>> steve: look at that. >> brian: she sounds a little like newt gingrich. we got to book her! >> steve: okay. >> gretchen: specifically you'll like it if she comes in that swim suit. >> brian: i join her positions on things. >> steve: absolutely. >> gretchen: excuse me? >> steve: join us tomorrow, same time, same channel. in the meantime, off we go to america's news room. 9 percent unemployment nationwide. 16 percent underemployed. states unable to pay the bills. now the white house says it wants to step in and help, and critics are already dropping the b word! martha: hmm! bill: i don't think they're saying b as in bill! good morning, everybody, i'm bill hemmer. martha: did you call me the b word? bill: no, i did not, actually! >> martha: i'm martha maccallum, good morning on this tuesday, we're glad to have bill back from the super bowl weekend, good to have you here. the obama administration says it wants to lend a helping hand to states

crushed by debt, proposing just a short term relief, a little jobless aid sprinkled in there. bill: b doesn't mean what it stands for. martha: bailout, baby! bill: stuart leads our coverage. bailout, what do you call t. stuart? >> some are calling it a mini back door bailout, that is a fact. here's what happened. the states have to borrow money from the feds to pay jobless benefits. states' jobless benefits. that money should be repaid this year and next year. in order to give the states a little helping hand financially, there's a moratorium on the repayment of that debt. so the states don't have to pay back the feds for the money they have borrowed in the past couple of years to pay state jobless benefits. that is financial help going to the states. some will call it a mini bailout. some will say no, no, no, it's just help for the states, so they can maintain jobs. either way, it's financial help, going from the feds to the states.

that's what's happening. bill: does this have to go through congress? >> yes. bill: and if it does, what's the chance that thing gets through the house? >> it's tucked into the budget. we have to have a new budget by march fourth, we're 3 1/2 weeks away, we've got to have a new budget by then. this measure, this help for the states, is tucked into the budget. so you're going to see the mother of all financial battles over the next four weeks, because we've got help for the states financially, we've got a new budget that we've got to have and also just looming over the horizon is the debt ceiling, raising it or not. bill: debt ceiling, you've got to make a decision on that before the first week of march. you say battles for four weeks. >> oh yes. it's going to sweep a lot of other news on to the sidelines because this is a huge battle about money, how much are we going to spend, how much are we going to cut spending, how much are we going to tax, where is it going to be spent. it's all about money for the next four weeks. bill: let's have it out, then, huh?

>> yeah, you've got to. you've got no choice. you've got to have a budget and the states are insolvent, they need this help. are they going to get it tucked inside the budget. bill: you know who is getting a lot of talks, proposing cuts, one is rand paul out of kentucky. he's our guest in a few moments. we'll see you on fbn. >> yes you will. bill: right now the white house says it's working on new ways to create jobs. so with that he'd week -- we'd like to hear from you, what do you think is the best way to create a jobs? log ton foxnews.com, answer our you decide question, share your thoughts, answer our question and leave a comment. we'll bring you results later in the show. it is job number one, how do you create jobs in america. martha: and states not waiting for help from uncle sam, unveiling big plans to cut taxes and to slash spending. florida's republican governor, rick scott, unveiling a sweeping new budget proposal to tea party supporters in his state yesterday. listen to this: >> we can't afford a government that runs wild with taxes, regulation,

excessive spending, or lawsuits, frivolous lawsuits. to those who suggest we meet these new unsustainable expectations with higher taxes, i want to send a clear signal. that is not the answer. we will not increase taxes in florida. >> interesting. martha: all right, some fellow republicans in the state capitol are cool to that plan, saying they don't see how the state can afford tax cuts in a state. where this battle shapes up from there. bill: watch those governors across the country with their proposals on the table. meanwhile it's not just the government borrowing money. brand new numbers show that more americans are whipping out the plastic. that could be a sign that our consumers are feeling more confident in the economy or it might be that they just don't have the cash to spend. either way, the nation's credit card debt, rising for the first time since 2008. the federal reserve, reporting a $6.1 billion rise in december, nearly triple what economists had thought. total outstanding debt now

at $2.4 trillion. martha: and here we go with the weather again, folks, bitterly cold now is the big story, and that air is sweeping across parts of the country at this hour, as more snow coats areas that are still trying to thaw out from the last major storm. we're getting a little thaw here where we are. maria molina is tracking all of this from the fox weather center. good morning! >> good morning. more cold headed our way in the northeast. currently, the core of the cold is concentrated across the upper midwest. actually, the current temperatures are way below zero. rapid city, then you factor in the wind and it feels even colder, feels like 25 below zero in minneapolis. really bundle up if you are headed outdoors. also feels like below zero in chicago. this cold air is going to be heading eastward in parts of the interior northeast as we head into later today, tonight and also tomorrow. high temperatures tomorrow, in new york city, will make it up to 31.

check out leaf clawnd right to the west, 18 degrees will be your high. so very cool air. we also have a storm system and this is the reason why we're going to see that cold air being pulled in behind it, currently a mix along the coastal areas, like cape cod, even in boston, also, across parts of connecticut, and then we have our next big storm system that will be bringing up to a foot of snow possible in areas like kansas and also oklahoma, martha. martha: not new york city? >> we're not going to get a noreaster. martha: thank you very much, maria molina in the weather center. bill: a long winter. south of the border, the mexican town of ciudad jaurez across the border in texas, you can see this play out here, here's el paso, particulars, heavily populated, the border area comes just below it and ciudad jaurez is one of the most dangerous cities in the world now, located south of the border. this is our understanding about what happened. two teenage boys, two u.s.

sit cents, in fact, found dead in a blood bath. they had been looking at cars at a dealership when they were killed. one of the teens, found inside of a jeep cherokee, the other two in a courtyard. at least 60 bullet cases littered the scene. two of the boys attended cathedral high school, an all christian school across the border in el paso. >> i think you always want to be as honest as possible and address this head on. you know, i can't imagine that there's a single family on either side of the border who has not been affected by the violence. >> we always think that bad things only happen to bad guys, but no, i mean, it's right there on the street. bill: in total, three teenagers dead, ages 16 and 17, the principal, brother nick gonzalez, saying his students have had a number of relatives killed in the violence in war he did. a graduate of cathedral high school was killed there just

last fall. martha: all right. let's take a look at tahrir square, where we are looking at the latest scenes as people are filing into that square, which has been the scene of the thousands of protestors who have been pushing for change, as they get there today to continue this mission. now, what's going on in egypt right now is that the embattled president, hosni mubarek, is setting up a committee to discuss and recommend constitutional changes and those kind of reforms are some of the things these people have been protesting for. it was relaxed eligibility rules for people who can run for president, limit the number of presidential terms, which is a big step for a man who's been in power for now 30 years, or nearly 30 years. so we will see if the people of cairo and the people of egypt start to get enough satisfaction on some of these moves to help them feel convinced that change is actually coming. we're going to continue to watch that very closely. bill: nine minutes past the hour now. when armed robbers try to strike it is granny to the

rescue. check out the fight this elderly woman put up, sending the thieves running for cover. go get 'em! we'll show you how it ended up in minutes. martha: plus this story, did a u.s. ally help free the lockerby -- lockerbie bomber? a stunning new take on what really went down in his release. real be -- we'll be right back. >> we have worked to give the american people a smaller, less bureaucratic government in washington. and we have to give the american people one that lives within its means. the era of big government is over. bill: the same message, 15 years later, and this senator, rand paul, says he's listening to the american people, he's on deck with his plan to cut $500 billion in federal spending now. how he plans to do it, in only three minutes.

