Return to Transcripts main page
CNN Newsroom
Obama Plan Spares Social Security; Boehner Unveils GOP Jobs Plan; Jobless Claims at 2-Month High; UBS: One Trader Lost $2 Billion; Global Buzz over Greek Default Fears; Optimism Iran Will Free Americans; Interview with Sheriff Joe Arpaio; Obama Awards Medal of Honor; Mystery Lights Reported in Southwest; Missoni Hits EBay and Craigslist; Rachel Zoe's New Project; Perry Focusing on Obama
Aired September 15, 2011 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: All right, this morning presidential candidates fanning across the country from the East Coast to the West and even smack in the middle of the heartland. We are following them every step of the way.
We are just getting this word this morning, we are learning that Obama's deficit recommendations to Congress will not include any changes to social security. We are getting word of this right now and our Dan Lothian is up for us at the White House. Dan, what did you find out?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, first of all, as you know, the president will be unveiling his deficit plan next week. And so ahead of that, the White House confirming, as you pointed out that it will not include changes to Social Security.
This is coming from a White House spokesperson saying, quote, "The president's recommendation for a deficit reduction will not include any changes to Social Security." Because as the president has consistently said, he does not believe that Social Security is a driver of our near and medium term deficits.
He believes that both parties need to work together on a parallel track to strengthen Social Security for future generation rather than taking a piecemeal approach as part of a deficit reduction plan.
Now, you might recall that when the president had these talks with Speaker Boehner on the grand bargain, they did discuss making some changes to the inflation formula for Social Security.
But this was something that certainly had been resisted by Democrats who don't believe that Social Security is adding at all to the overall deficit. So now the president, the White House confirming will not include any changes as he unveils that plan next week, Kyra.
PHILLIPS: All right, Dan Lothian at the White House. Dan, thanks.
In just a few hours, House Speaker John Boehner will unveil his own prescription to fix the economy. The plan by the House Republicans will aim to put more Americans to work just like the White House stimulus plan. But that's where the similarities end. Kate Bolduan is on the Hill. So Kate, what do we expect to hear?
KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: Hi, there, Kyra. We'll be keeping a close eye on the speech coming up by House Speaker John Boehner. As it seems like it will be the most direct comments by the speaker, yet and lengthy comments yet kind of about the president's jobs plan and his vision really for how to spur job creation.
From the guidance that we're getting, it could be kind of the counter point to the president's jobs speech. As he'll be laying out his vision for what will spur job growth as well what he hopes the "Super Committee" will focus on to reach their deficit reduction target.
According to a Republican aide who obviously knows what the speaker will be talking about today, the speaker will again repeat his willingness to work with the president to try to find some common ground on the proposals that the president laid out.
But at the same time, the speaker will also kind of offer some pushback and will be laying out his vision for what he thinks should be included for long term job growth, which includes rolling back federal regulations that Republicans say are burdensome and hamper job creation.
That's something that we've heard from Republicans since they returned from the August recess. We also will be hearing from the speaker that he'll be calling on the "Super Committee" to take on fundamental tax reform, something Republicans very much support that they think will spur job creation in the long term and also take on entitlement reform.
So we'll be listening very closely to what details the House speaker will be laying out for his vision of job creation and if we will hear if he's laying out the marker for how the jobs debate will continue going forward. Kyra --
PHILLIPS: All right, we'll listen with you. Kate, thanks.
You know, the jobs crisis hits home again this morning with the worst jobless numbers in two months. Christine Romans following it all for us. So, Christine, I guess, we should lay out the bad news.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, you know, there's the jobs debate going on in Washington, which I think it's frustrating, Kyra, for so many people because the jobs debate for them is happening in their living room or at their neighbors house or at their families.
And these numbers bear that out, 428,000 people filing for unemployment benefits for the very first time last week. That's a number that is too high. You want to see it get below 400,000 to show you that the economy is starting to heal, that the economy is growing enough to have job creation and we are just not seeing that yet.
Worse, the week before was revised a little bit higher as well. So we've been talking about the long-term unemployment for six months. We've been having a hard time getting a new job. We're also seeing here, most recently in the past couple weeks something has been happening about the economy and about confidence that led employers to do more layoffs.
So that's what we are seeing in terms of the picture for jobs. While the debate goes on in Washington, there's no debate for frankly 3.7 million Americans who are on continuing unemployment benefits and who are just wondering when the economy is going to start creating jobs for them, Kyra --
PHILLIPS: Well, speaking of big numbers, what more do we know about this UBS trader?
ROMANS: We have a name, Kyra. This is the man who was arrested, a 31-year-old. This is according to Reuters and British news outlets, a 31-year-old arrested overnight in London. UBS is saying it was unauthorized trades -- unauthorized trades that may cause it to take a loss in its upcoming earnings report.
It's $2 billion we're told is the hole here. You know, we have kind of a long history of these quote/unquote "rogue traders," right? You would think that these big massive financial companies that one person wouldn't be able to move that much money around and not get caught. We have seen it before.
