felony. >> gretchen: the president said he will not apologize for that even though the facts are wrong . so much for civility. >> steve: and are you better off today than you were four years ago. the president doesn't think so. >> if someone asked you, it is still about change. washington is still broken as it is four years ago. >> steve: presidential faux paor you decide. >> b > gretchen: good morning. aaron is in for brian kilmeade. you have a tie on. >> huge show . >> steve: great to have you here. last time we saw, wot side staying the staff was out of control and on a conference on thursday, stephanie cutter campaign assistant manager for president obama amping things up and called mitt romney a crook, remember? >> either mitt romney through his own words and own signature was misrepresenting his position to bain to the sec which is a felony or he was misaren'tings his position at bain to the american people to avoid responsibility for some of the investment. >> gretchen: he would have committed a bayin. even if he was not there. he left bain in 1999 to save the olympics. they are trying to make the connection he was there. that is when the allegations of outsourcing jobs. follow all of the lines and connections to find out why we are talking a felony. >> it is interesting that stephanie carter used the fell me word. no indication that romney has done is illegal. he was a founder of the and president and ceo. you don't have to be active in the board room to be a president and founder of a company. >> gretchen: would there have already been a crim thal investigation . in politics you can say whatever you want and up to the other team to come up with a way to defend. >> that may be crossing the line. boy, saying a felony and breaking the law. i haven't heard that. >> steve: and ed rindel this attack may be hurting the president's brand when supporters did the felony thing . the big quempt mitt romney went on the networks and is this really the level we want the debate to be. he was asked whether the president's side should apologize. he said yes. and the president apologize. he said no in an interview. he said no, we will not apologize . mr. romney said he is mix fix had it it is business experience. they will not apologize. >> gretchen: the obama team has had a long time to find out how to attack romney. we would interview the democratic national chairman debby wasserman-shutz he would attack mitt romney. had they are craft yeputting this together. >> remember how ralm emanuel was, he had an ark sessment what romney's reaction should be. >> quit whining and if you want to clam bain capitol is your calling card. defend what happened to those jobs over seas. >> he said like stop whining. it is a felony and then stop whining. >> steve: remember two weeks ago we heard from the obama campaign. mitt romney is cleaning our clock when it comes to fund raising and we need more money. an item in the washington post how so far the obama administration and spent hundred million on attack ads and they are still tied. they are calling mitt romney a felon in july what is left for august and september. here is kevin on the romney attacks. >> we have a job's report that came out recently and.2 percent unemployment and record deficits and we have people that are trying to find a job and people that have a job and they are worried about losing it. and the president doesn't have an answer to that for the american ople . he's not talking about his record . he doesn't have that. one on what he would do to create prosperity for more americans . that candidate is governor romney and then you have president obama. who has tough economic struggles and telling the american public that one thing they need to be worried about and three things they need to be worried about is what is in governor romney's financial disclosures. >> i don't know anybody who cared when romney left bain. >> gretchen: we'll debate on whether the romney camp should respond. we'll analyze it for you today . in the meante are you better off than you were four years ago. well president obama in the interview to cbs news said a shocking thing about whether or not you are better off and what he has to do with that. listen to this. >> this campaign is still about hope and if somebody ask you it is change. washington feels as broken as it did four years ago. if you ask me what is the one thing that has frustrated me most over the four years it is not the hard work; it is not the enormity of the decisions or the pace. it is that i haven't been able to change the atmosphere here in washington to reflect the decency and common sense of ordinary people who want to see their leadership solve problems. yeah, there is enough blame to go around for that. >> it is interesting that washington feels as broken as it was before. not that we had add trillions in debt. and unemployment is over 8 pit. it is washington still looks broken. which by the way he had a democratic house and senate in when he took over the white house. >> steve: the president said it is about home and change. karl rove said it was not work four years >> independent voters were drawn to obama because it would change politics is gutter politics of worst chicago sort. >> gretchen: it is only july 16th. in the meantime a couple of headlines for us. in houston texas, tragedy struck soccer players. the tree struck by lightning killing two of the men and third to the hospital. >> i heard what sounded like a bomb went off. lightning strike hit the tree and dispersed and went on the ground. >> lightning hit the tree and the men flew. >> gretchen: man who kidnapped two kidnapped tourist in egypt to at a back or heel kill the hostages. it is a pastor and both were from boston. the minister is a diabetic. >> we are still in good spirits and praying for him. >> there is no word for it. i can't believe this. this is a man of god. >> gretchen: their captor is using the hostages to get an uncle freed from prison. he is threatening to take more hostages. security breach in london row -- heth row airport. airport staffers allowed several people in the country even though their names appear on a terror watch list. the the olympic committee did not hire enough guard. nba superstar jason kidd arrested for drunk driving . he just signed with the new york knicks. he was carried out of the night club after reportedly drinking a lot of vodka. no one was hurt in the crash but it knocked out cable lines. >> steve: thanks for joining us and first the navy going green and now air force 2. it will cost you big time. straight ahead. >> gretchen: and agents who work on the mexican border. the drug smugglers are outsmarting our border patrol. ♪ hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet. that's true. ...but you still have to go to the gym. ♪ the one and only, cheerios st $14.99. start with soup, salad ancheddar bay biscuits then choose one of 7 entrees plus dessert! four perfect courses, just $14.99. come into red lobster and sea food differently. ♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. this is the pursuit of perfection. for their "destination wedding." double miles you can "actually" use. but with those single mile travel cards... 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[ all screaming ] watch the elbows ladies. >> gretchen: secretary issues in the mexican border as concerns that drug cartels. building a fence will not make a difference. joining me is a special agent for the united states and custom service and author of 60 miles of border. kerry kirkpatrick. good morning terry. >> good morning, gretchin. >> gretchen: doing find. you saw this first hand on the border. what do you mean that the other guys have the upper hand on us. >> guest: the drug business is a multibillion dollar business and they have ability to buy airplanes and armored vehicles and guns and night vision googles and you name it, they have the ability to purchase unlike the american agents. >> gretchen: you would think that america would be on the top of the game, but you would trust informants and what would they do to you potentially? >> guest: informants are the key to working any kind of major cartel operation. you have to infilt rate that cartel. and you are dancing with the devil by hiring informants and sometimes they will give information and take they are gaining from you back to the cartel . sometimes will have a hit if you are not careful >> guest: i have had multiple death threats and one instance an informant gave me information about a specific stash house that was smuggled two or three tons . i went in on foot to try to take a look and the informant was the only one had told me the directions. and of course, 30 yards out from the house was just hit by a bar age of bullets and hit the ground before i got hit. it was a quick lesson learned never to trust the informant. >> gretchen: the amount of tunnels amazes me. last week we showed one six feet high and football fields long and air conditioned. how do we combat this if we have a fence on top of the ground and they dig underneath. >> guest: i don't think homeland security realize wills no matter how tall it is. they will fly over it or four different tunnels discovered and the one you are recoverying to was 240 yards long and others that are 300 to 400 yards and over 70 tunnels discovered in four years alone. >> gretchen: what is the answer? >> guest: i don't know if there is an answer as far as the fence and border. the war on drugs i don't think ever existed. it was a coined phrase back in the time. and i think the resulting deal would be to look at the american people and their desire to use the drugs and figure out if there is another prohibition or where we are going with this. >> gretchen: you made a comment about the iran and fast and furious. what is the comparison. >> guest: it is one cover up and complete denial by the administration and even atf saying we didn't release guns and all of the gun dealers yeah, they told us to do multiple sales to straw purchasers. there is a cover up. how high it goes i am not sure. but it sembles the iran contraaffair. >> gretchen: terry chronicles the deil tac in 60 miles of border. good look with the book. >> guest: thank you. >> gretchen: is the president attacking mitt romney because he can't run on his own record? a fair and balanced debate coming up. in egypt secretary of state hillary clinton greeted with shoes and flying tomatoes and memory of monica lenwynske. 