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tv   Americas News Headquarters  FOX News  December 2, 2012 9:00am-11:00am PST

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>> eric: have a good sunday. i'm eric shawn. >> i'm jamie colby. great to have you here. america news headquarters continues from washington. keep an eye for santa out there. he is on the street. >> shannon: who will blink first? the obama administration says the ball is in the g.o.p.'s court. republicans insist it's the president's turn to get serious about dealing with our country's debt. >> it's unfortunate that the white house spent three weeks doing basically nothing. >> this is a very carefully designed set of reforms. if republicans would like to go beyond these reforms, or they want to do it differently, they should tell us how they want to do it. >> i believe raising tax rates hurts our economy, hurts the prospects for more jobs in our country. >> shannon: as the sparring continues over the fiscal cliff, neither boehner nor
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geithner can say for certain that the country will not go over the edge. i'm shannon bream. america's news headquarters live from the nation's capital starts right now. >> shannon: we want to get to the budget standoff. peter doocy joins us live. there is time to strike a deal but not a lot. >> reporter: that's right. the speaker of the house john boehner made a point today to say there is not much time between election day and the end of the year. he thinks the white house has already wasted weeks because he does not think the proposal to avoid a fiscal cliff is serious one. negotiations here are nowhere. another republican, senator lindsey graham thinks he thinks things are heading down hill. >> i think we are going over the cliff. it's clear to me they made a political calculation. the offer doesn't deal with the entitlement reform to save the medicare and medicaid and
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social security from imminent bankruptcy. it raises $1.6 trillion on job creators to destroy the economy. no spending controls. >> reporter: treasuresy secretary tim geithner advocated for clinton era tax rates and wants top earns to pay 39.6%. he said when that was the rate in the '90s there was was good economic growth and strong private investment. said republicans would rather raise revenue closing the loophole and limiting deduction need the time to realize that might not bring in enough cash. >> that is a good set of propose is and good for the economy. if they have suggestions, they want to go further, lay it out to us. >> secretary geithner said he cannot promise we won't go off the fiscal cliff. speaker boehner says he is doing everything he can to avoid the cliff but acknowledged that there is a chance we will in fact go over the edge.
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>> thank you. >> shannon: now if the country does go over the fiscal cliff marx worry there could be cutback to entitlement programs like social security and medicare and programs that the government uses to keep you healthy. joinings now, registered nurse and republican congresswoman from tennessee diane black. former california insurance commissioner, democratic congressman john giramendi. welcome to you both. >> good morning. >> thank you for having us. >> shannon: something to keep an eye on the issue of doctor reimbursement fee under medicare. if nothing happens those will drop by 27%. come january 1. we know ra lot of doctors are limiting the number of medicare patients they will take in. if they don't get the numbers up what happens next? >> this is why we need reform over medicare.
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we know we are not going to cut doctors by 27%. if we were to do that, there would be no access for seniors. that is not what we want to do. we have come to the table with a program we think is reasonable about structural reform to medicare. just got to happen. otherwise the president has the eye pad in place and obamacare which is going to be a panel of 15 unelected bureaucratic to be making the decisions where healthcare will be paid for. that is on back of providers that doesn't help seniors to get access or quality care. >> shannon: congressman, as a former insurance commissioner you probably understand the issue better than most. what about medicare, medicaid, social security. should they be on the table? >> first, social security is not an imminent problem at all. in six or seven years there will be a problem but right now social security is not connected to the deficit.
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a separate program, funded separately in the own trust fund. that needs to be dealt with separately. with regard to medicare and medicaid, those programs are floating on the overall inflation rate in healthcare. what we need to do, this is a major part of the affordable healthcare act was to bend the cost curve to bridge down the inflation rate in healthcare. in fact, in the last two year years, the inflation rate in medicare has been remarkably low. much to the surprise of everybody. some in the two or 3% range. that is incredible. part of that is due to the affordable healthcare act. undoubtedly to others. with regard to the doctor payments, that is an annual problem here in washington. started back in the early 2000s. continued to be an annual problem. called the doctor fix. i guess for budgeting reasons, way back when they decided that they would only fund that increase in doctor payments for one year. then every year it comes up. every year it grows because of the general inflation in
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healthcare. it needs to be fixed permanently as part of the medicare program out there. be very, very careful about restructuring. restructuring is another word for what we talk about during the campaign. that was putting -- ending medicare as we know it and going to avoucher system. we don't want to do that. we need to deal with the medicare and cost without changing benefit. >> that is not correct. i have to correct my colleague. it's not avoucher program. premium support. just because you continue to say the same thing over and over again doesn't make it true. it's not avoucher program. i want to correct him that social security is not a problem. you know we don't talk about the unfund liabilities. we talk about $16 trillion in debt. we have $85 trillion in unfunded liabilities in social security, medicare and several benefits. they don't talk about $1 trillion in ten years that are additional money from
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obamacare that hit the middle class. they want them off the table but as mature adults we have to talk about the truth in washington. >> shannon: congressman, i want you to get the final word. >> i did say social security is an issue that has to be dealt with. there is a problem that will occur seven to eight years out. >> kick the can down the road. >> well, if you want to deal with it today we can. bub it is not part -- but it's not part of the current deficit issue at all. separate issue. you may call it premium the medicare program and tosses it over to the private health insurance companies. i have worked with the private health insurance companies for a long, long -- >> it's not true. >> sorry, it does happen to be what the premium support is all about. you are supporting the premium
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for private health insurance companies. call it vouch every or premium support. in either case it terminates the medicare as we know it. that is a problem for seniors. >> we are leaving on many point of disagreement, not agreement. we know you have a lot of work to do on the hill. we thank you for taking time out for us today. we wish you beth to find abcompromise. >> thank you. >> thank you, shannon. >> this is a fox news alert. nine militants and at least five afghans are reportedly dead after a fire fight at an air base in american afghanistan that lasted more than two hours. officials say two suicide bombers detonated explosives outside the base that helicopters fired on them. they have the largest fight at the base since february. you are looking live at a picture of the egyptian embassy in d.c. a source close to fox said the muslim membership in
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washington protest today starting at 1:00 p.m. eastern. we heard that an opposition group will be send progress testers as well as the embassy to counter islamic group. protest as thousands demonstrate in egypt after the bold moves by morsi. some say amount to illegal power grab. >> the egypt constitutional court suspended work indefinitely as a protest. it comes as a postpone ruling on legitimacy of panel that drafted a new constitution for that country. one that gave president mohammed morsi new powers. steve harrigan is standing by live in cairo with more. >> remarkable scene in cairo this morning outside egypt supreme constitutional court. to put it simply, the court justices could not get in their own building. the judges will suspend their work while the atmosphere of intimidation physical a mental
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intimidation exist. the supreme court say they cannot do the work because of the mob around their building. it was likely they would rule on the legitimacy of egypt constitutional assembly. that body pushed through the constitution, the draft on friday. they go for a national referendum, up or down vote on december 15. if the constitution goes through, egypt president morsi says the extreme powers which he declared that he possessed would be void and it would go to normal here in egypt. richard morrison himself has strong public support. we have 200,000 people. mainly members of the muslim brotherhood who support the president come out on the street to show support. loud and emotional way. >> shannon: steve harrigan with the latest from cairo. thank you. week after israel and hamas
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agree to cease-fire there is tension in the region. this time it's over the u.n. vote. granting the palestinian liberation organization nonmember observer state status. how does the latest mover impact the power of peace talk between israel and palestinians? joining us to talk about that, former israeli ambassador pinkus. thank you for your time today. israel signaled the u.n. vote they say will delay efforts at peace talks. how so? >> there doesn't seem to be chance of peace after the election, it's dim. combine that or complementbe that with the fact that the palestinians are divided between hamas controlled gaza strip and palestinian authority controlled west bank. you know, the recipe or chances for a peace process look extremely remote. if you look at the u.n. vote,
