and aleve was proven to work better on pain than tylenol 8 hour. so why am i still thinking about this? how are you? good, how are you? [ male announcer ] aleve. proven better on pain.

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megyn: an intensified search taking place on lake falcon.

mexican officials argued tiffany's claim, that's his wife, that this couple had a run-in with a mexican drug cartel who then shot and killed her husband does not hold up. she says she may be willing to take a lie detector test. our next guest may think that's a good idea. windy murphy is a former prosecutor and a victims' rights advocates. you had an interesting piece. you have a lifetime in law enforcement. you said you have serious doubts about her story. what the reason? >> let's talk about the most recent point why i'm suspicious. i didn't say she did. but i'm suspicious. she said when asked about the polygraph, well, that may be something i would do. i'm thinking why would the answer possibly be maybe not. you don't say may. it's not about the result of the

polygraph. the most important thing in law enforcement when polygraph questions couple. it's how people react when it comes up. why was she hedging? why may she take a polygraph instead of course i'll take a polygraph. it doesn't mean she is guilty, but they are important. she said when she first described what happened that her husband was shot in the back of the head. she said she witnessed it. then she was on one news program, and she has been doing a lot of them, pointing to the front of her head saying he got shot here. it makes no sense. then of course the most -- then the other thing is folks are saying, when are we going to hear about whether they rented the jet ski, where they got them. what we know which is negative

information, it doesn't prove have much is thus far no one can confirm the guy was out there much less shot in the head. megyn: new news broke today. they were stopped by a police officer in their truck with the two jet skis because license plates didn't match the one on the truck. this police officer can place them somewhere near the lake together and both alive about an hour and a half before the incident. you talk about her demeanor and how it raises questions for you. there has been a lot of talk about this. tell me what about it raises eyebrows for you? do we have wendy? >> i thought you were going to play something. megyn: your questions about her demeanor. >> i get nervous talking about whether demean 'proves or

disproves somebody's guilt. there is no book about how you are supposed to behave in a case like this. but she was on with gretchen carlson a couple days ago on fox news talking about how upset she is. she said my husband loved your show, he watched you all the time. megyn: we have that. take a listen. >> good, good. >> appreciate you joining us and sharing your story, thank you, tiffany. >> i want you guys to know he really loved your show. he watched it every day. >> reporter: thank you so much for letting us know that. our hearts and prayers are with you. >> thank you. >> so you know, my question is, what is she doing even thinking about her husband's tv habits much less sucking up to a tv host? it's not a thing a grieving spouse is thinking about?

does she want t want to ingratie herself to the media? i think it's important to be clear head and not indulge her because she is cute and these is an american. megyn: the family says the mother is on this program saying how in love they were. a witness saw her as she was riding her jet ski toward shore. they say there was a drop of blood found on her life jacket. we don't know. wendy is not saying she did it. she is saying there is reason to be suspicious. >> lacy peterson's mother loved scott for a while, too, and stood by him. let's not forget it's hard to invision a happy couple being so seemingly in love being so sinister. i want to see her take that lie detector.

i want to see that soon. megyn: wendy murphy, thank you so as much. we'll have much more right after this break. don't go away. diabetes testing? it's all the same. nothing changes. [ man ] then try this. new and improved freestyle lite® blood glucose test strip. sure, but it's not gonna- [ bp ] wow. [ man ] yeah, that's the patented eestyle zipwik™ design. [ woman ] did it just -- ta the blood? target the blood? yeah, it drew it right in. the test starts fast. you need just a third the blood of onetouch®. that is different. so freestyle lite test strips make testing... [ man ] easy? easy.

