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tv   Studio B With Shepard Smith  FOX News  October 14, 2011 12:00pm-1:00pm PDT

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for a body in motion. >> megyn: the presser by the da in missouri so father has been another case. number two, there's no truth to the rumor that bret baier will be dressed like phoenix jones on "special report" tonight. thanks for being here! here's trace gallagher. >> thank you. this is "studio b." a u.s. court blocking of what some call the toughest immigration in the law country, saying schools can't check the immigration status of students. plus, a new report details how more planes are flying too close to each other. are you at risk? and the obama administration squares off against republican lawmakers. did the administration break federal law when it gave a half billion loan to a now bankrupt company? the solyndra controversy is all
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ahead, unless breaking news changes everything, on "studio b." first from fox at 3:00, presidential candidate rick perry says he has a plan to create more than a million new american jobs. the texas governor making his first major policy speech since entering the race with a rapid rise and fall in the polls. today at a pennsylvania steel plant, he proposed a plan to open up federal land for emergency energy production and loosen government regulation. he also took aim at the man he hopes to replace. >> when it comes to energy, the president would kill domestic jobs through these aggressive regulations while i would create 1.2 million american jobs through safe and aggressive energy exploration right here at home. >> today's speech comes as governor perry tries bounce back following his recent plummet in the polls.
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steve brown live in pennsylvania. steve, this energy jobs proposal is just part of governor perry's overall economic plan, though, right? >> it is. and the governor is promising many more details on a broader economic plan, but wanted this piece in a substantial piece of his economic plan brought forward today. he believes that there are solutions to both america's energy woes and to america's employment woes, and it is essentially lying beneath the surface of the -- the surface of the earth. have a listen. >> the quickest way to give our economy a shot in the arm is to deploy the american ingenuity to tap american energy, but we can only do -- we can only do that if environmental bureaucrats are told to stand down.
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>> and like a lot of republican presidential candidates, perry takes aim -- sorry for the gust -- at the epa and its regulations, saying it is essentially hindering energy development, hindering jobs and not helping the country. trace? >> i know he took a swipe at the obama administration. what's the reaction from the obama campaign? >> actually pretty quick. this comes from the press secretary of the obama campaign. "governor perry's energy policy isn't the way to win the future. it's straight out of the past, doubling down on finite resources with no plan to innovate renovation or transition the country to a clean energy economy." furthermore, he goes on to say that hundreds of thousands of jobs have been created by this administration by expansion of the green economy. the question is whether or not those jobs are coming along fast enough, and what governor perry seems to be saying is that many more jobs can be created much quicker if the federal government would simply -- this
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is pai paraphrasing -- get out f the way. trace? >> steve brown, thank you. gerald, it's interesting, because you look at this whole race, and rick perry has a different problem than he herman cain, with no money, but has a lot of momentum. >> rick perry raised $17 million in 49 days in the quarter that just ended, a stunning number. the money won't get easier for him. he's dropped in the polls as you've noted. a lot of that money was easy texas money that was just on the table for him to grab. but nonetheless he starts out this quarter, the october 1st quarter with $15 million in the bank. we're headed into iowa and new hampshire, buying a lot of ads. if i was ric mitt romney, i'd lk out, because they're likely to
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be negative ads attacking mitt romney. you'll hear that, and hear it a lot. >> gerald, stand by for one second. i want to go back to steve brown quickly. steve, any indication that governor perry has increased his local advertising at all? >> no, but it wouldn't be surprising. we are starting to see it out of some of the other players in the republican field, if you will. rick santorum is starting to run radio ads in the early contest states, but nothing bubbling up as of yet. that point just made is a good one. advertising rates for television ads are pretty bargain priced in iowa, new hampshire, a few other places, part of the early contest states. there's opportunity there for those that have money to be able to spend it. the only thing i would add is that watch for rick perry to possibly also go after some of the other, quote, unquote, of gel cal christians in the field, a michele bachmann in an early contest state like iowa where of gel cals make up a huge chunk of the republican electorate.