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[ male announcer ] ...forbusiness.com. ♪ ha ha! ♪ >> steve: a massive search for two missing iowa cousins expecting to start up today after no new clues surfaced. eight year old and the 10 year old were last seen yesterday afternoon riding bikings. going green costing plenty of green. $59 a gallon on biofuel that it is testing out in the jet. $59 a gallon all because the obama administrationments the military to adopt more eco friendly solutions to petroleum. why spend 4 aaron bolling when you can spend 59. >> arron: is president obama attacking mitt romney's business record because he cant run on his own. >> the president who ran as a inspirational leader, look where we are now with him. it shows he is a small politician and running on small ball politics. >> arron: here to debate it. christian soltice and can democratic political christie setzer. i start with you. we heard stephanie cutter from the obama campaign call mr. romney possibly a felon. >> i say it is a serious moment for mitt romney's campaign. the nominee adhitted he lied to the authorities at the sec . hiding his tax returns and refusing to come clean in the real role in bain capitol. and this is part of a pattern of mitt romney believes he doesn't apply with the same rules to the rest of thes. >> arron: do we know. did mitt romney ever admit he lied to the sec? >> no. when you are the ceo and go on leave of absence within a nine days, there is no time to change all . paperwork. he's very clear he was on a leave of absence and he said it would be a retirement. this is an attempt not to be the candidate of change, but candidate of change the subject. obama doesn't have an answer of how his policiless will change the 41 monthses of unemployment. >> arron: mr. obama wants to point out mitt romney outsourced jobs at his tenure at bain capital. isn't there 500,000 fewer jobs. >> chris: it is true. >> the selection is about the economy . no question that the president and mitt romney have two different visions of the economy including one that mitt romney supports which as i said is one about giving money back to investors and outsourcing jobs and laying off the workers. and the one that the president obama supports is one about giving money back to the middle class and make sure there is fair play. >> arron: is it about the economy or will the obama campaign. hold on let ristin have the last word. >> they want to talk about anything but the economy. look at the polls. third of the voters think it is better and third worse. obama doesn't have a answer for the third that doesn't think it has changed. >> arron: christ yekristin, thank you very much for joining us. >> thank you for having us. >> arron: brand new information on the death of sylvester statone's son. american manufacture not good enough for usa. but they are for russia. happy birthday for jimmie johnson who is 69 years old . ♪ can you hear whaas said. ♪ i fell for the leader of the pack. ♪ [ female announcer ] life is full of little tests, but bounty basic can handle them. in this lab demo, bounty basic is stronger than the leading bargain brand. everyday life. bring it with affordably priced bounty basic. thank you, nana send money to anyone's checking account with chase quickpay. all you need is an email address or mobile number. you're welcome. take a step forward and chase what matters. because vitamin d3 helps bones absorb calcium, caltrate's double the d. it now has more than any other brand to help maximize calcium absorption. so caltrate women can move the world. 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(chanting) >> arron: jeers in reference to the monica lewinsky scandal and protestors threw shoes and water bottles and tomatoes to the motorcade. >> gretchen: you would think they have more trouble than that in counselry. the president's plan has been a total flop. social media trackers said the initiative was mentioned only a few hundred times on facebook despite that president obama has 27 million fans on facebook. wedding planners are not surprised. it is a surfile way to offend guests. >> steve: it was revealed that ralph lauren produced those united states olympic outfits. not in united states of america but in china. ralph is saying. for the 2014 i will make those outfits in the united states of america. great. another super power perhaps is betting us to the punch. >> gretchen: russia had plans in the work to have their olympic uniforms made in the united states for 2014. a lot of people surprised by that. an arch -- former arch enemy many believe to have uniforms made here at home. is that ironic or weird. >> arron: if it is cheaper to do it in china, why wouldn't russia do the same. maybe they don't like the chinese? >> gretchen: but they do. >> arron: they sell them oil and. >> steve: who has the russia did. >> arron: iran is make. >> steve: you made that up. switching gears. son of a hollywood icon found dead and a new mystery surrounds the death. sage stallone was found in his la home on friday dead. >> gretchen: they have finished the autopsy but not releasing the results. joining us now a close friend of the stallone family. >> guest: good morning. >> gretchen: there is a lot of stories that came out. you are here to set the record straight for the family, what do you want to say? >> guest: i was sage's attorney since 1996 and a friend since '95 and i knew him for a long period of time. you know, none of us know exactly what the incident was. there was a facebook posting just 17 hours before we discovered him on friday, and so we don't know what that was. and there was a lot of rumors on the other kind of tabloid journalism where they said there were alcohol bottles. and i have known sage for a long time. he didn't drink i certainly had no personal reference of issues that would have been brought up. thes were cream soda bottles and everyone is quoting police reports, but i don't think the la police department is releasing information . so a lot of things when you have a person like that are just made up. but he was a very hard working dedicated film maker. he had a motion picture film with bob who won the for hurt locker. and we had just done a new contract for his company and he had plans to be married, so there was a lot of positive things on the horizon. but we don't know exactly what happened yet. >> steve: it will be a couple of weeks before the toxology report is available. police are not releasing results at this point. and so when police say they believe it was accidental, you know, some have gone and said accidental overdose but say he was not a drug user or abuser to your knowledge. >> guest: i had no -- i had a long 17-year history and we would go to film festivals and he finished a in palm springs and i would fly places with him . he went to and flew to different . he was just a articulate and sensitive and intelligent guy and not a party animal in any way. >> arron: you don't suspect any sort of depression or suicide but you are also telling us that he died unnatural -- are you suggesting foul play then? >> guest: no, i am not suggesting foul play . the family doesn't know what took place. i suppose the toxiology reports will reveal that. but the measure of the man, he was a good loving person and loved by his friend and a hard-working fellow that loved his family. and not a person that goes to partis and wastes his time. he was doing things. >> gretchen: i know his father sly stallone went on twitter and said how devastated the family was at this lost. >> guest: his father posted a nice memorial on his website. the family is devastated, no parent of course, wants anything like this to happen to their son. especially with a promising life ahead. >> steve: that's why you are up at 3:40 la time to set the record straight. george, thank you. >> guest: thank you. >> gretchen: coming up. small business owners, the president has a new message for you. >> you got a business, you didn't build that, somebody else made that happen. >> gretchen: huh? a business owner who supported the president in 2008 weighing in on that comment. >> arron: a last of its kind. a world war ii sub, about to be lost forever. but not if you help, that's next. ♪ i was younger than today. ♪ pooches and puppies, we are fed up with being fed on. we demand k9 advantix ii. it not only kills fleas and ticks, it repels most ticks before they can attach and snack on us. frontline plus kills but doesn'repel. and a tick that isn't repelled or killed may attach and make a meal of us. so let's put our paws down in protest and raise our barks to rally till we all get k9 advanii. jo us at poochprotest.com. 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[ rodger riney ] at scottrade, we give you commission-free etfs, no-fee iras and more. come see why more investors are saying... i'm with scottrade. ♪ >> steve: the uss clamagore could soon sink to the depths of the ocean if funds are not raise to restore it. after hearing more. we hope you are motivated to donate a piece of american history. here is matthew burr ded which over access the patriot point museum in south carolina. >> thank you very much. she came in at the end of world war twompt it served until 1975 and a cold war warrior. >> steve: she is a guppy. >> she is. that is greater under water propulsion program. to make subs go faster under the water. >> steve: commissioned after world war ii and you feel it could have led to the end of the cold war. >> she was instrumental of developing the technology. without our subfleet there is question of how we would have done in the important battle. >> steve: that is where she is parked now at patriot point how long has she been well. >> since 81. >> steve: so the federal government gave her the lease on her. >> that's right. >> steve: what is the reaction of people who say why don't we do something and restore that? >> they think it is a government responsibility. we don't receive aniitate funds for operations and we have to raise and make it ourselves. there they are surprised when there is not a state endowment for the ships.storically in thed nations and the united states that is the way it has been. >> steve: you are not asking for a federal bailout but it is part of history. it would be great to have people help out. >> we sale t-shirts and tickets to be sound. but it is going to take out side resosources. >> steve: it will be sunk and a reef. >> it will be. but that is part of the reality of running a business and running a museum. we think from our heart but have to act like business people. >> steve: click on the website to help save the uss clamagore. >> come walk the steps of heroes. >> steve: you are lucky to live in south carolina. public school teachers can't make the cut. should taxpayers be forced to pay for private schools it is happening. but is it legal? and small business owners, the has's message for you. >> if you have a business. you didn't would that somebody else made that happen. >> steve: really? a business owner who supported the president in 2008, here next to weigh in on the sounbite. >> steve: extreme weather in texas turning deadly after two soccer pleasure seeking in houston struck by light nin. they are live in cypress creek, texas with the latest. good morning. >> it is 36 hours since the flood waters receded in the neighborhood. can you see the damage. folks pulled out bedding and carpeting and all kinds of material that was damaged by the flood that ravaged the area. cypress creek in northwest houston coming out over its banks and the storm continued with the lightning strike in the soccer field where two people were killed and another person was injured. we are not sure of his condition right now. it is a devastating week of heavy rains and lightning here in houston. >> steve: thank you for the live report in texas. eric and gretch. >> arron: your hundred hours a week didn't get you where you are, take a listen. >> if you have a business you didn't build that somebody else made that happen. the point is when we succeed. we succeed because of individual initiative but we do things together. >> gretchen: so are small business owners given to much credit for what they do. debby somers backed