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Texas Homes Burned; New Details on Obama Jobs Plan; GOP Presidential to Debate; Amanda Knox's Dad Optimistic over Appeal; Arizona Charges Fee to See Prisoners; Tweeters Could Face Prison Time; Rick Perry in Rare Debate; Rick Perry in Rare Debate; Troops Now Set to Go By Year's End; Dick Cheney on the Iraq War; Jobs Lost Versus Jobs Gained; Gergen: Americorps Leads to Jobs; 4th Victim Dies in IHop Shooting; Madonna Hates Hydrangeas

Aired September 07, 2011 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Was that a subtle hint? I'll be calling the florist today for both of you. Have a great morning.

(LAUGHTER)

ALINA CHO, CNN ANCHOR, "AMERICAN MORNING": Thanks, Kyra.

PHILLIPS: Well, we're starting in Texas where exhausted fire crews are battling an enemy that is both astonishing and relentless. Wildfires burning somewhere in the state for nearly 10 months without any break. Today is the 296th consecutive day of work for those firefighters.

Just in the last week, 120,000 acres have burned. More than 700 homes have burned since Sunday and then near Austin, a blaze has killed two more people raising the overall death toll to four.

Jim Spellman is in Bastrop near the largest fire in the state.

So, Jim, are crews making any progress at this hour?

JIM SPELLMAN, CNN CORRESPONDENT: Yes, good morning, Kyra. It's shift change time here at the Bastrop Fire. The day crews are getting ready to head on into the fire. They really took advantage yesterday of low winds and cooler temperatures to get in there and get 30 percent containment on that fire.

I thought that was really an incredible amount of progress that they made yesterday, considering just how intense this fire was that it took out -- you know 500 homes in about 48 hours of burning time that they were able to make that kind of progress. They want to do that again while winds remain low.

It's going to be warmer today. That's not good but those low winds should allow them to make some more progress. They're in there on the ground creating fire lines and using bulldozers and hand tools to get rid of the fuel between the active fire and the homes and other stuff that's in the way. And they'll get up in the air again with helicopters and planes and drop water and retardant on it. They know that with the severe drought conditions that they have to be super aggressive against these fires, because just one spark, one ember flying up, if the winds pick up again, it could start a whole new fire and the whole cycle begins over again -- Kyra.

PHILLIPS: All right, Jim, we will be talking more, obviously, in the next couple of hours.

Let's go ahead and check more on the outlook for those fire conditions. And that's when we turn to Rob Marciano. He's been following it for us all throughout the state there.

Wow, cross country actually.

ROB MARCIANO, AMS METEOROLOGIST: No rain. Yes, no rain. And as we've been saying, you know, over 290 days consecutive fires.

We'll zoom in quickly to the Austin Fire. This is the largest one, 30,000 acres now and counting. You can see the satellite picture of where the smoke and ash pushed away from Austin. That's good but if you're down wind of that you're looking at certainly some bad air quality. You can even kind of see the outline of the scar that this thing has produced.

Also some impressive footage. This shot from the northeast -- northwest side of Austin and you can see the smoke and ash being blown away from the city itself. High pressure is the reason we don't have rain there. It's also keeping a lot of the debris from the fire very close to the ground.

(WEATHER REPORT)

PHILLIPS: OK. Rob, thanks.

MARCIANO: You bet.

PHILLIPS: Well, now we want to turn to the economy and the president's all-important speech on creating jobs. This morning we actually have new details of the plan that he's going to unveil before the Joint Session of Congress.

Brianna Keilar is at the White House.

So, Brianna, what exactly do we know this morning?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Kyra, here's what's new. We know that there is -- according to Democratic sources who were in discussions with the White House that there will be $300 billion in new spending that the president will be proposing. And according to these sources that will be offset by $300 billion in tax cuts, or in cuts, I should say.

We know some of the tax cuts already that the president will be proposing. The payroll tax cut right now, it' already in effect in part for employees. The president would like to extend that to employers and also continue allowing to have employees have that tax cut.

Also extending unemployment benefits so that the long-term unemployed have additional help. We know that education is going to be a priority when he gives his address tomorrow night. There will be money, we are expecting, for teachers who have been laid off to rehire them and also money to renovate schools.

The idea here, Kyra, is that this will be part of that infrastructure spending that the president has been behind as part of a jobs plan that the idea being renovating schools would be a shovel- ready project.

Of course yesterday we also heard White House Press Secretary Jay Carney say that there will also be new proposals in what the president lays out, proposals that we haven't heard about, proposals that you have just -- that are beyond what I've just laid out here -- Kyra.

PHILLIPS: All right. And Brianna, no formal Republican response to this speech, right?

