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American Morning
White House Won't Rule Middle-Class Tax Hike; Three Americans Detained in Iran; Debbie Rowe and Katherine Jackson Come to Terms; Cash for Clunkers Program in Need of More Funding
Aired August 03, 2009 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ALINA CHO, CNN ANCHOR: Good morning.
JOHN ROBERTS, CNN ANCHOR: Good morning. Take it away.
CHO: We're crossing the top of the hour. It is Monday, isn't it? It's almost 8:00 on the east coast. Welcome to AMERICAN MORNING, August 3rd.
I'm Alina Cho. Kiran Chetry has the morning off.
ROBERTS: Good morning to you. I'm John Roberts. Thanks for being with us.
Here are the stories that we'll be breaking down for you in the next 15 minutes here.
Read their lips. Is the president thinking about going back on a campaign promise and raising taxes for the middle class? The president's two top money men are not ruling it out. We're live at the White House with more this morning.
CHO: An urgent push for information as Iran detains three American hikers. We are learning more now about who they are and how they may have strayed into Iranian territory from Iraq. We're following developments with the global resources of CNN.
ROBERTS: And a judge in Los Angeles will tackle a number of Michael Jackson's estate and family issues today. Jackson's mother, Katherine, is seeking some control of her son's estate. Meantime, there's word of a custody agreement for Jackson's children between his mother and his ex-wife Debbie Rowe.
But we begin with a question that's sure to have millions of middle class Americans talking this morning and the taxman licking his chops. Is the Obama administration about to go back on a campaign promise and raise your taxes?
It's something that the White House economic adviser Larry Summers wouldn't rule out yesterday.
(BEGIN VIDEO CLIP)
LARRY SUMMERS, W.H. CHIEF ECONOMIC ADVISER: There's a lot that can happen over time. But the priority right now, so it's never a good idea to absolutely rule things -- rule things out no matter what. (END VIDEO CLIP)
ROBERTS: CNN's Ed Henry is live at the White House.
And, Ed, we heard from Larry Summers, but we also from the treasury secretary on this -- sort of a coordinated message there. Is this a little trial balloon to tell Americans this may be in the offing in the future?
ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: John, it's certainly seems that way. And this could complicate the president's case here in August as he tries to start fanning out across the country -- including Wednesday of this week in Indiana -- to try to make the case for health reform. A key part of that case is to say, "Look, this is going to reduce costs in the long-term." But as you know, critics have been saying, in the short-term, costs are really going to balloon, government debt is going to increase. Who is going to pay for all of that?
The administration started to signal yesterday that, potentially, the middle-class is going to face some tax increases. You mentioned Larry Summers, if it was just one person, it might just be a gaffe, might be a mistake. But when you've got two people, including Treasury Secretary Timothy Geithner, it suggests this is a pattern, this is a trial balloon.
(BEGIN VIDEO CLIP)
TIMOTHY GEITHNER, TREASURY SECRETARY: Well, we're going to have to look at -- we're going to do what's necessary. Remember, the critical thing is people understand that when we have recovery established led by the private sector, then we have to bring these down -- deficits down very dramatically. What the country needs to do is understand we're going to have to do what it takes. We're going to do what's necessary.
(END VIDEO CLIP)
HENRY: Now, the key is going to be: how does the White House define middle-class? During the campaign, then-Senator Barack Obama was very blunt in saying that he had a line in the sand which he would not cross. Take a listen to that.
(BEGIN VIDEO CLIP, OCTOBER 30, 2008)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If you make under $250,000, you will not see your taxes increase by a single dime -- not your income tax, not your payroll tax, not your capital gains tax, no tax.
(END VIDEO CLIP)
HENRY: So, that's where the rubber will meet the road because you have critics, you have some on your show this morning saying, look, at some point, you're going to run out of tax revenue. You just can't keep taxing people who make over $250,000 a year. At some point, to deal with these massive government deficits, you're going to have to start potentially raising taxes below that line.
The key is going to be whether or not the president is going to keep his campaign promise -- or down the road, is he going to have to say, look, we've got to do some things, some tough choices to deal with this massive spending, John.
ROBERTS: Not yet a read-my-lips moment, but perhaps one looming there.
Ed Henry for us at the White House this morning -- Ed, thanks so much.
CHO: All right. So, we have a reality check now. Christine Romans is "Minding Your Business." She joins us.
So, is it possible for President Obama to keep his campaign promise? Or is that not going to happen?
CHRISTINE ROMANS, CNN CORRESPONDENT: Well, look, there's only two things you can do, you can either spend less or take in more -- or, I guess, three things, or some combination of those two things. I mean, our debts -- our deficits are rising so quickly everyday. At some point, you have to pay for that and raise the money for it. How do you raise that money?
Almost everyone I talked to said taxes have to go up at some point. You know, he said, "You won't see your taxes increase by a dime," well, we already are. It might just not be the payroll taxes or the federal taxes.
But on the state level, states are really crunched here. You're seeing all kinds of different things, taxes and fees that you pay for on a local level, on the state level that are already going up for middle-class Americans. We're already seeing that. He doesn't have control over that, of course.
But a lot of people say, at some point, you run out of ways to raise money.
CHO: They're talking about $1 trillion just for health care.
