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American Morning
Chinese President to Sit Down with Obama Today; Goldman Sachs to Release Earnings; Giffords Ready for Rehab?; Try NASA's Pot Roast; Ace of Cakes
Aired January 19, 2011 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: Hey, there, everybody. Welcome to this AMERICAN MORNING on this January the 19th. Top of the hour here. I'm T.J. Holmes. Glad you're here.
KIRAN CHETRY, CNN ANCHOR: I'm Kiran Chetry. We have a lot to talk about this morning, including some new news on the condition of Congresswoman Gabrielle Giffords that we're going to get to in just a second.
First of all, though, there is word that the shooting in Tucson was captured on tape, that every agonizing minute was captured by the surveillance cameras, nearly two dozen of them outside of the Safeway store, shedding new light on the suspected gunman and his actions that day.
HOLMES: Also they're going to be talking about you (sic) today -- Hu -- yes, that Hu. President Hu of China is going to be sitting down with President Obama. A long list of things to talk about these two super powers and, of course, a big state dinner tonight. We'll tell you what's happening today and how their conversations could impact you.
CHETRY: Also the golden child of the big banks -- Goldman Sachs. They're set to release earnings from the last quarter and this could give us a significant glimpse into the health of our nation's banks and also bonus season.
(MUSIC)
HOLMES: And we are getting, and as you know, continuing to get updates, seem like remarkable updates every single day about the condition of Gabrielle Giffords and her recovery, the congresswoman. We are getting word now from her parents, just getting an e-mail obtained here by CNN from her parents.
I'm trying through it here. Kiran and I both are getting this into our inboxes and we're reading through it. But something that stands out here is that she is actually going to be going to a rehab facility on Friday.
Let me just -- we got it right here in front of me. It says, there is a team -- now, I'm directly quoting here. It says, "There is a team of medical specialists involved, including military surgeons who specialize in bullet wounds to the head." They want to start aggressive rehab immediately and are flying her to Houston facilities on Friday. "I'll go with her, along with Mark and the Dr. Rhee" and see where they can fit into the rehab process.
But the word here, we heard from the doctors just the other day that I think it might have been yesterday even, or the day before, and everybody was amazed saying she could be released. Not going home but released from the hospital and could be going to a rehab facility in a matter of weeks or a matter of days.
According to this e-mail, it sounds like she will be released --
CHETRY: This week.
HOLMES: -- from the hospital and going to a rehab facility in Houston.
CHETRY: Right. So, that will be two weeks after the shooting.
HOLMES: After the shooting.
CHETRY: After that potentially life-altering injury that she had. And also, just to be able to be healthy for them to have the confidence she can travel because that's no easy feat to transport her in light of what injury she suffered.
So, again, that's from her mother. This news that she's going to a rehab facility in Houston to begin aggressive rehabilitation. Wonderful news.
HOLMES: Wonderful news there. We're going to continue to read through this and pull out some more bits and bites that you need to be hearing about. So, stay with us for more on that.
Meanwhile, more on the Tucson shooting. There is word now that it was caught on tape, surveillance tape in Tucson. We don't have it to show to you just yet and don't know if we will once we eventually do see it, once members of the press do see it. But "The Washington Post" reporting they have spoken to people who actually have seen the video and according to these sources, it does show the alleged gunman walking out of the Safeway store and walking up to Gabrielle Giffords and shooting her first at close range.
CHETRY: Also, according to the reporting from "The Washington Post," the video also shows Judge John Roll getting shot in the back while attempting to shield one of Gabrielle Giffords staffers, Ron Barber. Barber had been shot twice. He survived and, sadly, Judge Roll did not.
HOLMES: Also, Christina Green, a lot of people familiar with her story now. The 9-year-old who was there, you know, just trying to see her hero, the congresswoman, ended up being shot and being killed. Well, her father is speaking out now and telling us that his daughter helped save the eyesight of two children. John Green is his name.
He was talking in an interview and also talking about the alleged gunman, Jared Loughner, saying he does not want to even waste his time on that guy. Take a listen here.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Can you ever forgive Jared Loughner?
JOHN GREEN, CHIRSTINA'S FATHER: I suppose in time I could -- I could do that. That's what the good Lord would want.
UNIDENTIFIED FEMALE: But not today?
GREEN: Not today, no. It's going to take some soul-searching before I can -- I can do that.
(END VIDEO CLIP)
HOLMES: Now, Green says his daughter was so active, as he remembers her. He says actually tissue -- some of her tissue was frozen, maybe it could be used down the road to help other kids, possibly who can't walk or run. Tissue was taken from her knees. So, even in death, this young lady's legacy is living on.
CHETRY: Mark Kelly is also talking about the ordeal that he's been through. Congresswoman Gabrielle Gifford's husband saying that he feels -- that he had a feeling that something like this would happen, and that his wife actually talked about that as well, that she may have actually predicted it. But she told him on several occasions that she was fearful that she might get shot when she was out in public.