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megyn: new developments over a small town fight getting national attention. it started in north carolina where leaders voted to remove the christian flag from a town memorial. the community leaders got spooked after the aclu threatened a lawsuit. private citizens are showing they are not intimidated. >> reporter: it happened in king, north carolina. they were flying this christian flag on a war memorial in a nearby park. an afghanistan veteran and korean war veteran complained.

they called the aclu. the aclu called the city and said take it down or we'll sue. the city thought they couldn't afford to fight the lawsuit so they took it down. standing room only at the next city council meeting. >> i believe god will give you have the finances you need, sir, to take care of that court cost. >> the aclu will bankrupt the city. >> stand up with us to fight this battle and let's win it together. >> reporter: not only will god give they the fund. the city said we'll give you the fund to fight the aclu. the council still says no. not you flags are flying all over the city, on businesses, yard, homes. they are going to try and fight this even though the odds are against them.

courts are ruled against this for many, many years. megyn: we have been following bombshell developments in california in the governor's race. today there is a big one. democrat jerry brown caught talking with an aide about meg whitman. that aide using a nasty word in reference to meg whitman. plus a duke graduate and her mock power point thesis. this is all about the men she had sex with during her time at the university. so, now that she has put this out there and it has gone viral. do the boys have any options to protect their own reputations? new details. he says was ambushed by mexican drug games. but some accused him of making the whole thing up. and today we may be able to say case closed.

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megyn: a potential bombshell in the california governor's race. jerry brown's camp desh's a democrat, attorney general running for governor. s is confirming that a private conversation between jerry brown and one of his top aide was inadvertently caught on someone's voicemail. the aide on that tape -- they thought they had hung up the phone, calling meg whitman whos is brown opponent one of the worse things you can call a woman. here is a transcript. jerry brown said quote do we want to put an ad out that i have been warned if i crack down on pensions they will go to meg

whitman? the son of a former two-term governor and political consultant. michael reagan. you know something about california politics. is this a big deal or not? >> it can be a big deal. my far it was 2 points behind when he was running against jerry browns father. two days later my father surged ahead and never looked back. meg whitman needs those independents who haven't made up their mind to make sure they end up in her court. she also need to solidify her

position with the women in the state of california. this statement by miss brown aide with the tacit acceptance of jerry brown. could put the women into meg whitman's court and independents who are wishy washy coming over to her side. it could be a game changer. megyn: brown's campaign manager said it was a private conversation. he said it was a private conversation but at times our language was salty. we apologies to miss whitman and anyone who may have been offended. will that do it with women's group out there? i think they tend to lean left and they 10 to be protective of women when it comes to comments like this. but will they be protective of meg whitman? >> that the big issue. meg whitman has to take the bull by the horns here and let

california no why she wants to become governor of the state. jerry brown right now is coming across as though he cares more than she does. and she needs to come across that she is hurt by it. in fact -- megyn: would that help for her to play the victim? she wants to be the governor of the state. this is the moronic comment. >> she has to stand up for the women of the state of california. megyn: she is doing that. let me tell the viewers what she said. she said, the use of that term is an insult to meg whitman and the women of california. this is an appalling and unforgivable smear against meg whitman. at the very least mr. brown tacitly approved the slur. >> it many didn't having an aide saying as you saying it. she needs to say that to the people of the state of california. she all see needs to make a

point that in fact if you are not happy with one section of the parties running washington, d.c., the democrats, why would you be happy with a democrat party leading california wholly from the executive all the way through the state legislature. megyn: she has been making that point. the political points they both have been making. she took a hit on the housekeeper. >> she needs to traction. megyn: should she use this? can she use this? let me tell you some people are saying it's not a nice word. there is no question about it. but it's used in political circles against men and women who cut deals to get elected. >> listen, you and i both know deals are cut all the time. but right now she needs to change the game. she needs to stand up and take it to jerry brown. jerry brown has been take it to

her for quite a while. now she needs to turn the tables and take it back to him on this issue. she needs to drive the home. she is mad as hell, not going to take it anymore and and she wants to be the governor of the state. she needs to sell the people of the state of dafl california, it's not about money, it's about wanting to be the governor of the state and change the state and bring jobs back to california. and bring industry back to the state of california. that's what she needs to get on to. megyn: i picture somebody saying that to your dad. let's call her a "w" word and i can't see him responding with well i'm going to use that. >> reporter: ronald reagan might not have used it. he might are laughed it off at that point in time. but right now it's not laughable in the state of california with what's going on here. the fact that our industries are being taken by everybody,