martha: we've got fresh new details from a british investigation that revealed the united kingdom did,

quote, all it could to help free the lockerbie bomber al megrahi, he claimed he only had month toss live from prostate cancer. he is back home in libya. one scottish lawmaker says that everyone involved in this are bur hypocrites. >> for this government, they made that decision in good faith, and the appalling question as to the labour party is the extraordinary hypocrisy, and the prime minister was totally failing, that was a position of extraordinary hypocrisy. martha: 270 people died in the 1988 pan am bombing over scotland, most were americans. we're going to talk to a woman who lost a family member in that bombing. we'll see what she has to say about the fact that great britain did everything

they could. bill: newly elected republican senator, rand paul, from kentucky is mounting a full all out attack on spending in washington, proposing the following, $500 billion in cuts in federal programs this year. he says why wait. senator rand paul is my guest from the 4eu8. good morning to you senator. >> good morning, bill. bill: you're making a lot of headlines here. part of your proposal, education, # on billion dollars in cuts. agriculture, $42 billion. transportation, $42 billion. energy and housing and urban development, both at $50 billion. give me a sense of your thinking. why these programs, senator? >> well, the interesting thick is, we proposed $500 billion -- thing is, we proposed $500 billion in cuts, that's only one third of one year's decifit. that's how enormous this problem is. many here in official washington think $500 billion is too dramatic. when i go to a tea party, they say what about the other trillion dollars you're spending that you don't have? the american people are

ready for spending cuts. i just don't think washington has quite gotten the message fully. but we have to do something about it. if we do what the president proposes, which is freeze a small segment of the budget at 2010 levels, we'll add nearly $4 trillion to the debt in the next five years. it's unsustainable. and we have to do something serious about it. bill: why do you think washington doesn't get it? what gives you that impression? >> well, because, you know, the republican alternative to president obama's freeze is to freeze that small segment at 2008 levels, but the republican's proposal will add $3 trillion of debt over the next five years. it's not enough. you have to be more bold. we need more bold leadership here, because if we don't, my fear is that we're going to face a debt crisis in the next few years. bill: we may face a debt crisis over the next 3 1/2 weeks. in your piece in the "wall street journal" from yesterday, you don't even get into social security or

medicare. you have four pillars that must be attacked in order to bring down this $14 trillion. social security, medicare, then you add medicaid and defense spending. is that next? >> well, we chose to do -- what we chose to do with this bill, we did address military spending, we did address domestic spending, but we wanted to prove to those in washington and in america that you could cut $500 billion not touch entitlements, but you're going to have to look at entitlements. and i told people that you know what, we've already told them how to fix the budget this month, next month, we're going to tell them how to fix social security, and you can fix social security. we will introduce a bill next year that will make social security solvent for 75 years. it's a matter of will power. everybody up here knows how to fix social security, but it's a matter of will power. someone has to be brave enough to say look, it won't be easy, but this is what we have to change the system to fix the system. bill: you were the first to

criticize paul ryan, a fellow republican out of wisconsin. his $32 billion proposed in cuts this year, you called it insufficient. when it comes to foreign aid, you're drawing some ire from countries like israel. when you've talked about cutting off foreign aid, you've taken heat on that, on egypt, senator lindsey graham said this last night, he said i think national security programs that need to be protected like national security, yes, reform is on the table but getting out of the foreign operations assistance to our friends, business, only buys trouble. it's a pennywide and a town fool in addition my view. to ryan and graham, you say what? >> when you ask the american people does it make sense to borrow money from china to send it to foreign countries, i think 70 percent of the american people in a recent poll said they think it's a bad idea to borrow money from china to send it to other countries, and that includes even our allies. i want to be a friend of israel, i support israel as

our greatest ally in the middle east, but at the same time, we can't give them money that we don't have. bill the other thing -- you have to figure out a way that if you really want your cuts to be implemented, you have to find allies. how are you going to do that? >> i think circumstances are going to bring allies to us. the circumstances are becoming more dire, with each passing day. we are talking about -- i went through a presentation just recently that says that japan's debt is so large now that it's an inevitably that japan is headed towards a crisis. those same people say we're within a year or two behind japan if we don't straighten our way. what i'm saying is before we have a crisis on our hands, let's start looking at things logically and start trying to fix our budgetary problem. every problem up here has an answer if you have the will power to do it. bill: that's an interesting point, because you've been in congress two months now, right? throughout your life, you know, you have trailed your

father and his experiences in washington. what have you learned over the past few months that you think america needs to understand about how either washington does work, does not work, or in your view, can work? >> we, i think america is already there. the grassroots of america, the tea party, has woken up, and they think yes, start cutting spending, yes, don't pass this debt on to our kids and grandkids. the problem is is the message from the grassroots has only been partially transmitted to washington. here in washington, they think oh, if i propose to reform social security, they will unelect me. i think the opposite is true. i think if you are bold, forth right, look at how popular chris christie is when he stands up and says what is on his mind and says we have to do this. if you will stand up in washington and speak the truth i think i can still be elected and by a think on wider margin. i don't think it's a political handicap to be in favor of telling the truth. bill: senator, we will be speaking to you again, this

will be with us for years to come. thank you, rand paul out of kentucky. martha: very interesting. on that same note, republicans and the tea party, not seeing eye to eye on how to cut the legs out from underneath the health care bill, which is what both sides say they want to do. house majority whip kevin mccarthy will join me moments from now. we want to know what you think about this. send me a tweet, martha mcical ul and we'll get your thoughts on that before we speak to martha mcical up. valentine's day is days away. love is in the air! one well-known postoffice complex is clipping cupid's wings, they say no deliveries, can't send any flowers, can't send any -- wait until we tell you where that is. bill: doesn't sound like love. martha: that's not very nice, is it? %e%e%e%e%e%e%e%e%e%e

bill: it's that time of the year, martha! martha: it is! bill: cupid, however, is not amused, pliz maccallum, on the hill, the senate urging staffers to ask loved ones -- got it -- not to send valentine's day deliveries to capitol hill offices. if any flowers or gift deliveries do show up, staffers have to walk off site to get them personally and inspect the items themselves, so you have been warned. martha: that's where security has gotten us, and they work so hard on capitol hill, they don't want to leave the office to pick up those flowers. how about that? how about this, education reform has been a very hot button issue all over the country, of course. many public schools have failed to properly teach our children, and that has been pretty well documented.

