be sure to send your questions or property stories at property men at fox news.com. check out our website at fox news.com/property manager. i'm bob massi. i'll see you next week. >> this week on the journal. editorial report. a massive government data breach claims its first political casualty. as the true magnitude of the cyber attack is revealed. so just how big a threat does it pose to personal and national security and what should the u.s. do about it? plus some much hyped sand or surge? is it real? does the vermont senator pose a serious threat to the clinton machine? and rick perry delivers a frank speech on race and opportunity as he and other republican candidates court minority voters. is it a message that will resonate in 2016? >> welcome to the journal

editorial report. i'm paul. the embattled chief of the federal office of personnel management resigned friday after it was revealed this week that a data breach exposed the personal data of more than 21 million government employees and contractors. not the 4.2 million the agency initially reported. here with a look at the extent of the hack and ow big a threat it poses to personal and national security is wall street journal columnist and deputy editor dan henninger and mary anastasia o'grady and brett stevens. mary how big a problem is this? let's start with the personal security issue. >> they ask all kind of things about their personal history. everybody has something that they did in college or they look

for relatives and neighbors that might say something that you didn't tell them. i think one of the big problems here is that that information might be in the hands of our enemies, but the blackmail problem gets really serious because there's stuff in that file that people don't want made public. >> we're talking 19.7 million background investigations. these are often called fbi full field investigations where the fbi agents go out and ask you, your neighbor your friends, people -- well tell us about mary o'grady. tell us about her. you know what kind of person was she? there can be -- this data is you know it's unvetted. it could be in there. it could be drug offenses for people. financial problems. marital issues. >> when he was still a senator daniel patrick moynihan wrote a whole book about this. part of the problem is that we have so -- we have decided that

so many peemt have to be to come under various classification -- have permission. so many people have to be -- we've created essentially this pot of intelligence gold for people like let us say, the governments in china or russia and elts where to exploit. part of the problem here is that the boundaries of the security states have grown so expansive that they're now netting 21 million people. we don't have -- we can't exercise control over numbers in a long. >> i would think these people would be inteelgtsed to a new social security number as well as access to know what the -- what the hackers might have on them. let's -- so if you were hacked say, you should have access to that total file. would you agree? >> i think so.

absolutely. the processing of that would be a tremendous undertaking, and probably opm would not be able to do it. the captain was assuring people back as far as june that they were on top of this. obviously they were not. i mean she's in charge of one of the most sensitive agencies in the government. what is her experience to run something like that? >> she was the national political director of barack obama's 2012 re-election campaign. she's also the head of something called the latina initiative. she's a politico right? >> right. >> that is the kind of person they have put in. >> this has been happening over and over again. the ri rs was hacked. the secret service has experienced a meltdown. last two years the veterans administration. what is going on inside the federal government? they seem utterly incompetent and it's become dangerous. >> what about national security?

how big a threat to not just individuals, but i'm talking about overall security in the united states. >> that's the point about the blackmail. i mean i think you have so many people who are exposed who are important in our national security work who are now, you know their personal lives are exposed, and some of them will not even have done anything but, like you say, social security numbers, the testimony of some neighbor that could be damaging to them. i think to brett's point, i think what et cetera really important here, not that it's going to matter in the end, but the federal government is just too darn big, and it's a monster now. it cannot control, you know this woman is going to be responsible for this particular breach but this government is just too much -- has taken on too much. >> is it an act of war, brett? is it an act of war? >> adversarial act. we have to respond in an adversarial way. we're not going to succeed by simply being on the constant

cyber defense. we have to go on cyber offensive, but also the chinese. >> the cia has taken a huge hit. they have to assume every one of those agents has been exposed. >> okay. all right. when we come back they're calling it the sander surge or the bernie boomlet. despite the media hype does the vermont senator pose a real threat to hillary clinton?

