is being investigating for his taxes showing others how to pay theirs. our slogan is nameless at this hour. coming up next hour. it will be just as -- probably more informative. "fox & friends" starts now. >> it's miss america, 2009, katie stam. you're watching "fox & friends" in the morning. my favorite show. >> can't beat that kind of endorsement. look who's back. gretchen carlson joins us on this tuesday. >> miss america pageant coming up straight ahead on this show. there's been an earthquake in new guinea on the western coast. its magnitude was 6.2. there's been no word of any damage or injury. details are still coming in at this hour. we will bring you any new information as soon as it becomes available. good news for toyota owners. parts to fix the recalled vehicles could start arriving at the dealerships today. millions of cars, as you know, recalled due to the sticking gas pedals. toyota says repairs should only take about 30 minutes. to see if your car is affected

by the recall, go to foxnews.com and we have the whole list for you there. defense secretary robert gates will reportedly announce the military's first in-depth study on allowing gays to serve in the military at a senate hearing this morning. u.s. officials say gates will appoint two pentagon officials to conduct the review that will take one year. president obama promised to end the don"don't ask, don't tell" policy in his state of the union speech last week. new video of the jail cells where those 10 americans arrested in haiti are being held. members of the baptist group were arrested for trying to take kids out of the country apparently without any permission. 4 in fact, we're learning that some of the kids were not orphans at all and have living family members. haiti's prime minister said they knew they were wrong but adds the courts may be lenient if the americans were simply acting in good faith. the prime minister also says that he's open to having them tried in the u.s. because haiti, of course, cannot handle any kind of a trial right now. you knew rush limbaugh could talk but did you know he could

dance? i saw this in person, folks. check this video of limbaugh showing off his moves at the miss america pageant. he was one of the judges. >> let's see it! >> whoa! look at him! oh, let it go! >> wow. >> look at that. >> oh, my goodness. >> he was the best dancer of all the judges. >> did you speed up that tape? >> he was moving that fast. i got a chance to sit down with rush. part one airs tomorrow morning. this morning, the winner, miss have or miss america will join us in the next hour. >> rush mentioned he talked to you on his news and notes. it was the first mention. look at that. >> that was very nice of him. a lot of good things to say about the pageant and interesting tidbit abouts his own political future which you'll find out tomorrow. >> wow. meanwhile, talking about politics, president of the

united states is going to head up to new hampshire today where he'll hold a town hall meeting on jobs and the economy. pushing his agenda. joining us right now with a preview from washington, d.c., molini wilkes. >> the president will announce details of a small business lending plan at his town hall today in new hampshire. it's a proposal he first mentioned in his state of the union speech last week directing $30 billion towards smaller local banks to jump-start lending to small businesses. the money would come from tarp funds but it would be a separate program. and the administration will ask congress to exempt participating banks from some of the tarp restrictions including limits on executive compensation. one administration official acknowledged that some banks have hesitated to take tarp funds because of those restrictions and also because of concerns they might be perceived as weak or failing if they took bailout money. this new program provides capital to small banks on a sliding scale. in his remarks today, the

president plans to say "the more loans the banks provide to credit worthy small businesses, the better a deal we'll give them on capital from this fund." now, this will be the president's second town hall meeting in six days. he was in tampa, florida, last week with the same message that fixing the economy is now his top priority. he will say today that small businesses are the engine of job growth in america and that jobs are his number one focus for 2010. and today, the president will also talk about his other small business proposals and tax credit for hiring new workers plus tax incentives for investing in new plants and equipment. >> he's got a busy day as he heads to new england. all right, thank you very much for that live report from d.c. >> if i told you that senator lindsay graham is leading the charge to get these terror trials out of civilian court as a former jag officer and a republican, you would not be surprised to know that joe lieberman was a part of this request and that john mccain would be by his side. >> that's all part of the same

posse. >> but when these two democrats and possibly joined by evan bayh who mentioned it on sunday joined lindsay graham, i think the president has to take notice. >> obviously, they are part of a bipartisan bill that lindsay graham will be introducing. we're talking about jim webb, the virginia senator and blanch lincoln, the democrat from arkansas. they're going to join him in saying they do not agree that these trials should happen in new york city. interesting point about evan bayh is he seems to be upset about the cost of having it here in new york city. $200 million. >> a year. a billion over five. >> a heck of a lot of money. >> it is a lot of money. so what this group of senators, democrats and republicans are going to do, they're going to try to attach an amendment under the first thing that comes down the pike and it looks like it could be that much ballyhooed jobs bill so they would attach this bill, rather amendment to the bill that would say, all right, we're going to pull the funding for it. now the reason this is important is there's a story -- remember

on friday, we told you that the white house was sending out signals. it's not going to new york. this morning, there are stories that apparently during budget talks yesterday, one of the acting attorney generals said we haven't made a decision. new york is not off the table. >> senator schumer said don't do it. commissioner kelly said i really don't recommend it. mayor bloomberg says it doesn't really seem to make sense. all democrats and one independent and mayor bloomberg. i'm wondering why they haven't pulled out of this. in his budget, in president obama's budget, he has $540 million to build the illinois prison. $73 million to transfer these prisoners to the u.s. and, of course, for the terror trials, it's all figured into the budget. >> but here's the problem that a lot of people have with it. it's not about the money. >> yes, that's a heck of a lot of money. >> especially now. >> but it's about how this whole thing has played out. now, democrats can probably take cover in saying that it's about the money and trust me, that's what's going to happen when they decide to change their minds.

here is what president obama said about the threat level of having a civilian trial in new york city just yesterday. >> some of it, people being legitimately scared about if we've got somebody who we've been told is a terrorist in our backyard, will that make us a target? one of the things that we've had to try to communicate to the country at large is that historically, we've tried a lot of terrorists in our courts. we have them in our federal prisons. they've never escaped. and these folks are no different. but it's been one of those things that's been subject to a lot of, in some cases,you know, pretty rank politics. >> not rank politics. if you're a restaurant owner, if you need to get back and forth to the city to go to your job, you can't get through. there's going to be a ring of security, number two and no one can deny this, c.i.a. and f.b.i.

will tell you that key intelligence got out in the first world trade center bombing in the investigation. if you want to see khalid sheik muhammad and the sketches in the newspaper every day ranting and raving about your country, if you think that helps the war on terror, i mean, they're already finding inspiration in c.d.'s coming to us from overseas. now, their inspiration could be at 23rd street and fifth avenue. >> absolutely. we've got former attorney general for the united states casey with us. he'll be joining us promptly. he says they should do that at gitmo obviously because they built the facility just for that. let's talk a little bit about the underwear bomber. we want to know more about it. and they had a little hearing about it up on capitol hill on wednesday. >> the only problem is the homeland security chief, janet napolitano, you'd think she would be the most important person to be at this hearing who they would want to hear from first. but she was not there. apparently, back from some sort of a trip and still too tired to

attend? well, people in her own party were very upset, outraged, in fact, that she didn't make an appearance. >> i have to echo the sentiments of a number of our colleagues today who i'm very dism dismayed that the secretary isn't here. it's probably fair to ask where the hell secretary napolitano isn't here? i'm incensed frankly that she's not here and i think the president of the united states should ask for the resignation of secretary napolitano and get somebody there who is not in lala land and frankly, i think she's in lala land and i don't know who else in your department is but whoever is, they need to go. >> talking about aviation security, came back home. was home. but had a meeting with representatives from a think tank rather than walking across the hall or down the block to be -- to attend this conference. a democrat came out as well, i'm

personally very disappointed that she isn't here. >> yeah, apparently she did call the guy who heads up the committee and said, you know, i'm not going to be able to do it. i'll send a deputy. >> no, this is a reportage as reported by politico. apparently she said to him, you know, i'm going to send a deputy and everything will be find. nonetheless, the democrats on this particular committee didn't know. she wound uppish uing a statement that said essentially that we worked this out although the democrats didn't know. >> if you're in the administration right now, do you want to show up at any hearing based on this topic? no, you don't. now you have members of your own party against you. not to mention the american public. it's been interesting to see this whole thing has changed tide within the last five to six days. the whole thing has changed. >> you know why, gretchen, in my humble opinion is people see their own political future as well. they're hearing it from their people. no one cares if you're a democrat or republican.

they care about terror. they care about budget. they care about the economy. >> speaking of scott brown, we'll show you the action figures. when he won in that stunning victory, everybody said it was about health care and underlying issue was also terror and that came to the forefront now in the week past that. speaking of scott brown, i'm embarrassed to hold this up. i did just return from las vegas where i saw a heck of a lot of this kind of stuff. >> what are you talking about? >> men without clothes on. >> there are three different versions of scott brown, our own buddies at hero builder in connecticut have come up with a -- that's right, a scott brown posable action figure, as you can see, he is posable. there are three different ones. this is the 2012 executive scotted brown. he looks almost presidential. brian has got the scott brown every man. >> you can see white t-shirt, jeans and sneakers. scott brown, you know he's in good shape. this is bigger than arnold schwar schwarzenegger in 1973 pumping

iron. >> i have mine -- >> the cosmo. >> he's got a fig leaf. >> don't look at any possible angle underneath the fig leaf because -- >> oh, my goodness. >> do not show the profile. >> it is all there. >> all right. here you go. how much is this costing, do we know? >> they are $35 at herobuilders.com. according to the boston papers, if you are a massachusetts voter, and you put in the coupon code boston, you wind up with a 10% discount. >> and he's going to be confirmed next week, right? >> on thursday. >> that should be fantastic. i'm sure that's going to be good. both sides -- >> what are you doing to his chest? >> his back has an impression having a guy that has the kung fu grip with the g.i. joe and had another guy, when you press his back, he chops things up. >> the hatchet. >> the hatchet. >> chopping the budget. >> i'm feeling very uncomfortable. i'm going to put this one back over here. >> right, you know what? the fig leaf is moved. ok? >> coming up on the show --

>> as we all are. >> more action figures than this. the first primary of this election year and it's for president obama's old senate seat in illinois. republicans hoping to score another upset victory. one of the democratic candidates joins us here live next. >> and actor rip torn in court yesterday. after trying to break into a bank. they did. he was wrong. story straight ahead. [ female announcer ] pure ce sugar and the stevia plant. two of nature's sweetest wonders now in new sun crystals, the only 100% natural sweetener made with pure cane sugar and stevia. with just 5 calories a packet. new sucrystals all-natural sweetener.

