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American Morning: Wake Up Call
Arrests & Teargas for Protesters; Lawmakers: "Dangerous Apps"; First Flight; Source: Former Goldman Exec To Surrender; HPV Vaccine Recommended For Boys; Fact Checking Perry's Tax Plan
Aired October 26, 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: Several new developments involving "Occupy Wall Street" protests in Oakland, police used tear gas to shut down protesters. And just a short time ago in Atlanta, authorities took protesters away in handcuffs, hundreds of them.
Lawmakers are labeling them dangerous apps. Could this be a crackdown on those apps that help people track other people's every move?
And just before 4:0 a.m. Eastern, the Boeing 787 Dreamliner touched down in Hong Kong. It's just three years behind schedule.
Good morning to you. It is Wednesday, October 26th. This is your A.M. WAKE-UP CALL.
I'm Carol Costello, joining you live this morning from New York.
President Obama is beginning his day in Denver. That's where he'll spell out his plan to make it easier for millions of student loan borrowers to pay off their enormous debt. He'll explain his plan at a speech at the University of Colorado-Denver campus.
The two key points of his proposal: he wants to offer relief sooner by pushing up the start date for an income-based repayment plan passed by Congress. It's set to take effect in 2014, but the president wants it to begin in January. The plan reduces to 10 percent the maximum percentage of income that more than 1 million current students would have to pay toward their loans. They'll also be eligible for loan forgiveness in 20 years instead of 25.
The other proposal would offer a small interest rate break for borrowers who consolidate their different types of federal loans.
"USA Today" reports the outstanding student loan debt is expected to hit the $1 trillion mark this year.
Denver is the last stop on the president's swing through three Western states. While in Los Angeles yesterday, the president appeared on "The Tonight Show" with Jay Leno.
This picture shows Leno clowning around in the president's dressing room. Well, they had a little fun.
The president also addressed some pressing issues like the economy.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Look, people are frustrated. And that frustration has expressed itself in a lot of different ways. It expressed itself in the Tea Party. It's expressing itself in "Occupy Wall Street."
I do think what this -- what this signals is that people in leadership, whether it's corporate leadership, leaders in the banks, leaders in Washington, everybody needs to understand that the American people feel like nobody's looking out for them right now.
(END VIDEO CLIP)
COSTELLO: President Obama also says right now he's not paying much attention to the battle for the Republican presidential nomination until the field narrows down to one or two candidates.
One of those in the fight for the GOP presidential nomination is, of course, Texas Governor Rick Perry. He's just unveiled his "Cut, Balance and Grow" tax plan. It would allow you to choose between your current income tax rate and a 20 percent flat tax. The flat tax would keep some popular deductions like mortgage interest and charitable contributions for families earning less than $500,000. The plan also would lower the corporate tax rate to 20 percent and pays out loopholes and special tax breaks.
Perry also would repeal the health care reform law and parts of financial and Wall Street reforms.
Some prominent conservatives were quick to slam his plan with one saying it makes no sense from a policy perspective.
While most of the country seems to have put to rest the issue over President Obama's Hawaiian birth certificate is legitimate, Rick Perry continues to kick it around. In a recent interview with "Parade" magazine, Perry expressed his doubts. He was asked about his comments by CNN's Jim Acosta.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: I'll cut you off right there. That is one of the biggest distractions that there is going. We need to be talking about jobs.
If somebody wants to see my birth certificate, I'd be happy to show it to them. The fact is that is a distraction, and Americans really don't care about that, if you want to know the truth of the matter.
No, what Americans want to talk about is jobs. Who is going to lay out a plan of which will get America working again?
(END VIDEO CLIP)
COSTELLO: We've said it before, and we'll say it again -- there is no evidence to suggest Mr. Obama was born anywhere but right here in the old U.S. of A.
We're learning this morning, one person was killed in a midair collision in Oregon. One of the planes you see here touched down safely yesterday. The pilot and passenger walked away shaken but unharmed. That's according to "The Oregonian."
But the paper reports at least one person in the other plane was killed in the fiery crash.
For some New Yorkers, the "Occupy Wall Street" protest is all about the drums. Yes. Some residents say they have had enough of drum-playing and other loud noise from the protesters. And their complaints have been heard. Protesters have now agreed to limit the drumming of four hours during the afternoons.
"Occupy" protests in other cities have not been so peaceful. Oakland, California, police sprayed protesters with tear gas yesterday after they were pelted with paint and other objects and ignored orders to disperse. In Atlanta, police arrested several "Occupy" protesters overnight who had been camped out in a downtown park.
