>> more on the after the show show. the three of us will be back here tomorrow morning at 6:00 a.m. eastern time. we will see you then. thanks for showing up this morning! >> look for the after the show show right now. appeals sph the -- in the accuser's credibility. gregg: what a turn of events going on. we're awaiting a bail hearing for strauss-kahn. martha: and they're attacking the accuser's credibility which is common in the defense but in this case it's coming from the prosecution who the more they dug into this started to raise a lot of questions about the woman who claimed these things against dominic

strauss-kahn. laura ingle is live in new york city. those

>> martha: thank you very much, laura ingle downtown in new york. gregg: there's a big battle going on over spending, it actually shut down the state of minnesota. lawmakers failing to meet a

budget agreement for the midnight deadline last night. so the government is closing up shop. both sides, still at odds over how to eliminate a $5 billion state decifit. >> the democrats and republicans need to stop acting like crips and bloods, gang members. >> i just don't understand how when you shut down a government and we shut down all of these jobs that are going to be lost right now, how are you going to increase and solve a budget crisis when you're not employing people? how are you going to solve that problem? it doesn't make logical sense. >> you never know how long it's going to be so i don't know want my plants to die. they told us to do that, get ready. >> stu join us, democratic governor, republican legislature, you can see this one coming down the pike. i wonder how it's going to end and who will get the blame. >> that's the question, who gets the blame but you're right, this is a standoff taking place across the country. in minnesota, governor mark dayton, democrat, he wants to raise taxes as a way of

closing that $5 billion budget gap, the republicans say no tax hikes, we want big spending cuts, and that is precisely the standoff that's taking place all across the country. in california, they're going to big cuts, plus internet taxes, in illinois, it's all higher taxes, in connecticut, it's big layoffs, no union givebacks, in texas, it's all spending cuts. that's the standoff. raise taxes and or cut spending. you could say, gregg, that it's precisely the same standoff at the federal level. washington is going to be watching very closely, looking at minnesota, to see who gets the blame when the government is shut down. >> gregg: it is a micro comessism and around midnight last night both sides were pointing the finger of blame at each other. stu varney, stu, thank you very much, we'll talk more about california. stu mentioned minnesota, far from the only state with budget issues, 25 states in this country have projected shortfalls, totals about

$46 billion for the 2013 fiscal year. that same year, california faces the largest projected budget gap of just over $10 billion. so more on that coming up. martha: all of this comes as california actually passed its current budget on time and balanced. that is the work of governor jerry brown who signed the $85.9 billion spending plan, saying that the state is making some very tough choices. listen to this: >> and no one should be mistaken, these are really, tough decisions, and going forward, californians are going to have to think very hard about what is it that we want from our university, from our police and sheriff, from our safety net, for the most vulnerable. martha: those are big questions, right? the budget includes a combination of spending cuts and fee hikes that were passed by majority democrats in california, 70 state

parks will close there, $1.3 billion will be cut from two university systems, and welfare grants and aid for the elderly will be sliced. very interesting work that's going on in california right now. gregg: a growing number of americans now losing confidence in the u.s. economy. take a look at this, a brand new fox poll, 59 percent of voters say economic conditions are poor, that's a 10 percent increase from last year, only 35 percent say it's fair. that's a drop from last year. martha: boy, look at those numbers. with the future of the economy in such serious question right now, there are new questions about the future of treasury secretary tim geithner. here's what geithner said about the possibility of leaving his post after warning the u.s. will run out of money to pay its bills august 2nd. listen to this: >> i live for this work, it's the only thing i've ever done, i believe in it,

i'm going to be doing it for the foreseeable future. martha: he also talked about the fact that his son decided to go to school in new york and a strain on the family, so if geithner does in the future step down, nobody knows any timetable on this, he will be the sixth member of president obama's economic team and the last one, really, of that original team who's remaining, if he decides to go, will go. we'll see. gregg: president obama says folks who use corporate jets don't need tax breaks, his latest comment sparking a major blowout on capitol hill, lawmakers fighting over the ballooning debt, demanding the president, quote, do his job, and leading to a debate. is it really fair to blame republicans on the standoff? a fair and balanced debate. we do want to hear from you. take our you decide poll, should take congress take the limit deadline -- debt limit deadline seriously?

weigh in and see what other viewers are saying about that. martha: the casey anthony murder trial is just getting back underway at this hour in orlando, so now the defense has rested, the prosecution will present its rebuttal case. we expect to hear from a few people in the course of all of this. the judge has told the jurors he hope he will hear the closing statements and instructions tomorrow, on saturday. there's been some discussion about when that will actually take place. then it goes to this jury, folks. you know, ask yourself, if you were on this jury and you've watched all of this, where would you come down on this? right now, very unclear when they're going to start to deliberate, whether it's sunday or fourth of july. the judge hopes to wrap things up before then. there's a lot of pressure on everybody. phil keating is live in orlando. and the phil, what can we expect? >> reporter: we've already started the day with fireworks, with of course like every other day and every other legal issue, we

have two very different opinions from the defense table and the state's table. they are arguing over whether the state heretofore can bring in cindy anthony's former coworkers at genteva, they're expected to testify that when she made the chloroform searches via google on the anthony home computer in mid march, 2008, three months before caylee ann anthony died, she said she was home. sher coworkers will testify she was at work at genteva health care, the defense wants to exclude those witnesses from being able to testify because they're feeling a sense of ambush in that they haven't had time to de pose them or look at the work records they have on this, so they're arguing whether that's going to happen, as well as the state's experts who are expect -- experts who are expected to testify if the judge allows it they checked

the hard drives of their home computer and they do not match up with what cindy anthony said on the stand. martha: one thing we did learn yesterday is the jury will not have the option to rely on their noses in this case, all going back to the smell of death and the smell in the can and all that. >> there were a couple of pieces of the spare tire cover taken from the trunk of casey anthony's car when police confiscated it three summers coming. -- ago. according to prosecutors if you open up the canisters it still smells like human de. composition, it smells like death. jose baez absolutely did not want this jury to have that in their room, hey, let's smell this for ourselves, see what it smells that, because that could deny justice and due process for casey anthony to the judge agreed they will not be able to smell those items. the judge thought there was enough testimony regarding the smell that they can go on. and the word we're getting from the judge is we could have deliberations start

sometime saturday afternoon. martha: you know, phil, while you were talking, we're just getting this information crossing out of the courtroom now they are going to move deliberations to after the fourth of july holiday. so we're going to hear the prosecution rebuttal and that process, and then there will probably be some of the instructions and wrapup here. we're going to keep very close tabs on all of this, we'll be going back to phil for the latest in the casey anthony trial, as we monitor all of that, we'll bring you updates as they come along. streaming live on foxnews.com, watch that simultaneously and watch studio b, shepard smith, 3:00 today, wall to wall coverage of the trial, 3:00 p.m. on the fox news channel, don't miss that coming up this afternoon. gregg: those are just some of the many stories we are following in "america's newsroom". coming up, another hidden pitfall of the new health care law as we get through the 2000 page bill. what else might we find out? we're going to be talking to

a republican on the house doctor's caucus. martha: and this story is unbelievable. so we've got brand new details now on how a man from nigeria was able to board a cross country flight with someone else's expired boarding pass. we're going to talk to congressman peter king who is very fired up about this. we want questions answered from the tsa on this issue. gregg: mitt romney is speaking out in front of a metal works factory that president obama taught dollars -- touted as being saved by the stimulus. well, now it is shuttered. will the lagging economy boost his chances for the white house? >> i can assure voters that if i were president of the united states, i would spend every waking moment doing what i could to get americans back to work.

