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No New Jobs in August; Stocks Drop on Jobs Report; GOP Reaction to Jobs Numbers; White House Comments on Jobs Report; Romney: "There is Zero Faith" in Obama; Ref Attacked in Football Brawl; Cop Saves Three from Burning Car; 11-Ft Wave Hits San Diego Beaches; State of Emergency in Louisiana; New Orleans Could Get 10 Inches of Rain; Gadhafi Remains Defiant; Stocks Drop on Weak Jobs Report; U.S. Contractor Imprisoned in Cuba; CNN Poll: Obama Takes Hit on Economy
Aired September 02, 2011 - 09:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: We're at the top of the hour now. 10:00 on the East Coast, 7:00 out West. Wherever you may be, glad you're right here. I'm T.J. Holmes, in for Kyra Phillips today.
And we are 30 minutes into the trading day today. Thought it might be a rough one and is proving to be the point. We got new jobs report out this morning. And it's new evidence that the nation's economy is stalled and maybe this country is slipping back into, some will tell you, another recession.
But the people I'm going to bring in now are not going to use that word. Ali Velshi, Christine Romans, Brianna Keilar at the White House for us and also this morning for us keeping an eye on the markets, Karina Huber.
We'll check in with all of them, but folks, if you don't know the news this morning, the economy, the U.S. unemployment rate held steady at 9.1 percent for the month of August, but no jobs were created. Ali Velshi, let me start with you on that. We didn't lose jobs.
ALI VELSHI, CNN BUSINESS CORRESPONDENT: Right.
HOLMES: I guess that's the piece of good news we have in this.
VELSHI: Sure. Few years ago, we were losing an excess of 700,000 a month. Zero is not bad. I'll tell you what it is. You know, it's the combination of the number of jobs created minus the number of jobs lost and the number of jobs created in the private sector minus those lost in the public sector of government work.
So in fact, the private sector in America did create 17,000 jobs, but we continue to lose jobs in the public sector, government jobs. That's important to remember. When people talk about shrinking government, doesn't mean just selling buildings, it means firing government workers or laying them off.
So you're just not seeing. 17,000 new private sector jobs is simply not enough to grow our way out of this recession. In fact, net per month, we'd have to be in excess of 150,000, 200,000 to start putting a dent in our unemployment number, which stayed the same, our unemployment rate.
And have to be in excess of 250,000 or 300,000 a month to quickly get back down to 5 percent unemployment, which is where we were before this recession started at the end of 2007.
Now the White House already says that at this rate of growth, we are not going to get there until about 2017, which means from the beginning of the recession until the fact that - until when we get back to 5 percent unemployment could be 10 years in between.
That's the problem, T.J. The reality has got to set in that this is a slow, long, deep economic quagmire. That's my word instead of recession that we are in. We may have to adjust our realities to what that actually means and of course, that puts a lot on the president's plate ahead of his speech on Thursday.
HOLMES: And Christine, he talks about reality there. The reality is there is an issue of confidence. Ali was talking about it. It's not just numbers trying to figure out this plan. You know, you've got to have confidence that, one, these employers are going to be hiring.
You need to have confidence that from these -- from the American people that things are getting better so they can buy stuff. So, Christine, what does this set up for us for next Thursday now?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, it sets up everything because right now, I mean, you've already have the pencils sharpened on the statements, right, about what this means.
White House has released a statement saying this is unacceptably high and it puts the pressure on making sure that we have some policies, sustainable policies that will create jobs.
But what is going to instil confidence when the White House itself admits we won't get back, as Ali just mentioned, we won't get back to prerecession unemployment levels until 2017?
My baby in diapers is going to know how to walk, talk, ride a bike and read by the time we are back to precession levels for job creation. That doesn't inspire confidence at all when we know we have a long way to go and a lot of work to do.
There are health care jobs in here. I want to be clear about that. The unemployment rate is still 9.1 percent. It didn't get worse. You had hundreds of thousands of people who got part time work. That seems to be the way things are going.
In fact, a lot of recruiters and hiring managers tell me a lot of the permanent employment is starting as part-time work and then becoming permanent employment because no one is confident. They try you out first and then maybe you get the permanent job.
But it is still a difficult situation. It's hard to see an American economy growing and confidence returning if you don't have jobs. You don't get jobs until you have confidence in an economy growing. So we are in a vicious circle here.
HOLMES: All right, Karina, let me bring you in. You're over the stock exchange for us now. We are looking at the Dow here 208 points down. But what else are you seeing? The NASDAQ, the S&P, as well. Are they all kind of mirroring what we're seeing from the big board?
KARINA HUBER, CNN CORRESPONDENT: Yes, absolutely. I mean, the Dow right now and the S&P 500 are bearing the brunt of losses today, down by 1.8 percent. NASDAQ is doing a little bit better down by 1.6 percent.
But really, T.J., what we are seeing is a global reaction to this disappointing jobs report. Markets from Asia to the United States are selling off. You know, Wall Street did expect a weak report.