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shannon, and what are the immediate implications in one word it's nothing. in four words it's a lot of trouble. >> shannon: well, there were only nine votes no against recognition of that particular status. of course, the u.s., israel, canada and others. what do you think it says about the u.s. and about israel's position in the world that only nine votes came together against us? >> well, it was a lost bat to begin with, shannon. in fact, i think israel made a mistake here. israel should have been one of the first to recognize this palestinian initiative. because it is commensurate with and compatible with the two state st. louis. no one in israel has a better idea but the two state solution. partitioning the land not because it's the right thing to do or smart to do but the only thing to do. let alone being the right thing to do. what it showed is that failure to address these issues, failure, absence of the peace process and failure to launch
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one. isolates israel in the international community. isolates the u.s. in the international community. kind of super imposes shannon on a new administration on the new obama administration. involvement in the middle east at a time when conditions do not seem to be con deuce i and do not seem to be right. i would imagine that this was the, a resounding international community saying to israelis and palestinians get your act together because we know what the conners of the agreement will look like. if you can't come to terms with it, then we both, we all have a serious, serious problem here. >> shannon: i want to ask about a couple of things israel has done in the wake of the vote. get your reaction on how you think it is going to play on the international stage. first of all, israel of course moving ahead with the new construction in controversial areas. also decision withhold $100 million in taxes that essentially israel collects on behalf of palestinians.
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israel saying that won't happen with the money. how do you think that is going play? >> it's a knee-jerk reaction expected. certainly light of the upcoming elections as mentioned a moment ago are to be held january 22. it shows in absence of peace process no, dialogue whatsoever going on, both sides resort to silly uniliterallism. palestinian go to u.n. and achieve nothing. it has legal implications that i am not belittling or doubting. but well-being and what it says for prospect for the better future the move is nothing. israel goes ahead and announces building in areas to make the two state solution that would make any future negotiations whether in a day, week or five years, even more difficult. that poses an issue or problem for obama administration.
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all of this in front of a world or at least 138 countries that were looking at this. they are saying get your act together. more left or right wing, disinterested fatigued world that no longer cares about the israeli-palestinian issue leaves the issue as the devices of the israelis and palestinians. that hasn't yielded any results. >> shannon: pinkus thank you for your time today. >> thank you. some thought the fight over healthcare was over but not so fast. supreme court breathes life to challenge of the healthcare
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law. that is coming up. arizona governor jan brewer facing another lawsuit. we will tell you who is suing and why next. [ whistle blows ] hi victor! mom? i know you got to go in a minute but this is a real quick me, that's perfect for two! campbell's chunky beef with country vegetables, poured over rice! [ male announcer ] campbell's chunky soup. it fills you up right. but i'm still stubbed up. [ male announcer ] truth is, nyquil doesn't unstuff your nose. what? [ male announcer ] alka-seltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. thanks. that's the cold truth! [ male announcer ] it's that time of year again. medicare open enrollment. time to compare plans and costs. you don't have to make changes. but it never hurts to see if you can find better coverage, save money, or both. and check out the preventive benefits you get
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>> shannon: the newest battle over obamacare could be back at the supreme court a whole lot sooner than most expected. this week, the justice granted liberty university reopening the case against the new law; meaning, it could be on the fast track to the high court. joining us to talk about what comes next. senior for the accountability senior, i les beth. former deputy assistant general tom dupree. good to see you both. >> great to be here. >> shannon: this has been spending for while. this week, the court said we are reopening the case that liberty university had. sending it to the fourth circuit, a level below the supreme court. liberty challenged this law on different grounds and added something new as well. what do we expect? >> they have. they are taking a slightly different approach than the challenge heard the first time. liberty current argument raise challenges to the employer mandate. they have got an intriguing argument where they are saying that their religious liberties are violated, and that they
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are compelled by obamacare to act in a way that antithetical to the deeply held religious beliefs. liberty arguments not resolved by the supreme court. they have another chance, they will get their day in court and get go back to the court of appeals to have another shot at this. >> shannon: how will it be received there? one way or another, whoever loses will appeal it back to supreme court. >> i'm sure whoever loses will appeal it to the supreme court. but i don't think that this is necessarily as big a dale as some foes of obamacare would like it to be. look. the supreme court in an opinion written by conservative chief justice john roberts upheld the affordable care act in the constitutionally written powers and i don't think the case will change that at all. when you get to the fourth circuit. by the way, the supreme court sent this back to the fourth circuit should not be taken as any sort of reflection on the justice views of the case's merit. it is really this order that
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is proper -- >> shannon: procedural. technicality. >> routine housekeeping ord they're the court often does in the wake of the big case like the obamacare decision. but i think in the fourth circuit that claims will be rejected just as they were in the district court when it heard liberty's claims, back in the day, and so, you know, here we have claims that are against the religious exemption in the affordable care act. there are exceptions for people who deeply held beliefs do preclude them engaging in certain sort of insurance behavior. but those exemptions are based on exemptions from the internal revenue code that have been upheld for decades against challenges based on some of the same constitutional principles that liberty is using in this case. >> shannon: one of main things we have seen a number of employers objecting to the h.h.s. mandate there what there has to be access. if you provide insurance for coverage to include access to
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certain contraception and some, the morning after pill is controversial for some people. many of these, there are 40 some lawsuits on that particular measure. now, by liberty getting the case to go back to the fourth circuit, they sort of jump ahead of the pack. that means that particular issue litigated and been a split all over the country so far, this issue may get to the supreme court faster because of this case. >> i think that is right. certainly the spotlight is going to be on the proceedings and the fourth circuit. take elizabeth's point, it's premature for liberty to declare victory at this point. they argued it the first time and got a chilly reception from the judges. >> they remember it well. >> not a slam dunk. at the same time, we should be mindful of the fact that people first started channeling obamacare on the commerce clause ground and says it exceeds congress under the commerce clause that argument was pooh-poohed by the law professors and other observers who said this is a kookamamie right wing theory
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by the federalist society and far right wing of the republican party. they were right. got majority of the supreme court justices. although i would about say they have a slam dunk at this point, might be premature to declare the case over. >> shannon: in the opinion that we got earlier in the summer on different grounds. a number of the justice did sign on to the opinion that said the law has to comply with the rest of the constitution, including the religious exercise clauses. >> i don't. i don't think itsthat great ovations to get to the supreme court. it has exception for religious activity and beliefs an finds that tem ployier mandate and the rest of the affordable care act that is relevant here falls fully within the constitution history. >> shannon: as the case develops we want you to come
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back and see how it plays out. >> thank you, both. >> thank you. >> all right. arizona governor is sued again. this time over an executive ord they're denies young illegal immigrants access to driver's license. especially if they have been able to get -- even if they have been able to get work permit under the obama new immigration policy. it involves five immigrants that say governor brewer law or order is making it difficult for them. the governor said she is doing her job. >> the state is the one that licenses the people to drive on the street. it's not the federal government. we don't license kids under 16. we don't license dui drivers. our laws are clear. >> governor brewer ads she is not surprised she is sued. the supreme court you will remember upheld the most contentious parent of the state 2010 immigration law that allows them to check the immigration status and enforcing other laws. you think her order is
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reasonable or does it go too far? tweet us your answers and we'll read some later in the show. u.n. ambassador susan rice is one of the most polarizing personalities in politics now. would she make a good secretary of state? up next, fair and balanced debate.