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washington. there are angry fwreeks frustrated with two weeks of bank closures and atm withdrawal limits leaving many cashless. negotiators in brussels try to hammer out a bailout. we'll take a look at how a deal ar lack thereof could be felt around the world. and just a few hundred miles away secretary of state john kerry is hoping to hammer out a nuclear agreement with iran. controversial negotiations are in the 15th straight day, and nearly two weeks past the original deadline. both sides have threatened walk away but do the threats mean anything? watch former ambassador to the u.n. john bolten. plus reports of ticket scalping for donald trump's speech on imgreg today in arizona. what trump's popularity means for the gop's chances at the white house. that's coming up at the top of the hour on "america's news headquarters." elizabeth and i will see you then. good mornings presidential frontrunner hillary clinton gave

her first national -- dusting off an old clinton campaign tactic and the vast right wing conspiracy for her troubles in the polls. >> nearly six in ten americans say they don't believe that you're honest and trustworthy. do you understand why they feel that way? >> well i think when you are subjected to the kind of constant barrage of attacks that are largely fomented by and coming from the right, this has been a theme that's been used against me and my husband for many many years. >> the interview comes as the media continues to hype a so-called surge by vermont senator bernie sanders. does the self-avowed socialist really pose a threat to the clinton machine? we're back with dan heninger. jason riley, an assistant editorial page editor james freeman. also joins the panel. dan, what's behind the bernie

sanders surge? >> well i would say what's behind it is a lot of dissatisfaction in the democratic party with hillary clinton. >> what's behind that? >> what's behind that? what's behind that is that in 2008 the democratic left took control of the party from the clinton machine, which owned the democratic party. >> and the person of -- >> and barack obama. they over the last six or seven years have come to run the democratic party. they do not trust bill or hillary clinton. they think that they will put one foot in wall street and one foot in the big money, which they have and they will not represent left wing -- the left policy agenda. >> how weird should healthing

hillary rodham clinton lg hillarying healthing be? >> i don't think she has much to worry about. he doesn't have the establishment support. he doesn't have very broad based support, so the polls show from -- comes from one of the whitest states in the country. >> 1% of vermont. >> there is a more anti-hillary sentiment here than pro-bernie sanders sent meant here. loo if he represents -- bernie sanders represents the liberal base which is the beating heart of the party now on the bottom era, james, doesn't that give him a shot perhaps to at least give her a scare maybe in iowa maybe win in iowa, maybe give her a scare in normal new hampshire? >> yeah. that liberal base that left wing base you might call it has gotten much bigger in the obama era as we've been talking about.

whenever a candidate is pulling 25%, 30% in polls in iowa and new hampshire, as bernie sanders now is i think it would be a big mistake to dismiss them as a nonthreat. especially if you are hillary clinton and given the liability that is she has a a candidate. >> what he can do and if there is reason for her to be concerned is that he can expose some of her vulnerabilities, and bring in a more -- or make the race more attractive to a more plausible candidate. maybe a john kerry or joe biden gets in because bernie sanders has exposed vulnerabilities of hillary clinton. i think that's her only deal reel -- >> why isn't bernie sanders himself -- okay. he is taking the risk of running. these other guys are sitting on the sidelines. the democratic party is the party leaders and so forth are going to get behind hillary clinton, and they --

>> he may win in iowa. he may win in new hampshire. he is not going to win in the rest of the primaries. he is not going to get more delegates than she does. you have the party control super delegates. the people who depend on the government distributing money in terms of subsidies and public jobs where the rubber hits the road are going to be supporting hillary clinton because she'll deliver it. bernie is an outliar in that sense. he is a birkenstock liberal who is just simply attracting those people and giving them sort of a day in the sun. >> how is he affecting hillary clinton's campaign so far, james? i would argue that his doing well in the polls is coaster finally to do her first interview. get out there. you can't stay behind a rope line forever. that's one of the affects. what else? how else is he affect sng. >> so far he is pressuring her to move left. i think we're going to find out monday just how much that pressure has impacted when she rolls out her economic plan in a speech. now, she said this week on cnn

she wants economic growth to be faster and fairer. now, we like the faster part. i think compared to the obama era, where it's all about pumping up financial assets and stagnant wage growth for the people at the bottom i think a lot of people might like the fairer part too. it depends on the details. whether bernie is forcing her to the left or perhaps the center we'll find out. >> do you agree with jason that he could force somebody else into the race maybe? a biden or john kerry? assuming john kerry gets an iran deal. >> she's vulnerable. >> ever hopeful james freeman here. when we come back despite donald trump's anti-immigration tactics, some gop presidential candidates are courting minority voters as they make the case for republican policies. is it a message that will

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that has an african-american president. president obama cannot be plowed proud of the fact the prevalence has actually increased under his leadership. >> former texas governor rick perry in a speech to the national press club last week making the case that republican policies have improved the lives of black americans. perry is not the only gop presidential candidate who was courting the minority vote this time around.