Former "60 Minutes" news commentator Andy Rooney is in the hospital this morning after suffering serious complications following minor surgery. CBS says Rooney is in stable condition. Rooney, who is 92, underwent surgery last week. He stepped down from his "60 Minutes" role earlier this month after more than 30 years on the show.
Let's head to Atlanta and check in with -- is it Rob? Rob, are you back this morning?
ROB MARCIANO, AMS METEOROLOGIST: You know, we're doing an every other day thing right now.
We've got some things cooking. A fun story for you coming here on Friday morning. And until then, Carol, late-season hurricane and an early season snowstorm happening now. I mean, crazy time of year, that's for sure. And the first one -- or at least the snowstorm one -- is going to cause some immediate problems as far as delays at the airports are concerned.
Here's where it is on the radar scope. This thing is more reminiscent of -- you know, we do get snowstorms obviously in Denver in fall, but typically, it's more in the middle of November or late part of November. This is definitely early. And the amount of snow that's falling right now in Denver is causing some major problems along I-25 between Denver and Cheyenne. As a matter of fact, portions of that interstate closed because of visibility and the snow continues to pile up in this area.
So, as it does so, we'll look for flight delays also, and three to six inches potentially in Denver, a lot more than that at the higher elevations, of course. And the winds will be kicking.
By the way, the president's in Denver today. So, you know, they may have some problems there with Air Force One. Who knows?
New York, Philly, some afternoon showers. We've got a little cold front sliding that way. There it is on the map. Heading over the Lake Erie area and will get over the Appalachians before too long -- just some run-of-the-mill showers.
The other big weather story is Hurricane Rina. This has winds of 110 miles an hour westerly moving at five. This will make landfall across the Yucatan Peninsula in the next two days, potentially as a category 3 storm.
We're almost there. We only need to get this thing up another mile an hour or two to become a major hurricane.
COSTELLO: Why am I not getting this in my computer?
MARCIANO: We'll get you your computer in just a second.
First of all, check this out, Carol. Let's roll this beautiful light show footage just for your trick-or-treat awareness.
(VIDEO CLIP PLAYS)
MARCIANO: OK. If that doesn't get you in the trance, rave, trick-or-treat mood, I don't know what is.
I'd like to see what this guy in Riverside, California, does for Christmas.
COSTELLO: I love the music. Yes. That makes my computer problems go away this morning.
MARCIANO: Doesn't it? It makes it all better. A little creepy, too.
COSTELLO: It is. Thank you, Rob Marciano. We appreciate it.
MARICANO: See you, Carol.
COSTELLO: As for your smartphone, most of us can't get enough of them. But on Capitol Hill, lawmakers are very concerned about certain kinds of apps. They're calling them dangerous. We'll explain in a live report.
But, first, our "Quote of the Day." Here it is, quote, "They keep putting duct tape on it. I'm not the kind of plumber that uses duct tape," end quote. That's a comment from a new politician with an old name. Find out who it is in 90 seconds.
It's eight minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: Ten minutes past the hour. This is your A.M. WAKE-UP CALL.
Now back to our "quote of the day." Here it is: "They keep putting duct tape on it. I'm not the kind of plumber that uses duct tape," end quote. The big clue, that would be the word "plumber." That's because that's Joe Wurzelbacher better known as Joe the plumber.
You might remember him. He challenged Barack Obama on his small business tax plan during the 2008 campaign. He made the statement yesterday while announcing that he is running for Ohio's ninth congressional district. He also said he's confident he can win because he knows how to keep it simple.
You've heard of apps designed to help keep track of your loved ones, but those same apps can be used by anyone who wants to stalk you.
Let's head to Hong Kong and Kristie Lu Stout.
OK, this sounds scary -- so scary that lawmakers are now concerned.
KRISTIE LU STOUT, CNN INTERNATIONAL ANCHOR: That's right. Senate Democrats and Republicans are very concerned, and they're both seeking a federal probe of the so-called stalking apps. And these are smartphone apps that abusers could use to track down victims' movements, e-mails and phone calls.
In a letter to the attorney general and the FTC chair, the senators wrote this: quote, "Stalking apps are dangerous. We ask that you quickly determine if they're also illegal." And the letter notes that a woman, a victim in Minnesota, she was tracked down by her abuser using one of these mobile apps. And all this happened as she went between government buildings to obtain a legal order to keep him away.
And she is not the only victim out there. The Bureau of Justice Statistics says about 26,000 Americans, 26,000, were the victims of GPS stalking last year. And, Carol, that number is expected to rise.
Back to you.
COSTELLO: Wow, that's really frightening. Let's talk about this, too. Google has put out this fascinating report on the total number of request to remove content from governments around the world. Tell us about that.
