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American Morning

Barack Obama Has Picked a VP but No Announcement Yet; Obama Jumps on McCain Housing Gaffe; Tropical Storm Fay Makes Third Landfall in Florida; Are the Taxpayers Footing the Convention Bills?; New Pilot Program in L.A. Calls For Recycling Table Scraps; How Barack Obama's VP Decision Can Impact the Campaign

Aired August 22, 2008 - 06:00   ET

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


JOHN ROBERTS, CNN ANCHOR: He's made up his mind.
(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I did say that I've made the selection.

(END VIDEO CLIP)

ROBERTS: Breaking overnight. Barack Obama calls candidates on the short list. But who got the call?

Plus, the great flood. Lakes in living rooms. Swamp buggies saving the elderly.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Let me ask you this. Can you guys climb?

(END VIDEO CLIP)

ROBERTS: Inside the storm that produced more rain than two major hurricanes on the "Most News in the Morning."

And good morning. Thanks very much for being with us. It's Friday. It's the 22nd of August. John Roberts together with Carol Costello who's in for Kiran this morning.

CAROL COSTELLO, CNN CO-ANCHOR: Yes, in for Kiran. Kiran's off. And I can't understand how she could take the day off with the big announcement coming.

ROBERTS: She was worried about that. She said of all the days to take off. But her birthday is coming up, so she wanted to go.

COSTELLO: Understandable.

ROBERTS: We've been watching the fort for you. I've been sitting right here for about the last 2 1/2 hours. Nothing yet, though.

COSTELLO: He's been sitting in that chair since midnight. You're a crazy man. ROBERTS: No. Close. Close.

COSTELLO: Yes, sure. He's just embarrassed to tell you.

Anyway, the big question this morning is, who's the number two going to be? Only Barack Obama and presumably the person he's chosen as his running mate know for sure. Obama telling reporters Thursday he's made up his mind, but that is all he's saying.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I did say that I've made the selection. And that's all you're going to get. All right?

(END VIDEO CLIP)

COSTELLO: The campaign's official announcement will come via text message and that could happen at any time. Obama's expected to appear with his newly minted running mate at a rally Saturday in Springfield, Illinois.

It is back to business this morning at two of Senator John McCain's campaign offices. The buildings in Denver, Colorado, and Manchester, New Hampshire, were evacuated yesterday after two threatening letters. One containing a suspicious powder were received.

Investigators in Denver say the powder was not dangerous. A Colorado inmate is suspected of sending the letters. Authorities say he could face felony charges.

And breaking news this morning. Tropical Storm Fay showing no sign of loosening its grip on Florida. Sheets of rain continuing to fall at this hour in and around Gainesville. Floodwaters inundating one home after another. Roads are impassable and rescuers are still going door to door picking up people stranded by high water. President Bush has declared a state of emergency in Florida.

ROBERTS: On to the most politics now. Barack Obama's march to Denver begins tomorrow with a big rally in Illinois, but there's still no news about who's going to join him on the Democratic ticket. Obama has picked someone. We know that much. He's reportedly been making calls to those who were not chosen. He's got no public events planned today, but we still don't know who the running mate is going to be.

I've been following this all morning and nothing's happened yet. We've got teams stationed with all of the potential VP selections and as soon as we get word you're going to be the first to hear about it.

Meantime, the presidential race remains very tight. CNN's new poll of poll shows Barack Obama with a two point lead over John McCain, 44 to 42 percent; 14 percent still unsure. Obama has launched a new political offensive against McCain after the presumptive Republican nominee had trouble recalling how many houses he owns.

CNN's Jessica Yellin is live in Chicago to tell us about the Obama campaign's response to McCain's housing gaffe.

But first of all, Jessica, show me your BlackBerry.

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: It's right here, John. You know my guess right now is --

ROBERTS: I just got a note from them. It's public schedule.

YELLIN: Yes.

ROBERTS: Not the running mate.

YELLIN: No, my guess is we hear about it like 5:00 Eastern time tonight.

ROBERTS: Well, we're on the case.

YELLIN: 5:30, maybe 6:00.

ROBERTS: We're on the case.

YELLIN: We will be.

So let me tell you about the story. The Obama campaign is launching into John McCain full throttle right now over not just that gaffe you mentioned about how many houses McCain has, but also something McCain said over the weekend. When asked how much money makes a person rich, McCain said $5 million.

(BEGIN VIDEOTAPE)

YELLIN (voice-over): For Barack Obama, it's a gift from John McCain.

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I guess if you think that being rich means you got to make $5 million, and if you don't know how many houses you have, then it's not surprising that you might think the economy was fundamentally strong.

YELLIN: The Obama campaign is convinced this message is on the money, and they're taking it all the way to the bank. They've already released this ad.

(BEGIN VIDEO CLIP, CAMPAIGN COMMERCIAL)

NARRATOR: When asked how many houses he owns? McCain lost track. He couldn't remember. Well, it's seven. Seven houses. And here's one house America can't afford to let John McCain move into.

(END VIDEO CLIP)

YELLIN: And top surrogates are hitting 16 states to mock John McCain for, in the campaign's words, losing track of his houses. Obama supporter and VP short lister Virginia Governor Tim Kaine made the case on CNN.

