jon: here's the good news, it's almost friday. [laughter] jenna: is that the good news? jon: that is the good news. jenna: and you're only 15 steps away from the vending ma dean. thanks for joining us, everybody. jon: "america live" starts right now. megyn: fox news alert from capitol hill where we are hearing from the leaders of a half dozen different faith communities right now, all of whom are worried that the obama administration, say they, is trampling on religious freedoms. welcome to "america live", everyone, i'm megyn kelly. despite administration aattempts to, quote, lower the voice, we today saw witness after witness sounding off on how new health care rules they believe trespass on their faith. >> we view it, first of all, and primarily at the level of principle. it is a question of government reaching in to the internal governance of religious bodies and making a requirement

contrary to church teaching. >> religious people determine what violates their consciouses, not the federal government. please, get the federal government, mr. chairman, out of our consciouses. >> what they cannot do -- and that's why we're here today -- is to achieve this end by trampling on the religious freedoms and the liberty of conscious of americans, and they can't do that because that would be a violation of the constitution. >> the policy is an unconscionable intrusion by the state into the consciouses of american citizens. and contrary to portrayals in some of the popular media, this is not just a catholic issue. >> this is, clearly, an issue of religious liberty, and it's one that i couldn't have imagined coming. and i think, um, to see it as anything else is to completely miss the real importance of this issue. megyn: the controversy now a

major campaign issue too. chris stirewalt is our fox news digital politics editor and host of "power play" on foxnews.com. chris, the white house believed that they had put an end to this matter last friday when the president came out with his, quote, accommodation, one we have since learned he did not consult with the bishops about prior to coming out and announcing it would be the compromise position. i think they thought this would end the matter, it doesn't appear to have done that. >> well, the biggest thing that the white house and democra want to do here is change the discussion away from what you heard those gentlemen talking about in today's hearing and on to the question of the use of birth control or whether women l should have access to contraception as part of their insurance programs. what republicans and conservative and conservatives in and a lot of religious leaders want to talk about is it doesn't matter whether you think women should or shouldn't have access to contraception, it matters that you shouldn't be

able to force a change in the policy of these religious bodies, and that's where republicans want to keep the discussion. the administration is trying very hard and with the accommodation you describe today move the discussion away from a first amendment issue and on to the question of contraception narrowly. megyn: they didn't want to be having this consideration, and the din -- conversation, and the din on this issue got so loud, the president was forced to come out and speak to it friday and change the policy as he did. now that that hasn't put an end to it, you know, you've got these hearings on capitol hill, and you've got a lot of catholic and other religious leaders who are still saying you didn't get it done, mr. president, we could have told you it wasn't going to get it done, are we at a stalemate now, or does this continue to be an issue going into election '12? >> well, something that democrats hoped they'd be talking about going into election '12 was to say to suburban female, moderate voters, hey, look, we're the party that wants to get you free contraception as part of your

insurance coverage, we're the party that wants to do that which they thought would be a selling point. unfortunately, they kicked over this or net's nest -- hornet's nest. mainstream property stabilities, a rabbi. you saw people from across the religious spectrum coming forward and talking about this because what republicans are trying to point out and keep 3u9ing on the president -- putting on the president is this is not about birth control, this is about religious liberty, and even people who have a policy different that the catholic church still disagree with the program. megyn: as a historical matter, chris, at this point how hard would it be for the president to change his position again? because he was under a lot of pressure from the left. sally kohn was on the broadcast prior to last friday saying we want to see him stand up. we're sick of him compromising. they see him as a weakling. so he has to work against that narrative, in addition to trying to win over catholics who are an important voting bloc. how hard would it be for him to

take another compromise position from the one he's already taken? >> very hard, and that's why in general administrations try to keep the president out of these kinds of discussions because they're usually losers no matter what. you may please one group, but you upset a different group, and if president had to capitulate instead of doing a technical change to try to quiet down religious groups, if he had to actually change the policy now, it would be seen as a total climb down, and it would certainly inflame the left. megyn: it's so interesting to watch, and there's a lot of, you know, feeling out there on the gop side, rick santorum, a catholic and somebody who's been vocal on this may be benefiting from this debate in the news. chris, thank you, sir. >> yes, ma'am. megyn: next hour we have two of critical players on both sides of this debate. we will be joined live by the chairwoman of the democratic national committee, debbie wasserman-schultz, and catholic league president bill donahue. do you want to see this 1234 i do.

do you want to see this? i do. from the campaign trail today, new poll numbers showing rick santorum with a slight edge in mitt romney's home state of michigan. romney was born in michigan, his father served as the state's governor, and his wife's from michigan as well. but the latest from the detroit news div poll, wdiv poll shows rick santorum leading the pack. he's got 34%, mitt romney in second place with roughly 30%. the gap is within that poll's margin of error. it finds more than 12% say they are undecided. and with less than two weeks to go before michigan's big primary -- happens on tuesday, february 28th -- mitt romney will be getting plenty of air time. his campaign launching a tv ad campaign program there costing more than $1 million, but the pro-romney super pac restore our future says it is spending $6 million on ads there.

that ought to tell you something about how important they view michigan along with arizona and several super tuesday states. the red, white and blue fund has plans to buy tv ads in michigan as well but has not yet purchased air time. that is an important state to watch in this election contest for who should be the gop nominee, folks. well, the housing crisis showing no sign of going away with word foreclosures are on the rise once again. listen to these numbers. nearly 211,000 households received a foreclosure filing in january. that's about one in every 624 households in america. wow. that's up 3% from december. but when you look at the forecast for the year ahead, the news gets worse. so if economy has turned the corner, if we have, you know, righted the ship which is what the president said, why is housing still such a mess, and what can be done about it? our panel of economic experts has been considering this, they weigh in live later right here.

new developments on your internet privacy. advocacy groups concerned about new efforts by the fbi to monitor social networks. the feds want to gather realtime data about potential security threats, tracking bud words and -- buzz words and patterns to watch certain groups and people. catherine herridge has more live in washington. >> reporter: the fbi quietly released these documents seeking new ideas to find ways to integrate this information with other data. this practice is called data mining. the fbi says the program, if it comes to fruition, should have the ability, quote, to rapidly assemble critical, open-source information and intelligence to quickly then identify and geolocate breaking events, incidents and emerging threats. a former adviser on homeland security under the bush administration said social network tracking is the way of the future, but there are clear drawbacks. >> we've got to figure what is the right balance between privacy and security.

and i'm not sure w as a country have really addressed that question. when you're dealing with known foreign terrorist organizations and known jihadi sympathizers and known terrorists, to me, that's a cut and dry kind of case. >> reporter: under the proposed program, open source data -- information in the public domain -- can be gathered from facebook, twitter, myspace or the blogs. if suspicious information was picked up on, let's say, a blog, that information could be cross-referenced with other databases to help identify an individual or group, and that information could be passed on to security cameras in your neighborhood according to the aclu. >> even where you're talking about published information, you know, information people intentionally put out there on the internet, we still have a right not to have that monitored by the government. the government doesn't have any interest in tracking somebody's twitter account if they're not doing something wrong or

suspected or doing something wrong. >> the fbi told us in a statement this is really about research at this stage adding if there is an app, it will not focus on specific persons or protected groups, but you can see the clear divisions in this debate already, megyn. megyn: chief intelligence correspondent catherine herridge, thank you. >> reporter: you're welcome. megyn: well, the tension between israel and iran is so thick you could cut it with a knife, and u.s. officials are worried this could quickly spiral out of control. up next, general jack keane on what iran could actually do if israel attacks. and you go organic thinking it's healthier, but now an alarming new study of what's really in your groceries and in your child's baby food. and fox news' own bill o'reilly setting off a major debate with his remarks about whitney houston's death. are his comments on point? our panel weighs in. >> whitney houston killed herself. do we all understand that? you don't use hard drugs for

decades -- >> right. >> -- decades, you don't spend $900 million on them -- 100 million on them not wanting to kill yourself. so why aren't we telling the truth to young people in network when i grow up,