STOUT: Yes, this is a very significant report. It's called the Google Transparency Report. The goal is to show how governments around the world affect our access to information on the Internet. Brazil in this recent report made the most content removal requests in the first half of this year, followed by Germany, the U.S. and South Korea.
We also know that Google servers were inaccessible in Libya during the first six months of the year, as was YouTube that was down in China.
And report -- this is the most interesting part to me -- it also reveals a 70 percent rise in takedown requests from the U.S. government or police. Google face demands from an American law enforcement agency to take down YouTube videos allegedly showing police brutality. And Google says providing this level of detail, it just shows the need to modernize laws like the Electronic Communications Privacy Act which regulates government access to user information.
You can find the full report, the full download, on the official Google blog.
Back to you, Carol.
COSTELLO: Kristie Lu Stout, reporting live from Hong Kong -- thank you.
COSTELLO: Herman Cain comes out on top again in another national poll. But can he turn his support into a victory in 2012? We will talk about that next.
It's 13 minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: Fourteen minutes past the hour. Good morning to you.
President Obama has been busy trying to get America back on track. So, you have to wonder, does he have time to pay attention to the polls? The competition, the debates?
Well, comedian Jay Leno got the answers for us.
(BEGIN VIDEO CLIP)
JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": The GOP opposed withdrawing from Iraq.
OBAMA: That's shocking that they oppose something I proposed.
LENO: Yes.
(LAUGHTER)
LENO: Have you been watching the GOP debates?
OBAMA: I'm going to wait until everybody's voted off the island.
LENO: Really?
(LAUGHTER)
OBAMA: Once they narrow it down to one or two, I'll start paying attention.
(END VIDEO CLIP)
COSTELLO: Time now for your "Political Ticker" with Tim Farley, host of "Morning Briefing" Sirius POTUS live from Washington.
Good morning, Tim.
TIM FARLEY, SIRIUS POTUS: Good morning.
Yes, sure, the president's totally disengaged from the political process. He's not paying attention at all. I believe that.
COSTELLO: He doesn't watch any of those silly debates. Sure.
FARLEY: Heaven forbid, he should do that.
COSTELLO: Heaven forbid, exactly.
The president took some jabs at the GOP, but he also discussed some serious topics on Leno last night. It was pretty interesting, actually.
FARLEY: Yes, I think there were a couple of times he talked about the death of Anwar al-Awlaki. He talked about the war in Iraq, although Jay Leno did not follow up about the troops in Afghanistan. As a matter of fact, when they talked about Iraq, the president almost made it sound like the war was a wonderful thing.
But that said, it's typical Jay Leno. This is an opportunity for the president to sit down with somebody who's pretty friendly and throw if not all softballs at least some questions that are letting the president say what he wants to say. He got more time than he would typically get with a regular television anchor or a mainstream media resource.
I think the president does a great job. It's seen more things than any of the sound bites you see. So, here it is, President Obama saying all the things he needs to say, and getting his point across.
My favorite, though, Carol, was when he talked about the fact that trick-or-treating time is coming up and, you know, Michelle, the first lady, wants to hand out fruit. And the president said they're going to egg the White House. Although I was trying to imagine what it would be like if somebody actually tried to egg the White House. I don't think that would be something you could do very easily.
Can you imagine walking up with toilet paper to the White House and say I'm here? No, it's in the going to happen.
COSTELLO: I think those snipers that stand on top of the White House would have a problem with all of that.
FARLEY: They might have something to say about you're getting close to the White House with your mayhem.
COSTELLO: Exactly.
Let's talk about Herman Cain because why not? He's topped yet another national poll, the CBS/"New York Times" poll. He leads in that poll, 25 percent of the vote followed by Mitt Romney. Rick Perry actually finishes fifth which, you know, maybe the flat tax thing for Perry will like catapult him upwards. Who knows? But --
FARLEY: I'm not sure. These are national polls, and so, they don't really indicate too much. You know, the Cain train, the Perry plummet sounds like rides at the Texas state fair.
But you're watching Herman Cain -- I still believe, Carol, that Herman Cain is the Enron of campaigns. I just don't think there's a lot of substance beneath this. There aren't a lot of evidence or there isn't a lot of evidence that he's got a campaign machine out there.
Once you get to Iowa, and Rick Perry said this on an interview last night on television, once you -- you've got to wait until you actually see people voting. Does the flat tax get him back into the game? A little bit. It gives him some more substance. The birther thing is kind of a distraction.
But once people actually start voting, we'll see where they really are. And, you know, I think one of the things about this poll that you see is that a lot of people haven't really made up their minds to commit to a particular voter. So that's where it's going to play out between now and I think it's, what, 68 days or something like that before we get to the Iowa caucuses. That's when we'll actually see the rubber hit the road.
