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story of the usda official who was forced to resign for her racially-charged comments. vod vod -- shirley sherrod defending herself today saying her remarks were taken way out of context. she is also now claiming that the white house was behind the move to ax her from her bogs at the department of agriculture. shirley will be here live in a few moments to tell her side of the story. but first the controversial video that started all of this. [unintelligible] megyn: james rosen is live in washington with this unfolding story. why is shirley so very upset with the white house? >> reporter: abdel basaet al-megrahi this story is breaking and unfolding and we'll learn more from our interview with shirley sherrod minutes from now. her resignation according to miss sherrod was because of sustained and overwhelming pressure from the house. she said today, she felt quote harassed by the deputy undersecretary of agriculture who called her three times on the telephone as she was on a long drive back to the office yesterday. in the third of those telephone calls they directed her to pull over her car and resign her position immediately, which she says she did. she says further that fox news and the tea parties are scaring the obama administration and she sites as evidence of that assertion a statement that the superior made to her yesterday in the phone calls to the effect that the reason the white house wanted to resign immediately is because, quote, you're going to be on glen beck tonight. she says she was never given a chance to state her side of the matter. the remarks were with a white farmer 24 years ago she claim to see beyond race, a claim of which offers some substantiation. in accepting her resignation last night tom vilsack may also have had his eye on this part of the tape in which shirley sherrod made remarks that could show contempt for the institution that employed her yesterday, the federal government. >> i didn't want to have anything to do with agriculture. she was right, there are jobs at usda and many times there are no people of color to fill those jobs because we shy away from agriculture. we here the word agriculture and think of working in the fields. you heard of anybody in the federal government losing their jobs? that's all i need to say, okay. >> reporter: we have heard about someone in the federal government losing their job today, shirley sherrod herself. fox news has reached out to the widow of the gentleman believed to be the white farmer in this episode from 24 years ago, eloise spooner who says miss sherrod helped her late husband stave off foreclosure in his farm, they considered her a friend and they had no business firing her. megyn: just to clarify this mrs. spooner has come out and said her husband is not dead, he is 87 years old. there have been conflicting press reports. mr. spoon eris alive and well 87 years old and out on the farm so his wife is doing some of the press today. >> reporter: my apologies, thank you. megyn: you bet. as james mentioned and we mentioned shirley sherrod will join me live in a few moments right now. she is a cushion the white house of harassing her, forcing her into resigning saying that the administration and the naacp have effectively thrown her under the bus without bothering to check their facts. you don't want to miss any of this interview. it is coming up in less than 20 minutes from right now. another fox news alert. we are awaiting right now a joint news conference with president obama and british prime minister david cameron. cameron making his first visit to the white house since taking office and the two leaders have much to discuss, including the release of this man, lockerbie bomber abdel basaet al-megrahi. accusations that the brits made a deal to release this guy from jail just so that british petroleum could land a very big oil deal with libya. we are going to have that part of this story covered for you in our 2:00 p.m. hour. my next guest says there was another very big story at the white house today. stu varney is here live. what is that. >> reporter: the story is there is a huge economic policy clash between britain and the united states. this is not a cozy, friendly relationship at this point. this is not margaret thatcher running the world with ronald reagan 25 years ago. the policy dispute is this, the british are vigorously cutting their spending. president obama doesn't like it. he thinks that will interfere with growth in the global economy. now the brits are doing something which no one expected, least of all me, they are cutting 25% from the budget of every single government department over the next four years, a cut, a flat out, absolute cut, of 25%. america is going inexactly the opposite direction. america is spending money, witness today the likely vote in favor of extending unemployment benefits. and over the next ten years we will be spending an extra half of what we are spending already, a gain of 53%. so there is a real economic clash going along here which is bubbly away beneath the surface. megyn: stu given the troubles that we've seen in europe, in greece and spain and elsewhere with respect to their bulge et. cetera and the austerity measures that have had to be passed there and given our own problems here in this country with respect to our deficit and doubt how can we have a meeting in which president obama sits down with the british prime minister and says you need to spend more and you need to be more like us, like it doesn't make us look good when you do this and we don't think it's going to help the global economy, does that full on deaf years. >> reporter: yes it does. that's exactly what president obama said to the world leaders in toronto ten days ago. please keep spending, don't quit spending now. totally fell on deaf ears. they will stop spending, they will cut their spending. we in america are going it alone. megyn: do you think our president can convince -- the prime minister can have our president follow britain. >> reporter: no. the brits believe president obama has turned anti-british. it's not just the bp affair although that is a real cause for concern between the two nations. the british feel president obama is anti-british because -- megyn: because of you. >> reporter: one of the first things that he did when he came to the white house in january a year ago was he sent back a bust of winston churchill, he sent it back, cleared it out of the white house, sent it back to tony blair who had given it to him. this is a story that is true, accurate. megyn: is that right? >> reporter: yes and it's doing the rounds a lot now because of the bp situation, the lockerbie bomber and the whole relationship between britain and america. megyn: maybe cameron will show up with it in tow and say, somehow this was sent back, it was a mistake, here we go again. >> reporter: unlikely. megyn: this sets the stage for what is going to happen in an hour from now. in less than an hour the prime minister calm ran and president obama will take to the podiums at the white house. this is extraordinary, thinks our number one ally in the world and there are tensions afoot for the reasons stu mentioned and the reasons we mentioned because of the lockerbie bomber. we will cover that right here on "america live." in massachusetts, you're not going to believe this, the legislature there is getting ready to ditch theee electric tral college system, sort of. this is part of a larger movement that is already taking place across several states, and is apparently who catching fire. it could impact in a very real way who gets elected as president in 2012. radio talk show host michael reagan joins us after this break to explain this important thaeupbg and how far this thing could spread. a firsthand look at documents, we are talking documents, it is in writing, that show a group of left-wing reporters trying to kill stories about reverend jeremiah wright during the 2008 race because they didn't think it would help then senator obama's chances at election. you are not going to believe it when you get a look at these words. three people missing today after going on the ultimate search for a lost gold mine, said to be worth millions. we'll get an update on the search and what it is exactly they were looking to find. >> they didn't tell someone exactly what trail they were going to be on, where they were going, when they were going to come back. it was pretty much like looking for a needle in a haystack. patient: and that's why yellow makes me sad. i think. sarge: that's interesting. you know what makes me sad? you do! maybe we should chug on over to mambie pambie land where maybe we can find some self-confidence for you. ya jackwagon! tissue? crybaby. geico. fifteen minutes could save you fifteen percent or more. megyn: fox news alert new developments unfolding on a mexican car bombing that killed three people including a federal police officer. a u.s. official is now saying the drug gang to set up the attack used an explosive that gangs have stolen from private companies in the past. it is powerful and commonly used in mining. mexican authorities say attackers lured police and paramedics to the scene miles from the u.s. border. calling in a false report of an officer shot. it is believed this attack was in retaliation for the arrest of a