KEILAR: No. You know, sometimes if you see a State of the Union, which this Joint Address, this address to a Joint Session of Congress is going to look like, you might see a Republican response.

An official response from one person who kind of speaks for -- in this case, House Republicans, you're going to be seeing that. There is some uncertainty of course to what the president may say. That may be in part but it's not that you're not going to hear from Republicans at all.

Expect to hear from the speaker, expect to hear from top Republicans. Many Republicans who will be doing television interviews and certainly getting their point of view out there as they do respond to the president, but not just having one person do it.

PHILLIPS: All right. Brianna Keilar at the White House. Brianna, thanks.

And tune in to CNN for the president' speech to the Joint Session of Congress. Our live coverage begins tomorrow at 7:00 p.m. Eastern.

All right, the president's speech was moved back for tonight's Republican presidential debate and our senior political editor Mark Preston has a preview of that.

Hey, Mark.

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Hey, Kyra. How are you? Yes, we'll see eight candidates out in California at the Ronald Reagan library this evening, will be taking part in the NBC/Politico debate. A couple of things that we're going to be looking for, Kyra, in this debate.

First thing that we'll be looking for is Mitt Romney stay laser focused on President Obama or will he perhaps attack some of the other candidates such as Rick Perry. Well, Rick Perry who's the new front- runner in this race, the new kid in the game and the new front runner, will he attack Mitt Romney personally.

We've seen his campaign doing that in press releases including just yesterday when Mitt Romney released his own jobs plan.

What will happen to Michele Bachmann? She really has fallen precipitously even after the Iowa straw poll. She has dropped heavily in the poll since Rick Perry entered the race. What will she do tonight?

And then of course what will happen to likes of Rick Santorum and Herman Cain and Jon Huntsman. These are all, folks, Kyra, who are so low in the polls right now and really need a breakthrough.

So some interesting things we might see tonight. What probably we won't see, though, is a lot of attacking going on because Ronald Reagan is known for the 11th commandment, thou shall not speak ill of a fellow Republican so I'd be surprised to see a lot of attacking one another tonight.

PHILLIPS: Well, someone who's not attacking but actually saying he would lend a hand, Rudy Giuliani this quote is classic. Hey, if you're desperate I might jump in and help run for president.

PRESTON: Yes. You know there's been a lot of talk about what is Rudy going to do. Is he going to run for president again or is he just going to kind of tease us with these types of comments?

Well, you know, he had a little fun with it yesterday. He was here in Washington for a speech. In fact let's listen to his own words what he had to say, Kyra.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, FORMER NEW YORK MAYOR: If I think we are truly desperate, then I may run, which is the way I got elected mayor of New York City. Do you know what my slogan was? You can't do any worse.

(END OF VIDEO CLIP)

PRESTON: So there's Rudy Giuliani in Washington yesterday. Probably throwing a little bit more cold water on the idea that he is probably going to run for president. But the fact is, he was seriously considering running for president. He has not ruled it out. But he does acknowledge, Kyra, he would have a tough time in a Republican primary which is dominated by social conservatives. And as we all know that Rudy Giuliani is a centrist Republican -- Kyra.

PHILLIPS: All right, Mark Preston, thanks.

We'll have your next political update in just about an hour. And a reminder for all the latest political news you can just go to our Web site, CNNPolitics.com.

All right, in Italy, attorneys for American exchange student Amanda Knox are making progress in appealing her murder conviction in the death of her late roommate. Our Zain Verjee is monitoring the latest from London.

So, Zain, I understand there's more questions about the DNA evidence?

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Yes. There are a couple of pretty significant developments, Kyra. This is a really pivotal week in Amanda Knox's appeal trial. The first thing is that a judge, Kyra, just a short while ago told prosecutors no, they cannot have any new DNA assessments. They cannot call forward any new witnesses and also they can't bring in some of the original DNA evidence that was used to convict Amanda Knox in the earlier trial.

The other thing that happened that's really crucial is that this leading Italian forensic expert. And he came on the stand and he had this very technical explanation but essentially what he said is that the amount of DNA in the groove of the knife that allegedly was used to murder Meredith Kercher was not necessarily, conclusively even blood. The prosecution that used that argument to put away Amanda Knox.

So these are pretty significant things. What's happened is that the two key pieces of evidence -- a knife as well as a bra clasp -- there's been enough doubt that's been cast on those two pieces of evidence to raise a lot of questions.

Amanda Knox's dad says that he's pretty optimistic that she may be released. Kyra, we'll find out what the verdict is at the end of the month likely.

PHILLIPS: We will be following it until then. Zain, thanks.

And coming up, crime pays. Or at least the Arizona Department of Corrections hope it does. If you want to visit someone behind bars, you're going to have to show up the cash.

