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NBA Talks Break Off; Libya's Daunting New Challenges; Allied Air Strikes Led to Death; Ending NATO Mission in Libya; World Reaction to Gadhafi's Death; Obama's Role in Gadhafi Death; Murray Trial: Prosecution Set to Rest Case; Fed-Up Flight Attendant Gets Probation; Getting Gadhafi's Money; Moammar Gadhafi and 2012; Gadhafi's Final Moments; Syrian Protesters: "Your Turn, Bashar"; Clinton Pushes Pakistan; Senate Blocks Votes On Jobs Bills

Aired October 21, 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: It's the top of the hour. After 42 years, Libyans awaken this morning to a new post-Gadhafi era free of the murderous tyrant.

People celebrated into the morning hours firing off guns, blasting car horns and tomorrow, Libya's liberation will be formally declared and the transition to democracy begin.

A gruesome photos and video of his last moments are raising questions about how he died. Was he killed in crossfire as the rebels claim or was he executed? The U.N. Human Rights office wants an investigation.

Meanwhile, Gadhafi's death is putting other Arab leaders on notice. In Yemen and Syria, anti-government protesters chant that their leaders are next.

We're covering all the angles from the Pentagon to Tripoli from London to the White House. We're tracking every detail surrounding the death of Gadhafi.

Let's begin with Ivan Watson. Ivan, Libya now faces two massive challenges, rebuilding from war to reinventing itself as a democracy. What's the first step for the transitional government?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Well, first they say they are going to celebrate, liberation day on Sunday they say in the eastern city Benghazi where the rebellion first erupted last February. Then they have to get to work appointing a new interim prime minister.

And he's going to have to start to establish some kind of cabinet of ministers, a new government basically over the course of the next month. And then of course, there is the destruction, a lot of cities and towns damaged here in Tripoli.

Many people say they no longer have running water from the city municipality. These are all big questions that are going to have to be wrestled with in the days and weeks and months ahead here.

PHILLIPS: Lots of questions about Gadhafi's death still, Ivan. What are you hearing from people there?

WATSON: Well, we just came from Friday prayers and may be able to hear the call for prayer from a mosque right now. Some people were very happy at Gadhafi's death and saying that they gave prayers of thanks today. Others said they had some misgivings about the way he died. Take a listen.

(BEGIN VIDEO CLIP)

WATSON: Are you happy with the way Gadhafi died?

UNIDENTIFIED MALE: No, to be honest. We are Muslims. We don't like this to be happening. It's captured as a prisoner so we would like to take him to court and he has his judgment. And at the end, he will be dead, but not this way.

(END VIDEO CLIP)

WATSON: And Kyra, there's another silent community here that we're not really hearing from. I was here a little more than two months ago in Tripoli when crowds of people would chant, Gadhafi's name, they were supporters of him.

One man I spoke with who said he's afraid to speak in public says that last night his mother was crying when she saw images of Gadhafi's death. And that he was ashamed at the way the man who ruled this country for more than 40 years had died. Those people are afraid to come out in the streets right now -- Kyra.

PHILLIPS: Ivan Watson live from Tripoli. Ivan, thanks.

Let's turn to the military mission in Libya now. We hear that leaders of the NATO military alliance will actually meet this morning to discuss an end to the mission there in Libya.

Chris Lawrence is at the Pentagon. So Chris, what are the new details that we're learning first of all about the air strikes that actually led to Gadhafi's death?

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Yes, Kyra, we're now learning that Gadhafi sources were isolated in one part of the city of Sirte and that NATO had been keeping surveillance on them for some time.

About 8:30 in the morning, they make a break for a large convoy, about 75 vehicles, headed out of Sirte, driving very, very quickly. NATO says a lot of these vehicles were heavily armed. They scrambled the French fighter jet and American predator drone.

They hit one of vehicles in the convoy, which disrupted the convoy. Now, some of the images, the later images we would see, pictures, video, are extremely graphic. So we want to warn our viewers.

But after this convoy is disrupted, some of the people, Gadhafi included, fled on foot and ran away. The rebels say they found him and some of his supporters hiding in a drainage ditch. There was some sort of confrontation, shootout between the two.

And that's when the story sort of diverge the rebels, the NTC says that Gadhafi was killed in the crossfire of a shootout, but some of the video and images show that Gadhafi was still alive, being manhandled on the hood of a car.