Now that she's recovering, Kelly says that he is struggling and he's also unsure about what to tell her about what happened.
(BEGIN VIDEO CLIP)
MARK KELLY, REP. GIFFORDS' HUSBAND: Gabby was talking to one of her other constituents, that she leaned down next to her and said -- said, you know, someday, you know, you could grow up and be like Gabrielle Giffords, and those were the last words she heard. So, you know, it's just -- I mean, you just can't explain it.
You know, it's going to be one of the hardest things. I mean, how do we explain to Gabby that Gabe Zimmerman has died? I mean, that's going to be a hard, hard thing to do. You know, that Ron Barber almost lost his life, that Pam Simon. I mean, some -- I mean, it's a miracle she survived. She really truly loves these people.
I mean, how do I explain to her that it was a 9-year-old girl that was standing in front of you, you know, looking up to you, you know, and now she's gone, too -- and all of the others. And when do you do that? I mean, I could do it now. I don't know if that's the right thing to do.
I decided it isn't. I mean, I have to -- I have to wait for the appropriate time.
(END VIDEO CLIP) HOLMES: Now, you hear what he has been going through, what he has ahead of him and just revealing that news, but he says he has been drawing strength from all of the support they have been receiving. They have been receiving a lot of cards and letters, as you can imagine.
Listen to him describe one he got that stood out, one he got from a little boy.
(BEGIN VIDEO CLIP)
KELLY: I've been looking at a lot of those letters. I think it was Craycroft Elementary School. I was looking at a whole giant bag of them today, or yesterday. And one kid had a little card and on the back of his card was an envelope taped on to the back of the card and in the envelope was his lunch money. It was like $2.85.
So, we're going to -- I sealed it back up. We're going to get his lunch money back to him.
(END VIDEO CLIP)
HOLMES: And as you can see, you have seen this scene probably several times. It continues to grow. This is on the lawn outside of the hospital where she is recovering. Mark Kelly says he walks by this, of course, every single day and says it helps him. He calls it a spiritual thing for him.
CHETRY: It's amazing. I'm just looking at the e-mail again. This is from Gabrielle Giffords parents. They said it's a close family and friends and one of our freelance assignment editors is a friend and got it. But just to hear that she is sitting up in a chair, the news that she's going to move to this aggressive rehab facility in Houston on Friday and that her parents are going to be going with her, along with Dr. Rhee and her husband.
And just to hear that she had gone to a couple of surgeries just to repair some problems, and that everything is fine, and that she's going to be able to communicate more. And they also say they believe that her eyes are fine. There are some questions about can she see and is she going to be doing OK?
So, it's just amazing to hear this impressive progress.
HOLMES: Some of that is so telling, including her mom saying that she actually reached up, Gabrielle Giffords now reached up and untied her husband's tie and undid the top button of his shirt and also she began to read cards made for her by some fourth graders. Her unbandaged eye tracked the lines.
This is unbelievable. We are going to be hearing so much more about this. But this is really some insights we are getting from her mother in an e-mail she sent and obtained here by CNN, but giving us updates, more insights into what has been just an unbelievable recovery story for Gabrielle Giffords.
CHETRY: And we'll continue to follow more details on that throughout the morning.
Also an A.M. "Security Watch" for you this morning. The FBI is looking for a person who planted a backpack bomb along the Martin Luther King Day parade in Spokane, Washington, along that route. The Feds say that three parade workers found the explosive device on Monday morning. They also say that it could have injured a lot of people.
HOLMES: Also, take a look at this in Philadelphia. This is the aftermath of what happened. This is a fireball you see there after a gas line explosion and it was caught on tape. Watch and listen now.
(VIDEO CLIP)
HOLMES: One person was killed here. Another five injured. Some of them injured seriously. Also, 15 to 20 families are displaced right now.
CHETRY: We get a quick check in the morning weather headlines right now.
Our Rob is live in Steamboat Springs.
And, you have a beautiful backdrop. I know you guy are at this meteorological conference, but you're also having fun a little bit of fun as well.
ROB MARCIANO, AMS METEOROLOGIST: Well, you know, it would be a crime if you didn't have a little bit of fun. So, we work hard in the morning and then in the afternoon, we go out and do some product sampling and investigative reporting in the way of, you know, checking out some of these snow conditions, which today are just going to be phenomenal.
All right. Let's talk weather briefly, what's going on around the country. Northeast is getting a little bit of snow and rain. Temperatures in the bigger cities right around the freezing mark -- so especially just north of D.C., there might be slick spots there with potentially some freezing rain. But, generally speaking, I think the bigger cities should be OK.
Sliding the map to the west -- Chicago is getting snow right now. It shouldn't amount to a whole lot. The system is kind of stretching itself out and then further to the west where we are, certainly getting some snow at the higher elevations.
And this has some energy. It's got a punch to it. This will be sliding across the midsection. And winter storm warnings are now posted for parts of Kansas and this will probably crank up for the Northeast over the weekend. The question is how close is that tracking to the coastline which would determine how much snow you folks get there. Still TBA on that.