Also ahead, 30 years in prison for sending a tweet. Two people in Mexico are facing just that. We'll explain.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories "Cross Country" now.

In Carson City, Nevada, a fourth person has died from yesterday's shooting rampage at IHOP restaurant. Three of them were National Guard members. Eleven people were shot. Police say the suspect later turned the gun on himself.

(BEGIN VIDEO CLIP)

STEVEN MARTIN, WITNESS: And all of a sudden, we heard a bunch of fire, we heard a bunch of shots going off. Loud shots. It was crazy. We seen people running out of the building.

GIGI LEETZOW, WITNESS: We just started hearing sounded like machine guns or firecrackers or something. It was loud. (END VIDEO CLIP)

PHILLIPS: Moving to New Haven, Connecticut now, the family of Annie Le has filed a wrongful death lawsuit against Yale University alleging that the school did little to protect women on its campus. She was killed in a research lab in 2009. The university says the lawsuit has no merit.

Senior legal analyst for CNN Jeff Toobin will join us next hour to talk more about this case.

And in parts of New York and New Jersey hit hard by Hurricane Irene there are changes to the start of the school year. In New York, there's some delays and Newark, New Jersey, concerns over mold at one school means a temporary reassignment of students to other schools.

Well, the Arizona Department of Corrections is cashing in on crime. If you want to visit someone behind bars, it's going to cost you 25 bucks. A fee that has angered not only family members but prison advocacy groups.

ACLU's David Fathi calls the visitation fee mind boggling.

And David, you actually believe that this could ultimately have a negative effect on public safety. Why?

DAVID FATHI, DIRECTOR, NATIONAL PRISON PROJECT OF THE ACLU: Well, research tells us that one of the very best predictors of whether someone is going to go straight and lead a law-abiding life after prison is whether he's been able to maintain family contact while incarcerated, and visitation is an essential part of that.

So if we care about public safety, if we care about crime prevention, we should be doing everything we can to encourage and facilitate and promote prison visitation.

PHILLIPS: And for these family members and families with a number of children, a $25 fee is a lot of money. Most of them liver in poverty, correct?

FATHI: Absolutely. This really is trying to get blood from a stone. Prisoners' families are overwhelmingly poor. They are poor to start with and then they are almost always made poorer by the incarceration of a spouse or parent or other bread winner. So these are really the last people on whose backs Arizona should be trying to balance its budget.

PHILLIPS: All right. So, there's been a lot of back on what exactly is this fee. The Arizona Department of Corrections gave up this statement saying that this is a background check. And I've also read that the same DOC comms director refers to it as a visitation fee and then you got Wendy Baldo, the chief of staff of the Arizona Senate, saying, no, this $25 will not be used for background checks but rather maintenance and repairs to prisons.

OK. So, with that said, what do you say to the critics out there that say, hey, these are prisoners, we've got no sympathy, pay the 25 bucks?

FATHI: Well, let's remember that the fee is paid not by the prisoners but by their family members who haven't done anything wrong. And I think we need to focus on what is best for public safety.

Other states have taken a very different approach from Arizona. Other states actually subsidize prison visiting because they know that every dollar they spend will be repaid many times over in successful reintegration and decreased crime in the future. Unfortunately, Arizona has taken the exact opposite direction and it's a direction that's bad for public safety.

PHILLIPS: ACLU's David Fathi -- thanks for joining us this morning. We'll follow the lawsuit.

FATHI: Thank you.

PHILLIPS: You bet.

FATHI: Using social media to create panic in the streets. Mexico takes a tough stand on two people accused of sparking terror by using Twitter. Some call it infringement on free speech.

Also ahead, what a way to go. Fired over the phone -- exactly what happened to the CEO of one of the most recognizable tech companies.

(COMMERCIAL BREAK)

PHILLIPS: And it's just coming in to the CNN NEWSROOM right now. Apparently, a commercial aircraft has crashed in Russia, about 155 miles northeast of the capital, we are told. Thirty-six people are confirmed dead. Russia state-run news agency says that the plane was carrying members of a hockey team. We are going to bring you more details as soon as we get them.

(MUSIC)

PHILLIPS: All right. Let's get to your showbiz headlines.

Celine Dion is the victim of a bizarre break-in. Police say that a 36-year-old man just slipped into her Montreal home and of all things raided the fridge. He tripped the alarm. Police showed up and he was drawing a bath. Neither Dion nor her husband were home at the time.

"America's Most Wanted" gets a second life on the Lifetime Network. FOX will still air quarterly specials after dropping it earlier this year. In its 25th season, host John Walsh says they helped capture more than a thousand fugitives.

And items belonging to John Wayne will soon be auctioned off, like cowboy hat from "Rooster Cogburn." Maybe you want the eye patch from "True Grit." Or maybe a little something like his Golden Globe for the best actor. Four hundred John Wayne items go up for sale next month.