>> the president says he wants to get working. wants us to get working. i can't think of a better way than to have him come right on over today, we're waiting. martha: all right. there you have it. so republicans drawing the battle lines in this debt fight as the u.s. approaches an august deadline before we default on our $14 trillion plus debt. there you see it ticking away here. time is clearly of the essence, the go pment has taken heat for stalling the

negotiations. look at this. >> the main obstacle, and i want to be very clear, to finding common ground is republicans' stubborn insistence on protecting tax-funded giveaways to corporations and individuals that don't need the giveaways. martha: president obama also slamming republicans over the issue of taxes. listen to this. >> if everybody else is willing to take on their sacred cows and do tough things in order to achieve the goal of real decifit reduction, then i think it would be hard for the republicans to stand there and say that tax breaks for corporate jets is sufficiently important that we're not willing to come to the tail and get a deal done. martha: all right everybody. let's bring in juan williams, fox political analyst, david agella, gopac executive director. welcome. juan, this whole situation

just screams out for somebody to seize this moment. you know, i can't help but feel, and maybe this is -- some might argue with this analogy, but you look back to abraham lincoln and the crisis the country was under in terms of splitting, dividing, ending, and i look at numbers we saw the other day that show four or five out of ten people think that america is not ever going to be the way it was in terms of our success. this is such a crucial moment in history and the president is pointing fingers at republicans, republicans pointing fingers at democrats, and people are so appalled at what's going on in washington. >> you're so right, and this kind of goes beyond the moment, but it speaks to the crisis of leadership, that people just think that whether it's leadership on wall street, whether it's our athletes on the steroids and cheating, and what you see in terms of the religious community and crisis over the priests, i mean, people just think the leadership is just not good, and what we're seeing, on this debt crisis, again, as

you point out, finger pointing, blame game, no seriousness. as someone says, no adult in the room. martha: david, talk to me about the solutions here. you know, and what perhaps president obama -- if you were advising president obama, put yourself in that position for a moment, and you wanted him to come out and be, you know, strong in this situation, what would you tell him he needs to say to the american people at this time? >> well, he needs to get serious about reducing spending. it was a very clear message that voters gave in the last election. and this is absurd that the president and harry reid and democrats are talking about raising taxes. look, this administration has raised a billion dollars in new taxes since they came into office. this is not a revenue problem. this is a spending problem. and the president wants to go on and say the people who have jets ought to pay more of the tax, two years ago,

in his stimulus package, he's the one who reauthorized him getting a tax break. the president is not serious about this. he wants to use cheap political lines that traditional democrats use that republicans hate, baby -- that republicans hate babies and puppies, and he needs to get serious about cutting spending. martha: juan, this whole corporate jet thing, it smacks of class warfare and it suggests that -- you know, i would like to hear somebody say that all corporations need to be treated equally, right? let's talk serious tax reform and let's link serious tax reform perhaps to this kind of deal, let's say you know what, across the board, g.e., oil cosoo you know, why are we singling out oil companies, saying this industry needs to be treated differently than that industry? i don't get that. >> well, because the oil industry has such humungous profits. it's out of the proof. they continue to make huge profits. martha: and why is that a problem, juan? why is that a problem? >> it's a problem because it affects the economy when you

see gas prices rise up, this fourth of july weekend people have to pay more, but we subsidize the oil industry, we don't subsidize some of these other industries struggling, so the question becomes why subsidize something that's so profitable. let me speak to something david was talking about. i think there has to be a notion of shared sacrifice. if we're talking seriously about decifit reduction, cutting entitlement spending, doing away with some of the programs that we have that help the most vulnerable in society, why wouldn't we say to those benefiting from the largees of america, you, too, have to share. martha: but they already pay. the top 5 percent of america already pays close to 40 percent of the tax burden in the entire country. >> but martha, you know that that -- in fact, it's 1 percent of the country that owns 50 percent of the assets, the wealth in the country. people who have so much should be able to make some shared sacrifice. let me finish the point. the tax rate right now is the lowest it's been in

almost 50 percent -- 50 years as a percentage of gdp. martha: david? >> juan talks about shared sacrifice. the american people are sacrificing. they continue to get hit with more and more government spending and in turn, what do we hear from the president? we need to increase taxes more. look, omabacare raised taxes one of the things in omabacare is anybody that sells their house after 2013, they're going to pay more taxes. martha: we have to leave it there. >> those over $250,000 a year are going to pay more in medicare taxes. here's the thing. martha: real quick. >> we tax every dollar that millionaires make, guess what, we're still not going to have enough money and where does it go? it goes to the middle class. raising taxes is not going to solve the answer. martha: really a crisis in this country. juan, thank you very much, david, thanks guys. gregg: just moments ago, in the casey anthony murder trial, some surprising new

developments. the trial is now in recess. and the judge is none too happy about it. we're going to show you what happened and try to give you the latest details on this change of fortune.

gregg: fox news alert in the casey anthony murder trial, just as prosecutors were about to call to the witness stand some of their rebuttal witnesses, the judge had to entertain a motion for a recess, and, well, take a listen to this and we'll show you what happened: >> tell the jury that we are being recessed indefinitely. gregg: the judge went on in a rather scolding way to the defense attorney saying if i find out this is an imaginary, not a real

problem, then his voice trailed off. kimberly guilfoil joins us, fox news contributor. explain what happened. >> the judge isn't happy about this. you don't like to keep the jurors waiting. that's the primary focus, to keep the case going and avoid the delay of game and what we're seeing is mr. baez saying your honor, i'm unable to proceed forward because i've not had the opportunity to de pose, question these witnesses to find out exactly what they plan on saying. of course, these are prosecution rebuttal witnesses. the judge says this better not be an imaginary problem, the jurors are waiting to go, and this is a holiday weekend. so weis wanting -- he's wanting to get the sum and substance of what the testimony is going to be, once he feels he's adequately prepared to proceed he will let the joan know, the judge will notify the jurors to come to the courtroom and they will resume proceedings in the case, prosecution, rebuttal witnesses, we anticipate it

will be rebuttal witnesses to cindy anthony's testimony gregg: and some may be computer experts. >> exactly. gregg: and the rule down in florida that if you're calling an expert to the stand and that expert renders an opinion, that opinion has to be disclosed to the other side in advance, and baez is arguing that wasn't done, so at least let me take the deposition. isn't this a problem a lot of states don't have depositions in criminal cases, florida is the exception? and it creates a mess like this. >> it really does. in california, we didn't have this problem. we just give them a witness statement, say this is what the witness intends to say, then you can try and contact the witness, the witness can choose or choose not to speak to you but as long as you turn over discovery, that was efficient, and as a matter of fact, sny anthony was at work, wasn't at home on the computer during the time she said she did and this is going to be forensic records to contradict her