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megyn: one of america's top intelligence chiefs testifying today that iran is unlikely to provoke or initiate an international conflict. but speaking to the senate armed services committee, lieutenant general ronald burgess says iran will not hesitate to respond to an attack. >> iran remains committed to threatening u.s. interests in the region through its support to terrorist and militant group including in iraq and afghanistan while it remains committed to strengthening its naval, nuclear and missile capabilities. iran can close the straits of

hormuz at least temporarily and may launch missiles against united states forces and our allies in the region if it is attacked. megyn: launch missiles against the united states targets in the region. jack keane is a retired four-star general, a former vice chief of staff of the army and a fox news military analyst. general, welcome back to the program. >> good to be back, megyn. megyn: so there you have it. you've been saying this now for some time, that if conflict breaks out between israel and iran, it will very much involve the united states whether we want it to or not and that iran is likely to retaliate not just by striking israel and its targets, but by striking american targets. and now we hear it from an intelligence chief. what specifically do you think that they have the will to do when it comes to american targets? >> well, a tough decision for them. i think at a minimum they would use terrorism activities against u.s. targets in the region.

if they directly attack the targets using their missiles and rockets which they could do from their mainland to the embassy in baghdad or the consulate or to our military bases, that's an act of war for sure. there'd be no doubt about it. and that would certainly involve a retaliation by the united states. the iranians' concern about the united states is we're the only power that can change out their regime. so in my judgment they're going to be very careful about any escalation that would bring in united states military forces because it threatens their very existence. megyn: give the viewers a flavor for who's really running that country and what their main concerns really are. >> make no mistake about it, the country is run by the supreme leader, khomeini. and he gives direct and specific military action orders to sole manny who's the head of the quds force for about 15 years

stretching autoway back -- all the way back to the somewhat successful campaign he organized in lebanon in 2006 against the israelis. so that's the direct link, and that's -- and the quds force is a combination of intelligence, spies and special operations forces. megyn: and these guys don't want to be forced out of power among other reasons because they're billionaires, and they've got a lot of dough, and they want to keep their dough, and they don't want us messing with their system. >> oh, make no mistake about it, they took the shah's foreign assets that are overseas and instantly it made them multibillion 245eur theirs. -- billionaires. that's one of the things we should be doing is seizing those assets. we should be after them. megyn: all right. so we know what motivates them, and yet i don't know, i mean, you tell me because the more i listen to dan gellerman and dora gold who was a former ambassador, the more it sounds to me like israel really is getting ready to do something, that they're going to do some sort of preemptive strike against iran, and whether away

join or help or don't as you point out and as this intel chief points out, we're in it. we're in it to some extent. so what should we do in that circumstance? >> well, what the israelis want us to do is really get tough with these guys in terms of crippling economic sanctions. that's why you hear them posturing and leveraging us to do that. they still believe there's some time to get the iranians to voluntarily stop the program. but we'd have to get a lot tougher than what we are, crush the central bank, seize all their foreign assets, no trade, no oil business with them, stop the refining operations that the international community is supporting and also conduct covert operations with the mossad against nuclear capabilities and other targets. that's really a tough program that they want us to get involved in. and if iranians don't stop the program, then they will have to attack, and make no mistake,

they will attack. megyn: aren't they going to say, isn't iran going to say what it's said all along as it gets closer to the point where it realizes israel's serious about doing this, and they've done it before, so there's a history, there's a precedent for israel taking out nuclear facilities, aren't they going to say something to appease the international community like, sure, come on in, inspect this plant, okay, we won't do this -- you know, they always seem to give a little bit, and that seems to quiet could be the international -- down the international community. will it appease israel or get the others to say you better not do anything to iran? >> well, i think people are telling the israelis that already, to include the united states. and you're absolutely right, that is one of their tactics. they give a little bit, take a step back so they can eventually move two steps forward. that is the pattern. but the israelis will not buy it. the israelis are very concerned that the iranians now have all the materials necessary to put this system together, it's just a matter of putting it together. so we're getting dangerously

close to that time frame. so that's why the posturing is going on o, to get us to try to take tougher economic sanctions and covert ops. megyn: uh-huh. i mean, you just wish it seemed more hopeful than it does can. general, thank you so much for your expertise. see you soon, sir. >> take care, megyn. megyn: new questions today about a report suggesting some of the president's big donors have collected about $4 billion in taxpayer-funded investments. we'll show you who's getting the big checks and why. and new developments on the powell family murders as a couple of police officers are today being considered as heros for what they did after the crime was committed. and a high school student now getting national attention after quitting the choir rather than sing what he called an islamic song of worship. >> in the bible that you don't worship any other god. [laughter] i think there would be a lot of outrage if we made a muslim choir say jesus christ is the

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♪ >> is that a great new pepsi can or what? [laughter] megyn: remember that ad? that pepsi commercial very popular at the height of supermodel cindy craw todd's career. now her 10-year-old daughter is following in her footsteps, and that has mom reconsidering things. check out this new ad featuring crawford's daughter modeling versace's new children's clothing line. cindy crawford now putting her daughter's career on hold despite her recent success saying she is too young to

pursue a career and needs to wait until she's at least 17. how'd she get in the ad in the first place? a shocking new study is out finding dangerous levels of arsenic in some organic baby formulas and other popular foods. and a lot of it. the culprit is apparently something called brown rice syrup according to the study, one of the most popular sweeteners in organic foods and other foods, so what does this mean? dr. richard furshing, you tell me, organic rice sugar, do we have to worry if we don't eat organic? >> no. we need to worry about brown rice sugar -- megyn: it's in organic and nonorganic. >> correct. what they did is they studied, dartmouth researchers looked into what was actually in these what are called organic products to see if there were any specific toxins, and what they

found were high levels of arsenic. arsenic is a toxin, we know it's a poison, and the fda regulates it in drinking water. but in foods where they found in this particular case 4-6 times the levels, it's not regulated. megyn: what kind of foods are we talking about? >> well, in this case it's brown rice, and what happens is on the outer layer of brown rice -- that's the bran part -- that's where the arsenic concentrates. so what happens is a lot of people go out, they want to get organic to do, they want the healthiest things for their babies, and this is in a lot of formulas which is, of course, a concern for mothers, and they want to get the best thing for them and what concentrates in that outer layer and, unfortunately, in the actual, the rice sugar, that rice syrup is arsenic. megyn: what, what infant formulas is this in? is this just like your standard over the counter enfamil, or do you have to get some fancy organic -- >> yeah, generally it's going to be the more fancier products

