Return to Transcripts main page

CNN Newsroom

15.1 Million People Out of Work; Letterman's Late Show Confession; Chicago Eliminated From Hosting 2016 Games

Aired October 02, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: It is Friday morning, the 2nd of October, and here are the top stories for you in the CNN NEWSROOM.

Nail-biting suspense in Chicago. The city and everybody else is about to find out if it will host the 2016 Olympics.

Funnyman David Letterman gets serious. Sex in the office and a demand for hush money.

And paradise lost in the South Pacific. American Samoa plans to bury the dead from this week's tsunami.

Good morning, everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.

Olympic boosters on four continents are waiting and watching right now. Will it be Rio, Madrid, Tokyo, or Chicago in 2016? The International Olympic Committee goes behind closed doors at this hour to vote. The winner revealed during this edition of CNN NEWSROOM.

The U.S. fields a dream team of Chicagoans to lobby for the games. Head cheerleader, President Barack Obama.

Senior White House Correspondent Ed Henry live in Copenhagen.

And Ed, the president and first lady making the final pitch. But I'm reading your tweets this morning. And you made the point that the first lady may have stolen the show.

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: I think absolutely. I can tell you, I was up I think a little bit before you, Tony. It was about 1:00 a.m. Eastern Time that I was crawling out of bed. Not that I'm bitter or anything. And I was getting here real early to work because it was six hours in advance.

And I can hardly complain, because the president flew about seven hours on Air Force One, and is flying now seven hours back. Add that up, 14 hours in the air, compared to four hours on the ground here in Denmark. He obviously had to get some shuteye on that big bird, because he had a big lobbying job to do when he landed here.

You're absolutely right, that was my impression here in the wee hours watching both of them speak. The president spoke last. He certainly gave a very strong final pitch for his adopted hometown, but it really was the first lady stealing the show, because she was very emotional. You could hear her sort of halting in her voice at certain points as she told this story about how her father was nearly disabled -- her late father -- while she was growing up. But he was still there for her, trying to teach her how to play sports.

Take a listen.

(BEGIN VIDEO CLIP)

MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: My dad taught us the fundamental rules of the game, rules that continue to guide our lives today -- to engage with honor, with dignity, and fair play. My dad was my hero. And when I think of what these games can mean to people all over the world, I think about people like my dad, people who face seemingly insurmountable challenges but never let go. They work a little harder but they never give up.

(END VIDEO CLIP)

HENRY: You could hear the emotion in the first lady's voice, certainly. And her father had multiple sclerosis, of course. She's talked about that before.

But interesting that when the president was leaving, doing some glad-handing with some of these International Olympic Committee delegates and members, he was asked about all of this, and he said the only part he's upset about with his lobbying is that he had to follow the first lady, he had to come after her. Because I tell you, her speech was pretty moving -- Tony.

HARRIS: Ed, appreciate it. Thank you.

We're going to let you go so that you can get ready for your radio show.

And you can tune in this hour to hear more behind-the-scenes perspectives of the Chicago Olympic bid in Denmark. You can listen to Ed at CNN.com and CNN Radio.

So, which city do you think will win the bid to host the Olympics in 2016? We're talking about Rio, Madrid, Tokyo or Chicago. Just give us your "Quick Vote." Just go to CNN.com/Tony.

So, let's take a look now at the results so far. Rio and Chicago -- numbers please. Wow.

Rio taking the lead on this for the first time in our tracking of this "Quick Vote." Let's look at Tokyo and Madrid very quickly here. And the numbers -- drum roll here.

All right. Boy, all right. We will continue to track the "Quick Vote."

Just go to CNN.com/Tony if you would like to register your vote.

What does it take to host the summer games? Coming up at the half hour, we will talk to one of the organizers from Atlanta's 1996 games, as well as have more live reports from Chicago and Copenhagen.

Issue number one, it is all about jobs today. A new report shows the recession is still inflicting a lot of pain. The unemployment rate ticked up to 9.8 percent last month, a 26-year high. And 263,000 people lost their jobs.

Susan Lisovicz is at the New York Stock Exchange.

Good too see you this morning, Susan. If you would, break out these numbers for us.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: Sure, Tony.

Well, we'll start with the biggest number of all. And the reason why we call this the Great Recession, there are more than 15 million people out of work in this country.

Now, one thing we have noticed, and we've been happy to point it out, the pace of job losses has been slowly improving. But it got worse last month. So let's break out these numbers for you.

The service sector, which is the broadest part of the economy, we saw 147,000 jobs lost in September. Construction, 64,000. Even the government. This has been one area we've actually have seen growth, along with health care and education. We saw more than 50,000. Retailers, we saw quadruple the cuts that we saw in August.