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>> all right. it's 16 minutes past the top of the hour on 2-2-10 on a tuesday. quick headlines, the father of an airport driver accused in an alleged terrorism plot is now charged with trying to help his son get rid of the evidence. muhammad zazi is accused of conspiring to destroy or hide liquid chemicals in containers. he was in the denver court

yesterday. his case will be transferred here to new york. he is the father of a man who is charged with cooking up bombs made from beauty supplies that he got out in denver for attacks on new york's transit system. meanwhile, actor rip torn is expected to enter a rehab center also in new york later this morning. this after being so drunk, reportedly, when he broke into a connecticut bank that he thought the bank was his house. police say torn was carrying a loaded gun at the time and that's bad. the 78-year-old faces charges of burglary, criminal trespass, and weapons offenses as well. that's a quick look at the news. brian? >> steve, thanks. al-qaida claims to be fighting for millions of muslims but a new report has a surprising revelation and shows al-qaida is killing many more muslims than westerners. in fact, through 2004 through 2008, 85% of al-qaida's victims

were believers in islam. joining us right now, former c.i.a. counter terrorism specialist, michael shorer. you're the head of the bin laden unit and in charge of ridding us of al-qaida. does this help people like you get your job done? >> you know, i think it's kind of a wash. it's a very dangerous game to play from west pointe buzz what we're going to get now is claims from the muslim side that compared to what muslims have died, the americans have killed x number more and certainly our credibility is virtually nill in the muslim world so it's an important thing. i don't think it really helps much in any way except it makes us feel better. >> do you believe, too, as well because i've interviewed you before al-qaida's brutality has helped -- has helped the muslim world rise up and hurt al-qaida in the long run, right? >> well, certainly, moussaothea

much bigger threat. if he hadn't been killed, that certainly would have ruined al-qaida. that has stopped. he's more focused on government targets in iraq than they are on other things. >> you don't think, michael, it's a message to the nonmilitant muslim that these people professing to be your protector are really your killer? >> well, i think it's -- it will affect some people who are inclined to not like them anyway. the problem, brian, is at the end of the day, the grievances that lead people to support osama bin laden and his allies remain there whether it's our presence in iraq and afghanistan, our president on the arabian peninsula, our support for the israelis and that's really the crux of the matter. the choice for people who don't like us is to fight or to surrender. and as long as that's the choice, many are going to pick to fight. >> ok, michael. that's the reality of it. so the survey won't really help in the region.

thanks so much for joining us this morning. >> thank you, sir. >> all right. meanwhile, straight ahead, the race for president obama's old senate seat gets under way today. republicans hoping to score another win. one of the democrat candidates will be here live. big day for him and he's accused of cheating on his own taxes. congressman charlie rangle decides to dole out what else yesterday tax advice.

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>> welcome back, everyone. 22 minutes past the top of the hour. guess where all the eyes are today, on the illinois primary as voters head to the polls to pick their party nominees in the race for president obama's former senate seat. the dems not only have to carry the weight of his unpopular health care plan and economic policies they're also faced with the very public ethics scandal that stained the u.s. senate

seat. we're joined now by former chicago inspector general and u.s. senate candidate democrat david hoffman. we did invite his opponent, democratic candidate alexi gilunus, he declined to come on. good morning to you. >> good morning. thanks for having me on the show. >> you're welcome. so you're closing the gap now. it seemed to be a runaway race for your opponent but then he -- but then he got into some difficulty about his past bank, the broadway bank and also his ties to the former governor blagojevich. explain. >> yeah, you know, the polls have really closed dramatically and we know from massachusetts they can close quickly. an 18 point gap has gone from 12 to eight and the poll information yesterday showed it was too close to call as one of the leading anchors here said last night. so it is a very close race and i think there's a couple of things. one is, you know, as someone who is only 33 years old, only held two jobs, one of them was as the chief joloan officer of his

family's bank. that bank is on the verge of collapse, about to get bailed out by the fdic in part because of risky decisions that he made relating to customers like tony resco. the other thing is about 2 1/2 weeks ago, i started receiving newspaper endorsements and now we've received the endorsement of every single major newspaper around the state. from the chicago tribune and sun times all the way down the state. that's had tremendous momentum. people want somebody who is independent of the insider political establishment here. i think people have been seeing that regarding the work i've been doing. >> the president has endorsed the other candidate, not you. >> that's not true. the white house has stayed completely out of it. >> let's say he's friendly with the other candidate. >> well, no question. they have known each other and been friendly but, you know, what was remarkable, i think, to everyone in the democratic world here is this spring the white house was in a very public way trying to recruit another candidate even though mr.

giannoulias was already in. that candidate remains as attorney general of the state. they made it clear they were trying to recruit others after that. there is great unease in the democratic world with alexi giannoulias as a nominee for many reasons. he would have a gap with mark kirk on the other side. the scandals that would allow tony resco and blagojevich come into the election made people very concerned. i think as people have gotten to know me and people have been paying attention since new year's, we have been surging. >> let's say you win this primary today and go to the election against mark kirk. what will the effect, the scott brown effect in massachusetts have on you as a democrat trying to win? >> yeah. yeah, well, i'll tell you, what massachusetts has done has made it clear to people all around the country it will be a difficult year for democrats. people here in illinois are fed up with two things. they're fed up with what's going on economically, they're feeling so much economic pain and

they're looking for help. here in illinois a second thing is going on, people feel so burned with what's been going on with the inside political system. they are sick of political insiders and as someone who has never been a politician, as someone who has been in public service for 16 years and here, for the last 11 years as a federal prosecutor under pat fitzgerald, for four years as the independent inspector general who has taken on city hall and the machine and uncovered corruption and waste, people are angry about a government that too often has -- is beneficial to the clouded and the connected and the political insiders and i've been fighting against that system. so that's one of the main reasons that we've been resonating and we've been surging in the polls so if people want an outsider, if people want someone who has been fighting against what's wrong, a system that's stacked in favor of the powerful, that's why we're resonating and i think we're going to do very well against mark kirk who really has been a washington insider for almost 20 years. >> thank you so much, david hoffman speaking of mark kirk, the republican candidate. he'll be joining us in the next hour. thank you, mr. hoffman. and we warn you now, this video is disturbing. let's go off to the green room to see what the guys are up to.

>> we're talking about that video, gretchen. a high school student says he was just trying to pull his sister from a fight. instead, he got tased. did the officers go too far in this case? >> small businesses hoping to get a boost from the president's new lending plan. he'll unveil details today in new hampshire. that's coming up. small business owners and they'll tell us what they want to hear. and -- >> ♪ happy birthday to shakira she's 33 today. happy birthday. [ woman ] ring ring. progresso. i reached my weight goal thanks to you so i am ready to get back out there. alright. that's great. i want to personally thank you for 100 calorie hearty chicken rotini. well, it'not just me. you're so funny. i like you. [ male annncer ] progresso. you gotta taste this soup. a day on the days that you have arthritis pain, you could end up taking 4 times the number...

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>> well, they started arriving in punxsutawney, pennsylvania, as 3:00 this morning. one hour from now, punxsutawney phil will come out of his nest. if he sees his shadow, you know what that means.

>> that means six more weeks of winter. >> how am i going to know it's not a robot? >> well, funny you should say that, peta wants to replace the real groundhog with the robot because -- >> give me a break! >> it's true. we did this story a couple of days ago where we had the guy in charge of the event, he got the letter. he said look, we take care of him. punxsutawney is well loved and he's in a heated hutch and he has all sorts of -- >> he's a groundhog! >> he is a groundhog. they want to make sure he's not tortured. >> they want to make sure he gets to come out on his own. he's not taken out by a man in a black hat. >> although he'll be taken out by a man in a black hat one hour from now. >> or it could be a robot. >> the man or the -- >> i have to tell you, i haven't gotten a lot of sleep. that is one of the most ridiculous things i've already heard in my life. >> i'm pro robot. i'm tired of waiting for him to come out. >> it's another one of those things where peta is brilliant in taking stuff out of the news and trying to co-op it to their

own advantage. more p.r. >> beats spray painting people on the upper east side. >> although they may continue to do that. >> charlie rangel who represents a lot of parts of new york, does he represent the upper east side? i think so. he's a congressman from the state of new york and he apparently attended a tax event in new york city. i know you're going to say wait a minute, did you say that correctly? yes, charlie rangel attended a tax event. he's come under fire for not paying a lot of his taxes but here's what he had to say when he was there. >> strong result that we have in the collection of revenue and also providing acceptance for our government is internal revenue service. these people work hard every day and the more credit that we have, the more work that they have in making certain that the incentives reach the people that the congress and the president want them to reach. >> well, he's 79 years old and the last 18 months, he's been

under an ethics violation for -- >> not paying taxes. >> accounting errors that have cost him legal fees to the tune of $540,000. >> that was just, brian, in the final quarter of 2009. last year, according to "the new york daily news today" he raised money for his campaign. of the $1.3 million, he's spent $1.5 million on lawyers in the past year. so there you saw him yesterday talking up the i.r.s. you know, if you or i made these same mistakes, the i.r.s. would be coming after us. you would think that since they know his address, he's up on capitol hill, they would go after him but first, the house ethics thing has to go through it. but, of course, that's taking a very long time. >> and now instead of being the democrats are in power on an ethics violation, they have to feel as though can we afford this? can we have a symbol of the democratic party since the 1960's be under investigation for a year and a half for clear errors?

>> apparently they think it might go away on its own. all right, brian. kick off some headlines for us. >> i'll start right now. thanks for the introduction to my introduction. this morning, the former chairman paul volker will call on the banking committee to find the commercial banks, it would for bid them from engaging in propriety trading or going into business with hedge funds or private equity funds. he will ask the federal government to be granted resolution authority so it can take over or sell off large firms so get over that too big to fail thing. >> another fox news exclusive. conservative filmmaker james o'keefe spoke to sean hannity for his arrests for tampering with the phones in the democratic senator's office. he says he has three co-defendants dressed up like they worked for a telephone company. he claims they were trying to figure out why landrieu wasn't

answering calls from constituents about health care. >> there was no bugging, no wiretapping, no interfering with phones. not only was there no interfering with phones, we never thought about interfering with phones. never even occurred to us. so all that is completely false. a lot of these reporters just flat out, i think, slandered me. immediately off the gun, they jumped the gun on the story and we're still waiting for corrections from dozens of newspapers. >> meantime, we're learning that the top federal prosecutor in new orleans has removed himself from this case. brian? >> oh, police say more charges are on the way after watching video of this brawl involving fans and players at a high school basketball game over in pennsylvania. we warn you, the video is kind of disturbing. you saw a little bit of it. huge fights spilled out into the highway where a police officer tasered a 15-year-old. the fight broke out at halftime, he spoke about the pain he

experienced. >> it was like a stabbing feel and once i was on the ground, once i fell, this lady stood over me and i hurried up and tried to run. >> he will not face any disciplinary action from the school but his father wants action against those who hurt his son. >> meanwhile, president obama no longer shooting for the moon. this after killing nasa's $100 billion plans to return astronauts to the moon. the president wants to use much of that money for new rocket technology research instead. of course, former president george w. bush proposed the moon mission seven years ago. nasa says shutting down the program will cost about $2.5 billion in contract termination liability. all right. of course, we're -- we're -- it's time now for sports and here comes brian. >> yeah, we're talking a little super bowl. yeah, that's true.

by the way, write us if you could tell me this question -- if the flag that we put on the moon in the 1960's and 1970's, are they still there on the moon? >> the flag? >> not going to get blown over. >> you think somebody took it? >> i'm not sure. i'm just saying. >> let me tell you what's in the news. disturbing story first off, the wife of former all pro cowboy tight end jay novacek was found dead in an apparent suicide. cause of death appears to be a self-inflicted gunshot wound at the couple's home in fort worth, texas. autopsy performed today as police investigation continues. novacek won three super bowls with the cowboys in the 1990's. key player there. miami will host the record 10th super bowl and it will happen in a few days. it rained yesterday, though. the nfl says don't expect to see the game there any time soon again. city officials were told unless miami spends $300 million on renovations to now sun life stadium, the game will not return. upgraded sky boxes and glass roofs and a glass roof to keep fans from getting wet. it rained last time, remember,

just some of the requirements. city officials say fans and sponsors want to see happen. as we know, next time there will be a super bowl after this, fox will have it and it will be in indianapolis. where will we be? friday morning, join our show. we'll be at shula's in fort lauderdale, right? >> right on a1a. >> steve knows it well. and monday we'll be coming from there. >> i just twittered it for you. i said miami. i hope people can figure out it's fort lauderdale. >> just follow his voice. meanwhile, speaking of the super bowl, it's a time of football and feasting for most americans but what about our troops serving overseas? well, one retired army sergeant and his son started pizza for patriots almost two years ago sending pies from the u.s. to the troops and they're sending over 10,000 pizzas to iraq this week for the super bowl. the mission is to make the soldiers feel like they are at home for the big game. >> sergeant mark evans is here to tell us pizza, sir.