All right. As far as airport delays are concerned, New York metros are going to see some issues. Chicago and Denver with a little bit of snow and then out west, we still have a little bit fog. Cowboy Downhill was yesterday, 37th annual. You have over 70 cowboy and cowgirls, most of which have no idea how to ski or snowboard. They race down, the big yard sale. But it's annual event here and it's been kind of a storied tradition and we were here for part of that in the afternoon.
That was the mid-afternoon fun after our morning sessions talking about climate change and how climate change is -- may be affecting some of our current weather patterns. So, some interesting revelations this week, both scientifically, and I didn't know that so many cowboys could ski down a hill so, well, gracefully.
T.J., Kiran, back up to you.
CHETRY: Pretty cool. Well, you guys have a good time out there and bring us along next year.
MARCIANO: You bet.
CHETRY: Thanks, Rob.
HOLMES: Thanks, Rob.
MARCIANO: I'm trying. I'll try.
HOLMES: Well, coming up, you may have heard the president of China is in town, meeting with President Obama. You hear so much about China and owning so much of our debt and that we are competing against this new super power. Well, really? Are they friend or foe?
It's 11 minutes past hour.
(COMMERCIAL BREAK)
HOLMES: Good morning, Washington, D.C. And good morning to the president at the White House.
Live pictures you're seeing there. It's going to be a sunny day, getting up to almost 50 degrees there today. We don't know if it's going to be a little chillier inside that White House and around Washington as we receive America's banker.
Usually, bankers don't make house calls, do they? Well, our banker is making one to the White House today. We're talking about China's president, President Hu Jintao, is in the U.S. for a big meeting with the president. Some saying this is going to be more style than substance, if you will.
Certainly we're going to see one of these big state dinners. That's certainly going to look good back home at least for the Chinese president. But what is that going to mean for you? A stay dinner -- does that mean anything for you and your family down the road?
Our next guest is going to be talking about it with me now.
Gordon Chang -- he's an expert on China relations. He's joining me now, also the author of the book coming, "The Coming Collapse China," also a columnist for Forbes.com.
Sir, good to have you with us this morning.
GORDON CHANG, COLUMNIST, FORBES.COM: Thank you very much.
HOLMES: Tell me this -- true or false, we need China more than China needs us?
CHANG: False. China has an economy which is geared to selling things to the United States. Last year, 140 percent of China's overall trade surplus related to sales to the United States. That's up over the last couple of years. You know, this is incredible number and it just shows the leverage that we have and the leverage that we're not using.
HOLMES: OK. We always have this or it seems people have in their mind there is this us against China. That's the enemy in some way, at least, a rival. So, are we really more so rivals or partners?
CHANG: You know, of course, as people say, a little bit of both. You know, it's really a question of not the way we see it because we have a conception of the world even one big international community all trying to work together. The Chinese have a different perception of reality. They see themselves as against their neighbors and also they're very concerned about the United States and they do think in zero some terms.
HOLMES: All right. I mean, we're talking so much about this visit. We're going to see a lot of pomp and circumstance or are we going to see substance? What is an American family going to get out of this visit, this conversation with this Chinese president?
CHANG: I think there's very little substance on this trip. The Chinese are coming here because they want to televise images of the 21-gun salute and the state dinner because they want to show America's respect for the communist party. Last Friday, at the White House briefing, Thomas Donilon, the national security adviser said that there might not even be a post summit communique.
That just shows how far apart we are from China. Now, I think we actually will come up with a document because not to do so would be a debacle, but you know, it just -- right now, the relations are really not very good.
HOLMES: OK. I want to back you up there for a second because that might have just gone past some of our viewers because we don't talk in these diplomatic terms all the time. Not to have a post summit communique, how big of a deal is that when it comes to traditionally what happens after some of these big summits?
CHANG: That's huge because after the November 2009 summit where President Obama went to Beijing, we produced a 4,223-word joint statement that was comprehensive on every issue that you can think of. You know, this time, you know, we may not be able to mention more than ten words of agreement. That, I think, is an enormous story. HOLMES: How desperately does -- and you hit on this a bit ago, but explain to folks. We always say they are our debtor, they are banker, we hear that all the time. They own so much $900 billion in American treasuries. But they need us pretty desperately.
CHANG: Yes. I mean, they wouldn't have an economy were it not for the United States market. You know, the Chinese, they talk about this -- or we talk about this debt weapon that they hold over us. Well, the Chinese, since August 2007, call it the nuclear option which is dumping treasuries in the market to hurt us.
They never do it because they know it won't work, and it won't work because of the way the global markets operate. So, you know, this is not really a weapon. We're the only people in the world who know that it doesn't work.
HOLMES: How offensive -- on this visit here, last question, it's always this talk about the currency manipulation by the Chinese. How offensive is it to the Chinese to hear some senators now talking about -- calling China a currency -- officially calling them a currency manipulator?
