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American Morning

Bank Fees on the Rise: New Ways to Profit as Earnings Drop; "Almighty Debt": Debt is Slavery; Campaign Crunch Time; The "Anti- Drinking" Gene

Aired October 21, 2010 - 07:00   ET

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


KIRAN CHETRY, CNN ANCHOR: Good morning to you. Thanks so much for being with us on this AMERICAN MORNING. It's Thursday, October 21st. I'm Kiran Chetry.

JOHN ROBERTS, CNN ANCHOR: And I'm John Roberts. Thanks so much for being with us. Here are this morning's top stories. What happened overnight?

Within the hour, what could be the biggest rally yet in France where anger over a plan to raise the retirement age has boiled over? Crowds of protesters are expected to turn out in Central Paris. Coordinated strikes have all but crippled transportation across the country this week. We got a live report in Paris just ahead.

CHETRY: President Obama is campaigning on the West Coast today working hard to help struggling Democrats in key district and states. He's in Seattle then is on to California. Senior White House adviser, Valerie Jarrett, is going to be joining us in the next half hour. We're going to ask her whether or not she thinks it's too late for Democrats to hold on to the House.

ROBERTS: And the woes continue for Toyota. Another huge recall announced this morning. More than 1.5 million cars and SUVs in the U.S. and Japan have been recalled over possible brake fluid leaks and fuel pump problems. The company says no accidents have been linked to defects, at least not yet.

CHETRY: But first this morning, new developments in a new fight over the "Don't Ask, Don't Tell" military policy. Just a day after a lower court's decision allowed gays and lesbians to openly serve in the military. In fact, they were going to recruiting offices and signing up yesterday. A federal appeals court now blocked that ruling at the behest of the Obama administration saying that it needs more time to make a final decision.

ROBERTS: The defense department says it will obey the court. It's a delay that the Obama administration requested even though the president has said he wants "Don't Ask, Don't Tell" to end on his watch. We've got reaction from the military and from the administration this morning.

Ed Henry is live, traveling with the president. He's on the campaign trail in Seattle this morning. And Chris Lawrence is live at the Pentagon for us. Let's begin with Ed. Ed, speak to the contradiction that the president wants to end the policy but also fighting it in court.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: It certainly sounds like Washington-speak, you're absolutely right, John. White House spokesman Robert Gibbs says that the president believe the policy is discriminatory and he is going to end that on his -- during his presidency. That's a vow from this White House.

But on the other hand, it's the president own Justice Department that is trying to slow all of that down. They say the reason is they don't want chaos in the military right now, number one, and number two, long term, they want to make sure that ending "Don't Ask, Don't Tell" is more durable by actually getting a Congressional fix, not letting it get the whim of any particular court as we see the ping- pong go back and forth.

But the problem is some supporters of the president who say he's vowing to end this policy see it drag on. I can tell you last night at a rally that I was out with the president at Portland, Oregon, he spoke generally not specifically about the issue, but generally about how there's disappointment in his own base on some of the issues that have not been taken care of yet. This is one, John.

ROBERTS: And so what are the prospects that this could actually pass in Congress, particularly if the results of the November election puts Republicans in charge of the House?

HENRY: Well, you're absolutely right. And that's one of the challenges and maybe problems with the White House strategy is that the House has already passed to fix, "don't ask don't tell," to end it, but the Senate did not get it done. Senate Republicans have blocked it this year.

As you say, come next year, the Republicans will either have more seats or short of the majority or will be in control of the chamber. So it seems that the prospects in the near future are actually pretty grim for getting this done on the Hill, despite what the White House is saying.

HENRY: Ed Henry for us this morning. Ed, thanks so much.

CHETRY: We want to go to Chris Lawrence at the Pentagon this morning for more reaction as well. The Pentagon is saying they're going to enforce this, go with this policy. Yesterday, though, they were in favor of over policy that allowed openly gay and lesbian troops to serve, right?

CHRIS LAWRENCE, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Yes, it's not in favor of the policy, Kiran, but more of a matter of what is the law. Basically right now, the law is changing underneath them and so they're scrambling to sort of keep up with the law.

And even this decision may only be temporary because while Republicans in Congress may oppose this, it's actually a Republican gay rights group that has brought this lawsuit to repeal ""Don't Ask, Don't Tell"." And they now have some Monday to appeal this latest decision.

Basically what's going happen is the appeals court isn't going to hear the actual argument on whether to really repeal or keep in place don't ask don't tell until February. What this stay means is what happens between now and February, does "don't ask don't tell" stay in place, or does it go away?

And so the group, the Log Cabin Republicans, are going to argue on Monday again that it should go away while the appeals court is making the big final decision.

