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Perry Blows a Kiss to Romney; U.S. Government Could Print More Cash; President Obama Visits Rural Towns; James Murdoch "Likely" Re- Questioned; Store Robbed by Flash Mob; Twenty Sickened at Water Park; Homeless Man Helps Save Crash Victim; TLC Won't Renew "Kate Plus 8"; Jackson Fans Mad Kiss is in Tribute; Hitfix: Fourth "Austin Powers" A Go; Sex Scandal Hits Cathay Pacific; Rebels Threaten to Isolate Tripoli
Aired August 16, 2011 - 09:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: OK. It's also top of the hour. And we are on the road to the White House. The President is in the Midwest promising jobs and fighting to keep his.
And here are some of the Republicans trying to wrestle it away. They're hitting key battleground states today. Mitt Romney is in New Hampshire, Michele Bachmann is in South Carolina and Rick Perry, he's in Iowa.
Now to that straight-shooting Texas who is dominating the headlines on just his second day of campaigning. Rick Perry raising his profile and also more than a few eyebrows. And one person who actually wound up in his crosshairs, Ben Bernanke, chairman of the Federal Reserve.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY (R-TEX), PRESIDENTIAL CANDIDATE: Printing more money to play politics at this particular time in America's history is almost treacherous -- treasonous, in my opinion.
(END VIDEO CLIP)
PERRY: Apparently he's blowing kisses, too, not to Shannon Travis but to his competitors. Shannon?
SHANNON TRAVIS, CNN POLITICAL PRODUCER: Hi, there, Kyra. Yes, I mean, Rick Perry, listen, it remains to be seen whether he is just -- you know, this is just his natural way, this Texas swagger, this bravado that he has or if Rick Perry is trying to make a splash because he has a lot of kind of campaigning to do.
Catching up to do to some of the other competitors because he just got into the race or if this was a serious misstep. I mean, you have a presidential candidate basically saying that we treat the chairman of the Federal Reserve pretty ugly down in Texas.
You can imagine some Democrats and liberal critics are saying, you know, what owe is he inciting violence, was he calling for violence against Ben Bernanke?
So this may have been a misstep or this may have been an intentional comment from Rick Perry to drum up some excitement and drum up some buzz about his campaign.
KYRA PHILLIPS, CNN ANCHOR: Drumming up buzz, drumming up excitement, there you were with the mic making your way through the crowd and you got this little gem.
(BEGIN VIDEO CLIP)
TRAVIS: Romney took a swipe at you today saying that he has private sector experience and that makes him better qualified to create jobs.
RICK PERRY (R), PRESIDENTIAL CANDIDATE: Give him my love.
TRAVIS: What do you think about that though, sir that he has --
PERRY: I think oranges and apples. Running a state is different than running a business.
TRAVIS: That he will make that a center piece of his campaign.
PERRY: What I would say is go take a look at his record when he was governor and look at my record when I'm governor. Then you've got apples to apples.
(END VIDEO CLIP)
PHILLIPS: Apples to apples, Shannon.
TRAVIS: Apples to apples, a little message there, Kyra, from Rick Perry to Mitt Romney, sealed with a little kiss. I mean, Mitte Romney yesterday for context basically said I'm the only one in the race who has private sector experience and government experience. It was a little bit of a dig at Rick Perry. So I wanted to ask Rick Perry about that, and that's what he responded with.
So Rick Perry is coming out pretty hard-charging against some of his critics. Also later talked about criticism from the Michele Bachmann campaign, saying you weren't in the Iowa straw poll, you weren't in Ames. He dismissed that also and said, look, I'm here.
PHILLIPS: Shannon Travis, great job. We will be talking more. Perry also made a comment about printing more money. Why don't we talk to Alison Kosik about that? She's at the New York Stock Exchange. Kind of a cartoonish image, but it's actually a real option, right?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It is a real option because what the fed, Kyra, calls it is quantitative easing. Actually the fed wrapped up a second round of it known as QE-2 here on Wall Street. Wrapped up this program in June where it pumped $600 billion of brand spanking newly printed money right into the economy.
One of the goals in doing this was to actually lower the unemployment rate. So the question is, did it work? Well, during that time, the jobless rate fell from 9.8 percent to 9.2 percent. So in that respect, you know, it was well received on Wall Street as well because what it also did is create a wealth effect.
We saw it in our 401(k)s, makes everybody feel wealthier. We want to go out and shop. The S&P 500 was up. Even the Dow jumped 10.9 percent during the six months QE2 was in effect. Despite what we've seen over the last couple of weeks, it's really held on to most of those gains.
But beyond lowering the unemployment rate, it is really questioning whether pouring money into the economy actually works because what it winds up doing is devaluing the dollar. More dollars out there, the less each is worth and that can lead to inflation.
The rate of inflation actually rose from 1.1 percent to 3.6 percent while QE-2 was in place. And the fed said that was on target partly because of other factors like the impact of the Japanese tsunami.
