funding a clearance center in abu dab ee. our fax dollars going there, not here at home. that's it for us at "the five." see you back here tomorrow. "special report" is up next. the rich get richer while the middle class gets poorer in this economy. and the president prepares for a lavish vacation, he is talking about income inequality. this is "special report." good evening. i'm bret baier. a vivid reminder tonight of how bad the economy has been in the last few years. the toll it has taken on you and yours and how elusive the american dream is for millions. all of this as president obama and his family go on vacation

you can only dream about. >> reporter: despite budget battles, president obama plans an eight day vacation on martha's vineyard. while house republicans are on recess until september 9th, both insist they can avoid government shut down. >> there's ample time to make sure it doesn't happen. we don't need more self inflicted wounds. >> reporter: the lack of urgency, despite two studies that show the economy is deteriorating, with the rich getting richer, while the poor are struggling even more. associated press is out today with a new survey showing four out of five americans, 80%, live near poverty without work or relying on welfare at least once in their lives. meanwhile, recent study by pugh research found in two years of the obama administration, the mean wealth of households rose by 28%, while the mean net worth of households in the lower 93%

dropped by 4%, which the president has been highlighting on his economic road show to claim he is standing up for the middle class. >> growing inequality is not just morally wrong, it is bad economics. when the rungs on opportunity grow farther and farther apart, it undermines the essence of america. >> reporter: studies show the gap between rich and poor has been widening on his watch. >> too much emphasis on equality and not enough emphasis how do you grow the economy and create jobs. >> reporter: the economic tour resumes tuesday when he visits an amazon.com fulfillment center in tennessee. the focus will be on more government spending. >> if we don't make investments, we will see benefits flow to the top 1% and end up in the same boom and bust cycle that led us to this down tour. >> reporter: the president is

going to capitol hill wednesday to huddle with democrats, a term with very few legislative victories, they realize the president needs to jump start the agenda. the president we are told invited former secretary of state hillary clinton for lunch. you can see from this photo they were chummy. it was a government photo released by the white house, independent media weren't allowed in, neither was joe biden, although white house aides took great pains to remind us every week the president has lunch with the vice president, he wasn't left out of this. to make sure they soothe any potential hard feelings, we're told the vice president is having breakfast tomorrow with secretary clinton. bret? >> ed, thank you. let's get some thoughts on the economy and where we are. senior political analyst brit hume joins us. >> the poor condition of the economy is important cause of the poor condition of our politics, because a surging

economy means a surge in tax receipts. that takes pressure off the federal budget because there's enough money to finance both federal spending and other things while keeping tax rates low. that's how things were during economic recoveries of the 1980s and '90s. you could make a budget deal, there was enough money to go around. the booming recovery of those days have given way to the rebound we have seen since the so-called great recession ended more than four years ago. yet president obama is fixated on wealth inequality, like that's holding back growth. democrats would prefer everyone be equally poor than unequally rich. republicans tend to worry about the health of the goose, democrats about the distribution of the golden eggs. democrats think spreading wealth more equally will create more of it. after four years of weakness, you may think it would dawn on them it doesn't work that way. it is fairly uncomplicated. before you spread the wealth, you have to create it.

the government doesn't create wealth, it absorbs it, the private sector creates it. >> we are getting ready for the next round of what could be standoffs, the debt ceiling and battle back and forth between congress and the white house. do you think republicans now are going to use that lever again effectively? >> i think they'll try. the danger for them is that if they carry that all the way, brinkmanship to extract spending cuts or other spending reforms, and it results in government shutdown, the history of this has been that people want the government cut down but not shut down. when a shutdown occurs, they get angry and tend to blame the republicans. that's the way it always worked in the past. i don't see any reason it would be different this time. they should try to use leverage, but they better be careful.

