beanbag gun. now new questions in the fed policy when it comes to facing down armed drug gangs right here in america. trace gallagher is in our west coast newsroom. trace? >> reporter: using beanbags is not an across-the-board policy. these agents are armed with several weapons, some lethal, some not. and the orders are given on a case-by-case basis. these border patrol agents were told to use nonlethal force. the question is -- why? court records show that they knew that these suspected illegals were carrying rifles. they expected this group of cartel enforcers that had robbed, raped and assaulted other illegals. they knew they were dangerous and yet they fired beanbags against what turned out to be semiautomatic weapons. when called the border patrol. they said the f.b.i. is handling it. the f.b.i. said they're not commenting because it's an ongoing investigation. five suspects, as you know, were arrested. could this day, 10 weeks later, not a single suspect has been charged. brian terry's mom told william lajeunesse that there were eight suspects. >> the eight came down the trail. >> reporter: bandits with ak-47s and one of those traced back to a gun store in phoenix. the feds were notified about that sale. iowa senator chuck grassley claims that federal agents are ignoring small-time gun runners, hoping it will lead to the big-time gun runners and lead to the cartel. now there's been an investigation launched to find out how federal agents are tracking these weapons moving south of the border, megyn. a bunch of new questions mounting in the case. the answers are slowly trickling out. we'll keep digging. megyn: all right, trace. thank you. brian terry's brother, who is furious over the details about the murder, will join me live at the top of our next hour. his name is kent terry. and we'll ask him what he wants done after hearing this report. fox news alert coming in. we're getting new video of violent clashes from the libyan town of zawiyah. megyn: look at that. forces loyal to moammar qaddafi opening fire on protesters. our sister network, sky news, reporting that dozens of civilians were killed there. you can see some folks on the ground in the pictures. and we're getting reports that qaddafi supporters are shooting live ammo at some 2,000 in the capital of tripoli. that's about 30 miles from this location here. jonathan hunt is streaming live from the border between libya and tunisia. jonathan? >> reporter: this was always going to be a volatile day in libya. it's, of course, friday, the traditional muslim day of prayer and what has become in this revolution sweeping across north africa and the middle east, a day of protest. to that effect, something like 1,500 to 2,000 protesters streamed out of the mosques in tripoli and were met by pro-qaddafi forces, first firing tearing gas. then there are reports that they fired live ammunition either at protesters or into the air. getting accurate information from these situations is obviously very difficult with the restrictions placed on foreign reporters in tripoli. it does appear that the pro-qaddafi supporters have had some success in dispersing the protesters. in zawiyah, gateway to the west, protesters there have been trying to take some town. they had some control there, but we're hearing now that the pro-qaddafi forces have pushed the protesters back to just the central square in zawiyah. it's a hard push foreward by the pro-qaddafi forces, the army, the mercinaries, seem determined to retake zawiyah. if they did that, it would be extremely symbolic. the protesters, the rebels, say they will fight to the very end, but it appears that for some of those, the end may be coming. this is a very determined unit. we understand that it is the elite brigade of the qaddafi army moving in there. interestingly, that brigade is named after and commanded by one of colonel qaddafi's sons. clearly, qaddafi decided that zawiyah is critical. it's a crucial battle being fought right now. megyn? megyn: unbelievable. jonathan hunt, thank you so much. doing great reporting over that all week. thank you. new details emerging about wednesday's deadly attack on u.s. airmen in frankfurt, germany. the 21-year-old suspect has confessed he was seeking revenge for u.s. military operations in afghanistan. prosecutors also confirm today that the pistol used in the attack jammed with six rounds left, likely preventing more deaths. here at home, the obama administration's refusal to call it a terrorist attack is stirring controversy. last night, charles krauthammer called the president's response demoralizing. >> clearly this was a jihadist attack. and the fact that when the president spoke yesterday about it he talked about it as if it was a bus accident, a tragedy. it's incomprehensible why he cannot say out loud that it could have been a jihadist attack, part of the war on terror. this was an attack on the american military abroad, an attack on our country, act of war by a terrorist enemy. megyn: we're also learning today the names of the fallen airmen. 25-year-old nicholas alden of south carolina and 21-year-old airman first class of virginia. secretary of state hillary clinton speaking out in the last couple of hours on the case of a retired f.b.i. agent that disappeared in iran four years ago. brand-new evidence emerging that robert levinson is alive and being held in southwest asia. secretary clinton appealing to iran to help bring levinson home to his family. >> what is important is that we work to bring bob levinson home safely to his family in florida. his family misses him dearly. he does have medical issues and we continue to welcome any help that the iranian government can provide in determining mr. levinson's welfare and whereabouts. megyn: catherine herridge live with more. >> reporter: thank you, megyn. the a.p. is reporting that the family got confirmation of life and they were asked to hold that. >> reporter: the family is not giving interviews either, but they released a brief statement reading -- >> reporter: now we investigated levinson's disappearance in 2007. he had retired from the bureau and was working as a private investigator. we don't know what levinson was doing or why he disappeared so suddenly, but cigarette smoking has been a vehicle for terrorist financing and he was apparently investigating that. we don't know if he was taken hostage by the iranians. one of the interesting things from our investigation in 2007, is that on kish, he was having a meeting with an islamic convert. he told the u.s. that he had met with him and that after that, levinson disappeared from the hotel. after so many years of silence, we're having a chorus of very public responses from the secretary of state and also from the f.b.i. so it's very senior in the administration. megyn: it will be a fascinating debrief if we get him back into american custody. catherine herridge, thank you. >> reporter: you're welcome. megyn: a very important voice in the housing industry says that housing prices could soon tumble again and how. we're talking about a big drop. that's in 3 minutes, right after this break. protests in berkeley, california, getting ugly. we'll show you why the riot squad had to come out. a case of alleged bullying on a school bus ends with the parents storming on to that bus, they say, to protect their daughter. did they go too far or did the school not do enough to protect this child? it's a powerful "kelly's court." >> they were yelling kick her [beep]. of course, we're going to get on there and save our daughter. we're not going to let it happen. the bus driver even hit her. what can you do with plain mashed potatoes? when you pour chunky beef with country vegetable soup over it, you can do dinner. 