it's a good friend, johnny walker, a friend of ours. >> look at this gregg: hitting the campaign trail with a laser focus on the first contest of 2012 after a very brief pause to celebrate christmas. the candidates are back in the hunt for the republican presidential no, ma'am nation. good morning, everybody, i'm gregg jarrett in for bill hemmer in "america's newsroom". >> i'm heather childers in for martha maccallum. iowa is week away. new hampshire just days after that. a brand new poll showing mitt romney with a commanding lead in the fwran knit state. according to "the boston globe" 39% of the state's voters are backing romney. newt gingrich and ron paul they're tied for second at 17%. gregg: and the very same poll showing 55% of new hampshire voters believe

mitt romney has the best chance of beating president obama in the general election. byron york is the chief political correspondent for the "washington examiner" and a fox news contributor. byron, break these numbers down for us. what do they mean? >> good morning, gregg. it means mitt romney is still in a commanding position in the state that is most important to his strategy. there is no mitt romney victory strategy that does not include a victory in new hampshire. and what you have here is this pretty commanding lead, 39 to 17 over gingrich and ron paul. if you look at just republicans, remember this primary in new hampshire is not a closed republican primary meaning independents and democrats can vote in it. if you look at republicans, romney has much bigger lead, at 46% among the state's republicans. after a scare with newt gingrich, there were couple polls with gingrich in six or eight points, looks like romney pulled back ahead. gregg: what if ron paul pulls off a win in the iowa

caucus or maybe even newt gingrich and gingrich wins in south carolina immediately after new hampshire, what then? >> it's on to florida. florida is the biggest state in this first, in this mad rush in january. you have iowa january 3. you have new hampshire january 10. you have south carolina january 21 and florida on the 31st. that's a huge state. fourth biggest state in the union. biggest swing state and all, everything will be fought out in florida if that is the case. gregg: all right. hang on just a second because i want to bring up something that happened. newt gingrich's campaign possibly making a bad situation worse. news broke over the weekend that newt gingrich along with rick perry failed to qualify for the virginia primary. gingrich campaign director raised some eyebrows by comparing the situation to pearl harbor, believe it or not. he said this. quote. newt and i agree the analogy

is december 1941. we have experienced an unexpected set back. we will regroup and refocus with increased determination, commitment and positive action through the the next months. there will be ups and downs. there will be successes and failures. there will be easy victories and difficult days but in the end we will stand victorious. all right, byron, what do you make of that? >> well you take the december 1941 part out it is fine. it was an unexpected set back. kind of overly grand image you often see from gingrich and his team but this virginia thing was pretty bad. rick perry didn't get on the ballot. newt gingrich didn't get on the ballot. newt gingrich is still leading in the national polls, "real clear politics" average of polls. last time around fred thompson's race, alan keyes race managed to make the ballot in virginia. those were probably not the best campaigns out there and they still managed to make it onto the ballot. gingrich didn't do it, didn't get 10,000 signatures

required to get it done this time. gregg: does it underscore what many say about newt gingrich he is a strong leader but a horrible manager? >> well i think this is going to show in this campaign even, though there have been all the debates and talk and talk radio and tv organizations still matters. you have to go out in this case in virginia get 10,000 people to sign these petitions, get them verified and get them in on time. it is purely organizational challenge and gingrich didn't make it. that doesn't say good things about what's ahead in iowa for gingrich. there are a lot of organizational hurdles there to reach as well. gregg: byron york, great to see you, thanks very much. >> thank you, gregg. heather: remember, fox news is america's election headquarters. tune in for complete coverage of the iowa caucuses on january 3rd starting at 6:00 p.m. fox news, your front row seat to politics. listen to this story. computer hackers saying that they have hacked into a top

security think tank stealing thousands of credit card numbers and other personal info belonging to clients including the united states army, the air force, and apple. the group claiming responsibility, they say that there is more to come. doug mckelway live for us from washington. doug, what else do we know about this? >> reporter: heather, one of the ironies of hat attack, the austin-based stratfor offers intelligence to help clients reduce risk. the hacker claimed to able to get credit cards because stratfor didn't bother to restrict them that is extremely based as it would be for other security-based company. stratfor admitted. unidentified party disclosed personal information and credit yard information from some of our personal members. we have reason to believe your personal and credit

card data could be included in the information illegally be attend and end quote. stratfor's statement statement goes on to say, contrary to anonymous claims, it was a list of members that purchased its publications, not a list of individuals or entities that have a relationship with stratfor beyond the purchase of prescription-based publication. two points of view when comes to the particular matter, heather. heather: doug, can we expect more release of confidential material from anonymous? >> reporter: certainly that appears to be the case. in a message published on blogging website, anonymous, quoting, worry not fellow pirates and robin hoods, these are just the as. that is certainly suggests that there is lot more to come. just hours after anonymous published what it claimed was stratfors list, it tweet ad ling that includes 4,000 credit cards, passwords and home address of clients on

stratfors list. it was appeared to leak charitable donations. donations made to organizations such as the red cost, care and save the children. in its statement to clients, stratfor says it is working closely with law enforcement to identify those behind this huge skrut preach. stay tuned -- security breach. could be more coming down the pike. heather: doug mckelway reporting live for us. gregg. gregg: police are searching for a motive this morning, a shooting rampage in a quiet texas suburb, a family of seven found dead christmas night leaving a neighborhood in shock. >> there hasn't been any crime in this complex that they know of and not even a break-in. to hear something like this, this is shocking. >> just being quite terrified this could happen less than 25 feet from where you sleep. makes it harder they're having to go through that.

it is such a special day, christmas to be about celebration and families and not having to deal with a tragedy like this. gregg: our fox fill at kdfw has that story. >> reporter: police working with the tarin county medical examiner's office to identify the victims. seven people found shot to death inside that apartment behind me. it appears they were celebrating christmas. there was wrapping paper still on the floor inside that apartment. police alert to all this someone inside the apartment called 911. not clear if it was one of the victims or perhaps the gunman but whoever called did not say a word. police rushed over to this suburban fort worth apartment complex but the doors were locked to the home. they forced their way in. that is when they found seven people dead from apparent gunshot wounds. officers believe one man killed his family members and himselfs. the victims, four females, three males. ages 8 to 16.

one police sergeant said he worked on many of these crime scenes but has never seen anything like what he has seen here in his 12 years with the department. officers say it is a horrific crime regardless of the date but the fact that this happened on christmas only amplified matters, made matters worse. we know officers have been in and out of the apartment throughout the night. they needed to secure a search warrant to collect more evidence from inside. we know they did find several guns inside. no word yet on a motive. gregg, back to you. gregg: adrian, thanks very much. from our fox affiliate, kdfw in texas. >> meantime, another sad story to tell you about. police investigating a deadly hoist fire on christmas. flames tearing through a woman's home. this happened in connecticut, killing her three children and her parents who were visiting for the holiday. the woman and a male friend, they were the only ones to manage to escape. firefighters say when they arrived the fire was already out of control.

