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Glenn Beck

Fannie Mae, Freddie Mac Headed for Takeover?; Russia: The Return of the Evil Empire?; Texas School District to Allow Teachers to Carry Guns

Aired August 19, 2008 - 19:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(BEGIN VIDEOTAPE)
GLENN BECK, HOST (voice-over): Tonight, Fannie and Freddie, on the ropes. Gee, who would have seen this one coming? How long until the government has to bail these two mortgage giants out?

Plus, billionaire oilman T. Boone Pickens met with Obama and McCain, and now he meets with me. We`re talking about his plan to fix our energy crisis.

And, binge drinking on campus. It`s as common today as loose-lipped liberal professors. Tonight, we continue our series, Life on Campus. With a look at whether a new plan to lower the drinking age just might help. Only a professor could say yes.

All this and more, coming up.

(END VIDEOTAPE)

BECK: Hello, America.

As a kid that was riddled with ADD, I wasn`t really the best helper my dad ever had at his bakery. He put me in charge once in a while of watching the chocolate-chip cookies bake, and about four seconds later, I was completely distracted by -- is that frosting over there? Or, you know, just playing with the pastry bag.

Wasn`t until the smoke alarm would go off, you know, that I would realize, oh, crap, I was supposed to be watching the cookies. The reason why I tell you that story is because it leads right into "The Point" tonight.

America, you ever think we`re a lot like, you know, I was in the bakery? Just an ADD-riddled nation, so distracted by the latest news that we lose sight of fixing our biggest problems. And the biggest problem: still our economy. Here is how I got there.

While shiny objects like those -- like those hot women playing volleyball at the Olympics -- I mean, I`m just saying. Or how about today I saw the guy trying to wind surf in the tropical storm. What a dope that guy is. While that diverts our attention, our economy is starting to catch fire. And I don`t mean that in a good way.

I can rattle off, you know, a ton of stats to prove it, like how new housing starts are off by the most in 17 years. Or that wholesale prices are up nearly 10 percent, the highest rate since Reagan took office. I could, you know, give you dire warnings from experts like the one out today from the former chief of the IMF, who says, "Oh, yes, worst is yet to come." Oh, that doesn`t sound good.

Or, quote, a whopper of a big name bank could go under soon. What?

I could even rattle off the names of all of the companies that might be in big trouble. Like Lehman Brothers, Merrill Lynch, Wachovia, and of course, Fannie Mae and Freddie Mac. Both, which are down over 90 percent in the last year and over 20 percent since yesterday. That`s when Barron`s suggested what most of us already know: a government takeover for those companies is inevitable. Grab your wallets, gang.

But I don`t need to tell you any of that stuff. Because what you really need to know tonight is something you already do know. The fundamental problems that have got us into this crisis haven`t gone away. Sure, oil is down, dollar may be up, but so is inflation. So is debt, so are foreclosures, and the number of politicians who believe that the government can and should save us, through the roof.

I don`t want to be Mr. Doomsday. That why I won`t point out, you know, that the evil empire is back until the next segment. But I also don`t want to be the kid that I once was, you know, the kid sitting there with frosting on my face while the cookies were burning. What?

Stephen Moore is the senior economics editorial writer for "The Wall Street Journal," and Jonathan Lange is the senior editor at Barron`s.

Let me start with you, Jonathan. I mean, you hate-monger, you. You bank destroyer, you. What did you write yesterday that caused Fannie and Freddie to lose 20 percent?

JONATHAN LANGE, SENIOR EDITOR, BARRON`S: Well, basically we wrote what everybody knew and didn`t want to say, that both organizations are busted. If they had to liquidate tomorrow, you probably would have about a $50 billion crater at both institutions.

BECK: What is that going to mean to the American people? I mean, they hold, what is it, $6 trillion of America`s mortgages? How much of this is the American people going to be responsible for this time?

LANGE: Well, I would say that they probably will -- probably end up having to fill that $100 billion hole that we see. But in a way, Glenn, we`d be better off, because we would get them out of the speculation business that created this hole, and get them doing the right sort of thing by a semi-nationalization.

BECK: OK. Let me go to Stephen Moore.

Stephen, you and I agree on, jeez, get the government out of business. They suck at all of it. We`re talking now about nationalizing these. Is there a way to let these things fail and then close them down and sell these loans back to the private sector, or does the taxpayer get screwed in that option, too?