You might remember Jerome Kerviel, this was the guy -- $6 billion in unauthorized trading in Societe Generale. There was a guy, Yasuo Hamanaka, who tried to corner the copper market at Sumitomo Corp. that cost them more than $2.5 billion a few years ago.
In the '90s, there was this case of Nick Leeson and you probably remember a Singapore-based trader who took down the entire Barings Bank, an entire British bank seized with this because of this one trader. So there are a lot of safeguards that have been put in place since then.
But that whole rogue trader philosophy, whether it's a mistake that spirals out of control or whether it's, you know, on purpose. No one knows. We don't have all the details yet whether if it was a wrong button that was pushed. Who knows, $2 billion though. We'll continue to talk about this story. It's certainly what everyone talking about in the markets today, Kyra.
PHILLIPS: All right, we'll keep talking about it then. Christine, thanks.
And the fears of a possible Greek default triggering another recession are making headlines around the world as well. And CNN's Max Foster is following that for us out of London. We talked a little bit about it with Christine, Max, it's hitting the headlines.
MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: Yes. The big story here, really is the rescue of the European financial system it feels like today. The Federal Reserve and other central banks have basically stepped in and said they are going to make dollars more readily available in Europe to stabilize the system because the dollar is being seen as much more secured currency right now than the euro.
I will mention, Kyra, that Timothy Geithner is going to be at a European Finance Ministers meeting tomorrow in Poland. It's really America giving support to Europe. It really needs it right now.
Let's have a look at some of the headlines around the world discussing this Euro crisis. The "Independent" here in the U.K. writing, "The solution to this crisis may lie three years in the past, referring back to the U.S. financial crisis.
With Europe sovereign debt crisis threatening to become a banking crisis, the continent leaders must look at cross an ocean to the west on three years since the past for lessons on how to react.
The "Wall Street Journal" saying, leave the euro to the pigs. These are the four weaker countries in Europe, which really dragged the euro down, Portugal, Ireland, Greece, and Spain. A permanent solution to the European debt problem requires a lot less finger pointing, much greater efforts to bring an end to the excessive debt and spending.
Finally, the "Sydney Morning Herald" in Australia, the strongest words really come from them today. Throw out cheating Greece before the rot cripples the rest of the world. Greece needs to be thrown out to the Euro zone writes the "Herald."
The crisis is coming to a head as it must, but we will all pay. It's merely the most extreme manifestation of a failure democracy by the European Union. It does feel, Kyra, as if this crisis is coming to a head.
PHILLIPS: All right, Max Foster out of London. Max, thanks.
And still not a done deal, but it looks like things are on track for the jailed American hikers to be freed. Their lawyers said that he's filed the paperwork to have them released. CNN's Mohammed Jamjoom joining us now from neighboring Iran. So Mo, tell us what is new at this point?
MOHAMMED JAMJOOM, CNN INTERNATIONAL CORRESPONDENT: Well, Kyra, even though the lawyer for the two jailed American hikers in Iran says he's filed all the necessary paperwork for his clients to be released on bail.
He also says he doesn't expect that the judiciary will actually make a decision before Saturday at the earliest. This really seems to be underscoring some tension that going on in Iran that's talked about between Iranian President Mahmoud Ahmadinejad and the judiciary there. We have seen this being played out in the last few months.
But the fact that Ahmadinejad said in his NBC interview that he believed these hikers would be released within two to three days, and then just yesterday, you have judges there, the judiciary forcing a statement saying that really they are the final arbitrators in this. They are the ones that will make the decision and this case is under review. Really it seems to be indicating that President Ahmadinejad has a diminished stature in Iran. That his currency in Iran at least has gone down. His power has been weakened somewhat. Now as far as the Omani's, there's been a lot of talk. A western diplomat told CNN yesterday that there was an Omani plane that was en route to Iran yesterday to try to negotiate the release of these hikers.
The Omani themselves, they are not saying anything. They are not confirming this. Although there's a lot of speculation because the Omani's last year took a leading role in trying to release and getting the release of Sarah Shourd, the hiker who was released last September.
But as far as the Omani's right now, still not saying anything, a lot of speculation as to when these hikers might be released and if they will be coming to Oman the way Shara Shourd did last September. Kyra.
PHILLIPS: All right, Mohammed, thanks. If something happens, we will bring it to you live right here on CNN.
In less than a week, convicted cop killer, Troy Davis is scheduled to die. But human rights groups around the world are fighting to save him. And this hour, they will deliver hundreds of thousands of signatures asking that he be spared. David Mattingly has the story.
(BEGIN VIDEOTAPE)
DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT (voice-over): Three times scheduled for execution, three times delayed. Now, with all legal appeals exhausted. Supporters of convicted cop killer Troy Davis makes a final push for clemency.
(on camera): What makes you think you still have a chance to stop this execution?
LAURA MOVE, AMNESTY INTERNATIONAL USA: Can we be sure that this man is not innocent? Can we be sure that the conviction of Troy Davis back in 1991 is still reliable? The thing that is so difficult to understand is why the legal process hasn't asked that question.