>> first units on the scene attempted rescues within the structure. they were pushed back by intense flame and heat. >> our heart goes out to the families and the friends of these people as well as the firefighters and emergency medical people, police department, and all of those that have been on the scene and frankly are suffering as a result. heather: coming up in the next hour we will have a new report with some more details on the investigation as it develops. gregg. gregg: and, heather, those are just many of the stories we're following in this morning's "america's newsroom." troublely new details in the solyndra scandal. was the green energy program more about politics than creating jobs? we'll take a look at that. heather: saudi arabia's threatening to get into the nuclear game. could it mean a standoff with iran? we'll have a live report on that moments away. gregg: an armed robber

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heather: welcome back. tables turned on an robber armed with a ak-47 assault rifle as he tries to hold up a california convene store. look what happened. they helped up the market and the clerk the store oner, the clerk's father he took some action. cool as a cucumber with a shy on his face he walked up behind the gunman and simply took the weapon right out of his hands. that is when they came up with a new strategy, begging. >> please, please, let me go. i only rob store before you

and go to the go for life. i tell him i didn't care. he scared me. scared my kid today. heather: ramos i should tell you, he was apparently the alleged person who held up the clerk and another strange turn as police arrested the suspect, he tried to shake hand apparently with the owner. gregg: well, there is a very explosive report on the solyndra scandal. "the washington post" now finding evidence that the solar panel company slipped toward bankruptcy higher ups in the obama administration curiously exchanging e-mails about the president's political future and his appearances, mostly missing from those memos, the more than 1,000 people who lost their jobs and the loss of hundreds of millions of taxpayer dollars. john fund, senior editor for "the american spectator" joins us. >> thanks.

gregg: john, look, every time politicians pick winners and losers do they pick their friends? >> well the temptation is enormous and in this case obviously most of the clean energy companies that the obama administration picked had some connection directly or indirectly with obama fund-raisers and the president really put a big bet on this. you would be as astonished to hear this, gregg but half of the president's visits to private businesses have been to clean energy companies. that is how much emphasis he put in this sector. $90 billion of taxpayer money. solyndra is one example of a company gone sour. the first $75 million that is recovered from solyndra isn't going to go to the taxpayers. it will go to solyndra investors because they managed to get themselves put ahead of taxpayers if the thing went wrong. gregg: how about the gm volt, is that yet another example of something that maybe perhaps well-intentioned but went awry? >> well, remember we took over general motors and made it government motors a few years ago and we still have

a 26% stake as taxpayers in it and a lot of its decisions are motivated by politics. when the government is one of your biggest shareholders you dance to the government's tune. we have a report from the mack kin gnaw center in michigan, that the chevy volt cost taxpayers $3 billion. each job created by the chevy volt cost taxpayers $250,000. that is not a good return on taxpayer investment. gregg: you know, in an election year, john, when jobs and the economy is paramount, how much of a political liability, if at all, is this? >> i don't think it's a major liability because solyndra is not a household word when people go to the polls. however, it's another example of how wrong the obama administration got the entire jobs picture wrong. remember, this is the administration that said when they took office if you pass our stimulus package, we will guarantee that unemployment doesn't go over 8%. how is that working out for us? not too well. here we are three years into

the obama administration, unemployment rate, 8.6%, may even go up if the european problems we see start to affect the u.s. economy. gregg: john, if it goes down, look went all the way up to 10%, the president can brag, if you will, that it went up to 10 on his watch. it is now gone to nine. it has gone to 8.6% f it goes lower, can't he claim credit for reducing joblessness? >> well he can try but no president with an unemployment rate over 7.2% has ever won re-election. and remember, what large part of the reason for that drop in unemployment, people have given up for working. therefore if they're not looking for jobs they're not counted and therefore the unemployment rate can go down with fewer people looking for jobs. a lot of people are working part time. they may have have a job but only working 20, 30 hours a week. if the unemployment rate remains high i think the president still has

political liabilities. gregg: if the president doesn't run on his record instead he creates what many are saying sort of a two-pronged campaign approach, one, class warfare, and number two, campaign against a do nothing congress, how will that work for him? how do you set that? >> it may work. republicans have a reputation for losing political opportunities. look at the payroll tax fiasco in congress last week. however, i think that that has to be done very carefully. because the republicans have to nominate someone who is scary enough to get a lot of people worried that their social security, medicare are going away. that the democratic fear tactics can gain traction. i wonder if the roo public can nominee knee will fall into those traps regardless who it is. gregg: if you had to pick one of them, who would it be? >> i'm not in the business of picking a candidate. i'll simply say any republican nominee who has common sense will recognize the focus has to be on the administration jobs and economic record and their record or their proposals

how to solve the jobs problem. gregg: all right. john fund, great to see you. thanks very much. heather? heather: new fears, another mideast nation is looking to go nuclear. could saudi arabia make one of the most volatile regions in the world even more volatile? gregg: and the justice department blocking a south carolina requiring photo i.d.'s at the polls. critics say it discriminates against minorities. but does it stop voter fraud? a fair and balanced debate coming up

gregg: and developing right now in "america's newsroom", north korea's state-run media identifying kim jong-un as the head of that nation's ruling party. yet another step in the transition of leadership for

the son of kim jong-il. a south korean research vessel breaking through polar ice to reach a russian fishing boat. it sank half hitting ice in antarctica. rest of the nations rest of is had either clear skies or some rain. heather: former head of the saut saut ann intelligence raising new concerns over potential nuclear arms race in the middle east. david lee miller live in our new york city newsroom with more on that. hi, david lee. >> reporter: heather. the ongoing iranian navy war games near the entrance to the red sea are being closely watched by its neighbors especially regional rival saudi arabia which could further with a nuclear arms race between the countries. the former ambassador that the kingdom might seek

nuclear weapons to protect itself against long time adversaries iran and israel. it could lead to nuclear weapons race in the region. >> the saudies are definitely going to move in the direction of a with the iranians, and only way for them to do it would be to prepare their bomb as soon as iranians declare the saudis will respond. >> reporter: as a signatory to the nuclear non-proliferation treaty saudi arabia is prohibited from acquiring nuclear weapons but according to one expert there is a loophol loophole saudis could turn to pakistan which has the only nuclear bomb in the muslim world and which experts say saudi arabia helped pay for. >> saudi arabia could actually legally have pakistan stage nuclear weapons on its territory the way nonnuclear states like germany, italy, turkey and belgium have u.s. nuclear forces stationed on their territory. we do it for nato. saudi arabia would argue, they deserve qul treatment. >> reporter: those wore

worried about a nuclear armed saudi arabia are also concerned about u.s. efforts to help develop a saudi nuclear program that could be used for energy and nuclear programs. including with the united arab emirates agreed to the to enrich uranium or fuel that could be used for weapons. so far the saudis have been reluctant to accept that condition. some analysts fear even if they do it is a deal the u.s. will regret. >> i think it's a huge mistake for the united states to go ahead with these kind of agreements. it is pretty transparent why these countries want these nuclear energy programs. it is a decades-long process to acquire the industrial, technical and commercial networks that they need to build the first nuclear power but then they could turn that to nuclear weapons. we're giving them the nuclear rope that they could use to hang us. >> reporter: and fox news repeatedly reached out to the saudis for comment but so far they have not responded. heather? heather: thank you very much,

david lee miller reporting live for us from the newsroom. thank you. gregg: heather, a battle between the states and the federal government as the department of justice blocks a voter i.d. law in south carolina. is it fair to ask somebody for identification at ballot box? a fair and balanced debate coming up. heather: plus the true reason for the season. meet a family who opened their hearts and their home to six orphans in need. >> their father died suddenly of a heart attack and their mother was too poor to take care of them so she surrendered them to a children's shelter. they stayed in the shelter for the last six years