Well, potentially landmark legal case in Mexico. Two people could face up to 30 years in prison for creating public panic using Twitter.

Zain Verjee is live with us from London with more on this controversial case -- Zain.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Hi, Kyra.

Well, four posts were put up online and it triggered total panic, complete chaos. Parents were stressed out, major traffic jams, car crashes. It really unleashed havoc.

Basically, what happened was two guys were putting up false information suggesting that children had been kidnapped. They said there were bomb threats, helicopters fired gunshots and kidnapping situation was happening.

Let me just give you a flavor of some of the tweets that were put out by one of them, Kyra. One reads, "My sister-in-law just called me all upset, they just kidnapped five from the school." The second one says, "Remain calm. I think that the children should be in their homes. Go get them."

Kyra, this was all just lies, basically. They just made this stuff up. Now, investigators are saying the two people behind this could face terrorism charges and up to 30 years in jail.

Now, their lawyer is saying, well, you know, they have freedom of speech, they can say this kind of stuff. But, still, it's really disturbing to put the stuff out there and trigger this kind of chaos.

PHILLIPS: I will follow the case. It's definitely interesting.

Zain, thanks.

And fired over the phone. That's what happened to the CEO of Yahoo! Alison Kosik at the New York Stock Exchange with details.

So, Alison, what was her response?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: You know, you can only guess what her response was.

You know, getting fired, Kyra, it's just not easy obviously. There's no easy way to do it. But over the phone? Come on. Right?

Well, I'll tell you what? Carol Bartz, she didn't hide the fact at all. What she did after getting that phone call, she blasted out an e-mail to all Yahoo employees saying, "I'm very sad to tell you I've just been fired over the phone by Yahoo's chairman of the board. It has been my pleasure to work with you all and I wish you only the best going forward."

But you have to remember, Bartz' two and a half years at Yahoo, it wasn't easy. It was pretty strained. You know, she cut costs but she also failed to boost revenue and Yahoo has steadily been losing online ad revenue to its big rivals Facebook and Google. Also, Yahoo stock price, it hasn't moved much under her leadership.

Despite these problems, Yahoo still has 600 million users. That's still not too bad, Kyra.

PHILLIPS: Well, how is Wall Street taking the news?

KOSIK: You know what? Yahoo shares are up about 6 percent before we start the opening today. You know, analysts say the way her departure was handled could wind up signaling that there's more drama to come at Yahoo.

As for the border market, it looks like we're going to be opening higher. This comes after three straight days of selling. It looks like the bargain hunters are going to be out in full force.

Also, hopes are being pinned on the big speech from President Obama happening tomorrow at 7:00. He is giving this big speech on jobs. So, Wall Street is certainly hopeful that something new, different, and wonderful will come out of that, Kyra.

PHILLIPS: OK. We'll follow it. Alison, thanks.

Well, Texas Governor Rick Perry, he is leading the Republican field and will stand front and center at tonight's GOP debate. Expect some of the feistiness on display here.

(BEGIN VIDEO CLIP)

GOV. RICK PERRY (R), TEXAS: I mean, it really wears me out that we got two people on the stage here that want to tear Texas down when the fact is everybody understands, this is a state you want to live in. We want to come here.

(END VIDEO CLIP)

PHILLIPS: You might be surprised that this is a rare test for the lifelong politician who has long avoided debates. We'll take a closer look right after the break.

Plus, at least one political expert says the answer to putting young people to work is a program sitting right under the president's nose.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now.

"Reuters" has just released home video of Moammar Gadhafi with his family members. It's unclear when exactly it was shot. Gadhafi's whereabouts are still not known.

At least 11 people were killed and 61 wounded when a bomb went off outside a court in New Delhi today. It was the second explosion outside that Indian court in four months.

And the largest of Texas wildfires has now burned 33,000 acres near Austin. The fire is being blamed for two deaths and the evacuations of at least 5,000 people.

Texas Governor Rick Perry says he will not miss tonight's Republican debate. He bowed out of a similar showdown on Monday to deal with the wildfires back home. So, tonight will be a crucial test for the front-runner and a forum that he has largely avoided.

In his 10 years as governor, he has taken part in only four debates.

(BEGIN VIDEO CLIP)

PERRY: I'm telling you that we created more jobs -- I don't know -- I don't know how to explain this to you any simpler.

UNIDENTIFIED FEMALE: Well, Governor, you're using the numbers from '07 and --

(CROSSTALK)

UNIDENTIFIED MALE: I'm talking about 2008.

UNIDENTIFIED FEMALE: Let's talk about '09.

