Live Breaking News & Updates on Dutch grammys

Transcripts For KNTV NBC Bay Area News At 11 20130306



laboratory. we made sure for every pending case, we are retesting every blood sample that mr. joyner had tested so that we re not in a position where we have to call hill as a witness. reporter: a decision made by the santa clara district attorney after learning joyner was arrested on 18 counts of molesting a girl under the age of 14. court records show the allegations date back to 2003. we re not going to call him as a witness on any case going forward. we re retesting every blood sample that he tested for every pending case to make sure we have someone to testify. reporter: as a county toxicologist, he worked on cases involving alcohol and drugs. his arrest has forced the d.a. to retest more than two dozen blood samples to remove his role in ongoing cases. joiner is currently being held without bond. in this los gatos police report, he said he touched the girl but claimed it was unintentional. it appears the district attorney s office is concerned that his credibility has been compromised. he s been charged with a crime. he is in custody and we re not going to call him as a witness going forward. on the phone, joyner s attorney said his client is did he have devastated by the charges. we ve learn he was a volunteer with the boy scouts of america in san jose. although the charges have nothing to do with that position, the boy scouts have banned him from the organization. you can read more about that decision online at nbcbayarea.com.p&)3ñ tony cove less can i. if you have a tip, give us a call. send us an e-mail to the unit. for the sixth time in less than a week. a bay area police department is investigating a shooting and it is one of its own officers has pulled the trigger. tonight an officer involved shooting in san francisco. this is near the intersection of george court and engle street in the hunter s point neighborhood. a suspect was hurt and taken to the hospital. no word yet on that person s condition. . ? venezuelan officials are calling for peace and unity after the death of hugo chavez. it is in the middle of the night there but mourners are still gathered to mourn chavez who lost his battle with cancer. his death ignited riots in the deeply divided country and inspired vigils and debate in the bay area. stephanie spoke with local venezuelans about the future of that country and its relationship with the u.s. ibuápr the political rift in venezuela has kept him from returning home after hugo chavez became president 14 years ago. he is like a clown. a bad imitation of chavez. reporter: he is talking about nicholas maduro. chavez successor. he is worried it will prevent opposition supporters from reporting. people immediately disappeared. reporter: less than two miles away in the mission district, about 75 chavez supporters rallied in his name, thanking him for his work in and out of venezuela. we owe him a lot. reporter: many here are worried about family back home as riots begin. now more than anything, what they want is quoting a famous expression. it s now or never. nbc(;@g bay area news. more details about this global story. venezuela s foreign minister has declared seven days of mourning for chavez. his body will lie in state through this friday when a public funeral will be held. and vice president nicolas maduro is now at the helm of the country. elections will be called within 30 days. the 50-year-old is a member of chavez inner circle and is widely regarded by many in venezuela as the most qualified foreigner carry on chavez brand of socialism. in december, chavez said if something were to happen to him, maduro should be his successor. new tonight interesting big buzz in the bay area. the show must go on. despite the rain, the bay bridge is shining bright. the much hyped bay lights project made its official debut a couple hours ago. thousands of people huddled under the umbrellas along the embarcadero to watch as the orchestra of lights dance and sparkled. now the celebration from san francisco. it looks beautiful behind you, arturo. reporter: it was exciting to watch it all unfold. and the lights went on right at 9:00 just as planned. as you said, thousands of people watching from the waterfront. now, for at least the next two years, the lights will be on display daily from dusk until 2:00 a.m. only monochromatic lights are being used. there are no images or teske. and they maintain it is not a light show. he calls it an abstract work of art. i ve always loved the bay bridge. it has been under appreciated. i think it is about time the east side was represented. not necessarily sparkling up something that s ugly. just making a beautiful part of the city even better. the diswas conceived of two and a half years ago. 25,000 l.e.d. lights spread out 1.8 miles on the north face of the bay bridge. the biggest hurdle may not have been the installation. it may have been getting the two-year permit. some questions needed to be answered. was there going to have to be lane closures? were there enough there to present, to prevent any accidents from happening with these things fall off? would they be a distraction? it is an enormous display that will easily be seen from nearby roads. it shows up in a nearby mirror and will be something drivers will have to get used to. i deliberately had my security drive me down to see and yeah, we ll have to remind people not to steer over there when they re driving. for the next two years, the lights are expected to draw 50 million visitors and add $97 million to the local economy. that s why there is already talk of making them more permanent and the artist being asked if he would consider adding more lights in the future. of course i m thrilled for my work to be here, for people to enjoy it. and we ll cross that bridge when we get to it. reporter: the lights can be seen from san francisco and points north of the bay bridge. they cannot be seen, however, if you re actually driving on the bridge. we re live tonight in san francisco. i m arturo santiago. nbc bay area news. we ll have the pleasure the next couple years. it was certainly a perfect moment to snap a photo. showing up on twitter and facebook and insta-gram. send us your pictures. you can go to our website at nbc bay area doc of the. a local police officer and his dogs targeted the stunning crime committed at his own home. a california agency paid to protect us from waste. how can they invest in the company they re supposed to investigate? i think it is sad. they are bringing music to a community in an environment that is safe. his fight to honor his son turns into a city showdown. hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. [ buzz ] delicious, right? yeah. it s the honey, it makes it taste so. well, would you look at the time. what s the rush? bee happy. bee healthy. with clusters of flakes and o s. oh, ho ho. it s the honey sweetness. i.i mean, you.love. lots of plus the trags in the city of los gatos after a benefit is canceled over zoning issues. for years the local guitar shop has held concerts to raise money for those in need. not anymore. the event unplugged by bureaucracy. george kiriyama is live where they re asking the city to pull some strings. reporter: his mission is to help other parents. eight years ago when his baby boy died, he was inspired to raise money by holding such things as concerts. tonight they re planning for his latest event just got more challenging. i decided i wanted to do something to help parents that are going through the same situation. reporter: john will never forget that day in 2005 when he and his wife lost their son julian to a rare congenital disease. julian was just two days old. from that point on, he decided to help other parents by raising money for st. jude children s research hospital. i want to make sure the money i raise goes to a good cause. reporter: by holing a benefit concert in los gatos. music played an integral role for my wife and i. reporter: but a few weeks ago he was told the concert was canceled. they stopped the guitar store from holding performances and even group lessons. the store was told it was not zoned for such activities. i think it is sad. keith is bringing music to a xlut in an environment that s safe. reporter: 12 other performances have been canceled as well. the owner is appealing with the city, hoping they will rezone the area to allow his concerts to go on. i m going out of business if it doesn t continue. i need at least the group lessons to keep my doors open. we re very hopeful that we can still hold the event here. he is asking the leaders to bypass bureaucracy and to think of the cause. no parent should have to think about a casket or funeral arrangements. it made it very, it made the code ordinances and the permits and the parking situations and things they re concerned with seem very trivial to me. reporter: okay. we do have an update. don just updated his facebook a short time ago saying that 2013, julian rock memorial will be held at keith guitars on may 19th. and next up is a hearing on march 18th. that s when thec-)g city counci will make a decision on whether group lessons and concerts the resume. thank you. tonight richmond police are searching for burglars who broke into an officer s home, poisoned his two dogs and stole several fire articles. investigators believe the officer was targeted because he is a cop. they re not disclosing his identity or the neighborhood in richmond where he lives. one of the poisoned dogs has died at the hospital. the police canine dog is expected to survive. there are reportedly no leads but police uppers are offering a $10,000 reward in this case. new developments after the investigative unit exposed problems at the agency that is supposed to protect us from poison in our air, water and soil. at least three state senators are now demanding an independent investigation into the department of toxic substances control after seeing our initial report. the investigative report vicky is learning the top staffers may have a conflict of interest. we obtained these financial statements for the highest paid administrators at the department. we ve found several have held significant investments in the companies they re supposed to regulate. including ge, shell and chevron. when a pipe burst in richmond last august, flame shot into the sky for hours. thousands of people went to the hospital complaining of lung and eye irritation. i m breathing in. it hurts to breathe out it hurts worse. reporter: in response to the public outcry, they posted this letter on its website saying, protect peel s health and their environment. but now many are questioning just how well the department can do that when its top deputy director is a chevron shareholder. when i first came to dtsc, it was in 1985. reporter: this is the department youtube video. i ve been here many, many years and a lot of you do know me. reporter: the investigative unit obtained the past seven years of financial statements for the leaders. we found they helped stock in chevron every single year in amounts up to $100,000. her portfolio also includes stock in abbott laboratories and bpamoco. for at least three years she had up to $1 million in shares in general electric trick. all are companies that deal with toxic waste and all are regulated by dtsc. one of our top managers had a vested interest in the company we re supposed to oversee. insiders say this is a conflict of interest that puts polluters before the public. i m here for those communities that are suffering. reporter: lisa tucker offered this report accusing them of allowing company to operate on expired permits and to stay in business, even when they repeatedly break california s pollution laws. people inside know that there is extensive pollution that can harm people and they do nothing about it. that is outrageous. reporter: stuart black is another deputy director. his investments include royal dutch shell, intel and proctor and gamble. more companies regulated. neither responded to our requests for comments. this is the first i ve heard that dtsc staffers are invest in this way. reporter: the senate majority leader and other state senators are calling for an independent investigation into the dtsc after our first report exposed weaknesses in permitting. any time you have regulators who have a direct interest in the industry, that is a conflict of interest. reporter: peter keen. no one has exposed this kind of conflict of interest until you guys came along and did it. should there be legislative oversight in what regulators are allowed to invest in? this raises questions that we should look it a. reporter: after our first report aired, insiders reported the first relationship between debby rafael and this man. peter. he is a lobbyist for bogans. another company that hold as permit. he also supported her confirmation. we ve also found her to be balanced, to be thorough and just as open as she claims to be. reporter: kevin de leon is the chair of the committee. he questions how this agency is being run. there may be too close of a relationship between the department, the bureaucrats, and the alleged polluters. that s not kosher in my book. the dtsc said the department s legal office is conducting a review of the potential conflicts, but denies their managers did anything wrong. in the meantime, the director has promised to sit down and talk with us once an outside review of the agency is complete. we look forward to that interview. we have a lot of questions. thank you. some very revealing answers. if you have a tip for our investigative unit, give us a call. you see the number on the screen. 888-996-tips. or send us an e-mail directly to the unit. let s check in with meteorologist jeff ranieri. the rain has arrived. that s right. the winter weather finally getting its act together. a lot of you feeling it over the past two hours. most of it is pushed off to the east. we are still finding a few areas of showers that remain. some of the heaviest pockets across san francisco. throughout downtown, a very slick 101. also interstate 280 down in the south bay. los gatos getting some showers. not too much across downtown. the wettest spot on the map is here for morgan hill to gilroy. it is very consistent. the roadways are slick and visibility likely cut down to about 500 feet. not only the rain but the win. it is sustained. 15 to 25 miles per hour. gusting in the 30s. we can show you that wind outside of our live hd sky camera network. in emeryville, you can see it is shaking around quite a bit. if you re traveling around, that s what a lot of drivers will be facing throughout this evening. now let s get you back to the time line. throughout the overnight hours, a lot of it will push down to the south. here s the good news. for tomorrow morning, we ll have some showers. mainly lingering to the south bay. but not expecting widespread heavy rainfall. at least for tomorrow morning. we won t be done with that rainfall yet. i ll have more coming up in the seven-day forecast. as we look toward the snow, all the rain we have will be piling up across the sierra. by tomorrow morning, anywhere from 10 to 14 inches expected across the highest elevations, and do expect to encounter that snow. potentially near about 2,500 feet. if you are headed that way tomorrow morning. speaking of which, let s get a look at how cold it will be. 43 in sanity rosa. 44 in napa and 43 in los gatos. the cloud cover will help insulate us so it won t be extremely frigid to start. but yes, you will need the jacket. it won t warm up through the day. daytime highs in the mid 50s throughout san francisco. very uniform numbers. even back toward the east bay and down in the south bay, expecting 56 in san jose. tomorrow we keep a few showers in the forecast. then by thursday, so much uplift in the upper atmosphere. a lot of cold unstable air that we may have a few thunderstorms developing. we may get a little hail. so thursday looks like the best shot of potentially some isolated, severe weather. not a huge storm day. but it would likely be very hit and miss in nature. about a 75% chance of those thunderstorms on thursday. friday we clear out. for your week, yes, we all get selfish. it will be sunny with some upper 60s. he says it with such disdain. i enjoy the rain. all these demands. coming t2:wup, was it a roya reveal about the baby? questions over what kate middleton almost said today. there s this island and it s got super-cute kangaroos. barrow island has got rare kangaroos. chevron has been developing energy here for decades. we need to protect their environment. we have a strict quarantine system to protect the integrity of the environment. forty years on, it s still a class-a nature reserve. it s our job to look after them. .it s my job to look after it. what s in a name? apple almost named its iphone a telepod. the former advertising league said the cupertino based tech giant almost considered naming the industry changing smartphone a tri-pod, an ipad, or a moby, short for a mobile. in another apple related news, word that the 5s will be released this august. the next generation ipad as early as next month. the duchess of came brink may have let slip the sex of her unborn baby while greeting well wishers today. a woman handed her a teddy bear to which she applied, thank you, i ll take that for my and then stopped herself. it sounded like she was going to say daughter. britain has a longstanding tradition not to announce the sex of the baby until after the birth. prince william and kate are expecting their first child this july. a dramatic ending for the sharks tonight. dave feldman joins us next. good evening. i m dave feldman. 7-0 in january, 2-10 in february. 2-0 in march. the roller coaster ride that is the sharks season continued tonight in british columbia. final shoot-out. logan couture needs to score to extend the time. we go to extra shooters. alex burrows. a chance to win for joe pavelski. glove side. the sharks win 3-2. first win in vancouver since november 29th. tying for 206 wins, most in franchise history. most in baseball news. spring training action. indians, giants. madison bumgarner making his first spring start. ezekiel scores, 1-0 indians. bottom four. 2-0, indians. one on, brandon crawford hits the two-run home run to right. bottom six. 3-2, indians. brandon phelps. the giants lose 4-3. a nice story, the warriors and the special liks hosted 45 athletes from the special olympics of northern california for a basketball clinic tonight in oakland. jarrett jack, andris biedrins and richard jefferson coached for the hoopsters. the way they support one another. they have each other s back. it is all genuine and all authentic. that s something i admire about them. in our daily lives. not just sports. i m dave feldman. have a good night. back with more of the news after this. [ male announcer ] it s a rule of nature. you don t decide when vegetables reach the peak of perfection. the vegetables do. at green giant, we pick vegetables only when they re perfect. then freeze them fast so they re are as nutritious as fresh. [ green giant ] ho ho ho. green giant there s no subtext. just tacos. yeah, it s our job to make you want it. but honestly. it s not that hard. old el paso. when you gotta have mexican. but honestly. it s not that hard. the words are going this way-there s no way. oh, the lights came on. isn t technology supposed to make life easier? at chase we re pioneering innovations that make banking simple. deposit a check with a photo. pay someone with an email. and bank seamlessly with our award-winning mobile app. take a step forward. and chase what matters. there it is. a live look at the bay brink for the next two years, every night we ll see a different display of those l.e.d. lights. beautiful. wouldn t you know it the night that they do it, we finally get some rainfall. right on cue. the 25,000 l.e.d.s doing their job. we ll have a few lingering showers tomorrow morning. a chance of isolated storms thursday. it is jacket weather tomorrow, folks. take it easy on the slick roadways. good evening. announcer: it s the tonight show with jay leno, featuring rickey minor and the tonight show band. tonight, jay welcomes oscar-nominated actress, jennifer lawrence, from duck dynasty, phil and willie robertson, the music of andy grammer, and headlines. and now, jay leno! [ cheers and applause ] captions paid for by nbc-universal television captions by vitac www.vitac.com [ cheers and applause ] jay: thank you. welcome to the show, folks. so nice to have you here. thank you very much. you sound like little debbie when she heard hostess was going out of business. wow. [ laughter ] i guess you know hostess, the makers of twinkies has filed for bankruptcy. [ audience aws ] but that doesn t mean it s over. the two sides are still talking but in the meantime, you know, you can make your own twinkies at home. you can do this. all you need is white bread, some yellow spray paint and a a caulking gun, and boy you are right there! [ laughter ] but you know something, it s not [ applause ] it s not just the twinkies i m gonna miss. i feel sad for all the other hostess products that are going away. like, remember suzy q? rickey: yeah. jay: she s now out on the street, working as an ho-ho. yeah, it s terrible. [ laughter and applause ] terrible. terrible. terrible. and cracker jack announced this week that they are coming out with a new, caffeinated version of cracker jacks. cracker jacks with caffeine, called cracker jack d with a a d. yeah, that s it. no, this is real. [ laughter ] [ applause ] no, this is real. they re hoping this will enable baseball fans to stay awake for the entire game. [ laughter ] well, interestingly, you know

Mexico , United-states , Mission-district , California , Prince-william , New-brunswick , Canada , Los-gatos , Emeryville , Netherlands , Oakland , Embarcadero

Transcripts For KGO ABC World News Now 20130308



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get sent to an orphanage? mcbain: no, more like a they call it a group home. it s rafe: that s a nice name for an orphanage. mcbain: no, not exactly. rafe: what s the difference? mcbain: group homes don t make you eat porridge. rafe: look, i ve stayed at shelters before and hostels. lots of them, actually. only difference was my mom was there. other than lockup downstairs, this is the first time i m doing this alone. mcbain: you re not alone, kid. there s a lot of people pulling for you.you make some molly: can t you make some calls, pull some strings? alexis: look, honey, you know that i would do anything i can to help rafe, but it s not like i can do anything tonight. molly: then why can t rafe just come home with us? alexis: [ sighs ] kate: your life back? you never had a life, connie. you stole mine. connie: why don t you think again, kate? i ve been out for the past five months, and i ve been doing just fine until you decided it was safe enough to come back. kate: doing just fine? i wonder if trey would agree with that. connie: let s talk about trey, because as soon as you found out the son that you never wanted was alive, you ran for the hills. don t you walk away! yeah, you decided it was too , ! much, so you took off! you can blame me all you want, kate, but that was your choice. kate: oh, no, no, no, no, connie. you saw an opportunity, and you took it. connie: that s right. i made a life for myself. and you think you can just come in here and take that all away from me? oh, no, no, honey. you don t get my job, you don t get my life, and you certainly do not get my man. i ll give you a minute to figure this out. duke: what? no. no. you don t think seriously that i would be passing counterfeit bills? anna: yes. i mean, your new suit and everything this whole thing and the wine.[ g. duke: anna, do you honestly believe that i would set up our first real date in 20 years and use forged bills to pay for everything? what sense does that make? anna: it doesn t make any sense. duke: thank you. anna: except for the fact that when i asked you how you could pay for all of this, you just dodged the question. duke: no, i-i did a private transaction with the quartermaines, and i didn t feel it was appropriate for me to disclose the details. anna: wait. you said that the quartermaines always had an investment to tap. was that a lie? duke: that was not a lie. perhaps it was. an embellishment. anna: oh. duke, seriously, have you gone back to your old way of doing business? duke: no. no, i have not, and don t even say that. anna: then you just tell me how how did you get this money? duke: i swear on my life. this money.came from the quartermaines. anna: their assets have been frozen. duke: elq s assets have been frozen. this money came from tracy quartermaine. luke: you gave lavery funny money? tracy: i did, indeed. luke: what, you just have wads of it laying around? tracy: yes, loads. i keep all my phony money in my phony fault. and what the hell is the matter with you? you don t like duke. i just did something bad to duke. luke: hey, don t get me wrong. i think it s great you put one over on rob roy. tracy: but? luke: but you ve got the s.e.c. breathing down your neck! you want the fbi involved, too? tracy: i m not the one passing counterfeit money! duke lavery is! and, by the way, this is not his first felony. this isn t even his first felony this week. luke: you lost me. tracy: ahh! do you ever listen to me?! i told you he stole my relish! luke: tracy, have you ever heard of proportional response? tracy: i think i showed extraordinary restraint. the man robbed me of my family legacy! luke: it s a condiment granted, a very rare and precious condiment which may have the key to your family s fortune, but it s sandwich topping! tracy: do you know how he did it? by breaking in to this house. luke: that is standard operations for burglars. tracy: and pretending to pump me for information about your relationship with anna. luke: i don t have a rela it s through. tracy: i know that. and duke certainly knows that. in fact, i don t think there is a person in port charles who doesn t know that you and anna are through. scott: i m only going on what you told me. maybe luke and anna aren t together, but you did say you saw them kissing on the docks. laura: yes. i did see them, and they were certainly acting like a couple. and lulu told me that luke was seeing anna. scott: then that s that. laura: no. it s it s not that. it s much worse than that. anna is cheating on luke. scott: this may sound a little cold. so what? it s none of our business, laura. if anna is stepping out on luke, it s up to her to fess up. laura: well, she must not feel very guilty about it if she s seeing duke right in front of everyone. she s making a fool out of luke. scott: well, i got a news flash for you. luke is a fool. okay. what are you saying here? laura: i have to tell him the truth. i do. scott: [ groaning ] first kid you ready? 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[ sighs ] laura: i m sorry. i shouldn t have said that. that was stupid. scott: no, it s it s okay. you and you have a history together. you have kids together. i don t like it, but that s the way it is. but you know what? we have a history together, too. laura: [ chuckles ] scott: and we have a future. mr. and mrs. scott baldwin. the sequel. laura: i know. and i m really glad about it. scott: good, cause this is our time, and i don t want to waste it. listen, i ll tell you tell you what i ll do. since i m a sport. laura: oh, really? scott: yeah. .if you want to tell luke, i will go with you and we can do it together. but i still think that we should just stay out of it. laura: okay. scott: okay? laura: mm-hmm. scott: okay. i m gonna go take a shower. then we re gonna have dinner. then we re gonna find an old movie to watch. laura: [ chuckles ] sounds good. scott: okay. [ footsteps depart ] luke: there is no me and laura. there hasn t been for years. tracy: and yet you managed to stop by her hotel room today. luke: yeah, to warn her about baldwin. she accepted his proposal. she has a right to know that he s working an angle. tracy: baldwin is irrelevant. baldwin has always been irrelevant, especially if you want to be with laura. do you? no more dry hair. get hydration that lasts! new hydra recharge from garnier fructis. hydration innovation! bead after bead, burst on impact. a superfruit blast of goji berry and passionfruit. hydra recharge actively replenishes hydration. so potent, you ll feel it 2 full days. nonstop silky. surprisingly weightless. new hydra recharge hydration.that lasts. garnier fructis. the strength to shine. one square inch of deliciously smooth chocolate in creamy milk. or rich dark. incredible indulgence. one square inch of bliss. hershey s bliss. remember to wash your hands, get your flu shot and uses, clorox disinfectant products to kill 99.9% of flu viruses. this cold and flu season lets help spread protection. then i read an article about a study that looked at the long term health benefits of taking multivitamins. they used centrum silver for the study. so i guess my wife was right. 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[ male announcer ] with a variety of tastes and textures, only chex mix is a bag of interesting. scott: laura! damn it. luke: is there a reason that we have to constantly revisit this tired old topic? tracy: oh, i don t know. maybe because, as many times as you say it s over, she s never really gone. she s always in need of some kind of rescuing from baldwin or the cassadines or her own illness. luke: i won t apologize for wanting my ex-wife to be happy. tracy: no matter who you have to step over to make that happen. luke: tracy, you re my ex-wife, too. i want you to be happy. you don t generally need to be rescued, but if you do, i ll be there, just like you re always there for me. tracy: well, that s a really nice sentiment, but it certainly doesn t measure up to the greatest love of all! luke: laura. tracy: oh, i heard you were in town. laura: your maid was kind enough to let luke: what are you doing here? laura: i was looking for you, luke. tracy: how d you track him here? laura: he wasn t in his hotel room and he wasn t with this was the next logical place. tracy: of course it was. luke: well, what s so important you need to track me down? laura: there s something i need to tell you. it s about anna and duke. anna: so, tracy figured out what you were doing and she decided to get back at you? duke: yes. anna: that s wow. duke: obviously, yes. this this this everything, this.whole evening has been paid for with money that she gave me in a briefcase. anna: [ chuckles ] duke: well, i apologize that this nightmare of a night has come to an end so soon. anna: [ chuckles ] duke: what do you find funny? anna: oh, just i don t know everything. i mean, you apologizing for a nightmare of an evening it s just all so. duke: it doesn t make much sense, does it? anna: no. yes. certainly not your usual smooth self, are you? duke: hmm. no. i ve lost my finesse in certain areas.s, i will admit that yes, i will admit that, anna. well, i m gonna go make it right. anna: going off to tracy? duke: yes, i am. anna: well, i can t miss this. duke: no, i m gonna do this on my own. anna: no, you re not. looks like i uncovered a counterfeiting ring, and what would the mayor think if i turned a blind eye to that? how would that look, right? duke: all right. come with me. commissioner. anna: yes?ank you so much. commissioner? anna: yes? oh, god. [ sighs ] duke: [ sighs ] anna: just a second. thanks. sorry. molly: so, he can stay with us, right? alexis: the system doesn t work like that, honey. i can t just take him in. molly: why not? alexis: because, honey, there are rules in place for situations like this, and even if there weren t, i don t think i could handle another teenager, especially a teenage boy one that you hid in your bedroom. rafe: what s that? mcbain: what s what? hey! i m starting to get the feeling you re an experienced food thief. rafe: you knew what i was doing. you let me do it. mcbain: yeah, well, you could ask next time. rafe: i don t really like asking for things. mcbain: i guess that makes two of us. alexis: you know, molly, the decision is not just about you or me or rafe. isn t there someone else you re forgetting about? molly: kristina? well, she doesn t care if rafe stays with us. alexis: say we take rafe in. have you ever thought about how t.j. might feel about it? t.j.: she s all about rafe breaking him out of jail, hiding him in her room. shawn: she s just looking after the kid. t.j.: no, see, i remember when molly was there for me when i was in trouble. it seems like since i cleaned up my act, she moved on to another project. shawn: you know, you ve helped her out just as much as she s helped you. t.j.: no, i haven t. shawn: didn t you stand up to connie falconeri when she stole molly s book? t.j.: okay. a lot of good that did. molly never got her book back. shawn: and she still might. sonny told me kate s back. t.j.: okay. good for them. u get it? there s no way connie s mess is gonna go unfixed well, not as long as kate is here. kate: sonny and i just made love, but you knew that, didn t you? otherwise, you would never have called me down here. connie: [ echoing ] yeah. i see you put him right to sleep. kate: oh, he was thrilled to have me back. connie: don t worry, kiddo. i m gonna deal with sonny right after i deal with you. kate: what are you gonna do, connie, from behind the mirror? you gonna reflect him to death? connie: no, you see, because sonny doesn t get to sleep around when he told me that he cares about me. for you? is that we he said? connie: damn right. kate: kate: but he didn t say, love, because sonny loves me. he told me over and over again how he tried to move heaven and earth to get me back, despite all the horrible things you did to him. sonny slept with you because he wanted to get closer to me. connie: you don t know what you re talking about, because sonny and i have a real connection. kate: how can you have a real connection with anybody? you re not a real person. connie: oh, no. you got that backwards, sweetheart. kate: how so? connie: well, i hate to break it to you, kid, but i m the real person, and you, kate howard you re the alter. in brookside chocolate, a world of remarkable tastes comes together. rich, dark chocolate meets sweetened soft centers flavored with exotic fruit juices, like pomegranate, goji with raspberry, and acai with blueberry. it s chocolate like you ve never experienced it before. and it comes from a place called brookside. discover brookside. 