STEPHEN MOORE, "THE WALL STREET JOURNAL": Well, that would be music to my ears. You know, I`ve been railing against these agencies, Glenn, now for 20 years, warning that this day would come, that when you create these entities that have private profits, but also a pipeline of money from the federal treasury, it`s a bad combination. And that`s what we`re locked at right now.

And remember, when you and I talked about this a few weeks ago, when Congress pledged to them $100 billion in bailout money. Guess what? They need that money right now.

BECK: Yes. No, but you remember, Stephen, when we talked about it? It was like, "Oh, no, it`s a very small chance." You and I are both like, right.

MOORE: Well, it lasted about two weeks.

BECK: Yes.

MOORE: Before they needed the money. But I think the end game here should be, give them the money, because the money`s already in the pipeline. But either run these things out of business once and for all, or turn them into private entities, let them survive in the free marketplace.

BECK: Jonathan, you`ve been following these guys forever. Let me ask you this. If I see a freaking oil company CEO up on -- up on Capitol Hill in front of Congress one more time without seeing the people who run Fannie and Freddie and who have run it into the ground over and over and over again, and you know what? A people`s court for these mysterious regulators that didn`t do their job. Doesn`t Congress -- don`t they have a role in regulating Fannie and Freddie? How come we`re not having massive hearings on the people who ran this -- these companies into the ground?

LANGE: Well, let`s look at three of the top people. The current head of Fannie, Daniel Mudd, has knocked down about $42 million in the last four years. Dick Syron, head of Freddie, has knocked down about 38.

And then you go to Frank Raines, who -- you know, led the Titanic in the old days, and he knocked down over 90 in total compensation.

But this one, and I know this will be music to your ears, Glenn, this one is really a -- this problem is a creation of the Democrats, who have protected and enabled these people forever and forever. It`s their fault.

BECK: You know what, Jonathan? I really wish I was a partisan guy to where it was music to my ears, but I`m an American. And I don`t care who - - I`d vote for a Democrat like that if they started to just turn the tide and say, "You know what? I care about my kid`s future. I care about your kid`s future. I`m not going to bull crap you anymore. We`ve got to stop spending everything into oblivion, and we`ve got to stop this trend to socialism."

What is going on?

MOORE: You know, the reason why there was no whistle-blower here, Glenn, is that these CEOs, the companies themselves, their foundations, were passing out money in Washington like it was water.

BECK: Oh, I know. I know.

MOORE: So, everybody was bought off. They were the biggest campaign contributors to politicians. So none of them wanted to blow the whistle. No one wanted to say that the emperor wears no clothes.

BECK: Let me tell you guys. You know, do either of you guys think that -- I was going to say, do you think I`m insane. But the answer would be a quick yes. Let me ask you this. Any truth to this theory at all? If you look at what our government is doing, they`re talking about, "Oh, it`s too big to fail." Or, we should nationalize these.

We`re looking at the financial, energy, transportation and health care sector. The only thing you have to do is stop all dissent, which would be, let`s put the Fairness Doctrine in and have it cover the Internet, as well. I mean, good heavens. We`re in a very dangerous area here, and nobody seems to be waking up that we`re going down a road we shouldn`t be going down.

MOORE: You know what`s so frustrating about this, Glenn, is you`re exactly right. All of these industries that are failing -- the airlines, the big three auto companies, many of the health care companies, anybody -- we bail them out. But any company that makes, actually, any money, like the oil companies, it`s evil profits. So you know, on the one hand, if they lose money, they get a bailout. If they make money, then it`s evil profits. You can`t have both.

BECK: Jonathan Rogoff (ph), who used to be the head of the IMF, he said there`s a whopper about to fail in the banking industry. What is -- any idea -- I mean, I don`t want you to speculate and, you know, do what you did yesterday. But what do you think it might be, and what does America look like a year from now, if we don`t turn -- turn this corner?

LANGE: Well, we`re going to turn the corner. That`s not a problem. You know, during the Depression, there were laws passed in various places, with financial institutions. So, I don`t want to give the individual names and create a death watch...

BECK: Do you have a -- do you have a gut? You don`t have to tell me the name. I prefer that you didn`t. Do you have -- do either of you -- without saying the name, do you have a pretty good read on who you think that might be?

LANGE: I think...

MOORE: I have one idea. I think there may be another couple of Bear Stearns situations, Glenn. I would simply say that`s not the end of the world.

You know, back in the late 1980s, we had something like 1,500 bank failures. Now mostly those were smaller community banks. But the main point is, that the banks that are contaminated, that have no net value, get them out of the system. Don`t bail them out. That`s the way capitalism works.

BECK: Yes, I don`t understand how we can...