CHETRY: Meantime, Chris, practically speaking, so what happened yesterday to the people who went to these recruiting offices and said I'm gay, I'm a lesbian, and I'd like to serve?

LAWRENCE: Well, they started to get their applications processed. And now just starting to get, you know, sort of an effect with someone starting the process under one law, and then the law sort of changes as they're going through the process.

That's one of the questions we're going to be asking today. What sort of legal status are they in now if the law sort of changes after they've already started the process?

Some of the things that the Pentagon is concerned about in terms of why it wants more time, some of it is harassment and discrimination. Although I talked to one officer just this morning who said, look, ultimately, the troops will follow orders, once they're clear what those orders are.

And right now when you've got the defense secretary and the chairman of the Joint Chiefs of Staff saying we want it repealed but not yet, we're waiting for the survey. And President Obama says he wants it repealed but the Justice Department is suing keep it, he said right now, a lot of the troops don't have that certainty.

CHETRY: Understandably so. It's been changing every day. Chris Lawrence for us this morning, thanks.

ROBERTS: Also new this morning, Tiffany Hartley leaving Texas and going back to Colorado three weeks after her husband was allegedly shot to death by Mexican pirates on Falcon Lake. Hartley says she made the decision because she fears for her safety after meeting with Mexican authorities for the second day of questioning. Her husband's body has not been recovered.

CHETRY: The army psychiatrist accused of killing 13 people at Ft. Hood last year still had 200 rounds of ammunition, as well as a second gun in his pocket when he was shot by military police. That's according to testimony at a military court yesterday. Officials are hearing testimony to determine whether or not there is enough evidence to put Major Nidal Hasan on trial.

ROBERTS: Forget Cheech and Chong -- this really is up in smoke. That's the fate of 134,000 tons of marijuana seized last week in one of Mexico's biggest drug busts ever. Mexican soldiers lit the pot on fire yesterday. The entire state of Chihuahua was stoned this morning. No, just kidding.

The military says it was the equivalent of 334 million joints going up in flames.

CHETRY: Seriously, if you're just standing there --

ROBERTS: If you're downwind it could be interesting.

CHETRY: Yikes. Good luck to them.

Nine states stretching from the southeast to the Midwest are dealing with a dangerous drought this morning. We were talking about all the flooding concerns a couple months ago. Now we're talking about a drought.

Parts of Alabama, Louisiana, Arkansas, as well as Mississippi, Tennessee, Missouri, Kentucky, Florida, and southern Indiana seeing the worst condition. It's damaging crops, also raising the risk of wildfires.

ROBERTS: Six minutes after the hour.

(WEATHER REPORT)

CHETRY: It's eight minutes past the hour right now.

The baseball playoffs, the San Francisco Giants now just one step away from punching their ticket to the World Series. But the Phillies will be trying to shop this. The Giants pushing the Phillies to the brink of elimination. It was a six-five walk-off win last night in game four of the National League championship series. The Giants now lead the series three games to one and they can clinch the pennant tonight at home.

ROBERTS: In the American League the New York Yankees still alive. The Yankees win. They beat the Texas rangers seven to two in game five of the ALCS. The series now goes back to Texas with the Rangers up three games to two. Game six is tomorrow night.

So those of us here in New York are hoping that the day off for the Yankees is going to let them reenergize, reorganize, and get out there and hand it to them.

CHETRY: And Phillies fans are hoping Halladay is going to come through again for them. So we'll see what happens.

Well, the holiday season is approaching. Santa is coming to town with some jobs. Christine Romans is going to tell us who's hiring and how to make that temporary seasonal job perhaps a permanent gig.

ROBERTS: Plus, parents under pressure today. With a huge rally set to start minutes from now, we're live with the story behind the anger. It's nine minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: It's 12 minutes past the hour.

In Paris right now, there are a lot of concerns that the violence is going to be ratcheted up today, really a pressure cooker. French police are bracing for a huge wave of demonstrators within the hour. The anger all stems from a government plan to raise the national retirement age which now stands at 60 to 62.

ROBERTS: It's estimated that more than a million French citizens have joined the protest at some point. Even high school students have skipped class to join the strikes. Phil Black is live in Paris for us this morning. And Phil, this massive demonstration today, what are we expecting?

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Yes, John, Kiran, good morning.

This is the French Senate in Paris where politicians continue to debate the proposed change to increase the retirement age two years. It's been the focus in so many protests and rallies in recent days. We're expecting another one in just a couple hours time with thousands of university students moving in here to try and take over the place.