top ca cartel leader. there is potentially big news out of massachusetts. lawmakers there may approve a measure to bypass theee electorial college system in the upcoming presidential elections. knife other states are already on board with this plan. so what exactly does this mean for the 2012 presidential election and beyond? michael reagan is a syndicated radio host with reagan.com and chairman of the reagan group. hi michael. >> reporter: how you doing. megyn: i'm great. thank you for being here. theee electorial college boggles the minds of both votes. you don't vote directly for the presidential candidate when you go to vote, you vote foree electric tores. it depends how many members of the house of representatives you have, to boil it down. this would change it. it's basically the majority vote is going to dictate who become the president. the people behind this movement say for example in the 2000 election al gore would have become our president instead of george bush. and the downside to this is what? >> reporter: the downside is that all the states then won't be represented in elect being the president of the united states of america. my father if he were alive and you were talking to him he would say, well there they go again. what is going on with 2012 there is a great worry in the obama administration on the left that barack obama is going to be a one-term president. how do you solidify that he can be more than one term. you change the electoral college. you lockup a new york, a los angeles, a massachusetts, a chicago, whatever it might be the liberal states the ones that all vote democrats they are the big populous states. and then nebraska has no voice, iowa has no voice, the whole center part of the country that does not agree with what is going on in washington at all would basically not have a voice in the election of 2012. and this is where they want to go with this and it really needs to be stopped now. megyn: their response seems to be be that states like new york and california right now are largely ignored in the presidential elections because there is an assumption that new york is going to go democrat, california probably democrat, texas is going to go republican and so on and they say this will get the candidates, you know, more into these states so it's not all about ohio and pennsylvania, they'll have to go to the states that are the most populated. >> reporter: listen they are not going to wyoming and money tan a. they are going to new york, they are going to california, they are going to texas, they are going to illinois, why because of the electorial college and votes that are in fact there. the fact of the matter is they are not showing up in the smaller states. they don't go to utah, nebraska *rbgs iowa they say in those -- iowa, they stay in those states. at least those states have a voice when it comes election time. if they are having a problem with it find better candidates. ronald tkpwaeug and won new york, illinois, california, so find better candidates that can in fact speak across party lines, bring people together and get elected to the presidency of the united states. once you get elected stay the course don't go off course like happened in eight years of the bush presidency. megyn: it's this group called the national popular vote that is behind it. five more states -- five states have already joined, hawaii, illinois, maryland, new jersey and washington. massachusetts could be the 6th. they are looking at it in california, colorado, rhode island and vermont. the thought is if you get enough states if you get states that have a total of 271 electorial votes and they sign onto the compact and that will be our electors will cass their ballots for whoever wins the national majority vote. essentially the way it would work is eleven states could ban together and elect the president, eleven states. >> reporter: if you really think about it look at 1984. walter mondale won minnesota. but under that program minnesota wouldn't have had a voice because all the electorial votes would have gone to ronald reagan. they end uptaking away the voice of all the other states, massachusetts, for example. megyn: is this a democratic thing versus a republican. are the people behind in national popular vote democrats that want to change the system. they keep referring back to 2000 what happened between bush and gore. >> reporter: would i imagine they are the left side of the spectrum, certainly not the right side of the spectrum who want to stay with the constitution the way it is set up and working. they like the way it works. we like the way it works. it's the left that isn't happy and they are trying to do whatever they can to solidify the power base in washington d.c. and if it takes changing the electorial college that's what they are going to do. people need not to pay attention to it. understand right now you have a voice. under this program you'll lose it. megyn: wow, again the states that are considering it right now, california, colorado, massachusetts, rhode island and vermont, also new york apparently, and who knows where this could go. can you imagine how this could change presidential politics? michael reagan you're a person who knows one or two things that those. love the imitation of your dad. >> reporter: thank you. megyn: 15 minutes from new details on a serious allegation taking shape today. shirley sherrod a u.s. d. a. official forced to resign after controversial comments and now she is saying that her words at an naacp event were taken out of context. we are hope to hear her side of the story in just moments. plus, lindsay lohan in the slammer. a brief hearing for the tabloid star the judge saying no house arrest, and no work release, no, go to jail. but just how much time will she actually serve? and there is a new way to get fox news wherever you are, get the brand-new fox news android app to receive breaking news alerts. you can read the top stories and stream videos from your favorite shows. go to foxnews.com and click on the science-technology link for everything you need. i amrachel. i was given a bounce dryer bar and asked to try it out and then answer a few questions. the biggest thing was that it's effortless. you stick it and forget it. by not putting in the dryer sheet, it's one less thing that i have to do. becau new chips ahoy made with reese's peanut butter cups are here. our real chocolate chips... and reese's peanut butter cups... crammed into one exciting new cookie. so now, more than ever, there's a lotta joy in chips ahoy! megyn: a disturbing story out of bakersfield, california. a manhunt is underway for a family who fled the country leaving behind their four-year-old adopted son and his dead adopted sister. police finding that young boy alone at the home near the body of the girl. now the police are worried that this couple may be long gone traveling with their three biological children somewhere in mexico. trace gallagher live in our west coast newsroom, trace this continue be any more bizarre or disturbing. >> reporter: or behalf fling -- pw-flg. a woman named carla garcia calls her sister in a panic, she tells her sister go to my house. the sister calls police. when police arrive at the house they find a 3-year-old girl dead and a 4-year-old boy sleeping. the parents, car lashes and the father alberto garcia, they are missing, along with three other children. now it turns out, as you said, the three-year-old who was killed, the 4-year-old boy are adopted. police believe the couple and family may be heading down from mexico, from bakersfield down to the mexican border is about 250 miles. there is an apb out for this family, apparently there were severe signs of trauma to the 3-year-old girl who was killed, so now they are worried about the safety of the other three kids. this by the way is the license plate that all of southern california and northern mexico are now looking out for. the natural father, by the way, was interviewed, he says he's got concerns because he says the stepfather, alberto garcia is a hot head. he said they had confrontations over money. he's concerned about what this guy might do to his ten-year-old son that he of course had with his first wife, who was the woman who is now on the run, 26-year-old carla garcia. the cops looking out for this, abdel basaet al-megrahi, as we find information to you we'll bring it to you right here. megyn: did they talk about motive here, trace? >> reporter: there is no motive. they are calling the death of the 3-year-old suspicious and they left the 4-year-old boy behind. he was sleeping, it looks like from what police are saying this happened in the dead of night. they just took off in the middle of the night. when they arrived at the house in the morning the boy was sleeping the girl was dead and they are just calling her death suspicious but with signs of severe trauma. megyn: and the little boy, he's okay. >> reporter: the boy is okay, the 4-year-old boy is okay. megyn: what a story. all right trace thank you. a half hour now to a white house news conference and a very big question. was the man who killed 290 people, including almost 200 americans released from jail so bp could land a big oil deal? >> it's disgusting that we were told that abdel basaet al-megrahi only had three months to live and was being let go for so-called compassionate reasons. a blood deal is a blood money deal, and we're going to hold people accountable. when i group, i want to fix up old houses. ♪ [ woman ] when i grow up, i want to take him on his first flight. i want to run a marathon. i'm going to work with kids. i'm going to own my own restaurant. when i grow up, i'm going to start a band. 