eyes a graphic testimony in a hearing detailing how jerry san dusky and the child he allegedly sexually assaulted both lked up and saw mcqueary. he said it was while the assault was happening and he tried to stop san dusky and today he explains how he tried. developing news. executives atd fannie mae and freddie mac. they misled the government and taxpayers during the housing bust. dynamic duo. the line of defense against newt gingrich in a cue southern state may depend on a governor. this will moment be the moment for ron paul's popularity days before the caucuses. >> i think this wild goal to have another war in the name of defense is the dangerous thing. >> he was making millions of dollars in the nfl and in an hour, chicago bears player sam will face charges that he was

one of the top drug dealers in the city. >> moving up the release date to the delight of fans. . >> hi, everyone. i'm tamron hall and we are following developing news. a dramatic hearing in the case of alleged sex abuse at state resumed after a brief recess. but it is the graphic and disturbing testimony from assistant coach mike mcqueary that burned into the minds of everyone that heard it. he took the stand to describe the incident that he said he saw former penn state coach jerry sandusky sexually assaulting a young boy in the team's locker room. mcqueary said he saw sandusky standing behind the child with his hands around the child's

waist. the boy according to mcqueary appeared to be 10 or 12 years old and not 100% sure if it was intercourse, but the way they were positioned was very sexual in nature. mcqueary said he reported what he saw without giving details, but he did not go to police. a written statement is expected to be read in the courtroom later this afternoon. michelle franzen joins me from harrisburg, pennsylvania. we know in the past, he sent a note to his friends in an e-mail saying he tried to stop this alleged assault in court. he explained the way he tried to stop it was by slamming a locker. >> yeah, well he said that he made contact and tried to make eye contact with them about three different times. he told prosecutors that he was certain that both san dusky and the boy he said was in the shower room at the time saw him and separated at that time.

he said he was so distraught he was in shock. he walked out of the locker room and immediately turned to his father for advice going to his home and his father told him he needed to get in touch that head football coach joe paterno and they told prosecutors that he did relay to paterno as well as tim curley as well as gary schultz the severity of what he saw that day. they are here today saying that he did not go into that detail about the seriousness of what he saw in 2 thousand 2. the court session will focus on written testimony from curley and also from schultz that stems from the report and were expected to have a statement read, provided by joe paterno. we are unable to be there and

it's not certain whether or not he was called here and certainly a statement will be read in court. in the meantime, mcqueary's account from that grand jury report is being contradicted by some other grand jury testimony. a family friend who said on the night of that alleged abuse he was also there with mcqueary and his father and mcqueary told him he 4 only heard noises coming from the shower and he didn't witness anything. they did not call that witness here and the defense attorneys did not have the chance to cross examine mcqueary regarding that. they tried, but the prosecution objected to that. tamron. >> thank you very much, michelle. joining me now is say former prosecutor and candidate and thank you again for joining us. >> thank you. . >> let me get reaction from mcqueary's testimony and some of the things i can say here on television that are not too graphic. you did not call the police. he said i did not.

why would you not report the sandusky incident. he said it was a delicate matter. he talks about how he went to his home and sat at the kitchen table and said i saw jer we a young boy and it was sexual and i needed to tell him about it. what do you make of what we heard from him today? >> i think his testimony is consistent with the grand jury testimony consistent with the police report released by prosecutors. he is saying and his reaction goes to his credibility. what he saw in the shower was extremely sexual in nature and disturbed him to the point where he left and had to go and speak to his father about the allegations. all that goes to his credibility as to whether he saw what he said he saw in the shower. >> part of the testimony was when they asked did you use the room sodomy with the coach? he said no. he was asked why and out of respect for the coach, does that get him off the hook in any way

here? >> i don't think so to be honest with you. they are two adults. what he said was that it was extremely sexual in nature and it was wrong. it was a crime. judging by the coach's reaction that he was saddened and he was upset and he slumped in his chair, it sounds like he understood that it was a serious sexual act committed against a young boy. despite the fact that mcqueary didn't use the actual term sodomy or able intercourse doesn't mean a lot. when you describe everything surrounding it and describe everything that you saw in his reaction to it, it was perfectly clear that something terribly wrong was going on in the shower and it was an extremely sexual act and inappropriate and a crime against a young child. >> what is the point of this hearing? we know that curley is the focus of some of the things you pointed out and some of the things he told the grand jury. there were people in the