We saw a lot of downward revisions yesterday, but not this bad. I mean, most economists still expected a gain, but they got much worse. No jobs added. A big zero. Investors are showing their concern as to stories of another recession. European markets are down more than 3 percent today. T.J. --
HOLMES: All right, Ali, last thing for you here. What is it going to take? You said earlier it's not just somebody put out a plan or it's a matter of numbers. So what is supposed to happen to give that confidence?
VELSHI: All right, so there are two issues we have to think about. One is how do you put people back to work right now? That in this kind of economy can only happen in two ways.
Businesses hire people because they see an uptick in demand, which they're not really seeing or government steps in and does something like the stimulus, which we saw a couple of years ago.
You know, there is very little appetite for that right now. So that's the problem. The second problem is that we have a few million openings in this country, two maybe and we have 14 million, or 15 million people officially unemployed.
So even if everybody were trained for the right jobs, you would still be left with 12 million people unemployed in this country. But how do you actually at least get 2 million or 3 million employed properly?
As Christine said, we had growth in health care. We had growth in some areas. We need people trained into high-growth areas. So if you're sitting at home and you're like Christine. You're saying my kid will be riding a bike, walking and talking and writing by the time unemployment is back down.
Give some thought to what your kids are getting educated in or if you're in a profession or an industry that lost jobs like manufacturing or something like that, give some real thought to the fact that retraining may actually pay off.
If we are not getting our economy back to low unemployment for four or five years, you might as well invest that time in getting your skills up to par so you're more competitive.
HOLMES: Go ahead, Christine.
ROMANS: T.J., I want to make one quick point. The unemployment rate for people with a bachelor's degree is 4.3 percent. It's half of the national unemployment rate, 4.3 percent. Now granted there are people dropping out, that number is just so much lower than the other number.
You're hearing a lot of people anecdotally talking about, is a college degree worth it? I think Ali and I agree on this. You need to be investing in yourself right now with the right relevant skills and right strategic investments.
When we talk about college education costs too much and it does, but the difference in your pay with a college degree is 60 percent. You are paid 60 percent more if you have a college degree than if you don't.
If we are not creating a lot of jobs then you have to be careful about where you find yourself in this labor market.
HOLMES: All right, Ali, Christine, we appreciate you both. Christine, by the time your little ones get to the job market, we hope it will be a better job market. But we don't want to wait that long. It's 6 minutes past the hour now. We'll keep a close eye there. We'll talk to you again soon.
Let me turn to the White House now and bring in our Brianna Keilar. Brianna, we were talking about -- we are already getting Republican reaction. Are we getting Republican reaction to these numbers or getting Republicans criticizing the president for the numbers we got this morning?
BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: You know, they could be more -- they're always criticizing the president when there are these numbers. Of course, we heard from House Speaker John Boehner in a paper statement.
He essentially, T.J., and this is not surprising, points to President Obama's policies as really the source for private sector job growth not being certainly what he would like to see, certainly what everybody would like to see.
But what you really see Republicans doing, and they responded very quickly, is raising the stakes on the president's jobs plan that he will be unveiling next Thursday. This really does not only these poor jobs numbers out today.
But also that yesterday the downgrade of the White House, talking about their budget projections going into 2012 and sort of an estimate that unemployment will remain around 9 percent, which you heard Ali and Christine talking about.
Let me just tell you the statement that came out from the acting head of the President's Council on Economic Advisors. As Christine mentioned, she says that it's unacceptably high, the unemployment rate.
But you also have the White House, T.J., really trying to point to maybe putting some positive spin on this too. The economy added private sector jobs for 18 straight months. But certainly also acknowledging the reality that it's not where they want it to be.
They also say it's important not to read too much into any one monthly report. These are very difficult numbers. It really does tightly focus so much more attention on the president's jobs plan that he will be announcing next week. T.J. --
HOLMES: OK, that jobs plan, have they pretty much -- do they have that laid out or will they be working feverishly up until the last minute? Language has to be changed here and there. As far as the policies themselves, do we have indication they are settled on what they want to present?
KEILAR: They are still working on it. We know some of the things that will be in there. We've heard from administration officials who are out today trying to respond to these jobs numbers, that they are really pushing to some of the things we know the president is going to be talking about or proposing
Extending that payroll tax cut, not just for employees, but also adding it to employers, as well as infrastructure spending and help for the long-term unemployed. Those are the anchors of what the president will be proposing next week. There are some things likely that we aren't aware of, the white house playing it close to the vest on that.
HOLMES: Brianna Keilar at the White House. Thank you as always. Reminder to you, President Obama will present his jobs plan next Thursday evening before a joint session of Congress. You will be able to see that right here on CNN, 7:00 Eastern Time.
Also coming up, a conversation that will certainly have you having conversation this weekend, is marriage for white people? That is the question that one author is asking in his new and controversial book.
