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American Morning: Wake Up Call

Two Killed in Texas Wildfires; Lee Soaks Gulf Coast, Lumbers North; Mubarak Trial Resumes in Egypt; Explosives Stolen From Airport; Strauss-Kahn Back Home In France

Aired September 05, 2011 - 05:00   ET

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

CAROL COSTELLO, CNN ANCHOR: Good morning to you. It is Monday. Happy Labor Day. It's September 5th. This is your A.M. WAKE-UP CALL.

I'm Carol Costello, joining you live from New York.

We begin with breaking news from drought stricken Texas where two people have now died as a result those raging wildfires. Officials say a 20-year-old woman and her 18-month-old daughter were killed when flames engulfed took their mobile homes. Strong winds from Lee, now a tropical depression, have not helped matters, fueling several fires throughout the state. One is now threatening 1,000 homes.

Central Texas dealing with its worst fire season ever. A record three-and-a-half million acres have burned since last November.

Lee is making Labor Day a soggy saturated holiday for several states. Tropical depression Lee has gotten weaker, but it is unloading lots of rain as it marches north from the Gulf.

Louisiana and Mississippi have seen flooding and power outages already. There was a lot of concern about New Orleans. But the mayor says the city is OK, even though we've got nearly a foot of rain. Some people in south Alabama believe the storm sent them a tornado.

(BEGIN VIDDEO CLIP)

UNIDENTIFIED MALE: I didn't hear it. All I heard is wind. If it was wind, it was a hell of a wind.

UNIDENTIFIED MALE: The lights went out, they came back on and then everything opened up. It was like a machine gun going off.

(END VIDEO CLIP)

COSTELLO: Lee's leftovers could dump more rain on Upstate New York, New Jersey and Vermont. The last places that need more rain, right, because of Irene.

So, let's check on Lee's track with Rob Marciano.

Not more rain.

ROB MARCIANO, AMS METEOROLOGIST: A lot of people that are getting the rain are the one that is don't need it. Lee is not exactly helping things in Texas either, not only not giving rain but, you know, probably adding a little bit to the wind as this very strong front for this time of year is going to interact with Lee and cause some issues.

All right. Here's the radar. Rain and some radar-indicated tornadoes in some spots across the Florida Panhandle, southern Mississippi and southern Alabama as well. We're starting to get some drier air wrapped into this thing. So, that will limit the amount of convection today.

But there you see it. I mean, especially Mississippi seeing a decent amount of rainfall at the moment. Here it is on the satellite picture. And there you see the bone dry Texas air wrapping its way into what is left of tropical storm Lee, now a tropical depression. There's the movement expected to move off towards the north and east as it interacts with this cold front.

Now, as it does so, it will continue to be windy across the east side of the state. But the rains will increase across the Tennessee Valley from Chattanooga to Knoxville, look for five to seven inches of rain here in the next 48 hours. And it does stretch up into the Northeast as we go on through time. You could see a couple of inches in the next two days and then maybe a little bit more after that.

All right. Hurricane Katia, northwesterly moving at 11 miles an hour -- 100-mile-an-hour winds now. So, finally getting organized the way we thought it would be, category two storm, expect it to remain that and maybe become a major hurricane. And there's your forecast track, Carol.

Much, feeling much better about Katia this morning than I did this time on Friday. That's good news. Looks like it's going to turn away from the U.S. It shouldn't be a threat. But we'll watch the remnants of Lee moving towards the East Coast, with watches in effect for the Northeast.

COSTELLO: That's celebratory news. Thank you very much, Rob Marciano.

We've talked about Lee and about Katia. Let's talk about Irene. It's gone. But, of course, it's left deep scars.

President Obama now offering government help to the people whose homes or businesses were flooded out. He visited northern New Jersey for a firsthand at what people were dealing with there. This is where the Passaic River spilled out of its banks and caused very much damage.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The entire country is behind you. And we are going to make sure that we provide all the resources that are necessary in order to help these communities rebuild.

(END VIDEO CLIP)

COSTELLO: Flood warnings were still in effect over the weekend for parts of Passaic and Pompton Rivers.

Now, some news that is not about weather. Check out these pictures. That's Mitt Romney is speaking to the Tea Party. He hasn't spent much time courting the Tea Party, but last night, he spoke at a rally in Concord, New Hampshire, played up his background in the private sector and said yes, he can fix the economy.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: We have zero confidence, zero faith in a president who created zero jobs. It's time for someone who knows how to create jobs and get our economy going and that's something I know. That's in my wheelhouse. And I'll get America working again.

(END VIDEO CLIP)

COSTELLO: Another Tea Party group protested Romney's appearance. They said it was just a big photo-op. Romney will be in South Carolina today. Senator Jim DeMint is hosting a big presidential forum.

