plane has been found in the java sea. >> quite a bit of debris. things that look like life vests and luggage. families found this out by seeing bodies floating in the water with no warning. >> families broke down in steertears. >> you brief the families first before providing any information to the media. >> it is absolute torture. >> now the question is where is the rest of the debris. >> the officials now try to learn what caused the crash. >> until we get those boxes we won't know what happend. >> they have also noticed there's a dark shadow under the water in the shape of the plane. >> what will be critical is identifying the tail section of the fusel lodge. >> they are not confirming that there's no survivors. >> you never know stranger things have happened and people

do survive. >> after three days of searching, bodies and debris from missing airasia 8501 were found in the java sea six miles southeast of the last known position of the plane. indonesia officials say at least six bodies were seen and three were recovered placed on an indonesia war ship. relatives watched from the airport as images of bodies and debris were broadcast on television. of the 162 people on board, 137 were adults 17 were children and one was an infant. when the sun rises in less than two hours the search will continue. at least 30 ships, 15 aircraft and 7 helicopters have been involved in the search. today two dive teams and a navy aircraft will join in the search mission new year's day. >> good afternoon.

what we're looking at is yet another day of searching of course there off the sea and whether they will find the big chunks of the fusel lodge, specifically the tail section where the flight data recorder and voice recorder are located. question suspect those two key pieces of evidence will tell investigator what's happened in the final moments, were the pilots facing some action that aggravated the situation. did they pull the yoke up and cause the plane to stall? were they taking evasive measures because of the storm that they were facing? all of that as well as the conversations between the pilot and co-pilot should be recorded in these two black boxtes or an orange box that is in the tail of the plane. meantime they will pick up of course all of the victims that they can find floating on the

surface, any debris whether personal effects or even pieces of the plane itself. what they need to do is map out the exact location of where this plane is sitting and how many pieces on the floor of the sea there, where are the engines, what are the conditions of the engines, where is the passenger section, where is the cockpit, what about the tail all of that will be mapped now a very thorough investigation and analysis and it may be some time before we know what truly brought this plane down. we're talking weeks, maybe even months. looks like the french investigative agency may have the lead on this. it looks like french investigators are already on the scene and they may be the ones to then do the analysis on the black boxes and hopefully give us a sense of what happened on airasia 8501. >> thank you. joining me now former national

transportation board member thank you both for being here kitty, divers and ships are headed to the site. how hard it is to dig up an aircraft in waters up to 100 feet deep. >> first stle to locate the fusel lodge. we know there's debris in the water. whether the proximity of the debris to the actual body of the aircraft is unknown at this point. it may be that the debris was found as a result of waves and water motion so the first thing is obviously to find the fusel lodge lodge. the water is not adeep. once they find it it will be a pain-staking process. it shouldn't be that difficult to recover it. the water is nowhere near as

deep as we've seen in some other accidents. >> michael we don't know whether the plane broke up in flight or when it hit the water. what are some early indications of what happened here? >> first of all, what a horrible year's end for the families and also for aviation. this has been a horrific year for aviation particularly in that region of the world. it appears -- every crash has its own dna -- but clearly weather, and the pilots reaction to the weather situation. it appear there's may be an aero dynamic stall ever the aircraft when the pilot lost airspeed. the plane perhaps stayed in tact until it broke up. once again all speculation are all generally wrong. investigators will find the black boxes, they are the pieces

of the puzzle. they will look at air traffic control tapes, look at weather ks the structure of the aircraft and of the engine and the cockpit voice recorder and flight data recorder will pretty much tell all. it may take a year for a final report but we will relatively in short order find what happened to this aircraft. >> indonesia officials say their top priority is recovering the bodies. how much of that will be complicated by the weather? we've seen there have been waves of up to ten feet high. what other complications do you foresee? >> well again, we need to find the main body of the plane, once they found that, we have experienced divers who will work very carefully to remove the bodies from the main cabin part of the plainne and the cockpit and

will very carefully bring them to the surface. those bodies are important to the is a families and also to the version. investigation. the people who do this work are skilled in all weather. >> gifrn given there are several small islands near by what is the possibility of survivors? >> i think it is very unlikely at this point. we know this happened very quickly. if there were survivors on land i think we would have heard about it by now. >> right now asia pacific accounts for 31% of the global air passenger traffic and supposed to rise to 42% over the next two decades, what safety risks come with that kind of increased growth. >> tons. it's like the wild west of aviation rapid growth 71% of

