i'm kelly wright. thanks for watching. keep it right here on fox news channel. ♪ >> heather: i'm heather childers and welcome. >> i'm gregg jarrett. glad you with us. the latest on the search for a missing 16-year-old girl and her alleged captor after a witness says he saw the two trekking through one of roughest wilderness areas in united states. >> heather: potential pitfalls the real reason why consumers aren't saving as much money as they think they are. >> gregg: mayor of san diego is quitting after self-mandated therapy for

sexual misconduct. can he still show up for work? >> heather: we begin with this. fox news weather alert. as we track severe flood danger. hundreds of people calling for help in tennessee where flash flooding took a lot of people by surprise. in colorado a fast moving mudslide leaving one man dead and authorities there looking for three people reported missing. people are on alert in the mississippi river valley where continued heavy rain could trigger intense flooding. brian is live for us with more. >> reporter: much of the midwest and southeast is pummeled by torrential rains and ten inches of rain falling on friday flooding hundreds of homes and businesses in states like colorado, kansas, missouri and tennessee. floodwaters sweeping through roads and highways in colorado. 1.3 inches of rain following in only half an hour causing

this fast moving mudslide along highway 24 killing a man. muddy water carrying homes and debris. three others are still missing. listen to this woman who held on to dear life as the home rushed right by her. >> at that moment i knew that the water was getting higher and coming over it. then the bottom broke off and it went through. i said i have to get out of here. i was screaming for help and i watched them rescue a dog. i watched the house go by. i watched cars go by. >> reporter: missouri, 15 inches of rain in two-day period. in some areas in southwestern parts of the state, floods killing a four-year-old boy and his mother when their cars were swept off a bridge. in kansas flooding arkansas river overflowing on the fields and roads. in wichita, rescuers pulling rescuing a man floating on

an inner tube. dozens of people rescued from their homes in nashville, tennessee, more than a hundred homes completely flooded out. missouri, kansas still under flood warnings throughout the night. >> gregg: more than two dozen homes destroyed in a massive wildfire. it's called the silver fire. it's grown to more than 18,000 acres. firefighters are making progress in containing it. one woman who lost everything in the blaze says she had little time to evacuate. >> i determined when we jumped in the car they were coming that fast. i don't know whether to rebuild or look for something else. >> gregg: dominic has more from beaumont, california.

>> reporter: you can't reach the remote areas of the san bernardino forest where the fire blazes on. they are having to walk on foot if the mountainous territory using chainsaws, hacksaws and axes to keep it from spreading further. >> it's very tedious job. they are way on top of the mountain in the black mountain area where we have a hot line unable to access it with fire engines. they have to hike in with hand tools and separate that fool so we don't have a rekindle of the fire. >> reporter: the real danger of fire, it was called a dirty burn. part of the vegetation wasn't consumed by the flames. unpredictable flames shifting it means that flames could double back in areas. evacuation orders have been

lifted in numerous communities but two areas remain including twin pines. there, a number of houses were entirely devastated by the flames when they crossed in on wednesday and thursday. >> i don't know for sure, but the flames were really big. >> california governor has stated an emergency for riverside county. fire investigators still don't know the cause of the silver fire. >> heather: a tragic update in a search for a missing teen and her accused kidnapper. as police confirm that the remains of the girl's 8-year-old brother were found in the suspect's torched california home. james dimaggio he is also accused of killing hannah anderson's mother. he admitted he had a crush on the girl before he abducted her. now, the search is spreading to mountainous terrain and

man in horseback reported spotting the pair. will carr has this report from los angeles. >> right now more than 150 people are searching an isolated, very mountainous part of idaho. authorities have zoned in on the area because a person spotted them in a wilderness area about six miles outside of cascade, idaho. they had small talk and saw them with a tent and appeared to be camping out. >> he described the interaction as awed but when he got back to his home and saw the reports about the amber alert, he did think, they look pretty familiar. >> horseback rider called police immediately. they appeared to be in good health. from his perspective did not not appear that hannah was being held against her will.

