lawmakers put goldman sachs in the crosshairs and the big event, lloyd blankfein on the hot seat. goldman is expected to deny they profited from the housing collapse and we'll be watching that very closely today. bill: indeed we will. also the disturbing image of the suspected chris may day body bomber proving the man who tried to detonate a bomb on christmas day was no lone wolf, he was in fact training with al-qaeda terrorists. more on that. ma march the other big, big story today, arizona, front and center in the immigration debate, governor jan brewer, signed into law a bill that gives police the power to stop and detain anybody who cannot prove that they are in this country illegally and take a look at this, a block from our phoenix affiliate, a message from po testers, a bit hard to make out but it says burn this racist city, and that gives smu indication of what the mood is like in arizona today. the governor says that she is only doing what the federal government should have already done. >> we have tried now in the state of arizona probably foro \on/zero well, we've been talking about it for, what, 15 years to secure our border, the la six years have been probably more resounding, you know, and not completely received by the federal government. i think the last year and a half, with my five letters that i have sent and have spoken to the president personally in regard to that, has been met with complete, total disrespect to the people of arizona. i mean, we don't even get an answer back from our letters in regard to securing our border. so given that, i think that it was time that arizonians did step you and that was one reason why i think the senate bill 1070 was signed. martha: that is a woman in the spotlight today, the governor of arizona. thousands are protesting. and people in d.c. are taking notice. lawmakers are now getting worked up about possibly pushing forward immigration reform on the national level as this pushes into the national conversation. we're going to have a fair and balanced debate on this superhot issue. bill: a couple of good ones coming up today. also martha, now to washington's war on wall street, congress has its sights set firmly on the biggest elephant in the room, battle number one, the powerful goldman sachs. that's its ceo, lloyd blankfein, he comes under the shadow of a lawsuit against his company. he's expected to deny that goldman did anything wrong. stuart varney leads our coverage, stu, good morning, one fundamental bottom line question, did goldman sachs hurt america. >> that's a very bg question because goldman sachs is accused -- here's what it's accused of doing, of creating an investment that was bound to fail and selling that investment as a success. now, that is a legal question. the lawyers are all over this charge of fraud. today, goldman sachs goes on trial in the course of public opinion. very different thing. it will look bad if it looks as though goldman profited from misery. goldman will look bad if it looks as though it was using government money to profit from misery. now, goldman in response is going to say this, that fabulous fabrice tourre at the heart of the investments, fabrice tourre is going to say we did not create an investment that was created in order to fail and lloyd blankfein is going to say we did not bet massively against the housing market. so basically they're going to say it's not my fault. how this is decided in the court of public public opinion will answer your question, did goldman sachs hurt america. bill: the court of public opinion is very important here, so is the law. >> yes. bill: many could argue that goldman sachs was just operating within the rules that congress set up years ago. >> yes. bill: or did it act outside of those rules and essentially break the law. >> no. bill: that would change public opinion. >> that is a question for the lawyers to decide. and there are two separate issues here. there's the legal question did goldman sachs commit fraud. if they d. they're found guilty, okay, they take a punishment of some sort. if they're found guilty in the court of public opinion, and that's where the trial is today, then the voters, acting through congress, will really crack down on wall street and you'll get this vigorous financial reform bill through. bill: a bill that was stalled late yesterday in the senate. stu varney, of varney & company, thank you for coming on. march march what do we know about lloyd blankfein, the man we're about to see on the hot seat. here's the background, he grew up in the northeast section of brooklyn, he received a scholarship to attend harvard law school, his first job was selling peanuts at yankee stadium, he did come from a modest past, here's the point, reading recently about a meeting with al sharpton, they talked about things they had in common growing up and because this has been become somewhat of a measure of what kind of person someone is, he has 2600 songs on his ipod. bill: that will help on the subway ride. martha: many from the '50s and '70s, he likes beet -- beatles and gloria gaynor. bill: selling peanuts when you're 13 years old and now runing this company? martha: the last thing he would have been called is a fat cat but that's what he's being called. bill: the numbers for forward automaker -- ford motor company, they had a blowout number for the only car company that did not take money from the government, saying the numbers could mean new jobs and saying it's boosting production throughout north america. sales climbed 37 percent for the quarter, reporting a 84 percent sales increase in the country of china. ford checks in big today. martha: in this news as well today, the sarah palin case goes to a federal jury today. a panel of eight men and six women will decide the fate of a former university of tennessee student accused of hacking into palin's personal e-mail account at the height of the 2008 presidential campaign. now, the former alaska governor herself took the stand during this trial, brushing aside the defense's claim that the hacking, which is nothing more than sort of a teenage prank, i guess, telling the jury about the disruption and the hurt that it caused her and her family. >> access and communication is so extremely important when you're thousands of miles away from your children. it was a big deal to have that communication stripped away. i don't know an action like this is a prank, when you consider how impacting it was on a presidential election. martha: well, let's go to jonathan serre. the defense says this was a college prank. what are the prosecutors saying about that motive? >> reporter: martha, prosecutors are alleging this was a deliberate attempt to derail sarah palin's vice presidential ambitions. incidentally, the defendant chose not to take the stand during his trial. his attorneys have admitted that this was in their words, that he made some stupid decisions, their words, but they insist that this was a harmless frank, that he simply guessed his way into her e-mail and that there was no criminal intent martha: so if he's convicted, what kind of time is kernell looking at? >> reporter: depends on what he's convicted of. if he's convicted of the felony counts against him, he could in theory face up to 50 years in federal prison. if he's convicted of a misdemeanor, he would face a maximum of one year. of course, much of this will depend on whether the judge feels that he's already learned his lesson or whether this is a case where the court wants to make an example of someone, martha. martha: jonathan serre, thank you very much, we'll be watching for the outcome in that case. good to have you here jonathan. bill: should come today, right? martha: yes. bill: we talk about arizona and the epicenter of the immigration debate, what a story it's become, now there is backlash and talk of what washington is doing in reaction to it and whether or not the president is using the het button issue to address that. a fair and balanced debate. also -- >> martha: he was training for terror and now we have disturbing new images. do you -- do you recognize that face in that picture? that is abdulmutallab, the man who would be the christmas day bomber. everybody thought he was a lone wolf, right? here he is with a machine gun in hand, surrounded by al-qaeda operatives, this video and these pictures are simply stunning. bill: plus saving a piece of american history today. so who forked over the billion dollars, sorry, make that a million -- that would be an expensive sign -- who forked over a million bucks so save that hollywood sign? we'll tell you in minutes. >> ♪ >> ♪ hooray for hollywood. >> ♪ >> ♪ >> ♪ captioning performed by mediacaptioning. com martha: this is an interesting story, a fox news alert, but it's happening in new jersey today. if they continue to cut budgets, new jersey governor chris christie slashing aid to schools across the state and today it started as a campaign over the internet on facebook, one student saying let's all walk out of our classrooms today to protest the budget cuts that we're getting under governor christie, this brand new video is from mount claire, new jersey but we're told potentially thousands of students, seven schools in newark, we're also getting video from stockton high school, where students are protesting budget cuts. of course the governor has said the system is simply unsustainable and that these cuts need to happen and that teachers need to get more realistic about retirement pay packages and the like but this is a fascinating scene, we're going to keep a close eye on this development. bill: they coordinated this through the internet, through the facebook pages which everyone apparently has. martha: and the 18-year-old said that students are apathetic, they said let's show them that's not the case, and let's come out in force, and so far, they are responding. bill: in the meantime, martha, we've got this brand new picture, a videotape showing the suspected christmas day bomber, seems to prove he was in fact working alongside al-qaeda terrorists in yemen all along, abc news obtaining the video which shows training with al-qaeda in yemen, abdulmutallab wears a head scarf, holds a machine gun in this shot, he's charged with trying to set off a bomb in his underwear on a flight to detroit. steven, good morning, welcome back. in the early days of this, when this guy was considered a lone wolf, remember the administration was saying he acted alone? this is videotape and evidence that shows this guy was clearly part of the greater group, al-qaeda. >> reporter: what's interesting about this, according to the administration itself, he said in his initial interrogation, which lasted only 50 minutes, that he was part of this group and he had been dispatched by al-qaeda in the arabian peninsula and there were others that were likely to follow. what's hard to explain is why the president, three days later, called him an isolated extremist. doesn't make any sense. but the real problem i think is that we now are seeing on this video some of this colleagues in this training. what we didn't get at the time is the intelligence that's perishable, about who these people were. because we interrogated him for only 50 minutes, we didn't have an opportunity to ask him based on our intelligence, based on what he said, detailed questions about the kind of people he was training with, who he was training with, where they came from, what they were called, where they stayed. bill: but he was the one who gave the information to investigators who said well, he said there are more just like him, ready to come here. >> right. but in a 50-minute interrogation, that's not nearly enough time to go back to him and to get the details of what exactly the training was made up of, where they stayed, who was conducting the training, how it was financed. you know, questions that he may have been able to answer that could have given us a window into this group that we now know is a growing threat. bill: sounds like a similar story and draw the parallel here, okay? go back to fort hood, nidal hasan, in the early days of that attack on the post in texas, he, too, was considered a solo actor and was not considered to be the guy who was possibly inspired by this radical preacher in yemen and now we know. >> we do know, and what's i think disturbing about what happened in the past couple of days is that the administration is refusing to provide any details or any serious details, any documentation, about nidal hasan's personnel file, about the e-mails that he exchanged with this awlaki, who is this radical jihadist in yemen, we don't have access to that information, and the fbi as you mentioned, bill, said initially this guy is a lone wolf, he wasn't inspired, any e-mails that he exchanged with awlaki were benign is the word they used. in my view, none of the e-mails that you exchange with awlaki are benign but the fbi claimed they were consistent with his research. i think that's highly unlikely. it would be helpful to see them and the administration is refusing to provide them even to members of congress. bill: senators collins and lieberman are asking the administration to give up some of that information so they can see it. in conclusion, as we wrap this up here now, steven, that was the posture then. in the fall. and over christmas. has the posture changed now in this administration today, in the spring? >> well, it's unclear that it has. we haven't seen anything that indicates a change. we don't know, for instance, whether this high value detainee intelligence group would be called in to interrogate somebody like an abdulmutallab if he were to try to conduct that similar kind of attack again. what we need to do is place the emphasis on gaining intelligence so we learn as much as we can about our enemies, immediately after a failed attack like this. it's unclear that they've internalized that lesson. bill: that may be something perhaps we figure out when the next attempt comes our way. stephen hayes from the weekly standard, stephen, thank you, we'll talk again. >> thanks bill. bill: har martha, what's coming up. martha: look out, you know we're nearly $13 trillion in debt in this country and it's becoming a very serious situation and today we're going to hear from president president's new commission that was formed to tackle this problem. so now we want to know, what is it that they will recommend? will it be serious budget cuts, or will it be bigger taxes? and could that -- could a v.a.t. tax be part of their solution? we're ten minutes away. bill: also, we have a question, has an internet scoop backfired? does apple have a criminal case on its hands, we ask? we investigate, next. bill: what had been one of the hottest internet scoops turned out to be a police matter, a california computer crime task force raiding the home of a blogger who posted iphone prototype picks, the warrant saying the computers and other devices may have been used to commit a felony. here is jason chen, raving on the future must-have apple product on his blog. roll this. >> hey, i'm jason chen, this is the new iphone, here's some of the new features. you know, the front camera? two volume buttons are now separate. the whole top side is metallic instead of plastic, bottom characters are the same, the center spot has moved to the side and when you pop it out, it's a microshin. bill: sounds like a benign review, right? that was pretty flattering. he paid five grand for the prototype. a silicon valley watering hole. if you have a regular old iphone, a legal phone, fox news has a new app for you, receive the fox news alerts and read the news stories and streamline video, listen to radio, what else can you do there? browse through photo galleries and watch the latest fnc clips on demand, all for free, the best price of all, right now, online, for free. martha: here's a name for you from the past, manuel noriega, remember him, u.s. officials put him on a plane last night headed for france. this is video from the miami international airport. he served 20 years behind bars in the united states for drug trafficking and other charges. now, french authorities want him to stand trial there, they said bring him here, we want to charge him with money laundering in that country. steve harrigan joins us with more. i guess he wanted to go to panama, right? >> reporter: he did, he was hoping to go back to pan marks a country where he could face possible murder charges but the whole thinking was since he was in his early 70s, he might get a lienient deal, perhaps house arrest, instead he was a whisked away, put on an air france jet and taken to paris. already this morning he's been before a french magistrate, a french judge, they're trying to determine whether to let him out on house arrest or keep him in jail until that trial begins. he faces money laundering charges in paris, he's accused of spending millions of dollars from the sale of cocaine to buy three paris apartments. he spent 20 years in jail here in a federal prison and could be facing a term of ten more years in france. martha: as is sometimes the case with the somewhat colorful characters on the international scene, he was once a cia asset, right? what happened with that? >> reporter: certainly. he at one time was a key intelligence asset for the u.s. he was a strong man and absolute ruler of panama, then he became an embarrassment, sort of the pattern we've seen with saddam hussein happened with manuel noriega, it eventually took a u.s. invasion to topple noriega, so he's gone from the pinnacle of power to the low of lows, 20 years in jail here, a possible ten more if he survives. he appeared very frail and he's had at least one stroke. there's no telling if he gets that 10-year sentence whether he'll live it out. martha: what a story. steve harrigan, thank you very much, reporting on manuel noriega. bill: remember that night, 1989, it was like wooho! in a moment the heat is on in arizona, turning into a blistering campaign battle. already, john mccain, al sharpton, the president already in the mix, wait until you hear what they're saying about what some consider a racist law. that's coming up here. martha: there he is, rod blagojevich going on the record last night with greta van u.s. everyone -- vansustern, he says the prosecution in the trial is trying to cover up the truth. >> the tapes will show what the truth is. i have said play the tapes. why is it my accuser is trying to prevent the truth and full truth from being heard? i believe part of it is he's covering up the fact that he told this big lie that foreseably led to a chain of events that would remove a governor from office. martha: this is fascinating. he's basically saying patrick fitzgerald and prosecutors made all these tapes but now they only want to use certain parts of them. he says the other part will be what sets him free. we'll talk about that when flushr flur bill: welcome back, everyone. it will be one of the main stories throughout the morning, the debt commission set to begin meeting in washington. we'll see the president in a matter of minutes, a debt commission that will get together a bipartisan group, democrats, the slight majority on board that panel. they will talk about how you get the country out of its current debt issue. which is huge, by the way! about $41,000 for every american citizen. before you get overly optimistic, there will be no findings released until about the first of december. so that's after mid-term elections. and it's been since 1983 since any recommendations out of any debt commission were actually put into law or put into practice. martha: really? >> bill: but you remember the early '80s and how tough the times were in the united states then, so some would say the mirror or parallel of the '80s, we'll see whether or not this commission is effective and the president comes out to kick it off in a matter of ten minutes. martha: and another one of our very big stories today, make no mistake, the border in arizona is bubbling over, and this hot political brew is being stirred from tucson to d.c. during the latest protests, look at that, one person vandalized the state capitol building, using refried beans to draw a swastika, all of this is coming because the governor signed into law a bill that's going to allow police to ask those entering the country illegally to produce their papers and prove they're here legally. >> this law is a response to the president's and the administration's failure to secure our borders. our borders are broken, it's worse than i have ever seen it. >> clearly, this law clearly gives the policemen the right to target based on looking for mexican immigrants. you can't have it both ways, you can't say we're going to stop you coming if mexico but we're not looking for mexican. do you think the public is stupid? >> the last year and a half, with my five letters that i have sent and have spoken to the president personally in regard to that, has been met with complete, total disrespect to the people of arizona. i mean, we don't even get an answer back from our letters in regard to securing our border. martha: that's