So there is some discrepancy between what the official line is from the NTC and sort of what our eyes tell us from the video -- Kyra.

PHILLIPS: And meanwhile, what are you learning now about what's next for the NATO mission?

LAWRENCE: You mentioned a meeting. I am told that that meeting is going to start in about 25 minutes, in which they will be discussing the perimeters of how to end the military mission in Libya. And then the question will be where does NATO go from here?

A British official says it could take the shape of NATO providing some sort of surveillance, intelligence, reconnaissance assets to really help Libya secure not only its land borders, but its territorial sees and air space above it.

And then probably some sort of assistance with training to try to help rebuild the Libyan army and help some of the rebels gain control of some of the militias that have been operating there in Libya.

PHILLIPS: Chris Lawrence at the Pentagon. Chris, thanks.

The death of a dictator, a tyrant, that's how Gadhafi's demise is being described in newspapers around the world this morning. In one particular headline and photo is pretty graphic.

CNN' Zain Verjee is following all the reactions from London, Zain?

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Kyra, let's go straight to the headlines and see what they are saying today. "The Sun" newspaper, that's a tabloid here in the U.K. says this, "That's for Lockerbie, Gadhafi," and it does have a gruesome picture of the former leader on front page.

It says tyrannical Colonel Gadhafi called Libyan people rats when they rose up against him, but he died like one himself yesterday after being cornered in a stinking drain.

"Gulf News" says this, "He refused to see the writing on the wall." It says Gadhafi's violent end in Sirte was inevitable. A man of such pride and self belief would never be taken alive. The war is all but over, Gadhafi is gone. Now begins the real battle for all Libyans and that battle is going to be a successful reconstruction, how to move forward, how to reconcile all the bitterness and divisiveness that exists between the different factions, the different tribes and even the differences internally within the NTC between the liberals and also between the Islamists.

One big concern, Kyra, has been the amount of weapons that are unaccounted for that are awash all over Libya, something like 10,000 shoulder fired missiles missing and it is of a great concern to much of the world.

PHILLIPS: Well, Zain, we've been talking a lot about what's next and what this means for the Arab region. We've mentioned Syria, Yemen, the anti-government protests taking place there.

VERJEE: The spotlight right now really is on Syria and Yemen. The first thing to consider is, what's happened in Libya, the death of Moammar Gadhafi has proven to be inspirational. Many are wondering how much it is going to fuel a lot of the uprisings in Syria and in Yemen and whether it is going to reinvigorate them or not.

The NTC has actually kind of been the solidarity with the Syrian opposition. They have really been supporting them to the extent that they can. But it's also important to keep in mind, Kyra, many analysts are saying that Syria still has a very strong, a very powerful grip on its security apparatus.

And that it's still really wields a tremendous amount of power. There's no sign many say of the regime weakening and the middle class of Syria, the majority of it has to throw its lot in with the demonstrators that you're seeing on the street.

But I think the verdict is out. No one would have imagined Moammar Gadhafi would have been killed this way. So let's see what happens and how the Arab spring takes a turn.

PHILLIPS: We'll definitely be talking about it for months to come. Zain, thanks. Moammar Gadhafi is the third high valued target taken out during the Obama administration.

U.S. drones killed an al Qaeda leader less than a month ago and of course, U.S. SEALs killed Osama Bin Laden back in May. For the president, their victories tout as tough re-election is taking shape.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: You have won your revolution and now we will be a partner as you forge a future that provides dignity, freedom and opportunity.

WOLF BLITZER, HOST, CNN's "THE SITUATION ROOM": The Obama administration from your perspective deserves a lot of credit for this as well, don't they?

SEN. JOHN MCCAIN (R), ARIZONA: I think they deserve credit. The fact is if we had declared a no fly zone early on, we would have never had -- Gadhafi would have fallen at the beginning.

(END VIDEO CLIP)

PHILLIPS: Dan Lothian is at the White House. Dan, how much credit can the administration actually claim in Gadhafi's death this morning?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, I think, you know, they can claim some credit and quite a bit of credit for the operation that eventually led to his death. What you're hearing from the White House is that this is a vindication for their strategy in Libya.