obama in 2008 but now supporting mitt romney. good morning. >> guest: good morning. >> gretchen: that particular piece of sound from the president is most startling to me. as a maul business owner what is your reaction? >> guest: well, there is not any way a small business owner can achieve their dreamm if they don't have the support of the government. we have to have a vibrant economy to be successful. >> arron: you are a small business owner and risk your own capitol special hire people and you don't know what the economy will be like . taxes going forward. what is your reaction when the president said it is not your hard work that made you successful, it is the government? >> guest: that is not true. we go in business to be successful and we worked for somebody else and it wasn't success we know we could do it better. we put in and work 80 hours and we live it and breathe it and sleep it and what we try to do is the best job because we feel that we are the best at what we do. best product at the best prices and what happens, you work a million hours and it is extremely hard. it started four and half years ago and it didn't get better. we just keep working harder and harder and waiting for the economy to change and so that we go back to having a dream when we went in business. i have been in business 24 years. >> gretchen: you supported president obama four years ago, what has changed why are you supporting obama. >> guest: nothing happened. i believed in the promise that the economy would help. we needed help. i have been business 23 years and survived 9/11. i knew what i was going to do. i did it in 18 months . when you have a plan and it was successful the first time. all right. i can do this. and we tried it . there was no way. we have the largest unemployment and one out of the three houses in foreclosure. and you know, it is not a vibrant economy in las vegas. we believed that change was going to happen and we didn't. we have to take it in our own hands again. >> arron: what is your biggest concern. tax out look or health care or obama. what is it? >> guest: it is a combination of all of them it has affected our business. we hope it will change. obama was a business owner and knows what it is like to have a limited checking account and live within your means and try to make the business and at the same time make the business grow and your employees happy. there is a lot of things that you have to do to make a business go from point a to point b. >> gretchen: debby owner of somers furniture. if you are in las vegas check it out. mitt romney president obama's new message to mitt romney. stop whining? the governor joins us next. >> gretchen: what happened in the occupy wall street's newest venture, we'll be right back. ♪ [ barks ] ♪ [ upbeat ] [ barks ] beneful playful life is made with energy-packed wholesome grains... and real beef and egg. to help you put more play in your day. ♪ ♪ [ male announcer ] everyone likes a bit of order in their life. virtual wallet helps you get it. keep track of spending, move money with a slide, and use the calendar. all to see your money how you want. ♪ ♪ [ man ] excuse me miss. 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[ female announcer ] and now, try our new chocolate chip cookie 90 calorie brownie. ♪ atmix of energies.ve the world needs a broader that's why we're supplying natural gas to generate cleaner electricity... that has around 50% fewer co2 emissions than coal. and it's also why, with our partner in brazil, shell is producing ethanol - a biofuel made from renewable sugarcane. >>a minute, mom! let's broaden the world's energy mix. let's go. welcome to hotels.com. summer road trip, huh? as the hotel experts, finding you the perfect place is all we do. this summer, save up to 30%, plus get up to $100 on us. welcome to hotels.com. good morning, everybody. it is july 16th. i hope you had a great weekend. i am gretchen charleson. are you better off than you were four years ago? >> if someone ask you. it is about change. washington feels as broken. >> gretchen: is that the truth. we report. >> arron: obama campaign has a message. >> quit whining. defend whap to bain capital. >> arron: romney is back at this hour. - >> steve: today is the first day of the year when what you earn goes in your pockets and not the governments. we'll break down the startling numbers as "fox and friends" hour two on monday starts now. ♪ >> gretchen: good morning, i hope you had a good weekend. we are joined by eric bowling. >> chris: it is interesting. we have heard from the president himself said there is no apology to mitt romney and mitt romney will be with us 10 minutes from now. and david axel rod said we will not apologize he is a felon. >> gretchen: in politicings, you can say whatever you want and see if it sticks. we'll talk in the meantime if the president believes that people are better four years after he took off or not. here's what he said. >> he will say look at your record and look at the fact that unemployment is at 8.2 percent and unlikely to change and look at how effective the stimulus was. and look at our management of the economy. yes, it was a bad hand you were dealt but you have not made it what you ought to be. that is their argument. >> that is his argument. if i was in his shoes, i would make the same argument. it is still about change. washington feels as broken as it did four years ago. and you know, if you ask me what is the one thing that has frustrated me most is not the hard work. it is not the enormit of the decisions it is not the pace, it is that i haven't been able to change the atmosphere here in washington to reflect the decency and common sense of ordinary people. democrats and republicans and independents who i think just want to see the leadership solve problems. there is enough blame to garound. >> steve: so blame bush? the president said if i was mitt romney shoes i would do what mitt romney is to me right now. >> biggest frustration i haven't had a chance to change the atmosphere in washington. i am not a campaign manager. i would take if i were mitt romney's manager. remember the sound bite with george stephanopolis. if i haven't changed things and it would be a one-time proposition . we are four years later and nothing has changed. those two basically define the last four years was what we have gone. >> steve: right track, and wrong track. over 60 percent of the country say we are on the wrong change. >> gretchen: hope and change was the central argument of the obama campaign when they ran four years ago. whether things have changed may be in the top of the voters. karl rove may think that is the case. >> independent voters drawn to obama in 2008 because he was going to change politics and raise and elvant. this is gutter politicings. >> steve: you have to wonder whether or not if the swing voters. when did he leave bain and see 50 years worth of tax returns. do they care or do they care about jobs. mitt romney will talk about that. he will be live in new hampshire. >> gretchen: we'll tell you about extreme weather in the country. severe storms overnight. southern connecticut hit with strong wind and rain and bringing down trees and pour lines and how fastog. tragedy for soccer players. they went under a tree and that tree struck by lightning and killing two of the men and sending a third to the hospital. i heard what sounded like a bomb going off and i looked to my left. i could see the lightning strike and go all the way down and sperse on the ground. >> lightning just came the three guys flew. >> gretchen: the man who survived is expected to be okay. the man who kidnapped two american tourist in egypt ordering police to stay back or he will kill the hostages. there is a pastor and lisa, they were from boston and lewis is a diabetic. his son and parishoners are concerned that he doesn't get the medical attention he needs. >> we are still in good spirits and praying for him. >> there is no word for it, i can't believe it. this is a man of god. >> gretchen: their captor an egyptian is trying to use the hostages to free his uncle from prison. he is threatening more hostagessecurity breach in london 11 days before the olympic games. airport staffers allowed several people in the country this past month even though their names appear on a terror watch lis. it comes after a sphirm admitted they didn't hire enough security guards. queen of soul would love to be a judge on american idol. this coming days after jennifer lopez and steven tyler would leave the show. franklin's friends say she doesn't fly . that might be an issue when traveling state to state. would she have enough time to get there via bus? >> steve: john madden tages the business everywhere. >> gretchen: you get to keep all of the money you earned. it is hard to spit that one out. all of the days that you worked for. all of the morning went to the government and now you can take your paycheck home. >> chris:>> steve: let's look at the days work to cover the costs. 88 days on average during the calendar takes to pay off the federal government and 40 to federal regulationitate and local spending and so basically 54 percent of the year spent paying off government spending. working for the man. >> we should look for the positive. there is something positive in this. 43 percent of the american is january 1st. and >> steve: they do in >> that number keeps growing. more and more people it is january 1. >> gretchen: here's how it changed over time. yeah. in 2002, it took you 72 days to get to that. working days. 2010 93 and 2012 88. we had a heck of a lot less government spending, it took you shorter time to pay off the taxes. >> steve: gretch, you have bad news. state of the connecticut you work until august ninth to pay off the taxes. where as if you live in tennessee june 12. and the states with no state income tax. you have an earlier government day. you are in new jersey as well. it is one of the highest states in the union. we are working a lot longer. >> chris: we are number one. congratulations you are working for yourself . >> gretchen: the obama campaign has a new message from mitt romney. >> quit whining. deif i understand what happened to bain. >> gretchen: mitt romney here to respond to the stop whining. >> new numbers going wrong. 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>> guest: i think when people accuse you of a crime you have a reason to go after them hard. i am proud of the record i had in my business career and helping to turn around the olympics and as governor of the state of the massachusetts. what does it say about a president whose record is poor all he can do to attack me. it is time we talk about his failure to create jobs and this is a time when the people of america want to know who makes things better. the president's policiless make it harder to find work and have a brighter future. >> gretchen: some people accuse of president of apologizing to nation and he said he will not apologize to you for calling you a possible felon. we will not apologize. mr. romney clapes to be mr. fix it for the economy because of business experience. ands want to know what is his business experience. and so mr. fix it, what would you say back to the president? >> guest: you know, i say to the president. wouldn't it be interesting mr. president. look at your record. look at what you did inly and half and four years. 