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[ male nouncer ] fiber one chewy bars. you may be missing some of the protection you need. crest pro-health is the only leading toothpaste to protect against sensitivity and all these areas in a single, all-in-one toothpaste. new crest pro-health sensitive shield. senator lindsey graham was the sole republican to vote for elena kagan in committee. west virginia governor joe mansion says he will run for the u.s. senate seat held by robert byrd. he had his former aide hold the seat until the special election in november. people are not guilding new homes right now. construction plunging to the lowest level in october falling 5% in june. the commerce department blames the slumping job market and increasing foreclosures for forcing builders to cutback on new construction. and fox news alert, we are getting word that they are having a press conference outside of the jail where lindsay lohan has been taken into custody or admitted, and just wrapping up now, trying to get the headline for you to find out exactly what was said as lohan goes in to spend 90 days in jail for, yeah, okay trace gallagher has got the latest from our west coast bureau. that is what is all happening in los angeles. what do we know now. >> reporter: everybody saw this this morning, abdel basaet al-megrahi she was sentenced of course to 90 days in jail and she reported for that today. they say the l.a. county jail is overcrowded. so the nonviolent offenders are serving about 22, about a quarter of that sentence, so 22, 23 days. i just talked to legal experts a short time ago, they said that time could even be cut down even further because of overcrowding, that lindsay lohan could serve a couple of weeks, three weeks max in that detention center. it all of course stems from the two dui convictions back in 2007, one, of course, she was guilty of possession of cocaine along with that, and then she blew off a lot of her alcohol treatment classes, and the last straw was when she missed that pivotal court date in may because she was at the cannes film festival and said she couldn't find her passport. she arrived today in jeans in a black leather jacket. she walked into the court. the amazing thing about this, lindsay lohan, she could have served out a deal to serve her time at a different jail, a more plush jail, if you will but she would have had to pay for that, 75 or 125 bucks a day the deal with that is that she would not have gotten out early because those jails aren't overcrowding. the jail that she is going to, the lynwood correctional center, this is an all female jail, it's overcrowded. they don't have room for her, that is why lindsay lohan will probably be sprung in a few weeks then she goes right into rehab, abdel basaet al-megrahi. megyn: what happened in court today when she went in there? >> reporter: well she went in there and her attorney, by the way which was half the story, her attorney, which we thought was not her attorney any more, shaun holly chapman was her attorney again. remember robert shapiro was her attorney for a short time. megyn: she wanted to get off the case. >> reporter: she wanted off because she lindsay lohan was uncontrollable. robert shapiro made a quick appearance. but the judge said shapiro was never officially on and chapman took back over today. she went in, they went through the formalities. 90 days in jail, you go to rehab 24 hours after you get out you go. they didn't know when she was going to go to rehab because they don't know how long she is going to be in jail. megyn: she was hoping she would go to rehab in advance of the jail time and the judge would let her avoid the jail time or postpone the jail time, that didn't happen. >> reporter: then she had to do the whole 90 days. if you go to rehab right away it's the good and the bad. if you go to rehab right away then you do the whole thing, so you do the whole 90 days. this way she goes in for three weeks, 30 days of rehab, a little bit of community service and at least for the time being she could get out of this. megyn: you're out three weeks later. we'll be watching that. thank you, trace. now to stunning new documents that have surfaced concerning reverend jeremiah wright and the obama for president calm pine. claims that a big group of left-wing journal lises conspired to shape political coverage in 2008. joining us now with a transcript of these emails is neal patel. this is explosive. it all goes back to this thing called journalists. a forum that journalists have been going on and railing about whatever cause it is they want to rail about. we saw it ruin the career of dave weigel. he was supposed to be covering the conservative movement meantime he's on a journalist bashing conservatives, he got boot -d. you guys have gotten a hold of more explosive correspondence from this list. tell us. >> reporter: that's right abdel basaet al-megrahi it's a group of about 400 journalists, a lot of people representing quote unquote mainstream media institutions. when asked about the list the founder and other members said it was just an innocent discussion group. but we, talking about sports and all kinds of really nonincendiary topics. what we have found is discussions directly working to try to elect barack obama and doing so in the most sort of loathsome ways including when the jeremiah wright issue exploded on to the scene actively strategizing on how to kill that story. the story must be killed to protect obama, how do we kill it. the most even send dairy thing is let's pick fred pwarpbgs or karl rove it doesn't matter who it is and call him a racist. megyn: i want to show the viewers exactly what you discovered. it's spencer ackerman of the washington independence. i says it's not necessary to jump to wright's defense, what is necessary to raise the cost on the right of going after the left. instead take one of them, fred barnes, karl rove, who cares, and call them racists. ask why do they have such a deep-seated problem with a black politician, this makes them sputter with rage which in turn leads to overreaction and selfdestruction. so spencer hatches this plan and the other journal, list contributors say what, neal? >> reporter: to be fair to the groups a lot of them said we don't want to go with that. it was mostly on strategic grounds, that will backfire, that won't help obama enough. you had really i large groups sitting by while these discussions veered into just almost the bizarre. i mean there is nothing as harsh in america than the race card. there is no harsher accusation that you can throw on someone that they are a racist and that's the kind of discussions that they were having, again all designed to protect and help barack obama in the midst of his election campaign. megyn: is there any doubt in your mind that this group of left-wing so-called journal lises thought that one very real possibility that could work to the advantage of the president they wanted was to bash anybody on the right who would raise questions about jeremiah wright as a racist, that that would be a tactic that could really work for them? >> reporter: there is absolutely no doubt, it's up on our site on daily caller that a lot of them were saying that, were advocating that, not every single one of the 400 but we have quotes on there which are completely accurate where a bunch of them are saying that. megyn: who is in there, neal, is it all left wing columnists. >> reporter: yep. >> they identify themselves as opinion people. >> reporter: it's definitely a combination. there are i would say the most aggressive commentators are the so-called left wing columnists, but you have representatives of virtually every major media institution on the group represented, and involved in many of these discussions. you also have people who are out-and-out political activists, jarrod bernstein was listed in the piece we had today and there are others. there is a combination of lefties, academics and full on journalists. megyn: journalist is gone. maybe it's not a good idea to put these things down in writing. but the question is whether that continues to be the strategy of some to try to discredit legitimate news reports. >> reporter: you know, that is absolutely the question. journal list is gone. from reading the piece we had today it's hard to imagine, i don't know for a fact what discussions are still going on. these were intimate discussions by people working together pretty often and being unbelievably 0 open, shockingly open. the notion that no one is talking any more, that would be hard to believe in a world where stories do get ignored by a lot of the media. the acorn piece comes out and besides fox news and the web no one wanted to cover it for a longtime. we have seen evidence of what we published today of the exact type of behind the scenes strategizing that must or did go onto try to kill at least one story and probably goes onto try to kill a bunch much others. we see this carried out in the news when these things get ignored. megyn: we talked