4 minutes, around 4 bucks. campbell's chunky. it's amazing what soup can do.™ yeah, it's me, big brother. put the remote down and listen. [ male announcer ] this intervention brought to you by niaspan. so you cut back on the cheeseburgers and stopped using your exercise bike as a coat rack. that's it? you're done? i don't think so. you told me your doctor's worried about plaque clogging your arteries -- what did he call it... coronary artery disease. that cholesterol medicine he also wants you on -- niaspan? i looked it up online. hey, pete, you waiting for an engraved invitation? [ male announcer ] if you have high cholesterol and coronary artery disease, and diet and exercise are not enough, niaspan, along with diet and a bile acid-binding resin, is fda-approved not only to slow down plaque buildup but to actually help clear some of it away. pete, as kids, i always looked up to you. now, i'm just trying to look after you. [ male announcer ] if you cannot afford your medication, call 1-877-niaspan. niaspan is not for everyone, like people with stomach ulcers, liver, or serious bleeding problems. severe liver damage can occur when switching to niaspan from immediate-release niacin. blood tests are needed to check for liver problems. tell your doctor if you have muscle pain or weakness; this could be a sign of serious side effects; this risk can increase with statin use. tell your doctor about alcohol use, if you've ever had gout, or are diabetic and experience increases in blood sugar. flushing, a common side effect, is warmth, redness, itching, or tingling of the skin. ask your doctor about niaspan. fight back. fight plaque. niaspan. megyn: like a scene out of the 1960s, protests at the university of california berkeley campus got crazy yesterday. students there on a ledge, literally, chained together for several hours. look at this picture. the group among 100 demonstrators protesting budget cuts to higher education. they got rowdy enough that when the police showed up, they had to get out the riot gear and use pepper spray to break up the crowd. eight students were charged with trespassing. this next story is sure to churn the stomach of any homeowner, but it may give you some comfort if you are a potential homebuyer. the yale economist behind a key housing price index is saying that it could get a whole lot worse. robert schiller warning that we could see a new drop in home prices, as much as a 25% drop from where the prices are now, which is already low. eric bolling joins us. this guy's the real deal. >> he is. megyn: he's calling it a substantial risk of home prices falling around 10% to 15%. >> you have to take it seriously. we've seen a 25% drop from the top 2007 numbers -- talking 30% to 40%. megyn: i thought we bottomed out. >> we've been calling for this for a long time. the first half of 2011, the foreclosure market would be the highest, the most amount of foreclosures in history. so you put those foreclosed homes on a market that had a high inventory already, so prices will go down. megyn: because the foreclosed upon homes are driving them down. >> 100% right. the foreclosed price drives the price down and it adds more homes on the market. there are plenty of homes out there. real estate developers need to stop developing right now if they want prices to rebound. the next six months, homebuyers' dream. these are great opportunities. megyn: shouldn't you wait a little bit more if he says it will go down 25% further? dean baker, co-director for economic policy research said, "i agree that it will go down again 10% to 15%, but wait about another year to buy." >> you are speculating on real estate. my point is not to speculate. if you have been waiting to upgrade, your family's expanded, you are in a rental and looking to buy, not a bad time looking around and get very, very aggressive on price. megyn: if you want to buy now, you need to be prepared it stay in your house for five years. >> forget the flip market. and forget the stock market right now, too many crazy things going on, the national debt, gas prices, prices for food could be going up. don't speculate in this, bub if you are in the market and needing it, not a bad time to look. megyn: some stable areas include texas and the midwest. other markets like seattle, portland, inland california and elsewhere, will still fall. why are they -- and florida's hit hard. >> because they ran up the most the last 15 to 20 years. they may have more room to drop before they bottom out and go forward. if you are in it five, 10, 15 years, great time. if you are going to speculate, i would look in other areas. megyn: when you hear this forecast from robert schiller, does it change your view of what was floated out there, i believe "the wall street journal," suggesting that the obama administration was considering a plan to bail out people who are under water on their mortgages, but the question was, who would be bailed out? only the most irresponsible folks that are not paying on the mortgages or everybody under their on their mortgages? >> the programs haven't worked. the program that was out there spending $75 billion helping mortgage mitigation problems. they only used $1 billion. there were so many rules and regulations attached, it didn't help a bit. bottom line, the reason why the home market is so bad right now is banks still are not taking the risk on lending money. they make their money handily. pay borrow it at zero and sell it become at treshries, 2% to 3%. they're making money on your money. megyn: they learned their lesson. it was lend, lend, lend. >> maybe when we stop giving them free man to sell back to us at 2% to 3%, then maybe they will give us home loans. megyn: very interesting. 25% drop. that would hurt. thank you, sir. >> thanks, megyn. megyn: it hurts on the selling front, not the buying front. you can catch "follow the money" monday through friday 9:00 eastern, except thursdays, when it's at 10:00. congress and the white house battling over billions while running trillion deficits. wait until you see the arguments to find a mess. immigration agent unarmed when he was shot down in cold blood. how did president obama miss a chance to put guns in the hands of americans working inside mexico, trying to help mexico? answers to that moments away. a baby born with his umbilical cord wrapped around his throat getting a second chance at life. his incredible story coming up. >> he was shivering. they were trying to cool his temperature down. couldn't quite reach the 34 degrees they needed. [ male announcer ] this is lara. her morng begins with arthritis pain. that's a coffee and two pills. the afternoon to begins with more pain and more pills. thevening guests arrive. back to sore knees. back to more pills. the day is done but hang on... her doctor recommended aleve. just 2 pills can keep arthritis pain away all day with fewer pills than tylenol. this is lara who chose 2 aleve and fewer pills for a day free of pain. and get the all day pain relief of aleve in liquid gels. megyn: well, the battle over the budget getting bizarre. vice president joe biden now spearheading the efforts to try to get republicans and democrats on the same page so we can have a budget for 2011. the democrats claim there's been big progress, saying they've met the g.o.p. halfway on the g.o.p.'s proposed spending cuts. republicans want $60 billion in cuts. the democrats are proposing $30? no. actually, $6. hmm. alan colmes is host of "the alan colmes show." all right. $6 