because it's definitely more expensive to get this particular product, and the problem is that when mothers go in there looking for something healthy, they're looking for something natural, and they end up getting something that might be actually causing a problem. megyn: is this dangerous? would you now looking at a product if it said it had this product in it, this, you know, brown rice syrup, would you eat that product? >> i think until we get more clarification, i think particularly mothers need to be very careful about it. you know, we have to think of what we feed news kids, and most of these products say they were powdered rice products, what they found was, you know, children concentrate toxins at a much greater rate than adults because of their size, and also we have to be concerned because arsenic is linked with problems. now, not just for the child, but women who are bearing children need to think about this as well because it concentrates in the bloodstream, goes to the child. one of the bits of good news, though, for breast-feeding is that if you consume rice, solids

or in this case the rice syrup, it does not -- the arsenic doesn't seem to concentrate in breast milk. another reason for moms to think about breast-feeding. megyn: does this effect regular old brown rice at the table? should we be going for white rice rather than brown right? >> what's interesting is the rice products we get in the united states, the brown rice products actually contain slightly more arsenic than brown rice products that are produced in india, for instance, or in asia. so to answer your question, i think rice in itself is safe. i think what we need to do is really up our standards with very, very early -- we're very, very early in this process, and i think it's very important or for people to understand particularly with organic products, don't throw out the baby with the bath water. there are reasons we use organic products, we want to eliminate pesticides and hormones, and that's the bottom line. megyn: but beware this particular ingredient. >> absolutely. moms should be very careful.

megyn: doctor, thank you. a pleasure seeing you. that was scary. coming up, the obama administration is using billions of taxpayer jobs funding green energy companies. now we are learning that some of those companies have direct ties to the white house. new questions over whether the president's donors are influencing these big money decisions, in many cases those decisions have been losing ones as well. plus, the defense in the murder trial of a former university of virginia lacrosse player accused of killing his ex-girlfriend opening the case with a bombshell. a shocking new theory on how yeardly love really died. and are america's kids getting the right message from the whitney houston, from her death and the coverage of it? we will pick up the debate that bill o'reilly started with this: >> whitney houston killed herself. do we all understand that? you don't use hard drugs for decades grsh right.

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megyn: well, new controversy over a former mexican government official wanted for embezzling millions of dollars arrested in texas this month, then promptly ordered to be released by the state department. lawmakers were outraged, and the state department rescinded the order, but the suspect was already gone. unemployment falling to the

lowest levels in nearly four years last week. the labor department saying weekly applications for jobless benefits dropped by 13,000. and general motors reporting its largest profit ever, the 103-year-old company made $7.6 billion last year, up 62% from 2010 and the height of the detroit collapse. well, there are new questions today about a washington post report suggesting some of the president's big donors have collected about $4 billion in taxpayer-funded investments from the energy department. the republican national committee quick to jump on the news producing this ad showing or purporting to who got what. and raising the question, are the president's donors influencing big money decisions at the energy department? leslie marshall is a syndicated radio talk show host, and lars larson is a syndicated radio

host. okay, panel, thank you both so much for being here. the post has a comprehensive piece talking about how, for example, the department provided $2.4 billion in public funding to clean energy companies that were, at which this guy, sanjay, used to work. now, why do we care that he used to work at companies that got $2.4 billion in taxpayer monies? because that guy was tapped by the energy department to be their consultant on green energy investment so, you know, what did sanjay apparently say? it look like he said, hey, consider my former company, they'd be a great investment, and now the post is raising questions about the propriety of that, lars. should it be? >> hey, they should be, absolutely. the whole thing sounds like dirty dealing at the white house to get the clean energy that's turning out not to be all that clean. bad investments like solyndra that go bankrupt and take down a half a billion dollars of the

taxpayer money. this sounds like the obama administration, the one that came into office saying we're going to show you everything, we're going to be transparent, and what really kills me is the deafening silence from folks like leslie marshall. remember the whole crowd that was complaining about dick cheney and halliburton and all the supposed ties between the white house and energy? now all of a sudden we've got a white house that's actually peddling energy to their political friends, and there's a deafening silence from all those critics on the left. megyn: the post finds, leslie, that $3.9 billion of federal grants and financing flowed to 21 companies backed by firms with connections to at least five obama administration staffers and advisers. almost $4 billion in federal grants to 21 companies that have firms, have connections to the obama administration. unusual? >> actually, no. because, lars, hello, lars. i'm speaking, so it's not deafening silence. in 2001 you and your buddies were very silent when former

president bush and dick cheney were meeting with the american petroleum organization, etc. , and you know what? you keep mentioning solyndra when you're talking about approximately 40 companies that is the federal government invested in for green and clean energy as the president promised in campaigning that he was going to do and lay the foundation for one out of all those investments went belly up. do you know what i think this is, lars? this is the six degrees of separation of kevin bacon because i ask you, lars, how many clean and green energy start-ups do give money to republicans? quite frankly, any of these companies probably donates to the democrats, and last time i checked president barack obama's the only democrat running this year. megyn: well, that is the question. if you're barack obama and you want to find people to advise the white house in which companies to invest in on the energy sector, you've got to get somebody that knows what their talking about. >> with of course not. and, in fact, leslie's objection to dick cheney meeting with energy companies to draft an energy policy is one thing, but

remember, they were drafting an energy policy, not writing billions of dollars worth of checks. in this case we've got a direct connection, a white house that raises money, then hands money to some of the people who raise money for the president's campaign and solyndra's a great example of that. by the way, leslie, there's a huge list of companies that have gone belly up after they got federal money. the president shouldn't -- >> yes. mail that to me, lars. megyn: here's the question. it gets convoluted, it's kind of hard to follow, but essentially, what the post is reporting that, for example, this guy sanjay, he's a venture capitalist. he was a barack obama fundraiser back this 2008, so he raises a bunch of money for barack obama to get into the office, into the white house. he gets into the white house. then sanjay says, okay, i was with this venture capital firm, i'll leave the firm, and i will come consult with you, president obama, and your energy department. and the energy department promptly turns around and gives his former firm $2.4 billion in

public money. and so it leaves the american people asking themselves, this kind of stinks. it sounds like a payoff, leslie. [laughter] >> you know what, megyn? i don't disagree that it doesn't sound good. but also let's look at specifics. the companies where the money were given are hertous in what they do. quite frankly, if you are in that industry and you have a candidate that says they're going to back what you're doing, you're going to back that candidate. you're certainly going to back that candidate for re-election once he is president. that's the bottom line. the goal here is the same. there are only so many companies doing this, and these are the companies that are doing it and doing it best. >> except there's a problem with your fine line -- >> not solyndra, lars, but these are companies that are creating jobs, these are companies -- tesla just opened a plant this year in fremont, lars, how many people are going to gain employment as a result of this? megyn: quickly, lars. >> megyn? let me point out to leslie. i know the tesla case well. they were doing well, then they

got the federal money, a guarantee of $500 million. they canceled the second project and they promised a certain level of delivery to get that money. they didn't deliver. and they've already told the government that the second line of cars they were going to do -- another federally-subsidized line which is a bad idea to begin with -- that they aren't going to be able to do the second line, but they'd like to still get the 500 million even though they didn't do what they promised to do, leslie. megyn: staffers and advisers who have ties to these venture capital firms did not make the funding decisions, but there are still, obviously, questions being raised. panel, thank you both so much. >> and do you believe that, megyn? megyn: i'll let the viewers decide. thanks, lars and leslie. in the last week, we have seen a lot of tributes to whitney houston, but not a lot of warnings about drug addiction. a fierce debate next on whether that's right and why that matters. plus, what two police officers just did as a tribute to the boys that josh powell