MATTINGLY (voice-over): Davis was sentenced to death for the 1989 murder of a Savannah, Georgia Police Officer Mark MacPhail. Seven of nine eyewitnesses have since recanted, changed their stories. Some say they were originally pressured by police.
DARRELL COLLINS, WITNESS: I told them over and over I didn't see it happen. They put what they want to put in that statement.
MATTINGLY: Others have come forward implicating another man. One juror who convicted Davis questions her decision.
BRENDA FORREST, DAVIS JUROR: If I knew then what I know now, Troy Davis would not be on death row.
MATTINGLY: With only a week to his execution, critics of the case against Davis include 51 members of Congress, the Vatican and former president, Jimmy Carter.
UNIDENTIFIED MALE: We believe that in this particular case there's enough evidence to the contrary to prevent this execution taking place.
MATTINGLY: An online petition supporting clemency for Davis exceeded 200,000 signatures in five days. But state and federal courts have all upheld Davis' conviction. The former DA who prosecuted Davis says the courts got it right.
SPENCER LAWTON, FORMER CHATHAM COUNTRY DISTRICT ATTORNEY: I'm just disappointed that so many people have been led to believe that nobody has paid attention to these recantations. It is, as I explained earlier, simply not the case. It's just not the case. On what ground are the recantations more believable than the testimony in court? None. None.
(END VIDEOTAPE)
PHILLIPS: David Mattingly is joining us now live. David, you know, supporters of Troy Davis are asking for clemency, but who has the authority actually to do that in Georgia?
MATTINGLY: In the state of Georgia, the governor, unlike other states does not have the authority to grant clemency. That falls to the members of a Pardon and Parole Board.
That's where all the petitions that they are submitting today is going to be going to. That board is going to meet Monday and then they are going to have a very important vote to decide whether or not Troy Davis lives or dies.
PHILLIPS: David, do they have any reason to say they could be successful this time? I mean, as you know, clemency was rejected in 2008.
MATTINGLY: That's right. They did reject clemency in 2008. But now, the same board that they're going back to has three new members.
So supporters of Davis are hoping that those three votes will go in his favor and either delay his execution or commute his sentence to one of life in prison or life in prison without parole. Either of those situations would prevent him from being executed on Wednesday.
PHILLIPS: David Mattingly live for us right here in Atlanta, Georgia.
Coming up, a bicycle shop gets an unexpected drive through window when a motorist plows through the store and it's all caught on tape.
And Michele Bachmann, Mitt Romney, Rick Perry, controversial lawmen says they have all reached out to him. Sheriff Joe Arpaio joins me next live to talk elections, immigration and possibly who he will be voting for.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories now cross country.
Well, that's the jam band "Phish." They are back in their home state of Vermont last night headlining a benefit concert to help the victims of Tropical Storm Irene. Thousands of people turned out for the show.
And find a parking space with the help of social media. LSU says it's using Twitter and mobile phone apps now to help students avoid parking headaches. So far, more than 500 people signed up.
From Mission Viejo, California, a woman attempting to park had a really close call with customers at a bicycle shop. It's all caught on tape, too. Everyone is OK. The store just remodelled last week and may now need a few more upgrades.
Well, he calls himself America's toughest sheriff. Joe Arpaio's critics call him a racist. He was only fuelling Arizona's anti- immigration crowd. Well, now GOP hopefuls are reaching out to the controversial lawman. As a matter of fact, Michele Bachmann stopped by to see him yesterday.
Sheriff Arpaio joining me now live from Phoenix. So let me get this straight, Sheriff, Bachmann came to see you yesterday. Mitt Romney called you. Rick Perry reached out. You met with Herman Cain. So explain to me what's going on here? Are you the new king maker of the Republican Party?
SHERIFF JOE ARPAIO, MARICOPA COUNTY, ARIZONA: I don't know. In the past, I had four viable candidates running for president visit me in my tent city jail.
Unfortunately, none of them made it. Bush in 2000 asked for my endorsement. I was his honorary chairman. Romney years ago asked for it. I was his honorary chairman. I'm just a little old sheriff, but they seem to want my endorsement.
PHILLIPS: A little old sheriff making headlines on a regular basis. Don't try and down play your popularity now, Sheriff. Let's get down to business. So let me ask you, you have met with a number of these hopefuls, who impressed you the most?
ARPAIO: They are all good people running for president. Each one would make a good president. But, I'm not going to say, which one right now. I'm keeping my options open and see what happens in the near future.
PHILLIPS: So who has the best plan for immigration?
ARPAIO: Well, they are all talking about it. You know, I have my own plan, maybe I should run for president. But they all have their ideas. I'm locking them up here regardless of, you know, the 1070 or whatever. We are doing our job in my office, pretty proud of it.
PHILLIPS: You have made your opinions very clear. Out of all the candidates with whom you've met, who would you say runs closest to your beliefs? ARPAIO: Well, you know, I'm a Republican, conservative along with the people running in the primary. They seem to be very conservative. It's hard to say. Let's see what happens in the debates. Let them put the cards on the table.