DeMint is the Tea Party champion on Capitol Hill. He told CNN's Candy Crowley that the movement is misunderstood.

(BEGIN VIDEO CLIP)

SEN. JIM DEMINT (R), SOUTH CAROLINA: There's no the Tea Party. I mean, a lot of Obama and a lot of the Democrats, folks in the media, have tried to speak of the Tea Party in derogatory terms and suggest that it's a small right-wing group. But over 70 percent of Americans think we need to balance our budget and stop adding to the debt. That's pretty much what the Tea Party is.

(END VIDEO CLIP)

COSTELLO: In Libya right now, rebel forces are surrounding one of Moammar Gadhafi's last strongholds, the city of Bani Walid. The rebels have extended the deadline for Gadhafi's forces to surrender until Saturday. But they could storm Bani Walid at any time now because negotiations for a cease-fire fell apart.

(END VIDEO CLIP)

COSTELLO: And U.S. officials say terrorists might try to use small planes to attack the United States although they don't have any specific information about plots. But they do want state and local law enforcement to be aware and vigilant given the 10-year anniversary of 9/11 is next Sunday. The Department of Homeland Security and the FBI sent out the bulletin on Friday.

COSTELLO: We told you last week about an Apple employee losing an iPhone prototype at a San Francisco bar. Now, we're learning new information as police and the tech giant team up to track that phone down.

But first, it's time for our quote of the day. This is a quote: "Polls? Nah. They're for strippers and cross-country skiers," end quote. We'll tell you what newsmaker said that. It's coming your way in 90 seconds.

It's six minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: It is seven minutes past the hour. This is your A.M. WAKE-UP CALL. Happy Labor Day to you.

Let's get back to our quote of the day. This is a quote. "Polls? Nah, they're for strippers and cross-country skiers," end quote.

That was former vice presidential candidate Sarah Palin talking in Iowa to a group of Tea Party activists. Here is her actual in Palin's own voice.

(BEGIN VIDEO CLIP)

SARAH PALIN (R), FORMER ALASKA GOVERNOR: Polls? Nah, they're for strippers and cross-country skiers. But --

(CHEERS)

PALIN: But polls in those parts actually show that some people there believe that the economy has actually improved. See, there may not be a recession in Georgetown, but there is in the rest of America.

(END VIDEO CLIP)

COSTELLO: Sarah Palin taking a dig at political polls while talking about the economy. By the way, Palin has not said whether she'll run in 2012. But a recent CNN/ORC poll puts her in third place behind Perry and Romney as the Republican choice for a nominee.

Time now for an update on the so-called lost iPhone and big changes for Amazon. Let's go to Kristie Lu Stout. She's live in Hong Kong.

So, Kristie Lu, this iPhone prototype 5 was lost at a bar somewhere, left behind, and Apple is investigating?

KRISTIE LU STOUT, CNN INTERNATIONAL ANCHOR: That's right. There's new wrinkles of this story. We have learned that San Francisco police helped Apple search a man's home. They were looking for that prototype. It's a next generation iPhone that employee left behind the bar in San Francisco.

Four officers escorted Apple investigators to a home in the city's Bernal Heights neighborhood. And the two Apple employees, they searched the home while the police waited outside.

And we learned all this from a police news release that came with the name "iPhone 5.doc." But San Francisco police are not describing what it is. And, Carol, Apple is not commenting. But we all kind of know.

COSTELLO: I can't believe -- so Apple employees went into another Apple employee's home and actually searched the home for this prototype?

STOUT: Yes, to another man's home. Not an Apple employee. But, yes, while the police were waiting outside, the legal ramifications here, not too clear on. But still, an amazing story.

COSTELLO: It is an amazing story. Hmm, and I know you'll keep following it.

Let's get to Amazon, though, because Amazon is getting ready to make some big changes. Tell us what they are.

STOUT: That's right. They're testing a major redesign of its Web site. This is according to the "Wall Street Journal."

The new online store -- it's said to be more sleek, there are fewer buttons, more white space and bigger area for search. And the site -- it also focuses more on digital goods, like music and e-books rather than physical goods like toys and clothing. And these changes are expected to make them more user-friendly on tablet computers. And Amazon is set to introduce its own tablet computer in the weeks ahead.

And as for the big reveal of this home page, Amazon not saying just yet -- Carol.

COSTELLO: All right. Kristie Lu Stout, live in Hong Kong for us this morning. Thank you so much.

He's a Tea Party favorite who's bringing the top Republican candidate to his state for some tough questions. But does Senator Jim DeMint have a clout to become a presidential king-maker? More on DeMint in 90 seconds.

It's 11 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: Jobs -- they're in many people's minds this Labor Day. And President Obama has taken some flak for moving his jobs speech to the same night as the NFL opener.

Here's comedian Jay Leno's take.