He asked about white people, but the book examines marriage in the African-American community. The book's author will join me this hour.
Also, could be a rough weekend. A huge rain maker is churning its way in the gulf. It's taking aim at the gulf coast and yes, New Orleans. We are tracking this storm. Stay with us.
(COMMERCIAL BREAK)
HOLMES: It's 13 minutes past the hour. We have been getting reaction and it has been swift this morning to the jobs report that came out that showed the U.S. stayed at 9.1 percent in its unemployment rate.
But also that no jobs were created in the country in the month of August, some of the Republican candidates for president already chiming in. We got this just moments ago from Governor Mitt Romney.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I watch Washington right now and it breaks my heart because the people there don't understand how America works. Obama is not working. He has disappointed the American people and this morning very bad news. Did you see the numbers that came out on job growth? Look, there is zero faith in Barack Obama because he's created zero jobs last month.
(END VIDEO CLIP)
HOLMES: Came out with that line pretty quickly. You'll probably here it again, but yes, no jobs created in the country for the month of August. This all comes as the president gets ready to deliver his speech to the joint session of Congress next week on jobs and the economy.
Let's move now to some other stories that are making news cross country. This is just a shame here. Look at this video. A fight, a brawl breaks out at a football game. Not just any football game, this is a youth league game in Sarasota, Florida.
You see a player just launch himself there full speed -- kind of got caught behind the market watch box. He's tackling the referee. Now the ref was kicked and punched on the ground, eventually able to get up and run-off the field.
The sheriff's office is looking into this and charges are expected. But again, this is a youth league. These kids aren't any more than 13, 14 years old.
Also in Des Moines, Iowa, dramatic dash cam video. Some police officers coming to the rescue here. This was the scene of a bad accident. This is about 3:00 in the morning. But one of them, you'll able to see forces his way onto that burning car and just starts pulling people out of that vehicle.
Several officers there around that vehicle. You don't ever know what's going to happen in a situation like that, but certainly putting themselves in harm's way to do their jobs. There was a fatality in the accident, but still these officers credited with saving three others.
Turn to San Diego now. The beaches there are seeing some of the biggest surf of the year this week. Impressive stuff, but the waves are so big this gives you an indication that even the local surfers won't even attempt these waves. They were generated by a storm, of all places, in Antarctica. Would you believe that? That was last week. Let's turn to the weather in this country now. A state of emergency being issued in Louisiana and you're seeing why. You see that mess down there in the gulf. A slow moving tropical system is inching towards the Gulf Coast.
It could dump as much as 20 inches of rain in some areas. Yes, that includes New Orleans. Oil rigs in the gulf have been cleared and days after the anniversary of Hurricane Katrina, yes, the city of New Orleans now bracing for what's coming.
(BEGIN VIDEO CLIP)
MAYOR MITCH LANDRIEU, NEW ORLEANS: What we do know is there is high wind, lots of rain and it's going slow. That is not a good prescription for the city of New Orleans.
(END VIDEO CLIP)
HOLMES: All right, let's turn to meteorologist Jennifer Delgado. How bad could it get? Could they get the brunt of it there in New Orleans?
JENNIFER DELGADO, AMS METEOROLOGIST: Yes, we're talking southern parts of Louisiana. They're going to be hit the hardest. They are going to look at the potential as you said about 20 inches of rainfall.
The same for areas including Mississippi, Alabama, they are going to be dealing with heavy rain, but here is the satellite imagery. You're probably wondering where the center of circulation is. It's there, but you can't see it right now.
We are starting to see more development out of the system, winds at 35 miles per hour moving to the north at one mile per hour. That's the problem there. It's going to be moving so slowly and pulling in all that moisture, that's going to lead to the flooding potential through the next several days.
To give you that idea of the track again, this is Sunday 2:00 a.m., it approaches the coastline of Louisiana. And then as I said, by Tuesday just exiting out of Louisiana as it does move this slowly, it's going to create a very heavy rainfall.
We are also talking about a storm surge roughly between two to four feet. As I minimize this for you, I want to look at the radar. The rain is already coming into parts of Louisiana and you can see for yourself some of those heavier rain bands and stronger rain bands working through.
This is just the start of a very, very couple wet days ahead. You have to keep in mind we are talking Tuesday not actually leaving out of the Louisiana area. It looks like it's going to become a tropical storm probably within the next hour and it would be Tropical Storm Lee.
T.J., back over to you. Just to give you an idea. Actually, September 10th is the physical peak for the Atlantic hurricane season. So keep in mind, just a couple of days away.
HOLMES: All right, Jennifer Delgado, thank you so much. It's 17 minutes past the hour now. An American contractor imprisoned in Cuba. His wife is at home worried now she may never see him alive again.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: He is so frail. Now, he's lost over 100 pounds.
(END VIDEO CLIP)
HOLMES: The imprisonment of one man not just affecting a family but international relations. His story ahead.
Also a defiant message believed to be from Moammar Gadhafi is urging Libyans to fight and not surrender.