a very striking statement there from the governor of arizona, jan brewer and joining me is jason rowe, former adviser to mitt romney, as well as gop consult rant and kirsten powers is a fox political analyst, great to have you both with us today. this feels like a very hot issue and it feels like it's going to keep driving all the way to the midterm elections at least. kirsten, what about that statement by the governor, by jan brewer, she said she wrote letters to the president, she says it was disrespectful that she received absolutely no response when she requested to be backed up on what is a federal law to protect the border. >> if it's true, then she has a valid complaint but i don't think that that makes this law right and i don't think that it is okay to just be targeting people based on what they look like, not based on the fact that you know that they may have committed a crime. there's no way to know if one in three people of latin descent or mexican descent are living there legally, how are you going to know who to ask? i just don't think it's an appropriate response. martha: well, jason, that is the worst case scenario, jason, is what kirsten is pointing out here, that people, their doors would be knocked on, they would be pulled over for no reason. what do you say about that? >> well, i think the reality is how this would actually be applied is not so much you're going to be targeting people but anybody that gets pulled out over a routine stop is going to have to show identification that they are a citizen, so i don't think this is anything extraordinary. if anything it's reinforcing the argument that we're going to enforce the laws of arizona, and this is a state that has half a million illegal immigrants in its state right now and the federal government has failed to do anything to address the problem, and you know, it's the obama administration, but it predates the obama administration as well. martha: some people say that the president is already tapping into this fervor, and the emotion of this issue in his latest address that went out on youtube yesterday. let's take a look at a little piece of this. >> it will be up to each of you to make sure that the people, african-americans, latinos, and women who powered our victory in 2008 band together once again. martha: kirsten, how does that strike you? some people found that sort of offensive that he would call out individual groups and say you're the ones who got me elected, and you need to come back out and help us in the midterms. even heard somebody speaking on the o'reilly factor, saying can you imagine if george w. bush came out and said we need white people, evangelists, started ticking off people who had been supporters ef his campaign, and what the reaction to that would be? >> well, i would be surprised if that kind of stuff hasn't been done, and certainly in the outreach to senior citizens, there's been outreach to evangelicals and people who have been asked to vote. these are people that voted for him. i don't have any problem with it and i think that in fact it's a smart political strategy, the fact of the matter is, i think the immigration debate, when it -- when it gets to these extremes i think it works against the republicans. i just don't think it's where americans are. i can remember in the mid-term elections, all republicans telling me oh, this is going to be the defining issue, americans are mad about it, and of course, you know, democrats came into power. so i think the republicans are really misreading this and i don't think there's anything wrong with obama reaching out to his base. martha: are they misreading this, jason? >> yeah, i think they are. i mean, i understand what they're doing, they're trying to do everything they can to motivate latinos in the next election, but you know yorntion republicans are in any position where we can see ground on this. this is really talking about enforcing the law. we're not targeting any particular class of people. it just so happens the border states, which is what arizona is, you know, this is a pretty prevalent hispanic population, and so obviously, there's an issue there, that other states might not have to contend with, but the reality is, if we get our rhetoric right and messaging right and stay away from some of the nasty things that have been said in previous years, i think we have a real opportunity to pick up latino votes and in large part, it's because of the failures of this administration to really address any of the pressing problems facing this country, like employment, which is one of the reasons that a lot of latinos come here from mexico. martha: we'll see what happens in the mid-term election, j.d. hay worth and john mccain on the republican side i think will give us an indication of how powerful this topic is going to be as we go forward. kirsten, thank you very much, jason, good to see you again. thank you guys. bill: there are new developments surrounding a 23-year-old man with a handgun strapped to his waist and whether or not he posed a threat to president obama. joseph mcvey is his name, arrested sunday at a north carolina airport, just after air force one departed. investigators saying he told a police officer he wanted to talk to the president. mcvey's father says his son is a good kid, but gave no other details on the incident. in fact his father was not saying much yesterday. >> i don't know anything, i don't have any information for you, i don't want to talk. bill: in the meantime, mcvey is before a judge, he's being held for $100,000 bond, authorities saying he can leave jail if he posts that bail. martha: a slow moving and environmental disaster is growing in the gulf of mexico. take a look at this video of an oil spill, about 50 miles south of the louisiana coastline. you can see it so clearly in these pictures. coast guard officials say the slick is larger than the state of rhode island and that it is growing. it could hit the coastline in about three days, threatening beaches and commercial fishing areas from florida all the way to louisiana. oil giant bp is using deep water submarines to try to cap the oil that is gushing from two leaks on the ocean floor. if that fails, the company plans to drill two additional wells to redirect that flow, all of this, of course, coming from the disaster on that oil rig. they say, though, those efforts could take months to complete. bill: have any ideas on how the postoffice cut costs? now is your chance to share ideas. the u.s. postal service, making a plea for your suggestions as it faces a rising tide of red ink. you can submit your ideas at the postal regulatory commission's website, prc.gov, the postoffice projecting losses of $7 billion in 2010 alone. despite cutting its work force, about 200,000, some of the cost savings on the table include eliminating saturday mail delivery. we thought that was going to happen, right? closing offices in the country, and raising rates. martha: no catalogs on saturday. bill pill wait until monday. martha: catalogs and bills is mostly what comes in the mail these days, right. let's take a look ahead of the market ahead of the testimony we'll hear on wall street. investors are looking at greece's debt problems because everybody worries that may be a reflection on what we could see happening here, china's economy also in the mix today, down 23 points, but you can bet that all of those traders are going to be watching lloyd blankfein today as he sits in front of the folks on capitol hill. we expect quite a grilling. we're going to bring it to you live. bill: in moments, you mentioned, the first meeting for the debt commission, everything is going to be on the table, budget, tax cuts, spending, and what if the bailouts never took place in the first place? would that have helped? because you asked, in three minutes. bill: we are moments away from the beginning of the debt commission in d.c. there's your debt clock, almost $13 trillion, america! president obama kicks off the debt economics in minutes. how do they get america out of the red or suggest, anyway? treasury secretary tim geithner was talking about that last month. here's one of the suggestions we heard from d.c.: >> but of course, everybody recognizes right now that we're living with an unsustainable decifit and it will be important to make sure we a strong recovery going forward, that congress makes tough choice toss bring that down. bill: make tough choices. politics professor at george washington university in d.c., how are you doing, my friend? i guess that's the bottom line, right? what choices are they likely to recommend? >> well, historically, tough choices is a code word that means higher taxes on the american people. and with the economy still being sluggish, that would be the worst possible thing they could do. bill: yeah, what about spending cuts? >> well -- >> bill: are you optimistic? >> i think it's hard, but i think this is where we need to have real leadership. you know, we've had an increase in the decifit and debt by $1.5 trillion, just last year. so it's not a problem of having too few dollars coming into the government. it's a problem of having the government spend too much money. bill: this debt commission, does it amount to a hill of beans at all? the last recommendation a debt commission made that was acted on was 1983. you're talking twice -- that was 27 years ago, david. >> i -- i think that's right. we can all be hopeful that positive things result from it, but i also hope it's just got -- not glossing over the fundamental economic problems that america faces, because we spend too much money. we spend more money than we have. bill and we're -- bin laden bill and we're going to continue that on the current course and have the baby boomers flooding in, it will be a strain on social security and we'll have the medicare argumentses again and health care yet again. roll this. i want you to take a crack at this, bya, a person in mexico says what would the national debt be if stimulus and t.a.r.p. and cash for clunkers and all the other bailouts did not happen? would we be in better condition, better shape, or not? >> i think we would. the stimulus is adding about $875 billion to the decifit, cash for clunkers comes in relatively low at $3 billion, and the t.a.r.p. is $109 billion. you add that all up, that's close to 3/4 of a trillion dollars of more debt. bill: the stimulus, though, some of that money goes to unemployment benefits now from time to time. there's a bit of a tax cut involved there, about $400, to $800 for american families, middle class