Transcripts For FOXNEWSW Happening Now 20111130

than 400 points throughout the day today on fox news. nice to start with a little green on the screen you know? jon: the dow tickling 12,000. jenna: that is not bad. we'll keep it there where we can and when we can to show you what is going on in the markets today. it is one of the biggest gains since august. we're glad you're with us everybody. i'm jenna lee. jon: your 401(k)s are smiling. i'm jon scott. "happening now", surging newt beginning rich challenges mitt romney for frontrunner stat news in the gop presidential race. the former house speaker soaring to first place in polls in key primary states like south carolina and florida. for gingrich the challenge is staying on top. as "washington times" columnist charlie hurt says quote in the round-robin primary, all you have to do is stand in place long enough and you take your turn as the frontrunner. only thing primary voters agree on for any length of time they don't want to nominate mr. romney. other than deep antipathy with president obama, the discomfort with mr. obama is the enly enduring thing with the 2012 primary process. jenna: mitt romney is hitting back. the former massachusetts governor painting gingrich as lifelong washington insider in an interview with "special report"'s bret baier. >> i think to get president obama out of office you will have to bring something to the race that is different than what he brings. he is a lifelong politician. you have to have the credibility understanding how the economy works and i do. that is one reason i'm this race. jon: charlie hurt, the columnist for "the washington times" who wrote that piece we just quoted is with us now. is it just a two-man race now? is it romney against the former speaker? >> i think every day, every minute it is looking more and more like a two move man race. obviously, you know, it is too early to say. you know, that it is completely over. iowa has a long history and new hampshire both have a long history of sort of delivering up surprises. i still think it is possible you could see a rick santorum doing much better than anyone expected out of iowa. of course if mitt romney doesn't clean up in new hampshire there will be another surprise there. yeah, we've sort of been through every single candidate on the stage. i think we're now down to, you know, we're down to the last couple of guys standing. jon: kind of interesting though what's happened. i mean newt gingrich famously said in just about every debate that he doesn't want to attack his fellow republicans and yet he has attacked mitt romney. mitt romney who has not really said anything about it but has tried to avoid going after his fellow republicans is clearly going after newt gingrich right now. why? >> well, i think mitt romney is getting nervous right now because we're getting much closer to iowa, much closer to new hampshire and he realizes that he has never been able to get way up there into the polls where he needs to be in order to sort of maintain this frontrunner status. so i think he is getting nervous and that's why we're seeing him sort of go after some people. newt gingrich's strategy of remaining constant. he is kind of the tortoise in this race. he has been around forever. people know him. to sort of go through these debates just attacking the press i think was a very smart strategy because you don't want to alienate the supporters of the people on stage by attacking the people on stage. i think that is benefited him now where that we've seen some of these other people on stage sort of fallen by the wayside that they were comfortable going to newt gingrich and i think as we watch the cain campaign that looks like the sort of the last vestiges of the cain campaign, i think we're going to see more people going to gingrich because those people that support cain i don't think are going to end up going to romney. jon: maybe we see some of that reflected in this poll out of south carolina. when you take a look at the numbers it is an astounding development for newt gingrich. he has 38% of the vote in south carolina, one of the early primary states again, versus 15% i believe the number is for mitt romney. this just out. >> yeah. those numbers are just astonishing. you know, what it tells us is, if newt gingrich lines up a couple of strong wins early, including south carolina, which is a very, very important state in the republican primary, you have a lot of christian, christian conservative voters in south carolina and so the, however south carolina goes is the way a huge block of the republican party goes. gingrich could really wrap this thing up as amazing to sort of think of the, you know, the voters so much want to kick washington upside down and to have somebody who has been around washington for so long has been a part of this town for decades literally, come in and pick up the mantle of change and reform, it is a pretty amazing development to think of. jon: scott rasmussen's, rasmussen's report is out a new poll how gingrich stacks up against the current. president bush: we'll have that for our viewersers next hour. charlie hurt thank you. >> thanks, jon. jenna: now to another developing story in the gop race for the white house. we're awaiting herman cain at a rally in dayton, ohio, as his campaign manager insists there is no way he will drop out of the race anytime soon despite the latest claims from an atlanta woman that she had a 13 plus year affair with the republican presidential hopeful. cain is reassessing his campaign strategy. we should find out what that means in this rally or at this rally. chief political correspondent carl cameron has been all over the story. he joins us live from washington. carl, cain said he would reassess his campaign. what did you read read into that? >> reporter: he is taking a look at things. what the campaign staff and mr. cain both said they did similar sort of assessments of the state of play after the allegations emerged of sexual harassment charges back in the '90s against him. this morning mr. cain has been already on the campaign trail in westchester, ohio. a fairly good-sized crowd. he was emphatic and he was defiant. he seemed quite determined to stay in the race. he told reporters afterwards that he already experienced a groundswell of support. he didn't make any mention of ginger white's allegations during his remarks but seemed to suggest there is wide conspiracy against him, something he said for some time now. >> they are attacking my character, my reputation, and my name in order to try and bring me down. but you see, i don't believe that america is going to let that happen. i happen to believe that we the people are still in charge of this country. >> reporter: more than a couple times in those remarking cain said he is running for president and gave a variety of explanation as to why. the cain train signaling it will roll on. last night the perhaps the best signal of that they paid the $10,000 filing fee to take part in the nevada caucuses which don't happen until february. as one aide said you don't put down 10 grand if you're not going to be running then. jenna: interesting point that is cain's side of the story or at least what he is doing today. what about the woman accusing him of this affair, ginger white? anymore word from her? >> reporter: she did a live interview on one of the morning shows and described her affair with casual, on again, off again thing. it included gifts and money, quote, consistently over the last twooof 1/2 years. produced new phone records suggests that indicate she and cain were texting right up until only a few days ago. she said it has been hard on her family. she can't imagine why anybody would do this. at one point described taking plane trips with mr. cain to las vegas to see the mike tyson-holyfield fight. she went at some length. continues to outline her story but it is very clear from mr. cain's remarks that his first event today and schedule in iowa for the rest of the day he is soldiering forth campaigning as running for president. any assessment that suggests he is not going seems to belie what he is doing on the trail. jenna: interesting, carl. we'll hear more from herman cain today. carl, thank you very much. herman cain will talk to neil cavuto today. it will be his first live interview since the latest controversy broke. tune into you're world for "your world" at 4:00 p.m. for the interview. jon: information is crossing our international desk. great britain is withdrawing its embassy staff to iran and ordering all iranian diplomats out of the u.k. within 48 hours. this follows attacks on the british embassy and a residential compound in tehran. britain's foreign secretary saying france and germany are likely to pull their own diplomatic core out of iran as well. scenes of mobs tearing down british flags and tearing up embassy ground reminiscent of the iran hostage crisis back in 1979. jenna: we'll talk a little bit about pakistan now. pakistan's military with footage showing what they say is the aftermath of that nato strike that killed 24 pakistani soldiers. differing versions of saturday's incident are emerging at this time, all sides that the troops were killed by attacks on two posts by nato aircraft. there is no denying that. that conference was upcoming, jon. jon: there is some new information in the search for missing florida mom michelle parker. an emergency custody hearing today for her 3-year-old twins. they are now in custody of the state. the children were taken yesterday from the home of parker's ex-fiance, daily smith, jr.. he is said to be the only suspect in her disappearance. phil keating live in miami with more on this case. the state has the kids now, is that, true, phil? >> reporter: the 3 1/2-year-old kids disappeared her mom disappeared two weeks from tomorrow. daily smith has been. shortly after that that's when they named him the prime suspect. the prime suspect no longer has custody of the kids at this moment. this 10:30 a.m. custody hearing has yet to wrap up. as soon as we know the results we'll let you know. but the family of michelle parker, they're hoping to get custody. as for smith he has lawyered up and yesterday his attorney said him being a suspect makes no sense. >> the children were there so