welcome. >> thanks for having us. we really appreciate it. fox takes care of the soldiers and i think i speak for all of them. >> you know who appreciates it the most are the troops. >> yes. >> they do -- their eyes light up when they receive it. they get so excited, you know, i think it's just because we ship it half way around the world and we're saying hey, you're doing a great job like our own kids, you know, they do good in sports or their grades. >> we've had you on for a few years now. how did it start? >> it started at my dinner table two years ago on the 4th of july. my son was eating deep dish pizza and my son said can they ship it there? i said we could do that. dhl came within 12 hours and said let's do this. as much pizza as you want. we raised the money, called you guys and you've helped us so much. we really appreciate it. this year, we're sending athletics protein milk for the soldiers, honey milk. >> is it good? >> it's super high procetein.

from america's dairy farmers. they're our original patriots. the farmers picked up their arms and fought for this country and this day, the modern militia is the national guard so our soldiers started that. >> now, one thing you're trying to raise money, though, for is july 4th. you also send over pizzas during that time. you still need help, how can help people? >> yes, they can go to our web site pizzas4patriots, any extra money goes to the next 4th of july. we're still raising money for this shipment and we're sending 500 footballs so the soldiers can eat pizza, drink protein and throw footballs at each other. >> fantastic. that's america in iraq. >> have you already baked the pizzas and shipped them over? >> we part bake them and send them. they get finished up there. >> just a little bit. taste the way mama used to make it. >> it will cook in iraq. >> let's blog about why pizza

smells so good even at this hour. >> is that from jeno's? >> one is from jeno's and one is from eduardo's. >> my son peter ate at jeno's last night. >> great pizza. >> it is. >> thank you so much. >> thank you. >> hey, do you guys do my exercise program, gretchen and ours from last year? have you been working it? >> every day. >> i don't know. >> gretchen and i eat pizza and you guys do pushups. >> i remember that. >> i'm all for that one. reverse.ate that one this year. web site if you'd like to help them out is pizzas4patriots.com. all right. >> good job. thank you so much. >> always a pleasure. straight ahead, a special bonus from judge napolitano and his series, the constitution. how the government has been violating the law of the land and how you can get his series. many schools are requesting it. >> and president obama unveils his plan to lend $30 billion to

small businesses at a town hall meeting in new hampshire today fortunate. we'll talk to a panel of small businesses owners from the granite state. what they need to hear today. >> 25 years later, hollywood a biggest stars remaking we are the world.

>> if you're setting your watch, it's 46 minutes and 25 seconds after the top of the hour and some quick headlines, the judge is coming up. the head of the military's f-35 fighter program fired. defense secretary robert gates says the program run by contractor lockheed martin was full of inefficiencies and budget overruns, money to pay bonuses will now be withheld.

>> and celine dion one of the dozen stars remaking the classic "we are the world" to raise money for haiti. the stars are recording the song at the henson studios in l.a., the same place where the song was recorded "we are the world" back in 1985. it will premiere at the opening ceremony of the winter olympics later on this month. brian, gretchen? >> thanks a lot. you remember that five part series on the constitution and freedom with judge andrew napolitano from earlier this month? well, it was so popular and well received that a bonus segment has been added. take a look. >> throughout history, we have seen periods of time when the system worked and periods of time when it did not. in the series you are about to watch, you'll see times when we sent to the government representatives and presidents who loved freedom and feared big government or they understood what it was like to live under a

king. you will also see that in more recent times, we have generally sent to the government representatives and presidents who are more interested in power than in freedom and telling us how to live instead of leaving us alone. how did this happen? why did we lose freedom? does the government today even remotely resemble the one the constitution established in 1789? >> you can do the entire now six part series at foxnation.com and order it. fox news senior judicial analyst andrew napolitano has some examples of how our government has been violating the constitution today. >> no, just yesterday in the president's new budget, he wants to give the federal reserve the power to tell banks how to invest their money, to decide with whom they can do business, to examine the contracts they've already signed. now, you may say well, what's wrong with that? these banks are too big to fail. but the constitution prohibits the government from telling banks that contract that you signed is no good so we're going

to tell you to bust it. the constitution prohibits the government from taking money from banks because it thinks they've made too much. the problem is that throughout our history, so many governments have been filled with people who think they know what's better for us and aren't interested in our own freedoms. they have so disregarded the constitution, one would think that they haven't even read it. >> well, we know a lot of congress members don't rebuild so why would they have read the constitution? let me ask you this, judge, what about changing times? this was written so long ago, what about just a change in perception. you know, people look at the bible and think the same thing. >> it's a terrific argument. there's two schools of thought on this. the more liberal people, the more progressive people in the legal and judicial communities say the constitution is a living, breathing document and it changes with the times. the more traditionalist people, the people that believe in the natural law, the people who believe that the constitution means what it says today says it doesn't change with the times. it's a piece of paper. it's not living or breathing.

>> which ones do you think the judge is? i can't figure it out! >> coming up on brian & the judge a little later today, we have congressman daryl issa cracking down on those wasteful spenders. >> he got all of those emails from the a.i.g. fed deal that showed that. reveal that. >> and an outstanding economist to talk about the president's proposed budget. >> see you in a few. >> good job. >> steve, i'm sorry i laughed before. >> it's ok. >> he didn't have his espresso yet. >> all right, judge, good to see you. the president will roll out his plan to help small businesses in new hampshire tonight but will the plan be enough? we'll hear from three business owners in that state coming up next. >> and our newest miss america. >> caressa cameron from virginia next hour live.

>> the president just proposing today, $30 billion for small business loans and other incentives. but with plans to let the bush tax cuts expire for those making over $250,000 a year, small business owners may now be able to hire obama head, may be able to hire president obama heads to new hampshire for a town hall this afternoon. we're joined by three small business owners from new hampshire, john dickinson, owner of c.n.i. consulting, andrew hemingway, owner of hemingway consulting group and paul steven, owner of in a pinch and still in a pinch cafes. good morning to all of you. >> good morning. >> all right. john, let's start with you. i understand that if -- and it sounds like the bush era tax cuts are going to expire. you're going to get hammered, right? >> yeah. well, let me just say, you know, i'm glad the president is in victory lap that he seems to be on is finally coming to an end.

i've been waiting a year to hear his plan for helping small businesses prosper. and for creating jobs. >> all right. >> and we have finally hit our stride in 2008. and we paid off debt and we had a little left over at the end of the year. and we planned on reinvesting that in the business and getting a software engineer to help us grow and instead of being able to do that, i'm paying a massive tax bill that i got. and i'm telling you, we suffered when our company was first starting out. we didn't make a lot of money. >> right. >> and we finally see a profit. we see a little bit of reward and the government swoops in and takes it and it really affects our ability to grow our business. >> uh-huh. now, andrew, you're going to be at the town hall in nashua later today. you're one of the rich people they're talking about. if you or your business makes over $250,000 a year, how do you

feel about these tax cuts going away? are you a rich person? >> well, no, i mean, i'm not a rich person and my wife will verify that. but, you know, these -- these tax cuts that bush put into place are really at the crux of this entire issue and what we've been hearing from president obama is about jobs, jobs, jobs. the problem is that so far, it's just rhetoric. and really, it's the same campaign rhetoric that we heard about with -- when joe the plumber came on the scene. and -- >> going forward, andrew, if they do bring out these tax cuts, will you be able to hire new employees? that's what the president wants to do, jobs, jobs, jobs. >> no, of course we wouldn't. it impacts business across the board. not just my business but a number of businesses. and, of course, we would say, you know, we're not going to be hiring more employees, we're not going to be, you know, trying to add people. we're going to be, you know, really hurt by -- by any sort of

situation like this and trying to really just make it in the economy the way it is right now. >> ok. all right. paula, going forward, how will this impact you? >> well, we -- you know, we need the customers. the jobs will come after the customers. we need the revenue coming in. we need the fear going away. and it's all a round robin effect. and we need the customers and then we could hire the employees. we have struggled keeping the employees that we have. they do an excellent job. i'm working a lot more hours so is my business partner. and, you know, we just need to stay focused on the work. i can't even begin to think about all that other stuff. it's not relevant at this time. everything is out of control. all the costs of running a business. >> you know, the -- it's a very populous think right now, the president says we're only going

to raise the taxes on those making $250,000 a year or more. that impacts a small business owner like you that opened up a new store last year. are you a rich person who is about to get hammered? >> no. i would love to be. i mean, money is not my main focus. my passion is the company and the customers and the community. and i love all that. but no, by no means rich. i mean, the money is hard to hang on to the money now. >> yeah. >> when you opened in the 1990's, the original store, you could make money, you know. it was fabulous. and you could think about growth. but the second store opened 3 1/2 years ago which was on the brink of everything and, you know, we had a captive audience. >> sure, and i know this is a challenging time for all of your businesses, as paula had the last word there, it is a struggle these days. we'll find out what happens. thank you all for joining us today. >> you're welcome. >> from new england. all right. >> thank you very much.

>> you bet. meanwhile, president obama's new budget getting put to the test on capitol hill today. up next, glenn beck puts it through the ringer. that's him right there. stand by, you're going to put it through the ringer and all eyes are live on punxsutawney, pennsylvania. phil, the groundhog is about to pop out of the hole. what the heck -- he's not going to take off all his clothes, is he? this is the card that bought the saw... that cut the lumber... that built the extra space i needed to store more produce... that she sold to me to make my menu more organic. introducing ink from chase. the card that helped make it all happen because it's accepted in twice as many places worldwide as american express.

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and, you could save up to 20% on your homeowner's insurance. call now-- and get the system installed for just $99. broadview security for your home or business - the next generation of brink's home security. call now. >> hey, good morning, everyone. it's february 2nd already, 2010. hope you're having a fabulous day. thanks for sharing your time with us. president obama's $3.8 trillion budget under the microscope now on capitol hill today. this is what glenn beck is saying. if this were your budget, you'd be jumping out of the window! uh-oh. we'll let him explain coming up next. >> the administration under attack from its own party. two democrats join the fight to keep the terror trials out of civilian court and former attorney general michael mukasi says the administration is flat out wrong. he would know. he'll be here live. >> and she's living out her life long dream. newest miss america, caressa

cameron will join us live this half-hour. there she is in our green room. that is painted red. meanwhile, our slogan comes from carmen in charlotte, north carolina. stumble to get to the shower from the kitchen and wake up with the best, gretchen, steve and brian. didn't rhyme. i tried to change it. >> didn't happen. >> you're watching "fox & friends", that's a great way to begin your day. >> i think she got the three names right. at this hour of the morning, that's a good achievement. >> our names are easy. a tough name is punxsutawney phil. try spelling that, people. in 27 minutes, punxsutawney phil will come out of hiding. will he see his shadow? will we wind up with six more weeks of winter or will there be an early spring? we'll find out live from punxsutawney, pennsylvania, this half-hour. >> take out your tank top. >> in the meantime, let's get

to a couple of headlines for you. we start with a fox news alert because there's been another earthquake. this time in new guinea. it struck 29 miles under the sea. its magnitude, 6.2. there's been no word of any damage or injury. details still coming in at hour. we will, of course, bring you any new information as soon as it becomes available. 10 years after an airfrance concord crashed killing 113 people, a french court now looking for answers. a trial begins today looking to see who or what is to blame. the airfrance concord burst into flames shortly after takeoff and crashed into a nearby hotel. prosecutors say the accident would not have happened if a piece of titanium from a continental aircraft didn't drop on to the runway. continental says the fire broke out even before the plane reached that metal. continental and two of its employees were charged or are charged with manslaughter. the five muslim-american men detained in pakistan for having alleged terror ties swearing