ROMANS: Absolutely. Now, he might be able to keep the promise by saying, "I'm not going to raise middle-class taxes for health care reform." But looking bigger picture, we are running a sea of red ink. At some point, we have to pay for it. And you hope that the economy will start to grow very, very quickly. As (INAUDIBLE) was saying earlier, if the economy will take care of some of that, but can it take care of all of it? Many people doubt it.
CHO: And when?
ROMANS: And when exactly -- exactly. And how powerful will the recovery be? Or will it be just a meek recovery? And those are all the questions.
Now, look, the debt right now -- it's 13 percent of the economy. That's past World War II -- after World War II is the last time we saw it like that. How do you dig yourself out from something like that?
Hopefully, they'll be something on the horizon that will be the big economic driver that we don't know -- the new Internet, the new I don't know what, green technology maybe. The thing that's going to really spark innovation in this country and make a lot of money for everyone, we just don't know what it is yet.
CHO: But we obviously were not strangers to deficit. So, is there anything different about what's going on now then?
ROMANS: Well, you know, Andy Busch, who is a trader and analyst at Bank of Montreal, he calls this the greatest financial experiment in history -- in American history. So, it is different. It is different.
CHO: How much experiment?
ROMANS: It is a huge financial experiment to spend a ton of money. But deficit spending can be a good thing. I mean, we know this, we've covered this for years -- you spend money when times are tough because you're investing and doubling down to get the growth going so that you can come out of it. Deficit spending is normal, this -- this 13 percent of the economy, you know, we've only done that a few times, but we did pull out of it.
CHO: Christine Romans, "Minding Your Business" -- Christine, thanks.
ROBERTS: New developments this morning concerning three Americans now being held captive in Iran. The Swiss embassy says its diplomats are hoping to meet with the three American hikers who apparently wandered into Iranian territory while they were hiking in Iraq and were arrested. This morning, we're learning more about the trio. CNN's Susan Candiotti is following that story for us.
(BEGIN VIDEOTAPE)
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: John and Alina, good morning.
So many questions, so much worry about three young Americans held against their will in Iran.
(voice-over): Kurdish officials have identified the three Americans being detained as Joshua Fattal, seen here on his Facebook page, as well as Shane Bauer and Sarah Shourd, both appearing on Internet Web sites. They've been staying at a hotel before setting out to a scenic area for a hike in the mountains near Ahmed Awa in Iraq. Despite warnings to be careful, they apparently strayed into Iranian territory across an unmarked natural border with northern Iraq.
A friend who stayed behind at a hotel because he was ill said he last heard from them Friday. They called to tell him they were surrounded by Iranian soldiers during their hike. Fattal's mother who lives in Pennsylvania confirms their captivity but is declining requests for on-camera interviews. She spoke with CNN Radio by phone.
LAURA FATTAL, MOTHER OF DETAINED U.S. HIKER (via telephone): My husband and I are eager for the best welfare and conditions for our son Josh and for the other two companions he's with. And that is our only concern: his welfare and the best conditions for him.
CHRIS FORAKER, FRIEND OF JOSH FATTAL: Josh is a very curious person. And he is interested in the world. He wants to -- wants to eat the world whole.
CANDIOTTI: Friends say the three have spent time or have lived in Western Europe and the Mideast, and are seasoned travelers. Sarah Shourd appears on a Web site that mentions her travels. She's also named on Shane Bauer's Web site. He's a photographer.
The American hiker Shon Meckfessel who stayed behind because he was ill is now at the U.S. embassy in Baghdad, according to his grandmother. Meckfessel is a graduate student at the University of Washington.
The State Department says it has asked the Swiss consulate in Iran to try to make contact with the detained Americans, because the U.S. itself has no diplomatic relations with Iran.
(on camera): It's a very sensitive situation, especially, given the strained relations between the U.S. and Iran.
John and Alina?
(END VIDEOTAPE)
ROBERTS: Susan Candiotti this morning -- Susan, thanks so much.
This morning, the mystery of what happened to Navy pilot, Captain Scott Speicher, has been solved after nearly 20 years. The Pentagon is announcing that they have positively identified Captain Speicher's remains recently found in the Iraqi desert. Speicher was the first American lost at the start of the first Iraq war in 1991. His F/A-18 Hornet was shot down near Baghdad on the first night of the war.
President Obama says the news is a reminder of the, quote, "selfless service that led him to make the ultimate sacrifice for our freedom."
CHO: He mentioned a bittersweet moment for the family, but probably more bitter as he said, than sweet.
ROBERTS: Yes.
CHO: It is nine minutes after the hour.
Now, it is the Senate's turn to approve extra money to keep those "cash for clunkers" rebates coming. Transportation Secretary Ray LaHood says he hopes the Senate will follow the House's lead and approve an extra $2 billion for the program.
(BEGIN VIDEO CLIP)
RAY LAHOOD, TRANSPORTATION SECRETARY: Any deal that's been made that's in the pipeline, any deal where they filed the paperwork and we're evaluating it and making whatever adjustments -- anything that's in the pipeline will be paid. If the Senate does not pass the additional $2 billion, the program will be suspended.
(END VIDEO CLIP)
CHO: The "cash for clunkers" program is expected to get credit for solid July car sales figures that are coming out today.