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[♪...] [click-click] gregg: welcome back. bottom of the hour. kind of hard to believe but the iowa caucus is only a week away and the candidates are crisscrossing that state making a final push to win over caucus-goers. kelly wright in washington following that story. kelly, a busy week for the candidates. >> reporter: gregg, indeed it is. good morning to you by the way. the republican candidates are not taking any chances with gop voters in iowa at all, gregg. they're very busy to make the final rush or push if you will in hopes of swaying enough voters to give them an edge, that victory in the first of many contests to determine who actually gets the gop nomination. with the iowa caucus taking place on january 3rd, romney

will start a campaign blitz throughout the state tomorrow. he is also releasing a new television ad for iowa titled, conservative agenda. it is mitt romney targeting conservatives who have not fully embraced him but in this ad romney is making his case he is a conservative businessman with a moral responsibility to stop more government spending. and then there's ron paul, who will be holding a town hall in council bluffs on thursday. paul will be campaigning throughout the state as well. there are some actually believe that paul could win this in iowa. at least one poll showing paul is leading the republican field. he does have some critics out there who shea he is out of touch but his organization is working very hard to get his base to help him to win. as for newt gingrich, he will begin a 22 city bus tour in iowa on tuesday. he is calling it the jobs prosperity bus tour. those are the top three candidates. this is the beginning of

just will be a very busy week in iowa as each of them vie for the coveted prize of winning the first caucus in the nation. gregg: ron paul and mitt romney both have a very good ground game in iowa. newt gingrich less so. who appears to be the frontrunner? >> reporter: you know i think you stated it very clearly because organization and the ground game, that is key to winning the iowa caucuses because the caucuses are always unpredictable. to your question and to the point of your question, the voters in iowa have a really tough time right now zeroing in who they want to vote for. the polls have shown different candidates at various times leading the pack but the recent "rasmussen poll" shows that mitt romney is enjoying the lead right now. here is how it is all breaking down according to rasmussen. mitt romney has returned to frontrunner status leading the republican white house contenders with 25%. you may recall how romney slipped behind former house speaker newt gingrich but now gingrich slipped to

third, trailing ron paul with 20% and gingrich at 1%. the remaining number of candidates, gregg, as you can see there are at 10% or less. going into this while that poll shows romney in the lead, romney is taking no chances. you better believe the other candidates are not either because when it comes down to the iowa caucuses it is very unpredictable. gregg: newt is deflating blow up santa. >> reporter: yeah. gregg: i heard you sing a christmas song, kelly, you are so existed and it was -- gifted and wonderful moment. >> reporter: thank you for that. gregg: merry christmas to you my friend. >> reporter: merry christmas to you. gregg: heather. heather: when you say a deflating blow up santa doll? gregg: with a puncture wound. heather: here is something else with a puncture wound that is deflating. the justice department blocking south carolina's voter i.d. law saying it doesn't do enough to prevent discrimination against minorities. south carolina argues it is

a simple effort to prevent election fraud. "daily beast" columnist, kirsten powers, fox news contributor and former nrc communications director karen hand raty joins us with more. thanks for joining us on this day after christmas. karen, i will start with you. is this about discrimination and fairness and or purely politics and the election? >> well it is actually neither. this is about ensuring that every vote that is cast is a legitimate vote. we've seen certainly in the past voter fraud where people are voting for dead people who have not been purged for the voters rolls and people are voting in the names of people who were registered to vote who don't even exist. so that's what this is about, this race card that eric holder, the attorney general, is playing is, is purely political. heather: kirsten, you're take on it. >> well, i think that, look, what happened is a bunch of

republican legislatetures passed these laws, voter i.d. laws. as much as they're saying it is just about insuring that the vote is pure vote which i think we all want our votes to be, you know, very clean and that we know that the people who are voting are actually who they say they are, a lot of this is motivated by politics because most of the people who don't have i.d. as vote democratic. african-americans who tend to not have i.d.'s or poor people who tend not to have i.d.'s. that said i personally think people should have to have i.d.'s for exactly the reasons karen was going through and i just think it is 2011, almost 2012. we're not, we're living in a time when i think most people have i.d.'s or should have i.d.s. people concerned about it, start a foundation if you're saying people don't have enough money for it, start a foundation to help subsidize people getting i.d.s. but i do think we need to have people having i.d.s

when they vote. heather: the reverse could be said as well. democrats are well aware that a the majority of minorities who vote democratic, the reverse of what you say about republicans can also be said about democrats? >> yeah. but democrats also have traditionally concerned about poor people and african-americans and so, fits with that as well. i think you're always more aware of things that are happening to people who are part of your base and, you know, i don't think, just to get the votes. i do think they want everybody to get to vote. heather: kirsten, you're not saying republicans are not concerned about poor people, right? >> no, i don't think i said that. heather: because you democrats are concerned about poor people but you're not saying that republicans as a result are not? right? >> no. heather: great, karen. >> let's take on that premise. first of all we know the working poor in america do have voter i.d. you need a voter, you i'm sorry, you

need a photo i.d., you need a photo i.d. if you're getting a job. so the working poor do have photo i.d. if we're talking about truly poor in america you need photo i.d. in order to get food stamps. you need photo i.d. to get number of things. we're talking about just a fraction of the population that could certainly, we could accommodate in other ways. like, kirsten has said. so i don't even buy this argument that somehow the poor are being discriminated against. if you look at states like georgia and indiana, that require photo i.d., voting has actually increased in those states and it is even increases among minority voters. so i really think that we are at a point where this is a moot case, or or moot point or your average voter across america overwhelmingly according to a "rasmussen poll", about 75%, says of course you should have voter i.d. when you go to the polls. we should insure the

integrity of elections in america. heather: so you both agree on that point. kirsten, what do you think, move it forward to texas because they will be under review. what do you think will happen with texas? is this a sign of things to come? >> i don't know what is going to happen but i would say in terms of the studies there are other studies show that it adversely impact african-americans and adversely impacts poor people. i think everybody can find the studies that they want to support, you know, what they're saying. and i think that we can't, i personally think it is kind of undeniable that the people who don't have them are poor people and are black people and that we have to be realistic, this does impact them adversely. i think then people have to decide, you know, that they want to address that issue, like i said, setting up a foundation or something. it will be interesting to see. will republicans set up foundations to help these people get i.d.s. heather: karen what do you think will happen in terms

of next down the road with texas? >> i think that certainly the attorney general, eric holder is going to be very aggressive. i think that politically this is not smart. he has already played the race card when it comes to "fast and furious" which is the scandal taking place right now whereby u.s. guns were sold to drug lords and cartels in mexico at the behest of the department of justice and one of those guns was actually used to kill a border agent and somehow this racist issue according to eric holder. i think if he continues to place this race card on an issue that is fundamental, it is common sense. it is about voter integrity i think it does not make the white house looks good. i think it brings undue attention to the attorney general and, you know, again, this is about the integrity of elections. that should be the most important thing. of course we can help any

poor people or minorities. it is not just the african-americans. we're talking about perhaps newly registered immigrants. there are programs, we can certainly insure that they have every access to voting and we should make sure of that but we can also insure the integrity of elections. heather: i have to wrap-up and kirsten that has to be final word. thanks for joining us this day after christmas and hope you had a great holiday. >> thanks. gregg: very extreme weather in the south creating tough travel conditions for parts of the country. today's post-holiday rush but the worst stuff could still be still on the way. meteorologist, maria molina in the news weather center. what is it like down there? >> gregg, unfortunately we're seeing a lot of roehm out a storm system in the lower mississippi valley producing heavy rainfall. we're seeing rainfall rates up to an inch per hour and that's where we have flooding concerns that is

state the mississippi, louisiana and basically been raining out there over the past 24 hours. we're continuously seeing that rainfall slowly moving toward the north ears and this storm system will really get its act together and start to see it move in our general direction here in the northeast. new york city we could see some of heavy rainfall as we head into tomorrow afternoon. it is along mississippi and portions of louisiana and northeast. if you're doing any post-christmas shopping or returning any gifts no problems whatsoever with the day's weather but the storm system getting its act together as we head into tuesday morning. on the backside of the system cool air will move behind it from canada and that will change the rain from snow into ohio and indiana. you can see some of that snowfall. we're not expecting big-time snow accumulations. but look at that rainfall, that is heavy rain along north carolina, south carolina up through portions of the interior northeast. but tuesday evening it will