(BEGIN VIDEO CLIPS)

JAY LENO, COMEDIAN: President Obama has now agreed to move his jobs speech from September 7th to the 8th. It's the same night as football season starts. Of course, the difference is Obama's plan has a lot more Hail Marys in it. His speech is on right before football. One thing about Obama, he knows how to promote. Look how they're promoting the speech right before the game.

UNIDENTIFIED MALE: Are you ready for some talking? Are you ready for some optimistic revelry? Are you ready to be listening? I'm going to talk about jobs and stuff like this, yes, Democratic and Republican, too, with the presidential speech to rock the hell out of you!

LENO: Wow.

(END VIDEO CLIPS)

COSTELLO: Actually, that might work. President Obama should try that.

Time for your Political Ticker with Pamela Kirkland of "Morning Briefing" on Sirius POTUS live from Washington.

Don't you think that would be a good way to set up President Obama's speech on Thursday?

PAMELA KIRKLAND, SIRIUS XM POTUS: I think that might be a fantastic way, you know, get the people excited about the speech. Ramp them up. People will be paying more attention to the president's speech on jobs than the actual football game, I think.

COSTELLO: Actually, it's sad because the American people would rather watch football than an important job speech from the president anyway.

But let's talk about the Republicans now. The Republicans, the presidential candidates are gathering in Columbia, South Carolina for that big forum held by Senator Jim DeMint. Mitt Romney was not going to do, but now he is?

KIRKLAND: That's right. Originally, Mitt Romney was going to skip the event and there was speculation that because of Governor Rick Perry's rise in the polls that the Romney camp changed their mind. However, his spokesperson is saying that they were able to rearrange a few events and that's the reason he'll be able to participate today. He'll actually be in New Hampshire early this morning for a breakfast event and then travel to Columbia, South Carolina, later today for the senator's presidential forum.

COSTELLO: So, basically, what this forum -- I mean, it's two Republican lawmakers, Jim DeMint and one other, will be asking questions of the candidates. I mean, how much influence will this really have on the Republican primary?

KIRKLAND: We'll have to see. There's been a lot of comparison for this event to the 2008 event with then-Senator Barack Obama, Senator John McCain and Reverend Rick Warren. This time, we're going to have a Q&A with Senator Jim DeMint, Congressman Steve King of Iowa and Professor Robert George, who's the founder of the American Principles Project. They'll get about 20 minutes with each candidate in a one-on-one.

So, this isn't your typical debate format. It will be interesting to see these candidates really getting grilled hard about conservative principles today.

COSTELLO: All right. Let's talk about Maureen Dowd, "The New York Times" columnist. She wrote in "The New York Times" an editorial questioning whether President Obama was one and done.

KIRKLAND: Right.

COSTELLO: This is the quote from her editorial. Quote, "Maybe Obama was not even the person he was waiting for." Ouch.

(CROSSTALK)

COSTELLO: Not that Maureen Dowd was overly complimentary of the president. But this was -- this was harsh.

KIRKLAND: Yes. That last line of that piece is definitely the kicker.

You know, Maureen Dowd runs down a list of jokes at the exasperated president's expense. Number two on David Letterman's top 10. Pretty much what is the president going to do on Labor Day. Pretty much whatever Republicans tell him he can do. And, of course, depending on which blog you look at, for the most part, consensus seems to be that the president is in trouble if Maureen Dowd is writing the one is dancing on the edge of one term.

COSTELLO: I don't know. Maureen Dowd, as I said, has been critical of President Obama in the past. But it seems many, many liberals are overly critical of President Obama right now, which makes me wonder what exactly he has to say Thursday to bring anyone to his side.

KIRKLAND: Right. It sounds like the advisers for the president are kind of tamping down expectations for the jobs speech on Thursday. So, we'll just have to wait and see exactly what the president has got up his sleeve and, you know, just listen closely to what he's going to say on Thursday during that speech on jobs.

COSTELLO: Pamela Kirkland, many thanks -- Pamela Kirkland of "Morning Briefing" on Sirius POTUS radio.

Rebels in Libya have surrounded the last city still loyal to ousted leader Moammar Gadhafi. Could be they're preparing for a final battle? We'll explain just ahead.

But, first, it is Labor Day, dedicated to the social and economic achievement of the American worker. The first Labor Day was celebrated on September 5th, 1882, with a march. But there are lots of ways to mark the day, whether it's a parade, a barbecue, or the time-honored tradition of the eating contest.

Sonya Thomas scarfed down 183 wings in 12 minutes to win the chicken wing eating championship in Buffalo. Hope she brought some Pepto with her.

It's 18 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: Twenty minutes past the hour. This is your A.M. WAKE-UP CALL.