PERRY: In '09, we are creating jobs in October and in November. There was not a state in the nation. Name me one state in the nation, Senator, or Mrs. Medina, that were creating jobs. I mean, it really wears me out that we got two people on the stage here that want to tear Texas down when the fact is everybody understands, this is a state you want to live in. We want to come here.

This state is growing by a thousand people a day and it's not because we are overtaxing them or over-regulating them or over- litigating them. They're coming here because they know this is the place to be, the land of opportunity.

(END VIDEO CLIP)

PHILLIPS: Oh, folksy, feisty and decidedly headstrong.

Will the debating skills of this Texas maverick win over a national audience?

CNN political reporter Pete Hamby is in Columbia, South Carolina.

So, first off, Peter, how much is at stake for Rick Perry tonight?

PETER HAMBY, CNN POLITICAL PRODUCER: I think the stakes are very high for Rick Perry tonight. They are also high for Michele Bachmann and Mitt Romney, two folks who have suffered in the polls since Perry joined the race.

But Perry has to accomplish two things tonight. Most of us in the world, all the political junkies, have been following Perry intensely over the last several weeks. But most Americans have probably only heard about Rick Perry, you know, around the dinner table or the water cooler. So, he's got to both introduce himself tonight to the country and to Republican voters.

But he's also got to be prepared for attacks from Romney and Bachmann, Santorum, Huntsman and other people on the stage who are going to try to take a piece out of Perry and kind of diminish his standings in the polls, Kyra.

PHILLIPS: You know, so has he avoided debating because he doesn't want to expose what his critics say are intellectual short comings or is he avoiding it because he simply doesn't have to do it?

HAMBY: I would be careful about -- I know there is a narrative out there that Rick Perry might be a dumb to be frank, but I'll be careful about. I mean, the guy has been governor for a decade in Texas.

His decision not to debate in Texas has been tactical decisions. They might not be his best forum. It's not really in his wheelhouse. So, yes, it's pretty incredible through primaries and general elections over a decade he has avoided most debates.

But do not underestimate Rick Perry. His opponent in the 1998, lieutenant governor's race, John Sharp, said running against Perry is, quote, "like running against God."

This guy, you know, whether by luck or by tactical brilliance and he does have a smart team of advisers has managed to skip debates, but still leave a trail of defeated opponents across Texas going back to 1984, Kyra.

PHILLIPS: Well, that reputation you talk about there, do you think that style that combative debate style that we have seen will work for a national audience or is that a better fit for Texas politics?

HAMBY: I think that clip you played is a great example of what we might see from Rick Perry tonight as you said, head-strong. He refuses to back down. I talked to several strategists who worked on campaigns against him past.

They say that he really likes to stick to his talking points. He's very defensive about the points he is trying to make. What the other candidates have to try to do is try to get him off his talking points and then pounce. So, you know, he is combative. Whether that plays on a national stage, you know, we shall see tonight, Kyra.

PHILLIPS: All right, Peter Hamby, we will be talking again. Thanks, Peter.

HAMBY: Thank you. PHILLIPS: Well, right now, members of the Obama administration right now are in talks to try to determine how many U.S. troops are going to stay in Iraq after this year.

And one option that is being considered is, keeping 3,000 forces there. Barbara Starr is at the Pentagon. Barbara, that -- to many people, seems like a pretty small number.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Yes, you know, Kyra, it's hard to believe we are talking about the question are there going to be enough U.S. troops in Iraq when for years the question has been how soon are U.S. troops getting out of Iraq.

So here is where it stands. There is an agreement with the Iraqis. All U.S. troops gone by the end of the year, but the reality check is both sides have been talking for some time about keeping a small number there to help the Iraqis with critical military tasks like hunting down terrorists, for example.

Listen to what Leon Panetta said yesterday when this story surfaced that the U.S. is thinking about keeping a small number there. Have a listen.

(BEGIN VIDEO CLIP)

LEON PANETTA, DEFENSE SECRETARY: With regards to what our presence will look like beyond that. That is the subject of negotiations with the Iraqis. As I said, I can't give you a number or tell you what that number looks like. It's going to have to be part of the negotiation.

(END VIDEO CLIP)

STARR: Part of the negotiation, Panetta insists publicly no decisions have been made, but what we know from sources here at the Pentagon is 3,000 is one of the options on the table.

One of the options being talked about, many on Capitol Hill, oddly enough, are looking at is and saying that's not enough. You need more. If just put 3,000 troops there, you can't do very much other than maybe train some Iraqi forces and you risk the gains of the last many years of war.

So if you thought the U.S. was going to end its military involvement in Iraq at the end of the year, maybe not so soon. Kyra --

PHILLIPS: All right, Barbara Starr at the Pentagon. Barbara, thanks.