perhaps they can take a page or two from catholic schools is one argument on this because they have consistently outscored their public counterparts on performance tests. there may be quite a few reasons for that. more than 2 million american children were enrolled in catholic schools between 2009 and 2010. those numbers have been increasing. peter doocy is from washington. what's the reason that they seem to do better than the public schools? >> march that is correct the the experts we talk to say it comes down to choice. parents choose to send their kids to a particular school which shows to the student that the parents care about their education at a school where the teachers are paid less but they actually want to be. >> because they're catholic, they hold you to a certain moral, a moral standard, and so they expect you to behave better, they expect you to act better, they expect you to reach your highest potential. reporter and martha, catholic schools are a

business, so if they stop performing people are going to stop paying and something else that ties into the performance angle is there are very few teachers unions in catholic schools which means even if there's a problem with personnel or the curriculum it can be corrected on the spot without the bur okay accuracy that comes -- bureaucracy comes with a union. martha: that's a good point, they can get rid of the teacher if they don't think they're doing a good job. what about the religious aspect, they touched on that, do they think it has anything to do with why the children are performing better on the standardized test? >> you did hear a bit of it just right there, and some say by teaching cathollism, students don't just live with scripture, they learn how to behave. listen to somebody explain about how the teachers at the catholic schools are really enthusiastic because they want to be there. >> teachers choose to be there. whether it's an inner city

school or a rural school or suburban school or a high school or grade school, whatever. they're choosing to teach there. instead of belonging to a pool in a large district where people are assigned to a school. >> catholic school advocates -- advocates say the numbers don't lie and before long there's going to be a push for national vouchers because in this economy, no matter how much you make, they say it's not fair to pay twice as much towards your kids' education. martha: there's a real movement towards that. thank you very much, peter doocy in washington. bill: who if anyone is to blame for illegal immigration today? there's a new poll out, well over half americans say the federal government encourages it. fair and balanced debate between the numbers on that n. moments. martha: and this is fascinating. inside the bush white house, former secretary of defense donald rumsfeld unleashing on some of the most defining moments in our nation's history. wait until you hear what

he's saying. >> the heartbreaking thing with respect to guantanamo is not that there's anything wrong with that, it's one of the finest prison systems in the world. what's awkward is the fact that for whatever reason, the administration was incapable of persuading people that that was a first class operation, that they were not torturing people.

martha: let's take a look at some of the top stories

developing here in "america's newsroom". antigovernment protest necessary egypt entering the third week now, president hosni mubarek set up a committee to recommend constitutional changes, protestors, though, still want him to resign. it is day two in the trial of julian assange, where he faces sexual assault allegations and continental airlines laying off 500 workners houston, they say that is part of the merger with united workers, the workers include management and clerical employees. hope that's not bad news for your -- don't send flowers! bill: don't do that, america. the white house saying it supported more illegals over the past two years than any other administration but a brand new poll shows that americans do not think the government is doing enough to secure the border. rasmussen survey shows 57 percent say u.s. polices and procedure encourage illegals to come into the

u.s., 21 percent say no white house polices are working. stephen camarata, center for immigration studies, how you doing? >> good morning. bill: those numbers tell you what? >> they tell us what we already knew, the public does not think we're serious about enforcing our immigration laws and quite frankly the public is right. the list goes on and on of the things we're not doing, and even those deportation statistics that you cited a minute ago, the fact is, what they did was they reclassified some people, as having been deported. so they kind of imied the numbers to make it looks like it was a -- jimmied the records. bill: why does the public believe the government encourages immigration? is it because there's no fence or the national guard isn't up and down that western border? what is it? >> i think it's a lot of things. large sections, the public is clearly aware are undefended. but it's other things. the public doesn't follow it that closely but they know, for example, we allow millions of people into the country on a time-limited

basis, temporary visas, but then we never keep track of time limits. the public knows that we don't have a system that requires employers to verify that their workers are legal. we actually originally wanted to create that system back in '86 and we still don't have it, 25 years later. the current system is still voluntary. they know that a lot of police departments have an explicit policy of not cooperating. they know that the administration sued arizona simply because they had this kind of common sense thing where if a policeman comes across an illegal he can arrest him. bill: that is part of the reason why you're seeing a little more push for taking arizona national. you've got a long way to go before you can do it but anyway, there's an argument to be made there. i find this unbelievable. in that survey from rasmussen, 64 percent say the u.s. military should be used along the border. another 68 percent believe that getting control of the border is more important than legalizing those who are here already, steve.

>> overwhelming. look, the public wants first and foremost the law to be enforced because you're right, it's not being enforced and it's not just at the border, it's all this stuff that isn't going on in the interior, we're not keeping track of the arrival and departure of people, so yes and nothing is going to happen on immigration until the public believes that we're serious about enforcement and we're not serious. bill: so what does this do or what sort of a box does this place president obama in? what does he do, what move does he make? >> it puts him in a real box. his base hates enforcement, they don't want enforcement, they want legalization but the general public wants enforcement. so to get what his base wants, which is the amnesty, he has to make it seem like he's enforcing the law but that alienates his base. in effect to get his base, what they want, the amnesty, he has to give them what they don't want, enforcement he's pulled in two ways. let me give you a quick example. they audit employers and tell them they have illegal

immigrants so see, he's doing a lot of that, that's good enforcement, but then they never actually arrest those illem immigrant sos they can take other jobs and that's how he's trying to split the baby. he's not sure what to do. he wants some tough enforcement in other ways they cut back, pull back. bill: what is your best guess, does this issue move one way or the other or are we just frozen right now. >> i think we're frozen. it's very tough. the president would like the amnesty, but he's not really serious about enforcement across the board. bill: stephen, thank you for your time. >> thank you. bill: interesting results. we'll see whether or not in the end if you are right. stephen, thank you. shoot me an e-mail, hemmer, foxnews.com, follow me on twit e. bill hemmer, just need one line, because you asked, bya. here's martha, out of new jersey, who writes the following: >> martha: all right, let's go to chicago, actually, where we are watching a fire situation that's just developing. you can see crews on the scene there of this building in chicago.

this is 1108 south trueborn are you are familiar with that area, we're watching this underway, this coming from wfld. and there are reports of this fire that have general come from chicago. we're trying to get an idea of where this is playing out, what kind of building it is and how many people on the scene are trying to get this under control. you can see obviously they're in the middle of fighting t. and we're going to get you more information as that comes into us. the picture, though, for now a pretty intense fire. bill: and it's freezing and two in chicago, yesterday, right, which gives all kinds of problems to firefighters trying to get things under control. it has an long battle over the health care law but it's mostly been democrat versus republican. why the fight is shifting toward a republican versus republican. we'll talk to a key leader in house leadership, mr. mr. mccarthy n. a moment. martha: superman has his red cape but this lady has a red

coat and it's working for her. see her bashing robbers with her purse? we love this story. bill: how about that? >> martha: jewel thieves, running for cover when them down! coming up.

bill: want to take our viewers to downtown loss earnings a report of a suspicious vehicle pulled over, the bomb squad is on the scene. this is what we can show you on the map,le telestraightor. this is a vehicle, a toyota suv, you've got a fire truck just off to the side of this suv. this looks like the bomb squad here. the l.a.p.d. and it looks like the fire devment what's going on? they got a report of this vehicle a short time ago, everybody has responded, the vehicle turned out out -- out to be stolen, after it was inspected they found a

suspicious package. they sealed off the area. we can show you on our telestrator map here, just what this vehicle is that's involved here. we believe, again, it's a honda, but we can't confirm that just yet. we're working through our -- check that. it's a toyota. here's the image here as we zoom and blow that up on the screen. we'll try and figure out what they have, in the end, if anything is happening out of l.a.p.d. there's a live look from katv, our affiliate working that story. back in "america's newsroom" in a moment. martha: in the meantime that's capitol hill where republicanning say they're on the same page when it comes to cutting funding to president obama's health care law but now several tea party groups are calling foul on them after reports that the gop is leaving the law out of their 2011 spending bill. one tea partiers says this,

these guys are on a very short probationary leash if they don't do what they promised, they are going to find themselves voted out of office in 2012. so that's from mark meckler of the tea party patriots speaking out today. and we're pleased to be joined by kevin mccarthy, house majority whip. congressman, good morning to you, good to have you here today. >> good morning, thank you for having me. martha: break this down for us if you will. basically in the c.r., which is going to basically keep the government running for the next few months you all chose not to put in anything that would have cut fund thank would have cut the legs out from underneither health care reform. why? >> no, no. wait until you see the bill. you also have to remember the whole reason we're doing this continuing resolution, because the democrats never did a budget, because government is only funded until the beginning of march, we can only deal with what's in the bill. so you will find, the