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she's somebody he'll have to get by as well. >> gerald, back to you. we talk about the jobs plan that rick perry unveiled today that has to do with drill baby drill if you go back three years, right? >> yes. >> he wants drilling on american soil. the critics are saying, wait a minute, we need jobs tomorrow, next month, not down the road. this has been a 40-year argument, gerald. >> it has. i don't think there's anything that rick perry said in his speech today that other republican candidates would disagree with. where they would differ with him is the emphasis on energy as part of an overall jobs solution as you suggest. it's a long-term energy problem that he's addressing as a short-term solution to a really acute jobs problem that people want addressed now, this week and next week. i think what you'll see in the next two speeches that come from rick perry is an attempt to go after those, but by structuring his economic rollout this way he said i think energy is at the center of job creation, not peripheral to it. >> beyond that -- i mean, we've seen resurgence from newt gingrich, so there's a
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possibility of getting back into the game. do you see rick perry getting back into this with just jobs and stuff? he has to go out further, does he not? >> he does. he came into the race, the way he looks at government, let's make government as irrelevant as possible in your life. everybody got that. then phase two, he was supposed to flesh that out. that's been slow coming. he's got an opportunity, if not an absolute necessity to do that, here's what i do to create jobs, here's what i do on national security. that's been underemphasized. there's concern in the republican party that rick perry sounds isolationist at times. he has an opportunity to address that. >> gentlemen, thank you both. while the federal court today has temporarily blocked key parts of alabama's immigration crackdown, said to be the toughest in the nation. that means that at least for now the state cannot enforce certain
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portions of the law, including the requirement that public schools check students' immigration status. now you'll recall officials said that prompted immigrant families to keep kids home from school with some reportedly leaving the state all owing. today's ruling comes after the government sued, calling the law unconstitutional. john roberts with the news. he's live in our southeast news hub. john, this battle still has a long way to go, right? >> months to go, if not more than that, trace. we'll get into that in just a moment, but first of all both sides won and lost. the three-judge panel putting a temporary hole on two of the most controversial provisions of alabama's immigration law, one that would make it a state crime for aliens to carry with them registration papers. basically that would make it a misdemeanor to be in the country illegally, an immigration law, the enforcement of it, according to the federal government, is the sole provision of wash. it would also strike down the
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enforcement of that part of the law that you mentioned at the top there, trace, where schools have to verify the immigration status of every student that attends school in alabama. now, the department of justice in its arguments before the 11th circuit have said that this law invites discrimination against foreign-born citizens and people who are in the country illegally. hispanics in the state of alabama say it unfairly targets them, and that many of them are being forced to flee the state, however that is the stated intent of this law, self-deportation. critics make another point, that a lot of illegal immigrants are keeping their children out of schools. if they stay in the state, and their children don't go to school, critics say that could potentially lead to an entire generation of uneducated individuals. trace? >> but john, kind of like the arizona law, the court isn't stopping alabama from enforcing all aspects. so what parts still stand? >> out of the six provisions that were being looked at, it let stand four of them, including the provision that
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police are required to verify the immigration status of anyone that they legally stop, who's suspected of being in the country illegally, or anyone who's not carrying a valid driver's license. it also invalidates any business contract that's been signed with a known illegal alien, which basically means anyone who hires an illegal alien doesn't have to pay them, and prohibit illegal aliens from obtaining vehicle, driver's or business licenses. this injunction was not decided on the merits, the 11th circuit court of appeals said the d. justice made the conditions for a temporary injunction. we should say, too, that while three of the judges agreed on four points, one judge did dissent on the first two of those last points that i showed you about stopping or verifying the identity of illegal aliens who don't have papers or suspected of being in the country illegally. this still stays with the 11th circuit court of appeals while they decide the larger issues
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involved here, and as well there's another constitutional argument before a district court in alabama. so trace, as we said at the beginning, this has a long way to go. >> and other states are still pursuing their laws. john roberts live for us in the southeast news hub. john, thank you. while a new study shows reports of dangerous mistakes in air traffic control towers has jumped in recent years by a lot, but the feds say don't worry, it's always been this bad. we'll explain that next. plus, a jet nosedives toward the ground. the pilot makes a last-second move to escape. you will see how this ended coming up. [ male announcer ] what can you do with plain white rice? when you pour chunky beef with country vegetables soup over it...