impact the big i-95 cities like new york city, philadelphia up into boston. however big cities not looking to get any snow out of the system. it will stay too warm for any of that. mainly rain. interior portions of the north ears and downwind of the lakes you could get snow and also into portions of new england as we head into the next 48 hours. how much rain will we pick up? quite a bit across mississippi. that's where our flooding concerns are. there are a number about flood advisories out there right now and flash flood warnings where we have reports of flooding ongoing right now. so that is a major concern. please do not drive through any flooded roadways out there. otherwise high temperatures today, 45 in new york city. so not too bad. 46 in minneapolis. look at minneapolis. cold air moves in by tomorrow. high temperatures tomorrow only 30 degrees. so bundle up, guys. gregg: it hasn't snowed in minnesota very much. i was with somebody the other night saying, where's the snow? >> a lot of people getting a brown christmas. gregg: this time last year on this day it was blizzard here in the northeast,

remember that. >> yes. i had flown back from north carolina i was ahead of the storm. every flight after me, couldn't get out. gregg: lucky. >> just in time. heather: christmas gifts, they come in all shapes and sizes but for one cleveland family the present came with six new kids. jack shea with our cleveland affiliate has the great story. >> reporter: when jim and jena wilson of medina left for the philippines earlier this month they had four children, their two biological sons and boy and girl they adopted when. they returned from philippines they suddenly had 10 children. jim wilson says the decision to take on such a commitment was a spiritual calling. >> most people don't wake up in the morning thinking i want to adopt six kids. for me, it was really something i felt like god challenged me to do. >> reporter: the wilsons met the six brothers and sisters in 2005 when they went to the philippines to pick up

the first child they adopted. the orphans history was heart-breaking. >> their father died suddenly of a heart attack. their mother was too poor to take care of them. so she surrendered them to the children's shelter. they stayed in the shelter the last six years. >> we couldn't get that image out of our hearts and minds. each one of the kids are so special. we're so blessed to have these six kids. >> reporter: jim wilson is a registered nurse and his wife gina home schools the children. they say the addition of six to financial and logistical equation at home will be a challenge. but their two teenaged sons endorsed idea. >> we're very crowded i think we could pull through but yes, we will have to adjust. >> reporter: as the wilsons embark on a great adventure with their new family, they're reminded of biblical verse that reads in part, better to give than to receive. >> i'm excited for all 10 of our kids to be together and that is the best christmas present i could have as a

mom to have our kids together. gregg: bold accusation that is the tea party now could undermine the gop majority in the 2012. we're going to talk to a member of the house tea party caucus about that. >> usa!. no problem. you want to save money on rv insurance? no problem. you want to save money on motorcycle insurance? no problem. you want to find a place to park all these things? fuggedaboud it. this is new york. hey little guy, wake up! aw, come off it mate! geico. saving people money on more than just car insurance. goals for the future... what if they were stolen from you? by alzheimer's. this cruel disease is the sixth leading cause of death, and affects more than 5 million americans. the alzheimer's association is taking action,

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heather: welcome back. the american teenager who scaled mount everest at 13, climbing his way into the record books. jordan romero, california, that is him, atopped he have rest in 2010. now the world's youngest person to climb the highest mountains on each continent. the 15-year-old completing this feat saturday after reaching the taupe of mount vinson. that is in antarctica, if you don't know. jordan setting his sights on the record at age 10 when he reached the summit of africa's mount kilimanjaro. good for him. gregg: well the tea party is taking some heat from the most senior republican member of the u.s. senate, indiana senator dick lugar

who is facing a tough primary challenge from a tea-party backed candidate, claiming why the republicans are minority in the u.s. senate. the reason the gop could fail to take the senate back in 2012. >> there were people who claimed that they wanted somebody who was more of their tea party aspect but in doing so, they killed off the republican chances for a majority. this is one reason why we have a minority in the senate right now. gregg: republican congressman louie gohmert of texas joins us now, a member of the house tea party caucus. good to see you, congressman. he is talking about losing delaware and nevada and colorado. does he have a point? >> he, the only way he could have a point there if you give the tea party credit for having the biggest wave election in the history since the 1930s, you can't blame them for not getting majority in the senate and

not give them credit for over eight at this elections, republicans being elected in the house. gregg: right. >> they gave us control of the house. and so, it sounds like we just need some bet every candidates and we'll have control of the senate next time but --. gregg: congressman, you guys are getting blamed, the tea party caucus in the house. >> right. gregg: for what is essentially a fiasco according to "the wall street journal"'s conservative editorial page. they say, you know, you totally lost the battle of perception and did great damage to the party. in fact, let me quote them here. after a year of the tea party house, mr. obama and senate democrats have had to make no major policy concessions beyond extending the bush tax rates for two years. mr. obama is in a stronger re-election position today than he was a year ago and the chances of mr. mcconnell becoming majority leader are declining. long, congressman, are you guys to blame for all that? >> no.

what's too blame is people that have not lived up to their promises. you've got a lot of republicans a lot of tea party folks, and by the way, we're told that maybe 53% of all the taxes will be, i'm sorry, all the taxes will be paid by 53% of the americans and most of those are tea party folks. they're tired of paying most of the taxes. all of the taxes at 53%. and what we need is some people who keep their words. gregg, we have just now finished a year in which we got the majority by promising we would would cut more than 100 billion, with a "b" and we may have not even cut 100 to 300 million last year. gregg: yeah. >> i mean --. gregg: congressman explain this to me. >> this is disappointing. gregg: i've known you since you were on the bench. a terrific judge. >> back in '94. gregg: you're one of the smartest twice i know in congress. explain this to me. you guys defeated the

millionaires tax on the payroll tax cut extension and you won the keystone pipeline provision and so, arguably you have won more than the democrats did in this whole thing and yet, you come out of it kind of looking like you lost. how did that happen? >> yep. well, actually, what we have here, gregg, is a failure to communicate. because if the message had been properly communicated to the senate, that we were not going to go along with a two-month extension, then the senate would not have voted 89 votes for that two-month extension. they had the word, according to them that they had been told we'll go along with a two-month extension. gregg, we had reforms of welfare on there. we had eliminating millionaire's ability to get food stamps and welfare. we were going to allow states to drug test to get welfare. you couldn't take the child tax credit if you didn't have a soes security number,

enough of illegals getting money back. gregg: i'm up against a hard break. >> so great stuff in there and we're going to make that happen this year. gregg: i know. >> we'll make it happen. gregg: congressman louie gohmert, great to see you. merry christmas to you. >> thank you looking good! you lost some weight.

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martha: with all the combat troops out of iraq families all across the country got to celebrate happy home comings just in time for the holidays. we were at fort hood in texas when the troops returned. >> reporter: this woman is trying to be patient. she hasn't seen her husband since may. she sits inside a holding tent with her son, mother and law and many other family and friends. >> this is his second deployment, and he's been gone

since february. >> reporter: sammy is also waiting. this is her son's fourth deployment overseas. >> we are very, very -- we are beyond ourselves. >> reporter: mindy says although this homecoming ceremony is not something kne something new for her, she is still very excited. >> it's a big day. even i'm nervous, and excited, and i'm anxious. >> reporter: the wait was a wet and cold one. [cheering] >> reporter: once the first cavalry soldiers were off the bus and on the parade field the wet wait was worth it. >> it was just so exciting. i could just not wait to see them get off that bus and be in formation and watch them march across the parade grounds and look for my son, and i couldn't find him.