Now what Rick Perry and other opponents of QE-2 or QE-3 in this case, if that comes about, what they're worried about is whether or not this would even work. You know, he really bashes Bernanke because he questions whether or not putting more money into the economy would really grow the economy or just put a band-aid on problems.
So lots of questions. The fed hinted to the possibility of a QE-3, but definitely did not put its money on it yet. Kyra --
PHILLIPS: All right, Alison, thanks.
Let's shift gears to the Obama bus tour, which is rolling through the Midwest right now. He's going to meet with farmers and small business owners in Iowa.
The White House bills the tour as an opportunity to talk about the economy and hear what's on rural America's mind. As the president continues his tour, he sits down with Wolf Blitzer, the Obama interview with our Wolf Blitzer today, 5:00 p.m. Eastern Time.
British lawmakers say it's likely that James Murdoch will be called again to testify before parliament. Lawmakers are trying to determine if the younger Murdoch mislead them last month about phone hacking at the now closed "News of the World." Zain Verjee, what do we know?
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: What MPs are saying is that he is likely to be recalled maybe sometime around October to face more questions from a parliamentary committee looking into the phone hacking scandal at "News of the World."
At the heart of this is who knew what and when about the phone hacking and were they aware? Was James Murdoch aware of the extent of what was going on? They want to ask him more questions. One MP says this it, his evidence has been contradicted by evidence, which we have had from others.
So it could continue to escalate here at the heart this also, they're talking about e-mails where James Murdoch has said in one instance that he wasn't aware this was going on, but there are others that are proving there is other documentation and e-mails that contradict what he says.
And a whole bunch of other things. So that will come to light if he shows up again in October.
PHILLIPS: OK, so, if indeed, he has misled folks, what happens, Zain?
VERJEE: Well, in this country, it's considered a pretty serious thing to do that in parliament. Parliament would hold him in contempt. But the fact of the matter is, it's not like he'll get thrown into jail.
There's no incarceration for something like that. In this country, when you're talking to a parliamentary committee, you would be publicly shamed, some MPs are pushing for something a lot tougher than that. As of right now, that's how it stands, slap on the wrist, publicly shamed, contempt.
PHILLIPS: All right, Zain Verjee from London. Zain, thanks.
More than a dozen teens get together to rob a 7-11 all at the same time. It's actually being called a flash mob robbery. The search for these suspects has moved to the worldwide web.
Plus, we're mixing things up with this week's 30-second pitches. Our focus? Our vets. Don served and was wounded in Iraq. We're going to see if we can't get her some business and some work, coming up next.
(COMMERCIAL BREAK)
PHILLIPS: Let's check the news cross country now. Cops are calling it a flash mob robbery. A crowd of about 30 people rushed this 7-11 store, grabbing stuff off the shelves, in and out in about a minute. If you can identify anyone in this video, Maryland police are asking you to please call them.
Not a fun afternoon at the water park in Sacramento. Twenty people have been taken to the hospital after a chlorine leak. Witnesses say that the wave pool turned green and started bubbling. Authorities suspect some kind of mechanical problem with the chlorine system.
And a homeless man is being called a hero today after helping save an injured driver's life.
(BEGIN VIDEO CLIP)
TOM MACDNALD, RESCUED CRASH VICTIM: Heard this smash, seen a cloud of dust, went down there and cut the woman out of there and pulled her out of the car. (END VIDEO CLIP)
PHILLIPS: That homeless man waited with the injured driver until EMTS got there. And last we heard she was in serious, but stable condition.
All right, back now to this flash mob robbery, at least what it's being called. All of these individuals that the Montgomery County Sheriff's Department is now looking for, well, they've posted it online, the surveillance video, to actually try and help find them.
Captain Paul Starks is joining us on the phone from Montgomery County Police Department. Captain Starks, you know, they move quickly, it's obviously organized.
How many people do you think were involved, and was this something that was put together on the internet? Have you been able to figure that out yet?
CAPTAIN PAUL STARKS, MONTGOMERY COUNTY POLICE (via telephone): Well, I just spoke with one of the detectives involved in the investigation about an hour ago. He tells me that he and his partner have confirmed 28 different individuals involved on the video itself. They're just beginning their investigation, and we can't confirm how this was organized, although it appears that it was.
PHILLIPS: Now, have you had a problem with this, or is this the first time this has happened?
STARKS: This is the first time this has happened in our jurisdiction. We're taking it very seriously and we're getting a lot of help from the community as well.
PHILLIPS: Now, here's something interesting too. You said this is not a bad neighborhood. You actually pointed out it it's actually a low-crime area?
STARKS: Well, what I was explaining to your production assistant earlier is that quality of life here in Montgomery County is very good, and evidence of that it is, like I said, we're getting a lot of response from sources in a community who have seen this video who are concerned and are calling police with tips relating to the identities of the individuals involved in this crime.
PHILLIPS: So I'm curious, Captain, because when we saw this video, it had us wondering, wow, could we start seeing this across the country? You know, we've seen the whole flash mob, the dances and the fun that people have with it.