(COMMERCIAL BREAK)
HOLMES: New developments out of Libya today. The Transitional Council isn't waiting for Moammar Gadhafi's capture or surrender. At a Paris meeting with international leaders, the council outlined a plan to establish a new constitution and elections within 18 months.
Also conflicting reports the council extended a Saturday deadline for Gadhafi loyalists to surrender or face an all-out assault in towns they still control. Despite that, Moammar Gadhafi is as defiant as ever, it seems.
A new message apparently from Gadhafi, the ousted Libyan leader vows never to surrender. Let's join now CNN's Arwa Damon. She is in Tripoli. Where in the world is this guy is the question everybody has, Arwa.
ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: It most certainly is the question everyone wants answered, T.J. There are all sorts of different theories as to where he could possibly be. We heard from the head of the Tripoli Military Council saying that he believes that Gadhafi is somewhere between two areas where that cease-fire offer has been extended.
Rebels preparing themselves for major offenses there, but saying they want to avoid even more bloodshed. We also spoke to his former foreign minister who handed himself over to the rebel leadership for protection, he said two, nights ago.
He believes that Gadhafi is continuing to give direct order to those units who are still fighting for him. He released not one, but two audio messages yesterday, saying that it was now the capital of his resistance, urging people to continue to fight saying he could not allow the rats to continue to control Tripoli and other parts of the country.
That being said, it does not necessarily seem as if there's been a renewed offensive on the part of those still willing to fight for him. T.J. --
HOLMES: All right, Arwa Damon for us in Tripoli. We appreciate the update. It's 22 minutes past the hour now. We've been talking about these jobs number this morning. Not pretty. So will this be a determining factor in President Obama's re-election bid.
Our political panel weighing in. Next, speaking of the jobs report, having an effect maybe on the markets today, 213 points down. The Dow is just 90 minutes -- excuse me, about 60 minutes into the trading day. Stay with me.
(COMMERCIAL BREAK)
HOLMES: We are getting close to the bottom of the hour. I'll give you a look some of the stories making headlines. A 6.8 magnitude earthquake struck of the coast of Alaska today prompting a brief tsunami warning. No immediate reports of damage or injuries though.
A tropical depression in the Gulf of Mexico could turn into Tropical Storm Lee today. Parts of the gulf coast could get up to two feet of rain over the next five days.
Also new cancer concerns for firefighters exposed to toxic dust and fumes after the twin towers collapsed. Firefighters who worked at ground zero were 19 percent more likely to develop cancer than firefighters who did not.
Let's get your "Political Buzz" going and your rapid fire today, a look at the best political topics of the day. We got three questions, 30 seconds on the clock. Who do we have playing today?
Democratic strategist, good friend of ours on CNN's "SATURDAY" and "SUNDAY MORNING," Maria Cardona, Pete Dominick, host of XM radio's "Stand-up with Pete Dominick," looking sharp as always and CNN contributor and talk radio host, Dana Loesch.
Guys, good to see you all. Let's start with the first question and the jobs numbers, they were out this morning. We know they were not good.
So the question is, is this the single most important number for President Obama going into his re-election? Maria, let's start with you.
MARIA CARDONA, DEMOCRATIC STRATEGIST: Well, certainly is critical, T.J. and the White House knows this. They mentioned it this morning. They've talked about this for a long time, which is they know we are not where we need to be.
That's why this president is going to be focused on an aggressive jobs plan. The issue here though, T.J., is that re- elections are always about choices. This month there was no positive job creation.
But you know what? At least we were not losing 800,000 jobs this month the way that we were when President Obama took office. So my hope is that Republicans will now join him when he talks about job creation.
Republicans have been in office and Congress and control of Congress more than eight months and have done nothing.
HOLMES: That buzzer not working in your ear piece.
CARDONA: I didn't hear it.
DANA LOESCH, RADIO TALK SHOW HOST: If ever Maria gives an answer where she doesn't try to twist it back to Republicans I will say that is a fake Maria.
HOLMES: Your clock starts now, Dana. Is this the most important number for the president?
LOESCH: Yes, it is. Plain and simple, presidents don't get re- elected with bad jobs numbers. Look what happened to the first bush. It didn't happen so good. Carter, the exact same thing.
There is no precedence for it. It is the single most important number. So that's why I think that the president's jobs speech that's coming up is going to be supremely important.
He cannot give the same speech that he's been giving the past six, seven times. He needs to unroll something new. He needs to unveil something new. So a lot of that is going to hinge on it.
We need the government to get out of these adventures in regulatory oppression. That will help.
HOLMES: Pete, go.
PETE DOMINICK, HOST, "STAND UP!" ON XM RADIO: Hi, handsome, T.J. Listen, the jobs number is important. The jobs number came out at 8:30, by 8:35 every single Republican presidential candidate had put out a statement hammering President Obama.
He will take his lumps today. If there is any way that he can show growth over the next year, he will probably win the election. But the most important number, of course, is the electoral votes.