in front of your children, you kill their mother, you dispose of their body, of her body where nobody can find it. there is no marks, no defensive wounds, no scrapes, no blood, nothing suggesting a struggle or a death. >> reporter: after about 10 days finally, within the past couple of days the parker family has now spoken basically against the ex-fiance, urging him to divulge anybody he may know as the prime suspect. they certainly field that he may be involved here and they are definitely at odds. but he wants to get texas equusearch led by tim miller who searched for so many missing children and missing adults around the nation. they are prepared to come into the orlando metro area as of this afternoon and begin a full-scale search. but that will take the blessing of the orlando police department. unclear that is going to happen yet. jon: phil keating live in miami where the mystery continues. thanks, phil. jenna: brand new information on the sex abuse scandal rocking syracuse university. when police first learned of the allegations against assistant basketball coach bernie fine and why they didn't arrest him then. jon: also the dow getting a big boost. up more than 413 points right now as central banks around the world take action to keep the dollars and the other currency flowing. will it stick though after friday's big monthly unemployment report? we'll look ahead at that next. jenna: a lot like 2008, doesn't it? the battle over birth control front and center at a catholic law school. what the students are doing now and why next. ♪ . are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. urney across america, i've learned that when you ask someone in texas if they want "big" savings on car insurance, it's a bit like asking if they want a big hat... ...'scuse me... ...or a big steak... ...or big hair... i think we have our answer. geico. fifteen minutes could save you fifteen percent or more on car insurance. jenna: well are employers starting to feel more comfortable about the economy, maybe considering hiring sometime? we hope so, right? we'll get an idea on friday about what is going on with the job market when the labor department releases that crucial monthly jobs report. the national unemployment rate you're seeing on your screen is still hovering at 9%. there are bits of good news out there. we're getting some of that today. the employee tracking firm, adp, the firm that prints your paychecks, a wide majority of them in your country show employers are adding job. robert gray from the fox business network. what is going on from this report from adp? they say jobs are being added but where? where are those jobs being added? >> reporter: many more were added in the month of november than economists anticipated. 600,000 jobs added according to adp. they do the survey from 600,000 businesses. look at your paycheck or your stub these days as many are electronically deposited and probably likely has adp on it. 130,000 was the estimate. october november revised higher by 20,000 to 130,000. still small numbers considering the size of the economy. you have to like the trend. manufacturing and construction seeing a bump of 28,000. if you want to know the size of the companies we talk about all the time, small businesses creating jobs. take a look within this report. the large companies, we're talking about 499 employees or more, just added about 12,000 jobs. when you look at the medium size companies, 50 to 499 employees, it is 84,000. smallest companies, 50 people or less, jenna, 110,000 jobs added. that is the biggest jump in five years. jenna: you point out. that's where they say the job growth is when it comes to adding jobs to the economy and small businesses. what about the other report we get out before the jobs report? talks about planned layoffs. any story there as far as what it is looking like in the job market? >> reporter: still a mixed picture, jenna. the month of november actually better than october. fewer announced layoffs from challenger gray, and christmas, the outplacement firm. down .7 of 1% from october. down 13% year-over-year. the big story here that year to date layoffs already announced more this year than last year. just 11 months. the big story here the government accounting for about a third of the cuts. a lot of that coming from the military, jenna. as we begin to wind down some of the overseas military actions here you expect to see more of that. as the deficit super-committee failed to come to a resolution, this automatic spending cuts will start to hit the government as well. that is brought out in this report. they say they're concerned about that and financial services as well. 56,000 jobs lost there this year. that is up 162% from a year ago. you have the government, financial services. retail is the third worst hit so far this year. jenna: interesting. you mentioned veterans. veteran unemployment above 12%. something we'll be watching. robert, always nice to see you. >> reporter: likewise. jon: well, months after receiving the medal of honor, the highest award for valor on the battlefield, dakota meyer is a national hero, a recipient of the congressional medal of honor while serving in the marine corps. now he is suing a defense contractor. we'll tell you why and what the pentagon has to say in a live report. also for years his family thought he might be one of the victims of serial killer john wayne gacy. now, decades later, new dna testing helped uncover the truth. forensic pathologist michael baden joins us live next. [ male announcer ] you wouldn't swim in a pool with no water. or visit a museum without art. then why have a medicare health plan that's missing the coverage you need? call now to learn about aarp medicarecomplete insured through unitedhealthcare. it's the complete package -- that may include hospital, doctor visits and prescription drugs in one plan -- often for no more than what you currently pay for original medicare. don't miss out. call unitedhealthcare now to get dependable coverage from a leader in medicare advantage plans. get benefits like an annual physical, preventive screenings and immunizations for a zero dollar copay, vision and hearing benefits and more. and some plans have zero monthly premiums. with the cost of many things going up, aarp medicarecomplete is a smart choice. is your health coverage missing something? call now and get the complete package with aarp medicarecomplete insured through unitedhealthcare. and don't pay more. just get more. the annual enrollment period has changed to october 15th through december 7th. so call unitedhealthcare now. jon: there's controversy swirling now around corporal dakota meyers u.s. marine and recently the recipient of the nation's highest award for valor after he saved three dozen people during a six-hour ambush in afghanistan. now he is suing a defense contractor he blasted for selling equipment to pakistan. meyer claiming the defense contractor ridiculed his medal of honor calling him mentally unstable, suggesting he had a drinking problem and even cost him his job. jennifer griffin is live at the pentagon with more on this. so why did dakota meyer feel like he needed to bring a lawsuit against his former employer? >> reporter: jon, the defamation suit was brought in texas and dakota meyer says his former employer, bae systems, a defense contractor, essentially defamed him and told another employer that he was not fit, fit to be employed, suggesting that he had, as you mentioned, some sort of mental instability as a result of his service in the military and a drinking problem. the tension with his former employer, bae, erupted over a string of e-mails that meyer sent to his supervisors at bae when he found out that the contractor was selling thermal optic sites to the pakistani military. here is one of the e-mails from meyer to is employer. quote. we are taking the best gear, the best technology on the market to date and giving it to guys known to stab us in the back. these are the same people killing our guys. bae and meyer parted ways in the spring. meyer in fact resigned from that job and then bae supposedly did not recommend him when he tried to get another job with a california contractor. jon: what is bae saying about all this? >> reporter: well they of course realize this is a big problem for the company in terms of, you know, a public relations disaster. they are, they are calling dakota meyer a hero. they're wishing him well but this is what the spokesman said in response to the allegations of selling weapons to pakistan. quote, the u.s. department of state, not a -- bae systems makes the decision what defense-related products can be exported. the state department spokesman mark toner was asked about whether these thermal optic sites had been, sights had been sold to pakistan. here is what he said yesterday. >> i'm aware in august we approved or did approve a marketing license that allowed bae to temporarily export up to 20 thermal imaging rifle scopes to pakistan but that was for sales demonstration and none of those scopes were sold. >> reporter: military officials who have i have spoken to say they are not going to comment on this case because dakota meyer is no longer on active duty service but privately they are saying dakota meyer is the type of guy who sees the world in black and white. when he sees something that's wrong, he stands up for it. that is what pushed him to the heroic acts back in pakistan. he went against military orders and went back into the five to save those 36 guys. that is the kind of guy dakota meyer is. doesn't necessarily mean he is the type of guy who follows orders, i met him at dinner a couple weeks ago i guess. he struck me as a pretty blunt, straight shooting guy. jennifer griffin. thank you. jenna: moving onto a different story now. we have new fallout in the syracuse university sex abuse scandal. allegations against assistant basketball coach bernie fine dating back to 2002. syracuse police saying at the time they were unable to make an arrest. we'll talk a little more about this with rick folbaum. rick what do we know? >> reporter: full disclosure off the top i'm a syracuse grad. on over the weekend bernie fine was fired after secretly recorded audiotape seemed to show his wife was aware he was asexually abusing