bill: let's get started now. good morning, everybody. a problem of massive proportions. europe's debt crisis spiraling out of control. the s&p threatening to cut the credit ratings of 15 countries in the eurozone and that's a downgrade that could potentially threaten the entire u.s. cone my. oh joy, good morning. i'm bill hemmer. how are you doing today, martha. martha: is that all? good morning, bill and everybody. i'm martha maccallum. our treasury secretary tim geithner is heading overseas fire russly trying to work out some kind of major deal with the european finance ministers. bill: could the bailout money be your money? fox business network stuart varney leading the coverage. what is the answer to that question? >> yes it could. american money could be involved in a bailout of europe. here's why. in june of 2009 when the president signed the stimulus plan into law, it contained a provision under

which up to $100 billion of our taxpayer dollars could be made available to the imf for use in this kind of bailout. no further congressional authority is required. the money could be made available by the president right now for that kind of bailout. bill: wow! washington is clearly inserting itself into this european issue. why are joe biden and tim geithner in europe? >> first of all, tim geithner is all over europe. right now he is in frankfurt. he is meeting with the head of the european central bank. this afternoon he goes to berlin. tomorrow he goes to france. thursday he goes to it tally. he is meeting all the key people because he is pushing for a rescue of europe. they do not want to see europe go down because that would negatively affect the united states. so president obama and tim geithner moving heaven and earth to make sure there is a bailout. and our money may be involved. bill: are we making promises? what could we do? >> we don't know. we do not know what

secretary geithner is saying in these meetings. is he dangling american cash as an incentive to get a deal done? we simply do not know that. the administration has said our tax money is not, further tax money is not going to be involved in europe. bill: you just made this point. >> the money is there to do it. bill: that the u.s. does not want europe to go down. it is an election year in 2012. if that were to happen, with would happen to us? >> okay. the president has to make the case, is it better for us to bailout europe with our taxpayer dollars, or, to let europe go under? what is in america's national interests? bail them out to stop a depression over there, or not bail them out and save our taxpayer money? a remarkable political equation you have to work out. bill: stuart, thank you. see you 9:20 on fbn well-done. martha. martha: tough situation are it us to be in. how bad is the situation in the united states compared with some of these very

troubled nations that are our friends and allies in europe? here is a list of each country's debt and how much they owe compared to their gross domestic product that. is very indicator of the strength of any economy. a low ratio means a country is in much better position to pay back their debts of course. a high ratio means they're in a lot of trouble. all the countries have debt-to-gdp ratio better than 100% or higher. greece leads the pack, 165% debt to ratio. just to give you an idea, around 60% would be a healthy economy. look at united states though. we're at 100% of our gdp to debt ratio. this is very, very tenuous position for us to be in at this point. look at our debt. we have the biggest debt of all of them at $15 trillion in our debt. so this is a very tough situation for us. bill? bill: 100% worth, you're right, martha. new this morning, also, these clashes erupting in greece during the visit from vice president joe biden. police firing tear gas at

protesters in athens. those demonstrators angry over austerity measures certainly coming. biden causing a bit of controversy while introducing treasury secretary tim geithner at an event with greece's president. the vice president, joking that u.s. taxpayers could come to the bankrupt country's rescue. roll it. >> this is representative of the treasury department brought hundreds of billions of dollars [laughing] bill: that joke not sitting well with many in the u.s.. martha: we'll take a look what is going on in iowa, folks. the iowa caucuses, exactly four weeks from today. and a new poll finds newt gingrich with a very solid lead in that all-important state right now. he's got 33% of the vote according to these latest numbers, nearly twice the support of his next closest competitors. mitt romney and ron paul tied at 18%.

rick perry only one with numbers in that race. newt gingrich is coming to new york city to take part later this month that donald trump will moderate. that is getting a lot of attention as well. >> donald trump is a great show man. he is also a great businessman. if we're trying to figure out how to create jobs i think one of the differences between my party and the other party we actually go to people who know how to create jobs to figure out how to create jobs and so i, when i was asked whether or not i would be willing to be in that kind of debate i automatically said yes. martha: trump says he plans to endorse a candidate after that debate even though he still said might consider running as an independent candidate himself. coming up does an endorsement from trump matter to voters? we'll talk to larry sabato. bill: i think that would be a great meeting to attend, don't you, martha? when you see "the donald" and newt gingrich sitting down and you talking about the big issue the election coming up in 25 days.

economically in iowa on the map behind us shows you deeper the red more trouble you are in. the lighter the green better off you are doing. the national unemployment average, 8.6% as of last friday. but in iowa we see over the last three years they have lost 19,000 jobs going back to november of 2008. national average is 8.6%. the rate in iowa? 6.0%. so sometimes the economic issue we find in other states may not be as prominent as we're finding in the state of iowa. sometimes social issues. let's pop out of that real quick. where are we going there? there we go. so sometimes the social issues come to the forefront in iowa more so than other states. we found a poll that puts gingrich in the lead. also finding more than six in 10 potential caucus-goers say they could change their mind. 61%. we're only 25 days away or so. fewer than half say definitely they have chosen a candidate. later this hour we'll look

at these numbers and try to measure the impact with byron york. he will come on in a moment. especially how these numbers could spell trouble for mitt romney. 61%. martha: that is fascinating. a lot still up in the air. catch presidential candidate mitt romney. he will be the guest later on fox news of the he will talk to neil cavuto urge year world at -- you're world at 4:00 p.m. eastern. he is in a tough position. trent lott questioning whether or not he has been aggressive enough in his campaign. some some of the backers of mitt romney are starting to ask him very tough questions. we'll talk about that coming up as well. bill: "the donald" was on with the folks at "fox and friends". martha: he sure was. bill: he will have the debate at the end of december. all the major candidates are attending except ron paul and jon huntsman. that debate before the first in the nation caucus in iowa. that is on the 3rd of

january. this is 6th of december. 28 days until the caucuses vote. martha: all right. so there are some new concerns today on the international front we want to talk to you about as well. iran may have their hands on one of our cutting-edge drones. this aircraft we are now under the, understanding that it went down in iran over the weekend. it is believed to be largely intact, which is also a bit of a problem. steve centanni live in washington with this very significant story this morning. good morning, steve. >> reporter: good morning, martha. well, yeah, senior u.s. military source telling fox news this could be a major coup for the iranians in terms of capturing and studying u.s. technology after this drone went down in their territory. that official says the drone aircraft built with the latest radar-evading stealth technology probably veered off track and into iranian airspace when its controllers on the ground

lost contact with the plane. it was according to this source not doing anything nefarious, it just wannered. there have been report that is the plane crashed into pieces that might not be very useful to the iranians. this senior official said these particular drones are keep flying if they're disabled. they fly parallel in the ground in a level position. they don't come crash be down. it wants to leave he quotes. no indication it was shot down as iran is claiming. according to egg period of times beyond the iranian anti-aircraft capability. martha. martha: this is one of our most precious forms of intelligence. what could the iranians learn when they take this thing apart or get into it to learn about it that could be troublesome for us, steve? >> reporter: well, they could examine the guidance system, surveillance, construction materials used in stealth aircraft, all these things. if you remember a stealth helicopter crashed at the

pakistan compound where osama bin laden was killed a tail section of that helicopter was left behind. the sources say the pakistanis shared information about the debris with the chinese. the loss of that tail section said to be just a pittance compared to a loss of a drone aircraft. martha: troubling. steve, thank you very much. steve centanni in d.c.. bill: 10 minutes past the hour now. also in a moment here on "america's newsroom", president obama calling out republicans as the clock ticks on a tax bite for millions of americans. word on a hail mary out of congress. go deep. martha: a beautiful model fashion editor and a horrifying accident. how this woman walked right into a plane's propeller. her story is coming up. bill: two former speakers with a long and complicated history, huh? a long story we shall say. how nancy pelosi says she know as whole lot about newt gingrich. terrific panel on that today. what does newt think about that? >> i want to thank speaker

pelosi what i regard as an early christmas gift. >> [inaudible]. >> she is suggesting she will use material she developed when she was on the ethics committee, that is a fundamental violation of the rules of the house and i would hope members immediately file charges against her the second she does it. ven 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

