the one that carried out the deadly strike on osama bin laden but it's believed that none of the seals took part in that mission. cochb ner has the latest on the mission. >> reporter: u.s. military today launched an operation to recover that downed chinook and bodies of 30 american troops and eight afghans on board. this was the single deadliest attack since the start of the war. the operation to recover the helicopter and all the bodies could fake some time. we believe they will prove remove from the bodies from the area and try to get the chinook out of the way. for the military in kabul this is a process that could take a few days because the size of the crash. but we do believe troops on site we got new information about how this accident happened. taliban yesterday were quick to claim they shot down this chinook helicopter with 38 troops on it. the military is privately saying they believe the taliban did shoot down this helicopter with a rocket-propelled grenade. we understand it was part of a quick response force that had gone in to try to help army rangers that were pinned down taking heavy fire from the taliban. wardak province is an area that had a long history of insurgent activity. taliban is very strong here. there were a lost battles. indeed, we heard there was more fighting that helps to slow down the recovery process. over the next couple of days, military is investigating this crash. we're told they think the taliban's lucky shot as they are calling this was a one-off event. there is no change in the taliban's ability to bring down helicopters here in afghanistan. they think was a lucky shot. we don't know how the taliban were able to score this hit on this chinook helicopter. but there a fear that taliban has some new type of weapon that will lead to more helicopters crashing. >> our prayers are with the victims and family and all those that are where you are in harm's way. and lieutenant colonel oliver north will give his analysis and what it could mean for the afghan war. >> heather: now, to the other top story, another bombshell announcement from standard & poor's. days after the s&p downgrading u.s. debt for the first time in history. a top s&p official says there is one in three chance of another downgrade. in washington that is fueling a new round of politics as usual. steve centani is live in washington. so the blame game in washington, what does the s&p say about that >> david beard says no one party is to blame of the down grading. >> this is not about either political party. it's about the difficulty of all sides in finding a consensus around fiscal policy choices. now and in the future. >> reporter: both congress and the white house are jointly responsible for our fiscal policy. >> heather: and how are are members of congress reacting? >> they agree no one party is to blame but it's likely everyone will suffer as a result. that is very surprised of the downgrade, we saw it coming. we'll find out tomorrow what kind of spike in rates we're going to get. but obviously does it affect the federal government but it hurts people. >> reporter: ryan predicts interest rates on home loans and car loans will rise. he says because washington is not gotten the fiscal house in order. democrats disagree that month one party is to blame and they are not shy about naming who is responsible. >> it's a partial wake-up call. i believe this is without question the tea party downgrade. this is the tea party downgrade because a minority of people in the house of representatives countered the will of even many republicans in the united states senate that were prepared to do a bigger deal. >> reporter: he says there were people that were will, quote, to shoot the hostage in the recent debt ceiling debate. >> heather: the s&p is the largest rating company in the world. it provides independent reviews of different financial instruments, stocks and mutual funds and bonds. in 2009 they published nearly 900,000 credit ratings. right now it rates $33 trillion in outstanding debt all around the world. political finger pointing may be in full swing but what does it mean for us? interest rates will likely go out. how will it affect mortgage rates as well as stocks? senior business correspondent, brenda butner. we're going to know in four more hours, when asian markets, and what could happen later tonight? >> mideast market were any indication we will see asian markets will go down. this is, of course, the first possible trading day that any place, including the united states can respond to what happens on friday night. we have had a couple days to digest it. there are some indications that it may not be as bad as we had expected. first of all, the market has been going down ever since this was even indicated. second of all, it's not at all clear interested rates are going to go up. some of the major institutions that hold treasurys and almost major institutions, pension funds and banks do not follow the credit ratings perhaps as some others. we have to mention. fitch and moody's show no signs they are going to take a look at this. so yes, there was downgrade. interest rates may go up, and that does have an impact on mortgage loans, auto loans, credit card loans but if you look at history it does show us canada, japan, both faced similar situations. there was an immediate spike and then things calmed down. while there may be a reason for panic and i suspect at 9:30 in the morning tomorrow when wall street opens we may very well see some serious minus signs. it's not at all clear we'll end the day that way. you make a good point. david beers we saw from s&p he doesn't think the impact will be that great. would mortgage rates jump in one day tomorrow or interest rate on the credit card would suddenly see a huge spike? >> it's interesting because when they go up they go up quickly and when they coming down, they come down more slowly. it would take a couple of days for things to settle out and for actually loans to go up. this does give you some time to stop big balances on your credit card. try to get rid of them. go to a reputable debt service agency that can help you consolidate. take a look at refinancing, it may make sense to take your mortgage rate down a bit. so there are some things you can do to prepare for mortgage rates or interest rates to go up. although they may not be going up all that much. finally, the two other ratings agencies, they are like sandbags with the flood against the s&p. does it make them hold firm and stay steady or pressure them to potentially also knock down their credit rating? >> all of these rating agencies, after 2008 they didn't kch any of the problem with the housing bubble. s&p may be trying to make up for that. at this time, fitch and moody's show no sign they will are down grading but s&p did indicate it may be take the do you knowgrade even further. it's really take a look at politics. it's washington that is going to do this or not. just putting together a committee that says it will get rid of it did not impress s&p. they will have to do a lot more if they are going to see any sort of upgrade. that is the message of the super committee being formed. brenda, stay on the watch. >> speaking of congress, the folks on capitol hill and white house being blamed to get the massive debt under control. first ever since 1917. will this force them to stop the finger pointing? coming up political panel will weigh in on that. we're following the global markets so you won't miss a thing. fox news tonight will show a special fox business report from 9:00 to 11:00 p.m.. >> heather: fox news alert. we are learning reports that a man has shot and killed 7 people in ohio. they say the bloodshed resulted from a family argument. according to the police chief, five people were killed in one location and then two more apparently