GOV. TIM KAINE (D), VIRGINIA: He couldn't count high enough apparently to even know how many houses he owned.

YELLIN: The Obama campaign believes this line of attack will persuade voters that McCain is out of touch with regular folks and can't fix what he doesn't know is broken. It could also diffuse charges that Obama is elitist. It's as if they're saying, who's the snob now?

OBAMA: And if you're like me and you got one house, or you are like the millions of people who are struggling right now to keep up with their mortgage so they don't lose their home, you might have a different perspective.

YELLIN: All this comes as Obama keeps everyone guessing about his running mate. Short lister Tim Kaine joined Obama on the stump with a joint appearance. A hint or a head fake? That's anyone's guess.

(END VIDEOTAPE)

YELLIN: And, John, you remember when George H.W. Bush, the current president's father was running in 1992, and he was at a grocery store and seems surprised to see a cashier using a scanner, his opponent used that moment effectively to persuade the public that George Bush was out of touch with middle America. Well, the Obama campaign is saying John McCain's house gaffe is another scanner moment.

ROBERTS: All right. So an aggressive back and forth here, Jessica. How is the McCain campaign reacting?

YELLIN: Well, they're hitting back hard. They say this gives them the perfect opening to go after Obama on a house issue of his own. Obama had help buying his current house from a guy who is now in jail on unrelated fraud, fraudulent issues. But it's an unseemingly association that the McCains say they've been looking for an opening to attack Obama over. And here it is.

ROBERTS: Jessica Yellin --

YELLIN: It's the house fight.

ROBERTS: Yes. Something about glass houses on both sides here, perhaps.

Jessica Yellin for us this morning from Chicago. Keep watching closely for us, Jessica. Send up a flare if you got anything.

YELLIN: We will.

ROBERTS: All right. Appreciate it -- Carol.

COSTELLO: Growing disaster this morning in Florida. The massive rain maker Tropical Storm Fay now slugging across the state after 30 inches of rain in parts of Florida. Winds of 90 or 50 miles per hour, rather reported. The storm blasted ashore for a third time yesterday and is now parked near Gainesville. Fay is blamed for two deaths across the state.

And yesterday President Bush declared an emergency in Florida, paving the way for federal aid to help people recover from this relentless storm.

CNN's Rob Marciano tracking the storm. He's live at the hurricane weather center in Atlanta. The storm just won't go away.

ROB MARCIANO, AMS METEOROLOGIST: No. You know, and it's so big, Carol, that it's one of the reasons it's holding itself together so much. It almost has the arms even though it's inland kind of reaching out into the Atlantic Ocean and tap some of that moisture. And that's why the heavy rain continues to spiral around into the Gulf of Mexico and back to the central part of the state.

The southern part of the storm really has seen the heaviest rain. That's where the most flooding has occurred especially in the Melbourne, Port St. Lucie area. In Orange City, some video there where a hospital flooded there. That's just southwest of Daytona, kind of near the Orlando area.

So, you know, even emergency crews having a hard time getting to the people that need the help. And then you've got the other side of the flood coin, the Flagler Beach, South Florida, where big time waves are out there. So folks are out surfing, right? Well, two people drowned. So, I mean, obviously it's not a case where you want to go out in the water.

Rip currents certainly a big problem and the waves to boot. So where is the storm now? It's pretty much right over Gainesville. Still a tropical storm with winds at 50 miles an hour. There you see the circulation. There's Gainesville. And the winds extend -- the strongest winds extend up to 140 miles from the center. So that gives you an idea how large this circulation is and why it's held together so much.

So flood watches and warning continue. Here's the track expected to go across the state. Actually, could very well make a fourth landfall. Having three landfalls in the state of Florida that hasn't happened since Donna back in 1960. If this goes to four, well, that would set a record. Carol, back to you.

COSTELLO: That would be crazy. At least they need the rain in parts of Florida because I know there are drought conditions in some parts of that state.

MARCIANO: That is the bright side of the equation.

COSTELLO: Yes. The silver lining as they say.

Thank you, Rob -- John.

ROBERTS: I think they've got enough rain for the next 10 years there, Carol.

COSTELLO: Yes. ROBERTS: Eight minutes after the hour. A job boom may be on the horizon with the hardest hit areas taking the lead. Find out who's saying the job hunt may get much easier.

COSTELLO: It's party time for politicians, but conventions could be costing the rest of us.

(BEGIN VIDEO CLIP)

SHEILA KRUMHOLZ, CENTER FOR RESPONSIVE POLITICS: The taxpayers are footing the bill.

(END VIDEO CLIP)

COSTELLO: Why your hard earned dollars may be going to St. Paul or Denver. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Ten minutes after the hour. The H-pod, the hairless prophet of doom is on vacation today. So the B-pod is with us today. The blonde priestess of delight this morning has got some great news for us.

GERRI WILLIS, PERSONAL FINANCE EDITOR: Well, I have good news. So I want to score some points here today. OK.

First of all, let's start by talking about some of those jobless numbers we had yesterday.