pe. martha: well, folks, who like to pop the check in the mail to pay a bill the next day may have to plan ahead. the postal service plans to cut half of their mail processing centers, close them, and slash nearly 30,000 postal service jobs, pretty much ending the whole idea of next-day mail. so first class mail now delivered in one to three days it will get you there. and at least take one extra day in the process or longer what we're being told. the postal service is saying it has to do these things to avoid going out of business. >> this proposed change to service standards will allow a significant opportunity to

consolidate the postal network and in terms of facilities, postal equipment, vehicles, and employee workforce. it will generate a projected negative savings annually of approximately $2.1 billion. martha: sounds like that is what needs to be done. for those who rely on the post office no doubt the big changes will take some getting used to. >> i've been using this place and i'm thoroughly satisfied with it. what am i going to do? i come back to all my house and all my mail is out of my mailbox. martha: the proposed changes would go into effect next year. the christmas cards and gift, bill hemmer and i have been working on really hard you will be relieved to know. bill: but the mccallum's in new jersey. martha: thank you. we appreciate it. bill: a tax cut showdown in washington. senate majority leader harry reid offering what he describes as a compromise on the payroll tax extension. this a partisan breakthrough

or rather a bipartisan breakthrough? john fund, "american spectator" magazine. good morning to you. the white house feels confident about this. does the president feel he is gaining the upper hand on this issue? >> it is popular to have middle class tax cuts and payroll tax is borne by all americans who work. i think the president does have a tactical advantage here. he is going out to kansas to give a speech echoing a teddy roosevelt speech 100 years ago about the new nationalism that is pretty smart. going back to a republican president of bygone eras and quoting him about the need for strong government intervention and activism in the economy. bill: let me tell viewers what is on the line here. this is part of an agreement reached in december of 2010. all right, 160 million americans could see their taxes go up if they don't get a deal. the democratic plan, if you make $50,000 a year you get $1500 tax cut. if you make $200,000 a year,

you get at $6,000 tax cut. republicans will give $1,000 tax cut to those making $50,000 a year and $4,000 tax cut to those making 200,000 or greater. for republicans what happened to the argument cutting spending or paying for the things we are covering in washington today? is that argument getting through? >> well, i think in the end that is, what will come down to, because when these tax cuts expire on december 31st, obviously you don't want to increase the deficit. so therefore the argument will be, the democrats are still going to go back i think to their patented tactic they want to raise taxes on millionaires, people earning over a million dollars. that will ultimately be their negotiating position. republicans will have to come back with something else and i think it will be spending cuts. i think that argument is a stalemate. i think in the end these will go through. they will paper it over with famous washington deals where nothing really gets done but all looks as if it

has been solved. bill: i see. before the holiday probably too. does this create jobs? does this stimulate the economy. >> the problem it is a temporary tax cut. i don't think people really go out and hire new employees based on a temporary tax cut that by law will expire in a year. so all the economists that i know say it is not going to have very much effect. this is really a political argument. the real economic impact would be, if you did raise taxes even on those earning over a million dollars, that is raising taxes in the middle of a very weak economy. not a single school of economic thought says raising taxes in a weak economy creates jobs and improves the economy. it reduces the employment. bill: mitt romney here is what he had to say potential for a vacation in the middle of all this mess. >> he told congress they need to stay in session and pass his, his tax break, for the payroll tax and that they shouldn't, they shouldn't leave for vacation until they did that yet he is going off for 17 days for

golf in the sun. i just think it is time to have a president whose idea of being hands on does not mean getting a better grip on the golf club. bill: for his part, the president and white house unveiled the countdown clock to ramp up the pressure. are you fan of these. >> it is a clever move. it is a visual. bill: 26 days. >> the problem the president will have is at some point he will be asked is there anything in the federal budget you're willing to cut? so far president obama has not been willing to cut anything in the federal budget except a few military programs. bill: can republicans win on that front? >> right now president obama has the advantage. republicans will have to step up their game. the perception is president fighting for middle class tax cuts. the republicans will have to up their game. bill: john fund, let us know how it goes. martha, what is up next. martha: speak of of all that, newt gingrich taking his surging campaign to the trump tower. is trump ready to endorse

anybody at this point and is the gop ready to really back any of these candidates yet? larry sabato is here on that one. during the break log on to our website. tell us what you think about this. does donald trump matter to you in this process? foxnews.com /americasnewsroom. let us know. bill: a massive manhunt for an escaped prisoner. this man considered armed and dangerous. police say he is on a mission of revenge and locals are nervous. >> i said is he by my house? they go, we don't know where he is. i said i want to let you know i have an epaddition that is not finished. we did see flashlights thursday night. ( phone ringing )

okay... uhh. the bad news, it's probably totaled. the good news is, you don't have to pay your deducble. with vanishing deductible from nationwide insurance, you got $100 off for every year of safe driving, so now your deductible is zero. the other good news ? i held on to your coffee. wow.

♪ nationwide is on your side ( laughing ) it's actually a pretty good day whenou consider. that's great.

♪ . bill: she is doing her best to save her country as we save the queen. the global economies in tatters. buckingham palace pinching the pounds literally the queen freezing her pay for six years now. and british taxpayers will no longer foot the bill for prince william and duchess catherine's travel. instead prince charles picks up the tab. martha: isn't that nice of him. bill: thanks, dad. martha: what a guy. bill: the cutbacks mean fewer royal parties. the queen agreed to rent out rooms at st. james palace for the olympics at 2012. martha: that is good idea. bill: they will need that money. they announced this week that they doubled the security tab. billions they will pay for security for a country deep in debt too. god bless the queen, right? martha: all right. well the search is on in new hampshire for an escape from a jail who is considered armed and dangerous. police believe david glenn

hobson may be in maine and he has plans to harm two people there. julie banderas is on the story tracking the latest developments in our new york city newsroom. hi, julie. >> reporter: hi martha. police are not comment on who the two people he may be targeting are but they're taking every precaution to protect them. take a listen. >> most concerning we strongly believe that david hobson has acquired a firearm and he has made threats to specific individuals. these individuals have been contacted by law enforcement and are in a secure location. >> reporter: 33-year-old david glenn hobson seen here has been on the loose since escaping from a jail in ossippee, new hampshire on october the first. they say hobson stole some kind of a car to return to his hometown of alfred, maine, where he may be now or at least in the area. investigatetores are creating roadblocks and executing search warrants. two homes belonging to

relatives in nearby sanford, including a cabin. this cabin right here belongs to his father, again, who was arrested on friday for hindering apprehension by helping his son and leaving him supplies. he has since been released on bail. right now, there is a $500 reward being offered to anyone to can assist the u.s. marshal's service catching this guy. we'll stay on top of the latest developments. >> wow, quite a story. julie, thank you very much. bill: a lot of nervous folks there. martha: yeah. bill: the white house making a push for a new consumer watchdog. the wall street sup in articles over that. what is the problem you wonder? we'll tell you. martha: less than 28 days and counting, bill,? the big day in iowa, the first election in the nation but the iowa voters showing they have really not made up their minds at all yet. [ male announcer ] what can you do with plain white rice?

when you pour chunky beef with country vegetables soup over it... you can do dinner. four minutes, around four bucks. campbels chunky. it's amazing what soup can do.

really? 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure hh protein. ensure! nutrition in charge! it doesn't cover everything. and what it doesn't cover can cost you some money. that's why you should consider an aarp medicare supplement insurance plan insured by unitedhealthcare insurance company. all medicare supplement plans can help pay some of what medicare doesn't, so you could save up to thousands of dollars in out of pocket expenses. call now for this free information kit and medicare guide. if you're turning 65 or you're already on medicare...

you should know about the only medicare supplement plans endorsed by aarp; see if one's right for you. all medicare supplement plans let you choose any doctor or hospital, that accepts medicare patients... and could help you save up to thousands of dollars in out of pocket expenses. plus, there are no networks... no referrals needed to see a specialist... and virtually no claim forms to fill out. how's that for convenience? and when you travel, your plan will travel with you -- nationwide. so call now for a free information kit and medicare guide. choose from a wide range of plans to fit your specific needs and budget. with prices that are competitive -- thanks to the group rates available only to aarp members. if you're considering a medicare supplement plan, you should take a look at the only ones endorsed by aarp... these are plans millions have chosen... and even better, 9 out of 10 members would recommend their plan to a friend or family member. why wait?