nearby. another person was injured. police later shot and killed the gunman. copley is about 40 miles south of cleveland. we will bring you more details as they come in. we are waiting to see to learn the fate of two americans locked up in iran. they were in court last weekend appearing was apparently their final court hearing. >> a lawyer shaesd said the release could come within one week. seven days there is still no signs of freedom. julie banderas has more. >> julie: one week, that is how long iranian court said would take to sentence the three american hikers. this is day seven as the world waits to hear the verdict will iran will respond to calls of leniency. but word they will be set free is being rejected. local satellite press tv that the ambassador to iraq has expressed doubt about imminent release despite the foreign minister says he hopes it will result in their freedom. back on july 31 the lawyer argued his clients were innocent of charges of illegal entry and spying. inth zblao8sdz >> heather: thank you very much. julie, we appreciate it. there is a massive typhoon around shanghai that has forced evacuation of more than 600,000 people. david pipe hears the latest from >> reporter: natural disaster in china have been put on full alert. china has been extremely worried about this typhoon because the last big one that hit back in 2006 killed over 450 people. back to you eric. thanks, david. >> heather: staggering loss for forces in afghanistan. we told you about this. american troops suffering the deadliest day since the war begin. we've got brand-new details on the operation to recover those lost. we will have some analysis from lieutenant colonel al ver north. that is straight ahead. plus 45,000, they are on strike. why they stopped going to work and what it means for millions of verizon customers. diabetes testing? 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>> those helicopters will haul a lot of folks. we have been packed on them in these kind of missions. you will getting out of a hot zone. hopefully not under fire. the taliban has claimed they brought this bird down. that has not been confirmed until they analyze pieces of wreckage and bring them back. reality is, it's a very difficult part of the country. it's been that way for a long time. my sense is this kind of quick reaction force and these kind of raid missions, sometimes a dozen a night are being conducted. they are going to have to do more simply because the size of the u.s. conventional commitment is dropping dramatically. it has already begun did. it begin earlier in month. marine units were pulled out that have not been replaced and that is way it's got to happen. >> 10,000 by the end of the year 23,000 by the end of 2012, believe it is. now, the taliban, away don't know for sure but an expert said we control the night. we've been able to say. with this attack, coming at night, do you believe it was a lucky strike or they having some new technology that we should worry about? >> one of the things we can't is good human intelligence. the footage showing, some of the footage we've shot out on these kinds of missions. you don't find out until after you conducted the operation. unfortunately we don't have good human intelligence. my sense is there a possibility you got night vision being provided to the taliban. there are questions whether iranians are providing surface to air missiles. a lot of those answers will come from the forensic work on this aircraft. >> heather: hopefully, they have retrieved all the bodies lost in this mission. our prayers go out to those families. these were dads and brothers. >> i'm told there are over 30 youngsters that are left without a dad. >> heather: we have on the screen, this is your book, american war heroes in special operations, i definitely recommend to it our viewers. thank you so much. colonel oliver north for joining us. >> eric: coming up more on the s&p decision to downgrade our credit rating. it's based in part in washington political bickering. how will washington respond. we'll have a fair and balanced debate straight ahead. >> a lot of lucky love in one small town. thousands of women and men, they try to break a world word to celebrate lucille ball's birthday. she would be 100 years old. >> to be part of the guiness world records attempts and meet nice people from all over the country that traveled here to be part of this. business is a "what if." what if we designed an electric motorcycle? 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[ female announcer ] oscar mayer selects are made with 100% pure beef and have no artificial preservatives. they're a great way to re-connect with your family. dad, how come the nelsons' lights are on? ♪ it doesn't get better than this ♪ >> eric: bottom of the hour and time for the top of the news. we're learning from a senior military source that the bodies of navy seals that were killed in yesterday's helicopter crash in afghanistan have been recovered. that operation to recover the chinook helicopter is still underway. >> heather: and it marks 13 years since the u.s. embassies bombs in tanzania and kenya. >> eric: in london a violent riot. it has left more than two dozen police officers injured so far. the reuters are angry over a police shooting of a man that was a suspected gang member. >> s&p downgrade of the u.s. credit rating may be a loud wake-up call in washington. top executives say partisan gridlock on capitol hill was a major factor in their decision to knock down our rating because they said it all raises serious doubts that lawmakers are ever capable of confronting the long term debt crisis. will washington hear the wake-up calls and do something about it? doug shone and matt. welcome. doug, let me start with you. is this is the kind of slap in the face that politicians need to wake up a and smell the coffee or some thing, they are not doing enough? >> so far the evidence they are going to do enough eric is not clear and ambiguous. you can quibble with the judgment that s&p made, the larger point about our politics is undeniably right. because we can't agree on anything. because we're going to a committee and super committee to deal with the spending cuts from the just completed debt deal, there is no reason to believe we are moving to a resolution. it may have well been an unwarranted call to down grade us but as a political entity, there is every reason to believe we are not reliable and steadfast and responsible as we should be. >> eric: some may say they have a point. the lack of a long term plan to reduce the debt. they say there is no plan. will washington ever get one, doug? >> i hope they will. but we had one in bolegs simpson he didn't embrace it and then he embraced with the gang of six plan with john boehner. i don't see any evidence that we're going to get a long term plan. we put one in place and every reason that we can and should do it again. no evidence that we are moving in that direction. >> eric: what needs to be done? >> the only thing that we really have bipartisanship in washington over the years is on spending. there is bipartisan support for all the big economist programs, bipartisan for the big highway bills and all the appropriations bills that have come through the spleos. our problem is that that bipartisan support for spending and for stimulus, can't be translated into bipartisan support for really making real cuts to make sure that our economy gets right again. the fact is what is leading the charge for these cuts, what everybody is responding to is the voters last election who sent a bunch of people to washington saying enough is enough. we have to get our house in order. >> eric: you are talking about medicare, medicaid, sby programs what do you do about those? >> you talk about pensions or benefits, people go crazy. the