i'm erin burnett. outfront tonight we have breaking news. a surge of the day. stocks just jumped to the moon. dow and s&p had their single best day for the entire year. the dow jumps 287 points. so you can say why, the sheer excitement. the ebulliance. have we suddenly solved all of our economic problems? have we stumbled upon a machine gun of silver bullets? have we found our terminator? not so fast, arnold. today we got shot up with rubber bullets. it was an arsenal of talk but no concrete action. in europe, the central bank chief said officials stand ready to act and there were reports of talks of a possible deal to bail out banks in countries in crisis like spain. that's a lot of talk. being ready to stand by is different than standing by. here at home, the fed said it may be ready to take further action to help spur the economy, extending unprecedented efforts to ease credit. now, that's still talk and not action. is this what we have come to, so desperate, hanging on to the economic precipice that a little sweet talk sends stocks to the moon? outfront tonight, doug holtz-eakin, and robert reich, author of the new e-book, "beyond outrage." robert, let me start with you. look, we want to be happy and hope this is for real, but this really was a whole lot of talk. i was kind of amazed. you could look through it, there was very little specifics. it was all hope that maybe, if needed, talk will become action. >> well, erin, i think the explanation is that the market had fallen so far and so deep, particularly after friday's very dismal jobs report, that the market and traders were looking for any silver lining. any good news. bond prices are very, very high. the yields are very low. a lot of global savings are just looking for where to put their money. and stocks are looking relatively good. so everybody was sort of waiting for the first little bit of good news and they would surge into stocks. there's another factor, and that is also there are traders on wall street. there are speculators. they tend to exaggerate the volatility. on the way down they sell short, on the way up, they speculate. >> doug, what do you make of this? and i guess also because you don't want the guys who run these central banks, ben bernanke here in the united states, to go ahead and do things because the markets think that they should or will. that's, frankly, the last thing you want in terms of driving them to action, isn't it? >> i agree with that completely. i think this is mostly a europe story in the substance. there, if the central bank were to lower interest rates and continue to provide liquidity, it could benefit real growth in the eurozone so traders seeing that had good reason to be slightly more optimistic. europe's capacity to disappoint, however, is enormous. i don't think there's much going on at the fed end. they stand ready to counteract any shocks that come out of europe. there is some hint they might do some more easing and, yes, that could help stock markets but it couldn't do what the europeans do which is push more u.s. growth there. this is just talk and it's not going to help our economy. >> let's talk about where we are, because tomorrow ben bernanke will be talking and answering tough questions on capitol hill and we want to be out front of it. robert, this really is the key. many, many trillion dollar question. does the united states need to do more right now? does ben bernanke need to do more for the economy? >> i think he does, erin. you know, the president of the atlanta federal reserve board branch said that he thought that we're getting to the point where we may need more so-called quantitative easing. that's basically fed speak for buying up long-term interest -- getting long-term interest rates down and making sure that the economy over the long term, those long-term interest rates, will spur additional growth. i think that a lot of people have come around to the view that particularly after friday's very dismal jobs numbers, the fed is far closer to embracing quantitative easing, a third round of quantitative easing than it was prepared to do before. there are still some inflation hawks on the fed that are worried about doing that, but not many. i think they're just about ready to do it and i think it's the right thing to do. >> could you say, doug, that it's like a drug. i inject it the first time and i get this great high and then i get addicted. the second time the high is not as good. the third time -- i mean, interest rates can't get any cheaper. it can't be any cheaper to get a mortgage for all intents and purposes and still that hasn't been enough. so why would qe-3 do what 1 and 2 haven't done. >> i think that the -- >> go ahead. >> i don't think the fed should move, quite frankly. we did quantitative easing 1 in the midst of the major crisis that made some sense. they tried quantitative easing 2. yes, it caused people to buy riskier stocks but didn't help real growth at all. they did something called operation twist. no one has noticed. if they go ahead with qe-3, it would give the stock market a boost but do nothing for our economic problems and they should resist the temptation. >> robert, final word for you. fight for why -- >> let me actually side with doug a little bit on this. if you