help protect yourself from some of what medicare doesn't pay and save up to thousands of dollars in out of pocket expenses with a medicare supplement plan. call now and learn more about aarp medicare supplement insurance plans, insured by unitedhealthcare insurance company. get this free information kit and medicare guide you don't need to be an aarp member to call. don't wait. call now for free information about the additional coverage you may need. ♪ bill: exactly four weeks from today and iowa will caucus and even with newt gingrich leading in that state so much can change. we've seen it time and again. as we reported earlier new polls showing 61% of caucus-goers, this is specific to iowa now. 61% could change their mind between now and january 3rd. and the potential fence-sitters could be even

more problematic for mitt romney. 70% in that same poll say there's a possibility they could back someone else. byron york, chief political correspondent, "washington examiner" and a fooks news contributor. good morning, to you, byron. >> good morning, bill. bill: these are stunning numbers. this is unconventional year for the state of iowa. take the first one off the top here, about 60% overall caucus-goers. what does that tell you, byron? >> we've seen this in action through the course of the campaign. we've seen michele bachmann, we've seen rick perry, we've seen herman cain all go up and down. a lot of mind already have been changed. what we're hearing from voters at this late date, december 6th, less than a month to the caucus, they could still change their minds. bill: that's a very unsettled field but the other poll about mitt romney, his numbers are even higher. granted he spent a lot more time in new hampshire than in iowa. what does this tell you? >> well, if you look at the post asked if you do have a candidate, if you do support

a candidate, how likely are you to change your mind, how enthusiastic, how determined are you to vote for that candidate? and more people are more loyal to newt gingrich right now than they are to mitt romney. ron paul has the most loyal voters but of the others, more people are up for gingrich than they are for romney. that shows --. bill: it shows, what, sorry i apologize? >> even the support romney has is a little shaky right now. bill: on the issue of ilecability, on the issue of empathy and handling the economy who won that? >> all the way across the board. the post asked a lot of questions about attributes about the candidate. which candidate understands the problems of people like you? most honest and trustworthy. most experienced to be president. best chance to beat barack obama. best stands up for republican values. gingrich beats romney romney in every category including electability. bill: they are interesting findings.

iowa could be a different picture than new hampshire. that's why we watch. byron, good to have you today. >> thank you, bill. bill: byron york in washington. martha: well it is the white house versus the gop and wall street and president obama is going all-out to push the unlikely confirmation of a man named richard cordray. he has been nominated to head this big new consumer watchdog agency that was created to right all the wrongs of the financial institutions that hit us so hard back in 2008. but 45 republican senators already said they are pledged to block this confirmation. so that makes a filibuster for democrats highly unlikely. but the whole thing does provide the president with a way to say that the gop is protecting wall street which has been a major point of his re-election effort. he will go on a huge media blitz. he will visit seven states, do lots of interviews with local reporters there, to make that point. to pressure and in doing so, he will put pressure on

several republican senators in those states who are up for re-election. senators like corker, heller and snowe, are all sort of in the cross-hairs here on this trip in terms of how all this will go. republican senator richard shelby will not be voting for mr. cordray. he is the ranking member on the senate banking committee and he joins me this morning. senator, good to see you as always. >> good morning. bill: what do i see as the thrust for the president of this trip? >> i think the thrust of the president's trip is and trips is strictly politics. he is running around the country and i believe he should be here in washington trying to help us solve some of the problems of the day like the budget problems. perhaps get in a dialogue with us on this piece of legislation that you just referenced but he is off somewhere else. he should be here. martha: tell me something, why are republicans and why is wall street so against this appointment and this consumer watch dog agency? isn't it a good idea to have

somebody looking out for consumers and making sure banks and credit cards don't, don't, you know, allow fraud against people? >> first, martha, let me set the record straight. i don't believe wall street is against this. wall street, i was involved in the legislation when we were deal with it last year but wall street never really had a real strong voice against the consumer agency. this is a myth that the president is talking about. what we're talking about is main street. this is going to affect main street. it is going to affect small businesses, small bankers and everything else. this is one of the worst pieces of legislation that has been passed in the last 50 years here in washington. martha: what is wrong with it? what is wrong with it? >> what is wrong with it? many things are wrong with it, thousands of pages. one, there is no accountability to it. you created a monster here, that is a regulator with no accountability. a funding, self-funding

source, and nothing in there to deal, when they come forth with regulations, to take into consideration safetity and soundness. we have a lot of banks in bad shape in this country. we need jobs. we don't need regulations. it will stifle creation of jobs. what this nomination is about today, mr. cordray, as far as i know, is probably a nice man, and so forth. but on the other hand, he is caught up in something bigger than this. we offered the president three things. and, he hasn't gotten back with us to try to change some of this legislation, to improve it because some of it is good but three or four pieces of it needs to go. martha: i think people have a lot of doubts whether or not any agency can sort of prevent the kind of fraud that has brought upon people. when you look at madoff and the sec, nobody was ever fired in the sec for not doing their job and not following up and they visited madoff three times.

not to bring, but when you look at larger financial institution picture, the government has not been overly prosuccessful at protecting people is my point. >> you're absolutely right. you can regulate the economy to death and this is what we would do here. we would have a czar here with no accountability. but let me go a step farther here. the cftc is a big regulator. over derivatives and things like that. a lot of securities that trade as derivatives. where were they recently in the loss of 1.2 billion dollars that is missing? where is the regulator here? we want some answers to that before we go down the road to say we're going to create more regulations. what we need is jobs in this country, not regulations that make no sense that will stifle the economy. martha: all right. senator shelby, thank you very much.

>> thank you. martha: for talking to us today. it is an important issue and the president will be speaking about quite a bit in the coming days and today in kansas as well. glad to hear your side of it thank you very much. bill: we'll see how that goes. watching wall street and what is happening overseas to see how that affects us. it is up 22 points. it is early. we're up over 12,000. nasa. >> announcer:s an out of this world -- nasa announces a discover i in deep space. why they are so much like earth. it is 72 and sunney. we're not making that up. martha: really? that sin credible. this one will get really interesting, folks. newt versus nancy in the battle of the former house speakers. pelosi says she has dirt on newt. now the presidential candidate is firing fire back. >> i regard it as useful education of american people to see what a tainted political ethics operation nancy pelosi was engaged in.

martha: he doesn't sound happy, does he? fair and balanced debate three minutes away. we'll be right back. looking good! you lost some weight. you noticed! these clothes are too big, so i'm donating them. how'd you do it? eating right, whole grain. [ female announcer ] people who choose more whole grain tend to weigh less than those who don't. multigrain cheerios... five whole grains, 110 calories. i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown.

but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. it's 4g, so you can do more faster. so, kathryn, post more youtube videos of your baby acting adorable. baby. on it. matt, ignore me and keep updating your fantasy team. huh? jeff, play a game. turbo-boosting now, sir. dennis, check in everywhere you go on foursquare. that's mayor dennis... of the water cooler. you're the best. liz, rock out to pandora. oh, no i'm an only child. and nick, you shouldn't even be here, you can do everything from the golf course. good? good. [ male announcer ] on at&t, blackberry® torch moves at the speed of 4g. ♪ blackberry® torch moves at the speed of 4g. this was the gulf's best tourism season in years. all because so many people came to louisiana... they came to see us in florida... make that alabama... make that miissippi. the best part of the gulf is wherever you choose...

and now is a great time to discover it. this year millions of people did. we set all kinds of records. next year we're out to do even better. so come on down to louisiana... florida... alabama... mississippi. we can't wait to see you. brought to you by bp and all of us who call the gulf home.