fact is congress is relying on a tool that they have always relied on which is an automatic cut to these programs if not able to come together, if the super committee can come up with a proposal that can pass both chambers. if they can't come up with an agreement there are frigers. >> eric: those cuts will start kicking in? >> they will do what congress does a lot, not to enforce the triggers. which i think people at s&p and other folks around the globe are worried about. are we actually serious about cutting. i think what the republicans did in the house shows that there is a strong push to make sure we make these economic decisions to cut spending. the question is can we get enough of these on the other side to jump on board to get this to happen. >> eric: december 23rd deadline, do you think congressmen will weasel out? >> i don't think they are going weasel out but my point that the $2.5 trillion cuts do not go anywhere near far enough to balance the budget. the larger issue is one s&p raised is can we put a plan in place. i would suggest that we do need a balanced approach, some raising of revenue, a disproportional amount of cuts of spending entitlements but to get our political leaders and members of congress to agree on that, i don't see it, eric. i hope i'm wrong. >> eric: and without that s&p is not restoring our rating. doug and matt, thank you for joining us. >> heather: the stock market is one of the first to open in asia stocks plem plummeted at the stop of the session. more from jerusalem. the markets opened in israel and investors dumped stocks like hot positive timers and they tried to prevent a crash with this kind of panic. closing bell saw a 7% drop in stocks. it was the largest amount of capital we have seen since the fall of 2008. >> because its opened on sunday, tel aviv was first to react and brokers worked at a feverish pace to get worried investments out of stocks and anything else. the market provides a brief glimpse into how investors are thinking. a number of securities are low listed on the new york stock exchange. all of those gave up huge losses. big maker of generic drugs gave up 5%. big banks lost an average of 9%. it's important to remember that israel represents the largest number of foreign companies listed on the nasdaq. also in the sell-off the protest over housing prices. nearly 300,000 people took to the streets of tel aviv on saturday night and uncertainty in the markets here. what does all this mean for the american markets? it might give to us glimpse in the psyche of investors. as they look what happened in israel today, it was the small investor the private investor who ordered their brokers to sell whatever the price and dumped all of their mutual funds. for every seller there is a buyer and it looks like the institutions were picking up these stocks what they thought were bargain prices. >> eric: america is considered a riskier investment than canada and even france. more than a dozen countries have triple "a" rarity go including the neighbor to the north. france, germany, australia got a better rating than we have. we join the ranks of new zealand and belgium. it puts us a noch above spain but hey, look at this. good news. we're still ahead of china and japan. they are double "a" minus. >> heather: thousands of verizon workers nationwide hit the picket lines and they fear phone service interruptions. our power panel is after the break. at bayer, we're re-inventing aspirin for pain relief. with new extra-strength bayer advanc aspirin. it has microparticles, enters the bloodstream faster and rushes relief to the site of pain. it's clinically proven to relieve pain ice as fast. new bayer advanced aspirin. 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[ laughter ] >> so what do we think about this. 35,000 workers on strike. how do we think this is going to affect people down the road? >> you say major? thanks for having at&t but verizon it worked really well and problems in new york. it's great service here. this is huge problem in terms of disruption. if they walk out it's going affect businesses, individuals and whole thing. >> i don't think there is going to be public sympathy, average salary is $65,000. they are in land line business, not the cellphone business. i think they look greedy in an economy when we have a real unemployment number close to 20%. danger however, so grateful that you have a job. we shouldn't strike. that is what striking is all about. it's demanding better working conditions not having to pay into your own health care. i don't think we should take away benefits from people. >> that is what they are talking about. making them pay a substantial amount more for the health care that they come up. >> nobody is breaking the contract. >> some of the signs and t-shirts say they are on strike for middle-class jobs. is that perhaps something people will pay attention to? >> i don't want people to be taken advantaged of and lose medical coverage or benefits. at the end of the day everybody has to fight about something. i don't know. i'm not deeply sympathetic about this. >> it's not britain where people are out there throwing things. that is unacceptable. >> they make a lot of money. >> heather: new outrage over this. jerry lewis was he was abruptly and mysteriously let go by the mda. fellow comedians. >> you don't spend 45 years working for something and then be dismissed like that. come in and say goodbye. >> heather: he is angry. no joking matter there. why was he let go? should the mda bring him back. he is 85 years old and done it 45 years. >> he has raised a lot of money. he had a has been the face of muscular dystrophy. if you are going to get rid of him, do it in a graceful way. a few weeks before the event don't just say you're out. >> somebody so synonymous, the symbol of this campaign. they need to give everyone an explanation, him the public. >> heather: do you know who is going to be doing it in his place? i did a google search. >> this is the way he has been treated. he has done more to advance the cause. in terms of the celebrity associated with a charitable cause. like a co-host have him there in more symbolic fashion. pay him respect and do it that way. >> heather: quickly another topic, despite the ous outsourcing. today boeing rolled out the first completed 787 dream liner. the plane is headed to japan airways. nippon airways and the first of hundreds to be built in the next few years. what does a product like this new dream liner say about the state of american manufacturing. it's pretty cool? >> it's very cool. it has a lot of great things involved. it was an outgrowth of technology, it doesn't corrode, bad news. china. america is great at developing new technology, it gets built in china. they take our technology. >> so it's more fuel efficient which another great thing. >> i want them to sell a lot of them, they are $200 million a copy. that is very lot of high passenger fees. more they sell the better. >> and take the technology and they manufacture it at lower cost, we lose all of that. >> i'm very more exporting america. i want the jobs here. i don't believe it extending to china. i want the chinese to buy it. i want everybody to buy it. >> is show me the money. >> heather: one the most important things for parents when it comes to education. a study on class size. moms and dads may be panicking over nothing. we'll talk about that up next. stay tuned. with my cholesterol. anyone with high cholesterol may be at increased risk of heart attack. diet and exercise weren't enough for me. i stopped kidding myself. i've been eating healthier, exercising more, and now i'm also taking lipitor. if you've been kidding yourself about high cholesterol...stop. 80% of people who have had heart attacks have high cholesterol. lipitor is a cholesterol lowering