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[ thinking ] wonder what other questionable choices i ve made? i choose date number 2! whooo! [ sigh of relief ] [ male announcer ] choose taste. choose prego. people are switching to finish. . and it s spreading all across america. quantum with new power gel delivers amazing clean and shine, even in the hardest water, which cascade just can t do. take the finish shine challenge with quantum. voted product of the year by consumers ! scott: come on. laura, answer the damn phone. tracy: what about anna and duke? laura: uh, gee. i-i don t quite know how to tell you this. um. [ cellphone rings ] oh. [ chuckles ] phone call. uh. tracy: oh, please, don t keep us in suspense. what about anna and duke? duke: what about us? tracy: are you kidding me? is this a private residence or a fast-food restaurant? anna: laura, hello. anna. we ve never actually met. laura: uh, yes, anna. i recognize you. people speak so highly of you. tracy: why is this meeting taking place in my living room? alice? alice?! anna: ooh. tracy: oh, well. so much for that. anna: it s okay. please don t blame alice. i flashed her my badge. she let me in. tracy: oh, good. well, you d think by now she d ask for a warrant. speaking of warrants. anna: i don t have one yet, but this is official business. i would like to ask you a few questions. tracy: regarding? duke: this. kate: no, no. you re the alter. you are an out-of-control coping mechanism. connie: boy, you really missed a lot when you checked out, huh? the court of law decided i m the real deal. kate howard is a symptom of mental illness. kate: oh, is this the same court of law that has both you and me on record for killing starr manning s family instead of johnny? you can tell the judges anything you want. i know the truth. connie: what truth, kate? the truth about your childhood in conabout your made-up name? everything about you is a lie. i m the real deal! okay. okay. let s just talk about the facts. connie falconeri was born in bensonhurst. connie falconeri fell in love with sonny. connie falconeri was raped b joe jr. and pregnant with trey. but when connie falconeri had the child, she abandoned him. something snapped. kate: no. that is when i made the conscious decision to become kate howard. connie: oh, no. that s just what you tell yourself to fill in the gaps. kate: you are the liar. you lie about everything, connie, and you re lying about this. connie: then why are you so scared? you re starting to think i m telling the truth, ain t you? duke: you gave me counterfeit money. tracy: why would i give you any money at all? luke: is this what you wanted to talk to me about? laura: no. anna: trafficking in counterfeit money, you know, is a serious offense. tracy: really? i did not know that. luke: why don t we let them handle this? laura: okay. duke: i want to press charges. you defrauded me. tracy: then i m gonna press charges. and if you re humiliated now, imagine how you re gonna feel when anna arrests you for breaking and entering and theft! luke: there. that s better. i can actually hear you now. laura: yeah. luke: so, what did you want to tell me? laura: you know, i m not so sure that i should be doing this. luke: laura, why? you know you can tell me anything. right? laura: yes. yes. of course. 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[ splatter! ] moms know all too well. kids keep throwing you one stain after another. which is why all is now the official detergent of little league baseball. new all combines in-wash pre-treaters with its active stainlifters to attack many tough stains better than ever. finally stains have met their match. give us your worst. we ll give it our all. luke: what are you doing here? same questt ask you the same question. luke: well, you see, i have friends here, upstairs and down. oh, wait how do i explain the concept of friends to this? laura: please, uh, let s let s not do this. i-i came here because i wanted to talk to luke. scott: let me just talk to you first. laura: [ chuckles ] y. do you mind for a minute? luke: no, i don t mind. no. i need to find alice anyway and find out why she s letting all the riffraff in. laura: what are you doing? scott: i might ask you the same question. i thought that we decided that we weren t going to get involved in spencer s business. laura: i just wasn t sure that that was the right thing to do. scott: no, but it s not for you to decide, cause we kind of decided that together, didn t we? i turn my back, and you do the opposite. how do you think that makes me feel? laura: you re right. i m i m really sorry. scott: you don t have to apologize. just do me a favor. forget about spilling the beans to spencer. come home with me now. anna: tracy, what are you talking about, exactly? tracy: mr. lavery entered my house under false pretenses and stole my relish. anna: when you say, relish, is that, like, code for something, or is it, like, a condiment for a sandwich? tracy: pickle-lila, my mother s recipe. it made elq millions and would do again if he hadn t walked off with it! anna: you know what? you are accusing each other of very serious crimes, which leaves me no other option than to arrest you both. t.j.: so, you think kate will give us molly s book back? shawn: kate howard may not be the warmest person, but she s got integrity. look, once she understands what connie did, i m sure she ll get in touch with the publisher and molly will get credit as the author. t.j.: molly s gonna be so stoked when she hears about it. shawn: then i think you should be the one to tell her. that way it ll remind her of all the great things you did for her. you ll be her hero again. [ chuckles ] t.j.: yeah. yeah. and maybe she ll forget all about rafe. molly: rafe, i just want you to know, whatever happens, i m here for you. rafe: thanks. you ve been so great to me. i don t even know why. mcbain: well, look, thanks for letting me know. all right. i ll call you back. uh.that was social services. i m i m i m sorry, rafe. they couldn t find an open family tonight. alexis: oh. all right. so, where does that leave him? mcbain: well, that means they re gonna place him in a group home, but it s just for tonight. we re gonna find you something better, something permanent, okay? rafe: sure. mcbain: all right. listen, the social services lady she s gonna come by and pick you up, all right? alexis: okay, look this is all gonna work out, all right? you re gonna be fine. shawn s waiting for us. we do need to go. molly: mom, i can t just leave rafe: molly, molly, it s cool, really. you ve done so much already. i m not really good company right now, so.get out of here. molly: are you sure? rafe: hey, at least it s not lockup or some creepy mansion with tunnels and a serial killer. molly: still, my mom and i are gonna find you a home a good one i promise. rafe: thanks. i appreciate that. molly: hey. i mean it. it s not over. right, mom? alexis: right. we re gonna take care of this, i promise. molly: bye. mcbain: so. what s your game war or crazy 8s? rafe: texas hold em, nothing wild. mcbain: what?! rafe: mom and i had to do something to make money. mcbain: damn. rafe: look. i appreciate this, you know? mcbain: [ sighs ] rafe: but you really don t have to stay here with me. i mean, you ve been here all night, too. mcbain: kid, i m not going anywhere until i know you re okay. kate: no. what you what you re saying it doesn t make any sense. dr. keenan told me about my d.i.d. connie: [ echoing ] ha! dr. keenan the sheep farmer turned psychopath? see, unlike you, honey, i got diagnosed by a real shrink, and he told me the truth. me, connie falconeri, is the real deal. you, kate howard you re nothing. you re like a fairy-tale princess. kate: no. that is impossible. connie: fight all you want, kate. it s not gonna change a thing. kate: i am not the alter! you are! connie: isn t it horrible to think that you only exist because someone s dreaming you up? so hollow. tell you what if you find that this is too much for you again, why don t you do us both a favor and run away and give me back my life? kate: no. 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[ female announcer ] suave professionals works as well as salon brands. learn more at suave.com. as well as salon brands. a world of remarkable itastes comes together. rich, dark chocolate meets sweetened soft centers flavored with exotic fruit juices, like pomegranate, goji with raspberry, and acai with blueberry. it s chocolate like you ve never experienced it before. and it comes from a pldiscover brookside. mcbain: rafe, this is ms. blackwood. she s with port charles social services. she s good people. rafe: hi. ms. blackwood: it s good to meet you, rafe. we re going to get you settled tonight at the facility. rafe: you mean the orphanage. ms. blackwood: actually, they re group homes now. rafe: so i ve heard. what s porridge? ms. blackwood: these days, we call it oatmeal. now, if you ll come along with me, please. rafe: hey, detective? mcbain: hmm? rafe: thanks for waiting with me. mcbain: you got it. i ll check in on you tomorrow. rafe: sure. alexis: hi, guys. sorry we re late. shawn: no problem. we re just glad you could make it at all. isn t that right, t.j.? t.j.: hey. molly: hi. alexis: okay. how about we join you for dessert? shawn: hey, i m on board. but, uh, t.j. here doesn t seem to have much of an appetite. t.j.: uh, i had a lot of food. i m good. molly: oh. uh, i-i had a veggie burger at the st uh, kelly s. alexis: yeah. shawn: you know what? i could use a drink. join me at the bar? alexis: yeah. uh, i could use an adult beverage about now. t.j.: you okay? molly: uh, yeah, i guess. t.j.: you know, whatever s bothering you, you can tell me. molly: even if it s t.j.: even if it s about rafe. molly: [ sighs ] i don t know. i just feel so bad for him. he s all alone..j.: i m s t.j.: i m sorry. molly: thanks. t.j.: it might not be the right time, but i do have some news that might cheer you up. shawn: group home? alexis: uh, just for the night. shawn: tough break. do you think a foster home will open up soon? alexis: soon? i don t know. i hate when the system fails any kid, let alone a kid who s a friend of my daughter. shawn: i wouldn t worry about molly. something tells me things are about to turn around for her. molly: seriously?! t.j.: yeah. molly: oh, my god! alexis: what? what? what? molly: kate s back! [ laughs ] kate: i m coming, sonny. anna: if you re going around town handing out counterfeit bills and you re breaking in to her house with the intent to steal condiments, i have no option than to arrest both of you. unless you mutually decide not to pursue either thing any further. duke: i spent 20 years in prison. i don t relish the thought of going back. anna: so, that s it? you re not gonna pursue charges? is that what i m i m good here with this? duke: yes. anna: yes? yes? great. my work here is done. tracy: well, then, see yourselves out. anna: always such a pleasure. tracy: ow! duke: [ chuckles ] tracy: [ sighs ] luke: i ll take that. tracy: why? where s laur luke: she left with baldwin. tracy: really? was he here, too? luke: just long enough to talk her out of whatever it was she came to tell me. tracy: [ laughs ] and you let that happen? luke: she makes her own choices, tracy, no matter how bad they may be. let it happen. tracy: [ sighs ] scott: you okay? laura: yeah, i m fine. scott: you hardly said anything on the drive. laura: i m just hoping i did the right thing. scott: you did. you know, spencer s life it s always been a big mess. laura: yeah. it s pretty complicated. yeah. scott: i just don t see where you have to pick up after him anymore. laura: no, i don t. scott: good. it s you and me, okay? we re gonna get married. we re just exactly where we belong. you know that, don t you? laura: of course i do. i love you. scott: i love you, too. you and me where you always should have been. duke: well, at least let me buy you a drink. i have enough legitimate money in my pocket to pay for that. anna: no. i think we should call it a night. duke: it s very early, anna. anna: yeah. i got to get up in the morning and i got to return this, and duke: no, no, no, no. no, don t don t don t do that. i ll take care of it. well, this is not the way i thought this night would end. anna: maybe it s for the best. duke: i don t see how. anna: i, uh probably before we get too far into it and find that it s all a conflict of interest duke: conflict of interest? anna: i m police commissioner. i can t be socializing with someone who habitually breaks the law. duke: oh, anna, you don t mean that. anna: i do. your first impulse was to break in to tracy s home, which proves to me that you haven t really changed. you always like to be one step outside the law, and if i turn a blind eye knowingly, then i m gonna lose my job and, more importantly, my self-respect. duke: there s more to this than that. what is it? what s going on? is it faison? every time you look at me, you see his face? is that it? anna: no. duke: then what? what is it? tell me something that i understand, cause i don t understand. and don t hide behind your badge. anna: i m sorry. i tried, you know? i just i don t want to go down this road. duke: right. there appears to be. anna: [ sighs ] [ door opens, closes ] [dramatic music] [cheers and applause] hi, guys. hi. nice to meet you. hello, everybody, and welcome to millionaire. kicking things off today is a recent college grad who can t even afford to buy his own food. now, he hopes to get off the free samples with a big one today. from new york city, please welcome drew kunas. hey, drew. nice to meet you. [cheers and applause] okay, so it s hard. you re a young guy starting out. it s hard to pay for you know, grocery bills are very expensive, so where do you get your food from? i ve been on the free-food-at-work diet for, like, three months now. free food at work? how does you take other people s food out of the fridge or. well, i don t want to say that on live tv, but. [laughter] yeah, normally, it s just, like, nuts and granola bars. big two. okay, so they re the snacks that they might offer at work, you mean? yeah, yeah. it s amazing. you can find way different stuff on different floors. so you go from floor to floor, basically, taking food. there s, like, an ecosystem of food you can find. so how does that is the best floor the higher up you go or. best floor is food number three floor number three. why is that? what s on floor number three? oh, yogurt-covered nuts. yeah. really? and the fudge graham zone bars. wow. you ve found this is just where you work, or you find in every like, here did you find this to be the case? [laughs] yeah, the little muffins are the best. like, i put them in the fridge so, like, no one else would find them backstage. yeah. [laughter] we need to get you help. we need to get you some money and an intervention. please, please! actually, i know another thing about you that s also very interesting. you were emma watson s r.a. at college when she was a freshman. people know her as hermione, right, from the harry potter series. so she came to your school. you were a junior at that point or. sophomore. sophomore. what was she like? she was already a star at that point. well, much like you, she was way smaller than i expected in real life. [laughter] [cheers and applause] you re really batting a thousand, i ll tell you, drew. bam. [laughs] okay, what else? yeah, no, she was great. she was so nice, super, super nice, but she didn t really have a sense of humor. i guess it was, like, a british thing. sometimes i d be like, how was your day? and she d be like, oh, it was dreadful. i had midterms and a paper. and i d be like, well, that s fantastic. and she d be like, no. no, drew. no, that s not fantastic. [laughter] you make friends wherever you go, don t you? [laughter] i wish you the best. thank you so much. let s take look at the money in your round 1. okay, computer, please randomize the dollar amounts. now here are the categories to your questions. computer, please randomize the categories. and now that everything is all shuffled, drew, are you ready? i am. audience, are you ready? [cheers and applause] then let s play millionaire. [dramatic musical flourish] what music style got its name because the phrase was commonly sung in such 1950s r&b hits as in the still of the night? e, a-wimoweh? [chuckles] no, tha no, that s gonna be just want to make sure. b, doo-wop, final answer. nice job. it is doo-wop. [cheers and applause] let s take a look at your bank, okay? yeah. here we go. $3,000. [cheers and applause] whoo! good start. $3,000 in the bank, 13 questions to go. character building. what is the name of the online company that insists its purpose is for when 140 characters just isn t enough ? oh, so twitter limit is 140 characters, so i think the answer has to be c, twitlonger, final answer. twitlonger it is. very nice. [cheers and applause] let s add some more money to that bank. you have $3,000. to that, we re gonna add another $15,000. [cheers and applause] $18,000. oh, my gosh. that s nice. thank you. 12 away from $1 million. names that stuck. a destination for aspiring actors with grand ambitions, hollywood is frequently referred to as a what? ooh. so my gut, i m going toward c here. [sighs] grand ambitions? you know what? i feel really bad, but i think that i m gonna poll the audience on this just to make sure, since i got the $15,000 already. okay, drew. audience, drew needs your help. on your keypads, vote now. [percussive music] okay, 94%. okay. [laughter] are either delusional or they think it is dream factory. so it s a good number. well, you know what, guys? thank you. i m gonna go with c, dream factory. [cheers and applause] final? final answer, yes. yeah! dream factory. all right, let s see how much money is behind this question. thank you, audience, in advance. we re talking $1,000. $19,000. now 11 away from the million. two lifelines left. the die is cast is the category. on a standard six-sided die, what side s dots, or pips, are often in an arrangement known as a quincunx? i had to say that very carefully. [laughter] so a quincunx, that s, like, a quintet. that s five, right? so c, five, final answer. yes, the quin being [cheers and applause] all right, drew. show us the money, computer. $100, up to $19,100. yeah! we ll be back with more millionaire right after this. i look at a tax return and i know where to find the deduction. i don t think you can afford to leave money on the table. bring in your turbotax return from this year and i ll give it another look. and get you everything you deserve. it s free, what do you got to lose. hershey s is more than chocolate. it s an invitation. to stop and savor. when the chocolate is hershey s. life is delicious. he sure did. that s why he had state farm life insurance. like you. so his family never has to worry, right? mr. goldman didn t have life insurance. why not? well, he s just a goldfish. ignore him. [ male announcer ] you ve got questions. your state farm agent has answers. backed by the life insurance company millions of moms and dads already trust. we put the life back in life insurance. [dramatic music] [cheers and applause] and welcome back to millionaire. here with drew kunas from new york city. $19,100 in the bank. no more of the free food diet for you, i think. i think you re on your way to actually purchasing food the way you re going. 10 away from $1 million. your mom, sharon, is in the audience. i want to say a quick hello to mom. nice to see you as well. [cheers and applause] all right, drew. two lifelines left. remind you, you re 6 away from round 2. at that point, you get to keep all the money in your bank. you ready to keep playing? oh, yeah. all right, let s play. [dramatic musical flourish] [cheers and applause] which of these legendary game show hosts grew up on an indian reservation, as a member of the sioux tribe? i have suspicions on this one, but i don t want to risk it. what s your suspicion? i think it s pat sajak. but i don t know the answer to this, and i know that i don t know it, so i am going to jump the question. okay, question s out of play. you don t have to answer it. let s see if it was pat sajak. it was bob barker. [audience murmuring] i know. i didn t know that at all. i m glad you jumped it. now let s see what you jumped over. a lot or a little? ah [audience groans] okay, but you didn t know it, and you would have guessed pat sajak if you were forced to, so that would have cost you the game, so here you are still in it by jumping, now 9 away from $1 million. creepy crawlies is the category. meaning wandering leg sausage, the colorful latin name crurifarcimen vagans is reserved for a species of what animal? crurifarcimen. the wandering leg sausage. [laughs] you ever heard of the wandering leg sausage? that s my mom s favorite thing to make. wandering leg sausage? yeah, absolutely. [laughs] it s also my dog s favorite thing to get under the table. no, that s got to be b, millipede, final answer. yes, it is millipede. [cheers and applause] all right, let s see the money. you just jumped over $10,000. how much was behind this? $5,000. whoo! $24,100. now just 4 questions left in round 1, and you still have a lifeline left. twins is your category. despite surface temperatures reaching 870 degrees fahrenheit, what planet is often referred to as earth s twin sister? oh! awesome. okay, i thought they were gonna put venus and mercury up on there, and then i wouldn t know, but oh, wait. okay, so it s got to be either venus or mars. venus is warmer than earth, but mars is sometimes referred to as earth s twin sister or could be. [sighs] ooh. hmm. ooh. hmm. hmm. hmm. what do you do? do you know the answer, meredith? i may. okay. would you like to know? you know, i m a newly wealthy man. [laughs] and you re still available? my left hand is empty, so. [laughs] see, you re much smaller in person than i imagined, so. [laughter] come on. hey. i m only teasing. you know what? i m not gonna even tease you. i never get the answers to these questions ever. you might not know this, audience. i have to read just the questions for pronunciation purposes. so i don t ever know the answers, and i do not know the answer to this, so you re not getting it out of me. nothing in my face will say anything. so you know what? there are two things in this one that have thrown me. 870 degrees fahrenheit, that s really hot, so it sounds like venus, but earth s twin sister, mars is it s a lot more like earth in terms of size. it s really close. so i am i m just gonna be safe, and i m gonna jump the question. okay, play it safe. i don t blame you with that money that you have. you don t have to answer it, obviously. let s see the correct answer. venus, so you were on the right track between the two of them but couldn t decide. now, last time you jumped, it was $10,000. hopefully it s not $25,000 behind here. let s see what you jumped over. oh, good. [cheers and applause] all right, that was the lowest amount left for you, so that s great. you are out of lifelines now, but by making that jump, you do stay in the game now, just 7 away from the million. before the booze. that s what i call tuesday. [laughter] though oktoberfest is now associated with massive beer consumption, what was the main event at the 1810 festival that was its precursor? hmm. i feel like it would probably be i m just imagining, like, the beer maidens with the dirndls. beauty contest. i m gonna remind you, drew, you have $24,100 in your bank. you could walk if you want to with $12,050, but if you get this right, it could be worth another $25,000 in your bank. it keeps you in the game, but you miss it, and you lose your money. that s a lot of thousands. yeah. [laughter] you know what? i think i am gonna i am gonna walk. is that a final? yes. [cheers and applause] i don t blame you. the actual answer was horse race. it was to celebrate the marriage of prince ludwig. so you weren t close to thinking that anyway, and you re walking with $12,050, which is fantastic. thank you so much. go give your mom a big hug. we re gonna take a break. we ll be right back after this. don t go anywhere. [cheers and applause] [dramatic music] [cheers and applause] and welcome back to millionaire. joining me now, mackenzie mosca from coram, new york. hi, mackenzie. nice to see you. nice to see you too, meredith. you said over the break that you re incredibly excited right now? yes, i am. but you manage a restaurant right now with the dream of one day owning your own, which is very exciting. so you ve come to the right place to get the money, the seed money you need. your mom, alexa, is in the audience. a big hello to mom as well. hi, mom. [cheers and applause] tell you what, mackenzie. let s take a look at the money in your round 1. okay. computer, please randomize those dollar amounts and the categories. now that everything is all shuffled, are you ready? i m ready. then let s play millionaire. [dramatic musical flourish] [cheers and applause] dinosaurs, trains, and bugs bunny are a few designs that a kraft foods employee has mastered at a job that has been called what? you know a lot about food, obviously, if you work in a restaurant, so. i m gonna say a, pasta architect. final? final answer. you got it. that s it. [cheers and applause] way to go. one down. let s see how much money is behind this question. we re gonna start your bank with $3,000. yes! yeah! nice way to start out. i like money. 13 to go. side jobs is your next category. a member of the faculty since 2001, what daytime tv fixture continues to serve as a professor at columbia university? [sighs] i honestly don t know, so i m going to jump the question. no problem. question s out of play. you don t have to answer it. i believe the answer is dr. oz. let s take a look. yes, it is dr. oz. it s a good thing i jumped it. [laughter] and let s see how much money you jumped over. $2,000, all right? it could be worse. it could be. you re out the $2,000, but you re very much in the game by making that jump. now just 12 away. from trend to sport. hoping to make it an olympic sport, a group of fans is aiming to take some of the eroticism out of the moves and.take off the high heels in what activity? [chuckles] c, final answer. [laughs] you said that one awfully fast. pole dancing it is. [cheers and applause] check out the money. i d say heels in kickboxing. $15,000. [cheers and applause] yeah! all right, $18,000. very nice. 11 to go now. sign my yearbook. the acorn is the annual yearbook of an alabama school with what name? the acorn. the acorn would be c, oakwood university, final answer. yup, it is. oakwood university. let s see the money. $1,000, up to $19,000 and counting. 10 away from $1 million. next category is going places. due to the mineral magnetite in their nasal region, varieties of what animal are thought to use the earth s magnetic fields to aid their navigation? i honestly do not know this one either, so i am going to jump the question again. okay, we ll put this question out of play. correct answer, please. bird. okay. now i understand how they re able to go those distances. let s take a look at how much money was behind this question. what did you jump over? $7,000 this time out of play. it s okay. i got $15,000. i m good. [laughter] no, you have $19,000, actually. you have even more than $15,000, so there you go. all right. and you are now, from that jump, 9 away from $1 million. state names is your next category. what u.s. state shares a border with the place it is named after? that would be d, new mexico, final answer. absolutely right. it is new mexico. [cheers and applause] all right, there s some big money up on that board. is any of it behind this particular question? let s take a look. $500, up to $19,500. 