>>megyn: the sweet taste of victory. enough to make any politician giddy. colorado democrat, look at him, doing cart wheels across the stage last night. after he won a dead heat re-election bid for congress over republican. cart wheels. would has the energy? >>shepard: the news begins anew. on "studio b." ballots are in but it ain't over. where it could take weeks for officials to declare winners coming up. if box two, new details on the cargo plane bomb plot. what intelligence officials are saying. about the bomb somebody tried to send to america. fascinating new details. box three, president george w. bush about to release his book touching on everything from the failure to find weapons of mass destruction in iraq to dick

cheney to kanye west. all ahead unless breaking news changes everything. on "studio b." it's the afternoon after the night before. 3:00 on "studio b" in new york with presidential reflecting on policies, the election, vote are frustration, and all the rest from last night. this is a data-driven map showing which way individual districts voted last night. would you look at that red? in other words, whether certain areas went red or blue. as you could see a moment ago, there is a lot of red up there. and here's the new balance of power in the house of representatives. the g.o.p. now control, in control, firmly, 239 seats compared to 185 for the democrat. some race are up in the air. in the senate the democrats are control by a smaller margin, the party has 49 seats and plus two independent whose caucus with them and republicans have 46

seats with three to be decided. john boehner is predicted to be the new majority leader. there was talk of compromise from each, and the president, it is clear that both see washington differently today. >> yesterday, also told us that no one party will be able to dictate where we go from here. we must find common ground in order to set, in order to make progress on some uncommonly difficult challenges. >> the new majority in congress will be the voice of the american people and i think we clearly expressed that last night. we will continue and renew ourests for a smaller, less costly and more accountable government in washington. >> what now? can they all get along? we have coverage with more on what's next in congress. and steve following the impacts of the tea parties, and first, mike live at the white house with the third question from the

president today. mike you asked him about the signature issue of his first two years. republicans running on repealing it. >>reporter: right we saw many times on the trail, republican candidates using it against democrats who voted for health care. the president says if republicans have ideas on how to improve the health care law, he's open to their suggestions. i asked him, a lot of the exit polls suggest one out of two voters want it repealed by congress or just eliminated and here is what he said. >> one out of two voters think it was the right thing to do. and obviously this is an issue that has been contentious. but as i said what will be useful is for us to go through the issues that republicans have issues on. >> the president signaled a willingness to work with republicans and area of compromise if they think they can improve health care but he

does not want a repeal. >>shepard: did you feel a different tone to the news conference, i certainly did. >>reporter: absolutely. he is criticized by a lot of supporters for being too cool, like spoke, if you -- like spock, if you will, and he lofted all those who lost jobs as public servants you got a science he took it hard. for example, the freshman congressman from virginia, a guy who was a loyal guy to the president and his agenda, lost his job and the president seemed to be pretty bummed out about the public servants running away. >>shepard: but a fan of slurpies. i love that. he is not so in the bubble he forgot slurpies. mike, thank you. coming up we will talk about the election results. and what it means for the white house with our fox news contributor ahead.

the president and the house speaker, the republican john boehner, both say they want to work together on a number of issues for the american people but today leader boehner made it perfectly clear republicans and democrats will not be working together on everything. >> i believe the health care bill enacted by the current congress will kill jobs in america, ruin the best health care system in the world. and bankrupt our country. that means we have to do everything we can to try to repeal this bill and replace it with common sense reforms to bring down the cost of health insurance. >>shepard: everything they can do is not enough. last night he held back tears, sort of held them back, some flowed, as he addressed the news g.o.p. took control of the house. and now a recap for us on capitol hill. james? >>reporter: good afternoon. the new g.o.p. minority says the two priors are create jobs and reduce the size of the federal

government. but they will face a housekeeping chore first. the package of rules by which the whole house will operate and on which all members of the house will vote. fiscal hawks will watch closely to see if the rules contain a ban on earmarks and not just a moratorium. and there is health care that accounts for a sixth of the economy and it is common more boehner was explicit, and a high ranking g.o.p. congressman said the republicans will schedule an up-or-down vote on a full repeal of the health care law as my source put it "to see if the president heard the voice of the people," but a veto is expected and the action will shift to the regulatory structure, the agencies and the funding streams and to that point the house appropriations committee will be a key focal point, with a battle shaping up for the chairmanship with country ranking member lewis of california squaring off against rogers of kentucky would

