gretchen: good morning, everyone. we made it to the midweek, wednesday, november 4, 2009. a new political reality after two huge victories overnight for the g.o.p. >> eight months ago i applied for the job of governor of virginia. tonight you have hired me. >> i stand here tonight full of hope for our future, full of expectations and dreams not just for my children but for all the children of new jersey. gretchen: the issues that mattered most to the voters, straight ahead. steve: meanwhile, president obama more likely watching the chicago's bull game last night. should he have been paying more attention? we're going to report and you are going to decide. brian: a corporate executive kicked out of first plas class for what he was wearing. >> i was handed the first class boarding pass. then it was pulled back out of my hand and given this original boarding pass. brian: wow. we're going to show you what he had on it might surprise you. meanwhile, our slogan from hazel in north carolina. yes, hazel, this is about you. "raise your flag, turn on the tube, watch "fox & friends" and get the news." [captioning made possible by fox news channel] captioned by the national captioning institute -- www.ncicap.org -- steve: welcome aboard, folks, to studio e. it's an election postgame show. gretchen: exactly. it was a big one last night. if you're like me, you love staying up and watching exactly what is going to happen and how it's all going to be the morning after. well, for the g.o.p., two big wins. in new jersey almost unprecedented for a republican to now be the governor there. and in virginia, much more expected in the last week or so. but then there was that upstate new york congressional race where the conservative candidate by many counts thought to be winning in that race losing in a squeaker. so what does this all say now about the political landscape in america just one year after barack obama won in a landslide victory? steve: the key, i think, was clearly the independents. the people who flocked to barack obama in 2008, according to the exit polls, independents who gave barack obama and the dems a victory just last year, a year ago last night, fled to the g.o.p. for instance, apparently the margin is 2-1. and what is stunning -- and look at this. among independents chris christie picked up 60% of them. and that is stunning. it was even bigger in the commonwealth of virginia. mcdonnell did very, very well, particularly in northern virginia, fairfax county, places like that. brian: let's stop in your place, in new jersey. i thought for sure we'd see bread baier saying the race was called. sure enough we were in repeats. this was called. it wasn't much of the race in the end. it was about five points separating the two. in the end it would be governor corzine who would soon be the former governor. here he is talking about the loss. >> i called mr. christie and congratulated him on becoming new jersey's next governor. i want you to know that chris was gracious in his response, and we will work hard together to make sure that the transition is smooth, that we are able to do everything that serves the people of this great state. >> we are in a crisis. the times are extraordinarily difficult. but i stand here tonight full of hope for our future, full of expectations and dreams not just for my children but for all the children of new jersey. and kim and i are going to get to work to make that happen starting tomorrow. [cheers and applause] gretchen: you know how you always hear "it's the economy, stupid?" guess what. it's the economy, stupid. the most amazing thing is when you look at the exit polls, what is the most important issue to people? in new jersey 32% said the economy. 26% said property taxes because they are through the ceiling, no pun intended in that state. corruption was 20%. health care, amazingly, only 17%. you have similar results, though health care is of higher importance in the state of virginia. brian: so let's talk about virginia and find out why people voted the way they did. the economy and jobs nearly 50% of the people. health care, 24%. and that is not going to get done until next year. we'll talk about that later in the show. property taxes, as you mentioned, and transportation. but look at the difference. if people want to look at what happened in virginia and say why did bob mcdonnell win, some say, wait a second, bob mcdonnell talked about jobs about roads, about schools. he would not, even though he is a values candidate if you look at his profile, he was not gooding there. gretchen: you know what he learned from? john mccain. because john mccain, by all accounts, when that whole economic downturn happened and he was running for president, he sort of missed the train at the station on that one. and so what ended up happening was that these candidates, the governor candidate in virginia and the governor candidate in new jersey focused their campaigns on the unemployment numbers and the economy. and that appears to have done the job for them. brian: just real quick, for those who say, well, the president is losing popularity, and that is what's happening, that's not true. 57% of the people in new jersey approve of the job the president's doing. and 53% of those in virginia approve of the job the president's doing. that doesn't mean they like his policies. they like him. steve: meanwhile, when it comes to new york's 23rd district, as it turned out in the end, the independents, the conserve of it candidate -- conservative candidate did not win. although it was a squeaker. it looked like some of the late-breaking polls showed him up by five or so just days before the election. but in the end it was the democrat who won. and you might say, ok, wait a second, the republicans held that particular seat for close to a century. how could a democrat win? well, remember. it was less than a week ago where the republican who was selected by the party machine up there decided to drop out. and what did she do? she said, hey, don't vote for the conservative who is more aligned with republican values, vote for the democrat. well, as it turned out, the democrat won. gretchen: i do think that that signifies that there is a polarization within the republican party. this is something they're going to have to combat before the mid-term elections in another year because there's a risk there between the conservative people in that party and the more moderate people and whether or not they can come together will be the biggest issue on the polite for the republican party in the coming year. brian: the president of the united states did not watch the results. his kids and his wife went to see miley cyrus. did he not see the results come in. he said he was not that concerned about it. first, here's major garrett on what the president was doing. >> the rhapsody of the moment couldn't last. election night, even one as historic as barack obama's fade. and everyone knew the inauguration glow would fall prey to the recession, two wars and bailouts, costing the president popularity points along the way. according to gallup, the gap between the president's approval and disapproval narrowed steadily, fall from a spread of 56 points on inauguration day to 17 in late october. still his approval rating remains at 53%. >> the good news for barack obama is that people like him. his brand, if you like, has not been overly diminished. >> but on key aspects of presidential power, mr. obama has lost ground. a democratic pollster who worked for the clinton white house sees signs for concern. >> his ratings on leadership, decisiveness, getting things done are declining marketedly. >> impressions of mr. obama as honest and straight forward frel 41% to 33%. his rating a firm and decisive leader also fell from 37% to 27%. confidence in the president's declining, too. down from 61% to 49% on whether he will make the right decisions for the country. according to a recent abc news/"washington post" poll. >> the detailed evaluations of him are going down precipitously on key measures that are critically important to a president. >> but you'd never know that listening to the president. >> if we stop now, didn't do anything else for the next three months, we would have had one of the most productive legislative sessions in decades. gretchen: more on that coming up and whether or not there was a referendum on the president. now your headlines. we start with a "fox news alert." the bodies of three missing college softball players found inside a jeep submerged in a pond. police in north dakota used cell phone signals from the women's last desperate calls for help to locate them. the girls' friends reported that they heard them saying something about water when their call got cut off. last night a memorial service was held for afton williamson, crirs continue gemar and ashley neufeld. >> they would want nothing more for us to stay close to each other and appreciate every second we have with one another. gretchen: the girls had been on a star-gazing trip when the tragedy occurred. another "fox news alert" at least 700 people hurt in iran after an earthquake jolted the port city of band yar abbas. iran's state news agency said 100 are in the hospital. the rest are described as minor cases. this as three protests in iran turned violent today on the 30th anniversary of the takeover of the u.s. embassy in tehran. these pictures come from some of those protesters. they report police were firing on some people, injuring some. but that has not been confirmed. president obama says the anniversary of the hostage crisis is a good time and a chance for u.s.-iran relations to improve. he's calling for iran to get off the path of sustained suspicion, mistrust and confrontation. more break news from overseas. secretary of state hillary clinton now says washington wants israel to stop the settlement in the west bank. clinton is in egypt as part of a tour to smooth over relations with arab leaders. clinton says it's good israel delayed the building of the settlement but that they should be stopped all together. voters in maine rejecting gay marriage in the state, overruling their governor and legislative leaders. 53% voted against legalizing gay marriage despite several state leaders actively promoting same-sex unions. gay marriage has been voted on in 31 states and has lost in all of them. 42-43. it's all going to happen at new york city's radio music hall no less. president george w. bush -- not h. and president clinton will square off in a debate in february. i think it's february 25, being billed as the hottest tick net political history. yeah. i'd argue that. tickets go on sale sunday, about $1,200 for the good seats down front, $6 $60 for the nose bleeds. brian: and there are bad seats at radio city. line up now. that should be fantastic. they are buddies. meanwhile, look at this hour. we have dana as well as steve forbes. should we get started? steve: we have a busy three hours. the sagging economy weighing on the minds of many. is that why democrats lost those huge races in virginia and new jersey? we will talk to steve forbes who knows huge, coming up next. brian: and you will not believe this video. cases and cases of high-priced liquor. don't look, scott. crashing down on a forklift driver. all the jack daniels going waste. what is friday's going to do with its chicken batter? brian: republicans celebrating gubernatorial wins in virginia and new jersey this morning after campaigning on domestic issues like government, spending, the deficit. so going into the 2010 mid-term elections should lawmakers focus more on the economy and less on social issues? let's ask steve forbes. he joins us now. he's got a new book. we'll talk about that next segment. but, steve, you're in philadelphia. obviously no one told you game six is in new york. we'll talk about that later. but first, governorships change parties. 