8 questions away from $1 million. we ll be back with more millionaire after this. this is so exciting. matt s brakes didn t sound right. .so i brought my car to mike at meineke. .and we inspected his brakes for free. -free is good. -free is very good. [ male announcer ] now get 50% off brake pads and shoes at meineke. here is your question of the day: stay tuned for the answer. the answer to that question was marilyn monroe. [cheers and applause] and welcome back to millionaire. we re here with restaurant manager mackenzie mosca. $19,500 so far in her bank, still taking on round 1. four more questions left there. $25,000 is still available and the $10,000 here. you still have one lifeline left. all right. ready to keep playing? yes, i am. let s play. [dramatic musical flourish] [cheers and applause] the creators of what classic children s book escaped france during world war ii on homemade bicycles carrying little more than their book manuscript? all right, i do know a fair amount about children s books. i know it absolutely was not curious george, so i m just gonna take that out of the mix. i m really leaning towards the story of babar, but i m not 100% sure, so i am going to go to ask the audience. all right, audience, mackenzie needs your help. on your keypads, vote now. [percussive music] 57% say madeline, 28% for the story of babar, and then down from there. you were leaning towards the story of babar. [sighs] do you trust your gut, or do you trust the audience? i m gonna trust the audience, and i m gonna go with a, madeline, final answer. you know what? the audience was wrong. you were wrong. it was curious george. [audience groans] really? was the answer. yeah. curious george was the answer. wow. [horn blares] well, our time is up. everybody here is a little bit in shock. thank you so much, sweetheart. thank you, meredith. and good luck with your restaurant, too, as well. thank you so much. thanks, folks, for watching. until next time, from new york, everybody, bye-bye. wow. [cheers and applause] [ male announcer ] break the grip of aches or arthritis pain with odor free aspercreme. powerful medicine relieves pain fast, with no odor. so all you notice is relief. aspercreme. closed captioning sponsored by: mornings aren t always perfect. that s why i give them carnation breakfast essentials. it s packed with 21 vitamins and minerals and protein so kids get the nutrition they need to start the day right. carnation breakfast essentials. good nutrition from the start. this is jeopardy! introducing today s contestants a graduate student in creative writing from greenbelt, maryland. an attorney from new york, new york. and our returning champion a retail horticulturist from jamaica plain, massachusetts. whose 4-day cash winnings total. and now here is the host of jeopardy! alex trebek! thanks, johnny. thank you, everyone. like the energizer bunny, david just keeps going and going and going. what going to happen today? let s start finding out. we ll start by welcoming vijay and jessamine. let s go to work. now the categories for you. we start off with. notice those words in quotation marks. followed by. and fi we travel. south african wildlife from madikwe game reserve. some of the amazing adaptations that aren t as obvious as claws and speed. david, you start us. time to rock & roll for $200. and that would be the shamrock. david. yes. uh, & roll for $400, please. what is rollerblade? i ll take hall of famers for $200, please. who is lucille ball? rock & roll for $600. what is a roll top? uh, $800, rock & roll, please. what is scroll? uh, $1,000, rock & what is rock candy? what is scroll? for $1,000. get your verbs moving, $200. what is jog? i ll take hall of famers for $400. hall of famers, $600. who is michael jackson? uh, verbs for $400. what is vault? verbs, $600. what is to waltz? uh, get your verbs moving for $800. whatpe? i ll take hall of famers for $800, please. who is nancy lopez? i ll take hall of famers for $1,000. who is jaime escalante? and that adds to yad. you re at $3,600. i ll take verbs for $1,000, alex. what is to vaunt? no. vijay or david? what is swagger? swagger. all right. let s take a break. we ll be we ll come back in a moment. jessamine price is from greenbelt, maryland, who has a connection with a very impoplace in recent history tahrir square in cairo, where they ve been (inhales) a lot of revolts recently. mm-hmm. mm-hmm. yeah. but your connection is different. it s a it s a different kind of connection. my cat is a cat who was born. on tahrir square. uh, i lived in egypt for a couple of years studying arabic there, and there are a lot of, uh, hungry kittens on the streets there, and i adopted this 6-week-old kitten and brought her back with me. was it was it tough to get it back in our country? it azing how easy it is to bring a cat onto an airplane and get it back to the country. i think it would be harder with a dog. with a dog. yes. okay. vijay iyer is an attorney from new york who also lived abroad for a while. where? that s right. i lived in japan, alex. i moved there after i graduated from college. i wanted to live in another country and learn a new language a very different language. and you did? and i did. and, uh, it was a great experience. the specialty of the town i lived in was raw horsemeat. oh! hello. our champion is david gard. david and i have something in common. we both drive pickup trucks. you would like to with, uh, the over $80,000 you ve earned so far to buy a new one. it s really about time. 8, and it s it s really on its last legs. it just turned 140,000 recently. might as well splurge. and vijay has command of the board, so he makes our next selection. alex, let s go with you re so receptacle for $200. what is a caddy? receptacle, $400. what is barrel racing? u refor $600.tacle and that word is hopper. vijay, back to you. i ll try receptacle for $800, please. what is the crucibl uh, receptacle, $1,000. e ? what is the crucibl what is an ash can? uh, organizations for $200. what are police? uh, $400, organizations. what are police? what are big brother and big sister? no. sorry. vijay or jessamine? (beep) correct response is plural g . (david) oh. jessamine, we come back to you. you make the selection. uh, could i have organizations for $1,000, please? anti-steroids? no. oh. vijay. what is doping? for $1,000. i ll take south african wildlife for $200, please. african elephants deal with more heat than their asian relatives, so their ears are bigger. when they re flapped, thousands of these smallest vessels in the ear bring cool blood to the body. what are capillaries? uh, south african wildlife for $400. kelly this time. among lions that roam southern africa, the females do most of thing, and they generally outnumber males in these groups that average about 15 lions. what are prides? uh, $600, wildlife. back to sarah. if a giraffe didn t have adaptations like thick-walled arteries and extra to counteract gravity, lowering its head to drink would cause an aneurysm, and then raising its head would cause it to faint, because this vitvalvessure is naturally so high. what is its height? no. vijay or jessamine? the blood pressure is so high. gotta pump that blood all the way up there. jessamine, back to you. uh, wildlife for $800. video daily double. $1,000, please. $1,000. all right. sarah has the clue for you. zebras spend a lot of time standing around on grassy plains, which would make them seem like easy prey. but to lions, they blend in with tall stalks of grass, because lions have weak color vision due to a shortage of these retinal cells. at is cones? cones. correct. $2,800 your new total as you move into second place. $1,000, wildlife. to communicate over distance or in dense brush, rhinos use infrasound, too low for human hearing to detect, because it s below 20 of these frequency units. what are hertz? and before we get to the last two clues, i want to take a moment to thank the wonderful people of south african tourism for extending such great hospitality to sarah and kelly, who visouth africa to record those clues for us. and good news for you folks at home. you, too, could win a saf a safari, just like the one enjoyed by the girls, in south africa. we ll have details for you a little later on in the program. dawo clues left. organizations, $800, please. who is rove? karl rove is right. now the last clue. what is the sierra club? and that takes you up to $3,800 and into second pl close game. jessamine will go first when we come back to start double jeopardy!, though, after this. ace. when we come back to start double jeopardy!, though, closed captioning sponsored in part by. welcome back. is is the closest game we ve had all week, and jessamine gets to pick first in double jeopardy! here are the categories. a-d-d in quotation marks. all right, jessamine. great art for $400. what are water lilies? great art, $800. rough? back to you, david. add it up, $400, please. what is an addict? add it up, $800. who is addressee? add for $1,200. what is an additive? uh, $1,600, add it up. what is addled? add it up, $2,000. who is addison? joseph addison earns you $2,000 more. great art for $1,200. uh, who is rembrandt? i ll take great art for $1,600. in 1931, diego rivera painted a movable fresco showing peasants harvesting this title crop. and that crop is sugar cane. vijay, back to you. uh, let s try women authors for $400. who is harriet beecher stowe? uh, women authors for $800, please. who pearl buck? $1,200, women authors. who is beauvoir? who is simone de beauvoir? uh, women authors for $1,600, alex. answer there. you have $1,000 more than jessamine, and you are tied with david at $7,800. uh, let s go for $1,800, please. okay. here is the clue for you. who is edith wharton? correct. and you go to . i ll do women authors for $2,000, please. and her name is nadine gordimer. vijay, we go somewhere else. let s try great r $2,000. who s georgia o keeffe? may-december movies, $400. what is bull durham ? uh, i m fedis-oriented, $400. what is seoul? uh, $800, dis-oriented. what is mongolia? i m feeling dis-oriented, $1,200. what is vladivostok? dis-oriented, $1,600. what is royal dutch? no. david or jessamine? (beep) what is holland america? back to you, david. dis-oriented, $2,000, please. what is narita? less than a minute to go. uh, may-december movies, $1,600, please. and that movie is l.a. story. back to you, vijay. let s try movies, $2,000. as the girl to whom peter sarsgaard gave an education. and the actress is carey mulligan. vijay, go again. let s try bells for $1,600. what is an organ? no. jessamine. what is a carillon? $2,000, bells. answer. oh! (laughs) you re tied at $9,200 with vijay. you trail david by $1,800. uh, $4,000, please. $4,000 it is. here is the clue for you in bells. (muttering) jessamine. what is. (sighs) say something. what is a. (sighs) (beep) wow. what is campanile? campanile. campanile. (beep) ah, and with that you drop down to $5,200, but it s not out of reach for you, believe me. jeopardy! it s coming down to that. tony-winning musicals. think about that. make your wagers. back in a moment. to prove to you that aleve is the better choice for him, he s agreed to give it up. that s today? [ male announcer ] we ll be with him all day i was okay, but after lunch my knee started to hurt again. and now i ve got to take more pills. yul. can i get my aleve back yet? for my pain, i want my aleve. p. ano [ male announcer ] look for the easy-open red arthritis cap. there s nothing like our grilled lobster and lobster tacos. the bar harbor bake is really worth trying. 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[ male announcer ] that s why there s ocuvite to help replenish key eye nutrients. ocuvite has a unique formula not found in your multivitamin elp protect your eye health. ocuvite. help protect your eye health. travel to south africa for the clue crew provided by south african tourism. south africa to hsunshine, wide-open spaces, and endless sky will captivate you as you explore this majestic land. at game reserves such as madikwe, you can come face-to-face with a leopard, elephant, rhinoceros, cape buffalo, and lion, otherwise known as the big five. to play more jeopardy! clues featuring south africa, and have a chance to win a trip for two to experience south africa for yourself, go to. think about musicals, tony-winning musicals, and now consider this clue. 30 seconds. good luck, players. jessamine, we start with you. you had $5,200, and you wrote down your response quickly. les mis and phantom of the opera. you got em both. well well done. and you add $4,001. you re at $9,201. that s a dollar more than vijay. did both of them? let s take a look. what are la bohème and the producers ? nope. i think he ge s producers that you wrote down. no, it cost you $3,000, so dropping you to $6,200 as we go to david gard, our champion. he s smiling. why? because he got les mis but he didn t come up with phantom. did he risk too much? oh, yes. he s at $2,000. guess what. jessamine price, congratulations, young lady. you get to wrap up the week as the returning jeopardy! champion tomorrow, right here. till then. so long. promotional consideration provided by. from cuba and iron are attending the funeral today. the u.s. is sending a diplomatic delegation after the funeral. chavez s hand picked replacement will be sworn in as venezuelan interim president. we re learning new details of the fatal lion attack in california. a coroner says diana hanson died instantly from a broken neck, probably from the swipe of the lion s paw. investigators are still trying to figure out why hanson was in the cage in the first place and why the big cat acted the way it did. we re a family, and we lost two family members. hanson s father says her daughter was living her dream by working at the cat sanctuary and she loved these cats. she apparently was her father said she was upset that she wasn t allowed in the cage with the cats. and she loved couscous. that s the cat that she had really kind of taken to, she had written songs for them. she was only there for two months. she had really become attached to these cats. her dad said he had a premonition that he felt like this could end badly some day. could you imagine as a dad having something like that happen? it s not the kind of thing you want your daughter you re happy she has a passion, but going in cages with these dangerous animals. a worst nightmare come true. let s talk about the battered new jersey shore, recovering from what may be the last storm of the season. towns along the shoreline got slammed with some of the worst tidal flooding since hurricane sandy. the pounding surf pushed waters up to two feet deep in sea bright and other coastal communities. roofs were shredded from winds hitting 70 miles per hour. more snow on tap for new york and new england. a new storm now is blowing into the west coast. more details from meteorologist jim dickey. good morning, jim. good morning. still keeping some wet snow in place in new england as our storm spins its way out of here. snow ends and we ll clear things out. nice weekend on tap, thankfully, after an active couple of days here. in the west, a mess on tap. a storm system pushing into the southwest will keep thunderstorms in place. l.a., san diego with heavy snow across the high elevations, and that snow tracks north and eastward on saturday. john and diana, back to you. thanks, jim. now to the latest on the economy. more encouraging news on the jobs front. the number of americans seeking unemployment aid has fallen to its lowest levels in five years. the drop is a positive sign ahead of the unemployment report for february due out in a few hours. the dow opens at another record high and stocks are trading higher in overseas markets. now to a fatal shooting at a restaurant in arizona. two people dead at a family-run restaurant there. police say it was a murder-suicide. they believe the man entered the vietnamese restaurant, shot a woman and turned the gun on himself. another woman caught in the cross fire survived. police are still trying to determine the motive. a bizarre story that s going to get someone in trouble. it s just outside of philadelphia. in a circle there you see a big front loader being driven down a street on wednesday night. the person behind the wheel decided to bring it to a stop by driving it straight into a diner. the place just opened three months ago. the owner doesn t even know what to make of this. it s ridiculous, man. who does something like that? who drives a truck through the building? an idiot. police say they think it was a drunken joyride. they found several bottles of alcohol in the cab. whoever is responsible had to know how to drive the rig and cops say that narrows down the pool of suspects. yeah, takes some skill to drive that thing. newly released documents show a january battery fire at boeing 787 dreamliner at boston logan airport was more serious than previously described. documents show that firefighters and mechanics tried to put out the fire through smoke so thick they couldn t see the battery. the cause still hasn t been pin pointed and the plane s grounded for the meantime. a couple bloggers from north carolina are taking on kraft foods calling for change of their macaroni and cheese. they want them to do away with the yellow food dye. it s already been taken out of the food in europe. because of stricter food safety rules. petition about it want kraft to do the same thing here. more than 122,000 people have signed that petition. the dye that we re talking about here is yellow dye 5 and yellow dye 6. that s exactly what you want in your mac and cheese. i like the 6, not the 5. the 5 is a little pasty, if you ask me. 6 has more of a luster to it. my daughter loves mac and cheese. all the kids do. they sure do. bottom line, if it doesn t need to be in there, take it out. the fda approves of it and it is legal for both of them to be in the product, but it s only for esthetic purposes. so it s only for the yellow coloring. do you think alexa would eat it if it was orange or yellow? she wouldn t care. she loves it. she loves kraft macaroni and cheese. and now she s into trader joe s mac and cheese. and i m sure it doesn t have yellow dye 5 or 6. i think it has a tiny bit of yellow. when it s made. well, you see, that s what we ve got to go for, trader joe s. they re the ones that do the stuff with the whole natural whatever, whatever. i m sure kraft is going to call and say what is she doing? they re both pretty good. i try not to eat it, but i always stick my fork in there and cleaning out the pot. i m sure alexa loves that. she does love it, actually. finally, a rare shoutout to an airline. a flight delay aboard a united airlines jet nearly caused a man to miss the chance to say goodbye to his dying mother. but employees at the airline weren t going to let that happen. the man needed to make a transfer to make it, but his first plane was held up. the flight attendants asked a second plane to sit until the man to get there and he made it in time to say goodbye. that is a beautiful story. yes, it is. coming up, justin bieber s bad day. he s had a lot of these lately. but first, this story. an elderly woman expressing her joy and her faith in a song. it s an act that got her kicked off of a bus. that s coming up. you re watching world news now. world news now weather brought to you by lunesta. and lunesta®(eszopiclone) can help you get there. like it has for so many people before. when taking lunesta, don t drive or operate machinery until you feel fully awake. walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. lunesta should not be taken together with alcohol. abnormal behaviors may include aggressiveness, agitation, hallucinations, or confusion. in depressed patients, worsening of depression, including risk of suicide, may occur. alcohol may increase these risks. allergic reactions such as tongue or throat swelling occur rarely and may be fatal. side effects may include unpleasant taste, headache, dizziness, and morning drowsiness. ask your doctor if lunesta is right for you. then find out how to get lunesta for as low as fifteen dollars at lunesta.com. there s a land of restful sleep. we can help you go there on the wings of lunesta. to ask tough questions and get the truth. unfortunately, my hair and all i do to make it broadcast ready can t take the heat. good thing i uncovered head & shoulders damage rescue. it rescued my scalp, and saved my hair. with seven benefits, damage rescue relieves dry scalp and removes flakes, while helping to repair damaged hair. now i use it every day, because the camera never blinks. no flakes, no scalp or hair worries. the proof? see it tonight, at eleven. head & shoulders damage rescue. live flake free. an 82-year-old woman in miami was tossed off of a commuter train for, get this, refusing to stop singing. the grandmother was singing a gospel song apparently too loudly. a security guard asked her to stop singing. when she refused, the guard grabbed her, a struggle ensued and the elderly woman was thrown off the train onto the platform. literally thrown. reporter: a cell phone video that has people buzzing. an 82-year-old woman dragged out of a metro train for, of all things, singing too loudly. a passenger captured the incident last month. a private security guard is seen walking up to emma anderson and telling her she needs to step off the train. i was singing a song, so he came up and said ma am, you re making too much noise. reporter: the confrontation turns physical. the guard grabs her, taking her off the train, causing her to fall on the platform. let s go, ma am. oh, no. reporter: miami-dade transit says it has a responsibility to all passengers, saying, miss anderson s singing was causing a disturbance. and impeding important train announcements from being heard. we regret she had to be escorted out, but regardless of age, all passengers need to abide by the rules associated with using the train. they should have procedures in how they remove somebody from metro rail other than dragging her from the train like that. he nailed it right there. that s it. so maybe she s bothering people, maybe, maybe not. fine, that s okay. but to yank her out of the train when she s 82, or any age, for that matter, not good. i don t think so. and you can almost hear the reaction of the security guard when he he does get her off of the train. he was apparently wanting to get her off at that stop because he didn t want the doors to close. he says oh, come on, like it s her fault she fell. like he s in trouble now. she wasn t seriously injured. doctors say she had a bruised hip and bruised shoulder, but at 82 years old, you take a fall like that and really bad things can happen. amazing she s not in worse shape. that s right. you ask me, i think it should have been dealt with better, and i think that that statement by metro is not what we want to hear. i think there s going to be a lot of backlash. there s got to be a better procedure to get her off the train than that. when we come back, what demi moore now wants from ashton kutcher. the skinny is next. you re watching world news now. skinny, so skinny all right. time for the skinny. joy behar is going to leave the view. this is amazing. i m coming, whoopi. it s the end of an era. you want to step in and take over? that would be a cool gig. it would. how about i m the first dude on the view. didn t they do that man s view and it was a total i think you re right. she s leaving after 16 years. which is amazing that show has been around that long. she s planning to exit the show when her contract ends in august and she says it s the right time. she says you reach a point where you say do i want to keep doing this? there are other things on my plate. i ve been writing a play, neglecting my standup. so she thinks it s the right time and credits barbara walters for making it such a great ride for her and keeping the show smart. she ll be missed. it s a good show and she s one of the funnier ones on there. it will be tough shoes to fill if you ask me. absolutely right. moving on to justin bieber. this young kid who we always like to talk to. a couple of things happened to him. he s just having a bad run. it kind of culminated today. he collapsed on stage during one of his shows in london. a 19-year-old, but apparently feeling better, because he instagramed a picture of himself, shirtless as usual. he tweeted out he s feeling better. thanks to everyone for the love. he s listening to janice joplin while on the mend. this is one of the things that happened today. he s feeling better for all the bieber fans out there. another thing that happened today is one of his friends, this guy by the name of lil twist, that s him, apparently crashed his ultra expensive car. this is the second time this kid has crashed one of justin bieber s cars. the last one was a ferrari. not only did he crash the car, but he fled the scene, illegal. he crashed into some cement pillars outside a liquor store. you can t do that. kelly osbourne rushed to the hospital after she had a seizure. according to the new york daily news. she was rushed to the hospital after a sudden seizure while filming an episode of fashion police. apparently this happened on thursday. i think that s a picture of her on the stretcher. is that right? they were shooting fashion police and it occurred in los angeles. it was a little before noon. and she fainted on the set. she was taken to the hospital for testing, apparently awake, alert and in stable condition. she stayed overnight for observation as a precautionary measure. her publicist said to the daily news on her condition that she s doing okay. someone during our meeting this morning said she s lost a lot of weight and maybe that has something to do with it. maybe, maybe not. you get weak, who knows? thanks to tmz for that picture. moving on to demi moore and ashton kutcher. these two have been at it for a while. he cheated on her, there were reports on that. they separated, now they re getting a divorce. the very wealthy actress demi moore is apparently asking for alimony from ashton kutcher. really? but if you think about it, she s worth way more than he is. she s been at this for decades longer than he was. you know, it s just probably the kind of thing that is one of those wanting to get back at him because he cheated on her. right. and he s kind of moved on rather quickly. he s dating mila kunis when they were co-stars of that 70s show. so it s one of those all this does is make lawyers rich. oh, yeah. i never understand it. they can both agree on one thing, irreconcilable differences is why they are breaking up. irreconcilable easy for me to say. hangover part three, did you see part two? it s the exact same thing except it happens in thailand. like word for word. was it funny? not as good as part one. let s listen to part three, here s the trailer. we ve been on a lot of adventures together, but it seems like you haven t learned anything. hangover part 3. they re back in vegas. oh, nice. oh, nice. don t compromise. new vidal sassoon pro series from the original salon genius. starts vibrant, stays vibrant. precision mix formula saturates each strand for 100% gray coverage. hydrablock conditioner helps fight fade out for up to 8 weeks. new vidal sassoon lets you say no to compromise and yes to vibrant color like this. new vidal sassoon pro series salon genius. brilliantly priced. [ female announcer ] for everything your face has to face. face it with puffs ultra soft & strong. puffs has soft, air-fluffed pillows for 40% more cushiony thickness. face every day with puffs softness. ahh ! mmm ! ahh ! finally, there s cepacol sensations. serious sore throat medicine, seriously great taste. plus the medicine lasts long after the lozenge is gone. ahh ! mmm ! cepacol sensations. but the one thing he doesn t touch, the lysol no-touch hand soap system. the magic sensor makes hand washing another fun discovery. and it has 10 times more germ protection. lysol no-touch hand soap. another step forward in our mission for health. let them explore people are switching to finish. . and it s spreading all across america. quantum with new power gel delivers amazing clean and shine, even in the hardest water, which cascade just can t do. take the finish shine challenge with quantum. voted product of the year by consumers ! finally this half hour, it s time to take a look back at all the headlines of this week in our friday rewind. the review includes former ball players visiting dictators, and a welcome back to our colleague out with the chickenpox. we ll pray together, talk together and get to know each other better. we re going to hear rather subtle hints dropped perhaps about who might be able to lead the church or what qualities we need in a new pope. big nations can t bluff. and presidents of the united states cannot and do not bluff. and president barack obama is not bluffing. now look at what s happening right now. i wish i were there. it kills me not to be there, not to be in the white house doing what needs to be done. i would like to see this be the end of the winter season, but i ve lived in minnesota my entire life and i m not counting on it. i m so sorry they can t get him out of the hole and that s the last place he s going to be. this woman s not breathing enough. she s going to die if we don t get this started. do you understand? i understand. i am a nurse. but i cannot have our other senior citizens who don t know cpr. anybody there that s willing to help this lady and not let her die? not at this time. having knives on board is a horrible decision and we re incredibly disappointed in the tsa for allowing knives on board an aircraft. we saw a drone, a drone aircraft. what altitude did you see that aircraft? about 1,500. when you said you love kim and think he s awesome, were you away of his threats to destroy the united states and his regime s horrendous record on human rights? one thing about that, i didn t look at all that. i understand what he s doing. i don t condone that. i hate the fact that he s doing that, but the fact, is you know what? that s a human being. this is franklin. everybody is clapping. you see that picture, that s when i got it. and we are definitely happy that barbara is back. and by the way, this is a new look for us. we re standing up. not contrived at all. we re standing up from behind the how tall are you, by the way? with my heels, i am probably your height. how tall are you? 6 1 . i m 5 10 without heels. this weekend daylight savings. and we spring ahead. spring forward, 2:00 on sunday morning. we lose an hour. hate it when that happens. but we get more sunlight. that s true. bye, guys. this is abc s world news now informing insomniacs for two decades. in times of joy, in moments of grief, we are there. when the world looks for truth, broadcasters come through even when all else fails. today, with more ways than ever to experience the moments that transform our lives, americans still choose broadcast television and radio more than all otheined. we are the local broadcasters of radio and television. this morning, captured. osama bin laden s son-in-law now facing a judge today just down the street from ground zero in new york. an extremely rare court appearance by a member of bin laden s inner circle. already giving up critical secrets. hostile exchange. new tensions on the korean peninsula today. the north saying they have missiles ready to fly. honored at arlington. a special ceremony today for two sailors who fought and died in the civil war. they receive their final resting place. and concert collapse. what a week for justin bieber. he was rushed to the hospital overnight. good friday morning, everyone, i m john muller. rob nelson s off today. i m diana perez. the u.s. is learning valuable information from osama bin laden s son-in-law about al qaeda. sulaiman abu ghaith was moved to new york last week. tahman bradley has the latest. reporter: john and diana, good morning. u.s. officials call this man a key player. comparable to a consigliere in a mob family. he s off the battlefield and will face justice. another senior al qaeda terrorist has been nabbed. osama bin laden s son-in-law is in u.s. custody and will appear before a federal magistrate in new york later today. sulaiman abu ghaith faces charges including conspiracy to kill u.s. citizens. he held the key position of al qaeda spokesman. in this video, he celebrates the 9/11 attacks on the u.s. according to u.s. officials, the cia has been tracking abu ghaith for years. as he moved from afghanistan to iran and then in january, into turkey, where he was arrested. once he left iranian territory and got into turkey, with close monitoring by u.s. government agencies, he was

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Transcripts For CNNW CNNI Simulcast 20150226



they planned to hijack a jet liner and force it to fly to isis territory. agents say one talked about assassinating president obama. here s what we know about the suspects. one of them is a 24-year-old from kazakhstan. pamela brown reports. reporter: the fbi says one of the men arrested today boasted about wanting to kill president obama and blow up coney island in new york city. another man proposed shooting police and fbi agents. a plan they allegedly said they would put into place if they weren t able to join isis in syria. two of the individuals were seeking to fly to syria. one was arrested at the international airport at jfk as he was getting ready to board that flight. a second individual had a later flight scheduled. reporter: prosecutors point to conversations on line including one last summer which one wrote about his desire to shoot obama and then get shot ourselves. that will strike fear in the heart of infidels. that brought fbi agents to his front door. they came as members of the joint terrorism task force, they identified them as such. reporter: even after being interviewed by fbi they investigators say they began coordinating travel to turkey often seen as a gateway into syria. to prove a conspiracy you only have to show that there s been a material effort or forward step in furtherance of the conspiracy. and clearly, those communications would indicate that there s been a forward step in the conspiracy. reporter: in court documents released both suspects purchased round trip tickets to turkey. they said if they were defected at the airport, they could kill a police officer and shoot other officers with the gun. more on this story later this hour and we ll speak with one expert how isis is using social media better than any other terror group has done before and luring young people from all around the world. the human rights activist who said isis kidnapped 150 syrian christians is now expecting a message soon about their fate. also syrian activists say an australian fighting with kurdish forces has been killed in a battle against isis. plus jordan is increasing security at shopping malls as well based on what the u.s. is calling credible threats. here s our barbara starr with more. reporter: iraq says their defense forces have nearly liberated al baghdadi the town in western iraq that isis has gripped for weeks. it s just a few miles from the air base where hundreds of american troops are on a training mission. for now, a victory for iraqi units. just outside irbil, italian, german and dutch troops training front line peshmerga forces. it s still unclear whether the next big battle will be to retake mosul, iraq s second largest city. amid worry iraqi forces still are not ready. if you go in there, it s going to be tough fighting and if you lose, or even if you have a stalemate, it looks like a victory for isis. reporter: iraqi forces could first take on isis in western iraq, which is less populated. but still an area with isis threats. a crucial hurdle for iraqi success, the need to include shia sunni and peshmerga fighters. it s going to be important that baghdad get its act together that the iraqi army get its act together as a multisectarian force. reporter: iraqi forces say they blew up these isis tunnels fighters were using to reach government buildings in the western city of ramadi. elsewhere, isis still on a brutal offensive. activists are reporting in northern syria, 150 christians kidnapped and threatened with execution after isis swept through several villages. secretary of state john kerry says isis will have to be confronted directly on the ground across syria. a number of countries in the region have spoken of their willingness under the right circumstances to commit troops to that effort. reporter: in jordan the u.s. embassy advising citizens to avoid shopping malls due to credible threats. and as isis threats continue to churn online the pentagon working on classified efforts to challenge isis in cyberspace tracking its encrypted web and social media accounts. that work is just beginning and because it s live and we re in a wartime situation, that s not going to be an area we can talk about in a lot of detail. reporter: on that upcoming ground battle if u.s. forces are going to be involved president obama is going to need to see a recommendation from the u.s. military in the coming days. barbara starr, cnn, the pentagon. many thanks to our barbara starr for our report. we are also following some news out of afghanistan. the taliban has claimed responsibility for an explosion outside the iranian embassy in kabul thursday morning. this is a new video just coming in. you can see smoke pouring out of that vehicle. a police spokesman says a suicide bomber blew up a car after crashing into another vehicle. at least one civilian was killed and another one was injured, as well. winter storm warnings have been issued for states in the southeast of the united states with another nasty round of winter weather. take a look at mississippi, where a number of cities have declared curfews because of the unusual amount of snow and ice. in maine, heavy snowfall caused