But this makes you angry when you see something like this. It's just downright wrong, and the fact they have organized this, you wonder if it's going to happen again, if it's going to happen in other areas.
Have you been able to confirm that with any other police departments? Is this a concern this may sort of become a phenomenon? STARKS: I think that is a concern, at least for Montgomery County police, and that is why we're taking this very seriously. If you look at the tape, some of the suspects are laughing and smiling. I can assure you we're taking this crime very seriously.
PHILLIPS: Well, what could happen to these folks if indeed you find them? Because I understand you've been able to see faces up close, possibly even getting some names, locations of these individuals?
STARKS: That's correct. We're working to confirm some of those leads, and starting yesterday the first business day since this occurred, we've been coordinating with our state's attorney's office and discussing what charges will be appropriate when it's time to place charges.
PHILLIPS: Wow. It's an absolute shame that this has happened. But we're going to do everything we can to help you out as well, Montgomery County Sheriff's Department Captain Paul Starks.
If anyone knows any of these individuals involved with this, please call the Montgomery County Police Department. Captain Paul Starks, thanks for your time.
STARKS: Thanks for airing this story.
PHILLIPS: You bet.
All right, we've got a regular feature called "30 Second Pitch" where we try to help folks who need jobs find them. This week we're giving it a little bit of a different twist in trying to give back to our military vets.
We're spotlighting veteran-owned small businesses that are looking for work. Captain Dawn Halfaker was a platoon leader in Iraq going on patrols and training Iraqi police.
One day she was shot at, she got hit by a grenade as well, and she lost an arm. Today, Dawn Halfaker is the head of Halfaker and Associates and her company actually provides a paycheck for a lot of fellow vets.
Dawn, great to see you. Thanks for being with us.
DAWN HALFAKER, PRESIDENT AND CEO, HALFAKER AND ASSOCIATES: Thanks for having me.
PHILLIPS: Well, let's hope folks are going to learn more about your business right now and reach out to you to employ you. What exactly does your business do? Can you give us an example of what your employees can offer?
HALFAKER: Sure. Well, we provide consulting services, and technology solutions, mainly in the areas of software development. We do Rapid software development, we do software integration, we do social media strategy and consulting. We do a lot of strategic communication so we can essential help -- most of our work is done within the federal government. So we look to help government agencies communicate more effectively and be able to leverage new technology to operate more efficiently and be more transparent.
PHILLIPS: Before we let you get to the 30-second pitch, what has this done for you and fellow vets, being able to start this business and get out there in civilian life?
HALFAKER: Well, really for me, starting my company was about being able to regain my life and my sense of purpose and really have a vision of being able to continue my service.
So that's what it was about for me, and being able to hire other fellow veterans is a huge advantage that we bring to our clients but also personally for me it's -- there's a lot of satisfaction knowing that we're giving jobs to vets.
PHILLIPS: No doubt. All right, Dawn, here we go. Start the clock. You've got 30 seconds. Look into the camera and tell folks why they should hire you and your employees. Go for it.
HALFAKER: All right. Well, Halfeker and Associates provides consulting services and technology solutions. We bring the best and most cutting edge technology to bring innovation to our clients. We're able to create software solutions very quickly.
We've created solutions within a mater two months, you know, whether it's a portal for a social media portal that we can create for stakeholders and communities, that's what we can provide.
PHILLIPS: And many, many more. We could keep going on for many more seconds. Dawn Halfaker, President and CEO of Halfaker and Associaates. Thank you so much for your time today. Please keep us updated. Let us know if you get any response, all right?
HALFAKER: We sure will. Thank you so of much.
PHILLPS: You bet, Dawn. Again, we'll be focusing on vet-owned businesses all this week. If you'd like to do a 30-second pitch, just e-mail us at 30secondpitch@cnn.com. We'd love to help you out.
"Kate Plus 8" gets dropped from TLC's fall television schedule, but the network isn't done with (INAUDIBLE) yet. Your showbiz update is next.
And a sex scandal has forced Cathay Pacific Airlines to rethink a new ad campaign. I'll tell why things got a little too close for comfort right after the break.
(COMMERCIAL BREAK)
PHILLIPS: TLC will soon be minus "Kate Plus 8." Jackson fans give Kiss a thumb's down. And are you ready for a fourth Austin Powers? "Showbiz Tonight" host A.J. Hammer has all the details. I guess first to the reality show mom. Was this a surprise, A.J.?
A.J. HAMMER, HOST, "SHOWBIZ TONIGHT": Not to me. I wasn't shocked at all, but it certainly did catch a number of people off guard, Kyra, including perhaps Kate Gosselin herself. In fact, she was just on the "Today" show last week and she said she hadn't heard of any plans to cancel her show.
But if you looked at ratings, you had to be realistic. Something like this was bound to happen, just a couple of years ago, "Jon & Kate Plus 8" pulled in around 10 million viewers every week.