23 million people are out of work and median income dropped 10 percent in the last four years. mr. president it is about the united states of america. my record is clear to see. i turned around the olympics and business . led a state. got our unemployment rate down to 4.7. i have a solid record and let's look at your record mr. president. the american people know whether things are better now than four years ago. we all know that the answer. he's not been able to do the job he told us he would. >> steve: i know your campaign was on defense last week. but now on the offensive. and you want to draw attention to obama's political pay off versus middle class lay offs. you say, if you are a donor to the obama camp you will do fine. but if you are in the middle class you have to worry about your job. >> guest: there is no question. when billions upon billions are given by the obama administration to the businesses and campaign contractors, that is a real problem particularly at a time when the middle class is suffering in the country. i don't know if you watched over the weekend, the report about families really struggling and those particularly are single parents and hard time making end's meet. it is the tough time for america. if you are a campaign contractor to obama, you stand to get millions to cash in the government. it stinks and i think the administration has to explain how it is to give mon tow campaign contributors. >> gretchen: what about campaign strategy. the obama campaign had a long time to set up an assault on you. even debby wasser-sheltwhere, they focused on you. they hoped for you to be the candidate because they had a long line of assaults ready to go. some people want you to fight back and be on the offensive instead of defense. how do you respond to that? >> guest: the best offense is to look at the president's roar. i think the american people have tired of all of the attacks and misdirected as they are. one after the other attacks are showned to be dishonest and false. and so a campaign based on falsehood and dishonesty does not have lopping legs. at my issue. who can get the american american economy going and get people jobs. that's what the campaign is about. i laid out a number of things. i call my job's recovery plan to get america working again. and the president has one thing going. constant attacks on me . they are dishonest and misdirected and the american people recognize that kind of politics as something in the past. it may work in chicago but not in the united states of america. >> eric: a lot of people saying why don't you release more tax returns. >> this is what he did of his dealt life and he should release tax returns tomorrow. you have to release it and take the hit and make a serious speech. and we had a ridiculous whether or not i took my lead from bain and mow look at the tax returnings. >> eric: some say that is a good way to go on offense, what about it? >> guest: john mccain ran for president and released two years of tax returns. and john kerry's wife who has hundreds of millions and never released. obama campaign and wanting more to make a mountain out of it. we'll put out two years of tax returns and we'll put the most recent out. hundreds of pages of documents and by the way, nonof those tax returns are required by law. what is required by law. financial disclosure was made. if we want to talk about transparency. the real is why has the president used presidential power and executive to keep information from fast and furious program from being explained to the american people. it is an action of his administration. an administration that has shawn a serious departure from the transparency from which they suggested we had. and the american people should call for transparency. >> eric: thank you for the 10 minutes with us. >> guest: thank you, steve. ♪ [ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an exceptionally engineered mercedes-benz for an exceptional price. but hurry, this offer ends july 31st. and you are me if you want it, you just got to believe. weight watchers i believe strength [ jennifer ] confidence beautiful amazing [ emily ] this goes way beyond happiness weight watchers i believe. because it works. 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[ jennifer ] join for $1. weight watchers. believe. because it works. >> schools that fail to stop bullying may be paying up. a new york judge ruled that a 12 year old girl bullied by her peers may be sent to a private school on the taxpayer time. when a school fails to take recently step. it defined her an educational benefit. it is civil light's attorney . research director. she's down in dc. good morning to both of you. >> good morning. >> steve: you read the judge's decision and he agreed that the kid was bullied and the family had to pull the kid out of school and took her to a private school and taxpayers of new york could be on the hook for $40,000, a cost of one year. >> i don't think there was a dispute that the child was subject to bullying, but the question is what the level of bullies and the school knew or did about it did an act against the student. it is a shot across the bow of every school board saying, if you get a report of bullying in your schools and you see something, say something. and the school board didn't do enough and the judge wants to spank them. >> steve: amber, you are worried that if schools don't provide for private education for bullying subjects they may wind on the hook for a lot of dough going forward. >> yes, it is crazy and ridiculous and could set a terrible precedent and put us down a slippery slope. i am sensitive to the plight of the girl and treatment she received and the kids clearly misbehaved and i think the parents should have talked better to the kids. taxpayers should not be on the chain for providing private education when kids are bullied. >> steve: from what i read, the kids were bullying this child for a while and the teacher knew and the partners wanted to talk about it and no communication there it sounds like at the classroom level it went off of the rails. >> the teacher acknowledged that there was testimony by a substitute teacher and parents tried to meet with the school principal she said it was inappropriate and other - time threw them out of her office. we don't want the government to underwrite consequences. a child with autism and learning disability preyed upon and the school did nothing. i might have agreed with amber's ark sessment of the case until three weeks ago when i watch the school bus worker taunted by children. and i was shocked. at some level somebody has to step up and say there are lines of what is good or not acceptable. >> steve: we'll give amber. >> the fact that special education is rife with lawsuits. there are 41 percent of all go to special education . this is upper east side and these are not dumb parents but my fear that bullying can turn in a back door approach. and so i think it is a bad precedent. >> steve: we'll see what goes on in the future. norm and amber thank you for joining us live. >> thank you. >> chris: meanwhile coming up. jobs are coming back only without the benefits. today's news jobs are coming with extra fine print. and hard work is not all it is cracked up to be. the president tells small business owners they owe it to the government for success in business. >> business, you didn't build that. somebody else made that happen. >> chris: we'll find out how donald trump reacts. live after the break. building pass, corporate card, verizon 4g lte phone. the global ready one ? yeah, but you won't need... ♪ hajimemashite. hajimemashite. hajimemashite. you guys like football ? thank you so much. i'm stoked. you stoked ? totally. ... and he says, "under the mattress." souse le matelas. 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>> guest: i think they do care and it is serious talk and not appropriate. you know, mitt romney never mentioned thea house deal. he is a nice man and he doesn't mention that. he constantly goes and talk to obama is a nice man and he will not do that anymore because he found out the facts. i think it is negative and unfair . he's done a great job. and they are trying to make a good man to be bad they are using deceit and lies. they are talking about tax returns. look. you know this. obama, should give his college application and records. you talk about transparency. we'll learn more about obama when we look at college applications than anything should happen. i don't think romney should give anything until oma gives college record and application. >> gretchen: the obama camp is saying things to mitt romney. obama admit to doing cocaine which is against the law. and the fact that he did not release his college transscripts and now he's asking mitt romney to. it seems to be working. i want you to listen to mitt romney on whether or not he will even listen to republicans asking him to release tax returns. >> guest: we'll put out two years tax returns and put out one already and it is hundreds of pages of documents and by the way, none of those tax returns are required by law to put out. but financial disclosure has been made. >> gretchen: isn't it more than just required by law. >> guest: ronald reagan put out one year and he was strongly reprimanded and the problem is, you put them out and they take them as they have with his previous put out and make them look bad. and they will take anything that he puts out and they are complicated and large because unlike other people he did a lot and they make him look bad. i would put them out. but we want to see your college application and record and we want transparency. and i think somebody ought to bring it up. you will see things you will not believe. >> steve: if you were running for president, how many years would you put out. >> guest: couple of years should be satisfactory, eric. you look at many of the presidents that put out more than one or two years. and ronald reagan put out one year . he was under more pressure to put out more. >> gretchen: this is my issue with the whole thing. it seems like all of the topibs we are discussing, the thing that is obama camp generated instead of the opposite . so how if you are advertising mitt romney and you are a supporter of his. how can you advise romney camp to change the dialogue. >> guest: i will go back after you put out your records on college. i would do that very nicely . many of the presidents gave college records. i would love to see his college applications and i would bring that up as a point and you know, what would happen, they would stop asking romney for more tax returns. >> steve: you are right. did you hear the president of the united states take a shop at job creators. this is something you have been doing . listen to the president and we would like your opinion on it mr. trump. of wealthy successful americans agree with me and they want to give it back. if you are successful, you didn't get that on your own. you didn't get there on your own. i am struck by people who think. it must be because i was so smart. there is a lot of smart people out there. it must be that i worked harer anyone anybody else. there is a bunch of hard working people out there. if you have a business. you didn't build that. somebody else made that happen. >> steve: donald trump, you have a business and didn't build that? >> guest: you are getting the real obama. i think things are going to come out. and you are starting to see things now that maybe people didn't see four years ago. it will be interesting. the republicans have a get tougher and they have to get a lot tougher and get down and dirty also. that's what is happening to them. >> eric: one of the other knocks is that mitt romney may or may not have left bain capital in 1989. i spent time on the boards in companies. and you spent a lot of times. is there any question that the man ceo and chairman is away someone running the company. >> guest: it happens all of the time. he went on and ran the olympics and literally did a fantastic job and probably thought he would come back and he never did come back, because you are doing the olympics and wanted to go in service and he did an amazing job . they left his name there and that is fine . they reported they left his name there. but someone else was running the company. there is nothing wrong and it happened before. >> steve: steve jobs took a leave of absence from apple because of health concerns and he did come back. donald trump joins us every monday. thank you very much. >> guest: thank you. >> gretchen: jobs are coming back, but many don't include benefits. varny said it is going to get worse. that's next. >> eric: pastor behind bars for hosting bible studies. but when the occupiers broke the laws and went free. affleck trivia question. saturday night alumni made his broadway debut . playing president george bush. who is he? 