CHANG: Well, this is really important for them. The premier, Wency Arbaugh (ph), the top economic officer in China said that countless Chinese enterprises would go out of business if China allowed its currency to float. That just shows how important an issue it is to them.
HOLMES: Big issues, Gordon Chang, but as you told me a moment ago, this is going to be more style than substance, but maybe, there will be some substance that does come out of it as well. Always good to talk to you. Thanks so much for coming in. Enjoy the rest of your day.
CHANG: Thank you.
HOLMES: All right. Kiran.
CHETRY: Well, Hollywood sweetheart, Betty White, turned 89 yesterday, and she showed David Letterman, hey, she still knows how to party. Eighteen minutes past the hour. We'll be right back.
(COMMERCIAL BREAK)
CHETRY: Talking about a career resurgence. Betty White starred in the Snickers commercial in Super Bowl in 2009, I guess. And then, she's just taken off from there, and she certainly not slowing down. She celebrated her 89th birthday and what keeps the golden girl going? Well, she told David Letterman the secret.
(BEGIN VIDEO CLIP)
DAVID LETTERMAN, HOST: What do you like to do in your free time?
BETTY WHITE, ACTRESS: Oh, I like to -- I like to -- I like to do most anything. Play with animals mostly. And vodka is kind of a hobby.
(APPLAUSE)
(LAUGHTER)
(END VIDEO CLIP)
CHETRY: I love Letterman. Right out of the bottle. It had to be water. It was water.
HOLMES: Do you think?
CHETRY: They were teasing.
HOLMES: The things you can get away with on late night that you can't do on morning TV, right?
CHETRY: Well, actually -- oh!
HOLMES: Right.
Well, from vodka to whiskey now. We've all been --
CHETRY: We all --
(LAUGHTER)
HOLMES: OK. Let me slow down. Let me slow down here.
CHETRY: We all drink whiskey out of the can every now and then.
HOLMES: What I meant to say here is out on the beach, you're at a game, you used to cracking open a cold can of beer.
CHETRY: That's right.
HOLMES: You're going to have the option to do it with whiskey now. Does anybody think this is a good idea to have whiskey right out of the can? Is this 12 ounces? I thought it was 8, but online here said it's 12-ounce aluminum can.
CHETRY: This is so popular they're looking to move up then to a 12-ounce.
HOLMES: So, you're talking about 12 shots in a can when you crack it open that you can just take anywhere with you. This is the first time, apparently, that straight whiskey has been sold in a can. Now, critics what did you think they were saying now?
CHETRY: The critics, they don't like this for a number of reasons but, one is they don't want it to say scotch on it. They don't want it to say Scottish because it's not scotch.
HOLMES: OK.
CHETRY: And so, the Scottish distilleries are very angry about this.
HOLMES: OK. And then, some people are criticizing just knocks down the class of the drink, but nobody is criticizing the fact that we're putting whiskey in a can.
CHETRY: They also have rum, tequila, I mean, this -- they really -- they're expanding their repertoire.
HOLMES: Yes.
CHETRY: For the places, I just don't know how (ph) the bottles. Now, you have an option. And I love how it's always after the ads. Please drink responsibly. How are you supposed to drink a 12-ounce can of whiskey responsibly?
HOLMES: It's a way to do it.
CHETRY: Well, how many people you think have had too much to drink at a ball game? I guess, this is a -- I guess so. A new study said that 8 percent of sports fans leave games legally drunk. That means that 92 percent do not. Isn't that great?
HOLMES: That's a good average. I'm even surprised that it's only 8 percent.
CHETRY: Right. They say that they tested people of breathalyzer as they left football and baseball games, and almost two-thirds had a blood alcohol level of zero.
HOLMES: It must have been a Pop Warner football game or something because the games I have seen, I can't imagine only 8 percent.
Does this look appetizing? Take a look at this, Kiran. Here it is. We're going to give you a closer picture of it, but do you want to eat that?
CHETRY: Yes, of course, sure.
HOLMES: Of course, you would! Who wouldn't want to eat a 30- something-year-old, maybe 40-year-old piece of dried pot roast?
CHETRY: Yes. Freeze dried pot roast. You know, it's from space.
HOLMES: It's special, though. Yes, it's from the Apollo program. It was left over from that that was back in the 1960s and 1970s. So, bidding on this is now at around $500. Now, one little warning label that might be on it. NASA is acknowledging that this particular food cause nausea and weight loss among the astronauts.
CHETRY: Yes. So, they've gone back to the drawing board. They have some great stuff now.
HOLMES: Yes.
CHETRY: And pour hot water on it, reconstitutes.
HOLMES: On the stuff, yes.
CHETRY: Yes.
All right. Well, it's Wall Street bonus time and these numbers are coming in to CNN. Bankers are striking pay dirt over Goldman Sachs, but what does this mean for the overall health of the economy? Christine Romans is breaking that down for us.