a massive pileup of more than 70 cars. incredible. the interstate was shut down for about five hours while the wreckage was cleared. more than 1500 mights have been canceled in and out of the united states but not all of those are because of the weather. the most affected airports are in the south, including atlanta the busiest airport in the world. so what we re now also hearing from officials, as they looked at the death toll of this weather, it s more than 70 people people having heart attacks shoveling snow, car accidents. a lot of people impacted by this are being caught off guard. parts of alabama, 10 inches. about 25 centimeters of snowfall in areas of northern alabama. seeing some images trying to get clearance to share these with you. significant snow accumulations, much the same around northern georgia. i want to show you some video coming out of northern georgia across the blood mountain region. ice, snow all of it accumulating 6 to 10 inches. even some hikers out there enjoying the scene on wednesday afternoon in northern georgia. about 600 flights canceled out of jackson and atlanta. still seeing snow showers around nashville. northern georgia, things beginning to taper off. the last bout of some light snow could still fall across this region over the next several hours, but it s moving off to the east. take a look the temperature is just too warm around the city. but just north everyone below freezing. so that s where the heaviest snowfall came down across this region. the storm quickly moves off the eastern seaboard with drier weather expected to return and colder temperatures as well. so winter is still kicking on in the eastern u.s. so there s no snow in downtown atlanta right now. so i did not need to spend the night in the hotel. i m so proud of myself, because i came to work five hours early today. still to come here on cnn, it appears to be quiet in eastern ukraine as a cease-fire begins to take hold. but russian separatists may be targeting their next city. plus united airlines issues a stern warning to its pilots after a few near misses in the cockpit. we ll have the details straight ahead. for many prescription nexium helps heal acid-related erosions in the lining of the esophagus. it s my prescription. there is risk of bone fracture low magnesium, and vitamin b12 deficiency. side effects include headache abdominal pain and diarrhea. if persistent, contact your doctor right away. other serious stomach conditions may exist. avoid if you take clopidogrel. it s my prescription. nexium 40mg is available only by prescription. pay only $15 a month. visit purplepill.com today. i bring the gift of the name your price tool to help you find a price that fits your budget. uh-oh. the name your price tool. she s not to be trusted. kill her. flo: it will save you money! the name your price tool isn t witchcraft! and i didn t turn your daughter into a rooster. she just looks like that. burn the witch! the name your price tool a dangerously progressive idea. hey, girl. is it crazy that your soccer trophy is talking to you right now? it kinda is. it s as crazy as you not rolling over your old 401k. cue the horns. just harness the confidence it took you to win me and call td ameritrade s rollover consultants. they ll help with the hassle by guiding you through the whole process step by step. and they ll even call your old provider. it s easy. even she could do it. whatever, janet. for all the confidence you need td ameritrade. you got this. at long last the shaky cease-fire in eastern ukraine could actually be holding, at least for now. kiev says no soldiers were killed in at least the past 24 hours. that is the first since the truce was iannounced. reporter: pro-russian rebels pull their armor back from the front. they haven t said what s going where, but it s a start. france on wednesday said it will toughen sanctions on russia if pro-russia rebels target this city mariupol. this is the eastern most important of the city. this area has been shelled in the past scores killed just around the corner a few weeks ago. you can see some of the strafing on this building. if you live in this block of flats, there isn t much to protect you. we were here in september. this family was asking our advice where best to hide from incoming fire. we re surprised to find them still here. most other families have left. when the shelling is not that loud it s okay she says. but when it s louder i always get scared for my grandma and grandpa because they won t leave. the grandmother shows her icon of the virgin mary one in every room. so far, we ve been safe, she says. that s how this war has worn people down in the east living as best they can, fearing they have nowhere else to go. who would take us europe this lady says? what jobs would we get? and we would need to know a foreign language. we only know russian and ukrainian. but the city would be hard to take. a city of 500,000, crucial to ukraine s economy. kiev has upped its defensive positions around the city. and things are calming down. the number of cease-fire violations casualties down over the past few days. this war can t last forever, this man says. they ll shoot out all the shells and then they ll seek peace. a prospect that can t come soon enough for ukraine s tormented east. elaborate and bizarre war games. state tv broadcast these images on wednesday. gun boats speeding towards a u.s. aircraft carrier in the persian gulf only it s a fake. and then kaboom they blow it up. this is the first time iran has used a replica of a prominent target. iran s news agency says the vessel was built to scale and equipped of missiles. southwest has grounded more than 100 planes because of overdue maintenance. the airline missed required inspections on 128 of its boeing 737 aircraft. southwest notified the faa on tuesday and voluntarily grounded the flights. the faa said southwest can keep flying the planes for up to about five days while the inspections are completed. john? and united airlines issued a strict warning to pilots. you know cut down on disastrous mistakes in the cockpits please. several errors raised the alarms with officials. no word if pilots will get additional training. it s a little bit of a concern. u.s.-israeli tensions continue to rise ahead of prime minister netanyahu s visit to the u.s. next week. we ll look at what is escalating the spat. and social media explodes after the material girl takes a tumble at the awards. yeah, i sweeted about it. stay with us. would you be willing to give up sharing your moments? sacrifice streaming all night long? is it okay to drop a connection, when you need it most? if you re not on the largest, most reliable network, what are you giving up? verizon. the controversy over next week s visit to washington by the israeli prime minister benjamin netanyahu continues to heat up. he ll be at the capitol where he s planning to speak. israel views iran s nuclear program as a threat to its security. take a listen. translator: from the agreement coming together it appears that they have given up on this commitment and they are accepting with iran gradually, in a few years, would develop the means to create fissile material for the production of very many nuclear weapons. that was benjamin netanyahu there. u.s. secretary of state john kerry is cautioning and to wait and see what negotiations produce. i regrettably can t talk about it as much as i would love to talk about it because we don t have a deal yet. and so i am not going to go into great lengths and detail here for that reason and i would caution others not to be running around combatting the deal that hasn t been made. republican house speaker john boehner invited mr. netanyahu to washington. but he did not consult the white house. some u.s. democratic lawmakers plan to skip the prime minister s address next week because they say it will directly oppose diplomatic efforts with iran. meantime three al jazeera journalists have been arrested for flying drones over paris. but the city s prosecutor s office say they are not connected to the recent string of mysterious drone sightings over city land marks. authorities are trying to figure out who was flying those drones and why. and with the market for drones booming, will ripley looks at the growing security fears. reporter: we know they have them. isis propaganda shows the terror group using drones with chilling sophistication. gathering aerial intelligence on potential targets. in paris, mysterious drone sightings over famous landmarks are sparking new fears. more than five drones spotted two nights in a row. france on high security alert after january s terror attacks. france still searching for whoever flew drones over more than a dozen nuclear plants last year the late nest a series of high profile drone disruptions. in january, a small drone evaded secret service radar crashing on white house grounds. the incident raised serious security questions. we had a drone come within 50 feet of us. reporter: new york police arrested a man who flew a drone dangerously close to a helicopter. a texas student was questioned after flying a drone of this football game. you can take a chemical agent and it would kill people and fly it into a stadium. reporter: former cia officer bob baer says there s no intelligence on what they may be going to be with drones. with enough time and experience you could kill people with a drone. reporter: drone technology is a multibillion dollar industry with models starting at less than $500. new york city photographers uses donees to take pictures. he says the vast majority of operators are responsible. we re not interested in creating fear or invading anyone s privacy. we re looking as photographers for those images that you can t get in any other vehicle. reporter: but as the market gross, so do the number of people with access to drones including those who seek to do harm from above. will ripley cnn, new york. regulators need to come up with advancing drone technology. they have been behind the curve. the technology often gets in front of the regulations, that s the problem. some of the biggest names in music gathered in london wednesday night. it was a big night. it was the final number getting all of the attention. how the mighty have fallen. reporter: her performance was sure to be dramatic. but 20 years since madonna last performed on this stage, fell flat. though she took a nasty tumble following a wardrobe malfunction. soon she was calming the nerves of her millions of followers, telling her that her cape was tied too tight. even before the show, she was the star attraction. celebration, come together in every nation like a virgin you must trust within you the beast that s forever dying. reporter: before her falling, it started out as the battle of the british boys. with sam smith, and george ezra facing off in the top categories. the fans turned out for selfies and autographs. but everybody wondered which englishman would come out on top. five-time grammy winner sam was very complimentary about ed. how much competition is there between you two? or is it more as a bromance? i adore him as a person and friend and i really want him to walk away with that thing. reporter: they took two each of the statues. the show itself was sprinkled with star dust quite literally. in the case of taylor swift s performance. kanye west was a late addition to the bill and whipped fans into a frenzy when he dropped in a restaurant on his way to the show. it was his performance that set the stage alight. surrounded by modern dancers and fiery flame throwers. a night of heart stopping performances. of course the twitter verse lit up after madonna s fall. most of the messages seem to be sympathetic, but there were a couple of mean ones as well. cher tweeted, this is something we all dread. i give you props. you are a champ for finishing. i couldn t agree more. piers morgan any way, he tweeted out, ambulance for granny please. not very nice. boy george shot back at all the trolls. he said that was a hard fall, but she got on with it. all these comments about her being so old, so lame. i agree. she s 56. but the fact that she did that dance and did those movements, good on her. she is 56. after we saw the video in the newsroom we decided to show other videos of celebrity falling down. there is jennifer lawrence slipping on the red carpet last year. this spill came one year after j-lo tripped in the middle of the oscar ceremony while accepting the award for best actress. conan o brien took a tumble while recording this sketch right here back in 2009. he suffered a slight ouch! concussion. and then there s beyonce. i remember this. she tripped and fell while walking down. she barely missed a beat. such a professional. ability o reilly is facing more controversy he made as a reporter decades ago. this time though it involves a u.s. president. plus a family in the u.s. desperately awaits word on the fate of their syrian christian relatives, now in the hands of isis. stay with us. welcome back to our viewers in the united states and all around the world. just after 1:30 here on the east coast of the u.s. i m john vause. and i m zain asher. three men are facing terror charges in new york for plans to hijack a jet liner and join isis. the fbi says one of the men talked about assassinating president obama. two of the suspects planned to fly to turkey on wednesday. the third man helped organize and finance the operation. it appears a cease-fire in eastern ukraine is starting to take hold. russian separatists have begun to withdraw heavy weapons from the front line but ukraine s military will wait a little longer but no reports of combat casualties on wednesday. the taliban are claiming responsibility for a blast in kabul. the explosion killed at least one person and injured another. a police spokesman says a suicide bomber blew up a car after kraushing into another vehicle. returning now to our top story. the three men charged with providing material support to isis. for more, clark jones joins us. he s a counterterrorism expert. clark, thanks for being with us. the big picture here these three men appear to have been recruited online. isis capability on social media seems nothing short of remarkable. what does that tell you about the people who are running this terror group? it s probably one of the most sophisticated groups we ve been seeing. they ve been able to reach into many pockets, vulnerable areas in society, to pick up these marginalized kids all around the world. it is very it s phenomenal to be able to do it and continue to do it. one of these suspects says his lawyer says he s just a young, innocent kid, and he makes his point there s just a rush to prosecution. is that a fair thing to say? we ve seen it with the recent australian government national security statement was read out. there s been a push in many countries to jail these kids. and we re talking kids as young as 16 17 through to the mid 20s. that s the range of the type of offenders. but the worst thing we can do in many cases is put them into jail. jail does not help these people. if we re going to do anything about this terrorism threat we need to look at how we counter extremism, and what sort of intervention programs we develop. once they re in jail, it s very difficult. so we can look at diversionary programs. i think that s a good strategy. clark jones for us there in australia. we re going to take a short break. when we come back fox news host bill o reilly is on the defensive again, and he has some choice words for his accuser. stay with us. my goal was to finally get in shape. not 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[chuckles] he s supposed to pick one of us. this is a joke, right? that was the whole point of us being here. welcome back, everyone. we have more now on the assyrian christians kidnapped by isis. activists fear they may soon be facing death and a family in california knows that fear all too well. they are anxiously waiting for news on 12 family members now among 150 christians said to have been taken by isis on tuesday. they came at 4:00 in the morning and attacked them and took them away. we heard it was like a sea of black uniforms marching through the villages burning down the churches, desecrating the crosses and wreaking havoc. one of the activists who reported on that mass kidnapping is the founder of the assyrian human rights network and joins us live now from copenhagen denmark. so assama it s been a couple of days since they were kidnapped in northeast syria. the number of people kidnapped get on getting higher. what are you hearing from your sources on the ground? the number is increasing since yesterday night, because isis is taking over more and more new villages and towns, assyrian towns. i have a list of names. i can read it for you. situation is deteriorating and the number are increasing. so they re taking over more towns, kidnapping more assyrian christians. so i m just curious, what has been the defense strategy for the assyrian christians so far? how have they tried in the past to defend themselves from isis? there s some local forces called the guards of habor. those guards have been involved in protecting the village and the properties the houses particularly the civilians. so that was mainly their job. but when they were attacked by isis they didn t know how to face it because they ve not trained or experienced. they re not a militia member. they were just doing their job as police you can say, local police guarding the cities. so they re relatively peaceful. i know some of them were fighting alongside the syrian kurds, the ypg. the remaining assyrian christians in that region i understand they fled. i understand some of them are holed up in a cathedral. what are you hearing about them? are they safe right now? yeah they re safe. the number is increasing more and more. yesterday night, the latest numbers we get from them was 1,050 families. so we are talking actually about more than 6,000, at least 5,000, 6,000 people who are displaced. so they re basically in two churches churches. 150 families have left. already also some assyrian political parties, ngos and local groups aid relief groups that are taking care of them. i understand that your wife also has some relatives in that area. were they among the people who had fled and are safe or what are you hearing from them? are they okay? unfortunately, i m trying my best to be as professional as possible and objective as possible. but at the same time i m involved myself. my wife belongs to this city and i myself belong to the city. both of the cities are facing bad times. yesterday night, we are being told that there were the isis forces were using some speakers and they were playing all the night the koran. people could hear that from far away. actually yes, what i m trying to be professional and also having feeling sad, because my family the family members are really taken hostage, and we don t know what s going to happen to them are they going to face death? are they going to be released? nobody knows. yesterday night, we were called up we had been informed two of the hostages had been released. but everything disappeared, because those two hostages didn t arrive as planned to arrive to the cathedral. so this was some hope but now we don t have any hope left. so your family members or relatives have been taken hostage. i m so sorry to hear that. please keep in touch with us and let us know what happens to them. i cannot imagine what you re going through. asama edward thank you for being with us. we appreciate that. thank you. john? fox news host bill o reilly is defending himself, again, against accusations that he over overexaggerated or flat out lead about some of his reporting. he has strong ratings and the network continues to stand by him. but in the 70s and 80s he was a correspondent for cbs news. now he s defending himself against comments he made and published about the assassination of former u.s. president john f. kennedy. reporter: just as bill o reilly was trying to move on from a dispute over his war stories, the fox news host suddenly has more questions to answer. this time the scrutiny is being directed at an account of his investigation into john f. kennedy s assassination. he has said in his book killing kennedy, that in 1977 a man had been contacted by congressional investigators. o reilly a reporter for a dallas tv station, says he tracked him down in palm beach and arrived at the door of his daughter s home just as he shot himself. that account is now being called into question by several media outlets, include thing report in the huffington post. this follows a report last week in mother jones claiming bill o reilly exaggerated his reporting experiences in el salvador and while covering the 1982 faulklands war. back in the 80s, he was a young spomt for correspondent for cbs news. over the past week he s denied the allegations and attacked the magazine. this man, 56-year-old david corn who works for mother jones, smeared me your humble correspondent yesterday, saying i fabricated some war reporting. mother jones, which is low circulation, considered by many the bottom rung of journalism in america. reporter: in relation to his reporting in argentina, here is bill o reilly speaking a few years ago. all hell breaks loose, the people start to storm the averagen tine troops shoot the people out in the street. so i grab my crew away. we re shooting all this stuff. it s unbelievable. people just falling, bing bing bing. a soldier runs down the street i m there. a photographer getting trampled. so he s on the ground. i grab him and the camera and i drag him in a doorway. the soldier comes up and he s standing maybe ten feet away with the m-16 pointed at my head. reporter: this is cnn video of the riots in question. last weekend, cnn s reliable sources spoke with seven people who worked for cbs news in argentina at the time. none of them remember any civilians being killed in the riot. many of those who spoke with reliable sources still work for cbs and have requested to remain anonymous. but former cbs correspondent eric angberg is speaking out publicly. he was there at the same time as bill o reilly during the faulklands war. i did not see that happen. reporter: here he is talking on reliable sources. it wasn t a combat situation, by any sense of the word that i know. there were no people killed. he said that he saw troops fire into the crowd. i never saw that and i don t know anybody who did. and i was there on the scene. what s interesting is not only did i not hear any shots, i didn t see any ambulances or any tanks, i didn t see any armored cars. all of the things that you would have expected to see had people been shot. reporter: and the magazine is standing by its claims. here s mother jones senior editor. there was only one place that combat took place during that war, it was on the battlefield of the faulkland islands, which was 1200 miles away. part two of this is this riot that he covered. there s no question that this occurred and it got violent, that tear gas was fired and rubber bullets were fired. subsequently after he reported this in recent years, he said that soldiers fired indiscriminately on civilians and many were kid. not only are there no media reports that support this but seven cbs colleagues have come forward and said this didn t happen. we couldn t get casualty numbers. reporter: bill o reilly continues to present his evening show on fox news insisting he s done nothing wrong. o reilly is also facing another allegation that he lied about seeing a group of nuns gunned down in el salvador. he recalled telling his mother about seeing that happen in 2012. the public case media matters cites a professor who says there was no noneuns killed at that time. one first grade student had to look no further than his own classroom to find a perfect match for a kidney transfer. that story after the break. the future of prosthetics has arrived. for the first time ever amputees have been given artificial limbs which can be controlled with the mind. this video you see is from a patient in austria performing various tests with their new arms. they work by connecting the processsthetic directly to a person s nerves. the technology is not perfect, but with the right training an amputee can move the robotic limb with just their thoughts. incredible. one teacher in texas is demonstrating something that goes well above and beyond reading, writing, and math. it s a lesson in giving. one of her students desperately needed a kidney donor after his initial transfer failed. the rest of the story is nothing short of a christmas miracle. here s emily from our affiliate woai. reporter: parker searched the whole country to find matt a kidney. like right here. reporter: little did they know anyone would just submit their names. reporter: the perfect donor was in their own backyard. goldfish goldfish what do you see? reporter: lindsey painter i see a teacher looking at me. it is mind glowing. when the coordinator of the hospital called me on christmas eve to tell me i was a match. reporter: several weeks of testing later looking at us. reporter: doctors confirmed she would donate her kidney a decision she did not take lightly. i have a 10-year-old and 6-year-old at home and i can t imagine having a child with what matt is going through. reporter: his dialysis keeps him alive. yet, that 1,000 watt smile never leaves his face. once he found out that he was going to be getting a transplant he s been so giddy every day. he s so excited. reporter: it s a bond that will connect students and teachers for the rest of their lives. it will be a story to tell when he gets older. . she s just a giving person and i think it s a miracle. and lindsey painter joins us now from texas. this is such an incredible story. i guess right now, is everything on track for this transplant operation? yes, everything is on track, and we re just hoping it stays that way. we have one more cross match to go but god willing, everything will work out the way it s supposed to. getting a little nervous? i m ready. of course i m nervous. it s a major surgery. i just want everything to turn out the best possible way, but i m ready. you make it sound like this was an easy decision. when you were told that you were a match, did you pause for a moment and think, this is kind of a big deal now? oh i did. absolutely. i knew when they called and said that we were shown as a preliminary match, i had a lot to learn about what it meant for me and my lifestyle. i needed to make sure i wasn t putting my family at risk and i was making the best decision for all of us. but the more i ve learned and the more people i ve talked to at the hospital and prior donors the more comfortable i ve become. what s incredible this is sort of a 1 in 100 chance that you would be a match. matthew, this is his second transplant. yes. it s his second transplant because his body rejected one kidney. it made him much harder to match. so the hospital they described it as looking as the needle in the hey stack. they said he would match about 1% of the population. what is the prognosis once he receives the kidney and the prognosis for you? my recovery time is much easier than his. after about six weeks, i should be good to go back to normal activity. and really they just ask that you live a healthy lifestyle. there s no dietary restrictions. it seems like it s going to be very easy on my end, after recovering from the surgery. matthew, he has a longer recovery but we re hoping that once he recovers that he will be an active, healthy little boy without all the restrictions that he has now. he can go to school every day, play sports go swimming and do all of the things that he s not able to do right now. lots of teachers care about their students but this seems way beyond what anyone could expect. many people a lot of people would be asking how can you do something, which is just so incredibly selfless. for a student, not a relative a kid in your class. it is. and i have two little boys at home. so watching my little boys being a mom and being a teacher, i knew as soon as he family reached out looking for a donor, i needed to find out if i could help him. once we found out i had a lot to learn, but i just knew i needed to see if i could help him be healthy and live the life he deserves. if you have seen any pictures of him, he has that smile every day. you would never know everything that he s going through and how hard things have been because he has the most positive outlook on life and he s the happiest child you ve ever met. so to give him this gift is pretty incredible. lindsay, it was a 1 in 100 chance of a match. you have to be 1 in a million out there. and we wish you the very best of luck. thank you. that story is going to touch so many people. how generous can you be? the hospital performing his transplant is keeping their website up the one they use to search for donors. for more information on how to become a donor, logon to mattswish.com. thank you for watching. that does it for us. i m zain asher. i m john vause. stick around errol barnett and rosemary church will be up next. they re just over here. here they are. people with type 2 diabetes come from all walks of life. if you have high blood sugar, ask your doctor about farxiga. it s a different kind of medicine that works by removing some sugar from your body. along with diet and exercise farxiga helps lower blood sugar in adults with type 2 diabetes. with one pill a day, farxiga helps lower your a1c. and, although it s not a weight-loss or blood-pressure drug, farxiga may help you lose weight and may even lower blood pressure when used with certain diabetes medicines. do not take if allergic to farxiga or its ingredients. symptoms of a serious allergic reaction include rash, swelling or difficulty breathing or swallowing. if you have any of these symptoms, stop taking farxiga and seek medical help right away. do not take farxiga if you have severe kidney problems, are on dialysis, or have bladder cancer. tell your doctor right away if you have blood or red color in your urine or pain while you urinate. farxiga can cause serious side effects, including dehydration, genital yeast infections in women and men, low blood sugar,kidney problems, and increased bad cholesterol. common side effects include urinary tract infections changes in urination and runny nose. do the walk of life yeah, you do the walk of life need to lower your blood sugar? ask your doctor about farxiga and visit our website to learn how you may be able to get every month free. flo: hey, big guy. i heard you lost a close one today. look, jamie, maybe we weren t the lowest rate this time. but when you show people their progressive direct rate and our competitors rates you can t win them all. the important part is, you helped them save. thanks, flo. okay, let s go get you an ice cream cone, champ. with sprinkles? sprinkles are for winners. i understand. join isis and kill the president of the united states. authorities caught on just in time. 100 nuclear weapons in the hands of north korea. experts warn the worst case scenario could b