claims he has 19 of the 33 votes he needs to win the chairmanship but in the end the factor is the next speaker of the house. >> he wants to make sure the agenda he wants will be effectuated by the committee chairmans and he will have a lot of power. we hear he is trying to make sure they have the right staff. they have the right people working for the chairs. so they can actually get the republican agenda through. >> in the remarks this morning, boehner said he could work with president obama and he sees no problem with the republicans working with the new tea party incumbents to come, and it will be interesting to see if he gets more trouble from the president of the united states or from the tea party republicans. i am sometimes accused of being too much like spock. >>shepard: tea party movement play add major role with

favorites scoring key wins and now the question is: how will the newly elected members of the tea party impact the g.o.p. establishment? will they caucus separately? and now to washington, dc from the newsroom. i heard rand paul saying we will caucus separately and i wondered, well, what does that mean? >>reporter: i don't know how that works. the tea party activists met today in washington, dc and held a news conference and said last night's vote was historic. and brings new blood and new energy to washington. the tea party positioned themself to hold considerable influence after the impressive wins including rand paul's victory in kentucky by 12 percent helping the g.o.p. gain ground in the senate and in florida tea party favorite mark rubio sweeping to victory in a three-way senate race. the tea party patriots are encouraged. >> yesterday we witnessed something historic.

we witnessed a sea change in the american government, a peaceful sea change and our founding fathers were brilliant and set up a constitution that allowed us to conduct a peaceful revolution every two years. >> the tea party says this repudiates president obama's policies. >> there were some notable defeats for the tea party last night. what to they say about the future? >>reporter: it indicates there is a divide teen the tea party and the republican establishment as we were talking about. the most striking example is in delaware where some point to christine o'donnell's defeat and say the tea party hurt the g.o.p.'s chance to gain even more seats in the senate. another defeat was senate majority leader reid was able to hang on in the nevada race against republican sharron angle and john boehner's first congratulations phone call was to tea party leaders telling them i will never let you down. >> on capitol hill great to see

you. a lot of lessons to be learned especially in the white house. juan williams gives us his take. and another shooti military installation. that makes five in a few weeks. [ male announcer ] this is steven, a busy man. his day starts with his arthritis pain. that's breakfast with two pills. the morning is over, it's time for two more pills. the day marches on, back to more pills.

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affecting him. he was bummed out. and on a personal level, as well. in a revealing news conference today, the president took personal responsibility for the frustration many americans feel particularly about our economy and jobs and talked about the loss of so many democratic lawmakers. listen. >> there is not only sadness about seeing them go but there is a lot of questioning on my part in terms of, could i have done something differently or done something more so they would still be here. it's hard. and i take responsibility for it in a lot of ways. >>shepard: the president made it clear he will move forward by pushing the agenda will not be so easy. and now from washington, fox news contributor juan williams. it's wednesday, so wednesday's with juan. give us a take from the president's perspective. >>reporter: if you are inside the white house this afternoon and actually preparing him to

come before the press corps today, what you focus on is the idea we do not want to lose touch with the independents, some are talking about needing to shore up the democratic base. that is what he did during the campaign. here and now you are looking at the independent voters who swung to republicans and specifically, women voters. so when he came out today he wanted to address the kitchen table type issues and he wanted to seem if he was amenable to working on bipartisanship, something that independents hold him responsible for failing to do, something he promised to do during the campaign, and something they see little evidence of. what you heard from him during the press conference today, if the republicans have ideas, i'm willing to listen. and especially on two issues that were key in terms of the exit polls: producing more jobs and dealing with the deficit. >> he talked about cap and trade and there was a matter of taxes,