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>> shannon: protest in egypt sparks corn certain for egypt's highest court. bottom of the hour, peter doocy has the top stories. >> reporter: egypt supreme court stopped work on ruling about the group that drafted egypt new constitution because of concerns about protests near the court. thousands of morsi supporters as well as detractors taken to the street to argue their side of the issue. we are learning more tragic details about yesterday's
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murder-suicide involving 25-year-old n.f.l. player vovan belcher. police say he killed his 22-year-old girlfriend and then drove to the kansas city chiefs stadium and killed himself in front of his coach and general manager. the two had reportedly been arguing frequentbely before the incident. police in miami say the driver that caused a deadly bus crash there was not familiar with the area and drove in to a concrete overpass. two men were killed. federal records show the bus company, though, does not have any violations for unsafe driving. aides to former president george h.w. bush expect him to be released in the coming days. bush 41 is in stable condition at a hospital in houston where he is being treated for a cough related to bronchitis. those are the top stories right now. back to you. >> shannon: peter, thank you. u.n. ambassador susan rice is on the short list to replace secretary of state hillary clinton.
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but it would be controversial choice for obama, one that key republicans say they plan to block. here for a former balanced debate. editor of chief of the washington free deacon. gentlemen, welcome. >> great to be with you. >> shannon: does president obama really want susan rice under oath in front of a group of some, some will be hostile senators who have questions about benghazi? >> i think if he chooses to go that direction, it's -- he has that right. now look, susan rice went through the talks last week. some went well, some didn't go that well. but i think that overall, if it's the president's -- it is his option to do it. i think right now, you know, it looks like he probably will. but i don't think he, my sense is that -- she hasn't done anything yet that is going to disqualify her. senator lieberman said that. you have most of the senate democrats who are rallying behind her. i think if she was put up, i think she would be confirmed.
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>> shannon: matt, doug mentioned the meetings with the senators this week. some say it's the early making the rounds and trying to make nice as if she is going to be the nominee for secretary of state. some of those meetings that doug mentioned did not go well. there were those that came out and said they were more concerned than they were before the meeting with her. what uphill battle do you think she would face? >> large one. there is a happy senior senator from massachusetts right now. john kerry, who is considered also in the running for secretary of state. the why i see it, susan rice had two auditions. the original audition, five sunday talk shows where the famous talking point controversy emerged. that didn't go well. now a second audition meeting with the important republican senators, including susan colins from maine who is not a tea party dye in the wool die-hard red meat conservative who said i have more concerns now after the meeting than before. i think her nomination has not begun. it's in trouble. >> so that point, she had rehearsal over the long career. it hasn't just been two
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months. she has had a long career in the foreign service. she worked in the clinton administration. she has done a good job in this administration. so i think to minimize her career down to two months is a mistake. >> shannon: but they are obviously -- she is under oath and there will be questions that haven't been asked before that some will be -- >> including for broad sweep of that career. we should remember not all the criticism of susan rice comes from the right. there are left wing groups with trouble with the stances she took in the debate over rewanda for example. susan colin mentioned she was concerned over the warnings in tanzania and kenya bombed in 1998. even david ignacious who said i talk to people who worked with susan rice. and mixed reviews. not sure that is the person you want nominated for secretary of state as you
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start the second term. >> there is the other half of that column, which is positive for susan rice. as far as what happened in 1998, there was a state department report on that and found that susan rice had no involvement there. my sense this broader discussion on benghazi, i think folks are missing the point. that is what happened on september 11 was security, who was involved a trying to get the folks and making sure it doesn't happen again. i think that is where the whole what is going on with susan rice, i think we are missing the boat. there is where the president wants to go. i think that is where largely the american people want to go. an most of congress except for a handful of senator republicans. >> shannon: well, still a lot of unanswered questions on benghazi, before, during and after. so if she is under oath maybe that is an opportunity to ask the questions reamly quickly, one-word answer. who has a better shot at this point of getting nominated rice or kerry? >> probably say that susan rice will be nominated.
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>> kerry. >> shannon: gentlemen, we will have you back when we find out and see who was right. thank you both. >> thank you. >> shannon: family friends and teammates trying to come to death with terms of a death of an n.f.l. player and his girlfriend. we will go live to kansas city with the latest on the investigation after this break. ♪ [ male announcer ] lifts to clear obstacles. ♪ lowers to cut drag. rises to every challenge. the class exclusive air suspension in the new 2013 ram 1500. engineered to move heaven and earth. guts. glory. ram. share "not even close."