As you know, the president had been criticized for not being decisive enough in going into Libya, but the strategy had always been that the U.S. would be in this as part of a supporting role with the coalition, the NATO coalition, that there would be no U.S. boots on the ground.

So the administration seeing this as a vindication of that strategy, but also, as a victory for the Libyan people who rose up at great risk and have now moved through what has been a very painful chapter in their history. Take a listen to what the vice president told Candy Crowley.

(BEGIN VIDEO CLIP)

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES OF AMERICA: One bad guy, one really tough guy. He for 40 years had folks under his thumb. And he's dead and going to give the people of Libya their first chance in four decades to actually put together their own government and have a little bit of freedom, little bit of opportunity.

(END VIDEO CLIP)

LOTHIAN: This is the end of a huge chapter. It's not the end of the book and the White House admitting that there will be some big challenges as this transitional government moves towards democracy.

As the president himself pointed out, there will be some difficult days ahead, but that the U.S. and other countries, the international community will be there to help out the people of Libya -- Kyra.

PHILLIPS: Dan Lothian at the White House. Dan, Thanks. Coming up, our Dan Rivers is in Sirte where Gadhafi was found hiding in a drainage ditch. We'll talk to him in 10 minutes.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories cross country now, in New York two men implicated in an alleged Iranian plot to assassinate Saudi Arabia's ambassador to the U.S. have been indicted. Arraignment for one of the accused is set for Monday. A co-defendant remains at large.

In Los Angeles, the prosecution is expected to rest its case against Dr. Conrad Murray later today. Murray is charged with involuntary manslaughter in the death of Michael Jackson. Yesterday prosecution witness Dr. Steven Shafer testified that Murray should have realized Jackson had stopped breathing. And Steven Slater, the former JetBlue flight attendant who earned instant fame for his dramatic exit from an airplane last year was sentenced to a year of probation. Slater must also pay $10,000 to the airline to repair the emergency evacuation shoot that he used.

And a reminder, Cain is expected to defend his much criticized 9-9-9 tax plan in a speech this hour. Those opposed to the proposal say it puts a burden on the low income.

Live pictures of his bus right now as Republican candidate is expected to explain how he says that's just not true. We're going to bring you the Cain speech live from Detroit as soon as he steps up to the mic.

(COMMERCIAL BREAK)

PHILLIPS: With Moammar Gadhafi dead, the new Libyan government faces a big challenge tracking down his assets. CNN'S Felicia Taylor is in London. So how much money are we talking about, Felicia? Put it in perspective for us.

FELICIA TAYLOR, CNN BUSINESS CORRESPONDENT: We're talking about billions and some of the estimates are close to about $160 billion. That comes from the Libyan Central Bank and other firms such as Global Witness.

Last September of 2010, Global Witness had leaked a document that was leaked to them rather uncovered a portfolio that was worth about $65 billion and that was on behalf of the Libyan Investment Authority.

This is going to give people somewhat of an idea of the breadth of investments that Moammar Gadhafi had throughout the world. So take a look at what some of those investments were.

With cash and savings deposits held, it was about $20 billion just sitting in cash and savings, which an enormous amount of money. When you take a look at some of the equity portfolio that also was vast throughout the world, we can look first at some of the largest holdings.

In Italy, he had a large in a company called Unicredit, which is about $1 billion and Eni, which is about $900 million and when you take a look thrashers that are this big, you have to question what the companies were thinking to know that this kind of tyrant was investing in their companies.

Because when they are this large, the company does know who that largest shareholder is because it's going to amount to about -- between 5 percent to 7 percent. When we look at a little bit smaller, in Germany at Semens at $500 million, but again, very large.

And then in the United Kingdom, Pearson PLC, which publishes the "Financial Times" and the "Economist," it was about $400 million. In the United States, many different companies were held in a portfolio. General Electric was just one of the largest ones at $250 million.

But again, he had companies like Citigroup, J.P. Morgan Chase, Home Depot, many different equities in this portfolio. When it comes to the bond portion of the portfolio, that too was enormous, $50 million in Italy, $20 million in Spain, $32 million with Lloyds Bank here in the U.K. and $20 million with Bank of America.

So this just gives you an idea of the international scope of the investments that Moammar Gadhafi had throughout the world --Kyra.

PHILLIPS: Felicia, thanks so much. Actually right now in Libya, they are still celebrating across the country because a dictator is dead.