they found his car yesterday morning. the license plates had been taken off and the car had been covered in brush. it looks like he was trying to hide the car but able to identify it as his car based on the vin number. they have learned that the car did not have any explosives inside of it. agents continue to look for these two, dimaggio has a good head start on them. nobody has seen them since wednesday. back in hannah's hometown, people are mourning the loss of her brother and her mom and at the same time pray for her safe return. >> gregg: four bodies pulled from the wreckage of a fiery plane crash in connecticut. aircraft slamming into two homes yesterday in east haven and then ignite an inferno there. two of those were killed

were aboard the plane and two others why inside the homes. a family member of the pair of the plane identified them as a former microsoft executive and his teenage son. there is no word yet on what caused that accident. >> heather: state department planning to reopen 18 of the 19 closed embassies in the middle east and africa. u.s. outposts were shut down last sunday because of a terrorist threat by al-qaeda in the arabian peninsula. embassy in yemen will remain closed, most of the employees asked to leave earlier this week. >> gregg: it has been three months since the targeting scandal engulf the irs first erupted and now there is new controversy as we learn an official at the center of the scandal is actually getting promoted. elizabeth has more. >> it marks the three-month anniversary of the irs

scandal. cindy thomas in charge of cincinnati office is getting a promotion, now she is senior technical advisor. she will share position who was once a close advisor to lois lerner. she was the first one to talk about the targeting. she still faces scrutiny and she could end up facing a special prosecutor. >> this is why l lois lerner took the fifth. >> meanwhile, a congressional hearing reveals tea party groups are getting extra scrutiny as an unidentified irs agent that the agency has yet to come up with guidance for certain groups. >> it shows that groups are still being sjsd out. >> singled out. >> they say the ongoing

targeting is outrageous but they wanted to better understand the concept. irs screening is clear, it's based on words and not maims. house republicans have also called on the federal election commission to turn over irs commission records. they have pushed for more interagency exchanges including that of lerner which may have shared confidential tax information. >> gregg: elizabeth, thanks. >> coming up later. we'll get to the stunning new allegations from an irs employee that testified before congress that the agency is still targeting conservative groups right now. columnist for the washington times charlie hurt is here to talk about it. >> heather: a wide ranging news conference. president obama is headed to martha vineyards for a family vacation. earlier today he was addressing war veterans

promising to make sure that the brave men and women who defend our county have all the resources that they need. wendall goler is awaiting his arrival in cape cod, massachusetts and joins us live. >> the president is due here in the next hour to start an eight day vacation away from congress. they have made military families a priority and today they unveiled an action plan on mental health research meant to improve treatment of brain injuries. he noted that the u.s. is on track to withdraw from afghanistan by the end of next year but the combination of ending the war in iraq and winding down the afghan fax is overtaxing the disability office. there was a backlog of 600,000 claims back in march. that has been cut by about 20%. >> we will eliminate the backlog once and for all and move ahead for paperless

systems so the backlog doesn't come back. so it has to be right first time, on time. [ applause ] after years of military service you shouldn't have to wait for years for the benefits you have earned. >> reporter: yesterday at his first news conference since april. president was pressed to defend the phone and data collection system along with the budget and debt ceiling. here in the vineyard, aides say he will receive regular updates on the al-qaeda threat that led the state department to close embassies across middle east this week. all but the embassy in yemen is open to tomorrow, and they are critical of the decision to keep it closed. >> gregg: new installment in the story of political groups being targeted by the irs as we learn about a claim from an agency employee that suggested the

agency has yet to change it's bad ways. >> heather: and encouraging update from the family of nelson mandela. we'll bring you the latest on his ongoing health battle. >> you might want to think twice when you check on the bargain blowout. americans think they are saving the most money are spending more than they were before. ♪ ♪ ♪ [ kitchen counselor ] introducing cascade platinum. its triple cleaning formula delivers brilliant shine that finish gel can't beat. it even helps keep your dishwasher sparkling. new cascade platinum is cascade's best.