billion is about 10%. it's not halfway. >> they're complaining that -- they set the bar so high because it's only 6. that's with the they're complaining about. megyn: they say they met the republicans halfway and the republicans proposed $61 billion of cuts. >> i don't know. we can beat them up about it. i don't know what private conversations are going on. i'm sure there are private conversations that we don't know about. those are the -- megyn: i don't think so. the reason i know is because i watch "special report with bret baier," which you should do -- >> i do. megyn: not you but the other people. this is how they got to this mess. apparently the democrats are using as a baseline for the cuts the president's never-enacted 2011 proposed budget. president obama said, i would like the budget to be this. that never got enacted. now they're coming down $40 billion and they're calling it as cuts. they're not spending cuts. >> it's called negotiations. megyn: but are they spending cuts? >> the republicans say, no, we don't want that budget. it's a negotiation based on the white house proposal of the money they wanted enacted. megyn: cutting it from the wish list of the proposed budget is not a spending cut. >> no. it's an negotiation on what the budget should be. megyn: what the american people care about is, what are they cutting? >> to have the republicans posture about cuts when john boehner was rejected on that -- megyn: i will let you rip on john boehner in a second. >> it's disengenuous for them to act as if they care about cuts. megyn: now the democrats are being criticized as being dishonest. >> they're being criticized by right-wing bloggers. megyn: and the press. even the press has come out -- not even just the right wing press. >> it's a senseless argument. it will wind up a compromise between what the president suggested and republicans are clamming. neither side has come up with specifics. megyn: some people are upset about the $61 billion, but $6.5 billion, will that get us there? does it worry you? >> neither side has come up. john boehner said, i will cut medicare and social security and then said, there are no details. where is the republican plan? megyn: where is the democrat plan? >> it's in the presidential white house budget presented last month. megyn: the detail plan for cuts? >> the plan is in the cut -- neither has come forth. rand paul has -- megyn: he wants to cut $660 billion. the latest "wall street journal"/nbc poll, do you worry about the democrats will go far enough in making cuts, 63% said they will not go far enough. >> except when you ask them what they cut, not medicare, not social security, and john boehner said that's what he will cut. megyn: that's true, but i have to go because they're wrapping, but i want to ask you this. the g.a.o. said, we have $100 billion to $200 billion of waste that we've identified. why don't we start there? >> lets start there. we agree on that. we've solved the problem and i love the world duplicative. megyn: thank you, sir. have a great weekend. ambushed and unarmed. a u.s. i.c.e. agent murdered in the line of duty. he was gunned down by members of a ruthless drug cartel. how did president obama miss a chance to arm our agents on the frontlines when he was meeting with the president? and a country is threatening to boycott 2012 because what they say is a secret message in this logo. and a simple car crash leads to a shocking discovery. why was the driver armed to the teeth and who was his target? ?r i was coming out of my house with my dog and i heard four rounds go off. it sounded like a .9-millimeter. i put the dog back in the house. as i epped back out of the house, i heard a woman scream, he's shot, he's shot. theres with a man down. 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[ female announcer ] plavix is not for everyone. certain genetic factors and some medicines such as prilosec reduce the effect of plavix leaving you at greater risk for heart attack and stroke. your doctor may use getic tests to determine treatment. don't stop taking plavix without talking to your doctor as your risk of heart attack or stroke may increase. people with stomach ulcers or conditions that cause bleeding should not use plavix. taking plavix alone or with some other medicines, including aspirin, may increase bleeding risk, which can potentially be life threatening, so tell your doctor when planning surgery. tell your doctor all medicines you take, including aspirin, especially if you've had a stroke. if fever, unexplained weakness or confusion develops, tell your doctor promptly. these may be signs of ttp, a re but potentially life-threatening condition, reported sometimes less than two weeks after starting plavix. megyn: new details emerging in a bizarre case of a car accident that turned into a deadly shootout. investigators say a man shot and killed by police in new york was packing enough guns and ammo to commit murder on a mass scale. inside the shooter's truck, a shocking array of weaponry. what was he planning? who exactly was he targeting? trace gallagher has the latest from the breaking news desk. t.g. >> reporter: it began as a minor car crash. it was a truck into a utility pole and the ambulance arrived and the paramedics got out to help the driver and the driver opened fire on the paramedics, unleashing eight rounds, hitting one of the medics. the police arrived on scene and then the gunman threatened the police. they opened fire, shot and killed the suspect. that gunman's rifle had a laser scope on it, giving him pinpoint accuracy. he also had five other weapons inside the car. we're talking about a long-barreled rifle on his lap, semiautomatic in his pocket, semiautomatic behind the passenger seat, and wristbands that were loaded down with extra ammunition so he could access them quicker. police believe a mass killing was imminent. listen. >> none of us expect when they come to the aid of someone at an accident to be fired upon by a man that was armed to commit mayhem somewhere in this county. >> reporter: nassau county just outside of new york city. they don't know if he was going -- or where he was going to unleash this madness. we've learned that the suspect's name is jason beller, 31 years old from florida. all he has for a past criminal record is petty theft charges. the medic who was wounded is supposed to be fine and the family of the medic is now -- the family of the suspect is now apologizing to the medic and his family. megyn: oh, boy. trace, thank you. even after meeting with the president of mexico yesterday, president obama is rejecting the idea of arming u.s. agents south of the border, this despite the killing of jaime zapata three weeks ago. they were ambushed in northern mexico and they were unarmed. their attackers, fully loaded. they didn't stand a chance. critics are asking why the president isn't doing more to protect agents like agent zapata. chris plant and bernard whitman join me now. thanks for being here. there had been a suggestion that president obama might press felipe calderon for a revised policy, to let our agents carry weapons south of the border when we're helping mexico, but he didn't do it. president obama said, it's not going to happen. we'll look at protocols and revise procedures, but no guns for our agents south of the border. >> unfortunately, it's consistent with this administration's approach to almost everything. with our one-hand-tied-behind-the-back rules in afghanistan, i'm not surprised about mexico when the body count is shocking. in juarez alone, 6,800 killed in the last two years and we're spending our people in the middle of it. we're not asking them to be brave. we're asking them to do something irrational. it's essentially a war. they've unleashed the military in mefm he can to deal with this problem of the cartels. the cartels are using ak-47s. and we're sending our guys in without so much as a .9-millimeter semiautomatic handgun just to protect themselves. if we cannot protect our own law enforcement officials with firearms, what are we doing? megyn: we're helping them. it's not like there's a real danger of u.s. agents unleashing on mexican law enforcement. we're helping them. why not arm them? >> i agree. first and foremost, my thoughts and prayers go out to agent zapata's family. let's deal with the case in point. the situation in mexico is a disaster. 