the world's busiest airspace is in that region so the corridors are congested. there's a lot of planes flying and the middle class flying in indonesia. island to island short hops you're always in weather, chaotic weather is a big problem and indonesia doesn't have a very good safety track record in the area. so we have a pilot issue, in terms of the qualifications whether they are being paid enough, we have infrastructure air traffic control, we talk about data streaming and realtime tracking we're not even at the first step of that in those air yauz ofreas of the world. we have a long way to go. so those are real concerns with the fastest growing area of the world for air traffic and whether they can safely support itful. >> at the beginning of the segment it was said this is a terrible year for aviation

safety and air travel. we've gone through mh 370 the plane that disappeared. malaysia air flight 117 and now airasia 8501. how do we explain this? after years of having no serious fatal aviation accidents and now here we are talking about stleethree at the end of this year. >> i think we have to differentiate a little bit. the accident in the ukraine, the plane was shot down. >> right. >> it was part of the combat area there and came down as a result of that combat so i don't hi we can dhunt the same as the other accidents. i think the statistics the number of fatalities is high for this year but the actual number of accidents as i understand it is lower. so we have had two major accidents with large numbers of

fatalities but overall the number of accidents has declined. we have to remind ourselves even though we are focused and concerned about what happened here that aviation is still the safest form of travelful yes there are improvements that can be made everywhere in this country as well as southeast asia but we know what to do. we know what makes aviation safetier. we have to make sure that the standards that these countries and airlines are held to the highest standards. >> great point to end on. thank you both. >> thank you. another developing story, former president george hw bush is now back at home. he spent christmas at houston methodist hospital but this 6r7b afternoon he is resting at home and his breathing has returned to normal. coming up a republican

congressman in hot water another resigning, just among the crisis on speaker boehner's plate. and they call this recess? gas prices are down and economy is growing fastest since 2003. will you be surprise who'd is taking credit for that.

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new york city mayor bill de blasio is huddling behind closed doors today with leaders from the city's five police unions in a meeting meant to clear the air. there was much to discuss between de blasio and the pack of leaders who have accused city hall of fostering an anti-nypd

atmosphere. this coming one day after some booed de blasio at madison square garden while he spoke at a graduation ceremony for new police officers. on saturday hundreds of officers standing outside the funeral of slain nypd cop rafael ramos and watching on a big screen turned their backs as the mayor spoke. the snub from local officers who feel the mayor has not done enough to support them. it is a move bill de blasio calls inappropriate. coming up more on the investigation to find out what caused the crash of airasia 8501. bodies and debris were found in the java sea overnight. more details ahead. sure. take your time. built-in nav heated seats for mom dvd with wireless headphones for the kids! and tons of room for the golf clubs!

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republican steve is fighting in a conference sponsored by a hate group group. steve scalise has attributed his attendance at the conference to lack of knowledge about the group releasing this statement. but the wip seemed less concerned in 1999 when he and duke were potential rivals for an open house seat.

a roll call article documents this. joining me now senior fellow at the southern poverty law center and editor in chief. thanks for being here. >> thanks for having me. >> you wrote that scalise's claim of ignorance is almost impossible to believe, why. >> as you mentioned in the intro intro, david duke is now and was then by far the best known white

supreme sift in the united statesacist in the united states states. hard to believe he could not know who duke was when duke ran for governor and came close to winning in 1991. was always in the news there. as was his organization euro that was the organization he formed two years earlier under a slightly different name in 2000. >> euro is not so active. but the number of hate groups has risen considerably since then, hasn't it? >> that is true. the radical right in general has really exploded in size since the fall of 2008 when barack obama came onto the national political scene. went from 600 to close to 1,000 hate groups and militia groups

go from 150 to close to 1200. so the growth has been exponential. >> i think, yes, from your organization there has been 56% increase since 2000 in the number of hate groups in the united states. you've also said that representative scalise should resign his leadership post. why do you think that is so important? >> well i think that you know it is impossible to know what the man was thinking at the time, whether he actually shared some of the beliefs of this hate group or was simply willing to panderring to well known white supremacist and neo nazi's to gain votes. i think this cops at a time when the republican party is making a

lot of noise to reach out to minoritys. this seems poisonous to that effort, not to mention the workings of democracy in general. >> thank you. >> a pleasure. thanks for having me. this afternoon house republican leadership finally weighed in on the scalise situation with a full defense of their colleague. speaker boehner with this to say. the show of support for scalise came after the speaker spoke to new york congressman grim. grim then resigned his seat days after pleading guilty to felony tax evasion.