ROBERTS: In a few hours, the legal battle over Michael Jackson's estate will play out in a Los Angeles courtroom. Michael's mother, Katherine, says she's being kept in the dark by the two men who have temporary control over the estate and there is word of a custody agreement regarding Jackson's children. Our Jason Carroll comes up live on this at the half hour.
CHO: And Tiger Woods is back. After missing the cut two weeks ago at the British Open, Tiger won the Buick Open in Michigan by three strokes. It is his fourth win this season.
ROBERTS: So, you're looking for some airfares, right? And airfares are pretty reasonable these days as airlines are trying to attract people to come on board. But how about $9 for a cheap airfare? There's a way to get it and we'll tell you how -- coming up.
It's 11 minutes after the hour.
(COMMERCIAL BREAK)
CHO: Thirteen minutes after the hour.
We are following developing news out of Miami this morning. At least 28 people are hurt, four of them seriously, after a Continental Airlines jet was diverted to Miami this morning. Officials say the Boeing 767 hit severe turbulence at about 38,000 feet while heading from Rio de Janeiro to Houston. Continental tells CNN that the jet is now back in the air and expected to land in Houston just after 9:30 a.m. Eastern Time.
ROBERTS: Right now, two airlines are offering Twitter-only specials. Recently, JetBlue posted -- get this, listen to this -- a $9 one-way trip from New York City to Nantucket off the coast of Massachusetts. The United Airlines also offering what it calls Twares. The deals are available only for one or two hours, though. So, you know, you get that tweet and you got to act right away.
CHO: Right away.
The mother of the man accused of bringing a fake bomb into New York's LaGuardia Airport over the weekend says her son has a psychiatric disorder. Thirty-two-year-old Scott McGann was arrested Saturday at a security checkpoint with a device that turned out to be batteries and wire wrapped with tape. The main terminal was evacuated, disrupting air travel across the country. McGann now faces multiple charges and up to seven years in prison if convicted.
ROBERTS: Another tough week ahead for the president, the debate on health care reform moves forward in the Senate and some new worries about unemployment benefits and paying down debt. The president gathered his top advisers over the weekend to assess what they have done after six months and what's ahead for the next six months.
Two of the sharpest political minds in the country joining us now from Washington: Republican strategist Ron Christie and Karen Finney, former communications director for the Democratic National Committee.
Thanks for joining us this morning, folks. So, let's take a look at this weekend summit. A lot of things on the table: health care reform, the economy, rising unemployment, what to do about the deficit and the growing debt.
Ron Christie, what do you expect the mood was like in that meeting?
RON CHRISTIE, REPUBLICAN STRATEGIST: Well, I expect the mood was a little bit tense, John. I think that, at this point, the economy still hasn't recovered to the way that the president and his advisers have hoped. There's still a lot of concern about what's going on with the fate of the health care bills in the House and the Senate, and his energy policy.
And for having been there for at least the first 100 days of the Bush administration, I can tell you that when we sat down as a team, we said, "What did the president campaign on? What were the promises that the president made to the American people? And what sort of calibrations, what sort of corrections do we need to make to make sure the president's on track with his agenda for the American people?"
ROBERTS: So, Karen, we talked a little bit about this last week. If you look at the president's approval rating, it's down 10 points since January, much of that is coming just the last month. If you look at his numbers on the economy, 48 percent approval rating, health care 43 percent -- both of those down below 50 percent.
If you had to pick three things for the president to work on in the next six months, what would they be?
KAREN FINNEY, FMR. DNC COMMUNICATIONS DIRECTOR: Yes. I would say, number one -- we've really got to draw -- he's got to draw a line in the sand when it comes to health care reform. I think, in many ways, August is going to be as crucial to the president's agenda on health care reform or health insurance reform as is September. And that's because in August, we know the RNC and insurance companies are going to spend a lot of money trying to scare the American people, although we know on the other side through OFA and the DNC and a lot of the groups are also mobilizing. But he's got to keep getting out there and making sure that they sort of get on offense on that narrative about what we're really trying to accomplish here.
I think similarly on the economy. Look, I think there is a balancing act, and I know this was part of the subject of the discussions over the weekend. On the one hand, we're seeing modest signs of improvement, but it's not -- you know, we can't just say, OK, everything's done and we've got a lot more work to do.
But I think setting expectations and making sure people really understand -- you know, again, this is a long-term process, this is not a six-month, 10-month process, it's going to be another year potentially because we've got to see the jobs coming back. So, I think, really getting out there and setting those expectations.
And, I think, the third thing really is to continue to do what he's been doing and that is: don't let Washington change you. You know, there's always this discussion when presidents come to Washington, "Are you going to change Washington? Or is Washington going to change you?"
ROBERTS: I mean, how does that sure (ph) to work out?
(LAUGHTER)
FINNEY: Well, you know, unfortunately it doesn't always work out. But hopefully -- you know, look, I think one of the strongest assets the president has and we talked about this last week in those polls, is that, he still maintains very high degree of support from the American people when it comes to trust and...
(CROSSTALK)
ROBERTS: Yes, his personal numbers are still sky high.