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megyn: a very strong message about whitney houston's death. >> whitney houston killed herself. to we all understand that? -- do we all understand that? you don't use hard drugs for decades -- >> right. >> -- decades, you don't spend $100 million on them not wanting to kill yourself. so why aren't we telling the truth to young people in america? is there one public service announcement by any movie star, by any singer that says to children don't use drugs? >> but she was -- >> wait. is there one? i want to see one. there isn't any. here's what we see: snoop dogg, willie nelson, all of these creeps, and i mean, they are

creeps, all right? celebrated. and it's wink-wink, oh, let's party, let's get high. there's nobody in the media saying, you know what? this could lead to death, and if it doesn't lead to death, 75% of all child abuse and neglect is done by substance abusers. let's tell the truth. and not only that, when you buy this garbage, who are you helping? the mexican cartels who have killed 40,000 human beings. every time you buy a marijuana cigarette, it goes to them! megyn: joining me now, sandy rios, the president of the culture campaign, dr. jeffrey guarder, and jehmu greene who formerly headed up mtv's rock the vote and met whitney houston a few times. thank you all so much. sandy, does he make a valid point that the stigma attached to drugs is somehow seem to be

waning? >> yes. i love bill's passion on this. i find myself asking why don't more people feel the same passion? we are destroying a generation of kids because of our passiveness on this, and we have adults who are themselves indulging in marijuana, so they're soft on the issue. and kids are dying and so are adults. so the only thing that i would probably have a slight variation, whitney -- if it turns out it's drugs and alcohol -- she is responsible. she is. she has abused her life, her beauty, her great talent. she did it willfully, and be that's the cause of her death, then she is responsible. i don't think we can say that she intentionally killed he's -- megyn: well, we tonight know. doctor, he's getting some pushback on the suggestion that, you know, somebody who doesn't want to kill themselves, somebody wouldn't use drugs for decades who didn't want to kill themselves. it is an addiction, and there are a lot of drug addicts who don't want to die, but they cannot find the power to overcome that disease. >> well, that's absolutely true.

addiction is a disease, so we need to remember that. i find it interesting, and i like bill, i consider him an associate that he would call some of these celebrities garbage. and i think when you make statements like that, people with -- can generalize that. she was a woman who had an addiction can. i don't know whether she was suicidal. however, perhaps she did kill herself, and we think it was not intentional. we may be getting soft on drugs, but i think we these to put the lesson out there that if you use drugs, that you can kill yourself and, therefore, you should get treatment and should not be enabled by those people around you. megyn: jeff knew, i think he was trying to get at the point that we're so quick for better or worse to support people who suffer from addiction that maybe we have gotten too far away from, i don't know, shame, a public shame on people who use drugs because they're illegal and they're so bad for you and can be deadly? >> well, i can definitely agree

with that sentiments. i don't agree with mr. o'reilly's opinion that she intentionally killed herself. absolutely, addiction is a disease just like heart disease, just like asthma, just like any other chronic disease. you don't look at someone who has diabetes and, you know, has too much sugar and says they're ying to kill themselves. but it's right. you can turn on the television, megyn, and all you have to do is wait for five minutes for a pharmaceutical commercial that says are you feeling down? there's a pill for that. do you need to feel up? there's a pill for that. and that has absolutely contributed to the issues we have with addiction in this country. megyn: that's an interesting point. you raised an interesting point because he seemed to be speaking to illegal drugs, you know, talking about the mexican drug dealers. but if whitney houston who, you know, died of drugs at the end, it appears it was prescription drugs, and are we giving too much of a path on that, sandy? that's sort of the housewife drug of choice. >> oh, i think that we are,

absolutely. we look at the death of michael jackson and what happened there, i don't think there's even an argument there. but i would say in whitney's case to be more personal, you know, there's more to life than just -- she had the most talent. i used to be a professional singer, megyn. she was one of my idols. there was never anyone who had a voice more beautiful in my lifetime than whitney. and she had beauty. i was just blown away. i'd never seen anything like that. but there is more to life than what we are naturally born with, and i saw whitney in concert years ago, and i have to say she was as though she was bored when she was young with the lift gift that she had. i don't think that whitney had the character that matched her beauty and gift -- >> but, megyn, if i could -- megyn: go ahead. >> success that can make up, they can work out, but it's the heart, it's the soul, it's the -- megyn: the character and the nurturing. quickly, one minute left. i want to get back -- >> i just want to make sure that we don't lose the fact that her

soul and her heart also are bigger than her drug addiction, and to not just demonize her for that. to look at her humanitarian work, to look at the work that she did for children and people with cancer and aids and fighting against apartheid in africa. we can't forget that. >> this is the sad thing. now this is going to be a big part of her legacy. >> well, and here's the thing, megyn, that people are not talking about. whitney houston is, was an incredible person, but she was a woman who had very deep issues. we know that from a very young age. she had performance anxiety, generalized anxiety. that may have opened the door to prescription drugs from psychiatrists or physicians, and what we need to understand is when you have these deep, deep issues of anxiety and depression, you self-medicate, and that's why it's incumbent upon the physicians and the psychologists to give comprehensive treatment and not just prescribing, prescribing, prescribing to kill the symptoms and not look at what the causes are. megyn: we see it a lot with famous people who sometimes they're trying to fill a void by

becoming famous in the first place and then perhaps when they find that doesn't work, through drugs and alcohol. anyway, we wish all those out there who are suffering with that addiction the best. thank you, panel, very much. >> thank you. >> thank you, megyn. megyn: well, a student gaining national attention rather than singing what he calls an islamir song of worship next. he's clearly enjoying one of the planet's most amazing superfruits. hey, keep it down mate, you'll wake the kids. plum amazins. new, from sunsweet.

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megyn: well, a high school student is now getting national attention after quitting the choir rather than singing what he called an islamic song of worship. james harper refused to sing a song that included lyrics like "there is to other truth except allah." trace gallagher has the details on this one. trace? >> reporter: the song, megyn, was written by a well known muslim performer, he wrote it for a movie, and if you translate it, you mentioned part of the lyrics, but it goes on to

say, quote: there is no other truth except allah, allah is the only eternal and immortal. the student, a senior, james harper, who's a christian says the song makes him very uncomfortable. listen. >> in the bible that you don't worship any other god, and this is worshiping another god and even another prophet. i don't want to seem like a racist or bigot, i'm just rather uncomfortable, any religion, singing to any other god makes me uncomfortable. that's not just exclusive to the muslims. >> reporter: so harper asked his instructor to pull the song, and she refused, so he quit the choir. the school district is backing the teacher pointing that there's no school credit, and any student who feels uncomfortable with opt out of singing the song. listen. >> choral music is devoted to religious themes, it does not discriminate against any one religion. naturally, school choirs are going to be engaged in singing

religious types of songs. >> reporter: and the performance also includes an irish folk song as well as a christian song called "a prayer for the children." we also checked, and the courts have sided with schools about religious songs in choir allowing them as long as they are for educational purposes, but james harper wonders what would happen if tables were turned. listen. >> i think there would be a lot of outrage if we made a muslim choir say jesus christ is the only true god. >> reporter: bottom line in this story is the show, megyn, will go on, but it will go on without james harper. megyn: why'd he have to quit? why couldn't he have just not song that one song? >> reporter: that's what the school said. he said, no, he wanted out if they decided to keep the song in the program. they kept it in, he pulled out. megyn: taking your thoughts on it, folks on twitter at megyn kelly. well, the united states considering an unprecedented move to shut down iran's

economy, but new concerns today we could all take a big financial hit as a result. up next, is it worth it? next hour we have two of the critical players on both sides of the debate. and there's a new twist in the fierce debate over health care and religious freedom. we'll be joined live by debbie wasserman-schultz and catholic league president bill donahue. people with a machine.

