>> steve: it's been a great week. thank you very much for continuing to make us number one morning show on cable news in the world. america's newsroom starts right now. gregg: i'm gregg jarrett in for bill hemmer. the congressional budget office, the folks in washington in calculate the figures say the 2010 budget will calculate $1.29 trillion. too big for senate republican

leader mitch mcconnell who say his democrats want to take more money from struggling americans who need it most. we are waiting a response from the democrats. this as many americans are expressing deep concern about our country. a new fox poll shows voters are worried about the future of the united states. megyn: ben bernanke is speaking out as well. it looks like the economy is going to get some more help from the feds. no word on how or when or what that move might be. the fed does want to help struggling homeowners as much as they can in terms of working on the interest rates. so mortgage rates have hit a record low. but then you have got this foreclosure mess.

that may put the brake on a shakeout in housing. let's bring in stuart varney to hash all this out with us. what do you expect from bernanke. >> he said a case can be made for chucking a bunch more money into the economy. that would mean even lower mortgage rates. i come up with you and report every day and it's always the cold hard details about banks and foreclosures and profit and loss. i think to be honest with you that this hides a human story underneath. it's a story of human tragedy. just imagine if you will for a second that you are sitting in a home and you are in danger of losing your home. dangled in front of you is a 30-year 4% fixed rate mortgage. if you could get that mortgage you would be safe. you could save your home. but for millions and millions of people you cannot get that 4%

mortgage. you don't qualify. you might be under water. you have got little equity in your home. you can't get from a 6%, 7%, 8% mortgage. you don't qualify to refinance. that's the human tragedy that's just below the surface. megynyou are surface. martha: they ought to be able to bridge that gap and do a workout with the american people. >> this foreclosure freeze, this moratorium, this investigation, that's going to put a lot of pressure on the bank to get people qualified, but it hasn't happened yet. we have been reporting, 102,000 bank repossessions of homes in september alone. how many of those repos could have been avoided if those people could have gotten a 4%

mortgage. they don't qualify. the banks went give you a loan that's worth more than the value of the home. if you are under water you can't refi. martha: it's a human tragedy. that's a way to put it. stuart varney from the fox business channel. gregg: they say they want to finish the job. we are getting new details on a possible terror threat to the united states. intelligence agents say they are extremely concerned the same group behind that failed terror attack earlier this year in new york city is eyeing their number one target again the united states. according to these reports the taliban in pakistan may already have an operative right here in america trying to launch an attack similar to the one planned by the times square bomber fay sabombbomber shahzad.

jennifer griffin live at the pentagon with breaking details. >> reporter: we hearing from at least three separate u.s. intelligence officials that they are concerned about this new intelligence that suggests that the pakistan taliban has sent or has somebody en route if not already inside the u.s. who is planning to carry out an attack very similar to the failed times square attack. if you look at this fbi demonstration video. that attack -- if that bomb had gone off -- that was made of fertilizer or fireworks in the back of an such. faisal shahzad was sentenced to a life sentence in new york last week. if a bomb had gone off, this is what it would have looked like. our sources are concerned the

taliban in pakistan has already sent somebody and they are being sent from the same part of the tribal areas where shahzad was trained. gregg: why are they convinced the terrorists might try something like the failed times square bombing? >> reporter: this is based on something new. it's not simply an analysis of what al qaeda has done in the past. we know when al qaeda in the past when they failed at carrying out an attack they often send somebody again. they don't have specificity whether the bomber would come back to time square. >> it's not difficult to wage an attack on the west, and

specifically in the u.s. and completely defeat them. so again this is one of five threat streams the intelligence community is following. three of them have to do with potential plots in europe. two of them including the one we just described focus on the u.s. homeland and have u.s. agents concerned right now. martha: a breeze fight in vegas last night. harry reid and sharron angle trading jabs. reid is fighting to keep his senate seat and job as majority leader. this is a very big deal and a very tight race. here is how it went on the issue of social security. >> don't frighten people about social security. the deal was made by president reagan and tip o'neal is holding

strong. the money is there and it's taking care of our folks and will for the next 35 years. >> man up, harry reid. you need to understand we have a problem with social security. that problem was created because of government taking that money out of the social security trust fund. in 1990 you said it was stealing to use social security for anything but social security. then you voted to take that into the general fund where it can be used for generally anything. martha: this will be a showdown in the desert. angle and reid, this is before last night's debate. that's within the margin of error. so basically this is a dead heat tight race. gregg: let's move to california, the race for governor. republican meg whitman ready to move past that comment made between jerry brown and an aide

who called whitman a crude name. the former ebay ceo says americans deserve better and slurs and attacks. the national organization for women has been getting involved in this race. critics say they have flip flopped their position in recent days. where does the group really stand on all of this? we'll have a debate coming up. martha: the campaigner in chief hitting the trail in the state of delaware. president obama and vice president biden back in his home state. this race has been one of the most closely watched in the nation featuring democrat chris coons. the latest fox news polls showing kunz with a sizable double digit lead over

o'donnell. go to foxnews.com and get all the app download details. it's the daily check of what's going on in american politics. take advantage of it. it's the ruling that's giving hope to 20 states trying to fight off the healthcare bill. when a judge calls a law unpress don't and novel you can bet it's going to stir things up. gregg: she says america is at the tipping point. sarah palin southwest running up support for her party. president obama was taking tough questions from young voters. >> my question to you is why should we still support you going forward about your monetary and economic policies. and if the economy does not improving over the next two years why should we vote you

back in. martha: that's a good question. we'll hear the president's answer to that 3 minutes away. ea and powerful antioxidants. ea refreshingly good. it's aelief in everything we do.