Ron -- let's get Ron in here, too, to talk about this. You know, at the beginning, Karen said that he needs to get health care done, and that the Republicans are going to go around scaring America about the health care bill over the next month, during the August recess. You're not really going to do that are you, Ron?
CHRISTIE: No. I think it's a very, very serious issue, John. And I think that when you look at the state of the economy where it is, I think Americans are very concerned about pocketbook issues. And that is: can I get a job? Can I keep my job? And for heaven sakes, if I lose my job, will the government be there to provide a safety net?
I think as people will go back to August and they are getting their kids ready to go back to school, they're going to start looking at this health care bill in greater detail and they're going to say, "Is this really everything that the president and the speaker of the House and minority leader and majority leader have been talking about? Or is this just the Democrats trying to push through an agenda?"
I think there are people who are very concerned about, "Will I be able to keep the doctor that I have or I'll be able to keep the insurance that I have?"
So, it's not a question of scare tactics. It's about education and it's about being very honest with the American people about what the bill will do and what it won't do, without demagoguing on either side of the issue.
FINNEY: Well -- unfortunately, though, Ron, what we've seen is that, already, the Republicans haven't actually been honest with the American people about what the bill will do and what it won't do. The president's been very clear from the beginning: if you like what you have, you can keep it. If you don't, there will be a public option available to you.
And, when we talk about what's happening in our economy, let's remember that reform of our health care system is eminently linked to what's happening in our economy. I mean, we know that a large percentage of the people who lost their homes due to foreclosure and bankruptcy was because of out-of-control health care costs.
ROBERTS: So, let me jump in on the top here. Another thing being thrown in the mix, yesterday, Tim Geithner and Larry Summers were out there and what appeared to be a coordinated message to says, "Maybe we're going to have to raise taxes and maybe we'll have to raise taxes on people in the middle-class."
Ron, how do you think that's going to play out over the August recess?
CHRISTIE: It's not going to play very well at all, John. I think that this president, when he came out, when he was campaigning earlier this year and he said, if you make $250,000 a year or less, you're not going to raise -- we're not going to raise your taxes, we're not going to raise capital gains...
ROBERTS: So, Karen, is he going to have to...
FINNEY: Yes.
ROBERTS: ... is he going to have to break that promise, Karen?
FINNEY: No. I mean, the president has been very clear on that and I would just take issue a little bit the...
ROBERTS: So, was George Bush, Sr. He was pretty clear...
(CROSSTALK)
FINNEY: Well, but, again, the conversations that have been -- the ideas that have been put out there about taxes are really focused on people at the top end. You know, we're talking about people who made $1 million more than that.
(CROSSTALK)
ROBERTS: But there's so many experts are saying you can tax the heck out of them and you still can't pay for everything you need to pay for.
(CROSSTALK)
CHRISTIE: The only thing I would say for this is that the president came out and he said very, very clearly that my health care plan is not going to raise one penny to the deficit and the Congressional Budget Office has found that that claim is not true. And so, when Karen talks about the president's been very truthful and the Democrats have been very truthful, the devil's in details and the details don't lie. These plans are very expensive.
FINNEY: That's true. They don't lie. And that's part of why, the more people learn the details of the plan, frankly, the more they like it. Going back to the tax issue, though, what we heard yesterday was, they're not taking anything off the table but they didn't say specifically that you should expect a tax increase on middle-income people. I think it's more honest to say, look, at this point in time, we have to keep everything on the table while we assess where we are and where we need to go.
ROBERTS: And...
FINNEY: So, the discussions about taxes really have been focused on, really, that high end. And again, I think we ought to look at it from the perspective of fairness. At the top end of the spectrum, those are folks who did very well in the last eight years. Now, it's time to balance that out for some middle income and low income people.
ROBERTS: And that is going to have to be the final word, unfortunately. Thanks very much, Karen Finney and Ron Christie. Great to see you this morning. We really appreciate it.
CHRISTIE: Pleasure, as always.
ROBERTS: All right.
FINNEY: Good morning.
ROBERTS: So, have the second 100 days of the Obama administration been days of change or days of frustration? Let your voice be heard. Cast your vote now at CNN.com/ReportCard. Then get the results from CNN's "National Report Card." That will be Thursday night at 8:00 Eastern, right here on CNN.
CHO: The Harvard professor arrested at his home in Cambridge, Henry Louis Gates, now says that arresting officer is a, quote, "nice guy." And he'll even help his kids get into Harvard. What? You're going to hear Professor Gates in his own words -- next.
Twenty-one minutes after the hour.
(COMMERCIAL BREAK)
(MUSIC)
CHO: That's a pretty shot, huh?
Salt Lake City, good morning to you, mostly cloudy it says and 68 degrees, that looks like a little sun there.
(CROSSTALK) ROBERTS: That is one of the most beautiful settings in the country with the Wasatch Range in the background there and some of the best skiing in the world.
CHO: I've never been. But now I'm going to plan to go.
ROBERTS: Oh, you've got to go. Oh, yes, Park City, Deer Valley, Snowbird, my favorite Alta, they're all back in those places. Not going to be skiing today, though, it's going to be 100 degrees.
CHO: Yes.
ROBERTS: Welcome back to the "Most News in the Morning."