their innocence in a pakistani court. three cities are in the running to host -- this is a totally different story. but anyway, back to that particular trial, we will bring you the update on that for those men who are being tried now in pakistan. >> can you do a coffee story? i'm looking for mine. >> i was going to tell you three cities that were up for the republican national convention. let's see if i can do that. tampa, salt lake city and phoenix, i believe. did i remember correctly? i hope so. americans love to drink coffee. it seems brewed coffee isn't percolating many taste buds according to a new "consumer reports" survey. under 37 caffeinated and decaf blended coffees, none rated excellent or very good. tasters scoring them, put it there. top three caffeinated blends are starbucks house blend, green mountain, and of course, dunkin' donuts and the top three decaffeinated brands, allegro, starbucks decaf. they should figure out the best combo of taste and price instead

of going for the familiar brand. those are your headlines. >> why doesn't glenn beck do coffee stories on his show? we'll talk to him about that in a moment. but first, big news out in illinois. the first primary election of 2010 may decide who will sit in the illinois senate seat once upon a time occupied by president barack obama. steve brown up early in highwood, illinois. steve, the revelation of the family bank -- one of the candidates out there lost $75 million last year. how much is that going to hurt that guy? >> well, it was having a drag on akexi giannoulias's campaign prior to the final balance sheet coming out for 2009, had been anticipated by a lot of members in the media about what the bank's finances were in and the reason why it's such a big deal is that in 2006 when giannoulias first ran for state treasurer, this was one of the major pieces that he was a community banker s and knew the neighborhood and

was helping people in the bank and now it turns out that the bank's finances are upside down. a lot of that tied to the real estate market certainly. but a lot of questions being raised about what role he played and he hasn't been totally forthcoming about what role he played in some of those loans that went bad. steve? >> and steve brown as well, his rival has been pounding this. could that tip the race because this is the primary. >> it was an issue even before yesterday's announcement because the bank went into consent agreement with the fdic to recapitalize the bank so david hoffman has been talking about this for weeks, months even. but the consensus of opinion amongst democrats is that while it certainly is an issue that cuts in his favor, the question is whether or not there's going to be enough turnout, whether or not there's enough time, whether or not he's got enough money to be able to capitalize on that particular issue to pull giannoulias down who has been in front in every poll for months. >> all right. steve brown reporting live from one of the suburbs of chicago on

this, the illinois primary day. by the way, our representative mark kirk, republican candidate will be joining us in 40 minutes live from out there. >> let's bring in glenn beck. you've waited long enough. the man is dressed casual and making it work for him. >> why no coffee stories on the beck report? >> i don't drink coffee anymore. i used to drink dunkin' donuts. >> do you mind if people drink coffee in front of you? >> i'm so offended, oh, my gosh. >> all right. so you're just back from your -- you were on the road with bill o'reilly. we're going to get to that. >> lots of fun. >> i'm sure you were keeping track of the news. >> yeah. >> while you're away and one of the things unveiled yesterday was, of course, president obama's budget. >> isn't it fantastic? i love it! >> there's a lot of differing opinions out there but i have a feeling that you have a very strong one. >> only trillion and a half. that's it. that's all. that's all we have to worry about. and there's all kinds of neat little things in there like magic money coming from, you know, things like cap and trade which we don't have. i think that's fantastic. i love that. here's the real problem with the

-- the budget. i got a briefing yesterday from somebody in our intelligence service. that's talking about how we're no longer putting china at the top of our list anymore for spying. >> really? >> now, why wouldn't we do that? why isn't china at the top of our list? >> they should be. they learned it. always hacking into our computers. >> same reason why during the bush administration when we were running these deficits i was talking about, bush stopped with the deficits, why aren't we complaining about poisoned toys that they're sending over? because we need their money. now, we're taking them off of our spy list. that's crazy. it's insane. >> well, the interesting thing is and you're talking about that huge $1.6 trillion deficit. right now -- >> that's relative really. huge. >> yeah, but we borrow now $1 out of every $3 to pay down the debt. >> wait until interest rates go

up. this is, you know, the thing that is really important to understand is we haven't hit our interest rates. exactly what happened to our mortgage system here where everybody was like hey, my gosh, look at this free money, how cheap it is. borrow, borrow borrow and the interest rates were jacked up and this is exactly what we've created with the federal government right now, cheap money. we're buying stuff that we can't afford. interest rates go up and we're in deep trouble as a nation. >> a lot of people have become so immune to the deficit growing and growing and growing. until now. >> you need to throw some water on it. >> until now. some people are saying it could become a national security threat. >> it is. >> in what way? >> it already is. you've got china. why are we looking at china as a spy anymore? why -- i mean, they are number one. if you look at what is happening in our pentagon, talk to anybody in d.o.d. and they'll tell you

that china is attacking our defense infrastructure on a daily basis. >> the obama administration is sobering in on that. they come in and chip in more arms to taiwan. we seem to be a little bit more aggressive now. how much longer can we be this aggressive? i think the policy of engagement with china has been a flop and i think they realize that. don't you agree? >> look, if you look at the history of money, why does everybody hate banks and everything? turn of the century last time in the late 1800's, america went bankrupt. didn't have enough gold. j.p. morgan, j.p. morgan chase, j.p. morgan came in and said i'll tell you what, i'm going to loan you all this gold. i'll give you enough gold, i don't remember what it was. give you all this gold so you don't go bankrupted. nobody liked that because we were indebted to j.p. morgan. didn't like that. that's bad. >> sure. >> now we're indebted to the chinese. how is that any better? >> and other countries. let's talk about what happened with scott brown, if we could. scott brown, he said i'm fighting for you. it's my seat. i'm not republican.

i am a populist. >> i'm a scott brown republican. >> right. now, democrats seem to be saying progressive is a nonstarter. democrats seem to be saying i'm fighting for you. >> i said this is happening about a month ago. i said you watch, i told my radio audience, watch for the signs. th they're going to back underground and call themselves populists, the progressives are. the reason why, it's their policies. turn of the century last time, they came out and they were progressives. republicans and democrats, progressives. they so discredited themselves that they had to go underground and call themselves liberals until they so discredited the word liberal and then they came out and said oh, my gosh, we're progressives. early 20th century progressives. their policies is what matters. you can call them flying pigs, it doesn't matter. >> up until recently, it didn't matter, you're right. you could call yourself almost anything and it didn't matter. >> they're going to try to again. they're going to try to change their name from progressive to populists. it doesn't matter. look at their policies. the policies are the problem.

>> still going extremely well, correct? congratulations on that. >> thank you very much. >> that's the kind of success that can really break you out as a talent. >> try it. >> congratulations on your stage show. >> thank you very much, bill and i had a great time. >> behind the scenes, you even talk to each other? >> you know what, bill and i -- i do. strangely, we have become the strange -- it's like jerry and dean, what i mean? it's a strange -- >> you are going to wind up going on family vacations together. >> i don't think so. >> we'll be watching you later today. >> thanks. attorney general eric holder running out of options of where to try the 9/11 terror suspects. a former attorney general with what he thinks should happen next. >> and the newly crowned miss america is here. what she'll do for america. does she really get a room in the white house? the great taste

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>> well, while the department of justice considers where the 9/11 terror suspects should be tried, white house press secretary robert gibbs who is busy calling out the g.o.p. for stepping up pressure to have the child moved. -- trial moved. >> the attorney general believes that the best place to do this is in an american courtroom, tried in boston, massachusetts, zacarias moussaoui, the 20th hijacker was tried about 10 miles from here. testifying at that hearing, rudy giuliani who raised it up as the hallmark of the american justice system. i hope you'll ask mitch mcconnell and others why trying those terrorists in our courts during the bush administration was fine. we never heard anybody object to that. >> i tell you who we're going to ask, we'll talk to the former attorney general of the united states under george w. bush, michael mukasey. good morning to you. >> good morning. thanks for having me. >> let's talk about gibbs there on that chat show on sunday was talking about ask them about zacarias moussaoui.

>> ok. >> there's a profound difference between that particular trial and now. >> there are several differences. let's start with the fact that moussaoui was arrested before 9/11. i had him in my courtroom. >> right. >> secondly, moussaoui didn't go to trial. he pleaded guilty. and he -- his sentencing took a year. and he turned it into a circus. so i wouldn't put zacarias moussaoui out as an advertisement for trying terrorists. >> what about richard reed they argue? >> richard reed was arrested three months after 9/11. we didn't have military commissions in place at the time that he was brought in. so he couldn't be tried before a military commission. >> so there are big differences between then and now. >> yes. then was then, now is now. plus there are huge differences between the way you're supposed to deal with the guy who tries to stick up a 7-eleven and a terrorist. we have laws of war that encourage people to fight lawfully with uniforms following a chain of command, not targeting civilians and so on.

if they do that, they get p.o.w. treatment. if they don't, then they can be dealt with as unlawful combat t combatants and tried before military commissions. >> on friday, it sounded like there were sources inside the white house saying it's not going to be in new york. it's going to be some place else. we've instructed the department of justice to look for some other location. now, apparently, new york is not off the table according to the deputy or acting attorney general talking yesterday at a budget meeting. you feel very strongly that the only place to do this is at gitmo. why? >> several reasons. first of all, because gitmo has been custom built to deal with cases precisely like this. there's a courtroom that can deal with classified information, store it safely and electronically. there's a detention facility that can hold these people in a remote, secure and humane location. it was built specifically for these kinds of trials. secondly, new york poses a tremendous, the biggest, security threat.

>> sure. >> and as well, it is a mockery of the rule of law to take people who are charged with violating all the rules of war and put them in a situation that's better than the one they would have been in if they followed the rules of war. >> judge, the fact that the administration is vacillating in the message it's on in new york, it's off, it's on. does that make us look weak? >> it makes it look like amateur night down there. yes. it makes us look weak. it is weakness. and i can't understand the reason for the vacillation. i can't understand the choice to bring it to new york in the first place other than showboating. >> sure. >> there you go. all right, we'll find out what happens. judge, thank you very much for joining us live. >> thank you for having me. >> michael mukasey, former attorney general. from the attorney general to the brand new miss america, caressa cameron is here. she'll be joining us promptly and will he or won't he see his shadow? we're just minutes away from punxsutawney phil's big reveal.

we'll bring it to you live here on "fox & friends." yd

>> you're looking live right now. you're seeing the groundhog, there's punxsutawney phil. will we have a long winter? six more weeks or will spring be right around the corner? that's what i'm voting for. let's watch. >> ok, john and let's get phil up here. ok, big guy. what do you see? what do you think?