89% of those in new jersey and 85% of those in virginia say that they are worried about the economy and that figured in their vote. does that surprise you? >> not at all. new jersey as you know is a vee high tax state, highest property taxes in the country, very ferocious income tax, spending out of control, indebtedness increased tenfold in recent years. people are worried the economy is tanking. usually new jersey does better than the rest of the nation. now people and businesses are moving out, forced out of the state. virginia i think the same thing. people are concerned about the economy, concerned about issues like forced unionization which would effect job creation. and that's why you've got the results they did. both candidates focused on economic issues. that's why in both virginia, purple state, you might say, and new jersey a very blue state, the republicans did well in both. brian: you're a guy that captured the imagination of a lot of independents when you were running for president. why did so many independents seem to jump off this white house's bandwagon in this vote that happened yesterday? >> well, i think it boils down to the economy. people are very, very worried about what's happening in washington on this bing spending, talk of higher taxes, taking over health care, government bailouts everywhere. and the key thing is there's not a feeling that jobs are being created. small businesses are still having a hard time getting credit. the dollar is weak, which also hurts investment. so even though there's some economic growth, it's not the kind that's going to generate vigorous job growth. and that's what got people worried. brian: let's begin side the numbers. you're a free market guy. let's let the free market decide. the average american says, help me, get me a job whether it's a manufacturer job from stimulus spending, i just want to be able to support my family. yet 53% of those in virginia say the government is doing too much, too many things and it makes them uneasy with their agenda. >> well, that's very understandable. people, i think, understand that the government does not create wealth, the government does not ultimately create a viable, sustained, long-term economy. the private markets, free markets, have to do that. entrepreneurs have to do that. government didn't create the ipod and the other things that we now take for granted. entrepreneurs did. and so the government spending, those were one-shot programs. we saw it with cash for clunkers. that was a one-shot. that's not getting small businesses the credit they need to grow, expand and create new jobs. so when the government muks more and more in the economy, creates more sluggishness -- we saw this in the 1970's, where we ended up with that decade in the early 1980's with unemployment rates higher than we even have today. brian: as you know, the deficit is climbing, unemployment skyrocketing, and the value of the dollar in your walling let is tanking. -- in your wallet is tanking. can capitalism save us or did it get news this spot in the first place? steve forbes says it can save us. and the h1n1 virus is spreading so fast the government says it's having a hard time keeping up with demand for the vaccine. what does that mean for those still looking to get a shot or a sniff? plus, next hour pastor joel osteen joins us live. steve: welcome back on this wednesday. interest rates will probably stay where they are, very, very low. federal reserve delivers its decision later on today. the fed heads say getting people to borrow money to jump-start the economy is more important than worrying about inflation. the prime rate night now 3.25%. meanwhile, the hosts of the oscars next year, steve martin and alec baldwin. the last time more than one person hosted the oscar ceremony was back in 1987. producers say the comedians are the perfect pair. this will be steve martin's third time hosting the academy awards, alec baldwin's first. stand by for that. gretchen: the senate votes 85-2 to extend the tax credit for first-time home buyers through april. the mish you're was esh -- measure was scheduled to expire. but this extension, is it good for the economy or not? let's ask fox news contributor steve forbes, editor in chief of "forbes" and author of "how capitalism will save us." congratulations on the book, by the way. >> thank you very much. gretchen: extending this home buyer tax credit a good idea or just another sort of plugging the hole like cash for clunkers for a short period of time? >> well, that's right. no surprise that congress passes it or extended it. but it's not going to revive the economy. already now you're starting to see more and more fraud with the thing. it just takes sales from the future into the present. but it doesn't deal with the fundamentals of the problems of the housing market which is a weak economy, uncertainty about mortgages, and so until they deal with the big things these band-aids help short-term but they're not going to get us on a sustained path of growth and real job creation. brian: i understand unemployment benefits probably go under the same heading. a lot of people think, people on the outside, maybe nonexperts like yourself, might say -- "how capitalism will save us," the name of your book. well, didn't capitalism get us into trouble, as people say, abusing the system a little bit? >> well, when you have genuine capitalism, the system usually works. if you look at all the big economic crisis of the past whether it's depress, inflation, or what we've had in the last couple of years, government is the big villain. take a look at the housing bubble. we couldn't have had a housing bubble if the federal reserve hadn't been printing so much money, keeping interest rates at an artificially low level, guaranteeing junk mortle mortgages. yet when the government makes a huge mistake and mucks the economy up, it's always the private sector, free markets that get the blame. well, when government makes big mistakes, bad things happen. you saw it in the 1970's, you saw it in the recent decade with wall street. steve: but look at what's going on with capitalism right now in washington, d.c. it's being demonized. and the democrats health care bill, the most successful americans will be penalized to help pay for a big chunk of the health care. and then you look at the administration when it comes to executive pay and some of these bailout firms, they're eliminating it. >> that's right. the government, when they hurt the economy, put it in the kind of recession that we're in today, jobless recovery, they don't blame themselves. they always blame somebody else. it's always somebody else's fault so it's no surprised these things get demonized that they point to executive salaries and the like. and they continue to do dumb things like try to raise taxes, like they're gooding t going too with health care or debasing the dollar, making it cheaper and cheaper. then they wonder why we don't get good business investment. they ought to look in the mirror. they're the problem. they do fundamental things like a stable dollar, low tax rates and by goli, you'll -- golly, you'll see this economy come roaring back. gretchen: you can read more about it in his new book, "how capitalism will save us." thank you so much for getting up early. >> thank you. good to be with you guys. steve: 27 minutes after the top of the hour. straight ahead, democrats on capitol hill handing out copies of the new g.o.p. health care bill. these binders, blank. but the real bill is not. we're going to tell you what the g.o.p.'s alternative is in two minutes. gretchen: waste of a good -- brian: waste of a good binder. and he's a corporate executive with thousands of frequent flyer miles but kicked out of first class because of what he was wearing. hear his story. gretchen: talk about a rough day at work. watch this. a forklift driver ends up on the wrong end of the cargo. the crash all caught on camera. steve: where's my patrone. and happy birthday to laura bush, 63 years old today. happy birthday, mrs. bush. gretchen: looks fabulous. and added a little fiber? sweet! sweet! sweet! (announcer)splenda no calorie sweetener with fiber. now for the first time, a gram of healthy fiber in every packet. sweet! (announcer) splenda no calorie sweetener, starts with sugar. tastes like sugar. but it's not sugar. no calories and a little fiber. how's that taste? (together) sweet! sweet! (announcer) splenda with fiber. imagine life sweeter. gretchen: half past the hour. a ship carrying weapons including missiles headed for lebanon's hezballah guerilla group seized by israel this morning. were these weapons supplied by iran? brian: from the port of ashdod, mike what do you know? >> good morning. the first thing i can do is step out of the way and show you the ship itself. what you can see is the yellow tower. that's the tower off to the stern of the ship which would house the bridge or the wheel house. i believe that you have some of the equipment and another ship obscuring the view of the rest of the ship. but this is a very large container ship that was seized about 100 miles out in the mediterranean sea by israeli naval commandos. it was an antiguan flag ship. we have speculation through the israeli media. some reports indicating that the size of this slipment would rival or even eclipse the one that was seized off the infamous karean -- karian a, a massive weapon that was seized coming up through the red sea, destined for the gaza strip. this one, however, according to israeli officials, was headed for sir sire i can't and possibly into the grounds of hezballah militants. we have a statement from the defense minister saying these weapons were destined for the terrorist arena in the north. again, indicating that was headed for hezballah, indicating it was the type of weapons that hezballah would use. we have a statement from the prime minister, benjamin netanyahu, saying that these weapons could have hit israeli cities. that once again indicates missiles. we have unofficial reports through the israeli media that once again this shiple contained katyusha rockets. if you remember back to the lebanon war, hundreds of the rockets destined for israeli cities, aimed at israeli cities. this is not the type of weapon a modernized military uses. something like syria would not be interested in a weapon like this. this is primarily a terror weapon intended to be caimed at civilian pop -- aimed at civilian populations. all of it is speculation. we're waiting for the official word from the israeli ministries. steve: a gigantic bust. mike tobin from port city there in israel. brian: something tells me antigua doesn't make missiles like that. might be a problem there. gretchen: let's talk a little bit about a domestic issue that's been on our minds for the last six months, and yours, which is health care reform. guess what. as much as we thought, and even the president promised as recent as last week, that health care was going to happen in 2009, could it be that a real vote will not come now until 2010? that's apparently where it's heading. steve: remember back in the day the president made it very clear, we've got to pass this faftd, let's -- fast, let's get it before the end of the summer. would it be july? would it be august? yesterday the house of representatives, which already has a 1,990-page bill added 40 more pages of amendments. and they're getting ready to vote on it perhaps next week. but harry reid made it very clear despite the president with the timetable, harry reid said, "we're not bound by any timetable. the way things are set up in the senate, there's a real possibility -- during november they have a break for veterans day and then for thanksgiving. they will not be able to vote on it before the end of the year. although baucus says, don't hold your breath. we might be able to do it. brian: let's listen to senator reid and senator schumer. >> first of all, we're not going to be bound by any timelines. we need to do the best job we can for the american people. we want quality legislation. and we're going to do that. >> it may mean we won't get everything done as quickly as possible, but we're going to get it all done under harry reid's leadership. and we are going to change this country for the better. gretchen: interesting thing is, is that -- remember the republicans were saying slow down this process a little bit. and the democrats are say willing, no, we must do it absolutely right now. just like these businesses are too big to fail, we must have tim geithner be secretary of treasury immediately. now that seems to be trading. the elections last night may have a big impact on the blue dog democrats in the way they approach health care now. if they think that the tide was changing, even though it was only two states from last night, they may be more apt to listen to the american people in their states who are saying hold on, let's not spend so much money. steve: dana