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American Morning

Growing Disaster in Florida; Barack Obama Telling Media He's Made Up His Mind On A Running Mate; No Proof of Cheating by the Female Chinese Gymnastics Team

Aired August 22, 2008 - 08:00   ET

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


JOHN ROBERTS, CNN ANCHOR: It's 58 minutes after the hour. Breaking news out of Iraq this morning. U.S. and Iraqi negotiators have reached a deal on a complete troop withdrawal. Under the new deal, soldiers will leave Iraqi cities by June of next year and will leave the country completely by the end of 2011. It must now be approved by both President Bush and Iraqi lawmakers.
The International Olympic Committee this morning says there is still no proof that female Chinese gymnasts were too young to compete at the Beijing games. The IOC asked gymnastics officials to investigate after saying new information about three girls' ages came to light. But officials say the team again presented valid government passports and identification. The IOC believes that the controversy will be, "put to rest."

Officials say a letter full of powder sent to a John McCain campaign office in Denver was not dangerous. A second letter without powder was sent to a New Hampshire office. It was also deemed safe. Authorities believe the letters were a hoax sent by an inmate in Colorado.

A new comment this morning from Senator Barack Obama. The presumptive democratic nominee spoke with CBS newsman Harry Smith in an interview taped yesterday which aired this morning. Senator Obama described what his goal at the convention will be.

(BEGIN VIDEO CLIP)

OBAMA: I want to make the choice clear to the American people. For the last eight years, we've had a particular set of economic policies that have resulted in record foreclosures, high unemployment, high inflation, and so I want the American people to focus on whether or not we can afford to continue those policies for another four or eight years because that's essentially what John McCain is offering.

(END VIDEO CLIP)

ROBERTS: Well, after months of planning, the Democratic National Convention kicks off on Monday. Last hour, we showed you a sneak peek at the inside of Denver's Pepsi Center. Now it's time to show you what the actual podium is going to look like. CNN's Joe Johns is live inside the Pepsi Center right now with the unveiling. Hey, Joe.

JOHNS: Hey, John. It sounds like we've got about one minute to go here. Of course, this is a very big deal in Colorado. The governor of Colorado is here to flip the switch along with the CEO of the convention.

This podium and the screens behind it, they're very impressive. I actually got a look at them earlier -- a day before yesterday. And I can tell you, we're looking at three 103 foot television screen that go floor to ceiling in this room. Quite remarkable. When they turn it up, the sound sort of overwhelms you and so do the pictures.

So, the Democrats are trying to out a real extravaganza here in Denver, Colorado. Of course, one of the interesting things is, it's also carefully scripted. In fact, just the unveiling of the podium is one of the few secrets so far, that the Democratic Party's been able to keep.

So, let's take a look --

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We present for you the podium that will put America's voices center stage. And claim host to the opening three nights of the 2008 Democratic National Convention from Denver, Colorado.

(END VIDEO CLIP)

JOHNS: Something you would really like to have in your living room for the Super Bowl, but it probably be pretty hard to get it in there. Screens are huge. And that's what we're going to be looking at all of next week.

John, back to you.

ROBERTS: That is pretty impressive, Joe. I mean, I wanted to watch the Super Bowl on our wall in our studio that we're looking at you on right now. But after seeing that, I think I want that. You're right. Well, that will be impressive. Well, we'll see you out there soon, Joe. Thanks very much for that.

And a programming reminder. Live coverage of the Democratic National Convention in Denver begins on Monday. And live coverage of the Republican National Convention in St. Paul, Minnesota, kicks off here on AMERICAN MORNING on September the 1st.

You want that, don't you?

CAROL COSTELLO, CNN ANCHOR: Pardon me.

ROBERTS: You want that screen, don't you?

COSTELLO: Oh, that's a man thing. It's a man thing to want a big screen like that.

ROBERTS: It's pretty impressive.

COSTELLO: It is impressive. It's beautiful. And the music was strange but stirring in a way.

ROBERTS: Made you kind of feel like you were on the bridge of a Starship.

COSTELLO: Yes. It's like that, actually.

In other news this morning, a growing disaster in Florida. The massive rain maker, the storm that just won't go away, Tropical Storm Fay still slugging across the state causing historic flooding. And this morning, there's a chance the storm could spin off dangerous tornadoes.

CNN's John Zarrella live in Melbourne, Florida.

JOHN ZARRELLA, CNN CORRESPONDENT: Carol, every time we think the rain is about to stop, it starts up again. Terribly frustrating for the thousands of people here on Florida's East Coast who are just waiting for floodwaters to reside, reside so they can go home.

(BEGIN VIDEOTAPE)

ZARRELLA (voice-over): The Allens, Ron and Mary, left their home in the Lamplighter 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.

(on camera): 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 (voice-over): Even those who tried waiting out the water are finally giving up.