Harvard Professor Henry Louis Gates, Jr. says that he has now able to joke about his arrest, you know, the one that sparked that huge debate on race across the country, one the president got involved in.
CHO: That's right. Well, Professor Gates spoke about how he had a cold one at the White House with Sergeant James Crowley for the first time. He spoke about it yesterday at a book signing in Martha's Vineyard, and he also says in the wake of this incident, he's even gotten death threats.
(BEGIN VIDEO CLIP)
HENRY LOUIS GATES, HARVARD UNIVERSITY PROFESSOR: You know what? I liked Crowley and I thought that we would like each other, and that -- you know, I don't know what we'll talk about. But I asked him if he would have lunch with me one-on-one. You know, I offered to get his kids into Harvard.
(LAUGHTER)
GATES. If he doesn't arrest me ever again.
(LAUGHTER)
GATES: I don't want to, you know, exaggerate it, but lots of people go through far worse things. I mean, I was in jail for four hours. Not four years or four months or four days. So, you know, I don't want to exaggerate the trauma.
But I shut down my public e-mail, because on the one hand we were getting thousands of fan letters, but we were also getting many, many crazy wacko death, you should die, you're a racist, et cetera. The night I went to the White House, I had a dream I got arrested in the White House. But it was cool, I was OK.
(END VIDEO CLIP)
CHO: You know, Gates says the two have talked about going out again to eat or catching a ball game. That must have been some beer at the White House. ROBERTS: Well, I mean, when you're put into a situation like that, you know, it tends to foster dialogue. And, obviously, at the end of the dialogue, is fostered a relationship, and maybe that will foster more dialogue and from there, we'll see where all this goes.
CHO: We should mention too that you were talking about this earlier that when he said he'd help his kids, Crowley's kids get into Harvard, there's a caveat there.
ROBERTS: Oh, yes.
CHO: As long as he doesn't get arrested again. Oh, boy.
We have some new developments, as well this morning in the custody battle over Michael Jackson's kids and the key court hearing will be held today. Our Jason Carroll has been working the story. He's going to be live next.
Twenty-seven minutes after the hour.
(COMMERCIAL BREAK)
(MUSIC)
ROBERTS: Welcome back to the "Most News in the Morning."
It is a big day in the Michael Jackson case. It looks like the custody issue of Jackson's children has been settled out of court. And surprise, surprise, it did not get ugly.
Jason Carroll is here now with the details.
Good morning.
JASON CARROLL, CNN CORRESPONDENT: Good morning to you.
You know, Katherine Jackson says basically she still feels like she's being kept in the dark when it comes to the financing, but an agreement has been reached in one area, Katherine Jackson and Debbie Rowe have been working behind the scenes to come to a custody arrangement for Jackson's eldest children, Prince and Paris, with Debbie Rowe.
Now, word of a deal. In the agreement, Katherine Jackson will have custody of the children, Debbie Rowe will get visitation as recommended by a psychologist. There will be no financial payments made to Rowe except for the continuation of spousal support payments that Michael Jackson personally agreed to after his divorce from Rowe.
Katherine Jackson's lawyer saying, "We were all united in our goals to do what is best for Michael's wonderful children and both Ms. Jackson and Debbie Rowe were on the exact same page."
Rowe's attorney also commenting on the deal saying, "The parties engaged in a dignified discussion that resulted in a dignified outcome. The sole consideration between the parties was the best interest of the children."
Attention now turns to Jackson's estate. Today, a judge will consider who will have permanent control. For now, John Branca, Jackson's long time personal attorney, and John McClain, a music industry executive and long time friend, have temporary control.
Katherine Jackson is not at all happy about that. She wants them to answer questions under oath if they are fit and able to administer the estate.
CNN's senior legal analyst Jeffrey Toobin says Katherine Jackson is walking a fine line.
(BEGIN VIDEO CLIP)
JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: I don't think she has any rights. If Michael Jackson had wanted her to be his executor, he could have named her, he didn't. This, I think, is not a legally defensible action she's taking.
Very carefully she is not contesting. She's asking for documents, she's asking for certain information, but she is not -- you know, she's no dummy.
(END VIDEO CLIP)
CARROLL: And you heard there, Jeffrey Toobin mentioned some of those documents. Her lawyers are expected to seek access pertaining to her son's estate. Seems she wants a say in how Jackson's vast fortune is being spent.
Her lawyers said to CBS such measures would not be necessary if Miss Jackson is appointed a co-executor of the estate. Not sure if that's going to happen. We'll have to see what happens during this hearing today in Los Angeles.
ROBERTS: A lot of matters to be talked about today. So we'll get an update on that a little bit later on.
CARROLL: Absolutely.
ROBERTS: Thanks so much for that.
It's now about 31 and a half minutes after the hour.
And checking this morning's top stories, are you going to end up owing the IRS more money? When he was Candidate Obama, he promised he wouldn't raise taxes on the middle class. But now that he's President Obama and the country's deep in the red, well, two of his top money men didn't rule it out on the Sunday talk show circuit.
CHO: And for the 13th day in a row, the price of gas is going up. AAA reports the national average of a gallon of regular unleaded is now $2.55. That's up more than a penny overnight.