Here are three things you need to put on your radar this week. This Thursday, the president delivers his plan to create jobs and strengthen the economy in front of a joint session of Congress. We may get a preview of his speech when he delivers his annual Labor Day address in Detroit, a city hard-hit by unemployment.

Today at 3:00 Eastern and live right here on CNN, GOP presidential candidates take part in the Palmetto Freedom Forum. South Carolina Senator Jim DeMint is hosting it.

And former International Monetary Fund chief Dominique Strauss- Kahn is back in France and sexual assault charges were dismissed against him in New York. His spokesperson says that at some point, Strauss-Kahn will comment on the accusations made against him.

With Tripoli in rebel control, Libyan fighters set their sight on new targets. They've surrounded Sirte, Gadhafi's hometown, and a handful of other cities still loyal to the ousted leader. Their demand: surrender by Saturday or they will take the cities by force.

Let's bring in Zain Verjee. She's live in London.

The rebels set down these dates, but they always seem to move them, Zain.

ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: They do keep moving them. One of the things is that they probably want to avoid a bloodbath and say, OK, guys, surrender, you're surrounded there is no way out.

Now, the attention today is focusing on a place, Carol, called Bani Walid. And that is one of the last bastions of support for Moammar Gadhafi, as well as his sons. The rebels are saying you got to surrender or they're going in. But there are indications, Carol, that suggest that the rebels may go in sooner than the Saturday date.

COSTELLO: We'll see. Let's move on to Egypt, because the former President Hosni Mubarak. His trial resumed today. Is he still being brought in on a stretcher?

VERJEE: He did. He was wheeled in on a stretcher. And the trial is happening.

Now, what's happened just a few moments ago, there were major clashes outside the courtroom between families of victims of the uprising back in February and they were throwing stones and they were trying to basically storm the police academy where this trial is being held and then they were pushed back by police with batons. It's a scene outside. You can see there that this is what it looks like right now.

But Hosni Mubarak is facing possibly the death penalty and he's being charged with ordering killings of protesters back during the uprising.

COSTELLO: Let's talk about the American Amanda Knox. Her appeal against her murder conviction in Italy resumes today. What do you expect to happen?

VERJEE: Well, everyone is kind of on their edge of their seats because what happened the last time this was in the headlines and she was in court is that there were two pieces of evidence that were seen as really, really crucial to the prosecution which was basically a DNA material that they said was hers that was found on a knife and also DNA material found on the victim's bra strap. What happened was, is that they brought in these forensic experts, they were independent and they essentially said at least for the genetic material found on the knife, that it was too small to even be permissible as evidence in the courtroom.

So, we don't really know which way this could go. Amanda Knox walked out the last time around in a much stronger position than she was when she had gone in. So, we'll be watching.

COSTELLO: We'll be watching. Zain Verjee, live in London -- many thanks to you.

Apple is one of America's top companies. So, why is a major union leader calling them unpatriotic? We'll tell you right after this break. It's 24 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: Good morning to you. It is Monday, Labor Day, September 5th.

So, happy Labor Day to you. I hope you're not laboring.

This is your A.M. WAKE-UP CALL. I'm Carol Costello, joining you live from New York this morning. It's 27 minutes past the hour.

President Obama will spend his Labor Day in Michigan, a state hard hit by unemployment. In his annual Labor Day address, the president is expected to preview his jobs plan to union workers and their families in Detroit. He'll unveil his entire plan in a speech before a joint session of Congress on Thursday night. The administration says it will lay out a series of steps that congress could act upon, including transportation and infrastructure initiatives -- initiatives to help homeowners and tax breaks to support new hires.

If you are not hiring, you're unpatriotic -- that's according to the International Brotherhood of Teamsters president James Hoffa. On the CNN's "STATE OF THE UNION," Hoffa called American businesses like Apple, General Electric and Pfizer unpatriotic for opening factories and stores overseas instead of investing in employment right here in the United States. He said big companies have a responsibility to get Americans back to work and if they aren't doing that, President Obama should call them out.

(BEGIN VIDEO CLIP)

JAMES HOFFA, TEAMSTERS: I think the president should challenge the patriotism of these American corporations that are sitting on the sidelines saying why do we have higher unemployment but I'm not going to hire anybody? You know, they have an obligation just like the federal government, just like Obama. We've all got to get into the game. I don't see that happening.

So, the trillions and billions of dollars that they have on the sidelines -- they have money, Pfizer and General Electric -- they have trillions of dollars overseas. Let's start repatriating that money. Let's start a program to get America going again.

COSTELLO: On the weather front, tropical storm Lee now a tropical depression. It's spoiling a lot of Labor Day holiday plans. So far, the giant weather system has dumped a foot of rain on New Orleans and it's causing extensive flooding on the Gulf Coast states.

The storm now is expected to move up the East Coast, causing major travel delays. It could also bring another one to three inches of rain to some northeastern states, still feeling the effects of the flooding from Hurricane Irene.