(END VIDEOTAPE)

ZARRELLA: Now, we've notice a big difference. The water has receded considerably, Carol, since yesterday when it literally covered all that grass back there and the entire street was under water. So this morning, it's going down quickly. The hope, of course, here is that we don't get too much more water, much more rain that could start filling this area up again -- Carol.

COSTELLO: I hope not. John Zarrella live in Florida this morning. Thank you.

ROBERTS: Six minutes now after the hour. How would you like to make $85 million a year? Our Gerri Willis "Minding Your Business" this morning. She has got the list of the highest paid CEOs in America.

And James Carville with reaction to Obama's recent slipped in the polls. Is there really an August curse for the Democrats? And why he says Obama still hasn't won over the Hillary Clinton die-hards.

(COMMERCIAL BREAK)

ROBERTS: Well, some people have money. Eight minutes after the hour, the economy might be crashing but these guys would not know about it. A new list of the top paid CEOs is out. Our Gerri Willis has got it for us.

Good morning, Gerri.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi, guys. You know, I can't say that this is good news or bad news. It's just sort of amazing news. We have a list of the top CEOs in the country in terms of pay. At the top of the list, Larry Ellison, the CEO and founder of Oracle, the software company in California. He made $84.6 million last year.

And it's interesting because we thought, why not compare this to like the average pay for...

COSTELLO: Oh, yes. That's, too.

WILLIS: Yes. For systems programmer out there makes $75,200 each year.

COSTELLO: There's something wrong with that.

WILLIS: Yes.

COSTELLO: The disparity is too great.

WILLIS: OK. Well, I feel your pain and I'm sure people out there on the West Coast do, too. Number two, John Thain at Merrill Lynch. He made $81.1 million. And Les Moonves at CBS Corp. You can see the trend here. The numbers are astonishing. And can I just remind you that the founders of Yahoo! Jerry Yang and Steve Jobs, they limited their pay to $1 a year.

ROBERTS: But they've got those --

(CROSSTALK)

COSTELLO: But they're already really rich.

WILLIS: They're already rich.

ROBERTS: How much?

WILLIS: But, you know, Larry Ellison is...

COSTELLO: Already rich.

WILLIS: See, I'm just saying. You know, they could serve as an example for other people maybe.

COSTELLO: It makes me feel better, Gerri, to get your drift.

WILLIS: Do you feel my pain? Sharing.

COSTELLO: Sharing.

ROBERTS: Definitely sharing your pain.

Gerri, thanks for sharing that with us. We all feel so much better this morning. Don't forget, if you want to feel even better, join Gerri tomorrow for "Open House" right here on CNN at 9:30 Eastern. She'll have more little tidbits like that for you.

WILLIS: Happier tidbits, hopefully.

COSTELLO: As we wait to find out who Barack Obama's vice president will be, we're asking the question, what goes into choosing a running mate. We'll talk with one former senator who went through the process three times himself.

(COMMERCIAL BREAK)

COSTELLO: We can't hear him but I'm sure you've heard that sound bite a million times. Senator Barack Obama telling the media he's made up his mind on a running mate. We are constantly checking our BlackBerrys, but no word yet on who it is. Obama's camp will announce the pick in a text message and e-mail that could come at any moment.

Joining me now from Miami Beach to talk about how Obama may have arrived at his decision is former Florida Democratic Senator Bob Graham.

Good morning, Senator Graham.

BOB GRAHAM, FMR. DEMOCRATIC PRESIDENTIAL CANDIDATE: Good morning, Carol.

COSTELLO: OK. So first question -- like we all expected, Barack Obama's pick to come already, why do you suppose it hasn't?

GRAHAM: Because I think it's -- he's taking the time, given the seriousness of this decision. It used to be that selecting the vice president wasn't that important. Today, it can be, not only a critical part of the election, but even more so once you are elected in office, you need to have a partner that you have good chemistry with and can assume some significant responsibilities.

COSTELLO: And, of course, that partner must be vetted thoroughly, something that you've been through at least three times. Tell us about the process and how it feels to have the microscope turned on you.

GRAHAM: Well, the process is very intense. Typically, they will have a lawyer, accountant, a political operative and a private detective reviewing your background for every issue that might arise. You are interviewed on several occasions. The list gets shorter and finally --

COSTELLO: Who are you interviewed by?

GRAHAM: Well, you are interviewed by that search group initially and then if you make it to the short, short list, you get interviewed by the nominee.

COSTELLO: Oh, you, too. So, you have to say the right thing. So when you --

GRAHAM: Well, I think you need to say the honest things. You need to let the nominee know who you are, what your expectations are, understand his or her expectations so that when they make the choice, they are making it with full awareness of who you are and what you might bring to their administration and the ticket.

COSTELLO: So, you were vetted three times by three different presidential candidates. You were not picked any of the times. Is there something we don't know about you?