But this is really only just one many so many big protests and rallies taking place in towns and cities across the country, hundreds of them, thousands of people often taking over key infrastructure.

Just this morning in the southern city of Marseille, the airport there was blocked for about three hours by a convoy of truck drivers. And there is of course the ongoing strikes in the country's oil refineries, which is really strangling the supply of fuel to everyone in the country. John, Kiran?

ROBERTS: So, how are you people in France dealing with the fuel shortages, the oil refinery blockage, that sort of thing? Obviously, the protesters, we've seen this before in France, maximum impact on the infrastructure there to get the point across and get their demands met. How are rank and file French citizens dealing with all of this?

BLACK: Well, this is the funny thing. Of all the disruption that's going on, it's certainly the fuel blockades that are causing or hurting the French people the most.

Thousands of gas stations across the country are dry. So many others are running low. And those ones are in big demand with people lining up for hours at a time just to fill up their tanks and get on with their lives.

Despite that really big inconvenience, among others, the majority of the French people support all this strike action because they feel so strongly in opposing the changes to the country's pension system.

ROBERTS: Phil Black for us this morning. Phil, thanks so much.

Well, banks are earning less, which means they're going to start charging you more to make up the revenues. Up next, Christine Romans with "Minding your Business" with tips to avoid unwanted bank and credit card charges.

It's 15 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Coming up now at 18 minutes after the hour. The latest laptops from Apple computer are the thinnest and the lightest yet. A new Mac book Air unveiled last night. It weighs less than three pounds. Pretty slim, too. Just over three quarters of an inch thick. No hard drive, DVD player, just a 64 gigs of what's called flash memory. Price starts just under $1,000.

CHETRY: Well, when it comes to charity, the ladies lead the way. There's a study out today suggesting that more women are more generous and more likely to donate to charities than men. And that goes for almost all income groups in the survey out from Indiana University.

ROBERTS: Well, we all know that the banks aren't that generous when it comes to your money. And they've been forced to get rid of a lot of those fees. So how are they making money? Christine Romans here "Minding Your Business" this morning.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, you can see in the bank earnings that have been coming out this week that, in fact, Congress shutting down the fee machine. It means that they can't reach into your pocket and get as much of your own money back. So that means probably many people think they're going to try to find new ways to get money because they have lost the overdraft protection fee. That was $24 billion in 2008. That's more money than we spend on stamps every year, for crying out loud.

So, this is what you should look for. You should look for free checking to go away. You should look for your bank if they start to ask you to pay for the use of your own money. You need to argue with them about it, or you need to go and find a credit union or a small community bank that is not going to charge you for the use of your money. You should watch for your credit cards, as well, higher base interest rates. Right now, they're about 14.5 percent of the average sort of base interest rate. Watch for your interest rates to rise. And again, if you have good credit, argue about it.

You could see charges for paper statements or to talk to a human being. You can also see foreign currency fees when you use your credit card overseas going up. So those are ways that we are likely to see. Many, many consumer analysts say you're going to be watching to see how the banks are going to try to find some more money because the easiest ways to get money out of our pocket have been shut down.

Now, speaking of money in your pocket, wouldn't you like to have a Christmas job for the holidays? You know, you really would like to get some seasonal work, right? Well, there's this hiring happening right now from a lot of different companies. Everything from Wells Fargo doing mortgage and banking kind of customer service work, to Toys "R" Us, UPS shipping company, H&M, Hewlett-Packard. We talked earlier this week about Intel hiring a bunch of jobs, about a thousand jobs. They're going to be modernizing some manufacturing facilities. If you're looking for the seasonal work, though, those Intel jobs will be permanent, seasonal work, there's some advice from CareerBuilder about how to make it become permanent. Because 40 percent of hiring managers say those seasonal jobs will result in permanent work.

A couple of things, do a good job, provide good customer service. Tell them right away that you want a job that is full time, that you want to stay on after the fact. Tell them, I'd like to move into a new part or company maybe. Is there anything open once I get my foot in the door? Is there anything open somewhere, an unfilled position that I can get? Ask for more responsibility and again do a really great job. If you're looking for one of those jobs --

CHETRY: You should stand out from the pack.

ROMANS: Oh, absolutely.

CHETRY: And show that you're proactive.

ROMANS: Right. Absolutely. And let me tell you this. If you want to work in a retailer, somebody advices do not walk into the Gap for a seasonal job wearing something from H&M. I actually hadn't -- occurred to me about that. Become an advertisement for the company when you walk in in the front door. And then, again, try to find a way to get out from the front line retail job and look around within the company for other things that might be higher pay or the like. About half of these jobs are going to be $10 an hour type jobs so, you know, it's going to be tough to raise a family. And half of them, though, are going to be more than $10 an hour jobs. So there are some opportunities there.