i knew he was out there. >> reporter: this woman finally spots her soldier, brian. after a few hugs he finally got to hold his son again. >> it feels great. i'm really happy. it's been almost a whole year. i'm ready to get home and spend some time with my family. >> reporter: steven also found his family. >> god bless america. >> reporter: just a short week ago these same soldiers were the last brigade to walk out of iraq. are they excited? you bet, glad to have made it home for christmas, they told us what they've asked santa to bring them. >> mom's cookies was at the very co cop of that list. >> gas money. >> it is such a blessing, it's the best christmas i've ever had right now >> didn't want anything e. said he jus. he just said he wanted to come home. gregg: our best wishes and happy

holidays to everybody in uniform. martha: yes, hope that you had a good christmas as well. gregg: you were down in north carolina, right. >> reporter: yes, i was. gregg: lucky to get back in time. an amazing story of survival. i want to tell but this. a family trapped in their suv for 48 hours underneath this massive pile of snow. can you believe that? look at that. how do they get out of this one alive? we'll tell you. >> the back wheels was spinning on the ice. i tried to back up and go forward and maybe we can get you out u know, and u you know, and i tried that about three or four times. we started moving forward a little bit, but that's when the back end of the car slid to the right and off the road. that's when we kind of looked at each other and realized that we could be in some serious trouble. [ male announcer ] sometimes a hint is all the wrapping a gift needs. wait a minute...i... [ laughs ] [ male announcer ] the lexus december to remember sales event is here,

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shannon: setting up talks with the taliban. reports say that the u.s.-backed government in afghanistan will agree to a taliban office in nearby kutar. a design to be a home base for peace talks with the heavily armed opposition group. welcome to the grand new hour of "america's newsroom." i'm heather childress. gregg: i'm gregg jarrett. no foreign powers can be involved in the process without taliban consent. shannon: they must first stop violence against civilians, cut ties from al-qaida and accept the afghan constitution. david piper streaming live for us from kabul. >> reporter: yes there is growing support in afghanistan for some kind of peace talks with the taliban. bringing them in from international isolation.

the high peace council has given support for an office of the taliban to be opened. that's been quite controversial. we believe the afghan government didn't support this. because they weren't in the direct negotiations about the office. but they have put some strict pre-condition pre-conditions for that office opening. that of course includes the taliban stopping killing civilians, and also other attacks, heather. >> reporter: what is the likelihood of these talks starting or working? >> reporter: well, it's very early days at the moment. this does seem to be some movement by the afghan government. they have, of course, put some strong pre-conditions. but an afghan government official said he didn't believe the pre-conditions president buspre-condition were so strong that the taliban would walk away from the office and possibly the peace talk. the taliban has said they won't

stop fighting until foreign howers leave this country. powe. that of course isn't one of the preconditions of the office and perhaps these talks. what the high peace council has said is no attacks on civilians, and also they should respect the afghan constitution. there does seem to be some leeway. these are early days before there could be any peace in this country. >> reporter: thank you, david. gregg: in the meantime vice president joe biden working the phones on a deal over the recent violence in the political crisis in iraq. biden spoke to the country's leaders there, urging them to work together to keep a lid on sectarian differences. the crisis began after the last troops left iraq when the prime minister accused the country's vice president of running death squads. last week a series of bombs ripped through baghdad killing 60 people, sparking fears that

iraq's coalition government might collapse. >> reporter: fear seizing m nigeria after bombings at churches. 39 people died. a local sect claiming responsibility for the bombings. this was a second year in the row that the group staged christmas day attacks. the white house condemning the violence and offering condolences to the nigerian people. gregg: to syria, there are new reports of bloodshed in the nine-month-old uprising there. syrian forces reportedly pushing forward with a violent crackdown against opponents of president bashar al-assad. a pair of suicide bombings in the capitol city of damascus only adding to the growing fears. this as arab league observers arrive in syria to get a firsthand look at situation. leland vittert is live with more. what is the latest? >> reporter: it seems like, gregg that the syrian government

may be trying to kill as many people as they can ahead of observers coming into town. we are talking about a matter of hours until they are indeed on the ground in damascus and get a chance to get a first-hand view of what is going on. from home comes a story of an artillery barrage which has leveled one neighborhood and killed about 20 people. that is the center of the uprising there against president sad r-frplt i bashar al-assad. it appears the military will stop at nothing including shelling into civilian areas to keep president bashar al-assad in power. observers are from the arobject league who are trying to stop the violence that has killed 5,000 people at the hand of the government forces. the observers don't really have any weapons on them and they don't have the ability to stop any of the violence. they are just there to observe. so the syrian government can continue doing whatever it wants, gregg. gregg: leland, what is going on in yemen nearby?

>> reporter: also some very scary stuff in yemen. for a while we thought it was getting calmer. now it seems to have spun out of control, if time when some of the opposition forces marched towards forces loyal to president saleh. foes forces had wanted justice for people who had been killed before by president saleh's troops. the cycle of violence perpetuates itself. president saleh had been a supporter of the war on terror and a strong u.s. ally. it appears it is going to split along tribal lines. once that happens you have a civil war and the potential for a failed state where al-qaida in the arabian peninsula can get even stronger. >> reporter: the president is reacting to the situation in yemen from his vacation in hawaii. as the president and first lady spent part of their christmas day visiting u.s. service members and their families.

doug is traveling with the president. he joins us live from honolulu. what is the administration saying about yemen? >> reporter: good morning. the president is on vacation here but he's still getting his daily pwraoefrbgs his white hous daily briefings. u.s. officials have reached out to yemeni officials. john brennan telephoned yemen's vice president, according to a white house spokesman, brennan quote emphasized strongly the need for yemeni security forces to show maximum restraint when dealing with demonstrations and refrain from provocative acts that could spur further violence. they said they would their up most to prevent further bloodshed. as for saleh, he has made a ask of the united states to seek medical treatment here. the white house says that request is under consideration, but it will only be granted if

his medical needs are deemed to be true, so they are still looking into this. they are considering allowing him into the country, but no decision yet. >> reporter: this is after all a vacation, how is the president spending his time in hawaii? >> reporter: well, very early in the morning today, obviously, but yesterday the president and the first family kind of fell into for what for them has become a christmas routine. they visited the local marine base here to attend church, all four of them, the president, the first lady and their daughters. for there they went back home where they can assume any way that the president watched the chicago bulls eek out a win over the lakers. later in the day the president and first lady actually returned to that base to help service members there celebrate christmas and thank them for their service. this led to kind of one amusing moment where the president held up a baby as they were greating

a family and the baby almost immediately shoved the fingers in the president's mouth. the president played along with this. looked a little bit surprised. the secret service obviously did not deem the baby to be much of a threat to the president. >> reporter: here is a question, democrat or republican that baby, i'm wondering. thank you, doug i appreciate it. >> reporter: i'm not sure, he's still in the formative years. gregg: the old fingers in the mouth routine. that is an independent if ever i saw one. >> reporter: oh, you think. gregg: in georgia now a woman linked to a suspicious package killed by police. investigators say an officer responding to a panic alarm went to the home of a woman on christmas morning. he says the 53-year-old attacked him with a knife and handgun. the officer fired his weapon killing the woman. the officer was treated and released. the woman was arrested for sending a suspicious package to

a new york state senator greg ball back in april. one week out from iowa right now, and the winner of the 2008 caucuses says next week's winner could all come down to weather, believe it or not. >> reporter: yep, and a devastating loss for a connecticut family. a christmas eve inferno takes the lives of five people. today the investigation into exact what happened. gregg: an incredible survival story, a family trapped inside a car inside -- look at this. can you believe that, two long agonizing days, the scary moments when they weren't sure they were going to make it, coming up. >> that's when we kind of looked at each other and realized that we could be in some serious trouble. my wife and i looked at each other and held hands, and told each other, i love you, and prayed.

when bp made a commitment to the gulf, we knew it would take time, but we were determined to see it through. today, while our work continues, i want to update you on the progress: bp has set aside 20 billion dollars to fund economic and environmental recovery. we're paying for all spill- related clean-up costs. and we've established a 500 million dollar fund so independent scientists can study the gulf's wildlife and environment for ten years. thousands of environmental samples from across the gulf have been analyzed by independent labs under the direction of the us coast guard. i'm glad to report all beaches and waters are open for everyone to enjoy. and the economy is showing progress with many areas on the gulf coast having their best tourism seasons in years.