GRAHAM: I don't think so. I think you -- what you see is what you get.

COSTELLO: I understand, though, you kept this diary, meticulous diary and some people think that's the reason maybe you weren't chosen. What do you think? GRAHAM: Well, I've heard that said. It seems kind of strange to me. It's -- this little book that I keep, it's not a diary, but it's a way I write down every day what I need to get accomplished. It's my --

COSTELLO: And it's not that you write -- you write down every single detail, like what time you get up, what you had for breakfast, what happens after that.

GRAHAM: Yes and I do that so that I can go back at the end of the day or the end of the week and check and see if there's something that I said, hey, I'm going to do this, make this phone call and I hadn't yet done it. That's a reminder.

COSTELLO: So, you're too organized to be a vice president.

GRAHAM: I hope not.

COSTELLO: I do, too. Who is your best guess that Barack Obama might pick?

GRAHAM: I have no idea. He's got a list of very good candidates --

COSTELLO: Do you think it will be Hillary Clinton?

GRAHAM: Each of which brings a little bit different cast to the campaign and his service as president.

COSTELLO: Do you think it will be Hillary Clinton?

GRAHAM: I think she's on the list and she has a lot to contribute. I was with her yesterday. She was in Florida, and she did an excellent job in stimulating, stirring, energizing the crowds. She'd be a strong candidate, if I were making the choice.

COSTELLO: Did she get any calls from Barack Obama?

GRAHAM: Not during the time I was with her.

COSTELLO: Did she give you any hints?

GRAHAM: No. She's a very professional lady and she is not going to do anything inappropriate.

COSTELLO: Yes, that's for sure. Thank you very much, Senator Graham, for joining us this morning and sharing your experiences with us.

GRAHAM: Thanks. Thanks, Carol.

ROBERTS: Well, in these tough economic times, what if your company asked you to temporarily work for free? AMERICAN MORNING's legal analyst Sunny Hostin is here to explain your rights. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: It's 18 minutes after the hour. It's Friday. And it's time to dial up our legal hotline. AMERICAN MORNING's legal analyst Sunny Hostin here to answer some of your legal questions.

Good morning to you.

SUNNY HOSTIN, CNN LEGAL ANALYST: Good morning, John.

ROBERTS: So, Mark from California writes -- it's a two-part question. Let's take this into pieces. He writes to say, quote, "Our advertising agency has fallen on hard economic times and gone through a round of layoffs.

The remaining team that's in place has been asked to take a pay cut, or in my case, work for free for a month, but nothing is guaranteed. Is this legal?"

HOSTIN: It is absolutely illegal, John. But why I'm getting these sorts of questions all the time and I think because when there are hard economic times, sometimes people break the law trying to make changes. In this case, again, it's absolutely illegal and it's really considered a violation of California and federal wage an hour violations.

You can't ask people to work for free for the benefit of your company especially under the Fair Labor Standards Act. It's just something that's illegal. And while an employer can certainly cut your pay, the employer can't cut your pay, especially in California, underneath the minimum wage.

In California, the minimum wage is $8 an hour. It's pretty high. It's higher than the federal minimum wage. So, certainly, this employer could be getting himself into trouble.

ROBERTS: OK. And here's the second part of the question. He says, quote, "I know that there are many people that have green cards who are still employed with the agency.

Should those who have green cards be laid off first no matter what their job title is?

HOSTIN: Absolutely, absolutely illegal. And again, I'm getting these sorts of questions all the time. You know, should someone that has a green card be laid off first? Absolutely not. It has to be a neutral, neutral criteria for a layoff.

The bottom line is an employee -- well, an employee, John, without a contract can be fired for any reason, no reason, but the person cannot be fired for discriminatory reason. And in this sense, really, anything like this would be considered illegal to the extent this employer wants to lay off people, the company needs to use neutral criteria, sort of like levels of experience. The more junior people get laid off first. The people that haven't been as productive get laid off first, but not people based on visas or green card status. Illegal. ROBERTS: Sunny, thanks very much for that.

HOSTIN: Thank you.

ROBERTS: It's good to see you this morning. And don't forget, keep e-mailing your legal questions to Sunny, CNN.com/am. Every Friday, Sunny joins us to answer them -- Carol.

COSTELLO: The dog days of politics. Some say it's an August curse. James Carville is here to tell us what it means. Can the Obama campaign really blame his recent slippage in the polls on the calendar?

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

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: 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)

ROBERTS: Barack Obama hoping to get a bounce in the polls after next week's convention, because right now the race remains very tight. A new CNN poll of polls shows Barack Obama with a two-point lead over McCain. 44 percent to 42 percent. 14 percent of voters still unsure.

And as Barack Obama watches John McCain narrow the gap in the polls, could the right vice presidential nominee help the Democratic candidate to turn things around?

Democratic strategist and CNN contributor James Carville joins me now live from Phoenix, Arizona this morning.