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>> heather: welcome back. time to check the headlines, nelson mandela's family says his health is steadily improving as he recovers from a recurring lung infection at a south african hospital. his daughter says he can now sit up after two months. >> a bangladesh man was sentenced to 30 years in prison trying to blow up the federal reserve building in new york city. >> and kris brown recovering from a seizure brought on by stress. they say legal trouble and nonstop negativity caused him to be ill while recording in a los angeles studio. >> gregg: stunning new

allegations involving the irs. this week house ways and meanings committee releasing testimony from an unidentified irs agent claiming the agency still to this day targeting conservative political groups. charlie hurts joins us. if true and an agent says it is under oath, is it's indefensible but not surprising? >> it's not surprising because we are talking about the irs and federal government. to just take it out of that it is merely impossible to believe when you consider, gregg, all the coverage that has gone on, all of the hysteria and i say justified hayes tear yeah over this is the last couple of months and the shakeup at the top of the irs and the absolute promising by the president that they are going to fix this and change this and

behavior is unacceptable. the idea that it is still continuing on today, that the tea party groups are being sidelined for special scrutiny boggles the mind. >> gregg: i read the testimony of the agent. this unnamed irs agent testified in the three long months, the irs has failed or refused to devise new rules. that the old ones are in place. that should take a day or two to devise new rules. does that suggest to you that wur if ful the guy is incompetent or in the alternative complicit in continuing to target these conservative groups? >> it continue have been his first priority. day one you come in and make these changes. i don't even know how it is

possible. it's really talking about exxon or walmart or some private company that it had massive public relations disaster occur. it would be done within 24 hours. not to hold corporations up to the same high standard. >> gregg: heads would roll instead of being promoted. >> yeah. in this federal bureaucracy, it goes on and on and i'm sure it has something to do with the power of the federal employees union. but to the fact it's a massive federal government and we suckers who pay our taxes and supported all of this, we have no say in it. they just don't care. honestly, this is why the whole temperature to begin with. >> gregg: several democrats are claiming that liberal or

progressive groups were treated the same way. the numbers belie that. it turns out only 7 liberal groups were examined by the irs which murdoch put in perspective this way. institution that the irs placed under a microscope was 67.3% liberal, 93.7 conservative. not quite fair and balanced. all the liberal groups were approved by the irs which why none of them have complained about it. do the numbers tell the story of brazen political discrimination? >> i think absolutely. all the things we've heard from named and unnamed officials at the irs -- i love their explanation. their explanation, the reason that the irs targeted the conservative groups is because the conservative groups are against higher taxes and against paying

more taxes. liberal groups are in fai of paying more taxes. therefore we need to scrutinize -- that is laughable and really an insult to the conservative groups but to any proper tax paying american. >> gregg: i want to show you and our viewers this graph because it speaks volumes. this is the first tell of the president. it shows the now former head of the irs douglas shulman paid 157 visits to white house. that is the vertical bar on the far right-hand side. that is way more than any other, indeed, high level cabinet members on the far left side. secretary of defense an important position, 17 visits, secretary of state, 43 but 157 for shulman yet he claims he never discussed

persecution. does it defy credulity? >> i have a healthy criticism around conspiracy theories. you try to be skeptical of these things. my goodness, when you look at the numbers and look at the graph you put up, it's very hard to not come to the conclusion, are they trying to conceal something? of course, the irs claims that oh, no, he really didn't make all those visits. why was he listed to make all those visits even if he didn't make them all? it does raise a lot of questions and the questions that a lot of our colleagues in the media are not asking questions about. there were no questions about this of the president yesterday. >> gregg: astonishing. charlie hurt, good to see you.

>> heather: still to come an update on an on-campus sex crime. police arresting three former football players to serious charges they face ahead. >> gregg: plus, we all love a bargain. who doesn't? the great deals you think you are getting may be a lot more expensive than you realize.