34,000 dead in four years. we need to be there helping the mexicans. they can't do it on their own. the supply is down there and demand is here, so i think we have a responsibility to do that. having said that, i believe that in these situations where there is so much risk and potential harm, we have to create exceptions. most countries wouldn't want law enforcement agencies to have weapons, but certain exceptions need to be made. they're being made in guatemala, some d.e.a. agents can have weapons. in one year, because they're allowed to engage in big operations where they needed to protect themselves, they cut the number of drug smuggling by light aircraft 90%. megyn: interesting point. i need a quick answer, but i have to ask you, a, would you go down there to help unarmed? and, b, i know our guys are there in an advisory capacity, but it's a dangerous place. once the mexican drug cartels know our guys are armed, does the violence against them go up? >> what we've announced to them so that we're not armed and not going to be armed. one has been killed. there's blood in the water. it is mayhem down there. and to send our people unarmed is beyond bravery. it goes into foolishness. megyn: why can't president obama bending on this? >> in the larger context of the mexican relationship, he wasn't willing to take it on. we signed an accord to increase trucking and help grow jobs -- megyn: we should have used it as a hammer. >> i agree. he should have said, we have to create some special exceptions. it will not be broad. it will not be large, but our agents need to protect themselves. megyn: he said they're looking at procedures and protocols. gentlemen, thank you. >> thank you. >> thank you. megyn: huge jump in oil and gas prices are soaring along with it. 14 cents a gallon, up again in new jersey, just today. in a bit, dana parino on why the administration is getting a pass, but president bush got hammered on this issue a few years ago. eryone will know out all r great discounts. safe driver, online, homeowner's -- more discounts than ever before. and they still get great service. ♪ ow! 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[ male announcer ] if you have gout, ask youroctor about uloric. megyn: actor charlie sheen's life seems to be unraveling before our eyes this week, and many have been quick to blame him. we want to get some perspective from a man who has lived in hollywood's fast lane and changed his ways completely. i spoke with actor and born-again christian steven baldwin and asked him, is charlie sheen entirely to blame for this or does hollywood bear some responsibility? >> to a degree, it's not his fault. if you have an addictive personality to begin with, and you get into an industry that breeds this -- megyn: how does it breed that? >> just self-aggrandizement, pat you on the back, the alcohol, the drugs, money, power. it's unfortunate. i've been saying all along, isn't it sad that he's now -- he may have millions of dollars in cash in the house and no one can stop him now. and it's just like watching a car go off a cliff and there's nothing you can do. megyn: you are obviously a famous actor. alec is hugely famous. he would have the same platform that charlie sheen has now if he wanted to go out and make a point. he could get everybody to listen to him. that's how famous he is. you never see somebody who is that famous put themselves this out there when they're this fragile. >> right. well, i think you are starting to see a lot of the people jump ship now, which is, again, totally unfortunate. charlie suffers from the disease of addiction, alcoholism, call it what you want. within that world, it's terminal uniqueness. winning. i'm right. you're wrong. megyn: adonis d.n.a. >> the boys upstairs are talking to charlie saying, do the interviews, you're right. i love the guy and i'm praying for him, honestly. and some people may mock that, but it's one of the things where, literally, within the 12-step experience they say once you've had a spiritual experience as a result of certain things you are supposed to do, then you are able one day at a time to go on and have healthy sobriety. megyn: doesn't seem like he's there. in your book, you talk openly about how you, too, did some drugs, drank a lot of alcohol, living that fast and loose life. >> broad word there with some. megyn: so a lot of drugs. >> yeah. megyn: how did you not wind up where he is? >> i got to a place -- first of all, i'm with the same woman now 23 years later, 22 years of sobriety, but married to the same woman. that was part of it. i had thought been honest with her and disappeared for three days, blah, blah, blah. but the bottom line is, i got sick and tired of being sick and tired and said to myself, similar my walk of faith, how do i get into this program of sobriety and do it the way you are supposed to? megyn: do you think he's beyond that because he's been to rehab so many times? >> i don't believe anybody's beyond it. i think that god is great and god does miracles every day. and i think if enough people that really loved him enough were to stand up to him -- megyn: but it sounds likes they have. martin sheen has not contacted him. i'm guessing maybe there was an intervention and the family said, you get help or we cut you off. that's what you are supposed to do. when you have that kind of fame and the money, it could be a bad thing for an addict because there is no rock bottom. how do you hit rock bottom? >> we're clearly seeing a worse-case scenario. this guy has more money than -- whoeever. who knows. even way before he had all this money and "two and a half men" fame and power, charlie was charlie. i won't give up hope on this guy. i think absolutely -- the sad part is, on the ascention of who he is now materialistickally in hollywood, it seems likes enough of the people that were closest to him that were benefiting from it allowed it to continue to a point where now it's beyond control, seemingly. i've seen guys far worse than this turn it around. so i will keep the faith. megyn: good. we'll leave it on that note. stephen baldwin, a pleasure, sir. >> thanks. megyn: good for him. that guy right there is an example of how to turn your life around. he's had a 180, thanks in part to the love of a good woman. good for them. a northwestern university professor decides that class time is a good time to have a couple perform sex acts in front of the students. is this where your tuition is going? this baby almost didn't make it after almost choking on his umbilical cord. an incredible story of how doctors saved his life by freezing this little being. plus, new details on our top story. we're learning that border agent brian terry was armed only with a beanbag gun when he came face to face with drug cartels. his family is with us live at the top of the hour. megyn: well, iran