LANGE: I...

BECK: Go ahead.

LANGE: Glenn, I would say that we`re probably looking at maybe one major firm on Wall Street, which I won`t name. And maybe one savings and loan, which I won`t name.

BECK: OK, all right. I have to tell you, I don`t understand how you think you can gain something in America without any pain, and we`re trying, our government is trying to make it feel like no one feels any pain anymore. Mistakes were made. Let the system feel the pain.

Steve, Jonathan, thanks a lot.

Coming up, the evil empire is back, and they`re as ruthless as ever. The latest reports out of Georgia are saying that Putin and company have unleashed Chechen mercenaries on the local population. We have the details coming up next.

Plus, all the tree-hugging lefties -- oh, yes -- they`re demanding that we increase our use of alternative energy. OK, that`s cool. But then they refuse to make any concession necessary to make it available to you, like running a power line. That`s tonight`s "Real Story," coming up.

And a vicious attack on an elderly woman in an elevator is caught on tape. Police say they`ve seen this guy around before. Stick around and find out what this scum bag has been up to lately.

(COMMERCIAL BREAK)

BECK: Coming up, his plan will have America generate over 20 percent of its energy from wind, solar and other alternative sources. He`s been, you know -- been talking to presidential candidates. He`s got both of them listening. Legendary oilman T. Boone Pickens joins me to talk energy solutions in tonight`s "Real Story." And I`ve got to kind of pin him a little bit, because I`ve heard a lot of people not ask him any tough questions. We will, tonight.

But first, NATO foreign ministers met today in Brussels and accused Russell [SIC] -- Russia of deliberately destroying civilian infrastructure in Georgia. Russia, being the classy country they are, responded by saying, we can no longer cooperate with, quote, "an organization which works with criminals," end quote.

I mean -- Russia? I mean, I`ve seen the evidence come out here. I mean -- you`re the one working with criminals here. You know?

You know how some idiots think that, you know, they can just hire somebody to kill their spouse and "it`s not as bad me killing my wife." Russia seems to be under the same sort of impression. Instead of using their own troops to commit the worst atrocities in Georgia, they may have just outsourced it.

Ralph Peters, he is a retired Army lieutenant colonel and the author of "Looking for Trouble: Adventures in a Broken World." He broke this story in "The New York Post" in his column yesterday.

Ralph, who are these troops? Who do you claim they are?

RALPH PETERS, AUTHOR, "LOOKING FOR TROUBLE": Well, it`s not a claim; it`s a fact, proven by photographs taken by Russian photojournalists in Georgia. These guys belong to what`s called the Vostok, or East, Battalion. Under the control of the Yamadayev brothers, who are the biggest gangsters in Chechnya.

They are Chechens who live outside even Chechen law. They`re essentially Russia`s mercenaries, who sided against their own people in the Chechen war. They are so brutal that Russian and Chechen human right organizations have lodged numerous complaints about them.

Last spring, after a massacre shoot-out in Chechnya in the city of Gudamesk (ph), the Russian puppet president of Chechnya begged the Russian military to disband this paramilitary organization, these kind of thugs. And the Russians couldn`t do it.

BECK: OK. So, tell me about these pictures. Why do you know -- they look like soldiers to me. Why do you know in these pictures who these guys are?

PETERS: Glenn, I`m not sure which pictures you`re looking at, but the ones were -- that I got last weekend that we talked about in "The Post" had, first of all, they were bearded guys who look like Chechens. That`s not proof. They were on Russian-provided armored vehicles. That`s not proof.

But these guys had painted in whitewash letters on the sides of their vehicles in the back, that they`re Yamadayevsi (ph). That means "We belong to Yamadeyev, the Yamadeyev brothers." They painted "Chechnya." They painted the word "Vostok," the name of their battalion.

BECK: OK.

PETERS: So we knew. They told us who they were. Two reasons, Glenn. One, they wanted to terrorize the Georgians, who are terrified of these Chechen thugs, and two, they didn`t want the Russians to shoot them by mistake.

BECK: Is this -- why are they afraid? Why are the Georgians afraid of these guys?

PETERS: Well, the Chechens have the reputation of being the worst thugs in a really bad neighborhood. And there is a -- an ancient Muslim- Christian divide. The Chechens are Muslims. Not these thugs are not good Muslims. They`re bawdy (ph) drinkers. They`re party boys. They`re wild men.

And nonetheless, it goes back a long way. I think it`s interesting that Russia, that pretends to be the third realm and the champion of the Christian west, turned at least nominally Muslim gangsters loose on Georgian civilians.