arizona, oregon, texas. when need to bring jobs back. this is a serious problem out in the state of california. the only people coming into the state are illegals because all the legals are leaving. megyn: this is the second time in a california political race we have seen somebody caught on tape. fiorina was caught on tape making fun of barbara boxer's hair. if you are near a phone or microphone, assume it's on and be careful what you have say. >> fiorina need to really not be so stoic. megyn: she needs a game changer out there. megyn: we are taking your comment on it. what do you think? is it a game changer? let me know. also from california this hour, new details on a fat cat pay scandal from the city of bell. the city manager made upward of $700,000 a year.

the city apparently offered him a severance package then withdrew the hour. now he wants access to his retirement and healthcare benefits. he wants even more money from the taxpayers. he's facing 53 criminal counts following the corruption scandal that sparked these protests. tensions are running high in jerusalem. a car driven by an israeli settler plows into a group of palestinian boys who were throwing rocks at the car. some of these pictures are graphic and disturbing. keeping that in mind, here is the video. this is such a tough situation. you have got to ask yourself what you would do if they were throwing rocks at your car.

too see that boy get hit. do we know what his condition? and do we know hot driver is? >> reporter: the boy is in stable condition. he's suffering from head trauma but he will make it out fine okay. the guy honed up hitting this car is a well-known settler. he ended up hitting two palestinian kids who are throwing stones. you see the kids were throwing stones. one child gets thrown up into the air, slams against the windshield before hitting the asphalt. police ended up speaking to berry, questioning him. he was later released. he said he feared for his life. and that's yes ended up driving into the kids unintentionally. and tried to make it out of there okay. this entire incident happened in an street jerusalem village. it's been a massive flashpoints for tensions between

palestinians and views. it's a home a handful of jews have chosen to make their home. but it's a predominantly a palestinian village. when we see tensions in jerusalem this is the flash point where it tend to go down. megyn: it began as a revolt against the president and the democrats who control congress. now democrats apparently almost embracing the tea party. why the left says the upstart political movement could be its best ally on election day. four years of college, more than a dozen men. now the sexploits of a student spark uproar. he traveled to mexico to visit relatives. but this 18-year-old college student never came home. a chilling look at the impact of the drug war on american lifts. >> more and more students are

getting murdered. i don't think it's safe anymore. >> you can't go visit your family because you are going to get robbed or killed. diabetes testing? what else is new? you get the blood, hope it's enough, it's -- what's this? [ man ] new and improved freestyle lite® blood glucose test strip. sure, i'll try it, but -- [ beep ] wow. [ man ] yeah, that's the patented freestyle zipwik™ design. [ man #1 ] it's like it -- targetthe blood. targets the bld. yeah, it draws it ght in. the test starts fast. you need just a third the blood of onetouch®.

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megyn: investigators are searching the records a shrine in pakistan. victims who survived the bombs are recovering in a hospital. new jersey governor chris christie says his state does not have the money to fund a $9 million tunnel connecting new jersey and new york. 10 people are recovering after a rollercoaster collision at a california amusement park. it happened at knotts berry farm outside of los angeles. what are we talking about rollercoaster collision?

what does that mean? anyone have details on that? we'll have to get those to you later. what did it collide with? a painful new reminder of the out of control violence in mexico. suspected members after drug cartel shoot and kill a texas college student. jonathon torres, a freshman at the university at brownsville was in mexico visiting family. the 18-year-old was gunned down in an ambush. >> reporter: he is an american citizen born in georgia. he went to high school in mexico. he's going back to college at the university of texas brownsville. he was on a bus going to visit family in the rio grande valley, the same place where the falcon lake is. the bus was ambushed.