is now threatening to boycott the 2012 olympic games because of a logo. take a look at this. here is the offending image. iran argues it's secretly meant to spell the word zion, a biblical term referring to the city of jerusalem. london organizers say they're surprised by the fuss. do you see zion here? we report. you decide. as if iran doesn't have enough to worry about. a remarkable medical breakthrough today giving a baby in the u.k. a second chance at life. doctors therapeutically freezing this baby for three days to save him from severe, debilitating brain damage. trace gallagher has his amazing story from our west coast newsroom. >> reporter: this treatment was inspired by hikers that go out and freeze to death and are revived or kids that fall in icy water and they're revived. jamie was born with his umbilical cord on his neck. it stopped him from breathing and it caused brain damage. so the doctors put him on a mat that uses cooling fluid like what's in your car. the baby's temperature is adjusted down to between 91 and 93 degrees. normal is 98.6. for three days, megyn, he's on this mat. even had to open up the windows because the mat wasn't getting cold enough. listen to his mom. >> he was shivering. and they were desperately trying to cool him down because he couldn't quite reach 34 degrees that he needed. so they got the windows open. within a few hours, he was down to the perfect temperature and seemed settled. >> reporter: in case you are wondering, by the way, 34 is celsius, not fahrenheit. they were lowering his metabolism, helping his brain suffer less brain damage. the baby saoenlz to be doing fine, but doctors and knowledge it will be a while before they know what the damage was. megyn: well, god bless. seems like they helped him. hopefully it turns out well. trace, thanks. >> reporter: okay. megyn: the brother of a murder border agent is outraged after getting confirmation that brian terry was carrying only a beanbag gun while drug runners were heavily armed. agent terry's grieving brother joins us in the next hour. this happened in arizona. beanbag gun only? why? why the ax could soon fall for thousands of workers at the state at the center of union protests. an update from wisconsin. and the therapist who claims she puts her patients, mostly male, at ease by stripping naked during her therapy sessions. power panel. can't pass that one up. megyn: fox news alert. word out of wisconsin that the pink slips are going out for 1,500 state jobs this afternoon. that may be just the start. right now a high-stakes game of chicken continues with real consequences playing out in madison. up to 12,000 state workers total are bracing for pink slips because of the budget impasse between the governor and state senate democrats. governor walker warned he would finish ewing layoff notices up to 1,500 of them if none of those democrats returned from their height cloud in illinois. doug has the latest on this one. >> reporter: the day love notices would not take effect for 31 days. the standoff in wisconsin with legislators hiding out to avoid a quorum is not the first time it happened. it happened in washington in 1988. senator bob packwood was literally dragged feet first into the senate chambers after harry bird ordered his arrest. the wisconsin constitution says now each house may compel the attend dafns absent members in such manner and under such penalties as each house may provide. but law enforcement cannot enforce wisconsin state laws or rules without the assistance of said states. that leaves the governor with limited options. >> to try and find an alternative way to compel some of those senators to come back that doesn't involve legal means. >> reporter: the biggest club the republicans hold is the threat of layoffs. the notices beginning today. that and the fients the democratic lawmakers are incurring every day. the republicans have one other tool. they stopped direct deposit's of their paychecks into their bank accounts. they have to show up to the capitol to get their checks. one gave power of aattorney to a staffer by was rebuffed. megyn: the republican state speaker inee wants three weeks hearings on its collective bargaining rule. this push by a gop house member would delay any action on this legislation until late march. it would chew up more time than john kasich would like. it narrowly bassed the state senate by one vote. it is expected to pass the statehouse when that vote takes place it would bar public state workers from strike and curb their union's bargaining rights. fox news alert. brand-new video in the life and death battle a little baby is facing in canada, now getting worldwide attention. the family gave up this tape showing baby joseph attached to a breathing machine. a medical professional looking at the tape could see baby joseph is breathing on his own. this is the claim of the family. they say that hospital is trying to keep this under wraps. fox news not able to independently confirm this. rallies are planned this weekend in support of baby joseph's life and his parents efforts to keep the baby alive long enough to die at home and not in a hospital bed. dramatic new developments in the murder of a bored pear troll agent. agent brian terry was shot in the back and killed during a shootout on the arizona border back in december pech and his team confronted a group of illegal immigrants who were packing ak-47s. agent terry armed with only a bean bag gun. his brother joins us. your reaction to this news that while facing illegals with ak-47s, your brother's weapon was a bean bag gun. >> that's my understanding. there was a group of four guys with my brother. two had lethal and two had non-lethal weapons there. megyn: do you know why? has there been any explanation provided to you? >> i have gone the nothing from the fbi or the atf about anything about the investigation. not one phone call to my family at all. megyn: unbelievable. we are told it's been reported to us that the team out there, the four-member team was understand standing orders to use non-lethal bean bag rounds first before resorting to live ammunition. in this case the smugglers heard the first rounds which were the bean bags and they returned fire with real bullets, taking the life of your brother. does this policy make any sense to you? >> no sense at all. these guys are trained professionals that go out there every day. they can't even see 100 feet in front of themselves. to go out there with bean bags, it makes no sense at all. the policy needs to change. these guise are professionals and they can use their best judgment. megyn: the other three guys with your brother, have they spoken to you about the instructions they had when it came to the use of bean bag guns or actual guns? >> no, they have not. i haven't heard nothing since this incident happened. megyn: you have heard nothing from the u.s. government, not even a condolence call. >> no, not at all. nothing to help us out at all. the only thing we got was from the border patrol, we got help from them. they are an outstanding group of people. but other than that, nothing. megyn: this is a story that caught national attention. it's not like the situation in mexico with the ice agent. this is on u.s. territory. here in the u.s. we do tend to arm our law enforcement agents with firearms, except not in this case. brian terry is dead, murdered by drug smugglers in arizona. all the best to you and your family. the price of oil and gas skyrocketing today. why are we not hearing the kind of complaints we heard back in 2006 when president bush was getting hammered. well, we are starting to in three minutes. dana perino with what she thinks is going on here. first they thought she weighed too much. now that she has slimmed down her critics are on the attack again. wait until you hear her latest gripe. parents confront bullies who have been tormenting their daughter for two years on the school bus and it proments an all-out response from police. are the parents to blame or is the school in "kelly's court." >> they are yelling at my daughter. they were yelling [bleep]. of course we are going to get on to save our daughter. we are not just going to let it happen. who's your someone? 