BECK: So tell me, because I just found this out from your column, as well And I didn`t know this. The Russian word for this operation, the code name for this operation means?

PETERS: (speaking foreign language)

BECK: Means?

PETERS: Scorched earth.

BECK: What does that tell you?

PETERS: Well, I think that tells you -- I mean, literally, it means clean field, but in Russian military parlance, it means scorched earth. And that will tell you exactly what Putin is trying to do to Georgians. He isn`t liberating anybody. He`s not preventing any imaginary genocide. He is punishing Georgia for its love of freedom and its pursuit of democracy and relations with the west.

BECK: OK, so, now that we have -- now that we have Poland being threatened by Russia, because they`re going to put in the missile shield. You have Ukraine, NATO came out and said this. I mean, I don`t even understand what he was talking about when he said, you know NATO -- "I can`t work with an organization that works with criminals." Do you know what that meant?

PETERS: Yes, I do what it meant. From the start of this operation, the Russians have run a masterful propaganda effort against the western media, western governments. From the very start, Putin and company were accusing the Georgians of doing to the secessions (ph) exactly what the Russians planned to do to the Georgians.

Putin used code words like "genocide" and "response." And what he`s doing now, the Russians are sending gangsters in to kill innocent people in Georgia, and they`re just doing exactly the same thing to NATO as they did to Georgia. Accuse NATO of doing wrong.

BECK: So, what`s next, do you think, Ralph?

PETERS: Realistically, the Georgian people are going to continue to suffer. Russia is going to continue to devastate Georgia`s economy. The Russians may stage a theatrical troop withdrawal, but they will leave units like this Chechen battalion in place, harassing the Georgians, and the Russians will claim they`re patriotic...

BECK: Really, they`ve really learned a lot from the last five, six years of how the bad guys use and manipulate the U.N., don`t you think? Just play the game.

PETERS: Oh, yes. Absolutely. The Russians have studied how Europe - - how Europe tries to deal with Iran, for one example. The Iranians know that the Europeans can always be put off with one more piece of paper.

And so, last week, Vladimir Putin and Medvedev, his doggy boy, were perfectly willing to sign a cease-fire to get Sarkozy to go away and get back to his personal operetta in Paris. But it meant nothing.

The Russians -- Putin is brilliant. He understands western preconceptions, western weaknesses and failings, and he understands the power of brute force.

BECK: OK. Ralph, thanks a lot.

PETERS: My pleasure.

BECK: Coming up, could the Virginia Tech tragedy have been prevented? One school district in Texas says yes. And they`re arming their teachers to do so. That`s next.

Plus, we continue our weeklong series, "Life on Campus" Tonight`s focus, binge drinking and sex on campus. You know, there`s actually talk about lowering the legal drinking age so colleges can monitor alcohol consumption on campus? Parents, if you`ve got somebody going to college, you need to stick around, and your eyes will be opened. It`s coming up.

(COMMERCIAL BREAK)

BECK: The school shootings at Columbine and Virginia Tech, terrible, terrible tragedies, but I and many others believe they would have been prevented if some professors or teachers or, even in those cases, some students, at least in the Virginia Tech case, would have been armed.

One school district in north Texas apparently feels the same way. Officials at the Harold Independence School District will now allow teachers and staff to carry concealed firearms on campus. The district is about 30 minutes away from the local sheriff`s office, which they say -- that leaves them completely unprotected.

There are requirements, of course. A teacher must be authorized by the district, must have a handgun license, and I`m hoping also must not be crazy nuts.

David Sweet is the superintendent of the Harold Independent School District in Texas.

You`re either laughing because you`re crazy nuts or you agree with me.

DAVID SWEET, SUPERINTENDENT, HAROLD INDEPENDENT SCHOOL DISTRICT: I agree with you 100 percent or we wouldn`t have done it.

BECK: Right. All right, so, just blanket policy now, no crazy nut people working at the school district.

THWEATT: Right.

BECK: Yes.

THWEATT: And, you know, the best -- the best thing I could say about this, Glenn, is I have my own children in that school. I would be crazy to put -- I trust them with my own children.

BECK: OK. You`re getting quite a bit of flak and pushback here. I love this one. The president of the Houston Federation of Teachers, the union, says, "This policy is an embarrassment, and it is the stupidest move that I have seen done in public education." That`s a quote.

THWEATT: Yes, that particular quote is interesting to me. And you know, unqualified quotes, Glenn. Anybody can make a statement. The only thing I can say to that statement, and I have to say that`s the stupidest quote I`ve ever heard in the history of quotes.