(COMMERCIAL BREAK)
CHETRY: Just in this morning, we're talking about the results, the quarterly profits for Goldman Sachs and some of the other big banks. Goldman releasing its quarterly earnings, and Christine Romans is "Minding Your Business" for us. She joins us now. What's the verdict?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Earnings were good but down 5 percent from 2009. No surprise there. A lot of people have thought their earnings will come down a little bit. And what we're looking for is compensation. How much Goldman is setting aside to pay its workers? Both their pay and their bonuses all depend on how much business they do, how much they earn. That bonus pool is $15 billion, the bonus pool, actually -- I'm sorry. 39 percent of the revenue is for pay and bonuses, and it's down a little bit.
And they've been putting 320 million of their managing director -- $320 million of their money is going to charity. So, this is a company who's been trying to sort of burnish its image, as you know. So, you're not going to get the big headline. Oh, you know, Goldman Sachs bonuses are up 20 percent this year, no, they're not. The company has been reigning in executive conversation. T.J. was asking me in the break.
HOLMES: How these things are broken down. It sounds horrible to hear, oh, they're getting all these bonuses, but this is how their pay is kind of set up.
ROMANS: This is how their pay is set up. You are paid, by the end of the year, you are compensated for how well you did that year. You and I were paid every two weeks throughout the year for the work we're doing right now. That's not how it works on Wall Street. You share in the success of a company and you are supposed to, I guess, share in the failure of a company when the criticisms leaves, when these companies were bailed out, people were still sharing in even the failure of this company.
So, that's simply how it works, and that's how it's always been on Wall Street but used to be almost half of the revenue of a bank would go to compensation. This is more like 39 percent is going to compensation. So, again, Goldman's earnings down a little bit. It's revenue, 39 billion, earnings of $8.3 billion, compensation pool about 15 billion.
HOLMES: Can you get us through the outrage story of the morning quickly?
ROMANS: Yes. I really want to get to you in this J.P. Morgan Chase, another big bank, is admitting that it wrongfully foreclosed on 14 military families and overcharged thousands more on their mortgages. There is a service member civil relief act. This is a law that means you can't throw an active duty military member out of their home, and you can't charge them more than 6 percent for an interest rate on a loan.
It turns out that J.P. Morgan found after service members complained they were overcharging thousands of soldiers thousands of dollars and, in some cases chasing them down on the phone to try to get them to pay penalties and overcharges that were not owed. These people did nothing wrong. In fact, it was the bank, a mistake at the bank.
This is what J.P. Morgan Chase says, "We made mistakes here and we are fixing them." They feel badly about it. NBC News first broke this story. You can imagine there is outrage. A huge bank and people defending us and spending more time to answer messed up calls about their messed up paperwork when they are serving our country.
CHETRY: And was this their own discovery of an error?
ROMANS: Their own discovery of an error, one of these families in -- their own discovery, discovered by the military families.
CHETRY: I'm saying J.P. Morgan didn't say we messed up and they are trying to make good?
ROMANS: J.P. Morgan is getting sued about it and why we are all talking about it.
HOLMES: Christine, thank you, as always.
CHETRY: Time for a look at other top stories this morning.
An incredible gas line explosion rocking Philadelphia, a deadly explosion, in fact, caught on tape. This is from WCAU in Philadelphia. Crews on the scene and trying to repair a gas main break when out of nowhere it exploded. The fire department tells us one utility worker was killed and five other people were seriously injured.
HOLMES: Also, new information this morning about the remarkable recovery of Gabrielle Giffords. This is coming to us in an e-mail we have obtained that was sent out by Gabrielle Giffords' parents saying she will be leaving the hospital on Friday and heading to a rehab facility in Houston on Friday, less than two weeks after being shot in the head.
Also saying she is looking at family photos and cards from fourth graders and also saying her husband Mark is predicting, even though she has a tough road ahead, she will be up and walking around two weeks from now. Remarkable details we are getting from an e-mail sent out by her parents that we have obtained here at CNN. CHETRY: Just amazing stuff to hear. They also expect she is going to be able to speak pretty soon as well.
The House set to vote on repealing President Obama's health care law a campaign promise the GOP made in 2010 that may be hard to keep with Democrats still in control of the Senate. But we have a new CNN opinion research corporation poll suggesting that Americans aren't necessarily happy with health care reform, at least a big split in opinion. And 50 percent of Americans said she would get rid of the whole law, while 42 percent say they would like to keep it.
HOLMES: It's an issue now none of us are going to be immune to and particularly your town not going to be immune to. A lot of these places are struggling to make ends meet and you are suffering because of it. Take a look here, five cities with the biggest budget deficit. Number one is New York City, estimated deficit of $2 billion, followed by D.C., Chicago, L.A., and San Francisco.
CHETRY: Number 13 is Camden, New Jersey, a crime-ridden city that ranks as one of the most dangerous in the U.S., actually number two on that list, and Camden took a severe hit when nearly half of the police force had to hand in their badges because of a $26.5 million budget gap. Our Mary Snow joins us with more on this. And what is, you know, is this the end of the story here? Are they going to try to somehow find a way?