young boys. syracuse police seem to have dropped ball when a detective came request claims in 2002 and was told statute of limitations had expired meaning the police could not investigate. that the claims took place too long ago. police say, all sex abuse claims no longer after the fact will be documented moving forward. after last night's basketball game long time hall of fame coach jim boeheim spoke about the scandal for the first time. he was asked if he would be fired the way joe paterno was at penn state. take a listen. >> i have been here at 36 years i never worried about anything. i don't worry. i do my job. when the investigation is done, we will find out what happened on my watch. we don't know what's happened on my watch. right now. >> reporter: the university is standing behind boehim but victim rights groups are calling on boehim to either be fired or to step down voluntarily. meantime fine continues to deny all the allegations, jenna. the u.s. attorney's office and u.s. secret service have taken the lead in the investigation. back to you. jenna: interesting development there. we'll continue to watch this story, rick, thank you. jon: a mystery solved after three decades. family members finally learn if their missing loved one was a victim of america's most notorious cereal killers. dr. -- serial killers. dr. michael baden on the dna break through that helped crack this case. occupy no more. the latest big city where cops successfully remove "occupy wall street" protesters. jon: some developing stories we're keeping an eye on here in the newsroom and in our control room as well. a new simulation showing the nuclear crisis sparked by tsunami in japan mighting worse than originally thought. shows radioactive debris from the melted fuel rods within a foot of breaching the steel barrier. the feds now looking for ways to share information among airlines, airports and air traffic controllers. all part of an effort to prevent long delays on the tarmac. the blackeyed peas and kermit the frog gearing up for the national christmas tree-lighting ceremony when president obama and his family will light the tree. jenna: my money on kermit the frog upstaging the blackeyed peas. jon: i'm with you there. jenna: battle over birth control at a catholic law school is at center stage. students at fordham law school in new york city, not too far from our head quarters in fact are setting up their own birth control clinic off campus. this a latest showdown at the institution that will not fill birth control prescriptions at its health clinic. shan noon bream live in washington. a little background. what sparked the dispute. >> reporter: they're confused about fordham's position whether or not the student health insurance policy covers contraception. here is what the university booklet states. contraception services benefit the insurer is required by law to offer this coverage and pay the coveraged percentage of the coverage charges for contraceptive drugs and devices. student report when they try to obtain contraception or get a prescription they were turned away and the university isn't being transparent what their policy really is. brigitte dunlap is one of the organizers of the off campus clinic. >> at this point all we want is notice. we really want clear documentation on the website about insurance before you show up at a health center expecting to have regular medical care. >> reporter: it is her position that contraception is part of basic women's health care. they will keep holding clinics as long as they have to, jenna,. jenna: any response from the university? >>. >> reporter: university firms acknowledge the website description of the plan may not be as clear but the actual policy explicit. fordham communication director says this. we he had dead the web copy to be more specific. we have a catholic university and do follow church teachings on birth control among other issues. we don't believe that stance is a surprise to our students. you may remember a few weeks back that 18 catholic universities, fordham, wasn't one of them, sent the obama administration a letter expressing concern that the new health care law is muddying the waters on this issue. if they're not clearly allowed to choose not to cover contraception they may drop insurance coverage for students all together. jenna? jenna: interesting story. we'll continue to watch developments on that, jenna. thank you so much. jon: there are brand new developments to tell you about in the case of one of the nation's most notorious serial killers. as the family of young man named william george bundy who disappeared more than 30 years ago now knows that their brother was one of the formerly unidentified victim of john wayne gacy. the body was exhumed for a new round of dna testing. gacy was executed in 1994. he was convicted of murdering 33 young men back in the 1970s. he buried most of the victims in the crawl space beneath his home. that is gacy dressed up as a clown. it is one of the means that he used to lure his victims. joining us now, dr. michael baden, forensic pathologist and a fooks news contributor. this is a fascinating story. there are at least eight victims that police didn't know, still don't know who they were. this young man, bundy, was one of the eight. >> right. what happened in 1970s the best way to identify decomposed bodies, no fingerprints, no identification by visual was by dental identification and 25 of those 33 dead bodies were identified that way. eight of them were buried as unknowns, john does. and they tried dna. when dna came along that should eliminate that kind of uncertainty. in 1994 they tried dn. and didn't get a good result. this year they tried again because some of the families were still pressing for their unknown person. they have gotten a hit so far on this young man. they're still doing other tests. jon: this guy, william george bundy, 19 years old when he walked out of the house in 1976 to go to a party never was heard from again. the strange twist in this case is that his depth activity had retired and when he retired he destroyed all of his old dental records. does that kind of thing happen a lot? >> it does happen in general. but it also happens with these children because these were all sexually attacked kids that were all young boys and men, many of whom had been throw away, could have been throw aways. so the family didn't know who the dentist was. i think, jon, the exciting thing about this it shows to the public how dna can identify people thousands of people were buried as unknowns before dna came in 1990s. i'm sure there will be more families trying to find unknown people using dna today. jon: yeah, obviously this young man, bundy was not a throw-away. his family very concerned about him. >> right. jon: they didn't have the dental records to prove who he was. they couldn't show anything. there are 11 dna samples that have been submitted for the seven victims who remain unidentified but so far no matches as we understand it. >> of the other 11 tests four analysis of the dna from the swabs of the relatives do not match any of the seven. so they're still working on six samples that, to try and match any of the seven who haven't been identified yet. jon: well, i hope the families who have suspicions will get some answers out of this. >> right. jon: it's got to be awful even all these decades later not to know. >> oh, yeah. amazing how dna hangs around for decade and bone and teeth stay there protected. jon: if it gives them the answers they're looking for that is very helpful. dr. baden. good to have you on. thank you. >> thank you. jenna: always interesting to dr. baden. we'll move out to the west coast now. the crackdown on occupy protesters reaching los angeles. more than 1400 police officers, many of them dressed in full riot gear moving in on that camp city outside of city hall in l.a. early this morning. much cops making 200 arrests. it apparently took couple hours to get everyone out. the whole thing was peaceful and the l.a. police chiefs praised his officers and the protesters for their restraint. several hundred officers are on the scene at the park where an intense cleanup is underway. jon: europe's troubled economy igniting a massive riot in greece as the government there struggles with massive debt. those troubles are hitting us hard here in the states as well. we'll tell you about that. some surprising new details about "fast and furious", the botched federal program that armed criminals in mexico. what happened to the agents who blew the whistle? 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[♪...] [lock clicks] so who ordered the cereal that can help lower olesterol and who ordered the yummy cereal? yummy. [ woman ] lower cholesterol. [ man 2 ] yummy. i got that wrong didn't i? [ male announcer ] want great taste and whole gin oats that can help lower cholesterol? honey nut cheerios. jenna: this fox news alert. look where the dow is trading today. you might like what you see at least at this time. the markets are up more than 400 points. markets around the world are surging today on news that central banks, a few select central banks took coordinated actions to shore up the global financial system and try to stave off what could be a even further debt crisis in europe. that crisis doesn't just affect europe. it can hurt us but hurting u.s. exports, driving up the value of the dollar, making our products more expensive overseas leading to less profits here which also of course can translate into job cuts. the european crisis has the potential to shake up our own banking system and send ripple effects through our markets in the united states. some analysts argue that the u.s. could eventually face the same turmoil as europe. europe is a little bit of a foreshadowing, maybe that is better word for all this. mike santoli at "barron's" magazine. he has the right words for all this stuff. start off what happened today, central banks, among others, what did they do to make the markets react this way? >> they're effectively reduce the cost for banks to borrow from central banks on short-term basis. it is credit creation. what it is basically making the sure the system doesn't get gummed up the way it did in 2008 and 2009 so banks can finance their operations there