medication, fda approved to reduce the risk of heart attack and stroke in patients who have heart disease or risk factors for heart disease. [ female announcer ] lipitor is not for everyone, including people with liver problems and women who are nursing, pregnant or may become pregnant. you need simple blood tests to check for liver problems. tell your doctor if you are taking other medications or if you have any muscle pain or weakness. this may be a sign of a rare but serious side effect. great ride down. if you have high cholesterol, you may be at increased risk of heart attack and stroke. don't kid yourself. talk to your doctor about your risk and about lipitor. >> heather: few things about school matter more to parents is class size. there is a new book that claims. parents are freaking out about the teacher/student ratio. back with the panel. thanks for sticking around. you guys are parents. what do you think about this? does it matter to you. [ laughter ] >> i mean with class size, it's all about discipline. if you have class with ten kids in it and one kid is unruly, nine kids don't learn. if you have a class of 30 kids and good teacher and there is discipline, 30 kids are learning. class size is not the definitive issue. >> give me a good teacher and be able to engage and manage the classroom and make eight learning environment. i was teacher myself. i have a little one that is four and a half and he was in classroom with 12 boys and three girls. he was good listening and good learning. >> imagine if there is a 60. >> 32 states have allocated money to bring down class size. i think it's conflicting things. to how much it matters, but there is a certain level over which you just can't go no-no matter how good a teacher you are. >> a teacher refers to something she calls it differentiated instruction. that is a new buzzword. individualized attention to students. it comes down to the teacher. obviously if you have less students you can pay more attention individually if you are a good teacher. >> 100th anniversary of lucille ball's birthday, hundreds of residents from her hometown including men stepping up as lucy look-alikes. were they able to pull it off? setting the record at 915 lucys. there they are. we had to show that. i love it. thank you guys. we have to wrap it up there. london for almost 24 hours has been rocked by violent protests. we have brand-new details coming up with the reaction and live report from london next. ugh, my feet are killin' me. well, we're here to get you custom orthotic inserts. dr. scholl's custom fit orthotic center recommends the custom-fit orthotic that's best for your tired feet. foot-care scientists are behind it. you'll get all-day relief. for your tired achy feet. for locations, see drscholls.com. thank you... a network of possibilities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more amecans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... f greater access to all the things you want, whenever you want them. it's the at&t network... and what's possible in here is almost impossible to say. fox news alert. in three hours the asian markets start to open. we will know more about the impact and how they are going to react after the s&p downgraded america's credit rating. opening bells may offer clues. hello i'm heather childers. >> and i'mer -- and i'm eric shawn. the decline is already being felt this sunday in the me east. markets in israel, down 7%. in dubai, 5%. abu dhabi stocks down 2.5%. key lawmakers have been weighing in on the downgrade some offering differing views on who is to blame. steve centanni with the latest. >> reporter: it may come as no surprise, each party blaming the other for the debt crisis and downgrade of our credit rating. the man behind that downgrade david beers of standard & poor's appeared on fox news sunday and said in single party should take all the blame. >> congress and the administration are jointly responsible for the conduct of fiscal policy. this is really not about either political party. it is about the difficulty of all sides in finding a consensus around fiscal policy choices. now and in the future. >> reporter: beers says a further downgrade is possible because the u.s. government debt burden will likely continue for years to come. not everyone agrees that no political party is to blame. there's a heated debate on capitol hill whether tea party republicans are responsible. >> i believe, this is, without question, the tea party downgrade. because a minority of people in the house of representatives countered even the will of many republicans in the united states senate. who were prepared to do a bigger deal. >> if they listen to the tea party we would have four trillion dollar reductions and debt over time and not been downgraded. the tea party has come to washington talking about reducing spending, thank god they are here. >> reporter: other voices, congressman paul ryan of wisconsin saying both parties are to blame. he prediagnostics consumers will pay with higher -- he predicts consumers will pay with higher interest rates. mccain says the president is to blame. even so calling for softening of the rhetoric and more cooperation. >> eric: what did the ratings mean? let's look at how standard & poor's defines it. the aaa that we lost it means a borrower has an extremely strong capacity to meet financial commitments. something the s&p says we no longer have for the first time since 1917. within notch down aa suggests a very strong capacity to pay money back. next up, a, borrowers have a strong capacity to meet financial obligations but more vulnerable to changing economic conditions. then bbb lowest grade suitable for investors. the lowest rating anybody can get is a d signifying financial default. moody's and fitch still are the u.s. at the storiling aaa. >> stay away from that d. what is likely to happen when the asian markets open? joining us brenda buttner. thanks for joining us. around 8 p.m., when the asian markets are set to open. what did you expect to see happen? >> this is a first chance they will have to react to what happened friday. i suspect we will see a down market. what we will really expect next week, on wall street and globally, is a lot of volatility. volatility has jumped from 50% in the last week. you can expect a lot of seesawing in the market. much of this however, has to do not so much with the downgrade, but with what it reflects about the u.s. . we have ter rebel job reports numbers friday. there -- ter able job reports friday. what wall street is reacting to, not so much the downgrade, honestly, some of the big investors don't pay attention to what s&p has to say. they will continue to buy treasuries. as will asia and europe. they both, the central banks in both of those entities have said they will continue to buy treasuries. it is really a question of what happens to the little investor. and really we are going to see a lot of volatility. a lot of uncertainty in the market, i believe. >> brenda, is this true, one of our experts said this, for every small investor, for every seller there is a buyer? what difference does that make? >> that's the way the market works. you have to have a buyer to have a seller. we're likely to see some people lobbying and some will be selling. heath heath is it a good time to -- >> heather: is it a good time to buy? >> there could be few buyers and sellers. in terms of buying in terms of treasuries is people seem to be buying them. that will keep interest rates down. who knows what going to happen in the future? it takes usually a little fall-out time. in terms of stocks, stocks have come down 10%. some still say they are overpriced. it depends on your risk tolerance. i will say this, remember back in the big crashes, correction is not even a bear market. we've only been down 10%. we could