ok. i gotcha. i gotcha. au >> hear ye, hear ye, in gobbler's knob on this glorious day, february 2, 2010, punxsutawney phil, the seers of seers, the prognosticator of all prognosticators to the call of president bill dealy, he greeted his handlers. after casting a joyful eye towards thousands of his faithful followers, phil proclaimed if you want to know

next, you must read my text. as the sky shines bright above me, my shadow i see beside me. six more weeks of winter it will be! don't shoot the messenger. >> we are doing numerous interviews here with the media. once we do that, we're going to line up. i'll have you come up this side here. you will be able to get your picture taken with phil. stand here and do that. and also, too, you who are going on the bus, please do it in an orderly fashion. those of you who are going to walk down, please go out in the field and walk in the designated area down to the town -- >> phil, phil, phil. if you would have seen it the other way, then maybe they wouldn't replace you as a robot

next year. that's what peta wants to do to you, buddy! you had to come out and say spring was right around the corner. all right. we look forward to that every week. we have six more weeks of winter. guess what happened saturday night, the newest miss america was crowned in vegas. watch this. >> miss virginia, caressa cameron! >> what an amazing moment and she's live with us. congratulations. >> thank you so much. >> i was so fortunate to be there live and be part of the group that you are now in. >> yes. >> i know you're going to get sick of this question all year long. but you did it and how does it feel? >> it is so exciting. it's so amazing to have all of your hard work just come together and pay off. and i'm so excited about this job. words cannot tell you how excited i am and how ready i am for this position. >> it is a job. >> oh, yeah. >> your personal platform is

actually h.i.v./aids and you have a personal story. >> yes. yes. i lost my uncle to aids when i was 8 years old and also my family cared for a foster child who dealt with juvenile aids. so it's something that is very near and dear to my heart. i'm very excited about the children's miracle network because they care for 76% of young people who are living with juvenile aids. so i'm excited with that partnership because they actually co-relate with each other. >> right. miss america does have a partnership. >> yes, she's a good will ambassador. >> here's the thing, folks. this lady can sing. >> thank you. >> she went on stage and i'm telling you, she wowed the crowd. she wowed all the millions of people who were watching. you sung "listen" from "dream girls." >> yes, the movie when i saw it was absolutely amazing. i knew that would be the perfect song if i could get my hands on it and it could clear. i was happy because in an organization like miss america, we want people to listen to us. we're coming into our own. i thought it was a wonderful song. >> rush limbaugh was one of the judges. here's what he had to say about you in summing it up.

she won because she has it all. extraordinarily good conversationalist, amazing presence, unique and classic beauty, glamour and what i just said, and the girl can sing! >> how sweet! how sweet. >> was it tough to have rush limbaugh be one of the judges and look him in the eye for that minute interview? >> you know, coming into it, i was a little intimidated. i have to be completely honest. when i got in there, he was so nice. he was about his job. he said coming into this competition, ehe wanted to do te best job he could to find miss america. i think he did a great job. he was very nice. very sweet and nowhere near where people thought he was going to be. >> he took his job seriously and he said many of the contestants knew more about politics than members of congress. so he really enjoyed his experience there. now, you are a senior at virginia commonwealth university. >> yes. yes. >> and you do eventually want to sit on this curvy couch. >> absolutely. with you would be fantastic! >> you want to go into

television. >> yes, yes, i would love to do that and i think the skills i've gained through the miss america organization i think will definitely help when it comes to me finding my career path. >> one of the things at the end of the competition, the most nerve-racking part is the contestants in the final numbers have to answer that all important question on stage. >> yes. >> you did yours brilliantly. you were asked about the problem of teen obesity, and you said? >> i was talking basically the amount of time that children spend in front of tv's and computers, these are hours and hours that people could be spending outdoors. it's so important that we encourage our young people to being active as opposed to being stationary. that helps burn the calories. >> you are the third miss america now from virginia. >> yes! >> going to go on this whirlwind tour and i just want to say congratulations. >> thank you so much. >> and keep -- you know why miss america has to be young, because you do have amazing travel schedule. >> yeah. >> congratulations. >> thank you so much. >> thank you. >> good luck. >> thank you. >> coming up tomorrow on the show, i will be sitting down with rush limbaugh for the first part of my interview with him,

part one tomorrow. the next part on thursday. well, let's go back to gobbler's hill -- is it gobbler's hill, steve? >> gobbler's knob. >> gobbler's knob. >> it's punxsutawney, pennsylvania and gretchen, as we just saw on the fox news alert, six more weeks of winter. it means that punxsutawney phil, the actual groundhog saw his shadow. the people are now leaving the gobbler's knob area, as you can see right there. they started arriving at 3:00 this morning. and, of course, this is a tradition. you know, some people weren't familiar about it before the bill murray movie. this goes back to the 18th century. and originally they used a badger, some of them used a hedgehog. but, of course, in pennsylvania, the groundhog got the job. >> and you know what, steve? you can get a text from the

groundhog. they're apparently ahead of me in technology. >> these days they do. >> all you have to do is text groundhog to 247365 if you want to get his forecast delivered to your mobile device. what will they think of next? >> just any way to make it faster. we actually tried a little earlier to see if we could get the information early. but it was not available. all right. meanwhile, speaking of six more weeks of winter, real quickly, let's take a look at the day ahead weather wise. >> we don't need you. we have the groundhog. >> i know we've got the groundhog but look at this. we got kind of a wintry mix through portions of the central atlantic states back through the ohio valley and the tennessee valley and we have some thunderstorms rolling through portions of south carolina into georgia this hour. down through portions of florida as well. real quickly, let's take a look and currently it is really cold in rapid city. hang on, folks. six more weeks of winter up

there, too. it's only six but caribou, maine, look at that number. it is 12 below. that's the air temperature. the wind chill is substantially lower than that. >> like in minnesota, people there can handle it. >> they're hardy folks. meanwhile, teens in the northern plains. a lot of 20's. lot of temperatures below freezing at this hour. but things are going to warm up a little later on today in the mid atlantic where the storm is moving through and eventually raleigh will have 40. 50 in atlanta and 60 in new orleans. >> temperatures for the most part across florida in the 60's and in the 50's across much of texas but as you can see, in the 20's in the northern plains. >> amazing watching the super bowl stuff yesterday, it's raining. complaining about the rain. all right. ok. >> who will stop the rain? >> i'm not really sure, who sang that? sonny and cher. >> no. in the movie "groundhog day" that was one of the songs that went on the clock radio. "i got you babe" remember? >> i could listen to that nonstop. >> i remember chastity bono used

to come on that all the time when she was a girl. >> yes. >> right. that is before -- >> fox news alert. >> let's do it. fox news alert now, you're looking live in a second at washington, d.c. where the largest terror drill in history is about to get under way. the metro system will be tested -- >> that's union station, by the way. train station. >> yeah. and our viewer right around there. they are conducting drills this morning's rush hour on both trains and buses. no credible threat against the metro but d.c. officials say they always want to stay ahead of the game. more drills expected in the coming weeks. >> there you go. >> good news for toyota owners. parts to fix the recalled vehicles could start arriving at dealerships today. millions of cars were recalled due to sticking gas pedals. toyota says repairs should only take 30 minutes. to see if your car is affected by the recall, go to our web site foxnews.com and we have the entire list for you. >> if your pedal is sticky, don't drive the car. meanwhile, a breast cancer awareness bracelet is causing

controversy at a california middle school. administrators say the campaign is a good idea but the wording on the band is distracting some students. some parents disagree. >> i thought that it would get the awareness out in an easy way instead of saying look, breast cancer is going to kill you. do your exams. here, i love boobies, let's save them and make them approachable for their age group. >> school officials say the problem is some boys are starting to harass girls about the message on the bracelet. >> a close call for prince harry. check out this video. >> yep. >> the prince falling head first from his horse during a charity polo match in barbados. he was making a tight right turn. that's when his pony slipped throwing him to the ground. he wasn't hurt but it looks like he was a little annoyed. >> did you say pony? >> i don't know if that's the right lingo. >> i think it's horse. >> it's a polo pony. they're ponies. >> it is? the polo match was for a charity

that supports impoverished children in africa. >> we shouldn't have to tell the sports guy about sports. >> you're right. i should focus more on polo. that's an every man's sport. every kid in the streets of the city has a horse and a club and just wants to have fun. >> and a field. >> and a scrimmage. >> that's all. >> homeland security secretary janet napolitano has toured the site of sunday's super bowl near miami. and says the security plan is ready to thwart any threats. >> we are, as was mentioned, working hand in hand to ensure that super bowl xliv goes off smoothly, safely. >> when she was governor of arizona, about 1,000 federal, state and local federal personnel will be involved in security for sunday's big showdown between the saints and the colts. the f.b.i. says there are no credible threats against the game. and by the way, we're going to be at shula's in fort lauderdale on the beach, our guys are going down today and i hear it's beautiful. hope you can come down so this way, we can put you on television and salute the people of florida and around the

country who support "fox & friends" on a daily basis. we also have great guests who you'll be allowed to hug. meanwhile, talk about huggable, who is more huggable than steve and gretchen? meanwhile, get to that story in a second. want to play 18 holes with tiger woods? it will cost you $45. canadian retailer creative classics now selling a set of 12 golf clubs, each bearing a picture of the mistresses of the -- can i get through this sf>> that's wrong! >> please stop yelling at me. plus apparently, these ladies are -- oh, yeah, they're balls, not clubs. ladies are a hot commodity. in three days, the company has sold $40,000 worth of mistress collections. i believe we're up to 14. and attention, parents, tell your kids to play soccer instead of trying to become a bullfighter. here's why. 12-year-old from colombia gets gored by a bull during a bull fighting exposition. instead of retiring for the day, he gets back in the ring and gets gored again. the father gets the horns after

jumping in and trying to protect him. amazingly, doctors say both will be ok. the boy wants to continue bull fighting in the near future. that's a lot of guts. talk about guts -- they're huggable and gutsy. steve and gretchen. >> why do that? why not just wii fitness? it's safer. >> do they have bull fighting with wii? i don't think so. >> they ought to. >> many people plan to enjoy the super bowl with their friends and family over the weekend. we cannot forget our troops overseas. they are protecting our freedom there. >> navy lieutenant, we've got with us neil sheridan is here with what you can do to show support for the troops. good morning to you. >> good morning. >> great to have you here. you were sailor of the year a while back. >> back in 1999. >> how do we show, particularly the -- how do we show the support for the guys? >> there's so many ways to show support. i mean, some of them are very simple and not very time consuming such as wearing a yellow ribbon, flying a flag, anything from sending care packages to the troops overseas

or even nominating sailors or soldiers for this contest that operation home front with the support of jim beam is putting on from now until the end of june. >> and the way that you can do that, you can just text, right? you text salute to operation -- for the operation home front text salute to 90999. >> that's actually to make a small donation to operation home front. operation home front provides a lot of support to the troops returning from home, the wonder warrior program and everything else. but to actually nominate the sailors or soldiers in your life, you can call the 1-800 number which is 1-800-722-6098. >> ok. and then if they are selected, what sort of honor befalls them? >> it's pretty incredible experiences from v.i.p. sporting events to concerts, you get to meet the stars like kid rock and everything else. but yeah, so it's pretty amazing

experiences. >> and speaking of events, some are going to go to the super bowl. >> yeah, actually, we're going down to the -- >> this guy is. >> to the big game to kick this off and get this whole thing going. >> you're going to go down to facebook.com/jimbeam is the place to enter. >> you have a lot of web sites. >> other thing i got to bring up to you, neil, this is relatively breaking news. you bought jim beam with you, right right? >> for the crew? >> it is now gone. i don't know. the crew is not responsive. you bought two bottles with you? >> maybe some of the other guys. >> all in the green room. i'm telling you, never smelled the same. >> punxsutawney phil is -- >> in all seriousness, we should remember our troops this weekend. if we see somebody in the airport or, you know, anywhere, just say thank you to them, right? >> absolutely. i mean, you know, from -- just returning from iraq back in october, it means so much when you have a simple thank you or anything like that. by all means. >> you have that gift basket up

top. something else, you can send a care package to a soldier, a man or woman serving overseas from afghanistan to iraq. >> absolutely. >> you can get addresses from like local units in your area and, you know, it just means a lot when we receive care packages from people back home. just to let us know that they're thinking about us and everything. >> what is it like when you travel and people know you're in the military whether you're in uniform or it becomes obvious when someone recognizes you. what kind of response do you get? >> i mean, usually a lot of respect and admiration but the, you know, just means so much when somebody takes the time to say, just a simple thank you. >> just thank you. yeah, i can't tell you how many times my wife and i have bought guys in restaurants either dinner or a drink and you never go up to them and say hey, i just bought you dinner. you do it and get out. just an anonymous way to say thanks. a lot of people do that. >> absolutely. you know, it's very appreciated. >> all right. >> well, navy lieutenant neil

sheridan, thanks for bringing your thoughts with us this morning. we'll be thinking about the troops this weekend. >> good luck at the game. >> thanks. >> meanwhile, if you'd like the web site information, it's on all ours. >> meanwhile, straight ahead, president obama unveiled his budget plan, do it officially today all while blaming president bush. who is really to blame and more importantly, how will the president's plan impact your wallet and our deficit? >> who will take president obama's former senate seat? last hour, you heard from democrat david hoffman. up next, republican representative mark kirk, fair and balanced here live. >> leading in most of the polls. first, the verizon trivia question of the day --

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>> all right. placing blame. yes, president obama placing blame on the previous administration for a lot of the nation's budget woes. >> and our government is deeply in debt after what can only be described as a decade of prof g profilry. over the course of 10 years, they created an expensive new drug program, passed massive tax cuts for the wealthy. >> ok. and he's done something about that. fox legal analyst peter johnson jr. has the prescription for truth. were you amazed for him to unveil his budget and still rip president bush? >> it's become a joke now. it's unimportant ripping president bush and previous congresses. >> what's the reality now?

