general stanley mcchrystal who made those disparaging remarks about the president and other civilian leaders in the obama administration and, of course, that appeared in the "rolling stone" magazine and we all recall what happened last week, that the president accepted the resignation of general stanley mcchrystal and then passed the baton over to general david petraeus who is quite capable of handling the operations there. democrats and republicans, you can expect they will have questions about how petraeus can restore the relationship between military and civilian leadership in the war. they will also likely ask him how he intends to win the war which has become a question mark of late to some members on capitol hill including some people throughout the country and then what strategy will he implement to do so? petraeus will likely continue to implementing mcchrystal's counter insurgency plan, a plan by the way that petraeus helped to co-author in the beginning days of the afghanistan war. so that's the latest. back to you guys. >> kelly, thanks very much. we'll check in with you again and while you were sleeping, we learned that u.s. and u.n. forces launched a monster assault on the board against pakistan. this is video of the troops moments before shipping off to kandahar. their mission -- to destroy a growing insurgent haven and curb rising violence. 700 soldiers are leading the charge in afghanistan. this is an unbelievable story. they lived among us, the f.b.i. says that smoked out 10 russian spies who spent decades living as ordinary citizens in the suburbs of the united states. they reportedly had fake passports and even used short wave radio and embedded photos to communicate and send info back to russia. they lived up and down the east coast from massachusetts to virginia. neighbors we spoke to are stunned. >> i'm just completely in shock. i mean, i didn't know the family that well. but, you know, it was great to have a stay-at-home dad. we were all excited about that. he was at the bus stop. we had no idea. the little girls were the sweetest little girls. >> and later this hour, more about how the suspects managed to get away with this for so long. we'll go live to younkers, new york where two of the suspects were busted. in a few hours, supreme court nominee elena kagan will be in the hot seat at her confirmation hearings. senators get their first chance to question her today. during opening statements, kagan promised to follow the law if she's confirmed. >> the supreme court is a wondrous institution. but the time i spent in the other branches of government remind me that it must also be a modest one. properly deferential to the american people and their elected representatives. >> republicans expected to ask some tough questions today. some believe she's an activist that could use her position on the court to advance a liberal agenda. tropical storm alex picking up strength in the gulf. hurricane warning now in effect for both the u.s. and mexican coastlines. they are bracing for the worst and residents, of course, stocking up on supplies. filling up sandbags while they still can. in dallas, rains continue to flood the streets. frustrated drivers have to deal with their cars being stuck in a whole lot of water. >> we'll update you. day 71, believe it or not. some of the things that can happen today, vice president biden fresh off his debacle at the custard shop will be going down there today. his sleeves will be rolled up and he'll probably be wearing a suit and tie. >> some of the oil has reached the shores of the mississippi and it is thick. the governor there says we need stuff. we need supplies. b.p. says apparently they're working on the relief well. they're 20 feet away but they're going really slow now. they don't want to mess it up. they say they are on track to close it by early in august. in the meantime, last night, former president bill clinton says something we've bee talking about on this program since a visiting scholar in columbia suggested that, perhaps, the only way to stop that thing would be an explosion and that is what the former president talked about last night. >> i think the federal government's position ought to be very straight forward. most important thing is to fix the leak. anybody can help us fix the leak, i'm for it. unless we send the navy down deep to blow up the well and cover the leak with piles and piles and piles of rock and debris which may become necessary, you don't have to use nuclear weapon, by the way. i've seen all that stuff. just blow it up. unless we're going to do that, we are dependent on the technical expertise of these people from b.p. but until that happens, until he makes that decision, to the best of my knowledge, we have no tools that belongs to the federal government to shut that well down. >> blow it up. >> i think what he was saying is if these relief wells do, in fact, fail, then to blow it up. interesting when we had donald trump on the show last week, he was all in favor. he's like why don't we just blow this thing up? apparently they've done this in other parts of the world. >> like russia. >> that may be what it comes to. some people might say why didn't you do that to begin with? >> what i can't believe, some people, cynics, say that b.p. knew this all along. they knew if they blew it up, they would lose the well entirely and never be allowed to drill again. i don't think b.p. would be so narrow minded to think, well, i could lose millions of dollars because they've lost billions of dollars as they try to stop this leak. as they try to help these people clean up the mess. >> you got to -- >> if the government is in charge and they want to blow it up, then they should be able to tell b.p. what they're gonna do. i don't know. it goes both ways. don't want the government involved in everything but then you do. >> exactly right. i was reading on one of the blogs today and it said something like if it gets to the point where the federal government says we're going to blow it up. do you think b.p. could take the federal government to court and saying we own it, we're doing our best. hang in there. there are billions and billions of dollars at stake. in the meantime, 7 minutes after the top of the hour and somebody from the administration weighed in yesterday talking about hey, don't be so hard on us. we tried to clean up the mms but we were really busy! >> there is no doubt that in retrospect, we would have liked to have moved faster on the mms situation but understand that we're -- we were also dealing with economic crisis and the wars and a whole range of issues