testimony. it's not that difficult to prepare for so it's not the best reason for the delay but nevertheless the judge wants to make sure the appellate record is well in tact and prepared for any kind of appeal which they are going to bring in this case and he doesn't want mr. beaz to say look, i wasn't able to handle it because the judge wouldn't let me question the witness. gregg: we'll turn that sound around from the judge in a few minutes and show it to you. according to a note inside the courtroom, the state's prepared -- was prepared to call some sheriff's office officials who did computer key word searches to prove that cindy anthony, the grandmother of the victim here, did not make, as she claimed in her testimony, searches for color fill or chloroform -- chloroform or chlorofill on the computer. martha: as we continue to figure out when they're going to get back into the courtroom, the jurors, and when this might resume, we

do know that casey anthony as she made very clear yesterday will not take the stand. >> do you understand that it's your decision to testify or not testify -- that your decision to testify or not testify is solely your decision and your decision alone? >> yes, sir. martha: with her life on the line, is that a good or bad move for her? judge alex barr gives his take right after this .

gregg: the prosecution expected to call just a handful of witnesses as testimony in the casey anthony murder trial winds down. anthony choosing not to testify in her own defense. take a listen: >> i have some questions i need to ask of your client. >> yes, sir. >> miss anthony, do you understand, first of all, is it your decision not to

testify based upon consultation with your counsel? >> yes, sir. >> do you understand that your decision to testify or not testify is solely your decision and your decision alone? >> yes, sir. >> and it is your decision not to testify? >> yes, sir. >> have you had ample time to discuss this matter with your attorney, that is, the pros and cons of testifying or not testifying? >> yes, sir. >> and has anyone used any force or pressure in making you arrive at that decision? >> no, sir. >> and that decision is your decision, freely and voluntarily? >> yes, sir. >> okay, thank you ma'am. gregg: a waiver of that right has to be knowing, intelligent and voluntary.

did the defense cast enough doubt on the prosecution's case without her testimony? judge alex barrerra is host of the judge alex show, and he joins us live, judge, thank you very much. the jurors weren't there for what happened that we showed on camera but they will receive a jury instruction and you've probably read it many times to jurors before. we'll put it on the screen, it's standard jury instruction 3.9d, the defendant exercised a fundamental right by choosing not to be a witness in this case. you must not view this as an admission of guilt or be influenced in any way by his or her decision. judge, do you think jurors really do in their hearts and minds follow that instruction, it's not an admission of guilt? >> i think for the most part they do. void dire, i go over this subject and tell them your job is as jurors to determine what the evidence shows, if the defendant were to take the stand, then her

testimony is part of the evidence and you consider it, if she doesn't take the stand, her evidence is not in that pot of evidence, you just look to what was submitted to you in the pot of evidence and decide the case from that, and i think that they do. however, in this case it's totally different. gregg: to hear from the lips of the accused i didn't do it and the failure to do that can subtly and psychologically influence their decision making, don't you think? >> i think that it's something that they definitely think about. i think that they definitely want to hear from the defendant. but you know, we hope, and your guess is as good as mine, but i tend to believe that they will follow the law and we instruct them that they are to look at the evidence and it doesn't matter if they want to hear from them. i want to hear from them, too. if they should look at the evidence and -- but they should look at the evidence and see if it proves the defendant guilty or not. in this tough it's a tough sell that only casey could deliver. gregg: i think a lot of people feel if i'm innocent i'm going to scream it from

the mountaintops at ef opportunity but we'll have to see. >> sure. gregg: i want to ask you about what just happened inside the courtroom. they're in indefinite recess right now, and here is judge belvin perry. >> remember, you all can take as much time as you want, but you got jurors back there, and they have been sequestered, and they are -- there are real problems and there are imaginary problems. and i hope this is a real problem and not an imaginary problem. because i will give you all the time that you need, but if i find out this is an imaginary problem, because

these folks are ready to return to their homes. gregg: judge alex, what do you think? is this going to turn out to be a real or imaginary problem? and i wouldn't want to be jose baez if it's not real. >> i feel judge perry's pain because i've had this happen so many times, the defense does not want the prosecution to get one more shot in, so in rebuttal, they bring up oh, i'm going to need so much time to prepare with this information that wasn't disclosed. most of the time it wasn't disclosed because it came up on the defense's case and they can't anticipate everything, like they couldn't anticipate that cindy anthony was going to say she left work when they had her time card that showed she was at work and she knew all along they were arguing that casey was the one that did the searches for chloroform. they're hoping the judge is going to say look, we're not going to delay closing arguments until wednesday, so i feel his frustration.

gregg: you got to feel for the jurors, they're sequestered over a long holiday weekend and they want to be with family and friends, and it's quite a pickle. judge allen, many thanks, always good to see you. >> thank you gregg. martha: coming up, another day and there is another glitch that apparently has been found in president obama's health care law, this time, why a certain group of americans will be paying a higher cost for their coverage, and what they might do about this. we're going to talk to a congressman on that. plus this: >> the president's time is being focused on playing golf and campaigning and blaming. he should be spending his time and his energy working on getting americans back to work and fixing this economy. gregg: mitt romney slams president obama at a now closed down factory, a site the president once touted as an economic success story due to his stimulus. karl rove joins us with the economy in 2012.

martha: welcome back, everybody. there's fallout today over new reports of fuzzy math inside the health care overhaul, the latest report reveals that older adults who have jobs will end up paying more for their health care coverage than those who don't have jobs, ken murphy, chair of the gop office joins me. good to have you here. >> great to be with you. martha: how did this happen and what do you make of it. >> it's an amazing thing what happens when you don't get a chance to read a bill. basically it works this way, someone can retire at age 262 and someone may decide to work, the person at 62 starts to get social security income, so you can have two people making exactly the same amount of money but if you're getting social security income, about $9000 of that is in tax and doesn't count as your income so on the books

it looks like you're making less than you are and you qualify for medicaid. medicaid is supposed to be there for needy families or those disabled, not for the middle class and it's a big glitch and problem and makes people think why keep working, why continue to pay this tax and go into system. it's a problem that needs to be solved. martha: i spoke to a couple of people about this yesterday, one who is a supporter of the health care plan and he says look, this doesn't affect a lot of people and it's a small price to pay, and it will get figured out when you're talking about covering 30 million people who didn't have health care coverage beforehand. >> here's the bigger problem than that, because you also have people as it turns out that anybody with income, a family of four, who makes under $88,000 will get some additional coverage another way. by the way, that includes every state senator and state representative, that's an interesting concept. martha: really.