martha: developing right now here in "america's newsroom", bomb attacks on a shiite holy day, leaving nearly 60 people dead in afghanistan. this is the worst attack just outside of a shrine in the afghan capitol and scores of people are also injured in that horrible, horrible event. how about the uptown girl? take a look. she is forced to pay up. christie brinkley says she will pay more than half a million dollars she owes the irs she says she will do it by tomorrow. she says the stacks lien was a mistake, a little understanding. parts of phoenix looking more like a winter wonderland than a desert

paradise. look at the snow coming down. don't worry, much of it already melted. bill: where was that? martha: phoenix, arizona you can't ski there, right? martha: no, no. we'll find snow this places where you can. bill: you can get married in a sandstorm in phoenix. martha: we saw that. bill: and make the national news. a war of words between nancy pelosi and newt gingrich, the former house speaker says she has a lot of dirt on the republican front runner she gathered in the late '90s. newt gingrich not being baing down on that report. >> i want to thank speaker pelosi for what i regard as an early christmas gift. she is suggesting she will use material she developed while she was on the ethics committee? that is fundamental violation. rules of house and i would hope members file charges against her the second she does it. what she said to you today explain as great deal what happened in the ethics process when nancy pelosi was at melissa joan hart of it and prepares to abuse the

house process. bill: it will be a good ol' good one, isn't it guys? martha: yes it is. bill: bob beckel former campaign manager, host of "the five" and andrea tanteros co-host of the "the five". how are you. who wins this argument? >> nancy, she stepped in it big-time. her press secretary reached for the tums after she made the comments. newt's right. i worked in the house of representatives for years. she knows better than anybody you can't do this. any staffer knows this. she can't reveal this information and as newt said, it would be an ethics violation. plus, if her investigation was so credible and wasn't such a joke wouldn't they have found something on newt gingrich? wouldn't those 83 charges not have been repudiated? bill: you make a good point. he did pay a fine, 300 grand. everything else went to the side and not proven in the end. are you reaching for the tums on this, bob. >> actually, newt is right about this by the way. it is a violation of house ethics rules.

what, and you also right about the christmas present. what better foil for him with republican base right now than nancy pelosi? i mean, you couldn't ask for a better person to come out and attack you. so, i wish nancy would just be quiet here or let somebody else say something. let's keep in mind that the house is full of more senior members who really don't like newt, both democrats and republicans. it goes back a long way. he has got a lot of other timber back there that is still --. bill: you made the point some of his own colleagues will -- >> sure. bill: by the way, let me tell viewers what pelosi said to talking points memo.com that started all this. she said, i know a lot about him. mining gingrich. i served on the committee that investigated him. four of us locked in a room in undisclosed location for a year. >> they found nothing. >> i'll tell you. i've been around washington a long time. i don't know where that location is if it exists. i've known newt gingrich a

lot longer than nancy pelosi. believe it or not i hate to say this, i was first one to give him contribution when he ran for congress in the '70s. bill: really? >> when i was working for bipartisan group that helped liberal republicans. newt has drifted. having said that one of the things i would criticize newt about those, the way he approaches these things the rules of house and i hope house members, has to get out of this house speak, because it doesn't translate all that well. nancy pelosi all he has to do say her name and republican base goes crazy. >> i think bob makes a good point there. i also think, pelosi has to be careful. she has her own ethics issues in question. one, using some of her campaign money to pay family members. most recently insider trading. not only does she have to be careful as bob points out, she gives him a foil right now. bill: andrea, i don't think she entirely dismissed this. she said not right here, pelosi joked, when the time is right. i interpret that as not yet. >> well, think about this too.

if she does have information, if there were a legal issue and she is with holding some kind of information i still think she hands newt a gift. all he can say anytime attacked by democrats or congressional democrats. look at what the democrats are doing. they're politicizing every bit of research and discredits. that is another christmas present she hands him. >> keep in mind there is lot of ways to get the stuff out without doing it directly. >> like what? bill: that is true. people love to talk. >> that's right. when i ran a presidential campaign we used to get stuff over the transsome all the time about other people. some of it was scurrilous. i only used stuff that i thought could stand the light of day. i'm only kidding. >> no you're not. >> the point there is lot of stuff about newt floating around t will find its way out and doesn't necessarily have to be tagged to a particular member of congress. bill: you know what i think they should do? >> get married? bill: get back on the couch. >> similar thing. bill: there is no chance you

will see this haing ever again, are you. >> i don't think you will see two of them on the couch. it was ugly picture to begin with. >> getting on the couch together and getting married. bill: what he said was, it was the biggest mistake of his career. that will play well in iowa. andrea, bob, thank you. we'll see you at 5:00. >> you will. bill: martha. martha: i like the yellow suspenders. you like those? bill: give it a shot. martha: we've got a lot more coming up here on the cutting-edge u.s. drone apparently in the hands of iran. this is a very serious situation. how much intelligence will the iranians being able to take out of that drone? bill: also could this be the day blago headed to the big house? but for how long? the former democratic governor on his way to court to find out. we will play you, some of what have become to be known as the greatest hits of blago from chicago. >> i [bleep] [bleep], busted

my [bleep] [bleep]. give your grandmother a free ride on the bus. gave your baby [bleep] [bleep] a chance to health care.

♪ . bill: team of scientists made a bombshell discovery. they found two massive hose, the largest ever known to exist. each is 10 billion times the size of our sun. how do they know that? martha: i don't know. bill: this black hole formed by the collapse of a star, gravity so strong not even light can escape. right now we know. nasa discover as new planet similar to earth sitting outside our solar system. seems to be ideal place for life, 72 and sunny. it is like palm springs. what does this tell us?

we'll take a star trek with editor-in-chief of discover magazine later in our show. do you know how long it takes to get to the planet? martha: we won't make it, i know that. bill: if you were on the space shuttle, 22 million years. how do they find this stuff? we'll find out. >> isn't that amazing though? bill: close your mouth. martha: oh my. remember that expression, you kiss your mother with that mouth? that may apply to blago in that situation. who could forget the recorded wiretaps almost three years ago that was? capturing a sitting governor trying to sell president obama's former senate seat. now as we look at video of rod blagojevich heading to court we'll find out whether

he spends most of the next two decades behind bars. mike tobin live for us at the federal courthouse in chicago. mike, what do we expect to hear from him today? will we hear from him today? >> reporter: in fact we'll probably see him here in the next couple seconds. we anticipate him walking into the dirksen federal building probably during the course of this live shot. we anticipate he will get on the witness stand. he has the option backing down. we anticipate he will get on the witness stand one more time either today or tomorrow. this is usually the time a convict will get on the stand, become contrite and beg for mercy out of the court but we don't think that will come from the governor who once held a press conference and pledged he will fight and he will fight and he will fight. >> the problem is going to be if former governor choose to speak in his own defense, if you will at the sentencing. if there's no contrition, if he uses words like i'm sorry i was in this position, sorry to put people here without really admitting

anything, that will not go over very well. >> reporter: on the other hand, a law professor from due paul university here in chicago says he can't spend the last three years banging the innocent man drum and get in front. judge to say he is sorry. the judge has been around for a long time. he probably won't buy that, martha. martha: how many years is he looking at? >> reporter: the government is asking for 15 to 25 years. that looks like it will be a little bit steep. there is kind of a template because one of his coconspirators, a former fund-raiser for blagojevich, tony rezko got 10 1/2 years. you have to anticipate, rezko wasn't the chief, blagojevich was, he will get upwards of that. and blagojevich's predecessor is serving a six 1/2 year sentence. the government will argue that blago was not intimidate by that. the next sentence should send a message. martha: like old home week

there. mike tobin in chicago. all the buddies will be there, just keeps giving and giving. donald trump, how about a king maker? he says he will endorse a can candidate for president soon but a safe bet it will not be jon huntsman. here is yesterday in new york, or not yesterday but recently. huntsman says he will not attend trump's deat end of next month. >> i wouldn't feel too good if i had 1%. i was leading in the polls. when i left i was leading in the polls. bill: ouch. what do you think, does donald trump matter? log on to "america's newsroom." that is our website. foxnews.com /americasnewsroom. tell us what you think. you can do that during the commercial break. martha and i will be back in just a couple minutes.

why settle for a one-note cereal? ♪ more, more, more... get more with honey bunches of oats 4 nutritious grains come together for more taste, more healthy satisfaction. get more with honey bunches of oats. and what it doesn't cover can cost you some money. that's why you should consider an aarp... medicare supplement insurance plan... insured by unitedhealthcare insurance company.