And that was back when Jon and Kate were basically going through a divorce in front of the cameras. Now "Kate Plus 8," only averages around a million viewers an episode. Kate has been responding to the news on Twitter saying that while she and the kids are sad over the news, she is still trying to be positive about moving on with all this.
While she does plan to work on some other things, including perhaps dating, she implied she also said she may wind up back on TV that's where she would like to be.
Because, Kyra, she says it's the best job ever. TLC for their part is saying they're holding open the possibility of perhaps a special or two down the road so we may still see what's going on with Kate and the kids.
PHILLIPS: OK, well, the Jackson family was here yesterday promoting the tribute show for Michael Jackson. Why are some of the fans are upset about Kiss performing?
HAMMER: This is just wild to me, Kyra. That angry Jackson fan reaction came immediately after the announcement right here on CNN by Michael's mom, Katherine Jackson saying Michael would be excited about Kiss performing at this concert.
Now, fans are upset, naturally, because just after Michael Jackson died, Kiss star Gene Simmons said he thought there was something to the pedophile allegations that followed Jackson throughout the years.
He said he respected Jackson's talents, but the rest in his mind was tainted. Now, some fan groups are saying there should be a boycott of the show. Others are asking how the concert promoters didn't see this coming. The executors of Michael's estate have weighed in.
They're not behind this tribute concert and they sent the organizers a letter, which has been obtained by CNN. They called the decision to include Kiss, understandably, disappointing and the resulting media coverage extraordinarily embarrassing are the words they used.
We haven't gotten a reaction from two of Michael's brothers Jermaine and Randy who were already against the concert. The Kiss controversy is really overshadowed the other news about the show. Really, Kyra, an example of the kind of dysfunction that seems to follow the Jackson family around, I can't believe this was allowed to happen. This is pretty serious.
PHILLIPS: I guess another Austin Powers film coming our way?
HAMMER: Yes, baby! There could be. There were a lot of -- there are reports that the fourth Austin Powers film was in production. Now it seems like a deal for the film is in the close, but not closed category.
Mike Myers, of course, writes the film. He stars in the films. One of his reps told the wrap they were in talks with New Line Cinema about another sequel. The most recent Austin Powers film came out nine years ago, Kyra, 2002.
But when you consider the three previous films took in almost $700 million, doesn't seem like a big stretch to think, yes, there will be a fourth, baby.
PHILLIPS: Thank you so much, A.J. If you want information on everything breaking in the entertainment world, A.J.'s got it, every night on "Showbiz Tonight" 11:00 P.M on HLN.
A sex scandal is causing turbulence at Cathay Pacific Airlines. The Hongkong-based carries is postponing an new global ad campaign after sexually explicit photos involving employees went public. Zain Verjee is joining us from London. Talk about bad timing, Zain.
VERJEE: I know. The timing was terrible for Cathay Pacific's ad campaign. Pictures of a romper all over the internet and have circulated widely around the world of what's believed to be a pilot and a flight attendant having oral sex inside the cockpit of the plane.
The spokesperson for Cathay Pacific says they have both been dismissed. It's unclear whether they resigned or whether they were fired. The CEO said essentially this was totally unacceptable, but the timing is so bad, Kyra, because of this ad campaign.
And listen to what the slogan for the campaign was -- meet the team who goes the extra mile to make you feel special. It was under a wide slogan of people and service, and they said, look, the timing is not too good to roll out this campaign.
And they also had billboards and magazine rollouts and p newspaper rollouts. They've stopped this. This has been quite the scandal and it's damaged Cathay Pacific's five-star reputation in Asia. Kyra, I know what you want to say. Don't say it.
PHILLIPS: I'm playing this one straight. What happened to the employees?
VERJEE: They no longer work for the company. They were either fired or resigned, forced to resign. But they also refused to reveal the identities of who they were for legal reasons, but they no longer work with Cathay Pacific.
PHILLIPS: Understood. Zain Verjee in London. Zain, thanks.
Governor Rick Perry, he thinks that if the fed chairman prints more money that could be treasonous. Next, we're going to see what the political buzz panel thinks about that characterization.
That's welcome news in a down economy. How to shave years off your existing mortgage? More homeowners seizing the opportunity. We're going to show you why you may want to consider it.
(COMMERCIAL BREAK)
PHILLIPS: Checking the top stories now. The war in Libya reportedly could be reaching a turning point. Rebel forces have captured key towns north and south of Tripoli and set to isolate the capital. Moammar Gadhafi's regime says it's not true.
Investors are watching a key meeting today in Paris between the leaders of France and Germany, France's Nicholas Sarkozy and Germany Angela Merkel trying to come up with a plan to contain the European debt crisis.
And President Obama's Midwest bus tour rolls on. Today, he meets with farmers and small businesses in Iowa. The White House bills the tour as an opportunity to talk about the economy and hear what's on rural America's mind.