(CROSSTALK)

ROBERTS: We're counting here.

WILLIS: You know, you're used to bad news here. Guess what? We had some good news in weekly jobless claims. They were down 13,000. That's the number of out of work Americans who signed up for jobless benefits.

Could it be the beginning of a trend? Well, guess what? There's a University of Michigan survey out there that says, yes, indeed, it could be the beginning of the trend. One PhD economist there is forecasting that there could be 3.5 million more jobs created in the next two years.

You know, we've lost 463,000 jobs this year. We've been sort of on the tear of shedding jobs, losing jobs. But this economist believes that guess what? The development of alternative energy, solar power, wind power, ethanol, smaller cars, making smaller cars which is what Detroit is starting to do, will create new jobs. Some 900,000, as you can see right here, in 2009 and in 2010, 2.6 million. Not everybody agrees.

COSTELLO: I know. It's one professor in Michigan and that's it?

WILLIS: Well, you know, you got to find your good news where you can. I think it's actually a very interesting report because it's really looking forward. And we see so many of these reports focused, you know, like on the next month, the next two months. So it's very interesting to hear what she has to say.

Of course, she says, you know, there could be wild cards here. The credit crunch could hurt this job creation forecast as could housing if it doesn't recover in a timely fashion. So, doing what I can here to --

ROBERTS: Well, we appreciate that. For anybody in the state of Michigan to be optimistic about a jobs outlook, that's saying something.

WILLIS: That's absolutely right.

ROBERTS: Gerri, thanks so much.

WILLIS: My pleasure.

ROBERTS: Appreciate it.

COSTELLO: A new garbage collection program could be a model for cities in California. See what has sanitation workers in Los Angeles going door to door begging for table scraps.

ROBERTS: Cash for conventions. Why does taxpayer money pay for political parties?

(BEGIN VIDEO CLIP)

SCOTT THOMAS, FMR. FED. ELECTION COMMISSION CHAIR: It was an act of Congress.

(END VIDEO CLIP)

ROBERTS: What you need to know to protect your dough. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

COSTELLO: Oh, and it is going to be a big party. Welcome to the "Most News in the Morning." Just three days until the start of the Democratic National Convention and we all know it takes a lot of money to put on a show. But it may surprise you to learn who's footing the bills.

CNN's special investigations unit correspondent Drew Griffin joins us now from Washington with more. So tell us, who is footing the bill?

DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: Carol, I'm going to get to that. This is a story about a little checkoff, right? It's going to make a lot of taxpayers ticked off. And come tax time next year, you may think twice before checking a box on your tax return.

(BEGIN VIDEOTAPE)

GRIFFIN (voice-over): If you check that little box on your tax return pledging $3 to presidential elections matching funds, you are contributing a lot to this.

UNIDENTIFIED FEMALE: I didn't know that. No, it does surprise me actually.

MUSIC: Let's all celebrate and have a good time.

GRIFFIN: It surprised us, too. Hold on to your goofy convention hats. The Federal Election Commission will give $34 million of your money, $17 million to each party to help pay for the party.

SHEILA KRUMHOLZ, CENTER FOR RESPONSIVE POLITICS: And you have to wonder what that buys us. The taxpayers are footing the bill for essentially four-day long campaign ads for the parties and their candidates.

GRIFFIN (on camera): So who came up with that idea? Come on, you already know, don't you?

SCOTT THOMAS, FMR. FED. ELECTION COMMISSION CHAIR: It was an act of Congress.

GRIFFIN (voice-over): Yes, an act of Congress, of course. Former Federal Election Commissioner Scott Thomas says the idea was noble at the time. Back in the 1970s amid concerns over corruption, the push was to get private money, big donors out of presidential elections and equal the playing field for little known candidates. In a compromise, Congress decided each taxpayer could even choose to contribute by simply checking that box.

THOMAS: With the checkoff, the concept is, you know, only if citizens are actually willing to basically earmark at that time, a dollar of their taxes to go to this program. Will it get there?

GRIFFIN: But keeping them honest, here's what Congress never bothered to tell you about that check box. It hasn't replaced private money or big donor influence. It doesn't give enough to even the playing field for lesser known candidates and nowhere does it say "check here to pay for a party."

(on camera): It sounds like the voters are getting hoodwinked on this thing.

STEVE ELLIS, TAXPAYERS FOR COMMON SENSE: Certainly I think that most people when they're checking that box have no idea that they're paying for party conventions in Denver and St. Paul.

GRIFFIN (voice-over): Steve Ellis, with Taxpayers for Common Sense, says no matter how you look at it, it doesn't make sense.

(END VIDEOTAPE)

GRIFFIN: And that's not all the taxpayer money we're sending to these conventions, Carol. The Department of Justice kicks in another $50 million each in tax money. That's just for all that security.

COSTELLO: That's unbelievable. I feel like I should get an invitation to the party.

GRIFFIN: That's what a lot of people we've talked to said. Hey, I've always wanted to go.

COSTELLO: I know. But you know, you don't have to check the box, right?