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>> shannon: the national weather service issued flood warnings for two rivers in northern california. russian river is expected to overflow the banks today. napa river could flood by tomorrow. they issued the flash flood warnings for two counties. earlier storms knocked out power to thousands. >> shannon: we're less than 30 minutes from kickoff in kansas city, missouri. yesterday arrowhead stadium was the site of belcher's suicide. shortly before that police say
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he killed his girlfriend. from the affiliate, live in kansas city with the latest. >> reporter: well, it looks like a normal sunday of chiefs football. there is a dark cloud over the sea of kansas city chiefs red. they have been tailgating since 9:00 this morning. many finish cooking on the grill and the talk of chiefs player belcher killing his girlfriends perkins and then killing himself is permeating throughout the parking lot. kansas city police were called to the home of bellsh saturday morning after someone called 911 to report that he shot his live-in girlfriend and mother of his 3-month-old daughter. 30 minutes late every, police say belcher killed himself outside the chiefs' practice facility. in front of the chief g.m. scott pioli and head coach romeo crennel. chiefs fans have mixed feelings about the game play today but many hope that the chiefs will honor belcher with a moment of silence before the game. there is no word from the
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chiefs will that is part of their game plan. monica evans, fox sport working for you live at arrowhead stadium in kansas city. >> shannon: monica, thank you. [ inaudible ] one says yes, he fears president obama is targeting gun rights in the second term. a little later, china great wall of cash is revitalizing the struggling u.s. housing market. but is that a good thing? we'll investigate. >> special olympics. >> in a worthy cause, i tackle my fear of heights for the special olympics. each week they use the headquarters as profiles people helping people and we will introduce you to a special athlete. [ male announcer ] when was the last time something made your jaw drop?
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>> shannon: egyptian president mohammed morsi set a date for draft constitution, but the draft is hanging in legal limbo. the highest court is postponing its ruling on the legitimacy of the assembly that wrote it because they fear the protest happening
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near the court. opposition groups continue to protest morsi's power grab while supporters are protesting action by the court. come thursday, adults in washington state will be able to legally smoke marijuana. that is the day the drug will be decriminalized. the justice department has given no guidance about the state conflict with federal laws. prosecutors started to dismiss some misdemeanor cases there. west point first same-sex marriage ceremony takes place today. veteran brenda fulton will tie the knot with her partner. she graduated from west point in 1980. that was the first class of cadets that included women. 'tis the season to give a helping hand. right here in america news headquarters we are highlighting those who give their time helping others this holiday. this sunday we focus on how the special olympics help kids with intellectual disabilities. there are chapters all over america. joining us now is vice president of the virginia special olympics roy zeigman and special olympics athlete
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john franklin stevens, global messenger who advocates for many with disabilities throughout the world. thank you for coming in today. nice to spend time with you. >> thank you for having us. >> shannon: row, i'll start with you. give us a little of the overall view of the mission, 365 days a year. >> special olympics is an organization that provides sports training and competition for children and adults with intellectual disabilities. we have nothing to do with sports. we are about experiences. sports is just a vehicle to bring the general public and our athletes together so that you can learn that we have a whole lot more in common than we do that differentiates us. >> shannon: frank, you are busy. you compete in basketball, but you speak in public as well you act as well. tell us about what is special olympics means to you. >> well, special olympics means a lot to me. i have -- look, special
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olympics has been part of my life since i was eight years old. i have done a lot of sports. >> shannon: yeah, you say right now basketball is one of the things that you are doing. but there are all kind of things. look, i think we have a chickture of you. there you are in the basketball uniform and there you are speaking as well. what about this organization makes you want to go out and share about it and tell about it? what do you want people to know? >> okay, can you say that again? >> shannon: yeah. what do you want people to understand about special olympic what is it means to you or other people? >> i want them to understand that there is a place for people that can feel, that there is a community that they can be accepted by. and that competing can get people confidence. and that there is a platform,
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so that people can share message of tolerance. >> shannon: you are very busy doing that. we know. going out and speaking, representing the organization. roy, part of what we're doing in highlighting the different groups is that we want to let people know how they can get involved. what are the ways that the viewers, average folks can get involved in helping the mission? >> what we want people to do, we're experiencial organization. we want people to come out and have an experience. in virginia, for example, january 10-12 we do experience for high-functioning tennis players. at the boorshead in charlesville -- boarshead in charlesville. we do an event called fanfest where we bring together two high schools. and fill the gym and have a special olympics basketball game and then others. there are these kind of activities that go on across the country. go to any of the special olympic websites and go and visit. if you want to support us
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financially, everybody needs financial support to make it happen. we are sending four athletes to the special olympic world winter games in south carolina in january. it costs about $30,000 to send those four athletes. so, we are always looking -- you can go to our website and click, donate now. that fund, those funds will help us send athletes there. it will help athletes like frank continue to spread a message of tolerance and acceptance and inclusion throughout virginia and country for us and everyone else. >> shannon: well our team at america news headquarters had a chance to do repelling. you saw the video there, we were able to and happy to raise money to try to support special olympics of virginia. and there are so many ways people can get involved. i'm looking very graceful there and terrified. but it's a small thing we can do. we know many others and make sure they have information to know how they can help as well. frank and roy, thank you for coming in. we wish you the best. happy holidays. >> happy holidays to you.
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thank you very much. >> shannon: thanks. special olympics is one of many groups that we're showcasing this holiday season. we have also want to hear how you out there are holiday helping in your communities this season. we set up you report on the home page. rick and wendy wrote in to say they filled trailer from donated pet supplies from michigan to assist garden yas of rescue. they say it's a blessing to serve others in desperate need. a lot of folks don't have electricity in their homes. send us your story and go to there is a section there where you can click you report. that is the letter "u." ureport under the holiday helpers section. in the next several weeks we will choose your stories and we love to share theirs on air. so folks can see how you are helping and many inspire them as well. well, something you may not hear about much, but foreign investors are a major force in the u.s. housing market.
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>> shannon: at first glance it may appear that the housing market is turning around. new numbers show home prices increase in major cities. but here is the catch. not all the buyers are from the u.s. chinese and more are buying more and more homes on the
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west and east coast. fox news correspondent william la jeunesse on the chinese factor in the u.s. housing market. >> well good news for sellers and a green light for buyers according to new data out tuesday morning. the housing market appears to have bottomed. prices are up in the majority of america's largest cities. by more than 3%. including places like atlanta. and las vegas, which have been down for years. in many areas, foreigners are fueling the fire. the national association of realtors says non-american buyers bought $82 billion in homes last year. up 25%. $7 billion from the chinese. some paying cash for high-end multimillion dollar homes with special kitchens. in-law suites and koi ponds. >> they are probably the top 1% of the managed speakers coming from china. there is the people who have their own businesses, or maybe were part of the government.
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>> they get a huge bang for your buck. you get land. you get good schools. you get a safe environment. nice community. >> with a relatively weak dollar, chinese buyers get a bargain here and foreigners are going to states hard hit by foreclosures, latin americas to florida. mexicans to texas. asians likeness and california. among chinese, 40% of the homes are being bought as an investment. mainland china has one million millionaires and nearly half say they want to invest in the u.s. >> it's a sign, you can show off to your friends or family that i can buy overseas. not everyone can do it. >> the big picture after crashing in 2007 prices are back to levels we saw in 2003. before the housing bubble.