COSTELLO: Yes. Ed Rollins said if Mitt Romney wins the Iowa caucus, it's done. Mitt Romney will be the nominee, because he's going to win in New Hampshire.
FARLEY: I would always believe -- I always believe Ed Rollins. And, yes -- and New Hampshire is pretty much, he's got a 20, 25-point lead in most of the polls in New Hampshire, Romney does. So, I would agree. If Romney wins Iowa, I can't imagine anyone else having a chance in taking that nomination away.
COSTELLO: We'll see. Tim Farley, thanks, as always -- Tim Farley, host of "morning briefing" on Sirius POTUS Radio.
Three years behind schedule, but the Boeing 787 Dreamliner finally makes its first commercial flight. It landed just a short time ago. We'll have all the details.
But, first, get your dance shoes and bust a move. That's because it's Unity Dance Day. An anti-bullying organization wants people to unite through dance to make a statement against bullying. The day even has an official song. Eleven-year-old Tristan McIntosh sings, "You can't take that away from me."
(MUSIC)
COSTELLO: That girl's 11? I'm just amazed. That girl's 11? Wow!
It's 19 minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: It is 22 minutes past the hour. Good morning to you.
On the second day of his West Coast swing to boost the economy, President Obama made a pit stop at "The Tonight Show" where comedian Jay Leno wasted no time getting his thoughts on ousted leader -- Libyan leader, I should say, Moammar Gadhafi.
(BEGIN VIDEO CLIP)
LENO: The big news this week, Gadhafi's dead, rebel forces -- killed by rebel forces. Your reaction? Your take on this?
OBAMA: Well, this is somebody who for 40 years had terrorized his country, had supported terrorism, and he had an opportunity during the Arab Spring to finally let loose of his grip on power and to peacefully transition to democracy. We gave him ample opportunity, and he wouldn't do it.
And, you know, obviously, you never like to see anybody come to the kind of end that he did. But I think it obviously sends a strong message around the world to dictators --
LENO: Yes.
OBAMA: -- that people long to be free.
(END VIDEO CLIP)
COSTELLO: The winner in Tunisia's first election is an Islamic party that was once banned there.
So, let's head around the world with Zain Verjee. She is live in London.
So, let's talk about the vote in Tunisia. What does it mean?
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Well, it's not official yet. Official results for the election are likely to come out pretty soon. But the Ennahda Party, a moderate Islamist party, is already beginning to claim victory and coming out front. They may have to deal with another party, a secular party, to form a coalition government in order to rule.
But, Carol, this is a really big deal -- the first free and fair election in Tunisia that really sets the tone for the rest of the Arab world. They are watching very carefully and closely to see exactly how this is happening, how successful it is, and what happens next.
The Islamist party is also worrying, though, to so many people in Tunisia and in the region because of their Islamist values. Many of these sorts of parties want to operate according to Sharia law, create Islamic states and things like that. And many worry that it's really going to pose a threat to more liberal democratic values. For example, there were a lot of women speaking out saying they're really worried about their rights.
The Islamist party, as well as other analysts, have said it's possible for Islam and democracy to co-exist. So, people will be watching to see exactly how Tunisia handles this. Many, too, point to Turkey as an example of success where Islam and a democratic environment in some respects do exist -- Carol.
On another topic this morning, the first commercial flight of the Boeing 787 Dreamliner. It was delayed for three years, but it made a beautiful landing this morning.
VERJEE: Yes, it was absolutely perfect. It was delayed and it cost Boeing $16 billion to get this up in the air and a successful project. This was the first passenger flight, and it went from Tokyo to Hong Kong. There you see it landing just a short while ago there on the runway.
Well, this is really a visionary design is what Boeing is calling it. Let me just give you an idea about what's different here because the whole objective here was essentially to make it cheaper for passengers to fly in this kind of a global environment economically, as well as to land at the same time.
So, basically, this plane is lighter. It's got more space. It's more fuel efficient.
The cabin pressure, too, Carol, is a lot higher. So that basically means that it would cut down passenger fatigue, things like dry eyes, headaches and also maybe you can't tell from that picture, but the windows are actually bigger as well -- Carol. There you go.
COSTELLO: It's like -- I don't know, sliding glass doors in your home. Not really. It does look quite nice.
VERJEE: Yes, it does, doesn't it? We'll see what the passengers have to say when we speak to them as they disembark.
COSTELLO: Can't wait. Zain Verjee live in London, thank you.
"Occupy Atlanta" protesters arrested overnight, but not before the mayor sent in ministers in hopes of resolving the situation peacefully.