don't have any fiscal stimulus at all, then if it's all up to the federal reserve board, and i am in favor of qe-3. i think the fed ought to do what it can do. we shouldn't close any doors. but it's not going to have a huge impact because without any fiscal stimulus, a lot of people, a lot of businesses are still not going to borrow. they don't have an incentive to borrow or don't have an incentive to expand because there's not enough demand out there in the economy right now. >> you're a glutton, you want ben bernanke, you want congress, you want all of it. >> i want all of it. i want to get jobs back. we've got to do everything we possibly can do, erin. >> all right, thanks to both of you. of course we'll be watching ben bernanke tomorrow. it's going to be crucial testimony to see whether this economy is in recession or not right now. outfront next, a huge story in the election involving unions that could have implications for every state. and it happened hundreds and hundreds of miles away from wisconsin. and later, the facebook debacle at the nasdaq and how much it will cost. and later, we've got new video in the case of the man accused of murdering a student, obliterating his body and sending the parts through the mail. is always headed somewhere. to give it a sense of direction, at&t created a mobile asset solution to protect and track everything. so every piece of equipment knows where it is, how it's doing or where it goes next. ♪ this is the bell on the cat. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪ ttd#: 1-800-345-2550 let's talk about the cookie-cutter retirement advice ttd#: 1-800-345-2550 you get at some places. ttd#: 1-800-345-2550 they say you have to do this, have that, invest here ttd#: 1-800-345-2550 ttd#: 1-800-345-2550 you know what? ttd#: 1-800-345-2550 you can't create a retirement plan based on ttd#: 1-800-345-2550 a predetermined script. ttd#: 1-800-345-2550 to understand you and your goals... ttd#: 1-800-345-2550 ...so together we can find real-life answers for your ttd#: 1-800-345-2550 real-life retirement. ttd#: 1-800-345-2550 talk to chuck ttd#: 1-800-345-2550 and let's write a script based on your life story. ttd#: 1-800-345-2550 last season was the gulf's best tourism season in years. in florida we had more suntans... in alabama we had more beautiful blooms... in mississippi we had more good times... in louisiana we had more fun on the water. last season we broke all kinds of records on the gulf. this year we are out to do even better... and now is a great time to start. our beatches are even more relaxing... the fishing's great. so pick your favorite spot on the gulf... and come on down. brought to you by bp and all of us who call the gulf home. our second story outfront, all the wisconsin talk overshadowed a crucial vote last night that dealt a serious blow to public unions. voters slashed pension benefits for government workers in two of america's biggest cities, san jose and san diego, california. the fight against unions is going on from coast to coast. it's those cities and of course it's wisconsin. we all know about that place. but now the anti-tax crusader, who harry reid once called the most powerful man in washington, says it's a free day. states need to follow the example set by wisconsin governor scott walker. after tuesday's results there came this tweet from the one and only grover norquist saying, quote, there are 23 other states with gop governor, house and senate now able to pass scott walker's reforms. they know it works and is safe. grover norquist is here tonight. good to see you, sir. appreciate it. so let's get straight to it. you said governor walker's reforms are quote/unquote safe. i read that and wait a minute, safe is going through a recall and wasting $70 to $80 million on a whole recall because you didn't go about it the right way? >> well, i think for a long time american elected officials wondered whether they could take on the power of public sector unions. what chris christie did in new jersey was show that you could talk about disagreeing with the teachers union without appearing to be anti-teacher or anti-education. and what scott walker pointed out was that you could actually pass reforms which reform public sector unions, which save a lot of money for state and local government. barrett, the mayor who ran against him, had implemented many of his reforms and saved tens of millions of dollars for the taxpayers that he represented. so it works. it saves money. public sector jobs and public sector work gets done. and even though the entire public sector union leadership through money and resources into one state, they still couldn't take one guy and his lieutenant governor out. so it says to other governors, wisconsin has a history of being very strong for public sector unions. it's a union state in many ways. it's a democrat, liberal state in many ways. >> for sure. >> so if you're from some other state that's not as left of center as wisconsin traditionally has been, it's -- the ice is thick enough. go on out. >> so let's talk about one of those states, ohio. republican governor, john kasich, gop legislature, tried to push through reforms and cuts to pensions and roll back collective bargaining. there was a rule in ohio, went to voters