But what about here in the U.S.? Beyond the gory pictures and the video, do American voters really care? Joining us now is CNN's senior political analyst and former presidential adviser, David Gergen.

He actually wrote an op-ed on this last night. We're reading it, David, and I was seeing what your thoughts were and also looking at a different thought coming from historian Lee Edwards.

He was writing about Gadhafi's death is a wake-up call for GOP candidates who have largely ignored foreign affairs in their race for the White House. Do you agree with that in any way?

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: No, not really. I do think the president is going to benefit. He didn't get a huge spike with Bin Laden so he's not going to get a big spike with Gadhafi.

But I do think while he's not going to lift his polls very much, I do think it fortifies the president for the general election. Because the Republicans were going to run him as a weak candidate, a weak commander in chief, if you will, someone who is not willing to sort of see things through and doesn't believe in American victories.

He's brought a different approach, been divisively called leading from behind, but in the case of Libya seemed to work. And I think his party is going to be and he will be held by the notion that he is taken a much less, quote, "reckless approach to foreign policy."

That's what they accused of George W. Bush of and yet they've gotten these results. They've gotten Bin Laden. They've got Awlaki and now they've gotten Gadhafi. Those are significant achievements.

I don't think it's helping much in the polls, but I do think it helps him with the underlying sense of confidence as a good strong foreign policy leader. Ironically, he ran on domestic policy, but foreign policy seems to become his strength.

PHILLIPS: All right, here's something interesting. OK, taking that to heart, you also wrote and I'm looking at your article here that in second terms, presidents drift more toward foreign policy as a way to bolster legacies. And that Obama is going through that cycle a bit quicker. So let me ask you, does this mean that Obama is recognizing or acknowledging something here, a possible farewell?

GERGEN: I sort of don't think he recognizes it as a farewell. But I do think what he's found is in foreign policy, you are the leader of the strongest army on the planet. You do have this enormous authority still in the United States.

You do not have the restrictions against you so you can get some things done whereas in domestic policy, you know, it's much, much tougher to get accomplishments. And from the White House's point of view, this is sort of a bitter sweet day because they are proud of what their foreign policy.

And yet on the domestic side, Kyra, their polls are going down, the capacity, the faith and confidence in President Obama and his team and handling foreign policy. There's a new poll showing he's going down.

He's down below 40 percent. He's never been below 40 percent on that question before. So he's -- he's not going in -- he's not coming out of this weekend in a triumphant position as president.

He is solidified. It does give him greater strength. He's going to be able -- I think he's getting to the place where he can almost take foreign policy off the table as a campaign issue. It's going to be a strength for him not for the other guys. The other guys thought it might be a strength for them.

PHILLIPS: David, thanks so much. You might want to see this, David. I'm being told we have new video now of Moammar Gadhafi that just got into the newsroom. We warn you it's pretty graphic. I have not seen it yet.

It's new images of his bloodied and half naked corpse. You can see there just lying in a cold storage unit. Apparently, this is on the outskirts of Misrata. His burial has been delayed we're being told. The United Nations is asking for an investigation also into how he was killed.

CNN's Dan Rivers is actually at the tunnel where Gadhafi was captured. Dan, I don't know if you've had a chance to see that video. Pretty gruesome stuff and we can talk about that in a second.

But first of all, you're at the spot where we saw the photos. This is apparently where he was hiding out. He was pulled from this tunnel screaming not to shoot, begging for his life. It looks like it turned into quite an attraction this morning a day after his death.

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, I mean, I guess you consider this as sort of combat tourism really. Every fighter in the area is coming here to spray their name on this wall and have their photo taken.

This is the precise spot where Gadhafi was found in the tunnel. Around us though is a pretty gruesome scene. On the center portion of the road there, you can see there are several bodies still lying around.

In fact, human rights watches we just spoke to the New York based human rights group says there are 95 bodies they counted in this little area here, all thought to be connected to the convoy that was trying to escape, containing Colonel Gadhafi.

And they are concerned about how he was killed. They say -- they are fairly certain he left here without any gunshot wound to the head. He was alive and they are fairly certain that the convoy that took him from here with NTC fighters was not involved in fighting subsequently.

That is add odds with what the NTC is saying, that the vehicle was involved in a shootout and he was hit in the head as they tried to take him to a hospital. He had already been hit once we're told.