>> the reality is that president obama owns the highest public debt in 60 years and unless democrats and republicans and the president decides to make the hard cuts, to decide what is not really mandated anymore, then we've got serious, serious problems going forward in this country. to read an article by nal ferguson in the december 7th issue of "newsweek" he wrote a book called "the descent of money". he calls it the fatal arithmetic of imperial decline. and what he says is look at the empire, look at france, prerevolutionary france and look at great britain before the rise of hitler in world war ii when they were encumbered with like 44% debt and they couldn't arm against the threat. >> well, our debt is higher now than it was -- is it really akin to civil war? and world war ii? we said listen, as soon as we

get on our feet and the war stops, we'll pare down that deficit. we're on our feet. now what? >> we have a triple world war type of debt in this country. and when you look at the breakdown of the numbers, much of that debt is not attributed to the wars in iraq and afghanistan but -- >> or the prescription drug plan which he says -- that was a democratic plan that president bush signed on to that if the democrats had their way, would have been twice as big. >> it's a phony argument because the president is looking to increase the budget effectively in terms of the health care reform program but at the same time, bashing a program that assists a lot of americans with -- with prescription drugs. i mean, there's a disconnect there. the major disconnect, though so we've got to face up to the realities of this deficit spending that we have. and public debt. >> senator judd greg said i do think the american people are

ready for much tougher decisions than the congress is ready for. do you think the average american is willing to sacrifice because they're concerned about the relative debt? >> yes. because i think they're beginning to realize now that the stimulus didn't work, that so-called kings in economics with the suspended dollar and then get a multiplying effect hasn't worked. the biggest part of national growth, in fact, may have been cash for clunkers in the last year which is a government infusion of money. are we getting to a point where interest rates begin to rise, where we have stagflation, bizarre things going on in terms of the dollar. where we print more and more and more money. when we're more and more indebted to china and other countries. it's an untenable result and americans are looking for democrats and republicans to step up to the plate and make the hard choices. whether they have the will to do

that, i don't know. >> yeah. we'll have to see. we'll see how serious they are come election day in november. meanwhile, straight ahead, primaries being held in illinois today for the senate seat that belonged to president obama. last hour, you heard from david hoffman. up next, republican representative mark kirk leading in the polls. first on this day in history, go ahead, peter, tell us what happened in 1887. >> put my glasses on. first groundhog day is celebrated in punxsutawney, pennsylvania. used to be a sacred bear they used to worship. the first g.i. joe action figure made their debut. can i tell you this as well? number one charts on this date in 1964, "i wanna hold your hand." >> that's the name of the song! ring ring. progresso.

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>> answer to the verizon question, even i knew this one. it was way too easy. christie brinkley. winner is susan carlson, name last name. >> that was easy, too. >> this is a polling place in chicago where voters are heading to the polls. it's primary day today to settle the score in the race to fill president obama's former senate seat but with local democrats battling ethics scandals, will republicans take over president obama's democratic home state? >> we're now joined by illinois republican candidate for u.s. senate, frontrunner congressman mark kirk. good morning to you, congressman. >> good morning, you guys. >> morning. describe the situation in illinois today. a lot of people are coming to the polls for the primary. weather is always a concern. what's it like in illinois

today? >> it's snowing right now. i think some of the harder core voters are the ones that are going to turn out. i would say for the press, this is not the obama or burris seat in the senate, it's a seat owned by the people of illinois. >> there you go. that sounds a lot like what scott brown said a while back and people -- that resonated with him. you know, too bad you're not a democrat because on that snowy day out in illinois, you'd have the union guys driving the voters to the polls, right? >> that's right. akexi giannoulias is likely the winner in the democratic primary. he has the big union backing which is critical in illinois. but i think voters are ready for a change. they're very worried about the pelosi spending in the congress and there's the issue of moving gitmo to the heartland which most illinois voters do not like. >> oh, yeah. >> one of your possible opponents, hoffman, called you this morning was on with us this morning and called you out as a

washington insider. let's listen. >> people here in illinois, they're very fed up with two things. they're he had up with what's going on economically. they're feeling so much economic pain and they're looking for help. but here in illinois, there's a second thing going on which is that people feel so burned with what's been going on with this insider political system. they are sick of political insiders. that's why we're resonating and i think we're going to do very well against mark kirk who has been a washington insider for almost 20 years. >> all right. he's leapfrogging. he's putting himself in there. >> what do you think? are you a washington insider, congressman? >> well, david is a little angry right now because he's likely to lose his primary today. but i have served in the congress and also in the united states navy. last year, i became the first member of congress to deploy into an imminent danger area since 1942 and i just returned from afghanistan again just two weeks ago. it's bringing that experience in the war on terror, being a fiscal conservative who helped

kill the bridge to nowhere and someone who represents an entirely different political heritage of anti-corruption measures that i think the state of illinois needs. >> one of the things you might face, though, congressman is your shift on the cap and trade policy. it's true, right, you were one of the few republicans who voted for it but now you're against it. >> it fell too heavily on the rest of the illinois economy so in august, i announced that as a senator representing all of illinois with its interest in heavy manufacturing, agriculture and mining, that to be a pro jobs senator, i had to be against that bill. and i think with scott brown's victory, the bill has been killed. >> uh-huh. and congressman, i know you've been in congress for five terms, representing your district in illinois. what do you make of -- how do you respond to the critics who say, well, you know, he's a republican but he's not conservative enough. >> well, to win in a blue state, you've got to gather a

coalition of republicans, independents and even a few democrats to win. scott brown does very well. he's a social moderate and fiscal conservative and i think we're going to repeat that here. it is so important to take this seat back. and to be a check and balance on the spending and irresponsibility of this congress. >> we invited your opponent pat hughes, i guess he was busy. he declined the offer. mark kirk, best of luck today. look forward to seeing the results in an exciting race as we get set for november. congressman kirk, thanks. >> you bet. thanks, guys. >> you bet. coming up on the show, president obama vowed to rid washington of lobbyists influences. so why is the white house now the focus of a new probe? >> uh-oh. she's not -- that woman screen left is not an emperor or royalty but president obama did bow to her. the mayor of tampa is that woman and she will join us live in 20 minutes to tell us what that's about. >> and the oscar nomination announced this morning.

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laura ingram will weigh in on that. >> you would probably think our homeland security chief would be front and center at a hearing on the christmas day bomb plot. nope. >> i'm incensed, frankly, that she's not here. >> i believe that man is a democrat who is incensed. where was she? we will spill the beans. >> here is the other big story. punxsutawney phil makes his prediction. >> as the sky shines right above me, my shadow, i see beside me. six more weeks of winter it will be. >> our slogan this hour, i just have a hunch, i could smell it from here. from dan in oklahoma. the groundhog didn't see his shadow. he was busy watching fox. so because of "fox & friends," our spring begins fair and balanced.

never stops. the thing i love about the mottos is sometimes they are so close to rhyming. you want to help them out a little bit. we love them. keep them coming to us. >> except that one was wrong because he said spring was coming and phil said the opposite. >> it is coming in six weeks. >> some wish it could be here now. let's start with headlines. more testimony in britain for the third and widest ranging inquiry into the iraq conflict. the international development chief saying she warned then prime minister tony blair that the u.s. and its allies were unprepared, understaffed and underresourced to deal with the aftermath of the iraq war. she said the blair cabinet was misled into thinking the war was legal. british troops with drew from iraq last year. blair stands by his decision to send troops to iraq to work with american forces.

defense secretary robert gates will reportedly announce the military's first in-depth study on allowing gays to serve in the military at a senate hearing this morning. officials say he will appoint two pentagon officials to conduct the review which would take one year. president obama promised to end the don't ask don't tell policy during his speech last week. new video of the jail cell where those ten americans arrested in haiti are being held. the members of the baptist group were arrested for trying to take kids out of the country, apparently without permission. we're learning some of those kids were not orphans at all and had living family members. haiti's prime minister says the church members knew they were wrong, but he says courts may be lenient if the americans were simply acting in good faith. you knew rush limbaugh could talk, right? did you know he can bust a move? check out this video of limbaugh showing off his moves at the miss america pageant. he was one of the judges. #

♪ >> you can never see enough of that. i got a chance to sit down with rush, part 1 of my interview airs tomorrow. there is two revealing parts of that interview. he was a good guy. he loved judging the pageant. >> obviously he loves poker face. >> no kidding. >> leg gaga. >> it's groundhog day and less than an hour ago, punxsutawney phil emerged in pennsylvania to make his famous weather prediction. will there be six more weeks of winter? >> as the sky shines bright above me, my shadow i see beside me. six more weeks of winter it will be. >> bummer. phil making his prediction in men men among thousands of fans. he has only predicted on early

spring 13% of the time. >> how often is he right? >> according to their web site, he's right 100% of the time. >> look at bill murray. that guy, every year cease the tame guy and i year he keeps looking like phil murray. >> it feels like spring in portions of the gulf coast. we have storms moving in. these current readings and today's highs, 50 in memphis and atlanta and 60 in new orleans. chilly in new england. and also through the northern plains. meanwhile, the first primary election of 2010 may decide who will sit in the illinois senate seat once upon a time occupied by the guy who is now president. steve brown joins us from one of the precincts in illinois. big day for democrats and republicans out there. >> reporter: it is. this is going to be a day in which both of the candidates will be selected. in all likelihood, according to every poll that's been out, it

will be mark kirk will win today. we are in his district, the 10th congressional district. it will be interesting to see how he does out here and here is why. in the city of chicago, huge bloc of votes. 3 million folks. but in the suburbs and around the city, 6 million votes. that is where a lot of statewide elections are won and lost. whether or not you can win in the suburbs. it will be interesting to see, giving an indicator to see how kirk may do in the general election in these very same areas. steve. >> and steve brown, of course, mark kirk does not have the benefit of having those seiu guys and the union voters driving voters to the polls and other people aligned with the democrats. on the democrat side, it has tightened. right? >> it has tightened over the last several weeks. largely it has to do with giannoulius, state treasure who are had difficulty explaining

his role in the family business. he hasn't worked there in four years, he's been a state treasurer. how he got to be the treasurer was touting his connections to family connection in general. it was voiced in a commercial by then senator barak obama. they are friends and giannoulius calls him his mentor. the fact that he is in that position that he's in today, in that post today is largely a part of that experience. now the bank is in a great deal of financial trouble. lost $75 million last year after losing 13 million the year before. there is a lot of questions about what role giannoulius played in some of the rans that went bad. the bank has a lot of development deals in loans that tied in to development deals and a lot of those went sour. that's not unusual, but $75 million does beg a lot of questions. steve? >> very juicy. down to the wire. steve brown up near chicago, thank you. >> as gretchen called it

earlier, it is tuesday already and that means it's laura ingram time to talk about the matters that most to you because i'm a populist and i care about you. thanks for joining us this morning. the budget is out. it was only 5 million pages. i know you've gotten through it. what stands out in terms of spending? >> first of all, it's good that punxsutawney phil did not see his shadow because apparently the federal government is proposing a tax on the groundhog. >> it's groundhog fee. it's not a tax. >> total disaster. here are two things that stand out. these numbers are staggering and it's kind of hard for us to even fathom what these mean, but it's not good for america. ten-year cumulative budget deficit, that's what we run up year by year, ten-year cumulative is $8.5 trillion under this current trajectory we're on. the debt level, remember they seized the debt level,