in referendum, they said no way and it didn't pass. so it's not quite that easy. >> two things, nobody has lost an election over it in ohio. what did happen, of course, they had a referred question. the campaign on that was insufficiently focused on what wisconsin did, which was making local government work. so yes, you can still bullocks this issue and ohio didn't present it well and didn't raise the resources compared to what the wisconsin did. >> what about the overall point here, grover. you look at exit polls in wisconsin. you were talking about it yourself, this is a state that goes democratic. if it goes republican, that would shock almost everybody, no matter who wants to call it purple today, it's still a democratic state. right now voters according to the exit polls, which i know have their issues, prefer president obama to mitt romney 51 to 44%. do you think some of these hard line tactics, this my way or the highway, if you don't like it, go jump off a cliff, is not the way to do it? >> four years ago when obama ran he won by twice that margin so his margin in the state has fallen in half. the state has also passed a voter i.d. law which a liberal judge said won't apply to this election. so this is the last election you could show up on election day, tell them you're mickey mouse and vote. that can't happen in future elections. so the vote is going to get closer for obama running at the national level. but i'm actually more interested in what san jose and san diego did. >> yes. >> reforming the overspending on pensions and benefits, the teacher tenure laws that allow teachers who have been there three years to keep their job forever regardless of whether they're doing a good job or a bad job. those are reforms that are moving state by state. as i pointed out, there are 23 other states that have a republican governor and legislature, meaning if they sit in a room and say let's do what wisconsin did, texas and florida, georgia, big states. >> let's bring in john avlon and roland martin into the conversation. on that issue of you have two -- 22 state that would do it, john, let me go straight to you on this. a lot of people are saying that the vote in wisconsin maybe wasn't so much about the collective bargaining but people saying a recall is supposed to be about did the guy break the law. so maybe the vote is not this mandate on collective bargaining or anti-union and more straight down the middle about did the guy do something illegal? >> to that point, we've had recall fever in this country. in 2011 there were 155 instances of recalls on local races. so i do think that there's generally a rejection of this. i think it's pretty healthy. they're not only expensive, but they're destabilizing our democracy and relitigating the election results you don't like. that clearly was a part of this. but the fact that walker won with more votes than he did in 2010 also speaks to a certain strength. then, of course, the money differential, you can't discount that. >> roland, what do the democrats take away from that. san jose cut its workforce by 25%. they had done all sorts of things. at a human level hurt a lot of people's lives because they didn't want to mess with pension promises but they voted to go ahead and cut those promises. this seems to be something that is bipartisan, isn't it? >> first of all, when you have a difficult economic time, the public is going to look to anybody to want to be able to blame or make any kind of adjustments. keep in mind, when we talk about public workers, people ask as if we're talking about only democrats. there are actually people who are republican that are teachers, firefighters and police officers. one of the things that we have to keep in mind also, especially when you talk about teachers, i have three siblings that are teachers, is typically the payoff for a teacher is going to be that particular pension. here we are trying to get higher quality folks in the classroom. if you begin to say we're going to cut pensions and we're not going to pay you more on the front end, then we're likely going to lose quality people in the classroom. so we might want to be very careful in terms of how we attack this whole notion of a pension for public workers, because they are sacrificing on the front end to get something on the back end. >> but what if you paid them for their performance all the way through? pay them on the front end if they're good, fire them if they're not? >> first of all, i absolutely believe that if you are not a quality person, you should get fired. but keep in mind, the same people who voted yesterday are the same folks who don't want to pay more right now. so at some point they're going to have to figure out where do i stand on this and the rubber will meet the road somewhere. >> but really the votes in san jose and san diego are in some ways even more significant than wisconsin, because it happens in california. it's not a narrow margin, it's a 70% margin. democratic mayor of san jose saying, look, our pension costs have tripled in the last decade. we're spending a quarter of a billion dollars on our pensions. we can't afford that. people across the political spectrum say that's right. this is unreasonable. these are deals made decades ago and they kick