The United States went into Iraq when Dick Cheney was the number two man in the White House. And it's no secret that he had a lot of influence on U.S. operations there. He spoke to our Wolf Blitzer about no regrets.

(BEGIN VIDEO CLIP) WOLF BLITZER, THE SITUATION ROOM: Do you think there's going to be a democracy --

DICK CHENEY, FORMER U.S. VICE PRESIDENT: I think the Iraqis will, in fact, be somebody we can work with on a regular basis and they will have a rudimentary democracy if you will and I think it will be a success.

BLITZER: So when they support Bashir Al-Assad, what goes through your mind?

CHENEY: Well, you know, I think Bashir Al-Assad is not long for this world leader. It looks to me like he is on his way out because of the unrest that has been occasioned by his own people inside Syria.

He is one of the least popular leaders in that part of the world. It's the Middle East and stuff happens in the Middle East. You know it.

You've covered it for years. I don't think you can make a case that the world would be better off today if Saddam Hussein were still in power.

BLITZER: So no regrets about Iraq?

CHENEY: I think we made the exactly right decisions.

(END VIDEO CLIP)

PHILLIPS: Cheney is currently on a media tour for his book "In My Time."

Up next, the call for young people to volunteer for a year and serve their country could be a part of the solution to the job crisis. So says David Gergen, he's talking about that live next.

A gunman opens fire on people eating breakfast at an Ihop. The fourth victim is now dead and there's a question about the shooter's motive. That story in 12 minutes.

(COMMERCIAL BREAK)

PHILLIPS: One of the biggest concerns of the sputtering economy is the lack of jobs. Last month, not a single job was added to the economy. As CNN's Tom Foreman shows us even when jobs are added though, there is a sobering reality behind those numbers.

TOM FOREMAN, CNN CORRESPONDENT: Kyra, you know, we have talked an awful lot about all of the jobs lost during this recession. Almost 7 million lost in the recession proper. The question is, are all of those jobs the same and the truth is they are not.

Let's look at what was going on before the recession, from 2001 to 2008. During that period of time, most of the growth was happening over here on the high wage area above $70,000 a year and middle wages $35,000 and up not that much and lower wage doing sort of OK. That was before the recession.

Look what happened during the recession itself. Suddenly this middle wage group way down there! Higher wage, they lost some. Lower wage lost some. But bear in mind, this is roughly half of the country. This is what drives the economy this big group in the middle.

As we look at the recovery that has happened since then, watch how little this comes up, just a tiny bit in the middle wages. Lower wage jobs, those have been coming back a fair amount, but these aren't the ones that will support the economy. Oddly enough, the higher wage jobs are still losing some ground over here.

But that is the big difference here. The jobs we lost beforehand were better than the jobs we are getting back right now. So a job is not a job that is not a job is not a job, there really is a difference between them.

And that's one of the reasons that even the jobs we are getting back and what many people see sort of a jobless recovery are not strong enough to support the overall economy to bring all of these other jobs back.

Tomorrow, we are going to look at professions. Those that are being hit the hardest and those you might be able to bet some of your future on. Kyra.

PHILLIPS: All right, Tom Foreman, thanks so much.

And as the president looks for ways to create and save jobs, one former presidential adviser says Obama needs to look no further than an existing government program.

David Gergen says the Americorps is one of the best programs when it comes to training young people for jobs and if you're not familiar with it. Here's how it works.

Volunteer a year of your life and it will give you hands-on experience and even add cash for college. Gergen says expanding that government volunteer program will give our younger generation hopes, skills and jobs in a pretty brutal economy.

David joins us live from Dallas this morning. David, you say the program actually mirrors what the civilian conservation corps did during the depression.

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: Yes, it's striking, Kyra, what happened during the depression shortly after taking office in 1933. Franklin Roosevelt proposed the Civilian Conservation Corps.

By that very summer, action actually occurred in the Congress and they got 250,000 young men who were employed out in the woods, building parks, helping with roads and doing all sorts of projects. And the CCC went on to become a storied legend of the new deal.

It was one of the most popular programs in the country and it put a lot of young people to work. And Americorps could be our new CCC. That is what Michael Brown who now directs it and arguing a blog on CNN today.

That we ought to look at Americorps because so many young people in this country, the unemployment rate among the young is far higher than it is among the nation as a whole. The unemployment rate among the young is 18 percent. Among young Hispanics, 20 percent and among young blacks, it's 30 percent.

PHILLIPS: And you point out that Americorps is under the knife, David, and that would be grave mistake. Give us some examples why.

GERGEN: Well, Americorps is appealing to a very idealistic streak that we find in the younger generation. I must say this younger generation that is coming up, you look at the military veterans coming back. Some of the young people want to go out and teach and do other things.