courtroom and we can hear the testimony directly from him and not in a grand jury setting. what does this mean for the two penn state administrators now fired? >> i think the testimony today was damaging to the administrators. it was helpful to the prosecution. the prosecution has to prove a case that a crime was committed and most likely curley and schultz committed it. the prosecution needs to show with two independent witnesses that they lied before the grand jury. mike mcqueary's testimony said i told them it was sexual in nature and describing the closeness and the hands around the waist and the young boy's hands up against the wall and the slapping sounds and he was almost 100% sure that a sexual act was being committed and intercourse was being committed and that's damaging to the

defense case. all the prosecution has to show is that both defendants made a statement and their statement was a lie before the grand jury or before a prosecuting agency. >> thank you for joining us yet again. another developing story right now. the house of representatives voted to approve a bipartisan deal that averts a government shut down that would have happened after midnight. the measure now goes to the senate where it could be voted on later today. meantime harry reid and minority leader mitch connell said they are making progress on a deal to extend the tax cut. also extend long-term unemployment benefits. a deal is "very, very close." nbc news correspondent kelly o'donnell said we still have republicans talking about the keystone pipeline. >> that's the word of the day.

keystone pipeline. republicans both in the house and the senate are insisting that some provisions related to the construction of this canada to the gulf coast oil pipeline be included in the package that would provide for those extra unemployment benefits and the payroll extension for the next year. their reasoning is that that would create jobs and there is bipartisan support for keystone. it's a way of getting leverage. they would like to see that included. it does not want to deal with this. the president said he would veto anything that had that in it. we had one problem solved and bipartisan support and a new one cropped up. this one does not have the same urgency today because they have a little more time to resolve the issue with the extensions for unemployment and the tax cut. they want to wrap up the legislative business and get home for the holidays. what we know is it is expected that the house would go home for

the weekend. they finished their piece of it and will wait for the senate to make some kind of progress on this deal. they will come back and vote on it. >> what about the idea that you do a two-month extension to deal with it next year. >> the air has come out of that balloon. last night that was offered as a way to get something done quickly and have just enough of a buffer. that seems to have fallen apart as the day has gone on. the top negotiators who are working on this deal have kind of given us indications that they are looking for a full year extension and we should know by the end of the day if republicans and democrats can getting to o this and it's just the that is left to be done. >> thank you, kelly. also developing news, the former ceos and fannie mae and freddie mac are two of the highest ranking figures to face charges in the wake of the housing bust that helped cripple our economy.

the securities and exchange commission against them and four top executives at the troubled government-controlled firms. all six of accused of misleading the government and taxpayers. joining us live, the sec said they misled the government and taxpayers in what way? >> they are saying what they said was on the books. according to the lawsuit and i want to make sure we get it correct. the lawsuit said that fannie mae told investor that is it had roughly $4.8 billion worthwhile of subprime loans on the books. that would be about 2/10 of 1% of the total portfolio. the sec said that was wrong and allege that fanny actually had about $43 billion worth of subprime products on the books which would be 11% of the total holdings. that's the nugget and the heard

of the sec's charges. everyone involved in this case denied that and as a matter of fact mr. mud said that every piece of material and data about loans held by fannie mae was known to the united states government and the investing public. they are denying culpability in this and certainly as you mentioned, these are top officials and the subprime crisis continues to ripple through the economy and this story will have a lot of legs. we will be hearing about this for sometime. we will get you the details.

a key endorsement for mitt romney after he and newt gingrich play nice. plus ron paul's comment on iran. many are asking if it has hurt him. the arizona sheriff fires back after a scathing report on his law enforcement tactics when it comes to illegal immigrants. join the conversation online and find our twitter page at "news nation." ♪ [ male announcer ] it's easy to see what subaru owners care about. ♪ that's why we created the share the love event. get a great deal on a new subaru and 250 dollars goes to your choice of five charities. ♪ with your help, we can reach 20 million dollars by the end of this, our fourth year. [ female announcer ] get 0 percent apr financing on select models for thirty-six months and we'll donate two-hundred and fifty dollars to your choice of five charities. now through january 3rd. try bayer advanced aspirin. it's not the bayer aspirin you know.