ROBERTS: All right, good tips.

ROMANS: Sure.

ROBERTS: Christine, thanks.

CHETRY: Thanks, Christine.

Well, still ahead, we're going to be speaking with White House senior adviser Valerie Jarrett. The president is out on the campaign trail trying to get enthusiasm going for some of the Democrats in key races. We're also going to ask about the latest "Don't Ask, Don't Tell" ruling that seems to have changed things yet again for people wanting to serve openly in the military.

ROBERTS: And an African-American pastor who says debt is a bigger problem than racism. Soledad O'Brien here with a sneak peek of her new "Black in America" special, "Almighty Debt."

It's coming up now on 22 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. Twenty-four minutes past the hour right now. Tonight at 9:00 p.m. Eastern, Soledad O'Brien is taking a look at how black churches are trying to help parishioners survive the worst financial crisis since the Great Depression.

ROBERTS: It's a "Black in America" special that takes us far away from Wall Street. It's titled "Almighty Debt." Soledad O'Brien joins us now with a preview.

So what led you to choose the black church as a way of illustrating this problem?

SOLEDAD O'BRIEN, CNN SPECIAL CORRESPONDENT: We knew we're going to be looking at the black church because the black church is such an important and powerful institution in the black community. And we wanted to explore a little bit more how relevant the church was today at a time when the entire country is in a big financial crisis that has actually had even more devastating impact for African-Americans.

So we followed a pastor, Pastor Buster Soaries of a church in central New Jersey. And we're very interested in the passion, obsession, you could call it, that he has for lowering his congregants' debt so that he can increase black wealth. Here's what he said.

(BEGIN VIDEOTAPE)

PASTOR DEFOREST "BUSTER" SOARIES: Live within your means. People that don't manage their money wisely are not managing our lives wisely.

O'BRIEN (voice-over): Soaries is on a crusade. He thinks black America has a new enemy.

(on camera): Is debt a bigger problem than racism?

SOARIES: Yes, debt is a bigger problem than racism.

O'BRIEN: You didn't even hesitate.

SOARIES: There's no question to me that debt is a bigger problem than racism.

O'BRIEN (voice-over): Debt, a bigger problem than racism, he says. It's a provocative theory but Soaries stands by his claim.

SOARIES: One out of five of us has no bank account. We still do payday loans. We still do rent to own. But you see, we'll drive shiny cars and we'll wear designer clothes, and we have all of the appearances of doing well, but we won't admit that we're broke.

When I'm paying last month's bills with next month's check, that's slavery. When I'm writing a check hoping that it doesn't bounce or when I put on my credit card praying that it's not rejected, then I'm living in financial bondage.

(END VIDEOTAPE) O'BRIEN: Debt is slavery. It's a very compelling kind of over the top argument. Yet, when we would talk to people we profiled in the documentary, they would all know nod their heads and say yes, I feel like I'm in bondage. I can't pay my mortgage.

ROBERTS: Oh, yes.

O'BRIEN: I can't send my kid to school. I've lost my job. It feels like slavery.

CHETRY: It has to be a terrifying feeling to just try to keep your head above water month after month.

O'BRIEN: Right.

CHETRY: But it also isn't easy to admit this to say, OK, profile me.

O'BRIEN: Yes.

CHETRY: I'm a person in a really tough financial situation. How did you get people to talk?

O'BRIEN: Yes. We felt so grateful toward people who would agree to be followed on. We spent pretty much a year, you know, putting the story together. And so, you know that means following somebody with a camera to every single meeting they go to with the bank and the mortgage company and all of these things. And so o they were -- I think people felt like if they could be helpful to somebody else, the Jeffries, for example, 20 months -- 26 months in having not paid their mortgage. You know, they said if we could be an example to people who maybe are two months in to the struggle, this would be worth doing. And so every single person said I'm willing to step forward and be a living example if it will help somebody else with the horrible time I'm going through. At least be a little more worth it.

ROBERTS: When you look at African-Americans in the United States, some staggering statistics. Unemployment, foreclosure, debt, even paying for college. When you look at all of that, what surprised you the most?

O'BRIEN: You know, I guess what surprised me the most was the clear link between slavery and where we are today in 2010, because it's all about accumulated generational wealth. And in the other "Black in America" that we've done, we've never really been able to talk about slavery without sort of the documentary taking, you know, a sharp right turn. And so this was kind of an organic way to talk about the impact that slavery and Jim Crow and unfair hiring practices that are had over the years, over the decades and the impact that it has on African-Americans today. Because, Of course, when you're a slave, you're somebody else's accumulated wealth. You're not accumulating wealth. You're not accumulating property. You're not homesteading. All those things get passed down. It's what creates that buffer that wealth gives you, not just income. Income, you lose it. You can fall down into, you know, the poverty classes. Wealth protects you.