congress member on the appropriations committee will offer an amendment that goes through that cuts different departments. because you can only deal with what's in the c.r. when it comes to the bill itself with the floor, so you will find there are ways that we're going in after the health care bill, but also, remember, we've already had the vote to repeal health care on the floor, which was a bipartisan vote as well. this is not something that we're going slow on. this is something that we're beginning attacking from the very beginning. martha: but you're saying there was no opportunity whatsoever in the c.r. to cut funding for health care reform. >> no, there is. -- no, there is. there are specifically areas. you can't do the whole thing but can go after certain departments, after the irs, after health and human services. martha: right. those are the branches that they're going to be dealing with, putting this into effect, right? >> correct. and you will see that we are going after this. martha: what do you make of this, these disgruntled tea party folks like mark meckler, from the tea party folks, who says you have to

swing at it every chance you get and it's a threatening message from these guys, that you guys are on probation. >> i think it's good to hold elected officials accountable. you also have to remember, compare the 111th congress to the 112th. in the first four weeks when the democrats were in the majority, they added more than $600 billion in spending. we've cut more than $600 billion in spending. this is a continual movement forward of changing the whole scope and structure of government. and you will find every bite of the apple, we're able to take it. i understand the frustration out there that they want to see more at the very beginning but we can only focus on the areas we can at the time because of the rules of the floor. martha: i understand what you're saying. i want to talk to you a little about the other side of the building that you're in right now, over on the senate side. there's a report this morning that says that some really leading senate democrats may be open to some negotiation on some pretty serious changes in health care because they find themselves in some pretty tough election patterns for the coming election. let's put up some of the

pictures, they include claire mccaskill, john kester, joe manchin, bill nelson. what are you hearing from your side over there about whether or not there may be some senate democrats who might be willing to abandon the president on health care? glie think there are some senateand there are some democrats in the house. remember, there are 21 senate democrats that got elected in 2006. that was a much different way than we saw in -- wave than the last election. in the the senate, that's the country club, the house -- what i refer to as a truck stop, where everybody is able to see a microcosm of society. the senate is going home and hearing a different message than the last time they got elected. they're going to be much more open to the legislation that we passed in the house. they're going to be with us. and look at what the blue dogs are saying, that nancy pelosi is not listening to them. look at the number that voted with us. martha: it sounds like you think there is room to pull some of those democrats from the house and senate over to

your side. let me ask you this before i let you go. sort of two paths here. you can cut funding to health and human services, for example, and other entities that are going to drive the health care reform, then you've got the supreme court path. which one do you think will be more effective in the end? >> i think you do both. but if you really look at the very beginning, you still have the presidency sitting there, he's going to -- is he going to veto the bill, are we going to have enough votes there? i think you have to go through it on the funding but really, what can knock the entire thing out is through the court system, and when you look at the decision made in florida, that is a very strong decision. and i think the supreme crort is doing -- court is going to have to look at this bill. martha: we heard the president respond to that with bill o'reilly, saying he vehemently disagreed with that court decision. we'll see where it goes. congressman mccarthy, thank you for being here. >> thank you for having me. bill:gate you lack to --

back to l.a., new details, police going door to door in this neighborhood in downtown l.a., the area that is burning at ninth avenue where this toyota high launder is parked on the side of the road there. reports of a suspicious package found inside. they don't know if it's dangerous or not. the bomb squad has respond responded, police have responded, the fire department is on scene, now going door to door to clear neighbors out of the area. we'll be back on that story in a moment here. it is downtown l.a., breaking news here on "america's newsroom". twelve minutes now before the hour. martha, what's coming up? >> martha: looking across the country, ask yourself do you live in an economically stressed city. that may have some real ramifications for you. coming up, we're going to show you the most stressed spots of this country, and why the white house now says that the feds may need to step in to some of those. bill: also a story toyota would like to forget, reports of runaway cars and unintended acceleration. now we have some answers as to what went wrong under the

hood. >> martha: really. [ fe bill: really.

>> ♪ >> ♪ i'm sorry. >> ♪ >> ♪ so sorry. >> ♪ >> ♪ bill: you have to work with me! i'm sorry. martha: i'm not sorry. bill: nfl commissioner roger divell trying to make it up to the victimized fans by a seating snafu at the super bowl. here's the commish. >> i apologize though those -- to those fans that were impacted by this. we are going to work with them, and we are going to do better in the future. we will certainly do a thorough review and get to the bottom of why it all occurred. bill: what happened, 400 showed up at the game to find out their seats were

deemed unsafe because construction was not finished by game time. now goodell saying those people will be guests at the nfl at next year's big game. that's kind of cool. they got triple the face value of the tickets, which means they got $2400, and they got the merchandise and access to the field after this year's game. that stadium, by the way, is so gigantic that 400 seats up in the corner, you could not even notice that there was a void in that part of the stadium. martha: and i'm glad it wasn't one of your seats. we would have never heard the end of that! >> bill: and another thing, martha, did i ever tell you the time -- >> martha: and you know, they get the money which is great and they get to go next year, but chances are one of these teams was their team. bill: very true. martha: they may not be there next year. bill: i love it, it's america's best every year. check out the ratings, 111 million people watched the super bowl, that beat last year's 106 million, the

mash finale had been the record holder. martha: isn't that amazing. bill the percentage of the share of the people across the country still watched more of the mash show. we have more people around the country that -- >> martha: bill: awesome stadium, fantastic game. martha: i know, it's bill hemmer day. we are so glad you had a good time. we missed you. check on nut -- check this out, in england, a game of six thug, armed are sledgehammers, they executed a smash and grab at a jewelry store but they did not bargain on this lady in the red coat. see her? this lady starts pelting them with her handbag, she's whacking away at the bad guys. and he falls over, he's all confused, he doesn't know why he's getting hammered by this lady. good for her! listen to this: >> we were at the door, and

then we looked outside and she was running with her handbag in the air, banging on the helmets with her handbag. martha: good for her! two of the bags -- two of the guys rode off in the motor bikes, one, pinned down by passengers until the police arrived. she's a hero! she caught those guys. she would haveo they would have gotten away. bill she is the lady in red. there's a way to highlight her! martha: granny power! >> bill: in a moment, president obama, reaching out to the business community, at a speech at the chamber of commerce. martha: that's not president obama. bill: i don't believe so, is it? he says they must work together. what's the chamber saying? you will hear it firsthand, martha. martha: former secretary of defense donald rumsfeld opening up about his timing at the white house and he's taking for prisoners on a number of accounts.

we're going to tell you what is in this book, his interview with sean hannity, the exclusive. we're going to give you a sneak peek at that when we come back.of go to campbellskitchen.com. where you'll find hundreds of fresh recipe ideas, made with the brands you love. make campbell's kitchen part of your kitchen.