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this quaint look, orange jumpsuit, orange hair. every channel was there and it was an hour of nothing happening. he did not say anything. so when you think about why do we do that, i know why we do it, because people tune in. so they are giving people what they want to see. but i think that s the worst part of it. as far as encouraging others to kill, there is an element, but it is a small one. the bigger part of the problem is the offensiveness, the negativity of that. you have, for example, an academy award-winning actress for playing a florida serial killer. or years before, mark harmon who at that time was the leading man of hollywood and he played bundy. what right do murderers have to have some famous actor or actress play them in the movie. i do not mind of movies about crimes as long as the killer is like a very small part of it and you don t have a star play the role. go-ahead. my question is along the same lines. he said not to make those who are committing mass shootings, can you argue that the way the media betrays the hype that they play around this stuff is somewhat positive it makes people aware, it makes people take initiative to change things, for example? last year there was a video that went viral on youtube about the guy that was taking charge in uganda. and i had never heard about that. all of my friends were talking about it and nobody knew about this. and now all of these celebrities are starting charities and i know that there is controversy on where that money was going. but my point is there a way to make the shooters aware of what is going on? one of the positive things is all the people wanting to donate. a lot of good can come out of publicity. but you just have to take the killer out of the picture. that s the problem. so i think giving a good example, i did a study with my colleague of people magazine. we looked at every cover from the 70s up to a few years ago. when they first started, it was all about people who did good things. they had people and politicians who did the right thing. medical discoveries, astronauts who did great things, here it is. and over time it started to get very negative. after a while, the majority of the covers were criminals, jeffrey dahmer was on the cover three times. he was also in the most intriguing 100 people of the century. he does not belong in a list like that. and one of the people went on a shooting rampage at an elementary school in illinois. a guy named jamie wilson who was a fan who kept clippings about her and did exactly what she did when the police went to his apartment and searched it, they found people magazine covers and all sorts of stuff like that. in more recent years people have changed. they curtail putting bad people on the cover. sometimes they put the victims on the cover so that is a positive change. that is a situation where the media really has to has to take the initiative in the have to draw the line and say people might be more likely if they put the picture on the cover we can still write about the crime or the case. the cops and the heroes. the killer is in the story, but let s not make him the feature or focus. hello, usually after a school setting, we hear from gun-control advocates and experts in psychology in response to certain things. very rarely does the media focus on educators. so i m wondering what do you feel the goal of educators and school professionals should be in situations like this. and then also coming up with a solution and what do you think it is likely to be. what kind of education? schoolteachers? i really mean anyone involved in the profession. okay, i think you do. watching the news coverage, there were a number of individuals i saw, people involved with teachers unions and they do have a perspective. for example, the issue about arming teachers, it s something that the teachers do not want. just recently there was a hearing where some bigshot teachers union said they didn t want teachers to have guns. it s the people in the state capitals that think that it is a good idea. so you re actually right that sometimes those who are making the most noise know the least and those who know the most are silent. so i agree with you. i agree with most of your arguments tonight. one argument that i am concerned with, the discussion about concealed weapons is not being an effective deterrent. two things come to mind. one is, as i recall from your article, a person in a situation like this would be so nervous and panic stricken it strikes me as that may be true the other hand, there s a probability of him being successful. and maybe he would argue that i would take that chance against a certainty there are multiple crimes with the possibility that maybe somebody among them that might carry a gun. and it might be effective. the second point is there are certain counties in this country which protect conceal and carry laws which people permit and a lot of people do in these areas, they carry concealed weapons. i m wondering if there has been any data or statistics done on the incidence of violent crimes or mass killings, in those areas that permit concealed weapons as opposed to an area like the district of colombia which have some of the strictest gun laws in the country. so can we see any kind of statistical relationship between the number of people in an area that would be carrying concealed weapons as opposed to an area like the district of colombia which no one is permitted to carry a concealed weapon? okay, let me deal with the first one first. let s fletcher lined. okay. i had to deal with carry and conceal weapons in environments. okay, there was a terrific show. it was either dateline or 2020. they took a bunch of students who had training in guns and basically gave them fake guns and at some point, someone was going to come in with a gun and start shooting. not a real gun, of course and they would record a response and record what happened. a lot of people in the class would have been killed, not by the shooter, but by other people who also held up their guns. one of the problems is it is hard to tell the good guy from the bad guys. you have the bad guys, who was wearing blue jeans and all the good light who have blue jeans and backpacks and guns. i kind of worry when they are turning around. 98% of the people out there who might have guns are trustworthy. we have three more questions and then we are wrapping up. you talked about this at the end of your speech. how did the united states deal with other countries? is there something about our culture that allows them to encourage this behavior? the european countries, asian countries, you know, oster elliott. they have had mass murders two. we have a cornerstone market in the united states, not a monopoly, but more than our share and we also have more than our share with homicide generally. so really has to do with elevation with greater burden. and people who have said that guns are the problem. i m not sure that it is the problem. our rate of homicide without guns, it is higher than most of the rates of homicide overall. it is not just the fact that we have deadly weapons accessible. you know, it is a very complicated issue as to why the united states is more violent and has a lot to do with demographic issues. .. is her greatest let me say one more thing. we have seen it equips our community. 30 or 40 years ago if your neighbor was out of a job you would go over there with the tuna casserole and offer whatever you can do to help. nowadays you don t even know who your neighbor is much less knows they are unemployed and that is the problem in the community. lots of people feel isolated and lots of people are alone in the rest of us without reaching out to help them, we don t know them and they are strangers. i actually have the same question and she coordinated it better but i m wondering in europe there are less guns and in fact to account for the lower rate of violence. well, there are some countries where there are fewer guns and by the way they do, they still do have mass murders. they had won a year and a half ago. a taxi driver went on a spree killing but there are some countries in europe where lots of people hunt. so it s a mixed bag. as you said before there s been a lot of talk in the media about assault weapons and what role they play in violent crimes. personally i m a bit unclear about what exactly an assault weapon is and how it s different from a semiautomatic or other firearms and rote role it plays not just en masse shootings but violent crimes in general? an assault weapon is what you define as an assault weapon. it s not like an official category of assault weapons. if you look back at the assault weapon legislation we have in the 90s, they have had to do with a certain number of attachments. magazine size and so forth. people basically think an assault weapon is something that looks like an assault weapon but there is no clear definition of one. let s also understand that not in terms of mass murder but crimes in general a very small percentage of crimes are committed with assault weapons. with new assault weapons ban about 2% here that doesn t mean we should have it but let me say one more thing. if i have time. we are almost out of time. sandy hook, awful. it s the worst you can imagine. in 1989 we had an elementary school where five were killed and 29 were wounded. stockton california. people don t remember it largely because the victims were poor and they were southeast asians. it wasn t quite like the upper-middle-class community of newtown connecticut which is like anywhere in america but after that case president bush decided that the chinese made ak-47 s and we just can t have that ms. country. what he did was he passed, enacted a ban on the importation of foreign made semiautomatic weapons. and you know what happened? they cheered, more business for them. at northeast university in the 70s i took to co-op jobs over in ireland and england, and there were no guns in society over there when i was working on those jobs. so they lose it or nine people a month to violence that we lose 900 to 1000 people a month to violence in this country. now i was just driving along the other day and listening to an interview with jack straw the former homeland secretary in britain on the same issue and i was reminded, he made a comment that the idea that someone in britain would carry a weapon for personal defense is inconceivable. a lot of our immigrants and i come from massachusetts, came from england. how can we be so different from britain is my question. is not just the availability of weapons that be have, 300 million weapons in circulation and great britain ,-com,-com ma there are some weapons but very few. it s also the attitudes. i mean the passion americans have for guns and the second amendment is quite foreign to many people in europe that don t quite understand why my cold dead hands, fingers, what is the phrase? just don t take away my guns and is the last thing i want to do. i think it s not just the none but what guns mean to us. too many americans. it s very different in other countries. they would never think of the idea of self-defense because they don t have that fear. that is what i m trying to deal with here and figure out. if we had a crime rate that was extremely low perhaps people would be less apt to feel the need to arm themselves. but i am not sure. it goes back to this idea of people don t have this attachment or affinity with all their neighbors. even if we had a low crime rate there would be lots of people say is a need my gun because there a lot of people out there in america who i don t trust and i think that s probably different in european countries. thank you for coming. nice to see you. elizabethtown college and the peace college who are dedicated to peace and nonviolence as part of her mission as the president stated at the beginning of his comments, and i think we did a great job tonight gathering together as a community around a very difficult issue. will you join me in thanking professor fox one more time? [applause] there is an informal reception. please join me to my left and have a good evening. former prime minister belgian discusses the economic future of the european union. mr. verhofstadt addressed europe s fiscal problems and called for a change to the governing system. he currently serves the harlemite. the daily news and jupiter david from monitoring the discussion. thank you very much. you said it shall be a short introduction but with a politician you never know how short the introduction can be. i will do my best and first of all ladies and gentlemen it s not the first time i have come to washington to give an introduction about the e.u. crisis, the crisis of the european union and what can we learn from the united states? i think six years ago at that moment prime minister of belgium about the same topic though not such a prestigious institution as brookings. today i am in quite a different context i should say because compared to six years ago the european union is in the midst of a serious crisis and i shall not give you a whole overview of everything that has happened in the last few years in europe. you have certainly followed the greek crisis and the portuguese financial crisis and the irish crisis and also in the same year the problems in madrid spain, problems in italy. so we have to recognize that since the outbreak of the financial crisis of 2008 eight we are in the midst of a number of problems and the question that i want to raise with you this morning is what went wrong in the european union and? what is the reason there is a crisis in the european union and? it has happened in other parts of the world as well. why what is happening exactly in the union? and what is going wrong? i put this question as a european to convince somebody is in a federal europe because as many of you will know, there were so many people in europe that believed it is the existence of the union itself that is the problem. and certainly not the solution to our crisis. they would draw the retreat behind the national borders as was the case in the 19th century in the world of of old-style powers and old-style nationstates and affect many of these people don t understand that this world is not any longer exist and the 19th century is clearly behind us. i am always saying president obama cannot deal with climate change and trade with china and any single european country to achieve this on its own and moreover i m always giving the example of what she ll be at the g8 in 2040 or something like that, the g8 shall shall be thee us-japan china india brazil russia and i ve given six names now and the last indonesia and mexico and one single european country. nevertheless i think that the challenges are huge and the societies are at stake, our principles, a way of life that counts in this world of tomorrow and i think it s certainly necessary that the two big continental locks europe and the u.s. are working together. one seventh of the world population, still 50% of the world s gdp and two continents that share the same freedom. but let me return to my initial question. what went really wrong in the european union? well, i think mainly finally talk about her problems we have to talk about the eurozone. establishing this eurozone a number of fundamental mistakes. we created as you know a monetary union and at that moment an economic union, fiscal union at banking union and today we ll know it s impossible that the single guarantee with 17 different governments and 17 different economic strategies that it simply cannot work. i am always saying maybe the state can exist without a currency and there are number of examples of that but there was never a currency and there is no currency in the world without the state. the state authority on the economic financial and political conditions to sustain the currency. nevertheless the european decision-makers years ago talked exactly the opposite, exactly the opposite. they talked that it was possible to introduce the euro without the necessary means and all these necessary means and dues should become spontaneously reality. in a nutshell they told that it was possible to have a single currency, the euro based on especially to specific rules, two basic rules. the first and you know them, no public debt higher than 60% and secondly no fiscal deficits higher than 3%. don t get me wrong, these rules rules but the founding fathers of the eurozone made a mistake not to foresee in my opinion a public authority at the eurozone level to impose that. a public authority strong enough to prevent member states from breaching them. a public authority with the necessary means to sanction them and to penalize the system. in my opinion certainly in politics a very naïve opinion. that was not the only mistake. every time the stock markets are going up, many in the european union believe the crisis is over and i think it s sufficient to see the effect in italy to realize this is completely wrong. it s enough that a single election goes badly for the markets to react immediately but the number of devastating consequences across the union. we have followed that 24 hours. 1% more than just before the election and with contagion to other markets to spain and so on. the crisis around the euro, the euro crisis crisis is not overran this crisis in my opinion, that s my message for today that this crisis needs a structural solution because the meeting since the outbreak of the crisis in december the european heads of state and government have in fact in my opinion not been able to agree to do such a structural solution. moreover in my opinion because they are intact and able to do so and not made to do so, the european council is in the middle now of the decision making inside the european union is in fact in my opinion not made to govern europe or manage the euro area. moreover i think the european council will present the general interest of the european union the amalgamated interest of individual members states. if i can make this comparison is if the united states wants to be run by the 50 state governments. imagine that, no american administration. none at all, even capitol hill. you have the 50 governors alone coming together, five or six times a year that have to provide the policies for the united states. what do we do to make the dollar more sustainable and all this by unanimity. you know better than i do i think that unanimity is certainly not the best way to govern the country. and even less a consonant and a lesson understood by your founding fathers over 200 years ago. unanimity kills any real capacity to make real change. besides this an effective way of governance and the lack of real sanctions to ensure fiscal discipline would we have also made if i can kind of a get a complete analysis a third fundamental mistake. when we launched the euro i called it the other side of the coin. if fiscal discipline is one side of the coin you need the other side as solidarity. without solidarity the monetary union simply cannot exist and isn t that the essence of the monetary community and it s clear that such a form of solidarity can take different forms. it can be the monetary fund. it can be by way of a partial mutant mutualization of debts for sovereign bonds the way hamilton did it. or finally it can also be done by the federal budget. the budget that can finance government policies for that currency. the main problem in europe is that none of this success in europe. besides to limited rescue funds and you know them, the european financial stability facility which is a temporary rescue fund that has been created in 2010 and besides the more permanent stability mechanism, follow-up at the esf and besides that there is in fact nothing at all. what you have is a budget of 1% anonymous european budget with 1% compared to 34% in the u.s. and not always easy but it s not the 1%. moreover the lack of real independent revenue inside the union a hostage from the member states. we all know if you want to tackle the problems in the european union we need a bigger budget and direct income for the union so that the union itself decides on what needs to be funded so that you can also establish what is normal, what is the evidence in a true democracy a link between the citizens and/or public authority in your country. so that it can see what they paid for and it can be a federal federal here in the u.s. and the financial transaction. you need some real direct funding of your federal authority to be credible and to be effective. they union that does not work well because of an effective governance is not only an institutional issue but an institutional problem. in fact people and economies suffer the most from it and let me give you one example. i m very convinced about it. have the european leaders for example decided in december of 2092 they should have established for example a new surveillance mechanism of that legit in a change for greater financial support, i think we would not be in the crisis we are today in europe and also i think many millions of people would not have suffered. but because we have given the impression that we would kick out one of the members of the monetary union so the price of inaction and because of an effect it institutions in the european union is for the moment very high. too high in my opinion and what it does for example for the moment in italy with half the population voting for two populist parties. that is what happened. one party, the party of berlusconi created the mess i should say and the other populist party that is simply opposed to politics, opposed to the system. or if you want another example extreme populace outside of fascist body submerged for the moment. so my clear message of the day is we must change drastically the way we govern europe. we must in my opinion the fast as possible introduce what i call the federal way because federalists guarantee not only the respective differences, provides also mechanisms for making decisions by the majorit, ensuring effectiveness and transparency. then the question is, what does it mean for the european union since a change in the federal system? in my opinion therefore building blocks. first of all the establishment of true european government. it should be infected drastically reformed european commission. secondly what you need is a true european treasury with the treasury minister at his hands. federal democratic control with the european senate a second chamber working together with the european parliament. and forth, also a common european bond market and to start with what we call the collective redemption fund which is the idea to mutualize debts at the 50% mark ii create a market of 3 trillion euro and that would be a real game-changer. in short when i give you the four building blocks and you are american and say yeah that s exactly what we did in the 18th century more or less, and you started with the declaration of independence and in 1781 with the articles of the confederation still based on unanimity and then in 1787 with the convention of philadelphia in which the articles of the confederation were fundamentally changed in a real federation with article vii stipulating an approval by nine of the 13 states was not sufficient to approve the constitution and bring it into force. and then 1790 the european union the first half of the treasury will introduce treasury certificates with thomas jefferson that also because it had been created in that deal at that moment and then it s only later in 1792 that the single currency was established and only in 1930 the federal reserve system emerged. so historically it is quite clear. we do exactly opposite. we start with a single currency and then we say we have a problem. they don t happen economic union and the banking union is not there and we have no sanctions. there is a difference with what has happened here. so ladies and gentlemen, i think that we need to make this new federal system in europe. and also for our american counterparts because only the unified europe based on the example of american counterparts can be a long-term reliable partner for europe. it is a choice between the disjointed efforts of 27 small states or a single solid department and i think in a globalizing world of tomorrow in the interest of the united states is to work with a single solid partner at the other side of the atlantic ocean and not 27 different member states. i think also that this cooperation can ensure that it becomes the benchmark across the world. that is the reason and that is my solution. i strongly support the free trade agreement between the u.s. and it s clearly in the interest of oath. it would lead to an increase of 100 billion euros and a gdp of the european union to approximately the same figure, the 90 billion in the u.s. and lead to an increase of exports of hope continents, essex and an 8% increase so i think we have interests first first of all for the debt reform of the european union and as fast as possible this trade agreement and cooperation between the two blocs. into and ladies and gentlemen i want to end with a quote of what you do otherwise in washington with a quote of george washington because he was not only her first president but was also a european visionary. he wrote in a letter 200 years ago to his european friend the markey of lafayette, the following sentence. it s interesting to repeat it for you. i am a citizen. i m a citizen of the greatest republic of my time. i see the human race united like a huge family. we have made sewing of liberty which will spring across the whole world. and one day on the model of the united states of america a united states of europe will calm into being. a united states of europe will legislate for all its nationalities. you can say that he was well ahead of his time, george washington even by today s standards. certainly when i m comparing him with the prime minister of written mr. cameron he is way ahead. but george washington was convinced that no matter what the europeans will come together and perform this united states. let s be honest, this was thinking outside the box and i can say that certainly in the 18th century. few would have thought that there was a chance for that to happen. there are also people who so in fact viewed the united states as the source of inspiration. the united states of america has opted for more cooperation come more federalism and having done so not only is survived but flourished as never before. the same is necessary for europe certainly in the globalized world. thank you for your attention. [applause] prime minister thank you for your very lucid and candid remarks and on behalf of what happens in washington d.c. thank you too for your count them and suggesting there are any lessons for europe to learn from american governance. we think we are setting world records of dysfunctionality here it is impressive to hear that anyone thinks we have anything positive to offer. you stated very emphatically and very clearly the requirements for successful monetary union, common government, a common treasury, fiscal policy and banking policy. none of those were in place as you said when the euro was launched. in that case was it not reckless and irresponsible to launch the euro? this is like is it not, this is not like saying i want to go to see and i know i will need water, food fuel and maps. i have no water food and fuel are maps. i agree with you but you have to understand why it has been established. it was not a financial process. it was a political project. eighth here political approach after the fall of the soviet union, a deal was made between france and germany, between francois mitterand and you remember under western leaders in western european leaders that i was to create two democratic germanys at that moment. mitterand played a long time with the idea. i think it was a stupid idea but at that time it was in the air. finally mitterand understood that it was impossible to go against this trend of unification of germany and he asked for a prize in the price was okay i shall ask for a common currency and then to establish real germany in them middle of the monetary union so never again never again germany can break away from the system. that is the reason why we created it. we introduce the euro and it has been prepared in a public way. there was success and most of the counties but the problems emerged immediately in the sense that if you don t have an economic system with a number of rules it is not sufficient. this may be sufficient in a time of economic growth and the beginning of 2007. there were five, six,, seven years no problems and no interest-rate in the european union. everybody benefiting from that and then came the financial crisis. a financial crisis that emerged and that created not only a problem but a debt problem in a number of countries. because it is the main reason of this increasing debt since 2007 in the european union like was also the case in the u.s.. and so at that moment what you see is that you don t have your fiscal union and you don t have your economic union. the only thing you have our rules for not been applied by the countries in 2003 and 2004. the first two members of the eurozone would apply the fiscal deficit rule of 3% on france and germany and they are saying yeah but there are exceptional circumstances on the monetary issues there are always exceptional circumstances and so we cannot apply them. that created in fact a sentiment not only that this was not real builds on sound policies and sound economic and fiscal union. and then you have in 2009 what happened which is very simple to explain because the public finances were already very bad i should say for years and years but what happened was the rating agencies downgraded it. at that moment it was a real problem and at the same time the european central bank announced an exit strategy that you should no longer accept triple bank as collateral. everyone had his portfolio that the longer could they use it and they sold it and the crisis in fact was born. spin the euro may not have been an economic project in its possession but had economic consequences from inception. those consequences had been caused catastrophic and the worst to strike the european economy. millions of people out of work and millions of people losing assets and those consequences showed up immediately. as you say those low low-interest rates created a tremendous incentive for people in the southern part of the continent to borrow and it created an incentive for people in northern europe to export from the beginning. france sought share of world trade collapse from the beginning germany saw its share of world trade rise mostly at the expense of france. now we see a continent with unemployment rates at great depression level across the bottom half. it s a calamity. it s a catastrophe. people are turning on their political leaders and those political leaders are saying, what did we do? why are you planning us? should now we begin with accountability and responsibility and say the euro was a terrible mistake and at this point we have only bad options. the people who created this mistake need to be held to account. first of all thinking like that about europe, every poll on the hero, in greece, spain italy or portugal has a convincing 70/70 5% failure for the euro. greek citizens say if i lose tomorrow the euro can we go back to the old policies of our predecessors you know what it was. it was every two years eight evaluation of the leader to regain competitiveness because of a lack of free form in the country. and who is paying the villa in the devaluation? the normal citizen who is in fact losing power and that was happening every two years. that is a reason because it s very there s a contradiction. they are always difficult with what is your basking at the same time do you want to continue and does it say yes i want to continue with the single currency? the problem isn t the euro itself. the problem is a lack of form and a number of countries. take france for example of the european union. and what is helping now is that the euro can create a pressure to all these countries to reform and to do what is necessary. not to do with it in the past because that is no longer possible. was the euro a good initiative politically? certainly it was not well prepared as we discussed already but a number of countries have an enormous advantage, countries like belgium my country or the netherlands and certainly in germany but also a number of other countries. all monetary forms were abolished. i can give you three or four countries, not my country but the netherlands. the netherlands because there was an election six or seven months ago in which a political party said we want to get rid of this euro. we want to get out of the eurozone. he lost one third of the electorate. why? if you know something about figures and so one, some people say too much and there were analyses showing from all financial institutions, showing that if the debt should go outside the u.s. this is some there should be an economic downgrade three times bigger that had on the effect of the dutch economy. why? because it s an export country. speak to us it seems that europe is built something like the doomsday machine from doctors change love, a giant explosive mass under the continent that will kill you all if you get rid of it quickly but it is killing you all slowly and it s true. it used to be in italy people would lose two or three or five or 6% of their purchasing power per year now been employed lose 100% of their purchasing power all at once and not just for one year but year after year after year and we are now closing on half a decade of mass unemployment. 