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[ male announcer ] ...forbusiness.com. ♪ ha ha! welcome to hotels.com. summer road trip, huh? as the hotel experts, finding you the perfect place is all we do. this summer, save up to 30%, plus get up to $100 on us. welcome to hotels.com. 45 minutes after the top of the hour. a pool deck built on a steep hill side austin, texas collapses in a birthday party sending people down a 40 foot drop. 10 people were hurt but all expected to be okay. jason kidd busted for drunk driving. he was carried out of a hampton's night club. word is he had drank vodka all night. no one was hurt. >> eric: they had to carry him out and put him in the car. welcome back jason. job's report revealing a startling lack of security. 80,000 jobs. 30 percent didn't include benefits. is the use of tempary workers on the rise to avoid may be health care costs for full-time employees. stewart varny said yes, that isy why. >> you are right. uncertainty of the fulture and you don't go out and hire people permanently and hire them for a short term it is a bad indicator of the state of the labor market. it used to be when you had a lot of part-time jobs that was good news. part-time jobs will become full-time. not anymore . 30 percent of the jobs now started will end up full-time yobs that. is a historic low. >> steve: we do the job numbers every friday. and you looked at 80,000 and think that is not a number. a third of them are temporary jobs. >> yes. 25,000, are temporary jobbings. >> eric: are people worried about obama care and hiring people, they will hire the tempary. >> you have grown business. you are looking to the future and you don't know what your health care costs are going to be because obama care, it is a great unknown and don't know the regulatory or tax climate is going to be. are you going to hire a permanent employee and you have to pay them ben 50s and not knowing the future? no, i will hire you for six months or three months and i can't give you ben tits and that is - it tempary empment and that's a terrible thing. in this day and age, you want security . you have no security that doesn't pay benefits and you could be fired any time. this is not good news. the labor market is not healthy >> steve: and explain why the right track or wrong track. >> he's back from vacation. >> you call that vacation? i am jet lagged. >> chris: she will -- he will be completely refreshed. an arizona prosecutor threw a bible study in jail for holding a bible study in his home without a permit. but occupy occupy protestors didn't; is that fair. i'm a marathon runner, in absolute perfect physical condition and i had a heart attack right out of the clear blue... i'm on an aspirin regimen... and i take bayer chewables. 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[ laughs ] gretch it was will farrell and winner from florida. a phoenix pastor and father of five got locked up behind bars for hosting a bible study. >> honestly, i don't understand you know, that something so small got so large like this. >> gretchen: but get this. the same lawyer that prosecuted michael phelman and has to have three years probation and fine. and recently dismissed the occupy occupy protestors that. is there a political agenda of this. joining us is mark from phoenix. is there a double standard. >> guest: our leadership partners are concerned f. you are a christian pastor in phoenix and you break the law you are punished . but if you are a occupy protestor in phoenix, you can get the advantage of a political agenda and having charges dismiss even in the court paperwork, the city prosecutor equates protestors as patriots like sam adams and pal revere. >> gretchen: why didn't the pastor get a perment and he would not be in difficulty. or should you have an argument. he doesn't need a permit to have a bible study in his house. ? >> guest: there are zoning ordinances in place and we need to follow the rule of law. he got the blun end of the rule of law. what happens to the occupy protestors, they get a cozy comfortable end of the agenda that matches the prosecutors. it doesn't serve the community well at all. >> gretchen: this is a quote. it came down to wrone asking proper permitting. if you hold a gathering of people continuously. we have concerns about people exiting the facility properly in case of a fire and that is all it comes down to. a lot of our viewers are thinking of the video of the occupy profestors and the money to have extra police officers and many of them attacked by the protestors, is it a direct comparison or not? >> guest: everyone seeing the big elephant in the room. because the pastor didn't line up to the political agenda of the liberal city prosecutor. the protestors can rack up a $200,000. and pursuit of having the arrest records expunged. it is driven by political agenda and that drives the prosecutorial decisions here in phoenix and smacks was prosecutorial inadequacies and misconduct. >> gretchen: mark spencer, of judicial watch.organd retired police officer thank you for your time. >> guest: thank you. >> gretchen: it was the worst act of terrorism on u.s. soil since september 11th, there is more information on tharcts tack at ford hood. stop whining after being a possible felon. dana purino joins us in the top of the hour looking great in green at the top of the hour. alice the cat is about to explore. the world of new friskies plus. which is friskies plus more. more of the things alice desires. with all theutrition alice requires. it's a world of shiny furs. of sparkly eyes and happy purrs. it's a world unlike any alice has ever seen before. the world of new friskies plus. which is friskies plus more. the wife. hey, babe. got the jetta. i wiped the floor with the guy! not really. i would've been fine with 0% for 36 months, but i demanded 60. no...i didn't do that. it was like taking candy from a baby. you're a grown man. alright, see you at home. 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[ male announcer ] at 0% apr for 60 months, no one needs to know how easy it was to get your new volkswagen. that's the power of german engineering. >> gretchen: good morning, everyone. it's monday, july 16. i hope you're gonna have a why day. thanks for spending part of it with us. i'm gretchen carlson. are you better off today than you were four years ago? the president doesn't think so. >> if somebody asked you, it's still about change. washington feels as broken as it did four years ago. >> gretchen: dana perino is here to respond to that claim. >> steve: the campaign called him a felon and moments ago, right here on fox, mitt romney responded. >> politics, something of the post. it may work in chicago, but it's not going to work across america. >> steve: and romney didn't stop there. we'll tell what you else he said to us. >> eric: not exactly a warm welcome for the secretary of state. why she was greeted with flying tomatoes, shoes and monica lewinsky? what? i kid you n. "fox & friends" starts right now. >> steve: welcome live from new york city on this monday in the summer. ericericeric bolling is in for n kilmeade. >> gretchen: he noticed if we noticed the oos and ahs. if that was me. no, no, i don't think people want to wake up to my singing voice. >> eric: it would be just as good. >> gretchen: maybe to steve. >> steve: i don't know about that. we got a busy final hour and we got dana perino in the on deck circle. we'll talk politics with her after the headlines. >> gretchen: let's start with extreme weather because it pounded parts of the country. many areas going from intense heat to severe storms. southern connecticut, i can testify to this storm, last night, damaging thunderstorms, strong wind, heavy rain knocking down trees and power lines. in houston, texas, tragedy for several soccer players look for shelter from the rain. they hid under a tree. but that tree was hit by lightning and two men were a lled in this storm. third rushed to the hospital. >> i heard what sounded like a bomb go off and i looked to my left and i could see the lightning strike hit the top of the tree, go all the way down and disburse on the ground. >> those three guys were there, the lightning came and hit the tree and they, like, flew. >> gretchen: the man who did survive is expected to be okay. the man who kidnapped two american tourists in egypt ordering police toasty back or he'll kill them. the american hostages, 61-year-old michelle lewis and 39-year-old woman are both from the boston area. they were in egypt on a missionary trip. lewis is a diabetic. his son and parishioners concerned he's not getting the medical attention he needs. >> we are still in good spirits. we're still praying for him. >> there is no word for it. i can't believe this. this is a man of god. >> gretchen: their captor, egyptian, is using them to get his own uncle freed from prison and threatening to take more hostages if his demands are not met. the state department is working with the egyptian government to secure the hostages' freedom. alleged stream of security breaches at heathrow airport raising new safety concerns 11 days before the olympic games start. british newspaper is reporting that errant staffers allowed several people into the country this past month even though their names were on the terror watch list. the number days after a firm handling olympic security admitted they didn't hire enough guards. nba star jason kidd busted for drunk driving after crashing his escalade into a utility pole. it happened in the hamptons on long island. he signed with the new york knicks two days ago. he was carried out of a nightclub moments before the crash after drinking all night novel one was hurt. so the crash did knock out cable tv to several homes. those your headlines. >> steve: all right. dana perino joins us here live. it's interesting because i follow her on twitter and she says -- >> as everyone should. >> steve: she'll be on "fox & friends" 8 a.m july is when people eat all the side dishes before the entree is served in september. >> right. that's what we've been doing for the past month is talking about the little things, the naacp speech and whether romney had gone there and when he got boo'd, that they're like all this is all planned. he talked about that for a few days. now about whether or not he's a felon for a few days. i guess we're going to talk about his tax return for a few days. meanwhile, the main event for most americans across the country won't be until september when they say, okay. what will you do or you do about getting more jobs, more sustainable, long-term, successful futures for my children? that's what i'm going to vote on in november. this is all the side dishes. >> steve: delicious. >> gretchen: what about sometimes the side dishes might give you a stomach ache. can they do irrepairable damage. >> what happens if you eat them before september, it you're already full, so you don't want to eat entree. this metaphor is going well. independent voters in particular are sick of politics, they don't like the negativeity. most of them are on vacation. >> eric: you know what, the side dishes aside, some of these accusations being thrown around and some of the, i don't know, characterizations of mitt romney going around are pretty damning. listen to this. >> he's not going to get an apology. it's interesting, just a few months ago in the republican primary action mitt romney said to his opponents who he was crushing at the time, stop whining. and i think that's a good message for the romney campaign. instead of whining about what the obama campaign is saying, why don't you put the facts out there and let people decide rather than trying to hide them. >> stop whining. if you want to claim bain capitol as your calling card. >> then defend what happened there and what happened to those jobs that went year sea, those jobs that were cut and eliminated the companies that went into bankruptcy. >> eric: calling a guy a felon and he responding and saying he's whining -- >> one of their specialties. they hit you in the nose and then they fade back. like what? we were just raising questions. why are you whining? the campaign whines all the time. people aren't fair to me. you could put up a real obama campaign whining. she's an effective spokesperson, but i actual lea think what they did last week in this felon attack was they made the president look like a bad house detainee instead of the president of the united states. >> steve: we had mitt romney on this program less than an hour ago and he reacted to the attacks. shear what he had to say. >> the president, on the other hand, has one thing going and that is constant attacks on me. they're dishonest, they're misdirected and i think the american people recognize that kind of politics as something of the past. it may work in chicago, but it's not going to work across america. >> steve: there is an item in the associated press out right now that says that one of the reasons the obama campaign is asking for money, they're in a frenzy for money is because they have already spent $100 million largely in attack ads. and they're outspending romney four to one, yet in the polls, they're essentially tied. >> but they would say that romney isn't moving either. so that they are spending on the negative campaigns has helped them keep him down. i think their problem is this, if you are an undecided voter, so there is not many people planning to vote for romney who are going to switch for observe eastbound and vice-versa. but for those who haven't decided yet, but year after year, those are the people who don't like negative attacks or cheap shots. they want bigger picture solution oriented conversation. they're not getting that from the obama campaign and if you are not the president of the united states with a bully pulpit, then you have a harder time getting your message out. you're responding to these attacks rather than able to get on the front page. >> gretchen: i think that's why some people who are supporting mitt romney are frustrated because they want him to be more on the offensive and maybe you answered the question about why he can't always be. i want to move on to this. the president did an interview with cbs and a lot of what he said startled people of the he says ends -- he understands people are no better off than when he took office. listen to this. >> i tell people, this campaign is still about hope. if somebody asks, it's still about change. washington feels as broken as it did four years ago and if you ask me what is the one thing that has frustrated me most over the last four years, it's not the hard work. it's not enormity of the decisions. it's not the pace. it is that i haven't been able to change the atmosphere here in washington to reflect the decency and common sense of ordinary people, democrats, republicans, and independents, who i think just want to see their leadership solve problems and there is enough blame to go around for that. >> gretchen: wasn't that the essential nature of the campaign, hope and change? he was going to transform washington and operate like no other president before him. >> everyone was -- i remember that feeling at the time in the changeover that thinking, if they can do this, if they can bring people together, let's have it. let's go for it. do you remember one thing in particular, i know that he did not actually invite the senate majority leader mitch mcconnell to the white house for the first two years of the presidency when he -- when president obama enjoyed majorities in the house and senate. he didn't do that essential outreach and now we have a situation in our country where we've got the fiscal cliff coming in january. great piece in the "wall street journal" that talks about what the consequence of that could be. and the conversations between the white house examine congress are so limited, even with the senate chairman that are democrat, they're so frustrated that they don't have this part of the process. i will tell you another thing they're mad about, just last thursday, slipped in in the afternoon was a did he say mation of the welfare reform act of 1996. and congress wanted and should have had at least a crack at seeing if they wanted to make similar changes. but president obama, they did it themselves. remember when obama had the campaign slogan for like three weeks, it was called we can't wait? they dropped the slogan because obviously it was nonsense, but continued to do some of the work. so there is the conscious clause issue where the hhs, now you've got this problem. plus i would say the "new york times" story yesterday about the f.d.a. and the investigation of the scientist about leaking if that had been in the bush administration, guarantee that would have been bush, cheney white house investigating the f.d.a. scientist. this story could end up being a bigger problem from them and that's why the confidence in washington has been eroded over the last four years. >> steve: i can't really wait to hear from bill clinton about the welfare program being blowed up. >> it's when he hangs his hat on. >> eric: how about bob beckel this afternoon? >> steve: we'll be talking about that on "the five" with these two. >> talking? we don't talk. we yell. yelling. >> steve: thank you very much. >> gretchen: coming up, member major nidal malik hasan accused of murdering 13 people at fort hood, the president refused to acknowledge muslim extremism. did it have a role in the shooting then? up next, senator john cornyn is here with new information that disputes what the government says. >> eric: a move to put more women on the front lines. is this a good idea? one of those women, a marine captain, says absolutely not. she'll be here live ♪ ♪ proud to and on our own ♪ proud to be homegrown ♪ a familiar face and a name you know ♪ ♪ can you hear it? ♪ fueling the american spirit ♪ no matter when, no matter where ♪ ♪ marathon will take you there ♪ fueling the american spirit c'mon, michael! get in the game! 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[ laughs ] hey! >> steve: major nidal malik hasan is accused of murdering 13 people at fort hood. even though his supervisors were told he expressed extremist views, the president has refused to acknowledge muslim extremism had a role in the shooting. our next guest is calling on the f.b.i. to release its independent report, an unclassified version. >> eric: texas snort john cornyn joins us now. tell us what you expect to hear when that -- when and if that report gets released. >> i believe director did a good thing by asking for this independent assessment of the f.b.i.'s performance in the military's performance when it comes to identifying these potential threats within the ranks of our own military. i think the only solution is to make this public as embarrassing as some of it might be, i think it's important to learn from this and to make sure it never, ever happens again. >> steve: i know you have written a letter to the f.b.i. director saying hey, could you please release something, we only want the unclassified version. we don't want to release any national secrets. you said there could be some embarrassing things in there. like what? >> well, we have some indication that major hasan had given evidence of his jihaddist leanings earlier in his career, but apparently that was not acted on or at least it was looked into, but nothing followed up on. so we need to make sure that if one of our own become radicalized in the united states military, they don't pose a future threat to other service members and their family. so let's see what this says and let's see what we need to do in order to make sure it doesn't happen again. >> eric: is there an indication that the -- i guess it would be the department of justice, i guess put a clamp on that from being released? >> not yet. i'm willing to give them a chance to release it. i have a lot of bones to pick with eric holder's department of justice, but this isn't one of them yet. but at least we need as much as can be made public to be mid public and -- to be made public and then if there are portions to be briefe a classified setting, as well as the department of homeland security and governmental affairs committee, so we can legislate if appropriate to make sure that we're doing everything we can to protect our troops. >> steve: sure. senator, does it bug you as it does a number of people that our president doesn't refer to this as what it is? muslim extremism? >> i agree with joe lieberman, that we should not be engaged in political correctness, particularly when political correctness blinds us to the nature of the threat. i think -- i don't want to do anything to jeopardize the prosecution of major hasan, which is now scheduled to go on in august, but i think we ought to call it what it is, let the chips fall where it may so we can make sure we're taking all necessary steps in order to protect our people. and that's my basic view of it. >> eric: that's a great point, though. so are you calling for this report to be released prior to major hasan's trial or can you ask for it to be released subsequent from whatever decision they end up making? >> well, that's an important point. this is actually not part of the investigation, the prosecution of major hasan. this is an independent review called for by the f.b.i. director to look into their practices and protocols to make sure this sort of thing doesn't happen again. but i want to be careful as a former attorney general, my state, i know the sensitivities of these prosecutions. we don't want to give major hasan and his defense team any excuse whatsoever to avoid justice. >> steve: i know your colleague on the house side, congressman wolf from virginia, he thinks the administration might be trying to stonewall and drag this thing out past the election so it will be interesting to see whether or not you do get an unclassified version. >> won't be the first time. >> steve: no kidding. senator, thank you very much for joining us today from capitol hill. >> thank you very much. >> eric: not exactly a warm welcome for the secretary of state. why hillary clinton was pelted with flying tomato, shoes, examine cries of monica lewinsky. >> steve: monica. monica. then a move to put more people, women, on the front lines. is that a good idea? one of those women, a marine captain, says no way. she's here coming up next ♪ ♪ [ man ] excuse me miss. 