all medicare supplement insurance plans can help pay... some of what medicare doesn't, so you could save... thousands of dollars in out-of-pocket expenses. call now for this free information kit and medicare guide. if you're turning 65 or you're already on medicare... you should know about this card -- it's the only one of its kind endorsed by aarp; see if it's right for you. all medicare supplement plans let you keep your own doctor, or hospital that accepts medicare. there are no networks and no referrals needed. help protect yourself from some of what medicare doesn't pay... and save up to thousands of dollars in potential... out-of-pocket expenses with an aarp... medicare supplement insurance plan... insured by unitedhealthcare insurance company. call this toll-free number on your screen now... for this free information kit, including this... medicare guide and customized rate quote.

martha: there are reports this morning that some of mitt romney's supporters are disappointed with how things are going, stating that the sit down -- the sit back and wait approach that worked well against herman cain and some of the others is not working, and now it is time for some fire. we will tell you who is saying that this morning on a brand-new hour of "america's newsroom." that is a big story on the political front. i'm martha maccallum. bill: i'm bill hemmer. newt gingrich leads the pack by a healthy margin. but there may be a new romney approach. >> i have to feel that this president has been a failure. the other day i understand that chris christie said that he was a bystander president, that he watches affairs and has not guided affairs. in some respects his idea of a hands-on approach to the economy is getting a grip on his golf club. he is going off for 17 days in

hawaii. he'll be playing a lot of golf. martha: that's what mitt romney has to say, joined now by bret baier our good friend, anchor of special report. good to have you here. >> reporter: hey, martha good morning. martha: i was interested in this quote from brent lott. he said i have disagreed with his strategy. he said i think he could have closed the deal out before now. he's run a little too much of a risk reverse campaign, says trent lott. i would like for him to have a higher profile and aggressive so it didn't end up romney and one other. what do you think of that? >> reporter: well i think you're hearing concerns about the surge of newt gingrich. a few weeks ago those supporters would have said, listen, gingrich is another flash in the pan, another flavor of the month, but they see him now as a real threat, as you look at all

of these polls that are coming out, and there is a want, a need when you talk to romney supporters for the romney campaign to step up their aggressiveness against beginni newt gingrich. the problem is that places like iowa and new hampshire don't like negative attacks directly from candidates, particularly, and there's been backlash before about that. whether the super pack that supports mitt romney starts getting involved in negative ads or whether you see surrogates like chris christie and others saying things about newt gingrich and his ability to be the gop standard bearer. martha: chris christie has played the attack dog role for mitt romney, saying things that maybe the lead candidate doesn't want to say in these cases. what about nancy pelosi? she says democrats don't want to run against newt gingrich, she is going right after him.

>> reporter: yes and no, i think there is a reversal going on there. the democratic party largely, i think believes that their position is better if newt gingrich is the nominee rather than mitt romney. i think that is largely the case. whether that is true or not is yet to be seen. you know, you look at that new washington post abc poll about the elect built and the ability to beat president obama, it's 29% for newt gingrich to mitt romney's 24%. when you talk to democrats up here on capitol hill i think they more fear mitt romney, at least antidotely. martha: good to see you. mitt romney will sit down with neil cavuto. check that out today. bill: michelle bachmann is warning her rivals not to count her out despite declining

numbers. gingrich, romney and ron paul have surpassed her in iowa. she describes how she thinks she can still win. >> the only race we've had in the country, i won the straw poll in less time than any other candidate and the only woman to ever win the iowa straw poll. what happened after that is we had new candidates getting into the race and the voters were enamored and looked at the other candidates. it comes back they are going to come back home. bill: we'll see if she is right later today. later today bachmann talks to megyn. you can check her out then. martha: fox news will be hosting a debate next thursday, december the 15th, 9:00pm eastern, 6pm pacific time. you can go to foxnews.com, enter any questions that you would like to have asked at that debate. there is the address for that

foxnews.com/debate. bill: there have been so many debates, and there have, but so many people are watching too, millions and millions of you tune in every time. martha: it's a huge parts of this process. bill: we are waiting for remarks this afternoon who is channeling theodore roosevelt and his scare deal in kansas. the president has his work cut out of them. teddy roosevelt was a rough raoeurd, a lieutenant colonel in the spanish-american war, the only president to r*eupb the medal of honor and the noble peace price. and was considered the father of the american knav navy. wendell goler is live outside of the white house. >> reporter: the folks aren't comparing the two presidents. they say both reached the conclusion that the republican party has gone adrift.

the evidence today a hundred years after roosevelt is the fight on extending the payroll tax cut, most republicans refusing the democrat's attempt to raise taxes on millionaires to pay for it. the white house says that is an example of misplaced priorities. roosevelt gave his square deal speech a hundred years ago. he was actually out of office when he went there but the town of 4600 can't get too many presidential visits. jay carney says mr. obama wants to make a point about fairness. >> the point that the president is making about speaking in the same location, is that the ideas that president roosevelt put forward about the need for americans of all kinds to get a fair shot and a fair shake are very much at issue today. >> reporter: roosevelt's call for a new nationalism wasn't universally welcome, some people thought he drifted too far left of the republican party. bill. bill: as we move forward on the

payroll tax matter what is the latest on that debate? >> reporter: the latest democratic proposal would expand it by $500 a year to $1,500 and pay for it with a 2% surtax on millionaires and higher fees on fanny mae -- levied by fanny mae and freddie mac. republicans say it makes it a nonstarter. the democrats say it's worth a tax hike for a few hundred thousand. susan collins suggests the proposal may be aimed at making republicans look bad. >> we need a bi-partisan approach to this issue. the american people are so tired of these show votes that we have. the political theater in washington, where one sides puts up a proposal knowing it will fail. >> reporter: collins and a missouri senator have a proposal they will unveil later today that exempts small businesses from the millionaire's surtax.

bill: thank you for that. wendell goler with our coverage from the north lawn. martha: a stunning series of homicide bombings in afghanistan. nearly 60 shiite worshipers killed as men, women and children gathered for a commemoration of a major holiday. conor powell streaming live from kabul with more. >> reporter: martha, this was an unprecedented attack on the afghanistan shiite community. sectarian violence is fairly rare, although it has happened. it's been years since a specific group was ta targeted like this. in a matter of minutes three bombs across the country ripped across three large cities. fortunately in kandahar nobody was killed. in mazar four people were killed, and in kabul 54 people were killed, including many women and children and an older man waiting in line to see a shrine. this is a holy day that marks

the day from the prophet's grandson was killed so many years ago. this day is being remembered for something much worse here today. many people are pointing the finger at pakistan and wondering, because sectarian violence is so rare here about it is more common across the border in pakistan. many people are pointing the finger at pakistan because of the history there, and because they think the hakani group which is a taliban backed group is responsible for this. interestingly the taliban denied responsibility for this attack. martha: that is interesting. thank you very much. conor powell at the site of that disaster, an awful day in kabul. bill: it is one of the most sophisticated weapons we have in our military. today it is in the hands of tehran. what secrets are at stake after the loss of our best stealth drone in iran. we'll find out. martha: his hair gets quite a bit of attention, donald trump,

but some say it's his head that might be getting too big. >> you look at it. in addition every candidate virtually has come up to my office and they don't want my money, they want my endorsement. i represent, i mean you can look at my, whatever, i have millions of people online that want to know what i'm saying. martha: you know he says those are just the facts of his popularity. so does donald trump have real political consequences for these candidates? that's what we'll talk to larry sabato about. bill: i think they take his money too. he was suspended from school for giving his teacher a compliment, he was only nine years old. >> i didn't think i did anything wrong. all i did was call the teacher cute. [ male announcer ] cranberry juice? wake up!