is shortage of dollars in the world for all the banks that want dollar based rates. jenna: i'm going to be the american federal reserve. why not. you come to me. said you need to borrow dollars. i give you dollars for what in exchange for euros or interest rate get paid back? >> it keeps the plumbing working in the system. it is extension of measure in september these same central banks initiated. it is extending that year-end and lowering cost to other banks. jenna: some say the euro will not survive the crisis in europe. if that happens are we out of luck what we lend out? >> the euro as currency will survive. membership will maybe get changed. i don't think it is a the mare of riching. it points out that the system is feeling stress again especially european banks. jenna: economists recently in the associated press had this quote. he says when it comes to look at the united states and europe comparing the two politicians in both areas taken inherently manageable problem and turned it into a crisis by their actions or lack of actions. >> that's right. jenna: you agree with that? >> i agree in general. all the countries have too much debt relative to the size of their economy. the political authorities failed to or refused to come up with longer term budget solution as we saw in this country couple weeks ago. in europe it happened too slowly. even with the so-called austerity measures enforce or ecb trying to enforce them they're not happening fast enough. you're seeing riots in the street. in that sense it is similar. here couple instances. u.s., long-term structural problem but our interest rates are not going up. borrowing costs if anything are very low relative to the european countries right now, except for germany. we actually have time i think to work it out. the markets might not have that much patience. jenna: europeans are always late. they're late to the game here. what about our policy, will it be in time to prevent having a similar debt crisis like the one we're seeing in europe? >> we simply don't know. i do think you will need over the next year, certainly by end of next year i think you have to have a little more progress toward the longer term discussion. >> right around election time? >> i would say at or beyond election time we'll have another debt ceiling debate. keep in mind the debt seal was only temporarily raised. all this stuff will come together at same time you have potential sunsetting of bush tax cuts and all measures put into place like payroll tax cut. it is getting thrown together in this highly politically charged period. jenna: it will be easy? >> no problem at all. jenna: maybe all that energy will actually force something to get done. we can only hope. mike, nice to see you. thank you so much. jon? jon: jenna remember the controversy over swim body suits? they were so good, helped swimmers go so fast they were banned like this one? now the new suits that olympic champion swimmer michael phelps says will help shatter records in the pool. plus what's with all that mysterious construction taking place just outside the white house? lots of theories swirling around. our chief white house correspondent ed henry must know, right? we'll ask him about the big mystery, the dig at the white house coming up. ♪ jenna: a fox news alert. 15 to 20 years, that's how long federal prosecutors want rod blagojevich to spend behind bars. blago was convicted of the 15 counts. he will be sentenced officially next week. 15 to 20 years what prosecutors want among other things, blaug rod blah go vouch allegedly selling president obama's senate seat. we'll find out what the judge believes in the blago criminal trial that will come to a close officially next week when we get that sentence. jon: happening now, president obama leaving the white house to head for scranton, pennsylvania. he will make his case for congress to extend payroll tax cuts already in place before those cuts expire at the end of the year. we've chief white house correspondent ed henry joins us now. this tax break, the extension of it, where do we stand right now, ed? >> reporter: look, both parties are saying they want to see it extended. it means about 1,000 to $1500 in the average american's pocket. that could be obviously politically popular over the holidays. the real fight is over how you pay for that. the president drew a line in the sand in september when he first unveiled the american jobs act says it will be paid for. it will not add a dime to the deficit. extending this payroll tax cut could mean a couple hundred billion dollars in costs to the treasury. and the president wants to pay for it with a surtax on millionaires. republicans have rejected that. so when jay carney was pressed yesterday he left the door opening to the president signing objection tension into law without having a way to pay for it and adding money to the deficit. take a listen. >> we don't know what the endgame is yet. it is, there is no value in this process or ultimately for the american people who want and deserve this tax cut, to negotiate an endgame here before we even had a vote. so i'm not going to go any further on that. >> reporter: the other challenge for the president is going to a state like pennsylvania that he won pretty comfort for theably in 2008. -- comfortably may be now more of a challenge. "new york times" says it is still hillary country from 2008. may be a tough sell for the president in places like scranton. the senator bob casey, the democrat the sponsor of this payroll tax cut extension says he may not be able to appear with the president. he has some legitimate reasons. he has senate votes he has to take care of here in washington. when the person who is sponsoring the bill may not appear with the president it makes you wonder about his political standing in the state, jon. jon: seems like he spends a lot of time heading to pennsylvania. >> reporter: this is one of the states that has been raises absolutely. jon: talk about what is going on under the white house. a little digging going on there, ed? >> reporter: you noticed in some of our live shots in the last few months you hear a lot of noise. we have video we shot this morning of what is going on. they call it the big dig like you saw a few years in boston. people wondering how much all of this is going to cost. the official reason is that they are updating all kinds of utility lines, electric, telephone, et cetera. now there is some reports out there suggesting that actually what they're doing this is cover for some sort of underground bunker in order to, you know, have a safe place for the president and other top officials if god forbid there were terror attack or some other massive event. i can tell you from talking to various officials they think that is the bunker story i guess is bunk. they say this is utility story. if you want the real story, jon, i could tell you but i would have to hurt you. i don't want to do that we're friends. jon: i appreciate that, ed. i always thought all you needed to drag in some underground utility lines was a ditch witch and trenching machine. whatever. >> reporter: they're doing couple of years. that raised eyebrows. why are they digging for two or three years? jon: you have to wonder. that is a big utility dig. ed, thank you so much. >> reporter: good to see you. jenna: more on that story coming up. meantime newt gingrich is gaining momentum for the gop presidential nomination. rasmussen asked voters who would they pick if gingrich goes up against the president. who came out on top? we have breaking poll results at the top at noon. the man who shot president reagan appealing for his freedom. why he says he needs to move to virginia, next ♪ it's easy to see what subaru owners care about. that's why we created the share the love event. get a great deal on a new subaru and $250 gs to your choice of 5 charities. with your help, we can reach $20 million dollars by the end of this, our fourth year. and what it doesn't cover can cost you some money. that's why you should consider an aarp... medicare supplement insurance plan... insured by unitedhealthcare insurance company. all medicare supplement insurance plans can help pay... some of what medicare doesn't, so you could save... thousands of dollars in out-of-pocket expenses. call now for this free information kit and medicare guide. if you're turning 65 or you're already on medicare... you should know about this card -- it's the only one of its kind endorsed by aarp; see if it's right for you. all medicare supplement plans let you keep your own doctor, or hospital that accepts medicare. there are no networks and no referrals needed. help protect yourself from some of what medicare doesn't pay... and save up to thousands of dollars in potential... out-of-pocket expenses with an aarp... medicare supplement insurance plan... insured by unitedhealthcare insurance company. call this toll-free number on your screen now... for this free information kit, including this... medicare guide and customized rate quote. jon: high noon on the east coast, and this fox news alert, a possible game changer in the presidential race. check out this brand new poll from rasmussen reports. newt gingrich versus president obama. if mr. gingrich is the republican nominee, 45 percent of those surveyed say they would vote for the former house speaker, 43 percent say they would vote for president obama. now, this poll has a margin of error of 3 percent, essentially, you could say it is tied. scott rasmussen, whose company conducted that poll, joins us with more analysis in just a bit. we'll dig a little deeper with scott in a couple of minutes on "happening now". >> i'm rick folbaum at the assignment desk. in a couple of minutes, we're expecting herman cain to step up to the microphone in deiton, ohio, this is the first major campaign speech he'll be giving since announcing yesterday that he is re assessing his candidacy, his run for the gop nomination. we're going to monitor this speech out of deiton and let you know if any news happens. the dow continues to soar after investors, very happy with news about the european debt crisis. as you can see, the dow up over 415 points. it's been hovering around that number. we'll continue to watch that, as well as the second "hour -- second