about the plan to denigrate those who cover the stories or those who comment on the stories, going after karl rove or fred barnes or as they say, who cares any one of them. there is part two of the strategy, which is just don't cover it. i want to give our viewers another example. this is from daler caller.com and what you're reporting. this is from kraeus haze of the nation. he writes all this hand wringing about just how awful and owed deus reverend white's remarks are keeps the hustle going. i'm not saying we should all rush en masse to defend wright. what i'm saying is that there is no earthy reason to use our various platforms to discuss what about wright we find objectionable. just stay away from it and don't fuel the fire on what they think will reflect poorly on their candidate. >> reporter: i think a reasonable read of this is that was actually both for the purpose and probably the effect of this group there were journalists on there from all sorts of quote unquote mainstream organizations. megyn: like that guy weigle of "the washington post." >> reporter: they have by the way not just in the opinion section but in the business section commenting on economic policies as a pretty straight guy running there their business section not labeled as a political activist. you can see it in that quote from the nation, the biggest effect was to push the other journalists to stay off certain stories or get on other stories. that seems to me to be what the real impact was. megyn: and the washington post just this weekend was called out by its own omsbudsman for not covering the new black panther case, they said lack of resources. they are not happy with them and they are ignoring that story. it's a fascinating read and it's at the daly caller.com. thank you for sharing the information with us. >> reporter: thanks, abdel basaet al-megrahi. megyn: potentially big news as president obama and prime minister david cameron take questions at the white house. at the top of this hour we are going to take you there live just as soon as this hance. we expect this one to be a newsmaker, folks. moments ago they made some news at the jail where lindsay lohan is now serving her sentence. the starlet set to serve 90 days in prison. she is probably not going to serve that much. in three myths we'll have those remarks for you and talk live with her father. he was there this morning. during the break you can go to foxnews.com catch up on whether or not she could take a walk before her three months are up. what you d at this morning's meeting? that was pure poetry. stop it. hello? you spotted a milli dollar accounting error that no one else noticed. that was pretty sweet. but you did have eight layers of sweet crunchy back up. what can i s? you're the man. or -- you know, the little dude. that's me. 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[ male announcer ] we all need people who will be there for us in life. people who say, "we're with you, no matter what." at wachovia and w fargo, e're with you, when a house turns into a home... ...when a passion becomes a career... ♪ ...when a relationship turns into a lifetime... and when all the hard work finally pays off. we're with you when you need someone to stand by you. wachovia, wells fargo, and you. together we'll go far. megrahi. megyn: fox news alert. lindsay lohan reporting to jail to serve her 90-day sentence stemming from a 2007 drug and we got a news conference from outside the jail. listen to that. >> at 10:11 miss lindsay lohan was booked into our facility some begin her sentence. she has been extremely cooperative and things are going smoothly. she is going through a triage which has to do with any inmate that comes into our custody. right now in terms of the length of time she'll do, we have the remand order and that is being reviewed, and we'll know more about that later today. megyn: michael lohan, lindsay's father was there an joins me there by joan. your take on what happened this morning. >> obviously, that appeal wasn't put in on time. i still hope it is. we are going to be working to hopefully put in an appeal on lindsay's behalf. it's heartbreaking to see lindsay in that position and my daughter ali is taking it in a hard way. i couldn't watch so i had to leave the room. i'm here for her. i'll go to the jail every day that she is there. hopefully she'll let me visit her. if not i'll write letters to her and be there for her. i want her to know i'm here and the people that love her are here to support her. megyn: you and lindsay are estranged. she said some unkind things about you to put it mildly. i hear the empathy in your voice for your daughter. but i think a lot of our viewers are looking at her behavior in court and thinking i don't feel sorry for her one bit. she has been given breaks time after time, more than the average citizen would have been given. she shows up in court after blog off the judge repeatedly with "f" you on her fingernails and maybe a stint in the jail is just what is needed. >> in most cases i would agree. but, don't forget, this is not a young woman who is in the right prime of mind. this is a girl on drugs. and heavy prescription medication. this was a person that was in the right state of mind but wasn't on drugs and act that way and defied the court and put this into their finger nails. they deserve everything they do, yes. everything the judge so ordered. but there were a lot of mistakes made. i don't believe she belongs in jail first. in jail she just goes through the process, she'll stay in the same prescription drugs she was on and go on and on. megyn: we are up against a hard break. if she were addicted to drugs and alcohol and that was her own private problem that would be one thing. but she got behind the wheel of a car. she endangered people's lives repeatedly and lied about it. there needs to be responsibility taken for that. >> i agree 100%. she was on probation. she didn't live up to that. she never drove after she was told not to drive after she had her license taken away. she so paid the lawyer for that. i'm not condoning anything that anyone does. megyn: we are up against a hard break. >> i don't think it's right for anyone. meg where gotta run, my apologies. structured settlement. the experts at imperial can convert your long-term payout into a lump sum of cash today. transform plain old ribs into these fall-off-the-bone honey bbq ribs. the secret's in the sauce, made with campbell's french onion soup. for these delicious ribs and dozens more sizzling summer recipes, visit campbellskitchen.com. it's hardermore my doto build bone densityge... with calcium and vitamin d alone. he recommends citracal plus bone density builder... the only calcium supplement with genistein found in nature in soy and proven to significantly build bone density. citracal. megyn: fox news alert. all eyes are on the white house where we expect president obama and the british prime minister david cameron to come out for a joint news conference. this will be the first time we have seen the two men at the white house together. there are a number of things we need to hear from them on. the austerity measures in britain have caused some consternation. what was bp's roll, british petroleum's role, in obtaining the release of the man convicted in the lockerbie bombing. the man convicted served only eight years of what was suppose to be a life sentence, then they released him pursuant to a deal with libya and the british government. what role did bp have in that, and what roll did the government have in that? three would-be for tune hunters go looking for the legendary lost dutchman gold mine in arizona. millions of dollars laying out there somewhere. now those three are missing. trace gallagher live in our west coast newsroom. what happened? >> reporter: let me give you the facts first. then i'll give you the legend. the deputies have been searching the super station mountains for three days. there is no sign of them. now they called off the search for a 48-year-old, 67-year-old, and 51-year-old malcolm meekes. they left july 6 to look for the lost dutchman gold mine. they were going to search during the day and use a hotel at night. the temperatures are 115 degrees and may have succumbed to that. >> the dogs picked up a few scents. we have flown the majority of these trails. helicopters are noisy. if someone was looking to be rescued i would think they would get out in the open. >> reporter: they have been searching for the lost dutchman gold mean. jacob walsh, he says he has a secret map to the site that has never been found. megyn: live to the white house where we are listening to the president and the british prime minister together at the white house for the first time. >> including the beers from our hometowns that we exchanged are best served warm or cold. my understanding that the prime minister enjoyed our 3-1-2 beer and we may send him some more. i thought the beer we got was excellent, but i did drink it cold. mr. prime minister, we can never say it enough. the united states and the united kingdom enjoy a special relationship, celebrate a common heritage, we cherish common values and we speak a common language most of the time. we honor the sacrifices of our brave men and women in uniform who served together, bled together, and even lay at rest together. above all, our alliance