♪ that's good morning, veggie style. hmmm [ male announcer ] for half the calories -- plus veggie nutrition. could've had a v8.

bill: the giant oil company pw pb is accusing halliburton's

cement. they say the slurry did not plug the well. bp claims after that halliburton's employees got rid of evidence. an investigation will start in february. you say cement or cement. martha: we say cement. bill: the donald is now responding to heated comments made by presidential candidate jon huntsman right here yesterday in "america's newsroom." huntsman called out mr. trump after the real estate mogul said it was time to weed out the weaker candidates. >> i'm not going to kiss his ring and i'm in the going to kiss any other part of his anatomy. this is exactly what is wrong with politics, it's show business over substance. if he had any courage at all he would be running for president of the united states of america as opposed to manipulating the process from the outside. this is about real issues, it's not about show business. martha: how about that? here is donald trump's response earlier today to that, watch

that. >> i think he'll admit it, he has to come and see me. and i said, you know, really i just sort of turned him down in a very nice way, and all of a sudden look what happened. i wouldn't feel too good if i had 1%. when i left i was leading in the polls. martha: just in case you forgot he was leading in the polls when he left larry sabato. always good to have you here. good morning to you. he loves to remind us of that, and it's true. he was leading in the polls. he is the direct he shall of the center for politics at the university of virginia. what do you think about trup trump's influence? does he have any at in point. >> reporter: from time to time until very recently trump has hinted that he might still run as an independent for president next fall. his votes will come from many places but disproportionately they will be republican. they will come out of the republican column if he does it, i doubt he does it, but you can't be sure.

and i think some of the republicans want to make it more difficult for him to do that. they want to get to know him, they want him to know them. that is part of it. but this debate, i think it's what, december 27th, it's a week before the january 3rd iowa caucuses, it's in iowa, it's easy to see why the candidates would go to a big event that will get a lot of media coverage. martha: indeed. let's take a look at this question of his influence and how much of it he has, because the numbers don't really pan out in favor of people paying that much attention. would a donald trump endorsement make you more likely to vote for a candidate? 6% said it would make them more likely. 62% says it makes no difference. he was shown these numbers this morning i might add, larry and he thought they were just wrong, basically. and he said that, you know, how many people he's tweeting with and it proves to him that the numbers are much higher than that. does it matter in the end in terms of his endorsement?

>> reporter: i don't think his endorsement is going to make much difference. here is why that debate could matter if the candidates actually end up participating. some have committed already. newt gingrich has committed already. santorum has committed already. huntsman and paul have said know. i'll tell you where trump has real influence, that's with the media. he's going to attract cameras by the dozen, because they expect something interesting to happen. that's why cameras show up at donald trump events. they'll be there covering that debate, and as i said, it's a week ahead of iowa. martha: when you look at this and you think about the people who have met with trump, herman cain was in there, rick perry was in there and you've watched all of these folks rise and fall over the course of this process and it begs the question has the gop arrived at somebody that they really want to get behind? and you hear more and more talk about well this could go all the way to the end, this could get very ugly during the primary season, perhaps even a brokered

convention. is that possible, do you think, and what would it look like? >> reporter: i think it's highly, highly unlikely, 1% chance at best, famous last words. here is what it would take, it would take four or five candidates staying in all the way until the end of the primary process, all of them winning substantial number of delegates, refusing to negotiate with one another to broker for say a vice presidental post, or a cabinet post, and then agreeing somehow to release their delegates and endorse somebody who hadn't even competed in iowa, new hampshire and all the other primaries and caucuses. that just seems very unlikely to me. but you're right, martha, there is a lot of unhappiness with this field. there has been for a longtime. many people have said, this is not the varsity, it's the jv. the more they see of gingrich and romney, the two current frontrunners the more they think they need a stronger candidate outside the current field. but where is that candidate?

they've all said no. martha: we'll be at that convention. i'd certainly like to cover a brokered convention. that would be a first. >> reporter: me too. martha: we would find it fascinating. we'll see what happens. larry, thanks so much, great to see you as always. >> reporter: thanks, martha. bill: 19 minutes before the hour. washington is in a tizzie over taxes again. if the payroll taxes are not extended what will washington do with all that money? because you asked, an answer momentary. a beautiful model walks right into the propeller of an airplane. as her life hangs in the balance we'll get an update from her family this morning. >> we really believe that this is one of those horrific accidents that just happened. >> i asked her if she could hear me to squeeze my hand, and she did. payout from a legal settlement 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.

then our invisible hearing aids are for you. loaded with our most advanced hearing technologies, our invisible hearing aids are comfortable to wear and are specifically designed to improve hearing in noisy environments,

sound more natural, eliminate whistling, and let you talk comfortably on the phone. call... to try invisible hearing aids yourself free for 30 days. choose from 2 great styles. the invisible-in-the-canal rests comfortably inside your eawhere o.

martha: 23 minutes past the hour. the home of a death row serial killer demolished in ohio. anthony soul was convicted of killing 11 women and dumping their bodies around his property. victims and relatives say that today's demolition helps to bring some closure to the case for them. and some frigid temperatures in southern california adding to the misery for thousands of people who are still without power, temperatures in the 20s, as 17,000 customers remain in the dark and really cold now as well for the 6th day in a row. that is a heck of a longtime to be without power. do you know where you go if you want to be in the healthiest state of america. bill: new york. martha: vermont coming in at number one, vermont, bill, according to united health gro group. bill: president obama getting ready for another pitch on extending payroll tax cuts. set to talk live at a high school in kansas. many lawmakers, especially house

republicans still questioning how the president plans to pay for it. marriage gee writes you mention how much tax will be withheld from taxpayers if the cut is not extended how much revenue will be received by the government, and where does that go? charlie gasparino, fox business network. you're digging into the numbers and you find what. >> you're talking about $110 billion that this thing is going to cost. sounds like a lot of money. listen in reality it is a lot of money, but in the context of the budget that we v the size of the debt. we are talking about $15 trillion in debt, the size of the economy, gdp is about 15 trillion as well. this is small potatoes. it's interesting that this is a debate i believe. i think it gives us a window into the presidential election, two philosophies. bill: before you go there though, what would washington do with the 110 billion?

is that an hour of interest? what is that. >> good point, i don't know. it's spent pretty quick. interest on the debt, right? it's spent pretty quick. you know, marginally i'm for lower taxes, you know, this i don't think is -- the economic statistics on extending the tax cuts have been pretty lame. has it really helped that much? i think it is symbolic. the bigger story is this gives ahh window into next year's political presidential campaign, because you have two philosophies, the republicans want to pay for stuff based on cutting and the president obviously wants to pay for stuff based on raising taxes and this small tax cut is the sort of battle that those two philosophies i their being fought over. bill: you call it odd and symbolic. it's like more to come in the following years. >> of course we have $15 trillion of debt we have to payoff, two competing philosophies on how to grow the economy, the republicans want to close the loopholes, lower the marginal tax rates.

obama wants to infrastructure bank and pay for it through higher taxes for business people and entrepreneurs. it is being fought out tooth and nail and will really be fought out next year. bill: how is it settled do you think? >> they are going to extend it. i don't know how republicans ever politically -- bill: how would you pay for it? >> they'll find some gimmick. my gut is that they'll find some gimmick to pay for it. it will be a symbolic -- it will be a gimmick i believe because i don't think they will make real cuts. the president won't allow real cuts, the republicans aren't going to agree to a tax on millionaires and billionaires that begin at $250,000 a year in income. it is not happening. two competing philosophies. bill: the lines are being drawn as we speak. charlie it's great to see you. >> absolutely. bill: to viewers at home you have a question you want answered, compose the email in the form of a question, only a click away. because you asked, bya, fire one

up for charlie right now. martha: it's an eye in the sky that can fly nearly undetected in foreign lands, so what happens now that this stealth drone is pulled out of the guy? bill: third rock from the sun might not be the only inc inhabitable planet in the universe, say what? did scientists find us a new planet out there in outer space? [ male announcer ] cranberry juice? wake up! ♪ that's good morning, veggie style.

hmmm [ male announcer ] for half the calories -- plus veggie nutrition. could've had a v8. and with my bankamericard cash rewards credit card, i lov'em even more. i earn 1% cash everywhere, every time. 2% on groceries. 3% ogas. automatally. nooops to jump through. that's 1% back ... [ toy robot sounds ] 2% on pumpkinie. and apple. 3% back on 4 trips to the airpo. it's as easy as 1... -2... -3... [ male announcer ] the bankamericard cash rewards card. apply online or at a bank of america near you. [ toy robot sounds ]

when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare, call now to find out how an aarp... medicare supplement insurance plan, insured by unitedhealthcare insurance company, helps cover some of the medical expenses... not paid by medicare part b. that can save you from paying up to thousands of dollars... out of your own pocket. these are the only medicare supplement insurance plans... exclusively endorsed by aarp. when you call now, you'll get this free information kit... with all you need to enroll. put their trust in aarp medicare supplement insurance. plus you'll get this free guide to understanding medicare.