And this number that we got today, for a total of more than 263,000, the specific number, was about 100,000 higher than the consensus number time a day ago. So, we saw the futures change instantly now before the opening bell, but, frankly, the Street has handled it pretty well. And right now you see very modest losses. But we're coming off, I might add, the worst sell-off since late June -- Tony.

HARRIS: Right. Yesterday was incredible to watch.

But back to this jobs report, Fed chief Ben Bernanke says the recession is probably over, and there is talk that the economy is actually growing, at least that it grew last quarter.

So, why aren't employers hiring yet?

LISOVICZ: It's really one of the most frustrating things that comes with these kind of downturns. We always say it's the lagging indicator, and, of course, that really just is jumbo when you are out of a job or when you're looking for a job. But typically, what you see is that employers don't commit to hire until they're sure that their business can support it. I mean, that's just a logical thing.

And buried in these numbers, Tony, we actually saw a loss of temporary jobs last month. Why is that important? Well, typically, employers will hire temp workers before adding permanent positions.

HARRIS: Yes.

LISOVICZ: We also saw the average workweek fall to 33 hours. That is a record low.

Ben Bernanke said yesterday even if the U.S. economy grew at a three percent pace, it would not in the short term drive down unemployment, that the rate would stay above nine percent through the end of next year. So, the unemployment rate now is double from where it was when this recession officially began in December of 2007.

HARRIS: Well, Susan, let's do this. I always talk about things that I want to do with you in kind of a breakout segment, but let's do something extended on this jobs report and what I think is a fundamental change in the labor market that's taking place right now. Some of these jobs I just don't think are coming back at all.

Let's do that on Monday. Can we do that?

LISOVICZ: Sure.

HARRIS: All right, Susan. Appreciate it. Have a great weekend. Thank you.

LISOVICZ: You too.

HARRIS: And you can get more information on the jobs report by logging on to CNNMoney.com.

And now to the bizarre story of the day. Serious business last night for "Late Show" host David Letterman. Letterman revealed that he had sexual relationships with members of his staff, and he says the liaisons led to a $2 million extortion plot against him.

CNN's Alina Cho has been following the story and has details from New York.

ALINA CHO, CNN CORRESPONDENT: Tony, good morning.

If you're a David Letterman fan, you are well aware that over the years, the talk show host often used his own show as a vehicle really to make major announcements about his life -- his marriage, his heart bypass surgery, even a kidnapping plot against his own son. But certainly never anything like this, something so personally damaging until now.

(BEGIN VIDEOTAPE)

CHO (voice-over): It started out like it has for nearly three decades...

UNIDENTIFIED MALE: It's the "Late Show with David Letterman."

CHO: ... late night laughs.

DAVID LETTERMAN, HOST, "LATE SHOW WITH DAVID LETTERMAN": It's so bright and sunny, the skunks were coming out of the subway squinting.

CHO: But after the monologue, it quickly turned serious. The audience stunned. LETTERMAN: This whole thing has been quite scary.

CHO: When David Letterman revealed he is the victim of an alleged extortion attempt.

LETTERMAN: This morning I did something I've never done in my life. I had to go downtown to testify before the grand jury.

CHO: Letterman said he received a package three weeks ago from a person who claimed to have information about his sex life. And he wanted $2 million. Pay up or he goes public.

LETTERMAN: I get to looking through it, and there's a letter in the package. And it says that I know that you do some terrible, terrible things. And I can prove that you do these terrible things. And sure enough contained in the package was stuff to prove that I do terrible things.

CHO: The 62-year-old host went to the Manhattan district attorney's office which began an investigation. Letterman said he set up several meetings with a man who he said wanted to turn his life off stage into a screenplay, possibly a book, and gave him a fake check for $2 million. On Thursday, an arrest, then another bombshell.

LETTERMAN: And I had to tell them all of the creepy things that I have done that were going to be -- well, now, why is that funny? That's, I mean...

CHO: The admission right from the host, right from his desk.

LETTERMAN: The creepy stuff was that I have had sex with women who work for me on this show.

CHO: He tried to break the tension by taking shots at his favorite target, himself.

LETTERMAN: And would it be embarrassing if it were made public? Perhaps it would. Perhaps it would. Especially for the women.

CHO: It is not known when the sexual encounters with staffers took place. Letterman married longtime partner Regina Lasko in March. The couple has been together since 1986, and they have a 6-year-old son, Harry.

(END VIDEOTAPE)

CHO: CBS News is reporting the suspect has been identified as 51-year-old Joe Halderman, a long-time producer at CBS News. Interesting to note that this stunning admission comes at a time of great success in Letterman's career. After lagging behind Jay Leno for years, he now consistently beats Conan O'Brien in the ratings.

As for his future, Letterman said last night that he hopes to protect his job. CBS so far is not commenting -- Tony.