ROBERTS: Plus, where is that AC/DC music? Ford, back in the black. The only one of the big three not to file for chapter 11 bankruptcy during the second quarter posted a profit of $2.3 billion.
Last year during the same quarter, Ford posted an $8.7 billion loss.
CHO: We are tracking two developing stories out of Iran this morning.
On the political front, the country's supreme leader is now endorsing President Mahmoud Ahmadinejad. It comes just at the right time. Ahmadinejad is due to be sworn in on Wednesday.
Tehran is also holding three Americans, arrested after apparently wandering into western Iran while hiking in neighboring Iraq.
So what does all of this mean for the already strained relations between the U.S. and Iran? Joining me now Reza Aslan, he's the author of the new book "How to win a Cosmic War." Reza, thank you for joining us, good morning to you.
As I mentioned and as you well know, Iran is holding those three Americans who somehow illegally, or so the Iranian government says, wandered into Iran as they were hiking along the Iraq border.
A couple of things struck me about this. Number one, I'm wondering how common it is for Americans to be hiking in this area. And also, there's a lot of talk about these Americans now being used as bargaining chips.
So sort of blueprint the Iranian strategy going forward on that front.
REZA ASLAN, PROFESSOR, UNIVERSITY OF CALIFORNIA AT RIVERSIDE: Well, I will tell you it's not all that common. This is a mountainous area and it requires a real adventurous spirit for anyone to actually try to tame it.
I think, look, this is a headache that Iran just does not need right now. It is already facing an enormous amount of international isolation, which I think is just going to get worse once Ahmadinejad becomes officially inaugurated.
And especially at a time when its economy is deteriorating and Iran needs to actually reach out to the international community much more than remain isolated, it would like this problem probably to go away.
I don't think you'll see Iran necessarily them use these Americans as bargaining chips, but probably they will be used as some sort of conciliatory gesture towards the United States after some time, because, I mean, Iran does have some reason, actually, to feel a bit suspicious.
They have claimed, you know, certain American actions in Iranian Kurdistan, also in the south.
So I think they're a little bit suspicious, but they want this to just go away.
ASLAN: I want to get to the political news. Mahmoud Ahmadinejad is going to be sworn in as president officially on Wednesday. Who could forget those massive protests following that June 12th disputed election?
So I'm just wondering, and we still see protests today, though, a bit smaller. You know, a lot of reformists still saying the election was rigged. So how much power and legitimacy do you think Ahmadinejad is really going to have in his second term?
ASLAN: This is going to be a very difficult process for Ahmadinejad, not just suddenly becoming in charge of this mess and figuring out a way to not -- to stabilize Iran domestically, but also, as I said before, to reach out to the international community for some much-needed investment in Iran's economy, which is really teetering on the verge of collapse.
At the same time, however, he's going to have a very difficult time putting his cabinet together. He's getting increasing pressure even from conservatives and hard line parliamentarians, about the way in which he's gone about putting together a team.
He's managed to ruffle some feathers. He's had some conflicts, even with the supreme leader about a vice president that he chose. Parliament is not very happy with Ahmadinejad.
And he's going to find it very difficult, I think, to governor. Even though the presidency is not all that strong of an office, its primary job, however, to control the state budget is the one that I think Ahmadinejad is going to have the hardest time doing, because he will need help from his political allies and his enemies. And right now people don't seem that happy with him.
CHO: Well, in fact, some Iranian experts are speaking to CNN, questioning whether Ahmadinejad will be able to finish out his second four-year term. So we'll have to wait to see on that one.
But I want to get to U.S. policy, because President Obama, as you know, has said he wants to reengage Iran. Well, other high-ranking members of the administration like Secretary of the Defense Robert Gates has said, you know, that offer is not going to be on the table forever.
So how should the U.S. approach Iran now that Ahmadinejad is officially going to be sworn in later this week?
ASLAN: You know, it's funny, in the United States for the first time, I think, in many years had a really well-consolidated, coordinated Iran policy based on engagement and diplomacy, and also engagement and diplomacy for America's sake, not for Iran's sake.
I mean, the fact of the matter is most of the things we want to do in the Middle East, whether it's peace between the Israelis and Palestinians or stabilizing Iraq so we can get our troops out, or cutting off the drug supply in Afghanistan, we need Iran's help for. So it was in our own national security interest to reach out to Iran.
But unfortunately what has happened in Iran over the last month makes that almost impossible to do, because we don't really know who to speak to on the other side any longer.
You said it perfectly. I mean, many people, I think, myself included, believe it's going to be very difficult for Ahmadinejad to actually finish his tenure, let alone be in a position in which he can bargain and negotiate with outside powers, especially the United States.
So America's Iran policy, I have to tell you, is really up in the air right now. No one knows what to do going forward. And as you just mentioned, you know, countries like Israel are not going to, you know, remain patient forever. I think they want some answer as to when talk is going to stop and action will begin.
CHO: Reza Aslan, author of the book "How to win a Cosmic War," we thank you for joining us today.
ASLAN: My pleasure.
ROBERTS: So the government's Cash for Clunkers program, where you can take a gas guzzler and trade it in and they'll give you up to $4,500 towards a new car.
CHO: Runaway hits.