Lee is offering no relief to Texas firefighters, though. Strong winds instead are fueling wildfires scorching the landscape in that state. We've learned overnight two people have died in those fires. The largest has burned 14,000 acres and threatened 1,000 homes. A record 3 1/2 million acres have burned since last November. This is the worst fire season the state has ever seen.

A container full of explosives has been stolen from the Phoenix police. Police say they were training bomb sniffing dogs at Sky Harbor Airport when someone stole a cooler that held a pound of cast booster explosives which are commonly used in the mining industry. They say the explosives cannot be detonated without additional equipment and some degree of expertise, but still, it is deserving witnessing.

The former head of the International Monetary Fund, Dominique Strauss-Kahn, is back home in Paris. Strauss-Kahn resigned as the IMF chief back in May after being charged with sexually assaulting a New York hotel maid. A judge threw out the case against him less than two weeks ago citing credibility issues with his accuser, but his troubles are not completely over. Strauss-Kahn still faces a civil suit from that woman and another woman in France who accuses him of attempted rape. We now know about the U.S. Postal Service and its financial troubles, but according to one report, things may be coming to a head as soon as this month. Not good. It's 31 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: Good morning to you. Time for morning money news, so let's go to Christine Romans. She's next here somewhere in this giant New York bureau keeping me company.

(LAUGHTER)

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi, Carol. Good morning.

COSTELLO: Good morning Christine. Happy Labor Day.

ROMANS: Happy Labor Day to you, too, but now, if you pick up the "New York Times" this morning, Carol, the front page, U.S. Postal Service may not be able to pay its bills as soon as this month, and if Congress doesn't do something to stabilize the finances of the post office, the postmaster general says they might have to completely shut down, completely shut down the post office by the winter. Couple of different things going on here. Many of the things you already know about.

Three billion pieces of mail that the USPS handles every week, but it costs are going up and its revenues are going down, and it's really punched -- pinched, rather, and it could miss a $5.5 billion payment that it needs to make, you know, within the next month or so. So, watch this space. You know that they have asked for big layoffs. Their union contracts, Carol, have no layoffs clauses, we're told.

So, they've asked for layoffs to attrition and outright layoffs. They've also asked for other ways to cut cost including closing down on Saturdays. No Saturday mail delivery, but the post office will it continue here -- Carol.

COSTELLO: Absolutely. Let's talk about the market.

ROMANS: Sure.

COSTELLO: It wasn't a great week last week? So, what's the outlook look this week?

ROMANS: It won't be any worse today, I can tell you that with great enthusiasm, because it's closed today.

COSTELLO: Just it's closed.

ROMANS: Stocks are not trading today. But this week, look, it's going to be about jobs in the U.S. What kind of razor-thin margin do economists think we're going to avert a second recession? So, you'll have a lot of double-dip recessions. I guess, you know, odds making this week. Also watching Europe and Europe's debt crisis. There's still a lot of things going on there, but I think it's really all about jobs, Carol.

After Friday's jobs report, when you saw the stock averages all down about one percent each on that bad jobs report. This is all about who is going to have the plan to get things going again on the jobs front. Don't forget, this is the goose that laid the golden egg, the American jobs market. I mean, every company, this is how they made all their money.

Now, they're all looking overseas for investment, research and development, the like, but what can be done for the biggest middle class to biggest consumer market in the world to get its consumers jobs again. Get things moving. That's what it's all going to be about.

COSTELLO: All right. Christine Romans. I'll see you in a bit. Thanks so much.

ROMANS: Sure.

COSTELLO: A penguin turned celebrity is on the first day of its long swim home. Happy Feet was released after two months of rehabilitation at New Zealand's Wellington Zoo. The wayward penguin gained worldwide attention when he was found near death on New Zealand beach in June. He needed surgery to remove sand from his stomach which he ate he thought it was snow.

Happy Feet slid off the back of a ship just north of Antarctica to begin his 2,000 kilometer swim back to its breeding grounds. It took a little coaxing, but once Happy Feet was in the water, he was well on his way.

(BEGIN VIDEO CLIP)

DR. LISA ARGILLA, WELLINGTON ZOO: Pretty hearty birds. And, he's got healthy. He's got a nice layer of blubber on him, keeping warm down south. Good luck. Go find a mate. Have children, but avoid those, I guess, orcas and seals.

(END VIDEO CLIP)

COSTELLO: I'm sure Happy Feet will take her advice. Happy Feet, by the way, has been fitted with a microchip and satellite tracking. You can log on and actually follow Happy Feet's progress. So, go to our farsouth.org, that's what the website is called, to see Happy Feet's exact location. It's expected Happy Feet will join up with other emperor penguins along the journey home. Go Happy Feet.