>> thank you. bankrupt detroit may become a test case for a controversial new way of lowering a city's doctor bills. chief correspondent mike emanuel tells us how. >> reporter: with detroit entering federal bankruptcy, the city is proposing a way to reduce some of the $5.7 billion it owes in retiree health costs, shifting younger recipients out of city run coverage into obama care insurance markets. the idea first reported by "the new york times" would save the city tens of millions of dollars. texas republican senator ted cruz that favors repeal of obama care calls this troubling. >> the idea that you and i, the taxpayers across the country would be stuck footing the bill for detroit's irresponsible policy i think makes no sense. >> reporter: a solution likely to catch on in other cash strapped cities with massive retiree benefits. >> it is a way to ensure that the employees have good health

coverage, perhaps excellent health coverage, and at the same time take the financial burden off the city and town. >> reporter: he wasn't sure how it would play out but emphasized the positive. >> one of the benefits of the affordable care act is making sure those americans that don't get health insurance through their employer are able for the first time to go in the open market through these market places and purchase high quality, affordable health insurance. >> reporter: former dnc chairman howard dean says a component of the health care law, independent payment advisory board is a major problem. dean writes in "the wall street journal" it is essentially a health care rationing body, will be able to stop certain treatments its members do not favor by sip plel setting rates to levels where no doctor or hospital will perform them.

despite detroit's bankruptcy, more than 400 million will be spent on a new arena for the red wings in the national hockey league. calling it economic development. one area of pride is the city's nickname, hockey town. bret? >> thank you. today on wall street the dow lost 37, s&p 500 dropped 6, nasdaq was off 14. pending home sales were down, four-tenths a percentage point last month. that follows the biggest surge in six and a half years in may. the dream of owning a home has turned into a nightmare for many americans. in tonight's shattered dreams report, correspondent molly lime tells us about people whose lives and finances have been turned upside down. >> reporter: for betsy, owning her own home was the american dream. five years ago when the real estate market was booming, she bought a townhouse. >> i figured if i didn't jump in right away, i wouldn't be able

to afford to have a place. >> reporter: now like millions of other americans, she's upside down, owing more on the home than it is worth. >> the market and economy just like tanked. it was awful. you know, you're thinking you're going to have some kind of profit on your property if you ever wanted to sell it, but not in five years. it just kept dropping and dropping. >> reporter: and she is not alone. the latest numbers from housing market firm show 13 million americans, 25.4%, had negative equity in homes in the first quarter of 2013. >> you look across the country, the discounts as to what something is worth today versus four or five years ago at the peak of the market could be as much as 50%. a small hit could be 20%. >> reporter: massachusetts real estate broker said upside down homeowners are reluctant to sell, hoping prices bounce back,

that's leaving sparce inventory. >> you clear out the foreclosed properties or massive portion but there's no increase in market to create new equity positions where fewer houses are now upside down, what happens? there's a massive void. who can sell? >> reporter: a federal program called harp offers underwater homeowners current on mortgages with loans owned by fannie mae or freddie mac help refinance, and the program has been extended for two years through 2015. bret? >> all right, molly, thanks. up next, restarting the middle east peace process again. but first, a live look at detroit from our fox affiliate there, wjbk. obviously bankruptcy looming there is a big story. tonight, the big story, real detroit cops arrested for robberies supposedly committed by fake cops. okay. that's tonight's live look outside the beltway from "special report." we'll be right back. weekdays are for rising to the challenge.

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this is a fox news alert. minutes ago, the senate voted to confirm the fbi director, new fbi director james comey 93-1. look at comey. senator paul saying the fbi told him today that the fourth amendment does not apply to unmanned vehicles, which he disagrees with. he said he has no objection to comey personally. he made them state the law, which he says will be talked about again. again, james comey confirmed as the next fbi director at the senate. overseas, long stalled middle east peace talks resume

tonight in the u.s. secretary of state john kerry hosting a working dinner for senior israeli and palestinian negotiators. senior white house foreign affairs correspondent wendell goler coming back to the negotiating table is a first step in a much traveled often bumpy road. >> reporter: the agreement launches nine months of talks on the hardest issues, borders, israeli security, palestinian refugee rights and jerusalem. >> i know negotiations are going to be tough, but i also know the consequences of not trying could be worse. >> reporter: secretary of state kerry made six trips to the middle east since taking office earlier this year, but he says it was president obama's visit in march that set the stage for renewed peace talks. in a written statement today, mr. obama said the trip, quote, reinforced my belief that peace is both possible and necessary. the palestinians demanded release of more than 100 prisoners serving time for 1980s and '90s attacks on soldiers, women and children.