BECK: Well, have you had any pushback from -- why would the unions be against this?

THWEATT: No, I think that this particular individual likes to hear herself talk. She`s not an expert in security. She`s not a -- she`s a person who spent the last 25 years with the union, fighting against administrators for teachers who probably need to be getting out of the classroom. That`s why Houston has all its problems with cheating...

BECK: Yes.

THWEATT: ... et cetera, et cetera. You know what? We have the same population, type of students as they do, but we`re a recognized state school, and they`re not.

BECK: All right. OK. Tell me, because their argument is, well, now, the kids, kids will be kids, you know, they`ll just run behind the teacher and grab their gun.

THWEATT: You know, what I find fascinating about those arguments is this. First of all, there`s guns all over schools with security guards and resource officers, and they`re in open holsters. Here`s the kicker. We are concealed. We`re not telling them who they are.

And so, it would be like somebody attacking a teacher, and then trying to take off their underwear, you know? It`s not happening. It`s never going to happen.

BECK: I just love...

THWEATT: We call it the air marshal plan.

BECK: Right. You know what? Can I tell you something? America, this is why you need to live in Texas. You really do. You need to live in Texas. Because as Davy Crockett said, "You can all go to hell. I`m going to Texas."

THWEATT: That`s right.

BECK: Do you have any teachers there in the school district that are saying, "I`m uncomfortable with this"?

THWEATT: No. No, we don`t.

BECK: You can all go to hell, I`m going to Texas. You see what I`m saying?

Best of luck to you, sir. Thank you very much, and keep the school safe. Thank you.

THWEATT: Thanks, Glenn.

BECK: You bet.

Coming up, one of the richest men in America, betting $58 million of his own money that he can change public opinion on alternative energy. His name, T. Boone Pickens. He`ll be here in a second. "The Real Story," next.

(COMMERCIAL BREAK)

BECK: Coming up, presidents of some of the top universities here in America are calling for lawmakers to lower the national drinking age to 18; the reason? They say it`ll cut out on binge drinking. Yes.

I think the reason is they don`t want to be liable. They don`t want to have an attorney going, "Wait a minute, they were breaking the law." No, no, no, it was legal. That`s what this is all about. We`ll tell you about it in just a second.

But first, welcome to "The Real Story."

Now the price of oil may be going back down, but it`s starting to look a little like some groups are still committed to this whole energy thing, you know alternative energy?

Just last week, Pacific Gas and Electric announced that it will buy enough solar generated electricity to power 239,000 homes. Now, that doesn`t sound like an awful a lot to me, but this deal, this one deal, will nearly double the nation`s solar capacity.

Even the government seems to be getting the message here. The Department of Energy is exploring far offshore wind power. Low estimates say it will produce twice as much electricity as land turbines. High estimates say it could produce as much electricity as all of the nation`s existing power sources combined.

But because of red tape, these options oh, they`re going to take ten years to develop. Ten years. Well, that`s not even worth doing.

I love using that on the greenies. Anyway, the "Real Story" is, the technology isn`t the obstacle here. The alternatives are there. The obstacle is "Not in my backyard." That mindset, you love that, don`t you? "Not in my backyard."

Democrats and greenies are suddenly skeptical of wind turbines because they could endanger wildlife, or, if you are part of the Kennedy family, it`s because "Oh yes I can see specks of those ocean turbines from my beach house.

They block the construction of transmission lines which take the electricity from these sources in the desert or in the middle of the ocean to places like, I don`t know, your house; because those lines will damage the environment.

In California, hundreds protested a line connecting solar panels to Los Angeles. Now, I`d like to show you the video tape of that protest, I asked. But -- why would anyone in the media actually bring a video camera to something like that?

Lobbyists are now trying to block a line to San Diego, because it would cut through a state park. So, let me see if I have this right. The green mob wants us to stop using foreign oil; won`t let us replace our own oil. And then they won`t let us use sunlight or our own wind.

Is there some sort of magic energy bean that I just don`t know about? I`ll trade you my cow, mom.

Fortunately, the average person is more and more willing to sacrifice a few little fishies and birdies. You know putting them out of step with the green Nazis and their special interests.

Much of this change in opinion was from the rising price of gas but former oilman, T. Boone Pickens is also leading the crusade to get on to alternative energy and get it into the main stream. He`s mounted a $58 million campaign. I mean you can throw me a million bucks, I mean I`m just saying.