hour of "happening now" starts right now. jenna: we also with this story, stunning new details in the operation that armed dangerous criminals in mexico. hi everybody, we're glad you're with us, i'm jenna lee. jon: indeed we are, i'm jon scott. welcome to the second hour of "457 "happening now", we are following the investigation of fast & furious, that led to the death of brian terry. jenna: it's only recently that we heard about the agents that blew the whistle, some tell fox news they faced retaliation since going public. what does it mean? william la jeunesse has more. >> reporter: jenna, it takes a lot of guts to stand up for what is right in the face of denials and repriseuals by your own agency. these guys came forward and revealed what happened in fast & furious, an operation that could still be going on today had they not blown the whistle. >> any attempt to retaliate against them for their testimony today would be unfair, unwise, and unlawful. >> reporter: yet, atf agents claim that's exactly what happened to the fast & furious whistleblowers. >> they risked everything, knowing that everything they've worked forbes their careers, their reputations, their finances, are all going to be ruined. >> eight agents took their stories up to capitol hill. for most, it's been all downhill since. >> this is what we were ordered to do and every time we question that order, there was punitive action. >> reporter: the atf forced agent john dodson out of phoenix, leaving him with a house he can't sell. he now lives in a south carolina apartment with his two children, a little larry alt says he has unresolved retaliation claims against the agency, agent pete forcelli was black bald by the u.s. attorney's office and demoted to a desk job, despite what they claim publicly. >> the department of justice will never retaliate against whistleblowers. >> reporter: meanwhile the executives who oversaw fast & furious were fired, some promoted. now an assistant in the office of management in washington, supervisor david voth, now chief of the tobacco division, former acting chief ken melson to the office of legal affairs and coordinating bill mcmahon promoted to assistant director of internal affairs. >> these guys are protected, they're insulated. they're all part of a club. >> reporter: the atf main clains for one was promoted, or transferred. the one that resigned, dennis burke, we're told is working at arizona state university in a program funded by the justice department. jenna. jenna: and there are new parts to this story every we're. william, thank you very much for the latest. jon: we are america's election headquarters, where you are plugged into politics, and today, president obama is heading for another key battle ground state, pennsylvania. he'll push there for an extension of the payroll tax holiday. why? let's talk about it with chris stierwalt, fox news' digital politics editor. pennsylvania, key to the president's political ambitions if he wants to win reelection. is that why that's the set fog this big announcement? >> absolutely. it's not just pennsylvania. it's specifically scranton, which is the part of the state that is, as you know, the birth place of vice president joe biden but home to a lot of the blue color, white working class voters that have been so skeptical and so resistent to president obama and his agenda and is his biggest weak spot, as he looks to 2012. and yes, it's pennsylvania, which is, of course, the keystone, unintended, of the president's 2012 electorical map but also represents the voters in places like north carolina, ohio, wisconsin, missouri, other places that the president has so badly struggled with in his term in office. jon: are these the voters who are still clinging to their guns in religion? >> yes. those are the same ones that you're referring to, president obama, in an april april 2008 fund-raiser in morin county, california -- >> jon when he was still a senator then, we should mention. >> then-senator obama, running against hillary clinton who was far ahead of him in pennsylvania, he was explaining to donors why the folks, the small town pennsylvanians who cling to religion and their guns and these other things, why they were going to vote for hillary clinton and not him, that problem has been exacerbated over time. it was a struggle for president obama to win in 2008 in pennsylvania. he ended up doing it but he had to pool a lot of resources there and it looks like he's going to be there all the time between now and election day 2012. jon: but i thought this payroll tax holiday was something that republicans have generally embraced. i mean, how does the president go against them on this issue? >> well, he's got to hurry to get it out there to attack them on it before they go ahead and pass something in support of the concept. so it's a race with the clock to try to attack republicans on this. where they differ, essentially, is the president wants to increase taxes on top earners in order to pay for this, which comes out of the social security trust fund, while republicans want to cut spending or find other revenue sources to offset this reduction in funding social security. jon: when the president does make this speech today, we should expect to hear a lot of the lines millionaires and billionaires, right? >> and maybe private jet owners for good measure. jon: chris stierwalt, i'm sure you'll be watching it with us, thank you. you can log on to happening now, watch chris' power play live ef week day, 11:30 a.m. eastern time. jenna: in the meantime republican governors are daggering with one of the most important swing states, that being florida, no doubt shaping up the issues that will shape the gop agenda in the coming months. steve harrigan is live with more on this. >> reporter: jenna, 27 republican governors expected here today, among them, chris christie, bob gentlemen jindual, haley barbour, and the theme that seems to be emerging seems to be an attempt by these republican governors to distinguish themselves and how they govern from washington politicians. >> the general is one person who is directly accountable and responsible to the people on various specific outcomes, on job creation, on whether the budget is balanced or not, on various outcomes in the school system. people look directly to the governor and hold that governor accountable. >> we've asked several governors, what is the key issue for voters back home. and really, they have said the issue is the unemployment rate. >> jobs. whether it's someone who's lost their own job, whether they've got a son or daughter, going to college, a friend down the block who's unemployed, it's still without a doubt, jobs. >> reporter: governor walker could have a fight for his own job coming up, if a referendum recall is pushed through. in wisconsin next -- in wisconsin early next year. he told us a short time ago he hopes to be the only governor in wisconsin's history to be elected twice in the same term. jenna, back to you. jenna: a lot of high profile officials in that room. we'll be watching that, steve, thank you very much. jon: a lot of new concern in washington right now as we get early indications of the outcome of egypt's first elections, since the overthrow of hosni mubarek. the powerful muslim brotherhood, expected to grab a big share of this vote. greg palkot is streaming live for us from cairo. break it down for us greg. >> reporter: hey jon, ballots are still being counted. we won't have the official preliminary results from the first round of popularmentry voting until tomorrow. what we can tell you, from all vations -- indications, turnout may be as high as 70 percent. we can also tell you by all indications that the political wing of the islamist muslim brotherhood organization, that's the freedom and justice party, will also do well, maybe as high as 40 percent, along with other muslim organizations, political parties with even more conservative views on things. the future government here could have a decidedly muslim build. according to the muslim brotherhood, they are open, they are inclusive, and in fact they are very active in the community and they're also pragmatic politicians. we did hear a lot of support for them on the ground but also the promotion of sharia law, the attitudes towards women and social mores have a lot of people worried here. take a listen to this: >> if they are going to return egypt to a second society or second era, i don't think this will be the place for me to live. >> you think that's a possibility with them? >> yes. i'm quite sure of it. >> reporter: as for foreign policy, you're right, some in washington are getting concerned, too. listen to what one muslim brotherhood official told me about possible future relations between egypt and israel: >> it's up to the israelis to determine the path of such relationships. if they keep breaking the relationship that egypt is having with them, definitely we have to consider relations with israel. it's up to them. >> efforts against terrorism, they are against violence, i'm told, against criminality, but you're going to have to define terrorism for me, relations with the united states. well, they say, in fact, it is up to the united states to decide how it accepts the government here. again, jon, early days here. we're still waiting for the official results. secular rist parties do -- could do well as well and in addition in the background, military officials playing a big role in this, too, but we are getting early signs of a possible future for egypt. jon: an egypt embracing sharia law is not an egypt that the united states and probably a lot of egyptians would like to see. thank you very much. jenna: charged with hate rhymes in -- crimes in the amish community, these four suspects are amish as well, they're members of a splinter group. what they allegedly did that landed them in federal court today. >> 30 years after john hinckley, jr. tried to assassinate president reagan, he's in court, asking a judge to release him from a mental hospital. what prosecutors have to say about that, that video, still stunning, so many years later. let's check over rick at the web wall. always so easy to say! rick. >> easy for you to say! i've got a job for you during the commercial break, go to the "happening now" home