It is time to "Get Smart" now. We're tipping our hats to the American worker on this Labor Day, so here's your question. How many people over the age of 16 are in the nation's labor force? Is it A. 153 million, B. 175 million, or C. 200 million? I'll have the answer for you in two minutes. It's 36 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: It is 38 minutes past the hour. This is your A.M. WAKE-UP CALL. Before the break, we asked you this question. How many Americans are in the workforce? I want to you look at the answers if I know you are bleary-eyed. The answer is A, 153 million people. Of course, the unemployment rate stands at the 9.1 percent. That means there are 14 million out there looking for jobs.

Now, it's time for our "Political Ticker." Let's bring in our deputy political director, Paul Steinhauser. He's live on the phone from Columbia, South Carolina. Paul, there's a big forum today. Tell us about it.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR (on the phone): You got it, Carol, and good morning. It's called the American Principals Project Palmetto Freedom Forum. That's a long name, right, but, here's what it's going to be. We're here in South Carolina, and it's being organized by Senator Jim DeMint. He's right here in South Carolina, two-term Republican. Carol, he is really popular and very influential among Tea Party activists.

He's going to be taking card. Michele Bachmann, the congressman from Minnesota, Herman Cain, the former Godfather's Pizza CEO, Newt Gingrich, the former House speaker, Rick Perry, the Texas governor who just jumped in the race for the White House less than a month go, Ron Paul, the congressman from Texas, and Mitt Romney, the former Massachusetts governor who's making second run for the Republican nomination.

You know, Carol, Romney was a late entry, a late add to this event. He just decided in the last week that he was coming here. It's interesting this is going to be the second event in a row for him, second Tea Party event, I guess, you could say. Last night, he was in New Hampshire. He was at a Tea Party Express rally. It was the first time since he's declared for his candidacy that he's talked at a Tea Party rally anywhere in the country.

There are some people, Carol, in the Tea Party movement that were little upset with him. They don't really feel maybe he's a true conservative, and they had a counter rally right next to his rally. So, the dynamics today are going to be really interesting. Not a debate forum. They speak one at a time. We'll be here all day to find out what happens and what the highlights are, Carol.

COSTELLO: All right. We'll be waiting for that. Let's talk about President Obama. He gives a speech in Michigan. Also Vice President Biden is in Ohio today, and he's hanging out with union leaders. So, what's this all about?

STEINHAUSER: You know, kind of interesting. Labor Day, you'd expect the Democratic president and vice president to be at Labor Day rallies and union events. Look the states they picked. Two states that Barack Obama and Joe Biden need to win next year to, you know, spend another four years in the White House. Listen, Michigan, the president did very well there back in 2008, but it's a state where he's going to have a tough time winning that state again in Ohio.

As you know, you're from there. This is one of the classic battleground states. So, no surprise they would pick those two states today on Labor Day to, maybe, you know, try to energize the base.

COSTELLO: We'll see if it works, because I know Ohio is hurting big time when it comes to unemployment. Paul Steinhauser, thanks.

Let's take a quick look at sports now, shall we? Actually, it's more like a quick look at cramps. Rafael Nadal had a bad one in his leg about two hours after he won his match at the U.S. Open. Look at him. It came during a news conference. You can tell the guy is in agony. He lowered himself to the floor, but a few minutes later, he was up on his feet and he was smiling. Nadal blamed the cramp on the hot, humid weather. That looked painful.

So, Baltimore, how did you like your first grand prix race? Check out what happened during the warm-up.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This morning, just a few minutes into the morning warm-up, watch Kanaan, the green and yellow car launched over the top of his friend, Helio Castroneves. Helio got out of the car, immediately random check on Castroneves or maybe to check on Kanaan --

(END VIDEO CLIP)

COSTELLO: That happens all the time on the street (ph). I don't know why anyone is surprised. Anyway, that crunching sound just makes you cringe, doesn't it? That's what happens when the brakes fail at about 180 miles per hour. Neither driver was hurt. Indy car driver, Will Power won the race. The course was laid out on Baltimore city streets as you see.

And this is what an absolute blowout looks like. The Detroit Tigers beat the White Sox 18-2 last night. Yes, it was a three-game sweep. What again, 18-2? Look at all those Tigers crossing the plate. One after the other. Chicago didn't score until the ninth inning. So, the tigers were tired and then the White Sox scored. Wow. That puts the Tigers way ahead in the central division.

Tropical storm -- or tropical depression Lee -- I should say -- has gotten weaker, but it is still soaking the Gulf States, and now it's moving up the coast toward areas still devastated by Hurricane Irene.

But first, on this day in history in 1836, Sam Houston was elected president of the republic of Texas, which won its independence from Mexico in a military rebellion. It would be nine years before Texas would be admitted to the United States as a state, and Sam Houston helped in that process as well. It's 43 minutes past the hour.

