Guests: Monica Crowley & Alan Colmes

"Fannie Mae and Freddie Mac were set up to give working Americans a shot at owning a decent home. The feds don't run those agencies outright, but they do provide funding. When Fannie and Freddie went bankrupt a few years ago, the government gave them $156 billion to keep operating, and Fannie and Freddie still owe U.S. taxpayers $141 billion. Now CNN is reporting that executives at Fannie and Freddie are set to receive nearly $100 million in compensation from 2009 to the end of this year. So my question is simple: Why aren't the 'Occupy' loons demonstrating in front of Fannie Mae and Freddie Mac? The hypocrisy is staggering - while the occupiers focus on private industry where money is earned in the marketplace, they totally overlook the largely liberal programs that have caused so much economic damage to America. Next year Americans will have to make a decision whether to vote for the Democratic Party, which largely wants to continue the 'social justice' madness, or vote for a rather chaotic Republican Party that says it wants smaller government. The election next year is not about President Obama or his opponent; it's about saving the USA from economic collapse."

The Factor invited Alan Colmes and Monica Crowley to opine on the lavish Fannie and Freddie compensation packages. "They shouldn't get those salaries," Colmes said, "but Fannie and Freddie are saying that the bad guys who ruined things are out and the guys in there now are turning it around. And if they're turning it around they should get bonuses based on that." Crowley ridiculed the notion that the huge agencies can ever be efficient. "If you're going to argue that they're turning Fannie and Freddie around, then why did Fannie and Freddie ask the American taxpayers for another $12 billion last week? Why should the federal government be involved in the housing sector in any way, shape or form? It has bankrupted the United States." The Factor pointed to another boondoggle funded by taxpayers: "According to a new book by Peter Schweizer, 80% of the loans the federal government has given to so-called 'green' companies have been given to people who raised money for Barack Obama."

Guest: John Stossel

A New York judge has ruled that Mayor Michael Bloomberg acted properly when he ordered police to evict 'Occupy Wall Street' protesters from Zuccotti Park in lower Manhattan. Fox Business host John Stossel endorsed the ruling and the eviction. "You don't get to 'occupy' a park," he declared. "Free speech is really important and you get to assemble, but you can't 'occupy.' You get to speak but you don't get to destroy other people's lives. This should have happened long ago." The Factor feigned surprise at Stossel's sudden outbreak of reasonableness: "You and I - the libertarian Stossel and the traditionalist O'Reilly - agree that the 'occupiers' should have a place to gather and make their points, but they can't live there."

Guests: Lis Wiehl & Kimberly Guilfoyle

The Supreme Court has agreed to rule on the constitutionality of the health care bill, particularly its mandate that individuals must purchase insurance. Legal analysts Lis Wiehl and Kimberly Guilfoyle previewed the much-watched case. "The government will argue," Wiehl said, "that under the Commerce Clause of the Constitution we have the right to regulate commerce and this is interstate commerce. But never before in our history has the Commerce Clause been stretched to that point where every man, woman and child would be mandated to buy insurance from a private company." Guilfoyle agreed that the law gives the federal government nearly unlimited power. "This is a completely unique and novel situation, which is why the Supreme Court has agreed to hear it. It's a legal precedent that could be extended to other things - what else are they going to tell us we have to buy?" Both legal wizards agreed with The Factor's prediction that the individual mandate will be ruled unconstitutional in a 5 - 4 decision."

Returning for a second segment, Wiehl and Guilfoyle scrutinized the case of Santana Gaona, an illegal alien from Mexico. He was being held on a sexual assault charge in Texas, then was ordered released by an unknown federal agency, after which he proceeded to kill a man. "We've been trying to get information from Immigration and Customs Enforcement," Guilfoyle reported. "They say that another federal agency insisted that he be released, and that there were 'compelling reasons' for his release." Wiehl declared that whichever agency ordered Gaona's release was obviously negligent. "Even if he was a major witness helping the government, that agency had a duty to supervise him. They have blood on their hands." The Factor demanded that the feds step up and explain what transpired: "This guy was deported twice, came back twice, and was in jail on a sexual assault charge. But someone made a call and ordered him released, and the government won't tell us who. We've asked Janet Napolitano to come on the program and tell us who it is. If she won't, we'll file a Freedom of Information Act request."

Guests: Eric Chase & Nicole Deborde

Former Penn State assistant football coach Jerry Sandusky, indicted on 40 counts of child molestation, spoke with NBC's Bob Costas and denied that he is a pedophile. The Factor asked two defense attorneys whether Sandusky has a chance of beating the rap. "The first thing his attorney has to do," Eric Chase stated, "is to stop him from giving interviews. He said two terrible things in the interview - 'I enjoy the company of young boys' and 'I love being around them.' The prosecutor will try to get that played in front of the jury." Nicole DeBorde theorized how Sandusky's laywers will proceed. "The defense team is going to investigate by interviewing witnesses so they can try to find out whether the allegations in the indictment are correct. You start to pick apart at the details and you start to find out where the errors are."

Guest: Charles Krauthammer

Newt Gingrich has catapulted into the top tier of Republican contenders, but can he win the nomination? The Factor posed that question to FNC analyst Charles Krauthammer. "Back in April I had Gingrich at 12 - 1 odds to win," Krauthammer said, "and right now I'd say his odds are not much better. He's got baggage, and I'm not talking about the personal stuff, I'm talking about the ideological heresies. In the 90's he supported an individual mandate for health care, and a few years ago he cut an ad with Nancy Pelosi about global warming being a real threat. I think he's going to have problems talking his way out of that."

Sue Danner, Spring, TX: "Bill, you say you don't want to convict anyone on TV but that is exactly what you did to Jerry Sandusky."

Dan Blaydon, New Freedom, PA: "Bill, I was disappointed that you concentrated on students who were violently supporting Joe Paterno. An estimated ten thousand Penn State students attended a vigil to support victims of child abuse."

Wayne Curtis, St. Augustine, FL: "Mr. Factor, any institution like Penn State most likely has unwritten rules that anything that happens in the Athletic Department, stays there."

Marcia Wahl, Prince Frederick, MD: "Penn State makes $70 million from its football program. That's why nothing was said."

Tuesday's Patriot: Actor Michael J. Fox, who certainly didn't look like he has Parkinson's Disease when he whipped out his guitar for a stellar rendition of "Johnny B. Goode."