HARRIS: Alina, appreciate it. Thank you. A little more information now on the suspect. Joe Halderman, the "48 Hours" employee, has worked for CBS for more than 20 years, according to the network. He is described as an award-winning journalist who has covered several wars for CBS. The network says he has been suspended pending results of an investigation.

Devastation and death after huge storms and earthquakes. You will hear from one man who was trapped in rubble for 30 hours.

But first, to Wall Street for a look at the Big Board and stocks. We are back in a moment.

(COMMERCIAL BREAK)

HARRIS: Rescue and recovery efforts are in high gear on the Indonesian island of Sumatra. The first of two powerful earthquakes struck Wednesday. The death toll has now reached 1,100.

Hundreds of buildings were destroyed with people were inside. We're still hearing reports of survivors being pulled from the rubble.

CNN cameraman Mark Phillips (ph) stayed with one man waiting to be rescued.

(BEGIN VIDEO CLIP)

MARK PHILLIPS (ph), CNN CAMERAMAN: What were you thinking while you were buried?

JOHN LEE, EARTHQUAKE SURVIVOR: I was thinking I would finally say good-bye to the world. Thanks to everybody that -- and then after that, I just pray for a miracle.

(END VIDEO CLIP)

HARRIS: Farther south, in Samoa, island officials say at least 168 people were killed by Tuesday's 8.0 earthquake and tsunami. A ceremony and mass burial for victims is planned for next Tuesday.

CNN's Hugh Williams has more on massive cleanup, rescue and recovery efforts.

(BEGIN VIDEOTAPE)

HUGH WILLIAMS, CNN PRODUCER (voice-over): Police comb through the wreckage in a grim search for the bodies of two small children missing since the tsunami struck. Other residents digging through the debris looking for possessions or burning off and cleaning up. Some using face masks to stop the smell. The only creature happy in this mud and stench is perhaps this pig.

In this small village on the southern coast, eight people died and all but two houses were destroyed. This yellow house begins to Sonny, who told us that he barely survived.

(on camera): After the earthquake hit, Sonny only had enough time to get his daughter into his vehicle when the wave hit them, picked up the car, and dumped it right here, about 500 meters away from the road. They only managed to escape by jumping out of the sunroof and swimming away.

(voice-over): The rest of the villagers ran up this dirt trek through a coconut plantation where they still remain. Refugees in their own country, with nothing left, they are now living under tents with donated food and clothing. But they are still getting help and much needed medical supplies.

FALESEU LEUTE, VILLAGE ELDER: We know we love our village, but we can't go there now. There's nothing -- no homes. Nothing.

WILLIAMS: Sonny says that they will continue the cleanup and rebuild because there is no other option.

SONNY PURCELL, TSUNAMI SURVIVOR: We have been living here, my parents, grandparents. They were raised from here. So, we'll just come over here and rebuild it again.

WILLIAMS: But right now, the rebuilding task looks bigger than anyone here can imagine.

Hugh Williams, CNN, Malaela, Samoa.

(END VIDEOTAPE)

HARRIS: So, that's the view from Samoa

(WEATHER REPORT)

HARRIS: Chicago -- live pictures now -- on pins and needles, waiting for the word. The International Olympic committee next hour announces the host city for the 2016 summer games. The other contenders are Rio de Janeiro, Madrid and Tokyo.

Live coverage straight ahead for you in the CNN NEWSROOM.

It is a race against time in Indonesia. Search and rescue efforts now into a third day since the first of two powerful earthquakes hit. The U.N. says at least 1,100 people are dead. Thousands more are feared trapped in the rubble.

If you would like to get involved with relief efforts, take a look at our "Impact Your World" homepage at CNN.com/impact.

The top U.S. commander in Iraq says it may be five or 10 years or more before the U.S. knows if it really won the war. Army General Ray Odierno says he wants to draw down U.S. forces at a faster rate. If the security situation allows it, the current plan is to have all troops out by the end of 2011.

This videotape is just what Israel has been looking for, so- called proof of life. That's Israeli soldier Gilad Shalit. Shalit was abducted in June of 2006 by Palestinian militants who crossed into Israel from Gaza. Israel released 19 Palestinian women prisoners today in exchange for the videotape.

You heard earlier the unemployment rate is nearing 10 percent. So, if you need a job, where should you look? Personal Finance Editor Gerri Willis answers your viewer e-mails.

That's next in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: OK. So, let's set the scene for you right now, what's going on in Chicago and in Copenhagen right now.

Chicago is the top right -- yes, top right as you're watching us of your screen right now. Copenhagen is just below that scene out of Chicago.

Obviously, in Chicago, everybody is on pins and needles. Chicago is one of four cities in the running now to be the host city for the 2016 summer games. You've been following that with us.

