all those in one day. 40 different states and attorneys generals want to get together and do a coordinated investigation into what the heck is going on here. megyn: now there may be a this could be all 50 states and no homes are foreclosed upon which is fine if you're talking about homeowners that were going to be wrongly evicted. but you don't know what effect it will have on the homeowners that will be evicted because they haven't been paying their bills. >> reporter: about 24% of all home sales, higher in some states like nevada and arizona are foreclosed sales. if you're a realtor in nevada maybe one out of every three deals you're able to do in an already soft market is going to be a foreclosure sale, right? those are pretty much going to stop. if we're not seeing foreclosures we probably won't see the sales. the other issues that goes to that as well is title insurance. when you buy a home you are required to take that out. people glance over it, they say, why do i care? guess what? now there is going to be a lot of cases on who exactly owns the home. you know as an attorney you can only bring a foreclosure action if you hold the note. a lot of questions about what banks -- people can't get this, megyn, can't even figure out who owns their mortgage. megyn: when a mess. you have to have clear title otherwise there will be no closing. we have to go. i want to point out, we talked about this yesterday, this by mark zandy, a chief economist at moody's, adviser to the white house, he says we'll have the beginning of the housing recovery by third quarter of next year. now in the wake of the foreclosure scandal he says it will be at least a few more years before we start to see the housing market start to turn. >> reporter: it will hurt real stores that are already struggling. foreclosure sales will slow down dramatically. nobody will be able to push through and figure out who owns the titles. megyn: to give you an idea of how many homeowners will be impacted. banks are expected to take 1.2 million homes this calendar year. that is up there a -- from a million last year. that works out to 3,000 homes a day. those are big, big numbers. testimony started today in texas about what happened with last year's devastating fort hood military attack as a court tries to determine if there is enough evidence to put nidal malik hasan on trial. we are expecting witness testimony in the next couple of weeks to create a moment by moment picture of the day. >> he was running, you know, up to soldiers and just shooting them in cold booed, with no regard for life whatsoever. >> the first thing he said to me was, honey, there is shooting in the room, i love you. that was all that he directly said to me, and from that the line was open, and i could hear the screaming, the heavy breathing, running, wrestling with the phone. i could hear the gunshots, which i think was the scariest, and the next part was hearing the lady's voice in the background saying that they were being fired on and they needed assistance. megyn: that is chilling. rick leventhal is live at fort hood, texas where we are just getting word that the hearing ended early. what happened there, rick? >> reporter: megyn the hearing started two and a half hours late and just ended several hours early. we have not yet heard any witness testimony and we might not for a while. the prosecutors and defense attorneys met behind closed doors. the defense trying to block this proceeding from being open to the public and the press. that was denied, but they also asked for a continuance until november 8th, and they have now been allowed to file paperwork up until midnight tonight to make their argument for why this hearing should be postponed until november, and they will reconvene tomorrow morning in court at 9:00am local time, 10am eastern to disus this motion to postpone this harrell 32 hearing. if and when the hearing begins it will be like a preliminary hearing. there will be witnesses called, most likely all 32 surviving shooting victims of the event that took place last november 5th when army major nidal malik hasan is accused of getting up on top of of a table in a soldier readiness center, yelling in arabic and opening with a pistol, firing more than a hundred rounds before two civilian police officers shot him and took him down. megyn, i can tell you that he was in court today in a wheelchair, in his army combat fatigues. again his defense lawyer arguing that the case should be continued until november 8th but he did not say why. he filed papers but didn't publicly state why he wanted to postpone this thing. we'll have to wait until tomorrow morning to find out if this will go forward tomorrow. megyn: he's than wearing the combat fatigues for each of his court appearances. thank you so much. one of the people injured in last november's attack was specialist alan carol. he survived the shooting rampage at fort hood recounting the horrific moments of that day. he said he tried to help a friend and fellow soldier to safety when nidal malik hasan shot him in the back and the leg. after almost a year in rehab alan is now in afghanistan on a mission to keep the lives of u.s. and nato forces safe. he hunts for roadside bombs, the deadliest street to troops in the region, wow, what a testament, how courageous. off we go to the campaign trail where the balance of power in the governor's mansions may soon be about to change. three weeks to go, folks, 37 states up for grabs, in terms of the governor's races and among them michigan, where republican rick snyder is facing off against democrat verge bernero. the state usually democratic but with one of the highest unemployment rates in the country. it now appears michigan could go to the gop. mike tobin is live in lansing, michigan. >> reporter: you've got a traditionally democratic state that appears ready to vote republican. this race has been all about one issue, the automanufacturing and other jobs that have left michigan. the voters want them back. democrats have been empowered, they haven't created the jobs. the voters now seem to be turning to a political newcomer, republican rick snyder. he created jobs in the private sector, he promises to do it again if elected. >> it is hard work to create a job. let's get our government out of the way. we have the closed for business sign up in michigan right now. we need the open for business sign. >> reporter: eyes opponent is the mayor of lansing, a democrat. he is being lumped in with the old guard as a consequence he's suffering in the polls and left to defend that he still has a shot in this case. >> let's not try to decide it for the voters. i mean i appreciate pollsters and pundits but the folks that count are the people. they are the ones who are going to determine this election. >> reporter: still the polls show a significant lead for snyder as much as 20%. megyn. megyn: thank you. well her name is actually krystal ball, and she is running for u.s. congress, but along the way she is having to defend racy pictures that surfaced from her college days like this one. she will be here live in moments to talk about how this attack has impacted her. she says this is a sexist attack, is that true or was it her own stupid mistake or both. plus, we're used to seeing incredible crashes, but what happens when one of them is completely unscripted. we'll show you the incredible video here. oh, this is not pretty. she is a housewife, she is teed off and she is going after big unions, she has posted her adventures online. coming up i'll talk to the woman who calls herself the angry right wing housewife, and find out why she is so darn mad. >> shame on seiu for calling out the police on me. seiu [unintelligible] this is the aarp... medicare supplement insurance plan card. wherever you go, nationwide, your coverage travels with you. and that's just one of the many reasons... you need a card like this. with all medicare 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3. this was no stunt. the director shooting a high-speed car chase, a police suv collides full speed ahead with the chevy camaro known as bumble bee in the movie. that was not supposed to happen. the cop car was not supposed to be on the road which had been closed by police. the officer office -- officer is actually a bomb technician