James, it's great to see you. We still haven't got the announcement yet. But let me ask you, who do you think he's going to pick?

JAMES CARVILLE, CNN CONTRIBUTOR: Well, I guess everybody else thinks he's going to pick Biden which makes me think it will be somebody but Biden. But I really don't know. I thought he might pick Sam Nunn but everybody says he's in China. And it's all been discounted. So, unlike anybody else, I'm going to have to wait and see. But there sure is a lot of conventional wisdom behind Senator Biden.

ROBERTS: What about Evan Bayh from Indiana? Or what about Tim Kaine, governor of Virginia? Would either one of those two help him out?

CARVILLE: Well, yes. I know both of them. As I know Senator Biden in all levels. A great guy. He's the right candidate. And that would show a shake up conventional wisdom if he picked up (INAUDIBLE). Governor Kaine did my class when I taught at the community college in Northern Virginia. And had been known Senator Bayh for a long. He'd be a great pick, too. So, we'll have to wait and see. Maybe Senator Clinton -- who knows?

ROBERTS: James, this week, a lot of people are talking about this so-called August curse for the Democrats. And the talk of what is born over the idea that the polls are tightening up and why isn't Barack Obama further ahead. And people remember back to what happen in August of 2004. You wrote in a recent column on CNN.com that Senator Obama needs to change the narrative. He needs to get angry about something.

What does he need to do?

CARVILLE: Well, I mean, first of all, the August curse is a fact that you just have to do these things. He had to take foreign trip. And then the guy, the toughest primary in the history of American politics, and he just spending some time with his family, so it's a little off the radar screen, and McCain people took advantage of it.

Senator Obama was not talking about what's happened to American working people out there. I have noticed for the last two or three days he's doing much better. I suspect that if he continues this, he'll help himself somewhat at the convention.

And by the way, all of the poll of polls show that Senator McCain is at 42. I mean, I have a little bit trouble saying a guy at 42 is doing all that well. You know, 44 is not that much better.

ROBERTS: Right.

What about the convention next week?

Paul Begala talked to our John King yesterday in which he said that this tactic they took at the 2004 convention where Democrats spoke no ill will of the other parties. You just can't do that. You are going to get beat if you do that. But Senator Obama really has to grab the bull by the horns. He's got to be very tough on John McCain. The whole convention has got to be tough on the Republicans.

What do you think about that strategy?

CARVILLE: I think he's absolutely right. And I don't think all of this -- we're not going to attack anybody. And it's a different kind of politics. That will get you to where you are today.

You know, people have watched what's happened to this country. They watched what's happened to the incomes. They watched what's happened to energy costs. They watched what's happened in Iraq. They watched what's happened in health care costs, but not happy about it.

And to go and have a convention to try to administer some kind of high brow civics lessons to please some bleach the press or the Democratic Party is ludicrous. You have to go in politics and talk about what's happening in people's lives, and talk about how we're going to change that around, and how we're going to make -- help try to make this country better, and how we're going to try to affect people's lives.

So, I mean, if -- I hope that Senator Obama is not listening to these goofy people out there who are saying we can transcend the precipice and the choices we glaze in the future and all that kind of nauseating stuff, and talk directly to people about what's going on in their lives and what's happening to their country.

ROBERTS: What about this week's current attack against Senator McCain and the fact that he forgot how many houses he own. Because the McCain campaign fired right back and said Senator Obama is not in any position to talk about houses because of his and his connection with Tony Rezko.

Does he have to be careful about how he attacks?

CARVILLE: Well, I think you put it in context, when Senator McCain kept saying the economy -- the fundamentals of the economy are strong. He said that people just needed to work a couple more jobs and pull a bit harder to pay for their houses. You look at his record on some of these things. (INAUDIBLE) and I think it's a little separated from it.

I think that's the real issue here. I mean, you know, I remember in August of 2004, it was all on John Kerry's wife, about all the money she had. The Republicans couldn't get enough of it. Now, there are poll that somebody would question the fact whether he had seven or nine or ten houses, however many he has. You know, they're going to get used to it. They are going to get hit a little bit. And that's the way it's going to be. And I hope that's what happens at the convention.

ROBERTS: And James, what about Hillary Clinton supporters. A new NBC News Wall Street Journal Poll found that 52 percent of Hillary Clinton supporters said that they would vote for Senator Obama. I mean, that's a long way from 90 percent or 95 percent. 21 percent said that they'll vote for John McCain. He still hasn't convinced them all to come over.

What does he need to do. What's going on there?

CARVILLE: You know, that's -- we had a long, difficult primary. There's a healing process that's going on. I think that Senator Clinton and Senator Obama are going to do a very good job at the convention. And I think that some of these people probably need some convincing. There were a lot of understandable figures -- understandable feelings that there was a lot of sexism involved in the campaign. Certainly much of it directed at the press, you know.