If he gets 270, he wins. But politically this jobs number is not helping him at all. It's the most important issue in American's minds right now unless, of course, you have a job.
HOLMES: All right, Pete, this next question is for you. One of those presidential candidates we're talking about that put out statements at 8:35, Jon Huntsman.
He has now lost his New Hampshire state director in the shakeup there. Why? What happened? When he came out there was such flair. Looked like he might be a guy to challenge the president so why is this campaign, Pete? It never really has gotten off the ground.
DOMINICK: Well, I disagree. There wasn't really that much flare, T.J. He's never really had a lot of momentum. Why? Because he's actually sane, he believes in science. He believes in evolution.
We pay attention - the media is partly to blame. All of us, we pay attention to those that say outrageous things like Michele Bachmann and Rick Perry. They get a lot of attention. Notice who the front-runner is Mitt Romney. He's a little bit more calm. He believes in science and evolution.
But, you know, Jon Huntsman is a good guy, a smart guy. I would argue the smartest, most intelligence of all the candidates. The guy speaks fluid mandarin. That's why he's not getting a lot of attention and he's too intelligent.
HOLMES: And, Maria, he might have made a point there that wasn't much flare, but there was a lot of media attention. Maybe that was on our part there. But still, it seems he hasn't gotten off the ground. Why not?
CARDONA: Because he has committed the biggest cardinal sin you can commit for Republican candidate, T.J., that is that he actually works for a socialist, radical black, Muslim, Kenyan-born president. Haven't you heard? He was on the payroll of President Obama.
Absolutely something that is indefensible in GOP circles. He does believe in climate change. He does believe in evolution. Also, I think a nonstarter for the GOP primary process this year, for sure.
HOLMES: OK. And, Dana, before I bring you in, I should say that was sarcasm on behalf of Maria there, folks, if you didn't get it.
But, Dana, you tell
DANA LOESCH, RADIO HOST: Thank you for pointing that out, T.J.
HOLMES: Yes. But, Dana, you answer this for me.
LOESCH: I was getting worried, because that was a Hillary Clinton/Philip Berg thing, so we know that came from Democrats, that whole narrative.
(CROSSTALK)
DOMINICK: Ladies, ladies.
LOESCH: No, it was Philip Berg. Google it, Maria. It came from Hillary Clinton's camp.
CARDONA: GOP all the way. GOP all the way.
LOESCH: Maria, facts. Quit interrupting me for a second.
We'll get you back to bashing Republicans in a minute. No, I was going to say it's a very good thing that Huntsman speaks Mandarin, China owns so much of the United States debt we would have to have someone that would be able to speak fluid Mandarin and get along with the Chinese. Bottom line is Huntsman's campaign is a sham. And AGW is a hotly-disputed theory.
HOLMES: Sorry, Dana. I know you used a lot of your time on Maria there. But we got to cut you off.
LOESCH: I had to correct Maria.
HOLMES: Twenty seconds on the clock for this next one. For this last one, let's listen to Donald Trump here. He is apparently not impressed with Dick Cheney's new book. Take a look and listen.
(BEGIN VIDEO CLIP)
DONALD TRUMP, BUSINESSMAN: I didn't like Cheney when he was a vice president. I don't like him now, and I don't like people that rat out everybody like he's doing in the book. I'm sure it will be a bestseller, but isn't it a shame?
Here is a guy that did a rotten job as vice president. Nobody liked him. Tremendous divisiveness and he's going to make a lot of money in the book. I won't be reading it.
(END VIDEO CLIP)
HOLMES: All right. Dana, seems like he picked famous fights before. So, is this one, Donald Trump versus the former vice president? This one you can get behind?
LOESCH: This is one that I would like to get some popcorn and sit back and watch. This is going to be kind of interesting.
Cheney, I thought, was a good war time vice president. Did I agree with all his domestic policies? No. I absolutely didn't. I almost fell over when he said TARP worked.
But the bottom line is, I think, when someone comes out of an administration and starts writing tell-all like Wesley Clark and everything else, it used to be a good thing, remember? Everybody was high-fiving each other. Now, I don't know. I don't get it.
HOLMES: Pete?
DOMINICK: Yes. Dick Cheney and Donald Trump are two of the most terrible Americans of all time. I'll get behind Donald Trump's -- I'll get behind Donald Trump's campaign to go after Dick Cheney when he starts a campaign to investigate whether or not Dick Cheney actually has a birth certificate. There is some question whether or not Dick Cheney is actually a human being.
HOLMES: Oh, terrible Americans. I need to follow up on that. I'll have to do it later, though.
Maria, you wrap this thing up for us.
CARDONA: Yes. I am no fan of Donald Trump, T.J. But this is certainly a rant that just me and I bet you, the majority of Americans can get behind this. I think Dick Cheney has been the worst vice president. He needs to take a page from his boss.