there are reports coming out of mexico the other woman was american and they were the only two americans on this bus. we are trying to confirm that and have not been able to. we have confirmed the number of bus jackings in mexico in recent months have gone swrai. you've mexican authorities are staying in that rio grande valley they cannot protect buses except for the hours of dawn to 2:00 p.m. in the afternoon. after 2:00 p.m. the buses are on their own. the university of texas brownsville is saying none of the students should travel down there, none of the faculty should travel down there and they do so on a regular basis for research. we talk about this time and time again. the mexican authorities acknowledged drug cartels have taken vast stretches of land in the rio grande valley, using them as drug corridors and they are faight for more territory it's a bad scene. this is an example of that. megyn: revealing clothes, sex

toys, dog leashes, racy pics from college years past. not the kind of thing you want to explain when you are running for congress. plus, remember this? the sheriff's deputy accused of making up a story he was shot by drug smugglers. what he is saying about new evidence that could support his claims. >> these two guys -- i may have got one of them, but i can't tell. i have got to get off the phone. i'm going to try to stay here. [ male announcer ] if you've had a heart attack caused by a completely blocked artery,

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megyn: a 911 call from an arizona deputy in trouble in the desert. that deputy is speaking out for the first time that added to the debate over illegal immigration. he claims was am burden and shot by a group of drug smugglers in the desert south of phoenix.

in recent days critics have accused the deputy of shooting himself. one forensic effort says he looked at the wound and didn't feel the bullets could have come from afar. they believe it was a hoax. but the sheriff's office says a new investigation is back up the deputy. test on the shirt shows he was shot from someone else and the gun with us fired from far away. those test results come as no surprise to deputy puroll. >> i did not shoot myself. i never at any point ever lawyered up and refused to answer questions. i have answered every single question asked of me by every single investigators this. any who says i lawyered up is a damn lawyer. megyn: one newspaper is

referring to limb as pinocchio. that maybe may have to run a correction. megyn: the tea party could be the democrats' best ally on election day? that's a bold assertion from one of president obama's political strategists. he says the left has the tea party advantage. they claim's drawing votes away from republicans while motivating disenchanted democrats to get out and vote. his theory is they are scaring independents and democrats and motivating them not to vote republican this election. >> this is a version of the sky is rising, the sky is rising. i call it chicken big. the fact is some of those candidates are -- have got problems and they are unattack.

christine o'donnell is one of them. megyn: they mention never. >> age is ahead. the attempt to demonize an entire state of mind. but they don't understand the democratic party thinks they are in a p.r. game with the other consultants in washington. what they are doing -- they are in this we are -- i don't know what drug they are on, they are saying it's over, we are winning. which is when the republicans were saying we are going to take 100 seats. deck morris desh and sean are work on driving independents to drive home because they are not for republicans. republicans are the red default button issue. stop the machine in 2010. the american people would like to get rid of them all by 2012. but the thing is now the

democrats are going to tell all the people in the country who are really unhappy, they are going to stay in you want to tell them you are winning and this is working for you? no. this is -- megyn: you think this is the message? we heard the white house was going to get behind ads trying to demonize the tea party. then they denied that. then we saw more and more from the left. >> it's the on thing they know how to do. they don't have a message. here is the problem. the democrats decided to demonize their opponents as a last-ditch strategy. megyn: they are not running on issues. >> they can't run on their issues. the republicans are no narrative in this election. it's unbelievable to me. they are not running a story -- take the stimulus news. i don't unwhy they are not running ads that show three examples a day that send people through the roof, for instance. healthcare, the most important

one. americans are enraged about the way healthcare was passed and being shoved down their throats. though there is no national narrative on that. the president himself. they are ceding that. the republicans are saying anybody but them. i think that will work. real event. today's unemployment numbers. losing jobs. this crisis in housing that affects almost every american. megyn: one in five homes the mortgages are in trouble or facing foreclosure. one in eight people are on food stamps. >> this is the reality of america today. a cbs poll this morning. this is driving everybody. americans -- the american way of life our traditions and values, things we stand for are disappearing. 66-32 agreement. that's what is driving the it's a sense of loss.