go into 20% territory. but, usually in bear markets, there will be somebody, some smart somebody who jumps in. peter lynch at one point was that i wouldn't get in before somebody else got in like that. it takes a lot of guts to do that. >> heather: thank you brenda. we will have special coverage as the asian markets open tonight at 9 p.m. our coverage begins eastern on the fox news channel and business network. special report on the credit downgrade with gerri willis. she will join us at the bottom of the hour to talk about the opening of the asian markets a little more. >> eric: turning to the campaign trail. former minnesota governor tim pawlenty is stumping hard in iowa. ahead of the critical show of support by iowans at the ames straw poll. he appeared on fox news sunday chris wallace asked, why after so much time he spent in that state, is he still trailing some of his rifles? >> when you have cam -- his rivals? >> when you have campaigned longer and harder why is congresswoman bachmann beating you? >> those early polls don't predict the final outcome ever. if they predicted anything rudy giuliani would be president or hillary clinton would. we are seeing momentum on 9 ground. you are going to see good -- good progress, the proof will be in the pudding. you will see our campaign moving to the front of the pack. >> eric: the ames straw poll saturday. before that, something big here. fox news' republican presidential debate that will be thursday august 11th, this coming thursday night, tune in at 9 p.m. eastern time to see the candidates as they showcase themselves. they will be live from ames, iowa. >> one public official who faced an unprecedented giant budget gap and severe government financial problems that nearly sank a city has died. former new york governor hugh car, y was 93-years-old. he led the fight that brought new york city back from the brink of bankruptcy during the landmark financial crisis in 1975. when he took office banks refused to lend new york city more money. president ford turned done a request to use federal funds to bail the city out. he cobbled together a team of officials from bankers to label leaders to of the financial crisis. in words that some could say re the financial problems we face today. he said, the days of wine and roses were over. he called for shared sacrifice, created a panel that strictly monitored government spending until the financial crisis was solved. he served two terms as governor. he is survived -- has had 14 children. hugh carrie, giant governor of new york, dead at 92. -- . >> heather: new developments in that helicopter crash in afghanistan. pentagon official telling fox news all bodies have been recovered if the site. today president karzai of afghanistan called president obama to extend condolences to the american people. this, as americans take a moment to honor the 30 u.s. troops killed. meanwhile, it is a heartbreaking time for the families the war heroes leave behind. many are remembering their loved ones and the ultimate sacrifice they made for their country. doug is live in washington with more. >> reporter: it is important to remember that efforts are ongoing to retrieve the chopper. that will help to determine whether the chopper was shot down by÷ky enemy fire. the names of the 30 vickments of this most deadly accident are -- just trickling in. one john brown from arkansas. arkansas state representative john woods says his friend john brown was not only a local -- but an american hero. >> everybody liked john in high school. he was easy to get along with. great athlete. great sense of humor. very finance any. physically fit. men -- very funny. physically fit, mentally sharp, great sense of humor. when i think of the perfect soldier that was john brown. >> reporter: another victim aaron carson vaughn. pdñ had asked the military to return into combat. he shipped out six weeks before he was kill. his grandmother of tennessee says her grandson wanted to be a seal since he was a child. he left for afghanistan two weeks after his two-month-old daughter was born this summer. >> i'm very proud of him. he was such a good boy. and he loved his country. enough to put his life on the line. >> reporter: as to the recovery of that chinook helicopter, very key they will be doing a forensic examination. in addition to the propect of it being a rocket propelled grenade that brought it down. there's a chance that some mechanical problem caused it to crash. all of that will be examined closely in the days and weeks to come. >> heather: no doubt, the days and weeks to come more personal stories. thank you doug. ererer people in london stunned by -- >> eric: people in london stunned by violent riots. this is last night after the shooting of a 29-year-old man who media reports say was a gang member this occurring during a police operation to rid guns from the streets of london. joining us on the phone is christopher walker. it is night fall now any latest trouble? >> reporter: yes, it has moved a mile or two up the road from the disastrous scenes of last night to another north london suburb which is also a very impoverished area. taking the same lines with shops being looted and cars attack. more difficult for the police to control is the sort of roaming gangs of let's say two or three hundred troublemakers. when they've hit one spot that is guarded by the police, they move to another. it is early hours london now, 10:15 the pubs closed. there had been hope that rain earlier might have dampened the enthusiasm of the rioters. it doesn't seem to have had much effect. there's such a -- the scene of last night looks like burnt out remains of the blitz. >> what do we know about the victim? his name is mark duggan. there are reports he may have been a gang member. may have been armed. may not have been. concerns and questions over whether there was an exchange of gunfire when police tried to arrest him. what did we know? >> reporter: lots of rumors on twitter. the police briefing off-the-record that he was a gang leader in the area, deeply involved in drugs. that he was regularly armed. a bullet was fired by him and hit a police radio. the police then opened fire. the other side saying it was an execution-style killing by armed officers. it is a part of london where traditionally there has been terribly bad community relations. there were hugecy riots there 2, 30 years ago on an estate after a police officer was killed there. this couldn't have happened at a worst time for london. we are trying to impress the world the olympic games next year, we have absolute capital civilization and peace. these riots as you have seen yourself on the shots, which by the way, again the great bravery by the cameramen. they've also been attacked and their equipment looted, showing a place looking like belfast 10 years ago. >> eric: it is just past 10:15 at night in london. hope there will not be a repeat overnight. christopher walker reporting live from london on the latest, thank you very much. >> heather: there will be no freedom tonight for the two u.s. hikers locked up in iran. it has been one week since their lawyers said their release seemed like a sure thing. they appeared for what was apparently their final court hearing last weekend after their 2009 arrest. now many are wondering if the two friends will be coming home, at all. after predictions of their release falls through. julie banderas has more. >> today should have been the day. seven days ago today said it would take one week. no word as the world waits to hear the verdict whether iran will respond to calls for leniency. there are conflicting reports out of right ran whether the hikers will be set free. according to the -- local satellite press tv today iran's ambassador to iraq rejected reports about their imminent release. yesterday the foreign minister