GRIFFIN: Oh, I mean, they get the money anyway. You know how it works out. And checking the box is not like you're adding to your return. It's just tells Congress, oh, it's OK if you want to spend the extra -- now, it's three bucks. You know, it goes up.

COSTELLO: Yes. Go throw yourself a good party. Drew Griffin, thanks so much -- John.

ROBERTS: And we're still waiting to find out who's going to be speaking on Wednesday night at the Democratic National Convention. No word just yet.

The fury of Tropical Storm Fay meantime not letting up. More homes flooded as the unprecedented rain keeps on falling. We're live on the ground in Florida with the latest.

Recycling leftovers. We look at a new pilot program in Los Angeles that's got people leaving their table scraps at the curb. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: 21 minutes after the hour. Paper, plastic and plain old garbage. Taking out the trash has a whole different meaning now than it did just a few years ago. And for residents in one major city things are about to get even more confusing.

CNN's Chris Lawrence has got the story for us this morning from Los Angeles.

CHRIS LAWRENCE, CNN CORRESPONDENT: John, Carol, the folks who live here in L.A. already have a rainbow of choices when it comes to tossing the trash. And now, they can add one more to the blue, black and green bins.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): Los Angeles sanitation workers are going door to door begging for scraps.

FRANK BRISCOE, RECYCLE AMBASSADOR: We take coffee grinds, egg shells --

UNIDENTIFIED MALE: Chicken bones, beef bones, and you know, all types of soiled paper.

LAWRENCE: The rest the homeowners to separate spoiled fruit, cracked eggs and old pizza and given new kitchen pails to dump them.

VOICE OF EMANUEL MADISON, RECYCLE AMBASSADOR: So one you put your food scraps in this container, take this outside, empty it into your green container.

LAWRENCE: The city says scraps account for 25 percent of the material in these black bins which end up in a landfill. They're asking volunteers to add those scraps to the green waste that gets sent to a composting center instead.

JAN PERRY, LOS ANGELES CITY COUNCILWOMAN: It doesn't require, you know, a lot of funding. Doesn't require that we build something. It just requires education.

LAWRENCE: But residents already drag three bins to the curb. Blue for recycling plastics and papers. Green for lawn clippings. Black for everything else.

UNIDENTIFIED MALE: We need some kind of, you know, guidance.

LAWRENCE: We found homeowners struggling to keep track of where to put the kitchen pails.

UNIDENTIFIED FEMALE: Black?

MADISON: No, green.

UNIDENTIFIED FEMALE: Oh, in the green.

MADISON: Same as this one.

UNIDENTIFIED FEMALE: Oh, OK.

MADISON: Yes. Yes.

LAWRENCE: But the pay off could be huge. The test program involves about 5,000 homes. But if it expands next year, the city says the bins could keep up to 600 tons of garbage out of the ground.

PERRY: It's a very simple, very direct way to reduce our dependence on landfills.

(END VIDEOTAPE)

LAWRENCE: And if the program works well enough to go citywide, L.A. won't be alone. About a dozen other cities in California already have table scrap recycling programs -- John, Carol.

COSTELLO: Barack Obama's vice presidential announcement could come at any time. And with the polls showing a near dead heat between him and John McCain, we'll look at the impact of naming his number two on his White House chances.

And government health officials have a new plan to protect consumers from food-borne illnesses. It involves making your leafy greens glow. You're watching the "Most News in the Morning." We're back in two minutes.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I did say that I've made the selection. And that's all you're going to get. All right?

(END VIDEO CLIP)

COSTELLO: That's it. Barack Obama telling reporters he's picked a running mate and that is all he's saying. But as the clock ticks away, the suspense is building as to how his choice will impact the campaign.

Joining me from Washington to discuss this is Republican strategist Leslie Sanchez and Democratic strategist Hilary Rosen. So have you both been up all night?

LESLIE SANCHEZ, REPUBLICAN STRATEGIST: Absolutely. Just waiting. Waiting with baited breath.

COSTELLO: Waiting and waiting?

HILARY ROSEN, DEMOCRATIC STRATEGIST: I know, like Christmas morning.

COSTELLO: It's true. It is kind of like Christmas morning. So Hilary, when do you think the announcement will come? I mean, might it come at 7:00 a.m. Eastern time so it can be all over the morning shows and everybody can talk about it throughout the day?

ROSEN: Well, the one -- the one thing that argues for it to be today is because they're going to look for two key things out of this announcement. They're going to look for as much excitement and lead up to tomorrow's rally as possible. So that argues for, you know, at least a half a day's news in advance.

And the second thing they're going to look for is a big fund raising bump. So they're going to do the first text announcement. Then I, you know, guarantee everybody's going to get a second text announcement and an e-mail saying now that we're all excited, now that we've got our tickets, send more money. And so, they're going to need some time to do that before people go into the dead of the weekend.

COSTELLO: So, Leslie, what is your prediction? And how is this affecting John McCain? Because this is all anybody's really talking about except for that housing kind of conflict which we'll get into later.

SANCHEZ: Sure. Sure. No doubt about that. You know, it's all a game of political, you know, strategy and chess. But it's interesting I think from the Republican perspective.