advances our common interest, whether it's prevent can the spread of nuclear weapons or securing vulnerable nuclear materials, thwarting terrorist attacks, or pro meeting economic growth and development when the united states and the united kingdom stand together our people and people around the world are more secure and more prosperous. in short the united states has no closer ally and stronger partner than great britain. i appreciate the opportunity to renew our relationship with my partner, prime minister cameron. in his campaign david was known for his extensive town hall discussions with voters. cameron direct. that, the same spirit behad here today. i appreciate david's steady leadership and pragmatic approach. justice is off to an energetic start at home. we had a brilliant start as partners who see eye to eye on virtually every challenge before us. great britain is one of our largest trading partners and we are committed to sustainable growth. i told david my administration cities working hard with the senate too november forward as soon as possible with our defense trade teethe with the u.k. which will be good for our workers and troops in both our countries. we reef affirmed our commitment to fiscal responsibility and reform. david is making difficult decisions and i set a goal of cutting our deficit in half by 2013. tomorrow i'll sign into law the greatest financial reforms since the great depression. together we are determined to make sure the financial catastrophy we're merging from never happens again. we discussed the middle east where both our governments are working to encourage israelies and palestinians to move to direct talks as soon as possible. we discussed the continuing threat posed by iran's nuclear program. the iranian government must fulfill its international obligations. the sanctions imposed by the u.n. security council, the united states and other countries are putting unpress dented pressure on the iranian government. i thanked david for great britain's efforts. we remain committed to a diplomatic solution, but iranian government must understand that the path of defines will only bring more pressure and isolation. finally, much of our discussion focused on afghanistan. and to the united states, great britain is the largest contributor of combat forces. this is not an easy fight. before it is a necessary one. terrorists trained in afghanistan and the tribal regions along the pakistani border have killed innocent civilians in both of our countries and a wider insurgency in afghanistan would mean an even larger safe haven for al qaeda and its affiliates to plan its next attacks and we are not going to let that happen. we are going to break the tall bans momentum, build afghan capacity so afghans can take responsibility for their future. we'll deepen regional cooperation including with pakistan. today's historic kabul conference is a major step forward. the afghan presented and its international partners endorsed concrete plans to endorse karzai's commitment for security, economic growth and delivery of basic services. the afghan government presented its peace and reconciliation plan which the united states firmly supports. agreement was reached where spent for security in afghan provinces will transition to afghan security forces. afghanistan and pakistan reached an hisser to particular agreement for people on both sides of the border. these are all important achievements. and they go a long way towards helping create the conditions needed for afghans to assume greater responsibility for their country. over the coming years afghans will begin to take the lead in security and? july of next year we'll begin to transfer some of our forces out of afghanistan. the kabul conference shows that the afghan -- that afghanistan has the support of the international community including the united states which will remain a long-term partner for the security and progress of the afghan people. as we go forward, we want to honor our fallen warriors with respect and gratitude that they deter of whether it's here sat dover or in the small british town where people line the streets in a some up tribute that represents the best of the british character. with pride in their service and determination to carry on their work for a safer world, i'm confident we can be worthy of their sacrifice and i'm confident with my partner and friend david cameron the special relationship between our countries will only grow stronger in the years to come. mr. prime minister. >> i thank you for welcoming me so warmly to the white house today. thank you for the meet, thank you for the lunch and also for the tour of part of your home. i was most impressed by how tidy your children's bedrooms were. and the president of the united states can get his children to tidy their bedrooms, it's about time the british prime minister did the same thing. they should be in bed by now, but if not they have noticed. i think we did have a valuable opportunity today to discuss in real depth a shared agenda on afghanistan, global economic recovery and the middle east. this relationship isn't just as you put it an extraordinary special relationship, to me it is also an absolutely essential relationship. if we are going too deliver the security and prosperity that our people need. and i thought again today in our discussions just how close live aligned our interests are on all of the issues that we discussed. first on afghanistan, there is a no clearer or tangible illustration of america and great bring stain standing together. we have british troops working to an american commander in helmand and american troops working to a british commander in kandahar. today president obama and i took knock progress this vital year. we reaffirmed tour commitment to the overall strategy. a key part of that is training the afghan army and police so our troops can come home. we discussed the need to invigorate the political strategy. insurgents must also be political settlements. if they give violence and cut themselves off from al qaeda. if they accept the basic tenets of the afghan cans institution -- last week the first afghan-led military operation took place successfully in helmand. today as barack just said, for the first time in decades the government of the afghanistan hosted an international conference on its own soil. 40 foreign ministers and 8 some delegations assembled in kabul to monitor progress and drive forward the international strategy. that's a real achieve -- and we should congratulate president karzai on it. we also discussed the economy. we are taking actions that our countries need. our destination is a sustained economic recovery and reformed financial system that will never again be open to the abuses of the past. we are confident the right steps were taken ap at the twrawnt g20 -- at the toronto g20 summit to achieve that. we want a peaceful and stable middle east. first iran must give its pursuit after nuclear weapon. we urge the iranian regime to resume negotiations without delay. it's not too late for to it do so. america and britain with our partners stand ready to negotiate and to do so in good faith. but in the absence of a willing partner we'll implement with vigor the sanctions package agreed by the united nations security council and in europe we'll be taking further steps as well. second, we desperately need a two-state solution between israel and the palestinians that provide security, justice and hope. it is time for direct talks, because it is time for each. israel and palestine to test the seriousness of the other. on bp which we discussed at some length. i completely understand the anger that exists right across america. the oil spill in the gulf of mexico is a catastrophy for the environment, for the fishing industry, tourism. i have been clear about that. and like president obama i have been clear it is bp's role to cap the leak, clean up the mess and pay appropriate compensation. i'm in regular touch with senior imagine the sat bp and the president is, too, to make sure that hatches. the progress that's men made too cap the leak is a step in the right direction. equally of course bp is an important come h -- important cy to both the british and u.s. economies. soft it's in the interests of both our countries and we agreed it should remain a strong and stable company for the future. that's something we discussed today. let us not confuse the oil spill with the libyan boarm. i have been clear -- the libyan bomber. we had the agreement which is releasing the lockerbie bomber, a mass murderer of 270 people, the largest act of terrorism ever completed in the united kingdom was wrong. he showed his victims no compassion. they weren't allowed to die in their beds at home surround by their families. inify view of he shouldn't have been given that luxury. it wasn't a decision taken by bp. it was a decision by the scottish government. this was a decision for the scottish executive, a decision they took. a committee is looking into these issues. my government will engage constructively with those hearings and my foreign secretary has set out the government's position. let me thank you, barack for hosting me today. at the world cup our teams could only manage a score draw. i believe our relationship could be a win-win. i did enjoy drinking the 3-1-2 beer cold during the world