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gregg: did you see it in president obama facing pretty tough questions from young americans. it was aired on mtv. the president getting hammered on everything from immigration to the economy to his job so far in office. take a listen. >> how will your administration take concrete steps to make sure that legislation like the dream act gets passed before the end of your term so these immigrants don't live the dream, don't dream the dream, live the reality. the congressional budget office projects that social security could go into the red as early as 2018 and it seems there are only three options if we want to fix is, raise the retirement

age, raise payroll taxes or decrease benefits. do you have limits on what would be acceptable for those three things. >> we are looking to an employment agency to employ young people but they are uncertain because of the tax rates going back up. why should we support you going forward with our monetary and economic policies and if the economy does not improve over the next two years why should we vote you back in? gregg: some pretty smart young people. joe, let me start with you. we heard the questions. quite good ones. and the president was kind of on the edge there with those. i want to be fair. here are some of his answers. >> recognize we are all americans, we all want the best for this country.

we may have some disagreements in terms of how to get there. but all of us want to make sure that our economy is strong, the jobs are growing. all of us want to make sure people aren't bankrupt when they get sick. we want to make sure young people can afford an education. but we have got to stop the name calling and stop looking at the next election. we have to be focused on what we are doing for the next generation. gregg: there was almost a velma hart moment there, the woman who said i'm tired of defending this. the president is beginning to lose the young vote. what does that say about his influence in the upcoming election. >> i think he still has a huge influence with the young vote. we have seen in rallies across the country and on college campuses. it wasn't going to be a patty

cake. they were going to ask tough questions. i think the president knew that going in. but we are seeing increased intensity with young people, it's working for them. we are seeing that happening in some of these states. gregg: republicans have not been adept at attracting the young vote. your party got trounced 18-24. young people may not be even amd of the president right now -- >> we have failed to energize the base and the base of diversity. i have to agree with joe that the president does have strong support among young adults and yesterday wasn't a lovefest. i think it was a great p.r.

campaign for obama to show he connected with the youth vote. in stwait 24 million young people vote. the last time they showed up like that was 1972. the show yesterday isn't enough to change what's going to happen in the mid-term elects? no. republicans are still going to take over the house and the senate. gregg: governor jo joe manchin, look at the ad. >> i'll cut government spending. i sued epa and i'll take dead aim at the cap and trade bill because it's bad for west virginia. gregg: with a rifle he shoots cap and trade which is an important part of the obama agenda passed in the house. is the president an asset or liability to democrats, joe?

>> i think it depend on where you are at. in places like west virginia -- everywhere it's better to run local if you are a democrat. the more nationalized the races are the more trouble you are in. gentlemen manchin has proven why he's so well liked there because he has taken on the issues how they affect west virginia. gregg: the latest fox news opinion dynamics poll just came out yesterday. congressional democrats have a higher approval rating and the gop has a higher disapproval rating than democrats. these are registered voters. not does not bode well for republicans, does it? >> that's why the tea party candidates are doing so well. you have a lot of rino

republicans, republicans in name only. if they don't show a change to go back to the conservative base, they will be voted out. democrats are running from obama. gregg: but the question is are they running to republicans? good to receive you both, thanks so much. martha: a u.s. man us expected of killing his parents is caught in another country. look at this video. what he was doing before he was spotted by the police. a live report minutes away. gregg: hours after a remarkable rescue. this chilean miner and some of his colleagues are out of the hospital. the latest on their conditions in this incredible story.

gregg: three chilean miners are back with their families. doctors releasing them from the hospital last night. they are appearing to be in pretty good health. the other 30 are still being monitored but expected to be released soon. this is one day after the world watched their miraculous rescue. they were trapped underground for a total of 69 days. martha: a new york man suspected of murdering his parents is being held in israel. police say they nabbed him trying to buy a ticket to another country. leland, what do you know? >> reporter: i just talked to a source involved in the arrest. it appears he was arrested while

trying to buy a ticket to china very early in the morning. his credit card was denied and that's when an airport worker recognized him from his picture in the paper. you can see from the video it appears he was drugged or sedated in some way. he didn't answer any questions from the media. the police almost threw him into this minivan and took him to an immigration jail. he's not an israeli citizen, so it appears he will be deported. he will be sent back to the united states. he arrived here thursday morning on a flight from newark airport. police say he killed his two parents in a staten island home by stabbing them to death. he was then on this air flight to ben gurion. they say he's emotionally

disturbed and they don't know why he killed his parents. there are a couple of police officers on a flight to israel. and the flight back to new york will leave at 10:00 or 11:00. there is a good chance they will be on that flight. they will fly him back to new york where they will formally charge him with these murders. martha: that's quite a story. unbelievable. gregg: there is a major ruling in the fight to overturn president obama's healthcare law. judge andrew nanc an andrew napl be joining us. [ male announcer ] it's ram truck season.

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as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. martha: this is big news. florida's lawsuit against president obama's healthcare overhaul is going forward. a federal judge ruled crucial

pieces from this lawsuit can go to trial. you have 20 states that are part of this lawsuit. they are saying it's unconstitutional and the government is overstepping its authority. andrew napolitano is our fox news legal analyst. i thought it was interesting this judge called this novel and unprecedented. this law. so that perks up my ears. those are not good words from a judge. >> those are not good word for the obama administration. the same words were used by a judge who upheld the constitutionality. the federal government has never before in the history of the country enacted a law that forces you, everyone as a condition of living here in the united states to purchase a product you may not want or need. the product is healthcare. that's the core of the constitutional challenge. and it survived yesterday's

hearing. what was yesterday's hearing? when somebody sues the government the government replies by saying the lawsuit is frivolous, they don't have the right to sue us. so the government made those arguments and yesterday the judge accepted those arguments for some parts of the challenge and rejected them for the core parts. the core parts, can the government force you to buy health insurance and can the government force the states at their own expense to expand medicaid and spend their tax dollars the way the federal government wants them to. martha: one of the ways the federal government worked the numbers for cbo was saying they were going to dump a lot of these expenses in the states' laps. >> that's why you have 20 of the 50 states suing. saying you can't make us do it. the judge said i will rule on the merits in january.