megyn: there are also reports out today -- you touched on a moment ago that democrats are feeling more optimistic than they were. they cite an abc news post poll, republicans were leading on a generic ballot by 13 points, now it's down to 6 percentage points. >> the republican tide stalled. you have to look at polls very carefully. it shows the largest margin of democrats over republicans in their sample by 10 points. you have to look at this stuff. the fact is yes the generic ballot is closed, but it's still an historical number that no one has seen. plus i believe if you look at the individual state races, i'm thinking it's beginning to pick up again with a furor today. for the republicans.

congressman dingell, he and his father held that seat in michigan they have for -- since 1932. he's now behind according to the detroit free press poll. you see there have been other indications -- other congressmen yesterday. what the democrats claim and what they do. yesterday the democratic house campaign committee put $200,000 in a massachusetts district, the tenth district trying to hold that seat. you are not spending $200,000 defending your base seat unless you are in real trouble. but republicans may leave a lot on the table. this is not yet resolved. but i think it's going to blow wide open. the tide is coming. megyn: thank you. one mid-term race, racy pictures have surfaced much a female candidate for the house of representatives. the pictures get worse than this. she says it's a political smear.

is it? or is it her own fault. a texas state trooper on the wrong side of the law for what happens in this disturbing dash cam video. criminal charges and the victim who got slammed into a concrete wall ahead. >> continued to pull me. it's painful like being guided by your elbow when your arms are all the way up here. diabetes testing? what else is new?

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megyn: a major drop in jobs and widespread layoffs. the economy is losing 95 thousand jobs just last month. rich, boil this down for us. good news? bad news? what? >> reporter: it' not terrible news but it's not great news. it's another month of sluggish private sector job growth. tens of millions of americans are unemployment. let's compare the government numbers. the government lost 159,000 jobs in the move september. most of that comes from temporary census workers. but more than half of that comes from local and state governments. they are having troubles with budgets and they are laying off workers. 83,000 workers laid off last month because of government job loss. as for the private sector you

are talking about 64,000 job gains. however, it's not enough to keep up with pop laying growth. but still that -- up with population growth. take a listen. >> the between line in private sector jobs are going in the right direction. but i'm not interested in trend or figures as much as i'm interested in the people behind them. >> reporter: this is the last jobs report before we have the november election so we'll hear plenty about that today. plenty about that throughout the month. republicans say democrats who spent all this stimulus money and still 15 million people out of work. megyn: thanks, rich. we appreciate it. a democratic candidate for congress. crystal ball trying to explain

away racy photos from her college years that have surfaced. newsleing on what is not the kind of snout i remember reindeer having. with a name like crystal ball you may have think she would have seen this coming but no. our panel is here to discuss it. so let's start out with crystal ball. i object to any parent who would name their child cries tall with a last name like ball. >> she didn't see these pictures she had taken of herself were going to surface. six years after they surface, she. megyn: lee runs for congress. it happened in relatively recent history. she says this is sexist. she says there is a double standard in this regard. a man would not be excoriated for such pictures.

>> i think they would. this is politics. more and more -- the next round of politicians are going to be subject to more scrutiny because of facebook pages. future presidential candidates beware. everything you put out there will be under scrutiny. she'll lock up the male vote based on that picture. megyn: she was behaving like a more ron. can you imagine if -- she was behaving like a moron. >> you have got to be careful what you say. >> that's the world this gal lives in. megyn: she is 29 years old. she is running for congress. she has got ambition. but if you have pictures out there like this are they a deal breaker? >> my problem with her is she says she was surprised. you sit around with your advisors and you talk about the skeletons in your closet. megyn: aren't you thinking about

affairs? are you thinking about stupid pictures you took. >> you have to think about everything you do. if you are putting yourself out there you better think about it. if she is not spried i don't want to vote for her. megyn: how do you know when you are taking pictures, other people are taking pictures -- i don't think this is a deal breaker. i think we will be a lot softer on these issues. megyn: especially the young people will forgive her. jay leno decided to take a shot at pg-13 at christine o'donnell. >> why do you find -- the fact that she is the antimasturbation. >> the second she opened her mouth it would probably ruin everything. >> i think it's hysterical.