Where the action is really taking place now is in Copenhagen, where we're getting an explainer now of how the voting process will take place. We will soon move on to the first round of voting.

The first round of voting just concluded? Are we going to get an announcement now?

We've got someone running -- I'm hoping to a podium where there's a microphone where we will get an announcement. Yes, I think this is going to work out just perfectly.

So, let's do this -- let's take you to Copenhagen right now, where we're about to get an announcement of the first city out.

Let's have a listen.

JACQUES ROGGE, PRESIDENT, IOC: Votes given, 95. Participants, 94. Abstention, nil. Void, nil. Valid ballots, 94.

The city of Chicago, having obtained the least number of votes, will not participate in the next round.

HARRIS: Chicago is out. Chicago is out. Let's get A.D. miked up here.

UNIDENTIFIED MALE: We shall now proceed immediately with another round of votes.

HARRIS: Madrid is still in. Tokyo is still in.

Wait a minute. Chicago is out?

I want to hear the sound in the room. Let's listen to the sound in the room.

Take us back to Copenhagen. UNIDENTIFIED MALE: Unbelievable development that we have just witnessed here in Copenhagen. No one expected this development. And an audible gasp went up in this building when the announcement was made.

HARRIS: All right. Yes.

Do we have Copenhagen? Just let me know who we have and what I'm hearing. It's just not there.

OK.

We have got A.D. Frazier miked up. Let's take a moment and talk to A.D. Frazier, who is the chief operating officer for Atlanta's successful bid and the successful bid of the Olympics here in 1996.

A.D., honestly, how surprised are you with this news?

A.D. FRAZIER, FMR. COO, ATLANTA OLYMPIC GAMES: I'm stunned. I'm absolutely stunned. Obviously disappointed, because Chicago has a spectacular bid and a spectacular plan, great leadership, and it's a perfect place for the Olympics, the best city in America to host the Olympics.

HARRIS: A crazy sports town.

FRAZIER: Sports nuts. They're completely sports nuts. I lived there for 15 years, followed the Cubs, followed the Bears. Cannot believe this.

It's just beyond belief. I would have thought they would be the perfect choice for the 2016 games.

HARRIS: OK. So, Rio is still in the running. Madrid's still in the running. Tokyo is still in the running. But the story now is that in the first round, in the first round of voting, Chicago eliminated.

Let's take you to Chicago now. And CNN's Ali Velshi is there.

Ali, if you would, describe the reaction to this stunning news.

Ali, are you there? Can you hear me OK?

All right. Let's bring it back here to Atlanta.

Guys, just let me know when Ali can hear me.

A.D., what do you have here?

FRAZIER: Well, this is the ballot. This is the way they do it. And one of the IOC members gave this to Billy Payne.

It shows that...

HARRIS: Well, tell everyone who Billy Payne... FRAZIER: Billy Payne is the CEO of the Olympic bid in Atlanta, and was the chief executive whom I worked for, for six years.

But the way they do it is they list all the cities, and then each candidate city gets a number of votes in the first round. And the first round in 1990, when this vote was taken, Atlanta only got 19 votes. Athens got 23.

HARRIS: Yes.

FRAZIER: But Belgrade got seven. So they were eliminated. And then the next round eliminated Manchester. The next round eliminated Melbourne. And the last round eliminated Toronto, and you can see that most of the Toronto votes went to Atlanta instead of Athens.

HARRIS: I see. Got you.

FRAZIER: And so this is just the way they keep the tally. And it's a very simple thing. But I'm still stunned by the news about Chicago. I just find it hard to believe.

HARRIS: Well, let's take you there now. Ali can hear me now.

Ali, if you would, describe just moments ago the reaction when we all heard the news that Chicago was eliminated in the first round.

ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Tony, the reaction was exactly what your reaction was. I was listening to you. Dumbfounded is really the word that we can use. Nobody was expecting this.

The general thought here was that Chicago was in top contention, probably along with Rio. There was no particular reason to think that, but that is what the feeling was.

Most people around here -- there are signs that say "It's going to happen." When the announcement came through, there was almost momentary confusion, to say -- somebody leaned over to me and said, "Did they just eliminate Chicago?"

Dumbfounded. The crowd -- thousands of people here in Daley Plaza were fully expecting that someone else would be eliminated in the first round, and then they would hear the announcement around the noon hour, at about 12:55, which is what we expected to hear. And really, people were planning for a celebration here.

Now the crowd is starting to peter out. Already, people are going home. Some of the most disappointing looks. This is not what was being expected. There were people that thought that Chicago might not win this. There were people who came and told me that today. But there was definitely not the sense that Chicago would be the first one to be eliminated.

HARRIS: Well, I'm interested in that. Based on what, Ali? People talking to you and expressing to you their thought that -- by the way, Tokyo -- is that correct, Tokyo just eliminated? Tokyo just eliminated.