There's a couple things we understand. This is not going to be a desperation choice. Because these candidates are so close in the polls, you're not going to see a hail Mary pass in the sense of going somewhere that's not safe.

You're not going to see Barack Obama pick Hillary Clinton. That would have been more of a desperate move. And you're not going to see John McCain, I would argue, pick somebody like Joe Lieberman. That's another big, vast change.

COSTELLO: But isn't Hillary Clinton -- Hillary Clinton is the only person that is really going to make a big splash for Barack Obama, right?

(CROSSTALK)

SANCHEZ: Yes. It's not a safe choice.

COSTELLO: Well, I mean, he could pick another woman like Kathleen Sebelius, right?

SANCHEZ: Absolutely.

COSTELLO: And we noticed something about that because both of those -- both Hillary Clinton and Governor Sebelius are quite similar in their ideologies. They even look similar. So she's pretty much out, isn't she? Because Hillary Clinton supporters might say you're picking a Hillary Clinton clone.

ROSEN: There's nothing desperate, I think, about any of the choices that Barack Obama's going to make. If there's one thing, you've got to hand it to this campaign. They're moving with confidence. They have had complete control over this announcement actually unlike the McCain campaign where there's already leaks out last night that he's picked Romney.

So, you know, they have maximized everything possible here for the big announcement. Barack Obama is clearly in charge. He doesn't feel like he is weak in any one particular area. He's going to be confident and feel like the person he's picked is going to be his best possible sidekick. And I don't think they're going --

(CROSSTALK)

COSTELLO: Let's talk about this.

SANCHEZ: You know, that's interesting. Hilary has got a good point. I mean, that plays into the narrative, I would argue that many conservatives believe that he's an elitist, somebody that doesn't believe he needs to be told what to do. That this is almost a default kind of pick.

He's such a luminary figure and that's how he sees himself and his leadership, that this is one of a credential of many credentials that this vice president will bring as opposed to somebody who's really bolstering the ticket and prepared to be the next president.

COSTELLO: OK. You brought up the elitist factor. And we have to talk about this, this housing conflict where John McCain was asked by Politico.com, you know, how many homes do you and your wife own and he couldn't answer. And it wasn't long before the Obama campaign came out with an ad and then McCain came out with a counterattack.

Let's listen to a bit of both.

(BEGIN VIDEO CLIP)

NARRATOR: McCain lost track. He couldn't remember. Well it's seven. Seven houses. And here's one house America can't afford to let John McCain move into.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: From Obama, Rezko got political favors including $14 million from taxpayers. Now, he's a convicted felon facing jail. That's a housing problem.

(END VIDEO CLIP)

COSTELLO: The McCain camp, Leslie, brought up the Tony Rezko thing. But do you think that will really resonate with many voters because it's such a complicated affair to explain to voters. I mean, is it an effective counterattack to Obama's ad?

LESLIE SANCHEZ, REPUBLICAN STRATEGIST: In some senses it can be. Are they going to have a major political ripple, no. But it's part of a long, ongoing conversation about do we really know who Barack Obama is. Do we know the type of judgment he has? Is he in the shady deals that he got a sweetheart deal to buy his multimillion dollar home?

Those are the types of questions that people hear and it causes a bit of concern and speculation. I will argue especially among independent voters, independent conservatives and women voters who tend to look at these things with a jaundiced eye to begin with, with respect to all candidates.

COSTELLO: Well, we have to leave it there. I'm so sorry. We could go on and on. And I'm sure we will throughout the morning. Hilary Rosen, Leslie Sanchez, thank you very much -- John.

ROBERTS: 31-1/2 minutes after the hour. Checking our top stories for you now. As you just heard, still no word on who Barack Obama has chosen to be his Democratic running mate. Obama has made his choice. At least that's what he told us. And the campaign could reveal the name at any moment. You'll see it right here on CNN when it happens.

A pilot program allowing illegal immigrants to turn themselves in for deportation is a bust. The U.S. Immigration and Customs Enforcement Agency is scrapping it after getting just eight volunteers in a three-week trial period. The program gave illegal immigrants with court orders to leave the country after 90 days to depart on their own terms. It was offered in five cities. The man accused of mugging an elderly in a Brooklyn elevator is waking up behind bars this morning. According to police, the 36-year- old man confessed to mugging the 85-year-old woman, stealing $900 and her cane. The suspect was reportedly on parole at the time of the attack and is suspected of committing similar assaults.

Breaking news out of Iraq right now. A deal that could see a complete withdrawal of U.S. troops by the year 2011. Our Arwa Damon is live for us in Baghdad this morning with the very latest on this.

Arwa, what are you learning today?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, John, this is a deal that is meant to replace the U.N. mandate that expires at the end of this year. And quite frankly, the negotiations have taken a lot longer than either side would have hoped. What we're hearing from the lead Iraqi negotiator is that the deal has been drafted. It is done. And that it says that U.S. troops will be out by 2011.

Another significant date that has been talked about, too, is that of June 30th, 2009 that would see all U.S. troops out of Iraqi cities and on their bases. The Iraqis, however, after 2011 will reserve the right to request that if the security situation necessitates it, U.S. troops could be staying longer.