families. it's hard to say whether or not that money has truly helped out the economy, or without t. whether or not we'd be in a worse condition, david, right? >> well, yes. but if we want to grow the economy, we have to unleash the private sector. and every dollar that goes into government or every decifit that's created by government spending more money ultimately is going to be a burden on the private sector which reduces the capability to create jobs, grow businesses, have more innovation. bin laden bill that is a great point, does this government believe in the private sector, have you seen evidence of it? >> i have to say the jury is still out, but we need to have those people on capitol hill and president obama talk about growth and unleashing entrepreneurism, particular dle amongst small businesses and quit with all this let's just spend more money which we don't have. bull bill what's the chance this congress extends the bush tax cuts, currently set to expire in january of next year? >> well, i would say right now, it's not very likely, except we're coming up to a november election, the party in power is extremely unplor, if we had the vote today, they probably would lose the majority in the house and lose a substantial number of seats in the senate, so politics is in the air, and the bush tax cuts might just survive because of that. bill: you think so, huh? did you chart that better than 50-50? >> i would put it right at about 50-50. bill: put your finger to the win and we'll figure out where we are next week. david, thank you. >> thank you. bill: you got a question you want answered? hemmer, fox news.com, also twitter at bill hemmer, because you asked, bya. all we need is one line. on join light row -- right now, lines are open. martha: rod blagojevich is sounding off. during an interview, why he says he needs president obama to testify at his corruption trial. bill: and this is an iconic american landmark, and the place where dreams do come true for like one out of 100,000 people who try! new construction -- will new construction force us to say goodbye to the hollywood sign? martha: say it isn't so. >> ♪ >> ♪ say goodbye to hollywood. >> ♪ >> ♪ >> say goodbye, my baby. >> ♪ >> ♪ martha: all right, as promised, president obama, he is blanked by erskine bowles, adviser to president clinton and senator simpson, former senator from wyoming. let's listen to the president about the debt commission. >> over the past two years, this downturn has aggravated an already severe fiscal crisis, brought on by decades of bad habits in washington. as a result, today i -- the day i walked into this door, the over ail office, the decifit stood at 1.3 trillion, with projected deficits of $8 trillion over the next ten years. partly, this was caused by the recession, which meant the government was taking in less while demand for assistance for those who had lost their jobs was far greater. another contributor to our decifit has been the rising cost of health care, each year, more tax dollars are devoted to medicare and to medicaid. but what also made our decifit possible is that for years, folks in washington deferred politically difficult decision and avoided telling hard truths about the nature of the problem. the fact is it's always easier when you're in public life to share the good news, to tell people what they want to hear instead of what they need to know, and as the gentleman and me, allan simpson and erskine bowles can attest, this has been the norm around washington for a very long time when it comes to our finances. now, over the past year, we've had to take emergency measures to prevent the recession from becoming another depression, and at a time when millions of people are out of work, we'll continue to do what it takes to spur job creation while investing in a new foundation for lasting economic growth. but the emergency measures have added about $1 trillion to the decifit over the next ten years. as a result, even as we take these necessary steps in the short term, we have an obligation to future generations to address our long term structural deficits which hobble our economy and leave our children and grandchildren with a mountain of debt. that's why i ask congress to restore the pay as you go rule. this rule says that congress can't spend $1 on a new tax cut or entitlement program unless it saves a dollar elsewhere, it would help lead to the budget of the 1990s. in fact it was only by abandoning pay as you go that record surpluses turned into record deficits during the course of a decade. next, we've been scouring the budget, line by line, identifying more than $20 billion in savings this year alone. we've cut or eliminated scores of outmoded or ineffective programs and begun to reform our bloated contracting system. we've also successfully challenged the custom in congress of courting favored contractors by approving weapons systems the pentagon itself said that it doesn't want or need. because in these hard times, we have to save where we can afford so that we can pay for what we need, the same way families do. finally, i have proposed a freeze in government spending for three years. this won't affect the benefits through medicare, medicaid or social security, and it will not affect national security, including benefits for veterans. but it will affect all other discretionary spending. my budget ends loopholes and tax giveaways for oil and gas companies and for the wealthiest 2 percent of americans, because we just can't afford them. and i kept my promise to pass a health reform bill without adding a dime to the decifit. in fact by attacking waste and fraud and promoting better care, reform is expected to bring down our deficits by a trillion dollars over the next two decades, but all these steps, all significant, are simply not enough. for even as we reign in waste and ask the congress account for every dollar it spends, this alone will not make up for the years in which those in kaz were -- refused to make hard choices and live within their means and will not make up for the chronic failure to level with the american people about the cost of the services that they value. this is going to require people of both parties to come together and take a hard look at the growing gap between what the government spends and what the government raises in revenue, and it will require that we put politics aside, that we think more about the next generation than the next election. there's simply no other way to do it. that's why i appointed the national commission on fiscal responsibility and reform, based on a proposal originally presented by a bipartisan group of senators and today, the commission will have its first official meeting. i am grateful to all of its members, democrats and republicans, folks in government and folks from the private sector, for participating. i especially want to thank erskine bowles and allan simpson for chairing the commission. these two men may have different political affiliations but they share a strength of character and ability to work across party lines, and a willingness to tell the hard truths even when it's hard. these qualities will be essential as will the courage they've already shown by taking on this assignment. now, i've said that it's important that we not restrict the review or the recommendations that this commission comes up with in any way. everything has to be on the table. and i just met briefly with the commission and said the same thing to them. of course, this means that all of you are friends in the -- our friends in the media will ask me and others once a week or once a day about what we're willing to rule out or rule in when it comes to the recommendations for the commission. that's an old washington game. and it's one that has made it all but impossible in the past for people to sit down and have an honest discussion about putting our country on a more secure fiscal footing. so i want to deliver this message today. we're not playing that game. i'm not going to say what's in, i'm not going to say what's out. i want this commission to be free to do its work. in theory, there are a few issues on which there is more bipartisan agreement than fiscal responsibility but in practice, this responsibility for the future is often overwhelmed by the politics of the moment. it falls prey to special interest pressures, to the poll of local concerns, and to the reality familiar to every single american. it's a lot easier to spend a dollar than to save one. that's what at root led to these exploding deficits an that's what will lead to a day of reckoning. but i believe with the when of these gentlemen and this -- with the help of these gentlemen and this commission, we can meet this challenge in a thoughtful way and i believe we must for the future of our country, so allan, erskine, thank you for your participation, i want to thank the members of the fiscal commission. we've got a serious group in there ofand republicans. private sector and public sector. people who are sincere about this evident. and i told them that we are serious about it as well. i think i've shown over the last year that i'm willing to do things even when they're not popular. a lot of the decisions in terms of getting our budget under control may not be popular, but i think the reason that allan and erskine agreed to take on this assignment is they were convinced i was serious about it, and i'm going to be standing with them as they come up with the recommendations. so thank you very much, everybody. martha: there you have it, president obama and allan simpson, former republican senator from wyoming and the democrat erskine bowles, long-time adviser to president clinton, both standing on either side of president obama as laid out some interesting proposals here. he says that they're working on $20 billion in cuts. he said that they've gone through the budget, and they've outlined $20 billion in cuts. that was something he talked about during the campaign, going line by line and finding out things that were wasteful and getting rid of them. he also said that he has proposed a three-year spending freeze in the government, which would be very interesting. we're going to -- interesting to pull off. we're going to talk about that in a second. also said that $1.3 trillion decifit is what he walked in the door with, so a reference to the mistakes of the past from mr. obama today and what he inherited as president. let's go to major garrett at the white house. the president clearly wanted to put his stamp on cutting spending, based on what he said