He`s promoting what he calls the Pickens plan. It calls for the U.S. to generate 22 percent of its energy from wind and other alternatives. Last week, Pickens met with John McCain and Barack Obama to discuss energy solutions. Today, he was at the National Clean Energy Summit, organized by Senator Harry Reid, and he`s now with me.

T. Boone Pickens, CEO of BP Capital and author of the "First Billion is the Hardest." No not really, not really. How believing it`s early in the game and it can lead to life`s greatest comebacks.

T. Boone, how are you, sir?

T. BOONE PICKENS, BP CAPITAL CEO: Great, Glenn, and how are you?

BECK: Very good.

You were with me three months ago or so and I don`t know if we have this up in the screen. You said here at my table, and you said, Glenn, this is the way we solved it and this is before you introduce your plan. And you drew it out for me.

There it is, in your chicken scratch. Where are we now? That was three or four months ago, here on my set. Now, you`ve introduced it. What progress have we made?

PICKENS: Ok, I introduced it on July 8th, and that was pickensplan.com. We`ve had over 4.5 million visitors to that Website. We consider it to be a huge success at this point. There is no question.

Now, I`m doing town hall meetings, and I`ve had four of them so far; one in McAllister, Oklahoma; one in Colorado; and Topeka, Kansas. Tomorrow, I`ve got Fargo, South Dakota, Sioux City. And so but they`re packed.

BECK: Well ok, but here is my point.

You -- the people want this kind of stuff. But you still have -- you still have people, like, Ed Rendell, he was all for solar panels, let`s build these turbines. But now, he`s trying to, in Pennsylvania, overturn the law for the transmission lines.

How do you get anything done with this government at every level, and these environmentalists, stopping common sense things? You want clean energy, good, here it is, give me the power lines to move it from the middle of nowhere to my house.

PICKENS: Ok. What`s happened, Glenn, is that this is a nonpartisan issue. And both sides will say they want the production tax credit to promote the windmills and the solar. And when both of them say it`s a nonpartisan issue, you can bet your life something`s going to happen. And they are going to pass the right kind of legislation.

What they need to do is to give corridors out of the wind area, which is the central part of the United States, to the East and West Coast. I think that`s coming.

Second, they need to get natural gas over to a transportation fuel, and that`s coming too.

BECK: Why haven`t we done that yet, T. Boone? We can run --

PICKENS: I`ve got the answer. The answer, ok is cheap oil. You had cheap oil, and no leadership. And so, we sat here and just continued.

If you go back to 1970, we were importing 24 percent; `91, 42 percent. At the end of the decade, 60 percent, and now we`re almost 70 percent.

And so, the oil was cheap. Now, the price went vertical. And that`s when I, the crowd came to me, when I came up, I said, look, I`ve got it analyzed. I can tell you what the energy situation is, and I have a solution.

BECK: Ok. Here`s the -- there`s two things that I want to talk to you about.

First is -- you say you have this solution, but I read an article on you a couple of months ago, it`s after we met. And I read this article, and it was, you`re the oil king now. You are the Saudi Arabia -- not oil. You`re the Saudi Arabia of water.

And you bought into the aquifer down in Texas, which basically if you have a big enough straw, you can take all the water from the heartland and everything. I mean you are the largest owner of water in the world. That kind of -- spooks me a little bit. I love you --

PICKENS: Are you ready for my response?

BECK: Oh, yes.

PICKENS: The transmissivity (ph) of water is very slow and I don`t --

BECK: If I knew what that meant --

PICKENS: It doesn`t move -- it moves very slowly, because it`s shallow, and you don`t have an overburden on it, so there`s no pressure, so, it`s very slow to move.

And I`m in a county of 565,000 acres, and that county has, it`s in rolling hills, so, we can`t irrigate.

So what we have, I`ve taken my neighbors as partners with me, and we all would like to sell some water to Dallas, Fort Worth. It`s that simple.

BEKC: Okay. The next thing is, wind, you`re all up, you know, on wind, yet, do we have the storage capacity? Do we have the -- the batteries to be able to store the wind power?

PICKENS: Not yet. But listen, there`s plenty of wind going on. Germany`s the most highly developed for wind. Spain, the Danes. We have Texas is the largest wind producer right now, California second, Iowa third. I mean, this is happening right here. It will work.

BECK: Right, but -- but you have -- you have problems with all of those countries have problems with the turbines stopping because the wind stops blowing.

PICKENS: You have backup natural gas which we have in abundance in America. That`s the beauty of our situation on the energy in America, is we have an abundance of natural gas. And see, the thing about it is, we have not capitalized on that.