PHILLIPS: All right. Let's get to the debate, then. Rick Perry, not a fan of your immigration law or the fence. Let's take a listen to what - we do not have the debate.
All right, apologize for that. But he's made it clear that he is not a fan of your immigration law. What do you say to Rick Perry? What did you say to Rick Perry when you chatted?
ARPAIO: Well, I had a long talk with him. He has his opinion. He's the governor. He's not the president at this time. So, he's been tough on immigration. He may not believe in the fence.
I believe in the fence only if you put them in jail when they hop the fence. You can have all the fences you want, they can get ladders to hop over them. I want them to go to jail when they hop the fence.
I'm very tough. All of them are saying let's secure the border. Then they say first, first. Yes. They don't want to lock up interiors. Use the border as an excuse. I don't go for that.
PHILLIPS: Joe Arpaio, it will be interesting to see who indeed you endorse obviously many candidates interested in your support. Thanks, Sheriff.
Well, coming up, mystery solved as to where the "Real Housewives" star, Michaele Salahi went. We've got it for you and Jermaine Jackson speaks out on the death of his brother, Michael and - responsible. Showbiz is next.
(COMMERCIAL BREAK)
PHILLIPS: Well, White House party crasher Michaele Salahi is back in the headlines again this time without her husband. But she does have long time guitarist of the rock band "Journey" in tow. A.J. Hammer with "SHOWBIZ TONIGHT" live in New York with the lowdown. This story just keeps getting better. More salacious as we go, A.J.
A.J. HAMMER, HOST, "SHOWBIZ TONIGHT": Yes, Kyra. These two really put the fun in dysfunctional, don't they? Michaele Salahi and Tareq are either headed their separate ways or involved in some of a kidnapped plot depending on who you listen to.
Now Tareq claimed yesterday that Michaele had been kidnapped and was being forced to call people and say she's OK. But it turns out, she may be heading for the open arms of the "Journey" guitarist, Neil Sean. Speculation is the pair has a loving, touching and squeezing kind of relationship.
Although Michaele told the Warren County sheriff only that she is with a good friend and where she wanted to be. Yesterday, Tareq was claiming that there was no way his wife wouldn't be acting faithfully and was asking the FBI to continue the investigation.
So Kyra, don't stop believing that Tareq may have to decide that he'll be all right without her, the only question remains now, Kyra, is who's crying now.
PHILLIPS: You are killing me. I'm very impressed though. Maybe one song came to mind. But you have just got the whole, as we like to say, album. Exactly, pulling out the old 8-track.
All right, the FBI on the case of Scarlett Johansson and this x-rated picture. What is the story here?
HAMMER: Yes, I can't seem to say this enough, if you do not want naked pictures of yourself to find their way out in cyber space, do not take naked pictures of yourself, period, end of story.
Now it seems that Scarlett Johansson's phone had been hacked and some partially nude photos, not x-rated, but partially nude have been posted online. Her lawyers have been going around telling everybody they will sue anyone who publishes the photos.
But you know, obviously that's not going to stop everyone. The FBI is reportedly investigating a hacker group that's been targeting some of Hollywood's female stars.
This group reportedly also targeted Vanessa Hudgins and Jessica Alba, but you know, separate from the obvious privacy issues, Kyra, is it really scandalous anymore when nude photos get out? Isn't it so 20th Century?
PHILLIPS: You make a great point. Don't take them if you don't want them out there because you know what, everything gets out there nowadays.
All right, Piers Morgan had an interview with Jermaine Jackson as you know. He's got a few doubts about Dr. Conrad Murray and the (inaudible) from the death of his late brother, Michael.
HAMMER: Jermaine was very direct with his feelings about Dr. Murray's involvement. Watch what he told Piers Morgan on "PIERS MORGAN TONIGHT."
(BEGIN VIDEO CLIP)
PIERS MORGAN, HOST, "PIERS MORGAN TONIGHT"": Is it possible knowing Michael that he could have just ordered and demanded that Conrad Murray give him the drug? Murray is going to claim that tried to resisted, but eventually succumbed to pressure. Is that possible?
JERMAINE JACKSON, MICHAEL JACKSON'S BROTHER: Whether it's possible or not, being a doctor, you take an oath to care for your patient, not to kill them.
(END VIDEO CLIP)
HAMMER: Yes. This is just the start, of course, of the Conrad Murray news. We are going to be following the trial as it gets under way very, very closely both here on CNN and over on HLN, Kyra.
PHILLIPS: All right, A.J., thanks. If you want information on everything breaking in the entertainment world, A.J. has always got it every night "SHOWBIZ TONIGHT" on HLN 11:00 p.m. Eastern Time.
Coming up this morning in the 11 a.m. hour, Oscar winner Jennifer Hudson is addressing the National Press Club today on obesity and poverty. She'll be talking to Fredricka Whitfield about her new mission. That's today, CNN "NEWSROOM" at 11:00 a.m.
Michele Bachmann, political missteps and blunders. A former staffer speaks out. We're talking about in today's political buzz.