CHETRY: You showed this to a lot of churches. O'BRIEN: Yes.

CHETRY: Screenings. Pre-screenings. What was the reaction?

O'BRIEN: In Houston, D.C., up in Harlem. The reaction has been amazing. And I think the most interesting reaction has been the number of people who stood up and said to Pastor Soaries and some of the other pastors, take this on the road. Bring this message out of your church and bring it nationwide. So not so much a message for us but really for the pastors to step up and lead the fight.

CHETRY: Well, we look forward to watching it tonight.

O'BRIEN: Thank you.

CHETRY: Soledad, thanks for coming in.

O'BRIEN: You bet. I appreciate it.

CHETRY: All right. Well, just a reminder, Soledad is going to be examining how some are fighting this financial crisis from the pulpit. We don't want you to miss "Almighty Debt," a "Black in America" special airing tonight, 9:00 Eastern, right here on CNN.

ROBERTS: Coming up to the half hour now and our top stories this Thursday morning. Another about-face in the fight over the Pentagon's "Don't Ask, Don't Tell" policy. A federal appeals court has now blocked the ruling that briefly allowed gays and lesbians to openly serve in the military. The president has promised to end ""Don't Ask, Don't Tell"." He wants it repealed by congressional order and not in the courts.

CHETRY: Well, the U.S. reportedly set to seal a massive arms deal with Saudi Arabia. The "Washington Post" just reporting this morning the Pentagon plans to sell $60 billion worth of advanced aircraft and weapons to the Saudis. The proposed arms sell would be the biggest the U.S. has ever made to another nation. Defense experts say it is key to increasing support among Arab allies and countering threats from Iran.

ROBERTS: And she is stepping down as Washington, D.C.'s school chief, could Michelle Rhee's next job be in New Jersey? Rumors have swirled about her becoming the state's education commissioner. But Rhee isn't saying if she has been offered the job or if she would consider it. During her controversial tenure in D.C., she closed dozens of failing schools, fired hundreds of underperforming teachers. She didn't exactly endear herself to many people there. But she believed in what she was doing.

Let's get a quick check of this morning's weather headlines. Rob Marciano is watching it all in Atlanta this morning. How are we looking today, Rob?

ROB MARCIANO, AMS METEOROLOGIST: Not too shabby. Some rain across parts of the northeast. Actually let's start with what's going on there. This little front is moving eastward. And there will be some showers, probably not any embedded thunderstorms with this, just some light stuff. Behind this is cool air. And the folks who are getting it now are mostly north and west of the cities. But it's rapidly approaching the New York to Boston corridor.

So just, you know, I don't know if you need the umbrella, but you may have to dodge a couple of rain drops there today. The winds associated with this may lead to some delays as well from Boston to New York, down to the D.C. and metro as well. And San Francisco and Los Angeles, maybe a little low clouds and fog out that way for some slow-go.

Breezy behind this front and continued dry across the south. We mentioned the drought that's happening earlier in the show. And that's going to continue. Since September 1, it's been unusually dry and in some cases, it was a wet start to the year, but it's just gone completely dry every since. Mostly because we haven't seen much of this, at least in the southeast. And that's tropical depression 19, in a tropical hot bed for October.

This is where Wilma developed around this time. Five years ago. And I don't need to tell folks in Florida about that. We do expect this to become a hurricane. This is a preliminary forecast taken in the Yucatan. We do think it will get near the gulf if not in it, sometime next week.

We continue to update on that story throughout the morning. John and Kiran, back to you.

CHETRY: All right. Rob, thanks so much. We'll check in with you in a few minutes.

Meantime, it's 32 minutes past the hour right now. President Obama is waking up in Seattle this morning in the middle of a four-day west coast campaign swing. He's hoping to motivate voters and to minimize what's been described by some as a category 4 hurricane heading right for the Democratic Party.

Meantime, there were celebrations in the gay community yesterday after a judge overturned a band on openly gay soldiers serving in the military. And then the White House filed an emergency request to stop the move and that request was granted yesterday, leaving gays and lesbian soldiers in limbo once again.

Joining us from the White House this morning is senior adviser, Valerie Jarrett.

Valerie, thanks so much for being with us this morning.

VALERIE JARRETT, WHITE HOUSE SENIOR ADVISOR: Oh, good morning. How are you this morning?