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>> gregg: time for the top of the news. the search for 16-year-old hannah anderson and suspected abductor in idaho. a horseback rider says he spotted the pair near the town of cascade. >> heather: four bodies pulled from the wreckage of a fiery plane crash in connecticut. two of those were aboard the small plane. two other victims were inside the home. >> gregg: three former

vanderbilt players arrested following an investigation into an alleged sex crime. a fourth player indicted in the case but not as yet in police custody. police are saying an investigation revealed an alleged rape of an unconscious victim. >> heather: to a new warning for your wallet and even the smartest of shoppers may not be immune to this one. probably everyone has taken advantage of a sale here and there. now, a new study reveals that behavior is actually costing you more than you think. pat powell is the founder and ceo of powell financial group. she joins us now. thank you for joining us first of all. so, pat are we spending less money or not? what are you seeing in the numbers? >> there is a great deal of confusion with the numbers. according to the survey, people say they are spending less than they did a year ago. when you actually look at

the numbers it's just not true. people are confused about this. particularly people admit they are spending more on groceries because they are eating at home and they say they are spending more on household items but when you look at the numbers what we're being told is the numbers say they are up about 5% that we are eating out more, we are drinking at bars more, we're vacationing more. there is a great disconnect what we say we're doing and what we are actually doing. >> heather: what is the cause of discrepancy? >> that is really great question. even the reseahers put out this report don't really know. one that was pout there we just love a bargain. americans love a bargain, but we all know that even millionaires shop with coupons but when youing to the store you are buying a more expensive item along with the coupons. we love the sales. there are some stores that never take down the sale

sign. sale price is almost the real price. we fall into that trap sometimes of buying because it's on sale, not buying because we need it. >> heather: all sales are not created equal. you mentioned the sale sign in the store. we don't even have to go into the stores anymore because the sales are coming right at us into our homes. online, constantly, via email. we're getting constant updates, we search certain sites. they say we have a sale, by the way and we don't have to go to the store these days? >> we are constantly inundated. these marketers can follow our internet patterns. they can tempt it's with coupons and specific sales that seem to be just for us. these marketers, these companies that do the surveys, they get paid a lot of money to part from you

what money you have. so what you have to do is be vigilant to hold on to this. the day of keeping up with the joneses. they probably lost their house in foreclosure and they defaulted on the credit cards. the joneses are not a good model. >> heather: don't keep up the joneses and be aware that all sales are not created equal. what else do we need to do get finances in order? >> you need to pay attention. one of your budget items has to be saving. one of the numbers that none of these marketing firms the savings rates are up compared to 2007. they are currently in the 4%, 4.6 depending on the month. that is the first number. what you are going to save. get on it oust your checking account and wallet and keep

the credit cards at home. if you shop with cash you can't overspend. >> heather: don't spend what you don't have. >> save something important later. >> heather: you just mentioned that savings numbers are up, but people are also spending more money. what does this say about the overall economy? >> if we are still going forward in this rather lackluster recovery. we have more jobs. a lot of them are part time. you heard the stories about that this week. we do have more jobs. we have disposable income has been going up. as we go along we are spending more but making more. but the numbers are so slow, it's like walking through slush. you don't seem to be getting anywhere but when you look back we have actually moved forward. >> heather: what do you expect to see in the near future and then further down the road?

>> well, a lot depends on what happens with obamacare. a lot depends on what happens with jobs. if we continue just to have more and more part-time jobs, that is going to be a really bad sign for the economy because that will be a really bad sign for individuals. if we can find a way to make the right changes so that employees will hire full time people, then we really do have a recovery that can keep going, albeit slowly. >> heather: we'll take your tips into account. >> gregg: there are growing calls for the embattled san diego mayor to step down after the accused sexual predator walked away from his therapy. can he be forced out of office? >> heather: and the war on terror appears to be entering a new chapter. latest developments in yemen that have the u.s. military sending in reinforcements.