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mitt romney is picking up a major endorsement in a key state. he was her pick after talking with every single candidate besides ron paul. governor haley considered a rising star in the party and said romney knows how to turn failing companies around and

could do the same for the country. romney is the best choice in her opinion to be president. >> governor romney is the one candidate that president obama consistently tries to hit and get out of the way. that lets me know he is scared of him and lets me know governor romney has a good fight in him and that's the one president obama doesn't want to go against. >> do you buy anything nicky haley just said? >> it's a good get for romney, i guess down in south carolina. the problem that romney continues to have though is he stuck in this 20 to 25% range in all the polls. it's because the anti-establishment wing of the party is not bought into him. having the sitting governor who -- >> with her own problems, i

should point out. her record is not perfect. >> i'm not sure that is going to get him over the hump in a state like his juice. >> south carolina, gingrich is 42% and mitt romney is to your point hanging in that 23% range at least in that state. he is planning to go to south carolina and do campaigning. i want to bring you in before we have the developing news regarding the sec and civil fraud changes against freddie mac and fannie mae. hith newt gingrich on the association with the agencies you know a lot of them like to target. they lie to taxpayers and the government. when you say the two names, freddie and fanny, newt name follows at least these days. does this continue to get him in hot water. >> almost certainly.

if you saw in the debate he was trying to draw a distinction between lobbying and consulting and being a historian and bachman was relentless and you could hear in the crowd the response that conservatives were not buying it. it seems to be one of the greatest weaknesses and he didn't have an answer for it. you would think knowing this was one of the greatest vulner abilities and one that got off the topic faster. that's something he is going to have to work on. >> when we hear time and time again when he is hit hard, she known to come back with quippy or punchy moments that get the heat off and to your point, he didn't do that last night. let me bring you in politico that had the headlines and the candidates are slumping forward. we have days left and the holiday mixed in the middle. they are trying to flop across the finish line. >> they are trying to get across the finish line and not have anyone's candidacy implode.

when you talk about the importance of south carolina, we have several weeks before we actually get to south carolina and in terms of newt gingrich land, that is a time. anything can happen between now and iowa and south carolina. quite frankly i would imagine for the romney camp. because the numbers are low, he has stayed. he has been flat. i would imagine they will use this time to take a keep breath and wait and see if the campaign or anyone else implodes between now and iowa. >> let me bring up the money being spent. they put together ads in iowa. perry spent 1.3 million and supporters have spent several more million in the pro perry aads. mitt romney 500,000 and newt gingrich 200,000. i want to talk about ron paul. the supporters are passionate. when you criticize him, his

supporters will go on twitter and facebook and let you have it. i want to talk about the debate moment. some say this will curb the enthusiasm if you will for paul. let's play it. >> you and i really fear about what's happening here. it's another iraq coming. war propaganda going on. we are arguing the greatest danger that we will have a president that will overreact and we will soon bomb iran. >> congresswoman bachman launched in on newt gingrich. does this hurt paul? >> conventional wisdom said yes. >> he got applause and that was an iowa audience. >> exactly. in iowa in particular, the republican side has not been as hawkish.

>> i'm not sure it's as unpopular as you think it would be. >> i believe it was andrea mitchell who made the comment who were better suited to domestic issues. talking about the home front. he can put himself in a trick bag weather people agree or not. it brought in fire last night. i am curious about mitt romney. he continues with the appeasement line and regarding the president and trying to portray and the suddenlying of the mideast. instantly you had david axel rod send out a tweet as the words were coming out saying tell that or when you say appeasement, think about bin laden. why go down that road. it's like hitting a brick wall. >> no, and that's a great question. when you are running against the incumbent, you want to go after

their perceived weakness and not the strength. one area where the president is strong in all the polls is foreign policy. romney is just not adding any credibility. it's part of the problem that romney had all along. when you are stuck at 20 to 23% in the polls and all do is sit back and hope and watch while all of your opponents implode, at some point they are not going to. instead of playing the front-runner strategy, he ought to speak to the rest of the republican electorate that is not supporting him. that is not supporting him and trying to give them a reason to give him a second look. >> i want to get michelle in real quick. last word here. was it a mistake for romney to not go in swinging. if you will, for a lack of a better description doing trash talking all week. he did seven different interviews going after newt

gingrich and it was like a balloon seeping out of the room. >> it was. the debate i hate to say it, but after coming off of last saturday, it was boring. we began to see a little bit of juice and fire. it was individual on the stage and didn't get any good jabs? . you have to think that some of the climb and the numbers we saw for newt gingrich were because he is such a good debater and puts a little bit of fire out there and i think that part of the electorate is in the belly of mitt romney. >> we didn't see a lot of fire for newt and that may have balanced him out. have a great weekend, michelle. thank you. protest against the governor of florida after he calls for the resignation of florida a&m university over a hazing incident that allegedly happened