OK, "Political Buzz," your rapid fire look at the hottest political topics of the day, three questions, 30 seconds on the clock.
Playing today, Democratic National Committee member Robert Zimmerman, media commentator Sam and CNN contributor, Will Cain. First question, Rick Perry says if Bernanke prints more money before the election, it's almost treasonous. Take a listen.
(BEGIN VIDEO CLIP)
PERRY: Printing more money to play politics at this particular time in American history is almost treacherous -- treasonous, in my opinion.
(END VIDEO CLIP)
PHILLIPS: OK, guys, this is kind of rhetoric, presidential, Robert?
ROBERT ZIMMERMAN, DEMOCRATIC NATIONAL COMMITTEE MEMBER: You know, Kyra, that same interview he went on to say if Ben Bernanke went to Texas, they would treat him pretty ugly there. And also he went on in that same interview to also challenge whether President Obama loves our country.
So he doesn't qualify to show presidential stature, even to be a local high school president. But far more important than his punk behavior is the ignorance of the constitution when he said to "Newsweek" and the "Daily Beast" he didn't think Social Security and Medicare were constitutional. When it's all said and done, he'll just be another caricature for "Saturday Night Live."
PHILLIPS: Will.
WILL CAIN, CNN CONTRIBUTOR: Look, set aside Rick Perry's rhetoric for a minute. His principles are in the right place. If the Fed prints money. It can -- operative word -- can lead to inflation, which is a huge wealth transfer from savors to debtors. The problem is Rick Perry's principle hasn't allowed for any intelligent nuance. If you believe in a Fed and you believe we should have a Fiat (ph) currency, you know there are monetary contractions and you have to print money.
So, I would hope he has smarter advisers than him in that respect. Should he -
(BUZZER SOUNDS)
CAIN: -- be putting out rhetoric like that, though? No.
PHILLIPS: Sam?
SAM SEDER, MEDIA COMMENTATOR: Yes, I agree with Will to a certain extent. I mean, the rhetoric is sort of stunning. I mean, treason is punishable by death in this country.
But aside from the rhetoric, the underlying point he's trying to make is almost equally as insane. I mean, the idea that we can't use monetary policy as a way of dealing with the greatest financial crisis we've had in 70 years is stunning. And the fact that you had people around him who were actually applauding just shows how far out of the mainstream Republican ideology -
(BUZZER SOUNDS)
SEDER: -- about the economy has gone.
PHILLIPS: All right. Question number two, Ron Paul doing very well in Iowa but complaining that we here in the media aren't giving him enough attention. Take a listen.
(BEGIN VIDEO CLIP)
REP. RON PAUL (R-TX), PRESIDENTIAL CANDIDATE: My supporters are convinced, they're afraid of me, they don't want me views out there, they're too dangerous. We want freedom, and we're challenging the status quo. We want to end the war, we want a gold standard. And they're views that the people just can't handle.
(END VIDEO CLIP)
PHILLIPS: So, does Paul have a point, Will?
CAIN: Speaking of the Fed and monetary policy, Ron Paul, huh? Yes, he does have a point, Kyra. The media is pretending like Ron Paul doesn't exist. Now, I'll tell you who is not pretending that, the Republican party. He has moved the ideological spectrum of the Republican party more toward the libertarian bend, more toward a focus on constitutionalism.
You know, the justification in the media for not giving him attention is he just can't win the presidency, he doesn't have a chance. That's a little bit of a self-fulfilling prophecy, don't you think?
PHILLIPS: Robert?
ZIMMERMAN: You know, Kyra, I often think it's a cop-out when candidates try to blame the media for their failure to gain any traction.
But when you think about it, for this moment, Ron Paul certainly is no less crazy than Donald Trump or Michele Bachmann with his positions, and they certainly are getting a lot of options and airtime. So, I can appreciate his frustration, but he should also understand being quotable is not the same as being credible. He is not going to be president, nor will those other characters.
PHILLIPS: Sam?
SEDER: Well, you know, I think Ron Paul has a legitimate beef. Tim Pawlenty got a lot of media attention, and he couldn't even make it past the first vote, frankly. So yes, Ron Paul has been ignored, but he's also has been ignored by the Republican establishment for so long that the media is simply following suit. They wouldn't even let him into debates last time. The Republican party is shunning Ron Paul as much as the media is.
PHILLIPS: All right, gentlemen. Your "Buzzer Beater." Twenty seconds each. Later today, our Wolf Blitzer will sit down with President Obama. What do you think his first question should be? Will?
CAIN: What's the goal in Libya? When does the kinetic military action in Libya end? It's already exceeded its 90-day War Power limitations. I see very little constitutional justification for what we're doing there. So, why don't we just find out, how does this end?
PHILLIPS: Robert?
ZIMMERMAN: Look, I'm a little humbled trying to propose a question for Wolf Blitzer. No one is better at interviewing presidents.
But I would ask him, in this highly charged, polarized atmosphere in Washington, how does he produce a jobs program for the American people?