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civilians injured in a second day of violent riots in northern ireland. protestants trying to block a march by nationalist catholics in bell fast. seven people have been arrested. there is growing pressure for san diego mayor to resign as more women are coming forward with accusation of sexual harassment. he took a leave of absence to complete two weeks of intensive therapy. his staff says he has completed the program but it's only been a week. he will be taking personal time off next week. mayor has denied he sexually harassed anybody but he apologized for improper what was called improper behavior. panel, thanks for being with us. doug, let me start with you. the thing that pops out at me, you kind have to chuckle

even though this things is tragic and sad is now the city council is unanimous. they have all called for him to quit. they change the lock on the mayor's office. so he can't even get in. i'm not sure they can do that legal but li. how can they get rid of him other an long recall process? >> apparently there is a couple of ways. it's a democracy. there is in the city charter to set up recall election, but that may take too long. the other way the local prosecutor but not she has recused herself on this case or you could convene a grand jury that could lead to his ouster. >> gregg: rachel, in the introduction he says i will be cleared by a full and impartial investigation.

then why did he apologize and he said he was engaged in wrong and improper bhiav. he has incriminated himself, hasn't he? >> absolutely. it's addiction behavior if somebody has a problem, they apologize immediately and then they started to justify and make excuses. i'm just fine. anybody with an alcohol or drug problem checks himself to rehab and checks himself out they are not addressing the issue. this is not of case, he said, she said, she said, she said and it goes on and on. >> gregg: here, i looked through the accusations, unwanted advancements. offensive touching. lurid sexual comments. one woman i walked through the doorway and i couldn't get through. he was trying to make advances. the worst part that i read, he allegedly made unwanted

advances on female military veterans who had been victims of rape. and barbara boxer to finally send him a letter. i'll read part of it. latest revelations regarding your behavior toward women recovering from sexual assault, women who desperately need our help have shaken me to my core. doug, what about criminal charges, not just civil lawsuits by these women -- criminal charges for sexual assault and battery? >> it's interesting, if you are taking down to a scorched set of earth there comes a point in time, go back to watergate, nixon had to resign. here is what is going to happen is exactly look you said. to ratchet it up to a more serious level. and more damaging information comes out then i

think he is going to step aside. >> gregg: in all these lawsuits they are piling up and accusations from different women. he didn't have a lot of money. the plaintiffs are going to be looking for a deep pocket. i'm wondering if the city, government is going to get sucked into these lawsuits or some other theory? >> there is some supreme court case law on this. the one that is most appropriate is a supreme court case that basically says the city has a policy they put in place to avoid this type of thing. if they have a policy on trained sexual harassment for their supervisors. then the city doesn't ensure this training happens they can be on the hook. the city may be in trouble here because it has come out while the mayor has signed up for this while they cancelled the training and

never rescheduled it. it's not clear-cut that the mayor is the only one that is going to be on the hook here. >> gregg: there is one existing lawsuit that got off the ground first by one alleged victim. i would envision, would you not, a judge saying i'm going to allow all the victims to testify in this case or alleged victims because it establishes what is known as a pattern of conduct which would make their testimony admissible? >> absolutely. it was interesting because he was supposed to give a deposition recently. it was put off or adjourned because him participating in counseling. it seems he ended the counseling early. the more lawsuits, more depositions, the more evidence. >> gregg: pattern of conduct could be admissible in a criminal case. >> right, preparation and so forth. >> gregg: the feds are getting involved, not

necessarily on sexual conduct but apparently a business made a $100,000 payment. that business wanted an easement. and fil never got them the easement. when it became had you been, i gave back the $100,000. rachel, there is a lot of stench associated with that. there could be criminal and federal charges, corruption, bribery? >> yes, absolutely. bribery of a public official. and it will be interest to watch it play out. i'm most concerned about the criminal charges that could be issued around him. if somebody was saying sweet nothings in my ear and i was grossing me, i would be out of here. >> gregg: that is classic case if true. i do worry about the statute of limitations. it may have run on some of those.