MARY SNOW, CNN CORRESPONDENT: They are still working on finding a way to bring officers and firefighters back, but the big question becomes, you know, right now, how do you protect this city? Some immediate changes went into effect as these officers had to turn in their badges.
And for right now police officers who are doing clerical and administrative duties have been reassigned to control the streets, and in Camden if you're in an accident, there is no damage or injuries, the police won't be responding to calls like that.
The police chief also says that he has been working with county, state, and federal agencies, including the FBI, asking them to take an increased role in Camden, anticipating that these layoffs would be happening.
The mayor of Camden, Dana Redd, says it didn't have to be this bad in terms of these deep cuts. She is blaming police and fire unions, saying that there is a sense of denial. Take a listen.
(BEGIN VIDEO CLIP)
SNOW, (on camera): What do you think people are expecting?
MAYOR DANA REDD, CAMDEN: I'm not sure what people were expecting other than this culture of disbelief, because Camden has always been bailed out by state government in the past.
JOHN WILLIAMSON, PRESIDENT, FRATERNAL ORDER OF POLICE, CAMDEN: Every person that has a set of eyes, ears, and a thinking brain can see and know that the city is in a fiscal crisis, the state is in a fiscal crisis, and the nation is in a fiscal crisis.
(END VIDEO CLIP)
SNOW: Now, that is John Williamson, head of the police union in Camden, saying the union did make concessions. Obviously, the two sides couldn't see eye-to-eye on this, but there is still hope that maybe they will reach a last-minute agreement and save some of these jobs.
HOLMES: But that has to be the union giving up more?
SNOW: Yes. I did talk to the union president this morning, saying they are actually going to court at 11:00 this morning seeking an injunction to block these layoffs. It was supposed to be Monday but because of the holiday it was delayed.
CHETRY: Some cities don't allow for those essential services to be the ones cut, right? They have to go everywhere else except for that?
SNOW: The mayor of Camden is saying they have done this. We should add that about 100 non-uniformed government employees were also cut as well.
CHETRY: Tough times. Thank you, Mary.
SNOW: Sure.
HOLMES: You have always wondered what are your kids up to those first couple of years of college. We have the answer for you. Nothing. It's 36 minutes past the hour. Stick around.
(COMMERCIAL BREAK)
HOLMES: OK. As expensive as college is these days, you cannot afford to be wasting time there. But apparently some kids are, flushing money down the toilet because they are not learning a doggone thing.
CHETRY: Really? Flushing it down the toilet?
HOLMES: That's what it sounds like.
CHETRY: There are some new numbers from a study, and it stunned us so we wanted to dig deeper on this. And 45 percent of kids show no improvement in their learning by the end of sophomore year, and by senior year 36 percent still showed no significant improvement. So what is going on?
Joining us is Richard Arum, a sociology and education professor at New York University. Of course, at NYU the kids much more prepared, right, Richard?
RICHARD ARUM, SOCIOLOGY AND EDUCATION PROFESSOR, NEW YORK UNIVERSITY: Right.
(LAUGHTER)
CHETRY: And he is the co-author of the book "Academically Adrift." So what seems to be the biggest problem here?
ARUM: We not only measured student learning in our study but we asked students what they were experiencing in college in terms of academic demands, and we found that large numbers of them are going through college with very little asked of them. And 50 percent of kids in a typical semester did not take a single course where they had to write 20 pages over the course of the semester, 50 percent. And 32 percent of the kids said they did not take a single course where they had to read 40 pages per week on average.
HOLMES: It sounds like you're saying it's the school's fault, not the kids. People want to think the kids are partying and messing around and the first couple of years. It sounds like you're putting it squarely on the schools.
ARUM: I think it's a mistake to point blame at any single actor. We have organizational cultures at schools that prioritize everything else but student undergraduate learning.
CHETRY: The other interesting thing, though, is when you broke down what people were doing at different times. They spent more than half of their time socializing, it says, and very small, single digits in terms of both classroom time and studying.
ARUM: Yes, 36 percent of kids spend five or few or hours per week studying alone. If you look at the time-use data back several decades, there's been a 50 percent drop in the amount of time students spend studying.
HOLMES: OK, But when you looked at this --
ARUM: But the grade point averages are doing OK.
HOLMES: That's all that matters, right, grades. You talk about you measured significant improvement but you analyze critical thinking the first couple of years. Is that the best measure whether or not a kid is taking something in and learning and being able to remember what they are learning?
ARUM: Well, all tests, all measurement is imperfect and has its limitations, but this is arguably of the state of the art instrument out there. It gives students six or seven documents and asked them to reflect on it and write about them. It asks them to perform tasks that all college-educated students should be asked to do.
CHETRY: Should be able to do.
ARUM: Should be able to do. And, again, no progress -- 36 percent after four years can't do any better than on this test than when they started and finished high school.
CHETRY: The reason it got my attention, too is because we talk about lagging behind the world when it comes to innovation and when it comes to varying other measures of success, and the amount of money parents and kids are spending to go to college, and you say the grade point averages are just as high. So does that mean we are just not getting a quality education?