a fate for now the number three republican in the house appears to have avoided. joining me now white correspond correspondent and congressional reporter for the washington post. edly start with you. so the leadership standing behind representative scalise was that expected? and what is the calculation here? >> well the calculation is for now at least, jonathan there's nothing else here and this is an anomaly, that they are standing by him because they believe he did this one thing, he says it was now a mistake, that he was poorly staffed at the time and he didn't totally understand the origins of the group. i have a feeling any other suggestions of similar appearances, writings, or speeches or issues of support for this organization or something similar surfaces if it does we don't know it will

but you will almost immediately call for members of both parties to call for him to relinquish his position. at the least if it gets worse, ha to do what trent lock did in 2002 dropped the leadership position but stayed in congress. as you read just about every leader is on the record. the most that statement came out, rank and file said the same they stand by him and see no reason for him to step down. >> it is reported that scalise is meeting much resistance from his colleagues. isn't this one of the reasons the republican party is having such a hard time reaching out to people of color, this is one of the reasons why folks have so much concern about the party? >> absolutely is. in this case the fact speaker boehner stepped out and firmly stated his support for scalise

keeping his position followed by house majority leader saying the same thing and then scalise putting out a statement say he did regret that speech. they are trying to wrap this up really quick. it was a one time thing. congressman scalise didn't know where he was at somehow. this does go to efforts to reach out to minoritys bru theut the way they are packaging this there's nothing to see here he's a good man. >> on that point, mia love one of the two republican african-americans taking congress representing utah district, she said in all her interactions with him she see noz reason to believe he is racist or that he would be backing the beliefs of this group. from at least one of the two he now has support. they have been heralding her candidacy and it will hurt

another republican from texas who is black and both of them are under the gun to say something to see if wlrnt they will support next week. >> another person who put out a statement, african-american democrat who expressed support for congressman scalise, how important is that kind of support from congressman richmond and congresswoman love. and congressman richmond did it rather early in this story's process. >> i think it is critical and it was widely seen among democrats who are poised into do more than they have in calling for scalise to step downtown. the longer this festers, the better for it is for republican. but the fact richmond spoke on

behalf of scalise saying i know he's a hometown guy and has no reason to believe he believes in this group's tenants. he is the only black at this point so they saw this as a message to hold fire. >> very interesting. and gen, you talked to david duke what did he say. >> he said a lot of things i can't say on this program. one thing he said was that he does know steve scalise a little bit. he's met him a few times, david duke says steve scalise seems like a pretty nice guy, good family man, i support some of the things he does. the fact that he's out there saying anything positive about steve scalise right now as scalise is trying to get away as far away from this 2000 speech is not what they want to the be hearing. >> you said david duke said a lot of things you could not say

could you characterize them? >> let's just say he really really doesn't like israel. and he made it clear he was glad kantor is no longer in house leadership. >> how on earth does israel come into play in a discussion about a louisiana congressman and i speech given in 2002? >> david duke was telling me that he believes that the only true racism supremist state is israel and that's where the attention should be focused right now on israel. >> incredible. it reminds me of a speech i read that he gave at the time where there is a full on attack on israel in that speech. but you know what happened there in 2002 where scalise speaks to this group, yet the cubs minor league baseball team was aware enough to decide that rather than stay at that hotel in louisiana they were going to

go else where. so if a team in 2002 a minor league in 2002 could be so aware how is it possible that then-state representative scalise wasn't? >> i think part of the defense for him jonathan is based on reporting, he says he wasn't as well-staffed as the baseball team. he said i wish i had google in 2002. so that might have been part of it. i can tell you my colleagues have spoken with some of the folks close to david duke one of them was a neighbor of mr. scalise so it was suggested he may have known a little bit about this group but now they are saying he didn't and he considers it a mistake. we will see. part of the test is that this is a holiday week. washington is not in session. most americans are not paying attention. if they do find out about it if something else comes forward,

will it become a bigger deal certainly would, and would be a major misstep for republicans as they take full control of congress next week. >> i just wanted to say, you know i guess we should give steve scalise the benefit of the doubt that he did not know what euro was. it is sort of hilarious that he is siting he couldn't use google in 2002 to potentially look up the group he was going to speak to. i did a little research google was created in 1998 had been up and running for four years and was the top third, number three search engine by everybody on the internet. it is one thing if you truly didn't know what this group was about but to say he didn't have google at his finger tips is pretty flimsy. >> not very credible. thank you both. just ahead. there have been a lot of good headlines about the economy lately and another new one today.

you might be surprised who is taking credit for it this tile. next on "now." thanks. ♪ ♪ [ male announcer ] fedex® has solutions to enable global commerce that can help your company grow steadily and quickly. great job. (mandarin) ♪ ♪ cut it out. >>see you tomorrow. ♪ ♪ ♪ ah, push it. ♪ ♪ ♪ push it. ♪ ♪ p...push it real good! ♪ ♪ ♪ ♪ ow! ♪ ♪ oooh baby baby...baby baby. ♪ if you're salt-n-pepa, you tell people to push it. ♪ push it real good. ♪ it's what you do. ♪ ah. push it. ♪ if you want to save fifteen percent or more on car insurance you switch to geico.