(COMMERCIAL BREAK)
PHILLIPS: Checking top stories now. The lawyer for two imprisoned American hikers says that filed the paperwork for their release on bail. Josh Fattal and Shane Bauer may have to wait until at least Saturday for an Iranian court to rule.
One trader blamed for an investment bank's $2 billion loss. A Swiss Bank, UBS is investigating and may have to post a trading loss for the third quarter.
Foreclosure filings jumped to 7 percent in August. Experts say the rise is due to lenders finally pushing through foreclosure paperwork following the robo-signing controversy.
"Political Buzz," your rapid-fire look at the best political topics of the day. Three questions, 30 seconds on the clock. And playing today, Democratic National Committee member Robert Zimmerman, Patricia Murphy, founder and editor of Citizen Jane Politics and CNN contributor, Will Cain.
All right, guys. Michele Bachmann's former chief of staff giving our Anderson Cooper an insider's perspective. Take a listen.
(BEGIN VIDEO CLIP)
RON CAREY, BACHMANN'S FORMER CHIEF OF STAFF: Her impulsive nature coupled with the fact that she sometimes doesn't digest information as carefully as she should leads to these kind of impulsive statements that sometimes are just off the mark enough that it makes her into more of a provocative, controversial figure.
(END OF VIDEO CLIP)
PHILLIPS: That's her former staffer. So what does this tell us about the state of her campaign? Patricia?
PATRICIA MURPHY, CONTRIBUTOR, DAILY BEAST: Well, I think that this tells us that Michele Bachmann I think is something that we already knew. There's a fine line between being passionate and being impulsive.
When she is passionate, she really lights up the stage, she really grab the crowd. When she's impulsive, she goes a little bit haywire. She gets her facts wrong. But something you can get away with it as a House member, honestly, you cannot get away with as a presidential candidate.
Until she becomes more disciplined, this is always going to hold her back. It's always going to keep her down. She'll get better with experience. She's only been in the House two and a half terms. But she needs to get much, much better, or else she'll never get any higher than she's going now.
PHILLIPS: Robert?
ROBERT ZIMMERMAN, DEMOCRATIC NATIONAL COMMITTEE MEMBER: You know what, that chief of staff also told Anderson that she reads 80 or 90 percent, but then she leaves off 10 or 20 percent that could oftentimes change the outcome of her conclusions. It's not just that Michele Bachmann engages in so many false statements, most recently, HPV vaccine. So many false statements. But also deceitful and hateful, sometimes comically inept comments.
It shows she's not fit for public office. Certainly not for the presidency. Ultimately, she's nothing more than Rush Limbaugh on drag. I mean no -- and I mean no disrespect to the transvestite viewers who are watching us.
PHILLIPS: Wow. Will.
WILL CAIN, COLUMNIST, THEBLAZE.COM: You know what it says, Kyra? It's says it's time for Michele Bachmann to go away. And listeners and viewers need to understand, Robert's criticism comes from the opposite side of the aisle. Mine comes from the same side of the aisle.
Somehow Michele Bachmann has convinced conservatives that she and she alone is the only principled conservative out there. But almost every time she speaks, she shows ignorance or infidelity to concepts such as free market capitalism -- promises of $2 gas -- to the concept of federalism, constitutional federalism by saying Mitt Romney's health care mandate at the state level is unconstitutional.
We can do better than Michele Bachmann. We need to do better than Michele Bachmann. It's time for her to go.
PHILLIPS: All right, guys. CNN contributor James Carville, as we all know he never holds back, and he's telling the White House to, quote, "panic." Here is what he's writing or what he wrote rather in an opinion piece on CNN.com. You can see the entire article on our Web site.
"Fire a lot of people. For god's sake. Why are we still looking at the same political and economic advisers that got us into this mess? It's not working."
Who should President Obama fire first, guys? Robert?
ZIMMERMAN: Now, look, I'm a James Carville devotee, but I've got to respectfully disagree. Because it's late to start firing people. It sends the wrong message and also it creates a one-day story and the Senate confirmation hearing that could go on for months.
The bigger issue is it's not too late to fight. And that's what James also points out in his column. The president has an important program to fight for the American Job Act and he should be standing with, continue to be with business -- business leaders both large and small to show how he's working with them to help them in the economy.
PHILLIPS: Will?
CAIN: So Robert, you don't think it's a good idea for your leader to panic? That's interesting.
You know I would tell James and President Obama to relax. Don't worry about it. We'll take care of this for you. I'm a big Dallas Cowboy fan. And I have seen Jerry Jones cycle through coaches and offensive coordinators and defensive coordinators for years.
Don't take very long until you realize it's the boss who's at fault here. Until Carville and Obama, the voters will take care of this. We'll fire them all. Just give us a little time here.
PHILLIPS: Patricia?
MURPHY: Well, you know, if you look actually at the White House, a lot of the faces have changed. He already has fired a lot of his advisers. He's got new press secretary, new chief of staff, entirely new economics team. So it's not the people around him. I have to actually agree with Will. It is the president.