ARUM: I think for a large number of students are not receiving a quality education. And there is evidence that there has been a decline over time in terms of hours studying. But even if it was always the case in college, arguably in the situation that we face today, the globally competitive economy, it's no longer going to be acceptable to put out large number of students in higher education that can't do anything more in terms of these high order skills then when they enter.
HOLMES: I certainly think the conclusion here is for students is that party on. It's the school's fault. They are not asking much of you.
(LAUGHTER)
CHETRY: Good luck getting a job. Come on, buckle down. Buckle down, kids. Thanks so much for joining us this morning, Richard Arum, co-author of "Academically Adrift."
HOLMES: Coming up we are talking about -- does that say another snowstorm?
CHETRY: Apparently.
HOLMES: All right, Rob Marciano is joining us and he's kind of in the middle of a snowstorm right now. You will understand now when we talk to him coming up next.
(COMMERCIAL BREAK)
HOLMES: Well, it's 46 minutes past the hour.
This is a live picture at the White House. As you can see, there's a lot of pomp and circumstance, but some argue not a whole lot of substance. This is the meeting, the visit, the official state visit of the Chinese President Hu Jintao. He did make it to Washington D.C. He had a quiet evening with the President last night.
But as you see here not really a quiet day, they're going to out and about and out in front and center. You'll see the President and Chinese President coming up in just a bit. The ceremony gets underway officially at 9:00 a.m.
But the festivities are under way, an official state visit. A big state dinner tonight as well; but things are in place for this big welcoming ceremony. But a big day and big talks, two big super powers.
Of course, now look at that. Kids, of course, invited to the event. A very cute picture there but a big deal, the Chinese President in town. A lot of people excited and a lot of pomp and circumstance as I said but a lot of people don't think a whole lot is going to get accomplished. This is just going to be a pretty picture especially for the Chinese President who certainly appreciates these pictures being played out back home in China.
But again, a lot of people say don't expect a whole lot to get accomplished necessarily but we shall see.
CHETRY: Right, I mean, just the message that it sends. As you said, this is the third state visit; only three and its China. So that sends a powerful message.
HOLMES: Very cute.
CHETRY: The kids are out there. And actually they got pretty lucky they got good weather. If this was yesterday, I mean, for -- for having to hold this -- this is going to be up in the 40s today.
Rob Marciano is live in Steamboat Springs, Colorado right now. So at least it's a little better but you said that we've got to look out again because another storm is on its way?
ROB MARCIANO, AMS METEOROLOGIST: Hey, oh hey guys. Sorry. You talking to me?
HOLMES: Yes. Rob, you're working, buddy.
MARCIANO: I'm just -- I'm just -- I'm just admiring my new -- my new sled here. I'm going to show you what this is all about in just a second. It's not -- it's not a ski or it is a ski but it's attached to a bike. Anyway, we'll show you what that does in the show.
Yes, we are having a little bit of fun here at Steamboat but we're also getting some work done in the morning. It's the 2nd Annual Steamboat Weather Summit where we talk to some of the brightest minds in the field of meteorological and climate. And we get it done in the morning and improve our broadcasting and forecasting skills and then when you get snow like this, you've got to out and test the product in the afternoon.
You might get a little bit of product across the northeast today. Here's the radar. Some rain and snow mixing in, in light of the situation; you go north and west of I-95 it may accumulate in spots. And temperatures right now around the freezing marks so that may make for a bit of slick commute in areas. But generally speaking in the bigger city I think it'll be mostly rain.
Back to the west in Chicago, a little bit of snow and light accumulation expected there and in through the mountains in Denver, some snow is expected here. We're seeing that right now. And this will come into the northeast as we get towards the weekend and we'll see how close it gets to the coastline for potentially accumulating snow.
Well, you'll see travel delays today -- by the way there's a lot of watches and warnings and advisories out with this system although we don't expect a huge, huge dump across the plains.
There'll be some travel delays across the Northeast because of the usual weather patterns, weather situation and the usual suspects there.
And then this -- the temperature should stay above freezing, I think, across the I-95 corridor.
All right, here you go, check out some of this video. Reynolds Wolf and I went toe-to-toe down the mountain yesterday afternoon on a vehicle that I've -- I've seen, I -- I've mocked and I take back everything I ever said about snow bikes.
It's the -- it's some of the most fun you'll ever have sliding down the mountain on a -- on a bicycle that's retrofitted with -- retrofitted with skis. Reynolds took a pretty bad spill. But, in the end, we both made it down in one piece.
It's so much fun, guys. I can't even -- I can't even begin to tell you what it's like going down one of these. When you roll up, you know, with -- with your posse, you know, it feels like you're riding a hog down the mountain with this thing. It is so much fun.
You got to get yourself one of these, T.J. You know, roll down Peak Street and you could do it nowadays with as much snow as we've gotten in Atlanta.