There are a number of other caveats in place in this deal that would assure that (OFF-MIKE) sectarian violence was at its worst, U.S. troops would be able to step back in to try to re-establish security -- John.

ROBERTS: And, Arwa, one of the sticking points of reaching a deal has been this idea of U.S. troops remaining under U.S. judicial jurisdiction and not subject to Iraqi law. What did they end up with on that front?

DAMON: Well, according to the lead Iraqi negotiator, he said that jurisdiction, both on and off the bases, would remain with the U.S. military. He did, however, say that should special cases arise such as a killing in cold blood, they would reassess it underneath some sort of a joint court.

But that is still to be established. We also have to remember that this deal still has to be approved by both governments. And the prime minister has to try to push this through parliament.

ROBERTS: All right. Arwa Damon for us this morning with the breaking news from Baghdad. Arwa, thanks so much.

COSTELLO: The FDA is giving food producers a green light to irradiate fresh spinach and lettuce to kill off dangerous bacteria such as E. coli. Officials say treating the leafy greens with radiation will give them a longer shelf life at the supermarket. Some food safety advocates, though, say suppliers may have a tough time selling the idea to consumers. Meat, poultry and some shellfish are already approved for irradiation. New concerns that combination cholesterol drug Vytorin may increase the risk of cancer. The FDA says it's reviewing a recent clinical study that found a higher cancer risk in patients taking the drug compared to those taking a placebo. At the same time, a congressional committee is giving the drug makers two weeks to provide information about the Vytorin study.

And, did China cheat at the Olympics? The International Olympic Committee is calling for an investigation into whether female Chinese gymnasts were too young to compete in the Beijing Games. IOC officials are now asking the gymnastics governing body to investigate new allegations that at least two gymnasts on China's gold medal winning team were under the age of 16. China has provided passports that say the girls are of age. We'll keep you posted -- John.

ROBERTS: 35-1/2 minutes after the hour. One on one with the head of General Motors. Our Ali Velshi talks with the auto giant CEO about their troubles and some fuel-efficient solutions.

COSTELLO: Trouble in the water. Hurricane Katrina like you've never seen before.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Now you have seen what Katrina has done.

(END VIDEO CLIP)

COSTELLO: A documentary chronicles one story of living through the hurricane.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: These guys are nobody's victims. You know, they are survivors.

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COSTELLO: You're watching the "Most News in the Morning."

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ROBERTS: 38 minutes after the hour as we continue to wait for an anticipated announcement of a vice presidential running mate for the Obama campaign. But meantime, time to fast forward to see what stories are going to be making news later on today, in addition to that.

Barack Obama telling reporters that he has made his selection, settled on who he wants with just three days now until the convention. Time is running out. So, the sooner you get it done, the better.

Vacations on hold again. Again, House Republicans will continue protesting against Democrats who left for summer recess without holding a vote on offshore oil drilling. Republican leader John Boehner says he would like to keep the energy protest going through the Democratic National Convention next week.

And talking issue number one. Your money. Federal Reserve Board Chairman Ben Bernanke will speak to the world's top bankers about America's financial stability at an economic symposium in Wyoming. And that's what will be making news later on today -- Carol.

COSTELLO: Also, John, General Motors just expanded one of its largest car plants in Lordstown, Ohio. They've hired 1,400 new workers for a third shift and unveiled a fuel-efficient car model -- the Chevy or the Chevy Cruise, I should say, they will be manufactured in Lordstown.

Ali Velshi sat down with GM CEO Rick Wagoner who says the auto giant was, in his words, "whacked by the sharp rise in oil prices this year."

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ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: There are some people who observe the auto industry in the United States and say did you get whacked or why couldn't you see it coming.

RICK WAGONER, CEO OF GENERAL MOTORS: Well, I think to a certain extent all of us saw coming the fact that energy prices would increase. I mean, to be fair, we didn't see them doubling, going up that quickly. I don't think too many other people did either.

And if you look at our competitors in the business, they were investing in, you know, new truck plants or whatever. So, I think it's fair to say it came faster than almost anybody thought. But OK. We got to get and move faster in that direction. And that's what we're doing.

VELSHI: I spoke to you the day you first unveiled the volt. And back then it wasn't certain this was going to become a production car. Now you're pretty certain this is going to become a production car. Are you on schedule? Is that likely to happen and how big a deal is that going to be?

WAGONER: Yes, yes, and a big deal. The basic technology is a thoughtful one. This idea that you can -- if you go 40 miles a day in your commute, you can always go on electric, but you're not confined by the fact that you have to recharge. You can do it while you're on the road. I think, you know, our guys have really hit a very good thought process in the kind of configuration that's going to work in an extended range electric vehicle. We're very excited about it. We're getting a lot of interest in it in all sorts of ways.

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COSTELLO: And you can see more of Ali's interview with Rick Wagner at CNNMoney.com.