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>> shannon: thank you. >> this is a fox news alert. the dowel on democracy. president morsi pushes for plan for new constitution, after granting broad new powers that many call the overreach. they have protest. we have live team coverage from steve centanni in washington. steve harrigan in cairo. and that is where we begin. steve? >> the supreme constitutional court justices suspended their work in cairo because a crowd of protesters surround their building when they try to go to work this morning. the protesters are loyal to the egypt president mohammed morsi. the supreme court justices said they felt intimidated both physically and psychologically. so they will not continue their work indefinitely.
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they are likely to rule on legitimacy of the assembly that passed draft constitution on friday. the next step for draft constitution in egypt is to go to a national referendum on december 15. whole nation will vote up or down on that constitutional document. if it succeeds, president morsi said he will give up the extraordinary powers he assumed last week. move that set off the street protests here. as far as the protests go, we are seeing a few thousand people behind us in tahrir square who are anti-morsi protesters, with a much larger showing yesterday. 200,000 people. many of them from the muslim brotherhood coming out to show their support for the embattled egyptian president. back to you. >> shannon: steve, thank you very much. we continue our live team coverage with steve centanni. live outside the egyptian embassy in washington. where we understand there could be protests today as well. hello, steve. >> hello, shannon. yes, there will be protesters here. several hundred people expected here today. also embassy in new york and
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boston, egyptian embassy in washington, d.c. sentiment is running strong on both sides of the issue. for an against morsi. we have somebody absolutely opposed to president morsi here. why do you think morsi is doing the wrong thing? a guy in charge and -- this means that is not at all. [ inaudible ] >> do you think he is taking awer totarian -- >> of course. mubarak took 50 years to reach this point. making this in five months. >> reporter: thank you. why do you support the president? the only democracy that we agree on. i mean the regulations and the
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rules of democracy is get to the balance and vote. vote. >> reporter: but he apolished the courts. isn't that authoritarian stand? >> he is not against court. in the beginning he wanted to get parliament back to be meeting again. but it prohibited him from so. his power and his skull and tapabilities to be able to take the country and move forward. okay? now it's dictatorial. >> a deep disagreement over the ast taken by president morsi in egypt. >> thank you. >> shannon: secretary of state hillary clinton says last week u.n. voteranting the palestinian liberation organization status as a nonmember state with observer status is a step in the wrong
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direction. >> we support living side-by-side in peace with israel. this week's vote at the u.n. won't bring the palestinians closer to the goal. it may bring challenging to the united nations system and israel. >> shannon: secretary clinton adds the only way for lasting peace in region is for palestinian leaders to sit down with israel and come up with a two-state solution. the u.s. opposed the resolution on thursday. two big guests on fox news sunday. discussing the stalemate of the fiscal cliff between white house and republicans on capitol hill. i sat down with the anchor chris wallace to hear more about the exclusive interview interviews. >> you had two key players. >> we had tim geithner the point man for president.
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and john boehner, the point man for the congressional and house republicans. >> geithner made the offer to boehner on thursday. boehner said, tells us, he was flabbergasted and said you can't be serious. it called for doublebe what the president talked about in public. not $800 billion in new revenue but $1.6 trillion in revenue. only $600 million in entitlement and spending cuts. well, that is not one to one or three to one. more revenue than spending cuts. they are really far away now. i understand negotiations. i understand opening bid. for first time, it occurred to me they might not get it done. >> you get a sense hearing from both of them that is a real possibility. what do you make of the negotiation of the tactic?
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it seems like what secretary geithner behalf of the president brought to the table. reports that senator mcconnell laughed out loud when he got the report. is it posturing and are both sides enfrenched they won't find middle ground? >> possibility. let me take the optimistic possibility here. that would be that with the white house demanding one $1 $1.6 trillion in revenue. gets to 1.2 or trillion dollars that would have been unaccept to believe republicans. boehner can go back to his constituency and the house republicans to say look, i had a big victory there. interesting on spending rather than them look like the guys because the president has problems with his base. he has the unions saying we don'don't want you cutting entitlement or social programs. he wants republicans to own it. they will take responsibility for it.
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is there a possibility of a deal? sure. implications, people have to remember, this isn't some washington game here. the average american will have a $2,500 to $3,000 tax increase. this is serious business at the beginning of the year. >> shannon: we debate that with the panel and power player i think will be thought-provoking for a lot of folks. they won't want to miss it. >> thank you. >> shannon: thank you, chris. you can watch the entire interview with treasury secretary geithner it go and the exclusive interview with the speaker of the house john boehner right here on fox news channel. that airs after america news headquarters. well, one senator described what is playing out on capitol hill as real drama. senator richard shelby said the world markets are watching and america may be on the verge of a disaster bigger than greece. senator shelby republican from alabama joins us live. thank you for coming in today. >> thank you. >> shannon: what do you make of where we are right now? because, you know, to hear
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that the treasury secretary went to the hill with the white house with the president's proposal and that republicans actually laughed because they didn't say it was believable, it sounds like we are nowhere. >> i think the real impasse. the clock is ticking. this is december. and we know what happens on december 31. but i believe the president is going to have to meet us at least halfway. if we could do this, we could do a lot of things. i think that speaker boehner, senator mcconnell want to do something. if the president is determined to have more taxes. more spending. and cuts later, that is not going to work with the republicans. if so, i hope we won't blink at the end of the day. >> shannon: i want to play a sound bite from a colleague, senator lindsey graham from south carolina. here is where he said about where we stand right now. >> i think we are going over the cliff. it's clear to me they made a political calculation. this offer doesn't remotely deal with entitlement reform in a way to save medicare and
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medicaid. and social security from imminent bankruptcy. it raises 1.6 trillion on the job creators. that will destroy economy. no spending controls. >> shannon: across the board, bad things are going to happen. both sides of this equation agree if we go over the cliff. senator graham seems convinced that is what is going to happen. >> i'm not convinced it would happen. but the road we are going down right now is more likely to happen. we can't avert it. but i hope that the republicans will not cave in to the democrat demands. more taxes, more spending, cuts later, because the cuts never happen. we are at a crossroad now. the president has an opportunity to lead. he has to get involved rather than run all over the country and politic. the election is over. but this is real stuff now. it affects everybody in america. it will affect our economy. >> shannon: absolutely. now you say you don't want to
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see republicans blink fire department you talk about the revenue on the table are you opposed to raising the tax rates? >> the first thing i'm opposed to raising rates. individual taxes. a lot of ways to skin the cat here. but the president seem determined to raise the rates. that is not going to help the economy. of it seems vindictive to me. what we ought to do is try to reform our tax code and lower rates. maybe we'd have revenue. but revenue by itself will never keep up with the spen spending. >> shannon: what about the mortgage deduction or charitable duction? there are things that come up with discussion. are they on the table? >> i think mortgage deduction is very important to the housing industry. first term home buyers and so forth. we ought to look at
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everything. charitable deductions fuels a lot of university and the charities. but all the things are substantive. it's a question of what does america really want. they want good economy and jobs. >> shannon: i want to ask about the other issues going on. u.n. ambassador susan rice, a feeling she is on the short list of the president potentially to nominate here for secretary of state. if it happens she has to come before you in senate. she will be underoath. what questions do you have for her? >> my first question to her. i'm not on the foreign relations committee. my question in the senate would be what did you know? before you went on five shows. where did the information come from? whatever she spoke to that morning was blatantly wrong. i think there are a lot of answers to come forth with.