martha: talk to us about the process. you talked about the decision last week which said the opposite of what this judge is saying. >> there are 15 lawsuits in the country. only two decided. the one in detroit and pensacola. all 15 different federal judges rule. whichever waive they rule, the loser will appeal. that will go to the interest immediate appellate courts. there are 13 of them. martha: some states it will be constitutional, some states it's not. >> you could but the supreme court will ultimately rule whether it's constitutional. how long will that take? three years. the individual mandate to buy health insurance doesn't kick in until 2014. martha: in every state you have to buy driver's insurance. >> no because that's a state law

and states can make you do things the federal government can't, and you can avoid buying driver's car insurance by not owning a car. you cannot avoid buying health insurance. martha: it's difficult not to own your body. >> suppose the government declares the sun causes skin cancer, can it make us buy and wear hats? that's an argument we are seeing in the courtroom. the judge said very good question. i'll tell if you january whether i think this is constitutional. martha: they are basically judging on the merits, this can go forward. judge napolitano thank you for breaking this down. make sure to catch judge napolitano every saturday and sunday at the fox news network. freedom watch * is on saturdays and sunday. the man who filed florida's lawsuit attorney general bill mccollum joins us live in

moments. gregg: it's a state that went blue in '08, but things are looking a little bit shaky for democrats in ohio. that's where the gubernatorial race could change the outlook. governor strickland facing a challenge from john kasich. >> barack obama will be here 11 times sunday night. joe biden has been here three times in the last four weeks. there has been more money spent against me than any candidate in america. obama is running for reelection. he knows if he loses ohio he's in trouble. all i'm doing is running for governor. gregg: according to the latest fox poll kasich is leading strike atlanta 47% to 42% --

leading strickland 47% to 42%. martha: i'm telling you on this campus it is time to think about this election. america can come back. there is nothing wrong with this country that we can't fix with what's right with it. but we have to think and play like we are coaches going into the game. martha: clinton saying young people will commit quote malpractice if they vote for republicans this fall. in miscongress childer faces seven other candidates. lots of metaphors from our old shepard smith's ole miss.

gregg: sarah palin is trying to drum up support for her conservative cause and encouraging folks to get out the vote. >> you love your freedom as americans. when you are not listening to the little guy. i have to ask you are you ready to put government back on the side of the little guy and have government work for you instead of you having to work for government? we have got to change directions. we must step up to the plate and win the big game for the little guy, the middle class, the overtaxed, the overregulated. we don't have to pay the 56 years or 56 days. november 2 around the corner. i can see it from my house. it's right there. gregg: sarah palin is a fox news contributor. she'll be later on today speaking at a forum that features howard dean.

she employed a few metaphors, too. martha: she is playing off on "i can see russia from my house." speaking of sarah palin and speaking of alaska, have you seen the new rasmussen poll this morning? everybody chuckled at lisa murkowski, but take a look at these numbers. this is anybody's race to win. 27% for mcadams, then you have got miller and murkowski neck and neck. joe miller defeated murkowski earlier this summer. she spent a lot of time telling people how to spell her last name. writing her names on huge placards because you have to literally write it in. that's a huge race in alaska. martha: you have to spell it right, for it to count.

gregg: all eyes on a no nor'easr picking up strength. >> reporter: yesterday we were complaining about what a long hot summer it's been. now we have our first october nor'easter. long after the storm is out to sea we'll be dealing with wind gusts 40-50 miles an hour. lasting into sunday. there is the nor'easter. it doesn't have to be a snowstorm to be called a nor'easter. because the winds are coming from the north and east. the worst up towards portland and bangor and burlington. you can see snow on the highest of the mountaintops. the wind gusts 40 miles an hour from long island up towards maine. that will be the big deal as we head into the overnight. even into saturday morning.

and sunday when the storm finally exits. hold onto our hats this weekend is basically the theme. look at the snow across upstate new york. not a lot of snow, but it will be getting folks excited for the winter ski season. we can see 3-4 inches again. so that will be the legacy of the storm. more rain, but the wind will certainly blow things around and make it feel cooler than average. gregg: i'll keep my hat in my office. >> reporter: i hope you have got the shovel ready. gregg: thanks very much. by the way, if mother nature hits your area, we want to see it, we want to know about it. send us our pictures and videotapes. go to our web site, you can upload right on the web site. you can see what other folks are

sending into the site as well. lots of fun. martha: a quick look at the markets this morning. a bit of an uptick. investors reacting to the federal bank wanting to stimulate the economy. we'll keep an eye on the markets and their response to all of that throughout the show. they say they want to finish the job. the times square bomber failed to do that job, now there is word an operative is already inside america to carry that out. the threat from the pakistani taliban. gregg: troubling news for the family of an american cowerrist apparently shot and killed at this border lake. why mexican police are calling off the search for his remains next. ♪ client comes in and they have a box.

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gregg: back to our top story. there are brand-new concerns terrorists are planning new attacks against their number one target, the united states. intelligence officials say this plan is to finish the job faisal shahzad tried but failed to pull off. he tried to set off a car bomb in times square earlier this year. now we are hearing the taliban may already have an operative trying to plan another attack. bob, good to see you. would this be a home-grown terrorist or foreign terrorist who infiltrated. >> the biggest concern has been according to director mueller is trying to infiltrate many of the community here that terrorists are growing in. home-grown terrorism is our biggest problem. they are going on the internet. you saw the video from shahzad

recruiting other people he made 8 months ago. they go to pakistan to be trained and come back and create a major terrorism attack here. gregg: we have been talking to our various sources. a senior intelligence official is telling us the lack of specificity makes it nearly impossible for the counter-terrorism community to defend against such an attack. does this mean we cannot stop it? >> if you look at europe the last two week where americans have been warned not to travel to europe, at least that was the initial warning. then it was modified to say travel with caution and be aware of your surroundings. that with us a wide stream of data of information with no specifics. we had four countries, italy, france, england and germany. in the united states we are dealing with the same thing. we have a stream of information. we know there is somebody here that's part of the pakistani

taliban that wants to attack us. we don't know where they are and we don't know when they are going to attack. gregg: apparently the attack is not imminent. but what do we do about this? is there anything we can do about it? >> what we are doing mostly is on the border of pakistan-afghanistan with the u.s. military and our intelligence agencies trying to gather as much information as we can about the location of the individual here. it's enforcement with executing warrants, it's intelligence gathering the data, then the ultimate thing we do is the security at the airports and the police doing what we do here. it's a three-legged stool. without the intelligence, enforcement and security that stool falls. we are doing everything we can. gregg: obviously 9/11 was an enormously coordinated spectacular attack that claimed so many human lives. has al qaeda or the taliban in

pakistan shifted their strategy looking for smaller attacks but unless devastating? >> they to a certain degree. in their master plan they have another big attack. we can never let our guard down. but they do look officer soft targets. they are recruiting people in our own communities that go to school here, that work here, that have grown up in our own country. they are recruiting them to come back. training them, giving them the financing they need to come back anand terrorize here. martha: the governor at the center of a huge immigration debate in this country is fighting to keep her job. and this race is getting really nasty. we are going to have eric on the governor jan brewer's response to some of the troubling rumors about her health. gregg: quiz time on the o'reilly

factor *. find out if martha stuck around. >> anybody can walk off the set.