will be talking about that. but don't be surprised given the dynamics of what happened in those stunning g.o.p. wins last night if some senators start sounding more like joe lieberman. you know, why do we have to change everything when it comes to health care? maybe we should just do it incrementally. brian: and joe rebound areman has an editorial out talking about why are we rushing into this and why do we have to do it quite this way? the house says we're going to be done in time. i don't know about the senate. meanwhile, let's talk about the republican plan. on sunday and monday we found out the republicans released their version of what they call health care reform, changing some parts of the system and doing it gradually and costing less. let's take a look. the democrats got a hold of it. they were able to examine it yesterday. there's the cover. let's see. steve: that's a secret document. should they be having that brip they were helping the republicans hand it out. guess what. all blank. no ideas. steve: very funny. there is, however, a real plan. caroline joins us to tell us a little bit about it. >> house speaker nancy pelosi challenged the republicans to come up with a better idea to fix health care, and now they say they have. they've come up with an alternative bill but with their minority status. one that has no chance of passing. the g.o.p. bill would limit damages for medical malpractice, let small businesses group together to buy insurance, and would also get more americans covered. the bill promises to lower health care costs and do it without raising taxes. what it wouldn't do is expand medicaid or give subsidies to help people buy insurance. democrats say it doesn't do nearly enough that comes just as we see two key developments with the democrats' bills. the ones you have been talking about. the clock has started ticking with the house bill after they submitted what's called a manager's amendment, a 40-page final tweak. what the dems promise that they'll give lawmakers 72 hours to read it. that means debate and a vote could come as early as friday. saturday is probably more likely. it can certainly run into next week. but on the senate side leaders now admit their debate likely won't start until december. that makes it almost impossible to get a bill to the president's desk before early next year that fight goes into the spring it could have a major impact on the mid-term elections next year when all of the house and a third of the senate up is for grabs. now back to you guys. steve: caroline with a thorough report from our nation's capital. brian: not whether president obama will lose seats in his party in 2010 it's how many. that's his conclusion from last night. my conclusion is we should start with the headlines. gretchen: an update on a disturbing story. police in cleveland today expanding the search now for bodies in the home of a convicted sex offender after finding a total of 10 so far. 50-year-old sex offender anthony sowell will face a judge today on charges of murder, rape and kidnapping. investigators found four more bodies buried in sowell's backyard just yesterday. six bodies were found last week in the yard, basement, upstairs bedroom and crawl space. neighbors say they thought the bad odor came from an abandoned sausage factory next door. we will have an update on this gruesome story. steve: meanwhile, the h1n1 virus is spreading faster than the vaccine that is used to prevent it. the federal government says while the vaccine is become more available, it is still being outpaced by the virus itself. the government says it has received 31.8 million doses of the vaccine and expects to receive several million more doses by the end of the week. brian: more on that video we've been showing you all day. they say to never drink and drive. especially a forklift. check out this video from a liquor warehouse. a forklift driver in moscow consumes a bit too much of his own product, my hunch, vodka. here's the result. he slams into a vehicle. several shelves, $150,000 worth of liquor destroyed. that's a -- the driver hurt his leg no. word on whether he got to keep his job. absolutely a catastrophe. steve: absolutely. brian: get it? steve: absolutely a dry day across much of the country. we've got some rain through the great lakes and ohio valley. otherwise it is dry throughout the east and the west as well. that's a quick look at your fox travelcast. brian, hurry up, world series. brian: tonight, game six at yankee stadium. joe girardi sticking with andy pettitte even though he's 55 years old as a starting pitcher and pitching on three days' rest. he has three days' rest. he's actually 37. former red sox pitcher, met pitcher, pedro martinez will take the mound for the phillies. the yankees have a 3-2 lead in the series. game six of the world series tonight. get two seats for $25,000 each. do you want to go? scott, do you want to go? chris, do you want to go? come on. steve: i'd rather watch on it tv. the best seat in the house is watching it on fox. brian: very good idea, steve. gretchen: you didn't ask me. brian: i think you're going. are you going? gretchen: absolutely not. i have work tomorrow. remember that special show we're doing on the ship. brian: that's right. we'll find out. i'd go to the first three innings. former president george w. bush throws out the first pitch of the world series. that's the japanese world series! the game took place in tokyo stadium and was played. bush attended the game from a former japanese prime minister who loves elvis. he also professes to be a baseball fan. the two have a close relationship since the president left office. by the way, the giants won 7-4. let's go to the highlights. steve: congratulations. brian: there you go. gretchen: you know the justice who refused to marry an interracial couple? we have an update on him, next. steve: then the former press secretary for president bush, who we just saw throwing out the first pitch, she says both governor corzine and creigh deeds made a mistake by blaming bush. she's here live, next. brian: time for the "quote of the day." brian: what are they talking about and what's in their mouth? i have asthma. and when my symptoms-the coughing, wheezing, tightness in my chest came back- i knew i had to see my doctor. he told me i had choices in controller medicines. we chose symbicort. symbicort starts to improve my lung function within 15 minutes. that's important to me because i know the two medicines in symbicort are beginning to treat my symptoms and helping me take control of my asthma. and that makes symbicort a good choice for me. symbicort will not replace a rescue inhaler for sudden symptoms. and should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol may increase the chance of asthma-related death. so, it is not for people whose asthma is well controlled on other asthma medicines. see your doctor if your asthma does not improve or gets worse. i know symbicort won't replace a rescue inhaler. within 15 minutes symbicort starts to improve my lung function and begins to treat my symptoms. that makes symbicort a good choice for me. you have choices. ask your doctor if symbicort is right for you. (announcer) if you cannot afford your medication, astrazeneca may be able to help. steve: welcome back. right now we've got an update on the justice of peace in louisiana who refused to marry an interracial couple. the justice has just resigned. keith bardwell gave no official reason for stepping down. the couple filed a federal lawsuit against him on civil rights. meanwhile a corporate executive with best buy says he was kicked out of first class on united for wearing a track suit. armando alvarez says he used his miles to upgrade to first class on a united flight from dulles to connecticut. >> i was handed the first-class boarding pass and then it was pulled back out of my hand and given this original boarding pass. i was wearing exactly what i'm wearing right now which is completely puma outfit. i printed the rules. their 12-point commitment to customer service. nothing there does it say if you wear a puma running outfit with no holes, clean, that you can't get on first class. steve: united airlines has not responded to the claim. alvarez says he doesn't want compensation, he just wants other passengers to be aware of what's happen and hopes it doesn't happen to anybody else. gretchen: thank you very much. new jersey and virginia both voting in republican governors last night. so how exactly did these blue states, one of them purple, go red? former white house press secretary and fox news contributor dana forino has a theory. you have a theory it hassing to something to do with your former boss. >> i think part of this shows that the person running for office will get it into their heads that blaming president bush and trying to run against president bush is not going to win you any votes in these new elections. gretchen: so you say that creigh deeds in virginia and that jon corzine in new jersey their first ad blamed bush and that was early on. >> in their speeches in their messaging. they were trying to ride the coattails from 2008 and run against bush. i think what the voters have said is that a year later when we're looking at possibly 10% unemployment, our property taxes are through the roof, we can't get around our cities because our transportation systems are so bad, our education problem, and you're going to blame george bush who hasn't even been in office for over a year? gretchen: what does it say for barack obama? >> they tried to have it both ways. somebody in the white house, background official threw creigh deeds under the bus about three weeks ago because i think they knew they weren't going to win in virginia. they lost big-time in virginia. he went all in for jon corzine. so they were trying to help jon corzine win that election. that margin was even significant. so i think there was a huge scream of terror about what's happened in the economy. and if i were in the white house today, i would bet they're going to look at this and try to regroup. gretchen: the spokesperson said barack obama, the president, was not watching the election results last night, that he was watching basketball. what message does that send? >> again, they're trying to have it both ways. of course he's probably getting updates. he might be watching basketball, but i'm sure he was getting phone calls from the political people. of course a president should be interested in these races. you can't stump for the guy in new jersey and then watch basketball. gretchen: one quick question about how this might affect blue dog democrats with health care. two g.o.p. now. will this affect health care? >> one of the things to be concerned about if you are a democratic leader in the house of representatives and you want those votes on health care is that members of congress if they are more worried and scared of their elect rat than their leader -- electorate than their leadership, they're probably not going to walk the plank on those votes. already said it would probably not get done before the big of the year. the slippage is the longer this goes on, the less support. they're going to run out of momentum. they were lose their speed and altitude. i don't think they get a bill. gretchen: stick around, if you will. next, some g.o.p. lawmakers want voters to make a house call to the capitol to tell lawmakers what they really think about health care reform. dana has another piece of advice for voters, next. sarah palin making a new promise this morning. we'll explain what it is. . ...martial artist... and a stuntwoman. if you want to be incredible, eat incredible. announcer: eggs. incredible energy for body and mind. (guitar music) steve and now for the answer to our quote of the day. who said it. you can rip it, can you chew it, if you are frustrated have you going to take it out on. judge kevin castle talking to the jurors to the john gotti trial here in new york city. the winner was john mcdermott from lebanon, tennessee. we are going to send him a lovely pack of twizzlers. brian: every four minutes someone loses a molar when they eat twizzlers. gretchen: two big things going on tomorrow, brian. brian: game seven? gretchen: possible vote on health care. brian: lawmakers urging americans to visit capitol hill to protest the hill. is this capitol hill visit is a good idea. michele bachmann is leading this