Human rights watchers are saying, you know, if this is the case, one can -- and what a bleak way to start this new day in Libya with the former dictator being executed without the opportunity of putting him on trial. Now, we may never get to the bottom of exactly what happened here, but certainly that cell phone footage that came out yesterday evening clearly showed Gadhafi just up on this road here.

He was alive. He was bloodied, but he was alive with people beating him. You can see his shoes used to beat him, which is a huge insult in this culture. What happened next though is not clear. That is the big concern for human rights groups investigating this.

PHILLIPS: And as that investigation goes forward, Dan, I hope you don't mind since we just got this video in. It's new images of Moammar Gadhafi and his naked corpse right there in a cold storage unit on the outskirts of Misrata.

Dan, what can you tell us about the burial, the funeral? What do you know of what's going to happen next and also some may see these images as much of a tyrant as he was and think this is maybe not the most respectful way to handle the body and how the world is seeing him now?

RIVERS: Yes, I mean absolutely, in this culture here in Islamic culture it is customary to bury the body as soon as possible really, within 24 hours. Now that hasn't happened yet. There has been a delay for whatever reason, maybe they trying to figure out what they do with it.

They don't want a shrine to be created to his loyalists and incidentally we already talked to one guy in Sirte here who was clearly expressing his disgust of what had happened to this town and his implicit support to Gadhafi.

So there are people out there especially in Sirte who still support Gadhafi and it is a difficult issue for the new government here, for the NTC, what do they do with his body? I mean, presumably what they are hoping to do is bury him in secret somewhere out in the desert.

And they hope that will be the end of it. Human rights watchers -- there's a celebration here. Human rights watchers saying that they want an internationally independent autopsy of his body. Because one thing isn't clear, we still haven't gotten confirmation of how he died.

Was it from a gunshot wound to at the time head? What caliber weapon was used? Is there any evidence of what range he was shot at? Was it a point blank shot to the head or caught in the cross fire? Those are the kind of details they want to get to the bottom of. That's what's delaying the funeral and burial, I don't know.

PHILLIPS: Dan Rivers, there at Gadhafi's hometown of Sirte, Libya, where he was captured and killed. Dan, thanks.

It's 3:00 a.m., a national emergency requires the president's attention. So who do you want answering that phone call? Remember that during the 2008 campaign. It's still a good question and our political buzz weighs in.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now.

The killing of Libya's Moammar Gadhafi may put more pressure on another regional ruler, Syrian president, Bashar al-Assad. I spoke with former national security advisor, Gen. Jim Jones last hour.

(BEGIN VIDEO CLIP)

GEN. JAMES JONES, FORMER NATIONAL SECURITY ADVISER: What's happening over in that part of the world, I think, is the biggest thing that's happened since the dissolution of the Soviet Union. I mean, it's on that scale of importance. And, who knows where it's going to stop. If I were Assad, I would very concerned about what might happen next.

(END VIDEO CLIP)

PHILLIPS: And protesters took to the streets today in a number of Syrian cities. They chanted, "Gadhafi is gone, it's your turn, Bashar."

Secretary of state, Hillary Clinton, is in Pakistan today urging leaders there to go harder after terror groups. The U.S. has seen a greater movement by the militant, Haqqani network, from Pakistan and Afghanistan.

And the Senate has blocked votes on two jobs bills. Both bills were part of President Obama's broad jobs package.

"Political Buzz" now. Your rapid fire look at the best political topic of the day, three questions, 30 seconds on the clock, and playing today, CNN contributor, Maria Cardona, Patricia Murphy, founder and editor of Citizen Jane Politics, and CNN contributor Will Cain.

All right. Guys, Vice President Biden taken hit this week about comments suggesting if Republicans block a bill aimed at preserving police jobs, crimes, including rape, well, that that would go up.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Do you regret using a rape reference to describe Republican opposition to --

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: I didn't use it. No, no, no. What I said, let's get it straight, guys. Don't screw around with me. Let's get it straight.

UNIDENTIFIED MALE: You didn't use a rape reference?

BIDEN: No, let me -- listen to me.

UNIDENTIFIED MALE: I'm listening.

BIDEN: I said rape was up three times. They're the numbers. Go look at the numbers. Murder is up, rape is up, and burglary is up. That's exactly what I said.