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COSTELLO: Good morning to you. It is Monday, September 5th. This is your A.M. WAKE-UP CALL. Happy Labor Day. I'm Carol Costello joining you live from New York this morning. It is 46 minutes past the hour. Tropical depression Lee is weaker, but it is soaking the Gulf Coast on this Labor Day.

It's dumped about a foot of water on parts of Louisiana and Mississippi where some roads and low-lying areas are now underwater. Our Ed Lavandera is in Crow Point, Louisiana near New Orleans. So, Ed, set the scene for us.

ED LAVANDERA, CNN CORRESPONDENT: Well, good morning, Carol. It's actually a very bizarre scene in this little area south of New Orleans where we've seen to kind of give you an understanding, we're near the town of Jean Lafitte, Louisiana in Crow Point. These various communities that are under mandatory evacuation orders in many parts, because these are areas surrounded by the intercoastal waterways where several dozen miles away from the coastline, but what's happening is that this storm has slowly and painfully slowly moved on shore.

The winds are coming out of the south. So, this isn't a rain problem. This is more of a tidal surge problem. The winds from tropical storm Lee are still pushing toward the north, and that's pushing the water in. So, this is a heavily wooded area, but what's creepy is that the water kind of slowly emerges from the woods and has overtaken roadways and is threatening to spill into dozens of homes in these small communities. Several roadways are shut down, and there's a serious effort going on to sand back and try to control the flow of the water as much as possible.

They're fighting that right now. As we speak, it is high tide. So, that makes the problem even worse at this point. What they're hoping for, Carol, is that the winds will start to shift throughout the day today and when the winds start pushing back toward the south after the bulk of this storm passes by, then that will help the flooding and let the water begin to recede. So, they're really waiting for those -- for that wind to shift back toward the south, and they feel that that will help them through this.

COSTELLO: I hope it does soon. Ed Lavandera reporting live from near New Orleans this morning. Let's talk some more about Lee's leftovers, because they could dump more rain on upstate New York, New Jersey and Vermont. The last places that need more rain right now. As you know, they're still dealing with Irene's mess. Let's check on Lee's track with Rob Marciano. So, when will things get better, Rob?

ROB MARCIANO, AMS METEOROLOGIST: Well, it's going to be a few days. Lee is not very strong anymore, but it's going to be interacting with a very, very strong, at least, for this time of year, cold front. That will, you know crank the winds a little bit, but more importantly, it's going to drag a lot of that moisture slowly up towards the north and east. Here is some of that moisture. Check it out on the radar scope. We have tornado watches that are in effect as well for a good chunk of the Florida panhandle and parts of Mississippi.

Couple of tornado warnings have been indicated just east of Jackson. By the way, heavy rains across Jackson, Mississippi at this hour. Some flooded roadways in that area. Ten-plus inches recorded at New Orleans. Baton Rouge, seeing eight inches. Biloxi and Pascagoula also seeing a tremendous amount of rainfall with Lee, which is going to be slowly moved off towards the north and east.

Extra tropical cyclone which means it's getting in with that cold front and that's going to dump seven inches potentially of rainfall in Chattanooga, maybe five inches in Knoxville across the Tennessee Valley, then off the Appalachians we go and could see a couple of inches, maybe three or four in some isolated spots and some of the hill or your terrain across the northeast. We're already starting to see some of that moisture stream up.

Briefly, Hurricane Katia, winds now of 100 miles an hour. It's a Category 2, and it continues to head towards the coastline of the U.S., and it was getting a little bit nervous there for a while, but now, we're getting more confident that these cold fronts that are coming across the northeast, they should push Katia out to sea, but it will bring in some big waves.

All right. If you're traveling today, some Atlanta delays because of the rainfall. Same deal up there in New York. The heavier rains will moving in later on this afternoon and D.C. metros and Philadelphia as well. We'll be watching Lee ironically enough some of the winds in the back side of the thing which did not bring any rain across Texas have kind of an aggravated the wind situation for the fires that are happening over there. So, it would be easy if we could just, you know, pull it from one spot and just kind of pop it in the other. That would be ideal. Not the way it works.

COSTELLO: Wouldn't that be great? I know.

MARCIANO: Exactly.

COSTELLO: Thank You, Rob Marciano. We talked about Lee and we talked about Katia. Let's talk more about Irene, because, as we know, it's gone, but it certainly has less than deep scars. President Obama now offering government help to the people whose homes and businesses were flooded out. He visited Northern New Jersey for a firsthand look at what people were dealing with there. This is where the Passaic River spilled out of its banks and caused so much damage.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The entire country is behind you. And we are going to make sure that we provide all the resources that are necessary in order to help these communities rebuild.

(END VIDEO CLIP)

COSTELLO: Flood warnings were still in effect over the weekend for parts of the Passaic and Pompton Rivers.