PHILLIPS: Sam? SEDER: Yes, I want to know after all the Republican candidates for president have said they would not support a revenue-to-tax - I mean, to cuts bill of even one to 10, would President Obama veto a bill that didn't have any revenues whatsoever?
PHILLIPS: And just to reiterate, 5:00 Eastern time, Wolf Blitzer going to sit down with the president. We'll see if he uses any of your questions, gentlemen. Thanks so much.
CAIN: Thanks, Kyra.
PHILLIPS: All right.
It can save you tens or even hundreds of thousands of dollars in interest payments. We're talking about paying off your mortgage in record time. Good idea? Bad idea?
I don't know. Alison Kosik is at the New York Stock Exchange. This is what more people are doing, right? Moving to 15-year fixed, in some cases even less. Is that a good idea?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes, you know what? It's pretty bold if you ask me. There are new numbers out from Freddie Mac showing 37 percent of borrowers who chose to refinance their mortgages, dramatically shorten their loans.
So, this is what they're doing. They're thinking, you know what? I'm going to go ahead and refinance and take out a 15-year mortgage instead of the more traditional 30-year. Why would I want to do this? Well, check out these interest rates. Last quarter, borrowers paid an average of 4.65 percent on a 30-year fixed. For a 15-year, the rate was significantly lower at 3.84 percent. Kyra?
PHILLIPS: All right. Alison Kosik at the New York Stock Exchange.
Coming up, Americans suspected in the disappearance of his friend will be cooling his heels in an Aruba jail cell just a little while longer. The latest on that case, live from the island.
And watching too much TV could be taking years off your life, but just a few minutes of exercise could do just the opposite. We'll have details in today's "Daily Dose."
(COMMERCIAL BREAK)
PHILLIPS: All right. Presidential hopeful Rick Perry is about to step up to the mike and speak there in Cedar Rapids, Iowa. As soon as he does, we'll take it live.
Let's go ahead and check the news "Cross-Country" right now. Autopsy results on mega-church pastor Zachary Tims are inconclusive. His body was found Friday on the floor of a New York City hotel room Tims founded New Destiny Christian Center in Florida in 1996 after personal struggles that included attempted murder charges and drug addiction. A chaotic evening commute in the Bay Area. Transit police shut down all four BART stations in downtown San Francisco. It was in response to protests against BART officials for cutting underground cell phone service during police brutality protests last week.
And it's not your average police chase. Check it out. Fort Worth, Texas, cops following a stolen forklift. According to witnesses, the driver was veering across traffic, drinking beer and throwing his empties out at passing cars. Oh, and his dog was riding shotgun. Officers caught the guy after he jumped and tried to run.
Gary Giordano's lawyers still says there's no evidence against him. But an Aruban judge disagrees. The American arrested in connection with his friend's disappearance is being held over on the island.
Martin Savidge joining us live now. So, Martin, did the ruling come as a surprise?
MARTIN SAVIDGE, CNN CORRESPONDENT: Well, I think it did in the sense that it was beyond the eight day that's originally had been requested. It's 16 days the judge now says that the man will remain detained on the island of Aruba while investigators continue to determine what happened to had his traveling companion.
And that's 35-year-old Robyn Gardner. According to Gary Giordano, they were snorkeling down at the southern part of island at a place called Baby Beach when he came out of the water and she did not. And she has not been seen since.
And there is concern enough on the part of authorities from his story to believe that this is not just a tragic accident, and they want to be forward-leaning in their investigation.
We've also just learned that the FBI has now arrived on the island. We know that the FBI had been assisting Aruban authorities by conducting searches in the United States and doing some interviews, but this is the first we've heard an FBI agent is now on the island. Why they are here -- why he's here -- we're not sure. It could be to deliver information as a result of those searches or there could be more to it.
We also understand that new searches are being planned for Robyn Gardner on the southern part of the island in the next day or so. So, things are actually moving on in this the investigation, and it appears more and more the authorities are doubting Gary Giordano's account as to what happened.
PHILLIPS: All right. Martin Savidge, live in Aruba. Martin, thanks.
Want to take you live now to Cedar Rapids, Iowa. Presidential hopeful Rick Perry up at the mike now. He's actually touring DC Taylor Company. It's a commercial roofing company. Let's listen in.
(BEGIN LIVE COVERAGE) GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: I love being around working men and women. You all truly are the heart and soul of this country when it comes to going to work every day and feeding your families, taking care of them. And the pride that comes along with being able to have a good job and take care of your family, I think, is right at the epicenter of what maybes America great.
As you know, I launched my campaign for the presidency just three days ago, and I couldn't have done it without the love and support of some just, in my opinion, really incredible people. That's obviously my beautiful wife, Anita, who we've been married -- I think, we'll be celebrating 30 years this November?