ROBERTS: And after all the 9/11 conspiracy theories, the truth finally comes out. The real reason that number seven World Trade Center fell. You're watching the "Most News in the Morning." (COMMERCIAL BREAK)

ROBERTS: Breaking news overseas this morning. A monster storm coming ashore near Hong Kong. Tropical Storm Nuri packing sustained winds of 62 miles an hour slammed into the coast just north of the city. It shut down schools, financial markets and the city's transportation grid. So far, though, no reports of any major damage.

Three years ago tomorrow Hurricane Katrina first formed over the Bahamas. And in the days that followed, the storm killed hundreds of people, shattered the Gulf Coast and changed thousands of lives forever. Now a new film documents how one couple weathered the storm and its aftermath.

Here's CNN's Brooke Anderson.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: John and Carol, with the third anniversary of Hurricane Katrina just days away, a new film offers a look at the devastation as you've never seen it before. And highlights a survivors' story of triumph.

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ANDERSON: This is never before seen video of Hurricane Katrina. It was shot by Kimberly Roberts. A New Orleans native who had no means of evacuating before Katrina hit. Stranded, she recorded what happened as the storm bashed her neighborhood, the Ninth Ward.

UNIDENTIFIED FEMALE: Now you have seen what Katrina has done.

ANDERSON: She and her husband Scott along with 12 others fled to the attic of her home before being rescued by a neighbor.

UNIDENTIFIED FEMALE: We're in here!

ANDERSON: Eventually they got out of the city. Their story might never have been known were it not for a chance encounter with two documentary film makers.

CARL DEAL, CO-DIRECTOR, "TROUBLE THE WATER": There was a certain kind of an optimism, too, when we first met them. And you kind of see that when they tell their story. And there was an eagerness to be heard.

ANDERSON: Carl Deal and Tia Lessin traveled to Louisiana days after the storm. After meeting the Roberts, they decided to make them the focus of their film. "Trouble the Water" uses Kimberly's dramatic footage and records her as she returns to her storm ravaged home to find a prized possession.

UNIDENTIFIED FEMALE: I longed for this. I longed for this.

ANDERSON: Somehow the only picture of Kimberly's late mother was spared.

UNIDENTIFIED FEMALE: I don't know what I was going to do without it.

ANDERSON: The government's slow response before and after Katrina left the couple feeling they had been cast aside because of their economic status.

UNIDENTIFIED FEMALE: It's just like we was un-American. Like we lost our citizenship.

ANDERSON: But it's ultimately a story of triumph.

TIA LESSIN, CO-DIRECTOR, "TROUBLE THE WATER": These guys are nobody's victims. You know, they are survivors. They are creative people. They're resourceful.

ANDERSON: Today, Kimberly and Scott have a baby named Sky. They moved to another house and started a music label, Born Hustler Records. Kimberly wants her lyrics about life to inspire just as her mother inspired her.

UNIDENTIFIED FEMALE: I have to, you know, spread the joy. Spread the hope. Spread the love. And that keeps me hopeful.

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ANDERSON: "Trouble the Water" opens in select theaters this weekend. Kimberly's album also called the "Trouble the Water" is due to be released August 29th, the anniversary of Katrina -- John, Carol.

ROBERTS: Lights, camera, politics. CNN gives you the best seat in Denver.

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UNIDENTIFIED MALE: Got a great location to feel the presence and feel the electricity and the awe.

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ROBERTS: Convention coverage like none other. You're watching the "Most News in the Morning."

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ROBERTS: Well, we are deep into this election year. And late night comedians should be having a field day with both candidates, right?

COSTELLO: They should be. Well, there's no shortage of John McCain jokes but there's a serious lack of laughs sparked by Barack Obama.

CNN's Kareen Wynter tells us why.

KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: John and Carol, late night TV has always considered it open season on candidates. But this time around, one presidential hopeful is proving a tougher target.

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WYNTER (voice-over): Leno.

JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": This is like the opposite of a John McCain rally. I can't believe it.

WYNTER: Letterman.

DAVID LETTERMAN, THE LATE SHOW WITH DAVID LETTERMAN: Did you want some of the John McCain stuff? You can go to it's being sold at the very old navy.

WYNTER: The late night kings have seemingly endless punch lines about Republican presidential candidate John McCain. But the laugh lines haven't rolled so easily about his Democratic challenger, Barack Obama.

BILL CARTER, WRITE, THE NEW YORK TIMES: They really are still searching for that thing about Obama that is instantly funny.

WYNTER: And identifiable to the public, says Bill Carter of the "New York Times," who interviewed the late night comics and their writers for a recent article. Carter says comics like David Letterman are struggling to poke fun at Obama.

LETTERMAN: Italy is designing clothing based on how Barack Obama dresses. And I said, well, yes, that will connect him with the angry working class voters.

CARTER: They tried a few things like that. Like that he's got sort of high-brow taste so that he doesn't eat fried food and things like that. That isn't really a good line because it doesn't really have a lot of angles.

WYNTER: Comedian Jimmy Kimmel recently told "The New York Times," Obama isn't the ideal target for late night humor because he's, quote, "so polished." "He doesn't seem to have any flaws." But don't expect Kimmel to spare Obama in his monologue.