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>> shannon: do you think she could get through the senate? >> i don't know. right now, that is troubling. her nomination is troubling to me and troubling to other people. i think everybody ought to have a fair hearing but we should not rubber stamp anybody's appointment. >> shannon: what do you think about the fact that the president defended her and said she was simply speaking spg from the information she was given? is that a good enough answer for you? if not, where do you fall on that trail? who do you ultimately blame for the information she was given and presented by benghazi? >> she is entitled to a hearing if nominate and she will get one and we will go from there. she has a lot of things to explain. will she do that? will he nominate her? i don't know. a lot of questions we don't know the answer to yet. >> shannon: we will see if she is nominated and the senate has the opportunity. senator shelby we appreciate your time on all the topics.
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good to see you. >> thank you. >> shannon: fair and balanced. alaska democrat senator mark begich will join us to talk about the fiscal cliff and benghazi tragedy and whether he think thinks thinks that ambe would make a good secretary of state. we told you about order from jan brewer to prohibit illegal immigrants from getting a driver's license especially if they took part in president obama worker permit program to allow them to stay here and not be deported. the governor is being sued by immigrant right advocate. hot button issue. we ask you is the executive order reasonable or does it go too far? pete rice no, it doesn't go far enough. another viewer writes in and says this is prague that advertisem and integrity of law. there is a good argument for both sides. tweet us -- we will read more of your answers later in this show. ♪ ♪ >> shannon: northern california residents bracing for more flooding today as a
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third storm brings heavy rain to the area. northern bay area got more heavy rain last night. close to ten inchs. flash flood warnings are nefect. dominic di-natale is live with more. hello. >> reporter: hi, shannon. we have been having one inch of rain per hour since the early hours this morning. flash flood warning across the entire region. most residents are nervous the city of napa where in 2005 they had massive floods. that destroyed or damaged a thousand homes. this time the officials are saying that they are prepared for one, shannon. >> because of the history of flooding in napa we have a good idea of where the water will come out first. we know there are certain points so we can plan in advance. at this moment if the projections of the rainfall totals are accurate, we are probably looking at the street flooding. intersections being flooded. nothing terribly serious.
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i say it with a caveat. >> reporter: the floodwaters expected to rise about two foot above flood levels. that should happen between 1:00 p.m. and 5:00 p.m. eastern time. you are looking now at south of petaluma where the petaluma river is expected to flood in the next couple of hours. the weather front is moving south, which is why you are seeing all that gray cloud over there. we have got flood warning for pen grove, willow creek and marion county. ton of truckee near lake tahoe is described as a ghost town because they expect the floodwaters there to rise four foot above the flood level. expecting the town to be inundated and dangerous conditions around the bay area. more details in daly city where a female driver collided with an abandoned car in heavy rain. she couldn't see it apparently. a third car came along and
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slammed in the back of her and killed her tragically. we are hearing that also there are now 12,000 utility customers without power. that could get worse throughout the day depending how bad the floodwaters get and if they hit any transformers. three more hours of rain expected to hit the region. back to you. >> shannon: dominic, thank you for the latest there. get this. the obama administration has proposed nearly 100 new regulations. in the past three days. some fear many more are coming and they could involve your right to bear arms. we take a closer look at the second amendment issue after the break.
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>> shannon: in the last 90 days the obama administration proposed 5,798 new regulatio regulations. some fear there is another one on the way to impact your second amendment rights. after the election, a lot of sales of guns after there were fears restrictions could be imposed. gun right expert mr. schneider joins us today.
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thank you for your time. >> good to be here. >> shannon: i want to ask about something you wrote about. according to the confidential information that forces linked with the administration are suggesting that government might re-classify firearm and weapons changing their status under the national firearms take make it more difficult to get that. what can you tell us about that? >> well, according to the confidential information i have, semi-automatic firearms or certain semi-awe mattic firearms thunder scenario would be declared as title ii national firearm act firearm. the false argument they use for this is to say that certain semi-automatic firearms can be easily made in to or changed in to fully automatic fire arms. this is untrue, of course. but of course this type of thing has not stopped this administration in the past. this would mean people who
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wish to acquire semi-automatic fire arms would not be able to acquire them unless they were willing to get the prior approval of the government. and pay $200 fine for each separate firearm. this, of course, would generate tremendous a animosity on part of hundred of millions of firearms on the americans in the united states. could lead, i think, to a move in the house of representativ representatives to slash the budget of bureau of alcohol, tobacco, firearms and explosive, which would be the agency, the obama administration would order to pursue this endeavor if it chose to do so. >> shannon: my understanding is the way you laid this out congress would not be involved in the process. our elected representative wouldn't involved. you mentioned that possibly through the bureau of alcohol, firearm and explosives what would happen is this would be a move by the administration that would go in to effect.
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without the legislature getting involved. >> that is the problem. shannon, you see the gun-grabbers in ice for years wanted to de -- in the united states for years want to deprive law-abiding citizens obtaining firearms, especially in this case semi-automatic firearms. there is move to try to been a the semi-automatic firearms or certain firearms but they probably will not get very far with this proposal. because there simply is not public support for it. so the gun grabbers would rely on the boy in the white house to use executive order in this way to try to been a them. to keep law abiding citizens from being able to obtain the firearms for legitimate purposes. >> shannon: the white house each time that the gun rights issue has come up said the president and the white house have no intention at all of depriving americans of the
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second amendment rights but we know there is a u.n. treaty that the u.s. is now involved in negotiating and hammering out to deal with the gun rights. so we will keep a close eye on what you tag on and on the treaty as well. we will keep folks throughout updated. john schneider, thank you for your time. >> thank you, shannon. thank you. >> shannon: well a new report by the "washington post" says the pentagon plans to add hundreds of new spies. they will come from defense intelligence agency which is shifting gears to become a spy service after being focused on two wars over the past decade. the agency would work closely with the c.i.a. u.n. ambassador susan rice is under fire for what some call misleading comments on the benghazi terror attacks. now, fresh controversy. this time it's not related to libya at all. [ male announcer ] introducing...
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>> president mohamed morrisey has set a date for a preference
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dumb on a constitution. the highest court in the country is delaying their decision. they continue to protest his power grab while they are protesting the courts. more details about yesterday's murder-suicide involving 25-year-old nfl player javon belcher. he killed his girlfriend and drove to the chief's stadium and killed himself in front of his coach and manager. they said it's been an incredible 24 hours for our family. >> and the veteran will tie the knot with her partner. she graduated from west point in 1980. that was the first class of cadets that included women. israel is rejecting the un's endorsement of statehood. first they said they would build new settlement in the west bank and now it's promise to withhold more than $100 million it owes to the palestinians.