martha: talk about a job that's literally out of this world. for six months this year our next guest lived and worked at the international space station. nasa astronaut tracy caldwell joins me now. congratulations on your mission and welcome back to earth. >> thanks a lot, martha, it's

great to be here. martha: there was difficulty unhooking from the space station. it must have been scary. >> it was endearing the station didn't want to let go of us. martha: we watched with sort of different reactions to the fact that the shuttle program is no longer. and now we are hitching a ride on the soyuz with our russian astronaut friend. what was that like? letting go of the shuttle, what's it like being in that companionship relationship now with russia? >> letting ghost shuttle was bittersweet. -- letting go of the shuttle was bittersweet. it's a really huge part of our space program and all of our success it's hard to let go of

something so fantastic. but we all know in order to get to the next step to go beyond earth's orbit we need to love on and let the success of the shuttle anything retire and learn from it. -- the shuttle mission retire and learn from it. sharing a ride with our russian partners. it's a totally different experience. but one that i think i'm excited about because we have a strong partnership with our russian colleagues. their vehicle is vastly different from the shuttle it's a robust vehicle and a very safe vehicle and it withstood the test of time and it gets the job done. martha: you say they have a different -- they handle it differently and it's a different experience. how so? >> well, where the shuttle is a

very complex vehicle and its strength is in its redundancy in its systems, if one fails another one can pick up in its place. the soyuz is a simple vehicle and its strength is in fits robust. you don't expect system to fail, but to go the duration. so the engineering that went into these two vehicles is vastly different from that standpoint. the shuttle is a bit larger, so you are in a bit of a cozy environment when you are in the soyuz. nothing wrong with that. it's just very different. the preparation that you take at least from a nasa astronaut point of view of launching in the soyuz versus the shuttle, you leave your home well in advance of your mission. so for me personally having to

leave the country eight months before -- two months before i started my mission, and then all of the steps i took to launch in that vehicle were away from family and friends. and all that was familiar to me. martha: we are grateful to you. you are a great inspiration for the young people of our country to study signs and technology. and congratulations. thanks so much for being with us today. >> thanks, martha. gregg: washington drowning in red ink. the shocking deficit numbers raising new concerns about tour economi --about our financial f. martha: the national organization of women is weighing in on the debate in california. you may be surprised whose side they are on. >> we heard no outrage from you about the use of that kind of

language which to many women is the same as calling an african-american the "n" word. have you been in charge of the investigation at your campaign to find out who is responsible for that phrase? >> i don't agree with that characterization. this is a five week told conversation. gm>lúgsó>=xw

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use these together for a whiter smile in one day, with dramatic results after full kit. okay, smile! [ camera shutter clicking ] brilliant! [ female announcer ] learn how these crest 3d white products can give you a whiter smile in one day at 3dwhite.com. martha: oh, boy, the battle for one most crucial senate seats in america, senate majority leader harry reid going toe-to-toe with the tea party backed candidate sharron angle, it got personal for the coveted seat. let's take a look. >> you came from search light to the senate, with very little. now, you are one of the richest men, in the u.s. senate. and on behalf of nevada taxpayers, i would like to know, we'd like to know, how did you become so wealthy? on a government payroll?

>> that is really a low blow and most everyone knows i was a very successful lawyer and did a good job of invest and i have been on a fixed income since going to washington and lived off what i made in the private sector and, her suggestion i made money being a senator is simply false. martha: whoa. that is hot stuff and how we start a brand new hour of "america's newsroom," good to have you with us, i'm martha maccallum. gregg: you know those lawyers... i'm gregg jarrett, in for bill hemmer and sharron angle went after him on his voting record, saying he raised taxes 300 times, carl cameron, chief political correspondent up before the crack of dawn in sin city and, carl, lots of fireworks between the two last night. talk to us about that. >> reporter: sharron angle as the aggressor and harry reid this is biggest target for republicans across the country that's most powerful man on capitol hill and a democrat.

and reid was at times a little bit nervous, and not, perhaps, as pugnacious as his history, years ago as an amateur boxer might have suggested and, angle, really needed to boost her credibility, and as a lot of pundits said she did not come off crazy and, arguably, won and went after him on a number of things, including his tax record, and, he countered, that she is an extremist, pointing out she privatized the va, in his view, privatized to undo social security and really went after her for her opposition to health care reform, here's a sample: >> my opponent doesn't like any insurance companies to have to do anything. she's against mammograms, colonoscopies and as we have heard lately, they cover kids that have autism. >> reporter: reid calls her extreme, about a half dozen times, last night and traded barbs back and forth, who was being honest and who was lying and one of the most dramatic moments came when angle, before

the republican primary, an unknown across the country, and, virtually unknown in much of nevada, really slammed reid as the top democrat in the senate for what she called, repeatedly, liberal big government spending and backing the barack obama agenda, listen to this: >> with voting for over 300 tax increases, senator, we can't trust you with our taxes. >> reporter: very very, tough stuff, the most recent polls, before the debate, suggested that angle might have had a slight lead within the margin of error. but, the important thing to remember is, there are very very, few undecided voters left in nevada, the air has been an absolute blizzard of tv ads, attack ads, not just from the candidates, but, from a host of outside, independent groups who are spending millions of dollars here, as well as the political parties from washington. so, last night's battle gave sharron angle an opportunity, really, to, again, voice her criticism of harry reid, and,

prove that she can appear senatorial and pull off the job creditably. and not a lot of undecideds left, and, this will escalate the last 18 days. gregg: carl cameron live in las vegas, thanks. martha: it is a big number and it could have a big impact on the midterms and we are not talking about the latest poll numbers, the treasury department set to report the budget deficit will pass $1 trillion and sizably so as you can see for the second straight year and federal spending is a huge issue in politics now and this morning the top u.s. bankers said the plan is in the works to spend a little bit more, to give the economy a jolt. fed chief ben bernanke admitted that there is a debate going on between the policymakers over how far they should go to interfere and help in the economy, in terms of monetary policy, let's go straight to