>> isn't that interesting, they're going to get supplemental assistance. martha: you're saying -- back up. i want to go over that .1 more time. you're saying there are congressmen and congresswoman across the country who will qualify for medicaid? >> they'll qualify for other assistance under the new health care bill, not necessarily medicaid but other income assistance and that's why you're going to see employers say i'm throwing up my hands. when people talk about 35 million more americans being covered they estimate only 9 million would lose their coverage from their employer. estimates are saying maybe that 50 or 60 or as high as 80 million will lose coverage because after all if you're an employer, you say do i cover my employees with $10,000 per employee or pay the $2000 fine and walk away and a lot will walk away. martha: that's the easy part of the math that was discussed in great detail before this was pushed through congress, and that may be the reality, as we look at it. congressman, thank you very much. >> you bet, thank you. martha: lots to still think about when digging into this health care reform bill. thank you very much, sir.

gregg: new jersey's governor, breaking out the big guns, aka his veto pen, that's what he's calling unconstitutional. we're going to show it to you, tell you about it, how this decision impacts taxpayers.

gregg: construction almost completed now on a giant border fence, stretching across nogales, arizona, the new 3-mile wall is 30 feet high and meant to enhance border security. workers there say the fence has been reinforced so securely that attempting to caught hole in it would take several days. >> how long would it take me to cut through this, make a hole big enough to get me and a few people through here? >> by design, with minimum criteria, it's 15 minutes,

but this fence t. might take awe couple of days. you'd have to switch blades as much as six times. >> we're told the wall will be done june 22nd, border patrol says the real test will come when somebody attempts to breach it. martha: lots of excitement, because prince william and kate, formerly kate middleton, his wife, will make their first official trip abroad as the newlyweds kicked off this trip in canada. they're walking through the crowds and saying hello, they laid a wreath at the national war memorial. the crowds were exeer cheering and smiling as prince william spoke to them. listen to this: >> catherine and i are so delighted to be canada, we love this country, we've been looking forward to this moment for a very long time, and before we were married, we had a longing to come

here together. martha: isn't that nice? already, well, the trip comes on a day that would have been princess diana's 50th birthday today, and that has been marked by a controversial newsweek cover that made big headlines and got a lot of discussion this week. there's princess diana, alive and well strolling down the street with her new daughter-in-law, kate middleton. i spoke with paul burrell earlier about this and what he thought princess diana would say about this picture. >> paul burrell was princess diana's butler and her friend and he joins me now, he's a fox news contributor. good to see you paul. >> nice to see you martha. >> what do you think of this? >> i think you're right, it's haunting, and quite disturbing in many ways, because this is sen sigsallism, and i think it only serves to upset william and harry. martha: i think you're probably right about that, but when you go into the magazine, there's also pictures of diana holding an

iphone, and she's digitally aged to look about 50 years old, she still looks beautiful, in all of these pictures, and she does -- in some ways, paul, it is quite intriguing, and in a way it sort of allows all of us to say oh, wouldn't it be so lovely if she were still here and this is what she would be doing in other life. it speculates on all those things. what do you expect she would be doing today? >> we're are intrigued and we do want to know what princess diana would be doing today but we don't need to see it digitally enhanced in our faces. it's nice to remember those things. i -- she sundays said to me, i've got so much baggage, who's going to put up with me, so she would have been still single, but what this piece says, of course, is the fact that kate would have been the daughter that she never had, and i think that's a nice sentiment. martha: you know, tina brown also says in this piece, she thinks that diana would have been just slightly jealous

of the attention that kate middleton is getting. what do you snng. >> no, i don't agree with that at all. this is a woman, tina brown, who met the princess once. once. for lunch, and she managed to write a book about her life and an article in newsweek. she's wrong. tina brown is wrong. kate would not have been jealous of diana, or vice versa. diana would have embraced kate. >> there's also a facebook page that is create -- created as if it were diana's living facebook page and on it says diana is now friends with camilla parker bowles, would that be the case, she's also going back and forth on facebook with sarah ferguson, what do you think about that? >> we have to remember, if diana is alive, charles would not have married camillera bowles, he couldn't have married her with an existing wife so camilla would have been out of the picture and would they have been friends, i don't think so. this woman caused dianaa a

great deal of -- diana a great deal of stress, a great deal of tears went under that bridge. >> and as much fun as some of these pictures might be to look at for people that miss diana and wonder about these things, you think the boys would be very unhappy about it. >> i think they would. i think they want to remember their mother with fond memories of the way she was, not as she is now because she's not here anymore. we have to get over that. of course we all talk about diana because i like to share my memoryies with diana of all those years because it's a privilege to do that, but not to do this and leave her alone. martha: you know, a couple of thoughts on this cover. i think that tina brown is trying to turn around newsweek magazine, for one thing, and she has said that she feels in the past, the magazine really fell off its mark by not having great photography that draws people on the cover, tina brown was well known for a focus on photography, so this is an interesting

picture, she accomplished getting everybody to talk about it for sure, and it does sort of give you an interesting window. i think in many ways, i think princess diana would have embraced all the sort of social networking things and twittering about her human rights causes across the globe and using her iphone and being part of that whole humanitarian scene. i think it's probably spot on. gregg: i think she would have used it to help her causes, such as aids in africa and other human rights causes. but i actually think it's pretty interesting, whether you agree with the cover or not, you know, newsweek last year sold for a buck, it's such a mess, that this is what they're trying to do to kind of turn it around, sell some magazines. maybe it will work. martha: i bet it's going to be the best selling issue in quite some time. one thing about prince william, he is achieving something very large for the royal family. that turnout in canada, let's face it, it would not be what it is if prince charles and camilla had showed up, it would not be

on the tv stations or across the internet. this couple is renewing interest in the royal family in a way that diana would i think love, and to see her son on the stage like that, the international stage, with this beautiful new wife i think is just a plus all around. gregg: referred to as catherine. princess catherine. kate. martha: absolutely. interesting stuff. >> ♪ >> ♪ >> ♪ >> ♪ >> gregg: this is one of those one and only stories. you're going to love this. ashton kutcher, today, responding to a los angeles police department request that he and other celebs who used -- use twitter to warn about an upcoming highway closure, pooing l.a.p.d. asked me to tweet, 405 freeway, between 10 and 101 will be closed july 16th-17th, and in exchange, i would like a

free pass on that stop light ticket that was yellow! >> and the l.a.p.d. is asking people with large twittering followings, he has the biggest, to help get the word out. they're worried it will be a traffic nightmare in los angeles. a traffic nightmare in los angeles a is redundant. martha: maybe they don't need the p.r. department anymore. they can get the messages out with ashton kutcher and save money, perhaps. the circus that is the casey anthony murder trial with more twists this morning. now the judge has recessed court indefinitely on the cusp of this holiday weekend. imagine what the jurors think about that. geraldo joins us live outside the courthouse and the spectator who will spend six days in jail for what he did inside that courtroom. coming up, more from "america's newsroom". we'll be right back, folks.