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today for the first time in six years americans feel good about the economy. that's probably because it is growing fast. gas prices are low. the long sluggish job market is finally picking up. last week we found out the economy grew at a rate of 5% in the third quarter of this year fastest pace since 2003. on the job's front, latest figures showing u.s. economy 321,000 jobs last month bringing total jobs to 2.65 million more than any year since 1999. hourly earnings also rose by 0.4% who is responsible? some would say president obama. or if you are grover norquest

credited morning in america with republican austerity policies, because why not. joining me now political editor at the hufgtfington post. thank you for being here. it is pointed out federal spending dropped since 2011 to less than 20% of the economy from 24%. does this reduce the spending have anything to do with the recovery we're seeing right now? >> it has nothing to do with the connections he is making. in fact i think he is putting in a latentry for absolutely the weirdest argument on the year on the economy. look spending is very much a measure that moves along with the business cycle. as the economy improves as it is coming out of arecession

spending automatically goes down. fewer people are provided with food stamps or unemployment insurance, so you will find throughout history every time we come out of a recession growth goes up and spending goes down. what is nut bz this on the politics is that for years republicans have been saying that president obama and his policies are destroying the economy. now that the economy is looking up all of a sudden president obama has nothing to do with it it is somehow their stuff. now one final point. ifs if he is trying to connect this to spending cuts which reduced economic growth by point and half in 2013 in 2014 spengdding cuts were neutral because we reversed the sequestion and the economy was doing much better. >> did we show the chart?

the federal spending percent of gdp chart. it tracks exactly what you said. as the economy improves federal spending goes down. there it is. you talked to grover norquest what did you tell you? >> basically the case he laid out is we have had a more robust economic recover after sequestion and after we instituted a continuation of5% 85% of the bush tax cuts. these are basic tenents of economic philosophy. why don't we make the case that it is republican policies that led to this growth that president obama met us rather

than us meeting him. there is a truth that obama has bent a little bit on that but to jarrett's point, correlation is not causation, necessarily and the fact this is happening doesn't necessarily mean it's because of it. he is sort of dismissing the stim stimulus, ignoring that it stopped the bleeding and got the economy on a surer foot and allowed for this to happen. one other point that is harder to get into it he said a lot of what was benefiting the company now was instituted ten years ago, specifically the energy revolution, which certainly has contributed to what we're seeing now. but the debate is much more knewancesknew knewancedknew nuanced.

>> republicans have been talking about how bad the economy is for years now. listen to the candidates in 2011-12 campaign. >> i can tell you over the period of four years, by virtue of policies we put in place, got the unemployment down 6%. >> let's grow the economy by 5% instead of the 2% currently envisioned. >> i believe we can get gasoline from $2 to $2.50 a gallon and that would be an enormous change. >> all of those things have happened under president obama what do republicans have to say now? >> it is funny you played mitt romney i was think of the etch asketch moment, remember in the primary i will say one thing and have a etch a sketch moment on the secondary. you can't beat up on the

president's policies. you can talk about energy policy from ten years ago tax cuts from 20 years, i'm waiting for someone to say it is a reagan recovery with a fat lag. you can't beat up the president on the economy for five years running and then turn on a dime and say actually it's all us. especially when the facts just don't support your case. >> so i asked grover that. i said shouldn't conservatives look back and say maybe we were -- about our predictions and his answers, he said he met us half way so didn't get everything we wanted and second the mandates in obamacare has been put off as well. some of the rhetoric surrounding obamacare envisioned jobs being shipped over seas clearly that has not come to pass. reagan was an example, you cut

spending, cut taxes, and get a great recovery which obama hasn't done, but if you look at the numbers federal spending increased more under reagan than under obama. >> considerably harder under clinton. one quick point on obamacare. real quick. you want to know why spending is growing considerably less quickly because health care can costs are growing less quickly and part of that is linked to obamacare. >> exactly ux and we will talk about why jason demersdemocrats won't take credit on any of this. thanks gentleman. coming up, now that bodies of missing flight airasia 8501 have been found in the sea, we will have an update on the search just ahead.

homelessness and poverty in

the shadow of silicon valley. an exclusive look at the nation's largest homeless camp, next. first the market wrap.