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[ female announcer ] and now, try our new chocolate chip cookie 90 calorie brownie. according to ford, the works fuel saver package could literally pay for itself. jim twitchel is this true? yes it's true. how is this possible? proper tire inflation, by using proper grades of oil, your car runs more efficiently, saves gas. you could be doing this right now? yes i could, mike. i'm slowing you down? yes you are. my bad. the works fuel saver package. just $29.95 or less after rebate. only at your ford dealer. so, to sum up, you take care of that, you take care of these, you save a bunch of this. that works. >> eric: quick headlines. search intensifies for two missing cousins from iowa. eight-year-old elizabeth collins and ten-year-old lara cook last seen riding their bikes friday afternoon. nsnbc is no longer microsoft: the tech giant saying the partnership restricted it from doing business with other more successful news organizations. web site will be relaunched next year without microsoft on board. >> gretchen: recently congress has mandated all branches of the military review policies that restrict female members service. for the marine corps, that means integrating women into the be infantry. this summer several volunteers are the first women to train for the infantry and will join their brothers in arms this fall. but not everybody believes this latest step towards equal rights is a good idea, including a female marine officer who has been on the front lines. joining me is captain katie. good morning to you, captain. >> good morning. >> gretchen: so before we talk about what may happen in the future, help me understand what women are allowed to do right now. >> there is numerous support roles that women have right now. there are certain restrictions also and that's what congress is kind of mandating we look into. infantry or artillery or tanks, areas that females have not been allowed to participate in. >> gretchen: to there was this push in the last couple of years to let women do more, to technically be on the so-called front lines. do you agree with it? >> well, there is really no front line anymore. this isn't conventional enemy. females have definitely played a strong role in combat operations in the supporting capacity. my specific concern is opening up infantry for females. >> gretchen: why? >> it definitely is not a -- the cost outweighs the benefits. it's not going to help the individual and it's not going to help the institution. we're a war fighting institution and combat readiness. needs to be at the front and foremost. when we make decisions like this, and i don't think this is -- this change is going to benefit anybody. >> gretchen: why not? >> why not? there is the understanding or misconception outside the marine corps that preventing women from taking on these roles possibly restricts our opportunity for promotion. they're promoted at the same rate. the other question then i present is longevity. we're talking about opening up opportunities for females, but my concern that i point out in my article is that there is gender specific medical concerns that are going to come with opening these fields. i'm not so sure we've really thought about. on the backside of that, there will be a cost associated with these medical conditions. and are we ready to pay the price for that. >> gretchen: i guess of that my question about why you think it's a bad idea, because you yourself -- by all regards, you're a very high achieving woman, not only in life, but in the military. what you point out in this article is that you we want through some of the rigorous training that the men did and what happened to you? >> i faced a lot of weight loss, muscle atrophy. i also developed a disease which rummed in infertility. it's a type of combat environment these days is very strenuous. i was only doing a portion of what our infantry brothers do. physically fit, definitely one of the top in the females for physical fitness, however -- i understand that every female is going to break down at different rates, but our male counterparts are breaking down also. i just think it's an unnecessary risk we could be taking on. >> gretchen: let me understand this, if, in fact, women are going to be on the so-called front line, i know you say they don't really exist anymore, but just for terminology on the front line, will it be their own personal choice to be allowed to try it out, or will they just be commanded to do that even if they don't want to? >> it will be a blanket assignment. so any feel he female who joins the marine corps, private or as a second lieutenant, as an officer, can be told to serve as an infantryman. he will have to serve in that capacity. >> gretchen: all right. captain katie, u.s. marine corps member of the u.s. marine corps who has written an article and i imagine you've taken some heat for it for standing up for what you believe in. but we appreciate you being our guest today. thanks so much. >> thanks for having me. >> gretchen: coming up next, the defense budget is on the chopping block. so is it really a good time for the federal government to be testing out biofuel for the air force at $59? 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[ doctor ] enbrel, the number one biolog medicine prescribed by rheumatologists. >> steve: we're in the middle of the summer and coming up in a couple of weeks on the summer olympics. people are starting to get interested in the events. unfortunately, the olympics have gotten a black eye over the last week when it was revealed ralph lauren, the famous american retailer, is going to be providing all the olympic uniforms and he's making them, that's right, in china. >> gretchen: all right. so now it comes it light that they say -- ralph lauren saysful make them in america. some people say maybe that's too late. what country cue think had already decided to make their uniforms in the united states of america by 2014? it might surprise, mr. boling. >> eric: north korea? that would be surprising. no. apparently russia told us that as early as 2011, they decided the 2014 uniforms will be made in the usa. but that's kind of crazy. i mean, look, first of all, let's take one step back. the u.s. olympic, ralph lauren going to china for the u.s. uniforms isn't that crazy. it's not taxpayer money that's being used. the business climate here in america is terrible. so why not go to a place where it's cheaper and easier? there is -- >> steve: because it's symbolic. no games are more symbolic than the olympic games. i think the american athletes, it's not like they're train not guiltyhina. >> gretchen: people are look at the bigger picture. that thank is what i was saying last friday, it bugged me that nobody is talking about the bigger picture about why we're making this stuff in china. >> eric: 38% corporate tax rate here. in china, it's 25%. the unions here dominate the apparel industry. minimum wage laws are substantially different here than in china. so it's got to be cheap tore produce it there. >> steve: absolutely. at the end of the day, it's because we want things cheap. i'd love it have ralph lauren stuff cheap. >> gretchen: it's still not cheap. 700 bucks for that blazer. >> steve: i completely understand. >> gretchen: i understand the general feeling it's cheap, but we should be looking at the bigger picture of why we're outsourcing jobs and everything else to china. to me, that's the story. >> eric: the only issue that i have with the ralph lauren is the insignia is a lot bigger than the american flag. >> steve: speak of outsourcing, the headline on dredge today is that the united states of america has outsourced our space program to russia. in the meantime, we got your headlines. overnight, police have arrested a suspect involved in the disappearance of two missouri services after cops were led to two female bodies in a field. it's still not confirmed if they are the bodies of 19-year-old brittany and her 22-year-old sister, ashley key. the two were reported missing on friday. their family says there was blood in the home when they vanished. >> eric: tough story. hillary clinton heckled with chants of monica, monica, as she visits the newly reopened u.s. consulate if egypt. listen. >> monica! monica! >> eric: she was like monica whom? the jeers are a reference to the monica lewinsky scandal when husband was present. they threw shoes, tomatoes at her motorcade. >> gretchen: talk about an amazing feat. >> the foul ball. >> he's not just stealing tons of base. only caught once this year. that's quite a catch. >> gretchen: fans at the game, well, that fan, how does he catch the ball with his leg or did he put it will? anyway, he ended -- it ended up between his legs. he pulled it off without dropping his soda and hot dog. >> steve: welcome back to sports center. >> gretchen: three people have been abducted in egypt during a missionary trip. among them, two americans, including a 61-year-old boston man. this gentleman here, reverend michelle lewis. his family fears for his safety and his health since he is a diabetic and had to leave his medication behind. joining us is his son, john louis. is it louis or lewis? >> lewis. john louis in french. >> gretchen: i wasn't sure. so obviously you're very concerned about the safety and well-being of your father right now. >> definitely. we are concerned because again, we're human, we're concerned. we still have human passion, human feelings, but spiritually, we've been telling all the news outlets, spiritually we are resolved in our faith. we are in good spirits. we know that god is at work and all things, whether good or bad. >> steve: sure. and you're appearing today because you want to make sure that the guy who took your loved one at gun point understands that your father has -- he needs insulin. he's a diabetic. what do you know about -- what is the government telling you about the egyptian bed bedouin who has taken your father hostage? apparently he's saying, i'll let them out as soon as the government springs