(APPLAUSE)
(END LIVE COVERAGE)
PHILLIPS: All right. We're going to try and get a better connection there with the audio, but we are going to monitor it for you. Rick Perry, once again, two days into campaigning. Now speaking in Cedar rapids, Iowa, at a warehouse there, the DC Taylor Company. It's a commercial and industrial roofing company. Starting right off talking about good jobs. So, you can probably see where that conversation is going to do. We'll monitor it for you and try to get better audio.
All right. The La-Z-Boy, the couch, I know. They're all really comfortable. But just sitting there in front of the television could be more than bad for your health. It could eventually kill you. We'll explain right after the break.
(COMMERCIAL BREAK)
PHILLIPS: OK. Well, too much TV may be bad for your health. In fact, by watching six hours a day, you can lower your life expectancy by five years, that's according to a new study.
And CNN's senior medical correspondent Elizabeth Cohen is here to show us how to get off the couch and get motivated.
OK. Tell us.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right. When you heard this, you think, oh, was it something about the TV, right? Like it's something about watching that much TV.
It's not the TV per se, is that you're sedentary. I mean, six hours a day is a long time. Or to put it another way, here's another number, which makes you go -- oh, my goodness, for every hour of TV that you watch after the age of 25, so an hour of TV, shortens your life by 22 minutes. So what's going on here is just when you're sitting and watching TV for an hour, you're not getting up and exercising.
PHILLIPS: Oh, my gosh, I'm thinking how many hours we were sitting when we were pregnant.
(CROSSTALK)
PHILLIPS: That's a whole different story. I'm counting the hours here.
All right. So, if you really are that much of a couch potato, though, I mean, how do you even start exercising? What's a good beginning when you're not used to it?
COHEN: You know, just think to yourself, how can I do, like, five minutes more than what I do now? So, if you do absolutely nothing, take a five-minute walk every day, it's better than what you're doing right now. And work your way up.
You don't have to go run a triathlon. Just go walk to the end of the block and back. I mean, at least that's something. Then work your way up to doing bigger blocks of time.
But any tiny bit of exercise is better than not doing any exercise.
PHILLIPS: So, what should be the goal, then? How much every day?
COHEN: Well, you know, it's interesting. There is an actual study that's coming out that shows that fit people who exercised 15 minutes a day actually did live several years longer than other people. So, 15 minutes of exercise added three years of life.
PHILLIPS: Wow.
COHEN: And that's really not much. I mean, you think about that, that's -- you know, for people who live in cities, that's like walking to the subway, right?
PHILLIPS: That's easy.
COHEN: Right. We're not talking about the gym. We're talking about these little, simple things. And I think it's really unfortunate in some ways that in our society you think, oh, you have to go to the gym, or you have to run. You don't have to do any of those things.
PHILLIPS: Just move.
COHEN: Just move. Just do something. Even a short period of time.
PHILLIPS: Thanks, Elizabeth.
COHEN: Thanks.
PHILLIPS: NFL players and fans are mourning the passing of Rick Rypien. The 27-year-old forward was found dead at his Alberta home. Police say the cause of death was not suspicious. He was one of the fan favorite during his six seasons with the Vancouver Canucks. He signed a deal with Winnipeg just last month.
And more sports.
Marcus Ambrose won the Sprint Cup race at Watkins Glen. But everybody is talking about the crash on the last lap. Boris Said not David Regan's car triggering a crash that's actually wiped out two cars, including Regan.
After the race, Greg Biffle, Regan's teammate took a swing at Said while Said was still actually in his car. Biffle's crew surrounded him and pushed Said back. Said called Biffle out.
(BEGIN VIDEO CLIP)
BORIS SAID, NASCAR DRIVER: He comes over and throws a few little baby punches. Then when I get out, he runs away and hides behind some big guys. But he won't hide away from long. I'll find him. I won't settle it out in the tracks. It's not right to wreck cars. But he'll show up at a race with a black eye one of these days. I'd see him somewhere.
(END VIDEO CLIP)
PHILLIPS: Said said.
All right. Directed by Shaq? You could actually see that credit rolling on the big screen sometime in the future. The former NBA star is studying at a film school in Hollywood. It might be a better choice than acting. Remember "Kazaam"?
All right. Checking stories making news later today.
A Latino group is sponsoring protests against Obama's immigration policies around the country today. The first is in Atlanta, at 11:00 Eastern.
And President Obama speaks at the opening of a rural economic forum in Iowa at 12:50 Eastern Time.
And at 1:00 eastern, attorneys for a man convicted in the deaths of three people in a sweat lodge argue for a new trial in Arizona.
Tax the rich. You've heard that before, but probably not from somebody as rich as Warren Buffet. Why the millionaire investor thinks the tax structure is not fair, next.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: If you're looking for a job, you should move here. What town cuts the mustard in more ways than one? We'll tell you, after the break.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
PHILLIPS: Living in a large city isn't for everyone. "Money" magazine is out with its list of the best places to live that are a little smaller. Here's a look.
(BEGIN VIDEOTAPE)
REPORTER (voice-over): What town cuts the mustard in more ways than one? Try Middleton, Wisconsin, home to the National Mustard Museum, where you can see and taste thousands of mustards.