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we are live from jerusalem with more on that. david. >> the money being withheld are taxes and customs that the israeli government collection on behalf of the palestinians. the israeli government now says the money is going to be diverted to pay for outstanding bills owed to israeli cops. in particular one of not companies, the state owned electrical company where they electrical company where they this also happened about two years ago after they joined unesco. the u.n. agency for cultural activity. and in the city on the west bank a celebration took place to welcome home the president, he told the crowd that what happened at the u.n. was in his
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records a historic achievement. meanwhile the palestinians, as they were celebrating israel's settlement activity on the we felt bank continued n response to the u.n. vote they said they were planning for additional construction in this very same area but actual work could be years away. forecast also gave the green light to construction for three other other units in east jerusalem and other places on the west bank. at the weekly cabinet meeting, president netanyahu dismissed settlement and said we will carry on building there and all other plays on the map of israeli ace strategic interests. if they continue with their plans, the palestinians say that will destroy any chance of a viable palestinian state on the ground. the u.n. called the latest settlement plans counterproductive. shannon. >> david lee mill wet latest. thank you. >> all eyes are on the white house. the country doesn't need a
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victory lap, it needs leadership. >> that was house speaker john boehner during a press conference on thursday talking about what he believes is a lack of leadership on negotiations over the fiscal cliff. are they doomed or will the two sides find compromise in time in joining us a democratic senator from alaska, senator mark. >> thanks for being here. >> what do you think about the fiscal cliff. >> even though we don't like the plan, we voted on reductions that would take place starting january 1. we know the bush tax cuts expire january 1. it's the plan a. no one likes the plan a but that will happen if we are unable to have some sort of long-term plan or at least some effort moving forward. challenge right now, to be to be
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hon with you, is everyone keeps having bumper sticker claims as they get interviewed and what has to happened is we have to cut the budget, no question about it, deal with the revenues and tax reform and we will have to invest in things like education and infrastructure that's falling apart in this country but we have to do all three together and no one wants to do all three. they are all still positioning and it's like the campaigns have never ended. the wall is coming. plan a is going to take place january 1 and it's going to be a bumpy road if we are unable to get down the path. there's a lot of conversation, but it's time now, people say let's kick it off a little bit. we know the answer. it is going to be no fun making the decisions. that's the problem. everyone doesn't want to make a decision that makes people upset. well, we've got a 40-year headache that's accumulated, a huge debt and deficit and we are just going to have to make some stuff calls. we have to do it now. >> one of your colleagues we played earlier, republican lindsey graham said he thinks there's been a political calculations and we're going to
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go over the fiscal cliff. he doesn't think a deal gets done. where do you put the odds at this point? >> well, you know, it's a great question. i give it about a 40% chance we could pass something of some magnitude. not a grand plan, but some magnitude. keep in mind again, you know, people call it a fiscal cliff. when you go off a cliff you usually die. my view is there are challenges in front of us. we've had them before. this is pretty significant. but we have a plan in place. no one really likes it, but at the end of the day come january, these things start to happen. the deficit gets a reduction because the tax cuts go away, the budget cuts go into play. the question is are we going to have the wherewithal to give some long-term certainty to the market so they don't have this up and down action of congress. after four years in congress i have to tell you it's one of the most disturbing thing i've seen, the lack of foresite of looking two, three, four, five years down the road. everyone plays to the next week. give it about a 40% chance of
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some element. the big question is have the markets worked into some of their pricing on stocks and bonds and so forth, some of this anticipation of going over these fiscal challenges? i think they probably have to to a certain degree. but it will be a rough road and maybe that's what it takes to get some folks to straighten up and ghetto cussed on dealing with this pretty significant issue. again, democrats, republicans, everyone played into this over the last 40 years. now the bill is due and we've got to pay the bill. >> let's talk about some of what the white house has proposed at least in their opening offer here. $1.6 trillion in additional tax revenue of some form. billions more in new stimulus spending and about $400 billion in spending cuts. that doesn't sound, just to the average observer, as a balanced approach. is it just an opening salvo or is that a legitimate offer by the white house? >> i don't know if it's legitimate or an offer to be put on the table. i will say this, the 400 is not
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enough in cuts. we have a three-plus, $6 trillion budget. remember these are ten year numbers they are giving you. when they say $400 billion, it's 40 billion a year. not a lot in the big picture. you have to move the number up on the revenue end. there's no question we will have to deal with the revenues and we can't afford the full package of the bush tax cuts, that's clear. we have a bill that as you know passed the senate and it's sitting in the house right now. it takes care of 98% of the taxpayers of this country. we should get that passed and then move forward on additional cuts. and i'm not sure, the stimulus idea, we have legislation already pending. we have a transportation bill that passed. that's it's own stimulus. we have a water and sewer bill that's an annual bill. that's a stimulus. i'm not sure we need to have a bunch of new programs. we need to fund some of the ones we have that build the current infrastructure we already have. i think it's an opening, but
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both sides have to put their offers on the table. we are waiting for the other side to tell us what they are thinking about medicare and social security. i know they want to reform those or reduce them or something. let's put it all on the table and let's deal with what they are proposing. but we don't know what the other side is yet proposing. you know, i'm happy to look at whatever is going to be on the table. but it does need to be more balanced and i agree with you on that. >> all right, senator mark debhad of alaska. thank you for your time. >> thank you. have a good day. >> and the president of egypt finds himself among growing protests in egypt and here in the u.s. we will talk with fox news terrorism analyst dr. alid ferris. r vegetables. [ clock ticking ] [ male announcer ] there's a better way... v8 v-fusion. vegetable nutrition they need, fruit taste they love. could've had a v8. or...try kids boxes!
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>> right now protests are set up outside in egypt. we will talk about the increase in protests and what it all means. terrorism analyst dr. alid ferris. thanks for coming in today. >> thanks for having me. >> this is coming from reuters. the judges in egypt are being asked to comment on the legitimacy of the new draft constitution and the new draft referendum scheduled december 15th. and the body representing the judges, we are told, will urge their members not to supervise the december 15th referendum on the constitution. what does that mean now? >> it means two things. number one is that the courts themselves have refused to serve the executive branch because they believe the draft of this constitution goes against the principles of democracy and freedom. in addition to that, a so-called union of judges, the so-called club in cairo has asked their own membership not to supervise the referendum.