cup. when i watched germany beat argentina i cheered for germany. so the beer is obviously effective. but what barack said about british and american soldiers fighting together, sometimes dying together, serving together, is absolutely right. and we should never forget that. whether it's on the beaches of norman dip or in korea or iraq or whether now in afghanistan. our relationship is one that has an incredibly rich history. it is based on ties of culture, and history, and yes emotion, too. but for all those things i think it has also an incredibly strong future that is based on results. results of a positive. i of working together, agreeing where we agree when we have disagreements, working through them and coming to a fair conclusion. it's a partnership that i profoundly want to make work as well as it possibly next years i'm prime minister of britain and you as president of the united states. thank you for welcoming me here today. >> we are going to take a few questions and i'll start with mimi hall of "usa today." >> reporter: thank you, mr. president within mr. prime minister. i wanted to ask you a little bit more about bp. you mentioned, mr. prime minister, your decision some cooperate, but you set we shouldn't confuse the two. have you ruled out opening a government investigation into the events around the release of the bomber? and president obama, how do you feel about a congressional investigation into this? would you like to see that happen or do you think that kn nices the two events? >> -- do you think that confuses the two events? >> i think all of us here in the united states were surprised, disappointed and angry about the release of the lockerbie bomber. and my administration expressed very clearly our objections. prior to the decision being made and subsequent to the decision being made. so we welcome any additional information that will give us insights and a better understanding of why the decision was made. but i think that the key thing to understand here is that we have got a british prime minister who shares our anger over the decision, who also objects to how it played out, and so i'm fully supportive of prime minister cameron's efforts to gain a better understanding of it, to clarify it. but bottom line is we all disagreed with it. it was a bad decision. and going forward, that has to inform how we approach tour relationship with respect to counter-terrorism generally. one of the things want to emphasize that may get lost in this current debate is the extraordinarily long ties between our two countries when it comes to fighting terrorism. we probably had the best coordination and cooperation of any two countries in the world. and those relationships are vital and they keep people safe on both sides of the atlantic. and i want to make sure that even as we may express concern about what happened with we respect to the release of this particular individual, that we stay focused on the cooperation that currently exists and build on that cooperation to make sure that there is no diminution of our joint efforts to make sure the kind of attacks that hatches in lockerbie do not happen aga again. >> i'm not standing here today and saying it was a bad decision to release al-megrahi because i'm here. i said at the time was a bad decision it shouldn't have been made. the british government should have been clear it was a bad decision rather than going along with it. this was the biggest mass murderer in british history. in terms an inquiry, there has been an injury by the scottish parliament into the way the decision was made. the last british government released a whole heap of information about this decision. i asked the cabinet secretary today to go back through the paperwork to see if more needs to be published about the background of this decision. but in terms an inquiry, i'm not minded that we have to have a u.k.-based inquiry. i don't need an inquiry to tell me what was a bad decision. if you want the big fact that changed that makes it a worse decision is al-megrahi is free in libya rather than serving the prison sentence which he should be doing. in terms of the congressional hearing, make sure that proper cooperation is extended to it. >> reporter: just to stay on that subject if we may. mr. prime minister * would you be prepared to talk to your predecessor tony blair and gordon brown to get their agreement release any documents relevant to the paper search the cabinet secretary with undergo. and mr. president, can i ask you, the prime minister says he opposes and inquiry, hillary clinton has demand scene inquiry. where do you stand? >> the proper process is the cabinet secretary should look back over this decision and the circumstances surrounding it should identify those document that should be published. it should be right that ministers in the previous government should be consulted about the publication of those documents. of course, we'll consult with them over that. but in my view, there is absolutely no harm to be done in getting the fullest possible explanation of the circumstances surrounding this decision. i think the key thing to remember is in the end it was a decision by the scottish executive. on the issue of taken inquiry, i'm not currently minded to hold an inquiry because i think publishing this information gind with the inquiry will give the people the certain tough they need about this decision. the key thing is to get the information out there so people can see. there was a decision, a bad decision, but the scottish decision all the same. i don't think we need an extra inquiry to tell us that. but it will be gone over and published as appropriate. i'll be consulting with previous prime ministers as you should do in the normal way. >> we should have all the facts. they should be laid out there, and i have confidence that prime minister cameron's government will be cooperatist in making sure the facts are there. that will not negate the fact as the prime minister indicated, it was a very poor decision and one that not only ran contrary to how we should be treating terrorists, but also didn't reflect the incredible pain that the families affected still suffer to this day. and my administration is in regular contact with these families. and this was a heartbreaking decision for them that reopened the whole host of new wounds. so my expectation is that the facts will be out there, and as david indicated, with all the facts on, i think we'll be back to where we are right now. which is watt -- it was what decision that should not have been made. and one that we should learn from going forward. laura. >> reporter: mr. president, in your opening statement you referred to the fact that the british government has been taking some very tough steps towards to get their budge net order and you said you committed to cut the deficit in half. could you talk about whether you think those decisions are going to be -- the decisions they are making there will be needed to be made here in a similar level beyond pledges? and, mr. prime minister, could you address the matter of what role bp had in lobbying for release of this man and whether an inquiry or review you are planning will look at that specific question. thank you. >> when i came into office in january of 2009, i was very clear at the time even before we knew the severity of the recession that we would experience, that we have a structural deficit that is unsustainable. and that for a long-term growth and prosperity we are going to have to get a handle on that. i talked about that during my campaign, i talked about it in the days after i was elected, i talked about it after i had been sworn in. we had an emergency situation on our hands, and so the entire world working through the g20 coordinated in making sure that we filled this huge dropoff in demand, we got the economy growing again. and we had to take a number of steps, some of which were unpopular and yes added to the short-term deficit. way all see said at the time of was we are then going to make sure number one that we pay down whatever additional deficit had been added as a consequence of the recovery act and other steps we had to take last year. buff we are still going have some deal with these long-term structural deficits. in the first g20 visit i made in april to england, i was very dleert rest of the world that -- i was very clear to the rest of the world that they cannot rely on an economic model in which the united states borrows, consumers in the united states borrow, we take out home equity loans and run up credit cards to purchase goods from around the world. we cannot be the economic engine for the rest of the world's growth. so that rebalancing ended up being a central part of our long-term strategy working with the g20. what we have done is initiated a freeze on our domestic discretionary budget. we are on the path to cutting our deficits in half. we have put forward a fiscal commission that is then going to examine how do we deal with broader structural deficits. this isn't just an empty promise. we have started taking steps some deal with it and we'll be aggressive in how we deal with it. now, our two countries are in slightly different situations. their financial situation is slightly different. their levels of debt relative to the gdp are somewhat higher. and as david and i discussed when we saw each