I actually think President Bush has been very classy as he's been out of office. He has not said a thing. Even in his book, he doesn't talk about this or throw people under the bus. Cheney needs to get out of the way, out of the limelight. He is desperate to defend his legacy which is indefensible.
HOLMES: Dana, I know what you're going to say. I know what you're going to say, Dana.
(CROSSTALK)
HOLMES: Nice group hug for us all. Guys, y'all -- it's a pleasure to see y'all. Y'all enjoy your holiday weekend, all right?
CARDONA: Thanks, T.J. You too.
DOMINICK: Happy Labor Day!
HOLMES: All right. Thirty-four minutes past the hour now.
I want to turn back to the stock market right now. The New York Stock Exchange is where I want to go.
Karina Huber is keeping an eye on things for us there.
Tell us how it's looking look at this dismal job report from a little earlier.
KARINA HUBER, CNN CORRESPONDENT: Yes, T.J., it's looking pretty grim this morning. Not a lot of cheer on Wall Street. We saw the Dow sank more than 200 points in the first 10 minutes of trading. It's getting progressively worse. Dow is down 225 points.
Over at the NASDAQ, we got a loss of 1.8 percent and S&P is down by 2 percent. That's about the same as we are seeing the losses over at the Dow. And, really, it's the financials bearing the brunt of the losses this morning. But all 30 Dow stocks are trading lower right now.
And the VIX, which is the fear index, is rising. Why? Well, of course, it all has to do with the jobs report. It was bad by all measures.
Jobs gains this year are averaging 109,000 a month. Now, we need 150k to keep up with population and double that amount to significantly bring down unemployment.
So, what this is telling us, T.J., economic growth is grinding to a halt. However, just because it slowed doesn't mean the economy is going in reverse. Most analysts we've spoken to and the White House don't expect another recession for now --T.J.
HOLMES: All right. Karina, we appreciate you keeping an eye on things for us.
Well, at 35 minutes past the hour.
Coming up, got a new book. Here's the title, it's called "Is Marriage for White People?" The book has some people, as you can imagine, fired up because despite the title, it's actually examining African-American marriage. The author is joining me next to explain. What in the world is he talking about?
Also, now that the biggest wildfire in New Mexico's history leads to the discovery of the biggest pot plantation in the state's history. That story next for you in cross country.
(COMMERCIAL BREAK)
HOLMES: Give you a look of some of the stories making news across the country.
One of the biggest fires, what's being called the biggest fire in New Mexico's history has now led to the discovery of a huge marijuana plantation, the biggest the state has ever seen. The park service found while checking for damage in the burn area the National Guard has been called in to help with it now.
And in Chicago, the heat is so bad one school district canceled classes today in it's 19 elementary schools that don't have air- conditioning. The extra long weekend comes courtesy of temperatures that have been in the 90s for most of the week.
And the question this morning -- I'm not asking it, but somebody else is. The question is, "Is Marriage for White People?" That's the title of a controversial new book that examines the state of African- American marriage.
Stanford law professor Ralph Richard Banks wrote the book. He's here in the newsroom to talk about it.
Sir, thank you for being here. I believe the book just went on sale. Let me start with this. Don't want to put words in your mouth.
But are you saying that black women who want to get married should get over the idea of marrying a black man?
RALPH BANKS, AUTHOR, "IS MARRIAGE FOR WHITE PEOPLE?": What I'm saying -- the book covers a lot of ground.
HOLMES: Yes.
BANKS: But what I am saying, T.J., is that black women lead the most segregated lives of any in the nation. And they would help both themselves and the black race if they more frequently men by the race.
HOLMES: Now, how does the black woman help the black race if she essentially does something other than form a black family?
BANKS: That's a great question. She helps the black race because simply by opening herself to men of other races, she helps to undo the power imbalance between black men and women, which is really at the root of so much of the problem. As it is now, black men have a lot of power relative to black women because black men are scarce that, and that leads to a whole host of problems.
HOLMES: OK. You say black men are scarce. I pulled this quote that you gave to one publication. And I'm quote, it says, "It's time for black women stop being held hostage by the deficiencies of black men." Now, I have a college degree, a job and a good credit score, and I'm even offended by that.
What do you mean by that? It sounds like you are putting black men down. We've got our issues, but a quote like that is going to offend people.
BANKS: First, I want to know -- are you sure I said that?
HOLMES: It's attributed to you.
BANKS: In fact, in one of my more inflammatory moments, I did say that. I did err, in essence. A lot of people say, sure, black men are not doing well. That leaves black women unmarried. In fact, black women are the most unmarried portion of our population. Even college educated black women are more unmarried than college educated women of other races.
So, a lot of people say, look, this is a problem. Twice as many black women graduate from college. But we can't solve it until black men are doing better. In essence, that's saying until black men are doing better, black women have to suffer all of the burdens that come with raising children on their own, with not having partners, with dealing with the singles world that is not very -- not very enjoyable.