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mig fox news alert, fresh concerns that financial superbenefit that could take out iran's oil sales could force us to pay too high a price here at home. brand new hour of "america live", welcome everybody, i'm megyn kelly. right now iran has two things that are rattling global markets: it's oil and nuclear enrichment program. it is using both to provoke the world. now the united states is weighing a risky but unprecedented move to reign in iran, to shut it out of the international oil payment system that keeps billions of dollars flowing into that country. now, that would be crippling

for iran's regime, but potentially a blow back in our faces with a big spike in gas and heating oil prices here. matt mccall is president of penn financial group. matt, what's happening is the united states for ways to up the ante, we're worried israel is going to do as it says and bomb iran in the next few months. we don't want it to happen so we're trying to ramp up the sanctions, ramp up the economic pain and by doing that we basically shut down the system by which this receives payments for oil. if we do that it will have direct consequences on americans here at home. how? >> well, what's going to happen, if that actually goes through and i hope it does not, to put that out there, hope this is not the way the u.s. goes about it, but if they do, suddenly iran is reeling, and they're going to shut down the strait of hur muz -- hormuz to shut down the oil coming out of that region. when that happens we see oil spike from the $100 a barrel to probably 150. we already have gasoline at 3.50 per gallon, the

earliest we've ever seen that, this year, and we're on pace for probably $4 heading into early spring. if this happens, megyn, we suddenly see it spike up to ad, 5.50 per gallon. as a consumer, that is tetering on that tight rope already, they fall off that tight rope and now the economy falls apart, unemployment goes through the roof and we have a move by the u.s., even though they're trying to help us about actually hurt you and i, the consumer, more than anybody out there. >> mig you're talking 5.50 for a gallon of gas if this happens. >> absolutely. this is a major disruption, the strait of hormuz, maybe it doesn't slow that much oil coming of there but what it does will send speculators shooting the price of oil up and with gasoline at 3.50 this early in the year, another $2 could be tacked on overnight it would have repercussions, and there are so many

industries that use oil and pet petroleum products to make rubber and everything else, then that cost gets passed on as well, so not only are we spending more at the pump but every good and service we're trying to get, again, on an economy that is growing 1 percent, 2 percent, we go deep that recession. megyn: it's a chain reaction where we're trying to up the ante to iran by cutting off its access to its key oil proceeds, the retaliation would be potentially to shut down the strait of hormuz and that leads to this downward spiral in the situation and upward spiral in the gas prices is what you're saying. >> exactly, yes. it starts with one little move by the u.s., doing the right thing, trying to shut down iran. megyn: but it would be unprecedented if we did it. we're just kicking it around with our european allies. >> but what happens, if we don't do something like this, suddenly iran gets a nuke and it could be ten times worse than the situation i laid out. megyn: or what they believe will happen is we don't do

something and israel bombs iran and we had general jaquin saying if iran is in that, we're in. we're not doing the bombing but we'll be targeted here at home, at seas, and a military conflict with iran and economic conflict that would send the rice of -- price of oil and gasoline shooting through the roof. >> if the second scenario takes place, it sends oil to 150 as well, gas jumping to 5.5 as i laid out in the first scenario. either way this does not look like it ends well unless iran says i'm done, we're going shut down the nukes and we know darn well that's not going to happen, so america must be prepared for higher prices at the pump and higher prices for goods going forward for the next 6-12 months. megyn: wow, that is a scary thought, either way. matt mccall, thank you. we're going to take a closer look at iran's oil production and its influence, iran exports 2.2 million barrels of oil a

day, 3 percent of world supplies. japan and south korea, two of america's biggest allies each import about 10 percent of their oil from iran. iran's net revenue from oil exports tops $73 billion. that's a lot. in 2010. the money from those exports accounts for half of the iranian government's total revenues. so you can see why preventing iran from getting paid for its oil exports would have such a devastating financial impact and what did the general tell us at 1:15 today, he said it's the billionaires who control that country are worried about their dough. if you hit him in the pocket boorks that's when they get really upset. we're trying to do that to prevent essentially a military conflict unfolding between israel and iran. fewer and fewer options seem to be available right now, folks. fox news alert on new violence out of syria today. now, this situation has gone from bad to worse, where the uprising against president

bashar assad started one # months ago. since that time, over 5400 people have lost their lives in these prodemocracy protests. syrian activists are reporting raids, arrests and random shootings by government forces. we heard last week about babies in incubators in hospitals dying where they had been bombed. today, a referendum on a new constitution that would create a multi-party system and just ahead of a sunday general assembly vote today on a resolution condemning the violence, calling for regime change there. another fox news alert. we are awaiting the sentencing of the terrorist known to many as the underwear bomber. four-months this happens after umar farouk abdulmutallab pleaded guilty to charges relating to the botched bombing of an american airliner on christmas day 2009. the feds say he was on a

suicide mission for al-qaeda when he boarded detroit-bound flight with explosives hidden inside of his underwear, his bomb malfunctioned, had it worked it could have killed everyone on that plane. mike tobin live in detroit with an update. mike. >> reporter: megyn, the hearing is underway now. they have begun with a motion, abdulmutallab arrived at the courthouse a few hours ago. he's in the courtroom wearing a white skull cap and loose fitting white clothing and as soon as the motions are done the court will hear from some of the people on board that plane. one of the women who will address the court today told us today she intends to hand abdulmutallab a set of muslim prayer beads so he can pray to ala and ask for forgiveness. i want forgiveness not for me. i already forgive him. being a mother, i have already forgiven him. >> reporter: abdulmutallab 's court-appointed legal riser

is in the difficult position of trying to argue for leniency and one of the points he's going to argue is incompetent. we all know that abdulmutallab meant to kill everyone on board that flight on christmas day 2009 but couldn't full off and the only person injured, the court appointed adviser is going to say the only person injured was the defendant and try to get leniency. a short time ago the judge refused to set aside the mandatory life sentence. as we're looking at the case, anything short of life without parole seems unlikely. megyn: mike, thank you. analysts are worried about a big increase in foreclosures with dire predictions for what's in store. why is the white house we've turned a corner in the housing industry? our panel will weigh in. new developments on the powell family murders. what two police officers did today that have them being considered as heros. we'll tell you what's happening. and the white house accused of violating a basic

tenant of our constitution with new health care rules. it's under debate now on capitol hill. coming up, two of the critical players on both sides of the contraception debate. we'll talk about the, quote, accommodation offered by the white house last friday. dnc chair desi wasserman schultz and catholic league president bill donahue. >> hundreds of thousands of us would be much -- would be very willing to spend nights in jail for the sake of preservation of religious liberty. not just our coffers that are at risk, it's our very freedom. as you can see, i'm in a tricky situation here.