HOLMES: That's a very good point you make. It looks like you're having a blast out there. We do want our viewers to know he is working there for the official -- what you call that thing --
MARCIANO: Thank you T.J.
CHETRY: He said a big convention.
HOLMES: A big convention right.
MARCIANO: It's a weather summit, man. It's a big deal.
CHETRY: You need a helmet by the way, ok. You don't want to hit that pretty head going down that mountain.
MARCIANO: You're right, thank you, Kiran. I'll get one on. All right.
HOLMES: All right, Rob. Thank you buddy. We'll talk to you soon.
MARCIANO: You got it.
HOLMES: Well, a lot of people out there have opted for gastric bypass surgery but could you imagine doing that surgery on yourself?
CHETRY: Oh come on.
HOLMES: There's a kit for sale that lets you do that? Its nine minutes to the top of the hour.
(COMMERCIAL BREAK)
CHETRY: Still a big medical mystery identifying the early signs of Alzheimer's and whether or not they can find out new ways to diagnosis it earlier and then treat it earlier. Well, the FDA is evaluating a test that would do that. Right now, the only way to actually confirm Alzheimer's is to conduct an autopsy after someone has already died.
But there's a new test the PET scan -- a P-E-T scan and in preliminary trials has been able to detect a plaque build-up in living brains and they're able to detect this 97 percent of the time. So that's pretty remarkable, they say that the plaques are actually telltale signs for Alzheimer's.
HOLMES: Another medical story here, some people opt for gastric bypass surgery. Well, you don't have to apparently anymore, there's a do-it-yourself kit. You heard me correctly there. This was being sold on Amazon.com I believe --
(CROSS TALK)
CHETRY: This has got to be a joke.
HOLMES: -- some people said, no, and I believe it was taken down but people were misinterpreting what this was supposed to be. Doctors were shocked, this thing actually did contain scalpels, syringes, everything you would need. It was being sold by a firm in New Jersey but they say it was meant for medical professionals only so they caused some confusion.
I don't know if people actually bought this thing or not. I don't know any idea how in the world you could possibly perform gastric bypass on yourself or have someone at home to do it for you.
But they say this was meant for medical professionals and I believe it's been taken down but just remarkable --
(CROSS TALK)
CHETRY: I -- I don't even want my surgeon buying a kit of any sort for any surgery on Amazon.com. Ok.
HOLMES: You would -- you would hope he had that stuff already.
CHETRY: Yes.
And the instruction manual is a little messed up here. I mean, no, no thank you.
Well, he was a struggling musician and pastry chef who added a little dash of business sense and became a Food Network reality star.
So how did goateed pastry chef, Duff Goldman do it? The "Ace of Cakes" himself shows our CNN crew around his hipster bakery and he has some advice if you're dreaming about starting your own business.
(COMMERCIAL BREAK)
HOLMES: We got one of these small business success stories for you -- coming to you from Baltimore this time. The man who created it all is sharing his recipe for success with you.
CHETRY: Yes. CNN's Tom Foreman has the story in his "Building up America" Report.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): In the shadow of the Baltimore skyline on a rough edge of town, Duff Goldman is building up a remarkable business.
Good to see you.
DUFF GOLDMAN, CHARM CITY CAKES: Welcome to Charm City Cakes.
FOREMAN: He's a star on the Food Network and this is where his team spins out those dazzling creations that have captured the imagination of millions.
It wasn't always this way. Eight years ago, Duff was a struggling musician, just looking for a way to pay the rent.
(on camera): What did you play in the band?
GOLDMAN: I'm a bass player. I still am.
FOREMAN: So you were essentially unemployed.
GOLDMAN: Pretty much, yes. So I called my dad and I said, "Dad, how do I start a business? He said, "Sell a cake." Ok.
FOREMAN (voice-over): By creating what others did not, Duff caught the attention of cable TV scouts and turned his small bakery into a big brand. Ever since, people have listened to his ideas about business.
GOLDMAN: When I started this place, I sold a cake. That first cake that I sold I got a deposit. With that deposit I bought some cake pans. I bought some flour. I bought some eggs. I bought some butter. That's literally how simple it was.
FOREMAN: By buying only what he can afford and focusing on quality, he avoided the dangerous debt that doomed so many others during the recession.
And so, the jobs have lasted and the customers keep on coming; some for a few hundred, some for many thousands of dollars per cake. And for Duff, the creations are spectacular, but the recipe remains simple.
GOLDMAN: To build in tough times, you need to do things correctly. There's no short cut. There's no formula. There's no magic pill. There's no spell. There's no anything. Just -- you need to pay your bills and keep your employees happy. You just have to do a good job.
FOREMAN: Tom Foreman, CNN, Baltimore.
(END VIDEOTAPE)
HOLMES: All right. That does it for us here on this AMERICAN MORNING. Appreciate you spending some time with us.
CHETRY: Yes. We'll see you back here bright and early tomorrow.
Meanwhile, keep watching because the news continues, "CNN NEWSROOM" with Fredricka Whitfield starts right now. Good morning, Fred.