that was responding to reports of a sususpicious package nearby, tht is important business. he was taken to a local hospital and treated. the pledge of allegiance is fueling controversy at a school district in san diego. >> under god, indivisible with liberty and justice for all. megyn: in the wake of the controversy the parents are outraged over how a high school is introducing the pledge every morning. they say it's giving the children the option to stand up or sit out doing it explicitly. trace gallagher live with more on this. megyn: under california state law people are not required to say the pledge of allegiance. every morning they would make an announcement and i'm quoting, if you wish to participate in the pledge, please stand. the parents were upset because they say the announcement was worded all wrong. it was kind of like it was an invitation to sit out of the pledge. here is one parent, listen. megyn: the problem became too many kids sat out and thought it was funny trying to call attention to themselves. we felt it was very important for them to change it to more of an invitation to participate rather than an invitation to sit it out. >> reporter: so the parents professed -- protested, they went to the school board, they wanted the announcement change. on the other side some parents said they did not want their kids participating in the pledge at all because they didn't want them pledging to anything where the words "under god" are in there especially if they don't believe in god. so they fought this out and the school board decided that the pledge, or the announcement would be changed to, you are invited to recite the pledge of allegiance, and guess what, participation has picked up a little bit in the pledge, apparently it's all about the phrasing, megyn. megyn: interesting, all right trace, thank you. well her name is krystal ball, and she is running for u.s. congress. she also happens to have these racy of her college days all over the web. she says this is a sexist attack and she joins me live right after this break. and a school district is under fire after several of its students commit suicide in the wake of terrible bullying. we've got heartbreaking new details directly from the families who you will see right here. >> some phone calls on her cellphone, three calls saying that our family needs to go back to croatia, we don't belong he here. telling her that they are going to beat her up at school and beat her up. 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[ disco playing ] and this is rto remu that you could save hundreds! yeah, that'll certainly stick with me. we'll take it. go, big money! i mean, go. it's your break, honey. same coverage, more savings. now, that's progressive. call or click today. megyn: it's a race against the clock in hungary to save towns from a deadly wave of toxic material. when a damaged storage pool dumped more than 180 million gallons of material that can burn your skin on contact. eight people were killed, hundreds more injured. now another huge pool of the same material could spill at any point, because the walls holding it in are starting to give way. what a situation there. a tough challenge on the campaign trail as racy feet oers used to attack a democratic candidate for congress. krystal ball was thrown into the headlines following the release of these pictures taken six years ago, during her college days at a holiday party. ball says the recent attack she has faced over the photos are sexist and wrong. krystal ball joins me live. thank you p- so much for being here. >> thank you so much for having me, megyn. megyn: there is a reason your parents had the last name of ball and named you krystal. >> my dad is a physicist who did his dissertation on crystals, they liked the name. megyn: you're a cpa, a software designer, you are married and decided to run for congress, even though you're 28 years old, after the birth of your daughter, ella, back in 2008, why? so young. >> i became really frustrated with the nature of politics in this country. i became personally frustrated with the extreme partisanship with the triumph over politics over policy and honestly with exactly these kinds of smear tactics that i'm now facing in this race. the politics of personal destruction, which i think many people are extremely frustrated with in this country. megyn: we'll get to the pictures in a second. two of your inspiration were women, hillary clinton and sarah palin who you disagree with ideologically but you were inspired seeing her out on the campaign trail, specifically with her baby trigg and you figured you were a young mother, maybe i can do it too. >> that's correct. i do disagree with her on a lot of issues. seeing her on stage with her young family and baby was beautiful. i said maybe i can give this a shot as well. megyn: i'm part of a new generation, i feel empowered. you thought you might get supported by hillary clinton supporters because you're a democrat and ideal logically feel the way that hillary does. you said you were surprised that you did not get the support in the sister hood of the traveling pantsuit. you said you need to look less sexy and more manly, how so? >> i got advice right from the beginning, cut your hair, wear less make up. dress like you're older, wear shorter heels, all those sorts of things. what i came to realize is it wasn't a put down on me. they wanted to protect me from the kind of sexism that they'd seen. from my own perspective women who are stepping up of my generation to run now and to be successful in any career now we've kind of decided that, you know what it's okay to be feminine and powerful and smart, it's okay to be all of those things, and to me that is sort of the next generation of feminism. megyn: that will break the preconceptions of some that you can't be both strong and smart and serious and se kperbgs y. >> that's right. megyn: in the context of doing that and refusing to sacrifice your feminine side releases these pictures in your college day. it shows you horsing around in a couple of simulated sexual acts with your ex-husband who is wearing a sexual device as part of his costume. you're basically behaving like your typical college moron who didn't expect to run for congress. the question is whether the voters of virginia are going to forgive this. and you say what. >> i have faith and belief in voters in virginia and voters across the country. they are disgusted with these tactics too. it's irrelevant to the race. and since this has come out people have come up to me on the street and said, you know what, just stick to the issues, that's what people care about. we have such big problems in this country, a tremendous deficit and huge amounts of debt, we still need to get people back to work, figure out how we can get our education system back to number one in the world. megyn: i want to talk to you about how this made you feel. i thought this was an interesting piece of this for you. so often we forget that conned dates for congress have feelings. >> are human. megyn: you write about how suddenly you've got the name krystal ball, people say it sounds like a porn star and now you say for millions of people around the world, suddenly i'm a joke, and you say, the people who did this wanted to, and i don't usually use this word on television, but you say they wanted to make me feel like a whore, and what i actually did is go home to my husband and cry. >> yeah. that's exactly right. it was obviously tremendously hurtful, extremely embarrassing. it must have been someone that knows me personally that leaked these photos. so it was very hard. but, you know, the tactic of painting women, successful politicians as a whore, and i also can't believe i'm using that word on your program, it's nothing new. ask sarah palin, ask meg whitman, nikki haley, christine o'donnell. lots of women face the same thin. i decided although i wanted to hide in a corner and cry that i couldn't let these tactics succeed. megyn: do you think there is a double standard, though if this had been a guy doing this, let's say the ex-husband was running for congress that he'd be reprieve pass? i don't know, maybe people would say he looks like a moron in college too i don't want him either. >> i think if we look at the example of scott