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religious people determine what violates their consciences, not the federal government. please get the federal government, mr. chairman, out of our consequences. >> what they cannot do and that's why we're here today is to achieve this end by trampling on religious freedom freedom of americans and they cannot do that because that would be a violation of the constitution. >> the policy is an unconnable intrusion into the state of the conscience of american citizens and contrary to portrayals in some of the popular media, this is not just a catholic issue. >> this is clearly an issue of religious liberty, and it's one that i wouldn't have -- couldn't have imagined coming, and i think to see it as anything else is to completely miss the real importance of this issue. megyn: well, those voices belong to the more than half dozen leaders of different faith communities testifying

on capitol hill today over concerns over what they view as the obama administration trampling on religious freedoms. we have both sides of this debate right now, starting with debbie wasserman shut, democratic national committee chairwoman and my guest now. thank you for being here. >> sure. megyn: i'm going to start with you, and start with bill and get you to see your side and try to get him to see your side so we can try to move it forward. i know how you view it in general, but can you speak to that concern, that we just heard those faith leaders talking about, that they say it is an issue of religious liberty, they feel like even if you support birth control, you can't force this kind of thing down the throats of religious leaders who don't believe in contraception. >> right, and that's exactly why president obama on friday of last week made sure that he adapted the policy to ensure a balance between religious liberty and making sure that women don't have to choose between

holding their job and being able to plan their family, and so the accommodation that was made, while still preserving that contraception will be available without a copay, and without a deductible, is to make sure that a religious employer, like a catholic hospital or another religious organization, that they would not have to provide or pay for that contraception, but that the insurance company that insures their employees would have to make that available. mig let me jump in because i know what bill is going to say when he comes up. he's going to say but many institutions are self-insured so that doesn't solve it, because the archdiocese of washington, they pointed to, is self-insured, it has schools and hospitals in it and they're still going to have to pay for the birth control. >> i would say to bill that's why the president ensured there was a transition period so we could work out those kinds of details and be sure we can balance the liberty and freedom and concerns that were expressed and the

absolute imperative that we need to make sure that women in this country have the ability to plan their families and that contraception is affordable. contraception, megyn, i'm sure you've experienced this, is about $700 a year. that's real money. and to say to hundreds of thousands of women who work for religious organizations no, because of your employer's objections, whether or not you choose to use contraception, you aren't going to be able to get the same access that other employers and employees can get access to. that's not right. so we need to strike a careful balance. >> megyn: but to those who say the choice -- i'm a catholic woman so i can speak to this, i think -- for those that want to work at a catholic hospital or institution, many people have said well, then that's the woman paying the choice there, she doesn't have to work at a catholic hospital, it's foreseeable that the catholic hospital is going to say hey kelly, we're not

going to pay for your birth control, or the insurance company that we -- you know what i'm saying. their response to you is that the women are making the choice in the first instance. >> come on. the catholic health systems, whose ceo supports the accommodation and is comfortable with the president's adjustment in the policy, the catholic hospitals employ hundreds of thousands of americans. to cut them off as a potential employer for any woman that wants to be able to have free access to contraception, that is available to any other person who works for a different employer, that's really not a choice that those women should be forced into making. choosing between continuing to hold their job and being able to have affordable access to family planning. and let me add that 61 percent of catholic women support the president's current adjustment, and as many as that number

supported the original decision, because like i said, contraception is expensive, it's important to be able to plan your family. 99 percent of americans use contraception sometime during their lifetime. and you know, the flipside of this is that religious institutions shouldn't be imposing their values necessarily on their employees who don't necessarily subscribe to those values. so there needs to be a balance. megyn: debbie wasserman schultz, thank you very much. >> thank you megyn, great to be with you. megyn: going to get the other side of the argument now, i'm joined by bill donahue, president of the catholic league. let's start with the business about the accommodation, for example, talking about the archdiocese of washington which you pointed out is self-insured and it's not just churches within the arch die he's, it's schools and so on. she says in the next year there will be time to work out i guess a way around this, bill. >> yes, as archbishop doe an

said -- dolan said, we're going to find a way to rye -- violate our own conscience. >> i want to point out an article in the "new york times" which indicates that the obama didn't even consider this whole question about self-insurance. now they want to step away and say for the next we're going to help you in this area? they never even considered what do you do with this issue of self-insured. that's only one part. by the way, 60 percent of health care workers in this country are self-insured, 82 percent of the people that work in large companies are self-insured. then we have another problem, what about the catholic league which has as its carrier christian brothers, what's going to happen with them? as kathleen sebelius testified yesterday, actually she said it in a q & a following the testimony, that the catholic insurers do not follow catholic tenants -- tenants, she said religious insurers did not follow the tenants. that is factually.

tristan brothers follows catholic teaching. it does not, for example, buy stocks in the tobacco industry, in the military industry, or in the birth control industry, so it's so much misinformation about this, and to say this is somehow a secondary or tersory issue dealing with human rights, if the federal government under a hostile government were going to try to shut down fox, would it ab media issue? it certainly would. what would it be first and foremost? a first amendment issue. the primary number one, which is why congressman schultz and all the other people on obama's side want to run from it, the primary issue is a first amendment right, and we have riprock, the religious freedom of information act which guarantees the government cannot come in unless there's a compelling interest to deal with this question. megyn: i know you're going to raise legal challenges and some have already been filed.

speak to her about the hundreds of women at catholic hospitals who don't really want to make the choice between getting their birth control covered and losing their job. >> quite frankly, everybody has an option to work wherever they want. am i going go to work for say a muslim outfit and they have muslim hospitals and others and i get in there and say you know what, i don't like your rules, they strike me as really bizarre, i want to get an exemption from them, actually, i don't want an exemption, i want you to change your prerogative, i want you the muslims to get in line with me the catholic. they would look at you like you were out of your mind. why is it the same people who discovered religious liberty, when the muslims wanted to put a mosque down by ground zero, that was a religious liberty issue and all of the sudden now it's a woman's issue with a health care issue. see how slippery these people are? >> megyn: bill donahue, thank you very much, sir, we appreciate you being here. it was a good debate. we'll be right back with our panel. we're going to go in depth in moments on the latest news when it comes to

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megyn: well, some surprising new developments in connection with the powell family murders. josh powell was primary person of interest in the police investigation into his wife susan's disappearance from their home back in december 2009. he of course was never actually charged, however. then, powell killed himself and his sons on february 5th, after the boys were dropped off at his home for a supervised visit. he refused to let the child family services person in and then the house blew up. well, he was slated to be buried next to his two boys, but now two local police officers have stepped in and trace gallagher picks up the story there from our west

coast bureau. trace. >> reporter: seven-year-old charlie powell and his five-year-old brother braden are buried together in the same plot, plot number three. well, the family of josh powell had asked for, at the cemetary, wood vine cemetary in washington state that josh be buried next to the boys, either in plot two or in plot four, but the local sheriff and one of his detectives said that was not about to happen, so using their own money and money from crime stop -- crime stoppers they bought both plots two and plots four. listen: we just want to make sure that there was no way that josh powell's name was on any type of headstone or any warninger -- marker down here. >> it's a municipal cemetary, we don't have anything in our rules and have not found anything through our noarns state law that allows us to restrict the sale of a grave or burial of an individual. >> reporter: to keep josh powell -- they tried to keep