So, of the two remaining cities for the 2016 summer games, Rio and Madrid. But the people who you're referring to, Ali, who came to you and expressed their thought that Chicago wouldn't win the bid, what was the rationale?

VELSHI: Well, there's a fairly substantial number of people in Chicago who were not supporting the bid. They feel that the city, while it's very successful and it's world-class and has great restaurants and entertainment, it has a lot of problems that urban centers are associated with, and that the money would be better spent on dealing with the crime issue that we've heard so much about this year and dealing with public education.

And they felt that it shouldn't have been a priority for the city but that crime in particular might play some role in shying people away from voting for Chicago. It wasn't very scientific. These are people who are saying...

VELSHI: Yes, yes, yes.

VELSHI: ... they think that Rio has a better chance. That's what I was maily hearing, that they thought it was between Rio and Chicago, at least on the ground here. So, this was a big surprise to a lot of people. I'd heard a lot of people thinking that they thought Tokyo might be eliminated and probably Madrid. But they really didn't expect that Chicago would be out on the first ballot.

HARRIS: Yes. All right, Ali, let's do this. Let's give you an opportunity to talk to some folks there, and we'll talk to you again in just a minute or so. Let's come back to Atlanta now and A.D. Frazier, chief operating officer of the Atlanta Committee for the Olympic Games from 1981 to 1986. A.D., as you take a look at this now, so Chicago's out, first round.

A.D. FRAZIER, FORMER CHIEF OPERATING OFFICER, ATLANTA COMMITTEE FOR THE OLYMPIC GAMES: Chicago's out. Tokyo's out.

HARRIS: Tokyo's out.

FRAZIER: Tokyo's had the Olympics before. It was between Madrid and Rio. I was in Barcelona for the 1992 games, and they've had it in Spain in 1992 and if my Twitter is any good, I think it's going to be Rio.

HARRIS: And this -- it's...

FRAZIER: And the reason for Rio they've given was that Rio -- the South American continent has never had the Olympic games. I find that to be a -- not a very useful reason, but it's something that people fell for.

HARRIS: Well, let's make the case for why a lot of us felt Chicago was the front runner here. Mike, I'll let you make the case.

FRAZIER: Well, I'll make the case that Chicago in my opinion is a front runner because, first, it's a huge city with a tremendous infrastructure, perfectly capable of handling this kind of crowd.

HARRIS: Yes.

FRAZIER: Great sports town. Perfectly appropriated vision for the venues and for the setup and for the organization. Well funded. It's the central time zone, so TV...

HARRIS: Oh, my goodness, yes.

FRAZIER: ... TV time can broadcast live in Europe and live in Asia from central time zone, so you don't get a lot of tape delays. That means ad revenues would be greater, television ad revenues.

The people in Chicago are a literal picture of the citizens of the world. The people are from Greece, from Hungary, from Poland, from the Czech Republic, from Brazil, from Japan. All the parts of the world are represented in Chicago. It's a really multiracial and multiethnic city, and none of the other cities is, so it sort of personifies the Olympic ideal.

HARRIS: Let's go back to Copenhagen.

UNIDENTIFIED MALE: Excuse me. I have just information.

HARRIS: OK, this is a feed provided to us by the IOC. All right. So, the voting is closed. So, there's a winner.

FRAZIER: There's a winner.

HARRIS: There is a winner. Let me talk to the control room for just a second here. Can we get Shasta Darlington up? I know she's in Rio. But let me know. I -- we're going to work on getting Shasta up. And as soon as we can, we will talk to Shasta Darlington.

But let's do this. Let's take a quick break, and we'll come back with -- boy, there's so much to talk about here. Stunning news. Chicago eliminated in the first round of voting. A.D. Frazier is here with me in Atlanta.

Let's take a quick break. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: OK, just a -- there's no other way to describe it. It's sort of stunning news. In the first round of voting here for the city that would host, be given the rights to host the 2016 summer games, Chicago is out, is absolutely out. We still have -- we have two cities still in contention now, Rio and Madrid.

And let's talk to A.D. Frazier more now. And, A.D. I was just saying a moment ago, I'm wondering, folks will hear that Chicago went out in the first round and think of that as a real repudiation of the bid, the delegation's work, of the city itself. But you're saying to me, hold on just a second here.

FRAZIER: I don't think that's a fair way to characterize it. As you know, the cities are eliminated by whoever gets the fewest votes and then the next fewest votes and so forth, and they work up to the top. And now there's two cities remaining, Madrid and Rio.

And I guess the smart money now is on Rio.

HARRIS: Yes.

FRAZIER: But this is by no means a repudiation of Chicago's bid. They could have lost by one vote.

HARRIS: I see.

FRAZIER: They probably did.