brown, you know, he had pictures from the same age as those pictures were taken of me only he was completely naked in the center fold of a national magazine, and it was not even a bump in his campaign, in fact he has said that it actually helped him a little bit in his campaign. i'm not tolding anything against senator scott brown, that's how it should be in my view, because those sorts of things to me are not relevant to the campaign trail. i do think there is a double standard. i wanted to bring up to you megyn and to your viewers, there is a wonderful program called name it change it.org that is fighting against this kind of sexism. megyn: you talk about too about how you think that people need to understand the fact that candidates for office have sex lives, even women, even even young women and more and more in the age of facebook where the people who are going to be running for office over the next, 20 years are going to have online histories we are going to see a lot more of this and maybe what we're going to have to become more for giving or more understanding about the fact that sometimes people have things in their past that they are not that proud of. >> i hope this will serve to make people realize candidates are human. and human nice more politicians. if you're a young woman or a young man and you did something stupid on camera when you were young don't let it stop you run from office. don't let these kinds of tactics scare you out of the race. we need you to step up and serve the country. megyn: the vast majority of us have behaved like morons at some point or another in our past. i know that you are trailing severely in the polls, we don't know if it will happen for you this time. we appreciate you coming on talking about the photos. >> thank you so much. megyn: i'm sure you're an inspiration to a lot of young girls in terms of your ambition and willingness to come out and try to run for office at 28 years of age. >> thank you so much, megyn. megyn: take care, all the best. we are taking your thoughts on it at kelly at fox news.com. there have been new attacks from democrats in the last year suggesting some conspiracy to funnel foreign money to the midterm elections despite dozens of reports showing that is just not true. senior political analyst brit hume will join me at the top of the hour on what he thinks is behind this latest round of allegations and where this goes in the next three weeks. plus she calls herself the angry right wing housewife and she is take on a very big fight. she joins us live. as soon as this handbook comes in the mail, i pull up a nice cozy chair and go through it. see, every year during open enrollment we can make changes to our medicare. while we always have our guaranteed benefits, there are other choices to think about each year. and, with the new healthcare law, we have lower costs, free check-ups and screenings. it's worth looking into. megyn: 1:31 in the east. the administration announced it is lifting its ban on deepwater oil and gas drilling. the interior secretary sepb salazar says drilling can move forward as long as operators abide by all the regulations in place. a hurricane is pounding hopb tkrur ras right now -- honduras. it is expected to cause great problems for the coast, slug cozumul. a police officer is accused in a deadly shooting spree in illinois that left one man dead. police say he asked his victims about honey bees before he started shooting. new reaction now from the families of two ohio teenagers who committed suicide after they were relentlessly bullied while attending the same high school. we warn you, the details of these cases are hard to hear. 17-year-old eric mohat whose sin was he liked to wear pink to school. shot and killed himself in 2007 just a few hours after a bully reportedly said to him, why don't you go home and shoot yourself, no one will miss you. 16-year-old vehicl-year-old tooy tying a rope around her neck and the bed post before jumping out a window. her sister talks about the constant harassment her sister faced at school. >> she was a beautiful girl, always smiling and trying to make everyone april here. megyn: her suicide note told of daily harassment where she said kids called her sluty jana. the kids who tormented while she was alive showed up at her funeral and laughed at her in her casket. where is the humanity. these are not the only children to commit suicide at this school. in fact over a two-year period four students took their own lives. the parents of both children are suing the school district claiming the administrators did little to nothing to stop the torment of their children. yesterday i spoke with both families about why they feel this school is responsible. joining me now are her sister, ander rick's mother and the lawyer representing both families in this case, ken myers. i want to start with you, jan. as a mother i can't imagine what you went through with the death of your son. i know that you, unlike suzanna's family you say you had little void that he was going through these bullying problems at the school, is that the case? >> that is the case. we had very little notice. he came home a week before he died on a friday and said that he was being bullied, the teacher reamed the kids out, it was great. eric's father and i dee dee sided, we thought we should get involved and he said, no -- and i decided, we thought we should get involved and he said no, it's handled, it's fine. we wanted to talk to him the following week, we didn't have an opportunity because he was dead on that thursday. megyn: looking back now, because obviously you are trying to do something about this, and you're trying to help other families, what more could the school have done, if even you were not that tuned into it, what more could and should this school have done? >> well the bullying happened in one class. eric only had one class at the high school, the rest of his classes were at the local community college through a post secondary program where he took classess -- classes for high school credit and college credit. the bullying happened in that math class. it happened on a daily basis according to other students that were in that class. the teacher supposedly moved this bully's seat two to three times a week, and then the very next day the bully was right back hinder i can. megyn: did they call you to let you know this is going on? >> no. there was no notification. as far as i can tell the teacher never wrote up the kid, the bully. the bully was never given so much as a detention, nothing was written up, nothing was reported. megyn: you know, suzanna, you had a different situation with sladjana vidovic and she was bullied mercilessly and it was on going. the school was well aware of what was happening to her. and what did they do about it? >> it's sad to say but they didn't do anything. they are always telling us, we going to take care of it, we going to talk to the kids, everything is going to be fine. your sister is going to be okay. and they never kept their promise like they told us. megyn: they've come out and said, ken, that they have a school district-wide bullying program, they've brought in experts, and there is only so much a school can do to prevent kids from being kids, if you will. there is some truth in that statement, but what is the legal thought in response to that? >> well, i a grow that -- agree that schools can't be or should they be responsible for monitoring every little thing that goes on. you have thousand of students and a lot of things happen during the course of a day here we are looking at a situation, two situations that were really egregious, you're talking about a total of four deaths in the course of about two years by suicide because of bullying. we would never tolerate this in an employment setting, this sort of egregious ongoing behavior and we shouldn't tolerate it in a school setting. the school district may have a policy but they have to enforce it by telling the teachers and administrators to jump on a situation when they get word that a child is being bullied. they have to enforce witness a zero tolerance policy. megyn: suzanna, since your sister's situation was more open and notorious. she was bullied because originally you were from croatia, they made fun of her accent, said terrible