other in toronto, the goal here is the same and we are all moving in the same direction. but there is going to be differentiation based on the different city, in different countries in terms how they have approach it tac it tack tickallt what pace. i can assure you this, my administration is squarely committed not just to dealing with the short-term deficit and debt. what we are going to have to tackle are structural reforms that will be tough. and they will be that much tougher because we are coming outs after recession as we do it. but i think that as we continue to see economic growth, as we continue to receive the economy heal from last year, that the american people are going to want to approach this problem in a serious realistic way. we owe it for the next generation. and my hope is we'll end up getting a bipartisan solution to this thing that is realistic. and one concern i have is the politics of deficits and debt. when i announced i was in favor of this fiscal commission at the timei had -- at the time i had a number of republicans who were co-sponsors of the legislation who reversed themselves i suppose because i supported it. all the reports i have seen from the fiscal commission is people are serious about this, republicans and democrats on the commission are taking their task seriously. i think it will be a good report, but it will require some tough choices and we are committed to pursuing those tough choices after we get that report. >> you asked about the role of bp. the role of bp and any lobbying they might have doins an issue for bp and an issue they should explain themselves. the decision to release abdelbaset ali mohmed al megrahi was a decision the scottish government made. i don't think it's right to show compassion to a mass murderer like that. i think it was wrong. but it's a matter for bp to answer what activities they undertook. but scottish government made its decision and explained its decision and i'm sure will explain it again. i'm keep that we are clear here that bp should rightly be blamed for what has happened in the gulf and have real responsibilities to cap the well, to clean up the spill, to pay compensation, all of which they are getting on with including putting aside the $20 billion in the escrow account. they made good progress on that. i think it' important to separate that from the decision to release al-megrahi which so far has been shown in investigation is a decision i firmly disagree with. i think we have a question from tom bradley. >> reporter: quite a lot of people in the u.k. feel that your determination as a country to continue to push for the extradition of computer hacker gary mckinnon is disproportionate and somewhat hash. do you think it's time to consider some leniency? you have expressed some strong views. did you discuss that with the president today and if not with now be a good moment to share your views with us once again? >> it is something that we discussed in our meeting. clearly there is a discussion going on between the british and the americans about this. i don't want to prejudice those discussions. we completely understand that gary mckinnon stand accused of a crime of hack into vital databases. it is an important crime and it has to be considered. i have had conversations with the u.s. ambassador as well as raising it with the president about this issue and i hope a way through can be found. >> one of the things david and i discussed was the increasing challenge that we are going to face as a consequence of the internet and the need for us to cooperate extensively on the issues of sieb siste of cyber s. we had a brief discussion about the fact that although there may be efforts to send in spies and try to obtain state secrets through cold war methods, the truth of the matter is these days we'll see enormous amounts of vulnerability through these kinds of breaches in our information systems. so we take this very seriously. and i know that the british government does as well. beyond that, you know, one of the traditions we have is the president doesn't get involved in decisions around prosecutions, extradition matters, so what i expect is my team will follow the law, but they will also coordinate closely with what we just stated as an ally that is unparalleled in terms of tour cooperative relationship. i tru that this will get resolved in a way that underscores the sear -- the seriousness of the issue and we can work together to find an appropriate solution. thank you very much, everybody. >> thank you very much. megyn: there you have it, a 31-minute news conference between the british prime minister and our own president covering a number of topics including afghanistan and the one man in connection with the bombing of the pan am flight who was released material because he had cancer and was said to have three months to live. but the latest reports are he could have 10 years. there has been international outrage over his release. both leaders are talking about it today. the by trish prime minister says he believes that release was completely wrong. bret baier joins me now to underscore the highlights of what we saw from a news perspective. >> reporter: we learned that the two men like to calm each other by their first names. david and barack. megyn: that was uncomfortable. >> reporter: jaring. then you had the president's defense of his administration's handling of the deficit. five minutes going into the path the administration is on to cut the deficit in half by 2015, not talking that they don't count interest on the deficit both men didn't like the decision by the scottish government to release al-megrahi to libya. but the prime minister doesn't seem to be that keen on launching a new investigation in the u.k. into this and what possible role b.p. may have had in lobbying the government of the scotted to get this done. -- the government of scotland to get this done. you heard the president not be committal either. he says he expects the british government to come towards with the facts. but as far as launching a new investigation it don't look like it's going to happen. megyn: we learned they are fans of 3-2-1 beer. never heard of it. >> reporter: i have never had it. megyn: i think it did wonders for their marketing. we'll catch you at 10:00 eastern. we told you about new fallout showing a former usda official making controversial comments at an naacp event. shirley sherrod under fire for this incident. here is a brief clip from the remarks that got her in trouble. megynmegyn: she says the commens have been taken grossly out of context. she said the white house pressured her to resign. she said harassed. she said she would come on, then she changed her miernld. we offered her a considerable amount of time. she declined after she accepted. the door remains. >> for miss were rodney point she wants to -- for miss sherrod any time she wants to come on and explain. a report that was coauthored by this man, critics are asking if mr. arkin has an agenda beyond journalism. award-winning author of the rembrandt affair, daniel silva, former derks a agent, steve cracker. thanks so much for being here. the controversy is this guy is not really a journalist anymore. he's an opinion person, this phil arkin. but he shares the biline with dana priest, to the reporter at "washington post." this guys so incendiary you need a bomb thrower. people are supposed to think that he's a legitimate straight hard news journalist, is that right? >> he is not a legitimate hard news journalist and it's well documented. he was on the o'reilly factor calling american troops mercenaries. a dozen other "washington post" reporters -- this is a structural issue. megyn: didn't he disclose that? >> the post did not disclose it. but the editor did not disclose it. megyn: did he have this mom and pop at home reading "the washington post." here is a sample. he talks how our soldiers serving us in iraq -- he says these soldiers should be grateful the american public disapprove of the iraq war still offer their support to them through every abu ghraib and every rain and murder, the american public has indulged those in uniform. this is not a person, bob, who has any affection for the american military. is that not something that should be disclosed to the people reading the report that he wrote? >> absolutely. the problem is it's not so much the source, it's the information he provides. how is it checked, who are the sources. what rules are in place for something like this. is this his opinion or does this come from intelligence sources. did it come from people in pakistan or afghanistan? i think it's a confusing issue. people just aren't sure where the information is coming from, whether it's valid motion * it is information. the heart of the report speaks to how we are reliant on contractors now in our intel services and conclusion is that's posing a lot of serious problems. >> may i come to the defense of the washington post? i think this piece of what i have read of it wiive nod had a chance to read both installments of it. but it seems to be professionally reported. dana post is an incredibly competent reporter. a number of people working on this piece for a long period of time. i don't see any evidence of bias on his part and i'll confess to knowing nothing about his past. i can't see where it contributed negatively to the piece. i think it temperatures an exemplary piece of journal civil. megyn: it does always smack you in the face. that's why it's important to disclose when you have got a bomb thrower on page one of the "washington post" posing as a legitimat -- as alegitimate jou. >> this is seen as not revealing any government secrets. not part of his agenda. this ended up being a fair report. megyn: dana priest has won pulitzer prizes. is there some beef to be had with the revelations in this reporting? >> work as an agent, working with agents overseas in the past, i think look, who was in danger. there is anything that occurs now that will put somebody's life in danger? we had those situations but not here. this is more about policy issues and opinion. it's not specific information that will put an agent or intelligence analysts in any particular situation. the information that's there is pretty much public information. he has strong opinions about it, i don't agree with them at all. but the one thing to be careful about, if you put anybody's life in danger? the answer is no. megyn: you have done a lot of intel research for your book. was is your thought on that? >> it's been and open see yet in washington that we do not have an intelligence community any more, we have an intelligence mega city. what they have done to quantify and lay out structurally this gigantic national security octopus we created. 