And drought stricken Texas. Those huge wildfires have claimed two lives now. Officials say a 20-year-old woman and her 18-month-old daughter were killed when flames engulfed their mobile home. Strong winds from Lee have not helped. That system has fueled several fires throughout the state. One is now threatening 1,000 homes. Texas is dealing with its worst fire season ever. A record 3 1/2 million acres have burned since last November.

Talk Libya now. With Tripoli in rebel control, Libyan fightes have set their sights on new targets. They've surrounded Sirte, Gadhafi's hometown and a handful of other cities still loyal to the ousted leader. Their demands, surrender by Saturday or they will take those cities by force.

And U.S. officials say terrorists might try to use small planes to attack the United States, although, they don't have any specific information about those plots. But they do want state and local law enforcement to be aware and vigilant given the ten-year anniversary of 9/11 is next Sunday. The department of Homeland Security and the FBI sent out that bulletin on Friday.

And new pictures from September 11th, 2001, have surfaced nearly ten years later. These pictures were taken just minutes after United Airlines flight 93 crashed into a Pennsylvania field. You will hear a man talking about what he sees.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The remains of an airplane crash over on Lamberts Road and probably had a terrorist bomb on board that blew up. Don't know anything more than that. That's what I heard on the scanner. I just saw the smoke come up, and the explosion shook the house clear over here. We are, what, 15 miles from Lamberts, and it shook the heck out of --

(END VIDEO CLIP)

COSTELLO: The man who shot the pictures has since died and his family does not want him to be identified. CNN will bring you special 9/11 coverage beginning next Sunday morning at 8:30 eastern, and tonight at 11:00 eastern, don't miss the CNN special, "Beyond Bravery, The Women of 9/11."

Before we go, let's take a look at our word of the day. The word this morning, underemployed. Find out what it means. I bet you know what it means already. Anyway, find out why you need to know what it means right after this short break. It's 53 minutes past the hour.

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COSTELLO: It's 56 minutes past the hour. This is your A.M. WAKE-UP CALL. The word of the day, underemployed. Well, the underemployed or involuntary workers want a full-time job, and they're about 8.8 million Americans underemployed. That's according to the Bureau of Labor Statistics. So, that means they have a job but not the kind of job they want. So, that means many of them could be competing for work with the 14 million unemployed Americans still out there.

President Obama is making his jobs speech the same night as the NFL opening game, and that's not sitting well with many people, including comedians. So, here's your punch line this morning.

(BEGIN VIDEO CLIP)

JAY LENO, HOST, THE TONIGHT SHOW WITH JAY LENO: President Obama is now agreed to move his jobs speech from September 7th to September 8th. It's the same night as football season starts. Of course, the main difference, Obama's job plan has a lot more Hail Marys in it.

Since his speech is on right before football, one thing about Obama, he knows how to promote. Look how they're promoting the speech right before the game.

(SINGING) are you ready for some talking? Are you ready for optimistic revelry? Are you ready to be listening? I 'M going to talk about jobs and stuff like this yes. It's time for Democrats and Republicans, too with the president to speech to rock the hell (ph) out of you.

LENO: Wow.

(APPLAUSE)

(END VIDEO CLIP)

COSTELLO: It's more exciting that way, though, doesn't it?

Dragon Con is the largest multimedia pop culture convention in the entire world. It takes place each year on Labor Day weekend in Atlanta, and now, one of the most anticipated events of Dragon Con is the parade. Take a look.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hey a camera.

UNIDENTIFIED FEMALE: Dragon Con is the nerd super bowl, and the parade is the shining event of the nerd super bowl. It is the most fun on earth to have all year.

UNIDENTIFIED MALE: What's so special about Dragon Con is that it's the largest fan-based run science fiction multimedia convention in the world.

UNIDENTIFIED MALE: Everybody stand back. We immediate to make sure you're safe. This will not hurt. Right here, this one.

UNIDENTIFIED FEMALE: Comicon is bigger, but it's all corporate. This is fan-based run. So, you have a lot more interaction with the fans.

UNIDENTIFIED FEMALE: This is my first Dragon Con.

UNIDENTIFIED FEMALE: This is my eighth year.

UNIDENTIFIED MALE: I have been coming for four years.

UNIDENTIFIED FEMALE: This is my first time at Dragon Con.

UNIDENTIFIED FEMALE: One you can where you just be what you want to be and do what you want to do and not have to worry about anybody.

UNIDENTIFIED FEMALE: Here they come.

UNIDENTIFIED FEMALE: If you're into any of this at all no matter what genre, you got to make the mecca of Dragon Cons.

UNIDENTIFIED MALE: No filming here.

(END VIDEOTAPE)

(LAUGHTER)

COSTELLO: That was cool. "AMERICAN MORNING" continues right now.