JIMMY KIMMEL, COMEDIAN: Presidential candidate Barack Obama was in Germany today. A huge crowd turned out to hear him speak. More than 200,000 people cheering him enthusiastically. I guess it's the first time they've seen a black person since Milli Vanilli left the country.

WYNTER: Comics are walking a fine line because of Obama's race.

CARTER: If you're a white host with white writers, you don't make race jokes because it probably is going to look bad.

UNIDENTIFIED MALE: (INAUDIBLE).

WYNTER: But black comedians like D.L. Hughley aren't afraid to let the jokes fly. D.L. HUGHLEY, ACTOR/COMEDIAN: He looked like Urkel and the dude from Mad Magazine and they had a baby.

The reason we don't hear a lot of Obama jokes is primarily there are a lot of -- I think is white liberal guilt. I do. I think that people feel in some part guilty in some part that they want Obama to win so bad that they just refuse to do anything that might put him in a light.

WYNTER: Hughley says comedians should have a laugh or two at Obama's expense.

HUGHLEY: As much as they may embarrass, they also humanize you.

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WYNTER: And if Obama makes it to the White House, it'll be interesting to see how long this hands off approach actually lasts -- John, Carol.

ROBERTS: Tarnished gold.

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UNIDENTIFIED MALE: They are able to do tricks that they will not be able to do when their bodies mature.

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ROBERTS: The evidence mounts that China used underage ringers at the Beijing games. And the final say on seven world trade.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: For the first time we have shown that fire can induce a progressive collapse.

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ROBERTS: Conspiracy theorists call it their linchpin. Now scientists say they've solved a 9/11 mystery.

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ROBERTS: Six minutes now to the top of the hour. Tropical Storm Fay's historic flooding, and the iReports are pouring in from Florida. This from Steve Whitedog on Merit Island. It shows the Banana River overflowing into a street that leads to a hospital. One Merit islander reportedly called police to say that there was a manatee swimming in her yard.

This came in from Teresa Kaspar who lives just south of the Kennedy Space Center. Severe beach erosion in the aftermath there. The rain carving a river into the beach as you can see. She said the rain was coming down so hard that it hurt your skin. And this came in from Louise Mills with the subject, quote, "we're stranded in our condo in Cape Canaveral." A lake is almost halfway up the palm trees outside. All the roads there are under water.

CNN's John Zarrella is live in one of the hardest hit towns for us this morning -- Melbourne, Florida.

And John, yesterday, we heard from a local reporter reports of alligators and snakes roaming the flooded streets. What's it like there today?

JOHN ZARRELLA, CNN CORRESPONDENT: Well, you know, John, a lot of people have seen them. We haven't seen any of them yet. But I can tell you people on Florida's east coast haven't seen the sunshine in days. Well, it's finally stopped raining. And now the folks in flooded out developments like this one behind me are just waiting to go home.

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ZARRELLA (voice-over): The Allens, Ron and Mary, left their home in the Lamp Lighter Village in such a hurry they forgot their medicines. Florida wildlife officers in a swamp buggy brought them back in to get what they needed. The Allens hadn't seen their home since the floodwaters started rising.

Did you lose a lot of stuff in your house?

RON ALLEN, HOMEOWNER: We have no idea.

MARY ALLEN, HOMEOWNER: No idea.

R. ALLEN: It may be OK. I know the air conditioner will be gone.

ZARRELLA: There are 1,100 homes in the Allen's Melbourne neighborhood. Many of the residents are elderly. Many won't leave.

UNIDENTIFIED MALE: If you decide you want to get out, you can give us a call.

ZARRELLA: One woman waves from her porch. Mary recognizes her.

M. ALLEN: I know her. She walks the dog every day. I can't believe she wants to stay in there.

ZARRELLA: On streets with names like Waterfront, one house after another is surrounded by water. At the Allen's house, it's good news. Only the porch is under water.

(on camera): The lake is literally in your back corridor room here, family room.

(voice-over): The house is dry.

R. ALLEN: If it doesn't reach the bottom of the floor joists, I'm OK. If it does, it will be a complete loss.

ZARRELLA: Others are just that. A complete loss. The houses over there and the houses over here were at one time separated by a lake. That's a lake right there in the middle. They're not separated any longer. As the swamp buggy makes its way back out, the officers look for more people.

LUIS RODRIGUEZ, FLORIDA FISH AND WILDFIRE COMMISSION: Let me ask you this. Can you guys climb? You don't think she can? All right. I'll get a truck in here. We'll come get you.

ZARRELLA: Even those who tried waiting out the water are finally giving up.

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ZARRELLA: Now the Allens stayed with relatives. Others have stayed in shelters or with neighbors. And John, of course just as soon as I say it stopped raining, it's raining again -- John.

ROBERTS: John, should the rain eventually stop, how long will it take for the water to go down there, do you think?

ZARRELLA: They're saying that these people should be back in their homes by Sunday. So a couple more days.

ROBERTS: All right. John Zarrella for us this morning in Melbourne, Florida. John, thanks so much for that.

COSTELLO: Yes, of course, by Monday if the rain stops, Fay is now moving over Florida for a third time. Rob Marciano is at the CNN hurricane headquarters.

So, when will the rain stop, Rob?

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