i was born here, i'm still here and so is bp. we're committed to the gulf for everyone who loves it, and everyone who calls it home. so i used my citi thank you card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes? we talked about getting a diamond. but with all the thank you points i've been earning... ♪ ...i flew us to the rock i really had in mind. ♪ [ male announcer ] the citi thank you card. earn points you can use for travel on any airline, with no blackout dates. gregg: a texas family incredibly

grateful tpob aliv to be alive today. their surbg suv was buried in a snowstorm. they were headed for pre christmas skiing. they ended up stuck buried by a blizzard. it took two long days for rescuers to locate them by sticking poles in the snow. david higgins says his family nearly ran out of air. >> that's when we kind of looked at each other and realized that we could be in some serious trouble. my wife and i look at each other and held hands, and told each other i love you, and prayed. it was a christmas miracle that they found us, and secondly, it's a huge christmas miracle that we did survive and we are alive. and now we are really anticipating a third christmas miracle for a quick recovery and healing for my wife. gregg: the mom is recovering now from pneumonia at a nearby hospital.

dad and daughter are doing fine. heather: just over a week until the 2012 presidential election kicks into high gear with the iowa caucuses, but could the weather end up determining which candidate wins this first major contest for the gop nomination? according to former governor and fox news host mike huckabee it could make all the difference. >> reporter: ron paul has an exceptional organization there. it could very well be he could end up winning because the extraordinary devotion of his followers. he has people that would walk over broken glass for him and they'd break the glass just to be able to say they did it. ron paul, because of his organization could, and that's where mitt is really at a disadvantage. he doesn't have the devotion. if the weather is good mitt romney is in better shape. if the weather is bad, and it's

real touch to get out, ron paul will win. heather: doug schoen is a fox news contributor and former pollster to former president bill clinton. >> happy ha holidays. heather: happy holidays do you as well. th >> the "real clear politics" has a slight lead for ron paul. some have mitt romney ahead. in some newt gingrich is trailing badly, in others he's on the heels of the others. the poll supporters have great degrees of devotion and passion for ron paul, and they are probably more inclined to turn out at either th than either the romney or gingrich voters. heather: the compassion that

your supporters have, or the organization, do they go hand-in-hand? >> i would say they do go hand-in-hand, but if i had to pick i'd say devotion. organization only goes so far. you can call people on the phone, you can show up at their house, but if they are not committed to a candidate they are not going to come out and vote. what governor huckabee said is exactly right, the ron paul voters are dedicated, devoted, they are passionate, and a lot of them are getting into politics for the first time because of congressman paul. heather: and what about history, in terms of the iowa caucus? what does history tell us may or may not happen there? >> history tends to suggest that the more conservative candidate tends to exceed expectations, whether it be path robertso pat robertson in 1988 or governor huckabee the last presidential election. there is a late-breaking

phenomenon where the more conservative candidate who generally has more enthusiasm gets late support. anything can happen in the caucuses, it's a cold winter night, there is no rule of thumb. bottom of line if you'd have to say you'd give paul an advantage based on the past. heather: i think it's going to be relatively mild in terms of iowa conditions. i want to throw a name out to you, though, michelle bachmann. >> she is from obviously a neighboring state, she was pwoerpbd in iowa, she has worked the state in a dedicated fashion for over a year. she could surprise as well. heather: i have to wrap it you for you. i did want to talk to you a little bit about new hampshire and what is going to happen there. we'll have to save that for next time. thank you very much. >> thank you. heather: fox news is america's election headquarters. tune in for complete coverage of the iowa caucuses on january 3rd as we said, starting at 6:00pm. fox news your front row seat to politics. gregg: and computer hackers

pulling off a big-time breach at a major security firm whose clients include the u.s. air force and apple computer. details on the info they tapped into and what they apparently plan to do witness. heather: china's military on the move, why they are saying that two dozen warships and 8,000 soldiers are not a threat to international security? [ male announcer ] you have plans... moments you're looking forward to... what if they were stolen from you? by alzheimer's.

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heather: china flexing it's naval might, conducting drills off the horn of off ka. africa. this is the third anniversary of china conducting missions in that part of the world. china moving to beef up its

presence in the indian ocean, using as the seychelle islands. gregg: a very sophisticated network claiming to be robin hood, hacking into a u.s. security firm that handles everyone from apple, to believe it or not the air force. their stated goal, stealing from accounts and giving the loot away as christmas donations. peter brooks, former cia officer, now a senior fellow at the heritage foundation. beater g tpeter good to see you. >> good to see you. gregg: you say there are three areas we should be concerned about. cyber activism. let's talk about that first. >> that's when a group goes out and high school a political statement it wants to make or advance some sort of agenda. it can be generally harmless. it is intrusive and it messes with people's cyber capabilities and computers annette works and

things like that. that is probably the least damaging. gregg: what about cyber crime? >> that's a big issue here. it's actually one that people don't talk about. it could be anything from identity testimony or to something like this act as well where they took people's credit card numbers and used them for other purposes. people have to be very careful when they are online with their identity and credit card numbers. there are people out there who want access to them and will use them. gregg: what is cyberwar fair. >> that is military. essentially where a potential add srer say are row or enemy will get into your computer systems and shut them down. the united states needs to be very conscious of this. the pentagon gets attacked on a regular basis and cyber security is critically important to maintaining the integrity and tap built of those net works. there is also cyber espionage. that is where somebody comes in and wants to steal your government secret, or it could

be your intellectual property, your propriety information that they would use for your own purposes. stealing the crown. juliet: of your property is very damaging. people will be able to come upon those formulas or processes and use them in competition with you. gregg: what do we do about it? >> this is a wake up call. cyber security is something that everybody has to take a look at, whether you're talk about your own personal computer, our office computer, government computers. this is very serious. if you are hooked up to the internet you are vulnerable to somebody inch traougd into your system for their own purposes that may not be in your best interests. gregg: should we join one of these groups that protect us, you pay a fee and so on and so forth? what do you do? >> i don't want to be an advocate for any particular way. at night when we go to bed we lock our doors. companies put fences around

their businesses. we need to take the steps that are recommended by experts. i'm a national security e expert but i'm not a saoeurb expert. the fact is we need to take steps to protect yourself from cyrus, from intrusions, from people getting into your systems that will be adverse to your interests, yourself, or your business or your government. gregg: we can do that online, right? i mean, you know, you don't want to advocate any particular group, but you can go online and find security firms that will protect you, true? >> absolutely. absolutely. and i think all cyber security experts advocate that. but it also has to be done by businesses which have much more to protect. they have networks. we have a laptop, these guys have networks. the government has networks upon networks, they have to take the effort to go out there. the threat is out there, we need to recognize it and take steps from individuals to the government to protect ourselves from people who will get inside of these computers annette

works. gregg: listen, the internet is a wonderful thing but it's also a criminal opportunity, so you have to be wa remember, about that. pretrialer brooks, great to see you, thank very much. >> thank you. heather: the economy picking up steam or not so much? the outlook for the next year, we'll have that for you coming up. gregg: and christmas tragedy in the state of connecticut, what caused a house fire that killed five members of one family. we'll have the latest on the investigation. >> there's two people -- there were seven people that occupied the structure. sue were able to get out, five did not make it out of the structure. >> who are these people and what condition are they? >> i have no idea who they are, or what condition they are in. we had our hands full from the moment we arrived on the scene. let me tell you about a very important phone call i made.