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martha: all right, folks, here we go, you heard it was coming from a number of corners, and now, we could be eyeing what could be another massive bailout, for state governments across the country, president obama set to propose billions of dollars in federal aid. the plan will be released as part of the budget next week, is our understanding at this point and the white house saying it well prevent enormous tax hikes that would have to kick in across the country as states scramble to take back money they took from the feds to cover earlier unemployment benefits, robbing peter to pay paul kind of things, it sounds like, brand new hour of "america's newsroom," we are glad you are with us, this morning, i'm martha maccallum. bill: i'm bill hemmer and you hope to erase the stuff but that is far from eat, soaring unemployment costs place aid mammoth burden on states' bank

books and a large majority cannot pay back the money they borrowed from uncle sam to cover the payments, and sarah palin saw it coming. >> fat strings attached to the funds, you should have known back then, a lot of us swerve governors vetoed the funds and we're overridden by republican led legislatures to accept the funds anyway and look where we are, two years down the road, like, we told you so. martha: on "follow the money" eric bolling, the host joins me now, and now she isn't alone and a lot of people say it is coming down the road and here it is. >> that was from last night and it was really based on the story we heard yesterday, that there was a bipartisan group of governors somewhere around 30, who were looking to in other words close their budget gaps without raising tax and looking to cut spending and i said what should they do and she had the answer and then today, we find out, one step further, somewhere buried in next year's budget,

there will be bailouts for the states and we have been worried about it and warning of it and now it is buried in the form of interest payments that states were going to have to make on money they borrowed from fed, will push those back to the tune of $42 billion worth of payments and again, we have been calling -- as she said, they should have stopped and said we don't need the money and cut spending ned of taking bailouts. martha: and i want to talk about how it will work and there is new analysis from the associated press and shows which states are the most economically stressed. not a lot of surprises on the map. california, arizona, nevada, georgia, florida, and, all of those, topping the list of stressed states and the data shows it is connected to the real estate market, also what you would expect, right? a surge in foreclosures out weighing a small drop in unemployment for development and five states at the bottom of the list, north dakota, south dakota, nebraska, vermont, new

hampshire, in those states based far less on real estate and the question i have now, eric, if the government decides to give them relief, you know, on money owed back to the government, will that be with strings attached? or, spending cuts need to be attached to the relief. >> that is a great question, if you listen to the answer governor palin said. there were no strings attached and there should have been fat strings attached and that was the problem. we have begin the states, we, taxpayers, have given the states $150 billion of stimulus from the stimulus program and they want more now and will ask for more and we shouldn't give it to them and figure out a way to get intending down, and close the budget gaps and as the real estate markets recovers and it will, martha, real estate prices will go back up, and property tax revenues will go back up to help out as well and we need to not allow the states to borrow again from uncle sam, us the taxpayers because they will keep doing it over and over and over. martha: doesn't help the federal

government or states, if you give them excuse to do things the way they are doing things and not cut spending commensurate with the money they are relieved on the tax package. >> worse for the states, worse for the feds. martha: great to see you. you can catch eric, there is his smiling face and you get to see that every weeknight, 9:00 p.m. eastern excepts on thursday, 10:00, stay up an hour later for that. thanks, eric. bill: we are waiting... to hear the results of a ten month federal investigation into the recall of millions of toyota cars, for, quote, unintended acceleration, toyota recalling more than 11 million vehicles, around the worlds since the fall of 2009 to address what was going wrong with the driver error and the sticking gas pedal and another safety issue? molly henneberg is live in washington on this. good morning to you, so many own the vehicle, vehicles made by toyota and suspect it might be an electronics issue?

>> reporter: that seems to be the hypothesis going into the ten month study though a preliminary part of the study by the transportation department released in august did not find any electronic flaws in the toyotas that have been accelerating, seemingly on their own and the results come out later this afternoon and transportation officials looking into unintended acceleration, 3,000 reports of runaway toyota over the past decade reports of 93 deaths, but the department of transportation only confirming five of them, and they want to know why the pedals seem to be sticking or getting trapped in floor mats and initially are suspecting it could be due to an electronics problem or some type of electromagnetic interference but, again, bill, the preliminary reports did not find that kind of flaw. bill: so what has toyota done since then. >> reporter: the japanese automaker recalled 11 million vehicles, around the globe, since the fall of 2009, because of safety concerns. but, has said it has not found any electronic problems, either, related to the run away cars and, toyota has started to

install counter measures in the cars to cause the car to decelerate if the brakes and gas pedals are pushed at the same time and also, engineering teams are looking over cars that consumers have complained about and critics say the company has not moved fast enough and toyota paid a record $48.8 million in fines, to the u.s. government, over the handling of a couple of recalls. bill: all right, the mystery continues to an extent, molly, thank you for that, molly henneberg live in washington, martha. martha: hundreds more americans could soon be out of work because continental airlines will reportedly cut 500 jobs in houston. all of this is said to start in april and has to do with the merger with united last year that created the world's largest airline, continue them and united getting together and we understand the layoffs are mainly going to affect management and clerical staffers in those headquarters. bill: dire warning now from israeli prime minister benjamin netanyahu addressing the current up pricing in egypt, saying that his next-door neighbor, egypt,

could end up like iran. greg burke reporting live on the headlines out of jerusalem. greg, what was said? >> reporter: well, bill, israel has a lot at stake at what is going on in egypt and certainly have been watching closely and up until now we haven't heard a lot from the government and now prime minister netanyahu outlining basically a threefold possibility of events in egypt, one it opts for a secular state with the military playing a major role and secondly, decides to go hard core islamic and certainly not a future that israel wants. >> there is a third possibility, that egypt would go the way of iran. when calls for progress would be silenced by a dark and violent despotism. >> reporter: he says he expects whoever to comes into power to respect the peace treaty with israel and he says he expects the international community to push egypt's new leaders to keep the peace as it is good for the

entire region. but, he says, his biggest fear at this time is not egypt, but a militant islamic regime ready to use nuclear weapons. he is talking about both iran and pakistan. and finally, bill, one interesting piece of news coming out on wikileaks, concerning all of this, cables showing back in 2008, cables from the u.s. saying that somebody was thinking about post hosni mubarak and israel was actually favoring omar suleiman, he was the former defense chief, to hosni mubarak's son taking over, suleiman, of course, right now has been named vice president and is in charge of the transition. bill? bill: greg burke, developments in the middle east, there are many, again today, thank you, greg. 7 minutes past, martha? martha: now, wikileaks founder julian assange may soon find out if he'll be forced to return to sweden, in london in a courtroom now, fighting his extradition request. swedish prosecutors want to question him after two women came forward and accused him of rape. lawyers for assange say they have offered to speak with the

prosecutors in london, but, swedish authorities say no thank you, that is not what they want to do and the judge in london could take several days before he rules if he must head back to sweden. bill: breaking news downtown l.a., we mentioned 30 minutes ago, i want to bring you an update, a little after 7:00 a.m., the sun has come up and we have a better image, a kttv and the helicopter in downtown l.a. we believe that is a member of the l.a. police going underneath that vehicle. checking for anything suspicious. that might be connected to this toyota suv nearby, now out of screen, that is said to be a vehicle that was stolen, tracked down in the neighborhood, in the dead of night, l.a.p.d. responded and the bomb squad responded and found a suspicious package inside and in the neighborhood that appears to be a combination of residential and commercial and police have been going door-to-door asking residents to get out, as a precaution. again we'll try and figure out

what is exactly in the car or other cars around it and you see the police tape, that has been set up to block off the street, 7:08 local time in l.a. and we'll see what comes of this. i believe that is the l.a.p.d. there. doesn't look like the bomb squad. from the large e-picture, we saw, on a wider picture, earlier, you could see the l.a.p.d. and the fire department, and the bomb squad toward the left of the neighborhood. martha: we'll stay on top of that. and in the meantime, juarez, mexico only separated from el paso by a small fence and the rio grande river, close enough for two americans, look at these young boys, to become victims of america's third war, we'll take you along the border, in one of the most dangerous spots. bill: also, she's accused of gunning down her two teenage children. now, wait until you hear what police say she did only moments before those murders. martha: awful video. and he, this gentleman as you well know, helped orchestrate america's response to the attacks of 9/11.