$14.3 trillion today. by 2020, it will be $25.8 trillion. now, i don't know about you, but when i look at these numbers, i think about my two kids, i think about what we're going to be doing vis-a-vis china. we can't keep doing this. yet we keep doing it. we run at 50 miles an hour as fast as we can into a brick call, then back up and go, gee, let me do it at 70 miles an hour and see if we get a different result. it's more taxes on people like you, you're rich, brian and gretchen and doocy. >> we're the problem. >> yeah, you are the problem. taxes on you. increase in the debt, increase in the deficit with some cosmetic maneuvers along the edges. this is a lot of spending for where we are right now. >> call me cynical, but before i took a few days off, i thought i heard the president say that he was making cuts, that he was going to have this three-year freeze. was that a pr stunt because he was going to unveil this budget?

>> yes. by the way, i loved how you bust add move right next to rush. look, what we know is that he continues to do this rhetoric that he thinks he has to put out there in the public domain about look, this is unsustainable, this level of deficit that we're carrying and the debt level, unsustainable. my next question is, what are you going to do about it. i guess what we have for an answer is he'll start another -- try to start another commission or some special committee that's going to examine it and try to figure out a way to give the democrats cover on it. >> here the problem, is there is somebody out there give up on being reelected who could care less about what the public cares about him to make the necessary cuts. do you know automatic withdrawals with $2.4 trillion. so before anybody gets in the white house, before it's a democrat or republican or

independent, $2.4 trillion goes out the door. we need somebody with the courage to go in there and the popularity to make it work to cut in the $2.4 trillion that automatically gets spent. >> exactly. one person who has done that recently is paul ryan. last week he announced what his road map for reform, which does tackle all these tough issues. look, the president is right. he only controls 1.6, $1.4 trillion of this budget. but still, that's a start and so symbolically speak to the american people on deficit reduction is one thing. to actually do something is another. it takes political guts and so far, it's more the same. we can't stay on this path, regardless if you're a democrat or republican, this is killing america right now. >> speaking, laura, of political guts, it sounded like the white house was going to go ahead and say, okay, we made a mistake in saying we'll have the terror trials in new york. new york is off the table. now the story is, today that apparently anis off the table.

new york still could be in play. we had former attorney general on the program just about an hour ago. and i asked him, the vas haitian, it's on, it's off. listen to the sound bite from the a.g. >> it makes it look like amateur down there. yes, it makes us look weak. it is weakness. and i can't understand the reason for the vas haitian. i can't understand the choice to bring it to new york in the first place. >> he resided over the mousavi trial. that lasted a year and was a circus. >> it's time the administration admits it made a mistake eric holder has been behind so many bad decision, going back to the mike rich pardon to the mirandaizeing of abdulmutallab, to the ksm issue and what mukasi is right about is that we are attempting to project this, oh, we're better than our enemies

think we are. we're not the abu grade nation and instead we look weak, indecisive and the administration looks incompetent. >> it would have been interesting if president obama during the state of the union would have attacked this head on and would is said during that speech, you know what, we made a mistake. we're going to change the venue. i think he would -- that would have been so profound if he would have done that instead of the way it's turned out. here is what he said yesterday. >> some of the people being legitimately scared about well, if we got somebody who we've been told is a terrorist in our backyard, will that make us a target? one of the things that we've had to try to communicate to the country at large is that historically, we've tried a lot of terrorists in our courts. we have them in our federal prisons. they've never escaped. and these folks are no different. but it's been one of those things that's been subject to a

lot of, in some cases, pretty rank politics. >> speaking of politic, laura, the white house says, look, this is all holder's decision. you buy that? >> of course not. holder is taking his marching orders from president obama. he's the chief law enforcement officer of the country. and what you just saw in that clip is this fact, president obama, every time he's questioned on something which is a legitimate sub tantive disagreement, you know what he says, that's the type of partisan politics we got to get away from. guess what? democrats are running away from this decision. >> laura sticks around, janet napolitano will be in her cross hairs because she skipped hearings on the christmas day bombing plot. where was she? just tired, perhaps?

>> is that proper etiquette or show of respect? look at that photo. president obama seems to bow not to a member of a royal family, but to the mayor of tampa? >> it's a nice setting.

we're continuing our conversation with laura ingram in d.c. >> last wednesday, i believe it was a homeland security committee in the house had a meeting and they were going to try to figure out what went wrong on that attempted christmas day bomber with underwear guy. well, because janet napolitano didn't show up and earlier i suggested that the guy was a democrat, turns out he was a republican. but members of both parties were steamed at her nonappearance. listen to this.

>> i have to echo the sentiments of a number of our colleagues today who i'm very dismayed that the secretary herself isn't here. it's probably fair to ask where the hell secretary napolitano is. >> i'm incensed, frank lee, that she's not here and i think the president of the united states should ask for the resignation of secretary napolitano and get somebody there who is not in lala land. frankly i think she is. i don't know who else in your department is, but whoever is, they need to go. >> laura, isn't it the case that nobody in the obama administration right now wants to show up for any of these hearings? would you? would you if you were in their shoes? >> i wouldn't have done what they did, number one, with the christmas bomber. remember how she was sleeping during one event. you know what i love is this fact, apparently what we're

learning is that she was consulting with members of an unspecified think tank. like what? what does that even mean? what think tank was it? what possibly is more important than discussing an almost devastating attack on america with this airliner? it's, again, imcompetence. >> it's day dreaming think tank. in particular -- >> she was tired after her trip to europe. >> i think the attorney general and homeland security president helped the president out a lot. he needs help, and he's not getting it. >> brian, you are 100% right. look, he needs the best people he can have in these critical positions. people are mad at obama for this, that and the other thing. good, you should be mad at obama. but remember, he has these people in place for making critical decisions for this nation every day. holder, napolitano, geithner, just to name three who need to

go. he needs to clear the deck. >> they're operating by his directives, though, laura. they would follow the same philosophy and ideology. >> maybe not. >> maybe and maybe not. the point is, it's also an image that you project and call me crazy, but when janet napolitano speaks in front of the cam remarks i don't exactly get the sense that the rest of the world is quaking. she doesn't exactly project the image of strength for america. >> we should get clint east something. what's he doing? >> yeah. >> wrong party. >> i have to go to an unspecified radio show right now. >> yes, you do. >> to host it. >> no, no. it's the laura ingram show heard across the country. all right, always a pleasure. thank you for joining us. >> that's great. straight ahead, president obama spending $30 billion more of the tarp money to help small business. the inspector general of tarp here live says tarp isn't working and didn't work. >> great. >> check this out.

the president's apparent bow to tampa's mayor? raising eyebrows. we'll speak to the mayor next. #ñ

24 minutes past the hour. the father of a man accused of planning to carry out terrorist attacks in new york city is accused of helping his son get rid of the evidence. also, actor rip torn expected to head to rehab in new york this morning. this after being so intoxicated, he tried to break into a connecticut bank that he thought was his home. police say rip torn was also carrying a loaded gun at the time. steve, brian. >> the atm in the foyer should

have been a dead give away. >> meanwhile, it's become a bowing brouhaha. last thursday in tampa, president obama seems to -- there you saw it -- he bowed. but this time to the mayor of tampa. >> the mayor joins us from tampa to talk to us about greeting the president on the tarmac. congratulations on an unbelievable city. we've both been there a number of times. but what was going on with the bow? did you say something that made the president say, thank you? like what happened? >> you know, it was a real pleasure to greet president obama and vice president biden. they were both in tampa last thursday to announce $1.25 billion for high speed rail connection between tampa and orlando, which is very significant for the state of florida and a great investment in the future. president obama is a very

gracious person and i really think that's part of his personality. a good part. great part of his personality. >> sure. and mayor, i'm sure you saw the picture when he bowed to the guy from saudi arabia, japan, and the emperor of japan and people said, the president of the united states should not bow to anyone around the world and there is the picture with the saudi king. so when we saw him -- what appeared to be bowing to you, we wondered, do you think he did this out of courtesy to you or what do you think the reason was he bowed like that? >> well, it's hard for me to believe this is such a major issue because -- >> it's just such a striking photograph. >> it is an unusual photograph, but i just have to tell you and i wish people could all meet president obama face-to-face, he is a kind and sincere and gracious individual. you really see that when you meet him face-to-face. and i welcomed him to tampa and

told him how honored we were to have him and he acknowledged that. so that's the kind of person he is and i think that's the kind of person we want as president. >> it was a apparently bow. >> it is a apparently acknowledgment and not something i think deserves the analysis that's been going on. but i can talk about high speed rail if you would like. that deserve has great deal of analysis. >> the quicker the trains go, the quicker i'll get home. mayor, can you tell me about the exciting the president creates. on thursday, it felt like a campaign stop. >> the university of tampa was packed. people were just very happy to see the president and the vice president. of course, this whole region has been galvanized by the news that we will be the point between tampa and orlando for high speed rail. this is a tremendous investment in the future of the state of florida.

we're the fourth most populous state and growing into the century, we have to have an alternative transportation infrastructure other than the interstate system. i think the kinds of investment that he's making across the country are very significant in the long-term. we are going to make the most of it here. tampa, orlando eventually down to miami. that will cover eventually 67% of the state's population. so this is a great economic boon for our state. >> it looked, mayor, like kind of a campaign event. it had that atmosphere to it. he needs florida if he chooses to run again in a couple of years. >> you know what the great thing is about watching president obama at the town hall formth? he can answer any question. you know, he points to anyone in the audience. doesn't know what the questions are. i can assure you, the questions in tampa weren't the least bit planned. any kind of question is asked.

and he can answer anything and he answers it thoroughly and with respect and the crowd responded to that. i think that format that he uses of a town hall meeting is very effective in keeping with the spirit of our country. >> miss mayor, i hope to see you at spring training. >> i'll be there. i love it. >> the yankees got a big facility there. >> now we know the rest of the story. straight ahead, we helped save troubled banks with tarp money. why aren't the troubled banks that are now okay lending it back to us to help the economy? the inspector general of the tarp joins us live. >> i thought you were asking me that question. "avatar," a favorite to walk away with the academy gold. the nominations are coming out in a few minutes. we will have them for you live. it's the most successful movie. it would make sense. 25 years later, we are the world is coming back.

what celebs are taking part? we'll answer that.

welcome back, everyone. half past the hour on a tuesday morning. president obama heads to new hampshire today where he's going to hold a town hall on jobs and the economy and joining us for a preview from the white house is our own melanie. >> today the president is going to announce details to jump start lending to small businesses, something he first mentioned last week during his state of the union address. now he's going to get into specifics. the white house says this is going to include $30 billion in tarp money, which would be directed to a new small business lending fund. it would target smaller local banks with assets of less than $10 billion, and the administration will ask congress to exempt participating banks

from some of the tarp restrictions, including limits on executive compensation. administration official acknowledged some banks have hesitate to do take tarp funds because of those restrictions and also concerns they might be perceived as weak or failing if they took bailout money. and the new program also offers incentives providing capital to small banks on a sliding scale. now, in his remarks today, the president plans to say, quote, the more loans these banks provide to credit worthy small businesses, the better deal we'll give them from this fund. some critics say this new lending program may not address some of the underlying reasons for lending being down to small businesses. banks have adopted tougher loan standards since the financial crisis and also that even some businesses are reluctant to take on more debt in this weak economy. this is going to be the president's second town hall meeting within a week with the same message that the economy and jobs are his top priority. gretchen, steve, brian, back to you.