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>> the nfl player accused of doubling as a drug lord. an unbelievable story who made millions on the field and millions in the drug world. the teachers told him not to do the tebow. did the school overreact? when you have tough pain, do you want fast relief?

try bayer advanced aspirin. it has microparticles so it enters the bloodstream fast and rushes relief to the site of your tough pain. it's proven to relieve pain twice as fast as before. bayer advanced aspirin. big news where for the first time we are hearing testimony from former penn state coach joe paterno and what he knew about the sex abuse happening or allegedly happening involving jerry sandusky. michelle, as i understand it this is the testimony that paterno gave to the grand jury and for the first time it's read

out and we are hearing more detail and what he said to the grand jury. >> that's right. joe paterno is suffering from health problems and he is not here in court. we are not certain whether he was asked to come here, but they read a statement from the grand jury report and this was an interview done in january of 2011. this is where that took place. joe patermo being asked if he was contacted by then assistant mike mcqueary about what he witnessed in the shower in 2002. mcqueary said he 4 gone to paterno saying he had seen jerry sandusky with a boy in the shower. in paterno's words, he said in the deposition he was told that there was a older mature man in the shower and mcqueary mentioned that he thought

sandusky was fondling that boy. when asked about what actions paterno took he said that he referred this information to his athletic director at the time. that was tim curley. curley of course is facing perjury charges here for possibly lying to the grand jury about what mcqueary told him. paterno in this statement saying he informed curren dee well what mcqueary told him, but he didn't go to police either. we are hearing in detail about what paterno knew at the time and that is centering around the hearing and what did penn state officials know? two of them, curley as well as gary schultz. testimony here and riveting and graphic detail and 0 disturbing. >> due to the fact that a lot of people are sending out the tweet that according to what's being read in court, paterno said he knew sandusky had done something

inappropriate with the child. is that a part of what we heard today? >> i think what's being read is paterno said he was made aware that mcqueary had said he had witnessed something inappropriate. he told mcqueary he would tell the appropriate people and the right people i believe is what was read in court. according to the deposition and he indeed told the court in that grand jury report he did tell tim curley at the time that mcqueary witnessed something that he felt was inappropriate. >> thank you very much. i know this is all happening in court and we are trying to get the information as it is being made available and again the details are so graphic from mike mcqueary and interesting information on what he told the grand jury. more breaking news out of iraq. a terror detainee that killed five american soldiers in 2007 will not face a u.s. military

trial. nbc's jim miklaszewski joins me now from the pentagon. this person has been turned over to the iraqi official or government? >> that's right, tamron and this is not the way the white house and the pentagon and the military wanted this to go. the u.s. was in very intense negotiations with the iraqi that on the departure of all american troops that they would take this suspect who is a shiite militant and lebanese-born and believed to be a member of hezbollah and operating under orders from iran when he allegedly took part or planned the raid in january of 2007 that killed five american soldiers. the white house put out a statement a short time ago that they had hoped to bring him back to the u.s. and put him before a military commission and in the end the negotiations broke down and they had to turn him over to iraqi authorities. the iraqis say they will put

duke on trial. officials told me it's not believed they would try him for the killings, but simply try him for entering the country of iraq illegally and they suspect in very short order he would be released if not handed over to the iraqis. somewhat of a major defeat for the u.s. even as the american troops are withdrawing. >> thank you very much. also in about 30 minutes, chicago bears wide receiver sam herd is expected at a bond hearing on drug experience charges. the player had a multimillion-dollar contract for what he did on the field, but his alleged job off the field has the nfl on pins and needles. she accused in a drug scandal and police are looking into whether he supplied other players with drugs. nbc's kevin tibbles is live in chicago. obviously kevin the chicago bears are beloved in the town