today. >> reporter: well, this is his commission, and what the commission does, it's going to have a lot to do and a lot to say about how the president pushes forward on this issue, debt and decifit focuses on the issue, that are driving a tremendous amount of public worry and unease and will be likely expressed in the mid terminal elections and the commission is made up of 18 members, ten democrats and 8 republicans, and, the -- for the commission to put anything forward congress must act upon, martha, 14 of 18 need to agree and you have to have republicans and democrats, agree to do a couple of things. reduce entitlement spending which is spending on medicare, social security, medicaid and raise revenues and if you don't get agreement, it dies and congress does not ac and the problem goes on and the commission which will meet once a month, the first meeting at 10:00 a.m. eastern and the white house will stream it live on the blog and we'll have drop-in coverage, i believe ut throughout the day on special report tonight and tackle the issue and the president said everything is on the table and when he was recounting what he talked about in the campaign, i thought it was interesting he didn't recount what voters may remember, the promise not raise a single tax for anyone making less than $250,000 a year and a couple of weeks ago on the saturday radio address the president said he wouldn't raise anyone's income tax, who made less than $250,000. well, there are other forms of taxation, not directly related to an income tax, and that could go up if the president is leaving that window open and what could it be, a value added tax and members of the commission leading it, alan simpson and erskine bowles said the value added tax is an option they'll look at on the revenue side. martha: and that has gotten a lot of attention, and good point, major, that was one of the things that was left off and he rattled off a number of things he talked about in the campaign and didn't mention that he would not be willing to cut taxes in the broader sense to those who make under $250,000. major, thank you very much. major garrett on a beautiful day outside the white house. and we have more news, breaking. bill: indeed we do, "fox news alert," congress demanding answers on what caused the economic melt down. others asking as lawmakers are looking -- if lawmakers are looking in the right place, carl levin, democrat out of michigan, the senate hearing focused on one shop in particular, goldman sachs. the biggest elephants on wall street and spotlight on lloyd blankfein and the ceo will testify in minutes, expected to defend the bank before a feisty panel of senators. peter barnes is on the hill, fox business networks. good morning, what does the senate committee want to know from the ceo? >> reporter: bill, the official title of the hearing is the role of investment banks and the financial crisis, and, the senators say they want to look at goldman sachs as a case study. including the controversial sales and trading practices. we will hear about not just the deal that is the focus of the new sec civil fraud lawsuit against goldman sachs, but, five other deals involving mortgages that blew up, for investors, they lost billions, while goldman sachs allegedly made billions. the committee will grill 7 executives, current and former executives, including the ceo, lloyd blankfein, chairman of the committee, carl levin says, quote, they have a lot to answer for, we're looking at a lot of high political theater, here on capitol hill today. bill: goldman sachs, as you know is in the business of making money. there is any proof they acted outside the law? that we will find out today? >> reporter: well, that hearing is not about that today, it is about looking into whether or not the company's sales and trading practices and aggressive risk taking helped to cause the financial crisis. the legal question on whether or not goldman sachs broke the law is over as a -- at the securities and exchange commission. with that lawsuit filed just ten days ago. bill: thank you for the clarification. on the hill today, peter barnes, fox business network. thanks. martha: all right, go back to that, when that gets interesting, and, turning now to the road to recovery. key home price index numbers just out. and the results are mixed. u.s. home prices increased slightly in the month of february. marking the first annual increase in more than three years. so that might be a bit of a positive indication. for the beleaguered housing market in this country, however many cities continue to show declines. in their prices, here now, fox business network's gerri willis, what do you make of the numbers. >> it is positive, we saw an index, the first time in many, means years since we have seen one and three years, absolutely right and though it is small, we have to make it turn sometime and it is good to see it. i should say those prices are still down, still down, 34% from their peak. and they dropped from january. so, we are still facing head winds there. i spoke to case-schiller's economist and he told me it is still too early to call a recovery in the housing market and he said, a lot of this kind of improvement we are seeing, generally in the housing market is caused by folks using the homebuyer tax credit and the actions of the government to keep that mortgage money flowing. martha? martha: when does that run out? we'll get a better handle on real market numbers. >> the credit is done. as of this week. so, it is over and we'll continue to see it play out over the next few months and the numbers, but after that, it is anybody's guess, now we have heard some realtors out there, say they might on their own continue to offer the credit to their customers. we'll have to wait and see. martha: thank you very much, gerri willis reporting on the home sales numbers, for us, a little bit of a sill rer lining, programs. -- silver lining in the real estate cloud, bill. bill: could be and ben bernanke is talking about the economy and we'll bring you that in a moment and a major moving happening in florida. check it out: a political wildcard added to the mix of the race for a key republican position. 38-year-old marco rubio, former speaker of the house in florida set to officially throw his hat in the ring for florida's senate. declaring his bid for the republican nomination in a matter 0 minutes from his home here, miami and it could change the landscape not just in florida but have an impact on other election come this fall. carl cameron by phone outside of his home, i think in miami, right, carl? good morning down there. >> reporter: hi, bill, yeah. marco rubio, the republican front-runner of the senate race, former house speaker in florida, will actually be finalizing paperwork and sending it up to tallahassee to declare the candidacy is a republican and it is no big secret, he's the front-runner in the primary but today's ceremonial performance by the republican candidate is really meant to cast a spotlight on the florida governor charlie crist. the incumbent republican governor is the other major candidate for the republican senate nomination, for the seat vacated by mel martinez, and occupied by a place holder senator, george lemieux and mr. crist has until noon on friday to decide whether or not he, too, will continue to run for the primary nomination as a republican. crist is 20 points back in an average of all of the polls, taking a pounding on the campaign trail and really dates back to the hug he gave president obama in january and the sort of fiscal race of the federal stimulus package which crist is a spirit and defender of, much to the chagrin of the republicans and the republican voters at the poll and crist has been talk of the possibility of leaving the party and running as an independent and is fairly extraordinary to have happen in an election year, a sitting incumbent republican governor in the crucially important state of florida, the fourth largest state in this union seriously giving up his party affiliation, in order to make a political maneuver to protect the possibility of winning the senate seat and crist was the front-runner weather a 40 point at vantage a year ago and now tails by 20 to marco rubio. bill: it is remarkable. carl, we are waiting on the live picture outside of his home and we'll bring it to our viewers life in a moment, i need a one word answer here. charlie crist, if he goes independent, would he have a challenge there or would he be scott free through the election as an independent. >> reporter: there is another possibility, an independent candidate out there talking about it, but is unlikely, charlie crist, will make a three way race and is trailing in the republican primary but en a three way race with independent crist as it were, the democrat, me. ch and marco rubio, the polls are almost a three-way tie. bill: it will be one race come fall and live to rubio's home outside of his home in south florida. in a matter of minutes here. so... martha: we expect charlie crist's answer, whether he'll run as an independent any moment now, he has to decide by friday, and we'll watch that, really closely as well. and this man never really hat a loss for words... >> again i talked to senator reid and senator menendez and i spoke to, you know, then congressman rahm emanuel, days after the election, right here, from this room. martha: some circles, known as blago, the illinois former governor rod blagojevich, he wants the president to take the stand in his criminal corruption trial and is going on the record with greta. bill: and remember the video from yesterday, a man dying on a new york sidewalk, people hanging and walking by without so much as a second look? a lot of folks said they don't want to get involved in other people's business, in a moment here today, a u.s. soldier who did step into a sticky matter, but says he will never be a good samaritan again. why is that? martha: and, if you think politics are a contact sport in washington, maybe you say not seen anything yet. straight ahead. b-a-c-c-a-l-a-u-r-a-t-e. baccalaureate. correct. 