the can to us and now we can't afford it. we need the freedom to make fiscally responsible adjustments. >> grover, would you think i don't want to be the standard bearer for the republican party, i admire what the democrats are doing. do you admire the democrats? >> i think you've got some democrats who are put in a very difficult position, which is one of the most important funding bases for the democratic party is organized labor. they take union dues particularly public sector unions, they take union dues out of the paychecks of teachers. in wisconsin it was $1,000 per teacher taken by the union and then spent on various things. one of the things -- >> right, so all i'm saying is wouldn't you say that these democratic mayors, governors who are taking on this issue are all the more courageous? the republican guys aren't getting these donations. that's not that hard to take them on. >> no, they are being courageous. they have been put in a situation where the public sector unions and their demands are bankrupting whole cities. they have to do this. you're even seeing rahm emanuel in chicago begin to have some of these efforts. this has to happen. it's bankrupting cities, states. government can't work with these sorts of costs that are being imposed on it. this is happening, but slowly. it should have happened ten years ago. >> grover, thanks very much. >> got to leave it there, sorry, roland. john and roland will be back tomorrow. thanks to both of you. john too. ahead, a report from miguel marquez. a man terrorizing americans by planting bombs in everyday household items in this country. and the nasdaq forced to pay millions for facebook to whom, to you? is it even the right number? i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. the fallout from the facebook ipo continues. although it's fair to say as part of the bounce in the market the stock did go up a little bit. part of the problem lies with, well, where facebook went public. it went public on the nasdaq. you may be aware that serious problems in nasdaq systems on the ipo day caused big losses for a lot of people. it was so bad, in fact, that the ceo of the nasdaq said had he known these problems would have happened, he would have stopped the entire ipo. so much money is he going to have to pay? today nasdaq said they're going to pay something. they're going to provide some compensation to people who lost money in a few different ways. this is a little complicated. basically when the stock opened at $42 a share, that was a problem for a lot of people. a lot of people tried to buy stock and didn't know if they were able to buy it or tried to sell stock, and they weren't sure if they were able to sell it. well, as you know the stock fell sharply from that level. if you were in at $42, you lost a heck of a lot of money. how much is the nasdaq on the hook for? that's our number tonight. $40 million. so they hope. they put this out with their board, they said, hey, guys, $40 million. they're going to give $13.7 million in cash and then say, you know what, we'll give you a discount if you trade with us and that's how you'll make up the rest of the $40 million over the next few months. we'll see if that will actual work. there's a problem with it because a lot of firms are really upset with the nasdaq. a trader told me today that the losses for the firms were actually nowhere near $40 million, it was $120 million. and those firms, those firms are actually, you know, regular people. your pension, your 401(k). they represent them. that's going to be a problem. as one trader told me, the nasdaq has egg on its electronic face. ahead on "outfront" are intelligence leaks happening at the highest levels of the american government? and bizarre case of the body parts murder in canada. the suspect released videos while he was on the run, and we have them. 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[ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪ we start the second half of our show with stories we care about, where we focus on our own reporting from the front lines. the social networking site linkedin is acknowledging that at least some the 6 1/2 million passwords have been hacked, possibly by russians. they haven't said how the passwords were stolen but it's investigating. customers passwords won't work when they try to log into the site. if you were hacked you will get an e-mail with instructions on how to change it. regulators testified before the senate banking committee today on jpmorgan's $3 billion trading loss. we are monitoring the hearing all day and comptroller of the currency, tom curry, was somebody we focused on. he said he believes the issue was inadequate risk management. that office controlled the portfolio that had the $3 billion loss and directly reported to ceo jamie dimon. the jury in the trial of jerry sandusky has been picked. there are five men on the jury, seven women and four alternates. ten have ties to either penn state or key figures in the case. cnn contributor, sara ganom is reporting on those who didn't make the cut. among them a middle-aged man who goes to church with the sanduskys and a former teacher of one of their adopted children. the trial will begin monday. he has pleaded not guilty to charges he sexually