charge. >> i saw her yesterday on your program. i think she is right. one of the ways to make sure that congress gets the message is that you pick up the phone or have a chance to see a member of congress. i don't know if people in this economy have a lot of extra money to have buy a ticket and fly out to d.c. i urge that their commentary be respectful and smart on the issues. picking up the phone and making the phone ring also has an impact. steve: although, after the tea parties, tea party phenomenon of the summer, there are a lot of u.s. congressman and senators who are a little gun shy of the people who put them there. >> what you want is you want to make sure that they are more afraid of their electorate than they are of their leadership, right? steve: how do you do that? >> you have to make sure you are hearing from them. you have to make sure they hear. last night was a big thing but it still matters politicking. it's not enough to send a screaming email but if you pick up a phone and call into the district. and call into the washington, d.c. office, you can have an impact. if you have chance to come to washington, d.c. to see your member of congress that also is a good outcome. i don't know how many people can actually do it. brian: the theme you brought out today that i have got. success leaves clues. bob mcdonnell leaves clues. it wasn't rip apart barack obama. it wasn't values and social issues. it was substance. >> as a republican, can you look at that race and say now that's what we have been looking for. optimism and relentless focus on the issues. transportation, ed education, energy and jobs, jobs, jobs. he kept going over and over again. he had some rocking times. the "the washington post" aggressively campaigning against him basically. creigh deeds had a whole extra arm of his campaign because of that paper. but it didn't work. also a, a couple other things he reached out to minority groups and came to northern virginia which is notoriously democratic. he won over democrats two to one. that's something you have to be concerned about. steve: you got to go to your day job now. dana perino thank you for joining us on the curvy couch. gretchen: savoring big elections elections. independents the key. the same group that voted barack obama into office. is it a blow to the white house? we report and you decide. brian: how do you keep the faith in tough times? we will ask pastor joel os stein in the next hour and we better come up with another question. >> how many of you are ready to celebrate the risen savior, amen? ale nt thaveayci y t od tha nty wa branme faf aiz leh ii grnt faf aiz ked kalm leh ii eas sh dcaro,t faf aiz ep wutbyd oll ked kalm f f aiz faf aiz ep wutbyd oll ked brthme f f aiz gretchen: very good wednesday morning to you. you can believe it? it's already november 4th, 2009. from blue to red. we are talking primary colors today the balance of power shifting a little bit this morning. >> eight months ago i applied for the job of governor of virginia. tonight you have hired me. >> i stand here tonight, full of hope for our future, full of expectations and dreams. not just for my children but for all the children of new jersey. gretchen: what these two gubernatorial races reveal about politics on the national level in just two minutes. brian: forget the democrats and the republicans' plans for health care. one grouch doctors is using experimental system that's already saving patients thousands of dollars. why don't washington listen to them. we're going to ask -- we're actually going to talk to the doctors. steve: meanwhile, a 12-year-old charged with assault and vandalism. what dots judge do to the kid? he took away his video game. not kidding. is that enough punishment? we're going to talk about it this hour. while our slogan this hour comes from jan in orlando, florida. turn on "fox & friends" when you are awake and a smarter person today you will make. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- ♪ gretchen: hard to believe it was a year after the presidential election already and a big huge change. remember barack obama campaigned on changing america. well, last night there was a different kind of change. and that meant that it was in the column of the g.o.p. at least in the states of new jersey and the state of virginia. if you are just waking up now and you didn't see the election results, let's show them to you. in new jersey, chris christie beats jon corzine by a commanding number, 49% to 45%. this race was called relatively early last night. a lot of people thought it was going to go to the early hours. brian: i was one of them. chris daggettt, that's the key. see how small his number is he was pulling between 12 and 15%. when it was all said and done people thought they want their vote to count. he was taking votes away from the chris christie. he said i never really worried about it. in the end the economy was the issue and jon corzine has lost. steve: and in particular, in new jersey, property taxes are the highest in the nation and corzine did his best to jack them up. and according to christie he would like to reduce them a bit. keep in mind, this is why it is so substantial. there you can see property taxes the number two issue in our exit polling in new jersey. economy number one. not surprising. property taxes number two. what is surprising though is he was able to eke out a win. keep in mind, this is a reliable blue state. it is a democrat state for the most part. also, mr. corzine spent a lot more money than mr. christie and, mr. corzine had an ally. he had barack obama who campaigned personally for him in the garden state. joe biden went. i got a whole bunch of emails from barack obama on behalf of mr. corzine every day. and, in the end, how much did mr. obama's influence help? didn't help enough. here is corzine conceding last night. >> i called mr. christie and congratulated him on becoming new jersey's next governor. i want you to know that chris was gracious in his response and we will work hard together to make sure that the transition is smooth, that we are able to do everything that serves the people of this great state. >> we are in a crisis. the times are extraordinarily difficult. but i stand here tonight full of hope for our future, full of expectations and dreams, not just for my children, but for all the children of new jersey and kim and i are going to get to work to make that happen starting tomorrow. [cheers and applause] brian when the governor elect walked out they were chanting "yes, we can." that was kind of in your face. gretchen: the pundits all year will argue whether or not this is a referendum on barack obama and the big spending that we have seen in the last year. but no doubt this is about the economy. let's take a look at what happened in virginia as well. where the economy ruled there. where bob mcdonnell came out with a demanding lead and trouncing creigh deeds. keep in mind that barack obama also supported creigh deeds and went to stumped for him until they realized the race was over there. look at the economy, 47%. almost half of the people who voted yesterday in virginia said that was the most important issue to them. steve: one of the things that mcdonnell won on was the fact that he really campaigned against card check. now, card check is that provision that would make it easier for workers to unionize. and while virginia is hardly a union state, he really bashed it. and wound up winning big. also, you can see on the list of stuff that people are interested in the commonwealth of virginia, number two, is health care. i heard one of the pundits last night on television say well, why is that so high? well, because so many people live in the northern virginia and eastern virginia and they get their television out of washington, d.c. where the debate over health care has dominated and that's why they theorize it was so high. brian: two states that barack obama took -- virginia a shocker first time since 1964 and new jersey, this time his party lose of them. 80% who voted for barack obama as president of the united states voted for the democrat here, deeds. but he lost 12%. they have defected from him. that's got to be a little bit disturbing although the president of the united states wasn't able to watch yesterday. but the biggest story is independents. a third of the voters say they were independent and they backed mcdonnell by a two to one margin. four in 10 said the president's position and his performance played a role in their vote. 24%, because of the president's performance said i'm voting against him. gretchen: one of the really interesting things that i think you brought up last hour, brian, at least in virginia bob mcdonnell did not campaign against barack obama. in fact, after barack obama won the nobel peace prize mcdonnell congratulated him. he thought that was a fantastic idea. instead of bashing obama, he talked about the things that people cared about. the economy, jobs, transportation, education. what's very interesting is when you look at the republicans who won in this election, they did not talk a lot about the social issues. you have to wonder now if they will look at this as a strategy of what will work coming up in the midterm election. steve: i will tell you who a big, big winner last night was was scott was muffin. was muffin reports absolutely mailed it when it came to the state of new jersey. he pretty much accurately predicted the final would be 46, 43, and 8. wasrasmussen uses a automated system rather than people. pulled ahead people doing the operating. what's interesting is it is the same rasmussen poll that shows the highest level of opposition to health care reform. if you are a democrat and you are pushing for health care reform, you have got to be looking at those numbers thinking should we really go this big this fast on this wednesday? brian: we had to fill that seat because the person who had that seat became secretary of the army. so, let's see how the new york for the first time in 100 years this going to a democrat now. bill owens gets 49% of the vote. upstart republican gets 45% of the vote. steve: out of nowhere. brian: former senator thompson, papa lent, rush limbaugh all backed the republican hoffman who is a true conservative in his values and said i have got to do something. i have got to change something. in the end, it wouldn't be enough. does that send a message to the party or is that just an upstart candidate who did an amazing job who came this close to getting the seat? steve: wasn't very republican. gretchen: that was an unusual case for that particular candidate. but i do think, as we have mentioned throughout the morning, that the republicans will have to find some sim by -- here. it's the independents who end up deciding the elections. you want them to sway a little to the right or a little to the left. steve: doug hoffman said himself yesterday i think the g.o.p. party hopefully will be more careful to pick somebody who has the real ideals and values of a republican going forward. also, email us. what do you think? forget about the pundits and analysts. what do you think the results of last night's elections mean to america? friends@foxnews.com or twitter us. gretchen: now we have your headlines with a fox news alert. college in morning. three students have been found dead inside a jeep submerged in a pond. the women all played softball toe together. police used cell phone signals from the women's last calls to locate them. the woman's friend heard them say something about water when their call got cut off. a memorial service was held for the three women last night. >> i know we have lost three of our sisters but they would want nothing more than for us to stay close together and truly appreciate everything that we have with one another. steve. gretchen: girls had been on a star gazing trip. police do not suspect foul play. a glimpse into how the students are coping in the next hour. first time home buyer tax credit about to be extended through april. popular program gives first-time home buyers $8,000 off their taxes. make it to the senate as early as today and friday. a sign auto sales are stabilizing g.m. sales up 4% over october of last year. ford up 3% over october of 2008. chrysler did not fair as well it was down 30% year to year. a new five year business plan from chrysler due out today. it's expected to get rid of some of its chrysler