50% for young people in spain and greece. people in spain we are seeing the beginnings of immigration. it s true, the dutch and the belgians and the germans have profited hugely in their suggestion for the way to solve the problems is that all the people are suffering must change. all the people that have benefited get to stay the way they are. that is the other side of the coin is that the policies and the opinion and that is absolute necessary. when i was young i started with the fiscal deficit to 60% of the general government and with a the 137% debt-to-gdp so we know what we are talking about and how to manage it. fiscal discipline is absolutely necessary for growth in the long term but if for the moment, you two only fiscal discipline and they don t organize solidarity, growth and investment in a certain way at the european level you have the mess we have today in and the problems we have today with massive unemployment in portugal and spain as you indicated. that is the problem. that is that the european leaders see the fiscal discipline as one huge principle to have a sustainable union. they don t for the moment and have to recognize the other side of the coin and this is solidarity and it means in my opinion or european bond barkers are than me but with mutualization and why? and you can create a market. you can attract savings. you can launch investment in europe, what we desperately need. let me give an example to show you what the problem is. an example of a small country and are not talking about spain or italy. i m talking about big country that is nearly compliant. less than 60% debt and they comply with the stability. they have faith fiscal deficit of but there are many more problems in other countries. they are paying 5.66% was their last financing cost for the government. and they put it in dollar amounts. otherwise they had to pay more than 5.66%. so a country fully complying and nearly complying with the stability. why? a small model. who is interested? slovenian bonds of some type? i don t think so because it s a small market but no liquidity. it s a basic possible that all these leaders in europe have forgotten. and bond markets its liquidity that counts. the higher the liquidity the lower the rates. .. despite difficile problems, no investor does. no investor does with the japanese government could making in in that unisys government could make dollars, but they cannot make kirov s. that is what they re being punished for. your have the vision you present is one the people of being punished. the you worry about what that means for the stability of european democracy? we have seen on the fringes of europe some countries backsliding away from the locker see. the patients of the spanish people is almost superhuman. there are limits to everything. italy has had a protest. it seems so far to be not a protest for content, but expression of repudiation of political leaders, and who can blame them? and think this, not only the euro crisis, but political and not purely financial and economic. you have to make an analysis. a good conclusion. a good conclusion from that. it goes back to nation states. could your to your back to 17 different markers, 17 nations with their own currency with their own, i don t think so, and the globalized world of tomorrow yet to further integration into everything emissary. and for example, that means they have to oblige, for example, countries like italy to change the labor market because of they don t change live market is an increase their rate the puts pressure on the euro. the fact of the law. there s no obligation. you have a common currency, a common destiny a map and a common air. the question yes, we know what the problems are. watch for rego. i think it s wrong charas to make. you go further it was a normal way of thinking. this sense. that was not the same conflict and to have consequences. for example, come to five california goes bankrupt is not that the holes and is collapsing a small economy hollywood that 2 percent of the european gdp. all system is in shock. when you attack iraq going forward, what that would mean if you were really to do it, the hamiltonian project, that will mean that taxpayers in belgium, the netherlands netherlands and germany, we accept the front foliate spots fully responsible for the pensions of multiple countries and will pay if need be. responsible for all their obligations, and not tighten matt government debt of this social welfare system of kentucky and texas. is there any sign that your taxpayers sikkim yes, we agree to pay the pensions and health care. if they won t, then your fiscal system won t exist and therefore it bought the affair. they re paying now for it. that is what is happening. your fiscal transfers are 2% of european gdp. we move around a starkly by 20%. and it is vast. kentucky would not have security and medicare and medicaid on its own. is pay for their will of connecticut and california. well, if i can come back the low bit to the pure financial problems. there we re paying. the taxpayers of belgium and the netherlands and germany are paying. because of this rescue fund we then give sustained will lower interest rates to these countries. but i am saying is that there may be more intelligent ways to do it. by neutralization of debt. then you pay less interest. now we doing is that we are asking money from taxpayers and they pay this high interest rate, mainly outside the european union. i think that is a more logical way to solve the problem. mutualized, and that you pay less interest than italian bonds, spanish bonds because there mutualize. so they receive less interest and costs less taxpayers money. and said, if you develop with federal budget of a certain size you have problematic transfers of people against it in any way. they knew very well the question was very simple. do you agree, yes or no. i can tell you, very bad. because they don t work. there s always something. tension. never paid for that. most of them are not true or not completely true, but that was the image. no, no. we go for it. a certain part. we shall do it because we gain from all of this. so you cannot explain it to two people. you can i explain that it is not in their interest that the euro appears and their is a massive spike because their market is your market. the dutch are exporting to what degree to italy, spain. you have to see the citizens of germany, for example. you re talking about an enormous game of the euro for guarantee. it is true, germany has to balance trade with crease before the introduction of the euro. now we have an enormous surface in the trade balance. they knew it. then destroy the system. the disarray also the engine of our rise. so, yes. there s nothing free in the world. if you want to gain you have to build a more on air transfers. i will not turn to the offense for questions. the last one that we have, 25 minutes before the next apartment. hi. i am a correspondent for an austrian newspaper. don t we, in fact, already have that source of treasury in europe? and ecb president to says he will do whatever it takes to keep things going. whether we simply double command some point after the german election we might get parsed to agree and could even face an italian problematic situation because currently it is so small. i don t really feel where it comes from. let me first still say that the italian debt is 2 trillion. you have not enough for that. secondly, esm is a difficult system. criticized the rescue front, when you take taxpayer money and give them to a country to pay and high interest rate you pay the interest rate of 5% or 6% or 7% because of the crisis. in use of the system, collective redemption fund or u.s. bonds were sent to system, the hamilton way, you don t pay five, six, or 7%. you pay two and a half, 3%. maybe a little bit more. depending upon where you say with the pair with the germans. it is a far more i should say cost-effective system to deal with your problems. a collective redemption from where we talk about the debts above 60% which is the reason why think so far this system is simply a rescue fund. the gsm, we shall see heliports because every time when they re is a country that is opposed to something they come back. the governmental. so they need the unanimity. secondly, we cannot continue. absolutely necessary. the measures had been proposed on the sixth of september. but my theory is that it has the only taken pressure read from the market but also taken pressure way from the politicians to do what is necessary because he shelled by and whenever quantity. this is with the 0mb mainly is doing. if it is used, it is ineffective as a system and is not sustainable long term. the only sustainable system and the long term as the neutralization of common bond profit that lowers interest rates. take questions in bulk. said there is one in the back corner. the ambassador. and then i will direct you to it. tooele takeover year after that. c t r. two questions. one economic and more foreign policy related. would you agree that american observers that sort of say i told you so, say the urban counterparts to these days, easily reminded by you of the decade the benefits of first the customs union and the free trade union, the central market, and the single market and abroad and by benefits for years and years. then i would like to ask you another question. lately you have seen european countries, including a round and in britain in someone successfully or even very successfully to observers here, certainly my former colleagues at the state department s . after the libya operation you these options as being positive options on the table. presumably you are in favor of combining forces. could you say something about that for us? thank you. so honored to be represented. i would like to come back to a question, the day that is related to democracy. we have cresses in europe. it seems to mid-strange ideas and economic ideas but also the unraveling of the checks and balances of some countries, and i want you to address this. i do not think that you can do with the economic crisis and then move on and deal with the deficit of democracy second because we might have a major, major issue. it is no secret, my own country, hungry, is backsliding with the checks and balances and some people look to vladimir pier and excited about the alternative. that is a pretty scary thing. when you to answer that. on the first question i am very much in favor on details of a more integrated europe. only on the monetary issues, but also on foreign policy. what has been called afterwards the cynical. where real announced a couple of government policies on the sense , a common european headquarters, for example, to lounge our operations when we have military operations still outside the european union, it is in my opinion one of the prairies in the coming year. also, for reasons of public finance in his what europeans, 27 states. forty and 45 percent of the american military, that s a lot of money. you can say 40-45 percent of the american expenditure, but that is a lot of money. not only we can do tim percent of the operations of the american army. if i do my mathematics could the emmy s where 45 percent less protected than the american as normal because you 27 times the same thing. the transport, intelligence. you name it. twenty-seven times the name 27 times the time. so defense is definitely the key . it can help to reduce the system and at the same time to create. how to have a common foreign policy. you need diplomacy and commonality. they are obliged. the number of european councils. i raised the question. in barcelona, a spanish presidency. and i ask, should we not discuss a possible invasion of the u.s. and what of position. that was the question. i think it is interesting because we do not agree. we don t agree. it is not necessary. one minute. that is the foreign policy of the u.n. issue. still a huge issue of the invasion. if you want to change says you need the ensign s because if he had the proper instrument then you are obliged to do so. it very much in favor to go in depth in that direction. maybe you can show prayer we do nothing at all. we are not capable to develop a policy. and then deficit and democracy. it s true. we have a whole system of volumes, even a procedure how we have to tackle problems with a lack of democracy inside the union, inside the political treaty. to high of eight trust sold before the union in fact got full system melodies come a full system majority before you can denounce. we have to develop as fast as possible and that we need to have the kurds tackle them. if their is a problem we have an intergovernmental system and you know how it is working. i explained it. if you have these going to get a you know how it s working. a deal on the budget. helpful state and government. you need a system based on the government and an elected parliament, as senate who is the scenting the state, and a half to have the full power to not only govern but all sorts of sanction. not fulfilling their obligations. and enough to have the states and governments. thank you very much. petersen with the national economic. i very much weight on your strong democracy before federal europe. my question is how would you concretely try today to convene a relevant group of people who would restore that pace? thank you very much. the primary vote the prime minister s native city. is a pleasure to see you here. it is great to have you in washington. i want to follow up on the question of legitimacy. if you look at the u.k. now, they chose this policy. it seems to me one of your pals in natives past and again, does not matter what the italians you in the election. it will have to continue with the reforms. i wonder when it comes let jesse, is inosilicates somehow their remains may sleep mainly that people see that our government chose. that is mainly a problem. a loose coordination of economic policy. the other policy is the have a big budget. 24 percent. these are the basis for your currency. you do not have them. 39 percent is going tennessee cultural policy. if you agree to the amount beyond the policy it is 067. that is the reason we need full discipline, and we need to carry the same direction. if you can pass a big budget he don t need to have the stability pact through in the same way as we have now. a loose coordination of economic policy is not work. we shall become the most competitive force by which the world objective the bins market. forget it. as out working and all. and then the next day you go forever. convergence policy is in my opinion used up. the two years inside. there is now a two ways not to narrow, of real multiplier. at the same time. social. the right side is to guarantee your competitiveness. a multi way of defining minimum and maximum volumes. every economy inside europe has to follow the path. it begins use right or wrong. the left side, the right hon right side. coming from the other side, i should say, that that happens now. the convergence of the european economy. and it s necessary. you use for that. he need to do that. the responsibility of the democratic level which is still in the nation state for the implementation. and what is the democratic response ability, that is only in appearance. the european parliament. i was elected. 600,000 votes in the last election. and now since conscription. [inaudible] my constituency. and i the problem is we have to decide what this is. iranians are just a number. a lot of humanity it does not think so, but a lot is not finished. so that said we need to change the system so that there is meaningful equality. .. and if a politician can create this opinion, it is very important in this environment for today. people a number of people say this is what we need to do. otherwise it is not possible. many people say, let s hope that the crisis needs to be mulled over. we have to retrieve this and protect ourselves in a globalized war. and i think there was a case to make in 2000 working with success to say exactly the opposite. there must be national sovereignty in europe. [inaudible] we have to be engaged to this world changing, it changes completely every day. we have to compete, china included. twenty different languages, for different religions, and then we still are thinking in terms of this, and i think we can understand not. thank you. i had a question on britain s ties. referring to what extent are you talking about the wittiness of the state to allow us to renegotiate the current negotiations. and how costly might this be? it is an individual legislation. if you do that, you have 27 different memberships and that doesn t work. sixteen and 17, 25 and the 27th. we have is really important. i was speaking this morning about the special regimes and what is going on. the administration understands that that is a problem. we need to have a conversation about the treaty. 100,015. that will be after the next european election. we hope that this conversation can do is create a love for the union ended is the case in the 1700s. we lost the island at that time. we said yes to this great the same thing has to happen in europe to make things clear and to stop this system that cannot work. we think you so much for your kindness and candor. we have a civil war starting and we thank you. ahead of the congressional budget office talked about the federal deficit on monday and the choices facing the united states. you can watch all of the event at c-span.org. it is very difficult to see how we can ultimately put to death on a sustainable path without cutting services and raising taxes. a wide section of americans consider themselves to be middle class. it can be very difficult to see how it is achieved without making changes in those benefits on those services. in 2012 government spending was about 2% of gdp higher than it was on average over the last few years. everything else that has been put together, it has been average over the past 40 years. everything together, social security, medicare and medicaid. of course medicare provides benefits to older americans and medicaid focuses on low-income people and about two thirds of the money was for the care of older were blind or disabled americans. many of them are not always poor. they become poorer in old age or due to high medical expenses. given where the growth has been and how those programs are dominating the budget today, it s hard to see the unsustainable path without tapping those programs. the cbo director spoke on monday. you can view all of his remarks on c-span.org. coming up on the next washington journal , tim murphy of pennsylvania talks about legislative efforts to bridge gaps in federal mental health programs. then jim himes of connecticut on the economic impact of sequestration and negotiations between democrats in the publicans on the budget. later, robert levinson for bloomberg government examines defense contract spending by congressional districts. washington journal takes your calls and e-mails and tweets at 7:00 a.m. on c-span. you re watching c-span2 at politics and public affairs weekdays featuring live coverage of the u.s. senate. on weeknights watch public events and on the weekend booktv. you can get our schedules on her website and you can join in the conversation on social media sites. a panel of energy department officials testify about nuclear security. this house panel examines the situation in washington dc. this is 90 minutes. welcome to the security administration panel. i would like to recognize our ranking member, mr. cooper, my friend and colleague for many years. i look forward to working closely with him over the next two years to carry out this important work. mr. wilson of south carolina, mr. bernstein of oklahoma and mr. johnson of georgia, mr. carson and indiana and i look forward to working with all of you. the subcommittee has a responsibility for many big critical and important issues and we are going to get into them right now. at this point, the facts have not been well established, and many say the intrusion was completely unacceptable. corrective actions were taken by the nsa and doe. it is focused on the broader implications of the incident including organizational leadership that enabled it to occur i am deeply concerned that we have been identifying the same problems for more than a decade. the advisory board said it has a security at its worst. highlighting a string of recurring security problems in 1990, it was described as a diff dysfunctional bureaucracy that is incapable of reforming itself. a few years after congress created this, in an effort to address these concerns, another study by the commission on science and security from the same problem. an independent study of security conducted by the admiral made very similar findings many continued to exist because the lack of excessive bureaucracy and organizational stovepipes. lack of collaboration is cumbersome. the exact same fundamental problems are occurring. there is also a problem of accountability is the exact opposite of the problem in 2007 and 2008. the demonstration of accountability with seniormost leadership is my example of a system of the firm accountability and it should be everyone s pretty first panel of witnesses would help us explore what changes are needed to explore something that should not happen again. they are the author of broader security issues at dod. the witnesses are the former air force assistant chief of staff and brigadier general of national security general of national security. it is a labor and we do appreciate it. i have a longer version that i will make off the record. with that, i would like to return my friend and colleague from tennessee. mr. jim cooper for any. i would just like to ask that my statement be. it will be submitted for the record we will begin the five-minute round of questions and have a panel after that. i will start with general alston. dod security review has been called a considerable body of work that has been done over the past decade. in particular, you mentioned it would be done by the admiral in 2005. you heard hurt me in my opening statement mention a few others. there are many more. howdy are fanning findings and recommendations include the findings of the most recent reports? your microphone needs to be turned on, please. okay. mr. chairman, thank you for the question. i would say that the most disturbing thing that mr. augustine and i have found was the recurring evidence of problems and when you take a close look at the work that he did, i counted about a 111 recommendations that the department of energy showed us. they were in the matrix. without doing an exhaustive detailed cross check of what the admiral found, i would take issue with a variety of those in terms of the help of those particular findings. since 2005, there has been, and there is a lot of time over the course of eight years, i cannot say that i had any evidence reaching back to this. so i do not know how fresh the management of the findings wise. but just a few of them that point towards culture and things that we found to be a legacy of challenges, struggling to succeed in an atmosphere of conflicting viewpoints, had courses versus the field, site office versus contractor and union versus management and non-nsa elements and the department of energy. there has been recurring challenges as field offices would need to upgrade security. we had a lack of discipline as well in terms of having a broad and strategic vision for what the overall security requirements and standards should be and a sensitivity to elevate the unique features as opposed to having standardized common security requirements being the principal focus in having to defend wanting to be different. but discipline and strong central management of that, folks could develop and deploy systems that might not be as fully vetted and ready as they need to be. why do you think this culture was allowed to continue? it did happen over years. were there any consequences? with a lapsed back into this culture? was there never any consequence? we find it difficult to track authority of the chain of command to find unambiguous certainty that somebody was in charge of one element of security or another. because that seemed ambiguous and because there was a prevailing notion that it was a hands-off surveillance mantra, that the sites had over time enjoyed being distanced from the headquarters. sort of being alone and unafraid and we didn t like interference in headquarters. but when it came to security, i think there are benefits to having good central management. it may not be true to science, but i do believe it s true for security. do you believe that if there had been somebody at the top of the command chain that was responsible for the findings in any of the earlier studies in a significant way ,-com,-com ma that it would help to eliminate that culture of continuous? sir, that would be one action that could be taken. but that that action alone, i do not think it would necessarily have resulted in the changes that have occurred. a very epic failure and i was there for the next three years working that particular problem. life was different. the entire air force had to rally around and not a security problem but an enterprise failure. because we look at this and largest context, i believe that after spending nine months working the problem to no one s satisfaction, but it certainly was an accountability by secretary gates which has focused on before and this is absolutely true. thank you very much. the chair now recognizes the ranking member. thank you, mr. chairman. there are lots of issues here, too much red tape and bureaucracy, but i think that one thing is clear and that is what do we have for taxpayer dollars. we are spending like a billion dollars a year just in protection of facilities. it is about 4000 workers and professionals. that would be $175,000 compensation for each guard. that is a lot. a lot of folks back home would ask that we have paid all these people, but did we get any security in return. the focus of today s hearing is what we have discovered wasn t even proved, much less terrorist proof. senators call for this facility, we just spend $150 million per year protecting the one area, yet we could not catch to 70-year-olds and an 80-year-old they breached the perimeter. and as the chairman has correctly pointed out. it is hard to see find that anyone was punished except the lowest level card and it seems like this is a fairway to treat a security lapse of this type. time is of the essence and i would just like to encourage you to help us understand this. but the bottom line is taxpayers need to get results for their dollars. right now in the doe, it does not seem that we are getting those results. i know that time is short, you are welcome to comment. sir, i think that you have talked about several of the high points. security from our perspective has been a challenge for at least the last decade. this is a continuing problem. if i could respond subsequently to the chairman, we have found that there has been a lack of sustained effort to cure a problem. it has been a short-term fix and the effort evaporates over time. secondly, if i can, security cannot be a sideline, it has to be integrated into the very essence of the department facilities in the has to be an integrated approach from the get go to the end, rather than a separate function. so i believe that those are two highlights. the issue you have highlighted about cost, that is a great deal. no telling how many hundreds of millions of dollars for why 12 didn t work. excellent readings, this is astonishing. especially in such a secured insulation. thank you, chairman, i yield back the balance of my time to we now recognize mr. frank s. thank you, mr. chairman. thank you for being here. you know, i do not want to mischaracterize my friends comments about the 80-year-old non. i understand that she was quite spry for eight years old. [laughter] and that she was going through the town. when you make the comparison about causing $175,000 per yearyear, i m afraid the connections and the parallels are a little frightening for someone like myself. we are wondering if we re not all may be a little overpaid. it s easy for us, as i just did, to make jokes about this kind of thing and step back from the holier than thou position. it s easy from this perspective to say how could this ever happened. in a sense, that is our job. to try to exert some oversight. hopefully we will change a culture that has made a particular error here in a better direction. and i know that if we really are honest with ourselves and we look at this from a larger perspective, history has been pretty unkind to those that have tried to maintain security. if we had done that well decades ago when we first janus technology, it never would ve been a cold war. this is a story showing that we had to drop one of our atomic bombs off the coast, and i think it is still there. these are not as unprecedented as they seem. but because they are so serious, it appears that we have to back up and ask ourselves that why is it the hallmark for us to let these kinds of things be so easily secured when the implications are so profound. i would like to ask a question for these members. trying to help our civilians and our military apparatus. when it comes to new technology and weapons that have these implications is it a systemic issue, what would you say? sir, i can tell you that it doesn t implicate security, but it looks at it as a whole commission that it is a very profound silence. security is now perceived as, you know, we have to go through the hurt right now and security is perceived as sapping strength and competing with science and other priorities within the department. i think we still have a long way to go in a pervasive culture where every last person is working with the department of energy and see security and safety as a mission and not separate things that we need to tend to. but rather have a common view that is essential to everyday success. i would echo what he just said, and i think that is the primary thing that we have to do, work on the culture. rather than repeat that, i think it is an issue that must be addressed and i think the next thing that we have to think about is the authority. we have to be very clear on who is responsible for what. once we do those two things throughout the chain of command, then we can hold people accountable. but one of the things that has been struggled with is the defining of the roles and responsibilities and giving the appropriate authority to execute those responsibilities. and that has been a long-standing issue that we really need to straighten out to create that accountability and ownership of that. sir, maybe this is too far down in the weeds, but if there was, in addition to what has already been said, it goes on what the general just referred to, we need to be sure that employees of all levels are empowered to raise serious issues and that there is a process in place to ensure that the issues are, in fact, addressed. that implies in terms of safety and security, and certainly was a root cause problem that we found with regard to issues and security generally throughout the department of energy. thank you. thank you, mr. chairman. i recognize the gentleman for five minutes. i would like to ask the witnesses to take a minute and a half and talk about where we are today. what has been done along the lines, if you know to carry out the recommendations that have been made? we will start with the general. before i left i can tell you that there was structural changes occurring within the security organizations. so they were in the process of implementing the recommendations to stand up and it would help ensure standardization across the field. we are working on criteria and so personal changes that had occurred in order to bring in what i call we need to seek out the individuals and that was ongoing. basically all the recommendations i had were being enacted at the time. with regards to the recommendations we have also issued reports we intend to go back and look at the process and determine whether it has been referred to as this. one is a point in the future? is a high priority for us. because obviously, security is essential in a nuclear weapons environment. the recommendations that we were exposed to, they were not even part of what the secretary had given us. let me go back. one of the oversight and review organizations is you. it would seem that holding people accountable is what you guys do. i am concerned about your response at some point in the future, i would like a more precise answer. with that, mr. chairman, i yield back. okay, mr. nugent has represented for five minutes. mr. friedman, just a follow-up on this in the questions, you do the inspection , you prepare a report, you send it to the powers to be and they are the ones that have to make things accountable, am i correct? you hold them accountable or do they hold your rank-and-file accountable? ultimately it is the secretary s responsibility to hold the board responsible. a couple of group commanders were helpful. following the installation of the new secretary and chief of staff, another was a further detailed review and i m not privy to exactly what the actions were. from a distance, i understand that general schwartz evaluates how to do accountability in these circumstances taking into stock not just the unauthorized movement of nuclear weapons, but also involving components that personally dealt with the general officers in ways that i m not personally privy to. you know, and experience, somebody has to be accountable. typically when you discipline the lower ranks, there are other folks. all three of you have mentioned that it s a culture of failed leadership within the nsa and doe that relate to security. if you were in charge, how do you fix that specifically from the perspective of the ig? where does the ball finally and? well, as i alluded to, congressman, security cannot be treated as a stepchild, a sideshow. it has to be integrated from the outset. that is one of the key issues that we have found. you can call that a cultural issue, perhaps that is correct. i think i would refer to it as a top issue. it must go down from the highest levels of the department and permeate and people have to be held accountable. i know that could sound like a textbook kind of lesson, but that is what needs to be done and there needs to be a commitment to begin that process. and sustainability is really the issue. we are on the path now, we have information and changes have been made. changes have been made and the question is will be sustainable going forward. it really is buying from leadership. you can change systems and policies, but if there is no one there to actually make sure that the rank-and-file are following the policies and procedures, nothing gets done. from a positive standpoint. when you talk about it,, at the end of the day, how does doe hold the upper level administrators accountable for the security that is in this administration. how do you suggest that happen? well, i think that the administrator reports for the secretary must set the tone and make sure that the subordinates certainly understand the emphasis and he can come back and receive conservation that security has been treated as a priority. i would