page, at foxnews.com, school down over here and look at this poll. what do you think the government is building under the white house? we just heard about the big dig, we heard from ed henry, that if he gave us any more information, he'd have to hurt us. but we have choices for you to let us know what you think is going on and we've got a guest to talk about it coming up later on, the story, the poll results and more of "happening now" after a quick break. don't go away. [ knock on door ] coo you found it. wow. nice place. ye. [ chuckles ] the family thinks i'm out shipping these. smooth move. you used priority mail flat rate boxes. if it fits, it ships for a low, flat rate. paid for postagenline and arranged a free pickup. and i'm gonna track them online, too. nice. between those boxes and this place, i'm totally stayinsane this year. do i smell snickerdoodles? maybe. [ timer dings ] got to go. priority mail fla rate shipping at usps.com. a simpler way to ship. jenna: right now, new information on crime stories we're keeping an eye on for new the newsroom, the suspects in the disappearance of american robin gardner in aruba is set to return to the united states, his name is gary giordano, being released from jail on the island and headed back home. a new report on the investigation into bodies dumped and found along a beach parkway on long island, new york, police say they believe it's the work of one serial killer instead of multiple killers, -- the remains are a mystery. >> -- mystery. >> and several men are accused of hate crimes, accused of hutting hair and shaving beards of amish people who refuse to support their group's leader. >> the man who tried to assassinate president reagan wants to be set free, talking about john hinckley, jr., asking a federal court to allow him more time away from the mental institution where he's been placed. eventually he wants to be set free to live near his mother in virginia. hirvegly was found not guilty by reason of insanity 30 years ago but doctors say hismental problems are in remission. molly henneberg has more. >> reporter: government prosecutors are not buying it at all, they say hinckley has a deceptive personality and they want his time away from the mental institution decreased, not increased. we have video of hinckley from many years ago. the government told the judge today that secret service agents who track hinckley when he visits his mom were following him, when he was supposed to be seeing a movie. instead, hinckley went across the street from the movie theettory a bookstore and sat there and read books on president reagan and people who have tried to assassinate presidents. again, that's according to the government. and prosecutors who said in court today that hinckley, quote, has a long history of deception, and, quote, does whatever he wants and thinks he can get away with it. but the mental hospital, saint elizabeth's, here in washington, says hinckley should be allowed longer visits with his 85-year-old mother and perhaps more controversially, if those extended visits go well the hospital wants to be able to decide, rather than the court deciding, if he can live with his mom full-time. hinckley was lawyer, barry levin, told the judge in excess of o decades hinckley has not had a single incidence of violence and the risk of danger by giving him more freedom is decidedly low. the judge will hear more arguments over the next week or so and likely take time before deciding. jon. jon: that ruling is going to make waves i think either way. molly henneberg, thank you. jenna: how about this case, a murder suspect holds a couple hostage in their home he runs from police at the time but now he's back in prison and he's suing that couple. find out why, just ahead. and new antiamerican protests in pakistan, following nato's deadly air strikes on a military outpost. pakistan has nuclear weapons and terrorists who want them. stephen cohen from pakistan is our -- stephen companience says pakistan is our most controversial ally, find out why he says that after the break. binars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. 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[ all ] i'm with scottrade. jon: well, put this in the category of crazy lawsuits. a convicted kidnapper is suing his former hostages. how does that work? maybe rick folbaum can explain. >> reporter: i'm going to try! you know, if you can't trust your own hostages, who can you trust, glon this is the strange and bizarre story of jesse denik who broke into a couples' home in 2009 holding jared and lindsey roland hostage, at the time he was hiding from police who wanted him for questioning in the other case. the couple was able to escape the house unharmed and went to the police who arrested demik and now he is suing the couple for, get this, breach of contract! saying he had promised them cash in return for hiding them from the police. he claims it was an oral contract. the raleighs have asked for the case to be dmissed, she said they only went along with him because they feared for their lives. he is filing this from a prison cell where he is serving a sentence for four felony, two counts of kidnapping and facing murder charges in a different case that gets underway next spring. can't make it up, jon. jon: unbelievable. rick folbaum, thanks. jenna: some new information on simmering tensions with nuclear-armed pakistan, just days after a nato air strike killed 24 soldiers there, sparking widespread ang ner that country, there's word of another incident involving heavy artillery fire between pakistan and nato forces along the border with afghanistan. we should mention the border is not as distinguished as one might think, or as that map suggests in front of you. details are sketchy because of this incident but a nato spokesman says both sides reached out to each other before anyone was hurting preventing a situation that could escalate the situation in pakistan and the united states, and an even further, higher level. steve cohen from the brookings institution joins us. you say pakistan is the most complicated foreign policy issue we have. why is that? >> because we're indirectly involved with them in our role in afghanistan, they are a nuclear weapons state, they have a clear rivalry with another american friend, india, and the integrity of the state of pakistan is in question. i don't think they'll collapsed in the next five years, but clearly a number of the domestic indicators and variables are negative. so dealing with the pakistanis are even more typical an -- than iran. with iranians, we know where we stand. with pakistan, they're an ally but not always a friend. jenna: i think that's an important item that needs further discussion but you said you don't expect pakistan to collapse in the next five years. what about the next ten, 20? >> we went out 5-7 years. beyond that nobody can predict anything. it's not quite clear. jen yuen that's a good point. we wish we could at times. just really quick, as far as the complicated part of the foreign policy relationship, when you say it's the most complicated, is it potentlly the most dangerous in the united states as well? >> it is, because the nuclear aspect of pakistan makes it potentially a catastrophe for us or the indians or any other country nearby. in pakistan, it did crumble, it did fall apart, might allow the the weapons to fall into the hands of others. they have a bad record on proliferation, they helped the iranian program at one point. we don't know what the policy is in the future. clearly, they seem to be responsible. they have no incentive to be responsible in the future. jenna: what should we do about pakistan, then, how do we create policy that matches the complicated nature of our relation 1234u7. >> -- relationship? >> i think there are two issues where policy has been absented minds, one is on the new -- nuclear issue and trade. i think we ought to have a criteria based agreement with pakistan, something along the lines of agreement with india which would presumably bring them into the nonproliferation world. right now they're outside of it, along with -- they're a rogue state in that sense. we need to get more responsible behavior, more accountability. by recognizing them as legitimate, we might get that. the second area where we can make a transformation is economics. after the 9/11, pakistanis came and said we don't want aid, we want to trade and sell to the united states, we've been unable to change our barriers to allow pakistan to sell textiles to the united states. i think that would improve the relationship. that's a domestic american problem. jenna: it's interesting, engage them economically, bring them into the conversation with the world powers, like our allies and hopefully draw them closer to us potentially, if i'm reading you correctly. we spend a lot of time talking about iran and whether or not iran is developing a nuclear weapon and we do not have diplomatic relationships with iran at all and i'm curious if you think we're taking our eye off the ball, spending so much time looking at iran and what they're doing potentially with nuclear weapons and not enough time on pakistan, which has already has -- which already has nuclear weapons. >> iran might be getting one or two nuclear weapons. we know pakistan has 60 to 80 nuclear weapons, they're headed towards having 200 nuclear weapons, they're developing fissile material faster than any country in the world so we really should be concerned about it and have a policy which deals with this, not a policy of making faces at pakistan but a policy of understanding why pakistan went nuclear and trying to persuade them to join other countries and the asian nuclear restraint regime, which would involve china, india and perhaps us. jenna: who do you think should be the face of that policy relationship we're building, building that relationship with pakistan, is it something for secretary of state clinton, is it for general petraeus to do, is it for the president to do, who should be out in front? >> i think our problem is we've had a monday-wednesday-friday policy on pakistan, monday-wednesday friday, the defense department, tuesday and thursday it's been the state department and weekends, perhaps it's the cia. we don't have a