HARRIS: I see.

FRAZIER: It's probably that close. And I felt when President Obama -- and I'm glad he went.

HARRIS: Yes.

FRAZIER: When President Obama went at the last minute, that sort of caused me to twitch a little bit, thinking that maybe Mayor Daley, who's my friend, one of these people there, said, look, you need to come and help us out for this last push over the top, because that's the way it works, for this last push over the top. So, I'm sure that's why they asked him to come at the last minute. And I'm glad he went.

HARRIS: Yes. I'm not trying to spin this at all because I think this is still really stunning news. But I'm wondering if it's a blessing in disguise. I mean, you know firsthand -- you know where I'm going with this -- what a difficult, monumental task it is to mount these games.

FRAZIER: It is. It is. If there's anything that works against U.S. cities, and very little works against us, it is the fact that unlike every other country in the world, we use private funds to put the games on and all of the support for them.

The entire budget of Brazil or Spain will be put behind these things and put behind the event. So, it's not a private function doing it. It's a public entity doing it. In Barcelona, there was a bond issue raised, $7 or $8 billion of public money spent in Barcelona around the Olympic games.

HARRIS: Right, right.

FRAZIER: So, after it was over, it was a big letdown, too, but the point is that the government's behind it. In the United States, it's not quite the same. We rely on private funds. And there were some guarantees, but there may have been some uneasiness on the part of the IOC about that. But I think it was by no means a repudiation of the Chicago bid.

HARRIS: Yes, yes. FRAZIER: It was a great effort. And I'm not so sure they won't try again.

HARRIS: Good, good, good. Glad to hear that. Let's take you to Rio now, because I -- boy, I can imagine the folks there are just probably overjoyed, nervous as well. They're in the final two right now.

Shasta Darlington is in Rio. And Shasta, boy, first of all, I want to get your sense of what the reaction was after it was announced, the first round of voting was announced And Chicago was out and that Rio was still in the running.

SHASTA DARLINGTON, CNN INTERNATIONAL CORRESPONDENT: Well, Tony, this has actually been a party even before then. I mean, people have been arriving all day. Rio has declared this a public holiday. And there was a live band playing when this announcement was made, so they're probably going to announce it on the stage any second now, and then we'll get that reaction.

But let me tell you, these people here, known as (INAUDIBLE), the residents of Rio, they're convinced they're going to win. I mean, they have no doubt about this. The fact that Chicago's out of the running, I think, will definitely lift spirits even further, if that's possible. But this is just one ongoing party. I mean, we're expecting at least 100,000 people down on the beach here. And again, like we say, this is a public holiday, so who wouldn't come and spend their day on the beach, right, Tony?

HARRIS: Yes. OK. Shasta, we've got to run. But I want to get back to you with more reaction as we move farther along in this process. You know, I'm not quite sure where we're going now. But let me just tell you what's coming here. We've got Al Goodman, who is in Madrid, who's available to us. And my understanding is that, A.D., Michael Jordan will be joining us shortly.

FRAZIER: I'm looking forward to seeing him. He's one of my (INAUDIBLE).

HARRIS: Very soon.

Yes, let's go to Al Goodman right now in Madrid. Al, good to talk to you.

Are the good people there in Madrid aware of the fact that Madrid is still very much in the running right now? Shasta mentioned that the folks in Rio may not be aware at this point.

AL GOODMAN, CNN CORRESPONDENT: Yes, well, let me tell you the people right behind me here are definitely aware that Madrid is in the running. There was a lot of surprise here that Madrid maybe did not get eliminated in the first round in the second round. They were shocked to see Chicago drop out so early, and they are ecstatic that Madrid is now facing off against Rio. It's a Latin face-off here for the 2016 games. A lot of people in Spain didn't think Madrid would get this far because of the rotation problem. The IOC in 50 years has not given the games to the same continent two times in a row, and London, remember, has the next games in 2012. So, many people thought this was a lost cause for Madrid, and now they're in the finals. Back to you.

HARRIS: All right. Al, appreciate it. And I'm going to get to Ed Henry in just a quick moment. But A.D., you wanted to make a quick point.

FRAZIER: I was going to make a point that the Barcelona games was a very political event, as you know. And the Spanish government raised $7 or $8 billion to support Barcelona. In doing that, they also had to raise $7 or $8 billion to support the south of Spain.

So, they raised all this debt and inflated the currency, and after it was over with, they faced a huge financial downturn.

HARRIS: Yes, yes, yes.

FRAZIER: So, you know, they've got to think about the possibility of that happening again.

HARRIS: Well, I've got to -- at some point, I want to talk to you about the debt that is incurred by a lot of these cities that host these games. But I believe our senior White House correspondent Ed Henry is on the phone with us.