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bill: a "fox news alert." recess indefinitely, in the casey anthony murder trial. a stunning twist this morning, prosecutors and defense attorneys having yet another legal dispute, leading the judge to put proceedings on hold, until further notice. >> remember, you take as much time as you want. but, you've got injury recordings back there. and, they have been sequestered. and there are real problems and there are imaginary problems. and i hope this is a real problem and not an imaginary problem. martha: all right. the word from judge perry and that is a brand new hour of getting started of "america's newsroom," good to have you with us this morning, everybody, i'm martha maccallum. gregg: i'm gregg jarrett in for

bill hemmer. this is the case elatest in stl- in the series of disagreements and geraldo rivera joins us, from outside the courthouse, jose baez thought he was going to be sandbagged by prosecution rebut witnesses whose opinions he didn't know in advance and that is a rule to disclose those and is that what is really going on here? >> reporter: yes, you know, whether or not there is sincere disquiet in the defense team as to the fact they don't know what these rebuttal witnesses are going to testify to, or not, that is not the issue. the legal issue, gregg, you hit it on the -- the nail on the head, the defense has to get a chance to depose these witnesses ahead of time, and baez, indeed was criticized harshly in open court for trying the same thing, bringing on a witness the prosecution didn't know he was going to bring on, and, you know, without notice, without

giving the prosecution a chance to depose them, out front, so the judge really, despite his displeasure, was locked in, legally speaking, and baez had it right, there are two different issues, one is, can the state bring on a rebuttal witness to show that cindy anthony, the grandma was not telling the truth when she said she did the computer search, for chloroform. that is one issue and the other rebuttal witness is a forensic expert, who will testify that the defense expert werner spitz, who said it was a shoddy autopsy, and never tested little caylee's remains, to see whether or not it was possible that she drowned, they would rebut him. again, baez says, wait, are these guys, first of all, qualified to rebut my expert, and, second of all, what will they say and the judge locked in and he was going to make today an easy day, give them off on saturday and then, gregg, have closing arguments on sunday. so, now, the off day tomorrow,

saturday, looks like it will be still action-packed, in that courtroom, the attorneys for both sides, defense and prosecution, will not have a lot of time to prepare for what promises to be the climactic, dramatic closing arguments that sum up both sides' cases but that will happen on sunday, and that means the jury will probably be deliberating on the fourth of july, my birthday... have 100 people at my house, and i'm here. but, i believe that then we will have a verdict, sometime after tuesday morning, the 5th. gregg: geraldo, i want you to whi in on what appears to be happening in lower manhattan at a court hearing. word the sex assault case against the former imf chief, dominique strauss-khan collapsed, and, here's "the new york post," quotes a law enforcement source, she, referring to the accuser,

continuously lied to us and is not a credible witness. she cannot be put on the stand. she's a flawed witness. what do you think will happen here? >> reporter: well, i think the case is in serious jeopardy and will be dismissed and they are trying to scramble to get him to plead guilty to a low level misdemeanor, and he clearly had sex with the woman. a quick story. i have a buddy, lives on the west coast and had a bride from overseas who was an immigrant here, without documentation, and, suddenly, she alleges that my buddy was guilty of some kind of physical abuse. and turns out, that if you say, an immigrant here, a female and you claim an allegation of sex abuse, you can't be deported until the case is litigated, and it turns out, this is the new immigration racquet, women say they were raped an abused by their american husbands and then, stay here despite their

immigration status until the case is resolved and oftentimes have settlement with these hapless men and get their houses and i think this is a classic case, this domestic employee there, at the hotel, she sought asylum claiming a rape charge, typical of the scenario, the immigration scam they pull, also, it turns out, that as soon as she made the allegations against dominique strauss-khan she was in communication with very shady customers, drug dealers who apparently have given her up to a $100,000 in cash, to bank roll her during the time she is moving against this rich and powerful french politician and i think the whole thing is a scam and the nypd is embarrassed by their rush to perp walk the guy and now are trying to scramble to save face. gregg: bloomberg reports what happened inside the courtroom, he has been, dominique strauss-khan is now to be released on his own

recognizance. which speaks volumes about this case having collapsed. she could be deported, charged first with a wide variety of crimes, if it's not true. but i will quote one other law enforcement source, who says, referring to dna evidence, in the room, sex definitely happened that day, who knows what happened? so, it may have been consensual, who knows, that is what ben brafman, tried to argue, indirectly in the courtroom once before and geraldo, rivera, thanks very much and he'll have complete coverage of the casey anthony -- happy birthday, by the way, will have coverage on the casey anthony trial tomorrow, 10:00 p.m., eastern time, only on fox. martha: we'll be at geraldo's house for his birthday! looking at oil prices, you know they are now surging, flirting with $95 a barrel. back to where it was nearly a week ago. when president obama opened the

national strategic oil reserves in an effort to put downward pressure on prices. fox business network's eric bolling was here then and talked to bill hemmer and said, the effect on the market wouldn't last. look at this: >> it is a knee-jerk reaction but it is shortsighted. we need to drill our own oil and getting energy independence, rather than relying on a fuel source that we may need someday. martha: told you so... gregg: a little later in that same interview... >> i said it would last a few weeks, maybe a couple months and little did i know within one week the oil prices -- take it through the system, $94 a barrel, last thursday, when they said we'd release 30 million barrels from the strategic petroleum reserve and prices went from $94 to $89 the same day. and we talked about that and i said bill it will not last an sure enough, 6 days later, as high as -- yesterday were $96 a

barrel, higher than prior to the release. the point is, you can't throw a few barrels on the markets, remember we use 20 million barrels a day and they only released 30 and the world uses 80 million barrels a day and, threw a few barrels on the market for a -- look this way, don't -- >> it didn't affect the prices. >> it is more an emergency and, prices were already coming down and what they did is turned the direction of prices, prices were falling and they put a bottom in the oil market. oil prices will head straight up for the rest of the summer because they are a tinkering with the market. let the market be. step aside with the supply and in and and for god's sake drill more oil. that is the one way to really bring prices down. martha: all right, so, eric, as if you don't have enough to do, now you will be doing "the five", and everybody said, what will happen to "the five" after glenn beck leaves. what is it. >> an opinion show, first and

foremost, a roundtable, a panel discussing the issues. we'll debated and debunk and throw it around for an hour and inform and have a lot of fun doing it, a great group of people and i'm lackilooking for to it. the five and eric bolling, great cast and crew involved in that, look forward to it. thanks, eric, gregg, back to you. bill: thanks, martha. a massive wildfire threatening the nation's prime nuclear laboratory in new mexico. and has just become the largest fire in state history. flames torching more than 100,000 acres so far, about the size of albuquerque, new mexico's largest city. and dan springer is live in los alamos. is the lab still the end? >> reporter: well, i would say that it's not threatened anymore, though they are not saying 100% certainty, they are saying this lab is --

all-important lab where the first atomic bomb was developed as part of the manhattan project, is probably going to be in the clear. they say that there was about a 10% chance that they'd lose containment and have the lab affected and that was yesterday and and all-important day yesterday with the winds whipping up at 45 miles per hour, but, now they are putting it at a chance of this fire line being breached and the lab being impacted at only 1% and some people say it is less than that but the winds will be lighter today, and, that will be a big relief to the 1200 firefighters on the blaze but 4% containment officials are a long way from claiming victory though this has been a very erratic and dangerous fire and part of the most dangerous fire season, this state has ever seen. and as far as the people who will be coming back, to these neighborhoods eventually, they say it probably will not take place until sunday at the earliest and a lot of smoke in this area and the fire has been pushed further north away from the lab and the city of los

alamos, gregg. gregg: dan springer, thank you very much. martha: eric holder ordering a criminal investigation of the cia and somehow that announcement managed to make folks on the right and the left, some of them, angry about this, the latest move by eric holder. we'll talk about that, coming up. gregg: and a nigerian man with no passport and a bogus boarding pass, able to fly from, get this: new york to los angeles without a second look from airport security. meanwhile, grandma is getting strip-searched these days and so are toddlers, getting pat-downs, and peter king chairman of the house homeland security committee and he'll join us live with calls for an official probe of the tsa. martha: one of the cra the craz stories of the week and, we'll talk about mitt romney, taking aim at president obama, from a factory that was supposedly saved by the stimulus package. >> the plant has been open 100 years and survived the great depression, it couldn't survive obama economy.