So, I think we got to soothe that, and I think we can do that in Denver. We've just got to keep working on these things. The main thing to do is not get frustrated or get mad but stay working and stay focused on it.

ROBERTS: James Carville joining us this morning from Scottsdale, Arizona. James, great to see you. Thanks for being with us this morning. CARVILLE: Thank you. Appreciate it.

ROBERTS: All right. See you next week.

And a programming reminder for you. Live coverage of the Democratic National Convention in Denver begins on Monday. We are live from the floor of the convention. And then live coverage of the Republican National Convention in St. Paul, Minnesota, kicks off here on AMERICAN MORNING, that will be bright and early on September the 1st -- Carol.

COSTELLO: A warning about possible tornadoes this morning in northeastern Florida, southeastern Georgia and southern south Carolina as Tropical Storm Fay inches across the Florida peninsula. Two people have drowned at Florida beaches. Victims of those rough waters. Fay is in its fifth day of drenching the state. President Bush is issuing a federal disaster declaration.

Still no proof of cheating by the female Chinese gymnastics team. That is the word from the international Olympic committee this morning. Citing what's called new information. The IOC asked gymnastics officials to investigate claims that three gymnasts are underage. But officials say they again presented valid passports and I.D.s. The IOC says they believe the controversy will be, quote, "put to rest."

More American gold at the Olympics. Phil Dalhausser and Todd Rogers beat Brazil to take the men's beach volleyball gold. It comes a day after Americans Kerri Walsh and Misty May-Treanor won their gold. The U.S. now leads with 100 medals total. It's second in gold with 30 to China's 46.

Also, breaking news this morning. All U.S. troops will be home from Iraq by 2011. That's according to a new proposed deal between the U.S. and Iraqi negotiators. But it still needs approval.

CNN's Arwa Damon live in Baghdad this morning with details of the agreement.

Tell us about it.

ARWA DAMON, CNN CORRESPONDENT: Well, Carol, an agreement that both sides have been negotiating for a lot longer than they would have liked to. And we are hearing from sources close to the negotiations that the Americans did end up giving up a lot more than they would have liked. But here are the details.

According to the top Iraqi negotiator, by June 30th, 2009, all U.S. troops would have withdrawn from Iraqi cities. They would be on their bases and then by 2011, all U.S. troops would have gone home. A couple of the other important issues, that of contractor immunity. It will be lifted. As for jurisdiction over the U.S. military, the soldiers here, that still remains in the hands of the Americans. Unless there is a major crime that is committed, such as a cold- blooded murder or a rape as we've had cases of that in the past, then it will be reviewed by a joint committee. The other issue is detainee authority. That will be according to Iraqi law. Basically, before a detention is to take place, an arrest, a warrant has to be issued by an Iraqi judge. And in those sweeping military operations that end up rounding up dozens of detainees, they all need to be handed over to the Iraqi authorities within 24 hours. But the Iraqis are still saying that there are a number of caveats included in this deal.

Taking into consideration the very precarious security situation here. If it is deemed necessary, for example, U.S. troops could re-enter the cities at the request of the Iraqi to require assistance, backups at any point in time. In fact, U.S. troops could even end up staying past 2011 if the Iraqi government asks them to do so. However, this agreement does have to pass through both governments at this point and that is going to prove to be a very big challenge for the Iraqi Prime Minister Nuri Al Maliki. Carol.

COSTELLO: Arwa Damon reporting live in Baghdad this morning, thanks.

ROBERTS: We are still waiting for Senator Obama to tell us who he has chosen as a running mate. John McCain expected to announce his choice at the end of next week. Minnesota Governor Tim Pawlenty is thought to be on McCain's short list for vice president. And earlier, on AMERICAN MORNING, I asked the governor if he thought his presence on the republican ticket could help turn Minnesota, perhaps the bluest of blue states, red.

(BEGIN VIDEO CLIP)

GOV. TIM PAWLENTY (R), MCCAIN CAMPAIGN NAT'L CO-CHAIR: Well I just stopped talking about the VP stuff as it applies to Minnesota or elsewhere because it just leads to more speculation and so much of it is inaccurate or off on the wrong tangent. But Senator McCain is going to have great people to at. I'm sure he'll make a wonderful choice for our party and for our country. And we'll just have to wait until next Friday to find out the answers to those questions.

(END VIDEO CLIP)

ROBERTS: Minnesota has not voted for a republican in a presidential election since 1972. Barack Obama speaking this morning about the VP search. He didn't give it away, but he did talk about the criteria for a running mate. Here's what he said on CBS' "The Early Show."

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Obviously, the most important question is, is this person prepared to be president. The second most important question, from my perspective, is, can this person help me govern. Are they going to be an effective partner in creating the kind of economic opportunity here at home and guiding us through some dangerous waters internationally. And the third criteria for me, I think, was independence. I want somebody who is going to be able to challenge my thinking. And not simply be a yes person when it comes to policymaking.