rachel, doug, good to see you both. >> heather: new reports shedding lighted on al-qaeda. terrorist organization in yemen who makes up the group and are we are seeing a resurgence in the terror threat? how mu protein does your dog food have? 18 percent? 20? new purina one true instinct has 30. active dogs crave nutrient-dense food. so we made purina one true instinct. learmore at purinaone.com

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>>. >> gregg: you wanted to see this a daring tightrope stunt in china. walking on a wire 1600 feet long 300 feet above a river. they performed stunts in the air, hanging upside-down, balancing on one foot. they completed the walk without any problems problems. >> heather: new insight into the makeup of al-qaeda in the arabian peninsula. recent drone attack killed at least 7 suspected al-qaeda militants from saudi arabia. this suggests that more saudis are crossing into yemen for terrorist training. meanwhile, the u.s. providing even more aid to help yemen bolster its military. steven yates is a former deputy official and ceo of d.c. international advisory. thanks for joining us.

i want to begin with this. i want to talk about the u.s. diplomatic posts. they are set to reopen across africa and middle east after they were closed temporarily last week except in yemen and pakistan. what does that say to you about the status of threat at this point and where we're focusing? >> would it seem to indicate there was fairly narrow targeted in terms of the warning given. it begs the question why were there so many closures across such a wide region if the focus of the real threat warning was so narrow in yemen. i guess it begs the question which is really true, is it broad threat or narrow threat in one country. >> heather: what do we know specifically about al-qaeda in arabian peninsula inside yemen? >> it's bean problem for a long time. it's not news they would be

level threat warning that merits concerns. the reports people traveling across the border from saudi arabia are important. u.s. has have active participation in yemen because they are threat by jihadists and terrorists. so there has been military cooperation and tried to arm them to defend themselves but keep a distance and not have to intervene. >> heather: since july 27th, drone attacks in central provinces that killed a total of 34 militants suspected of being members of the al-qaeda branch. are the drone strikes working to stop from growing there? >> drone strikes will eliminate the targets that they hit and those around them which sometimes can be a problem. but what they can't do is reshape the political forces of a country of concern. what we really need is the

non-islamic forces to grow in strength and govern without the need of our assistance. we're very far away from that. all a drone can do is eliminate one leader. unfortunately what we have learned from al-qaeda and osama bin laden taken out, once you remove a top leader, this is decentral i'd network. >> heather: i was going to talk to you about, but sticking with the drone attacks. 15 of the attackers, 9 were saudis on 9/11 and seven were killed in that strike. you touched on this briefly. what role or saudi nationals playing in the latest terror threat? >> there have been long term problems of islamist activism. people would know osama bin

laden originated out of saudi arabia base. it's not a surprise there would be activists and terrorists that would come out of that area but there has been active training in yemen and saudi side of the border for a long time just like the afghanistan-pakistan border. so the flow is troubling. we would like to believe the kingdom of saudi arabia would be an active partner in identifying and stopping that just as much as the government of yemen wants to. >> heather: so the u.s. navy adding to the planes to the hundreds of millions of dollars of aid we've given yemen. is that the best to stop al-qaeda there? >> i think we have a series of bad options. we have series of weak institutions in countries of concern. in many of them we have to deal with the military as the most available non-sectarian force for influence in these countries.

so for security and politics in some ways, dealing with the military is important. our u.s. strategy tends to emphasize intelligence and attacking from a distance which makes sense when war enter vehicles is not popular but it doesn't shake them to the ground that the countries won't be strong enough themselves. >> heather: thanks for providing insight to this. >> 1400 marines off the coast waiting in case something happens. that is going to do it for us. i'll be back in a couple of hours. "cavuto on business" is next. >> heather: we'll see you 4:00 p.m. eastern tomorrow. >> gregg: bye-bye. i'm beth... and i'm michelle. and we own the paper cottage. it's a stationery and gifts store.

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