so can the gop expand its base in 2016? so jason, the press corps wants to talk about donald trump and his comments about mexicans but perry's speech was very interesting for a republican. what is he up to here? >> i think he is making the case that liberal governance has not done a lot for black america, and he says just look at the track record here. look at cities that liberals have run from chicago to detroit to washington, d.c., to baltimore and look how blacks are faring in these places. the big problem is poor political representation. >> and contrast that with results in texas. >> exactly. and he says they like to talk about income equality but they don't talk about the simple cost of living what zoning laws have done to san francisco in terms of driving -- >> high taxes. the difficulty of starting your own business and so forth. he thinks blacks would be better off taking advantage of our two-party system and he's right.

the left takes the black vote for granted, and he even criticizes the republican party for not doing more black outreach. it's very encouraging to see a republican speaking this way. >> dan, what do you think of this? i've long thought this is the way republicans should speak about a lot these issues because let's take education. a lot of these policies, democrats keep these kids in these horrible schools, denying them opportunity. that's a big opening for republicans, it seems. >> chris christie as governor of new jersey has spent a lot of time in black cities in new jersey making this argument in town halls. marco rubio and jeb bush are going to make the same argument. what they have to overcome the democrats are running totally on identity politics. they present an identity culture, blacks women, class. if you're black, if you're a woman, if you're gay, the republicans are against you and that's all you've got to know.

vote for us. >> and they need to polarize the electorate by gender and race. that's their strategy. turnout in those areas. this is also an opportunity i think, james. republicans should say, look we're the party that can transcend that. we have a message for everybody and that can be i think, for a lot of swing voters and not a lot of minority voters a plausible, popular theme. >> that's right. and virtually all of the non-trump candidates are making an effort. almost all of them certainly will be better than mitt romney was last time around in reaching out. >> who didn't even want to talk about that. >> or talked about in terms of hispanics, self-deportation and other such things. i think the big problem for hillary or any democrat is that the winning democratic coalition of the obama years is built on massive record setting turnout and black votes in the 93%-95%.

republicans don't have to improve much to create an enormous problem for her. even if she wins 80%, it's a disaster politically. >> republicans got 20% of the black vote they're going to win the white house. >> the other thing i think republicans should do and rick perry knew this don't go through the black establishment, the naacp, the al sharptons and so forth. take your message directly to black voters. and i also like the fact he didn't appeal to them as black americans, per se. he appealed to them as americans, talks about what unites us all, safe neighborhoods, good schools, jobs and so forth. >> is that going to transcend the arguments like the south carolina flag which is south carolina republican legislature and governor have now taken down? >> well i will not miss this flag paul but the fact of the matter is that taking down that flag is not going to eliminate one -- is not going to attack the black homicide rate. it's not going to narrow the achievement gap in school. it will eliminate one excuse

that the left will use for all of those disparities but other than that it's not going to do much. >> all right. thank you, jason. we have to take one more break. when we come back, hits and misses of the week.

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i don't plan on slowing down any time soon. stay strong. stay active with boost. now try new boost® compact and 100 calories. time now for hits and misses of the week. james, start us off. >> paul this is a miss to the washington subsidy that almost nobody needs. normally when the government wants to redistribute wealth it talks about some critical unmet need that wouldn't be addressed but for the subsidy. thanks to marcia blackburn and fcc commissioner mike o'reilly we're learning more about the life line phone program and research the government has been sitting on showing that only 1 out of 20 recipients of cell phone subsidies would not have phones if it weren't for the subsidy. we can say miss to the obama phone but some of his predecessors are responsible for the program, too.

>> this is a miss for obama secretary arne duncan who, like the president, has decided to send his children to private schools. now this wouldn't be a very big deal except for the fact both duncan and obama are adamant opponents of school choice, private school vouchers for poor kids. so i think we have a little bit of hypocrisy going on here. ted kennedy, the late senator from massachusetts, was also a proponent of public schools for other people. he never found one good enough for his own children. >> dan? >> this is a big miss for federal judge bruce lee who ruled this week that the washington redskins can no longer claim the redskins logo as a protected trademark. he said it disparages indians. every logo is positive. the next one coming though i know what it's going to be, the andimal rights people will challenge the chicago cubs logo the furry bears are being

disparaged. >> remember, if you have your own hit or miss tweet us. that's it for this week's show. thanks to my panel and all of you for watching. hope to see you right here next week. donald trump takes his message to the border state of arizona. it's a sellout crowd here. we'll ask the question is his campaign more bark than bite? plus stones and shoes go flying at a hated balkan leader. why so many people can't forgive or forget. once again a cyber attack is worse than we thought, and you might not know if you are one of the 20 million plus americans affected.