Plus, the Centers for Disease Control recommends that boys now get the HPV vaccination. Why? And will they? That's just ahead.
(COMMERCIAL BREAK)
COSTELLO: Good morning to you. It is Wednesday, October 26th. This is your A.M. WAKE-UP CALL. I'm Carol Costello joining you live from New York this morning. It is 30 minutes past the hour.
This morning occupy demonstrators in at least two cities are cooling their heels after police action. In Atlanta, arrests came after the mayor first sent ministers to talk with protesters, but when the Occupy Wall Streeters still didn't leave, police moved in overnight to clear out the park
In Oakland, hit with paint, police fired tear gas at protesters. At least 85 were arrested there, according to CNN affiliate, KGO. The occupy demonstrators say they're rallying against corporate greed, arrogance, and power.
Former Goldman Sachs director, Rajat Gupta, is expected to turn himself in to the FBI today. A source familiar with the case says he faces criminal charges for leaking inside information to a hedge fund founder recently sentenced to 11 years in prison for insider trading. Gupta is the highest ranking company official to be named in the federal probe.
Today, the jurors in the Conrad Murray trial will hear from people who say the doctor saved their lives. Tuesday, a nurse told the jury Michael Jackson asked her for propofol as the defense tries to show Jackson was seeking the drug from a number of different sources. Later today, they're expected to call five people to serve as character witnesses for Dr. Murray.
You can watch live coverage of the trial throughout the day on our sister network, HLN.
The Centers for Disease Control says yes, their advisory committee has voted to recommend that males ages 11 to 21 be vaccinated against the Human Papilloma Virus. Our Elizabeth Cohen explains that decision.
(BEGIN VIDEO CLIP)
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: You know, the CDC says that it's safe. There's really no dispute among doctors. Doctors agree that it's safe. And they say for boys, there are three benefits. Number one, it cuts down on the chance that they'll get genital warts when they get older.
Number two, it cuts down on the chance will get certain types of cancer. And number three, it cuts down the chance that they will give this virus to girls. And of course, when girls get this virus, it means that they could go on to get cervical cancer. So, they see it as a three-for with really no serious side effects.
(END VIDEO CLIP)
COSTELLO: It's now up to each state to decide whether it will require kids to get the shot before going to school. Right now, only Virginia and the District of Columbia require girls have it.
Still ahead, more details about the president's plan to help college graduates buried in student loan debt.
(COMMERCIAL BREAK) COSTELLO: Thirty-three minutes past the hour. Welcome back. President Obama has no doubt that many Americans are fed up with the current state of the economy. As he sat down with Jay Leno last night, he explained how that type of pressure makes him feel every day.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: People are hurting out there. And they've been hurting out there for a while. And people were having a tough time even before the crisis. You know, incomes, wages were all flat.
Costs of everything from college to health care to, you know, gas to food, all of it was going up. And so, people were feeling a lot of pressure even before this crisis. And so, you know, every day, I wake up saying to myself, look, you can't expect folks to feel satisfied right now. I'm very proud of the work that we've done over the last two, three years, but they're exactly right. We've got more work to do.
(END VIDEO CLIP)
COSTELLO: We've got two big stories to cover. Countries in crisis. American students in crisis. So, let's head to Christine Romans. She's live here in New York with me. Good morning, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Good morning.
COSTELLO: Let's talk first about the European leaders and whether they're making any progress on ways to tackle the Euro zone's debt crisis.
ROMANS: Yes. We're going to need some definition on their plan and what they're going to do, and that definition's probably going to come today. A big summit. It will be hours before we know what they want to do. But, first of all, you know, what will banks have to take. Well, kind of hit (INAUDIBLE) on their Greek exposure, their Greek debt.
What kind of recapitalization plan do they have for the banks, and will there have to be any changes to treaties the companies have to be in the EU? All that will be worked out. Once you can put that uncertainty behind us, that will be very important for everyone going forward. So, we're going to get more clarity on that today. Still a lot of questions. Today is the day we hope to get those answers.
COSTELLO: Let's talk about the president's plan to help college students who are deeply in debt. It sounds good at face value.
ROMANS: Yes, it does. Now, look, I want to be clear about something. The president's health care reform had a lot of this in it, and it really got overshadowed. The president and health care reform really try to tackle, and Congress passed student loan reform. Now, the White House is trying to move up its reforms by about two years.
Here's what's in it. It would reduce the repayment amount that people have. And what that means is that after you graduate from school, you won't pay more than 10 percent of your income to your student loans, and they'd be forgiven after 20 years. That accelerates the loan forgiveness rate by about five years.