Another plus to living here? Seventeen thousand people have jobs in town, and that's impressive since the population is 17,400.
UNIDENTIFIED FEMALE: The most unique part about Middleton is the camaraderie of the community, how people really help each other. They don't have to know each can other. They just feel like we're all one big family.
REPORTER: Middleton, Wisconsin, is number 8 on "Money" magazine's list on the best places to live.
(END VIDEOTAPE)
PHILLIPS: Warren Buffett's op-ed is calling for a hike in taxes for the super rich is still trending pretty high. But how much more could the government make off the wealthy?
CNN's Mary Snow takes a look.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): It didn't take long for President Obama to start quoting Warren Buffett's call to tax the rich.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Warren Buffett had -- had an op-ed that he wrote today, where he said we've got to stop coddling billionaires like me.
(CHEERING AND APPLAUSE)
OBAMA: That's what Warren Buffett said.
SNOW: Just as quickly as the president embraced Buffett's call, critics like conservative Pat Buchanan dismissed it.
PAT BUCHANAN, MSNBC POLITICAL ANALYST: Why doesn't he set an example and send a check for $5 billion to the federal government? He's got about $40 billion.
SNOW: In his "Stop Coddling the Super-Rich" op-ed, the billionaire investor says while he paid nearly $7 million in taxes last year, the percentage of his taxable income was less than the people in his office.
That's because the super rich get tax breaks on capital gains and pay little in payroll taxes.
So who are the wealthy?
To hear President Obama tell it, they make $200,000 a year or more. That would make up 3 percent of Americans or 4 million people. Go up the pay scale, and according to the IRS, those making $1 million or more equal about 237,000 people. In the $10 million or more club, there are roughly 8,000 people.
Buffet wants higher taxes on those making $1 million or more.
We asked Roberton Williams of the non-partisan Tax Policy Center for a scenario of what a tax hike like that would amount to.
ROBERTON WILLIAMS, TAX POLICY CENTER: The example we took a look at was raising the top tax rate on incomes over $1 million from the current 35 percent to 50 percent. If we did that, we'd gain an additional about $34 billion in revenues this year, over a 10-year period perhaps $350 billion.
SNOW: But what about the effects on the economy? Williams says, yes, the wealthy would spend less on goods and services and on investments, but --
WILLIAMS: The investment they are making these days are mostly in government bonds, not in real economic activity that generate jobs. So neither their change in spending nor their change in investment behavior would likely have a very serious adverse effect on the economy.
SNOW: And as for his debate over taxing the wealthy takes place, the Tax Policy Center points out the tax revenue makes up just under 15 percent of GDP. That's the lowest level it's been since the 1950s.
Mary Snow, CNN New York.
(END VIDEOTAPE)
PHILLIPS: Well, next hour in the CNN NEWSROOM, schools across the country are dealing with cheating scandals. CNN's Suzanne Malveaux will talk to the founder of the Ron Clark Academy about it.
(COMMERCIAL BREAK)
PHILLIPS: A report that just came out on the finances of White House candidate Michele Bachmann.
And our senior political editor Mark Preston is actually breaking down the numbers for us right now.
What you got, Mark?
MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Hey, Kyra.
You know, now that Michele Bachmann is in the top tier of candidates, we're starting to look a little closer at her, including how much she's worth. Well, a new financial disclosure report that was filed at the House of Representatives late last week shows that she could be worth up to $2.8 million.
But, you know, Michele Bachmann also seems to carry some loans and mortgages that are worth around $750,000.
Now, to put this in perspective, Mitt Romney put out his personal financial disclosure report last week, he's worth up to $250 million.
So, a little black and white numbers there.
You know, one person who is falling off the radar and we won't be paying that much attention to now is Tim Pawlenty, the former Minnesota governor, who p dropped out of the race on Sunday. He put out an e-mail to his supporters yesterday, said that he is now taking his daughter to college. He's going to take some time to prayerfully consider what his next step is, though he did pledge in this e-mail he will remain within the presidential talk and, of course, what's going to happen to the future of the country.
And one person who looks like they're going to be trying to make some kind of comeback is Mark Sanford. You know, the former South Carolina governor who had this very embarrassing episode where he talked about how he had this fair with this woman, of course, we all remember the huge national story.
Well, he's kind of gone underground ever since that story broke. He's finished his term as governor. Now, he says he's going to come out and talk about issues important to him.
He said this on "PIERS MORGAN" last night in an interview with Piers, he's going to talk about how there needs to be some real effort to cut spending here in Washington. He also said some interesting things about his family. He said that he failed in terms of properly loving his wife and that he's learned a lot about grace -- Kyra.
PHILLIPS: Indeed, we can learn a lot about grace. Mark Preston, thanks so much.
That does it for us. We'll see you back here bright and early tomorrow morning.
Drew Griffin in for Suzanne Malveaux again today.
Hello, sir.