josh powell out of the cemetary all together but didn't know if they could legally do that but now we find out the family of josh powell has pulled back their request, saying they no longer want him to be buried at the wood vine cemetary. powell of course was also the primary suspect in the disappearance of his wife susan powell. now we are learning that stephen powell, his father, in jail on child pornography, has also been named a perp of interest because police believe he knows -- person of interest because police believe he knows more about her disappearance than he's saying, stephen powell saying he will not cooperate in this investigation at all and we should note, if susan powell's body is ever found, megyn, that she would likel be buried in plots two or four, next to her two sons. megyn: how about those cops? trace, thank you. >> >> reporter: okay. megyn: how about that? well, the defense team for former virginia lacrosse player -- university of virginia lacrosse player accused of murdering his

girlfriend has now dropped a bombshell, laying out a shocking new theory of how yeardley love died as the defense appears to be going for an all out acquittal, all that plus the emergence of two women who testified about their interactions with this defendant on the night yeardley love was killed. wait until you hear this, in kelly's court. a disturbing forecast for the u.s. housing market. it says to expect nearly, well, a big jump in foreclosures this year. so why is the white house saying that we've turned a corner in the housing industry? is that true? in three minutes our panel weighs in. >> the housing challenge is probably the biggest one that our economy still faces. i mean, we've recovered in a lot of sectors in the economy, but housing is still a huge drag on family budgets, it makes people anxious, seeing their homes underwater, i get letters all the time from people who are just barely able to make their mortgages and they're really concerned about it.

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megyn: new foreclosure numbers out today. take a look at this. home foreclosures, up 3 percent nationwide last month, but that's not all, when you look at the bigger picture, reality track is now projecting things could get much worse. possibly a 25 percent increase in foreclosures this year, to more than 1 million more homes. so what does this mean for the country's economic recovery? and what can be done to fix this problem? joining me now, our economic

panel, "wall street journal" columnist simon kohn stabl and fox business network's stu varney. what we said in the tauz wasn't exactly right. we said that president obama said we righted the howing ship and he hasn't said that. he said it's still a big challenge, housing is still a huge drag on the economy and these numbers bear that out. >> and it's going to be an even worse drag on the economy. we've just had the settlements by the banks of the foreclosure mess so now we've clarified the procedures that must be performed for a foreclosure. this opens up the flood gates to foreclosures. they have been holding back to clarify the rules. megyn: because they've been so terrified because they messed it up and got in a bunch of legal trouble. now it's been resolved so it's open season on foreclosures. >> that's why realty track says you're going to have a million foreclosures this year, up from last year. this is bad news for the housing industry. more foreclosures means more houses on the market for sale which pushes the price probably even lower. megyn: but doesn't it clear up the dead weight?

>> it has to have. it has to happen. there's no easy solution to this. the faster it happens, however awful it is, the better. it's like the plaster -- >> megyn: simon! >> it's going to be painful, but it has to have. -- has to happen. we had the credit binge. it is important to remember, there's no financial, no economic recovery that's been reboughs since the end of the second world war that has not involved houseing in a major way. megyn: it just seems to be a summit we cannot get past. >> we have to get past this and when we're through it the banks need to do what they said they would, which is start lending. but we're not through it. mig manager as a practical matter in the short item i think people are worried about the immediate future, if a bunch of foreclosures start happening in neighborhood. we don't know which are in trouble, but we're going to find out if foreclosures happen to the tune of

1 million this year. how does it affect your neighborhood if a bunch of homes are foreclosed on? >> the values start to go down even more, you personally are affected, because the housing market, the house you buy is the biggest investment that most americans ever make. if the value of that house goes down, you start seeing your equity wiped out, you've lost a church of the biggest investment you've ever made. so if we do get this flood of foreclosures and i think we will, you'll see a lot more homeowners lose a lot more of their biggest ever investment and they're going to be very angry about this. megyn: why does it have to happen? >> look, if it doesn't play out, it hangs over the markets. the reality is the banks know the homeowners are in trouble and that they are in preforeclosure, they know that. they will not start lending in any way to get the market going, get its mojo back. megyn: because it doesn't like the loans it already has out there. >> unless it gets cleared

and made right, or unless we have a massive inflation, and i know how you love inflation. >> look, the present polices are blamed in some respect and the banks are blamed for prolonging this problem, they've kept people in homes which they cannot afford. what a lot of people say we need is short, sharp rain, allow the market to clear, as they say. prices would fall sharply, very suddenly, but you hit a bottom, and incomes more private money to get those prices back up again and start selling. megyn: let me ask you a political question, what are the odds in an election year of president obama allowing massive foreclosures? because we may have to clear the market, but that doesn't look good and doesn't make people feel good. >> didn't the agreement that they just went through sort of clear the way for that to happen? >> well, the agreement which they've just gotten puts $20 billion towards people who have i be -- who may be under water but on time with their mortgages. megyn: you're talking about the -- about how the banks foreclosed on not

necessarily the right people, didn't do the paperwork right, and now they have to pay $20 billion to people. >> part of that money, 20 billion, will go towards keeping people in the homes they can no longer afford. they're trying to keep them in. that's the present action already. that's what we've seen. is that enough? probably not. $20 billion isn't very much money. not that many people get helped and there's a ton of foreclosures coming. >> but also we've got the procedures clarified. >> that's the whole point. >> the foreclosure proceedings being clarified gives an open road. megyn: i have to check these boxes and kick you out of your box. >> and the documentations. megyn: what happens in an economy when you have an additional 1 million foreclosures -- foreclosure, where do those people go, do they become renters? >> maybe they become renters in the same homes, but it still needs to happen. >> they become renters. they have lost the american dream. and they're going to be very unhappy. >> and it's going to be a negative wealth effect. megyn: but with whom will they be unhappy? know what i mean? who do you blame?

are they going to blame this on barney frank for pushing fannie and freddy, are the republicans getting the blame, president obama? >> president obama is going to blame the banks, it's the wicked banks, they got us into this financial banks and cet you in your house and now they're heartless, i am campaigning, i'm running this reelection campaign against the banks and oil companies and the rich, but the banks, focus on them. megyn: do you think that the american people have the appetite for this, even if it's necessary? it's one thing to say look, i don't want to give you a mortgage interest deduction, i'm goans that -- against that tax rate, it's another to ask the american people to get behind emotionally throwing people out of their homes, even if they're behind on their mortgages. it's so intimate. >> this is going to be horrible. we're already seeing social unrest. we've seen that, we keep hearing reports of it, the occupy wall street is basically a manifestation of social unrest in some way. i think we will see more and more of that sort of thing. might not be called occupy

wall street. it will be other things. i think this will be horrible. but i think we've got to go through t i'm not saying i like that. if there was an alternative, had -- alternative i'd come up with it but i don't think there is one. >> do you think he will forestall the foreclosure and force the other side to oppose that? and it looks like they're opposes throwing people out of their homes. >> he's tried temporary fixes and spent hundreds of billions of dollars doing it. and it hasn't worked so far. i'm not sure what he can do to keep people in the homes they can't afford. >> you're saying we need to kick them out because it will benefit the greater society, ult ultimately help revive the economy. >> we need to do that and i think government interference is the last thing we need. it's the government involvement that got us into this mess. you know, do we want to get into more mess? no, i don't. let it clear. it's not great, it's a bad situation, we're going to make the best of it. if house prices come down, maybe some young families can buy these houses and

they can have the american dream and that will be great. megyn: i got 2brits on talking about the american dream! >> we want -- we're both living it! >> go out for fish and chips and sider after this! >> don't get carried away! >> thank you very much. megyn: that was awful. coming up, the trial of a high profile hurd takes a turn, two young women have come forward to day that the -- say that the defendant george huguely tried to contact them within moments of killing yeardley lub. why did he do that? how does this impact the case? the prosecution has rested. next, in kelly's court. >> the only thing that's important is whether or not she would be alive if he hadn't put his hands on her. >> hopefully they will agree on intent versus whatever else. across the golden state,