there were bitter protests of the release of people with blood on their hands, but the israel cabinet voted in favor. >> people with a terrible history, but we have to do what we have to do to make the peace process progress. >> reporter: there were protests in ra mal a where they complain that the prisoners are released as the talks progress. >> that release would be black mailing to the palestinian negotiating team. >> reporter: they claim israel wouldn't agree to suspend settlement agreement. the former ambassador will lead the u.s. effort to help broker a deal that came close to getting agreement in the clinton administration. >> he knows what has worked and knows what hasn't worked. and he knows how important it is to get this right. >> reporter: the effort will

begin tonight at a dinner here at the state department with justice minister representing the israelis and a negotiator for the palestinians. the talks continue tomorrow. if there's enough progress, they'll announce where and when talks resume in the middle east. bret? >> wendell, thank you. more arrests in egypt today of people associated with muslim brotherhood, accused of inciting violence. it follows what that group call a massacre over the weekend. leland vitter is following that tonight from the middle east newsroom. >> reporter: chanting, martyrs, rest in peace, we will continue, muslim brotherhood supporters spent sunday night burying their dead after a weekend of unending violence. friday night's rally to those supporting ousted president morsi and those behind the army that deposed him spiral from peaceful demonstrations into

running street battles. police fired countless rounds of tear gas, but the rocks kept coming, as did the fireworks, repurpose as rockets and live ammunition. by daybreak, dozens are dead, hundreds injured and mothers calling for revenge. she's referring to the strong man general saying he is responsible. today, he met with members of an emergency delegation for european union and over the weekend fielded calls from u.s. officials condemning the violence and urging calm. so far, he and his army are defiant but contrite, blaming unknown thugs for the violence. muslim brotherhood continues to demand the democratically elected leader be reinstated, and have an order to leave one of the main mosques turned protest camp. the army says people have the

right to demonstrate peacefully, just not march near or towards military bases. the muslim brotherhood says tomorrow they will do just that, setting up a potential standoff that seems almost certain to result in a repeat of last weekend's bloodshed. bret? >> leland vitter in the middle east newsroom, thank you. answering questions on a flight back to the vatican, pope francis seemed to be reaching out to gay people today. the pope gave a wide ranging news conference as he traveled back from a week long visit to brazil. his predecessor pope benedict said men with homosexual tendencies shouldn't become priests. today, francis said he would not judge priests for their sexual orientation. >>translator: if someone is gay and searching for the lord and has goodwill, who am i to judge? >> this was not necessarily a signal of a change in church policy but a change in tone

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the fbi is touting the success of operation cross-country tonight. the campaign rescued 105 children who were being forced into prostitution and arrested 150 of the people responsible. the bureau says the weekend raids in 76 cities were part of the largest operation of its kind. the assistant director of the fbi's criminal investigative division said today child prostitution remains what he called a persistent threat to

children across america. we should know by tomorrow afternoon whether the wick ee leaker could be looking at life in prison. chief correspondent catherine herridge has more on the court-martial. >> the key charge is aiding the enemy. the question before the judge, whether bradley manning acted maliciously with intent of helping the country's enemies, and believed the documents would end up with al qaeda. the prosecutor said manning seen leaving the court was not a hacker, not a troubled young soul, rather he was a determined soldier with the ability, armed with secret documents to harm the united states. manning has already pled guilty to lesser charges where he faces up to 20 years in prison. alleged to have leaked 700,000 documents, if convicted of the most serious charge, aiding the enemy, he faces life in prison. the defense never denied manning leaked government secrets, rather his motivation was naive. wanted to expose government lies and wanted to be famous.