ROBERTS: Runaway hit, yes. And so they're trying to get some more money for it. The House passed a measure that will give $2 billion more to the program. Senate's taking it up this week. Will they be able to get it passed? Our Christine Romans joins live next to talk about the chances.
It's 38 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: The administration's Cash for Clunkers program is proving to be a huge success, so much so that it might be extended. Well, it only lasted four days.
CHRISTINE ROMANS, CNN ANCHOR: I know.
ROBERTS: Christine Romans here minding your business this morning.
So what's the likelihood they are going to put some more money in this.
ROMANS: Only in America can we spend $1 billion in four days, right?
The likelihood it goes to the Senate, we'll find out. But the White House says if the Senate doesn't pass then this thing will be suspended by the middle of the week and no cash for clunkers.
This is where you bring your gas guzzler to the dealer, the dealer takes it, junks it, and you get up to $4,500 off a new car.
This is what somebody said in San Francisco said about his cash for clunker deal this weekend.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I traded in a car. I got $4,500 for a car I paid $4,000 for four years ago, it had 220,000 miles on it. So I think I got a great deal.
(END VIDEO CLIP)
ROMANS: God love him for driving a car for 220,000 miles, right?
It's working so well, it shows the American consumer is not dead. And a viewer this weekend sent me an ad from a furniture store, a furniture chain in Chicago in the Illinois area that shows they're doing a sofa for clunkers. You get $250 off an old sofa, bring it in.
But I think you're going to see that a lot of different kinds of businesses are going to try to tap into this, for the American consumer, if given enough of a push, will go and spend some money. And that's what the Cash for Clunkers has certainly shown, although some will say maybe they're robbing from future purchases of cars.
But it looks like Ford is going to have the first sales gain in two years because of this.
ROBERTS: I got some wild e-mails on this, this morning. People say this program only benefits the rich, they're the only ones that can afford gas guzzling cars to begin with.
And then another e-mail said, "What are they doing with these cars they're scrapping? Are they sending them to the third world countries without us knowing about them?"
ROMANS: That's an interesting question.
And you get the scrap value too, minus $50. The dealer gets $50 for every --
ROBERTS: So they're scrapping them?
ROMANS: They're scrapping them.
And if you look, they're spray painting on the hoods, they're disabling them before you walk off the lot. So all of that's there.
And also the size of the stimulus -- think about $787 billion. This program if it's added to be $3 billion by the Senate, it will be 0.38 percent of the whole program. It just shows you how you don't know what parts of this stimulus are going to be the thing that is going to actually work. This one, everyone's saying it's working so far.
CHO: Well, yes.
ROMANS: That's what a stimulus program looks like that's working, they say.
CHO: Christine Romans, minding your business.
ROMANS: Sure.
CHO: Christine, thanks.
Well, do you want to tweet, chat, friend Secretary of State Hillary Clinton? You can.
ROBERTS: I'm not even following her. I should.
CHO: Yes, you should.
And guess what, she's also going on YouTube and she's doing some new things she hasn't done before. We're going to tell you about it with our Jill Dougherty coming up.
(COMMERCIAL BREAK)
CHO: Welcome back to the most news in the morning.
Secretary of state Hillary Clinton is kicking off a seven-nation tour of Africa tomorrow. First she heads to Kenya, where President Obama's father was from.
But the State Department's also going online to get their message out. In fact, on the front page of state.gov there are actual links to four different social networking sites.
Foreign Affairs Correspondent Jill Dougherty is looking into this digital diplomacy.
(BEGIN VIDEOTAPE)
HILLARY CLINTON, U.S. SECRETARY OF STATE: "Text the Secretary" enables anyone with a cell phone to send me a question, which I hope you'll do.
JILL DOUGHERTY, CNN FOREIGN AFFAIR CORRESPONDENT: YouTube? Facebook? Twitter? Flickr? Welcome to Hillary Clinton's digital diplomacy.
ALEC ROSS, SENIOR ADVISER FOR INNOVATION: What we're now able to do is connect government to people, people to people, and people to government.
DOUGHERTY (on camera): You can even text the secretary and send her a question. Let's ask her what she thinks is the most important issue she's dealing with right now.
DOUGHERTY (voice-over): Secretary Clinton is using a variety of new media. Text messaging to raise money for Pakistani refugees.
CLINTON: Americans can text the word "swat," S-W-A-T, to the number 20222, that's 20222, and make a $5 contribution.
DOUGHERTY: She sent a team of CEOs from technology giants like Google and Twitter to Baghdad to jump start Iraqi's online revolution. She's held digital town halls like this one in the Dominican Republic, where citizens can watch online and participate.
DOUGHERTY (on camera): Secretary Clinton even has an interactive map where you can track her travel. On her latest trip, she started out in Mumbai, India, then flew to New Delhi, and now she's in Thailand.
DOUGHERTY (voice-over): Alec Ross, Clinton's innovation guru, says it's not just the medium, it's the message.
ROSS: Technology in and of itself is not what's interesting and what's important. What's interesting and important are the goals that technology can help produce.
DOUGHERTY: During Iran's recent street protests, the State Department intervened to keep Twitter up and running for demonstrators to communicate.
CLINTON: We communicate literally at the speed of light.