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[ male announcer ] ask your doctor about adding niaspan. fight back. fight plaque. love you, daddy. megyn: new child custody con sentence for charlie sheen. actress denise richards says she is disgusted with the way her ex is living and believes he puts her two daughters at risk. >> reporter: when did you get that? >> with a couple f-18 pie lose, watching "apocalypse." radical. megyn: he's in a battle with his ex-wife brooke mueller. mueller got a restraining order against charlie sheen earlier this week. it's the most blatant evidence that unrest in the arab world particularly libya effects our bottom line at home. $3.47 is the national average. that's up 3 cents just since the libyan uprising began in mid-february. in the last week alone the price of gas has increased 34 cents. is the obama administration facing the same pressure president bush was to tap u.s. oil reserves. the "wall street journal" has an interesting piece on this talking about how if this continues in the direction it's going, this will become a political problem for boik. he wilof -- problem for barack obama, and he will have to respond even fit am not a problem of his making, but is it? >> he has done nothing to alleviate the problems of higher gas prices. that would be we have to do two things simultaneously. look for efficiencies where we can. if we can improve gas mileage. he's working on that. the other way and the best way is to increase supply. in our own country i don't think there has been until yesterday, one permit in the entire gulf of mexico. that doesn't mean different includes a moratorium they added all across the east coast as well as they continue to not allow any sort of environmentally sensitive drilling up in alaska where we would have control over our own destiny and add more supply into the market. megyn: do you think it's a coincidence it was just this week the administration granted that permit? >> i think it coincidence is obvious. can you imagine if the bush administration had granted the first and only permit to a bp subsidiary which is what happened in this case? i'm not against the drilling. the people down there in louisiana need the jobs. the energy industry provides 9.2 million jobs in our country. president obama hasn't paid attention to the fact on the job points. a week ago he announced his jobs panel, this included the ceo of jeffrey immelt. not a single person from the energy world added to that panel. megyn: the president is against these policies as a general matter. he's not somebody who wants to open up the field here in america for drilling on the gulf or elsewhere. certainly not in alaska. he might in bits and pieces. but overall that doesn't seem to be part his agenda. yet you have ben bernanke testifying that said these rising prices are a threat to our economic recoverly. eric bolling was telling me you are talking about $4 a gallon for gas. people get nervous. it shakes consumer confidence on housing to food prices and gas prices and otherwise. >> i don't think president obama has a philosophy against the drilling. i think it's on his left wing he passifies them and says i believe we can do this through green jobs and high speed rail. we know that's not true. but this is where he might make a change, megyn. families that are living either pay check to paycheck or living on tight budget, they don't have a choice whether to fill up their gas tanks. they have to do that to get to school and work. and so senate squeeze out other discretionary income you might spend on other things. and because president obama is entering in the presidential cycle. he wants to win reelection in 2012, that might mean that he is willing to do something. whether he does that because of a political calculation or the right thing to do from the national security and energy security standpoint will remain to be seen. fit would be good to get the jobs and get supply into the system. megyn: in the "wall street journal" they cite an interview with steven chu, before he was confirmed as secretary of energy. he said we have to figure out how to boost the price of gasoline to the levels in europe, whiz $10 a gallon. that they thought would force people to rely on alter that forms of energy, and to drive less, take public transportation more. is there any chance that that's reflective of the way our current administration thinks. >> bubbling underneath i'm sure they cringe hearing those words. megyn: when he had his confirmation hearing he dialed it back. >> where i'm from in wyoming you are not going to get public transportation to take from you my grandparents' ranch into town. maybe people make it calculation that makes sense. but if you are a taxpayer and you are want to go know what is this going to mean to my bottom line. you will want to see american jobs, american oil production and you will want to see a president held to account. let me make a prediction. if gasoline prices stay where they are now or even get above $4 a gallon in most places across the country and if unemployment stays above 8%, then president obama will have a big challenge, a big hurdle to clear if he wants to be reelected in 2012. megyn: it was over $4 a gallon in 2008 and the unemployment rate was 5.9%. dana, thank you so much. triumph turns to tragedy on a michigan basketball court. a 16-year-old player make the game-winning shot capping a perfect game-winning season, then falls dead on the court. it's facebook leading to an increase in the divorce rate? some disturk new research. new fallout for northwestern university and the professor who may have crossed the line in his human sesexuality class. >> reporter: did you tell your parents about this? >> no, i have not. >> reporter: are you going to tell them? view * if they ask. 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[ smack! ] [ smack! smack! smack! ] [ male announcer ] your favorite foods fighting you? fight back fast with tums. calcium rich tums goes to work in seconds. nothing works faster. ♪ tum ta tum tum tums megyn: millions of dollars, 400 million, to exact, down the drain as a nasa rocket crashes into the pacific. >> monitoring how changes in earth's climate may affect our lives. megyn: it looked good at first. but four minutes in, not so much. the rocket plummets into the ocean. apparently a protective shell on top of it did not separate from the satellite. >> we have had a contingency on the glory mission. do not leave your stations until released. do not attempt to call out and release information to anyone or speculate on the cause of the continue general city. >> it did not separate and the vehicle does not have sufficient velocity with the ferring on to obtain orbit. megyn: florida nasa i -- nasa in investigation. 