UNIDENTIFIED MALE: And if the Republicans don't pass this bill, then rape will continue to rise?

BIDEN: Murder will continue to rise. Rape will continue to rise. All crimes will continue to rise.

UNIDENTIFIED MALE: Do you think it's appropriate for the vice president to use language --

UNIDENTIFIED FEMALE: We've got to go. I'm sorry. We've got to go.

(END VIDEOTAPE)

PHILLIPS: Well, does Biden have a point, you guys, or does this talk hurt Obama in 2012? Will.

WILL CAIN, CNN CONTRIBUTOR: Well, let's set aside the fact that the FBI just put out statistics last month that said we're in a middle of the nationwide crime downturn. Violent and proppy (ph) crimes are down three to six percent. Let's just set that aside for a moment and let's follow the vice president's logic. I have an idea.

Let's put one million police officers on the streets of flint, Flint, Michigan where the vice president was speaking. Let's put one million officers, because surely, that will reduce crime. You see, this is the logic of a simpleton because it doesn't take into account the concept of competing values, like do you want to put your people into abject poverty or simply just in the middle of an economic -- (BUZZER) -- downturn under the threat of rape.

PHILLIPS: Maria. MARIA CARDONA, CNN CONTRIBUTOR: Yes, absolutely he has a point, and no, I don't think it's going to hurt President Obama. What he said is statistically and actually factually correct. Crime is up in Flint. Crime is up in Camden. It's also happening in Richmond and Oakland and San Jose and in all of these other big urban cities around the country.

And what's more is Americans understand that. It is -- it absolutely follows if you put less police officers and less first responders on the street, Americans are going to be less safe. That is not something that is a stretch. Americans get it. And I think that they will respond -- (BUZZER) -- and understand that.

PHILLIPS: Patricia.

PATRICIA MURPHY, FOUNDER & EDITOR, CITIZEN JANE POLITICS: This is not going to hurt President Obama among the voters that Joe Biden was talking to. This is the Democratic base that he's talking to and reaching out to. And what he's saying is that if the Republicans block this jobs bill and the jobs bill has money for first responders in it, has money for local police in it, if the Republicans don't pass it, there will be more crime.

That is what -- that's kind of a tough message that Democratic activists want actually Obama to say. Obama is not getting quite tough enough for these activists so Joe Biden is coming in and saying it instead. I think it will actually hurt him -- help him with the Democratic base in terms of who it would hurt him with. Maybe -- (BUZZER) -- Republicans, but they're not voting for him anyway.

PHILLIPS: All right. Guys, in Iowa yesterday, Romney said he has a quote, "good shot at becoming president." So, is he counting his chickens before they're hatched? Maria.

CARDONA: Good shot as compared to who, Michele Bachmann, probably, Gingrich, probably, Ron Paul, probably. Is he counting the chickens before they hatch? Absolutely. Look, he should be concerned about trying to break the 25 percent ceiling that he is in right now in attracting conservative GOP support when not one vote has been cast during the primary process.

What he should also be concerned with is trying to get some convictions. Most Americans believe that an apple has more of a core than he does, and that's a big problem for him. (BUZZER)

PHILLIPS: Will.

WILL CAIN: You know, Kyra, a month or two ago, I said that Rick Perry had a good shot at being president, and the truth is, I said it a little more strongly than that. I think I said he would be president, so I humbly --

CARDONA: I think you bet, actually.

(LAUGHTER)

WILL CAIN: I think -- I humbly now venture out into the world of prediction. So, I would advise Mitt Romney the same.

(LAUGHTER)

WILL CAIN: So, that being said, look, he does have a good shot. It's not that strong of a statement. It's not that far out on a tree branch is because he holds steady in the polls and he has total lack of viable alternatives to people voting for him. He does have a good shot to be president. (BUZZER)

PHILLIPS: Patricia.

MURPHY: You know, Mitt Romney, actually, isn't making a prediction here. He's making his case to the Republican voters that there is a whole group of people here who maybe you're going to like, but I'm the one who can win. I have a good shot at being president. Republicans are really being torn right now.

There are the more conservative presidential candidates who they really love, but they also really want to win. They are desperate to beat Obama, and Romney is saying, I'm the guy who can do it. I think it's really the best case he has to make to voters. It's very smart of him. Not really counting his chickens. He's just saying let me run, and I'll do the job for you.