and dodge brands and replace them with cars from new partner fiat. sarah palin is promising more stops on her going rogue book tour. outside the typical stops she has decided to hit more cities. former alaska governor wants to line up more television interviews apparently. book hits store shelves on november 17th. brian: is she doing our show? gretchen: i hope so. just when you thought it was safe to go back in the water. ♪ gretchen: new study says great white sharks spend northern and california coast between august and february. this according to a new study by stanford university. sharks have been spotted as far inland as east of the golden gate bridge. no fear actually getting killed by a shark very rear. what about bitten? last attack was a 66-year-old man attacked in april of 2008. gretchen: that wasn't that long ago. brian: good job. keep up with the great whites. big night for the g.o.p. could actually mean big changes in washington. why the blue dog democrats may actually have the most to gain and how that could effect issues like the economy. like health care, two washington insiders debate it next. steve: ever wondered where all that lost luggage winds up? wait until you hear where police found a bunch of it. ♪ steve: welcome back. voters turned out to show their support for republicans in the state of virginia and new jersey. will these wins send a message to blue dog democrats and ultimately make them stronger? joining us now is former pollster for president carter pat caddell. he joins us live in our studio. in washington, d.c. we have democratic strategist and fox news contributor bob beckel. pat, let's start with you. barack obama, is he waking up thinking that's not go so good for me. >> it was not a very good not. they put a lot into new jersey. the point is, also, if the constituents -- last night i was pretty shocked by -- we knew there would be troubles in more conservative areas. but in the suburban counties in the northeast here in new jersey and in virginia, wilden county virginia 42% for mccain was split 15 points for mcdonnell last night. 3 point margin slip. steve: big towns. >> bergen county. the same thing happened here. saw it in west chester county. big change there. wealthier people voting democratic because of socialist. scaring them economically. they turned out in huge numbers last night. and they went overwhelmingly swing. steve: i'm interested to hear how two republican wins are, you know, good news for your democrat party. >> they are not good news. it's going to be very difficult, steve, but i think i will -- maybe we can keep this story going another day here on fox. steve: it's a day after the election. of course we have got to talk about it. >> i know. first of all, i predicted this as plenty of witnesses that corzine was going to lose. a second coming of christ could not have saved him in new jersey. you are talking about a governor who is not popular, who raised taxes, and worked for goldman sachs. number two, in virginia they have always elected a governor who is not in -- whose party does not have the white house. i want to thank sarah palin for recruiting effort to give us that congressional district for the first time in 100 years. new york was the message. this is where i think pat and i will agree. everybody who is incumbent better be careful. that is people want things to work right. this was not about the values. this was not about abortion. this was about making government work right it didn't work right in new jersey. for bloomberg it's a good thing he is rich because people were sending a message they don't like the way it is being done. i think that's a shot across the bough. >> also in new york you have a situation where he -- he spent $100 million against weak opposition. without staten island last night he would have lost new york city. i mean, this is incredible. steve: pat, isn't the message if you are going to. >> got a problem if things aren't going well, this is part of the problem with what's happening in the country right now. i will tell you, i do think there are heavy implications on this for health care. when you look at these suburban counties. pushing through something that doesn't take effect for five years and has some of the concerns it has when people are concerned about the economy and they are concerned about you know the war and concerned about deficits is pushing it very hard. steve: will that effect the outcome in the congress? >> if i were not only a blue dog democrat, you look at what happened in the western part of virginia, which, in fact, never lost lost last night. i would worry. it's not just the blue dogs. northern, midwestern suburbs where liberal democrats sit, those voters looked like they are very unhappy about things. steve: bob, do you think this is going to impact health care? >> this is where -- i don't often depart from my friend pat caddell's thinking. on this there is no indication health care was an issue yesterday. i think people want it, the more they hear about it it's going to pass. forget about it is it will be signed into law. having said that there is though on the deficit. i have been looking at this for a year i have never seen the deficit, it's sustained itself as an issue more than a couple months. it's now sustained itself for 12 months. it's something that is settling any, guilt about handing off a debt. people want the trains to run on time. for obama -- normally, when you have angry voters you have big turnout. you didn't have big turnout last night. steve: no, indeed. thank you very much. more analysis on the program right here on "fox & friends." how democrats are trying to cut cost on health care legislation. should they do away with a program that's helping kids? peter johnson jr. has today's prescription for truth. gruesome search for victims of an alleged serial rapist continues today in cleveland. we have a live report. straight ahead. steve: look at that it's time for news by the numbers. first, $1 billion, that's how much the army corps of engineers plans to spend on a new flood control project in new orleans, an attempt to protect the city's west side in case of another big hurricane. next, 75. that's the percentage of parents who report moderate to high stress on a daily basis. and 45% of those parents say their stress is increasing. finally, $20 million. that is what oscar-winning actor nicholas cage makes per film but cage is now selling off his assets to pay debts, including his 10-million-dollar mansion. he has gotten into some significant money trouble. gretch? gretchen: there is a popular insurance health program called chip. apparently it's on the chopping block under the house bill. going too far to cut costs? will it work? let's ask peter johnson jr. in his prescription for truth today. chip, a lot of people haven't heard of it before what is it. >> brought together by late ted kennedy, orrin hatch the republican and really hillary clinton in the wake of the failed clinton health care reform. and what the federal government said, republicans and democrats alike at that point, let's provide insurance, health care to the most vulnerable in our society, the children. so medicare for the oldest and most vulnerable and chip program, a state insurance program for children it insures about 5 million children as of today. and those are the children whose families make too much for medicaid but don't have enough money for private insurance. what's being suggested now under the pelosi plan is that the president's promise that you can keep your own insurance that everything will stay the same will not take place for the children. that the children will be forced, as of 2014, into private insurance plans. gretchen: private? because a lot of people's concerns about health care reform is that you would be forced into the public option. >> there has been no discussion about this. and to try to find discussions about this in the mainstream media or on the record comments by the democratic leadership is very, very difficult. there will be a firestorm on this issue when people understand that there is a possibility of two things. the first possibility is that many of the children, who are covered under this plan, will not be able to make the switch over. the second issue is that for those children who do make the switch over to this private insurance exchange, the rate of insurance that their parents are paying, which goes like from 2% to 3% at this point of their income may go from 5% to 35% of their income. it's also suggested that this program will cost $15 billion more to switch over to the private insurance exchange so a lot of people is saying the president has promised or at least i'm saying, the president has promised that you have can keep your own insurance. it seems to me and i think it's worthy of discussion, i would like to hear what viewers are saying on it, why would we change the most vulnerable patients. the most vulnerable health insures in our society who can't do anything in terms of income to determine whether they have insurance. if they are being insured now and program is substantially working, why take it away from them? gretchen: you continue to parse the health care reform bills. >> yes, i will. >> this is one piece of the puzzle. peter johnson jr. good to see you this morning. believing in god just like having a baby? that's what pastor joel osteen says. is he here live to explain that one. are your monthly bills growing and growing? are you considering filing for bankruptcy? dave ramsey of the fox business network says there are things you should do first. gretchen: half past the hour. we begin with a fox news alert. 10 bodies in total found in the basement, the backyard, the living room, even the crawl space of a convicted rapist's home. and in just a few hours. that rapist and registered sex offender anthony sowell will face a judge in court. joining us life from cleveland with this story now our own jamie colby. jamie, some amazing developments in this story yesterday. more bodies found at the home of this man. >> absolutely, gretchen. we're learning more about anthony sowell this morning. we learned that he served in the marines for eight years. in fact, the search and investigation into the case will extend now beyond ohio. they are looking at a rape in san diego that he may be connected to as well. and here at the home behind me today there are plans to completely dismantle it, look in the walls, look in the floors, try to figure out and i will give you a better shot of what's going on. see the tarp where yesterday they did find, gretchen, four more bodies and also a skull that was wrapped and in a bucket in the basement. this morning anthony sowell heads to court. he will be arraigned on five charges of aggravated murder, assault and rape. investigators say there may be more charges and there may be more bodies. they are not only looking at the house behind me, they are looking in half a mile radius now. they had already extended their search a quarter mile to abandoned homes in the area. anthony sowell didn't drive. he used mass transportation. they think that there may be more victims buried elsewhere in some of these other houses. this is a really exdepositionive investigation at this point. i had a chance to talk to the woman who operates the sausage business, ray's sausage right next door to the house. here is what she had to say earlier this morning. >> i had grease traps put in. i had new piping put in. we knew it wasn't us because we are state inspected every day. we're federally inspected and we're certified and we have been in business 67 years. with a smell like that, we wouldn't be in business at all. >> what did you know about anthony sowell, anything? >> nothing too much about him other than that his family was in the neighborhood for about 30 years. we knew his family. >> none of the victims have been identified, gretchen. the coroner says the first five women were strangled there is a local report here that anthony sowell controlled the internet advertising for partners. at least three women according to police records and court documents reporting that they met him, that he -- that they were raped and those web sites he put on claims that if they came to the house, that he would like to meet them and all of that being investigated at this point as he enters court today. we'll bring you the very latest. we expect that in the next couple of hours. anthony sowell, again, is charged with five counts of aggravated murder as they search the house to see if more women could have been involved. family members of missing women in the area gathering at the house yesterday hoping they can get news about their loved ones. gretchen? gretchen: what a gruesome story. thank you, jamie, for bringing that to us this morning. steve? steve: gretch, secretary of state hillary clinton now says washington wants israel to stop building settlements in the west bank. clinton is in egypt meeting with the president as part of a tour to smooth over relations with arab leaders. good israel has delayed building settlements but that they should be stopped all together. brian: that's a bit of damage control it sounds like. ner fox news alert, u.s. navy has seized a ship carrying weapons, including missiles headed for hezbollah's mullah group it's believed. looking at a raid in 2002. unconfirmed media reports those weapons were surprised by iran. prime minister netanyahu says the weapons found on be the missile could have hit israeli cities indicating included missiles. gretchen: how is this for crime and punishment. a judge takes away a 12-year-old's troublemaker's wii gaming system. boy is facing several charges ranging from vandalism and assault. make sure the kid stuck to his bail conditions and showed up again, the judge took away his wii saying it's like a cash deposit. i like that judge. good thinking. brian: very ambitious and creative. do you ever wonder what happens to your luggage when airlines lose it? well some of it may have wound up in this guy's house. steve: he went through. gretchen: didn't find a brush. brian: police in arizona -- nor a button for the shirt. bagged a paver luggage thieves. 