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[ female announcer ] new aveeno nourish plus shine. you need listerine® whitening® vibrant white™ rins. the mouthwash that gets teeth four times whiter than the leading toothpaste. and kills bad breath germs. listerine® whitening vibrant white™. new cryostat. instant relief, no mess. cryostat. a breakthrough in hemorrhoid treatment. extinguishes itching, burning, swelling... with cooling comfort. instant relief. no mess. cryostat. bill: good news bad news on the u.s. economy, a major part of our coverage this morning, consumer confidence in the month of april is out and it is gangbusters. the highest level we have seen, since september of 2008. about 57, 58 points, that is the scale it used, keep in mind, 5 years ago, when the economy was really rolling, we were well over 100, 110, sometimes 120 points. on the consumer cough confidence index and today, 58, hives level since september of '08. the good news, the bad news, the federal reserve chair, ben bernanke says unless america does something about the federal budget deficits it will do, quote, great damage to the u.s. economy, those comments moments ago. $1.4 trillion last year, the u.s. deficit, that is a record for the budget. 15 minutes past the hour now, you are up-to-date on the economy. martha: truth, lies, and wiretapped phone conversations. they are all in the mix here, according to these reports, former illinois governor rod blagojevich breaks it down when he went on the record with greta van susteren. and first what he tells -- he tells us why he needs president obama to testify and -- at his corruption trial. >> you mentioned president obama. you have filed notice to the court you would like to subpoena him. and, you have enumerate aid number of reasons. what is it that you think senator obama or president obama, then senator obama could offer you at trial on june 3rd, that would be helpful to your case? >> i think president obama, you know, can help prove my innocence. martha: all right. you heard it there. lynn sweet joins us, a washington bureau chief at the "chicago sun times," lynn, welcome, good to have you with us today. >> good morning. martha: when you think rod blagojevich disappeared from the headlines, he pushes himself back in there and we know the trial is set to get underway on june 3rd. and, now, he has said that president obama can shed a lot of light, on what that -- what went back and forth with those conversations. any chance that that will ever happen? >> well, it is an uphill battle to get a sitting president 0 testify in a court of law, and, it is -- will be up to the defense to make a case before a judge who has to rule on it. and one of the things he'll have to do is explain clearly, in some details what they think that president obama can testify to. so i would say it would be extraordinary to get this ruling, but they'll try. that is part of -- you know, rod blagojevich has been playing long odds since he was arrested in december of 2008. and, this is part of his strategy. if nothing else he's put out there, somewhere, the jurors in the chicago area are listening, presumably to some of this, he wants the president to testify to his innocence, that is a strategy. martha: he has interesting points, lynn and made some of them last night with greta van susteren and basically saying, look the prosecutor, patrick fitzgerald, came ton my home and wiretapped my phones, i don't know how many months and have reams and reams of conversations and want to cherry-pick the parts of those conversations that he had from his house, and, use those at his trial and he says, you know, not only did they come into my house and tape me without my knowledge, you cannot cherry pick this. if you do it i want every bit of that tape entered into this court case. >> let me quickly separate some of the substance from that. he makes a big deal the wiretap was in his house and in the end it doesn't matter where the wiretap was, he was wiretapped. whether office, home, political office... so put that aside, because i don't think the court will care that much where the wiretap was. the point that rod is trying to make and again there is a jury -- there is a jury hearing some of this, his innocence, he says will be proven if you show everything and the government can't bring a partial or incomplete thought and try and prosecute on them and there is 500 hours of tape, though and it will be a long trial anyway and longer if you play the tapes and sometimes you can, you know, drown people in the information. and, maybe that is the tactic they are taking. but -- martha: lynn, if i could jump in, he's basically suggesting that the reason they are parsing the tapes is to protect people and he said i had conversations with rahm emanuel and people from the union, who claimed to be representatives of the president, and he's saying, you know, that they are protecting certain people in order to get him. >> well, that will -- that is part of his argument, if you play the tapes, in full it is not so much for his point of view, remember, he's out to get himself not convicted. martha: of course. of course, understood. >> his point point isn't so much they are protecting other people. i think he's a lore aawyer and what he is trying to do is to have a construct, artificial or not but the substances of his main point. martha: he wants to play all of the tapes, because he's telling people, they'll exonerate him and that will be hard to don't court. martha: lynn sweet, great to have you, thank you very muchment. >> thank you. bill: i'd like to see blago on the stand, something we'll televise live. martha: you bet. bill: are changes coming to a classroom near you and why the feds say teach it our way or say good-bye to your funding. whoa! martha: and allegations are flying, former porn star sent. >> jameson allegedly roughed up and is plaming a former ultimate fighti -- blaming a former ultimate fighting champion. we'll be right back. ♪ ♪ love stinks ♪ ya-ya... ok, maybe it was my fault. she told me to kill the weeds. and you did. along with the grass. i used the wrong stuff. there were dead spots everywhere. this is the right stuff. ortho weed b gon max. it kills weeds down to the root. even the tough ones like dandelion and crabgrass. but unlike that other stuff, it won't kill the grass. ortho guarantees it. kill the weeds, not the lawn. weeds, not lawn. got it? yea. ortho weed b gon max. defend what's yours. this is why we do this! freedom! the open road! no doubt! and progressive has great coverage and policies starting at just $95 a year. i dig that! most bikers do -- that's why progressive is number one! whoo! whoo! let's renew up. yeah, that sounds good, man. do i have any bugs in my teeth? no, you're good. number one in motorcycle insurance. now, that's progressive. martha: one of the world's most popular cage fighters is denying that he assaulted this is porn star girlfriend, okay? tito ortiz, in the world of mixed martial arts arrested on suspicion of domestic violence, accused of beating his other half, adult film star jenna jameson, and he insists that he never hit her, claiming it was an altercation that started over jameson's drug use. and the couple lived together with their twin boys in southern california, and jameson's father says she has taken out a retaining order against the ultimate fighting champ and we'll see what happens with the tangled web. being woven here. bill: j. giles band, isn't it... and a battle is brewing over what your kids learn in school and governors and education commissioners from nearly every state pushing a plan to create a common core of standards for language and math and argue it will better prepare kids for college and the workforce and critics argue, to put our kids further behind students, in asia, and europe. and anita vogel is tracking down the truth. what is common core math, what is taught there. >> reporter: the focus is on math here. and this is a proposal coming from governors from across the country as you said and it is an attempt to nationalize math standards. they want to teach math from the bigger picture, the bigger picture perspective, rather than for a certain grade or a certain test. and it is about a couple of suggested changes here, teaching mult mult multiplication in the 4th grade rather than 3rd and making sure kids understand problem solving rather than memorizing tables. >> one of our students had a test a few years ago and came to me and she said, you know, i can do this, but i don't get it. and, what a horrible message to send to kids, that mathematics is just about crunch through it and get an answer, and it doesn't matter if it makes any sense, doesn't matter if you know what the answer means, you got the answer, good, and we'll push you ahead faster. >> reporter: proponents say a national standard promotes continuity from state-to-state. bill: interesting development, thanks, from l.a., we'll watch that and there is a new law teaching elementary schoolchildren about gun safety and is not met with satisfaction on everyone, and a fair and balanced debate, minutes away on that. martha: looking forward to that and he's suspected of smuggling explosives in his pants on board a christmas flight to detroit and umar farouk abdulmutallab, many thought he was acting alone but wait until you see the video of the man at a terror training camp. that is next. bill: and more scenes from arizona. critics close to rioting in the streets, and vandalizing buildings, and something like we have not seen before, what to do about the immigration problem and a local sheriff tells us how he will implement the law with his officers, in minutes. 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[ exhale ] [ male announcer ] listerine®. clean deeper. get healthier™. band now we're insuring overts do18 million drivers. gecko: quite impressive, yeah. boss: come a long way, that's for sure. and so have you since you started working here way back when. gecko: ah, i still have nightmares. anncr: geico. 15 minutes could save you 15% or more on car insurance. soak our yards in color. get our hands a little busier. our dollars a little stronger. and our thinking a little greener. let's grab all the bags and all the plants and all the latest tools out there. so we can turn all these savings into more colorful shades of doing. more saving. more doing. that's the power of the home depot. we've made a special buy on perennials. 