BECK: Yes. T. Boone, I have to tell you -- I`m going to be a skeptic here, but I`m not going to tear apart anybody who`s trying to move forward because I know too many clowns in this country not doing a thing.

Thank you for doing what you`re doing. I appreciate it.

That`s tonight`s "Real Story."

Coming up, some of America`s top college presidents want to solve college binge drinking by -- wait for it -- making it easier to buy alcohol. See, that`s why they run a college. You`re just a dumb, dumb, dummy like me. Life on campus, coming up.

(COMMERCIAL BREAK)

BECK: Warning, America. I`m about to make blood shoot right directly out of your eyes, if you`re wearing, glasses take them off or remove the contact lenses.

Apparently, quote, "culture of dangerous clandestine binge drinking has developed on college campuses," end quote. It`s actually true.

So, a group of these college presidents, some from the country`s top universities, have gotten together, and they think it`s a good idea to lower the drinking age to 18. Yes.

You know what this is? All this is, is -- the colleges don`t want to be liable at all for anybody drinking. That way, they wash their hands of any liability. Well, it was legal for them to drink.

Can we please get a handle on what life is like on the campuses around our country today? Cassie Debenedetto is the founder and executive director of the Love and Fidelity Network in Princeton, New Jersey.

Hi, Cassie.

CASSANDRA DEBENEDETTO, FOUNDER, LOVE & FIDELITY NETWORK: Hi, Glenn, how are you?

BECK: Very good.

Let`s just talk about what life is like on a college campus now.

First of all, do you agree or disagree that -- the only reason why these universities want to lower the drink age is so they could wash their hands of liability.

DEBENEDETTO: Well, you know, I think that they are probably misdiagnosing the problem here. The real problem that students are facing right now is the extreme pressure to behave, you know, to a certain set of standards.

One of which, you know, being, to go out and get drunk on the weekends, to binge drink. So, before we even start talking about what age it should be legal for students to start drinking, we should really be thinking about the type of mentality that they have going into a college campus or such social situations.

BECK: That`s why we`re doing this series this week because I have two daughters that are going to be in college. I have to tell you -- just the -- the hook-up culture, alone, all of this white hair on the side of my head it`s all going to be over the top of my head by the time my two girls get out of college.

The hookup culture; can you explain it all what campus life is like today?

DEBENEDETTO: Sure, well -- you know, I actually remember reading something about how students, when they enter into the college environment, they actually think that a lot more people are going out and hooking up on the weekends than is actually the case. They think that people are going out, you know, and --

BECK: You can say it -- having sex.

DEBENEDETTO: Yes, basically, having sex; any sort of sexual intimacy that takes place outside of a relationship. So, students are assuming that this is happening a lot more than is actually the case, and that students are enjoying it a lot more than is the case.

BECK: I just saw a stat, and I think it came from Princeton, that 91 percent of girls in universities who have participated in the hookup culture, regret it. They wish it would have never happened. True or false?

DEBENEDETTO: I would say more often than not, that`s true. I think it`s especially for young women, they have this, you know, natural capability to bond during sex, to bond in any sort of relationship, and so, or any sort of intimacy, whether a relationship exists or not.

And so the thing is, women think, though, that if they start to feel some sort of connection to this person, even if it`s just a casual hookup, that something is wrong with them because that`s the norm out there. They assume that people are just going out and having sex without any consequences.

BECK: Cassie, I talked about this a little bit on the radio show today. And somebody called up and said, well, you know, it`s going to happen anyway, and I said, well, a couple of things.

First, it`s going to happen if we expect it to happen. Let`s raise our standards a little bit. The second thing is one reason why I have been so frank with all the mistakes that I`ve made in my life is because I realized that I`m not alone.

That you may not have made exactly the same mistakes that I`ve made, but you`ve made your own mistakes and you`re hiding them because you think I`ll think you`re a bad person and vice versa.

When people actually talk to each other, and if you`re in college, you think, well, I got to participate, because everybody is enjoying it. You`ll find, correct me if I`m wrong, that a lot of people on campus are also just going along with it and hate it.

DEBENEDETTO: Yes, I`d say exactly. And the thing is that a lot of university administrators need to realize that too that -- I feel as though when they put together these sexual health programs or the freshmen orientation programs, that they are actually very unaware of the body of students that they`re reaching. And that there are actually a larger population than they think that there are of students who feel estranged by these programs or students who actually don`t find any enjoyment in these sexual unions.