abused ten boys. the wife of pedro hernandez, the man accused of killing etan patz 33 years ago says her husband's confession is unreliable. her attorney told cnn that she has seen her husband's delusions and hallucinations and other mental illnesses for a long period of time. pedro hernandez is being held without bond at new york's bellevue hospital tonight. it has been 307 days since the u.s. lost its top credit rating. what are we doing to get it back? maybe the stock market rally will help. the dow did jump 287 points and is the best day of 2012. now our third story outfront. it required a little bit of a setup here. top secret intelligence leaking out of washington like a sieve. compromising our national security. and what is the motive behind all this leaking? the fbi has launched an investigation to find out how classified information leaked to the media, specifically classified details revealed by david sanger, the reporter you are -- saw outfront earlier this week, talking about america's top-secret cyber war and programs that were targeting iran's nuclear program. that's the latest, though, in a series of leaks that have people like john mccain calling for a special counsel to investigate. >> such disclosures can only undermine similar ongoing or future operations and in this sense it compromises our national security. for this reason, regardless of how politically useful these leaks may have been to the president, they have to stop. these leaks have to stop. >> speaking to reporters on air force one, white house press secretary jay carney responded, telling reporters that any suggestion that this administration has authorized intentional leaks of classified information for political gain is grossly irresponsible. intelligence leaks in washington are not a new phenomenon but in the past two months the dam seems to have broken. there's been details of a secret shipment of f-22s to the united arab emirates. sources there told me that was incredibly damaging and frankly said, hey, look, why does the u.s. have such loose lips. there was also the discovery of the saudi arabian double agent in the foiled bomb plot in yemen. his life is now at risk. last week we heard about president obama's secret kill list and many are questioning the release of secret information surrounding the killing of osama bin laden himself. are these leaks politically motivated? it's a crucial question. if they are, whoever it is, no question should be held responsible. representative peter king is the chairman of the house committee on homeland security and he is outfront tonight. good to see you, chairman. let me just ask you the key question. john kerry has just come out a few moments ago saying the allegation that the white house could have been involved in these leaks or authorized these leaks is not close to reality. incredibly strong words. he said there is not a single democrat in government, in the white house who would have done such a thing or did such a thing. do you think it's politically motivated? >> erin, whether politically motivated or not, it has to be coming from the white house, coming from the administration. this goes back two years ago, the times square bomber when they leaked out the identity of the bomber. this was before the police had a chance to question him about it. he heard about it and took off for the airport. took heavily armed guns with him which could have put the nypd at risk. then the bin laden raid where they were spilling out information which secretary gates was furious about. then we find the stuxnet arrangement, which i'm not even at liberty to talk about. the drone attacks, the bomb plot out of yemen. this stuff is pouring out. there's always some leaks either accidentally or intentionally and usually one item or two items. but these are verbatim quotes they're giving from the oval office. talking about joe biden saying the israelis are the ones responsible for the mistakes with stuxnet. how the president sits there going over the list and thinking about st. thomas moore and st. augustine when he's going to authorize drone attacks. the yemen bomb plot which no one knew about, no one in the congress knew about it and yet, somehow the media found out, the associated press found out about it and this puts us at risk not just so far as the people involved in these plots but also our allies who are very reluctant to deal with us and work with us. >> the allegations that you're making are -- it sounds like from what you're saying, i don't want to put words in your mouth, but what i'm hearing is if someone knows what's going on in the president's mind or joe biden's mind, that means it came from them. that's an incredibly serious charge to make. >> it is. you're talking about conversations among very small numbers of people in the oval office or in the -- in the national security council in the situation room. we're talking about the people closest to the president. this isn't a big political gathering. we're talking about people with top secret clearances and it should be easy enough to find out who was at these meetings. when it comes out verbatim what's being said, who authorized what, how the program was begun, why it was continued, why it was discontinued, that has to come from people