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♪ ♪ and they're closing all the factories down...♪ gregg: billie joel singing about allentown, pennsylvania, and mitt romney is using that as a back drop for a shut-down factory, to slam president obama's economic policies. particularly the stimulus. he's speaking at the site of a

once booming metal factory. >> president obama visited here a year-and-a-half ago and indicated it was a symbol of the success of his stimulus program. and as you look around and see the weeds growing and the windows boarded up you can recognize it is more a symbol of the failure of obama economic policies. the plant here has been open 100 years. it survived the great depression. it couldn't survive obama economy. gregg: the former massachusetts governor is of course referring to that trip president obama made to the same factory in 2009, where, the president touted the success of his massive $787 billion stimulus package, take a listen: >> president barack obama: i was talking to the governor, before we walked in and he's got a whole series of charts, about how much more steel is produced in pennsylvania because of the recovery act. how much more infrastructure spending is taking place out

here. putting people to work, doing the work that america needs done. gregg: karl rove, senior advisor and deputy chief of staff to president george w. bush, and is a fox news contributor. karl, good to see u let's put our own fox news poll on the screen, the stimulus is still not popular, 46% say it made no difference. 23% said it hurt. but, look, i read your op-ed and you are giving advice to the g.o.p. nominee. the g.o.p. nominee should fiercely challenge mr. obama's policies and actions using the president's own words, you wrote and that is precisely what mitt romney is doing, isn't it. >> i thought it was a smart move on his part to do the research and find out the plant was closed and go to the exact place the president went to tout the success of stimulus program to point out the underlying philosophy of it, we can somehow, as a nation spend our way to prosperity, is not -- has

not worked out and a smart move on his part and to do it the same day the president was a few miles away in philadelphia as smart. gregg: and on what to do and not to do, on the latter you say the nominee should not adopt a tone that is harshly negative and personally anti-obama and you say it will alienate people who are prepared to swing away from president obama and i wonder if, at the same time, mitt romney crossed the line and violated your suggestion: listen to this: >> the president's time is focused on playing golf and campaigning and blaming. he should be spending his time and his internalenergy getting s back to work and there's a big issue coming up with regards to the debt ceiling. the president ought to be in washington, meeting with republicans. meeting with democrats, he shouldn't leave that town, until he has an understanding of what it will take to get the economy

going again and deem with the fiscal crisis the country faces. but, he's here raising money for a campaign. doesn't even have a primary o t opponent. gregg: isn't that negative and anti-obama. >> it is exactly the right tone, take the president's actions and hold him accountable for them and he's right. the president made a conscious decision he was going to put his emphasis being on a campaigner rather than being president and i went through this in '03 with president george w. bush and i think at this point we had three fund-raisers and president obama has had i believe the number is 29. and the president's tone is harsh and negative about the republicans, and when his press spokesman yesterday dismisses an invitation for the president to meet with senate republicans to talk about the debt ceiling by saying, this is not a conversation we're having, it shows the white house has got a negative tone, harshly political, and, prematurely political, and the president ought to be the president for next 12 or 13 months, i thought the governor's appearance was

apple pie-spot on. he hit the right tone, regret, disappointment, not questioning the president's motives or patriotism or his, you know, commitment to the country, but, saying, his policies failed. gregg: you also argue republicans cannot play it safe. they have to set forth their own governing agenda. haven't they really done that? is the agenda laid out by many republican leaders is reduce taxes and the burdensome regulations and reverse obamacare and create the condition to grow jobs and the economy. isn't that their agenda? yes. the broad brush strokes of the agenda are there but each candidate has to have a -- has to find a way to talk about the specific things they'll do, plenty of time to do it, 16 months until the presidential election and defend them in the face of negative attacks by president obama, for example, in january, president obama went to the house republican retreat, and referred to congressman paul ryan's suggestion about medicare premium support as a serious suggestion and then got into the

full campaign mode and someone got him to sit in the front row of a speech where the president trashed the proposal and called it not a serious proposal. that is the kind of thing republicans will have to be willing to stand up and say, here's what i'm for and mr. president when you come at me with respect i'll respond. gregg: karl rove, thanks for being with us and we hope you have a great july 4th holiday weekend. >> you bet. same to you, happy independence day. gregg: thank you. martha: another guy who would like to have the white house job, is tim pawlenty. i talked to the former minnesota governor about his presidential campaign and also get his take on how president obama is handling the debt crisis. tough situation going on right now, this weekend. gregg: plus, three feet under water, and a shark sinks its jaws into the little girl, her frightening story in three minutes. >> i felt something pulling on my leg. it didn't hurry t at first. it pulled me down and it hurt. >> when he pulled her out of the

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gregg: welcome back, a young girl getting a shark bite with a souvenir. ten-year-old cassidy was standing in three feet of water when a small shark chomps down on her leg. >> i felt kind of like... a big like, like bite and it let go and it bit again. it hurt. >> nobody ever told me. had i known i wouldn't have let her in the water. gregg: it apparently happened in north carolina and cassidy rushed to a hospital and doctors were able to save her leg. they wound up finding one of the shark's teeth when they sewed her up. no doubt she's hanging onto that one.