and -- which that was a defect that we're correcting and moving aggressively to correct. >> we were busy cleaning up george bush's mess. >> i'm not so sure that anyone in any presidential administration should ever admit they're too busy to be able to accomplish all the problems of the world. isn't that why you're president of the united states, because you have that ability? we asked valerie jarrett, one of the chief advisors to president obama about a month ago when we interviewed her that exact question, when we were talking to her about promises that the president maybe had not kept. some might argue that health care was his first priority and jobs came second but we'll have to save that for another time. valerie jarrett, senior advisor to president obama, thanks for being our guest. >> thank you. we have a president that can multitask. >> we hope so. thank you. >> maybe not. >> that's nice that we have a mutual agreement with the daily show, they run some clips of our show and we run clips of their show. it was very nice of them. let's talk about who is going to get paid out and who is not going to get paid out. yesterday, kenneth feinberg was on our show. this guy is as fair as it comes. does he ever mispronounce a word in his life? he pronounces every word and every syllable. meantime, the b.p. guys are in charge. talked about who is going to get paid and what the criteria is. unlike after the 9/11 attacks and he was in charge as the paymaster, when it comes to illegals they will not be eligible even if they're cleaning up the mess. even if they were working on the boats and even if they're affected. no paperwork, no dollars. >> ok, because with 9/11, congress took an exception and what they said was those 11 victim families of employees of windows on the world up at the top of the world trade center, they would be entitled to some of the federal payout and wound up with anywhere between something like $800,000 up to $4 million. however, down at the b.p. spill, because there is no exemption, they're being very careful. if some illegal is working on the cleanup or, rather, trying to get a claim from the b.p. organization, kenneth feinberg is not going to allow it. >> headline here, here's the quote. i think it's very difficult for the fund to engage in any program that violates federal law. >> that's right. >> huh? isn't that what illegal -- isn't that what we're doing with illegal immigration in our country right now? people are asking to violate federal law on a daily basis, right? i find it highly entertaining that we're want going to pay out b.p. money to illegals but we allow illegal immigration and have for years and years. >> they're allowing people to go up and clean the mess, whatever it is and we don't even know if they're going over their backgrounds to find out if they're legally here and one louisiana sheriff says i want to make sure that these guys, these women, whoever gets hired are not going to get some of the money that we here in the community here legally should deserve to get. >> the governor of the great state of arizona, jan brewer, in her face-to-face meeting with the president of the united states, barack obama right there in the oval office, she got the presidents to say yeah, i'll send my team out to arizona and we'll talk about what's going on out in your state. well, they finally showed up. a five member delegation. they met for an hour and a half. after that, the governor emerged and said this. >> we have just left the meeting with the representative from the white house and it was somewhat disappointing. there you go. they're giving more money to mexico, our national guard is being in a process that is at minimum. 524 for 120 days. >> 524 national guardsmen. they would like 3,000. >> for arizona. texas will get 250. new mexico 72 and about 130 of them will be sort of in a national office but it's well below the numbers of what -- rick perry, the governor of texas has been asking for 1,000 national guard, i think, for two years. >> 72 in new mexico is way over the top. small state with very small border. you got over here, you stand over there. that will be good. let's hold hands. >> let's tackle this next topic. i actually tackled it on "the o'reilly factor" before. it has to do with a woman who worked for citibank and apparently, she claims she was fired because she was too hot for the job. but in fact, they had told her that because of her body shape and she wore some skirts they didn't think were appropriate that she would be let go. they claim it's poor job performance. she claims it's sexual hara harassme harassment. >> she got a new lawyer, gloria allred on the case. >> her quote is really moving. she said no woman should have to suffer in silence. >> i would agree with that. >> right. yesterday had a teary eyed presser, she sat there and said she just wants her job back. and the citibank keeps saying she's a publicity hound that loves the camera. >> she's been in the local paper a lot lately. >> and they bring back the 2003 tv appearance where she held -- >> she was in the produce department of a grocery store. >> and she talked about her ban of certain fruit. >> she was going to have breast implants. >> if she faced sexual harassment on the job, she probably has not done a good service for other women who face it on a daily basis. now people will be talking about it like we are. >> overall, should be fired because of your brick house body? that's really the friends at foxnews.com. >> god save me. >> so you can write us. >> can we please go to commercial break? thank you. a shocking story, special treatment for a cop killer. why an accused cop killer -- why a murderer got a funeral fit for a hero. >> and president obama does something really interesting. he meets with lawmakers today to talk energy reform but how will they pay for the master plan? can you say taxes? stuart varney is here to say it a lot nicer. [ male announcer ] at toyota, we care about your safety. that's why we're investing one million dollars every hour... to improve our technology and your safety. it's an investment that's helped toyota earn multiple top safety pick awards for 2010 by the insurance institute for highway safety. no other brand has won more. these top safety picks, and all our new safety innovations are available at toyota.com/safety. >> the consensus up on capitol hill has been that passing a cap and trade bill in an election year was impossible. but it seems some democrats in congress are poised to make an attempt. the president is meeting with senators today. we are meeting with stuart varney live on