colonel denise lind overseeing the trial known as court-martial is determining the outcome, not a jury, whether the prosecution met the high legal standard of proving beyond a reasonable doubt that manning act with general evil intent. >> i think it is a hard case to make unless you have a confession from the person that's charged with the crime in which they indicate that there are specific reasons for do what they did was to harm the united states, and i don't think they have that in this case. >> the verdict will be read in court tomorrow afternoon, the culmination of nearly two months of testimony and evidence, bret. >> thank you. one of america's greatest warriors has died. bud day was shot down during the vietnam war, endured years of captivity and abuse, without revealing sensitive information. one of his fellow prisoners and cell mate for years, arizona

senator john mccain spoke of his friend on the senate floor today. >> whenever i felt my spirits and resistance flag, i looked to bud for courage to continue and the example how to serve my country in difficult circumstances. bud was the bravest man i ever knew, and i've known more than a few. >> medal of honor recipient, bud day, was 88 years old. we will be right back. she's always been able to brighten your day. it's just her way. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis.

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some fresh pickings from the political grapevine. it has been nearly five white public fell victim to the sequester, according to white house officials. their decision, and while there's no sign of tours returning, that doesn't mean no one is getting access. last week, 130 guests enjoyed a ram dan dinner. earlier, the president hosted the diplomatic corp for reception, and several sports teams have been invited to the people's house. meantime, president obama must deal with the optics of jetting off to martha's vineyard for the annual family vacation as ed henry reported, while a new survey finds four out of five americans experience some type of economic insecurity during their lives. the obamas will stay in a $7.6 million home, complete with tennis courts and swimming pools on the vineyard. 75 staffers are also expected to stay on the island at a nearby

hotel. sign up for obama care and public health exchanges begins in two months. now many of those hired to help people get the health benefits are finding out they will not be getting coverage of their own. last month the obama administration announced creation of a 24 hour call center to answer people's questions, but the contra costa times reports applicants for the branch outside san francisco learned contrary to information on the job listing, half the positions are part time, meaning they get no benefits. the county supervisor representing the district where the call center is housed calling the hiring process a comedy of errors, one of the new part time employees told the times, quote, what's really ironic is working for a call center and trying to help people get health care but we can't afford it ourselves. the deputy county administrator says it was the plan from the start to make half the positions part time and the county has

been clear about that. george washington who according to legend couldn't tell a lie might be turning over in his grave on this next story. washington, d.c., our nation's capital, the least honest place in america, according to an unscientific study by the honest tea company. it set up unmanned kiosks selling tea for a dollar on the honor system. 20% of those that helped themselves to tea in washington, d.c. didn't pay, compared to national average of only 8%. adding insult to injury, the company's co-founder had his bike stolen in d.c. on the day of the study. democrats in washington have in recent weeks and months accused conservative republicans of waging a war on women. but correspondent doug mcelway tells us it is the behavior of some of their own towards women that has many democrats cringing tonight. >> people are more interested in hearing solutions to their problems than hearing about

things in my background, and we'll see if that's the case. >> reporter: his campaign manager dropped out, his support is thinning, even his wife is being criticized for risking presidential hopes of her mentor, hillary clinton. >> this is getting to the point it is splashing up against the clintons, it is almost unavoidable, people have been making comparisons. >> reporter: with weiner, bob filner, and eliot spitzer, they compose a trio of targets for democratic party elders. >> conduct of some people that we're talking about here is reprehensible, it is so disrespectful of women. >> at this point it is absurd. he is not going to be the next mayor of new york, he is wasting time and space. >> i don't think somebody who is lacking a moral compass really sets a role model or really will provide the kind of leadership that san diego people want. >> reporter: criticism represents a dent in what some believe is a scandal double