CHETRY: We're great.

You know, one of the questions our viewers had is what is going on with Don't Ask, Don't Tell this morning because it's a 180 from yesterday. In effect, the administration has continued to ban gays from openly serving in the military even though the administration has said "Don't Ask, Don't Tell" will end on its watch. Can you explain what's going on?

JARRETT: Sure. Sure. The president has been very clear, that while he's president, he intends to end "Don't Ask, Don't Tell." The Defense Department is going through a process now to begin to prepare for rolling it back. But it is a law. And we are a nation of laws, it was passed by Congress. And so we are looking for Congress to repeal it. Until Congress repeals it, the Justice Department is doing what it is required to do. And that is, to defend the laws of the land.

But I want to be very clear that the president thinks that it is time for the policy to end, and that's what he intends to ask Congress to do.

CHETRY: You know, the perception in the gay community is that the administration is basically working against them. Some are asking, so why not allow this ruling to stand, in addition to the action that you want Congress to eventually take?

JARRETT: You know what, the Justice Department is required to defend the law of the land. Believe me, we wish that it were another way because the president has been so clear. And I think there are many members of the gay community who actually understand this and who are working with us to try to put pressure on Congress to repeal it. It's clear that the vast majority of American people think that it should not be the law. And we are determined to have Congress revoke it. But we have to go through that orderly process.

CHETRY: All right. Well, I want to switch topics and ask a little bit about what the president's doing. He's out on the campaign swing out west today, part of it to help bolster Democrats in some of these key districts. Though many people who are watching the polls for a living say that it looks like Republicans will regain at least the House, perhaps, in a long shot, the Senate as well.

How are you preparing and is the administration preparing for the potential that you're going to wake up in 12 days and Republicans are going to be in control of Congress?

JARRETT: Look, you know what, I'm not a pollster. The only poll that really counts is the poll that happens on election day. You mentioned that the president is on this west coast swing. He's looking forward to campaigning for Patty Murray today, a terrific member of Congress. We're seeing some momentum growing. I think now that the election is drawing near, people are beginning to pay attention and they're focusing on the choice that they have in front of them.

And they have a very simple choice, continue to move the country forward in a positive direction where we've seen nine straight months of private sector job growth or go back to the ways of the past. And I think that the Republicans have made it kind of easy by saying we want to go back. Well, going back is to an economic meltdown, going back is to losing four million jobs in six months. Going back is to not rules of the road to protect the consumer, the people who are out there working so hard trying to make ends meet.

And so we welcome this opportunity over the next 10 days to make that case to the American people, and we are confident that with that focus, we will retain both the House and the Senate.

CHETRY: Well, it's interesting because you said Republicans are making it easy, however, even some of the most conservative pollsters have the Republicans regaining that 39 seat - or getting that 39-seat net gain that they need to control the House. Are you saying that you guys are not operating under the thought that the GOP may indeed take over the House?

JARRETT: We're not operating under that thought at all. We are working hard every single day. We're not following daily tracking polls. We're talking directly to the American people. I think that what you have mentioned reflects a frustration and an anger that we completely agree with that the American people have.

Our economy has suffered the worst meltdown since the Great Depression. Many, many people are suffering and they're out of work and through no fault of their own. And what the president has done since day one is to try to lay a new foundation to move America forward. But it takes time. We're not nearly where we want to be. But we have certainly made a lot of progress. And we want to continue on that very positive trajectory.

But the fact that people are frustrated and angered, we completely understand because of what happened before the president came in. And so, you know, it's going to take some time. And people want to have an immediate turnaround. And it is clear that it is going to take some time, but we are moving in the right direction.

CHETRY: Why do you think the majority of people when asked think that the president fell short of their expectations? Simply is it a matter of expectation being too high for what the president can actually accomplish and change in just two years?

JARRETT: Well, I think people are frustrated because the meltdown that occurred - actually, to start with, many people were suffering even before this last economic crisis. And so after a year upon year after year of bad practices where there weren't any rules of the road, where they watched what was happening, where the excesses of a few were not benefiting the many, many people who are out there and are working so hard. So they're asking themselves when is government going to be working for us. And that's what the president has been doing since he took office. But two years seems like a long time, but it really isn't.

And so I think part of the frustration is people want their individual lives to get better. We understand that frustration. It is going to take some time. I think every economist would say that this recession was far worse than anyone might have predicted it would be. And therefore, it's taking longer to get out of it than anyone would have wanted. And so the frustration is absolutely legitimate and we share it.

CHETRY: Valerie Jarrett, senior adviser to the White House. Thanks for your time this morning. Great to talk to you.

JARRETT: Absolutely. Have a good morning.