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>> new concerns about airport safety now. a just-released report indicates the number of reported air traffic controller errors has jumped. along with the number of unauthorized planes, people or vehicles on runways. and listen to this. the study from the government
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accountability office also indicates the number of times planes have flown too close to one another has nearly doubled in just the past three years. doug mckelway with the news liv.doug, sounds like an accidet waiting to happen. >> very well could be, trace. it's said flying is the safe single form of transportation known to man, but it's a terrible unforgiving environment in which to make a mistake. this report documents a tremendous increase in mistakes, luggage left on airport rampways to close calls in the air to real-life accidents, such as this one which happened at jfk airport last april where an airbus a380, the double-decker jumbo bus clipped the tail of a plane as it sat on the runway, lifting it u.o. than the ground and realigning it 45 degrees on the runway. the chairman of the house committee that oversees air safety described to fox news just this morning his own close
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call. listen to this. >> in landing at ronald reagan this week we had a near miss in the flight that i took on tuesday. we diverted just before landing in a pretty quick reascension because of the pilot said that there was a plane on the runway. so whether it's this report or what i experienced this week, we've got to do better. >> this gao report documents operational errors in the terminal areas up 97%, 30 miles out from the airport, up 166%. and in other areas up 53%. the most severe airborne errors are also up by double. these are all very, very concerning. and micha is asking for the inspector general of the department of transportation to
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further investigate this, trace. >> you look at all the numbers, doug, and they're startling, or is this a case of more incidents being reported by air traffic controllers? >> curesly enough, that's what the federal aviation administration and its air traffic controllers union are reporting in separate statements this day. the faa says they began a new traffic a couple years back called the air traffic safety action program, which allows air traffic controllers to report mistakes, even their own mistakes, without fear of punishment or retribution. they say that is the singular reason that the number of cases has gone up here. still, though, they admit that doesn't solve the problem, the fact we know about these incursions merely raises a lot of concern. they say they're implementing a five-point program that attempts to mitigate these mistakes. that's ongoing as we speak. back to you, trace. >> let's talk to a former senior
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official for the federal aviation administration. with us now from washington, d.c. is scott brenner. the question now is this this new policy the air traffic controllers can report mistakes without being punished, but there's little room for error when you're talk being air traffic controllers. they don't many make mistakes but when they do in the case be catastrophic. >> no, absolutely. this is a classic washington example of a good policy. the idea was good. the idea was to get as much data from the air traffic controllers as they possibly could and they could look at the data to see where the problems are and develop programs to address that. where we've gone askew is the implementation. i was talking to a controller earlier today, and he said the new program gives controllers instant amnesty, there's no skin in the game for the controller anymore because he doesn't have to fear about making a mistake. he said previously if a controller made a minor mistake, he would have to inform his supervisor immediately, and then
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the supervisor could make some kind of corrective action, or the supervisor would be better aware of what his employees are doing. now they basically go out on their break, they go down, log on, say they made a mistake, and there's no more retribution for these guys. >> we're pretty hard on these guys, scott. you got to look at the record, there's not been a major air disaster in this country for the better part of 10 years, so the system is for the most part working very effectively. >> no, absolutely. i saw a statistic this morning that told you are safer on a commercial aircraft you are sitting in your own living room. we have a tremendously safe system, but this kind of gets back to why the faa continues to push for the data. they know -- i mean, accidents do not happen very often, and we're all grateful for that. they have to figure out, what other data can we be trying to gather to look at to see where we could have some probabilities that we may have another accident. >> yeah. it's a good thing. then again, you're talking about, very quickly here, scott,
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we're talking about old equipment. some of these things from the dark ages as far as technology goes in the air traffic control centers. >> they are, but they're becoming more modern as the funding catches up there. the big problem that we're looking at right now is making sure controllers are practicing their professional responsibility, that personal responsibility that the faa continues to preach. >> scott brenner, good conversation. former member of the faa. thank you, scott. >> you're welcome, trace. >> the biggest part of our economy is getting a boost, right? it's thanks to you and everyone else in the country. the good news on consumer spending is next. plus, the young man who wants to be the first paralyzed driver in the indy 500 coming up next on "studio b." ♪ more and more folks are trying out snapshot from progressive.