standard. >> i think there's a double standard, if a republican is involved in a sex scandal, it is used to depict the entire part as being hypocritical because it is a party of traditional family values. when democrats do this kind of stuff, it is general entertainment, in some instances basis for getting them back into politics. >> reporter: there are cases of republicans that survived sex scandals, south carolina's former governor mark sanford won a congressional seat this term after resigning in disgrace after admitting to an affair. bible belt republican congressman dan burton who admitted to fathering a child out of wedlock was reelected seven times. >> reporter: the willingness to admit faults and seek forgiveness, redemption. denial doesn't work in new york where concentration of tabloid media is an obstacle to resurrecting one's career.

weiner is now in fourth place at 16%. >> doug, thank you. a lone gunman got away with $136 million in jewelry during a brazen heist sunday in france. authorities say theft at the carlton inter continental hotel occurred when a man got past the locked doors, staged a holdup and fled on foot. no customers were present and no one was injured. we just learned police in washington, d.c. arrested an adult female in connection with vandalism at the national cathedral. green paint was discovered inside bethlehem chapel, also found on a statute outside the smithsonian castle. last week told you about green paint on the lincoln memorial. no word on whether the woman is also a suspect in the other crimes. alarming news about how many americans have been or still are facing economic insecurity. the fox all stars react when we return. the great outdoors...

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test test how do you make the case and say this helps the middle class when in fact the middle class has seen the rich get richer? >> the president is concerned about the studies like the ones you cited there. but as we've gone through the recovery, we need to make sure that those benefits are flowing to the middle class. if they don't, and only flow to the top 1%, we get back to the boom and bust cycle that led to the biggest downturn since the great depression in the first place. >> if you want to help the middle class, himt the government's profile, not expand it. >> getting ready for more show downs between the white house and congress. as we do, taking a look at the economy, recent study by pugh

research found the first two years of the obama administration, mean net worth of households in the top 7%, upper 7% of wealth, rose about 28% while the mean net worth of households in the lower 93% dropped by 4%, which the president has been highlighting in the latest road speeches. also, associated press, gfk has a new survey showing four out of five americans, 80% will live near poverty, will experience at least joblessness, welfare reliance, near poverty in their lives. what about this? the state of the economy, where the president and congress stand? let's bring in the panel. joan a goldberg from national review. julie pace, and syndicated columni columnist, charles krauthammer. what do you think? >> this is like announcing bears are using national forest for toilets, but this was not a

substantive speech, it was a political speech. the policy proposals he put through have been around a long time. pretty small stuff to begin with. this is all about framing for the 2014 elections and for the debt ceiling show down. and on that regard, it was smart politics. it makes it sound like president obama cares about the little guy, cares about the middle class, and is going to put the republicans in this position of seeming like they're ideological, saying if you don't defund obama care, we're going to shut down the government. i think the republicans could do better at getting a serious reform agenda through, they have one, but haven't figured out how to message properly. >> the "the new york times" says the economy is far stronger than four and a half years ago. most economists believe growth will pick up next quarter and second half of the year. one thing could screw things up if you have a manufactured crisis and republicans play

brinksmanship. if we stand pat, if we don't do anything, unemployment won't go down as fast as it should, income and equality continue to rise, wages and income continue to be flat and that's not a future we should accept. what about that in context of new studies that show the first part of his term at least, the first term, didn't see much change and it is not changing now. >> we have seen some change in the economy as the president said, but what the numbers in the pugh survey show, the vast majority of american people are not feeling that. it is centered in a small group of wealthy americans, centered in people that have a lot of investment in the stock market, some large corporations have increased cash on hand, but they're not putting that cash on hand back into the economy and creating jobs. that creates a problem for the president. he has to talk about the issue of in health care inequality because it is stark, really effecting a lot of people, but