later facing sharp criticism for the wars in iraq, and afghanistan. >> for people to say bush lied or -- and colin powell lied and condi rice lied or cheney or rumsfeld lied is just not true. he believed every word he gave in that speech. martha: today donald rumsfeld defends himself and his colleagues, and former president bush but he has pointed criticism for some people. next. ♪

♪ j-e-l-l-o ♪ j-e-l-l-o ♪ j-e-l-l-o

bill: chilling new details coming to light in the shooting deaths of a tampa brother and sister. tam tampa, florida, the mother is accused of the murders and she wrote a note referring to her plan as a, quoted, massacre and they've also revealed julie powers, that she bought a gun the weekend before the shootings and police say she shot her 16 and 13-year-olds for being, quoted, mouthy. taa, florida.

martha: all right, changing gears to a story that will get a lot of attention, in the coming days as it starts to come out, criticalsics blasted him, during the end of his tenure at the white house and now former secretary of defense, donald rumsfeld is speaking out on his own and has a memoir, "known and unknown" and defends the bush administration in large part and himself, clearly including the reasons behind the invasion of iraq. >> you also stated, you know, colin powell made the case before the united nations about weapons of mass destruction. >> and he of course is a smart man, he was knowledgeable and he felt, he has told me since, that there was -- some people in the intelligence community apparently understood that one of the pieces of information she was given was a single source of information. and, he felt that he didn't know that. when he gave it but, here's an honorable man, worked hard on the speech and for people to say

bush lied and colin powell lied and condi rice lied, or cheney lied or rumsfeld lied is just not true. he believed every word he gave in that speech. martha: interesting. k. t. mcfarland is our best source on that, a national security onlyist and the host of live news live, defcon-3, welcome. >> thank you. martha: he's a very complex man, donald rumsfeld and you stayed up late last night reading this and you read all of them, the cheney and the powell book. >> and the -- and i have to tell you, i have been in upper administration and worked with donald rumsfeld in the nixon and ford administrations and everyone in their memoirs wants to show they were right and everyone else was wrong and this is no exception but the troubling thing is we don't know the answer to two main questions. martha: which are? >> who decided how many troops to send in and why didn't we send enough and who decided to disband the iraqi army?

because the troops and no iraqi army, common sense tells you the place is going to collapse. and, yet, nobody seemed to have a plan b, nobody seemed to ask that question and it also is somebody else is in charge. martha: everybody thought it was going to be such an easy victory and everybody would be thrilled saddam hussein was out of power and would all miraculously get together and start this new democratic government and, two things, as i site a see it, and other was to light democracy, spreading across the middle east. >> and you are right. the justification of the american people was, there are weapons of mass destruction and we have to find them and eliminate them and the other thing that motivated president bush, was look at the middle east. this is a place where there are people turning to jihad and suicide bombing and, how do we

change history and try and focus on iraq, and have that be a strong democracy is a beacon of the other countries, hard to tell if that is the case. >> look what is happening in egypt, there are a lot of lessons to be learned. martha: it seems petty, back and forth about continued let's rice and her management style and i sent her this memo and she said i had a deadline and i didn't have it and... what do you make of all of that? >> i think donald rumsfeld is someone who has -- may have been wrong but he was never confused. and this is something that, when he was in the pentagon, i would talk to military officers, senior military officers who said his military style at t ma disaster and for them to say -- >> they worked together a long time and maybe too much familiar

yart. here's more from the interview. >> let there be no doubt there are extremists determined to do damage to the united states of america. and to kill americans. and to impose a caliphate over a large fraction of the globe. and they have weapons of increasing lethality at their... >> disposal. >> disposal and beck and call. martha: that is the crux of the neoconservative argument, this is a serious matter and that perhaps this particular administration does not have the same perspective on it as these gentlemen do. >> and we are seeing, we are seeing, people are saying what will happen if there is a chaos in egypt, does egypt become another iran and do you have jihadists and terrorism and people who wants to establish islamic governments and caliphates throughout the world. will you see that in egypt, or is egypt going to go in a different direction and be a fledgling democracy and stumbling but more like iraq and is a point that has been

bedevilling us since donald rumsfeld went to the middle east in the early 1980s as the negotiator. martha: fascinating. and you have a unique in sight having known and worked with him and so many of these people. thank you very much. >> thank you. martha: interesting read. good to have you here. >> thanks. martha: bill? you know what, first i'll tell you, you can watch the entire interview with former defense secretary donald rumsfeld during the special edition of hannity tonight, 9:00 p.m. eastern and the interview will run the full hour, donald rumsfeld, speaking with sean hannity, will be fascinating to watch at 9:00 p.m. tonight, do not miss it. bill: in the meantime he pulled a gun on the clerk at a convenience store, took $300, but what he said to the clerk is what is making news, why they call him the polite prowler on the screen. and new and veeflg details over how the convicted pan am lockerbie bomber got out of prison a year-and-a-half ago when he was said to have only days if not weeks to live. >> i repeat, i believe it was

profoundly wrong and the fact that 18 months later, the lockerbie bomber is today living, and at liberty in tripoli serves to underline that. bill: that is the british prime minister and fresh details how they helped win his freedom. the mother of one victim, responds to those allegations. just ahead. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

martha: he pulled a pistol on the clerk, grabbed a wad of cash and what happened next does not happen every day. listen to this: >> do me a favor? will you please... put it right here. i'm sorry to have to do this but i have kids. martha: wow. that is quite a situation. the police cuffed the 65-year-old suspect, in the

so-called polite robber manhunt and identified him quickly after the surveillance video went viral and you got a clear look on his face and heard him apologize for holding up the store and promises to pay the money back when he gets back on his feet and police charged him with a second robbery at a gas station. bill: he's on a roll. martha: he was on a roll. bill: at least he said please. martha: i think there is something sad about the situation. he's a thief and robbed them, and, i don't feel bad for him but i feel -- you know. bill: wasn't going far. pretty obvious. martha: he said he'd pay the money back. bill: there we go. >> president barack obama: we have to do this together. business and government. workers and ceos. democrats and republicans. now, we know what it will take for america to win the future. we need to out-innovate, out educate and out-build our competitors. bill: talking to the u.s. chamber of commerce, stressing

for a need of government and business cooperation to get the economy moving again and when we heard what the president said, what does the chamber say? the coo of the u.s. chamber of commerce, how are you doing, sir, good morning. >> excellent. bill: how did it go? did you like what you heard. >> i thought it was a great speech, actually, very good and resonated with a lot of things our members can understand, things like jobs, and business and entrepreneurship and so, as a general principle, it was a good speech. bill: did you expect that tone? >> we hoped for it and, again, it could be a good start, but, the devil is in the details and is really, at the end of the day, about action more than words. bill: you know, the chamber has not had the best relationship with the white house. do you think that -- do you think the relationship has now fundamentally changed? >> we have disagreed with them on some big, big things. health care, dodd-frank bill, but there are things we can work together on, trade,