martha: make a necklace out of that, save it forever. live inside elections headquarters, a poll on the g.o.p. contends, you have former massachusetts governor mitt romney, leading the pack, presidential preference, and has 18%, and on the other end, former minnesota governor, pim pawlenty lagging with 3% and i spoke with the former governor and we sat down yesterday to talk about these numbers, a little bit, take a listen: >> we're glad to be joined by former minnesota governor, tim pawlenty. good morning, governor, good to see you. >> good morning, martha, good to be with you. martha: i'm sure you would like to be at the top of those poll numbers, so what do you say about the fact you are grouped with huntsman and newt gingrich? >> i few things, one, it is good there is not a prohibitive favorite and gives lesser known candidates time and space to make or case to voters across the country and two, when i give my record in minnesota of reducing taxes and spending, and doing health care reform the right way and many other things before republican voters, we get

more support, so there's a hopeful sign there. and, lastly, this is only beginning. it is like being in the warm-ups, pre-season and the real campaign will start here shortly. and i think you'll see the numbers move as we get into the fall and early winter. martha: some people say that the republicans' side needs a very strong, kind of contrast person on the other side. and that they want to see somebody who, you know, is more forceful. in terms of their message. and you tend to be, you know, talk about it as a nice guy, and, all of that stuff, but, does that tick off at all? >> well, i don't think there is anything wrong with being a nice guy, but, you also have to be strong and if you look at my record in minnesota, there is no democrat or no folks in minnesota who say i wasn't strong, the first government shut down in 150 years and set a record for vetoes and took more money out of this budget using the executive powers than all the other governors combined in me state and fought big battles and won most of them and so a lot of folks talk and the real question is, what are your results and if you look at the

record that i have, i would put that up against anybody in the field and then some and it isn't a matter of flapping your jaw, it is about getting stuff done and do you have the fortitude and resolve to do that and my record reflects that i do and people will look at that in the end. martha: given that, you see rick perry, who has not announced that he is running for the g.o.p. nomination. second place, there with 13%, what goes through your mind when you see that? what is he doing right and what am i doing wrong, perhaps? >> i think of rudy giuliani and hillary clinton. because, in the last election cycle, most of these location cycles, with all due respect to your poll they don't really predict the winner, they are almost always wrong in terms of indicating the event chul winner and everything changed, as it almost always does and to suggest the polling in the summer before the election year predicts how it may go is mostly speculation. so i'm actually optimistic about this, because, i'm not as

well-known that's other candidates and as i become well-known we'll see those numbers move in a positive way for my campaign. martha: i know you are work, hard at that, out there, campaigning in a very serious way. i'm curious, for someone who would like to see themselves in the position president obama is in now, what you thought of the news conference and how he dealt to it folks in congress and they were not getting their job and he has been accused of not being n thpr handled that? >> i listened to it and obviously he was scolding the congress on a partisan level but when you look at his record of not engaging on the big issues of the day, i mean, this is a country that is sinking, martha, drowning in debt, one of the major issues of our time, and you cannot find him, in terms of leadership or specifics on how we'll fix social security, how we'll fix medicare, how we'll fix medicaid, when he announces big, even military or national security initiatives, like the

draw down in afghanistan, coincidentally timed with the election cycle and when he announced the surge in afghanistan he simultaneously announced a date for withdrawal to placate the left wing of his party and he's the campaigner in chief with all the words but when it comes to actual ruts and willingness to lead -- results and willness to lead but when it comes time to take action, he's missing. martha: he'll be talking about, i suppose, in the coming months. gregg: whitey bulger is accused of killing at least 19 people while ruling boston's under world with a tough fist, i pricey ride to court for a man who had $800,000 stashed in his apartment. martha: a spectator in the casey anthony trial, part of the action, a gesture that landed

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sources that the sex assault case against the former imf chief is collapsing, falling apart. there's word from one lars foant source that prosecutors no longer believe the accuser, one is quoted as saying she continuously lied to us and is not a credible witness. so strauss-kahn is expected

in court within the hour. we're going to bring you any developments as they happen. martha: let's take a look at some of the other top stories in "america's newsroom". a tornado touching down in texas near the border with mexico, the twister tore the roof off of at least one building and serious damage to several cars. fortunately there were no serious injuries involved. the next nba season is now in jeopardy. say it isn't so. the league's owners locking out their players after the two sides failed to reach a new collective bargaining agreement, and new outrage over -- the coast guard flew whitey bulger to court. no word on why they couldn't just drive there. good question. gregg: a big budget mess, reigning on # had -- fourth of july in minnesota, on the

eve of the weekend

. >> mike tobin, live in chicago, thank you very much >> martha: attorney general eric holder now opening full criminal investigations into the deaths of two detainees in cia custody. the justice department finished reviewing 100 cases in which agency officers interrogated suspects -- they were interrogating the

suspected terrorists i should say after 9/11 but only found cause to pursue. now at this point, two of these cases that resulted in deaths of those who were interrogated. khalid simpson joins me, deputy secretary of defense for detainees, also senior legal fellow for the heritage foundation. welcome. >> happy fourth. martha: happy fourth to you too. this has been a really controversial case, eric holder basically stuck his neck out early in this administration, his tenure, and said he wanted to investigate members of the cia who had carried out interrogations of terrorists that he believed was unethical and possibly illegal. now they've let go of almost all of those cases and now they say they're going to pursue two of them. how do you view this, is this a good move or would you like to see the other two cases dropped as well? >> i think this is long and coming to get to the point where they can decide not to go forward with those 100 cases, and quite frankly, most people forget that it

was attorney general michael mukasey who put john did yourham, the prosecutor, on the issue of whether a crime was committed between the -- when the tapes of the accused detainees were destroyed. insofar as the investigation of these two detainees who died back in 2002, 2003, it may be warranted. they've been looked at before, but john did yourham is a thorough and fair prosecutor and if he thinks there's a there there, he should do it quickly and resolve it one way or the other. martha: as you point out, the two cases that remain were investigated during the bush administration, they were dropped, but eric holder wants to continue to pursue those two cases and as you say, there may be justification for pursuing those charges, and we'll see where that goes. what about the big picture at cia? you know, given the fact that eric holder made a couple of moves, we all remember when he wanted to hold the trials of the accused 9/11 terrorists here in new york, he lost eventually on that endeavor,

then he wanted to interrogate these cia officers, as well, ended up losing basically or dropping the whole thing, eventually. how do you think he's doing? >> look, at a point in time, martha, where we have more and more terrorist attacks, attempted in our country, from domestic sources of al-qaeda plants, we want our national security and counterterrorism professionals not to be looking behind their shoulder, wondering whether the next administration is going to second-guess their moves that were authorized by law in the doj lawyers, and so i think it's demoralizing, it has been demoralizing for some of these folks, some of whom i know. going forward i hope they feel like the cloud is away from them. but we can't keep going two steps forward and three backwards in terms of giving them the green light to do what is lawfully correct and right for our country. martha: does any of this has to do -- is it a coincidence or not that general petraeus was brought in and confirmed yesterday as the new head of

cia and he says he wants to be a champion of these agents and these assets? >> what's not clear yet is when did yourham finished his -- durham finished his report and gave his recommendation to holder. we know when holder made an announcement, which was yesterday, and i think that may have been timed in a way to give panetta some running room at dod and petraeus running room, given his testimony at his confirmation hearing, to look forward, not backwards, at the agency. martha: very interesting. and it's an interesting look at the tenure so far of eric holder. cully simpson, great to talk to you. >> thank you. gregg: a shocking security breach at one of the world's busiest airports. just how did a foreign citizen fly across the country with somebody else's expired boarding pass? and no valid passport. chair of the house homeland security committee, peter craning wants answers and he'll be joining us next. martha: the judge in the

casey anthony trial, suspending court indefinitely this morning. what's going on with that? as we learn that the jury will be deliberating through the fourth of july weekend. they must be happy campers in that deliberation room! all that coming up, after this.