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>> trace: people across the country are opening up their wallets. the commerce department reporting u.s. consumers stepped up spending on retail goods more than 1% last month. that, by the way, is the largest gain in more than seven months. of course, one economist says weak hiring numbers likely means people won't be able to keep up this increased spending pace, but it can certainly be seen as a good sign for the struggling economy, right? let's get to gerri willis. spending is up, consumer sentiment is down, so we're broke but buying. how can both be true at the same time? >> trace, you've heard of credit cards, right? people do spend if they don't have money. let's drill down the numbers a little bit. surprise to everybody on the upside, spending up 1.1% overall. you drill down, you see auto sales on fire 3.6%, but sentiment declining. people are nervous about the
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outlook. for good reason. big concerns that europe's economy, that this economy could go into a recession. >> trace: what about a double-dip? >> some people say maybe increased spending means we won't go into another recession, but keep your eyes on europe, because as that story plays out that affects our economy here, and of course, you know, consumers are watching their pocketbooks as well. we'll be watching europe, of course, trace, and thinking about how consumers are dealing with the issues. >> trace: and we'll be watching "the willis report" every night at 5:00 on the fox business network. gerri willis, good to see you. >> thank you. >> president obama says iran must be held accountable for the recently-discovered planned attacks on the u.s. the details on that in a live report. plus, the nba facing a looming
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deadline. if players and owners cannot reach a deal, more of next season could be gone for good. you know, two weeks has already been cut. how much of the season still remains is still ahead.
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>> trace: just into fox news, president obama announcing plans to put 100 u.s. troops on-the-ground in central africa. we're told they will be there to help in the fight against a
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brutal rebel known as lords resistance army or lra. the white house says the group is responsible for the murder, rape of thousands of people. ed, what do we know about this? >> just breaking right now, we're told the president started deploying u.s. troops to central africa two days ago. they're starting out in uganda but could go to a host of countries in africa, including the democratic republic of congo. the u.s. troops are members of the special forces. they're stressing inside the white house that it's just about 100 troops, that they're just trainers, and that they're only going to be there for' few for w months, but obviously there are other missions, it's a training mission, and the u.s. gets sucked into a longer time period, combat, etc. we're told the trainers would only be in a combat role if they have to be drawn in for self-defense. what their mission is going to be is to chase down this rebel,
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who you mentioned, joseph coney, the head of the lra. the bottom line is the white house is putting out statistics showing thousands of murders, children have been kidnapped in central africa, brought into the sex trade. so congress passed a law in 2009, the president signed it into law in 2010, and basically that law said the administration needed to do something, needed to intervene, and this is the president's reaction several months later to send about 100 u.s. troops on the ground there in central africa. this is going to raise a lot of questions on capitol hill. we're told that at this hour, lawmakers in key committees and whatnot are being briefed about this mission, number one. number two, obviously, the natural question that will come up at those briefings, here at the white house, and briefings in days to come is why the president said over and over and over again he would not send ground troops into libya, for
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example, but now 100 troops are being sent in to central africa to deal with the l ar lra. a lot of big questions raised in the days ahead, trace. >> trace: worom from the pentagon, they'll e operatio fighters. ed henry, thank you. there are new details emerging about the alleged plot to conduct deadly attacks on u.s. soil. lawmakers in washington breaking down the intelligence as they now say this went up to the top levels of iran's government. president obama demanding that iran has to -- quoting here -- pay a price. you'll recall earlier this week the white house announced the arrest of this former used car salesman. he and a member of iran's army face charges they tried arranging with the mexican drug cartel to kill the saudi ambassador to the united states, and to blow up embassies in
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washington, d.c. and in argentina. we're learning more about the money development here. >> that's right, trace. two wire transfers are the strongest evidence suggesting the assassination plot went to senior iranian officials, or the quds force. >> it went to operational, here's the money, go do it. >> there's suspicion it went as high as the ayatollah khamenei. >> it's plausible that there had to be a signoff that something this big would happen. >> if there's any so-called smoking gun evidence in this case, it does seem to come down to the wire transfers.