DOUGHERTY: The State Department says since the inauguration, its Facebook friends have increased 250 percent, YouTube views are up 418 percent, and Twitter up more than 600 percent.
Jill Dougherty, CNN, Washington.
(END VIDEOTAPE)
ROBERTS: I'm trying to follow her. I'm on Twitter right now trying to find her, but there's so many Hillary Clintons, and I don't think any of them are her.
CHO: Will the real one please stand up?
(LAUGHTER)
ROBERTS: Exactly.
OK, so storms forecast in the Midwest this morning and this afternoon. We've got some severe weather across the nation. How about the thunderstorms yesterday in New York around noontime? Rob has the travel forecast coming right up. Stay with us.
(COMMERCIAL BREAK)
(WEATHER BREAK)
CHO: Our John Zarrella, he gets those animal assignments quite often, being our Miami correspondent. Take a look at that. He actually went out with python hunters, and we're going to have that story after the break. Stay with us.
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CHO: Does that not put you in the mood for Monday morning? Good morning, Miami -- 56 minutes after the hour. It's scattered clouds and 84 degrees, it's going up to 92 and partly cloudy.
ROBERTS: That's not bad for this time of year in Miami.
CHO: One man in the middle of the Everglades, by the way, in the dark of night, trying to capture predator.
ROBERTS: His mission -- capturing slithering eco disasters. Our John Zarrella is on patrol with the Python Hunter.
(BEGIN VIDEOTAPE)
JOHN ZARRELLA, CNN CORRESPONDENT: Joe Wasilewski drives along a narrow stretch of road that bisects Florida's Everglades. Night is coming on quickly. He's looking for snakes, one in particular.
JOE WASILEWSKI, TRAPS BURMESE PYTHONS FOR FLORIDA: The next 10 miles seems to be the hot spot for Burmese pythons.
ZARRELLA: Wasilewski, a reptile expert, is one of a handful of men sanctioned by the state to hunt down and rid the glades of pythons, an extraordinary move in response to what scientists believe is a rapidly growing threat to the delicate ecosystem.
WASILEWSKI: It's a large predator. And they're eating, basically everything in sight. That's the problem.
ZARRELLA: Twenty years ago, there were none here, today, perhaps 100,000. No one is quite sure.
Night is the best time to catch these non-venomous snakes. That's when they're on the move.
Wasilewski spots something. He jumps from the truck, runs to it.
WASILEWSKI: This is not a python, it's a banded water snake.
ZARRELLA (on camera): Banded water snake?
WASILEWSKI: Yes. You want to pick him up?
ZARRELLA: Do I?
WASILEWSKI: He'll bite you.
ZARRELLA (voice-over): An hour driving back and forth across the roads, still no pythons, at least not alive. There's a dead one, and several more small snakes. A baby alligator, too.
WASILEWSKI: Oh, man. And he got hit by a car.
ZARRELLA: Two hours into our hunt, suddenly Wasilewski is on it. He sees one.
WASILEWSKI: Yes, baby. Look at the size of this one.
ZARRELLA: Skillfully, he grabs it behind the head. It's instantly coils around his arm. Wasilewski will lock the snake in a crate and take it to the national park biologists to be studied and destroyed.
But first, we've got to untangle it from his arm.
WASILEWSKI: And this isn't a big one.
ZARRELLA (on camera): This is a good 10 feet.
WASILEWSKI: No, at least 12.
ZARRELLA: Wasilewski doesn't get paid. It's voluntary. While he knows they've got to be eliminated, he's got a soft spot for the reptile.
WASILEWSKI: And guess what? It's not this snake's fault. He didn't mean to be here.
ZARRELLA: Some are believed to have gotten here when reptile breeding facilities near the Everglades were destroyed during hurricane Andrew.
WASILEWSKI: Why don't you take this side?
ZARRELLA (on camera): You take that side. You take the head and I've got the back end.
ZARRELLA (voice-over): Others from pet owners who disposed of them when they got too big. They can grow up to 200 pounds.
But this one is no longer a problem.
WASILEWSKI: One down, 100,000 more to go.
ZARRELLA: John Zarrella, CNN, the Florida Everglades.
(END VIDEO CLIP)
ROBERTS: Wise move on John's part, I think, to let the wrangler have the business end of the snake.
(LAUGHTER)
CHO: That's right. Brave man that Zarrella.
ROBERTS: John Zarrella is a smart fella.
Well, we know it's Monday, and you're trying to rake the cobwebs out of your brain after the weekend. But to make you feel just a little bit better today, you're almost guaranteed to have a better day at work than this demolition team in Turkey did. Watch this. (VIDEO CLIP)
They were trying to make this old flower factory collapse in on itself, but instead it decided to do a little somersault there. We can feel free to laugh about all of this, because there were no reports of any injuries, although a witness said the rolling factory did manage to stop just a few feet from the building next door.
CHO: Yes, it looks like that building was just far enough.
ROBERTS: Pretty well-constructed, though. It stayed in one piece as it rolled over.
CHO: And amazing nobody was hurt. So that's great news.
Thanks so much for joining us on this "American Morning." I'm Alina Cho along with John Roberts.
ROBERTS: See you back here again bright and early tomorrow.
Right now here's "CNN NEWSROOM" with Heidi Collins.