the bush tax cuts. it sounded like the middle-class will continue to, sounded look he wanted to stay the course but was willing to talk about it. >>reporter: for people who want to see him eat humble pie they may have been disappointed because while he seemed chagrined or bummed out over the loss and he felt bad, i don't think you saw evidence of a man who said he is changing course. to the contrary, in talking about those politicians who were defeating, he said these guys understood they were doing the right thing and they were going to be vindicated by history. in some cases they were bucking him up and saying it is okay, they had no regrets taking the controversial votes. >>shepard: he talked about reflecting on the results. >> as i reflect on the results of the election it underscores

for me that i have to do a better job just like everyone else in washington does. the last two years we have made progress. but clearly too many americans have not felt that progress. and they told us that yesterday. as president, i take responsibility for that. yesterday also told us that no one party will be able to dictate where we go from here. we must find common ground in order to set, in order to make progress on uncommonly difficult challenges. >>shepard: you wonder where they can do that. where do you start? where will common ground begin? >>reporter: for both republicans and democrats, the specific democrats under president obama's leadership, the jobs are the number one ticket item and the deficit is number two. so you are going to see things, for example, talk about bush tax cuts, he was willing to negotiate, so you will see something happen in the lame

duck session. number two, when you hear him talk about deficit reduction they have this deficit reduction group coming out in december, and i think he will say to republicans if you are serious about deficit reduction and holding down the size of government, government spending, look at some of the entitlement programs and you are getting into tricky, dangerous territory, social security, medicare spending and the like. so, are republicans going to be willing to play ball? he said if republicans put up a wall of opposition nothing will get done and you can bet he will vilify them as we head toward the 2012 saying that is why washington is a do nothing town. >>shepard: you talk about entitlements: if you are an elected member of congress and you talk about cutting out social security or medicare, old people vote and you are done. how do you get that done? that seems talk and nothing else. >>reporter: but the shape of the deal that is coming as we can see it now, you grandfather

in people who already are over 65 or over 62 and say you get everything you have been expecting. but, soon, well raise the retirement age or we will increase the amount of taxes paid to people in terms of payroll taxes that cover social security and you do other steps to minimize the amount of cost of social security incurring for the federal budget so that is the way they will try to get hold of it, simply saying the people who are right now recipients, those senior voters who are strongly opposed to any reduction of benefits, you are okay and we are talking about future generations. >>shepard: a whole new world, isn't it? new information about the apparent terror plot including new arrests today. and where they were mailing those bombs in the mail, remember that? brand new significance there and

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>>shepard: a school bus full of students flipped on its side in delaware and injured dozens of high school students. according to police there are guardrail was blocking the real door exit and they say the students escaped through the emergency hatch on the roof. we are told the driver's speed and taking a corner too rough may have been the cause of the crash. the f.b.i. reports the shooting at a coast guard recruiting station in virginia is, in fact, linked to four other shootings last month. according to vest fairs someone shot a gun at a suburban washington, dc office and it struck a window. no one was hurt.

in the past few weeks police have responded to similar incidents at the pentagon, a marine corps recruiting station and a couple of times at the national museum of the marine corps. the feds have not identified a suspect or revealed the type of weapon used in the crimes. and new reports indicate whoever designed the explosives intended them to detonate over american soil but they could not have known exactly where the bombs would go off because they had no definite way to track them. as we recorded officials intercept two packages containing explosive substances inside printer cartridges and the timers were following tracking routes like you can on your i phone to track a package and that is how they were tracking their bombs. our national correspondent is in washington. quite something. and now with know where they mailed them.

>> both printer bombs were sent to historical figures dead for hundreds of years, persecuted muslims. fox is first to report a senior official believes both bombs including being linked to an alarm and there were modifications to the cell phones to reduce the power drain on the battery. the investigation is ongoing but it means that these could go off without any phone service. sources also say they were meant to blow up in or over the united states. and separately, the unindictments were unsealed in san diego and missouri and we have confirmed this is a transfer point cited in the missouri indictment, san diego's neighborhood known as little mogadishu and both cases are

connected to a somali militant who used americans to raise money. and increasingly what we are seeing is the somali group has been working with al qaeda in yemen and this is the group u.s. officials believe was most likely behind the printer bombs last week. >>shepard: thank you from washington. back to the mid-term elections, folks in colorado could prepare for a recount. the senate race is still undecided but today the democratic senator bennet declared victory. on facebook. and held a news conference. and as it stands the democrat bennet leads the tea party challenger slightly. out of 1.6 million ballots cast, there are only a few thousand votes between them so it is neck and neck and under colorado law if a candidate wins by less than half a percentage point the whole thing goes into overtime.