(END VIDEO CLIP)

ROBERTS: So as we await that announcement, let's go inside the democrats' convention right now. And our first look this morning at the podium. About 20 minutes ago, Denver's governor flipped the strip, unveiling the stage and the screens that stretch from the floor to the ceiling. Quite an extraordinary sight, one that will become very familiar to you over the course of the next few days.

COSTELLO: I know, I should have ooo'd and ahh'd. It is pretty spectacular, I would say.

ROBERTS: It looks like the fourth of July, doesn't it?

COSTELLO: It does. And speaking of the fourth of July. Abolish the fourth of July. Your first look at a political satire movie that's making liberal Hollywood cringe.

ROBERTS: And Fay still pounding Florida. Our Rob Marciano is tracking the storm's record breaking flooding for us this morning.

(COMMERCIAL BREAK)

ROBERTS: It's 37 minutes after the hour. Time to fast forward now to see what stories are going to be making news later on today. Mixed messages from Moscow over whether Russian troops and when they'll pull out of Georgia. The Kremlin promising a complete withdrawal by the end of the day. Why Russian generals say it may be 10 more days before troops leave.

Talking "Issue number one," your money. Federal Reserve Bank board chairman Ben Bernanke will speak to the world's top bankers about America's financial stability. That would be at an economic symposium in Wyoming.

And tropical storm Fay just will not let up. The rain maker now pushing further inland over northern Florida. Tropical storm warnings in effect for the gulf coast and there is a chance that the storm could spin off some tornadoes. To see just how long this is all going to last, let's bring up Rob Marciano. And people there have to be awfully sick of this thing, Rob.

ROB MARCIANO, CNN, METEOROLOGIST: They sure are. But it's starting to pick up a little bit steam. Westerly movement now at six miles an hour. Winds are down to 45. But it's still really blustery especially on the east coast. Jacksonville to St. Augustine, even Orlando seeing some gusty winds. Here is your circulation center which is right over Gainesville. And again, it is drifting to the west. Finally, we've got this thing kick started yesterday afternoon.

Winds around this anywhere from 20 to 30 up here. We've had wind gusts towards St. Augustine and Jacksonville. Upwards of 50-plus. So it's still a blustery day and rainfall still falling in moderate to heavy amounts as far south as Orlando. So the central part of the state really getting the worst of it. 26 inches in Melbourne. Merit Island got 19 inches and Sebastian got 18.5. So that is certainly impressive. Here's your forecast tracking as it heads toward New Orleans but it should be much, much weaker by then. A couple of storms in Washington state, I want to show you that. Some action in the Pacific northwest where thunderstorms fired up. We had some hail. There you go. Piling up in the streets of Spokane. That helped the fire situation in parts of Washington. And Marina del Ray, Venice Beach.

Farther down to the south off the coast of California, everybody get out of the water. Shark alert. Leopard sharks seen offshore there and lifeguards scrambling to get everybody out of the water there as they do their seasonal migration. So there you go, weather coast to coast including a little bit of "Jaws." John, Carol, back up to you.

ROBERTS: Rob, you have just got it all this morning. Hey, Rob, the fact that Fay has stalled over Florida now for five days, does this mean that the drought is over, or will a lot of that water just get into the canals and run out to sea?

MARCIANO: You know, even before this storm started, they were just a little bit below average. I wouldn't say they were in a drought. This certainly brings their tally up a little bit closer to average. But as you know, when it rains this much in a short amount of time, a lot of that gets run off. But I think they're not going to have to worry about water for some time to come.

ROBERTS: All right. Rob, thanks very much for that.

MARCIANO: OK.

(BEGIN VIDEOTAPE)

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

UNIDENTIFIED FEMALE: The taxpayers are footing the bill.

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: So it's kind of like waiting for a pot to boil. I have been watching this thing all morning, waiting for it to buzz.

COSTELLO: I know, it's beginning to grow out of your hands.

ROBERTS: Just nothing yet. No vice presidential announcement from the Obama campaign.

COSTELLO: He probably won't make it until tomorrow which would be really annoying to you.

ROBERTS: Well, let's go to where Obama is to get perhaps a better read on the state of things.

CNN's Jessica Yellin is live now in Chicago. You know, Jessica, I mean, I'd love to have the announcement on our clock. What does the Obama camp gain by announcing the vice presidential running mate so late, and right before the weekend. I've already missed a couple of hours of a Friday news cycle.

What's going on?

JESSICA YELLIN, CNN CORRESPONDENT: It's surprising in the sense you don't get as much news attention if you announce it late on a Friday or even on the weekend. But the advantage for the Obama campaign is that they could see this as giving them mega momentum going into the convention. It will give them a big bounce.