said he hopes the verdict will result in freedom. july 31st, the lawyer representing the three hikers argued his clients were innocent of charges of illegal entry and spying. in a statement today, the u.s. state department tells fox news the trial of the three has concluded and a verdict should be forthcoming. shane and josh have been in prison too long and it is time to reunite them with their families. two years ago the three were hiking along the border we iranian police arrested them saying they illegally ended iran. and accused them of being spies. which carries the death penalty. the two have been held in an iranian prison. sarah showered was released for medical -- medical reasons. between the court does reach a guilty verdict, their attorney says the time they've spent in iranian custody, two years is likely enough. the families maintain their innocence and have wral lead the international community to press iran for their release. -- parents worry about peer pressure and kids doing homework. some say there's a bigger threat. less than a month from the first day of school. what you can do to protect your child from common school health hazards. hey, the new guy is loaded with protein! really? 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[ major nutrition ] new ensure hh protein. ensure! nutrition in charge! the two trains and a bus rider. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu. fox news alert. police chief in san diego says the police officer shot in the face in an unprovoked shooting has died after several hours in critical condition. police say two men drove up along side police cruiser at a stoplight saturday and then without warning, one fired a shotgun into the officer's window. the armed suspect 23-year-old was later shot to death, by police as he tried to avoid arrest. investigators say they have no motive for the shooting. the second suspect is still on the loose. investigators are piecing together details. we'll have more as it is available. >> such a tragedy in san diego with the killing of that officer. some departments in california are using social networking like facebook and twitter to track down criminals. for some, the high-tech method is raising new concerns over online privacy. casey stegall live in our los angeles bureau with the latest. how are police using social media? >> reporter: it is fascinating how the technology has changed things this is no longer about uploading your photos and posting facebook status updates. cops not just in california but around the rest of the country, now using facebook, twitter, myspace, youtube to not only catch criminals. but to also get information out to the public. recently police out here nabbed a vandal after he posted pictures of his own graffiti online. remember carmageddon in los angeles a few weeks ago? lapd tweeted out alerts end listing celebrities to send out messages to reach more people. police say the social networking sites are changing the way they get information out. >> we are able to not just present information but deliver it to anybody who wants it. that's regardless of how many other news stories may be going on. we can breakthrough that and still get the message to them even if the news is preoccupied with some other event. >> reporter: not just happening in cities like los angeles and in new york. it is happening from big cities to little towns. a trend that is taking over the nation. >> eric: does this mean that they are checking our facebook pages right now? >> reporter: that's a fine line that raises the privacy concerns. police departments say, no they are not going through john q citizen's facebook pages. they want to remind people that what you post online is fair game this is a day in age where a lot of us do our tweets and we put our vacation photos online. and we do it without a second thought. the la county sheriff's office says they are not just looking for anyone. they go online to search out a suspect in particular. someone who they already suspect is guilty of a crime. then they will match that information with their own databases. but, the internet experts tell us that again, in this day and age when social networking has literally taken over and we live in this digital world, we need to think long and hard about what aspect of our lives we want to put out on the world wide web. >> eric: good advice. >> heather: we are watching the asian markets. they could serve as a barometer for global reaction to the u.s. credit downgrade. and maybe provide clues for what happens when wall street opens tomorrow morning. what can we expect? we'll talk about it, next. [ man ] behind every business is a "what if." what if we designed an electric motorcycle? what if we turned trash into surfboards? whatever your what if is, the new sprint biz 360 has custom solutions to make it happen, including mobile payment processing, instant hot spots, and 4g devices like the motorola photon. so let's all keep asking the big what ifs. sprint business specialists can help you find the answers. sprint. america's favorite 4g network. trouble hearing on the phone? visit sprintrelay.com. >> heather: fox news alert. we are an waiting the opening of the financial markets in asia. investors watching closely as they wait to see what turn stocks will take following standard & poor's historic decision to downgrade america's credit rating. do we have any indication whatsoever what to expect when asian markets open? jerry willis and host of the willis -- gerri willis and host of the willis report graces us. any indication as to what will happen? >> we are starting to get some markets saudi arabia saturday night opened 5%, ended 7%. israel stock exchange opening down dramatically. we are worried about a cascading of markets. asia, europe trade down and we open tomorrow morning and may follow suit. that's what we are worried about and watching. we'll be talking this tonight. >> heather: one of the phrases used earlier with reference to israel said it opened with investors dumping stocks like hot potatoes. should we expect more of the same? >> s&p downgraded our debt, as you know. treasurys critically important used by professionals, individuals. when standard & poor's said that investment wasn't as good as it used to be it introduced nervousness into markets. they don't like when they can't predict what is happening next. some folks will be selling. maybe it will be an overreaction and in a couple of days we'll build back. we have to wait and see. >> heather: immediate reaction versus a long term consequence, what do we see long term? >> you have to think would it take many years for the u.s. to come back iners of the credit rating. when you look at the -- countries, five of them it took years, six to 19 years to rebuild that credit rating. it can take us a long time as well. we issue 2/3 of the best regarded debt in the world. our debt was rated aaa for many, many years. and widely regarded as the best investment. it is not likely that investment managers across the planet will sell their treasuries. they are not going to make that call. but markets are nervous. there's lots of reasons to be worry. europe is having major problems. it is happening around the world. is one of three agencies -- >> heather: this is one of three agencies, fitch and moody's still have us at aaa? >> right there's a split decision. as you know the administration the president's folks in the white house have said, this isn't right. they shouldn't have done this. they are saying it shouldn't have been done. we'll see that play out. that is yet one more thing that is -- >> heather: finally, moody's and fitch, could they lower their rating now, based on what s&p has didn't? also, s&p has said this may be the beginning and they could lower us again. >> s&p has put on know they may