5 for just $10. martha: this is fascinating. there is new video of the suspected christmas day underwear bomber, pictures of him. look at him, umar farouk abdulmutallab. standing an al-qaeda training camp in yemen, the 23-year-old nigerian man shooting guns at targets and he pled not guilty to trying to blow up the christmas day flight in detroit. and, national correspond catherine herridge is in our new york bureau. what do we know about the video. >> reporter: there seems little doubt the man in the video is the attempted christmas day bomber or suspected christmas day bomber, umar farouk abdulmutallab. i had a lengthy conversation with a counterterrorism official this morning and he said when you look at the videotape, right there, you see a screen grab you have to have context, this is propaganda and this was staged and this was described to me as a very rough video, and, one that was meant to portray a sophisticated training strategy in qaeda but it doesn't suggest that and the picture has a lot of shock value, the official said to me it doesn't add to the body of information they have about the camp in yemen in part because umar farouk abdulmutallab whom you see there is in u.s. custody and has been providing information. for several weeks now. martha: i mean, it does squarely sort of answer some questions, about the initial thinking, that perhaps this was a crazy young man who was not connected to anything. >> reporter: well, it certainly is more evidence which we have been able to gather, by other means, that he is connected to the group, aqa al qaeda in the arabian peninsula and we had the arrest of two important pieces of video and the second is an interview with the american born cleric, an war al-elahi, and he's, also part of that he al qaeda in the arabian peninsula, and what is significant of the video, in the corner of the video, there is the al qaeda emblem, propaganda, that is not -- not the right video. martha: we just showed that. >> reporter: but, there is an emblem burnts into the corner of the video and is this first -- >> here it is. >> reporter: there it is, the golden symbol is the al qaeda symbol and we have seen hundreds of videos from an war al elahi, but never saw the video with that al qaeda emblem and he's visually attaching himself to al qaeda in the arabian peninsula and that is a significant step in that it takes -- him further down the road in this relationship that he has xhentd cement -- cemented. martha: what does he say the christmas day bomber or the fort hood killer. >> reporter: it is in arabic and it was broadcast by al-jazeera and refers to major nadal hasan and umar farouk abdulmutallab as his students. so, once again, he draws a very direct connection to these two men. one who is blamed for one of the worst shootings on the u.s. military base in list, you see him on the left and the right, a 25-year-old nigerian, who nearly killed 300 people in the u.s., on christmas day. and perhaps many more, in detroit itself, as the plane had been brought down. martha: he has surfaced -- >> reporter: the face of the future. martha: indeed. catherine, thank you very much, and thanks for bringing it to us this morning. bill: arizona's governor argues her state must act because the feds failed to stop a flow of illegals and drugs out of mexico, into arizona. some opponents now demanding a boycott of the state. we are getting images of vandalism, prompted by the law, it is hard to read in this picture but it says burn the racist city. only blocks from where the protests were held over the weekend and phoenix and others are threatening lawsuits and our next guests have a lot of stake in this debate. fransisco hernandez is an immigration attorney and doesn't like the bill and thinks it will go down with a constitutional challenge. paul babieu is the sheriff of a county in arizona, and sheriff, have you had the chance, have you instructed your officers on how they are required to carry out the law? >> well, already we are doing that every day. we do not profile. a third of my staff, are hispanic, latino and we go out there, in every call and every case build reasonable suspicion and probable cause whether there is law enforcement action or a civil matter or there is no action. bill: so that conversation has begun already and will any of what you are telling your officers today change, say, come midsummer? july, when the law is implemented? >> well, we'll reinforce that. here we trust our law enforcement officers, all across america with this awesome power, to actually suspend somebody's constitutional rights and freedom, just to arrest the citizen, or, even lawfully to take somebody's life and, yet, here we have the debate, this our police officers in america, and in arizona, specifically,can't but those building blocks into place, to build that reasonable suspicion. and, probable cause to take action. bill: and the way you explained it, it sounds reasonable and mr. hernandez, what is wrong with this. >> it is amazing to me that the same sheriff would admit that he fails -- feels it is okay to suspend somebody's constitutional rights and there is a term immigration and my customs officials use, is moad, mexicans out after dark and, really, clearly the sheriff is admitting what he has been doing for years has been illegal, otherwise why would they need to change the law. bill: you are saying -- >> absolutely not. bill: sheriff, what about that, is he making a claim that tries or not. >> absolutely not. i had two deputies, just last night, and cnn was in tow and they stopped a car, for speeding. and the driver exited the vehicle which officers always see as very scary on a traffic stop, and made contact with the deputy, the trunk had opened when the car stopped, which is also another alert. and, made contact with the deputy and said, hey i'm getting directions and pulled into somebody's driveway. and the driver then ran, fled on foot, the deputy made contact with the car, there were 9 people in the car including two people in the trunk. now, that is called building blocks to reasonable suspicion that probably something is going on here. and, all of us -- >> that is not the point, the fact is you are going to be suspending citizens' constitutional rights. but, this is a big -- it misses the bigger picture -- >> before you mach the point, sir, what is constitutional about a person who is unable to prove that they are in the country legally. >> listen, first of all, no matter who you are, if you are in the country you are entitled to constitutional protections and my most conservative friends would tell you that. but this point of the matter is we are not trying to protect a certain class of people who may be violating the law, the fact the sheriff is implementing the law, implementing his own version of the law and that is not the point. we are bringing here. all of the frustration you are seeing from both sides of the issue, is that we've got to do something, first of all, immigration issues is not a criminal issue or a terrorism issue, it is a jobs issue, an economic issue and as long as there are jobs they will come and if you remember, a few years ago, everybody thought that building the wall was going to solve the problem. and solve the problem with drugs. and everybody spent billions of dollars on this -- what do they call it virtual fence... bill: it was millions, and -- you raised the numbers, and interesting point and the debate is starting today and going forward. sheriff i know you want to jump in but i want to make this point. what the governor is arguing in arizona, she thinks that is all just huff and blater at this point. and thinks once the law is enacted everyone will see it can be fairly implemented and carried out for lack of guidance from washington. now, before the first of july rolls around, sheriff, would you expect -- >> yes. bill: the federal government to act, which would make the law null and void? >> i hope so. senator mccain and senator kyl proposed even sending 3,000 soldiers to the border to stop the flow of the illegal immigrants and law enforcement sheriffs and police chiefs, wouldn't be asking for this, unless we could handle it ourselves and we can't. crime is off the charts. this is the kidnap capital of america. right here. we have had numerous officers who have been killed, not by the majority of the illegals who just want to work here but 17% who have a criminal record, already in our state and that is where respectfully, mr. rodriguez, don't live here in arizona... >> hernandez... >> i'm sorry. we have the overwhelming effect of crime here in our state, and -- >> i'll give fransisco hernandez -- >> i agree with the sheriff 100% on that point and most of the people are trying to work and i'm on the same side as you, i think you are right. >> that is not our debate, it is to protect our citizens and families and crime is off the charts here and we need help. bill: and we'll pick up the debate tomorrow, sheriff, thank you and paul, thank you, from pinal county. martha: the news out of florida this morning, marco rubio, no big surprise, is announcing officially, his run for the senate in florida. filing the paperwork and all of that, we have known for a long time he's interested in the senate seat and wants to be the republican candidate for florida and the big issue is whether or not charlie crist will continue to run as a republican as well. marco rubio surprisingly up staged in the polls, the once very popular governor crist in florida but he seems to be shrinking in the polls compared with marco rubio and considering an independent run, governor crist is, definitely before friday, whether he'll run as an independent and it is a hot, hot race in florida and we are watching it closely. bill: will be a great fall, isn't it. martha: a live shot this morning, indeed. absolute absolutely. bill: reading, writing and gun safety, a curriculum causing stir with some parents. martha: and when it comes to partisan politics washington has nothing on these guys. see the smokey scene? wait until i tell you what happened in there. bill: also, in a iranian cleric claiming a scantily clad women caused earthquakes around the world, a group of american college students say we'll test this theory. boob-quake 2010. coming up. we can't make this stuff up! >> ♪ ♪ shake, shake, shake it all the time...