BECK: Right. I just have to just show you before we go. I have to show you the chlamydia doll that they use. There you go. The pox, the clap. That`s great. Cassie, thanks a lot .

DEBENEDETTO: Ok, thanks, Glenn.

BECK: By the way, if you like any more information on what college life is really like these days and what to do about it, sign up for my free e-mail news letter. All this week, we have some of the most brilliant professors and brilliant students sharing their personal stories from our "Life on Campus" series.

You can only get it by signing up at glennbeck.com. Do it now.

Time now for tonight`s "Real America," brought to you by CSX.

For over two centuries, "Taps," the tribute paid to our fallen troops, has been played by buglers at military funerals. Well, now, it`s in trouble but one Chicago veteran fears that it is going to become a thing of the past. And he`s on a mission to make sure that it doesn`t.

(BEGIN VIDEOTAPE)

TOM DAY, FOUNDER, BUGLES ACROSS AMERICA: It`s the hardest 24 notes that a horn player can play.

BECK: Tom Day is retired. But you wouldn`t know it. Two or three times a week, he travels to attend a funeral for a veteran. Why? To play live "Taps."

DAY: You can`t even pay a person enough money to replace the handshakes, the hugs, and the kisses that you get from the family after you do the service.

Under federal law, upon a family`s request, every veteran is entitled to military funeral honors, which include the playing of "Taps." But the military can`t send a live bugler to every funeral, so, it`s been replaced by a recording.

DAY: Sometimes they wouldn`t have batteries. Sometimes they play the wrong song. Sometimes that particular unit didn`t have a CD player.

BECK: So Day founded "Bugles across America," a volunteer organization; his mission, to recruit trumpeters to give vet as dignified farewell.

DAY: Our youngest horn player is 12, and our oldest is actually 102.

REX SIRON, BUGLER: I see it as kind of honoring them for, you know, being here and whoever fought and died for the country, and I feel honored to be playing for that funeral, playing "Taps."

Currently, Day has 6,000 horn players in his registry that will do 2200 military funerals every single month. But Day feels there`s still more work to do.

My goal is to have enough buglers so that a boom box or a fake bugle is never used again. And everybody, every veteran has the opportunity to have live "Taps" at his or her funeral.

(END VIDEOTAPE)

BECK: By the things that go on, you just don`t have any idea that they`re actually happening.

If you want to request a bugler in your area, just log on to buglesacrossamerica.org and the service is completely free.

Tonight`s "Real America" sponsored by CSX, it`s how tomorrow moves.

(COMMERCIAL BREAK)

BECK: Well, if you thought that John Edwards had the "Dirtbag of the Year" award wrapped up, hold on, there`s a new competitor now that wants a shot at the gold. Unfortunately, we don`t know his name yet, but luckily we have him on camera.

Lillian France, she`s an 85-year-old retired seamstress. She went to the bank the other day; she wanted to pull out a rather large amount, it was $900 in cash. When she went back to her apartment building, she got into an elevator with a man who nicely pressed the fifth floor button for her.

When they got to the fifth floor, he told her, this is your floor and then this happened. He is about to grab the elderly woman by the throat from behind because, I mean you wouldn`t want to take the chance of a fair fight with an 85-year-old. What a real man here.

Her arms are flailing around, he lifts her up off the floor, holds her there until she passes out. Then he not only steals her money, he also steals her glasses, her cell phone, social security check, Medicaid card, and even her cane. He actually runs out the front door with her cane in his hand. The victim is recovering and it looks like she`ll probably be okay.

But now, the police have released the attack video so you can help identify him. He`s apparently done this before. It zooms in on his face, there it is. So we should be able to get a good look, but unfortunately -- can I tell you something?

If you`re going to go through the troubles of putting cameras in your building, can you spend a few extra bucks to get the good quality model? This should be a story where the system works.

Here we have the criminal on tape, we can digitally zoom in on his face, and we still can`t tell who the guy is because it`s too grainy. When you can`t even immediately catch a criminal that is so dumb that he walks into a building with no disguise, in broad daylight, on camera, but you can`t catch him because you can`t get a look at his face, maybe it`s time to pay for the upgrade.

Maybe it`s just me.

If you want to send this video around so your friends can see this idiot and maybe identify him, I`ll put it in my e-mail news letter tomorrow.

And you can get more of the series of what it`s like for your kids to be on campus. It runs all week and it`s absolutely free.

Just sign up now for the free e-mail news letter at glennbeck.com.

From New York, good night, America.

END