the prices are competitive. i can keep my own doctor. and i don't need a referral to see a specialist. call now to get a free information kit. plus you'll get this free guide to understanding medicare. and the advantages don't end there. choose from a range of medicare supplement plans... that are all competitively priced. we have a plan for almost everyone, so you can find one that fits your needs and budget. with all medicare supplement plans, there are virtually no claim forms to fill out. plus you can keep your own doctor and hospital that accepts medicare. and best of all, these plans are... the only medicare supplement plans endorsed by aarp. when they told me these plans were endorsed by aarp... i had only one thing to say... sign me up. call the number on your screen now... and find out about an aarp medicare supplement insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare,

get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. martha: let's go become to washington for a moment. congress is taking on a controversial issue today of discrimination in an unlikely place. the prenatal discrimination act would outlaw abortions done on the basis of race or gender. violators could face fines or even time in prison. shannon bream is here to explain all of this live in washington. how would this law work, shannon? >> reporter: martha it is drafted as a nondiscrimination law. it would ban the practice of sex selection or race-based decisions about abortions. representative trent franks authored the law. here is his explanation. >> if you could put it in the similar police terms it would say you cannot discriminate against the unborn by subbing them to an abortion based on their race or sex. >> reporter: the law does have civil penalties and jail time of

up to five years behind bars but not for the woman who seeks or gets an abortion. the penalties would only a employ to those who counsel her or help provide an abortion based on gender or race, martha. martha: i understand there is opposition to this. >> reporter: they say it's a waste of resources and it's about a much bigger issue, trying to overturn roe versus wade. >> this bill is a cynical and offensive attempt to evoke race and sex discrimination when actually it's about taking women's rights away. >> reporter: there is a hearing on the hill today, 1:00 eastern. there will be those for and against the bill. it has 60 cosponsors so far, representative franks admits it has an uphill battle to get passed, but it sparks important conversations. martha: thank you very much. bill: 33 minutes past the hour now. this is a big prize for iran. i want to show you on the map

behind us the area we're talking about. here is afghanistan to the right and iran to the left, they show a -- they share, rather, a common border. we were told a drone went down yesterday morning somewhere in eastern afghanistan, that was the initial report now. it would have been here just east of the iranian border. since that time the story has changed, however, and now we know the cia was operating this drone under military control, which is not uncommon in this part of the world, especially when you think about the osama bin laden raid. now we are told the drone went down somewhere in iran, likely eastern iran or further to the west in the central part of that country. why is this such a big deal? it's a big deal because this is our most sophisticated drone we have. it's the rq170. it flies and it conceals itself in ways that no other aircraft in the world can. kt mcfarland is our national

security analyst and she is with me now. good morning. >> reporter: good morning. bill: how big a deal is this knowing the iranians have it. >> reporter: two things, we are spraoeug on ira spying on iran for possible action against iran. they have the technology. who will they share it with, what will they do with it, we don't know. bill: were we using this to spy on their nuclear program? >> reporter: my hunch is -- we've always known, bill, that ultimately it would come down between a choice of bombing iran, or letting iran get the bomb. and if we are now preparing to have a war with iran, you know, we've already started seeing the early stages of this on both sides. the iranians have tried to assassinate diplomats in washington d.c., their nuclear program is on super drive. they are intimidating their allies and adversaries in the region of the middle east. what are we doing?

we are trying to spy on them and gather intelligence. we are both ramping up the crisis and they are leading us. bill: you're saying the war with iran has already begun. >> the initial stages. before a war with anybody you gather intelligence, you use santa barbara hostage, assassinations. we've already seen assassinations in iran of iranian nuclear scientists and missile experts. we've seen sabotage of the iranian nuclear missile program. a lot of these steps have already started. bill: there is argument that the technology will be sold to the chinese or russians. if you're in that field or line of work perhaps you've already got even your hands on it. >> reporter: we shall see. bill: a sophisticated piece of the u.s. military arsenal. kt mcfarland, great to see you. >> reporter: thank you. martha: there is a terrible story of an accident. she walked into a spinning airplane propeller. but today she is still alive. lauren skruggs is a model who

founded a fashion and lifestyles magazine. she was severely injured after getting off a small plane in texas. the whirling prop manning link the left side of this woman's body. >> i asked her if she could hear me, if she could hear me to squeeze my hand and she did. >> moving around in the bed, which is really good. she is uncomfortable but moving, which is a good thing. >> this is a longtime friend of the family acting as a spokesperson. janae good to have you here. she was in for a cat scan, how is lauren doing? >> she is in for the cat scan right now. i had the opportunity to see her ten minutes ago. god is just doing great things. she was responsive, and obviously is in a lot of pain, but she is every day progressing and we are grateful for that. martha: tell us the background. what happened? what was she doing in the plane? u know, whayou know, what do we

know about exactly what happened. >> absolutely. she was out touring cistmas lights. she came back down, the plane was going to pick up somebody else. what we are speculating happened is she went back to thank the pilot, that's just who lauren is and it was dark and she didn't realize that the propeller was still on. quite tragic. martha: i read that she lost her hand, is that true? >> that is correct, they did have to amputate the left hand, and she had a direct impact of the left eye. they got ready to take the eye, a six-hour surgery. they thought they saw something, currently she still has her left eye and we are praying for restoration for that. martha: it's an incredible story and we wish her well. tell us what she wants to do with her life. >> she really -- is looking to use her life to inspire and

basically take lifestyle to your door, and in a healthy way as well. and she is such a heart, has such a heart for philanthropy. we know god is going to work all of this together for good. martha: thank you very much. our best to her and to her family. it is just a terrible, terrible accident, and it's wonderful how all of you are staying so positive and supportive of her. thanks for being with us today. >> thanks so much for having us. bill: the best to her and her health. bizarre. martha: very. i mean it was dark, you know, and they were probably winding down, you know, the propellers having landed. an awful accident. bill: our best to her and her family. 22 minutes before the hour right now. they soon could share a book agent, a literary agent who may be signing amanda knox and the other famous clients they have. martha: how about this story for you today. a fourth grader, nine years old, accused of sexual harassment. what he did to get himself in so much trouble that he got

suspended from school, that little boy. we'll be right back. >> i was in school and the principal came and took me to his office. >> i'm very upset that a nine-year-old is being labeled as a sexual predator. the accusations don't fit the description. dad, why are you getting that? is there a prize in there? oh, there's a prize, all right. [ male announcer ] inside every box of cheerios are those great-tting little o's made from carefully selected oats that can help lower cholester. is it a superhero? kinda. ♪ somebody didn't book with travelocity, with 24/7 customer support to help move them to theool daddy promised! look at me, i'm swimming! somebody, get her a pony! [ female announcer ] the travelocity guarantee. from the price to the room to the trip you'll never roam alone.

bill: we're finding out that amanda tpho*eubgs getting high profile help in her quest for a paos book deal. she is signing on with a washington-based attorney who has helped the likes of president obama and george bush. knox's family said to have spent over a million dollars during the course of her murder and appeals trials in italy. she is hoping her attorney can help her ink a deal to make some of that money back. martha: here is an interesting one for you today. a nine-year-old boy has been suspended from his north carolina elementary school for calling his teacher, quote, cute. that's what he says happened. the principal says that this is not the first time that ivan a.

locket used inappropriate language at school. the boy says he didn't realize he did anything wrong. listen to him. >> i was in school and the principal came and took me to his office. i didn't think i did that wrong because it was like, all i did was call the teacher cute. martha: all he did was call the teacher cute. joined now by a family attorney and former prosecutor. and a defense attorney, and fox news contributor. ladies welcome. good to have you here. kelly, let's start with you. what do you think really happened here? what is going on? >> what i've heard from the school side of it is he said in a suggestive fashion that the teacher was fine. a substitute teacher heard him an ended up getting suspended because they thought it was inappropriate disruptive behavior and he has a history of these sort of problems where he says things that are uncontrolled and inappropriate and they were trying to make a point for him. just the idea that he said she was cute is possibly being escalated and there was a lot more to it from the school's

side. martha: tamara what do you make of all this? >> this is absolutely bogus behavior on the part of the school. we are talking about a nine-year-old boy here. i understand post sandusky, actions between students and teachers and there is a heightened insecurity on the school's part. this is about education. if what kelly says is true that this boy has behaved this way before, maybe he has a behaviorable disorder and needs to be evaluated. before we start throwing kids out of school we node to look and see if there are problems going on with the child. martha: you know, i mean this -- if you're suspended from school, that is on your school record, and it's going to say sexual harassment, suspended for sexual harassment as a nine-year-old. i can't help but go back to the fact that, what i would describe, from what we understand, okay, as far as we know he's saying the teacher looks fine, maybe he's what i would call fresh, okay.