There's an enormous amount of idealism out there. This last year, Americorps got over 500,000 applications up two-thirds over two years. But they had to turn away three-quarters. Let me give you an example, I happen to be on the board for Teach for America.

A wonderful organization started by Wendy, a heroine of mine. This last year, Teach for America asked college seniors to sign up and go work in the toughest classrooms in America whether in urban areas or rural areas and do it for at least two years.

Many go on to keep teaching at charter schools and great teachers. Well, this last year, among college seniors, Wendy could offer 4,600 positions to go out and teach. We had 47,000 applications.

Many of the top schools had at least one out of five of their seniors applied. Place like Spellman College, a university for young African-American women predominantly in Atlanta, 27 percent of the seniors.

PHILLIPS: My neck of the woods.

GERGEN: Yes, your neck of the woods. The 27 percent of the seniors in Spellman applied for Teach for America. Americorps can not only provide jobs, but it can help to encourage the spirit of idealism and begin to change the culture of the country.

What we don't want to do is kill that spirit of idealism in this younger generation. If they can't find jobs, they are going to become disillusion and we will see the kind of unrest that we've been seeing on the streets of Britain where young people don't have jobs.

PHILLIPS: I think that's one of the highlights of the interview is the fact that you talked about the spirit of idealism still so strong. It's a great point to make this morning. David, thanks so much. Appreciate it.

GERGEN: Thank you, Kyra. Thank you for the time.

PHILLIPS: You bet. And you can read the entire article about Americorps. It's co-written by David Gergen and Michael Brown. It's on cnn.com. It's called "Jobs for Young Americans." Check it out.

Coming up, a swift water rescue caught on tape. A man walks into a Nevada Ihop with an AK-47 and starts shooting. National Guard members are among the four people killed. We will hear from the witnesses next.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories cross country now.

The Arizona Republic reporting that an appeal has rule -- or appeals court has ruled against the State of Arizona for trying to deny health benefits for same-sex partners of state employees. A spokesperson for Governor Jan Brewer says the governor is considering another appeal.

In Marquette County, Wisconsin, Tom and Sue Shorter Christmas tree farm will have the distinction of sending its best to the First Family the upcoming holiday season. The couple was declared the grand champion Christmas tree growers in a recent contest. So they plan to present their tree to the First Lady in late November.

And first responders in Stanford (ph) County, Virginia used their new motorized rescue boat for the first time when they pulled a man to safety from a swift moving river. The man apparently, fell from a boat and wasn't unable to swim ashore.

A man walks into a Nevada iHop with an AK-47 and starts shooting. Among those killed National Guard members. But now we are hearing there's a fourth victim.

CNN's Thelma Gutierrez is following the story for us out of Los Angeles -- Thelma.

THELMA GUTIERREZ, CNN CORRESPONDENT: And Kyra, this morning, we are learning more about the gunman. He's 32-year-old Eduardo Sencion, he lived in Carson City worked at a family business in South Lake Tahoe.

Authorities say yesterday morning Sencion opened fire on a group of National Guardsmen who were having breakfast at an iHop restaurant. Four people were killed including three Guardsmen and a civilian who was in the line of fire. Eleven people in total were shot.

Investigators say Sencion continued his rampage as he left the restaurant shooting a woman in the parking lot on his way out.

Witnesses describe the scene as horrifying. People running through the parking lot and taking cover under vehicles.

(BEGIN VIDEO CLIP)

GIGI LEETZOW, WITNESS: It was about 9:00 and I just started hearing what sounded like machine guns or firecrackers or something. It was loud.

STEVEN MARTIN, WITNESS: There was like blood everywhere, broken glass everywhere. It was a war zone down there. It was nuts.

(END VIDEO CLIP)

GUTIERREZ: Investigators say Sencion who had no prior criminal record used an AK-47 in the rampage. They found an empty 30-round gun magazine and a pistol and an assault rifle near the vehicle. According to family members, Sencion had a history of mental illness and they say he had never been in the military before.

As for a motive, that's still under investigation, Kyra, but they are concerned because so many of the Guardsmen were in uniform at the time that they were shot. As for Sencion, he also died at the scene from a self-inflicted gunshot wound -- Kyra.

PHILLIPS: We will follow the investigation. Thelma Gutierrez up early for us there on the coast, thank you so much Thelma.

A wrongful death lawsuit filed against Yale University by a family who says their daughter's murder could have been prevented. We'll talk with our legal analyst Jeffrey Toobin about this case.

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PHILLIPS: Well stories making news later today, 1:00 p.m., Eastern NASA holds a teleconference to discuss new observations about solar flares that can impact communications.

And at 4:45 Eastern, President Obama hosts Nascar's Sprint Cup Series champion Jimmie Johnson at the White House.