and now to denver. you have a mess on your hands. >>reporter: a huge mess. as you noted, michael bennet declared victory but it has happened backward. before you declare victory, the associated press calls the race. that hasn't happened. fox hasn't declared him a winner and buck has not could concedede race. and he says he is not going to. you are watching video of bennet's press conference and he did not talk about the numbers, and they are very, very, very close, about 15,000 votes right now and that margin shrinks to 7,500 we go into overtime, mandatory recount, both sides have a lot of money on hand for this recount and on monday the denver post had a headline in the paper saying "recount loops large," and both sides are ready to rumble. recoups can be fun and go a long

time. >> and this could still be challenged. i am sure the lawyers are lining up like at space mountain at disney. >> they started yesterday. there was a lawsuit about this because they ran out of provisional ballots and a judge ordered them to photo copy ballots. and in a republican county, there were voting problems, and people were voting two hours after the polls were closed. and interesting to note, as we watched the results last night and this morning, the associated press was getting the numbers wrong for a long time so everyone's thinking has been off. this could go a long time. >>shepard: thank you from colorado. the colorado senate race is among a number of contests still up in the air including the alaska senate race between joe miller and the write in republican challenger, lisa

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the most common side effects are liver problems, nausea, gout flares, joint pain, and rash. [ male announcer ] if you have gout, ask youroctor about uloric. >>shepard: the bottom of the hour and time for the top of the

news. three key senate races undecided. in alaska, legal battles could be shaping up for the republican incumbent, yes, the write in candidate, lisa murkowski and the tea party favorite, joe miller. and day two of vote counting in washington state. the race between the incumbents democrat murray and the republican rossi, still, too close to call. in colorado, the democrat michael bennet and the republican buck, neck and neck and looking toward a recount. and now our senior judicial analyst the host of "freedom watch." lawyers line up here. >>reporter: the official process is not one of involving lawyers but it can lead there as bush versus gore did over florida and coleman versus franken in minnesota. we start out with a simple examination of the ballots. in a write in every single

ballot has to be looked at by happened, by three people: one from each of the two camps, murkowski representative, a miller representative and someone from the state. when they agree, this clearly is a vote for murkowski, or clearly is not, they can dispose of it. weapon they cannot agree, if it says "lisa m.," or something similar, what did they do? the law says the name must be expected correctly. >>shepard: but they agrees something similar would do it. >>reporter: the court says if the voter is intending to vote fore her but does not know how to spell her name that is not a reason to toss out but if it comes out something like murkowski but isn't, that is when the judge has to decide. >>shepard: and in colorado the

local paper state bennet was the winner. >>reporter: the recounts do not happen if someone gives up the ghost, as al gore logical did in november of 2000 then the other person takes over, and maybe that is an attempt to intimidate the other side into giving up the ghost. >>shepard: or put pressure on. >>reporter: but, look, this issue in alaska probably will result in a trial before a judge which is a judge is looking at pieces of paper are people have botched her name and the judge has to decide, not knowing who the person is, what did this person mean? >>shepard: maybe we should let canada deal with that. >>reporter: how about russia, that's not too far. >>shepard: well you can see it from there. judge, so you think this stuff will settle itself out?

>>reporter: it will if the numbers are vast. if the numbers are close we will see a jury trial or a judge trial before january when the new senate is sworn in. we will cough it. >>shepard: the ink is barely dry and some candidates are turning their attention to 2012.