like to thank the officer for their testimony. the direction of what the issues are and more importantly, identifying the people that actually have to make it happen, obviously. thank you very much. thank you. you know, it is astounding to me that we are not talking about equipment, we are talking about nuclear materials and i keep hearing this about it being the culture and we need to have more responsibility. when the secretary of the air force got everyone s attention, we have to go to those levels of responsibilities and make sure that everyone understands. it has to be a part of the system. that is just me. mr. wilson, you are recognized for five minutes. i thank you all for being here today. i am an alumnus of the department of energy, so i appreciate your important position. for both of you, you have a hands-on approach to oversight. can you explain why this contributed to the security failure, and where did this approach come from and what has been done to fix this beginning with the general? well, this is your eyes on, hands off, interpreted in a security community, federal personnel were not willing to interact with the contractor and executing security duties. in many cases, they were not even allowed to interact with the contractor as they accomplished those duties. what it evolved to is a federal hands-off policy. that said i cannot tell the contractor what to do. i can give general direction but the federal personnel then failed to give additional directives that said anything about how. i m going to come up with i confused the contract to execute those duties. what it does is let the contractors decide what will be evaluated. i appreciate you raising that concern. [inaudible] i have had opportunities to visit so many times and it see the extraordinary personal seen as positive. it is startling to me that something like this could occur. i associate myself with the general s remarks. she characterized it perfectly. if i could take a minute and describe specifics in our original findings, there were very expensive equipment that was inoperable for up to six months. just the backlog of repairs have never been addressed. they did not feel that they were empowered because of eyes on and hands-off. they didn t feel that they they were empowered to force the contractor to reprioritize maintenance work that was being done to make sure detection equipment could be part of this. it was a part of the primitive defense mechanism and that is an example of empowering these individuals to ensure that if they have a problem like that, they can bring it up to the contractor and ensure that the issue is addressed. and number two, if it s not addressed, they can go to the administrator s attribute actions are taken. it is vital, there is no excuse, as far as i am concerned. and not treated as a critical priority to get it back online i appreciate your efforts to do this. i want to thank all of you for serving and helping our country. we can all jump in on this question. the general, i want to ask you a two-part question. when there was the unauthorized transfer of nuclear weapons, the air force really drill down and saw this as a broad issue that had to be addressed. even going so far as to reemphasize the importance of the nuclear mission in the air force all the way back to the air force. the conventional operations of warfare were elevated in their priority in terms of the way the air force resources are and the tempo and the deployments and the pricey place that was a deemphasis in the media nuclear part of our capabilities. we have lost the focus because of other competing priorities. when we look at the conventional education and our ncos and officers, we assess that there are nonexistent elements of nuclear in those programs so that a broad sense was painted across all of this as opposed to just those who have nuclear mission responsibilities today. we do not want to cashier or turn into just the nuclear operators. everyone needs to understand the larger context that we are dealing with. the whole service was energized in this epic failure and we considered it a mission failure at historic levels for us. we looked at it that way. we didn t necessarily find a pervasive evaluation, this was mission failure that could be a wake-up call across the enterprise. we did not witness this to say, truly, how can we ventilate the deficiencies of their? i believe that that work took place. i just think that the self-critical capacity can be improved in the department of energy to make that assessment broad and legit. there were structural flaws in the organization and the assessment model. which is why i recommended a new assessment model to reach out beyond y12 to all of the other organizations. because it does affect all age. again, i agree with my colleague at the table. i would say that one of the more important recommendations, which actually sounds may be unimportant, is the lessons learned from y12 was a tremendous wake-up call because as mr. cooper described, the three intruders, they could have been three people who were armed in a different way. we are in a mode of preventing this sort of thing from happening again. we have learned some real lessons the thing that i want to assure is that this committee is not going to let this go. the doe is going to fix this problem going forward in a meaningful way. until they do that, we are going to make them wish that they had. this is not going away. the ranking member, does he have a more comments? i want to thank our witnesses for their time and energy and attention. we appreciate you and we will go into recess now for our votes and bring our second panel backup after the vote. thank you. [inaudible conversations] naud i called us back to order.cov i apologize for the delay and i thank our panelists for hangingl around. i do want to thank you for your time and energy in the i know it takes a lot of time and effort. thank you for that. what i like to do, full statements have been submitted for the record. i would like to ask each one of you to take aboutfo a minute to talk about the content of your opening statement. minut we havee the secretary and te principal deputy administrator for nsa.y. thank you, mr. chairman. ranking member cooper, members of the subcommittee, we are grateful for the invitation to appear before you today to provide actions the department has taken will take for the nuclear weapons in the wake of the y12 incident. we recognize the important oversight. the secretary and i recognize what led to this point and we have acted to identify and address the issue. since the incident, several major actions have taken place to improve security immediately into the long-term.e the protective force contractor wasm. terminated and the new contractor has been selected to provide an opportunity for a new leadership and provide securityo culture. contractor management and removing them from their position, the department, chief of health and safety andity security inspection of this operation, as well as directed by the secretary and conducting a follow-up review in april. the secretary also directed hhse to conduct extent of all no category one across the board to se cridentify security issues and follow-up with full securityvie. inspections to assure effective security measures are being implemented at those sites.to and we want to identify causes i followed by a report.d at the a former deputy administrator viewing the federalkn have organizational structure of the model and you have heard about a recommendations, which we are implementing, so we can talk further about that. finally we had an independent you have group, all of them have distinguished long careers and each one provided thoughtful advice on the security structure, specifically all category one facilities and we are now discussing their advice on how to improve security atit. e enterprise.ntir in conclusion, a series ofally changes that i have described today have been made to providec effective security and acrosss the complex. we are working on the changes a this and all of ouran facilitie. our management principles holdey this as vital and urgent and nowhere is that more true than here. the security is in support offai the nation.ission is it is unacceptable and serves aa an important wake-up call for an entire complex. the department is taking aggressive action to ensure thea reliability of our nuclear security programs and will continue to do so and in thatcin effort, thet department and the active administrator will talkgh about the committee. thank you, sir. c the department of energy you have talked about it. you talk about this being sta unacceptable. what is different in this line up the chain of command? at the time of the implementation, mr. chairman, there were two separate ones at the site.eparat once the contractor notifies the department of anything, good or bad, the change will be modified. the way that it is structured, i will go right to the point that you have. one of the things that was foun, in the report is that there wash a lack of clarity. but the organization for nuclear security was exercising someay line management at the site. we must go down from the administrator through the infrastructuree operations offr [inaudible] [inaudible] the role is to developmu the pln n e evaluation was no longerstao done by the feds, which was created in the review too close to the situation between the people between the contractor and the fed. we really have clear to cut it and there was also confusion was nreated by having these twositue separate contracts at the site and we immediately folded theact security under this. if we were to have another incident, who would be the ultimate person responsible for security? it goes straight from that person to the senior contractor. that was not the case when it occurred? there was confusion because there was directives that wereti coming out of this that could vo been confusing in terms of accountability in thethe s herepective of the people at the site.that were the contractor being terminated, which it was about to expire anyway, you mentioned they were not fired. whic why were they not fired? the person we hadxp to do ise hold people accountable. we did that at the headquarters and the top three officials were responsible for nuclear security and removed from those positions. the top two relevant officials were removed.ee rponsib this is a nuclear facility. that is true, sir. there are disciplinary actions that have been underway and wedl have due process and various procedural safeguards that occu? and those are being pursued. but the important thing is to get those people out entirely and in addition, we have ensured that people at the contractose a level knew that they have lost had lost our confidence and the top two officials responsiblee were also removed. you heard me earlier talking about secretary gates. secretary of the air force, theo chief of staff ofp the air for and i thought that was a model. you disagree that should be the model and how we respond toabour serious security violations? chi i certainly agree, mr. chairman. accountability is absolutely thh crucial. i am not completely convinced of the details. i have the highest regard for secretary gates. but i think the principle he described in terms ofrious accountability is very much one we share.cruc i would hope so. i would hope the reflect those going forward because that is gae kind of action that sends a clear message that lapse inon security will not be tolerated. the other factor is this is in relation to those who should ve known what was happening. the folks at the top of the fooc chain. with that, turning to the0 ye ranking member. the folks at the t tank you, mr. chairman. chablcome the witnesses and i m sorry that we have to be here.as [inaudible] ne he was still able to receive 60e of his awards. mr. ranking member i think it is very fair question to pursue how we, i m g mr. rure this in terms of compensation. that is a fair point. the only amount that was available for security was zeroed out. so that was removed. the way that they got to thiso e was by taking all of that and then going beyond that. there are other things happening in terms of how things work. the way that this is structured, we did what we could to take away what needed to be and i was anh that was a series of subsequent choices and incidents.availabl .. that was something we followed up in subsequent incidents as well, seeking to go back because we agree the american people should not be paying for underperformance when it comes to security. how much do you expect to call back? the numbers that you cited there, there is an episode for the contract. i thought you said there were further efforts? there was a 10 million-dollar fee in the complex. immediately prior to the incident, your agency, in its wisdom, had given not an excellent rating for the safeguards and security work. he received the full 51 million-dollar incentive fees in fiscal year 2011, even though as has been testified to, it took months and months to do repairs. why did they get their entire incentive fee via this? this is exactly one of the deficiencies in the structure that receives the incident. the report makes clear a tendency to have their view, but have this evaluation on paper review. separating that roll out and putting it into the headquarters would hopefully corrected. we did not see things in advance as we should have. obviously, had we, we would have replaced the cameras as we should have. i m hoping, and i believe that the cultural changes that we are going to institute will prevent this kind of thing from happening in the future. with all due respect, it doesn t sound to me like you re taking responsibility. aren t you the deputy secretary, having been the deputy secretary for some time? yes, sir. from the moment i heard about this incident, i have been doing everything i can in every dimension to make sure that nothing like this ever happens again. i do feel deeply responsible. you have been doing everything you can. question to my colleague, it was cemented five months after the hearing testimony? you needlessly duplicated one question twice. it doesn t look like much effort was put into this. i know that this is just an exchange of paper. but i feel like you are taking responsibility? yes, i do. i take responsibility for everything that happens in the department. hazard pay been reduced? are you threatened in any way? what sanctions have you faced? mr. congressman, i am doing everything i can to address the problem. i will do that as long as i m in this position. i will be open to make sure that nothing like this can never happen again. meanwhile, your department is spending about a billion dollars a year hiring 4000 guard personnel and in some places it is a contract, other places it is a subcontract. it seems to be no rhyme or reason. if you divide the salary component of that, 700 million, that is $175,000. where s the money going, what results are we getting for this? my guess is that the guards are not being paid nearly that much. who is making the difference? congressman, i do not have that exact calculation. there are a number of physical assets in terms of facilities with thick walls and various permit or fences and security systems. all this of this requires an investment. to be clear, the money itself is not going to solve the problem if we don t have the clarity and the lines of responsibility and the authorities that go with it and a cultural shift that was required go with it. it is not a problem that will be solved. the dollars are very important. we need to get all assets, but that is only part of the problem. i am not suggesting spending more money, but i m asking about the value that the taxpayer about for this outlay. this is according to your own idea of money spent on employee compensation. we have large quantities of plutonium and uranium, that material is very well defended. it is of absolute paramount. how can you possibly say that? congressman, the episode that occurred, as we have repeatedly testified in a prior hearing, it is absolutely unacceptable. it is a wake-up call. so how can you say was well defended? it was not well defended. that is why we are having this hearing. congressman, what i m trying to say is that there are a number of additional layers of security. it is unacceptable that it penetrated the perimeter fence. that is unacceptable, it would take appropriate actions to look at these layers. including military style forces, various physical impediments, and i can assure you that there are many more layers that are defending that very sensitive material. so we really have nothing to worry about? there were many more layers of security left and it was fine? congressman, that is not what i am saying. secretary chu and i have been consistent. this was unacceptable. and it is shocking is a breach of the security that we thought was in place. that being said, your specific question went to the actual material itself. i am only saying that it is quite the opposite. to say that we do have additional measures of protection that are needed. it is unacceptable and we have to make sure that that part gets fixed as well. still does not sound like he s taking responsibility. i would like to be very clear. i accept responsibility for this. what punishment have you suffered for a? other than attending mishearing? i am working on this problem, sir, as hard as i can. thank you, mr. chairman. i thank the gentleman. the chair recognizes mr. turner of ohio for five minutes. thank you, mr. chairman. mr. secretary, i would like to thank you for your effort to try to address this. i happen to know that you are a very hands-on secretary. you and i have worked together and i was very impressed by the fact that you do rise to a very hands-on level. that is why i think this whole problem, it leaves most of us wondering where are we and i m going to ask a couple questions. the level of oversight where we have concerns is what i want to frame. a broad base of questions. [inaudible] [inaudible] [inaudible] congressman, it depends it doesn t depend. it ever encompasses the scope of possibilities. is there ever a situation? it could, yes. okay. in taking that broad statement, we have acknowledged that there is a situation where a failure could result in termination due to performance. i will ask you the next step of that. i am not just asking your opinion because you are in the chain of command here. so would one of those situations beware all of the safeguards are down? where someone could get all the way into one of our buildings and nobody does? let me be clear. we had a breach where people actually died all the land. all the way to the building. that is what i m saying. is there ever a situation where no one penetrated this breach, but the safeguards were down it would ve permitted a? that is what i would have considered. what i cannot do is answer a hypothetical. to it s not a hypothetical. it s very clear. you have a job that has no margin to protect these facilities. we only can talk about these situations through the application technology operated by people. and the people are subject to their performance as to whether or not it works. so if someone is not performing, even if there is not a breach, if the system is down and someone could get all the way into the building. is that enough for them to be terminated due to performance? this committee things that we have an agency that has the responsibility for protecting this facility and we have a system where those in charge think that you don t even have to do your job to keep your job, then we don t have something that is working. if the system goes down or someone could go in and touched the touch the side of a building and no one does, due to the performance, is that the type of performance that results in termination? i can tell you that has resulted in removal from positions. the answer is yes? removal from positions what we did. that gets into a level. you are testifying before the committee today that if the entire security system of our nuclear infrastructure facilities went down and the perimeter of the building that allowed someone to go in and it was a result of their performance. i did not say that, sir. please tell me opposite. it has to be true the result of someone losing their job. if not, we need to pass a law and stop oversight. because if you don t have performance to be able to protect the facility, then we don t really have protection. we do not have security. is it a terminal offense? you and i are both lawyers and you re asking me technical legal questions and i want to make sure that i understand. if you don t have clarity, the committee meets with something in the next piece of legislation that makes it clear that due to the performance of individuals, that the security system would be an offense resulting in termination. that is certainly what the american public. congressman, as i told the chairman and as i told you, we are always ready to work with you and this committee to make sure that we have the right kind of laws in place. i am not trying to be evasive. there may be a very simple answer, but i am not acting as a lawyer. i was asking you the scope of responsibility and authority questioned. [talking over each other] to that level, we want to know if this has to do with the determination. i yield back. mr. secretary, is the due process we are talking about the union contract? i m talking about the procedure process that and a federal employee is entitled to. they can have that in response to the termination, can t they? you terminate them and they get the process to appeal it. it just seems to me like you are claiming that they have a right to go through all of this before you can terminate them. what we can do and what we did do, mr. chairman, was removed these people from the responsibility for anything having to do with security, immediately pending what further disciplinary action was available. the action is subject to due process. i think the due process wouldn t let navy to you will get into a nuclear facility. we now recognize mr. wilson s. thank you, mr. chairman. i share this with the former and current chairman. it seems to me that with the breaches that occurred, there should have been termination shifting persons around. it really doesn t achieve the level of accountability for something that is important. i have the perception of having actually worked here and by working here i actually had a good feeling about the permit manner of security, the persons who are monitoring and indeed, those acting, and i felt secure and i know that the people who work there, lived there, raised their families there, they fill secure. but i am concerned about studies that there is a culture that has not stressed security. so how can we reassure people who live in these communities that do realize that they are a culture and have a lack of security and it needs to be addressed. that is a great question, congressman. you can reassure them by saying that the top three security officials at the headquarters were removed from their positions and the two top officials were removed and the contractor that actually has the professional force was terminated at the management and operations facility. they were also retired and taken out of the picture. everyone in the chain of command from individual responders and the senior officials responsible we have undertaken the organizational and structural changes, we have replaced all the cameras, the wire around the facility. all of the improvements, all of the things that we should have known about what found out about the unfortunate and terrible incident. mr. mueller? i would agree that the deputy secretary has said that first and foremost, culture is going to be affected by leadership and their attitudes toward security and safety and everything else that we do. we are working very hard and have been making serious changes to direct this and address it. especially with everything else we do. i am equally concerned. there used to be a lot of reliance on self-assessment that the overseers are depending upon us. is that being changed? that is being addressed. i think that does contribute to the problems. per the recommendations, we believe that it starts with the basements of the assessment, instead of having that ss in the field where there is a possibility of it being too close, that function includes the headquarters organization and that is going to be further subject to overview for the safety and security office. ms. miller? i would like to emphasize that we have the sites directly reporting to the administrator. in this way, we expect security as well as other things. but mainly security to be a clear line of accountability from the administration to the site manager as the implementers of the policy that the security policy organization that the deputy secretary was referring to, those policies in order that they are issued, which is their responsibility, it is also their responsibility to assess the performance of this in implementing those it is just as clear that the line of accountability for implementing it goes directly to the administrator. related to that, there was a recommendation that headquarters staff visits the sites and rotates between them. is that being done? headquarters staff is now both in the implementing side as well as the policy and assessment side. regularly scheduled, as well as the rotations, we have put this in and we are very conscious of the fact that people staying in one place for too long may lead to people becoming complacent. i think you both. i know that when the staff visits, it creates an extraordinary level of attention and i thank you. thank you, gentlemen. mr. frank is recognized for five minutes. thank you, mr. chairman. secretary, i would like to get a few questions in here if i could. i have had the opportunity to see hearings on this before. i have probably expressed a commensurate level of this and i don t seek to remind anyone of the materials that are kept in these facilities that are highly and technically challenged to create and weaponize, it is a much lesser difficulty and the implications are profound. i think everyone knows that. one question that i would quickly like to ask. seems like the contractors that have reported these lapses in the safety precautions were treated differently than those who ignore the warnings. is that your perspective? i am not sure. it seems to be on the ground contractors that were there, i am told there was that there was a significant reporting on their behalf prior to these incidents, saying that we had technical yes, sir. some of those deficiencies have been noted in earlier reports that it s true. yet they were, they were handled pretty roughly, it sounds like. i believe that they are. i would like to get to another thing. the previous panel emphasized the line of responsibility. i think that s something that is almost ubiquitous throughout the entire thing. it appears that this has not been addressed effectively because the doe continues to have an oversight office under hhs and it now has a split security between policy and oversight and programming execution. i m just wondering how to these ensure there is an accountability for making sure the security program is properly executed at the sites? okay. let me just say very quickly that both involved have had their leadership removed. so they both have the appropriate accountability price. and on the second one it is a very good question. we believe that part of the problem here, as the general pointed out was that there was this confusion. the clarity down to the infrastructure operations, that is the one i mentioned. they are responsible for execution. they had to take away the interference which was coming out of the na 70 nuclear security organization and that is all inside to have a further check. it is to have a check on the check outside it of this administration. is it your testimony that the line of responsibility, any ambiguities have been dealt with? we are in the process of implementing the recommendations and i would like to come back to this committee when i can tell you more. that seems a little similar to this whole discussion. we agreed. shifting gears quickly, i will ask you because we are running out of time, when you think about these breaches of securities in the future, i am just wondering one specific question. there is a significant increase across the world with intentional electromagnetic interference, these device capabilities, which seems to me to really put the facilities at risk. and even further, the potential of the major event, either geomagnetic or otherwise. can you tell me, are we protecting the critical defense apparatus against these three things? congressmen, i am well aware of your thought on this challenge. what i am here to tell you is that we are addressing the threats which don t, as you know, the fact everyone, but far beyond that. we would love to work more closely with you on the subject, the executive orders, and the presidential directive that was just part of this problem. it is something that is a problem that will take a lot of work to get to a safe place. okay, thank you, mr. chairman. sir, i would like to clarify. he stated that you are in the process of implementing this study and findings. that is not at doe. woody doing at doe to deal with the problems? it actually goes well beyond and will require various parts of this which has technical capacity to deal with this issue. i m talking about the earlier issue dealing with the chain of command, a report by the contractor. mr. chairman, those issues are among those that have been addressed by what we call the three wise men. we are having internal discussions precisely on this question of how to make sure that the larger organization works effectively in ensuring the same kind of oversight. as you know, mr. chairman, there is some material that is outside of the situation and we have to make sure it is protected. there was some confusion between all the directives that were departmental wide, and the recommendation of general simmonds. we need to be clear of those that are binding and anything beyond that would require a way to augment or strengthen and should not be meant to confuse or distract the overall directive of the whole department. you have five minutes. thank you, mr. chairman. i appreciate the testimony to both of you have given. i was reading your testimony as well. although you have explained verbally the organizational structure, it is not clear to me exactly how that organizational structure is actually in place. therefore, i would appreciate it if you could delegate to our committee staff a detailed organizational chart along with the accompanied job descriptions. i am happy to do it, sir. i believe that would be helpful for me to understand the words that you have said and how it works out. how works from the previous questions asked. it is within the department and the organizational structure there. if you would do that. we would be happy to provide it. i would like to understand more completely your testimony. and i think you. i yield back, mr. chairman. i thank the gentleman. why do you think it is? you heard an earlier panel. why do you think it is that these long-standing, well documented deficiencies of this particular facility, they were allowed to go on for so long. anything that is? the things that we have found since the episode, mr. chairman, even though some of these things were noticed, the internal reporting chain was broken. that was the phrase used in some reviews. you can rest assured that if we had known was actually you were not aware of any of those studies from 2002 until 2005? well, i was talking about the studies over 10 years and the most recent. after the episode, i became aware. i m aware that you are aware of it. this is one of the ones that you are referring to. i helped former senator baker look at the episode at los alamos and i was aware that the thing that we found there was the same kind of security mission and it was a source of

Los-alamos , California , United-states , Brazil , China , Portugal , Austria , Russia , Washington , District-of-columbia , Connecticut , Mexico

Transcripts For CNBC Mad Money 20130307