CHETRY: You, too.

ROBERTS: She has an amazing ability to focus with that construction crew moving right behind her.

CHETRY: It seems like it's been going on for years.

ROBERTS: Didn't miss a beat. Yes.

They say they're installing air conditioners, uh-huh. He says the rent is too damn high. But how would he know? A new revelation about this unconventional candidate for New York governor coming up.

It's 38 and a half minutes after the hour.

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ROBERTS: It's coming up now at 43 minutes after the hour. Here are some of the stories that got us talking in the NEWSROOM this morning. First up, California's pot crop. According to a state report, it's worth $14 billion. That's seven times more valuable than California's wine crop. By some estimates, the state could rake in $1.4 billion in new tax revenues if marijuana were legalized and maybe some support for the proposition there that people are going to vote on it on November 2nd.

CHETRY: Yes, they wouldn't have to burn it all like in Tijuana like we saw earlier in the show.

Meanwhile, his platform was clear, you remember him "rent is too damn high." That was his own party. But in terms of his own life, how would he know that because according to "The New York Times," Jimmy McMillan, the French candidate for New York governor hasn't paid rent in at least 10 years. In fact, he told the paper, he lives in his Brooklyn apartment and it's for free, in exchange for doing some maintenance work in the building.

ROBERTS: I see.

CHETRY: You want that deal.

ROBERTS: That would be a sweet deal. But there are a lot of people, I guess, who barter these days, with the economy, somebody has got something somebody else wants. No cash changes hands. But everybody's happy about it.

Well, did she or didn't she? Sarah Palin creating a big buzz on the web. It looks like, according to some folks, she desecrated the American flag at a Tea Party Express rally in Reno. Decide for yourself. The video shows the former Alaska Governor signing old glory for a fan, which is in its purest form, a violation of the U.S. flag code.

CHETRY: Also, it could be a case of overexposure for the cast of "Glee." A lot of parents' groups are very upset about this. It's a racy photo shoot for "GQ" magazine that's raising some eyebrows. In it, you see some of the pictures, short skirts, just underwear as a girl leans into her locker. That's Lea Michele, by the way. The Parents Television Council is very upset about this. And the characters in Fox's hit musical are supposed to be high school kids even though they are in their 20s. One of them is 28.

But a lot of parents are saying wait a minutes, this is one of the only things that we can watch as a family. And now you got them posing like this. This is not what I want my tween to be doing.

ROBERTS: Yes, perhaps not quite in keeping with the image that the television show is trying to portray.

And for you Conan O'Brien fans who can't wait until November 8th, you're in luck, you can check out the live Coco cam, as they're calling it on-line. It's taking Conan fans behind the scenes at team Coco headquarters for a period of 24 and has been streaming live since yesterday. The highlights include - oh, what's going on? It's the zombies. The zombies are attacking. There you go. Look at this.

CHETRY: They've been doing strange stuff all morning. They had a dog playing poker, Conan O'Brien eating an apple while he was being read Shakespeare.

ROBERTS: And they also have a fabulous '80s workout that would have pleased Olivia Newton-John.

CHETRY: Made you miss those purple tights.

ROBERTS: Missed them for 30 years now. That's what people are talking about this morning particularly here in the newsroom.

So when do people know that they've had enough and some don't? Doctors say they've now found the gene that separates casual drinkers to problem drinkers. Could it lead to a breakthrough for alcoholism? We'll talk to the author of the study coming up.

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ROBERTS: Twelve minutes now to the top of the hour. New this morning, it could get evening uglier today on the streets of Paris. Demonstrators plan a major rally on the government plan to raise the national retirement age from 60 to 62.

The French senate could vote as early as tomorrow. More than a million people have already protested. That's led to violent clashes and hundred us of arrests. Even high school students have skipped class to join in the strikes.

CHETRY: Well, that salary scandal that rocked one of the poorest cities in Los Angeles County today, a new update. Eight former city officials from Belle, California, will be arraigned.

They're charged with taking more than $5.5 million in city money one of them, the former city manager, Robert Rizzo is facing 53 criminal charges. Rizzo is in the hot seat for his nearly $800,000 a year salary, double the salary of the president.

ROBERTS: And the founder of "Penthouse" magazine has died. Bob Guccione losing his battle with lung cancer in Plano, Texas Hospital. He was 79 years old.

Guccione started "Penthouse" magazine back in 1965, competed with "Playboy" for the attention of American men for decades.

CHETRY: You know, yesterday, we showed the video of Lieutenant Dan Choi who has become the choice of opposition to ""Don't Ask, Don't Tell", coming to re-enlist in the recruiting station.