16-year-old wes leonard, the hometown hero making a game-winning shot that capped off his team's perfect season. but the celebration turned into horror. moments later wes leonard was dead, suffering a cardiac arrest. trarrest. trace gallagher has more. >> reporter: they are in overtime. the clock is ticking. and they give the ball to wes leonard who is going down for the game-winning layup. he makes the layup and as you can imagine the place goes crazy because now he's 20-0. his teammates grab him and give him a heros lift. then seconds later he falls to the ground of the gymnasium. they called the paramedics in. the place is stunned as you can see this picture. the paramedics take wes leonard away. he was declared dead at hospital a short time later we believe a heart attack. here is the superintendent. >> he was such a wonderful kid. even with the accolades and the -- people calming him a star. he was still very humble, very down to earth. report are was also the quarterback on the high school football team. last week before a game he complained of flu-like symptoms but he scored 14 points in that game. an autopsy will be conducted. but experts believe this was likely a heart attack. every year 15 high school athletes die of heart disease and most of those are never diagnosed. again, wes leonard, 16 years old. 15 athletes a year. megyn: do we know how big a guy he was, his height and weight? >> reporter: we believe he was a little over 6 feet, 190 pounds. megyn: sometime when athletes are extraordinarily tall we find out they have enlarged hearts. but that doesn't sound extraordinary. the doctors will try to find some sort of a cause. it will bring closure for his parents and others watching this. cops say two parents acted like village land teas --when they a. who is to blame for letting it get this far. then there is this. >> men are less likely to go to their pay than women it's an enticing and i think exciting and more effective way for -- a very effective way to get men to open up. megyn: very effective way of getting men to up on. just take off your clothes. a new form of therapy for a way to drum up business. meet the naked therapist. 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[ male announcer ] swiffer cleans better than a mop or your money back. megyn: well come back. the jobs market picking up steam. the nation's unemployment rate dipping to 8.9% last month. 222,000 jobs were add. the most since april. no high-speed railroads for florida. the state supreme court upholding the governor's decision to reject billions of dollars for that project that governor says would wind up cost the state of california. the plans to cut billions of dollars from the federal budget. debbie wasserman shultz warns the wrong cuts could affect the prisons later. >> i was at a childcare center there my district and literally stood with moms when they lose their childcare as a result of the cuts in hr-1 they will have to stop working. they won't be able to send their kids to school and they won't get an early childhood education. cuts like that will directly lead to kids becoming criminals later on. megyn: really? joining me now, crystal ball, a former virginia congressional candidate. andrea tantaros, and sam bennett, the ceo of the women's campaign form. if we cut any funds for childcare all those kids will become criminals. >> all of them. the pilgrims didn't have these government program and they turned out okay. criminality predates big government programs. we are probably in our highest funding levels. and we still have the problems. megyn: is it fear mongering. >> your average inmate in a prison costs taxpayers $30,000 a year. if you make sure you have basic programs like head start that gives children of high poverty demographics a leg up, you can potentially reduce the chance they will be a criminal later. >> there definitely is a correlation. it does not prove causation. i will say there are stronger arguments you can make against these cuts that are less tenuous in their logic. megyn: it's a law -- speculati speculative. >> spending a couple more dollars o on the child. will kids right now -- criminals. >> this baby here unless she goes to head start. megyn: if you are prove the linkage you are on to it. bizarre situation at northwestern universities. a great school. human sex a sexuality, the profr asked the kids if they want to stay after. he's doing a segment on kinky practices. do you want to stay after class. people get to decide whether they want to or not. 100 kids stay after and they see a demonstration from an exhibitionist who is turned on at the thought of sex acts in front of people in the nude. the northwestern president says i'm troubled and disappointed. but so far no one has been disciplined. is this appropriate? >> it's up to the college. i just finished paying a lot of college tuition. fit would have given me pause as a parent that that was going on. it would have given me pause. megyn: it was a sex show. >> it was voluntary participation. i'm careful about casting stones in this area. there is a slippery slope. megyn: you have got your own history. no, not like that. google crystal ball and you will find out. censorship is a slippery slope. rue * we are very hesitant to engage in censorship. it's all about the freedom of thought. >> i have got to get my say. megyn: it was a sex show. >> they have to worry about in the classroom to your point how this is a private university. a lot of these studs are probably there on government loans. megyn: so we paid for it. >> this professor is a pervert. he is. he's watching students -- megyn: we talked about things and saw pictures. we never had a segment on kinky sex. here is the defense from the guy who put on the show. people say it's not necessary to demonstrate sex acts. that's one of the things that has kept research in this area hobbled. the more you expose, the moyer do, the better it is for society. >> do college kids need in this area? >> this is probably some of the tamer things they are seeing in their college experience. megyn: i don't think so. maybe i'm a prude. but this is x-rated by any measure. >> as a paying parent paying private tuition this would have given me pause. megyn: poor jennifer hudson. she was a little jeff weight. then they lost 8. >> pounds thanks to weight watchers. now she is being criticized as setting a bad example because she is too thinned. >> typical problem for women. damned if you do, damned if you don't. too heavy, not good. too thin, not good. megyn: she looks fantastic. you can be too thin but she is not. i think she looks absolutely beautiful. megyn: why are they doing it? >> this obsession with female bodies and waits contributing to the epidemic of eating disorders. megyn: is there a jealousy thing going on here? which and your best friend need to lose 50 pounds and you do and she doesn't. >> research shows in our culture which is uniquely un-girlfriendly. megyn: there is a 24-year-old psychology buff. she is not a licensed therapist. who is now take off her clothes to counsel her clients. male and female but mostly the male. i use the power of arousal to let you gain more control over your life. freud used free association, i use nakedness. hide the children. >> i'm voting internet soft porn. not therapy. >> i'm saying strip were a psch degree. >> they are consenting adults. there are adults, right. >> she is couching its as therapy and ethics around therapy say you cannot introduce sex eulsexuality of any type. megyn: they say you can't cuff. sexual interaction is considered highly unethical. >> she says she is helping men focus on their problems. she says they feel more willing to open up and she reels them in by putting modeling shots on her web site. >> imsure they want to open up. >> they are playing out doctor-patient