things about her. what kind of things do you think the administrators and teachers actually observed in the treatment of sladjana vidovic. >> they were there when everything hand. the security guards were around, nothing was done. they were just looking at them. the security cameras are all around the school and nothing was done. they are just looking through it. even when we went to school and my parents, with the translator, they were aware of every single problem but nothing was still done. megyn: jan, what reason do you think the school has to loo looa different way, we are past columbine and bullying is a well-known problem which has led to violence, suicide and murder many times, what reason does the school have to look the other way? >> they don't want to admit that they've made a mistake. i believe that the reason they look the other way is it's easier. you're tired, you don't want to have to deal with every little thing, but when you've got kids you don't ignore a misbehavior, you deal witness right at the moment that it happens, or you are teach these kids to behave badly. megyn: okay. well i know, you know, you filed the lawsuit, and you're hoping to get justice. the school says it will say more in the courtroom. and we'll be watching the case as it goes forward. all the best of luck to all of you and our condolences for your loss. >> thank you. >> thank you. >> thank you. megyn: of course we reached out to the school to get them involved in this, because there are always two sides to every story thinks the statement that they provided, quote because of legal and privacy concerns we cannot comment on the specifics of the lawsuit except to say that we will vigorously defend the district against the allegation. again, that is from the superintendent of school out there. well the clock i can ticking down to the final moments on the most dramatic rescue attempts in years. we are just hours away from an effort to lift 33 mines from a half mile of rock. we'll take you live to the scene at the top of this hour. plus, she's mad as you know what and she's not going to take it any more. in three minutes you will meet the woman who calls herself the angry right wing housewife. >> seiu does not like it when law abiding citizens take a stand. they can dish it out but they can't take it. shame on you seiu. what are you going do next, call obama and have him send out a bunch of thugs to beat me up? diabetes testing? it's all the same. nothing changes. 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[ male announcer ] see how the hartford helps businesses at achievewhatsahead.com. megyn: this is the home of the former city manager of bell, california, covered in toilet paper. you may recall that that robert rizzo was arrested and is facing dozens of charges in a public corruption scandal that has rocked this small town. rizzo and other former bell officials are accused of taking home huge salaries and ripping the town off to the tune of more than $5 million. well she calls herself the angry right wringing housewife, and -- angry right wing housewife, and she is taking on one of the nation's most powerful unions, here is a sample. >> they don't know how to stop their own workers. [inaudible ] >> you've got to respect the law. you have to be on the sidewalk. thank you. have a nice day. >> you too. please stop boycotting arizona. [inaudible ] >> shame on seiu. shame on seiu for calling out the police on me. seiu pickets citizens. seiu does not like it when law abiding citizens take a stand. they can dish it out but they can't take it. same on you seiu. what are you going to do next call up obama and have him send out a bunch of thugs to beat me up. megyn: joining me right now is the angry right wing housewife also known as judy, live from phoenix. judy, thank you so much for being here. soap why so angry? >> well, because arizona's economy is really hurting, and we need the jobs we could get, and seiu and other unions have called for a boycott cartel of arizona, and i felt like i had to go out there and take a stand myself, and i was really disappointed that our local congressman harry mitchell refused to take a stand, and ask that seiu call off the boycott, but instead what does harry mitchell do, he takes a million dollars from him. i think that congressman harry mitchell should give that money back and demand that seiu call off the boycott of arizona. megyn: it was very interesting to see you on the doorstep of the seiu protesting, and they were very quick to come out and tell you to get back to the sidewalk. that's where you belong, back to the sidewalk. we saw here on fox news a couple of months ago, i mean throngs of seiu members on the doorstep of a bank executive in the d.c. area with his 14-year-old son cowering inside in a clothes. these are members of the seiu protesting on his doorstep. they apparently thought this was fine but don't like you getting too close to the door. >> no, as a matter of fact what they did is when i did go out on the sidewalk, i spent two hours there picketing them with my bullhorn they called out the police eight times on me to try to intimidate me and get me to leave and embarrass me but i stood my ground for the full two hours. megyn: did the police try to make you leave the sidewalk? >> no, the police said, well you have ever right to be here but seiu is complaining that they are unable to conduct their business, and they do a lot of conference calls, and they can't hear anything inside the building. well, too bad. megyn: have you ever been an activist before? what did you become so angry and right wing and a housewife? >> well, you know, i've never been an activist. i started getting involved when i was extremely unhappy with the type of representation that we were receiving here in arizona. for example, the record spending in washington d.c. that my children have to pay for. it's not their fault what our generation did. and all this failed stimulus spending. megyn: are you getting any traction? you look like a one woman band are your website. you have a lot of notes on there from people that are supportive. anybody follow you? any other right ring angry housewives behind you. >> i have a lot of followers. i have cape creek patriots is my tea party group. we are very active in the community here in getting the word out. megyn: have you been -- are you an outspoken person? that takes guts to go out there by yourself with the bullhorn and the microphone and get in somebody's face and call them a fat cat. >> well, like i said, somebody has to do it. nobody was willing to take a stand. we have representatives here and they won't do anything. they won't publicly chastise the unions, especially congressman harry mitchell, he takes the million dollars from them and he won't take the stand against the boycott of arizona. that is just plain wrong. megyn: all right, jude tkaoerbgs its interesting hearing your perspective. do you have a family, any kids, any reaction from your friends and family to your behavior? >> i have three young children, and my family fully support me and so do my friends. megyn: interesting. listen, we've got even a kick out of the videos. it takes a lot of hutspa. thank you for coming on and telling your story. >> thank you for having me. megyn: the white house is upping the ante saying foreign money is pouring in to attack democratic candidates. robert gibbs talking about this in the last hour and doubling down on the allegation. brit hume joins me live in five minutes on where this whole thing is going. no longer an amber alert, the case of this missing ten-year-old girl from north carolina is now a homicide investigation. breaking news next on what the step-mother is now telling authorities. >> i hope and i pray that we'll find her and she'll be okay, because that yo u.n. g -- youngun was the best you could ever ask for. oh, i'll get them to eat veggies. "how?" you ask. i have a way. it's deliciously clever. and they'll be none the wiser. new prego veggie smart sauce gives them 50% of their daily recommended amount of veggies. [laughter] be smart. veggie smart. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. megyn: breaking news in the disappearance of a ten kwraoerpld girl from hickory, north carolina. -- 10-year-old girl from hick tree north carolina. the police chief saying there is no longer an amber alert for zahra baker, this is officially a homicide investigation. the little girl suffered from bone cancer and hearing loss. her parents say she vanished over the weekend. police admit they have yet to find anyone who has seen the child over the past few weeks. trace gallagher has more from the west coast newsroom. >> reporter: a sad story appears to be a homicide investigation with the focus on the step-mother, lisa baker. there was a fire at the baker house. they put the fire out quickly. then they found a ransom note on adam baker's windshield. it wasn't for him. it was concern his boss saying his boss' daughter had been abducted. the cops checked it out, the boss and daughter were both fine. then a few hours later zahra baker was reported missing and now cops have learned this, listen. >> during that interview alisa baker admitted to writing the ransom note left on the vehicle at the fire scene at zahra's home on saturday morning. after admitting to writing the note alisa baker requested an attorney. >> reporter: dogs have detected human remains on the baker's car but police say the timeline is in question because nobody has seen zahra bakers, no teachers, no doctors, no neighbors. the neighbors do report that the step-mother has a fierce temper and was known to have hit zahra. the father has even come out and said that he believes that maybe his wife was involved in this. as you mentioned zahr suffered from bone cancer, she had two hearing aids, a prosthetic leg. it appears this case will not turn out as we had hoped, megyn. megyn: horrible, horrible case. thank you. the white house is standing firm in its accusations against the chamber of commerce and it's alleged secret donors, claiming that they are taking foreign money and spending it on campaigns, which is a crime. the chamber of commerce joins me live next hour to respond directly, and they have survived more than two months below the earth's surface. in just hours we could see the first of 33 miners trapped underground finally pulled to safety. coming up we'll get the latest details from the grounds in chile, right after this break, brit hume. research. and some of the most powerful, yet easy to use trading tools on the planet. it's investing with intelligence and cold hard conviction. e-trade. investing unleashed. megyn: fox news alert the white house ramping up its efforts to stir up a funding controversy. white house press secretary robert gibbs speaking off camera putting an exclamation point on president obama's controversial comments earlier this week. the president took a shot at the chamber of commerce and others for possibly accepting foreign contributions, then using that money to pay for political ads attacking democrats. that would be a crime. dozens of reports came out after the fact including from the a.p. and fact check.org saying that claim is not true. but the white house is not backing down. where does this go? cite human is fox news senior analyst. you have had -- the a.p., factcheck.org saying there is no basis that they are using that money to fund campaigns. when given a chance to back off, robert gibbs did nothing of the sort. >> reporter: this isn't going anywhere. i have been trying for days to puzzle out why in the world they would embark on this little campaign with no substantiation for it other than what they say. when asked, they don't have any proof. about it's up to the chamber of commerce to proof it isn't doing this. i don't think that's the way americans think about such matters. about it is a possibility that they could be trying to awaken the democratic party base. who do you have as the figures in the advertisement they have, karl rove and ed gillespie. known republican operatives. president bush's name comes up. if the chamber of commerce is identified as a shill for big business. most people are not worried about bush or karl rove or the u.s. chamber of commerce. i don't think this is aimed at the electorate broadly speaking, it must be aimed at base. that the only thing that makes any sense. megyn: could it be aimed at republicans like rove to get them talking about something other than jobs and the employment rate? this has dominated discussions the past couple days. the chamber of commerce? instead of 9.6% unemployment. >> reporter: people know about 9.6% unemployment, they probably don't need to be reminded. the democrats don't have a program for dealing with it. the mainstream media, including the "new york times," the tv critic of the baltimore sun said this is a new low in campaigning for this cycle. the "new york times" said there is no evidence to support the claim. if it's aimed at the media, it isn't doing very well. megyn: there is an accusation that is beneath the dig knit of the office. >> i don't think it's a good idea for any president to get down to this level of politics. i'm not saying it's dirty. i just mean a path is a big guy. if he's in a fight with somebody smaller than he is, and nearly everybody is, that's not usually presidential. i think it' a mistake. but karl rove is a name i don't think desh's tremendously controversial among democrats. they think he's an evil genius who helped george bush steal the election in 2000. he's somebody the base loves to hate. you bring up the name of karl rove and you can hope for a response. you can hope a somewhat docile electorate may decide this is bad news and bad things are happening and they need to get out and vote. that's the on thing that makes any sense to me. megyn: brit doesn't think it's going anywhere. i'll hold him to that on election night. the chamber of commerce is firing back at the administration across particulars. in less than 10 minutes they will join us on "america live" for what we expect will be a sharp response from the pointed attacks from the president and vice president himself. there are new developments in a military voting scandal in new york state. the folks at foxnews.com broke this story. a lawsuit being filed against the board of elects after the state admitted to fail to get absentee ballots to our troops overseas. we have been tracking what the doj has been doing. the doj doing its job here. al qaeda in yemen out with a "how to" article in a magazine aimed sat would-be terrorists. the magazine is called "inspire." this month's issue featured tips on how to kill americans. one suggesting, let's not tell them what we are suggesting. they are suggesting specifically to do it. the suggested attacks would surely kill lots of americans. this issue cop out just in time to mark 10 years to the day of the deadly u.s.s. cole bombing in when men port. it killed 17 american sailors. 33 miners trapped in chile are hours safe way from rescue. teams on the surface conduct a final test on a device that will extract the miners from the underground chamber. giving them their first taste of freedom in 2 months. can you imagine what's going through their minds? what a scene there. >> reporter: the intention was to bring they out just after midnight tonight which would be the beginning of the 69th day they have been trapped. they may move that up because those tests have been going oh well, they have been sending that capsule up and down without any problem whatsoever. that's good news. if that is continuing to go that route, they may try to bring the first miner up at 8:00 or 8:30 local time. 7:30 on the east coast. that's the latest plan. the idea is they will send in two rescuers, one will be a medic. they will go down in the capsule. a 25-minute ride to get in 2,000 feet underground. he will check all the minessers and break them up into three groups. the first group that will go up are the ones that are strong. but in a few days wouldn't be as strong. the second group will be the weakest and the third group will be the strongest. if it all goes as planned it will take 24 hours to bring them all up without any hitches. the president of chile is expected to be here this afternoon. he says he will hug each and every one as they come up. they are being called the angels of the bicentennial. here in chile they celebrated their 200-year anniversary. as you drive across is country to get to this mine, everywhere you go, every television, every newspaper, every person is either talking about this or is watching it. it's cap i vaight. when you come -- it's captivating. when you see the people who have come here to hold vigils or come as members of the media. there is a lot of excitement here. everybody is hopeful that first miner comes up at 8:00 tonight and continues that way for the next 24-30 hours. megyn: before i let you go. give us a sense of what these miners have been through the past couple months. >> reporter: it's been difficult. at the same time they have had some luck. the sense they have been able to get water down to them. food down to them. cameras. they are able to talk to their family members once a week. some cell phones got snuck down there and video was brought up from underground. they have been able to stay somewhat healthy and stay in touch with everybody above the ground. they know what's going on. they know the plan. they have seen the capsule come. they were able to help with the drilling itself. there were incredible instances that allowed these pen to stay alive. 