eric bolling of the fox business network. eric, the fed doesn't have many tools, arrows left in the quiver, and interest rates are pretty much zero, anyway. >> exactly right. interest rates are in that area, known as almost zero. so, what they can do is they can go ahead and turn on the printing presses, in the way. what they will do is they will buy treasuries and they will print money to buy our own debt, it is crazy and is a ponzi scheme, the problem is this, martha, you touched on it the first part of that intro, was, we will have $1.3 trillion deficit, that added to the debt that we already know, remember, the debt time clock that keeps tick and you are adding more and more debt, annually, $1.3 trillion is the only second highest, only the second time it ever exceed aed a trillion dolls and that is because we are spending $3.8 trillion on our budget, what they plan on spending this year and the problem is, tax revenue is $2.5 trillion and the difference between 3.8 and 2.5 is $1.3

trillion and there it is, right there, the number gets added to the national debt. martha: it is a frightening number, eric and, all of my time covering the issues, i have never seen people more engaged and interested in the debt, and it used to be, you talk about the debt and everybody's eyes glazed over and people look at the number and know it has significant meanings and wonder, is the country stable? i mean, can we survive this and pump out of this? and that is the question the fed and the president, the big question out there. needs to be fixed. >> what they are counting on, counting on the low, lower, low interest rate, almost zero low interest rate and the continuous stimulus plans they keep throwing more and more money into the system and are counting on that, stimulating growth and the problem is, growth is not expected to get back to normal, for years. and, it certainly is not creating jobs, the unemployment rate at 9.6% is elevated, alarmingly and it has been there for a year and it's not working right now but they have hair fingers crossed. martha: and there is the other way to do it, to put more money

back in everybody's hands by cutting taxes and that is part of the central issue, about what this whole election just, you know, double-digit days away from now is all about, eric, thanks, always good talk to you. you can catch eric, week nights, 8:00 p.m. eastern, follow the money on the fox business network and, check out foxnews.com, for all your business, 24/7, that is what we do when we want to know what is going on. gregg: they survived together and guess what, now they may profit together, there's word of a pact among the 33 miners who endured 69 agonizing days, trapped underground in chile. there's a report that says the men all agreed to closely guard the details of their incredible ordeal so they can all equally share in the spoils, if you will of their new found fame. the first associate miners leave the hospital to begin their lives as, well, maybe celebrities, adam housely, streaming live from the hospital

in chile, adam? >> reporter: yeah, gregg, three left last night the first three to be allowed to leave including the one from bolivia, the two chilean miners left and the one bolivian and 30 more inside and we are told a number will have a chance also to leave today, apparently the reason why some have not left as quickly as they originally intended was because there was an issue with government help and the government insurance plan, they have to ensure they get paid the next six months and the government here in chile, actually, having to come check on them, and it has nothing do with the pact you talked about, however, what has to do with the pact, is we have been told they hired an accountant and from now on, any appearances people get paid for of the 33 miners all goes into a main account to be equally distributed amongst all of the miners. and he talked about the details of what happened inside and is going on 48 hours, since the res ku

cues and we are told a lot of things, but much of the detail is not coming out and originally we thought they a half a can of tuna a day and now we are told they had half a bottle cap of tuna and the water had an oily taste to it and there were fistfights that happened down early on and there are some details, but, you are right. still a lot to be learned and we'll see how it eventually comes out. back to you in new york. gregg: quite a story, 69 days under round, adam housely in chile, thanks. martha: and in a couple of minutes we'll be joined by geraldo rivera on the miracle in the mines, just ahead in "america's newsroom" and it could be the first shoe to drop on the overhaul of health care, folks. we're talking live, to the state attorney general, who just got good news, in his challenge, to that law. gregg: and meg whitman all fired up, after her opponent's camp called her a derogatory name. >> it's a slur, a personal attack. this is not what california is about, not what people hope for

in political campaigns. it is not, you know, what is right about this country. gregg: well the word starts with "w" and rhymes with "chore" and you can figure it out, but one of the leading advocacy groups for women say they do not have a problem with it? really? martha: and it is the day time dust-up that is being played coast-to-coast today, folks. bill o'reilly, responds to his explosive appearance on "the view." minutes away. bill: let's see him walk much. >> the muslim extremist thing unfortunately in the my naive state, i assume people know that almost ten years after the fact... >> i have been saying that. >> i assume that that is now ingrained.

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organization of women. and it is all over this controversy, that surrounds an audio recording in the california heated race for governor. on the recording which we have played for you here on fox news, you hear somebody on democrat jerry brown's team, calling meg whitman an offensive word and, fi the national organization of women said brown should fire anyone who used the slur in the future, note person who said it the first time around because they endorsed jerry brown and now the california chapter, not the national chapter, is saying the slur that was used against whitman is accurate, given its context, and here's what she said, she said, whitman could be described as a political whore, yes, that is an accurate statement, let's bring in mary ann marsh, an advisor to senator john kerry and, mary ann, who do you see you with, the california folks or the national now. >> neither.

i think the california folks had it right in the beginning and they called for the firing of whomever made the comment to begin with and that was the right thing to do. they should have added to that by saying, look, we are going to do no endorsement here and jerry brown is better on the issues and make the case but vote your conscience, would have been the best thing to do for everybody. martha: it may not be the typical response of most women watching the story, but, kevin, i think it is a bit of an overreaction and i think that, you know, the context is important, in this case, because, what was being discussed about this was whether or not some kind of deal had been made by meg whitman's camp to promise the police union, if pensions were cut in california they would be exempted, if they gave her an endorsement and to me that is the essential question here. >> it's an offensive word and not a word you would apply to anybody else and the reason that somebody like mary anne marsh is a credible and good democratic

strategist is because she knows an organization that is dedicated to advocating on behalf of women, loses credibility when it tries to dismiss or minimize a remark like this, and it is very offensive to a lot of people and i think they would be wise to take that advice and recognize it is off finsive aensive and f brown it is a distraction and is el lolongat elongating, the news cycle. >> i think the context is important in the and, of course it is offensive, and adults shouldn't use words like this, you know, it is appalling and you want now to come out and say, let's, please, strike that word from the american lexicon, it is a stupid, meaningless word and when you get -- what about now, mary anne, the organization that is supposed to be the organization of women, but they don't support any conservative women and are not standing up for meg whitman in the case. >> the bigger problem here is,