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what that means is the referendum on december 15th won't be valid in terms of supervision and that would call on an international supervision. that's something that president morsi doesn't want to do. >> and we have sort of the standoff between executives and the judicial branch in egypt and there are people protesting there and they are protesting here. we are covering it at the egyptian embassy in washington and other places in the u.s. what will be the resolution between the two groups? will it be a peaceful one? >> it depends on president morsi. if he wants to rule, and the faction that is supporting him and leading them to become an islamist state and only the way they interpret it, that will be -- but if not, there to be a negotiated solution. >> if he agreed to do that, with the more radical factions that
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helped him get where he is, would there be a way they accept. >> that they are so close from implementing the dream they had for 80, 85 years would back off and they putting pressure on him. he knows if he starts opening up the liberal element is going to ask him to protect the rights of minorities, women and the second class. he has choice but to go forward. and what position we will take in regard to this crisis. >> what do you think we should do at this point? the state department has spoken out about the proposals and the decree he did, giving himself broad new powers. what would you like to see from the white house? what would be appropriate. >> we should side clearly with civil society. that's what american policy has always been, to side with civil
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society versus any form of terrorism. and what has happened the past two years the obama administration partnered with the muslim brotherhood thinking the muslim brother hood is the main component of quality. now we see millions of the people on the ground do not like the muslim brotherhood and are opposing that form of government, i think the obama administration instead of partner with one faction, play the mediator between two factions. >> and taking what has happened in that region, what do you make what is happening about egypt here and how it will be settled. >> if you remember two years and a half we sort of projected would be a new move against all dictatorship. it worked in different ways in other countries, but stage two is an attempt by the islamist components of these uprise to go seize power and transform the arab spring into an islamist
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regime. what we see now is a backlash. societies in those countries are aware a seizure by the islamist movement will cost them freedom. we so a race between the seculars and the islamistss. between toes for freedom and democracy and those for an is lamb ofics state. it will be decided on the ground and also by the international community. >> it's helpful to have your insights. thank you very much. >> thank you for having me. >> his self improvement book has been a best sell foreare a decade. the pastor is sharing knew advice. find out what he told anhq that is making it one of the most popular stories online. [ male announcer ] red lobster's crabfest ends soon. hurry in and try five succulent entrees, like ourender snow crab paired with savory garlic shrimp. just $12.99. come into red lobster and sea food differently. and introducing 7 lunch choices for just $7.99.
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egypt's high court delayed a ruling on a panel that approved president morsi's power grab, sparking protests from his supporters. it's one of the the most clicked stories online. peter has more. >> and the reason for the delay is, quote, administrative. the court was set to rule on the legitimacy of the panel that approved the draft constitution. morsi supporters are gathering in front of the courthouse. a ruling is expected to -- is considered a challenge to morsi, who decried himself and his assembly above any kind of
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oversight and a new date for the ruling has not been set. another popular story on is an interview we did on american news headquarters this weekend. a decade later, famed pastor and author of the purpose driven life, rick warren, and rereleasing his best-seller. he stopped by this weekend and now his message of hope is one of our most clicked stories. it's been revised to target a younger generation struggling with the recession. for more log on to and a bizarre scene unfolded at the house freshman office lottery on friday after several new members of congress pulled lower lottery numbers. new members and staffers stepped up their game. one chief of staff, alison jazlo, even did a cartwheel and it worked because she pulled the number one. you can read more on >> i think that is awesome. >> if you can do a cartwheel,
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then it is awesome. she'llly she had done one before. if that was the first time she tried it and it didn't work, not awesome. >> do you think you could do one for us? you are like 6'11". >> yeah, i don't want to put out a ceiling tile. it will come out of the security deposit. >> we will get back to you on that. thanks, peter. >> okay. >> and the stalemate and all the up and downs on the stock market has a lot of small business owners squeamish. small business owners are now more pessimistic than they have been at anytime the last two years. we breakdown details of the survey. hey, brenda. >> americans are feeling pretty good about the economy. better than they have since the financial meltdown and the housing market rebuilding finally. is that big news for small business owners? you might think so. but they aren't smiling. in fact, according to that gallop poll just out the optimism of small business owners are small fast. biggest drop this quarter since the fall of 2008 when the
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financial world threatened to implode. the index, which surveyed 600bis owners about a week after the presidential election plunged 28 points to a minus 11. that's the lowest level since the end of 2010. and before 2008 most readings were above 100. so really quite a fall. now there are tough numbers behind that lack of confidence. more and more small businesses showing revenues down, along with pay rolls and investments as well. that's not just for the last year, but they expect the same in the year to come. now a lot of this pessimism has to do with the fear of falling off, know what, the fiscal cliff. if washington does a deal, small businesses may feel brightner the next survey. but for now the uncertainty means owners, who are the biggest drivers in employment, are less likely to hire more workers or invest in growth. one in five said they will cut their workforce the next twelve months. that's the highest since the survey began ten years ago. one in three predict they will
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slash capital spending the next year too. here is how gallop summed it up. survey suggests the u.s. economy is extremely fragile and possibly susceptible to another recession. we will take a look at what exactly the fiscal cliff means to small business owners and what they can do to prevent any damage. they could be among the hardest hit if we don't get a deal. shannon, back to you. >> so many consequences. all right. thank you, brenda. we asked, you answered. up next, your time to chime in on today's twitter question. and a must-see kicker video you do not want to miss. try running four.ning a restaurant is hard, fortunately we've got ink.
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call today. ♪ >> more controversy swirling around ambassador susan rice. this time from democrats. she reportedly holds stock in the company behind the controversial keystone pipeline. they said it could be a clear conflict of interest because rice is presumably on the short list to be nominated as the next secretary of state, and the state department, of course, would have to sign off on the keystone pipeline. ♪ joy to the world ♪ the angels did say
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♪ when dave lost his job three days ago he had nothing to give but his time and you heard there several songs. so he started ringing a bell for the salvation army. since then he's been entertaining customers at this idaho grocery store. >> i noticed there was a great echo in this room, and i just got the courage one day to sing a song when nobody was between the doors. >> he's got a great voice. he said the trick to singing for so many hours each day is butterscotch candy. good to know. we love hearing from you at home. we've been asking you, does an arizona executive order that prohibits young illegal immigrants from getting a driver's license even if they got in on a status under a deferral program which means they wouldn't be deported, does this banning them getting a license go too far? many weighed in. totally tucson rights too tough. brewers on the in how main track
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denying licenses to young illegal immigrants with deportation defer always. and others said the state has right to get who gets driver's licenses, period. thanks for sharing. now on the c. storms that we have been following. a little bit more expected there today. about ten inches of rain came in last night. folks are bracing for more. one county is now under alert. of course, we will keep you up-to-date on the flooding there. that's it for washington. fox news sunday is up next. before we go a quick thank you and good-bye to our intern drew brody. he's headed back to the university of maryland and then spain. take a bow. nice to see you there, drew. he's done a great job and we will miss him. we leave you with this, check out peter doocy. you can have fun with the most popular video on youtube. here you


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