lower our debt rating one more time. moody's has said we are going to look later and see if you have done something to shore up that debt problem. it could be that all three weigh in with a negative decision. we just don't know yet. >> heather: i really hope that doesn't happen. tune in tonight for a special report with gerri willis. she fill further examine the downgrade. what it means for america, you the world. be sure to tune in. >> eric: the downgrade has already sent stocks downwards. we are witnessing washington's reaction. partisan rhetoric flying from both parties. what is going to be done? michael goodwin joins us. always great to see you. it is astounding. we went through world war i, the great depression, we survived world war ii and they did not damage our credit rating. now this. how do you think the politician dig us out? >> they are the ones who got us into it. the spending has been rising so much faster than the revenues for a long time this is not a recent pub -- problem. it has now reached a tipping point s&p does the downgrade by one notch is a culmination of a long history. the question is, can this same political class that has seemed ever more remote from ordinary concerns, can they work together to reverse this course? the early indications are, not yet. >> eric: what do the american people do to try to change the course of this? >> i think the american people have been clear. i don't blame the public on in the sense that the public has made it clear, by and large, it does not approve of the economic policies of the obama administration. i think the election of 2010 was a very clear message about spending, about debt. yet, it hasn't been curtailed. the agreement over the lame duck session continued some things, tried create more stimulus through tax, cuts and holding the rates where they were. the economy is sinking, still. joblessness is very much a big issue for people around the country. and the -- what we've done is run up this incredible debt without getting results in the economy that people can appreciate. in a way it is the worst of both worlds. >> eric: you mentioned president obama "time" magazine when he was first elected that likened him to fdr, remember this? >> that makes you look foolish today, didn't it? >> eric: could this change to hoover? history blames hoover for the great depression way is in store for president obama? >> i think the president's main problem is he doesn't have a plan. i think he's going to be hurt by this more than the republicans. there are a lot of people who want to blame the republicans for holding up the works in the debt ceiling debate. in fact that was only because the president didn't have a plan to begin addressing the deficit. people forget this eric, peter orszag, president obama's first budget director left. it was reported after he left early, less than 18 months in the white house. he left, he was reported afterwards that the reason he left early, was he could get no one in the white house to talk about the deficit. that i think is an indictment of those first two years when the democrats controlled all of congress and the white house and put this -- put us in this position of the tipping point. now i think president obama bears the greatest burden. because he's the president, he has to lead the charge to do something about the debt. all of these plans that we're talking about, the debt would continue to rise. none of these are close to a balanced budget. >> eric: that's the problem this is a relevant conversation today, someone you knew died today, governor hugh carey of new york who faced horrendous problems. would you reflect on what we can learn from what hugh carey did facing the financial crisis in new york? >> for those who don't remember his history he was governor during the financial crisis in the mid 70s in new york city and new york state. the city was far worse than the state. the famous headline in the daily news here in new york, ford to city, drop dead came after president ford declined to bail out the city. hugh carey as a new governor, he actually led the charge to bail out the city. what he did was essentially give credibility along with programs, to take some of the burden off the city. but the city had lost the ability to borrow money, just as -- at any rate. it wasn't like greece, new york city couldn't borrow at all. the state had to step in. hugh carey was the captain of that storm and he stood there and the waves came and assaults. and he stood there ain't cost him a lot of popularity. he helped to reduce the headcount. he helped to do all kinds of things to tighten the belt demand repayments be made on bonds and gave the city back its credibility and its access to the public credit markets. >> eric: and he call for shareed -- [ inaudible ] >> we could use a hugh carey right now. >> heather: new details on three florida siblings on the run from police. fbi launching a manhunt for the trio being dubbed the dougherty gang. investigators believe they are on a violence mission. police across the country preparing for a confrontation after they say the three held up a bank with high powered weapons. the three only escaping justice after firing on police. fox affiliate w tv t josh has more from florida. >> reporter: hidden away, sophisticated bunker beneath the property according to neighbors two of the three lived until a few months ago. the current owner did not want to be seen. but gave fox 13 a look inside. >> it is two 40 foot cargo containers buried underground, side by side. with a hall that was manmade. >> reporter: this butcher has power, running water and pump system built by hand. no one can say what it was used for. deputies confirm it was investigated for drug activity. nothing illegal was found. the owner who bought the property after the dougherties moved out was shocked by what he saw. >> very surprised they got good minds and they put 'em to waste. >> reporter: the three dubbed the dougherty gang are accused of firing at least 20 shots at police officers tuesday morning during a high speed case. later that same day, shooting their high powered weapons in the air during a bank robbery in georgia. billboards plaster their pictures across the southeast. they are considered armed and dangerous. >> i couldn't have imagined that they are involve in what they are involved in now. >> reporter: as the search goes on curiosity grows. sister lee grace describes herself this way: i love to farm and shoot guys and wreck cars. i like milk and german engineering and causing mayhem with my siblings. >> this is only one way out for them to call the police in the community they are in and say we surrender. >> heather: that was josh casio in florida reporting. >> eric: we agencies like s&p make announcement they did the entire world listens. what happens when the news has a negative impact on our bank accounts? 