my uncle. right? >> the same news i'm reading, all i can comment in regards to that is letting you know that they are in close contact with us and they're doing everything in their power to negotiate on our behalf and on the behalf of the other family on a safe release. >> steve: sir, does it sound as if they will release the uncle of that guy so that you can have your family back intact? >> again, i cannot comment in regards to that because no information was given to me in regards to that and i want to be very, very, very careful and not misleading anybody or putting anything -- putting this case in a situation where it might impede on the safe release. >> eric: we have a quote from the state department that says, we are in close contact with the egyptian authorities who are doing everything they can o bring about their safe release. we will provide consequence similar assistance as needed. i guess they're doing what they can do, right? >> they're doing what they can do and i think it's eric and steve, correct? >> eric: that's right. >> they're doing everything they can do and the family is appreciative of everything they can do. actually this morning i was contacted by the office of john kerry, the office of scott brown has been working diligently on the case and they explained that everything in their power they're doing to make sure that the safe release of both my father, sister alphonse and also the tour guide is done. >> steve: absolutely. reverend, we thank you very much. we know you're in the prayer business, but you got a lot of prayers from a lot of people all around the world. >> we appreciate everything. we appreciate everything and i thank everyone who is listening, everybody that's being supportive, everybody praying and we are asking for more prayer and we believe in due time, we will have good news for you. >> gretchen: all right. reverend jean lewis, thank you for your time this morning. >> thank you. >> steve: 19 minutes before the top of the hour. next up, the defense budget is on the chopping block. so is it really a good time for the federal government to be testing out biofuel for the air force at $59 a gallon as opposed to 4 bucks? 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[ all ] i'm with scottrade. >> gretchen: quick headlines. going green now costing plenty of green. the u.s. air force spending $59 a gallon on biofuel it's testing. all of this because the obama administration wants the military to switch over from petroleum, which costs $4 a gallon. it's been a month since president obama asked couples to request campaign donations in lieu of wedding gifts. now we're learning that plan has been a bust. social networking trackers say the initiative is rarely mentioned on twitter and facebook despite the president's large internet following. steve? >> steve: thanks. president obama in his campaign staff are working overtime to try to paint mitt romney as an expert outsourcer, claiming he shipped jobs overseas when he headed up bain capital. there might be some serious problems with their facts. fox news legal analyst and attorney peter johnson, jr. has reviewed mitt romney's record at bain capital and is here, he put on his lawyer hat to set the record straight. >> i approached this as if i had been retained by corporate client to review some records and make a determination and recommendation about what i had seen. so i spent a good part of saturday and yesterday looking at the available records on-line, the available news reports with regard to mitt romney's involvement with bain capital and whether he left in early 1999 to go to the salt lake olympics. my review of the documents shows that yes, he did leave in 1999 and no, the sec documents do not, do not confirm the allegations made by stephanie cutter, the president's top aide, that somehow mitt romney committed a felony. so let's look at so of the conclusions. the evidence shows romney joined the bailout in 1999 full time. that's been determined by a massachusetts state committee as well. as an absentee owner, he continued to make the necessary sec filings, which i looked at on-line as well. in fact, harvey pit, the former sec chairman, has indicated that he was obligated by law to make those filings whether or not he was operationally running those companies or not. the truth is, there has been no evidence provided at all by anyone that mitt romney was actually running or making specific decisions about bain capital for those three years from 1999 to 2000. in fact, there has been determination that he was working six days a week, 12 hours a day helping save the olympics from a billion dollars deficit. mitt romney is not listed in 2000 and 2001 bain offering a documents as an investment manager. that's important. they list 20 other people, part of bain who are actually responsible for the investments that were being made. his name is not included, although his name is on another 100 different documents that were filed with the sec. and the bipartisan massachusetts ballot law ruled after hearings that mitt romney was engaged full time at the olympics from '99 and 2002. now, the other point that's not being reported really in some of the main stream media is three organizations at least, including fact check.org, "washington post," fact checker and fortune magazine have all cleared mitt romney on these obama allegations about bain. in fact, glenn kesler of the "washington post" fact checker in giving three pinocchios to this allegation said, quote, the obama campaign is blowing smoke here. the wave of evidence suggests romney didn't end active management of bain in 1999. so i think it's important to separate the facts from the fiction. this is an intense political season. there will be charges made on beth sides. but the heart of it seems to be was mitt romney actually involved with bain and making decisions about allegations of outsourcing during that period. if he wasn't running the company, even though he owned it, how can he be responsible? there seems to be no data or evidence that shows that he was operationally in control of bain. >> steve: so would it be safe to say if folks see president obama say he's an outsourcer in chief or anything like that that, is a flat out lie? >> based on the fact that the evidence shows that he was not running the company at that time and, in fact, totally engaged in the olympic effort, there doesn't seem to be any evidence. i was looking for facts. there are no facts. we'll see what develops, but at this point, everyone at bain said no, mitt romney was not running the company. we were. >> steve: there you go. folks, now you know the rest of the story. thank you, peter. good job. you worked all weekend on that. good report. >> thank you. >> steve: straight ahead, the president says his job is to tell a story. >> the nature of this office is also to tell a story to the american people. >> steve: is the president right? our next guest who voted for president obama back in 2008 says no. meanwhile, say yes to martha mccallum who is back from the cape and a few days up north for her program today. >> good morning, steve. wood to see you. so really you got both sides that are coming out swinging this morning. the campaign is truly heating up this july. mitt romney says that the president should hold his own record up to scrutiny. president obama says to business owners, you didn't build that. you didn't get there on your own. that statement has some up in arms this morning. we'll talk about that with a great group. brit hume, steve hayes, rich lowery is here. we'll get their take on this stage of the campaign and hillary clinton gets tomatoes thrown at her in egypt. bill and i will joan you with all that and more coming up at the top of the hour. we'll see you then not in this economy. we also have zero free time, and my dad moving in. so we went to fidelity. we looked at our family's goals and some ways to help us get there. they helped me fix my economy, the one in my house. now they're managing my investments for me. and with fidelity, getting back on track was easier than i thought. call or come in today to take control of your personal economy. get one-on-one help from america's retirement leader. >> eric: president obama admitting his biggest failure as a commander in chief. >> the mistake of my first couple of years was thinking that this job was just about getting the policy right. but the nature of this office is also to tell a story to the american people. >> eric: our next guest supported the president in 2008. so why does he say that story would actual will he be frightening? michael goodwin is a fox news contributor. the president mentions the policy, but he also mentions the story. which one is the mistake? >> look, i think what the president is saying essentially is if only i explained my policies better, everybody would agree with them. and if you scratch that, essentially what he's saying is, it's ignorance. the american people are ignorant of how great my policies are. my argument is, it's not about explaining the policies. it's that people understand the policies well enough. they don't like them. in madison avenue terms there is an old phrase that it's not about the advertising for the dog food. the dog food is not selling because the dogs don't like it. well, i think voters know what the president is selling. they don't like it. so if you look at obamacare, if you look at the deficit, the debt, you look at the immigration policies, you look at the voter i.d. laws, all these are wildly unpopular the way he's going about it. all the popularity is on the other side. so for the president to say that it's just because people don't understand, no, i think it's actually he doesn't understand. >> eric: which is the biggest one? you mentioned a few things. obamacare, his immigration policy, some of his tax structures. which is the one that people don't like the most or don't understand well enough the most? >> i think obamacare sort of it is both the biggest and in many ways, the symbol for a lot of the others. fundamentally, this is about the economy. i think to the extent that obamacare hurts hiring, drives up medical cost, causeses all kinds of dislocations in terms of people's insurance, i think that's the big one. but i think right there, sort of the big elephant in the room, if you will, is the deficit, the debt, the sense that america has lost its way in the fiscal weeds and the president has no plan. he continues to talk about new programs, new ideas, anybody who advances any way to reform the entitlement, to kind of rein in spending, he's against it. >> eric: what should mitt romney do to bring the discussion, the debate back to what you're saying? >> i think there is no silver bullet for mitt romney. obviously he's got to do a better job of explaining himself. i think he needs more energy. he needs better surrogates. fundamentally, the president is going to find one excuse after another not to talk about his own record. he can not talk about obamacare. it will sink him. he can't talk about the economy. it will sink him. so he talks about mitt romney's history. >> gretchen: thank you, sir. more "fox & friends" coming up i brought your stuff. you don't have to do this. yes i do. i want you to keep this. it'd be weird. take care. you too. 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