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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, gregg: got a deal for you. how would you like a casino in your backyard. steve wynn says it is a win, win situation. >> reporter: in the 1700s in the years leading up to the american revolution the town of foxboro massachusetts is best known today as the home of the new england patriots. a kazakhsta casino mogul wants to bring in gambling.

developer steve wynn is teaming up with pat's owner to put in a casino across from the stadium. they promise a facility that fits with new england sensibility. nothing like vegas. >> a five-starry sort, appropriately sized and scale is an image very nice. >> reporter: they say the plan is a win, win, promising $10 million in tax revenue each year and tens of thousands of jobs. at a town meeting last week residents were already taking sides. >> i think it would be good as long as it's done right. they put it in, they pay the property taxes, because right now a lot of people in foxboro are unemployed. >> we need to tell mr. craft and mr. wynn that this is not right for our community. >> reporter: the town manager believes the stakes are just too high.

>> what i'm watching is the disintegration of that sense of community over the promise of a great deal of money. >> reporter: the national football league bans craft from owning a casino interest but a deal would allow him to lease the land to wynn. >> i understand why moms could be concerned if they saw this as some kind of casino, i really see it as a destination resort. >> reporter: the foxboro board of select men have invited wynn to appear at a special meeting on january 10th where the he'll be given a chance to convince the people that this would be good for the community. molly line, fox news. heather: thank you, molly. it is now 30 minutes past the top of the hour. china testing out a high-speed train capable of going over 300 miles per hour, this after a rough year, though, for china's rail industry that included a high-speed train collision, that crash killing 40 people. in south korea pro and

antiprotestors tried to set up a norm tpal for kim jong-il. his funeral is set for wednesday. shoppers in britain packing into stores to take advantage of boxes day sales. the origin of the holiday is a matter of debate, though, some believe it marks the day servants took off after working on christmas. gregg. gregg: investigators at the scene right now in stanford, connecticut. they are searching for clues on the cause of what the mayor dubbed the most tragic christmas day in the city's history. five members of one family, three children and their grandparents killed in a horrific house fire early sunday morning. john huddy is at the scene. >> reporter: it's a striking contrast, a beautiful view of the long island sound, then an absolutely unspeakable and awful story and situation happened here in stanford early in the

predawn hours, early yesterday morning, christmas morning at the home, what's left of it of 47-year-old advertising srut euf madonna badger whsrut euf madonn executive madonna badger. badger, her twins and parents died in the fire. a family friend and another person escaped unharmed. the home was under renovation. while it appears the work did not cause the fire, officials say it may have head it to spread. at this point the cause remains under investigation. fire investigators are expected to be back on the scene today. back to you. gregg: john, thanks. heather: now to your money. investment professionals looking into their crystal ball see the bulls ready to run on wall street next year, that's what they say. some predicting that stocks will rise more than 10%.

but forecasting the stock market can be a dangerous game, many expected big gains this year, instead the dow going on a roller coaster in the last six months. steven moore senior economic writer for the "wall street journal" joins us now with his take on it. hi, steven, thanks for joining us. >> hi, heather, great to be with you. heather: look into your crystal ball and tell me what you think will happen. >> it's not just this past year but the last decade we've seen a hurky jerky motion, no gains virtually at all in stocks. you normally expect that 2012 would be a very good here for stokes because we are in a bit of a recovery right now, as you know the stock market took a huge hit during the depths of the recession. nor alley you'd senormally you'd see a big rise in stocks in 2012. but the major stock movers

suggested we'd see a big gain and we didn't see that. very difficult to predict where we're headed. i'll take a 10% gain this year, i'd love to see it. heather: you'll take it. the stock rebound depends on economic rebound but there are in fact several factors pulling down economic growth. >> let's talk about a few of those. the obvious one is what is happening in europement europe is technically in a recession. we are also integrated. it's difficult for the u.s. economy to grow rapidly when europe is flat. you've got the problem with this enormous debt. we are now going to run the fourth straight year of a trillion dollar deficit or more. that takes money out of stocks and into people buying those government bonds, that is bad for stocks. and then you've got the other big issue that people aren't quite focused on yet, which is we've got this 2013 huge tax increase that will be capital gains and dividends and high income earners and businesses.

businessmen are saying, wait a minute do i want to invest in this coming tsunami of taxes? i do think maybe the most important thing for the stock market in 2012 will be how this election -- how voters and investors perceive this election is going. heather: let's go back to the current debt situation and the current administration, and president obama's regulatory policies. those also direct effect on what will happen with stocks. >> yeah, negative unfortunately. let's just give a couple examples. last week we saw a new epa regulation that is going to close down coal burning plants and raise electricity prices. that is not good for the economy. we've been talking about the keystone pipeline, that is an issue that could create something like 15, 20,000 jobs. it's something i think most americans would like to see. the obama administration has held that back. i do think, look, i'm not trying to be partisan here but i do

think president obama is a little bit barrish for stocks. if there was a sense that maybe he's not going to be reelected i think stocks might do a whole lot better. people want change and hope and maybe that is in a new administration. heather: maybe a different kind of change. what about in terms of the republican candidates? is there one that would bode better for stocks than another? >> boy, that is a tough call. really, honest lie i think almost any of them would be bullish for stocks. mitt romney has the business experience, he's turned around companies that have failed. we have a country that needs a turn around artist. i think mitt romney might be the one who for investors, might be the most comfortable choice right now. look, you know, it's very difficult to predict because sometimes when you get democrats in office, let's take the clinton years we had a very good stock market during bill clinton's administration. this is not a partisan thing it's more on the policies. how the policies that are going

to be pursued in 2013 and after. are they going to be progrowth and proceed investor. heather: i have to wraup u wrap you up, the yes or no question, answer this if you will. we've come off a big football weekend. for incher investors should they go for the hail mary pass and diversify or not. >> i'm always against the mail mary pass. always diversify and be protected against down-side risks. the things people have to be worried about is what i call sucker rallies. the stock market goes up and people say, oh, we are in a recovery. it goes up and down, so be very careful. heather: steven i have to wrap you up. thank you very much, we appreciate you joining us. >> happy holidays. gregg: christmas may have come and gone but the shopping frenzy is not over yet, not by any means. retailers still have vision of profits dancing in their heads

luring in shoppers with post christmas tkaoefplts some stores slashing prices up to 70%. you should have waited, heather. the day after christmas traditionally the second highest money-making day for retailers. heather: 70%. can you take them back and buy them again? gregg: you cannot do that. see that is the bummer about it. i saw 50% off the day before christmas, now 70% o. heather 70%. gregg: get out there and spend. heather: wait a little bit longer, maybe 80, 90% off, free? gregg: i'm anything not. they put their bodies through a meat grinder for a living, that's what they say at least. a group of former profootball players say america's game caused them permanent brain damage and they are taking the nfl to court. heather: that is a tough sport. and rarely are the stakes this high, just for military exercises, where iranian war games could soon have you paying

more for oil and gasoline.