And instead of firing people, he actually needs to start building relationships especially with Democrats, moderate Republicans. It's striking to see this president is so isolated in Washington. You go to the Hill, there's nobody on his side. It is a little bizarre actually. He needs to not worry so much about getting rid of people, he needs to get people on his team.
PHILLIPS: All right, guys --
(CROSSTALK)
ZIMMERMAN: If you could find moderate Republicans we'd be very grateful.
MURPHY: Well, that's -- that's a whole another problem he's got.
PHILLIPS: All right, guys. Final question. You just heard my interview with Sheriff Joe Arpaio. He says that he's talked to Bachmann, Perry, Cain, Romney. Sounds like he's positioning himself to be a GOP kingmaker.
Twenty-six seconds each on this one. What do you think? Does his endorsement matter? Will?
CAIN: Not really. I mean to the biggest group of voters out there, independents, marginal political watchers, they don't even know who Sheriff Joe is. And to those who do know who Sheriff Joe is, it doesn't -- it's not like he comes with the cleanest set slate that he has, all positives. He comes as a controversial figure. So his endorsement I don't suspect isn't going to amount to much of anything.
PHILLIPS: Robert?
ZIMMERMAN: Hey, look, in a Republican extremist culture where Anne Coulter and Grover Norquist are intellectual heavy weights, where Donald Trump becomes an important figure in politics, or Sarah Palin matters, of course Sheriff Joe Arpaio fits in that extremist, irresponsible pattern of being a player in the Republican Party.
I'm waiting for the next -- for the Republican political forum headed by Snooki and The Situation.
(LAUGHTER)
PHILLIPS: Patricia, bring us home.
MURPHY: It's just hard to compete with that. I'm going to agree with Robert -- in that I think that this Sheriff Joe's endorsement will matter a little bit for somebody like Rick Perry who got booed, almost booed off the stage on his immigration position. He needs to shore up his support with conservatives on that issue. An endorsement from Sheriff Joe I actually think would help him, it would also help Mitt Romney. Anybody who needs to prove a point can prove it by getting him on board.
PHILLIPS: Boy, Robert was a little -- what's the word today? Talking about drag queens and Snooki? You're a little off the chain today. Wouldn't you say, guys?
MURPHY: Woke up on the wrong side of --
PHILLIPS: Really? What was in your coffee there, Bob?
ZIMMERMAN: The Republicans bring it out in me, what can I tell you?
(LAUGHTER)
MURPHY: He might be panicking. That might be what's going on.
PHILLIPS: Oh, OK, guys.
MURPHY: I say it with love.
PHILLIPS: We will talk again.
Well, it's the highest military decoration and today the president awards the Medal of Honor to a U.S. Marine. He saved the lives of three dozen of our U.S. troopers.
Barbara Starr is at the Pentagon with more -- Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, good morning to you, Kyra.
You know last night former Marine Corporal Dakota Meyer sat down at the White House and had a beer on the patio with the president of the United States. We have a photograph of that meeting today.
He will stand beside President Obama in the White House as he is awarded the Medal of Honor for this remarkable bravery under fire.
It was September 2009 in Afghanistan. Dakota Meyer and his teammates came under ambush. Meyer and another Marine got in a truck. Meyer in an open (INAUDIBLE), they drove five times back and forth into the kill zone where the other troops were under fire to try and save who they could at great risk to himself.
The question now though is should Dakota Meyer and his men ever have been put in this position? There was a major army investigation after this fire fight, Kyra. And it found that these guys basically were left out there for almost six hours.
They repeatedly called for help, they called for artillery, they called for air support, they called for reinforcements. All of it came late. Three letters of reprimand to others for failing to respond quickly. The unit was cited back at headquarters for complacency and poor training.
Listen to Dakota Meyer and what he says about his own actions.
(BEGIN VIDEO CLIP)
SGT. DAKOTA MEYER, U.S. MARINE CORPS: I definitely don't see myself as a hero. I see myself as the furthest thing from a hero. I went in there to get my guys out alive. And I failed. So I'm more of a failure than a hero.
(END OF VIDEO CLIP)
STARR: This young man being put in this position at the age of 21 in 2009. Tried desperately to save his friends. They all called for reinforcements. Those reinforcements didn't come. And Dakota Meyer went into the breach, into the kill zone five times to save who he could.
He has also repeated called for others to be recognized for their valor on that day. A very tough situation -- Kyra.
PHILLIPS: All right. Barbara Starr, live from the Pentagon. Pretty tremendous honor.
Well, lots of questions but very few answers. I'm talking about that mysterious light that lit up the sky. And later the 911 switchboards. We're investigating.
(COMMERCIAL BREAK)
PHILLIPS: Is that a Clint Eastwood movie or is that UFO music? I'm trying to figure it out. ROB MARCIANO, AMS METEOROLOGIST: It's something spooky. I'm scared.
PHILLIPS: Or X-Files.
(LAUGHTER)
PHILLIPS: It's a combination of all the above. Bottom line, something freaky going on up in the sky. And Rob Marciano is all over it.