coordinated policy towards pakistan and our different agencies and different government offices have different polices towards pakistan. some would like to befriend it, some would see it as a threat, others are trying to accommodate it. we've been organizationally confused over pakistan. this doesn't apply just to this administration but to the previous administration as well. jenna: sounds like a good time to get clear, whoever the administration is. stephen, nice to have you. >> that's right, jenna. jenna: thank you very much. >> okay jenna, good talking to you, bye bye. jon: we turn to attention to domestic issues. cyber monday sets a new record for online retailers. we're going to take to capitol hill where there's a hearing on collecting sales tax on internet sales. always controversial. plus, the $254 million question. who really won that huge jackpot in connecticut? some questions being asked about the three guys who stepped forward. toothpaste is the wrong thing to use on a denture, it could be very abrasive. if the surface gets abraded, it's just the environment that bacteria likes to nestle into and they can cause the odor. your denture needs to be cleaned gently on a daily basis. i like to recommend polident, it kills the bacteria without causing any abrasion. when my patients follow my instructions, their dentures feel clean and fresh. they look forward to putting them in their mouth and smiling. jon: back to our top story now. a stunning new poll on the presidential race. rasmussen reports has newt gingrich versus president obama. there you see the numbers on your screen. if mr. gingrich is the republican nominee, 45% of those surveyed would vote for the former house speaker. 43% say they would choose the president. the poll has a margin of error of 3%. essentially that means the two are tied. scott rasmussen is with us now. he is the guy whose company conducted that poll. scott, first of all, i am saying that right, correct? with a 3% margin of error those two are essentially tied? >> absolutely. look, we've seen this play out before. rick perry came from nowhere, became the chief alternative to mitt romney. he went two points ahead of the president one week. herman cain did the same thing. both of those two men a week later began to fall off as scrutiny of being frontrunner took hold. the question while the gingrich camp would be happy with this result the question is can they hold onto this in a month or so between now and when the voting actually begins. >> there has been so much attention paid on the republican side of things of anybody who is not mitt romney, right? >> that's correct. when we polled head-to-head, we say would you prefer romney or cain, romney or gingrich, romney or perry, it is pretty much a toss-up. that is where the divide is in the republican party. the second part of the equation, the general election it is all about barack obama. right now when we asked about gingrich versus obama, obama gets 43%. when we ask about romney versus obama, the president gets 44%. so those numbers pretty consistent. mitt romney, by the way, still the only republican who led the president more than once in our polling. we've been polling all year on all these candidates. jon: mitt romney is something of a familiar figure to potential voters because he of course ran in the race the last time around, losing out eventually to john mccain. but, what does it say about the former speaker? i mean that's a stunning turn around considering that he was polling in the single digits just a couple months ago? >> again, i think this has more to do with mitt romney than it does the speaker. all the other alternative, all the other, i'm not mitt romney candidates have had problems and fallen out of favor. one difference between gingrich and some of the others, when we polled an iowa, new hampshire, we've been asking primary voters are each of these candidates qualified to be president? more than seven out of 10 say gingrich and romney are qualified. none of the other candidates come close. there is perception whether you know newt gingrich or love him, hate him, know more than you want to about him, he is a guy seen having a lot of experience in the federal government. jon: what about herman cain? he enjoyed broad support. was a frontrunner for a while. he has had some problems lately. is some of his support heading to gingrich? >> very much so. in terms of the national polling he now trails the president by double digits. in new hampshire, what we saw this week is that gingrich became the big winner. he moved into second place, 10 points behind mitt romney. the big loser was herman cain who lost 12 points of support over the course of a month. so it appears, at least a big portion of that support for herman cain moving to newt gingrich at this time. jon: scott rasmussen of rasmussen reports, thanks for sharing that information with us. >> thank you. jenna: from politics to shopping right now, why not. let's do it that way. the holiday season is underway. retailers keep prices lower as some online shoppers may or may not know. rich edson at fox business and he has story for us live on capitol hill. rich? >> reporter: good afternoon, jenna. depends on the state and depends on the company, but in many cases if you shop online you don't have to pay sales tax. the federal government says in order for a online retailer to pay sales tax to authority rise that there has to be a physical presence in that state. there is number of bills in capitol hill that would change that. a hearing today. amazon.com, if you live and shop in kansas, kentucky, north dakota, washington state, or later next year in california that company, if you're shopping in those states will charge you a sales tax and give it over to that state. all the other states for the most part you probably don't have to pay sales tax. all the companies that have physical stores and do charge sales tax say that is a total disadvantage and it's not fair. online retailers or many of them say there's a difference. >> asking one retailer to collect without asking the same of all retailers doesn't seem like equal protection under the law. >> the main issue though is that a tax, tax rates don't just come out of a burning bush somewhere. taxes are the price that governments charge for their services. we consume a much smaller subset of the services of a state like california than we would if we had stores there. >> reporter: amazon.com says it actually favors federal law being changed so states can charge sales tax uniformly overstock.com and ebay say they are against the measure. these are proposals currently moving their way through capitol hill. jenna, back to you. jenna: we'll continue to watch it, rich. thank you. jon: there is new information on a report that three wealthy money managers claiming a $254 million lottery prize are not necessarily the real winners. rick pole obama -- folbaum can shed a little lit on that. >> reporter: the mystery continues to swirl around these guys. are they the actual winners or fronting for someone else didn't want his or her identity what they were doing. if that is true is it legal. we decided to look at this. statements from a long-time friend of one of the money managers his buddy told him flat-out the trio did not purchase the winning ticket but pretending they did to keep the press and others off the real winners back. a source of mine inside the state attorney's office yesterday told me there was some concern when they began to hear these reports perhaps it wasn't on the up and up. as far as the connecticut lottery corporation and consumer protection agency are concerned no rules were broken. the men set up a trust to be the beneficiary of the winnings. this is allowed by the law and the appropriate taxes were all taken out, jon, $38 million in federal taxes and 10 million in taxes that go to the state of connecticut. back to you. jon: i'm sure the state is happy about that. >> reporter: absolutely. jon: rick, thank you. we'll talk more about this and the potential legal fallout. frred tecce is former federal prosecutor. joey jackson is former defense attorney. as far as we know neither one of them won the $254 million jackpot. >> i wouldn't be here if i did. jon: fred, that's proof enough for me. if these guys are fronting for somebody else and again, rick told us there is that suggestion from a friend of one of the guys, if they are fronting for somebody else, are they doing anything illegal here? >> you know what, jon? not yet that i can see. you know, i teach my kids you always have to tell the truth and any kid in kindergarten always tells you have to tell the truth. under the law there has to be materially false statement upon which somebody recently relied. i haven't seen any materially false statement. that is why the state of connecticut released the money. the taxes were paid. so far as a prosecutor the fact that these guys are lying kind of raise as red flag and i like to keep one eye on them. jon: what about it, joey? if they are fronting for somebody else, i mean would you defend them? >> much ado about nothing, jon. jon: really? >> the fact is they had, the person who had this ticket gave them the permission and authority to do with it as they will, which was, their trust was established. they went to collect. listen, the fact about misrepresentation, if misrepresenting things to the public was a crime how many of our political leaders would not be in office at this particular time? the point they wanted this individual who had the ticket wanted their anonymity. as a result of that they went through proper protocols. fred knows and we can agree i think the fact when you have a ticket it is your right to collect. people all day, every day, have the right to assign or transfer whatever their rights are and as long as they give you permission and authority to do it, it is all good. jon: this check -- >> but you can't, can't give people, joey the authority to go lie, okay? >> i'm not saying lie, fred. >> but, they did lie. davidson said he bought the ticket and there may be allegations that's not true. why not just come out and say we didn't buy the ticket? we're the trustees for someone who wishes to remain anonymous? why this big ruse? >> i agree people should not be encouraged