and they're worried about where it could go. what do we know about the investigation? he is a wide receiver last night in federal custody and about to go in to see if he will be released on some form of bond. his lawyer said he is saying he is not guilty in this case. >> sam is ready to fight the case and we will take it step at a time day by day. >> these are very, very serious allegations of course. drug charges are serious allegations in any case. what i think is most interesting or startling about all of this is the scale or the scope of drugs being discussed here. i am reading from the affidavit and alleging that he met with under cover officials in a chicago area resident and inquiring about purchasing as much as to ten kilograms of

cocaine every single week. along with that as much as 1,000 pounds of marijuana. this is a fellow who is already making about two million a year playing professional football. this is what you can get at street level and talking about buying to ten kilograms of that. we were talking about a lot of drugs that he said that he could distribute in the chicago area. as a matter of fact when this meeting was allegedly set up with the under cover agent, it was discussed that he already had suppliers and that those suppliers simply could not supply him with enough material to move on this e the streets of chicago. a big case obviously here in the home of chicago bears.

many people are absolutely flabbergasted by the accusations. the bears of course are saying that they are shocked. the team coach said he had no idea that any of this was going on and that herd remains a member of the club up until this time. there also reports that are coming up from local media here that herd may have been supplying other players and that there is a list of potential players in the nfl that herd may have been selling the drugs to. >> kevin tibbles live for us in chicago. award winning and controversial writer is being remembered and that tops the look. christopher hitchens died after a long battle with cancer. he took on revered political figures in his essays. he publicly scoffed that his terminal diagnosis would change his beliefs of religion. she was just 62.

>> president obama is standing by the decision to award the medal of honor to dakota myer whose level of heroism is questioned by some. they reported that myer probably deserved the medal and said portions of the citations were untrue or exaggerated. the man who calls himself america's toughest sheriff is firing back at a report accusing him of racial profiling. the justice department is making him the whipping boy for a national and international problem. federal officials accused him of discriminating against latinos and the crack down against illegal immigration. students at florida a&m university are suspending the university president. rick scott is calling for the suspension following the death of a marching band member last night. they gathered in protest. a drum major died in a hazing incident following a football game and another member was beaten so severely her thigh was

broken and she is planning to sue the university. mark potter joins me from miami. they're standing with the university president. these are very serious and damaging to the university. >> they are concerned that the governor may have overstepped his bounds by recommending the suspension of the president while the investigation is under way. the governor is not saying he knows the president did anything wrong and thought it would be a good sign for the school to step aside while the investigation is under way. the students say that should be left up to the board of trustees which will be meeting on monday to consider the governor's recommendation despite the fact that he went to the house to complain. government nor is standing by the recommendation. as for the investigation itself, they are trying to answer three questions. first of all, what happened in the two incidents you were talking about. two separate incidents in which one band member died and another

was hospitalized with a broken leg. two, is there a long standing culture of hazing at the university? number three and perhaps just as important, did school officials know about it and what did they know and did they try to stop it or cover it up? are there irregularities involved? all of those are questions right now being investigated. it is being led by the state and the florida department of law enforcement and the name for the state police here. there is an independent body picked by the university to look into the issue of hazing. that's being led by the former attorney general for the state of florida, robert butter worth who is well regarded in law enforcement in the state. another note, that band was supposed to play today at a commencement ceremony at the school. because of this investigation and because of these incidents, band activities have been suspended so that did not happen today. >> all right, mark, thank you very much for the latest out of

florida. coming up on a lighter and happier note, good news for britney spears. she may be tying the knot. coming up in scoop. there is a lot going on with things we thought you should know. mark mekler was arrested thursday at la guardia airport and charged with criminal possession of a weapon. he tried to check in with a flight with an automatic pistol and 19 rounds of ammunition. he has a permit to carry the gun in california, but that does not allow him to carry it in new york. he faces a court hearing january 12th. actress clair dans said president obama is a big fan of her show, homeland. >> he is in the opening credits. maybe that's why. >> if i were in the opening credsits of a show, i would have

to tune in. it's an amazing honor. >> if you thought you recognized the black dress the first lady wore in the portrait released yesterday, you are right. it is the same dress she wore at the world trade center memorial ceremony here in new york. the dress is by byron lars and absolutely beautiful. you can recycle and look good both times. those are the things we thought you should know. this is ridiculous. yeah, and it's got apps. nice. it's got vudu, twitter, facebook. no honey, not facebook. ♪ honey, you think my sweater's horrendous? cats don't skate. i think it kicks butt. [ male announcer ] get low prices on the gifts they love, like lg tvs with the latest technology. and get free shipping to your store or home. save money. live better. walmart.