go back two years and look at how hillary clinton and sarah palin were treat running for the two highest offices in this country and that is disturbing and now, we are two years later, the largest governor's race in the country, and we are now -- >> did n.o.w. stick up for sarah palin when he was miss street. >> i don't recall, they might say but republicans did not stick up for hillary clinton, they complained when sarah palin got the treatment and didn't defend hillary clinton as the only democrat who spoke at cpac in 2009 i said, that in front of the audience and people agreed and i think its a bipartisan problem and n.o.w. should have taken a hard line on this. martha: one more response from kevin, purely on the issues here, kevin. if the whitman campaign promised the police union and there is probably no more important issue than spending in california and this is what really should be discussed in this race, if the whitman campaign promised the police union they were going to give them a pass on cuts in

pensions, is that a problem for you? >> i don't think so. i think what meg whitman is focused on and a lot of the california republicans focused their issue on, how do we best address the problem of spending and the issues of public employees pensions, and what they are doing to the effect of budgets an meg whitman who has a track record on lowering deficits and solving economic problems, she's more credibility to explain what she has done to help easy the burden on taxpayers than someone who spent a lifetime in sacramento and has not had the credibility, because the problem has gotten worse under democrat leadership up there. martha: i have to go, people need to pay attention to the underlying issue, which is pensions and funding in california which will be, the governor, whoever it is, will have to take on in a very strong way, you guys are the best, mary ann, kevin, great to see you as always, have a great weekend. gregg: a "fox news alert," a robbery at a bank and a potential hostage situation,

this is live pictures from a chopper, kdfw, our fox affiliate, texas, 30, 40 mileses outside of dallas, texas, 8:00 a.m. this morning, waxahachie, somebody attempted to rob the vintage bank and we are getting word there may be hostages inside the bank, and as a precaution, the local school nearby, is on lockdown and the children who arrived there, were escorted into the building and all the doors have been locked and it is well protected now by local police, and they are trying to sort this thing out. we have no idea if there are any injuries, but potential hostages inside the vintage bank, during the course of a robbery. we'll continue to advise as we get details. this state may not be near you but a political outcome in washington state could impact you and your family, the reason? remember, wins could determine the balance of power in the united states senate and the

candidates, just had a huge debate. we'll break it down and the impact on the race. and politics.

martha: we'll see a lot today, forecasts, a clash of the titans on day time tv, let's take a look: >>. [all talking at once]. >> i'm telling you, this is -- >> no. no. >> how can you say that -- >> you know, i'm... [cheers and applause]. martha: bill o'reilly got into a war of words, you saw it there with the ladies of the view, whoopi goldberg and joy behar,

took their bone and went home and they were fuming because he didn't distinguish between muslims and muslim extremists and the "no-spin zone" responded this morning. >> we are fighting them in afghanistan. fighting them in iraq. we might fight them in iran. they cause trouble, they, being muslim extremists all over the world, but after ten years, i think any intelligent person knew what i was talking about in the mosque debate. martha: yours truly on the factory last night as i am every thursday with my buddy, steve doocy, and every once in a while, the quiz comes down a tie-breaker. >> tie-breaker. okay. true or false, mccallum, the last miner to emerge from the chilean situation carried a copy of my book, pinheads and patriots. >> that would be false! >> you win! >> that was a hard question.

>> doocy... >> no, but because -- doocy is walking off. >> what! >> don't worry about it. you don't care, you get as many prizes... >> leaves me holding all the cards, right? martha: that is obviously peter doocy and the joy behar role. gregg: shame on you! martha: stormed off the set and before all of that happened on "the view," bill owe riley said to joy behar, you should listen to me and you might learn something and you could tell, she was not a happy camper, after that comments and from that moment on, she was like, this close to blowing every second and it was, interesting stuff. gregg: do you think it was real or... martha: i think it was real, she was ticked off, no doubt. yeah. yeah. bill: i'll take your word for it. bill: and washington state, democratic incumbent, senator pate murray is fighting to hold on to her seat and faced dino

rossi in a televised debate last night and the rivals sparring over extending the bush tax cuts and the role of the government, was the debate a game-changer? dan springer, live in spokane, washington. dan, any winners here. >> reporter: gregg, there was no major gaffe or a knockout punch thrown by either candidate in spokane, and that could be bad news for dino rossi, who trails in the latest poll and who, some say, has to win for republicans to take control of the senate. >> changed patty murray? >> reporter: after weeks of hard-hitting attacks on the airwaves, democratic senator murray and republican challen challenger rossi, went after each other. >> jobs will be lost or not created because of the senator murray's deciding vote on this piece of legislation. >> he wants to repeal health care reform and tem it to the woman who told me, for the first time she can sleep at night,

because her daughter with cystic fibrosis won't be denied coverage for her health care. >> reporter: rossi tried to standpoint into voter anger over the economy, blasting murray for the $13 trillion national debt, and her party's spending. unlike some democrats, in tight races the senator is not distancing herself from her party's leadership. she's the fourth most powerful democrat in the senate and is making the election as local as possible. >> i work to make sure our main street businesses, like my dad's business when i was growing up have the credit they need to be able to expand. >> they need modest taxation and fair and predictable regulation and let them chase the american dream and when they are successful, you don't punish them for the success, like senator murray wants to with high tax rates. >> reporter: the polls afb all over the place and a fox news poll had rossi up by one and a "time" poll had murray up by 8 and it comes down to who is energized and comes out and mails in the ballots and to that end, the democrats are taking no

chances and are bringing out the heavy hitters and the president is coming out next week for the second time, and vice president biden for the second time, next week, and the first lady, also, going to make a stop here in washington state, gregg. gregg: dan springer live in spokane, thanks very much. martha: we are covering a developing story, right now in waxahachie, texas, and it is called the vintage bank and it is a robbery situation. there could be hostages in the bank and that is one of the biggest concerns of law enforcement, right now as they attempt to deal with the situation and put a local school, i believe we are seeing here, on lockdown because of this developing situation, nearby. and it is about 30, 40 miles, i think, you said, gregg from dallas, this location, in waxahachie and we are staying on this and if there are developments in the robbery and possible hostage situation, we'll get you back there and give you the details. gregg: he's the sunshine state's attorney general.

and, getting over the first hurdle in his big challenge to the health care law, and, he's my guest, live, after the break. martha: and one of former president bush's closest advisors, sitting down today, with president obama. who is it? stick around. ♪ [ upbeat instrumental ] [ rattling ] [ gasps ] [ rattling ] [ laughing ] [ announcer ] close enough just isn't good enough. - if your car is in an accident, - [ laughing continu ] make sure it's repaired with the right replacement parts. take the scary out of life with travelers. call or click now for an agent or quote.

martha: right now, here in "america's newsroom," president obama and vice president biden headed to delaware today to keep

the senate seat in democrats' hands, and, they will be supporting chris coons with crist type o'donnell, trailing mightily in the polls, and condoleezza rice, heading to the white house. for a private meeting today with president obama. she will be discussing foreign policy issues, we're told, with the commander-in-chief, especially, the issue of pakistan, the administration says that she happened to be in town and they invited her over. gregg: new developments in a health care battle that hits the federal government -- pits the federal government against nearly half the states in the union, a federal judge in florida ruling a lawsuit filed on behalf of 20 states, challenging the new health care law, can move forward. and this judge saying he's not convinced that a provision requiring most americans to buy insurance is constitutional. bill mccollum, florida's attorney general, joins us live, he was the first to file that lawsuit vm gener.