And Ed, we are absolutely -- look, I'm going to be honest with you. We are absolutely stunned to hear that Chicago doesn't make it to the final round, but is out in the first round.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT (via telephone): Tony, you're not the only one. I'm not the only one. I can tell you there was a gasp that was let out, a collective gasp, in the international media center. I was here doing my radio show, "44," on CNN.com. My producer, Erika Dimmler (ph), was running around with a little flip camera, taking pictures of the Tokyo delegation watching on these large-screen TVs the first-round results. And a lot of people around them were expecting that the Tokyo delegation might go out first.

When instead Chicago went out, it was almost pandemonium in here. People were absolutely, absolutely stunned. And I think the bottom line -- in covering the White House, I can tell you, oh to be a fly on the wall in Air Force One right now. The president and first lady after this very dramatic trip here into Copenhagen, the president in the air, essentially, for about 14 hours round trip, still heading back to D.C. now.

On the ground here for just four hours, thinking that would put it over the top. This has to be a blow to him. And I know, I've been on Air Force One enough times to know they've got CNN on that plane. So, the president knows these results, obviously. And you know that a lot of people around the world are going to be wondering about what kind of an impact on the international stage this is for a president who used a lot of political capital to weigh in for Chicago.

HARRIS: Ed, you're absolutely -- what the heck -- and I know it's probably way too early to know the answer to this question, but what the heck happened here? Come on. You may ultimately not win out over Rio, but not to get out of the first round? Any idea, any one offering up an assessment as to what possibly could have gone wrong here?

HENRY: Nobody is offering up an immediate response. I can tell you that the Chicago delegation's essentially underground now. A lot of them are at a hotel across town from here because they had a big party that we've been hearing details about that was planned for this evening. But of course, all of that was on hold until they got the official word.

To be clear, they were not celebrating before they won. But they had plans in place to have a big party at a hotel here. But they were not doing a lot of interviews. They were waiting until the voting took place. I can guarantee that Mayor Daley is just as shocked as we are.

I was on the phone with Congressman Danny Davis of Chicago. And I had to interrupt him while I was interviewing him on the radio show to say, Congressman, I've just been handed a note by my producer, Sally Holland (ph), here, one of our other great CNN producers here, saying, you won't believe this, but Chicago was just eliminated. She was -- had it on the earphones.

Because of all the international translation here, we got the news through these headphones, through a translator. And I tell you, there was a collective gasp in this room -- Tony.

HARRIS: Wow. Ed Henry in Copenhagen. He is there where it is all going down. Ed, appreciate it. Thank you.

We're going to take a quick break. A.D. Frazier's been with us. A.D., I know you've got a bunch of stuff you need to do today. But it's great spending time with you, and thanks for walking me, talking me through this process.

FRAZIER: Pleasure. And a great disappointment for our country.

HARRIS: Wow.

FRAZIER: And I wish -- Rio probably will win it, but we wish the winner well. And it's going to be a big project.

HARRIS: Yes. A.D., thanks. Appreciate it.

FRAZIER: You bet. Good to see you.

HARRIS: We'll be back with more CNN NEWSROOM in just a moment.

(COMMERCIAL BREAK)

HARRIS: So, NBA Hall of Famer, the best basketball player ever on the planet, the man who rocked the United Center in Chicago for so many years, so many titles there. Michael Jordan on the line with us. Michael, what's your reaction to this news?

MICHAEL JORDAN, FORMER NBA STAR (via telephone): I am stunned. I'm totally stunned. I felt like we had a great opportunity. I felt like Mayor Daley, Pat Ryan, all the Chicago committee guys, they did a great job presenting the city, as well as the president and the first lady. And I'm just as stunned as everybody else.

HARRIS: Michael, did you see the pitch?

JORDAN: Yes, I saw it. And I felt like they did a great job, you know. I just felt like we were in without a doubt.

HARRIS: Talk to us about how crazy a sports city Chicago is.

JORDAN: I mean, it's one of the best places to play, I mean, without a doubt. I mean, you know, they have supported me for years. I went there without...

HARRIS: Oh, yes.

JORDAN: ... even knowing anyone, and they basically supported me as well as the Bears, as well as all the sports that's in the city of Chicago.

HARRIS: Cubs, White Sox, everyone.

JORDAN: Without a doubt. And I can't believe that they did not win.

HARRIS: Blackhawks as well.

Any idea in your mind -- look, Rio's a great city. Madrid's a great city. Tokyo's a great city. We know that, but when you think about putting the Olympics in Chicago, in the center of the country, central time zone, you can broadcast live to the East Coast, the West Coast, it seemed -- the president calling Chicago -- making Chicago his home, the first lady born and raised in Chicago. Didn't it feel perfect to you?

JORDAN: I felt like it was a great mix for the world. I mean, I obviously, because of all the athletic events that happen in the city...