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entertain editor from associated press. it's good to have you on. let's start off with the movies. >> it's a movie bonanza. sherlock holmes is in theaters. a follow-up to the film expected to bring in about $65 million this weekend. we have alvin and the chipmunks expected to bring in $35 million. it will be big at the box office. >> it's not a big movie, but they love it. okay, another for the daals this time. the girl with the dragon tattoo. the date is being moved up. why would they move it up and would it help sales? >> people were so anxious for the movie, they are giving a christmas or holiday gift. i saw the movie and last monday, our critic gave it 3 1/2 out of 4 stars. it's not for the whole family to see. >> it is not. not even for some adults. it's dark and difficult to watch.

let me ask you, this stralt gtes big. >> you see a lot of midnight releases for films that are highly anticipated and this is moved up to 7:00 p.m. on tuesday and the buzz is big. the swedish films were blockbusters and expecting the same for the american film. >> the u.s. ones will be more polished and still intriguing. the last thing on your list, brittany spears got what she wanted for christmas. >> she got what she wanted. she is engaged. her long time boyfriend jason confirmed to "access hollywood" and said that he popped the question. she put a message on her facebook said jason gave me something i wanted for a long, long time. good news for britney. >> good stuff, there. >> mission impossible. >> how come we said that.

then it opens wide on december 21st. >> good things going on. you have a great weekend. see you soon. for the latest entertainment news, logon or be a fan of the scoop coming up. a high school suspends several students after the school said they were tebowing nonstop in the hall ways. what they were doing is a safety hazard. it is gut check and you can join the "news nation." go on facebook at facebook.com/"news nation." ♪ it's nice to see you [ male announcer ] this is your moment. ♪ this is zales, the diamond store. take up to an extra 15 percent off storewide now through sunday. is the pain reliever orthopedic doctors recommend most for arthritis pain, think again. and take aleve. it's the one doctors recommend most for arthritis pain...

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. >> welcome back. another breaking news story we are following this hour. a judge stayed the sentence for former major league baseball r baseball star barry bones, a retired slugger just sentenced to 30 days of house arrests and two years of probation. the judge stayed that decision

pending appeal. bones of convicted of purposely trying to mislead afternoon investigation with steroid use. >> two high school students were suspended for organizing what you see in this video. a group of about 40 dropped to one knee in the hall way with their foreheads resting against their fists. it is now known at tebowing named after the quarterback. a devout christian strike this is pose as a display of his faith. they said it's a tribute to the denver broncos quarterback who they consider the role model. while they were kneeling, they were not praying or making a religious statement. the district superintendent said the tribute posed a safety hazard by blocking other students from getting to their class and the lockers and whatever they need to do. it's a safety hazard you are seeing. the organizers got in school

suspension as a result of this one. what does your gut tell you. do you believe them when you say the tebowing was a safety hazard in the hall ways? take a look at what they are saying about yesterday's gut check. should pilots be allowed to use ipads in the cockpit as an faa rules allowed it during the take off. 59% of you say no. that's the closest we have had in a while. find out the twitter page at "news nation." enjoy your weekend and see you monday. you can catch us every weekday at 2:00 p.m. eastern on msnbc. martin bashir is up next. [ male announcer ] all over the world,

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>> good afternoon, it's friday, december 16th and here's what's happening. just win. >> i'm ready for the next level.

i hope i am the tim tebow of the iowa caucuses. >> a hail marey and this is newt's to lose. >> they ought to have facts before they make wild allegations. >> not every business succeeds. >> now it's down to prayer. we begin with newt gingrich getting the front-runner treatment and struggling to prove his electability at last night's final republican debate before the iowa caucuses. with just 18 days to go, the former speaker faced challenges over his highly paid influence pedalling for freddie mac, his antiabortion stance and his pension for zany ideas. mitt didn't use that word, not