so, who won the street fight? according to the twitter verse grasso won! and that s today s show! let s go to cramer. grasso lost. congratulations to guy adami. time for the final trade. let s go around the horn. mike khouw? i m going to vote with the loser. i think the cat calls look cheap so i m going to make a bullish play that way. see, mike likes your trade. thanks, mike. calling you a loser, though. go on. beekers? thanks? you know, i think these stress tests certainly have been anticipated with the runup on the financials. tomorrow might be a good day to sell some xlf. grasso? i m going to go cat, long. hold onto that stock. use it $87.60 if you want to be really conservative, $87. tight stop. karen? verifone. we are flat. out of the name. guy? jack in the box. monster. all right, i m melissa lee. thank you for watching. meantime, don t go anywhere. mad money with jim cramer starts right now. i m jim cramer and welcome to my world. you need to get in the game. firms are going to go out of business and they re nuts, they re nuts! they know nothing. mad money, you can t afford to miss it. i m cramer. welcome to mad money. my job is not just to entertain you but i m trying to teach and coach you. so call me at 1-800-743-cnbc. we call them the generals. they are the stocks that lead us into battle every day, they give us the conviction where the dows are trendless, to stand our ground or to charge the enemy without any fear at all. oh, these generals don t live in some chateau far from the front, ala cramer pads of glory, they go over the top, braving the bears machine gun fire, the barbed wire, artillery selling, striking even from above. and who are these generals? how do we find them? pretty simple. we got a list of them every day. it s called the new high list for all to see. from the looks of the list, the make-up we are following an army led by the likes of johnson eisenhower, grant and marshall. so many people fear and fret and worry every day that they will be picked off the moment they lift their heads from the trenches or try to get off the beach. before i tell you why these generals matter so much, let me say the last time i hit all-time highs, the levels from five years ago i took out, we had some of the sorriest lead generals i ve ever seen. we went over the top of the fertilizer stocks, second rate technology names and a host of tack i don t ever plays that didn t actually get taken over. i would have stripped those companies down to the buck privates that they really were, court martial them even! this time, our leaders are the most rock solid of our companies and this time doing it right, not like 2000. they aren t trying to hit it out of the park with every stock they buy. they aren t speculating. they are following companies that are the essence of why i like this market because the leaders are from so many different sectors, a virtual mi-diversified, nonconcentrated perimeter of how a a market should go higher. who are these anointed leaders hitting higher every day? let s start with barren buffett s berkshire hathaway. it s been ages since buffett eaves companies have provided leadership at all. that s bothered me. this market shned the greatest investors of our time. why is this general so important? because of the make-up of the companies that buffett owns. berkshire is not a mosaic of businesses that do well in the environment of american resurgence. he s got tons of housing, lots of insurance, many pipelines. he s got retail, he s got household brand, think heinz. he s got a mammoth railroad. it s almost as if there was this stock called united states of american business. and its president isn t barack obama, it s warren buffett. you get this leader going, you can go in and pretty much buy everything from toll brothers to travelers to union pacific and johnson mills. seeing berkshire hathaway on the new high list is like embracing motherhood, apple tie and dilly ba bars. warren buffett does own dairy queen. and i follow him everywhere. next leader boeing. yes, boeing. can you believe it? can we count just for a moment. humor me. can we count the ways this shouldn t be anywhere near the new high list? you got the exploding batteries on the dreamliner, the labor strike that s unbelievable, a strong dollar giving airbus a big leg up, you got the sequester. and boeing s a huge defense department sup le can t. this shouldn t be on the new high list, they should be on the new low list. there it is like a stone wall. up $2 today. which division will follow boeing? how about travel and leash krer? if airlines need planes, there must be plenty of people using them, like travelers. and how about defense stocks? something tells me things can t be all that bad in defense land. then there s honeywell. i follow general dave cody into battle any day of the week and twice on sundays. often he s in assusummit, new jy on sundays and that s our town. he s in climate control for offices and homes. you build a lot of buildings, then up use a lot of honeywell thermostats and build planes and use their cockpit instrumentation, if you build gas refinerierefineries, you us chemicals. i m calling it a four star. normally we have to be skeptical on how many battlefields they ve covered. in this market it s a virtual joint staefs of staff. johnson & johnson and pfizer all hit new highs. they define what we used to call blue chips. the great recession grinded into dust so many of the stock that we thought were blue chips. these are brand name companies with the kinds of stocks you would swap your bonds for because they are, alas, more secure than bonds. ask yourself, don t you trust the full faith and credit of johnson & johnson more than the full faith and credit of the united states? given the endless discord in washington and entitlement overspending that no one will cut, which do you trust more? let s be clear. if these were the on stocks hitting their highs, i d say, okay. j & j, pfizer, they re signaling recession, their holdings hold up. and you wouldn t want to own jpmorgan if we were going into recession. here it was on the new high list once given today, breaking out to about 50 bucks. it wasn t that long ago i felt when we talked about jpmorgan we did it only in the condition text of that giant thing hanging from the ceiling of new york s museum of natural history or enemy of captain hey ai hab or captain kirk aor mr. spock trie to save? now i think of jpmorgan as an unstoppable force that still sells at over nine times earnings. jpmorgan is now our blue chip bank, the one the general public knows has the blue chip balance sheet. they ought to rename the place called fort knox. finally, we sure don t want a market with no technology in the new high list, right? guantanamo bay that it s the biggest segment of the s&p 500, lo and behold, we have an old buddy on that list, one i ve made my peace with and own for my claritiable trust these days and that s cisco. i d rather have this company than almost any other tech firm, including texas instruments, cisco is the back bone of. internet and teleco industry. when cisco hits a new high, it means businesses all over the world are redoing their infrastructure. it s a seen that information technology spending at the enterprise is now flowing big and nothing could be more bull, for all of tech, a much deserving admiral indeed. cisco, it s no longer crisco. the cisco kid is once given a friend of mine. lots of people are still skeptical of this market. you ever hear those people? me? this leadership tells me this market can withstand that 5% decline everyone is waiting for and bounce back with a vengeance. you don t need to sell. there will be battles lost and retreats to lick our wounds on the way to triumph in the war against the bears. the bottom line it s look grant, ridgeway, perjing, ike and we should follow them into the heat of battle knowing they represent the best of what america has to offer. i d like to go to elizabeth in florida. gary: i m calling about aeae aeroenvironment. they re hurting due to cutbacks and delays in defense building. but this company is expanding reach to include drones for fire prevention, law enforcement, news, weather. i always rely on fundamentals but this stock feels like a stealth opportunity. so, cramer, do i buy more, glide or push the ejection button? listen, sunshine, the ejection button is perfect. you might as well be sitting next to bond in gold finger. i don t want you anywhere near the stock. when they disappoint this bad, it s often the beginning, not the end. do not touch avav. nice bench of guys. let s go to jude in my homestand new jersey. jude! thank you for all the money you helped me make. how positive on the colgate split? we don t care about the splits. there are some investors you are care tremendously about a split. when i saw chavez die in venezuela and colgate has huge exposure in venezuela, i fear know devaluation and the stock went up again, maybe colgate is, alas, board proof. they are the war yeshs the generals that are leading this market and this time they re the most rock solid companies. this isn t some sort of buck privates leading us into battle. i think it will be time to follow them. i think this war is going to be won. mad money will be right back. coming up, stress reliever? banks are gearing up for another rond of stress tests. and the stocks that make the grade could make a serious deposit in your pocket. cramer has the stocks he thinks could ace the exam. and later, steel showdown. lobo growth is picking up. that means industrial investment could be on the rise but not all stocks are positioned to profit. find out which one cramer thinks is solid and which he s sending straight to the cell block. plus silver linings play book, after falling more than 15% from its high, could the gold standard still be a thing of the past? tonight cramer s looking for luster with the ceo of silver wheaton, all coming up on mad money. don t miss a second of mad money. have a question? tweet cramer. send jim an e-mail to madmoney@cnbc.com or give us a call at 1 hl 800-743-cnbc. revolutionizing an industry can be a tough act to follow, but at xerox we ve embraced a new role. working behind the scenes to provide companies with services. like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%. and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how s that for an encore? with xerox, you re ready for real business. a talking car. but i ll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it s carrying, while using less fuel. delivering whatever the world needs, when it needs it. after all, what s the point of talking if you don t have something important to say? i believe 2013 is the year of the regional bank, as the powerful housing recovery cause as massive resurgence in mortgage lend, making the regionals one of my top ten themes for the market in 2013. but the dow keeps relentlessly pushing new high, seem to rally day after day. how can you buy a stock and know its valuation isn t super stretched and overextended. you know i like the regional banks but maybe they ve run too much? for those of you who fear we moved up far too fast and i heard it all day today, how about a regional bank that has n more room to grow, no question. i m talking about suntrust, sti. the atlanta based southeastern regional bank we ve been biography for my charitable trust lately. before we make a move, you get a bull bulletin. we got the release the results from the comprehensive capital analysis and review. they use it to determine which banks will be allowed to return more capital to shareholders via larger buybacks and increased dividends. this will be the watershed event for this group. this is what i ve been waiting for, seemingly forever. last year suntrust was one of just four major banks to fail this very stringent stress test. that s right. that s right. that meant that unlike most other banks, the company has not been allowed to raise its dividend beyond the current meager 0.7%. that s the yield. i expect this year sun trust will pass the stress test and if that happens, we re likely to see the company do a buyback. you increase the eps number by raising the earnings or by this ringing the number of shares, or both, something sun trust could do dramatically if we find out that it passed the test next week. pass would allow sun trust to put through a major dividend hike. they d be allowed to raise their payout ratio, the percentage of the earnings they spend on dividends to as high as 20%, which this year as these levels would give the stock a 2% yield. and that would instantly make sun trust a more attractive investment than a vert of deposit or ten-year treasury. before you consider that dividends still retain their tax favored is it the us, it would put it on par with a lot of these other banks. it did have a scarlet letter because it didn t pass. getting a go ahead from the federal reserve this time around would be a symbolic gesture. i expect sun trust to pass. this is one of the main reasons we ve been buying it so aggressively for the trust. it s given you a delicious pullback of late. even as the stock rallied 38 cents or 1.3% today. sun trust is about 2 points off its high at these levels and since the beginning of the year it s been lagging regional bank stocks by 10% and trails the overall bank index by 7%. expectations have come down. kpw down graded february 19th on earnings worries. i think this negativity is creating a great biography opportunity in suntrust ahead of what s likely to be a kol assally positive strategy. i m telling you about it now because i want you to have time to do homework, take advantage of the weakness and use it to buy the stock carefully without a gun to your head. don t invest like. then there are of course the fundamentals. suntrust has major exposure to housing, especially in the southeastern part of the country. just counting the number of branches, it s the numb three in georgia and tennessee, fourth large nest virginia and washington, d.c. and a top-ten player in north carolina, south carolina and maryland. in other words, there is a major regional bank with serious scale, a dominant presence and a just gigantic deposit base. in the markets where they have the most share, housing prices have been rebounding and they ve been rebounding dramatically. according to the all important, all knowing k shiller house price index, house prices are up 10% in atlanta. remember suntrust is number one in georgia. up 7% in tampa, the housing price, 11% in miami, these are important florida cities where suntrust has a major presence and housing prices are up 6% in d.c. plus the employment situation is improving dramatically all over the states where suntrust operates. unemployment is done 3.3% in florida, down 1.9% in georgia. meanwhile suntrust has been growing ielts deposit base. balance sheet has been cleaned up to where they have a tangible common equity ratio. i give you the numbers. some guys understand the numbers, others are i m just trying to help you. this is a measure of how much pain a bank can take before it folds. over 8% is pretty darn respectable. management has rolled out new aggressive cost cutting programs that should allow the company to capture more gangs as the business comes back courtesy of the housing resurgence. it should bring down expenses for 2013. core expenses fell 3.8% from the previous quarters, compensation expenses were down 5.4% sequentially. after we get the stress test results on thursday of next week, i think investors are going to jump all over suntrust as the company redeems itself by passing with flying colors. announcing a huge buyback and boosting the difficult depevide dramatically. that s why i want you in this regional bank before that happens. it represents the best buying opportunities and one of my favorite sectors for 2013. after the break i ll try to make you even more money. coming up, steel showdown. lobo growth is picking up. that means industrial investment could be on the rise but not all stocks are positioned to profit. find out which one cramer thinks is solid and which he s sending straight to the cell block. right now we are in the middle of a north american energy renaissance. a huge transformational theme that i ve talked about many on mad money. tonight i want to approach this story from new angle i haven t talked about before. it s not just that we re finding vast quantities of oil and gas and building new pipelines. we re witnessing a resurgence in energy infrastructure spending. think new power plants that run on natural gas rather than coal, new upgraded refinery capacity, being produced in north america s backkkan shale. when you need to put up these huge infrastructure projects, you turn to a particular kind of company. you turn to the engineering and construction firms. they canned them encs which build refineries, win farms, refining projects. they provide the no how for everything needed to get these huge installations going and service them once they re up and running pipts not just the north american resurgence. energy companies are elevated all over the world which means companies are overflowing with orders to start all sorts of big projects all over the globe. so how do we play it? first of all, you need to know this is a sector where a rising tides did not necessarily lift all boats. there are major differences between the engineering construction names and, as usual, you got to stick with the one that has the best management, the best prospects. we like best ofbury. they did great job of separating the wheat from the chaff in this sector. consider chicago bridge and iron, cbi. a company that stopped being about bridges and iron over a century ago and isn t even based in chicago, hair not even based in illinois, not even based in america. they re among the largest construction companies on earth, folksst on building energy related infrastructure and it s headquartered in the hague. should they change their name to the netherlands krks company or maybe just the succinct dutch oven? who could make a joke about chicago bridge and iron other than cramerica. we know that this is the case because last week on february 27th, chicago bridge and iron, they knocked it out of the park. reporting a spectacular quarter with earnings coming at 91 cents on an 8 cent bead on better than expected revenue that rose 25.2% year after year. even though cbi had run up dramatically, the stock continued to surge after the report rallying from $53 to $55.87 where, like other stock, it hit a brand new high. not. is doing as well as chicago bridge and iron. just two days later, foster wheeler, another energy related engineering construction company reported abysmal numbers! yeah, they delivered a 19 cent earnings miss! off a 46 cent basis and revenues decline 35% year over year, coming in far below what analysts were looking for. while cbi reaffirmed its strong outlook and blamed the weak state of the global economic recovery for their troubles, funny, the rest of the industry seemed to have a very different view of the world economy. maybe this is one of those cases wb it s only raining on foster wheeler s side of the planet and sunny everywhere else? these results were so bad that foster wheeler got crushed. falling from $24 down to $20.22 last friday. that s a 16% decline, people. and even though the market has been on fire this week the stock has on recovered by neickels an dimes, jump change. the earnings do tell the tale. if you want to buy chicago bridge and iron, you have to stay the heck away from foster wheeler. what does make cbi so much better? first of all, back in chill cbi announced it would acquire shaw group. remember those guys, for $3 billion of cash and stock, a transformational deal that closed less than a money ago and gives cbi tremendous multi-year visibility, the company should have a $28 billion back log, made up 33% power projects, liquified natural gas project, agricultural infrastructure, fabry karks manufacturing and power plant services. it s expected to be additive, meaning it s going to make more money to earnings this year. along with revenue synergies that could be worth $150 million. as we saw before the deal closed, cbi s business is in excellent shape. that s thanks to asian liquified gas. their petrochemical division was incredibly strong. cbi wraked up $2.9 billion in new orders, rising a record $10 opinion 9 billion. this is before the impact of the shaw group acquisition. now post shaw cbi has the $28 billion bag log and more than 45% fixed price contracts, meaning could you make a case this stock is selling way too low below its book of business value. cbi trades at less than 14 times rnings, despite the fact of a 23% long-term growth rate. that s long. the stock is ridiculously cheap. and analyst day, the end of the month, i bet c bi management wil speak. foster wheeler, a smaller, less diversified company, management just can t seem to execute. when it came out, i thought it was like a typo. i couldn t believe it. now what s happened is they picked up a lot of lower margin work, they make a little less money on each deal, something management couldn t explain on the conference call. the company is reorganizing its engineering construction business and the cost of that reorganization are going to put the squeeze on foster wheeler s margins all the way through the year. they have the most exposure to europe of any company in the industry and worst of all, management has real credibility issues. because they ve done a poor job managing expectations in the past. you know how important expectations are for a stock. the bottom line is the engineering construction business may be in bull mode right now but that doesn t mean you re relieved of your duties to pick the best stocks in the industry. if you buy a loser like foster wheeler, the market will indeed punish you. but with a winner like chicago bridge and iron, i think the rewards will continue to be enormous. wait for a pullback and pull the trigger ahead of that march 28th analyst meetings are a catalyst that i think can drive the stock much higher. karen in my home state of new jersey. karen. caller: hi, jim. hi, karen. caller: i recently enjoyed a mad money burger at the hat. did you like theburger? did you like the dollar sign they put on the roll? i got a burger named after me. it s a cheeseburger anyway. it s what my mom used to make. go on. caller: with the housing market finally turning the corner, what is your opinion on the recent ipo tripoint homes. everybody rolled out a big recommend to the stock. i liked it, i interviewed them when they came public but here we go we re philadelphians, okay? more new jerseyite, you know what i mean. we have toll brothers toll is still down from when it reported, it s at 35. that s a much better selection. that s what you re going to go with. thanks for ordering the burger. i hope you had the relish. it s what makes the burger work. we re seeing a resurgence in infrastructure spending in north america. i suggest you play it with cbi and avoid foster wheeler. hey, don t move. lightning round is coming up next. tomorrow after a record rally will the latest jobs report be just as bullish on the economy? living with moderate to severe rheumatoid arthritis means living with pain. it could also mean living with joint damage. humira, adalimumab, can help treat more than just the pain. for many adults, humira is clinically proven to help relieve pain and stop further joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist about humira, to help relieve your pain and stop further joint damage. . it is time, it is time for the lightning round! buy, buy, buy, sell, sell, sell. you hear this sound and the lightning round is over. are you ready skeedaddy. we ll start with mark in wisconsin. mark! caller: jim, i d like your thoughts on golar, glng. thank you. i am doing so much work on these shipping companies and they are incredibly intriguing. i m going to tell you i m doing a rundown of all of them and i m going to save my judgment for when i ve done that rundown so stay tuned. donald in alabama! donald! caller: i got a question. why did solar cap drop from 26 on the 20th to 23.80 today and went up 6 cents when they had positive earnings and i think that you re looking at it a little too granular. because remember, this stock has been a winner. it s been a stock we like. it s not down that much. the yield is good. i m going to tell you buy, buy, buy. buy it. let s go to steve in connecticut. steve. caller: thank you for taking my call. course. caller: my stock is solozyme. szym. we ve taken a hard look at these guys. this doesn t have any earnings and i m kind of turned off. this is johnson & johnson market, sir. this is a market where you re making a lot of money with colgate. we do not need to go down the food chain. we do not need to experiment like that. let s go to tom in california. tom. caller: hi. say, eix in the utility space. can you help me understand how a stock that lost $5 a share in 2012 and 56 cents a share once you strip out all the one-time earnings still has a positive stock price and is increasing? it has huge cash flow and huge growth. i really like it. it s got good cash flow. valerie in my home state of pennsylvania. caller: hi, jim. my stock is cubis farm utility calls. it s a great speck. that is a great speculation and i do embrace it and i wish they d come on air. it s really good. and that, ladies and gentlemen, is the conclusion of the lightning round! the lightning round is sponsored by td ameritrade. coming up, silver linings playbook. could the gold standard still be a thing of the past? tonight cramer is looking for luster when he checks out a different side with the ceo of silver wheaton. [ male announcer ] when the world moves. futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. all on thinkorswim. from td ameritrade. try running four.ning a restaurant is hard, fortunately we ve got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we ve ever wanted to do and ink helps us do it. make your mark with ink from chase. i m always telling you gold is an essential part of a well balanced portfolio and that s true in this environment. gold is your insurance. it tends to go up when everything else is getting hammered. but silver can do the same thing. long term i believe gold and silver are going higher. if you want to capture more than just an increase in prices down the road, if you want to make money off of rising production, you have to be smart about it. mining companies tend to get hit with all kinds of woe that make it so that they can t keep up with the precious metal they produce. perhaps you can own a company that invests wisely in minds. take sl wheaton that invests in silver minds and increasingly in golds mines. it s known as a metal streaming company, the largest in the world. they give miners an up front payment to get started for a piece of their future production. silver wheaton doesn t need to worry about the labor strikes and cost overruns. they don t even have ongoing capital costs. it s a totally unhedged company. the stock is very much tied to the price of silver, which is why it s down 17% in the last year. it s pretty much mirroring silver s decline. because the company is always investing in more mines, growing the production it owns, when silver goes up, the stock tends to roar. silver wheaton has rallied 900%. let s talk to the co-founder and chairman of silver wheaton. welcome to mad money. how are you, sir? have a seat. i ve traced out what happens when silver goes up. you do better. what is the ratio if silver goes down? well, it goes both ways. no doubt with that. we re bullish in terms of where silver s going up. it does have an impact on bus we do have a base cost in these contracts that makes sure we profitable. by investing into means that have high operating margins, they ll always deliver to us. you ve just made a very big transformational deal with a gold company. is that a sign you ve lost faith in silver? you want to be diversified? well, it s a gold stream. it s valet. we do like silver a little better. there s better fundamentals behind the price of silver on a long-term builder. gold is a good precious metal. in this fiscal environment, we re pretty comfortable in the precious metal space. you look silver more than gold but half of the silver production is industrial, not just precious. so you re not worried about the world economy. it s the application of silver. where silver is used is high tech. that s where and that application is growing, that consumption is growing. it s the best conductor of electricity out there. it s better than gold, better than copper. we see high efficiency electronics continues to demand silver. that area, that sector will continue to grow even in lesser, weaker economic periods. you know i am a gold aficionado and i always recommended the gld, i really think it s important everybody have, it i regard it as an alternative currency. is silver an alternative currency, too? i call it the affordable precious metal. when you look at countries like china and india and africa is probably not too far behind, we see economic growth in the population as a whole, emerging middle class. when you have the emerging middle class coming out in places like china and india, is the first thing they re going to buy gold at $1,600, 1,700 an ounce? or silver at $40 an ounce? when i look at gold, i like they have such a hard time finding it. it seems like there s a lot more silver in the world than gold. what s unique about silver is most silver doesn t come from silver mines. it comes from copper mines and led zinc mines and we buy noncore assets from copper mining companies. it s an encore asset to them. we get the advantage of that growth. we have a terrific guy from one of the streaming gold company and i felt badly because i made it sound like there wasn t as much risk and then gold went down. there is a a risk to the actual miners not mining anymore if the precious metal goes down too much, right? that s correct. that s one of the reasons why when we select our project, we protect that. we put a lot of effort into our due diligence. we want to invest in the lowest half of the respective cost curves. so silver goes to 20. you think your guys are still going to dig? well, most of our mines are copper mine. so we should be watching copper if it goes to like $3, should we worry? we invest in the bottom half of that respective cost curve. if we re down at if we see copper drop down, the most expense of mine, the ones that don t have the high operating margins, they shut down first. we invest in the lowest half of the cost curves. that s a terrific analysis. i feel better. these things are not without risk but they also have great reward if you catch it. thank you so much. that s randy smallwood, president and ceo of silver wheaton. now you know the story, go to the web site, lots of great presentations, a lot of information. mad money is back after the break. i know what you re thinking. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you re thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it s no surprise to you that companies depend on today s xerox for services that simplify how work gets done. which is.pretty much what we ve always stood for. with xerox, you re ready for real business. fees. huge fees! that s what i thought of yesterday when david faber of squawk on the street chatted with me about verizon s potential of buying out or simply buying vodaphone. you get a $100 billion deal, lots of bank, making lots of money with very few people doing the heavy lifting. mergers and acquisitions is a groving business. huge fees. dell, a played out old tech stock that hasn t been able to move aggressively in higher valuation additive food chain. not everyone is going to win dell but if you like dell, can i interest new a little piece of hewlett packard maybe? potential breakup in sale coming. call banker, more fees coming. last i heard announced a 60 million share offering. i like the mortgage insurer with capital that has made it. or radiance s deal or the 10 million shares of jcpenney put up by deutsche bank for a quick pay day. the bond issuance is coming hard and fast. we ve had so many balanced issuances, we don t even notice it anymore. but the capital is almost risk free courtesy of our pal ben bernan bernanke. they all require the same thing, bankers. many of the regional banks are slowly creeping higher. i think they break out soon. good revenue growth in the end didn t matter one wit with the consumer package plays. maybe the remaining investment bankers that are the winners here could be much bigger than the other financials. we have all become conditioned to believe that dodd-frank wiped out the principal interest for these firms, the ability to play hedge funds with their own capital. the agency business has huge profits with little risk. it doesn t hurt that the loss making european banks pull back from this business. that means jpmorgan, which is a pretty darn hot stock will see a sudden spirit from their businesses. morgan stanley is caught in the hodgepodge. jpmorgan is in very good shape. goldman? they just named this guy as head of mergers and acquisitions. he s got a fresh attitude with a global focus. i believe he becomes the rainmaker for goldman sachs going forward. you see investment bankers making money for shareholders without that baggage of used leverage. goldman sachs at ten times a probably way too low 2014 number, it makes sense if they re taking gigantic risks, swinging around billions of their ownmoney, way too low of a risk ratio. sure we want to catch the next takeover if they re coming fast and furious but maybe we should go for the companies that will win most consistently, the fee generating investment banks that i think will crush the earnings estimates during the next reporting period. stick with cramer. i remember the day my doctor said i had diabetes. there s a lot i had to do. watch my diet. stay active. start insulin. today, i learned there s something i don t have to do anymore. my doctor said that with novolog® flexpen, i don t have to use a syringe and a vial or carry a cooler. flexpen® comes prefilled with fast-acting insulin used to help control high blood sugar when you eat. dial the exact dose. inject by pushing a button. no drawing from a vial. you should eat a meal within 5 to 10 minutes after injecting novolog®

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