close to the president. and if the reporters are to be believed at all, this has to come from the people at the very highest levels. nobody else could this come from, especially when things and -- the quotes are exact and direct. >> sometimes people use quotes of what they hear may have been direct. they're reporting but it's not perfect. it could be a cia agent leaking a lot of this. it could be someone with a beef to pick and combined with other conversations where people say, look, the president takes this so seriously and to heart when he thinks about national security and what to do with drones he thinks of st. thomas moore, right? that wouldn't be the president doing something treasonous like leaking information at all. >> i'm saying being irresponsible and being careless. whether it's the president or the people closest to him. again, when you have discussions about what went on in the situation room, which is such a limited number of people who were there, that has to come from people close to the president. they have to know who it was. similarly with the drones, with the stuxnet, all of that is so highly classified and the way the information was delivered in "the new york times," in the books, it's clearly come from people right around the president. for instance, in the stuxnet story when joe biden says it's the israelis, they're the ones who had to do that. this was an oval office conversation discussing the compromise of one of the most sensitive programs, if we have it or not. i'm not even at liberty to talk about if we have it or not. you have the vice president of the united states being quoted directly. who else could have been in the room? you're talking about handful of people. >> we appreciate it. this an issue that we'll get a lot more conversation. now our fourth story outfront, police today linking a severed human hand and foot mailed to separate schools in vancouver to the same college student who was allegedly killed and dismembered by a canadian porn star. police are also looking into videos that they say luka magnotta may have posted while he was on the run for more than a week including one just before his arrest where he appears to be relaxing and listening to madonna. ♪ >> what's up and hi to all my fans. >> and we have a reporter who has been covering this. thanks very much. i know you have been covering this sort of day in and day out, one of the most bizarre and gruesome stories. what can you tell us in terms of how confident police are that these latest body parts that have come to the school are linked to the case? >> reporter: well, they're almost certain, erin, that they are indeed parts that belong to jun lin, the victim you mentioned earlier. they haven't completed dna testing. the parts were shipped from vancouver to montreal for that testing today. while there's no 100% confirmation at this point, police say because they are the right hand and the right foot, parts that were still missing, they strongly believe that they are jun lin's. the other fact that links it to luka magnotta is that they were posted from a montreal postal outlet. they don't know the exact location but they are fairly certain it is the work of luka magnotta. >> i know this is just an awful question, but i'm sure some people out there are thinking. we talk about all these body parts that have been showing up. do they know where the head is? do they expect that there will be more? >> reporter: the head is the body part that is still missing, and believe me, erin, police are very careful when they bring up these gruesome details, they are so graphic and obviously thinking about the family when they do so. but the fact remains, the head is still missing. whether or not it's in the mail, police say it's not clear. at this point it takes about ten days maximum for any body part to be mailed from montreal to any other part in canada, so the timeline in terms of where the parts showed up in vancouver fits that timeline. so we're reaching the maximum. if it doesn't show up in a couple of days in the mail, they're not sure where it is. they have looked at dump sites and they are looking into whether or not it may have been shipped outside of canada, maybe to the u.s., maybe overseas. they're still not clear. while they have said they don't need the head in terms of physical evidence, they do have quite a bit, they do want to obtain everything for the sake of his family. >> i know the victim's family did just arrive in canada last night. what do you know about them? >> reporter: they're devastated. they come from a province in china that is relatively poor. they arrived in montreal last night with the help of the chinese consulate in montreal. we spoke to a student representative who was at the airport to greet them. he said the mother was beside herself, could barely walk, they had to carry her and she was rambling and basically they could make out she had come to find her son and bring him home. they are very devastated. as anybody could imagine. this is such an incredibly awful story to find out about your own child. the community in montreal, the chinese community, especially at the university where lin was studying have set up two donation drives that we know of at this point to help them in their trip here and to get back home. >> thanks very much. still ahead, what's it like to have two brothers, one outspoken, that's an understatement, voice for the left and one an evangelical republican, equally as outspoken. billy baldwin, the same one, comes outfront. and we show you the most anticipated shoe in the history of footwear. people have been lined up at stores for eight days waiting for this shoe. this is no joke, seriously. tein. what do we have? 