60-year-old woman and 38-year-old woman allegedly stole at least 1,000 pieces of luggage from the carousel at the phoenix airport. police say they will try to return as much of the luggage as possible but the tags were removed. gretchen: that's why they should have somebody sitting there that looks at your bag tag when you go out and compare it. brian: i know. i don't want another delay when i go out. take a bag or two. just don't stop me every two seconds. steve: speaking of delays? if anywhere around the great lakes. a little precipitation this morning. nice and dry throughout the northeast down through florida and back across the central plains. these are the current temperatures as you can see 30's and 40's are the rule. 52 is going to be the current temperature right now in dallas. we have got about 49 in san antonio. today's daytime highs 30's and 40's throughout the northeast. we're going to have some 40's and 50's across the plains. down south 70's will be the rule. what's interesting is there is a new web site, brian, it's called obama dash weather.com. it shows you what you should wear in that area. and what barack obama would be wearing if he were in washington, d.c. actually, he is going to be in washington, d.c. today. he is going to be wearing a jacket, a hat, and some jeans with the cuffs rolled up. brian: look at this? steve: down in miami today if the president were there, according to obama weather.com. he should be wearing a light shirt, once again some blue jeans, maybe not cuffed as will be the case in our nation's capitol. finally in his hometown of chicago foggy and tuesday is the barack obama weather cast. brian: forecasting tuesday? steve: today. that is to say what he would be wearing. a little bit of fog to start the day. brian: that's what he wore. unemployment climbs towards 10% more and more americans find themselves dealing with debt. how do you know whether you have too much debt and what is the right time to file for bankruptcy? steve: the man with the answers is fox business's dave ramsey he is joining us from satellite from nashville. good morning to you, sir. >> good morning, guys. steve: let's go through email. brian garry from pennsylvania. brian: what is the best way for me to go, he asks, debt consolidation, bankruptcy, or debt settlement? i have been out of work for six months and owe around $50,000. dave, can you help him? >> well, yeah, i don't think you have got addebt problem. i think you have a career crisis. when you solve that then you can start to solve your debt problem. filing bankruptcy does not create an income. you may be forced into that if you don't get some employment soon, but when i start thinking of my own deal sometime a little bit of self-employment thing or something. maybe it's time to do some snow blowing, rake some grass or blow some leaves. we will do something around the ramsey household. steve: what do you think about that? >> well, start with i wouldn't take money out of a retirement account unless it was to avoid bankruptcy. it didn't sound like thatted in the email. i'm kind of reading between the lines there. they're not going to settle on credit cards that you are current on. if you are current with your credit cards and call them up and ask them to settle they will laugh at you. if you are six months or eight months or a year behind, that kind of a thing, then you can offer them a settlement. you don't have to have a long discussion with them. it's just i owe you $7,000. i have $2,000 i'm willing to give that you to settle this debt in full. always get that in writing before you give them money and no electronic access to your checking account. keep a copy of that letter and a copy of the check in the file forever. it will come back. brian: my sister's home is being foreclosed says liz. she has debt of $25,000. should she file for bankruptcy? she has no assets and i'm afraid her wangs may be garnished by the mortgaging credit card companies. what do you think, dave. >> i have been through bankruptcy 0 years ago. it's painful. it's a tough thing to go through. i don't recommend somebody go through bankruptcy because of what might happen. if she gets foreclosed on and they sue her and come after her wages she may be forced to file. don't file on what might happen. steve: there you go. one of the reasons people tune to fox business network for financial news and stuff. dave, thanks very much for joining us today from nashville. >> thanks, guys. brian: 19 minutes before the touch the hour. group of doctors using experimental healthcare system that's saving patients thousands. should washington take a cue from them? we will talk to one of those doctors next. steve: that's right. believing in god, just like giving birth? that's what pastor joel osteen says. is he here live to explain that theory in 10 minutes: right back. to the company, their very first word was... aflac! aflac! find out more at aflacforbusiness.com @@ this country definitely needs to focus on other ways to get energy. we should be looking closer to home. we have oil on our shores. natural gas can be a part of the solution. i think we need to work on wind resources. they ought to be carefully mapping every conceivable alternative. there is an endless opportunity right here. gretchen: 45 minutes past the hour right now. here are the results from election 2009. a big win for republicans. in new jersey chris christie beat incumbent democratic governor jon corzine. the key to christie's win was the independent voters who just a year ago voted for barack obama. in virginia bob mcdonnell beat creigh deeds. all top offices were won by republicans in that state. watching that closely watched congressional seat. democrat bill owens beat conservative party candidate doug hoffman, this is a race where the republican candidate dropped out and actually supported the democrat. steve: meanwhile, one of the key issues to voters yesterday in the elections according to the exit polling was health care. both sides fight over it in d.c., a handful of hospitals in the country say they have a solution they have been using experimental payment system that has saved them thousands. it is called bundling. gretchen: how does it work and lower cost? joining us from tulsa, oklahoma is steve dobbs. good morning to you, steve. >> good morning, gretchen. gretchen: hopefully you will help us understand this. what is the pilot program you are experimenting with? >> it's called a bundled payment program. it's started in may of this year and experimental project for the next three years for the program. the hospital and we in turn pay the physicians their medicare fee schedule. steve: do you think that works better than it is right now where everybody gets a bill for all the stuff? >> well, right now we have got the physicians focused on helping us reduce the cost of care. we have renegotiated our prices with all of the venders. that's continued us to lower our operating costs across the segments both medicare and commercial. right now i'm seeing it work effectively. gretchen: what does it mean about specialists though? because a lot of people's concern with health care reform is somehow these highly specialized physicians won't be called into action too much because they cost too much. >> well, right now the physicians are making that determination. the the hospitals don't get involved in that we are not even tracking those metrics. hospital feels they need a consultant on the case they call it in. medicare has baseline data from 2007. they will be able to evaluate whether there are any changes in those particular categories. right now i'm not seeing that many changes with consultants. steve: the thing i like about it is, steve, it's so simple. it's kind of a no brainer. do you have any idea, you were talking about the metrics, how much it could save the government, it's a pilot program right now, if we're going to expand health care coverage on a government scale across the country, it would be good to know how much we could save. >> well, in this program we gave the medicare program a 4.4% discount. what they are doing with their savings, they are paying half of it back to the patient. if you come to hillcrest medical center and have a knee replaced, the medicare program is going to send the patient back a check. so far the medicare program has sent out over $30,000 back to folks in northeastern, oklahoma just from this early on part of the first six months of the project. gretchen: very interesting details. steve dobbs, the ceo of hillcrest medical center explaining the pilot bundling pay system with medicare to us this morning. thanks so much for being our guest. >> thank you very much, gretchen. gretchen: coming up on the show. if women in labor had a choice they probably would say i don't want to do this anymore. just a thought. pastor joel osteen says we can all learn so much from that. how do you know about that, pastor? he is here next to explain. steve: first on this day in history in 1976 baseball free agency began and players' salaries start to the skyrocket. in 2008 barack obama won the election as president of the united states. i remember that and in 1992, men at work had the number one single in america with "who can it be now?" ♪ all i wish is to be alone ♪ stay away ♪ don't you invade my home ♪ . . . . brian: these aren't trying times for all of us, especially with h1n1, and dealing with every day obstacles can make everything so difficult. steve: there is a new book out called "it's your time." the author is joel osteen. brian is right, times are tough right now. a lot of people are worried about the future. in times like this, a lot of us turn to a higher authority. >> i think this is because we realized we need help outside of ourselves. i feel like it is our job to help people. it does not help to get better and discouraged. your fe expects good things of you. everything is not perfect. brian: you also point out that some of the big companies like microsoft came about during times of recession. >> that's right. we always say if you do what you can, god will help you do what you can. maybe it means being created, stepping out into another field. you need to be productive right now. when a company looks to lay someone off, they need to be able to reconsider. steve: if a woman is in labor, maybe she says, this is too hard, i cannot do this, but -- >> it is always difficult right before you give birth. but you know right past the pain is a great victory. right after the birth, she forgets about the pain because she has the promise. life is like that. steve: trick and your wife be talking about this? -- should ann't your wife be talking about this? [laughter] brian: how is your church doing so far? >> we are doing okay but we know that people are hurting across the country. i believe that we are here to help people. that is what we are here to do. steve: and your best days could still be before you. >> that is what we believe. i do not think that we would be alive if god did not have another victory for you in the future. god wants to do a great for us. brian: the you think he wanted a game 7? -- do you think he wants in gam7a game 7? [laughter] brian: he picked the yankees. the jon corzine and creigh deeds made a mistake that cost them the election last night. can you say, blaming bush? steve: and three softball players found at the bottom of a pond. how did it happen? oonc. wll tblarnc. orvefse em ds tigin anyone can prove they're strong once. the real question is can they prove it again and again. ♪ at northwestern mutual, we've answered that question compellingly... for over 150 years. northwestern mutual. consistency counts. put our strength to work for you. learn how at northwesternmutual.com. thaveaycitt our strength to work for you. y t od tha nty wat our strength branme work for you. faf aiz leh ii grnt faf aiz ked kalm leh ii eas sh dcaro,t faf aiz ep wutbyd oll ked kalm f f aiz faf aiz ep wutbyd oll ked brthme f f aiz gretchen: good morning to you. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- any new political reality after two gop victories. is this a sign to come in 2010, and what the president bush have to do with it? steve: over and over and they say they want health care reform, but hold on, they are changing their tune. >> first of all, we will not be bound by any time lines. steve: did the republican sweep have anything to do with it? brian: and pop star rihanna said she went to bed feeling like herself, but woke up feeling like britney spears. gretchen: i get energized every time there is an election. brian: because he no brit hume is coming to new york. gretchen: a lot of people have been energized and were in tune to what was going on in the gubernatorial races in new jersey and virginia, as well as the congressional seat in new york. what happened in new jersey? this is a fox news alert. a republican has become governor in new jersey. steve: we have been talking about this. barack obama and joe biden went to the garden state and campaigned on behalf of jon corzine he spent a chunk of his portion to be reelected but didn't. he is very unpopular with a lot of people, and he has that pesky property tax thing. now people are going to be reading into both of these races, is there something larger? do democrats have to worry one year from now? in virginia, it was a blowout. the republicans really turned the tables and it was people in the affluent suburbs, the moderates, independencts that blend in the way of bob mcdonnell. brian: 88% who voted for president obama, noted for deeds, but that leaves 12% who defected from the party and voted for a republican. he won because he did not talk about president obama. as gretchen mentioned, he was one of the first to congratulate the president on the nobel peace prize. he talked about schools, roads, and other concrete things. when he went head-to-head with creigh deeds, he won. gretchen: now some people are talking about him being a vice presidential candidate. he had an amazing campaign strategy. when the economy is faltering, he took uit up as his number one issue. take a look at this. what was the number-one issue according to voters? it is the economy, stupid. take a look at the numbers. steve: when you and those numbers up, the economy, property taxes, and in new jersey, most of the people that showed up were concerned about their finances. they were not interested in blaming george bush. dana perino, former press secretary to george bush, was talking about that. >> in their messaging, they were trying to ride the coattails from 2008 and run against bush. i hope that people will understand that blaming president bush and trying to run against president bush is not going to win you any boats in these collections. -- votes in these elections. brian: here is press secretary robert gibbs. he was dismissing the commentary on the pending bad news. he called it naval gazing. essentially, a waste of time. sorry, self-absorption. gretchen: of course, we would expect the white house to say this. they were campaigning for him. of course they did not pay attention to the results because they did not come out in their favor. now some people may wonder if this is a referendum on president obama. brian: in virginia, they took all three. steve: in new jersey, chris christie and eventually won and said it was a victory for voters who do not want the government to fix every problem. it is parallel to what brown or kent said, it was all about -- and robert gibbs said, it was all on the out what the people wanted. so what does this do to health care? democrats said they had a mandate, we are going to change stuff, so does last night's election adults change anything? gretchen: and what about the blue dog democrats? will they be more pressured from their electorates, or from the people in their party? will they be more concerned about the voters who apparently sent a message last night, or will they listen to harry reid and nancy pelosi who are currently pushing through health care reform bill? brian: the house has gone through five different versions of the bill. the senate has done only two. what that harry reid to say this? >> we are not following any time lines. we need to do the best we can for the american people. we need quality legislation. >> it may mean that we do not get everything done as quickly as possible, but it will be done under harry reid's leadership and we are going to change the country for the better. brian: did you hear how much he talked about harry reid? steve: they forgot to mention that are going to have a break for labor day and then holidays and christmas. -- iat christmas. maybe the politicians are starting to understand that the people are mad, and maybe they need to take the approach of the joe lieberman. do we need to do this so fast? just address the things that are not working? gretchen: funny you mention that. republicans have come up with an alternative plan, but is it viable? caroline shively has the details. >> with minority status, the bill has no chance of passing, that it would let small businesses group together to buy insurance and can recover more americans. it would not give subsidies to people buying insurance. unlike the democrats plan, they do all of this without raising taxes. democrats say it is just a bunch of ideas without a price tag and does not go far enough. as far as the timing, they could begin debating the bill as soon as friday. gretchen: we will be speaking to eric cantor about that in about five minutes. this is a fox news alert. a college in north dakota is in mourning. three students from dickinson state university were found dead in a deep under 12 feet of water in a pond. all three of them played softball together. one of them called a friend sunday night, and she said she heard something about water when they're called was cut off. last night a service was held for kyrstin gemar, afton williamson, and ashley neufeld. the girls had been on a star- gazing trip to the night it happened. please do not suspect foul play. the student body president will be with us to tell us how the campus is coping. balance in the streets of tehran this morning. -- violence in the streets of tehran this morning. they were marking the 30th anniversary of the taking of the embassy. president obama says the anniversary of the hostage crisis is a good time for change. he is calling for iran to get off the path of sustained suspicion and confrontation. voters in maine by voting against legalizing gay marriage even the several state leaders pushed for same-sex unions. gay marriage has been voted on in 31 states so far and has lost in all of them. the h1n1 virus is spreading faster than the vaccine used to prevent it. this is the house education and labor secretary george miller who is asking employers to give them sicklied as a result of the swine flu -- sick leave as a result of the swine flu. there are some new pants for kids in no winter season. they come equipped with a butt plate so you can go sledding. steve: why didn't i think of that? i used to steal a tray from the cafeteria. brian: republican victories in new jersey and virginia. what does this mean on the national scene? steve: and they stole a gift card from a nine-year old kid. see what kind of punishment the judge had for them. luke: moving my mind and my hands at world record speed. i'm luke myers. if you want to be incredible, eat incredible. announcer: eggs. incredible energy for body and mind. (guitar music) gretchen: blue states gone red in new jersey and virginia. what does this mean for the national landscape? brian: joining us from richmond, virginia, at ever kantor. does the gop believe this is a rewarding day for republicans? -- eric cantor. >> absolutely. this is proof that we can win if we are united. what we can take from these elections are that voters in both states were concerned about the direction on the economy. gretchen: and that is my question. when you look at the exit polls, the number-one issue was the economy. however, is it because people are unemployed and looking for a job, or is it because they do not like the spending going on in capitol hill? is it both? >> i think it is both. virginia has an unemployment rate in a couple of points below the national average. i think new jersey is a bit closer. but i think there is a general concern in the direction the country is headed. when you seen the level of spending that has occurred in the last nine months, people are aghast. they cannot imagine the deficit we are in curving and the resulting debt that will be placed on our children. if people are wondering how they get through the month, it is a disconnect to see the kind of spending that is occurring. brian: would you also conclude that republicans won by talking about projects, not talking about values, not attacking the president, in particular. are you going to encourage other republicans to do so? >> the local newspaper here said that it was sunny conservatism that won the day. that is a great way to put it. bob mcdonnell ran a positive, solutions-oriented campaign. that was in contrast to creigh deeds who had nothing but personal destruction and politics. voters in this state rejected that, as well as in new jersey. chris christie was about high taxes in that state. the karzai campaign, backed by the obama warehouse -- corzine campaign, backed by the obama white house, was not able to get the victory because of that as well. gretchen: let's talk about the gop health care alternative. the democrats poked fun at you a binder of resolutions, and it was full of blank pages. what is your plan? >> first of all, i would say to my democratic colleagues, they ought to take note. the american people do not take well to the negative politics that they are playing. we are aiming to lower health- care costs, and we will see that the cbo will validate our claims. what we are trying to do is fix what is wrong with the system and preserve what is right, compared to what you see in the obama and policy plan, a trillion dollar overhaul -- pelosi plan, a trillion dollars overhaul. it is paid for on the backs of seniors and it is cutting medicare by $500 million. quite frankly, it also aggravate the deficit. brian: we know that you have a lot to say about this and there is a far way to go in terms of the political process. thank you for joining us. it is a sunny day there in virginia. gretchen: we have been following this story of three missing college girls. neighbor found dead inside their car at the bottom of a pond. -- they were found dead inside their car at the bottom of a pond. brian: she went to bed feeling like herself but woke up feeling like britney spears. gretchen: rihanna said she woke up feeling like britney spears fallen in the attack from her boyfriend. she was referring to all of the media attention she had. she said helicoptered were constantly circling her home. she says her family and friends helped her get through those rocky times. the first lady taking the first tween to a miley syrus concert last night. steve: in a tragic ending to the search for three dickinson state university softball players. their bodies were found in their jeep at the bottom of a pond. kyrstin gemar, afton williamson, and ashley neufeld were thought to be star-gazing. what happened next is what police are trying to figure out today. in the meantime, friends at the school had started a fund for the families. we are now joined by the dickinson state university student body president. your school must be in shock today. >> morning. that is the only way to describe it. when word came that they found them, there was a lot of shock and sadness on campus. steve: i can understand that. they found the girl's jeep cherokee under 12 feet of water in that pond. what was the atmosphere like on campus not knowing where the girls were after the frantic phone call? >> mixed emotions. authorities did not suspect foul play. it was more and and needles not knowing what happened. -- pins and needles not knowing what happened. we were just hoping that we would find them. steve: we understand that they were three great players on the girls' softball varsity team. it is a small school where everyone knows everyone. this must be hitting you hard. last night there was a prayer service to remember them. what is happening today? >> all classes were canceled today. it is a day to remember and mourn the loss of #fallen students. -- our fallen students. today is a day to take in and see what we can do to help the family, friends, and the softball team recover from such a great loss. steve: thank you. we are praying for you. 27 minutes past the hour. brian kilmeade? brian: we are tracking your taxes and we found that the government is spending $30 billion to hold nuclear waste. and do you want the job of a lifetime? former nfl star jerome bettis telling us what he is doing in his everyday life. how is he adjusting to life after football? i think i can take you. >> an historic night. one year ago today barack obama was elected president. [applause] can you believe that? a lot has happened. in one year his stomach has gone to yes, we can to wow, this is hard. gretchen: this is a fox news alert. the israeli navy seized a ship carrying mess -- missiles traveling from iran to hezbollah groups. unconfirmed media reports say that they were supplied by iran. benjamin netanyahu says that the muscles -- missiles could have hit israeli cities. brian: secretary of state hillary clinton now said washington wanted israel to stop building settlements in the west bank. she is meeting with the israeli president to smooth over relations with arab leaders. she says it is good they had agreed to delaying building the settlements but they should be stopped altogether. steve: speaking of, 42 vs. 43. this is at radio city music hall. president george bush and bill clinton will square off at a debate in february at radio city music hall. it is being billed as the hottest ticket in history. no word on who will be the moderator. gretchen: and a lesson learnt for a mother and daughter who still a gift card from a nine- year-old girl in walmart. instead of jail time, the judge made them stand out time with these signs. interesting to and from the judge. steve: you know they say never drink and drive, especially a forklift. take-out -- take a look this footage from a warehouse. he slammed his vehicle into several shells up by a cut. $150,000 worth of alcohol destroyed. now it is time for sports. brian: philadelphia phillies manager has yet to name today's starter, but refused speculation that he would seek an alternative to hamels after an alleged brawl with a fellow teammate. they say there was no confrontation after the game. hamels raised eyebrows when he said he wished the season could be over. this is a football story. normally, i would read the story, but why would i do it when jerome bettis is here? he is a true legend. >> dan snyder is embarrassed and apologetic after in the washington redskins' season start. and playing some of the worst teams in the league. he said -- brian: jerome, and would you have ever been able to play for a guy like this? he is very hands-on and he humiliates the head coach in the nation's capital. >> i do not know. he does not have very many football people around him knowing what it takes to win. they cannot be successful until they can get someone in there who understand football. brian: like you and me. we understand football. >> where did you go after that? brian: i wish i could talk about that. [applause] [laughter] there is a high school player who scored a touchdown and then did a chance to bump. he was suspended. have they gone too far in the sense of cracking down on celebrations? >> i think so. what you are saying is there is no form of celebration allowed. you what to do something to celebrate with your teammates can you are not allowed to do that? that is a disgrace. brian: i think they have gone too far. in washington, somebody caught a touchdown, pointed to the sky, and they got a foul. >> i think they are just going too far with it. brian: i want to talk a bit more about football. someone who is older than you is still playing and pretty well. how surprised are you that brett favre went into green bay and did what he did? >> you never expected him to be this good. he looks like he is playing with no limitations. all these things that you think would stop him because of his age, he is continuing to perform. brian: the commissioner of the nfl was at capitol hill talking about brain injuries linked to your sport. what does your gut tell you when you see some of these former players having these problems? >> i think there is a link. that is part of what we look at, in terms of playing football, the responsibility that we take. brian: should we be doing more for players? the ban absolutely. this is a dangerous sport. first, they need to acknowledge the problem. -- >> absolutely. there is nothing you can do to stop it, but there is plenty you can do to help them. brian: tell us about this new program that you are supporting. >> monster.com is promoting the ultimate job. it is the director of fandimonium. you get so many incredible opportunities to be involved with the nfl. you get to go to an international game, you get to announce a draft pick. you are on the field for the coin toss at the super bowl, at the pro bowl, and you also get $100,000. nfl.monster.com. brian: how many years have you been out of the game? >> three years. brian: can i tackle you? >> absolutely not. [applause] back to you. steve: not long ago, he might have tried to tackle you on the set. straight ahead, the results are in. a republican victory in the 2009 gubernatorial elections. frank luntz will be here with his world-famous dial results. gretchen: and millions of dollars spent to create a nuclear waste storage center. now it is a disney rid ññ gretchen: this is a fox news alert. they sex offender accused of mass murder after investigators found 10 bodies at his home. he is in court right now as police continued the investigation into anthony so well and expand their search for even more bodies. -- anthony sowell and expand their search for even more bodies. >> i spoke to one family who came here looking for their daughter who disappeared last year. because they grew up on this street, the same street that anthony sowell lived in, they believe that their tanya carmichael will be here. so far, 10 bodies have been recovered. four of them yesterday as well as an unidentified to call that was found wrapped in paper. police are on the scene and we expect even more to arrive at a local councilman is calling for an investigation into why his home was not searched and there was a noticeable stench in the house and in the neighborhood. if you look over here, you can see ray's sausage next door. they've replaced all of their training and piping because of the smell. even though the owner said it was not coming from their place. the councilman wants an investigation into the local police as well as the health department. why weren't these homes searched? later on we will be talking about why all of these abandoned homes are not being searched. i am told that there is another one right around here. we asked ourselves whether or not we should be looking inside. what are we not looking for more potentially went missing -- potentially missing women? as he awaits his first court hearing today, there should be people searching. he is facing five counts of assault and rape. now he is asking for an attorney. gretchen: we have learned that he is being held without bond. you raised some interesting questions. some very interesting and gruesome details. thank you. steve: it has been called the biggest waste of taxpayer dollars in history, building of our dollars sun and into a home that is to be used for nuclear waste. now yucca mountain will never be used. brian: we are at a nuclear plant in san onefre. >> san under free is one of 100 nuclear plant locations around the nation. for 25 years, the government has been taxing government and taxpayers for a place to put the nuclear waste. the president says it will never be used. that is $13 billion of your money down the drain. >> i have said i am against yucca. >> and that campaign promise is not policy. after investing $13 billion, the account mountain nuclear waste storage facility has been closed that makes good politics in nevada believes the u.s. and know where to store a growing pile of nuclear waste. >> they do not have a solution, have taken tens of billions of dollars from taxpayers, and now they are talking about scrapping the whole thing. >> they promised america's nuclear industry in but have a place to store their waste by 1988, but since then, the fed's have paid out $6 million for failing to live up to that commitment, and expects another $11 million on top of that. with no plan for all of this waste, america's cleanest and most dependable source of energy is in jeopardy. in the next few weeks, the president is going to panel -- appoint a panel to look at this issue. steve: thank you, william la jeunesse. brian: how much of a role did president obama play in the virginia gubernatorial elections? frank luntz is here next. @f gretchen: bob mcdonnell has been voted the next governor of virginia and some are calling it a referendum on the obama presidency. did voters of virginia send a message to the rest of the nation? i do not know. frank luntz is with us this morning. let's take a look at one of bob mcdonnell's campaign ads. >> we tested some of the most commonly-running campaigns, and the one that the voters responded to best was bob mcdonnell talking about exactly what he was going to do, what he supported, and what he was going to do as governor, not attacking. >> the most important thing we can do right now is promote the economy. i believe we need to keep taxes and regulations flow. if we have strong work laws, the free enterprise system will work itself out. we need innovative ways to reduce the operating cost of government. that will be my priority every day. gretchen: that boded well with a lot of voters. now take a look at the focus group. >> they were lown and wanted to send a message to washington. -- loud and wanted to send a message to washington. >> i am tired about how things are going. this is not change i want to. >> barack obama is doing the job. if we allow him to do a better job and stop criticizing, and then the economy will be spruced up. >> how is that possible? he can pass anything he wants. he does not need republicans. >> i do not think you have given him an opportunity. it has not been that long since he took office. he inherited a huge mess. it is going to take a while to turn around. >> if i'm not mistaken, he had a democratic senate and congress. let's get on with blaming. >> america is right to criticize. that is our first amendment right. we are supposed to be asking, what is going on? >> it was a great group. here are two important points. the obama coalition stayed home. those who are angry with the way things were, and they voted. second, the independent voters who give democrats a tremendous victory switched over. that will be powerful in 2010. gretchen: great to see you. when we come back, how to get free wings from hooters steve: it is wings day wednesday. we have the a hooters girl with us this morning. brian: how does it feel to be here? >> it feels great. steve: these are fantastic. e