PHILLIPS: All right. Remember this campaign ad, it was from 2008. Take a little bit of a listen here.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's 3:00 a.m. and your children are safe and asleep, but there's a phone in the White House and it's ringing. Something is happening in the world. Your vote will decide who answers that call --

(BEGIN VIDEO CLIP)

PHILLIPS: Your vote will decide who answers that call. All right. In 20 seconds, guys, in 2012, who do you want answering that phone call? Patricia.

MURPHY: I am one of the multitude of undecided independent voters. I literally don't know who I want to answer that call. I'll make just a quick point here. That was a Hillary Clinton attack ad on President Obama, and that's actually the area he's doing the very best in right now with voters, 62 percent approval rating. If he's going to answer all of his calls out well, I think he'd be in a lot better shape. (BUZZER)

PHILLIPS: Will?

CAIN: I just want to say, I really like this ad for two reasons. One, we often too -- too often think that the presidency is the head legislative position, and the presidency is more often than not about things you cannot anticipate. And many times, that revolves around the federal government's number one duty, national security and protecting us. My answer to that is I'm not endorsing anybody, but if among my choices before me right now, I guess, I want Mitt Romney answering that call.

PHILLIPS: Maria.

CARDONA: Well, I just got to say that Hillary Clinton went to Libya one day and the next day Gadhafi is dead. If that's not getting it done, I don't know what is. And, it would be great for all of us that she is part of President Obama's team.

So, you know what? Both of them are going to be answering that call, and I think most Americans today agree that that is the right team to have answering that 3:00 a.m. call. And when he gets re- elected, that's what we'll have for the next four years.

WILL CAIN: That is news. Maria just made news. She endorsed Hillary Clinton over Barack Obama. I think we all heard that.

CARDONA: I don't think so.

PHILLIPS: Will is such a trouble maker. Have a great weekend, you guys.

CARDONA: I know. Thanks, Kyra.

MURPHY: Thank you, Kyra.

PHILLIPS: All right. Let's show you some live pictures now out of Detroit. Herman Cain expecting to defend his much criticized 9-9-9 tax plan in a speech that's going to begin any minute now. Those opposed to the proposal says it puts a burden on the low income folks. Well, the Republican candidate says he's going to explain that's not true.

As soon as he steps up to the mic there in Detroit, we will take it live.

(COMMERCIAL BREAK)

PHILLIPS: Live pictures out of Detroit, Michigan right now where GOP presidential candidate, Herman Cain, is unveiling his opportunity zone plan. It's a program aimed at helping small businesses. He also says that he has some clarifications that he needs to make on his 9-9- 9 tax plan. A number of people introducing Herman Cain. As soon as he steps up to the mic, we will take it live.

All right. The IRS is announcing changes that allow you to sack away more money for your golden years. Alison Kosik at the New York Stock Exchange has the details. Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Oh, yes. This is what we like to hear, Kyra. So, next year, you'll get to contribute more tax free dollars to your 401(k). How much? $500 more than this year. So, that 2012 contribution limit will go to $17,000. And this not only applies to 401(k)s, it applies for pension plans, 403(b)s, most 457 plans as well.

And keep in mind, this is the first time since 2009 you're going to be able to contribute more. So, I'd say, take advantage of it. This is happening because the cost of living is rising. Inflation is hotter, and it's the same reason that Social Security checks and some IRS deductions are going to be rising next year.

We're all paying more for food, for clothes, for cars. So, everything else, Kyra, has to adjust as well -- Kyra.

PHILLIPS: All right. So, $500. Can it really make a big difference?

KOSIK: It's a good question. You know, it really depends on what your situation is, but think about it. You know, people were hit really hard during the recession. And surveys are showing that people are working longer now. They're trying to save more. They're moving more of their money into more conservative investments.

And we're doing a pretty good job of it. I mean, stocking away more money. Retirement savings are close to an all-time high, but you know, after the economy has taken such a hit, many people are really just trying to play catch-up, especially those older workers. So, that 500 bucks, yes, that can make a difference -- Kyra.

PHILLIPS: All right. Alison Kosik in the New York Stock Exchange, thanks so much.

