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By any medical or criminal justice analysis no longer pose a threat to anybody and those are the ones that would be in this facility. >> reporter: the state knows they have been doing this for year placing people in nursing homes around the state. this is chance they say to put them in one location. martha? martha: doesn't seem to be quelling fears of folks in the neighborhood though. we'll see. eric, thank you very much. bill: so the hear row doctor who helped us catch and kill usama bin laden is still in jail today. in a moment meet the americans who are trying to set him free. martha: plus,...

California cities, san bernardino mammoth lakes. they could go the chapter 9 bankruptcy route to get out from under their pension problems. you mentioned the bondholder problem. that is huge problem to people that lent money to cities like stockton because they will take a haircut. they may get less money back than they actually put in. that is the first time that ever happened. so there is precedent on two fronts. the bond holders, they lose and maybe the pensioners, certainly the pension fund, that will lose and the ripple effects are spread out all across the country, certainly across calif...

Bankruptcy. so this is a state of affairs right now. so now the city says that they will have trouble making cuts as they have in the past in the pension fund. they're doing a lot of cuts in that town. they are home to nearly 300,000 residents. it is about 80 miles east of san francisco. stuart varney the anchor of "varney & company" of course and of fox business network and here almost every morning. good morning, stuart, good to have you. there is a large precedent being set here. the possibility of more bankruptcies in this country, right? >> yes. that is exactly the right word to use much ...

[inaudible] >> if you look at the, this is about -- oil and gas. >> that is not worth it. bill: always more dramatic when the camera shakes back and forth. they were debating fracking. three audience members slamming government for siding with the oil and gas industry. you saw they were kicked out. hickenlooper says he supports renewing energy. martha: washington is just starting to see impact perhaps of the $85 billion in automatic spending cuts that went into effect last month. most government employees are taking a pay cut this year but not your local lawmaker or the one you send to washing...

Martha: all right. there is new outrage after a state plans to send terminally ill prison inmates to a nursing home in a residential town. connecticut lawmakers claim that it will save taxpayers millions of dollars. eric shawn is live in rocky hill, connecticut with the details on this. eric, i can only imagine if your mom or dad are in the nursing home you will not be too happy with this idea. >> reporter: martha, here is the situation. they will take prisoners pack rolled or released on medical or compassionate reasons and put them a now not used nursing home behind me. look at this. you hav...