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>> yeah. that's exactly what it sounded like. yeah, it was loud. >> then you smell sulphur? >> mm-hmm. >> so gun powder basically? >> exactly. >> reporter: the third bomb in a salvation army sorting facility in south phoenix. >> literally blew up right there. >> reporter: this must scare the hell out of you and people here. >> it does, it does. we don't process flashlights right now. >> reporter: this flashlight is very similar to the one that exploded here at the salvation army. it has that plunger-like switch so when the employee pulled it out of the box, he looks at the front of the light to see if it would go on. press the switch and it exploded. so far only minor injuries. federal investigators say the bombs are sophisticated. the maker's unique signature on every device. each bomb identical in components, construction and design. a standard 6-volt flashlight. into it, the explosive, a small 9-volt battery wired to the flashlight's switch is then filled with bb pellets, other metal and all of it packed tight with kitchen sponges and other packing material. other similarities, the bomb placements and victims are random. dr. steven pitt profiles criminals. he says the bomber is possibly an angry male loner who is likely to strike again. >> if an individual is doing this for excitement, to be sure the corollary of that is, hey, i know a way to get even more excitement. i'll keep doing this but i'll do it at a little higher level or take things to the next level. >> reporter: investigators fear this bomber will strike again, maybe next time with a deadlier bomb. it's an all-out manhunt in a city gripped by a serial bomber. >> miguel is in phoenix tonight. do they have any suspects? i guess i'm just curious, we're talking about ieds. is it possible there is a military connection just because of the way they're choosing to attack? >> reporter: yeah, it is possible and certainly investigators aren't discounting any possibility of these attacks. what they do believe is that somebody has information out there that would lead them to arrest this person. so they don't have any specific suspects. there's no specific profile at the moment about who this could be. but they are certainly opening up the flood gates of investigation right now trying to catch this person before it gets deadly. erin. >> and how sophisticated do you think the bombs are, miguel? >> reporter: atf is calling them sophisticated. this is a person who understands circuitry. the bomb that ended up here at the salvation army sorting center, that may have been in a sorting box and been moved around for several weeks perhaps. so these are robust bombs. he's stuffing them with metal, clearly meant to harm. they could easily get much, much worse. erin. >> all right, thanks very much to you, miguel. very strange story. and now our fifth story outfront. actor billy baldwin is going all in on the story of an iranian cia agent who goes by the name reza kahlili. he risked his life to spy and tell his story in a book and he told me he's still afraid for his life. >> absolutely, i have no doubt that should my identity be revealed, they're going to take me out. they're going to take out a lot of people who are in contact with me within the revolutionary cause as i still reveal their secrets. >> now, his real-life spy novel is being made into -- well, it could be a hollywood blockbuster. billy baldwin optioned the rights to the book and he comes outfront tonight. billy, i was so excited when i saw this. what made you connect with reza's story? >> well, i connected to it on many levels. i was a political science major with sort of an emphasis on the arab-israeli conflict during the first reagan term. if you close your eyes and you listen, it sounds very similar to the themes that are going on today, you know, with the arab spring, going on in iran, going on in syria, in egypt and iraq, obviously in libya. and i think that it's very timely. i think that it's very topical. i think it's of great interest not only from a political standpoint or from an intelligence standpoint but also from a human interest standpoint. it's a great, beautiful, human story. >> how are you thinking you'll tell the story? a mini series, a movie? are you going to play reza? >> no, no, of course not, of course not. i would probably play his cia contact person, his point, if possible. >> yeah. >> but i think this is again -- this is not only an intelligence thriller and a military political thriller. what it's rooted in and it's going to be told through the prizm of this relationship between the three young boys. think of perhaps "kite runner." the three young boys who grew up on both sides of the argument. >> when do you expect this will be ready? >> this is a very dense story. i think it will