there's really no solution on the table to solve that. as everyone on capitol hill knows, if you have a government shut down, go over the debt ceiling, makes the problem worse. >> charles? >> i find it astonishing he goes around making speeches in which he deplores the state of the economy, the growing income inequality, chronic unemployment, staggering middle class income, and it is as if he has been a bystander, like he has been out of the country for the last five years. it is his economy. he's the president. he's talking as if this is the bush economy, i don't know, the eisenhower economy, and he just arrived in a boat and discovers how bad the economy is. this is a result of policies he instituted. he gave us the biggest stimulus in the history of the milky way, and said it would jump start the economy. the result has been the slowest recovery, the worst recovery since world war ii, and that is the root of all of the problems he's talking about, income

inequality, the median income of the middle class of americans has declined by 5% in his one term. so who's responsible for that? they were his policies. he talks about this in the abstract and gets away with it in a way i find absolutely astonishing. it is magical. this is his economy and he's pretending he's just stumbled upon it. the policies he proposes are the ones he proposed and implemented in the first term. >> meantime, treasury secretary lew was talking about the need for congress to act quickly on the debt ceiling increase. take a listen. >> congress needs to do its work, has to stop looking for what's the last possible moment. it will be terrible for the u.s. economy and world economy, it is irresponsible, and i think congress learned that lesson in 2011. >> has any thought been given in the white house to calling congress back to session if this is as desperate a situation as

jack lew suggested, why is washington going away for the summer? >> the prospect of government shut down or more drama around the debt ceiling would be bad for the economy. there's no doubt about that. and i think again, that is a view shared by leaders in congress in both parties. so there's ample time for us based on that general agreement. there's ample time for us to make sure that doesn't happen. >> ample time, jonah. really, everybody is leaving. the president going to martha's vineyard, congress is heading out, and here is this looming debt ceiling battle that everybody is going away until after labor day. >> i think everyone feels like we have seen this movie before, it feels so groundhog dayish. i think they're going to get it figured out because they have to get it figured out. at the same time, i think the republicans are making a mistake, putting this all on the defunding of obama care thing. i think it is putting a purity

of principle ahead of good strategy. >> julie? >> i have flashbacks to summer of 2011 when we had the first major debt ceiling fight. you have a feeling of déjà vu, we reached a point of crisis, a deadline approaching, everyone goes out of town, at some point everyone comes back, we have threat of going over the brink, and eventually they get their act together. >> i know what you said, i hear you about the advice for republicans. what do you say to those republicans who say this is the only way we can get the administration to deal on anything by using the lever points? it is not the way they want to run the government, it is the way, the only way to get them to move. >> except that they can't. if they could, i would support this. it's been shown in the showdowns over the budget and debt ceiling that in the end, our side will cave because obama, the broadcasting as we saw on all the clips, they're not going to

accede on obama care. we know how it ends, it ended that way two years ago. you can't win. if you could, i would support it. choose a tactic with a chance of winning. >> maybe not abolishing or defunding obama care, but speaker boehner said a debt ceiling increase has to come with more cuts. the white house is saying they're not negotiating on any of that. >> as long as the cuts are consensual, reasonable, and ones that a vast majority of americans support, otherwise if it looks like a drastic cut and the administration stands back, the republicans are accused of overreaching and shutting the government down. if everybody is leaving town, why are we stuck here? >> we are dedicated. next up, a new effort to fix an old problem, middle east peace talks resume.

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>> i know the negotiations are going to be tough, but i also know that the consequences of not trying could be worse. we will be very fortunate to have on our team, on a day-to-day basis, working with the parties, wherever they are negotiating, a seasoned american diplomat. ambassador martin endecker. >> prime minister netanyahu and president mahmoud abbas have made the tough decisions required to come back to the negotiating table. >> bret: master martin indyk will run the egyptian peace talks as negotiating. john kerry has spearheaded. he took six trips to the middle east in recent

months. now the talks are beginning. what about these talks and what we can see from them. we are back with our panel. charles, your thoughts. >> the fundamental issue is whether the palestinians will sign a final agreement. they will sign interim agreements and they have dozens of them. but a final agreement that accepts a jewish state. and they have never done that. they were offered that in 2000, 2001, and 2008, extremely generous terms and every time they walked away. and i think that remains the problem. the israelis, interestingly, netanyahu and his government are very interested in the the agreement. they have a sense that history is running away from them. the conditions, the terms they would achieve today, i believe, are probably stronger than they would be in the future. but the palestinians every day that passes, they get support from the eu and from others. they stand pat and everybody we regards them.