-- good to see you, congress has never gone this way to require people to buy goods and services but, the judge wrote the following, to say something is novel and unprecedented does not necessarily mean that it is unconstitutional and improper and there may be a first time for anything. general, what makes you think you will prevail, especially since the federal judge last week in michigan considered essentially the same argument and decided that it is constitutional? >> well, first of all, judge vinson did the opposite of what the judge in michigan did and found we have the right to be in court and found that this was and is unprecedented in the way that the federal government is going about forcing individuals to buy health insurance policies or pay a penalty. there is nothing in the enumerated powers in the constitution that give congress the right to do this. nothing is there. in fact, if you read the analysis judge vinson went through, in throwing out the

argument the federal government had on the -- hey, this is a tax, it is instead a penalty, found and, therefore, we have to deal with this as a commerce clause question and you can see why we believe we boxed this into the borne and wanted it to be, because the federal government really has a weak case the commerce clause stretches as far as this is to make people have to buy a health insurance plan. gregg: you brought up the issue of penalty versus tax and the government obviously calling it a tax. if it is a tax, doesn't congress have broad authority under the constitution to levy taxes, and, if it is a penalty, the judge said in footnote number 7 it does not make it invalid, either. >> the judge was not making a final ruling, we go to have the summary judgment hearing on the motions, in december on the 16th, and that is when he gets to the merits. he would be wrong to come to any conclusions in this particular order. what he is saying, though, is we

have a really good case, we have made a plausible case for where this is unconstitutional. and, what we see him saying is, hey, this isn't a tax and by the way, there is not that broad of power in the constitution for congress to levy taxes. this is a direct tax. there is no income tax, no excise tax, we argued that we'd win, anyway, but he said, look, congress wrote pretty clearly that this was a commerce clause issue, and now the federal government -- gregg: you know -- as you know it is up to the courts and indeed may be up to the supreme court and five years ago, the gonzales case and you probably know it by heart, the high court said noneconomic activity can be regulated by congress if, in the aggregate -- i'm quoting -- it has a substantial economic impact on interstate commerces. don't the insured, the uninsured, rather, have an impact on all of us, driving up

the economic costs of health care? >> you know, the founding fathers wrote the commerce clause in, they wrote, also, a system of government with checks and balances and never intended to give all the power to the federal government to regulate all activity, all activity. gregg: right. >> they simply didn't do that and so, yes, you are arguing the justice department's argument and they made the argument to judge vinson and will make it in every court and we, the states believe they are very, very wrong on this and the founding fathers would turn over in their graves if they thought this would prevail. gregg: they aren't here and i'm making the argument for them and you have another argument, i wa want, you argue it forces the states to pay the huge costs under the expansion of medicare and i go to page 55 of the judge's ruling and here's what he said: the current state of the law provides very little support for the plaintiffs' coerce here ion

argument. >> it provides a case he cites, this supreme court decision that says, hey there is a place in the 10th amendment the federal government cannot go beyond this point and you can coerce the states and we actually have lawsuits and supreme court decisions that say the government can't do certain coercion where they forced the states and so, the issue is, did they go beyond that -- whatever the line is in this case, and, that is a question the court -- the supreme court has to decide and we think they did and we have no out. we are told we have to pay this additional money, for medicaid and we were never asked permission and it is billions of dollars and states cannot afford it. our state alone, 26% of our budget today goes to medicaid and we cannot afford this. gregg: bill mccollum, florida attorney general, thanks so much, sir, for being with us. >> you're welcome, my pleasure, thank you. martha: we have developing news here we want to bring to your attention, at this moment, in new york city, between new york city and brooklyn the brooklyn bridge has been shut down, in

both directions. to pedestrian traffic and to car traffic because there is a suspicious package on the bridge. this report just came in, moments ago. police say that someone on that walkway saw a flashlight with copper wiring, and called 911, and pedestrian traffic as i said, is also closed here. now, the brooklyn bridge, of course is a major landmark, in the new york city area. i would also point out that the news comes as we have also reported the other story to you today, we don't know if there is any connection here, but, you know, the news the pakistani taliban wants to carry out an attack, because the times square attack failed and that is the back drop the law enforcement in new york city has to go into this with, they have to be extremely cautious when they get this kind of a report and they are being cautious and have shut down the brooklyn bridge, between brooklyn and manhattan. no traffic, no pedestrians on the bridge now, this is a developing story and we are working on getting pictures for you, from the brooklyn bridge, to see what the situation there looks like.

but, you cannot not take that kind of situation seriously, in new york city, given the background of what we have had going on here, between a number of attempts, the zazi attempt, he was coming across the george washington bridge when they got him and the times square attack. that is the situation, all we know, suspicious package on the brooklyn bridge, everything is shut down there while they investigate. we'll get you more as we get it. gregg: moving on, they've gone from average guys to superhero status in the eyes of millions of people throughout the world and now, there is new word on just how those 33 rescued miners in chile plan to reap the benefits of their new found fame, geraldo rivera on what is next for them. martha: and, is this any way to treat a corvette? that is the pacific ocean and by some woman's accounted. gregg: didn't nicholson do that. martha: "terms of endearment". >> i thought maybe had a stolen car, was going to ditch it, and,