Now because of another ruling, "Don't Ask, Don't Tell" is back in effect. Lieutenant Dan Choi is going to join us to react to what is going on with the administration.

ROBERTS: We'll be talking to him in just a little more than 10 minute's time.

Why do some people know when they've had enough and some don't. Doctors say they have now found a gene that separates casual drinkers from people who could potentially become alcoholics and it could lead to a breakthrough treatment for problem drinkers. We're going to talk with the author of the study coming right up. It's 10 minutes to the top of the hour.

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ROBERTS: We are back on AMERICAN MORNING. Are you the man or woman who can drink everyone else under the table? That might be a hit at parties, but that high tolerance to alcohol may also be a sign that you lack the genetics to fight potential addiction.

Doctors say they have now discovered a gene that may protect you against alcoholism. Joining us now to talk more about this is Dr. Curt Williamson. He's a Genetics and Neurology professor at the University of North Carolina.

Doctor, great to see you. What does this gene do?

DR. KIRK WILHELMSEN, PROFESSOR OF GENETICS AND NEUROLOGY, UNIVERSITY OF NORTH CAROLINA: This gene actually metabolizes or breaks down many molecules including alcohol and expressed throughout the body including the brain.

ROBERTS: How many people carry it? What's the affect on the average person?

WILHELMSEN: Well, everyone has a copy of the gene pretty much. There's a few people that have actually lost the gene or have extra copies of the gene. But there are about 12 percent of the genes that people have on their chromosomes make a lot more of the enzyme than normal people make.

ROBERTS: Right.

WILHELMSEN: This makes them actually more sensitive to alcohol, and it's actually a little surprising because you might have thought an enzyme to break down alcohol making more of it you would be less sensitive to alcohol so that was one of the surprises of the study.

ROBERTS: So people with one or two drinks would feel the effects, they feel tipsy a lot sooner than someone that didn't have the same expression of this gene?

WILHELMSEN: That's correct.

ROBERTS: Right.

WILHELMSEN: And so, people have the copies will, you know, early feel either sleepy, tired, nauseous or all kind of reactions to it. It's because of how this brain -- this gene metabolizes alcohol in the brain. It actually makes a free radical, a small molecule of reactive oxygen and causes a buzz.

ROBERTS: Right. So what are the implications of this then when it comes to the potential for developing alcoholism?

WILHELMSEN: Well, this story actually starts 30 years ago when my collaborator, Mark Shaket (ph) started studying patients rather college students and asking them in studying how well they could drink. He actually brought students in the laboratory.

I was actually an undergraduate at when this was going on and it was a pretty popular study to be in. It turns out after following these patients up almost all of them since that time he's learned that the patients that were more likely -- that were insensitive to alcohol could drink it with abandon were the ones that were more likely to become alcoholics.

And it's a big factor in determining whether you'll be an alcoholic in the future, and so, 10 years ago, Mark and I started working on a study where we recruited college kids and siblings to see if we could find the genetic reason why this was going on and why there was so much variation in the population.

ROBERTS: Interesting so you say a big factor not the only factor of who becomes an alcoholic?

WILHELMSEN: That's right. So there's lots of reasons why people drink so, you know, college kids, they drink with abandon and they do it sort of as risk-taking behavior.

Whereas later on in life, some people drink because they're unhappy or depressed and lots and lots of reasons and one factor, a very big factor and the gene we found is a big factor in that one trait.

ROBERTS: Does this open the door to potential treatments?

WILHELMSEN: It's possible. There are actually already drugs available to block the enzyme or induce your body to make more of this enzyme.

And so, it's potential that some of the drugs could be used to modify alcoholic behavior, but it's probably not enough to make, you know, protect people completely from being alcoholic.

There's an example of a drug for another genetic condition that affects how sensitive you are to alcohol that's been tried to be used clinical trials for many years. This drug is called Antabuse and it turns out that Antabuse or Disulfiram, when you make it gives you a flushing reaction and the flushing reaction is so aversive that people don't drink.

This is something like that, but turns out that Disulfiram is not a very good drug to use because it can have fatal complications and so it may be possible to make something like Disulfiram, which isn't as dangerous.

And so I actually have colleagues that are working on the genes that metabolize alcohol to make drugs to try to find to safer version of Disulfiram that can make people better.

ROBERTS: Maybe one piece in the puzzle to help for better treatments for alcoholism. Doctor Kirk Wilhelmsen, congratulations on your research. Thanks for joining us this morning.

WILHELMSEN: Thank you for letting me talk about our research.

ROBERTS: You bet. Top stories coming your way after a quick break. Stay with us.

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