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silicon valley is home to one of the wealthiest counties in united states and until earlier this month when city officials began to dismantle it it was also home to largest encamp for homeless called the jungle where almost 300 people lived. the destruction was part of an efrlt to find permanent homes but about a third of residents were not placed in homes because of huge housing costs. average rental apartment within ten miles cost more than 2600 a

month and median home price nearly $700,000. recently film maker pelosi went to the jungle after the destruction where she spoke to residents and a city official in the silicone valley. >> we're standing on story road encampment, there were over 250 people living at the site. tents. holes in the ground. unstable and unsuitable living environments all cramped together. over past 18 months we have embarked on a cleaning initiative to get people in housing. on any given night in san jose

4,770 people are homeless. there's a overwhelming perception of wealth here. the fact we have intense poverty is an issue that slips off the radar. >> i've been down in this area for three years off and on. i know it is effecting a lot of the people who are staying down here. it's hitting us hard. like wow, we're losing a spot that we've come to know as home. >> to me this is my neighborhood. it's the only thing i have. big community and believe it or not i'm so proud of them. they are the most hard working and strongest ever. in america you're word is only something to the people if you're somebody. if you're no paper you're just a crazy man talking. >> we are attempting to have a link back to sustain ability.

we had 33 people die on our streets in santa clara county last year who are homeless. if you talk to a majority of the people in the silicone valley and asked them if a place like this existed they would probably say no. but there is. it's very very hard in this community to afford a place to live. i think that creates a place where a large sector of our society is really, really struggling. joining me now is senior reporter for mother jones, josh harkenson thanks for being here. >> thanks for having me. >> you reported on the jungle where are these people living if they have been kicked out of the jungle. >> there are about 270 homeless encampments in santa clara county so they have really spread to the winds. a couple dozen started a new encampment down the road and were evicted from there and are

now camping on private property somewhere. so yeah, they're just being scattered around. >> the question that comes to mind how effective is this policy if a third of the people who are supposed to be helped by this don't even have homes as a result of this. >> i think it shows a failure of trying to use market based solution trying to give people housing vouchers and asking them to go out and compete with guys with tech jobs with over $100,000 a year. will you rent to a homeless person or someone with a job and resume. >> apple is just miles away from where the jungle was. you went down there to apple and facebook and asked employees at these places if they even knew what the jungle was and most of them said no. is there any awareness in silicon valley at apple, at facebook about homelessness that surrounds them? >> i think there's almost none. i mean the recent coverage of

the jungle eviction has raised some awareness but there's a cycle people fret about the problem and quickly forget about it a few months later. >> what about government officials. they came up with the idea of evicting folks from that 68-acre area. are they doing anything more proactive other than ejecting them and leaving them to fend for themselves. >> there's a lot of great programs there. the problem is there's not enough money to fund them all. they need more of all the great programs because the problem is so massive. that's really the issue. it's a lack of resources. >> thanks so much for being here. >> my pleasure. coming up bodies and debris were pulled out of the java sea just hours ago from the airasia 8501 flight that went missing

over the weekend. an update on the search, next. these ally bank ira cds really do sound like a sure thing but i'm a bit skeptical of sure things. why's that? look what daddy's got... ahhhhhhhhhh!!!!! growth you can count on from the bank where no branches equals great rates. i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn.

an update on the story we've been following all afternoon. u.s. military officials confirmed that two dive teams and navy aircraft will join the search for bodies and debris from airasia 8501. indonesia authorities say at least six bodies have already been spotted along with debris from the jet liner that vanished this weekend with 162 people on board. searchers also spotted suitcases, life vest emergency exit door and debris. the discovery was made in the java sea some 60 miles from where the plane disappeared during stormy weather.

images of bodies being broadcast prompted families to break down in tears. the key item investigators are trying to find is the tail section of the fusel lodge where the flight data recorder could be found and where they may find out exactly what was happening on board. that's owl that's all for "now." "the ed show" is next. good evening americans, welcome to "the ed show." live from detroit lakes, minnesota. let's get to work! ♪ ♪ >> the obama economy is a disaster. >> there is no doubt that we can enter into the new year with renewed confidence. >> the failure of the obama economy. >> america is making significant strides where it counts. >> gas prices at the lowest level in more than four years.

>> in the obama economy where are the jobs. >> a trend of strong job growth is putting america on track. >> in the obama economy. >> the dow now officially topping 18,000. >> it's the obama economy now and we're not going to let people forget it. good to have you with us tonight folks. thanks for watching. don't you just