They're hoping with the announcement and then beginning Monday with the convention. And also it gives us, the media, less time to criticize whoever the nominee is if we end up seeing any faults in that person. So they see media news cycles as passing really quickly. They want to get this big and then move right on to the convention. John.

ROBERTS: We've been talking this morning with James Carville and with Governor Tim Pawlenty in Minnesota about this flap over houses, how many does John McCain own and why doesn't he remember how many he owns and then the fire back on the McCain's side over Barack Obama's house and his connection to Tony Resko. Neither camp is letting this go and they are renewing the fight again today.

YELLIN: They really are. The Obama campaign today is releasing a video only on YouTube of some campaign volunteers asking regular folks on video, hey, how many houses do you own? Do you ever forget how many houses you own? And there's some pretty funny responses. People saying, you know, no, I don't think that's too common a problem forgetting how many houses I own. So they want to drive home the point, the Obama campaign does, that John McCain in their view is out of touch with middle America.

On the flip side, the McCain people are telling me, you know, this has given them the perfect opening to really go after Obama on Resko and they think on distorting John McCain's words. We'll see which side wins out in the end. But both sides think it's a very effective message.

ROBERTS: I'm sure you've been talking to a lot of folks in the campaign, other democratic leaders. What's your best read on when this announcement is going to come?

YELLIN: Look, for whatever - I'm putting my money on having it come out right around 6:00 Eastern time tonight. That's what I have been hearing for a while. But I could be wrong.

ROBERTS: We'll take a couple of bucks and we'll put that down for you. All right. Jessica Yellin for us in Chicago this morning.

Jessica, thanks.

COSTELLO: And you came in at midnight.

ROBERTS: No, it wasn't midnight. It was 12:45.

COSTELLO: Whatever. CNN NEWSROOM just minutes away. Heidi Collins at the CNN Center with a look at what's ahead. Hey, Heidi.

HEIDI COLLINS, CNN ANCHOR: Hey, Carol. That's right. That's what we are all talking about this morning. The VP guessing game. Right here in the NEWSROOM, Barack Obama says he has decided but he's not telling. We do know this Obama and the mystery person are holding a rally tomorrow.

The U.S. and Iraq reach a tentative deal on American troops. A complete withdrawal by the end of 2011. The proposal must be approved by both sides.

How about a little radiation with your salad. The government says it's OK to zap your greens to kill bacteria. That's a new one. Friday in the NEWSROOM, top of the hour right here on CNN -- Carol.

COSTELLO: We'll be there. Thank you, Heidi.

And a new film that attacks America's political left from Hollywood's right. We will have a closer look at the politically charged satire. "An American Carol" when we come back.

(BEGIN VIDEOTAPE)

ROBERTS (voice-over): Cash for conventions. Why does taxpayer money pay for political parties?

UNIDENTIFIED MALE: It was an act of congress.

ROBERTS: What you need to know to protect your dough. You're watching the most news in the morning.

(END VIDEOTAPE)

(BEGIN VIDEO CLIP)

DAVID PUCKETT, MEDICAL MARVEL: Here is southeastern Mexico where medical care is poor. It's almost impossible to overcome an amputation and they don't have the opportunity to get out, much less get accepted.

The very first time I came to Mexico, it stamped in my heart that someday you're going to make a difference here. And when I finally got in the field of orthotics and prosthetics, a-ha, now I know what I can do.

I'm David Puckett and I bring artificial limbs and would-be braces for those in need to Mexico. There's always a plethora of donations of artificial limbs or would-be braces. We take casts in southeastern New Mexico and make new limbs and braces from the components that we've recycled.

Delivering a limb or brace is the beginning. Como esta? Because we have to come back to make sure that they have what they need. When we help one person, it actually affects an entire community.

UNIDENTIFIED MALE: My life was sad before because I had to crawl on the ground. He lifted me up to where I am today.

PUCKETT: I didn't really realize how much sacrifice it is going to be, but you know what? Where there's more sacrifice, there's more blessing.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

ROBERTS: Ten minutes now to the top of the hour. Welcome back to the most news in the morning. Just three days now until the start of the Democratic National Convention.

And we all know that it takes an awful lot of money to put on a show like that, particularly when you look at that podium. That must have cost a fortune. It may surprise you as well to learn that you may be footing the bill for parties that you're not even invited to. Here's CNN special investigations unit correspondent Drew Griffin with that story.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT (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.

GRIFFIN: It surprised us, too. Hold on to your goofy convention hats.

UNIDENTIFIED FEMALE: Look at the back ribbon.

GRIFFIN: 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: The check-off 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 here's what Congress never bothered to tell you about that checked 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. It sounds like the voters are getting hoodwinked on this thing.

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

GRIFFIN: Steve Ellis with Taxpayers for Common Sense says no matter how you look at it it doesn't make sense. Drew Griffin, CNN, Washington.