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kimberly guilfoyle and former prosecutor joey jackson defense attorney and former prosecutor. welcome what can people do? tomorrow morning we are going to wake up and it is going down, maybe. >> i don't know if you should spend your extra money calling your lawyer for that consultation it can be tough to sue these guys. i don't know if you are going to get the money out of them. there's a little thing called the bill of rights in the first amendment this is public opinion, first amendment protected, so you couldn't necessarily go after standard & poor's. there's been new developments, maybe there's a window. >> it is still difficult. there is the bill of rights watch the courts have done they've said these agencies when they make these edicts about credit ratings it is first amendment protected. we are seeing regulatory measures taken lessening the significant of the rating agencies. they are pulling back 9 credit ratings and indicating that other methods are -- necessary not looking at credit ratings. these people when they make a credit rating like this an justment it affects trillions, world markets and millions. -- there needs to be accountable. they've been wrong before, we know that you look at the mortgage industry. it is great, the credit ratings are up, it plummets before our eyes. we have to consider the source. >> he's right. they blamed them for not forecasting and alerting veries to the subprime mortgage disaster. the accountability is important. you see the aftermath, the effect the impact ofkg a downgrade what it is going to internationally, globally in that case they feed to be careful. there will be, i believe legal and political ramifications against s&p. we'll find out. when you base a decision like this as s&p didn't the fact that the political discourse in washington is out of control. that's the nature of the political process. they argue, they fight. we have to look at the end result we have is a deficit reduction land that occurs overtime. good on repaying debt? the answer is yes. >> so shouldn't that count for something? >> it feeds to. look, this is one -- it needs to. look this is one agency the others have not reflected what s&p is doing. >> does that diminish the impact of what s&p has done? or does it highlight the arbitrariness watch they've done basing it on political discourse and who had failure to lead or show any political plan, blame tea party, democrats, mccain says, blame obama. >> eric: s&p saying there is no credible plan they see to address the deficits. they are saying there is a big problem and it ain't getting better. >> fact they don't like the debt deal is one thing there there were efforts un washington did reduce into a plan that is work able. the other agencies seem to believe and suggest that this -- that this plan will be successful. i don't think they have the underlying basis to do this. the white house is furious over this, saying there was no justification. it comes back to the point, can you sue? you are right, i would not be calling my lawyer tomorrow morning. >> eric: the sec has taken actions to downgrade the importance. they've got an office of credit ratings they've started. is there a sense they are watching the creditq4+it rating? they are going to be monitored more? in the financial crisis everything is aaa, great, uh-oh look what happened. >> this is not a foolproof system, as we know. there's been instances where you have agencies saying it is aaa, okay everything is fine. people buy and it is gone! the fact is, there needs to be more regulation that's what dodd-frank did institute more regulation, oversight to ensure these credit agencies don't have this tremendous power we all rely upon. >> if it was your broker doing that you could go to an arbitrator. why can't you do that with these guys? >> great argument this is going to be a test case. in 1999, the 10th circuit court of appeals upheld a dismissal sense s&p for this type of thing saying you can't sue for this regarding a negative bond rating valuation there is precedent, new regulation. it is one to wait and see and watch. >> eric: we'll have to see with bated breath what is happening on wall street. >> it is going to get better eric. >> eric: at some point it will, yes. thanks so much. >> heather: i look the term snookered, good one. >> back-to-school alert. from infectious diseases to sleep deprivation and bullying. we talk with our team about how to keep kids healthy as students get ready to head back to class. one day i'm on p of the world... the next i'm saying... i have this thing called psoriatic arthritis. i had some intense pain. it progressively got worse. my rheumatologist told me about enbrel. i'm surprid how quickly my symoms have beemanaged. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervo system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whetr you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections, have cuts or sores, have had hepatitis b, have beetreated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness. get back to the things that matter most. good job girls. ask your rheumatologist if enbrel is right for you. ♪ [ male announcer ] try fixodent with a time-released formula. use just once per day for dawn-to-dark hold. it is important to use the product as directed. fixodent and forget it. >> eric: kids across the country will be getting back to the back-to-school mode in a few weeks. teachers and tests waiting for them. that is not the on thing. >> heather: from sleep deprivation to infectious diseases, even bullying. there's a lot talk about and a lot of health risk. how can you keep your kids safe and healthy when they are surrounded by so many things that can happen? dr. mark siegel joins us with more on that. going back-to-school, they are ahead of the game, a little healthier now, right? >> this is a great time to talk about this for that reason. i look at my own kids, they've lost weight, exercising everyday, sleeping better, happy, not sick. over the summer kids done get as sick generally because most of the infections need the low humidity of winter to thrive. guess where else they thrive? in schools. kids touching, sneezing, sitting close together, not washing hands. we have to take a pause and say what are we doing right now that we are not going to do right in a month? one of the things i've said. get your kids to sleep properly and keep those sleeping habits when they go to school. >> heather: keep them on a schedule? >> absolutely kids are more fatigued and arrested when they don't sleep. my 14-year-old carries this huge backpack he calls it his file cabinet. kids are getting sciatica and back trouble. kids should not be carrying big backpacks. cdc and institutes of medicine recommend daily ed fiscal education -- physical education classes. less than 5% are having failly physical education class. >> you mentioned the backpacks, it is unbelievable. should parents trade in the backpack for one that has wheels? >> that's a great idea. how about moving more towards the computer age. it is ridiculous. how about leaving it in your locker? you talked about bullies, major problem. study shows up to 20% of kids are bull reed. -- are bullied. kids have to have a network of friends. you have to teach self-esteem. there's too much stress in schools. this academic performance, i'm better than you, that leads to bullying. we have to teach our kids to feel good about themselves. >> heather: the bullying thing you can't escape when you get home you have social network sites, kids bringing the bullying home, doing things like that. >> great point that same study said three out of four teenagers are involved in some kind cyber bullying that is before my generation. that means we as parents have to carefully watch the internet. >> eric: what should a parent do? do you call the parents of the other child, alert the school? >> i did that. then i talked to some experts at ucla they said that's a bad idea. it worked in my child's case. you can't choose other parents you have to involve the school directly in a way that doesn't embarrass your can i. kids can be impervious to bullying if they feel good about themselves and less competitive. >> heather: feel good about yourself. >> and wash your hands. >> i can believe we are talking about them getting back-to-school. >> summer has by. thank you doctor. -- >> that does it for us. fox news sunday is coming up. >> chris wallace up next. have a great week. thanks for joining us. nice to have you here too. >> god to be here. take care. -- good to be here. >> take care. hey, the new guy is loaded with protein! really? 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? 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