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you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. gregg: moments ago we told you about the brooklyn bridge, shut down both directions because of a suspicious package, we have just now learned, n.y.p.d. has declared all clear. apparently, a false alarm. martha: okay, so, back to this amazing story of the week. they are national heros now, 33 chilean miners, rescued this week, adjusting, starting to, to their new lives, getting a bit of a taste in these days of the instant celebrity they will experience, and, gearing up for tv interviews, and, guest appearances, and, perhaps, some money that may be coming along with all of this, we are now hearing the men are closely guarding their stories, so they

can divide the spoils of their new stardom, which is an interesting development, geraldo rivera joins me live. >> hi, martha. martha: we are talking about what we are learning about the days that led up to the rescue and how desperate things have become down there. >> typically you get the feel-good stories first and they are united and will pool the resources and we have funny stories, about mistresses and wives and the rest of that but now, as typically happens you take another step back and probe what is the dramatic heart of the story, those 16 -- not the 69 days, it took to x-ray indicate them, it was the 16 days they laid in the deep, dark hole, you know, a quarter of a mile under the earth, not knowing, whether or not they would live or die and not knowing if anyone knew they were alive or dead and the stories that are emerging as you might expect, are in some cases inspiring, how they stayed together and shared their food,

a cup full of tuna -- >> half a bottle cap -- hard to picture tuna that small, and, you know -- >> the apportionment, right. but also the hunger that went with it and the growing desperation and even, they talk about the... you know, i'm sure it will be explored in greater detail, the days going forward, dark jokes about cannibalism and remembering... martha: dark joke only... >> you look at your fellow mate's arm and wonder how that would taste, because you are hungry and remembering what happened with the uruguayan rugby team in the and dean mountains where cannibalism was resorted to and it will be the sensational headline tomorrow. martha: you wonder what helped them turn the corner was the tapping, when they realized someone knew they were there. >> on the 17th day, it turned the tide and apparently allowed them to organize in a way that gave them a system of living down there, a hierarchy. >> it did, but imagine that moment, imagine the moment when

there you are in your dark cavern, the size of a studio apartment and you have the tension between the various personalities and you hear the drill and it pierces the roof of the cavern and, we know, we were on top, the euphoria the world felt when the note was received, we are all, 33, alive and that was likes a eureka or a happy new year's kind of moment. and, you know, the stories that emerge now, with the offers to go to graceland, to the elvis ranch and the greek islands, i mean, these stories will be amazing going forward. martha: i love the first lady of chile said, we pulled them from the cemetery alive. and that is an extraordinary image to me and what a great story it is. >> the first family, the pineras, the newly elected president staked his entire political life on those 33

coming out alive. martha: and he said in the early days i believe they are down there and alive and made sure they proceeded every way they could. >> i covered the mine in pennsylvania and cue creek, and west virginia, a tragic ending and a lot better to have a happy ending. martha: and, we have launched the fantastic web site, we celebrated the opening oup, fox news latino, you are happy about this. >> with latinos in the u.s., the dream graphic tsunami that hit the new census, 2010 census indicates, the largest ethnic group in the country now, and, you know, almost 50 million strong, and, now, the vast majority of those speaking english and now we that he have web site, addressing that important new market and, that community, in the place where people who care about this community, and... everybody should check it out, foz foxnewslatino.com and it works in tandem with our fox news

outlets on the web. great stuff and congratulations. >> thank you, thank you very much. martha: good to see you always, geraldo. >> my neighbor. martha: yes, we are neighbors. gregg: they were supposed to work on controlling their anger, apparently, it is a long process and you will not believe how this woman got wounds like these. >> it was dark in the class, the lights had been turned off, and she was sitting behind me, and so i didn't know she got up, all of a sudden she came and walked around and got in front of me. (announcer) energy security.

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martha: a stabbing in of all places an anger management class? look at the victim's shoulder wounds. ouch! he was stabbed four times. it happened at a community college in washington.

the victim, goes by the name of luna and she got into a fight over a video that was being shown in the class. >> at first i thought she was lunging to punch her, to hit my, and, then after the second time, she came forward, i felt the knife go in. martha: my gosh, the woman is facing charges. who did this, luna is demanding better security at these types of classes. a good idea. gregg: we have talked to analyst, experts and former candidates about this current election season and now we wanted to hear from you, american voters, traveling to plymouth, massachusetts. flagstaff, arizona, and malibu, california, and we have been asking folks, how they feel about the recession, buying american and what washington can do to regain your trust. it is part of our series, "listening to america" and william lajeunesse in los angeles. william? >> reporter: gregg, what americans said over the last

four weeks in 12 cities is, end the paralysis in the -- and the partisanship and while voters may not trust washington now, they are not giving up on it, either. >> president barack obama: we may be seeing the beginning of the end of the recession. >> reporter: whether he said it last year or last month. >> president barack obama: we have to keep do you agree everything we can to accelerate the recovery. >> reporter:... voters at the diner... >> i don't think it is getting any better. >> reporter: this beach. >> i don't think it is it'sing any better. >> reporter: and the city. >> i'm getting rid of my second car. >> don't feel the recession is over. >> i don't have cable any more and no longer have a land line. i don't drive my car, i'm walking home for lunch. >> i cankaecan't hardly afford anything but go to the beach. >> i'm from kingman and there is no work there. >> we are struggling. >> reporter: some diners trust washington but others don't. >> barack obama, i don't trust

anybody, but he's a really, really good public speaker, he's phenomenal. >> stop spending and stop sending jobs overseas. >> we're in trouble. >> reporter: and many thousands of people on welfare. >> you have to have limits on social welfare programs. so that people don't get used to them. >> reporter: others say it is time to put america first. >> would you pay more for an american product. >> yes. >> i will buy a raft made in idaho and it is double the price of the outsourced ones. >> it is important to buy american. >> i drive a ford. absolutely. >> reporter: the biggest take away, they are not skeptical, but don't believe anything these politicians say, politician face an uphill battle until the conditions improve. bill: william lajeunesse, thanks. martha: a smack down inside the magic kingdom, why a bus driver and a tired dad with a baby got

down and dirty at disney world and thanks to the internet, it is a small world, after all. but what if therwere a different sry? of one financial company that grew stronger through the crisis. when me lost their way, this company led the way. by protecting clies and turning uncertainty into confidence. what if that story were true? it is. ♪

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martha: we see a lot of car chases in this country. check this out from brazil. watch this folks. the suspect broke out of bringings in brazil, the driver hits nine cars. look at that. jon: oh -- bret: oh. martha: there were injuries, three injuries including the driver. bret: in the end he gets jammed right here an didn't get away witness. they never get away witness. martha: they never get away witness. he broke out of prison and was trying to get away. if we spoke portuguese we could tell you what they