32 of them from chile and one from bolivia. megyn: we brought the new details moments ago. a new attack by the president on karl rove within the claim before commerce and conservative groups. the chamber of commerce seems to have caught the ire of the president and the vice president. and the chamber is here live to defend itself after this break. one of its top executives. they have been married for more than a defend kade. in hollywood years that's a lifetime. but apparently it will not be happily jer after for courtney cox and david arquette. he allegedly threw a rock at the home of an older man. today this 15-year-old boy is dead. tragedy sparks a bitter self-defense debate. >> there is no call for what this gentleman done. he could have handled this situation in another way. he could have called the police or whatever. there was no reason to shoot a 15-year-old boy in the back. megyn: texas governor rick perry criticizing the obama administration for not reaching out to the wife of david hartley. his wife claims he was shot in the head by mexican gunmen while jet skiing on a mexican lake. his family fears his body will never be found. >> i don't think -- i have that feeling after a couple days down there, this is what is going on, i just don't think it will happen. we have to accept that david's headstone -- megyn: mexican police are searching for two brothers they consider suspects in this case. both are believed to be members of a notorious mexican drug gang. firing back after coming under attack by two of the most powerful men in american. president obama and vice president biden challenging the chamber of course in reveal the names behind all of its financial contributions. saying some of that money comes from foreign donors and some of that money may be being used in connection with political ads. now the response from the chamber. we accept the challenge and are happy to provide our answer. zero. as in not a single cent. we hope this clears it up. bruce johnson is vice president of government affairs at the chamber of commerce. the vice president put it directly to you. saying i challenge the chamber of commerce to tell us how much of the money they are investing is from foreign sources. i challenge them. if i am wrong, i will stand corrected. now, you say what? >> we find this whole episode fascinating. i think i agree with brit hume in your interview earlier. it seems that the administration is acting out of desperation, choosing not to run on a campaign running on their accomplishments and instead seems to have gone from a campaign of hope and change to a campaign of fear and steer in. we have been around nearly 100 years. we know what the federal laws are. we are audited annually. we comply with all federal laws. we wouldn't do anything less than this. this begins with a liberal blog, a sub set of john -- john pedesta who is largely funded by george soros who doesn't disclose its donors in the '08 election cycle in the runup to the campaign. this is changing the subject. they don't want to talk about their legislative accomplishments. the healthcare act is not meg alread -- megyn: this ad acues you of a crime. >> it's a statement that's an inference where they are trying to connect dots and raise a doubt. this campaign is looking for something to sell against. they have chosen us. we have 115 american chambers of commerce abroad. their membership is come prides of american companies doing business abroad in those countries who band together like the chambers of commerce do here to represent their interests. we have probably 60 or so foreign multi national companies in our membership that we have had for decades wnl of which have been in the united states for a century or half a century. we don't solicit tonight of those groups for our issue advocacy campaigns. megyn: you don't use any of their money to fund political ads. >> we are not running political ads. we are not running any. we are running issue advocacy ads that draw a distinction on a given issue with respect to an incumbent member of congress. megyn: you are not using any of that foreign money to fund them. >> none. absolute lire none. megyn: robert gibbs said the chamber has said money from overseas does not buy ads. they say they take money from overseas. we know they are spending between $75 million and $80 million an ad. let's see where the money comes from for those ads. they are running ads and we take them at their word that they take money in overseas and they say the burned is on you to prove there is no foreign funds commingled. and the bigger point they are trying to make is why not disclose the names of all your their donors. >> this is a head thing from gibbs. this is the administration that carved aught, the unions, organized labor and one other group, the nag tall rifle association. it disenfranchised other non-profits and specifically the business communities. what they want is us to divulge where contributors are. why? what we saw last year when some of the contributors who are healthcare issue ads, they were confronted by move on, seiu and others with protests at the corporate headquarters, threats and intimidation and harassment against them, on and on and on. much like we have seen out in california when ballot ini tough supporters names become public, threats, harassment and intimidation becomes the norm. this has little to do with speech. megyn: you mention how long the chamber has been in business. have you ever seen anything like this? the chamber has been more pro republican and democrat i think it's fair to say. have you ever seen anything like this? >> i have never seen anything that rises to the level of this with any administration. i speaks of grasping at straws this late in the cycle to try and concert something into a a o something that won't hold water. megyn: new developments in the brett favre sexting scandal. what he's saying about the controversy. and what the league may have in store for the soon-to-be hall of famer. a girl caugh>> what do you accoh the grim reaper and the daughter fighting an illness with the skull and cross bones? 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testimony of its star witness. that star witness was supposed to be a man called hussein bibi. he was expected to tef knife he provided the defendant with the truck and explosives. the judge ruled he could not testify because of the manner in which his name was revealed by the cia. prosecutors do say they have enough evidence to prove the defendant's guilt beyond a reasonable doubt. what's interesting to note if this case had been brought before a military tribunal, that witness of bibi's testimony would most likely have been allowed to take place. there is a lot more at stake than the fate of one man, the defort. the government here must have a successful prosecution in ordinarier to show that terrorist gifts incarcerated in gitmo can have a successful civilian trial in the united states and that is something that will be taking place here for the next few days, weeks and possibly even months. megyn? megyn: president obama taking it up a notch on the campaign trail. >> what the other side is count oints you are going to stay home. they are count on your silence. they are counting on your amnesia. they are counting on your apathy. they are count on young people staying home and union members staying home. megyn: the president has taken shots at president bush, john boehner and karl rove. what is behind this unfolding white house strategy next? no one told them it would be this way. but now their love life is really d.o.a. details on why courtney cox and david arquette may be just friends sometime soon. he allegedly threw a rock at another man's home. police say that man walked out of the house with a gun and shot 15-year-old andrew elliott. was itself defense or murder? >> we all think he has done stupid things. a man don't come out from behind a garage and shoot somebody running away from him. let me tell you about a very important phone call i made. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one 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shooting seek a month-long delay because of scheduling issues. nidal malik hasan facing first degree murder charges. police in north carolina are treating the disappearance after 10-year-old girl as a homicide after the stepmother of zhara baker confessed to writing a ransom note. >> they shoot him in the back. megyn: the grief stricken step grandmother of andrew elliott shown there after the teen was shot after he and two others reportedly started stoning the house of archie ashley. ashley is calling itself defense but the police are calling it murder. >> reporter: he says this group of teenagers were throwing rocks at his house and car. he confronted them on three separate occasions. on the third confrontation archie pulled out a gun and fired two shots, and one of those shots hit 15-year-old andrew elliott in the back, killing him. police say archie ashley then removed and hid those shell casings and tried to hide the gun and the ammunition in the bathroom. archie ashley is in jail charged with murder, and tampering with evidence. elliott's family wants him to get the full extent of the laugh. >> there is no call for what this gentleman done. he could have handled the situation in another way. he could have called the police or whatever. there was no reason to shoot a 15-year-old boy in the back. >> reporter: the teenagers who were with andrew elliott say they were throwing rocks at each other and one of them accidentally hit the house of archie ashley. archie ashley is being held on $500,000 bond. he has a totally different story of what happened that night. megyn: all right. thank you, trace. >> what the other side is counting on is you are going to stay home. they are counting on your silence. they are counting on your amnesia. they are counting on your apathy. they are counting on young people staying home. and union members staying home. and black folks staying home. megyn: president obama the post racial president accused of playing the race card there. some say it smacks of desperation. first you remember he blamed rush limbaugh. then he targeted president bush. now it is karl rove and ed gillespie and the chamber of commerce. karl rove firing back this morning on "fox and friends." >> they need a bogeyman. they had bush, it didn't work, they had boehner, now it's yours. >> it ain't going to work. who is the genius inside the white house who said we can win the electionly using karl rove's name? who is that? megyn: they use the term bogeyman there. it did start with rush limbaugh, then taking aim at president bush. john boehner the house minority leader, even targeting fox news. many of the white house supporters targeting the tea party, noifer has seated on karl rove, ed gillespie and the chamber of commercial in connection with this race. does that resonate? >> of course it's not going to resonate. the american people figured this thing out. the president has run out of people to blame. i thought you were going to throw fox news in there. he blamed your entire network for causing the demise of american prosperity. the president ought to wise up. even his supporters are standing up telling him they know he's failing in this case. he can't blame his failure on the other guy any longer. the fact he's trying to play the race card, that's his inner reverand wright starting to emerge after all those sermons he slept through for 30 years. americans are not going to appreciate it. megyn: he says the republicans are counting on young people, union members, and black folks staying home in this election. those are groups that tend to vote democratic. we have a point in terms of the actual vote. but is that race baiting? is it something a president should avoid doing? >> no. i think last week we were talking about all over the media, we were talking about polls that specifically targeted voters based on race. and we talked about the african voters in america. megyn: 91% support. >> exactly. for the president to respond to that. there are those on the right saying the youth isn't going to vote. the black votes will stay home. the president was just responding to the not only the attacks by the right. but the poll number as well. megyn: speak to the other charges. the overall theme of desperation by the white house. the black folks -- the republicans don't want you. by the way, karl rove and ed gillespie, and the chamber of commerce be they are evil. this is the narrative coming out of the president's mouth three weeks before the election? >> this is politics. i still shear bill clinton being blamed for our economy today in 2010. it's very typical. it's very typical for those on the right to blame the left. and those on the left to blame the right. what the president is trying to show is it's not all his fault, it's not all liberal democrats' fault, he's just throwing the mud back across the aisle. it is effective. megyn: he was blaming president bush for the economy and john boehner. but the attacks have shifted. he's not saying karl rove or the chamber of commerce are to blame. he's saying -- he's staying away from the economy. he's saying these guys are pumping money into tease elections. we deserve to know who's behind every dollar. >> which is crazy coming from a guy who spent hundreds of millions of dollars to get elected. you notice last night the president dropped his accusations against the u.s. chamber of commerce. he left them out of his speeches in the last 24-hour news cycle. this is the guy who had to turn back money that came from hamas members to his campaign. for him to be making these accusations is wrong. to suggest somehow the republicans are wrong because of the source of their money, baloney. megyn: maybe the president didn't mention the last 24 hours, but the vice president did. specifically suggesting the chamber of commerce is using foreign funds to pay for election ads, which is a crime. in a criminal courtroom you have to have probable cause to make such an allegation. yet they throw it -- the vice president of the united states throws it out there and asks the chamber to come forward and profit's wrong. the chamber said it's absolutely wrong. the "new york times." what is your take on it? do you think this is right? >> first all, megyn, great interview with the vice president of the chamber earlier. one of the things you asked as an attorney. show the proof. and here is the problem. in my opinion. if these allegations are false, wherere is the lawsuit? we don't see that. yes, they don't have the response. >> you have to file a lawsuit to move it's not true? >> if someone is going to make false accusations about me i might consider suing them because they are wrong. how can you check the facts when you don't have the list of hot donors are? we know that at least over $100,000 to 115 foreign-based companies do give money to the chamber. megyn: how do you know the money that goes to the unions doesn't come from foreign entities. how do we know anything? how do we know anything? can you really just throw it out there like it could be. now, you need to spend all your time and money defending my company be akiewf sayings. >> i'm not kissing anything just like leslie. leslie should pay attention. half of the afl-cio is made up of foreign unions. you could say half of their contributions to american political campaigns must be foreign money. these oceans know how to segregate funds. megyn: the law requires it. you raise an interesting issue about the lawsuit. i was thinking about doing this on "kelly's court." thank you so much. coming up at top of the hour. "studio b" with shepard smith. shep: we have a mine expert on to talk about how difficult it will be to get all of these guys out of that mine. imagine being the last one left down there after 32 friends have left. the 42 states attorneys general considering suing over mort gangs. would your family be affected? megyn: a couple harasses a dying 7-year-old girl. taunting her about her dead mother and her own illness. listen. >> they don't care about anybody. i have never met people that had no heart. she'd told she she was the devil. she has no sympathy or empathy for anything. megyn: is it criminal? a powerful "kelly's court" after this break. click on our on the docket section. you can read up on the facts of this case before the gavel drops next. [ man ] then try this. new and improved freestyle lite® blood glucose test strip. sure, but it's not gonna- [ bp ] wow. [ man ] yeah, that's the patented eestyle zipwik™ design. 