the curvy couch. good morning to you. >> good morning, steve. >> there's a problem for the democrats and the president of the united states, if he wants to get something done, november is looming. >> yeah, because he will very probably lose the big majority that he's got in the house and the senate so pass something now. show that you're doing something now. and an energy bill essentially beats up on oil companies and you can say they're rotten, they're bad. i'm going to tax you. and we're going to use the money to clean up this mess and we're going to use it for ultimate fuels. it might be popular. >> tremendously ambitious. they'll have a meeting today at the white house and we know that senator lindsay graham will be with david petraeus on that hearing so as a republican, i think right now, only susan collins on the republican side will go. what do you think will be palatable for both sides and realistic for both sides to present something that will pass? >> i think it will be very difficult to come up with something that's palatable to republicans or some centrist democrats. you can call it what you like. you can call it a climate change bill. you can call it cap and trade. you can call it energy. bottom line is you're going to put up the price of energy for electricity and at the pump. the price goes up, that's the nature of this entire kind of legislation. who is going to want to do that as you approach the elections in november. and with the economy really slowing down, there's an awful lot of talk out there we got a double dip recession coming. >> depression. >> or worst. krugman yesterday in "the times" that's what he's talking about. >> i guarantee it they're not going to call it the climate change bill. they learned those buzz words don't sell very well. >> they should call it the congress change bill if they call it the climate change bill. >> good one. >> here's a thing, the house already passed this, remember? a year ago, they passed their version of the climate bill. >> but the political climate, the cultural climate was very different a year ago. climate change was a vibrant subject. we were all worried about it. times have changed enormously. i mean, climate is now way down at the bottom of voter concerns. what is it, 1% to 2% of people are concerned about it. >> the cap and trade thing that emerged out of the house is virtually dead so this is really starting to zero. >> well, yes, but it's narrowing it down. it's really going to narrow it right down. you call it an energy bill but all you really do is tax oil companies. that will be the natured of anything that emerges and i still don't think you're going to get it through the congress. >> stuart, thank you very much. time for you to go and start preparing for your show. kicks off exactly three hours from now on the fox business network. >> thank you. >> thank you, sir. outraged after police are ordered to escort the funeral procession of an accused cop killer who also happens to be the police chief's son. our next guest wants that chief now to step down. >> then a school board struggling to explain itself after shooting down the pledge of allegiance. that students requested. that story is straight ahead. [ male announcer ] how do you turn one box of honey nut cheerios cereal... ...into a free year's supply? be one of thousands to win free honey nut cheerios for an entire year... its great taste helps make lowering cholesterol a non-challenge. just see specially marked boxes for details. musics make lowering cholesterol a non-challenge. summertime was made for maine. music start planning your maine vacation at visitmaine.com you'll find hundreds of summer getaway packages filled with exciting, special offers. music yon can also request your free maine travel planner. music come discover there's more to maine. music >> let's quickly look at some headlines on this tuesday morning. first up, mexico's front running candidate is dead this morning. gunmen ambushed his car. mexican police -- president, that is to say, felipe calderon says the assassination was an attempt by drug gangs to sway this weekend's election. wow. and overnight rescued teen sailor abbey sunderland arrived back on u.s. soil. you're looking at new video of the 16-year-old at home in southern california. she attempted to be the youngest person to sail around the world but her journey was cut short earlier this month when a storm snapped her mast in the indian ocean. that's the news. >> several police officers in dallas, texas, may be punished after providing a police escort for the funeral procession of a suspected cop killer. david brown jr. was accused of killing two people including a police officer and his father ironically is the chief of dallas police. the city claims the escort was used to control traffic. many people aren't buying it including several police officers. dallas police association president glenn white is among the outraged officers and he joins us this morning. good morning to you, glenn. >> good morning, gretchen. >> all right. so such a terrible story. the dallas police chief's son s accused of killing a police officer and he was shot dead by police officers. as you're going to the funeral procession, what happens? >> well, you know, it was very tragic event on father's day. three fathers lost their lives. but apparently, what had happened, the funeral procession which was going to go about 25 miles from a suburb north of dallas down to east alice cemetery became cloged in a little bit of traffic so the deputy chief over our traffic division decided to find some motor jocks staged somewhere else that was going to escort the body of officer craig shaw from the funeral home to the church. pull them off that, delay their assignment there and they escorted the funeral procession of this cop killer. totally unacceptable. totally insensitive and it was not a good thing. >> all right. so right now, as president of the dallas police association, you are calling for what to happen? >> anyone who is involved in the decision making, either directly or indirectly, needs to leave the dallas police department and they need to resign. they need to be severely disciplined and never be a police officer again. we as police officers are taught to be empathetic, sympathetic and sensitive to the citizens. this -- this crash showed insensitivity not just to the dallas officers but the officers of the lancaster police department who lost their officer on father's day along with the rest of the officers across the united states. this is an embarrassment to the dallas police department. >> so you don't