HOLMES: But we talk about a suitable partner. And you do, if you have a college education, sure, you'd like to have somebody who also has a college education. If you're making a certain salary, it would be nice if the person you're marrying has a comparable salary.
But it seems in some of the theme of your book, you're saying if you marry someone who doesn't have the same education level or make as much money, and I think you use the word, another quote, "That you're actually marrying down" in some way.
BANKS: Oh, you're going to make me be careful about what I write from now on.
HOLMES: Please.
BANKS: That's exactly right. Of course, relationships can work and you should find love wherever you can, right? And so, a relationship can work between a working class man and professional black woman.
But overall, on average, it is the case that such relationships between professional black women who have college degrees and who earn a good salary, and working class men who have unsteady employment, are not as well educated, those relationships are often conflict-ridden. They are more prone to divorce. They contribute to the fact African- Americans are more likely to divorce than any other group. More than half of African-Americans divorce -- maybe as many as two out of every three.
And these are not good outcomes. It would be better for a woman to find a man of their own class, even if he is of a different race.
HOLMES: Your own class and not by your own race. There is plenty I want to talk to you about. They are telling me I've got to let you do he now. But, sir, is it all right if I bring you back for one of my weekend shows? Maybe not this weekend, but maybe this weekend. Would you mind continuing this conversation with me later?
BANKS: As long as you let me know what quotes you're using beforehand.
HOLMES: Well, you need to watch out what you're popping off at the mouth there, sir. No, I'm teasing.
It's good talking to you. It's going to get a lot of people talking. The book is out. It's called "Is Marriage for White People?: How the African-American Marriage Decline Affects Everyone."
Ralph Richard Banks is the name. Sir, it's a pleasure. Talk to you again soon, all right?
BANKS: Thank you, T.J.
HOLMES: All right. We're getting close to the top of the hour, quarter of the top of the hour now. I got images for you to look at now. Remember these? This is from April. The tornados that tore through Alabama.
Up next: we'll tell you how Alabama's football team is now rallying their community.
(COMMERCIAL BREAK)
HOLMES: We're still about a quarter to the top of the hour. Let's go back Tuscaloosa, Alabama, shall we?
You remember what happened there few months ago, back in April, tornados ripped through the Southeast, just tore up.
Reynolds Wolf covered those storms, covered the aftermath.
And, Reynolds, it was amazing that Tuscaloosa was torn up, but the University of Alabama there was spared for the most part. How are you seeing the mood change as we get ready for football season to kick off?
REYNOLDS WOLF, AMS METEOROLOGIST: Yes, it's eager anticipation, T.J., no question about it. I mean, these people have been through just a nightmare situation with the tornado that came through on April 27th.
And I'll tell you, although there are things around the community that have been really improved, that have been fixed up since the devastation of the tornado, it is amazing that anyone who comes to Tuscaloosa, if you're ever here for a game, you make that drive down the freeway, you get off of McFarland Boulevard, heads towards the campus, where you used to have subdivisions and shopping malls, there are places where things look pristine and then there is a definite demarcation point from before the damage and then aftermath, where you had what used to be a subdivision, now it appears to be just an empty field.
I mean, you wouldn't know if you dropped in on the area that there were ever house necessary that place to begin with. It's just amazing to see. And there is definitely been some things built back. But one thing is the restoration of the spirit of Tuscaloosa, the spirit of the University of Alabama. And that restoration, the students believe, will begin its rebuilding here at the University of Alabama at Bryant Denny Stadium, as we get to game day.
A lot of students are obviously very excited.
(BEGIN VIDEO CLIPS)
JOHN CHESTNUT, FRESHMAN, UNIVERSITY OF ALABAMA: It's a big deal for me. This is my first game as a freshman, you know? So, I'm really excited about that. But, like you said, you know, being the first one after the tornado and everyone coming together, you know, and seeing Tuscaloosa is still here and we are still playing football and everything, it will be good.
CAREY FOUNTAION, SOPHOMORE, UNIVERSITY OF ALABAMA: I think the game is pretty important. The team has to come out and show the community even through the tornado and through everything that we can still come together for a good cause and play a good game of football.
LANCE LEDBETTER, JUNIOR, UNIVERSITY OF ALABAMA: I'm going to be in the stadium and cheering the loudest for the Crimson Tide.
(END VIDEO CLIPS)
WOLF: And, of course, the game will be between the Alabama Crimson Tide and Kent State. One of the amazing side stories of that, T.J., is that Kent State players have actually been on campus in this community helping to rebuild, rebuilding before the game even begins.
Let's send it back to you.
HOLMES: All right. Good stuff, Reynolds. It's good for you to be there. It's your home state. You were there right after the storm. To be back there now seeing things get put together has got to be nice for you.
Talk to you soon here, buddy, this weekend, all right?
All right. About 20 minutes to the top of the hour now. An American contractor in prison in Cuba. His wife back home and worried she might not see him alive again.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: He is so frail. Now, he's lost over 100 pounds.