HARRIS: Yes.

JORDAN: ... you know, how big a city it is, but it doesn't seem big, and it's great to get around and see people and meet new people, I felt like it was perfect for the world to explore.

HARRIS: Yes, yes. Were you a part of the pitch?

JORDAN: Yes. Actually, I started off doing a PSA early on. You know, I was part of the whole commitment, and, you know, I'm just as stunned as anyone else. HARRIS: Well, you think Chicago will try again?

JORDAN: I hope so. I think it's very deserving of an event to that magnitude, without a doubt.

HARRIS: NBA Hall of Famer. Boy, Dream Team -- how many Olympic medals, golds, do you have? Is it two?

JORDAN: Yes, I have two. And I was part of the L.A., which, you know, was much fun, you know, when the Olympics was here in L.A. in the States. And, you know, I was hoping for that opportunity again.

HARRIS: How cool would it have been for the basketball team in 2016 to be rocking it in the United Center? That place would have been crazy.

JORDAN: I would have loved to have seen it, you know? Just to -- from all the historic things that's happened in that arena, I mean, it would have been great for the world to see.

HARRIS: All right. Michael, make sure I get my invitation to the golf tournament this year, all right?

JORDAN: All right.

HARRIS: I don't know what's happening with the mail system these days.

Hall of Famer Michael Jordan. Michael, thanks for your time.

JORDAN: All right, Tony.

HARRIS: Appreciate it.

A blue-ribbon panel has whittled down the list of CNN Heroes for 2009 to the top ten. The Hero of the Year announcement coming Thanksgiving Night.

(BEGIN VIDEOTAPE)

ANNOUNCER: This is CNN Heroes.

JOHN LEGEND, MUSICIAN: Hello, I'm John Legend. During last year's CNN Heroes and the all-star tribute, I had the honor of performing and helping to recognize the great works of everyday citizens changing the world. As founder of the Show Me Campaign, which seeks an end to global poverty, I am thrilled to be able to help CNN introduce one of this year's top ten honorees. Now more than ever, the world needs heroes.

DOC HENDLEY, COMMUNITY CRUSADER: Approximately 1 billion lack access to clean water. It's killing more children than AIDS and malaria combined. And yet, all that can be prevented. Your regulars especially sit on the same stool, pay the same tab every day. I felt like they really did want to be a part of something. My name is Doc Hendley. I used to be a bartender, and now I provide clean water to people in need. I got on the ground in Darfur, seeing the people living in conflicts, yet their biggest concern was the huge loss of life because of the unclean water. That's when water changed to a (INAUDIBLE).

Whether we're filtering water or drilling a well, we want to train and educate people that are already on the ground, enabling locals to fix their own water needs. That joy is the only thing that helps lift the burden. You can be just a regular anybody, and you really, really can change the world. I'm walking truth of that.

(END VIDEOTAPE)

HARRIS: And you can go to CNN.com/heroes to vote for your favorites among the top ten. The heroes will be honored at an all- star tribute on Thanksgiving night on CNN. It will be hosted by our Anderson Cooper.

(COMMERCIAL BREAK)

HARRIS: We're just getting word that the district attorney handling the David Letterman extortion plot has just spoken with reporters. Let's turn a little bit of that sound for you. This is D.A. Robert Morgenthau.

(BEGIN VIDEO CLIP)

ROBERT MORGENTHAU, MANHATTAN DISTRICT ATTORNEY: The investigation leading to today's indictment revealed that Halderman waited outside Mr. Letterman's Manhattan home at 6:00 a.m. on September 9 to deliver a letter and other materials to him as he was leaving for work. Halderman (INAUDIBLE) that he needed to make, quote, "a large chunk of money," unquote, by selling Letterman a so- called, quote, "screenplay treatment," unquote.

The one-page screenplay treatment attached to the letter referred to Mr. Letterman's great professional success and to his, quote, "beautiful, loving son." The document related then that Mr. Letterman's, quote, "world is about to collapse about him," unquote, as information about his private life was disclosed leading to a, quote, "ruined reputation," unquote, and severe damage to his professional and family lives.

(END VIDEO CLIP)

HARRIS: OK. We're getting more details now from the district attorney in New York handling the case, Robert Morgenthau, on the extortion attempt against David Letterman. We will turn all of this around for you at the top of the hour right here in the CNN NEWSROOM.

And we're also moving ahead with our Olympic surprise. Boy, Chicago eliminated in its efforts to land the 2016 summer games. Chicago was eliminated on the very first vote. Tokyo losing on the second round. You can hear the air going out of the Windy City when the first voting was revealed. Our Ali Velshi there. And now we're just, what, an hour away from learning whether Rio or Madrid will host the games.

Back with complete coverage. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)