Right now, there's something called income-based repayment, and if you don't know what that is and you got a bunch of loans, you need to find out what it is. IBR, income-based repayment, that allows to you forgive your loans after 25 years, and it gives you a chance, a one-time limited chance, the White House says, to consolidate your loans you currently have and get about a half of percentage point change in interest.
So, it's supposed to be help for students buried in debt. Now, here's what I'm concerned about, Carol. When we have looked at a lot of these plans to help people pay their debts, there's one thing that we just never really get to address, and that is the rising cost of tuition. Many say it's a bubbling tuition. The universities still get paid. The tuition still keeps going up.
You still owe all this money. It's about how you're supposed to repay it. There's another thing in here that is really important, and that is this. If you go into a nonprofit or some sort of important industry for the public service, you can have your debt repaid after ten years. Income-based repayment.
Now, some of these new provisions will start in 2012 instead of 2014. There's some things in here that are going to help people, but the tuition bubble problem, high cost of tuition, not addressed overall, Carol.
COSTELLO: Yes. And it keeps going up.
ROMANS: Yes.
COSTELLO: It's not like it's flattening out or anything like that. You're right about that. Christine Romans, we'll talk more about it.
ROMANS: Sure.
COSTELLO: We're going to have the education secretary, Arne Duncan, on "American Morning," and we'll ask him those very questions and see what he has to say. Arne Duncan come your way at 8:10 eastern. Be sure to join us.
Rick Perry is out with his own tax plan, but is it all that? We do from fact checking right after this.
But first, it's time for your "Get Smart" question of the day. This one may make you wash your hands right away. I'm having trouble with the word "wash" this morning. Anyway, a new study found the germiest thing we touch in our everyday lives is A. An escalator handrail, B. Your work computer, or C. The gas pump? The answer in two minutes. It's 38 minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: It is 40 minutes past the hour. This is your A.M. WAKE-UP CALL.
Now, the answer to your "Get Smart" question of the day. (INAUDIBLE) A new study found the germiest thing we touch in our everyday lives, is it A. Escalator handrails, B. Work Computers, or C. Gas Pumps. The answer is C. Gas pumps.
The study was done by a microbiologist nicknamed Dr. Germ, and it was published in "USA Today." The scientist found 71 percent of gas pump handles are highly contaminated. Community mail boxes, ATM buttons, and escalator rails were also on the list.
Republican presidential candidate, Rick Perry, has just released his tax plan called cut, balance, and grow. It would allow you to choose between your current income tax rate or a 20 percent flat tax. The flat tax would keep some popular deductions like mortgage interest and charitable contributions for families earning less than $500,000 a year.
The plan would also lower the corporate tax rate to 20 percent and phase out loopholes and special tax breaks. Texas governor also would repeal the health care reform law and parts of the financial and Wall Street reforms. Some prominent conservatives were quick to slam Perry's plan with one saying it makes no sense from a policy perspective.
So, is Rick Perry's flat tax plan all that he says it is? CNN's Tom Foreman has done some fact checking. He shares it with Anderson Cooper. Here's what he found out.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN NATIONAL CORRESPONDENT: I think what you most need to know, Anderson, when you look at the plan today is what you don't know because that's what all the tax policy people here in Washington have been asking all day long. What do they know about this? The fundamental claim of the governor is that it will lower taxes for everyone. Listen.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY, (R) PRESIDENTIAL CANDIDATE: Families in the middle and on the lower end of the economic scale will have the opportunity to get ahead. You know, taxes will be cut across all income groups in America.
(END VIDEO CLIP)
FOREMAN: That's a big, big claim, Anderson. Let's look at some of the facts here. Certainly, under his plan, it looks like there would be lower taxes for wealthier people. There would be lower corporate tax rates for companies. No tax on dividends or capital gains nor inheritance tax. Those are things that generally tend to favor people who have a lot of money. There are the ones who benefit from those sorts of things.
But what about everybody else? Well, that's a different matter. He's talking about a $12,500 exemption before you pay taxes. That's higher than what we currently have. So, you can argue that's better for people at the lower end of the spectrum. If you have two parents and one child, for example, they easily go over $36,000 before they start paying an income tax of any sorts.
But, then, he's talking about a 20 percent flat rate over that. So, the problem here, when I say the part we don't know, Anderson, is for all of the 95 percent we know here, the five percent could have tremendous details and it will make a big difference. What kind of breaks do people lose at the lower end of the scale?
Things like the earned income tax credit. Do they still get credit for that in the long run? There are many, many, many details left in this, Anderson. So, the bottom line is when we judge this one, we have to say there's really a case of it being, at best, true but incomplete. Big emphasis on the incomplete.