And later tonight at 8:00 Eastern, a debate for Republican presidential candidates takes place at the Ronald Reagan Presidential Library in Simi Valley, California.

All right. We're following lots of developments for you in the next hour of the CNN NEWSROOM. Let's start first with Brianna Keilar.

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Hi there Kyra. Sources telling CNN, the President will unveil a $300 billion jobs plan when he addresses Congress tomorrow night. I'll have details at the top of the hour.

KOSIK: And I'm Alison Kosik at the New York Stock Exchange where we're keeping tabs on the CEO of one of the biggest coffee companies. The Starbuck's leader, Harold Schultz is still pumped up on caffeine continuing his push to get things done in Washington.

First he asked CEOs to withhold donations to D.C. Now he wants you to do something. Kyra, I'm going to have details in the next hour.

PHILLIPS: All right, ladies. Thanks so much.

And also coming up, the infamous shoe bomber changed the way we boarded airplanes for the last decade. Yes, we're talking about this man. And ever since he got arrested, we've had to take our shoes off at every single security checkpoint. Well, guess what? That may change.

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PHILLIPS: Well, two of Nascar's biggest names battle it out at Atlanta Motor Speedway. Jeff Gordon in the 24 car pulled in front of Jimmie Johnson on lap 276 and held him off the rest of the way. It's Gordon's third victory of the season and 85th of his career. That moves him into third place for Nascar's all-time winners.

And here's something you don't see in Major League baseball. The Reds Brandon Williams runs for home. He's going to be out by a mile, by the way. But instead of plowing into the Cubs' catcher, look at this. Give me some love. Nice job. Thanks for -- yes, ok.

And then the Mariners' outfielder Ichiro on the right and a fan who looks a lot like him on the left. The real guy though, makes a grab in last night's game against the Angels. Jumps at the wall to make the catch. There you go. He takes breath, his fan look alike takes a bow to the stands. He got some laughs and, of course, some boos from the Angel fans.

Well, it's Madonna versus hydrangeas. The pop star was caught on a hot mike dissing a fan's floral gift. And now floral lovers are on the counterattack.

Here's CNN's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): It's enough to make a hydrangea wilt, insulted by Madonna in videos that have gone viral. There Madonna is at the Venice Film Festival when a fan among the press people gives her a flower.

UNIDENTIFIED MALE: You are my princess. Thank you so much. I love you.

MOOS: But after Madonna tells him thank you, some say she rolls her eyes and out comes the truth, barely picked up on an open mike. "I absolutely loathe hydrangeas."

MADONNA: I absolutely loathe hydrangeas. He obviously doesn't know that.

MOOS: Hydrangeas of the world unite. Geez, Madonna, what did hydrangeas ever do to you? The "b" word flew at Madonna. The one that rhymes with witch. We went to Flowers of the World in Manhattan to see why anyone would hate hydrangea. ANDREA VOTE, FLOWERS OF THE WORLD: A lot of people think it's their grandmother's flower.

MOOS: And on top of that, hydrangea grow in people's yards.

(on camera): So it makes it more lowly.

VOTE: Yes, I see it in other people's yards. It couldn't be that great of a flower.

MOOS (voice-over): But these hydrangea are from the Netherlands and cost $20 or 30 bucks a stem. Could Madonna's loathing turn hydrangea into the new broccoli?

GEORGE W.H. BUSH, FORMER PRESIDENT OF THE UNITED STATES: I do not like broccoli and my mother made me eat it. And I'm President of the United States and I'm not going to eat any more broccoli.

MOOS: At least Madonna doesn't have to eat hydrangea. Madonna may run from field of lilies. She's even accepted humble daisies.

MADONNA: Living in a material world --

MOOS: And clutched them like a smitten schoolgirl. In the videos that have gone viral, hydrangea get no respect.

UNIDENTIFIED MALE: Madonna, where is the flowers that I gave you?

MADONNA: Oh, my assistant took them.

MOOS: Madonna's spokesperson says, "She's entitled to like any flower she wants and she didn't want to hurt the feelings of the hydrangeas of the world."

Maybe, but her attitude was similar to that of the hoity-toity editor in "The Devil Wears Prada".

MERYL STREEP, ACTRESS: Do I smell freesias?

ANNE HATHAWAY, ACTRESS: What?

MOOS (on camera): Do I smell hydrangea?

HATHAWAY: No. I specifically told them that --

STREEP: If I see freesias anywhere, I will be very disappointed.

MOOS (on camera): If I see hydrangea anywhere, I'm going to be very disappointed.

(voice-over): From the hydrangea's point of view, Madonna stinks.

VOTE: It's an unscented flower.

MOOS: Jeanne Moos, CNN --

MADONNA: Thank you.

MOOS: New York.

MADONNA: Thank you.

(END VIDEOTAPE)