(END VIDEO CLIP)
HOLMES: The imprisonment of Alan Gross not just affecting a family but international relations. His story, ahead.
(COMMERCIAL BREAK)
HOLMES: The wife of an American contractor imprisoned in Cuba is now worried she'll never see him again alive, at least.
Our foreign affairs correspondent Jill Dougherty sat down for an exclusive interview with Judy Gross.
(BEGIN VIDEOTAPE)
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT (voice-over): Judy Gross last saw her husband Alan in a Cuban court nearly six months ago. She says that husband of 41 years has gone from a vigorous 62-year-old to a gaunt, pale, old man.
(on camera): How concerned are you about his health?
JUDY GROSS, ALAN GROSS WIFE: Very, very concerned. He's so frail. Now, he's lost over 100 pounds. When I saw him, I could see his bones sticking out.
DOUGHERTY (voice-over): Alan Gross is an international development worker. The State Department says in Cuba, he was providing Internet equipment to the island's Jewish community. A Cuban court found him guilty trying to subvert the Cuban government and sentenced him to 15 years in prison.
GROSS: I respect the sovereignty of Cuba. I have learned from my parents and through experience that respect is something one must have in order to receive.
DOUGHERTY: Judy Gross reads from a statement her husband wrote by hand and delivered to a Havana court in March.
(on camera): Is that what he sounds like?
GROSS: Oh, yes.
DOUGHERTY: Yes?
GROSS: Very outgoing, very confident. Very moral, very ethical.
DOUGHERTY (voice-over): Alan Gross loves music.
GROSS: It's one string.
DOUGHERTY (on camera): So, these are instruments that he collected?
GROSS: Some of them. Not all of them.
DOUGHERTY (voice-over): There were times early on when Judy Gross had hoped music would help him through his ordeal.
(on camera): When he was in prison, he actually played instruments with his guards?
GROSS: Once or twice, I think it was the warden of the prison who I think was a musician, gave him an instrument.
DOUGHERTY (voice-over): In early August, the Cuban court turned down her husband's last appeal. She is asking President Raul Castro and the Cuban government to release him on humanitarian grounds.
GROSS: One of my biggest fears is I'm going to get a call from my attorney one day saying Alan had a heart attack or something happened to him. I don't know if I'll ever see him again. I don't know if he'll set foot on U.S. soil.
(END VIDEOTAPE)
HOLMES: And Jill Dougherty is here with me now.
Jill, I know it's not her biggest concern, but is there a concern about U.S./Cuba relations now?
DOUGHERTY: Well, yes. Absolutely, T.J. In fact, you know, this morning, I was talking with the State Department to get an update. And the problem is up until now, up until this case, relations were actually improving.
But the State Department is saying this is a major impediment now to the improvement in relations. So, it is a problem and it's affecting the family and the U.S. and Cuba.
HOLMES: All right. Jill Dougherty for us. Good to see you, as always.
And as we are close to the top of the hour now, "The Wall Street Journal" gives White House candidate Jon Huntsman a boost. Your Political Ticker is next.
(COMMERCIAL BREAK)
HOLMES: Well, today's jobs numbers couldn't make people feel good who are stressed out by the economy.
Our Brianna Keilar is standing by for us. New poll numbers and we're getting an insight into what people think about the economy these days.
BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: That's right. They are very scared. That's the bottom line. That's why the stakes are so high for the president's speech unveiling his jobs plan on Thursday night.
Eight in 10 Americans polled in this recent CNN/ORC International survey say they believe that the economy is currently in a recession. Also take a look about what the priorities Americans think the Obama administration, the president, that they should have. This poll showed 68 percent said the Obama administration should be focused on creating jobs, 30 percent much less said it should be focused on reducing the deficit.
If you look at Republicans, they're about split half and half on whether they think creating jobs or reducing the deficit should be a priority.
This poll was, of course, the poll that we released yesterday. Another CNN/ORC International poll that showed dismal approval ratings for how the president is handling the economy, only 34 percent approving. This is why Thursday is going to be so important. It could be a very pivotal moment for the president, T.J.
HOLMES: In the 40 seconds I have left, Jon Huntsman hasn't been able to make headway in the polls in the race, but he is getting some good news from a newspaper?
KEILAR: That's right. A push from the "Wall Street Journal" op-ed page, this is influential among fiscal conservatives. The question being, could this really put some wind in the sails of what is really a becalmed campaign for this Republican presidential contender?
You know that Huntsman unveiled a jobs plan this week, really reducing the size of the federal government through tax reform eliminating some popular tax deductions like that mortgage interest deduction that so many people enjoy.
So, we'll see how this pans out. The paper saying perhaps he should deliver the Republican response to the president's address on Thursday. We'll see if that advice is taken.
HOLMES: I'm sure he could use good news. He appreciates this backing.
Brianna Keilar, good talking to you.
At the top of the hour. Time for me to hand this thing over to Suzanne Malveaux.