(END VIDEOTAPE)
COSTELLO: Tom foreman.
Still to come on A.M. WAKE-UP CALL, did the Vatican just give its blessing to the Occupy Wall Street protesters? We'll have that story ahead.
But first, on this day in history, forget about your opinion of today's Congress and think back 237 years. Back to October 26th, 1774, that is the day the first U.S. Continental Congress adjourned. One of their most important accomplishments, writing the declaration of rights and grievances. That document would become the precursor to the declaration of independence.
It's 44 minutes past the hour.
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COSTELLO: Good morning to you. It is Wednesday, October 26th. This is your A.M. WAKE-UP CALL. I'm Carol Costello joining you live this morning from New York. It is 47 minutes past the hour.
The justice department says material from the United States ended up in Iraq as explosives, and they went through Iran to get there. Confused? A lot of people are. Let's head around the world with Zain Verjee. You're going to sort this all out for us, because it sounds disturbing.
VERJEE: It really is. It's very worrying, and it spans the globe. Basically, prosecutors are alleging that components that were bought at a U.S. company in Minnesota then went to Singapore. now, there were 6,000 radio frequency modules that were bought. You know, those are things that are used kind of between printers and computers, for example.
But they also can have a military use. Now, they were exported to Singapore. This company believed that that was the end destination, and those modules were just going to be used in a telecommunications project, but no. What happened was, prosecutors allege that those modules were then sent to Iran, and then, eventually ended up as unexploded IEDs in Iraq, about 16 of them, according to prosecutors.
So, this is the situation. It's being investigated. Four of the men were believed to be citizens from Singapore, and the U.S. wants them extradited. One of the guys is an Iranian citizen. It's unclear exactly where he is at this moment, but this is something that the assistant attorney general for national security also commented on. Here's what he said, Carol.
He said this, "This case underscores the continuing threat posed by Iranian networks seeking to obtain U.S. technology through fraud and the importance of safeguarding that technology."
And we're going to be following this story very closely, Carol, but it really presents a really serious problem because these -- this is equipment that is used all the time in telecommunications, but it has a military dual use. And if it ended up in Iran and then in Iraq and targeting ultimately U.S. soldiers, it's going to be something that needs to be investigated.
COSTELLO: You've got that right. On another topic, Occupy Wall Street, the pope is now weighing in. Is the pope really giving his blessing to the movement?
VERJEE: Well, the Vatican is saying this, you know, they said that they want a global public authority and the central world bank to rule financial institutions. So, they didn't come right on out and say it, but if you read between the Vatican lines here, you know, they're saying that the protesters have legitimate grievances.
The Vatican says that the dilatory of the market was really the problem. This crisis, it says, was caused out of greed, selfishness, people just hoarding so many goods. It also says that Wall Street just needs to rethink things, and the fact that people are out here on the street means that they have those grievances that need to be addressed.
COSTELLO: Fascinating stuff. Zain Verjee live in London. Thanks so much.
President Obama is beginning his day in Denver. That's where the president will spell out his plan and make it easier for millions of student loan borrowers to pay off their enormous debt. He will explain his plan at a speech at the University of Colorado-Denver campus. He wants to push up the start date for an income-based repayment plan passed by Congress.
It also reduces monthly payments to 10 percent of income and forgives debt after 20 years of payment instead of 25. Under the president's proposal, the changes would take effect in January rather than in 2014 as set by Congress. The president also wants to offer a small interest rate for borrowers who consolidate their different types of federal loans.
For example, if you have a private loan that's backed by the federal government and then you have another type of loan, you can consolidate those loans at a lower interest rate. "USA Today" reports the outstanding student loan debt is expected to hit $1 trillion this year.
We're learning more this morning about an air collision in Oregon.
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COSTELLO (voice-over): One of the planes you can see here touched down safely yesterday. The pilot and the passenger walked away shaken but unharmed. That's according to "The Oregonian," but the paper reports at least one person in the other plane was killed in the fiery crash.
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COSTELLO (on-camera): Let's head to Atlanta and Rob Marciano. Any flight delays to speak up today?
MARCIANO: Not yet this morning, but Carol, across New York and Denver especially, we're going to see some problems. Got an early- season snowstorm happening right now across the Denver metropolitan area. A few inches of snow already on the ground. It continues to blow hard there, and the snow will continue to pile up.
Winter storm warnings are posted. Yes. We do get snowstorms in the fall there. As a matter of fact, they had a decent one in 2006, but anytime we do, the potential exists for tree limbs to come down because of the -- a lot of leaves still on the trees and the snow weights down those branches.