to lie. no one should lie. our children shouldn't lie. we shouldn't lie. the fact is we're talking about legal implications if terms of lying people do every day this doesn't rise to level of a crime because the public may have been misrepresented who actually purchased ticket. jon: just so our viewers know. the three guys hold up the check with putnam family trust. their offices are on putnam avenue. so the supposition or maybe the impression they're trying to create, and you know, maybe it is the fact that one of them bought the ticket. just this one friend of one of the men who says they're fronting for another guy. at any rate, they're trying to create the impression that they bought the ticket, that they are going to manage this money and they say a lot of it is going to charity. lying to the lottery, that is no crime i guess, fred? >> no, it is not because it wasn't a materially false statement upon which the lottery relied. they don't care. as long as the guys had the authority to take it. the problem i have, first of all, joey is too good after lawyer just because everybody does it isn't a good defense. let's put that aside. more importantly why not just come out and tell the truth? from the allegations i hear one of the guys is claiming he bought the ticket when in fact that's not true. again it is not a crime. i don't see any civil liability at this point. jon: i have told many police officers that everybody else was speeding and it has never worked for me, fred. >> won't in the future. be careful, jon. jon: thanks, guys. we'll see what happens. we'll keep an eye on this story, see what happens with it, thank you. jenna: you never speed ever? jon: no, i have been caught once in a while. jenna: oh. jon: once in a while. jenna: just five miles. jon: a little bit above the speed limit. >> police departments in cities where the occupy movement is active, there is some reports that there they have been working together to organize a crackdown on the movement. catherine herridge with new information on that, whether or not that's true next. [ male announcer ] if you think tylenol is the pain reliever orthopedic doctors recommend most for arthritis pain, think again. and take aleve. it's the one doctors recommend most for arthritis pain... two pills can last all day. ♪ then our invisible hearing aids are for you. loaded with our most advanced hearing technologies, our invisible hearing aids are comfortable to wear and are specifically designed to improve hearing in noisy environments, sound more natural, eliminate whistling, and let you talk comfortably on the phone. call... to try invisible hearing aids yourself free for 30 days. choose from 2 great styles. the invisible-in-the-canal rests comfortably inside your ear where no one can see it. the mini receiver-in-canal hides discreetly behind your ears virtually undetectable by others. invisible hearing aids deliver exceptional sound quality yet are so small, only you'll know you're wearing them. call... today to try them free for 30 days. now these hearing aids are truly invisible. you can't tell that i'm wearing them. no one knows that i'm wearing them. call... today to try them free for 30 days. >> hey, everyone, i'm megyn kelly. herman cain says he is staying in this race despite a woman alleging a 13-year affair with him. will conservatives back him? the head of the family research council, tony perkins is here. critics say we're giving habitual overspenders another blank check. is that fair and are we about to write another one. president obama's approval rating dips below of jimmy carter at this point in his first term. should the white house be worried? all that us mr. the psychic who claims she had a vision where missing baby lisa irwin lives joins me live. is this nonsense or is she on top of something? see you at the top. jon: there are allegations against some of the police chiefs in biggest cities in country. critics accusing top cops of coordinating a crack down on the street street protesters -- "occupy wall street" protesters. harnl herridge is live in looking at these conference. >> reporter: conference calls bringing together 40 police chiefs were original it is organized in response to occupy protest they issued this report managing major events. given die ma'am thicks we understand the calls dealt with safety, sanitation and whether setting deadlines created unnecessary confrontations with protesters. take for example, portland, oregon gone less than a week after demonstrators set up camp. soon the camps were described in press reports as open-air facility treatment facilities for drug addiction and mental illness. there are practical consideration like police overtime. >> we saw after four weeks the public's patience began to wear thin. they began to demand as the crowds started to change, homeless people became more involved, became homeless camps. recently released criminals joined in. can a police department sustain that going forward? you know, week after week? no. not in these hard financial. times. >> reporter: the incident at uc davis where pepper spray was used drawn sharp criticism from the aclu. senior executive for the aclu tells fox deal with acts civil disobedience using pepper spray when demonstrate stores lock arms is crosses the line and fundamental unmanner -- un-american. >> democracy isn't neat and clean. it is messy. it is loud. it is boisterous. but the rights to protest is written into our constitution. >> reporter: worth noting the police executive research forum passed on our interview request. after details of conference calls were leaked they were targeted with malicious and false stories suggested they organized some crack down which they denied online, jon. jon: catherine herridge thanks. >> reporter: you're welcome. jenna: there are a lot of top secret meetings at white house, right? jon: oh, yeah. jenna: a top secret mystery below 1600 pennsylvania avenue. what are they building there exactly? almost like a swimming pool. that would be a nice addition. jon: water slide. jenna: is it an escape route? maybe an underground bunker? we'll tell you just ahead. so who ordered the cereal that can help lower olesterol and who ordered the yummy cereal? yummy. [ woman ] lower cholesterol. [ man 2 ] yummy. i got that wrong didn't i? [ male announcer ] want great taste and whole gin oats that can help lower cholesterol? honey nut cheerios. but my nose is still runny. [ male announcer ] truth is, dayquil doesn't treat that. really? [ male announcer ] alka-seltzer plus fights your worst cold symptoms, plus it relieves your runny nose. [ deep breath] awesome. [ male announcer ] yes, it is. that's the cold truth! urney across america,yes, it is. i've learned that when you ask someone in texas if they want "big" savings on car insurance, it's a bit like asking if they want a big hat... ...'scuse me... ...or a big steak... ...or big hair... i think we have our answer. geico. fifteen minutes could save you fifteen percent or more on car insurance. jenna: now what some are calling a mystery at the most famous address in america, 1600 pennsylvania avenue. a huge underground construction project beneath the white house sparking, you know, all sorts of theories. ronald kessler is the author of, in the president's secret service. chief washington rrespondent for newsmax. ron will run video we have the construction project so viewers can see what we're referring to. what do you think we're happening there at the white house? >> i have found out what is happening which is, that they are building a huge underground top secret bunker, which is to allow the government to operate in the event of an attack, even if it is nuclear, biological or radiological. so that is a huge, huge step from what they have now which is something that could not be, that could not with stand any kind of attack. jenna: i'm looking at this construction and it is out in the open. for something so top secret, according to what you're saying, then why would it be so visible by everybody? >> well, you know they do have to excavate dirt. they can't hide that. what they're doing putting out a cover story just moving utilities around and that sort of thing. they had the same coffer story when they did a similar bunker at the vice president's residence the naval observatory. they said it was just utilities. in fact it was a top secret bunker to shield the vice president in the event of a major attack. you remember biden let the secret out at a gridiron dinner. then he tried to cover it up, saying he was talking about something else. jenna: oh i see, that, it is hard to say something like that to have a take me back. here is what the white house says. we reached out to them for a little more information on this. they say as well this is a utility project. that it is an upgrade and replacement of utility infrastructure, things like chilled water, hot water, steam, storm, sanitary sewers, things like that, to create enough space and pathway for replacement of utilities infrastructure at proper depth location they need to utilize concrete pilings, retaining walls, underground work. i took two years of wood shop at middle school. that doesn't make we a construction expert, ron. when you hear that, what do you think? >> looking at the size of it you can tell it is not just for utilities. secondly, there will be relocation of utilities, so they're not totally lying. but this is a really top secret compartmented project. the secret service is keeping it very hush-hush. they're simply not going to admit they're doing it. jenna: we talked a little bit about it now. i didn't get to ask you about the tunnel. i hope to have you to talk more about this. i'm up against a hard break, ronald. thank you so much for joining us. we'll continue to watch this project as it unfolds in front of our eyes. >> thank you, jenna last throw, prce. and last chance at medicare open enrollment, too. what do yean? it ends december 7th. if you haven't reviewed your medicare plan oices yet, well, it's getting late. medicare gives you free cancer screenings and wellness visits, and 50% o brand name prescription drugs when you're in e donut hole... it's all part of the health care law. december 7th? i better get goin'! 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