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trial involving the death of a beautiful young cooed at the university of virginia, the dwents for now former college lacrosse player george huguely opened its case with a bang, offering a new theory on how yeardley love died. george huguely was yeardley love was ex-boyfriend and he's fighting accusations that he intentionally and with malice of forethought murdered his ex-girlfriend in a fit rage. trace gallagher has the latest on the courtroom proceedings. >> reporter: we should note the court is in recess until tomorrow morning because one of the defense attorneys came down ill. we should also note the judge says this case could go to the jury by sometime late tomorrow. the defense's big witness was a medical examiner, a medical expert, who disputes the medical examiner's cause of death. the expert says that yeardley love suffocated as she lay face down on her pipo with blood-soaked -- it was a blood-soaked bed. experts say she died from a

lack of blood flow and oxygen. the prosecutors say she died from blunt force trauma because george huguely banged her head against the wall many times. now, before the prosecution rested, they called a number of huguely's lacrosse teammates who testified that on the day that love died huguely had been drinking from late mid morning until very late at night and that he left his apartment around 11:30, he came back sometime after midnight with this blank stare on his face, they asked him if he was fine and he said he was okay, and then two women's say that george huguely sent them sexual text messages on the day and night that love died. the defense, asking them if those text messages could be considered playful, and they said yes, they could. megyn: trace, thank you. joining me now to discuss it in kelly's court, former prosecutor kimberly guilfoil, cohost of the

"five", and mark arguish. you tell me, the defense comes out, kimberly, and suggests this woman died completely accidentally by asfixiation and this was not a brain hemorrhage from shaking as the prosecution has claimed all along at all. might this confuse the jury enough to get an all-out not guilty? >> i don't think that's going to happen but the defense has to do that. they can't admit that in fact she died from the blunt force trauma put on in a compelling way by the medical examiner. the defense expert who testified, a neuro detroit pathologist, didn't have time to examine the body or perform an autopsy to form his opinion. this is from merely reading the reports, megyn. i don't find that to be persuasive or compelling, it doesn't factor into reasonable doubt. the fact of the matter is that witnesses heard a crash sounding so loud and that was yeardley love's head hitting the ground. it's very clear she died

from blunt force trauma. he's the one that put the forces in motion, anyway. we know that he beat her, he thought she was still okay and then she, what, suffocated in her pillow? he's the one that did the beating and nevertheless left her to die. the law will not excuse it. megyn: it's one thing to have dualing medical experts talk about cause of death but when you add the other stuff in, because they had testimony from one of his college roomates, how he lied about where he went, when he went to yeardley love's apartment, he lied to his roomate, how he came back with a blank stare, stole other computer, the interview he gave to the police, all of which he tried to downplayed, helped the -- will help the jury decide which expert do i believe. >> here's what's good about the defense. they didn't cameoo come out and said he's in the. they said involuntary manslaughter should be the only thought on your mind, so they're conceding involuntary manslaughter, they're hoping and praying that's what they come up with and that would be a ten

year tap. if you look at the defendant's statement, the question is what proves anything that's inconsistent with his statement. he's saying look, i went there to argue with her, it turned into an argument, then it turned into a fight. he's conceding that he's responsible for the bloody nose, that at some point during the struggle, her head slammed again the wall. the defense will argue that he left her, and that she wasn't dead and at some point she got down with her own head on the pillow and their own expert is alleging that's what caused the tragic death. his response when they played the statement in court, he was crying. megyn: men -- they're always trying -- crying when on trial for murder. >> he was surprised, he said i cannot believe she's dead. >> megyn: because he was obliterated, kimberly. that's what the prosecution put in over the last couple of days. >> let me tell you something, that's ridiculous involuntary intoxication, because he's a big, angry, violent, repeat abuser of this woman? then he should walk? the law will not excuse that

whatsoever. he was the one that went there with the specific intent of having an argument with her. megyn: kicking in the door. >> smashing her head into the wall. all of this is what caused her death. there is no -- >> hold on one second. >> there's no evidence that she suffocated or that the victim drowned on her own blood. >> kimberly is confused on the law. >> i am not. >> his specific intent, if it was to go there and have a discussion with her is different than specific intent that's required for first degree murder. >> that it be changed in an instant, thriek. >> again, during a struggle, this is not what i'm saying, this is what the defense will argue, during the struggle in which she allegedly had a # .1 alcohol level, clinically -- clinically intoxicated, her head could have come in contact with the wall. he is responsible but didn't intend to causer tragic death. megyn: why did he steal her

computer? >> you get that, right? i don't care if he went there with intent orioo. >> wow! >> during the commission of a felony, which would be stealing a computer and removing it from the scene because he wasn't so drunk that he didn't try to cover up his heinous crime, it was first degree murder. megyn: i just want to ask you about something else. if it came out, the prosecution put on the witnesses, women who testified that -- one of them said literally within moments of when yeardley love died, he's teching them, where are you, two women at least, like right around the time he's allegedly murdering yeardley love, the prosecution puts this on. why? >> well, to further show that this guy is an absolute jerk, he's an idiot, he's a drunk, but that no in -- in no way furthers what happened in that apartment. let's go back to the computer. this isn't a walk on felony murder. if the evidence shows that that computer is worth under $200, it's not a conviction

on felony murder. megyn: it has to be of a certain value. we'll continue to follow it. the defense is now putting on its case. they had to journ because of one of the sicknesses of one of the lawyers. this is getting a lot of attention. coming up, the witness coming up, the witness takes the stand at >> i am

megyn: free land up for grabs, small towns in nebraska and iowa are giving away pieces of property in the hopes of boosting their populations. but in some towns, there are few takers. alysha acuna live in our denver bureau with more. >> reporter: hi megyn. these are homesteading programs. remember about herng learning about this in history class where in the mid 1800s the government gave away land to folks with the stipulation they improve the land, like building a

home. that idea is back in some parts of the country. went to central city, nebraska where bill and la von stewart let us into the home they built. the city gave them land with the stipulation they build a home worth $100o $100,000 or more. >> we got free ground to build a house on and the stipulations were not that much, and it was a great way to put equity in the house without having to do anything. >> >> reporter: central city officials say the lots are valued at about $12,000. they decided to go back to homesteading this was signed into law by abraham lincoln in 1862 because the town's population was dwindling, and so far, they have seen the most success in the state. >> and i bet people would say over the phone, i'll take it, send me the paperwork, and it's kind of like come here, look first, you know, we want to make sure this is a place you want to live.

>> reporter: but it's a different story in lewisville, nebraska. it's not far from omaha, a very nice place, yet it's not getting the bites and despite having a program packed with financial incentives, they've only been able to get a handful of contracts. officials there told us, megyn, it's still expensive to build a home, even if the land a free and again, some people simply don't want to live in a small town. megyn: thank you. high levels of arsenic found in some baby form lark the known carcinogen turnsum in cereal bars and what researchers say they found in your food. @=h

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>> megyn: snickers, motto says they really satisfy. mars the company that makes the chocolate bars has decided to stop selling the king sized variety.