these are two immature boys on late night comedy show making fun of her. megyn: is it sexist? are they making a sexist remark about a female candidate? or is it late night whatever. >>it is but it's late night television. in comedy this is what happens. at least jay le noise an equal opportunity comedian. he goes after both. megyn: dose make sexist jokes about men? let me ask you about this. do you forgive the people who say you make $16,000 or more per year if you are skin which. not thin, you are supposed to be 15-25 pound less than the normlal. then you will make $15,000 more ayear. and if you are a got it fatter you are the more money you make unless you hit obesity. >> i'm guilty of this. i worked in the fashion

industry. we are guilty of this. the fashion community puts it out there in the magazines to show people you need to be thin and skinny. that what counts. but the skinny guys are having tough times. i know skinny guys who have problems. it's hard for them to gain weight. i feel sympathetic. megyn: the skinny guys aren't making that much money and the skinny girls are. they are saying they take a normal size woman and say lose her. you have to be a bone thin rail to get paid more. >> the story makes me angry. the minute i read it -- megyn: it makes me put on another pair of spanx. i think skinny men should start a support group. megyn: or start eating. plastic surgery regrets are spreading through hollywood. last year cosmetic surgical procedures in the u.s. decreased 9 person and now we are see --

decreased 9%. look at this. she has gone lipless on the top without the collagen. kim kardashian has botox. she is speaking out. what do it tell us? >> most men i know don't like it. the women saying they are doing it for themselves. they should celebrate who they are and what they really look like. people want the see people how they are. not made up. megyn: they want to see -- >> in the fashion industry it's all about looks. >> i said about weight. the models i think are beautiful are the ones that are truly beautiful. kim kardashian looks ridiculous. they are such liers. lisa said she had lip injections

years ago. she has been getting them year after year. the on reason she stopped is because they blue. megyn: you have celebrities like demi moore who said the breasts grew from child rearing and breast feeding. >> joan rivers wrote a book and talking about plastic surgery. at least somebody is talking about it. at least now finally the celebrities are admitting they are doing it. and hopefully maybe they will save some problems so little girls can realize you don't have to look like that when you are born. meg thank you sborn. megyn: thank you so much. shep: it guess it doesn't mean no more makeup and jewelry. legal or not legal to make everyone pay healthcare

insurance? if you don't you pay a price. there has been a ruling. then there is a matter much john edward who had that aware and got introuble. there is a fresh round of subpoenas in the proper of the two-time presidential candidates' finances. megyn: she was trying to be funny. then her college sexca pennsylvaniades went crueler. will the men sit quietly or should they have the last laugh on "kelly's court" after this break. 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. to stay fit, you might also want to try lifting one of these. a unique sea salt added

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megyn: "kelly's court" is back in session. it began as a tongue and cheek spoof on a college thesis. the tell-all thesis writing

about sex capades. it names names. outing one guy who she says was a little too quick. it was only meant for a few close friends. can the guys get the last laugh now? it's online for the world to see. let's ask our panelists. this she says was meant to be only giver on these three girlfriends. one of the girlfriends forward it and now it's viral. she goes into such detail it's unbelievable. with the guys' picture and now the world has seen it. what can they do? >> it's an upsetting case. she'll not be anybody's wingman in vegas with the tell all she is doing. the men do not have a case of defamation or slander against her. i'm sorry.