>>shepard: you are looping live in san francisco, california, they are celebrating the election results. they are actually celebrating the giants world series victory. sorry. they were wearing red, so, would knew? they are the champs, it appears on the streetcar. there is a like picture. they are fans of the san francisco team. and they are having a high old time. the giants just, well, the

rangers had a great season but they humiliated the yankees, to doubt. but we learned about the people in san francisco, they are partying in san francisco and they should. they have something to sell -- celebrate. >> republican candidates have added additional nine governorships. four still undecided. the wins will play an enormous role in the next election, in 2012. the census bureau will release the population numbers next month and according to one election consulting firm, 18 states are expected to gain or lose house seats and add to that the power of swing states to help shape presidential elections and suddenly the gubernatorial wins are a lot more important. and our chief political correspondent knows this all too

well. >>reporter: for the first time in decades california is not going to get additional seats in the redistribution. and from last night, there are three key races for governor that have profound implications for not, rather, 2012. specifically, talking about ohio. john kasich, the republican, unseated strickland and ohio is the battleground bell weather state that has never been wrong in the last half century as goes ohio so picks the country for president. in 2004 it was ohio that put george w. bush back into the presidency. it was decisive. pennsylvania, another key battleground state has tenned to be blue for a long, long time and helped democrats. it will now have a republican governor. that is a big, big gain for the hopes of republics trying to

oust president obama in two years. and now, florida, the sink and scott battle is a huge gain for republicans. in 2000, florida, dangling chads and this is the sunshine state, a republican governor, that is a very, very big deal for the g.o.p. the other thing we want to look at, what is happening with the u.s. senate. we are still waiting and waiting. and waiting. washington, alaska, colorado, mike bennet has claimed victory although the associated presentation has not called it. washington and alaska, those seats are not all resolved. several more days but it will not change the outcomes, republicans will fall short. >>shepard: and the lt. governor of alaska says the write in vote count will start on wednesday.

i guess today is the first day of the 2012 election season, right? >>reporter: it sure is. last night we heard something from one of the runners up, a nice way to say losers, russ feingold was defeated by ron johnson and in the closing remarks he said now, on to 2012, forward. it has been speculated feingold has objections to the obama administration's agenda investigate against a lot of it and got in the president's face and now it raises the question, and he is not discouraging speculation he might run against the president from his left or at least flirt with presidential competition for president obama in 2012. coupled with another democrat would retired, the senator from indiana, bayh, long considered on the short list of vice presidential running mates for a host of democratic candidates in recent years and he sim self toyed with running and bowed out in wait 28 the race that

president obama won, and a lot of his early staffers when he decided not to run, went to work for the senator from illinois and are now working in the white house, and bayh could join and will be involved in outside independent leading moderate organizations to amplify that and on the republican side, mike pence from the house of representatives republican leadership is resigning and the whispered justification is that he is now looking seriously to presidential run and needs to spend more time in iowa and south carolina. tomorrow, in my home state of new hampshire, the home of the first primary which is one word, there is a presidential hopefuls breakfast called "politics and eggs," two days after the midterm and the first would be white house republic hopeful will be santorum speaking at the politics and eggs broke fast tomorrow morning. it's on in a big way. >>shepard: politics is like hockey, you get the stanley cup

and you start playing. all over again. thank you very much. a former nfl player supported the local tea party and is now headed to washington.od source of vitamins, fiber, or minerals. and who brings you more natural colors than campbell's condensed soups? campbell's.® it's amazing what soup can do.™

[ but aleve can last 12 hours. tylenol 8 hour lasts 8 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. >>shepard: after runs against establishment politicians the tea party movement showed it is a force in washington, dc. 31 tea party-backed candidates have won their contests and several are still locked in undecided races. but it remains to be seen how the message translatessed into progress in washington. movement organizer, and it is a number of different movements have expressed resistance to

compromise including smaller government, fewer taxes and rand paul of kentucky has said they will create a tea party caucus to challenge both parties. and now, congressman elect offensive lineman for the philadelphia eagles and the local tea party backed him in the new jersey third district race. congressman, how does that stand? >>guest: difficult to wrap your arms around. >>shepard: you want to cut spending, and cut taxes, where ? what do you cut? >>guest: i think ultimately what we are seeing happen right now, what are we going to do with the country tax rates which is not in my hands but with the 111th congress so we will see what they do. so, in this economy, raising taxes on anyone is not exoang to help us.