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trace? >> trace: where does washington stand holding iran accountable? >> this morning we had a series of hearings, both republicans and democrats, calling for debilitating sanctions against iran. >> our best hope for slowing the iranian nuclear train is bringing its financial machinery tie grinding halt. >> let's be clear, sanctions have to hurt. if they don't hurt, they're not effective. the goal is not for us to pat ourselves on the back and issue press releases here. it's to inflict crippling economic pain over there. >> for some context on the sanction issue, the u.s. does virtually no business with iran and must rely on other nations to limit or cut off their trade. china and russia do the most trade with iran on energy, but it would require the u.s. to strong-arm or punish chinese or russian businesses, something the administration has tried to
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avoid, trace. >> trace: thank you. >> you're welcome. >> trace: southern california prosecutors saying they will seek the death penalty in the seal beach hair salon massacre. they say they're charging a 41-year-old man with eight counts of murder and one count of attempted murder. she's accused of opening fire in a hair salon where his ex-wife worked, killing eight people, including his ex-wife. they were reportedly involved in a bitter legal battle over custody of their young son. here's the da about an hour ago. >> a person in such a case as this goes on a rampage and kills innocent people in an indiscriminate bloody massacre i will of course seek the death penalty. >> the da says the suspect spent two minutes methodically shooting victims in the head and chest, and then stopped at one point to reload his weapon. well, a jet takes a nosedive to the ground during an airshow today, but the pilot got out
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alive. take a look at this. you can see the military fighter jet plummeting into a field, then bursting into flames. this all happened in one of china's eastern provinces. look again at the video. just second before the crash, take a look, the pilot ejects from the cook bit a parachute. an airshow organizer says the pilot is doing fine. there are no reports of any other injuries in this. well, now to the story of a 19-year-old racecar driver burning up the track in one of the indycar minor leagues, all despite a major physical challenge. he's paralyzed from the waist down, but that's not stopped him. he drivers his formula car with hand controls and just placed third in a major summer tournament, getting him closer to his goal of becoming the first paralyzed driver in the indy 500. rick leventhal is following this story live in the new york city newsroom. rick? >> trace requires a lot of strength, quick reflexes, intelligence and courage. michael johnson has all of that
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and then some. he's paralyzed from the waist down, but 19-year-old michael johnson is living his dream, driving and thriving in open wheel, open cockpit formula cars. >> life is too short to miss out on what outlove do. >> johnson has special hand controls to accelerate and shift, and pushes in on the steering wheel to break. he finished third overall in this year's skip barber summer series. >> he never got depressed. never poor me, poor me. he's always had a wonderful attitude about this whole thing. >> johnson started racing motorcycles when he was just 4 years old. at 12, he held 14 national titles. but then suffered a horrific accident in a race, break his back and dozens of other bones. he underwent experimental stem cell surgery in 2007, and has regained feeling from his chest to his hips. he spends nine hours a week in
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therapy, and says he will walk again heroins own. on his own. he continues to learn on the track. next year he turns pro. his goal? competing in the indianapolis 500. >> does this take you away from your troubles when you're out here racing? >> i think it does, yeah. takes me away from everything. when i'm winning races, i'm the happiest i can be. >> michael told me he actually considers himself lucky. he knows things could have been a lot worse, and hopes he can be an inspiration to others with physical challenges to live like to the fullest and not give up on your dreams. trace? >> trace: michael sounds like an awesome kid. rick, thank you. >> sure. >> trace: did the obama administration knowingly let taxpayers pick up the tab for a failed solar business or republicans in congress trying to make a political issue out of nothing? the latest on the solyndra controversy is coming up. plus, italian premier berlusconi
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had significant concerns about its legal basis, and those concerns were simply ignored. >> i don't see evidence of wrongdoing by government officials, just a bad investment decision. >> and it comes less than 24 hours we learn solyndra's ceo, brian harrison, has stepped
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down. mike emanuel is live for us on capitol hill. mike, what was the tone from republicans at today's house hearing? >> trace, there's a good amount of frustration and anger because the feeling was department of energy did not listen to their counterparts at the department of treasury who raised concerns about solyndra, about the modification of the loan. here's texas congressman joe barton. >> it is clear to me that the department of energy violated the law when they agreed to subordinate the taxpayers' money to private investors, some of whom appeared to have been heavy contributors to president obama's campaign. >> some democrats disagreed, some suggested it was a bad idea to have a hearing with just treasury department officials on the panel, but not department of energy officials there to speak for themselves. the republicans are essentially saying there will be plenty more hearings ahead. trace? >> trace: i'm sure there will. some treasury officials, mike,