gregg an observer in the casey anthony trial now headed for the slammer himself, 28-year-old matthew barth let was a spectator -- bartlett was a speculator when cameras captured him flipping the bird at prosecutors, he was dragged out, charged with contempt of court, then brought back in to face the same judge from the anthony trial. >> and what does that symbol that you are projecting with your fingers -- >> using my middle finger, and i'm sorry. >> okay. and what does that mean, sir? >> when you extend one's middle finger? >> the f word to someone. gregg: yeah!

bartlett is a waiter at tgi fridays where he's not going to be serving cocktails tonight. the punishment, six days behind bars, and more than 600 bucks in fines. martha: all right. demanding answers from the agency in charge of america's airport security, this story is unbelievable. a stowaway was able to sneak through security, not once, but twice, a nigerian man with no valid passport, and get this, an expired boarding pass, made it through a tsa checkpoint at new york's kennedy airport last week. then he boarded a flight with an expired boarding pass that had somebody else's name on it, he flew to los angeles, spent a few days in the fun, then got back through security at lax and took a flight to atlanta! he only got caught after being busted with another bogus boarding pass, so that's three. i believe he had ten of these on him.

new york republican peter king, chairman of the house homeland security committee, joins me now, he's calling for an official probe of this breach. congressman king, welcome. we have you on the phone this morning, thank you for being here. >> you're very welcome, thank you. martha: i've been through a lot of airports, and recently with my kids as well, every one of us gets checked, they look at my ten-year-old son and doublecheck his nail and his passport and his boarding pass. how on earth did this happen? >> martha, i have no idea. in the past, i have defended the tsa at times when they're under attack. this is absolutely indefensible, the most basic requirement is to check the name on the boarding pass with the name on the i.d. i'm not talking about a forged i.d., not talking about any attempt to sneak through, he handed them a boarding pass of one name, stolen, lost, found, whatever, then his own i.d. which had a fully different name on it, so the tsa failed in this mission, but then the airline itself, how

you can get on a plane with the wrong boarding pass, a plane for another flight on another day, this case is more un-- has more unanswered questions. but bottom line, i have a great respect for john pistow, head of the tsa, but i sent him a forceful letter that an investigation be done and he report back by july 8th, how this happened, how it was allowed to happen, what disciplineary action will be taken. martha: were people fired? i would assume if people accepted this boarding pass, they've been fired. >> i would hope so, but i don't know. no one is being very forthcoming about this. and i would hope also the fbi is going out and interrogating all of the people on the board -- questioning all the people whose names are on these ten boarding passes that were found, and what's going on, was this person testing the system, is he a prank sister or is he someone who's testing the system or what's happening, is al-qaeda watching us? >> martha: it's so preposterous.

i also remember a recent time when they said to us, they checked our whole family and everybody had to go through the scanners, they said what's going on, they said we're doing all families today. what on earth is tsa doing? i know you struck up for them, and this is a public entity, and you just -- it raises so many questions. you've got this woman who's 95 years old who had to be completely searched the other day. who's using their heads out there about how they're doing this? >> obviously changes have to be made, there have to be improvements. we do face serious threats and people in wheelchairs, suicide bombers are using them, there was one in baghdad last week, so they spend all this time on this # five-year-old and spending no time with a bogus i.d. and boarding pass makes no sense and that's what john pistow is going to have to address. martha: if they don't address this and these people are reprimanded or fired, i don't know why anybody should have faith in the work they're doing. i hope you'll follow up on

your investigation and what you hear back on this. >> we've raised a tough priority and besides asking pistow, my investigator is working on it full-time. martha: we'll follow up on this with you next week. >> happy fourth to you. martha: thank you very much. gregg: let's go down to the newsroom, see what's happening on "happening now", julie banderas standing by. >> i'm jalie banderas, "happening now", an all-star guest lineup on the casey anthony murder trial. of course we're all watching that. right now the defense is questioning the rebuttal and the so-called nuclear option the president might trigger over the debt crisis. wait until you hear this, and you can weigh in, too, go to foxnews.com/happening now and click on the america's asking tab to be hard. we'll see you at 11:00, top of the hour. gregg. gregg: we look forward to that, thank you very much. martha: a live look at the courthouse, downtown new york. what a turn this story has taken. he's about to walk out, dominic strauss-kahn, who

pledged that he was innocent. there was discussion of consensual sex in this case with a housekeeper at a fancy new york city hotel, basically nobody believed him, everybody chanted and screamed at him, "shame on you" on his way out of the courthouse, he's now about to be set free in this case, the prosecutor said the whole thing fell apart. it's an incredible turn of events in this story, and now a lot of questions about whether there was a rush to judgment against dominic strauss-kahn. there he is. this is taped. that's video from last time he walked in, i believe. >> and the authorities were so absolutely positive that dominic strauss-kahn had committed this, they said that their faith in the witness -- >> martha: i'm sorry, i'm told this is live. >> right. so shortly, the judge will be determining whether or not he'll agree to what prosecutors have reportedly agreed to, that is he is be -- can be released on his own reconnaissance, which is

obviously led by the latest report that we're getting from the -- that the prosecution has no faith whatsoever in the accuser. so we're going to continue to follow what's happening here. martha: be right back.

gregg: a brand new survey finding america sinking when it comes to offering a friendly regulatory environment for new businesses, while some of our toughest global competitors scoring very high marks on the world bank's annual doing business survey. here as part of our series on ten ways to save the economy, james rosen in washington. hi james. >> reporter: good morning. president obama says his administration is engaged in a quote unquote unprecedented effort to determine whether as he put it there is a tangle of regulations out there preventing businesses from growing and expanding as quickly as they should, unquote. by all accounts, easing regulatory burden on the

business classes here at home is critical to america's ability to compete in the global economy, the most recent analysis by the world bank showed 85 percent of the world's economies have taken steps over the past five years to make it easier for local entrepreneurs to operate but the u.s. has declined a bit in this category. according to the world bank's annual doing business survey, singapore last year and for the fifth year running was the easiest place in the world to do business in terms of regulations, second, hong kong, new zealand, followed by the u.k., with the u.s. rounding out the top five. two years ago the u.s. ranked number three. >> the gap basically between the european countries and america is shrunk dram dramatically in the last ten years and particularly in the last three years. i cannot tell you how badly we will fare once the financial regulation that was passed last year will have been implemented.

>> reporter: among the fiercest competitors are the so-called bric countries, brazil, russia, india, china, the last two, india and china, rank among the top 40 improved countries over the last five years in terms of their business climates. now, taxes are considered part of regulation, gregg, and in that category, would you care to guess where we stand? i'll tell you, number 62 in the world in terms of taxes. gregg: i was thinking it's kind of close to the bottom. james rosen, thank you very much. >> all right gregg. martha: all right, what a turn of events in this case, dominic strauss-kahn, awaiting his court appearance, there he is, he's going to come out with a big smile on his face. it looks like he's going to be released after the prosecution case against him falls apart. we'll be right back.

gregg: that's going to do it for us t. hope i -- hope you have a great holiday weekend, happy independence day to you. martha: thank you! happy fourth of july to you at home, happy independence day. have a great time with your