they -- rewards them. release of prisoners here. i don't think there is any indication the palestinians have shifted in their objective which is ultimately all of the land of palestine. >> bret: is there a sense in the administration there is real hope here or running through the process. >> i think there is certainly some hope there. i think that there is a lot of realism though that we have banned, talk about deja vu. we have been through this process countless times before. a lot of same issues on the table that charles mentioned. you can also add in there palestinian refugees, palestinian settlements. these are always the issues that create the stumbling block. some realism if you are going to get beyond these initial phase. opening negotiations are going to solve those. i don't think at this point there is a lot of hope we are going to do that in the near term. they certainly are going to give it a shot though. >> bret: is the palestinian authority in a place as charles mentioned, that makes it legitimate to negotiate on all of these points, considering the

breakup of hamas and gaza and can they deliver if you finally get to this final agreement stage? >> yeah. i think the final agreement stage -- these are talks to talk about how they are going to talk about talking, right? >> and i thought it was very telling had you a clip earlier in the program where the palestinian official calling it blackmail that the israelis were going to release convicted murderers of women and children on a slower timetable than the palestinians want. if your mind set is that an outrageous release of prisoners isn't happening fast enough blackmail is not a great mind set going into negotiations. i think this is -- i think charles is absolutely right that the conditions among the palestinians are such that it makes it it very difficult to see how they get to a final agreement on all of this. the only thing that could change is the relationship that hamas has lost the muslim brotherhood. if hamas gets truly, gelded by this process, you could see some movement somewhere. i just don't see john kerry

being the shepard to do it. >> except hamas had negotiations with iran over the weekend exactly in response to the loss of the patron in cairo. and hamas represents gaza. it opposes abbas. remember, abbas speaking of legitimacy is in the ninth year of a four year term it. so, he doesn't have a lot of legitimacy. elections were supposed to happen five years ago around the time obama was elected. it hasn't happened. he speaks on behalf really of no one. look, it's a dance. we have done it before. that their speak something okay. anybody who holds out hope, this is going to be the final status. as kerry announced in these opening of the talks, i think is living on the moon. >> bret: meantime, the violence in egypt is still a major concern for this administration and for that region. that's it for the panel. stay tuned for some features that your g.p.s. probably does not have.

>> bret: finally tonight, it's amazing what technology can do these days, take, for example, navigation systems. g.p.s. telling us where to go in our cars. we're all used to it now which set up this practical joke in new york. >> take a left on green point avenue. i mean take a right on green point avenue. >> wow, they make mistakes. >> rough night last night, buddy? >> did you buy that shirt in the 80's, b, the 80's or c, the 80's? did you just tweet at least open the window if you tweet. >> wheeling l. what's up with your thing, man. guys look stupid doing that this is actually a human being talking behind new a car that is following you. we are following behind you and videotaping everything. [ laughter ]

>> bret: some people have a lot of time on their hands. thanks for inviolate us into your home. that's it for "special report," fair, balanced, and unafraid. >> shepard: this is the fox report. tonight, the questions keep coming. the polls keep falling. yet, anthony weiner keeps running. now, the mayoral candidate in new york is hearing from the clintons. and they are said to want him gone. plus, will the accused mob boss, whitey bulger, take the stand in his own defense? he is accused of playing a part in 19 murders. while running a notorious boston gang. and, later, becoming one of the nation's most high fro file fugitives. tonight, a look at the strategy for defending whitey bulger.