>> all right. thanks for the update. >> looks chilly there. 25 minutes before the top of the hour. some other headlines. good news for toyota owners waiting for parts. the parts to fix your recalled vehicles could start arriving at dealerships later on today. millions of cars were recalled due to gas pedals that got stuck and made the car go forward fast. toyota says repairs should take about 30 minutes. to see if your car is affected by the recall, go to foxnews.com. if your gas pedal is sticky, do not drive your car to the toyota guy. >> conservative film maker james o'keefe talking to sean hannity about his arrest for allegedly tampering with phones in a democratic senator's office named marilyn degree. he says he and his three co-defendants dressed up like a work -- they work for a telephone company, but did nothing illegal. he claims they were trying to figure out what -- why landrieu was not answering calls from constituents about health care.

>> there was no bugging, there was no wire tapping, there was no interfering with phones. not only was there no interfering phones, we never even thought about interfering with phones. it never even occurred to us. all that's completely false. a lot of these reporters just flat out, i think, slandered me immediately off the gun, they jumped the gun on the story. we're still waiting for corrections from dozens of newspapers. >> he claims it was journalistic malpractice. we're learning that the top federal prosecutor in new orleans removed himself from that case. gretchen? >> president obama says he won't be seeing any images like this any time soon. >> it's one small step for man. one giant leap for mankind. >> well, the white house no longer shooting for the moon. killing nasa's $100 billion plan to return astronauts there. the president wants to use the money for rocket research

instead. nasa says shutting down the program will cost $2.5 billion in contract termination liability. meanwhile, remember that anthem recorded by a bunch of stars, "we are the world." it's now making a comeback. ♪ >> all right. celine dion and quincy jones, dozens other stars making the classic to raise money for haiti. they're recording in the same studio where the original was done in 1985. the new version will premiere at the opening ceremony of the winter olympics later on this month. the $700 billion tarp program supposed to spur banks to lend us money and keep our economy alive. but tarp special inspector general says it didn't work and it's not working.

>> neil broski joins us live. good morning to you. >> good morning. >> so wait a minute, this didn't work because a lot of people say if we didn't do it, the entire economy would have toppled. >> the tarp had a number of different goals. one of them was bringing -- with financial rescue. i think when you look at the tarp along with other programs that were announced at the time by the federal reserve and the fdic, it was effective and helped bringing us back from the brink from avoid ago complete financial crisis. but there were other goals that have not been met, such as increased lending, such as decreasing foreclosures, such as employment. so there have been some successes on the short-term, but the longer term goals haven't been met. >> this is what jumped out about some of your statements. vulnerable. left us more vulnerable. i thought it saved the day, but in the end, the economy is standing up to where we're more susceptible to collapse? >> the problem is when the

original tarp announcements came out and when then secretary paulson stood up and said, we're going to stand behind these banks, that was effective in the short-term. but it created a real long-term problem. that's the sense that the market knows and these banks suspect that if they screw up again, if they continue to engage in wreckless risk, continue to go with this, heads i win, the taxpayer will bail me out mentality, they know that the federal government is standing by to rescue them. they were too big to fail then. they're even bigger now. and one of the problems without some structural fixes, without meaningful regulatory reform, we could end up in a far worse place. >> like what? >> well, for example, i mean, if you think about the banks are being consolidating, getting more interconnected and the treasury, by extending the tarp, which we don't criticize as a policy matter basically has a war chest of several hundred billion dollars to rescue institutions that if they get

into trouble again. so this encourages great risk taking because the executives and managers know that if they bet big and they win, that's going to mean more executive compensation, bigger bonus, more profits. on the flip side, if it doesn't work out so well, they don't need to worry because uncle sam will bail them out. >> that's exactly what happened in the last year. that's why these banks are doling out these huge bonuses 'cause they used all of our money, the taxpayer money to make more risky investments and made a boat load of cash. here is one question that has been bothering me for the last year since harp happened, which is why the heck did they not make more stringent regulations about how the banks had to use this money? in fact, why didn't they just go right out and say, you have to lend more? >> it's a great question, gretchen, and frankly, with what you just described earlier with the president's new announcement, this program sounds like it's going to be designed just to do that. by putting in incentives to make

sure they lend more. so we know it's possible. it could have been done any time over the last year, but it wasn't. >> what should we do with the last of the tarp money left? >> that's a policy decision and that one is a little outside my lane to say exactly what to do. what we want to do and what we'll continue to do is keep a close eye on how this money goes out the door to make sure it's the right protections in place from being stolen or wasted. >> he's the sheriff overlooking the tarp for the congress. we thank you for joining us live. >> thank you, sir. >> people don't like talk, but they like neil. >> al-qaeda, not too many people like them. they claim to be fighting for millions of muslims. but new information shows al-qaeda kills more muslims than anyone else. we will explain. >> then, "avatar," brian's favorite movie, made hundreds of millions of dollars around the globe, but how many oscar nomination also it pick up this

morning? find out after this break when we go live to tinseltown.

welcome back, everyone. al-qaeda claims to be fighting for millions of muslims on their behalf. a new report out of west point has a surprising revelation. it shows al-qaeda is killing many more muslims actually than westerners. >> one of the reports' co-authors and scholar at west point combating terrorism center joins us right now. scott, what did you find when you did this study? >> we found that overwhelmingly the majority of al-qaeda's victims are muslim. and to the tune of 15% of the actual victims were westerners. this is over a period from 2004 to 2008. a more recent period from 2006 to 2008, the numbers even get more skewed towards muslim

victims. so really, the people that claim to be defending islam are actually targeting the people that they claim to defend. >> all right. so some people would say, maybe if you talk to members of al-qaeda, they would say well, that's bound to happen because some people get caught in the fray. i mean, i hate to be so sounding not empathetic, how do you respond? >> we specifically only outlined attacks where they claimed responsibility for the attacks and you would imagine if an attack goes wrong and they kill a lot of muslims, they would say let's distance themselves from that. we don't want to be associated with that. that didn't go the way we wanted. so by narrowing the field and only focusing on that, we're looking at things that they claim to be excited about. >> look at the female bomber yesterday, killed 40 shiites on a pilgrimage to celebrate the end of a holy holiday. 40 just dead. here is what the evil doctor

says in the power of truth, he says, quote, we haven't killed the innocent. it's not baghdad nor anywhere else. if there is any innocent who was killed in the operation, then it was unintentional error or overnice e. your reaction from your study? >> clearly he's wrong. he would like to be right and they might continue to go out and say these types of things because they are experts in fighting the propaganda war. but the study simply reflects the fact it's not right and i also think it's telling that a few days after this study was released in december, al-qaeda found a video with their p.r. person. >> the american. >> absolutely. not this guy trying to refute some of these claims and saying they were not responsible for the violence in pakistan that recently occurred and title the fact they hadn't killed muslims. >> here is what's so important, because this study, if the muslim community would take it in and believe it, then maybe they would be more in a frenzy

over al-qaeda. right? >> i think that is right. we were really happy that the kwaiti newspaper decided to cyrilize this in two pieces in december. we hope it continues to be read widely. muslim brotherhood.net is what they call the web site. they actually picked up an english version of an article written by another venue reviewing it. we're hoping this message continues to resonatity without. >> again, your study shows between 2004 and 2008, 15% of the victims were westerners. scott, thanks for doing this. >> thank you very much for having me. >> 12 minutes before the top of the hour. >> did you see the movie, blind side? >> yes, i did. >> it's just one of the films up for an oscar nomination. i thought it was fantastic. she was great. it just got one. we're going to break downtown rest of the nominations

announced moments ago right after this break. >> let's check in with martha mccallum who was against the movie to begin with. >> i love that movie. >> did you? >> i loved that movie. it was a great movie. thanks. coming up at the top of the hour, iran suggesting that they're going to hang nine more of the protesters. they hung two people this week. what is the reaction to all of this from the white house? we'll talk to john bolten about that. also a roving pack of beagles is terrorize ago neighborhood, coming up at the top of the hour. )ltpspynvyfkpttspyntinkpttp

it was early in tinseltown this morning the oscar nominations announced moments ago. here with all of the exciting

details is fox news entertainment correspondent, jill dobson. >> good morning. >> very exciting. >> all the nominations, they just came down motel ago. >> let's start with best supporting actress, just like they do on the oscars. >> penelope cruz nominated for "nine." also "up in the air," and anna kendrick, and from "precious." >> best supporting actor. i saw this one. "invictus". >> he woody harrelson from "the messenger." christopher plumber. inglorious basterds.

very creepy. >> in this other movie. >> i don't like him at all. >> oh, stop it. he's been on the show. >> trying to present the other side. >> best actress, sandra bullock in who i hope will win this. >> yeah. nominated for "the blind side." there was lots of buzz her. she's up against helen mirren and meryl streep and lots of others. it's hard to beat her in these awards. but sandra bullock will try. >> let's talk about best actor nod. >> "crazy heart" is getting a lot of attention. people say it's pinnacle of his career for jeff bridge. >> it came up the same day as "avatar." >> oh, wow. that's tough. that's probably why i haven't seen it yet. george clooney, "up in the air." and lots of people betting on jeff bridges to take home the big prize. >> i thought morgan freeman was great. again, when i see a movie, i

will support it. >> this year rather than nominating five best picture, they're doing ten. >> yeah. >> why? >> i think they didn't have great viewership last year, so they're hoping -- last year "the dark knight" was not nominated. tons of fans and all those fans didn't watch, because my favorite movie is not nominated. so this year, whatever movie you liked, it was nominated. >> how about this, two sports movies. if someone told you on paper, we have a story about a rugby team in africa and the story of an offensive lineman, they would have laughed at you. but yet, these two movies are up top. >> they're both up there. >> so there is some of them. we have "the hurt locker." "blind side" is a little of a surprise. >> i've only seen that one of the whole list. >> and "avatar" is not a big surprise. we expected that.

"precious", "a serious man." "up" which is only the second time an animated picture has been up for best picture. >> when we return, you will give your predictions and put money on them. >> all right. >> jill, stick around, won't you.

just is you know who to vote for on the night you watch oscars, jill p will make her predictions. who will be the best supporting

actress. >> monique from "precious." if you've got an oscar pool going on, put your money on hurt (the actor for "inglorious basterds. >> best actress? >> i don't know for sure on this one. i have to go with meryl streep. i love her. i think she was fantastic. >> but no one saw the movie again. >> i did. she was fantastic. >> she's always nominated, but she never wins. >> best actor? >> jeff bridges, "crazy heart." >> drum roll please, pick for best movie of the year? >> i think "avatar" might get squeezed out because it's a sci-fi movie and maybe "up in the air" will take it home. >> is that why you we