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gregg: heavy gunfire now we're hearing in syria, killing at least 20 people in haames. new observers are heading to one of the hot spots to oversee a deal to end a bloody anti-regime descent which shows no signs of abating since erupt nothing march. heather: iran flexing its muscles in a interest that is vital to the us. they are launching massive naval exercises in the key passageway. the war games near the straight ostraight of hormutz will go on. the maneuvers could bring

iranian warships close to u.s. navy ships in that area. gregg: a group of former nfl players are suing the nfl saying they suffered severe and permanent brain damage linked to concussions they suffered on the job, and they accuse the league of deliberately concealing years of evidence. assistant district attorney in new york. and a veteran criminal defense attorney as well. randy, there is a thing you learn in law school called assumption of the risk. if you willingly engage in a knowingly dangerous activity you assume the risk. isn't that this? >> a fancy way of saying, when you strap on the pads and you put the helmet on, where else is it legal to assault someone but on a football field. gregg: hockey. >> hockey and boxing. the point is you put those pads on, you assume you're going to

get injured, it's part of the game. gregg: anna. >> i don't think it's that simple. they assume the risk of broken bones, ligament damage, even con cushions i don't think they assume the risk of dementia, long-term brain damage. the best argument of the players is that the nfl took on the risk, this duty to their players when they formed this internal con cushion committee. now they have formed this committee, presumably now the players can rely on the information coming out of that committee to guide them, and then they can make an informed choice. if that information is skewed in the interest of the owners, then the players i think have a pretty good claim. gregg: randy, you know what, if you talk to any former nfl player they will tell you, look, they were always pushing us, get back on the field, get back on the field, even if you're hurt, come on, be a man, that sort of thing. >> i've got to tell you, gregg, i disa tkpwraoefplt th disagree. you're talking about warriors. ronnie lott once had his finger

amputated so he could play and why? the median nfl salary is $770,000 with a life span of three and a half years. you'll pay almost $3.3 million over three years. i'm staying on that field. if i don't stay on the field i'm not going to get paid. personal responsibility, i want to be on that field. >> i think that is a great pint for the nfl to come out and make. however, even maybe 50% you can say the players responsible, they are not letting the doctors, the managers know about their injuries, they are partially responsible. if they don't have the information to make that informed choice they still with receive damages. they can be awarded, and that's why i think we are looking down the road at the federal system here. gregg: i think there are problems of evidence here, randy. i'm not sure that all of what you argue can be introduced as evidence. >> which is why in my humble opinion this has got to be settled. there are evidentiary problems

on both sides of the aisle. something else we learned in law school is skepbt subsequen subsequent remedial measures. if i can fix this can you use it against me. who knows what was really going on behind the scenes. the nfl wants the players on the field as much as the players want to be on the field. gregg: what about that? the nfl now is making an effort to be proabg teufr. if they se proactive. if they see any signs of concussion they prohibit the player from going back into the game. >> it makes you go back and look and say about twapd 2005 to 2010, if it can be proven. i think we are starting to see there will be evidence there and potentially a lot. >> cover up is such an ugly word. hrours use it allawyers use it all the time.

>> they came in and said this system was infected, we have to clean it up. it was so skewed and tilted, why was that? who benefitted? yes, police are in the short term. butt ownership are the onebut the ownership is raking in the dollars. >> the players want to be on the field. the tph-fz wantthe nfl wants them on the field. so everybody can watch the game. why are we putting this in a courtroom? they should be sitting somewhere and trying to come up with a remedy that takes care of everybody, because they all want the same thing. >> that is true. but you go back you look at the tobacco litigation, the asbestos litigation, that is what this is like end to. you had a lot of settlements there, you had jury verdicts, however it needed to go through that process to get there. just to let people know to make an informed choice. gregg: thank you both.

heather. heather: coming up next "happening now" with jon scott. he's standing by to tell us what is going on. hi, jon. jon: good morning to you on this day after christmas. a suspected cartel kingpin arrested. could the u.s. get enough intel info from this guy to end violence across our southern border? we'll get into that. peace on earth, a week and a day until the first contest in the presidential race. we'll look at how the candidates are pulling out all the stops. this as a couple of candidates try to recover from a set back in a state. information hacked by a group called anonymous. a warning of more attacks to come. is your id safe? it's coming up "happening now," top of the hour. heather: goodwill towards men in political ads? not sure about that. could the way a hospital look

actually help heal patients. gregg: a group of wrestlers save christmas after a group of thieves almost ruin it for a family. >> it breaks my heart that someone would break into a storage building this time of year, how tough times are. >> we can be the badest people inside the wrong, but outside the wrong, it's christmas, everybody can be good at least one day a year, right? l a deepe. up to a two times cleaner feeling. new crest complete. feel it working. or annuity over 10 or even 20 years?

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gregg: a famous event in american history happening once again. george washington's christmas day crossing of the delaware river. remember that? yeah i remember that. over one hundred people taking part in the re-enactment as hundreds more watch from the banks of the river. george washington led the

continental army across the icy river back in 1776 on their way to defeat the hessian mercenaries stationed in trenton, new jersey. my daughters always ask me, what was washington like, dad? they think i was there. heather: when you picture a hospital, a cold and sterile interior may come to mind, but now facilities all across the country, they are trying out a different approach to hospital decor that may help patients heal. anita vogel is live in los angeles with more on that. >> reporter: think along the lines of a luxury hotel, like a for seasons or a fairmount, maybe not quite. if you see a hospital under construction these days it's probably being built with evidence-based designed, the latest in healthcare architecture. more than a thousand studies have shown a patient's

environment can have a major impact on comfort and healing. they are working on sooting elements like natural light and warm, subtle colors. this is a mourned room for a heart institute in scripps, california. the hopes is a comforting environment like this could speed healing, which could shorten your stay meaning a lower over all cost to you, the hospital and your insurance company. >> we are trying to create more value for our patients, finding ways of reducing ko*s and increasing quality at the same time. we know for a fact this will increase quality. if it does reduce length of stay, it reduces need for pain medication or other interventions that will be of a huge value to patients. heather: evidence-based design goes beyond patient rooms. hospitals are incorporating things like canine therapy which have been shown to reduce anxiety. and tranquil healing gardens. just ask the patients. >> to be in a facility that

requires you to be inside is difficult when you're used to go, go, go. there is a facility that offers you a place you can so outside and see a lizard run across the sidewalk, or a fountain, have some normal part of outside is so helpful. >> reporter: obviously rebuilding these rooms is an expensive undertaking for these hospitals much the rebuild at scripps in southern california is a $400 million venture but the ceo says this is an up front cost to the hospital, it will be absorbed over time. part of the overall goal is to reduce costs for everyone. heather back to you. heather: i think that is a great idea. it makes perfect sense, soothing colors, nice comfortable couch in the room. >> reporter: you might want to stay longer. heather: maybe not that. won't go that far. thank you anita. gregg: after what seemed like a don deal in the iowa caucuses, new polls out showing a surprising turn around, who is now in the lead and what this means for iowa and the

nomination process.

gregg: wrestling, very real for one little boy who had christmas ripped out right underneath him. 7-year-old lucas smiths had all of his presents from the storage space his dad was using a local group called wildcat championship wrestling. they heard all about it. so they staged a steel cage bonanza just for him. >> never seen a steel cage before. tonight every match is a steel caged match. this is biggest christmas present i got to. gregg: lucas later found out all the presents underneath the tree were for him. wasn't that a great effort

by that group? good for them. heather: a great story. the teacher said they were the pretty boys. they were pretty. they're big too. here is another heart are warming story for you. a young girl learning the real meaning of christmas by giving some sick children holiday cheer. our fox fill at kdbr has the story. >> reporter: the like a lot of 6-year-old as girls she loves american girls dolls. even knows them by name. >> smalley. from the dvd's i have at home. >> reporter: a year ago she wanted just one and saved $100 she needed to buy one of the her dad, ross, asked her to give that doll away. >> we had a conversation with her taking that money and buying an american girl doll and donating it to children's hospital. if she did that i told her i would match it. >> reporter: it turned into a family project and website soliciting donations. >> we wound up donating 42

dolls. >> reporter: this year purchased earlier this week filling back of two. suvs. 50 dolls donated to patients at children's hospital on christmas morning. handed over in a shy, wordless exchange between two kids that speaking volumes about the holiday spirit. >> i think it is a matter of doing the right thing. i'm glad she is sort of learning that charitable giving and that there is enough in our own lives that we have enough to give away. >> reporter: a father teaching his daughter the value of giving. >> to make sick girls at children's hospital happy. >> reporter: a 6-year-old learning that act is a richer gift than even the most sought-after doll. >> very good project. very proud of her. >> reporter: anonymous donor gave $5,000 through her website. if you like to get involved we have a link to her page on our. kdbr.com