might be better served if we tell the story as a limited series or as a miniseries, much like hbo did with john adams to tell this in three or four or five hours may delve into the material and get into a lot of the intricacies of an -- and the subtleties of their culture and of their way of life. >> but -- >> so we'll see. we have hurdles ahead of us. >> yeah. i'm personally very excited for it. one thing before we go, it's funny, i look up -- i look up your history. you know, i see all kinds of things and i go look up your brother's and i see things i don't see with you. you're both active politically, in passionate ways. i was wondering when you have one brother who wikipedia talks about him being an angel cal and you have another one who could be on occupy wall street, are you stuck in the middle? >> i'm not in stuck in the middle, but no, we tend to -- we treat it as if steven was dropped on his head at burst in the delivery room. we can't figure out what went wrong. you know, steven was very apolitical. i studied political science and i interned on the hill and i worked and served on the boards of many political organizations and run a few of them. nonprofit. i have great interest in politics. steven was never really involved heavily in politics until he had this evangelical calling after 9/11. then the bush white house started to call on occasion and he sort of got wrapped up and intoxicated by -- sort of swept away in that type of attention. i don't know. i think my brother and i have to sort of ideologically work him over and bring him back to his senses. he's toned it down quite a bit, actually. i have had many, many political conversations and by the time the conversation was over, he realized that he agreed with me and said, well, then why do you go on and fox and fair -- whatever they call it. fair and screwed up. and -- fair and twisted. >> you think alec is going to run for mayor? he's a new yorker. it's a lot of speculation. does he have it in his heart, do you think? >> i think that politically, i think he would be -- he already is very valuable. i think he would be very valuable. i'm not quite sure if he should pursue elected office. i don't know if he has the ego for this, but i think he's behind the scenes guy that would make an excellent chief of staff. i worry about someone with his temperament, you know? i endorse him. but i'm not making an announcement here today that he'll be running. i would certainly back him. >> billy, thanks so much. appreciate you taking the time. >> all right. all right. now outfront next, no real jewels. no real goal. on saturday, you can buy it at a shoe store. but if you want it today, it can cost you $90,000. we'll show it to you next. ♪ rocky, rocky mountain high ♪ ♪ all my exes live in texas ♪ ♪ born on the bayou [ female announcer ] the perfect song for everywhere can be downloaded almost anywhere. ♪ i'm back, back in the new york groove ♪ [ male announcer ] the nation's largest 4g network. covering 2,000 more 4g cities and towns than verizon. rethink possible. but proven technologies allow natural gas producers to supply affordable, cleaner energy, while protecting our environment. across america, these technologies protect air - by monitoring air quality and reducing emissions... ...protect water - through conservation and self-contained recycling systems... ... and protect land - by reducing our footprint and respecting wildlife. america's natural gas... domestic, abundant, clean energy to power our lives... that's smarter power today. mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. and then treats day after day... well, shoot, that's like checking on your burgers after they're burnt! 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[ male announcer ] one pill a day. 24 hours. zero heartburn. three years, you've probably heard the stereotype, that women love shoes. it might be time to give that idea the boot because this week across the country it has been young men camping out at shoe stores. why? the yizi 2 designed by hip-hop star kanye west. nike's shoe includes the anna conda. reptile inspired heel and a bird design on the tongue. it is available in platinum and black and the sole glows in the dark. it sells for $245. it will go on sale on saturday. the yeezy 2 is a weird name, i have to admit. it's the most anticipated shoe. i think it looks a little more like a moon boot than a sneaker. flashback to all those who grew up in the '70s and the '80s. moon boots are one of those trends like shoulder pads that shouldn't come back. maybe that's what kanye and sneaker fans like. who knows? everybody has their own thing. in case you haven't noticed, modern shoe fans have unusual tastes. not only in footwear, but birthday cakes. more and more boys have been requesting shoe cakes. not just any old shoe cake. i mean, that's a cake. detailed shoe cakes featuring their favorite brand, size and style of shoe. now based on the photos i saw most people's tastes leans towards nike. edible footwear isn't the craziest thing i saw today. that put a whole lot of disturbing images in my head, edible footwear. no. that would be this. a pair of yeezy 2s are currently already for sale. for $90,000 on ebay. breaking news, the shoe has just been sold, 84 bids.