infrastructures investment, education reform, so there are places where we can cooperate and, still will be a bunch of things we will fight about, though. bill: and you will probably fight about taxes, too, but the president has given ground already on the corporate tax, saying he's in favor of bringing it down. is that where the two meet? >> well, on the corporate taxes he said bringing the rate down, but, expand the base. close what he calls loopholes and as a principle, we will not argue with that. it is how you do it that matters. bill: so the way you debris it, it doesn't matter whether the right pocket or left pocket, taxes are coming out of somewhere. >> absolutely. bill: how do you change that. >> well, if we wants to work on a corporate tax reform, the chamber supported that in the per share to make the system simpler and easier and clearer, you know, i think we can get there but again is all about the details and where the money comes from, ultimately. bill: you know the allegation against the white house,

administration, they are anti-business. do you feel that way? did you feel that way before yesterday? have you changed since then? >> we have never said that. and that is not something i ever asserted. we have disagreed on big, big things, that matter a lot to the economy. and still disagree. but, this is a town where we are trying to get stuff done and are not into characterizing pro or anti-business, seats we where we can get things done. bill: and create jobs, too for the 16% unemployed or under employed in america today. >> thank you. bill: the chamber's take on what happened yesterday. thank you, sir, for coming in. >> thanks for having me. bill: 27 past, here's martha. martha: a story becoming more familiar all the time and this time, really hurts. three teenagers victims of deadly violence, along our border. two of them americans. more, in a moment. bill: also the president and bill o'reilly, round two, martha and the question weighing

heavily on the minds of so many millions of americans. >> president barack obama: what i said to the republicans is i wanted to work with you, to figure out how we cut spending. >> and, but -- >> president barack obama: we're not going to be able to do it, one side is not going to be able to get it done, it requires tough choices. >> as an american i'm tremendously worried about that. >> president barack obama: so am i. what super fruit is taking sunsweet ones.orm? prunes? they're a delicious source of nutrients. wow! it's packaged by itself... that's fantastic! that is so juicy. this is delicious.

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bill: back to l.a., we are trying to figure out what is happening in central l.a., about, i guesses 8 miles

southwest of downtown l.a., this is a neighborhood that appears to be a mix of residential and commercial businesses, several cars are being checked and neighbors in the area have been woken up and told to evacuate as a precaution and we are hearing through kttv, the helicopter in the sky there, and an l.a.p.d. officer was -- heard firecrackers going off when he heard the glove box, in one of the vehicles and he went back and hit is a head and has been taken to a local hospital and 15 homes have been evacuated and originally we thought a toyota was questionable and still might be the case and now we hear about a quite cadillac being questionable and they are on the scene with the bomb squad, l.a.p.d., fire department and the bomb squad says they have it figured out and will bring it to a peaceful conclusion. and sun up in l.a., 7:30 local time and we're back on the story when we get more information,

here's martha. martha: stories developing here in "america's newsroom," house lawmakers are expected to vote to extend certain parts of the patriot act today. the specifics that have access to business records and keeping tabs on lone wolf terror suspects, is what the patriot act is dealing with today and afghan president karzai says nato reconstruction teams need to go, going to provinces to support security and reconstruction, and he says afghan teams can now take over those duties. and, a massive fire destroying a warehouse in metro dallas, dues of firefighters worked furiously as the walls and parts of the buildings collapsed look at this fire. no reports, thankfully, of any injuries. bill: drama, huh? america seriously in the red and millions demanding answers out of washington and bill o'reilly talked to the president about just that. >> is the state of the union address i did not see urgency

from you, about the 14-plus trillion dollar debt and saw, we'll freeze this and freeze that and tightdidn't see urgenc >> president barack obama: there is enormous urgency, we are proposing to cut $400 billion of spending over five years and i said to the republicans i want to work with you, to figure out how we cut spending. bill: rich lowry, editor of the "national review" and a fox news contributor. upper right, good morning, rich, mar really, cardona, former senior advisor to hillary clinton, good morning to you and, nina easton, "fortune" magazine and fox news contributor, how are you doing. >> good. bill: lower riefght. rich you think it is word play. >> it is ridiculous and he says he's cutting and isn't. it is a freeze and a freeze at historically high levels of spending and look at the categories from '08 to 10, this went up 10 or 20% and add the stimulus and some went up 100%

or more and is not about cutting spending, it is about preserving it. bill: maria, preservation? >> no, absolutely not. and, there is huge urgency in the way the president said, why he is cutting $400 billion, like he stated in this state of the union, and he's also -- the reason why he's also against repeal of the health care patients right law that will cost us a trillion dollars over the next decade and why you will see him make the argument as to why we can't make the cuts to the highest earners, permanent, because that will also cost us a trillion dollars in the next decade and he wants to work with republicans on this and is a shared responsibility -- >> nina, do you get a sense of urgency? >> well, you know, you look at the state of the state of the union speech and which you showed earlier to the chamber of commerce and the president gave a robust proposal for more spending and he calls it investment but wants to spend

more on infrastructure, communications, high speed rail, and we haven't seen the price tag on that, yet and i think he wants to have it both ways and wants to talk about and propose the investments in the this future as he calls them and that is going to cost money and he has not really been clear on that. bill: you wonder if we'll spend any money, given the unemployment picture and wonder if that goes through. and, so you feel a greater firm footing for the economy. and, the dow is up above 12,000, almost bumping up against 12,200 and, wall street right now is far removed from america, when it comes to the 16% under employed. >> the good news is, none of the additional spending will get through the house and house republicans to their credit are proposing something totally unheard of, in washington. which is an actual cut, actually reversing spending levels and going back to 2008, and now it is a slice of the budget, the domestic, nonsecurity

discretionary spending but is a start. and, what obama i think is setting up here, will attack viciously, republicans for these cuts and will attack them even more viciously if they dare go after entitlements, and this is all a political ploy and he doesn't care about the deficit but cares about current levels of spending and knock the heck out of republicans -- >> if that is the case is that a winner, politically. >> look, that is absolutely not true. he's going to look at what the republicans are going to be offering, because, like he said, he wants to see how they are going to help him deal with the deficit and is a huge problem, no question about that and the problem is, and many experts and economists say on the left and right, you cannot cut your way to job creation. >> you also can't spend your way as we learned. >> that's correct. and so that is why the president is working on this and he wants republicans to help him. >> can i get in higher... job creation. you have to invest. bill: paul ryan, the republican,

rand paul was on with us last hour, are there democrats on the hill who are serious about getting after the spending issue? >> absolutely there, are democrats in the senate, kent conrad who bois about to retire and will take the politically risky cuts and two democrats, key democrats in the senate who supported the bowles simpson deficit reduction proposals and have an interest in moving it forward. back quickly to the question about job creation, the other part is job creation is enabling businesses to invest to ease the regulatory burden that has been put on them, and, i didn't really get a sense from the president, yesterday, his speech at the chamber of commerce, that there was going to be a serious effort to help businesses have more certainty about investment as they move forward. and, all he had was a robust defense of health care. -- if you read his speech

yesterday, he defended health care regulations and defended the wall street reforms and defended regulations and, basically, acted like people who question the regulations were fringe. >> clearly, what high wants to do is preserve as you say -- >> epa and other thes -- >> he wants -- quickly -- he wants to preserve much of the new spending, as much of the new spending and as much of the new regulation as possible while posing as a... bill: we have to leave it there. maria, nina, thank you, rich, see you in the hallway, thanks. martha: really disturbing story america's third war, a string of deadly shootings over the weekend, along our southern border. two teenagers from el paso, texas were among those killed in juarez, mexico. a third teenager from mexico was also killed in the. juarez is one mile from the texas border but there are