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were also asked to testify. what do they say about the legal aspects of this? >> they said their veteran workers for the department of treasury have been there many years. they said they've never seen a government loan the way the department of energy handled solyndra, this $534 million loan for a green energy company. they also said they'd never seen the idea of putting private investors ahead of federal taxpayers. here's a sample of the exchange from earlier today. >> to your knowledge, do you believe today that the department of energy should have sought department of justice approval? >> yeah. i've said that i believe that they -- that it would have been wise for them to seek department of justice approval. >> so there you have it. a veteran department of treasury employee saying they should have gone to the lawyers over at the department of justice before they went ahead with this idea of putting private investors ahead of the taxpayers.
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trace? >> trace: mike emanuel live for us on capitol hill. mike, thank you. let's have more on this with the anchor of "fox news sunday," chris wallace. he joins us live from washington, d.c. chris, we went to the trusty brain room on this. the brain room says technically it's not illegal to put the investors ahead of taxpayers, but just like you heard the lawmaker just say there it would have been best if you had run this by the doj. your thoughts? >> well, listen -- well, the department of treasury, not department of justice. you're right. this just adds to all the smoke. i'm not sure how much fire there i but it adds to all the smoke about solyndra, the fact there were all these big investors who were -- many of them were also big campaign contributors to the obama campaign in 2008, coming into the white house meeting with top people like valerie jarrett or carroll browner, who was the environmental czar at that time, and pushing for solyndra.
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you had this one fellow who had been a big contributor, who was over at the department of energy. his wife working for the same company, the law firm representing solyndra. he had recused himself, but now there's emails showing he was pushing for the solyndra loan like crazy. this just adds to that sense. i can't say there's a smoking gun at this point, but there's certainly a lot of smoke that says why was the administration and why was the energy department, one, so interested in giving solyndra this loan. and then two, as we say here, you know, the very unusual, maybe unprecedented step of saying that the private investors in a bankruptcy would take precedence over the federal taxpayers, which means we're on the hook for that half billion dollars in federal loan guarantees. >> trace: i said, the department of energy, they're saying should have gone to the department of justice and at least got this thing checked out, to say, look, is this legal, is this loan we're reconfiguring legal, and
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that didn't happen. now the assistant treasury secretary, mary miller, saying in an email, look, to our knowledge, this has never happened before. there's never been a loan that's been restructured like that. that's my point when i say maybe it's time to get this thing checked out by a few legal eyes. >> yeah. again, it raises questions why was solyndra such a special case, the idea of giving them the money in the first place to, the terms of the loan, then the renegotiation of the loan, it raises a lot of questions. obviously congress is staying on it. i can't say that there's the smoking gun yet, but it is awfully suspicious. >> trace: before i let you go, chris, i want to get your take on this breaking news that just came out of washington, president obama announcing his plans to put 100 u.s. troops on-the-ground in central africa. now we're told they'll be 32 help against a brutal rebel group known as lords resistance army or the lra. what kind of questions are people raising about this in
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washington? >> first of all, it's come as a surprise, to the best of my knowledge, to the oversight groups in congress. it's just been announced in the last few minutes, and seems to have been a big surprise up on capitocapitol hill. obvious questions, if we're willing to put troops on-the-ground in uganda, why wouldn't we be doing it in syria, where there's a slaughter, a humanitarian crisis going on, or libya for all those months. yes, it's just trainers. remember we started in vietnam with just trainers. not saying it's going to turn into another vietnam, but to people of a certain age, including myself, u.s. military trainers on the ground has sometimes led to a bigger commitment. >> trace: yeah. they went in back in 1961. chris wallace is the anchor of "fox news sunday." this weekend a guest eric cantor will talk about the gop's agenda for 2012, and democratic senator, dianne feinstein, chairman of the senate intel met
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to talk about the growing threat from iran. chris, thank you. basketball fans have already lost the first two weeks of the season. the rest go by the wayside as well? a key decision coming up on "studio b." [ male announcer ] this is lara. her morng begins with arthritis pain. that's a coffee and two pills. the afternoon tour begins with more pain and more pills. the evening guests arrive. back to sore knees. back to more pills. the day is done but hang on... her doctor recommended aleve. just 2 pills can keep arthritis pain away all day
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with fewer pills than tylenol. this is lara who chose 2 aleve and fewer pills for a day free of pain. [ female announcer ] get money saving coupons at
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>> trace: the nba lockout could last until christmas if the owners and players can't reach a deal by next tuesday. that's the word fred basketball commissioner david stern. the league already scrapped the first two weeks over the labor dispute. the new season was supposed to start next month. the salary cap and revenue split are the key issues, bug earlier this week stern told reporters the two sides are still very far apart. "sports illustrated" writer chris mannix joins us.