spending is a huge part. we big a deeper and deeper hole and it comes down to budget. you cannot spend money you don't have and going down that road is affecting our children and our grandchild's future. >>shepard: most of the money goes to intimes, social security and medicare, which are you going to cut and how? >>guest: we will not cut either one. >>shepard: wait, wait, wait, if you don't cut social security or cut medicare in some way you cannot make up the deficit. the numbers don't add up and the numbers are not possible. >>guest: there are plenty of other things to look at. >>shepard: it can't be done. >>guest: when you get your budget back home you have a list of priorities and social security and medicare has to be at the top and a lot of things on the bottom we need to look at especially if hard times because those are a lot of promises we made and we have to fulfill.

>>shepard: if you are cutting taxes you have to cut the big spending and if you cut the taxes and do not cut the spending it goes downhill and that is why all the rhetoric sounds great, who is not going to agree you cannot spend money you don't have every fool knows when you are maxed out on the credit card, that is it but you have to do real cuts and no one wants to tack about specifics because everyone just got elected. >>guest: also, as you dig through this, what frustrates me and why i got involved in the process you see people talking talking about waste and fraud, if you went through every department of the government, how many billions of dollars would be there and, also, all the money we spent on frivolous research projects and that type of stuff. >>shepard: like what? >>guest: indoor rain forest in iowa, studying mating of frowt

-- of fruit flies. >>shepard: congressman, baby boomers are coming up and they have to get their social security and they are going to have to have their medicare and we don't have the money. if you don't raise the retirement age or cut the expenditures this problem will not be solved and that is a challenge i don't want. i wish you the best of luck fixing it because we need it fixed. >>guest: we do and it is not going to be an easy list and it will be a lot of digging through deep, deep numbers that a lot of people don't want to admit but i have approached it we made them promises with have to do everything we can to uphold them. >>shepard: i wish you the best, congratulations and we will see you in washington. >>guest: thank you very much. >>shepard: the country president doles with a big loss the previous president looks back at his time in office. president george w. bush on his administration and what he says he almost did with dick cheney.

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>>shepard: they celebrate in san francisco with the giants but the kids could find fast food less happy after they have a ban on restaurants offering free toys on meals in december of 2011, bans on toys in meals. if the food and drink combined have more than 600 calories. a sponsor is moving forward with an agenda of food justice. mcdonald's spokesman says we

are disappointed with the decision, and it is not what our cuss tomorrows want or something they asked for. president george w. bush left the white house two years ago and soon he will release a book details the biggest moments as commander in chief. reports say that the former president still struggles with the fact there were no weapons of mass destruction in iraq. he wrote and i quote, "no one was more shocked or angry than i was when we didn't find the weapons. i had a sickening feeling when i thought about it. i still do." trace has the news. trace, former president bush had surprising comments about former vice president dick cheney. >>trace: he said back in 2003 dick cheney volunteered to step down so bush could choose a new running mate for 2004 and bush said he considered the idea because and i quote, "while

cheney helped with important parts of the base he had become a lightening rod for criticism from the media and the left." the president, the former president then added "he was seen as dark and heartless, the darth vader of the administration." bush says he considered then senate majority leader frist for his running mate back in 2004. briefly. >>shepard: president bush admitted he made mistake after hurricane katrina. >>trace: in the aftermath a big mistake was flying over in air force one and he should not have done that and he said the official mistake was failing to communicate his concern for storm victims which, of course, led to accusations that the president was racist and he goes on to say and i quote, "it was the worst moment of my presidency, i feel the very same way today." by the way, that book comes out on tuesday. >>shepard: the victory speech

for successful politician can become an art form but rarely do they come long with cart wheels. who did the cart wheel? are you receiving a payout from a legal settlement

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supporters after defeating the republican. very impressive. in a swing district. and then there is this before we turn off the lights, an 18-month-old baby boy fell out of an 8th floor window in paris. survived. because of an awning he bounced and the man who caught the baby boy as he fell. police say the baby is just fine. the parents went for a walk and left the baby with the three-year-old sister in charge. that was an error. that's it. and now the big board. it was down. and i don't know if it was related i know they decided to, the fed decided to buy pack more treasuries