smaller towns where the criminals literally rule the streets. and, steve harrigan recently visited one of those towns and joins us live from the border, steve, what did you find? >> reporter: two of those u.s. citizen teenagers, one age 15 and one age 16 went to school there, went to high school in texas and while the violence in juarez, mexico and other big cities is getting a lot of media attention sometimes in the smaller mexican towns right along the u.s. border, sometimes less than a mile from u.s. sarrers to, the situation is even worse. help wanted, police chief, guadalupe, mexico, salary, $580 per month. the previous chief's head was found in an ice chest. 28-year-old erika gondahar took the job, two days before christmas at 6:00 a.m., ten gunmen dragged her out and burned down her house and she has not been seen since and 9,000 people who live here, one mile from texas, are back in the

stone age." no police", she says, no water, no electricity and wake up and hear gun shots, houses on fire. we're scared. violence by drug cartels, in this big cities like juarez gets media attention, no one knows or records how many are killed in small towns where the state and the police and people have already given up, where a nation's flag flies in surrender. that situation in guadalupe is not unusual for mexican towns along the border. just last week the police chief in laredo was gunned downed, assassinated along with two bodyguards and the job of police chief along the mexican border is becoming fast a job no one wants to take. martha, back to you, i can see why. steve harrigan, great report, thank you very much. on the border. bill: he created the most popular on-line community, the

internet, the world has ever seen and facebook founder mark zuckerberg could be a victim of his own invention, the so-called friend and a restraining order. martha: and it had been more than a year-and-a-half since the pan am lockerbie bomber was released from prison, supposed to be dead according to the doctors, look at him, months and months ago, and how one very close u.s. ally did, quote, everything it could to help get this man released. >> the government of london... to fill staacilitate witness ren any basis and the labor department in scotland was attacking mr. mccaskill as if they had no thought whatsoever what in london they were doing and, the prime minister, was totally silent and that is a situation, a position of extraordinary hypocrisy.

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>> i'm jenna lee, a packed show

for you today, a new report on al qaeda, breaking details you will see here first and our continuing investigation into the muslim brotherhood in the u.s. and today we look at where the money is, and where it is now going. and, also, a surprising study on anxiety one that says just embrace it. for what it is. and, we have a warning to beachgoers about a danger in the water locals say they've never, ever seen before, not jaws, something else. see you at the top of the hour. martha: we have been showing you that suspicious package situation that has been unfolding in l.a. and now can tell you there is and all-clear on that package, and had to wake up the folks in the neighborhood and found a car, abandoned, stolen car and worried about a package and apparently now cleared it, and, it is not a problem for the neighborhood and we wanted top back end that for you and tell you how that worked out. bill: the founder of facebook, unfriending a so-called creep

from his on-line worth, mark zuckerberg, whose net worth is billions, getting a restraining order against a stalker. laura ingle has the ironic story from new york. >> reporter: the situation has gone beyond a poke or a friend request on facebook, for zuckerberg and what at first appeared to be friendly greetings turned into concern for facebook's ceo, mark zuckerberg, who now has a restraining order against his alleged stalker and he says he has been followed, surveilled and contacted with language that he finds threatening to his personal safety. a judge agrees and has ordered the 31-year-old to stay at least 300 yards away from the young billionaire, his girlfriend, and sister, randy, pending a hearing later this month and according to the web site, tmz.com, he claims he never meant to scare the facebook ceo and feels so bad about the whole situation.

promising never to bother zuckerberg again. and tmz reporting that he sought advice from zuckerberg for a, quote, major personal problem. and he wouldn't say what advice he was seeking, only that it was not computer related. here's the samples of the messages he sent to zuckerberg on facebook, the first one, quote, please help me and then i'm ready to die for you. he continues, please, understand my pain. another one, intended for zuckerberg's sister reads, quote, dear randy, please respond before it gets too late. i'm sorry to bother you. which is not at all concern to you. every second is precious to me. please understand the urgency and do the needful thing. please do respond, i really need your help. my dear sister. thanks. zuckerberg says his alleged stalker showed up to his palo alto offices asking for money and showed up at his home and sent him flowers and the police say he has not been arrested,

only admonished by their department. bill. bill: laura ingle from new york city. thank you, martha. martha: how about a collision course, imagine that you are riding in a bus when this happens... bill: whoa. martha: more after the break. tht rare and magical fruit, which provided for their every financial need. [ thunder rumbling ] [ thunder crashing ] and then, in one blinding blink of an eye, their tree had gen its last. butith their raymond james finanal advisor, they had prepared for even the unthinkable. ♪ and they danced. see what a raymond james advisor can do for you.

bill: we showed you this before the commercial, a frightening bus accident, a closed circuit camera on board captures the impact right there, as the bus smashes head on into a truck. it happened in turkey and as the bus rolled around you can see windows breaking and after the impact, the bus crashes into a cement abutment and, two strikes on board. 18 people were injured. martha: this is an unbelievable story, there is new outrage today after a british

investigation has now revealed that the u.k. did, quote, all it could to help free the lockerbie bomber abdelbaset al-megrahi. you will remember he was the only person convicted for killing hundreds of people in that bombing and he was released on compassionate grounds in 2009 because the doctor said he had only weeks, months to live, and was sent to libya to live out the rest of his days and a ye year-and-a-half later he's still alive and the british prime minister is blasting the previous administration in the case. listen to this: >> was it really right for the british government to facilitate an appeal by the libyans to the scottish government, in the case of an individual who was convicted of murdering 270 people including 43 british citizens, and 190 americans, and 19 other nationalities? i believe it was profoundly wrong. and, the fact that 18 months later, the lockerbie bomber is,

today, living at liberty in tripoli, only serves to underline that. martha: can you imagine what this is like for the family members of these people who died in the bombing? rosemary wolf lost her daughter in the bombing, and she joins me live. susan cowan lost her daughter as well, they were students at syracuse university, and you may remember 35 students spent the semester in london and were on their way home for christmas when it happened. rosemary, thanks for being with us today. >> thank you. martha: first of all, just give me a quick idea of your daughter and what all of this is like for you. >> well, miriam was 20 years old, he was a musical theory student at syracuse and loved the theater and she loved singing and she was full of life and she just wanted to be happy and entertain people.

martha: and susan cowan is on the line with us and she thought her daughter, theodorea and give us a quick sense of your loss, ma'am. >> she was my only child and it destroyed my life. this has certainly made it all worse, these terrible, terrible things we have learned, and i am angry and i am distressed that we have become so -- the british could have done this, and for business interests and is nothing but money, and, it is as terrible, terrible thing. martha: to give everybody at home background, the accusation is that the u.k. urged the scottish officials to allow him to be freed because they wanted to do a deal with bp. the oil company. susan, talk to me about -- rather, rosemary, talk to me about the assurances you will, the families were given at this time, when all of this happened, and he was finally, you know, put in prison for this. what were you told would happen?

>> yes. on the 5th anniversary, in arlington, president clinton told us that should they be convicted, they would serve out their terms in scotland and this was the promise the british made to the united states. and, it was broken, it was horribly broken and there is very little we could do about it now, except ask that abdelbaset al-megrahi be sent back, and mccaskill and salmon resign and this british government do a thorough investigation. martha: ladies, thank you very much for joining us today. an awful story and i know a lot of people in your position want to see the u.s. do more about the investigation and there's a couple of senators, mendendez a lautenberg involved in the star. thanks for being with us. bill: the woman said, it ruined her life. martha: how could it not, right? bill: indeed. a threat from iran against the producers of a new film, why the

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