10 years out from 9/11 it does us a service to take a look at this thing and view of sit calmly and rationally and see if there are improvements that can be made. to foul on his points. the report deals with the structure of the system we put in place, not -- not in an operational level. contractors -- i guess it's 1,900 companies working in the intelligence community. friends of mine have done this kind of work. they will work as a cia one day, walk out the door with their clearances, join a company and come back to their job the next day at three times their salary. >> they know no different between the obama administration and the bush administration. >> we need to look at things and make them better. but at same time we only have a certain number of experts that can know the language, know the culture that can be informants and get the information. and this is different times than we have had in the past. i think it's working well. it can get better but i'm happy to see sitment being done now. megyn: what's the name of the book? >> "the rembrandt affair." it's the search for a long-lost rembrandt masterpiece that turns into an attempt to disable the iranian nuclear program. megyn: she went from an adorable child star to troubled teen, now convict. whrl * sentenced to 9 -- lindsay lohan sentenced to 90 days. was this trip to the pokey appropriate punishment? go to our "on the docket" section and read up on the case before the gavel drops in "kelly's court." >> she is not answering to anybody. look at that, somebody threw confetti on her. what insanity. is that nuts or what? lédététttw8 [ female announcer ] multigrain pops. ♪ ♪ hey, now, now, we're going down, down ♪ ♪ and we'll ride the bus there ♪ pay the bus fare ♪ or we find a new reason [ female announcer ] something unexpected to the world of multigrain... taste. ♪ hey, now, now ♪ we're going down, down, and we ride the bus there ♪ [ female announcer ] delicious pringles multigrain. ♪ a new way of living [ female announcer ] multigrain pops with pringles. megyn: "kelly's court" is back in session. lindsay lohan settling in behind bars after a couple dui arrested and probation violation. the judge refusion requested for any kind of house arrests for work release program. go directly to jail. but did she really need a stint in the slearm sordid her star power actually work against her in court? let's ask our panel, trial attorney lee armstrong and fox news analyst mercedes colwin. >> what is big red? >> she used to be a redhead when she was a kid. megyn: i guess i'm sorry for her. it's upsetting when anybody goes some jail. no, it's not. but the argument is that the book was thrown at her, mercedes, because she was a celebrity. you have seen some well-known hollywood heavy hitter lawyers saying whatever you think of her, this is unfair. no formal person would have been given 90 days in jail for what she has done. >> i disagree. look at what she has done. it was part of or probation. you must appear at these classes. then her anklet keeps going off when she is out partying. i didn't drink, someone spilled a drink on me. she continues to scoff at the law. finally the judge said enough is snuff. if you dough down this path -- if you go down this path you are going to kill someone. she is getting drunk, she is getting high and she is getting behind the wheel of a car. that's part of her probation she should visit a morgue. megyn: she did that before and apparently it made no impact. lee is a haith a hifaluting tril lawyer. if you ever had a client disregard a court order the way she disregarded this judge, repeatedly blog off these orders, missing court dates, then showing up in jail with an "f" you on her fingernail polish. can you imagine what would happen to your clients if they did that? >> i would fire them. that's what's happening here. celebrities and oftentimes if i'm representing a ceo, you come up against the same thing. they are the sun and you are maybe a planet if you are lucky, probably more like a moon and they are not going to whrissen to you all the time. and you have to gain control. some people you can't gain control of. i agree with everything mercedes is saying. i don't have a lot of sympathy for lindsay lohan. however, you have to admit the sentence here, if you look at the crime and the punishment. for a parole violation of this type 90 days is long. the prosecutors themselves are asking for only 30 days. when i heard about the sentence, it isn't one of those moments i remember where i was when the verdict came out. but the second reaction is so what? she is not 16 anymore. she is 21 years old. alcohol, cocaine, everything you were saying before. this understand consult thing on her fingernail. this could be a teachable moment for her or another chapter in a sad story. megyn: what about it being a teachable moment for other young women. >> her 16-year-old sister lives with her. if there is a wakeup call for that young girl, that's a wakeup call. the fact is she has not gotten its. i heard the interview with her dad, if she keeps getting vowndsed by these enablers some say i'm sorry you are being victimized, no. she has got to woman up and say it's my responsibility to stay sober, stay clean, and hopefully this will be that moment. megyn: both of you have have young daughters. would you ever let your daughter pursue a career as a hollywood actor? view mr my daughter wants to do that. the answer is absolutely. >> i would say yes with lots of oversight. megyn: parents like michael lohan, look what happens. >> hopefully we are different parents. everybody thinks they are the best parent. but hopefully there is a big gulf between our parenting skills and the lohans. on the 90-day sentence. we know she is not going to serve all 9 som all 90 days. there is no set time. megyn: because it's overcrowded. i have got to run. thank you. we'll be right back. thanks to aarp, we can have more nights out. and i can get more laps in. ♪ our card lets us head to the beach more often. and lets us barbecue more often. my new glasses help me see everything. the new website helps me do everything. [ female announcer ] with aarp you get so much more out of life. ♪ discover the best of what's next at the new aarp.org. running up the cost of holding conventions in chicago so organizations are heading to las vegas and orlando. but now in a rare move the city of chicago is fighting back. mike tobin is live at mccormick place in chicago. mike, what do we know? >> reporter: the illinois legislature passed an exhibitor's bill of rights. under the old rules if they wanted to get their exhibit here they had to pay the teamsters to haul the exhibit. once they were here you had to pay the union to set it up' the whole thing became cost prohibitive. >> intestified a few hundred dollar charge, that person is spending $1,200 to have a computer connected to the internet. >> reporter: the exhibitors have the right to use their own contractors. the convention and visitor's bureau is predicting a billion dollar windfall. 66,000 jobs in chicago ultimately depend on the convention business. megyn: mike tobin, thank you. it could be the key moment in rob blagojevich's corruption trial. the former governor could take the stand in his own defense this afternoon. we'll go live to the courthouse coming up. captioning made possible by fox news network  >> megyn: fox news alert. the senate just voted to end the debate on extending unemployment benefits. after weeks of fighting over how to pay, the vote was 60-40. there's a new senator on the floor from west virginia just appointed to replace robert byrd. when he voted yes he got a round of applause. the unemployment bill is expected to -- has passed or -- it has passed and now goes to the house. we'll see where it goes. we expect president obama -- that that will go through. one final word. it's 312 beer from goose island that the president had a bet

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