(END VIDEOTAPE)

ROBERTS: Well, as you're paying for a lot of it, you'll want to watch it right? A programming reminder for you. See what your money bought.

Live coverage at the Democratic National Convention in Denver begins on Monday. We'll be live from the convention floor. And then live coverage of the Republican National Convention in St. Paul, Minnesota, kicks off here on AMERICAN MORNING on September 1st.

COSTELLO: It is not your typical Hollywood fare. A political satire that takes direct aim at liberals. Look at the director who's charting new territory with is film "An American Carol."

(COMMERCIAL BREAK)

COSTELLO: Some refer to it as a political horse race. Then there's this. The great presidential cockroach race. The two giant Madagascar hissing roaches in Obama and McCain surrogates, racing down a six foot long Plexiglas track. John McCain's cockroach won crossing the finish line in under five seconds. No word on their track record for getting this on thing right.

ROBERTS: Well, roach is all we need.

Hollywood is hardly known as a bastion of conservatism.

COSTELLO: No, now one filmmaker, a master of movie satire, is taking on tinsel town in its left leaning views.

CNN's Kareen Wynter has the story.

(BEGIN VIDEOTAPE) KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: John, Carol, good morning. One director is treading some new ground here in Hollywood and making political waves in the process.

WYNTER (voice-over): A shift in Hollywood's left leaning political landscape, where films that are critical of the Bush administration, like Michael Moore's "Fahrenheit 911" and Al Gore's documentary "An Inconvenient Truth" are embraced by this typically liberal-friendly town. Now some of Hollywood's conservative elite, once gun shy about pulling their political weight -

DAVID ZUCKER, DIRECTOR "AN AMERICAN CAROL": If you do identify as a republican, you whisper it.

WYNTER: Are coming out with a bang. Director David Zucker's new film "An American Carol" is a zany political satire of the war on terror that isn't too kind to democrats.

ZUCKER: The far left has a lot of humor in it that nobody has discovered before. I don't believe that the left of democrats, are bad people. I think that they are wrong on many issues.

WYNTER: An anti-American filmmaker named Michael Malone, a knock-off of Michael Moore works with a leftist activist group movealong.org to abolish the fourth of July.

UNIDENTIFIED MALE: ... ask not what the country can do for you -

WYNTER: Zucker also makes outrageous references to anti-war protesters. ACLU attorneys defending suicide bombers and other sensitive themes.

UNIDENTIFIED MALE: We're not shaving until they bring all the troops home.

UNIDENTIFIED MALE: Thank you boys.

UNIDENTIFIED FEMALE: They're women.

WYNTER: Zucker, a former democrat who called on his outspoken conservative colleagues, Jon Voight and Kelsey Grammer to star in the film admits he's taking a lot of heat from Hollywood insiders.

ZUCKER: They're appalled.

WUNTER: They're appalled.

ZUCKER: Yes, they're appalled. Of course. What happened, you turned to the dark side.

PAUL BOND, BUSINESS EDITOR, "THE HOLLYWOOD REPORTER": This really has the potential to shake things up and inspire Hollywood's underground conservative community.

WYNTER: Paul Bond with the "Hollywood Reporter" says this right wing movement sends a clear message to conservatives who haven't been wearing their politics on their sleeve.

BOND: It will be very cathartic for republicans who have been the butt of Hollywood jokes now for so many years. They are going to finally see something that makes liberals the butt of jokes and they'll say, hip, hip hooray.

WYNTER (on-camera): And "An American Carol" opens nationwide October 3rd, just one month before the election. Zucker says he plans on sending an advance copy of the movie to President Bush -- John, Carol.

(END VIDEOTAPE)

ROBERTS: Kareen Wynter for us this morning. Kareen, thanks so much for that.

COSTELLO: I'm sure President Bush will enjoy that.

Senator Obama's announcement could come any minute and Senator McCain's announcement is expected next week. Here's more on VP selections in an "A.M. Extra."

In 1976, Jimmy Carter waited until the very last day of the convention to announce Walter Mondale as his VP. In 1988, George H.W. Bush named Dan Quayle on the second day of the GOP convention.

ROBERTS: Back in 2000, Al Gore picked Joe Lieberman. It was seven days before the democratic convention in Los Angeles. That same year, President George W. Bush announced Dick Cheney as his choice for VP six days before the republican convention. And back in 2004, John Kerry named John Edwards as his running mate. That was 20 days before the start of the convention.

And that's going to do it for us. We've been watching the pot all morning, but it hasn't boiled, unfortunately.

COSTELLO: And we'll be glued to our television sets all day long.

ROBERTS: We expect it to in the next 24 hours or so. Thanks so much for joining us on this AMERICAN MORNING. Hope that you're going to join us bright and early on Monday. I'll be live from the Democratic National Convention in the very heart of Denver.

COSTELLO: And right now, here's CNN NEWSROOM with Heidi Collins.