So, that's going to be an issue today. We could see six to 12 inches around Denver proper. Meanwhile, a little front is pushing east across parts of the northeast, and that is going to cause some rainfall from Cleveland to Buffalo eventually in through New York. We'll get to Rina in just a second.
Here's what's going on as far as flight delays are concerned. Denver, New York, and Philly are going to be your hot spots. And as that front moves off to the east, some cold air is going to move in behind it. And Denver might not be the only spot that gets snow. Some of the interior spots across the northeast over the next couple of days may get some snow as well.
All right. Here's Rina. Winds of 110 miles an hour. It's nearing the Mexican coastline, westerly movement at five miles an hour, and we do expect it to become a Category 3 storm before it makes landfall during the day tomorrow with winds potentially of 150 miles an hour or greater. Then, into the Gulf of Mexico, then that same snowstorm that's in Denver is going to kind of push it off to the east.
It might push it into Florida. It might keep it south of Florida. We just don't know yet. But we'll keep you posted, obviously. Those in South Florida should be prepared for this. But are they prepared for this, across the west coast of Florida?
Hello, Lego man. Carol, this guy just kind of floated ashore there in siesta key near Sarasota. It's a 100-pound piece of fiberglass, stands eight feet tall. It's done by a Dutch artist. Guys like this have floated up through the Netherlands and through the UK, but this one, all of a sudden, just popped up across western coastline of Florida.
Coincidentally, I don't know if this had anything to do with it, there's a Lego land exhibit happening right now in Winter Haven, Florida. I'm sure there's --
COSTELLO: You're kidding.
MARCIANO: Yes. So, maybe there's a connection.
COSTELLO: I don't know. It was so much better when it just seemed random like that. But, it is an interesting sight.
MARCIANO: There is the free publicity for Lego land. See you at six o'clock, Carol.
COSTELLO: I'll be there.
The good news, we're getting a look at the list of the most reliable cars from "Consumer Reports." The bad news, one American carmaker, well, it's not on the list.
But first, let's take a look at the "phrase of the day," shall we? It's lagrangian point. Find out what it means and why you need to know about it after a break. It's six minutes till the top of the hour.
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COSTELLO: Three minutes till the top of the hour. This is your A.M. WAKE-UP CALL. Now, back to our "Phrase of the day." Lagrangian point. What is that you ask? Well, it's a point in space where a small body will remain at rest because of the gravitational pull of two larger bodies. You got that? It's in the news because China satellite, it's parked in the grip of both the sun and the earth. It's stable because it's at a lagrangian point. Now, you know.
Here are three things to put on your radar today.
At 9:30 Eastern this morning, the panel charged with coming up with ways to reduce the nation's deficit will hold a rare public hearing. The Congressional Budget Office director is set to testify. The deadline to come up with a deficit reduction package just weeks away. At 10:00 a.m. Eastern, a hearing involving former senator John Edwards. Edwards is accused of using campaign contributions illegally to hide his extramarital affair during his presidential campaign.
And at eight o'clock Eastern tonight, in St. Louis, game six of the World Series. The Cardinals and Rangers face off with Texas holding a 3-2 advantage.
Now, let's got to the NASDAQ MarketSite to check in with Carter Evans. How are the numbers looking this morning?
CARTER EVANS, CNN BUSINESS CORRESPONDENT: Well, you know, so far, they're looking OK. They're looking a little bit better than they were yesterday. You see that sea of red behind me. We'll just ignore that for now. Coming up today, we've got reports on new home sales. We're going to get a reading on the mortgage index.
We're also going to get a reading on durable goods orders. For the most part, take a look at futures on the CNNMoney.com premarket page right now. Dow futures up 54 points. NASDAQ futures up about 16. S&P 500 up about six. All of this, of course, subject to change.
COSTELLO: Of course. OK. Let's talk about cars, shall we?
EVANS: Yes. So, "Consumer Reports" is out with its list of the most reliable cars. There's a big breakdown of them on CNNMoney.com. You can go through a slide show and see every one. But out of all 17 of those most reliable cars, only one of them comes from an American automaker. It's the Ford Fusion Hybrid with a base price of 28,600 miles.
It gets some pretty good mileage. But, you know, it's surprising because it seems like American cars have had a comeback, especially Ford. And I think a lot of people may be surprised to see that virtually none of them are on that list.
COSTELLO: I know. How disappointing. What's the number one car?
EVANS: The number one car, I can't remember off the top of my head.
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EVANS: But I do believe --
COSTELLO: You're killing me.
EVANS: I do believe -- I'm supposed to have a picture up there to remind me, but I do believe that it is a Honda. Thank you for asking, though.
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COSTELLO: All right, Carter.
"AMERICAN MORNING" continues right now.