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the players want 53% of the $4 billion revenue, give the owners 47%. the owners want it flip-flopped, they'll take 53% and give the 47%. can't we split it and start playing ball? >> there would have to be tinkering, but close to 50/50 is something the owners would accept. to be honest, the players would, too. the biggest issue is the luxury tax. right now in the nba you have a dollar for dollar tax when you go over the luxury tax threshold. the owners are proposing $8 for every dollar you go over, and the biggest issue, the one that will hold the process up for the next few weeks is going to the de facto salary cap. >> trace: just so people know, the average salary in the nba is
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$5.15 million. they're making rent, and the nba says it's losing money here. that's a key point. >> it is a key point. the average salary isn't $5 million. that's if you include the guys that have $100 million salaries. it's really a little over $2 million. still enough to make the rent. that will bring the players back to the table. there are a lot of players out there that are hard-liners, guys that want to stick most of this out, willing to sacrifice most of if not the entire season. the guys making less than $2 million a year, won't find jobs in europe and china, they're pressuring the union for a deal. those are the ones that david stern is speaking to when he's saturating the media with coverage as he has the last couple of days, telling these guys, you better push your union, get back to the table, or i'm going to wipe out the season just like that. >> trace: chris mannix with "sports illustrated." we are waiting.
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got to have hoops this year. chris, thank you. >> you're welcome. >> trace: it's not exactly an attack, but a surfer says he had a one-of-a-kind encounter way shark. that's new, right? this guy claims he stood on one while he was out at sea. the details on that are next. the postal service is critical to our economy-- delivering mail, medicine and packages. yet they're closing thousands of offices, slashing service, and want to lay off over 100,000 workers. the postal service is recording financial losses, but not for reasons you might think. the problem ? a burden no other agency or company bears.
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a 2006 law that drains 5 billion a year from post-office revenue while the postal service is forced to overpay billions more into federal accounts. congress created this problem, and congress can fix it. thank you very much. you're on e-trade. huntin' down stocks, bonds, etfs. oh i love etfs. look at you. why don't you show me your portfolio? i'd love to... i already logged out. oh no, it's easy, actually, to get back... see where it says history? there's a history? yeah, it'll take you right back to the site you were just on. well the last site... [ british vo ] and now, cycle complete. the male wildebeest returns to propagate the herd. [ animal grunts ] can you forward me this link? [ male announcer ] e-trade. investing unleashed.
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>> trace: then there's this before we wrap things up in studio b. a surfer in oregon has a heck of a story to tell his buddies. he swears it's all true. doug says he stood on a shark in the middle of the water. he told reporters he was on his board monday off the coast of oregon when he kicked his feet down to avoid a wave. his feet hit something solid. he realized he was standing on the back of a shark, so he says. a coast guard boat happened to be nearby, and a guardsman says he never saw it happen. the coast guard member says he never saw the shark, but has no reason to doubt the story. i'm trying gallager


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