MARIANO: Yes, you know, a bunch of calls came in, well, not here, but you know various officials and authorities across the southwest.
PHILLIPS: I know one who was just bombarded, right?
MARCIANO: Yes, totally lit up. People saw a fire ball basically cross the sky.
Here it is, caught on somebody's video camera or camera phone. Thank goodness for those nowadays.
Phoenix, just outside of Phoenix, in an area called Chandler. There's a high school football game going on. They saw this streaking across the sky. And basically thought it was a UFO or something, maybe a satellite that was falling through the atmosphere. And we do have one satellite that we think is going to fall through the atmosphere in the next couple of weeks. But that probably wasn't it.
It probably wasn't a UFO or a flying saucer. Some of those videos show some purple or blue and green fluorescent. And that indicates maybe some magnesium, some nickel, so probably just some sort of rock from out of space, rocketing through the atmosphere, creating that friction and just lighting up before it fell somewhere. We don't really know.
PHILLIPS: I think we like more the mystery, instead.
MARCIANO: I got to say last --
(CROSSTALK)
MARCIANO: I saw this movie, I think it was called "Battle L.A.." or "Battle for L.A." where there were meteorites coming to our earth, and they slammed into the Pacific Ocean. And they came out of the water.
PHILLIPS: And people came out and people just started going crazy.
MARCIANO: Yes. It obliterated L.A. But God bless the U.S. military. They came up and they were able to keep it --
PHILLIPS: They saved the day.
MARCIANO: They saved the day.
PHILLIPS: Very good. So L.A. is safe is what you're saying?
MARCIANO: It looks that way.
PHILLIPS: OK.
MARCIANO: We've watching the tower cameras on the Santa Monica pier, we haven't seen any aliens come out of the water just yet.
PHILLIPS: Thank you, Rob.
MARCIANO: All right.
PHILLIPS: While we're fighting the myths, we're also fighting childhood obesity. As part of a plan to improve your health, the governor of Michigan saying that he will direct doctors to track children's body mass index using height and weight measurements. Then report the results to a state registry. The children would remain anonymous.
So only the BMI numbers would be reported and then the whole idea is to get doctors, parents and kids talking about the dangers of being overweight.
Missoni for Target. The collection was literally wiped out this week at Target. But don't worry. There's now another place that you can shop and Alison Kosik has the scoop.
(COMMERCIAL BREAK)
PHILLIPS: Alison Kosik, I have to admit I've never been part of the stampede but I have bought some of the Missoni products, the bathing suits in particular, good deal and they last a long time.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes. They do. I'll keep that in mind next time they're actually in stock again.
PHILLIPS: Where did it go?
KOSIK: Yes, but Missoni is really the -- it's really the hot ticket at Target these days, and you know what? It also is an example of capitalism at its finest. People are trying to make a quick buck.
What I'm talking about is this secondary market for the line of Missoni for Target item, where you can go on eBay and Craigslist and get some of these items. But if you go there you'll check out the huge mark ups there. You can get a Missoni comforter set selling on Craigslist for 200 bucks. It originally went for 80 bucks.
There's a hat there selling for $75 originally for 25. But just because it's listed at these prices it doesn't necessarily mean they're selling that high. CNN Money says there's one girl who bought a couple of things for herself. But when she saw the opportunity to make some money, she decided, you know what, I don't know those items as much as I need the extra cash.
And she listed them for sale. But if you ask Target, they say if you want the best deals and an authentic product, buy those Missoni items from Target. But you know what the problem is? At this point many of those items are sold out. Target says it does plan to restock but could be a bit sporadic and you're not going to get every item at every location -- Kyra.
PHILLIPS: What you've got to do is you've got to get the scoop on the day they bring in all the new stock, there you go, and you show up right when the door is open. It's like Christmas.
KOSIK: Be the first in line at 4:00 in the morning.
PHILLIPS: Yes, exactly.
KOSIK: That's what I'll do.
PHILLIPS: All right. We're seeing a nice pop in the stock market, right?
KOSIK: We are. We're off the highs of the day. The Dow jumped 150 points right away at the Opening Bell. What's happening is central banks in the U.S., in Europe, in Japan, in Switzerland, they're all working together to help prop up the economies.
In Europe, what they're essentially doing is they're pumping dollars into European banks and businesses. This of course is after all these debt fears have really heated up this week with talk of Greece possibly defaulting on its debt.
So yesterday francs in Germany calmed some fears, sparking a rally yesterday saying Greece is going to stay in the euro zone. And we're seeing the rally continue today as money is being put where their mouths are -- Kyra.
PHILLIPS: Alison, thanks.
Well, if you don't know your -- her name, rather, you certainly know the -- I guess the stars that she dresses. And now you can actually get the look, too.
Alino Cho was behind the scenes with Rachel Zoe.
(COMMERCIAL BREAK)
PHILLIPS: Well, Ann Hathaway, Cameron Diaz, Kate Hudson, they were all styled by Rachel Zoe. She dresses them for the red carpet and she's a celebrity, too. Now she's embarking on another new project, and calls it the "Scariest Thing She'll Ever Do."