fantasy. megyn: the first one is conducted via one-way webcam. then if she gets to now it's two-way via skype. she says she has a boyfriend who supports her business. but mom and dad don't know yet. >> now they do. megyn: you think the boyfriend actually supports this? >> maybe has a kinky fetish himself. megyn: there is a place for him at northwestern university. panel, thank you. moving on. this next one is not so fun. the victim of bullying. not take it sitting down, and not staying silent. a 13-year-old girl threatening a lawsuit against a school district in oklahoma. she says the district ignored her complaints about horrific bullying. ÷÷÷ megyn: "kelly's court" is back in session. a new twist in the case of a dad who stormed onto a bus in oklahoma to stop a bully from tormenting his daughter. back in october he took matters into his own hands. he was fed up after he says was two years bullying of his daughter. he gets onboard bus, seeing an altercation and confronted the bully himself. but alleged bully was also bus driver's niece. from there an epic meltdown ensued. police cars swarmed the scene. but the victim's mother says the circumstances left her husband with no other choice. >> they were beating on my daughter. they were yelling [bleep] [bleep] and of course we are going to save our daughter. we are not going to let this happen. the bus driver even hit my daughter. megyn: now those parents are threatening to sue the school claiming officials ignored complaints of bullying that put their daughter at risk for two years. and the police are reportedly look into criminal charges. who are the real victims here? let's ask our panel, kimberly guilfoyle and jonna spilbor. let me start with you, kimberly. the far it says the reason i was there is because of two years unrespond complaints about what was happen to go my kid. i say the happen again, they were beating on her, i had to get on the bus. >> the school has a duty to take corrective measures and they failed. for two years there was prolonged bullying in the classroom. these two parents went to the district saying i befg you to transfer our daughter. she was being held against her will in the bathroom. objects thrown against her by a group of girls which included the girl which is the niece of the bus driver. then on this incident in question the girl was prevent from leaving the bus. the mother had to go every day to make sure she was all right because of what was going on. when they saw the daughter wasn't able to leave the bus, the fight broke out. the dad saw what was going on, saw this daughter being beaten so he gets on the bus to save his daughter. what parents wouldn't do that. then the bus driver says to the mom, takes off her earrings and says you cracker i'm going to beat your you know what, too. megyn: there is a racial element. parents allege their chielsd a 13-year-old white girl being targeted repeatedly by the black students. that's what happened on this bus, it was a black on white bullying crime with the bus driver is black. the father is white. he gets on and the altercation followed from there. according to the police report, according to the police report the officer says the bus driver struck the father first, and that the 13-year-old girl was indeed the victim. doesn't the family have a good lawsuit against the school? >> i'm not so sure. i'm so worried -- these bullying cases are so present latin's disgusting. but now we are requiring our educators to be one part educator and two parts lion tairm. it's not fair to the other students. i think the school has an absolute duty to punish bullies when they catch them and refer them for prosecution. but i think we are getting into a slippery slope if we assign civil liability to a school district for the acts of errant kids. megyn: if it's normal bullying, that's unfortunately going to happen. these parents say the was two years. the harassment was severe. then it culminates in an incident where the father says he's literally watching them beat up on his child on the bus. you are a mom, not a dad. wouldn't you get on that bus? i would. >> my earrings would be off, too. that bus driver wouldn't want to mess with me. you can take me to jail. if i saw another child not even my own you could forget bits. the school had notice, extensive notice for a period time of two years. a child can't even use a restroom in safety in their own school. this poor little girl has been pulled out of the school, is being home schooled because they didn't find another place for her to be educated. don't you have a right as a student to receive an education and not be fearful every day that you go into that school, you are not even safe weren't coip -- safewithin the con finee school. megyn: this happened back in october. not you family is threatening a lawsuit. we don't know if they will bring it. as of october the police were looking into the situation and potential charges could have been brought again the far it and the bus driver or even potentially against the bullies on the bus. should any of those people be facing criminal charges? >> i think it will depend on how much credible evidence we have has to who actually started this. if you are defending yourself you shouldn't be charged. if you start a fight with somebody, you should. megyn: so if the kids on the bus were beating on this little girl they should face charges. >> how else are they going to learn to stop this behavior. but it's so hard to determine when you have a melee like that. megyn: what about the bus driver? as far as i can tell she has not between fired. >> i think she should be fired. what kind of environment is she providing for children, she is preventing a child from getting off the bus while her niece beats that child and won't let the parents get on the bus to rescue her'. megyn: we'll try to follow up on the facts. one final word for our viewers. it's dangerous to take matters into your own hands, but what would you do. the schooled a noits repeated complaints. that's a great case. megyn: new research claims that facebook is at the forefront of divorce. blaming facebook for 20% of the divorce in the united states. what does facebook have to do with it? trace gallagher knows. >> reporter: the american academy of matrimonial lawyers, these are divorce attorneys. they get rich off this stuff. they say one in five marriages destroyed by facebook. 80% of those attorneys report that marriages -- people being married are having affairs because of facebook. turns out -- megyn: 80% of married couples are having affairs. >> reporter: 80% of divorce attorneys report married couples are having affairs because of facebook. you connect with somebody online. you start messaging, then. megyn: like an exboyfriend, exgirlfriend. the flame is reignited. >> reporter: virtual contact becomes physical contact. megyn: before facebook gets seen ad in a divorce case. >> reporter: because that could happen we have tips for you. if you are a facebook user. this is trace gallagher saving you're marriage. do self-assessment of why you are using facebook. >> reporter: don't have intimate conversations with anyone but your spouse. when your exboyfriend or high school sweetheart says i should have chosen you, go away, run information the hills. megyn: coming up after this break i'll reveal to you the secret between our fir hour and second hour. that's up next. captioning made possible by fox news network you can make more knowledgeable decisions when booking vacationpackages. excuse me... shhh. but... shhhhh. too quiet. 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