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[ man ] freestyle lite te strs. activia is better than ever! hey, you guys. want to try activia's great new taste? isn't this the yogurt that, you know... helps regulate your digestive system. ooh, i think i'll pass. no, no, no! trust me. it is beyond tasty. mmm! wow! i can't believe it, i love it! mmm, this is really good! new best tasting activia ever! ♪ activia now you can join the fight against breast cancer every time you enjoy an activia. give hope with every cup of activia. test megyn: "kelly's court" is back in session. cruel and unusual punishment for a dying little girl caught in the crossfire of a backyard dispute. she is slowly succumbing to huntington's disease following her mother and grandfather. all the while, their neighbors have been torments this little girl, driving a black truck up and down the street with a coffin on the back posting pictures like this one of her and her mother on facebook. this is the child's face above cross bones as if she is a skull. her mother died at age 24 from this disease. this is what the couple does for them. apparently all this rift began with a problem that the couple has with little kathleen's grandmother. >> what do you accomplish with a deceased mother and the grim reaper and the daughter fighting an illness with the skull and cross bones. >> personal satisfaction because it [bleep]. [bleep]. it makes fun of their dead daughter on that page. >> that sounds sick. >> take it or leave it. megyn: nice. what are the criminal possibilities here? and the civil lawsuit possibilities? joey jackson and defense attorney mark eiglarsh. she has since come out and apologized, mark, and i'm sure the apology is sincere. you can see what kind of a person we are dealing with here. >> i saw the apology and it wasn't from her, it was from the husband. he was apologizing over after the home had been terrorized with eggs, threatening messages and phone calls and a visit from police. i question the sincerity. unfortunately michigan has yet to catch up with the technology. they don't have a cyber bullying statute. they have a bullying statute and stalking. using a computer to exit those offenses could elevate it to a felony. megyn: is it a crime? is it stalk or bullying because the woman posted those pictures on her own facebook page. it's not like she sent them to the little girl or posted them on the family doorstep. is it different when you do it sort of in your own face? >> what happened here was abhorrent and outrageous. it shouldn't have happened. the question here is not whether the conduct was side, offensive and abhorrent. the question is whether it rises to the level of a criminal offense. unfortunately it does not. it was not intent here. we have to look at the element of intent. there was intent. but let me be clear. the intent was not to frighten or intimidate. the intent was to be obnoxious, cruel and mean spirited. megyn: how do you get to the personal intent. it burns the grant mother's you have know what. how do you make a stalking days against them? she posted two pictures and drove up and down the street. it's too sick to understand with coffins all over their truck trying to taunt the child to the point where the father had to get a restraining order. can you call it stalking? >> i would make the case for ma lastment and stalking. you mention stalking. look at the statute. would a reasonable person feel terrorized, ma lasted? a 7-year-old who has to go outside her house and see them parading that could fin around knowing she only has days to live on this earth? i think it's a clear-cut case. megyn: one thing if it's the online pictures which are vial. but to drive up to their house, rev up the engine and say to the little girl i can't wait until you die. you are telling me the law protects that? >> let me be clear. this is abhorrent conduct that should not happen. it's outrageous. i have to tell you this. we are talking about the first amendment and protection. this is a matter of expression. when you are expressing -- stalk is are you following her, is she going everywhere this person is going. is she turning the corner? they made a coffin which was bad judgment. bit doesn't rise to the level of stalking. there is nothing criminal about it. megyn: i want to show the viewers the woman's apology with her husband. >> if i had it to do all over again i wouldn't do it. if you have been hurt there is not much more i can say. hopefully we can live our lives more peacefully from now on. megyn: does that do it? he says he's going to paint the truck now. >> i don't think that does it. i'm pleased her therapist helped her out and she is taking her meds if she is. but a civil case for understand application of emotional distress. megyn: this couple may be guilty of stalking. here is what their names are. roll it. scott and jennifer petcoff. we'll be right back. megyn: big news out of hollywood, a high-powered super couple, courtney cox and david arquette announcing their separation. now details are coming out about why. >> reporter: last weekday individual arquette was taking pictures, posting them on the web. people say said they were shocked they were separating. the couple says the separation goes back a while. radar online says courtney cox, our beloved monica from friends, is having an affair. having an affair with her hunky cougartown costarr, that guy on the right. apparent live he pulled up the limo to the set one night and mr. home wrecker walked and said she'll not be taking that car, she'll be going home with me. and therein lies -- where was chandler bing during this whole thing? megyn: you want to blame it all on courtney cox. i have seen reports saying he was the most faithful husband. he has been seen out there with some bartender. >> reporter: i saw that, too, it doesn't make the story as interesting. megyn: for you. you have been in hollywood too long. it's sad. i thought they were going to make it. >> reporter: 11 years in hollywood, it was like joanne woodward, it was 11 years. megyn: thanks, trace captioning made possible by fox news network she felt lost... until the combination of three good probiotics in phillips' colon health defended against the bad gas, diarrhea and constipation. ...and? it helped balance her lon. oh, now that's t best part. i love your work. [ female announcer ] phillips' colon health. i love your work. mmmmmm. mmmmmm. wow! you have got to be kidding me. 80 calories? light & fit has 80 calories versus 100 in the other leading brand. light & fit. irresistible taste. fewer calories. i love light & fit. [ man ] then try this. new and improved freestyle lite® blood glucose test strip. sure, but it's not gonna- [ bp ] wow. [ man ] yeah, that's the patented eestyle zipwik™ design. [ woman ] did it just -- ta the blood? target the blood? yeah, it drew it right in. the test starts fast. you need just a third the blood of onetouch®. that is different. so freestyle lite test strips make testing... [ man ] easy? easy. [ man ] greatcall or click -- we'll send you strips and a meter, free. fr is good. [ man ] freestyle lite te strs. call or click today. >>megyn: thank you for watching. we with love your thoughts on the show by e-mail on twitter and