♪ [ male announcer ] if you've had a heart attack caused by a completely blocked artery, another heart attack could be lurking, waiting to strike. a heart attack caused by a clot, one that could be fatal. but plavix helps save lives. plavix, taken with other heart medicines, goes beyond what other heart medicines do alone, to provide greater protection against heart attack or stroke and even death by helping to keep blood platelets from sticking together and forming clots. ask your doctor about plavix. protection that helps save lives. people with stomach ulcers or other conditions that cause bleeding should not use plavix. taking plavix alone or with some other medicines including aspirin may increase bleeding risk, so tell your doctor when planning surgery. certain genetic factors and some medicines, such as prilosec, may affect how plavix works. tell your doctor all the 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 rare but potentially life-threatening condition, reported sometimes less than 2 weeks after starting plavix. other rare but serious side effects may occur. my old contacts would sometimes move and blur my vision. then my eye doctor told me about acuvue oasys for astigmatism. they work with the way my eyes move and blink, which helps them stay in place. so now, i'm seeing more clearly. [ male announcer ] for a free trial pair certificate, go to getacuvue.com. >> i'm gregg jarrett, coming up in 20 minutes on "happening now" 2/3 of americans want tougher government regulations on financial institutions, last night when republicans blocked the bill that would arguably do that, did they hurt themselves, coming up in november? also, coming up on happening now there is a new study out that says if law enforcement cracks down, more strictly on violence, all it does is create more violence, that is dumb study or is there merit to it? we'll talk to a couple of experts. on "happening now." bill: gregg, see you at the top of the hour. if you don't like the law, forget the debate, go right to the battle. after a controversial vote, lawmakers in kiev, threw everything they could grab, and the flag, smoke bombs, the speaker is taking cover behind the umbrella. i'll save myself behind my black umbrella, a smart guy. bill: the haze did not stop lawmakers and they went to the punches next. lovely. i don't know what that parachute is doing on the ground, from ukraine, where they make up... martha: it is moments like that when you say, you know, we manage to pull it off pretty well and have a lot of fighting and debating and no eggs, don't need an up billy to go into congress. bill: and no smoke bombs. martha: schoolkids may not be old enough to pack their own lunches but are old enough to learn how to pack something else. a new law will require virginia schools to teach gun safety rules to elementary students and as you might expect, this has got folks fired up! meet eddie eagle, the nra's mascot and he'll offer his thoughts on gun safety to schoolkids. is this a job for the school system? that is our fair and balanced debate, laurie haas is a parent whose daughter is a survivor of the virginia tech massacre in 200 7 and is a spokesperson for the virginia center for public safety and alexa frist is a spokeswoman for the nra, welcome, ladies, good to have you with us today. laura, let me address this first, one might think given your daughter's experience you would want kids to learn as much as they could, about being safe with guns, and that even school might be a good place for that. why not? >> i don't think schools are a good place for that at all. i think it is a parental choice, and, schools have no business, being in the firearm safety education business, and, mandating new curriculum to the state board of education, while simultaneously pulling funding is unacceptable. virginia's legislature and the governor shouldn't be about the business of promoting, you know, a perspective of a special interest group and education should be left to the state board of... knowledgeable experts. martha: i hear what you are saying and you look at what is going on in schools around the country it raises questions, about why any school would be considering these kind of extracurricular programs at this stage of the game when we need to focus on, perhaps, the core curriculum and i want to get to that in a sevenltincond, but, f want to give alexa the opportunity, what is eddie the eagle's message, what is he saying in these schools. >> it is a simple message but is vitally important, he says stop, don't touch, and leave the area, and tell an adult if you encounter and fire arm, a message we taught to more than 23 million children over the last 22 years in all 50 states and the program that we're talking about doing in virginia is no different. it will help save lives, and, i don't understand why anyone would be against educating our children on safety. martha: you know what? that is certain of the message i have always told my kids as well. you know, if you see a gun, let an adult know right away and back away from it, because, you know, i think all of us know, at least one story, in their own history where, this has been a frightening situation. so, let me just go back to -- because, i think there are two issues here, i think everybody is for gun safety with kids and one of the problems is that we are -- we wonder whether or not it needs to happen in the school system. laurie, you know, why do you think it doesn't need to happen in the school system, and, what do you think they should be doing instead? >> well, from my understanding the eddie eagle safety program is in and of itself a good program. it just has no place in the school system. number one. it is directed at k-2. what will you do with 3rd through 5th grade,and number 2, an independent and respectable organization, no less than the american academy of pediatrics in '04, found eddie eagle does not work. children are able to verbalize what they have learned, but when it comes to role playing and demonstrating. they failed miserably. martha: she said your program doesn't work. >> that is absolutely false, the program is an award-winning program, developed with the help of the nation's top child psychologists. who say the best way to get this vitally important message through to children, is through something like a cartoon, they can really relate to, a simple message, as i said, stop, don't touch, leave the area, tell an adult, what is simpler than that. and it is a program that can be expanded to other grades as well and i don't think you stop liking cartoons at -- >> everybody agrees it a good message and the question is, when our kids are barely learning grammar in a lot of school situation and you hear often from the teachers there is not enough time to teach everything they need to teach, whether -- >> absolutely. martha: whether the classroom is this right place to this, ladies thanks for presenting both sides of the argument, good to have you with us. thanks very much. bill: and who helped bring down the u.s. economy, is wall street to blame or anyone else target. a man who runs the biggest money machine in all of new york is take questions at this moment, we'll tap in there and the iranian cleric argues women cause earthquakes if they don't dress with humility so i group of american college students but that theory to the test. and, this -- and we shouldn't be surprised by the results. hi-- number two, please. would you like that to hurt now or later? uh-- what? (announcer) pepcid® complete doesn't make you choose. it neutralizes acid in seconds and controls heartburn all day or all night. pepcid® complete , works now and works later. ♪ [ male announcer ] designed to function the way you funion. the lexus rx. ♪ at your lexus deal. bill: a new series on the fox news channel, the battle that made it to the u.s. supreme court, the high court will decide who owns beachfront property in florida. and that decision has implications for nearly every state that has a beach. here with the latest on "it's your land" series, senior correspondent eric sean streaming live from florida. hello, eric, good morning. eric: hello, bill. bill: what if you had a barbecue and you came home and people were using it? would that be wrong? what if they were camping out in your backyard? that is what property owners say is happening at this beach in destin, florida, this is a private beach and what happens when the state of florida puts new sand along the beach, does it make the new part public? u.s. supreme court now deciding that case, we expect the decision any time. and the homeowners here, some say, the government is stealing our beach. eric: the tranquil beach in destin, florida is actually a battlefield over property rights. >> the government is taking our waterfront property and making it public beachfront property. >> reporter: linda cherry along with her husband, jim own the beachfront home. and she says their property deed includes the whole beach in front of their house. right down to the surf. but when the state tries to save the beach from erosion by adding sand at the water's edge, the new strip becomes public. >> is this your beach? >> this is my beach. eric: your land. >> this is my land. >> reporter: that and government wants it. >> they want it and want it without any cost to them, they just want to take it. >> reporter: is the city taking private property. >> we don't believe we are taking private prompperty, we a restoring the beaches and creating new beach. >> reporter: state and local officials argue they are not grabbing land. but, adding sand. to protect the beach from further erosion. >> without it, then not just their private property, but the roads, and the sanitary sewer lines and the gas lines and stuff would be exposed and that is why we believe it is the legitimate public purpose. >> reporter: restaurant owner john comber has no problem with the newly created beach being made public. >> it is this lesser of two evils, if we don't do it we'll lose or building and business and we feel like we need protection from storms. >> reporter: linda fears the consequences. >> everybody in america who owns property needs to understand if we can lose our property, here, our waterfront property, in destin, they can use their property. eric: the florida state attorney general calls it a giving, not a taking and linda cherry and other homeowners say it doesn't mean they have to give up their waterfront property. if you have a land issue, we want to know about it. here's our address, yourland@foxnews.com. and we've received hundreds of e-mails already and we're going through each and every one of them. bill: stop number one, destin, florida. live on the beach of the coast of florida. martha: goldman sachs made a killing while the economy was taking a nose-dive and here's the big question, did the wall street giant do anything wrong or illegal? there they are, getting grilled by the folks on capitol hill, who want to find out what they know about this. we'll bring you right back there, as soon as we come back. t 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. we helped keep your skin clear. now we have a solution for wrinkles. neutrogena anti wrinkle with retinol sa smoothes even deep wrinkles. it works...beautifully. neutrogena. bill: a whole lota shaking, martha! martha: my gosh. bill: challenging a cleric