And we're still monitoring Herman Cain there in Detroit, Michigan. He's going to step up to the mic. We're going to talk about a couple of things, defending his much criticized 9-9-9 tax plan. Also, he'll be addressing those that oppose that proposal specifically talking about how it just puts a burden on the low income.

He says he's going to explain that it doesn't do that. We're going to bring his speech live as soon as he steps up to the mic.

(COMMERCIAL BREAK)

PHILLIPS: Live pictures once again out in Detroit, Michigan. Just want to let you know, we're not taking our eyes off this. Herman Cain expected to step-up to the mic, clarify some things about his 9- 9-9 tax plan, also talk about his opportunity zone plan which will target small businesses. As soon as he starts speaking, we'll take it live.

Also ahead, the cash keeps flowing for the Occupy Wall Street protest. Thousands of dollars raised every day. So, who's in charge of that money? We'll talk about it after the break.

(BEGIN VIDEOTAPE)

POPPY HARLOW, CNNMONEY.COM: I think one of the most interesting things about Occupy Wall Street is the money. Where is the money coming from? They have raised about $300,000. Who's funding them? How are they spending the money? Where is it going? How are they not using the big banks?

Does everyone know you around here as the money man?

PETE DUTRO, OCCUPY WALL STREET FINANCE COMMITTEE: A lot of people do.

UNIDENTIFIED FEMALE: What kind of power?

(CHANTING) People power!

HARLOW: You call yourself chief financial officer or something else?

DUTRO: No, there is no chief.

HARLOW: What are things like these days?

DUTRO: It's pretty crazy. I mean, this is really like doing an office job in a mosh pit.

HARLOW: So, right here by the food is where you're going to find one of the donation boxes, this little gray box. I just saw someone stick cash in there. What's really interesting, these are all over the park and what Occupy Wall Street tells me is that they have gotten to the point where they're getting thousands of dollars of cash donations here in the park every single day.

DUTRO: It's come from all 50 states. Average donation is a bit over $47.

HARLOW: How do you make the decision on what to spend the money on? Is this a democratic vote? How does it work?

DUTRO: Yes. We have our general assembly.

HARLOW: It's made up of how many people?

DUTRO: Every body here.

(CHANTING)

UNIDENTIFIED MALE: Voted yes for us to get a storage facility. I voted on spending the money to get it. I voted for the u-haul for us to go back and forth with our packages.

UNIDENTIFIED MALE: As far as I'm concerned, they're doing a very good job of providing us what we really need.

UNIDENTIFIED MALE: Had a tattoo shop for many years and help run a software development company. I went back to school to NYU College, and basically, my concentration is finance.

HARLOW: In terms of where the money is processed, it's donated to Occupy Wall Street, what we found out is that a lot of it is processed through a Washington, D.C. based non-profit, while alliance for global justice. In terms of the fundraising, in terms of how you get your money or how spend your money, what do you think differentiates you from a big corporation?

DUTRO: First of all, we're by the people for the people. And we're not trying to make a buck here. We're trying to feed people, trying to get them some medical attention when they need it. We're trying to clothe the people when they come down here. We're not trying to be greedy.

HARLOW: They go to great lengths to be as transparent as possible.

UNIDENTIFIED MALE: Peace.

(CHANTING) Peace

DUTRO: My grandparents were in the civil rights movement. My parents were in the anti-war movement. It's my turn now.

(END VIDEOTAPE)

HARLOW: Kyra, it has been fascinating to watch this movement, and we're going to keep following the money behind it and see what happens. Pete, who you just heard from, thinks that they are going to raise a million dollars in the next few months. We'll see if they reach that goal. As for him, he said he plans to be down there through the winter and actually through the 2012 election cycle, and we'll see if it grows or if it sort of disburses.

Kyra, I asked him what's your end game here, because all of the protesters seem to have different end games. For him, he said, I want to get the money out of politics, not just corporate money, also personal donations. He wants to see political campaigns funded through taxes.

And I said, but, you know, you guys are raising money through donations. His answer to that, Kyra, was we are not a political movement. So, that is his end game. But again, interesting to meet the guy in charge of the money there for Occupy Wall Street.

PHILLIPS: Yes. We'll continue to track it right along with you. Poppy, thanks.

Live pictures once again out of Detroit, Michigan. Here we go. Perfect timing. Herman Cain stepping up to the mic.

(BEGIN LIVE COVERAGE)