(BEGIN VIDEOTAPE)
ALINO CHO, CNN CORRESPONDENT (voice-over): On TV, she's watched by millions on the "Rachel Zoe Project."
RACHEL ZOE, CELEBRITY STYLIST/DESIGNER: I am six months pregnant and I'm at the busiest point in my career right now.
CHO: On the red carpet it's her stylish touch that's front and center. Rachel Zoe makes some mint dressing A-list stars in designer clothing. Now those celebs are beginning to wear designs by Zoe herself.
(On camera): You've been dressing celebrities for so long, when Jennifer Lopez --
ZOE: OK. I got still got -- I get chills. I can't -- because I know where you're going right now and I can't even talk about it.
CHO (voice-over): Jennifer Lopez in a white Rachel Zoe tuxedo dress. That's right. Zoe's first collection for stores on the racks this fall.
(On camera): It's a big leap to go from stylist to designer.
ZOE: It is and I have very high expectations of myself.
CHO (on camera): You call it the scariest thing you've ever done.
ZOE: One hundred percent, it's the scariest thing I've ever done. This isn't something where I'm dressing someone and it's the Oscars. It's a very constant, constant process.
CHO (voice-over): She's in Bloomingdale's, Nordstrom's, Saks Fifth Avenue, and every Lehman markets in America. Something that company has never done for a first-time designer.
And the clothes, priced between $200 and $600 are already selling out.
JIM GOLD, PRESIDENT, SPECIALTY RETAIL, NELMAN MARCUS: Because she works with all of the collections, because she's in a fitting room all day long with her clients, and she gets it.
ZOE: Everything has a hint of glitz.
CHO (voice-over): Vintage inspired. Something Zoe is known for.
(On camera): You were inspired in part by the Charlie girls?
ZOE: Yes. I love Charlie girls.
CHO (voice-over): Yes. That's Charlie girl, the '70s is this 40- year-old's favorite decade. Her heroes, legendary designers Austin and Yves Saint Laurent.
ZOE: And the tailoring is -- I mean the fit is so tremendous.
CHO (on camera): You always say, if it doesn't fit, don't buy it.
ZOE: God, no. Don't. And I stand behind that. Unbelievable.
CHO (voice-over): No.
ZOE: Maybe? We'll see, we'll see.
CHO (voice-over): What is certain is that Zoe is a mother first. Her latest venture a family business. Her husband is the president, her new son Skyler, the heir apparent. That's if he's interested. Zoe says styling is still her first love.
ZOE: I always say I think I'll be dressed in Jennifer Gardner when I'm 75, like I really do. I actually -- I think she's actually, you know, she'll have a premier, so I'm sorry, again, I'm coming, I nearly died over them coming. I've got to go see my grandchildren.
(END VIDEOTAPE)
PHILLIPS: And you get an exclusive look at runway shows, fashions and trends on "Fashion Backstage Pass." The CNN special with Alina Cho airs this Saturday, September 17th at 2:30 Eastern Time.
(COMMERCIAL BREAK)
PHILLIPS: Looks like our Jim Acosta had a chance to talk with GOP frontrunner Rick Perry.
I'm sure that was interesting, Jim?
JIM ACOSTA, CNN POLITICAL CORRESPONDENT: Yes, you know, it's a sign, Kyra, that he is starting to act like a frontrunner, that he's not so worried about something blowing up in his face and hurting him in the polls. He went to Virginia yesterday which is not a terribly important primary state, but it is a battleground state in the general election.
And after he gave a speech to an audience of Virginia Republicans, he took some questions. So we thought we'd ask him, are you feeling a little overconfident these days when you're campaigning in places like Virginia? And here's what he had to say.
(BEGIN VIDEO CLIP)
ACOSTA: It seems as if you are already looking past the primaries into the general election. Aren't you being a tad overconfident?
GOV. RICK PERRY (R), PRESIDENTIAL CANDIDATE: I understand who the opposition is in this election cycle. And there are seven other individuals on that stage who are quite capable. But the fact of the matter is, my focus and I think all our focus should be is on the problem that's facing America today. And that is the administration that is trying to spend their way to prosperity.
(END OF VIDEO CLIP)
ACOSTA: And you know what's interesting about that comment, Kyra, is we're asking him, shouldn't you be paying attention to your other rivals in the GOP field? And he takes that question and pivots back to the president, which is what frontrunners do. And I should mention he is in Iowa today so he is keeping an eye on his right flank.
PHILLIPS: All right. Well, we'll keep an eye on him. And of course I know you will as well. We'll talk more, Jim. Thanks.
ACOSTA: You bet. PHILLIPS: Well, your next political update in just about an hour. And a reminder for all the political news, you can always go to our Web site, 24/7 CNNPolitics.com.
Fredricka Whitfield in for our Suzanne Malveaux. Hopefully is making her way back from Afghanistan, right?
FREDRICKA WHITFIELD, CNN ANCHOR: I think she's begun her journey.
PHILLIPS: There we go.
WHITFIELD: That's right. All right. Good to see you, Kyra.