live by the stick you will die by the stick. megyn: invasion of privacy? >> i don't think so. i don't think they can recover money damages. if she had taken naked photographs or videos. but they may have a case against the university for her using their servers. megyn: so you are telling me anybody out there -- everybody watching this show has some sort of relationship in the past. that any of those ex-lovers can go out and tell everything they want to tell in a public forum on the internet -- granted she didn't initially plan to give it to more than those three women, and there is no cause of action? you can be outed like that? >> kissing and telling is legal. as long as you are involved. it's like having a joint bank account. each of you has a right to withdraw all the money. if you are in a relationship you have the right to tell the story. if you analyze this case she

stand to possibly make some money from this actually well-written and sort of entertaining expose'. if she did this these guys may have the claim to the right of publicity. every time you make off this -- megyn: even if they are not famous? >> she is using their likeness. megyn: it look like it's going to create money. she has gotten inquiries of book deals, and a agent and movie studio want to go make a star out of her. now there is speculation that might have been behind this from the beginning. is this intentional? does that change the analysis. >> perhaps it was intentional and it wasn't so innocent. that it wasn't negligently disseminated without her knowledge. maybe she was purposeful.

sorry, boys. sorry those of you who rented 2 out of 10. -- who rated 2 out of 10. megyn: she goes into great detail. it doesn't seem like it was for fun. i have got to go off to i can from the lay. i have two beautiful women here who are college and law school graduates. what could she have been sleeping. first she slept with 13 guys. in this day and age do women think that's empowering, i slept around, i'm in control. listen to how i judge niece guys as to their size and exploits as men. i was disgusted. what are your thoughts? >> i don't like it at all. i think, oh, my god. what does her family and parents and any future employers going

to think of a woman like this that runs around like this disrespecting herself. also just belittling other people. if you are going to put this in writing and on a computer and send it to friend. come on -- megyn: she is proud of the behavior. >> i tried to put myself in her shoes, then i said, who's got that kind of time. we have 20 years on her. i have 20 years on her. when you are 21 you don't think the things you do when you are 41. it's disgusting. i don't think it's going to hurt any of the people on the list. they will be fine. this won't affect them. megyn: a lot of these guys were athletes at duke. i can tell you men do not respect women who do this. if they sleep with half the lacrosse team, they don't talk about how great you are, they talk about what a joke you are.

this has nothing to do with the law. but my unsolicited advice for young women. don't sleep around. don't be easy. it's not empowering it's embarrassing. you will be the butt of men's jokes. you won't be respect and you may be humiliated like this woman is now. we'll be right back.

megyn: rescuers are pulling out two maintenance workers who were trapped inside this water tower in florida. workers were sand blafght the inside this water tower when the scaffolding came loose. the men fell to the bottom of that water tower, some 45 feet.

both were seriously injured. we'll keep you updated as we hope it comes to a successful conclusion. a massive security drill at some of the nation's major train hubs amid heightened security concerns in europe. but organizers say the event was bland before the recent threat. >> reporter: good to see you, megyn. 11 million people ride the rails every day. today they are seeing something they don't normally see when it comes to security on the rails, there is what you see and often what you don't. today a show of force beefed up. here is what the chief of police for amtrak told us you can expect. >> i think it's important to always make sure that dots are connected. you can never let your guard down and think you are doing enough. you should always look to do more. >> reporter: they always are

since 9/11. here is a look at some of the other rail stations fox visited, miami, we were also in d.c. and atlanta. and as you can see, more dogs sniffing for explosive device, random bag checks and bigger and badder weapons. that's what they have in place all part of operation rail safe. also i wanted to tell you that as the terror alert you brought up happened -- the travel alert that we heard, they say the' not connected. they want you to know this is going on every single day. part of today's exercise is information sharing amongst state, federal and local agencies. i had a chance to talk to congressman peter king from new york about that. >> if you see something, say something. if you have see someone leave a bag behind. if you see something that looks suspicious, don't be afraid. tell the police, tell the conductor. tell somebody in a position of authority. this to me is the best way to

stop that we can have all the police in the world and they are essential. but also all of us are engaged in this war. all of us have to be in our own way front-line soldiers. >> reporter: much more on my live shots blog. it's foxnews.com. hope you will check it out. megyn: it was the extramarital affair that shocked the nation. former senator and one-time white house hopal john edwards fathering a child out of wedlock. now new seen as in a campaign funding case against edwards. the former aide who wrote a book about the affair is live on studio b. captioning made possible by fox news network

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