maybe he's being fresh. and kids have been fresh for centuries, right? perhaps the way to deal witness. i don'with it. i don't understand why the teacher can't deal with it in the classroom. if she can't deal witness the principal can step in and say look. the things that could be in this child's transcript seem to be a bit over the top and ought to be handled in the classroom i would say. kelly, what do you think? >> i don't necessarily disagree with you, but again i also think that we have to give deference to our administrators and our schools. i don't want to go too far away from this. but think about those kids in california that were wearing american flags and they were protesting cinco de mayo, administrators told the students to go home. parents filed suit, and guess what the judge upheld it. you have to give discretion to administrators. >> there is a difference between telling a kid to go home and suspending a child. martha: tamara go ahead. >> there is a difference between

telling kids to go home because you don't like what they are wearing or whatever, and actually suspending a child, and like you said, martha, putting this on his record. now what about when he returns to school? is he going to be labeled -- >> he's already back in school. he's already back at school. he went back yesterday. >> okay. if i can finish. martha: go ahead tamara. >> he's back -- >> if i can finish what i was going to say is now what? what if he acts out again? does he have to actually go through some kind of sexual counseling? i think that this is absolutely ridiculous and we need to look at why children are acting out, not just punishing them right away. martha: yeah, you know, you look at the school's code of conduct it doesn't list inappropriate behavior, which is what they said happened here as a reason for suspension, only disruption of school, which is not what they said. the mother seems to have a case to fight even the suspension as not holding up the conduct of the code at the school, and she probably should do that. as i said this will be on this

little boy's record, a sexual harassment which seems a bit extreme in this case to me, knowing what we know. ladies, thank you very much. tamara, kelly, good to have you here. things are a little out of control at the school punishment level once in a while it would seem, right. bill: i'm keeping my mouth -- martha: you got in trouble all the time. bill: i'm keeping my mouth shut gee looks like a nice boy, but i don't know. jenna: i'm with martha on that one bill, don't think you're getting away that easy. in trouble all the time. new polling, more evidence of a surge for gop presidential candidate newt gingrich. carl cameron and karl rove will be here. we will talk with two u.s. senators about extending the tax cuts, a democrat and a republican. if they don't find a bi-partisan deal taxes go up for all of us. we'll find out what is going on with that. dig news in the fast and furious investigation, darrell issa joins us live. bill: we'll see you then,

stories after the show. a giant leap for mankind in the search for life in outer. an earth-like planet on the other side of the universe and they say it's 72 and sunny there. martha: we are going there for spring break. bill: stay tuned. martha: you're a country music star, it's 11:00 in the morning, why not hit the cause on your flight home from las vegas. why john rich was deemed too drunk to fly at 11:30 in the morning. ♪ [singing]

martha: a country music star reportedly kicked off a plane for being too drunk. john rich of the duo big and rich was booted from a southwest

airlines flight in las vegas. how do this happen in vegas, right? crew members thought he was too drunk to fly. it was 11:00 in the morning by the way. maybe it was 5:00 somewhere, right? he got into a tiff with some of the passengers but wisely he was apparently calm and cooperative when he left the plane. word to the wise. bill: nasa scientists believe they may have made their luckiest find yet, a new planet just like earth, so nice they say it's 72 and sunny all the time. corey powell editor and chief of discover magazine back with us here. nice to see you corey. good morning. where is this planet? >> well, it's 600 light years away, which is -- you'll not be traveling there any time soon. nasa calculated it would take 22 million years on the space shuttle to get there. right now it's look but don't touch. bill: how do we see this if it's 600 light years away? >> it's a nasa observatory, and it looks at stars and watches

when the planet passes in front of the star you get a tiny shadow, it uses the shadow to measure the size of the planet, what it's like, how close it is, how warm it is. bill: you're saying they have found 2,000 planets in our solar system. >> 2,000 planets around other stars. bill: this one is very special, why? >> this is the first planet they found that is possibly like the earth. it's about the size of the earth, it's a little bit larger. it's the earth temperature, it's the right temperature for water. this might be a water world, it might be an ocean planet. bill: you mean the whole planet consists of water. isn't that what we are looking for on mars? nasa think has would unlock the key to whether there is other life out there. >> the thinking is if there is water there is a good chance for life. this might be a planet that is covered in water. bill: the article said if you took the space shuttle, and you just mentioned this. it would take 22 million years to get there. >> yeah you'd have to pack a lot of supplies.

bill: how are we now able -- pack a lot of supplies, pack a lunch and then some. how are we able to see this deep into space now? we just keep going deeper and deeper, corey. >> yes, this is the incredible thing with these telescopes. physically traveling through space is a very, very slow process but as soon as you're working with the telescope it's like your mind could operate at the speed of light. as far as light can travel we can see and we can study the universe. bill: it is remarkable. what is the significance of a 72-degree planet surface? why is that so important? >> it all comes back to water. this is a planet that is around the right kind of star, it's the right size, the right distance. it has all the conditions for life, all the conditions to be like earth. and so, you know, it's -- water is the real key thing. and the right temperature for water that is a place where you have all the ingredients, everything is in place. bill: they are already saying there's 290 days a year.

now i guess that's determined by the sun that is in the orbit. >> right. bill: or the sun this planet orbits. >> it's orbiting a sun that is a lot like ours, a little bit maller and red der. if you're a superman buff you know that is the description of superman's sun. bill: is that a good indication for you? >> it means it's more active. people think volcanic activity is one thing that got life started here. it's a planet that has more of that, and a cooler star lives longer. any life that's there has more time to evolve. bill: i would say it's a pretty cool planet. >> it's the most amazing one that nasa has found so far. bill: who knows what they will see next. >> we are halfway through this mission. there is a lot more to come. bill: i know you are jacked up about this stuff. we'll bring you back.

>> this is a big one. bill: terrific, thanks. martha: that is pretty neat. coming up we have new fallout from operation if's and furious putting another government agency now in that case under the microscope. congressman darrell issa here to discuss last week's massive document dump and why it could mean big problems for more than just doj. are you receiving a payout from a legal settlement 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.

that's relied on to help bring children holiday joy, and while it doesn't travel by sleigh or reindeer, it does get around...

in fact, every year duracell sends loads of batteries to the mattel children's hospital, u.c.l.a. of course, children here and everywhere don't really think about which battery makes their toy run... but, still... you'd never want to disappoint. duracell. trusted everywhere. even if you think you can live with your old mattress... ask me how i've never slept better. why not talk to one of the 6 million people who've switched to the most highly recommended bed in america? it's not a sealy, a simmons, or a serta. ask me about my tempur-pedic. ask me about how i can finally sleep all night. ask me how great my back feels every morning. did you know there's a tempur-pedic for everybody? tempur-pedic beds now come in soft, firm, and everything in between. ask me how i don't wake up anymore when he comes to bed. these are real tempur-pedic owners. ask someone you know. check out twitter or your friends on facebook. you'll hear it all, unedited. tempur-pedic brand owners are more satisfied than

owners of any traditional mattress brand. now just in time for the holidays, you have the chance to win the perfect gifts from tempur-pedic-including the bed of your dreams! our snuggle up and win sweepstakes starts soon. enter at snuggleupandwin.com today. tempur-pedic, the most highly recommended bed in america. >> get to the news everybody is talking abouts presidential election. this is big. two days after stepping down there are rumors herman cain is endorsing his former rival newt gingrich. not to be president, to be his new wing man. martha: provide us with a lot of material, doesn't it, all of this? it is good stuff. bill: if everybody could have a wing man like that. martha: exactly. bill: we have a run. thanks for spending part of your day with us. martha: "happening now" starts right now, folks. stay tuned.